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4.3. ERMUSR04-10-2012. ~ Elk River Municipal Utilities UTILITIES COMMISSION MEETING pOwEN~`EO er ®~~~ W P O W E R E D T O S E R V E TO: FROM: Elk River Municipal Utilities Commission Tom Sagstetter -Conservation and Key John Dietz -Chair Accounts Manager Daryl Thompson- Vice Chair & Al Nadeau -Trustee David Berg -Water Superintendent MEETING DATE: AGENDA ITEM NUMBER: A ril 10, 2012 43 SUBJECT: Commercial Irri ation Water Conservation Pro ram (Pilot Program) BACKGROUND: Based on the March 20, 2012 Commission Meeting discussion staff was directed to bring back the commercial irrigation water conservation program marketing information and discuss implementation of the new pilot program. The draft marketing brochure and application are provided as pages 2 and 3 for this agenda item. There had been discussion in past months on the laws that pertained to water conservation programs for Public water suppliers serving more than 1,000 people. In April Gov. Mark Dayton signed into law water conservation measures that are consistent with the commercial irrigation water conservation pilot program. The new law states that, "Public water suppliers serving more than 1,000 people must encourage water conservation by employing water use demand reduction measures..." The demand reduction measures mean those measures which reduce the demand, water losses, peak water demands, and nonessential water uses. The law goes on to state the demand reduction must include a conservation rate structure or a uniform rate structure, or a uniform rate structure with a conservation program that achieves demand reduction. DISCUSSION: Commercial Irrigation Customer Conservation Program (Pilot Program) The pilot program as designed meets or exceeds the requirements of the law. The water demand reduction measures of the pilot program fall into two basic categories; 1) financial -participating irrigation customers may be eligible for an exemption from 3`d step rates provided they enroll and annually participate in the commercial irrigation water conservation program; and 2) the customer implements and/or installs water conserving technology or landscaping that reduces irrigation demands. After final review of the application and marketing brochure staff will mail an introductory letter, marketing brochure, and the application to approximately 96 Commercial Irrigation customers and follow up with interested customers on a case by case basis. • e ~~ a rn y y ~ Q 0 O N r 0 N • O r R d R' Q r ~ O O m r o ~ ~ C ~ _ ~ cn v~ ~ a ~ ~ E ~ ~ ;, ~ ~ c~a ~ ~ ~ 0 0 ~ ~ d a C N ~ J Q 2 U r L E d ; O ~ N E .~ +-~ N O N ` = O r' ~ ~ t `- N C ~ ~ r (~} _ C ~ '!3 ~ ~ ~ ~ ~ c C ~ ~ ~ -_ C O N C ~ ~ m ~ ~ N _ C ~ ~ ~ C O N O> .~ ~? 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Box 430 Elk River, MN 55330-0430 763-441-2020 www.El kRiverUtil ities.co m Commercial Irrigation Water Conservation Program What is the program? Elk River Municipal Utilities is offering a new program for our commercial irrigation customers that establishes incentives for implementing water efficiency measures. Commercial irrigation customers will be eligible for an exemption from 3rd step water rates based on a points system. Customers must achieve ten (10) Water Conservation points in the first year and five (5) every year thereafter. Instead of being billed at the 3rd step water rate, all water will be billed at the 2nd step rate once the required points are achieved. Who qualifies for this program? Existing commercial irrigation customers that have zero water consumption in the months of November-March of the previous year qualify to installing a new irrigation system can also qualify. be a part of this program. New customers that are Terms and Conditions Customer must participate in the program for at least one year. 2. The 3rd Step exemption applies only to the property served by the water meter at the installation address on the Water Conservation Rebate Application. 3. Inspection of the existing equipment and new equipment will be conducted annually by ERMU staff. 4. Each individual property must submit a completed Water Conservation Rebate Application annually with copies of invoices/receipts. 5. Customers will be required to implement water conservation measures that will earn Water Conservation Points (WCPs) and may also receive financial incentives (rebates) for the installation of equipment or services. Water Conservation Points One Point 1 pt Install 3Eco-Irrigation Heads (buy 2, get 1 free). ERMU will reimburse through a rebate for one head once a receipt is provided. Two Points 2 pts Add a layer (2" to 3") of mulch to shrub beds 2 pts Install rain barrels and/or retention ponds Three Points 3 pts Annual irrigation inspection including ($100 water rebate/year): 1. Program controller for proper moisture level 2. Adjust all heads to avoid watering hard surfaces 3. Check for leaks 4. Check rain gauge 3 pts Participate in Project Conserve Five Points 5 pts Install SMART Controller on irrigation systems ($500 maximum rebate per customer/year) Eight Points 8 pts Install Rain Garden/Xeriscape/Eco-Grass/Native Grass/2" black dirt (maximum $500 rebate per customer/year) How do 1 sign up? 1. You must have zero water consumption during the winter (November-March). 2. The Commercial Irrigation Water Conservation Application must be completed. 3. Copies of all invoices or receipts for service or equipment purchased and installed must be presented. 4. Application and copies of receipts must be returned to: Elk River Municipal Utilities C/O Water Conservation Rebate P.O. Box 430 Elk River, MN 55330 5. Call 763-441-2020 to schedule a meeting with ERMU staff for inspection of equipment prior to enrolling. COMMERCIAL IRRIGATION WATER E1kRiver~~ CONSERVATION REBATE APPLICATION Municipal Utilities If you have questions, please call 763-441-2020, 8:00 AM to 4:30 PM Mon-Fri. Program Requirements: I) Commercial irrigation customers that have a winter con- sumption of zero units the previous year, 2) Copy of Invoice or sales receipt for all equipment, 3) Maximum water credit for Smart Controllers is 50 % of installed cost up to $Soo dollars for customers using greater than 25o units, $25o for customers using less than 25o units, 4) Maxi- mum water credit for sprinkler heads or drip systems is 50% up to a maximum of $50o per year, 5) All water credit rebates are contingent on ERMU verification and approval, 6) custom- er must attain Io water conservation points (WCP) to participate in the program. ACCOUNT INFORMATION: NAME ON WATER ACCOUNT: ACCOUNT #: ACCOUNT HOLDER PHONE #: APPLICANT INFORMATION: Name of person applying: Day Phone: Cell Billing Address: CiTy:_ Installation Address: Cif IRRIGATION INFORMATION: Property Type (circle one): Association/Multi-family Irrigation System Installation Year: Installation Person/Company: Smart Controller (5 Water Conservation Points) Smart Controller Installation Smart Controller Brand: Commercial State:_ Zip: MN Number of Zones: (Copy of invoice with application required) Model Sprinkler Heads or Drip System (t Water Conservation Point for each head or drip line) Type of Sprinkler Heads (circle one): Pop-Up Impact Rotors Drip line Installation Date: (Copy of invoice with application required) Irrigation System Brand: Model No.: Irrigation System Assessment: (g Water Conservation Points) Name of Company Performing Assessment: Technician Name: Please provide an itemized copy of the original invoice with this form. Assessment must include: Check all data sensors to ensure they are operational, program controller, inspect for leaks in heads and distribution pipes, check for proper alignment of sprinkler heads. Landscaping: (8 Water Conservation Points) Type of landscaping changes (circle all that apply): Eco-Grass Please Describe "Other" Black Dirt Native/Prairie Grass Rain Garden Rock Garden Xeriscape Other Square Footage of Area: (area must be larger than 50o square feet to quality) Installation Person/Company: Phone: Please provide an itemized copy of the original invoice and a simple sketch of work done with this form. (OFFICE USE ONLI~ REBATE VERIFICATION: Inspection Date: pts Smart Controller pts Landscaping Time: pts Water Conserving Indoor Equipment TOTAL POINTS pts Sprinkler Heads pts Irrigation System Assessment pts Participate in Project Conserve MAIL TO: Inspector: Elk River Municipal Utilities, C/O WATER CONSERVATION REBATE, P.O. Box 430, Elk River, MN 55330 ~~ ~~o~ RE: SMART Irrigation Water Savings ~en,,~\O , 2.~ \~,,, The 2011 SMART results are in! Over the course of two years, customers have saved an average of 43% from their water consumption! On CHART #1, you will find the break down of average usage and savings through water use in water units. 1 unit is equivalent to 1,000 gallons. The 4th grayed line on CHART #1 is a case study that carries over to CHART #2. This association was only 1/5 of the way through their repairs for last year's results. Now they are about half way through tuning their SMART system to save water. So far they have saved about 59% of water consumption with only half of the repair. That is amazing! Their SMART controller addition has paid for itself and more in less than a year. There is a breakdown to show probably cost to each resident and to the association as a whole. In two years, the HOA has saved well over $5000.00. They have been extremely progressive in their SMART irrigation plans and the little changes have made a huge difference. • • #1 Season - Innacurate Land Use S stem Installed Rebate A roved/Ins ected 2011 2010 2009 .2008 200T _ ' , savings Sin le Famil 29-A r-10 01-Jul-10 15 12 16 17 15 16 16% Park 10-Jul-10 10-Oct-10 110 103 154 ND 154 29% Park 1-Jun-10 10-Oct-10 124 205 413 ND 413 60% TH Association 1-Au -09 11-Oct-10 165 209 383 503 ND 443 59% THAssociation 10-A r-10 01-Jun-10 75 220 303 ND 303 51% Commercial 5-Jul-10 01-Oct-10 54 41 114 102 93 103 54% Sin le Famil 1-Ma -10 01-Oct-10 14 11 15 17 19 17 24% Sin le Famil 8-Jul-10 01-Au -10 21 34 52 36 48 46 40% TH Association 1-Au -09 01-Ma -10 121 137 223 317 246 262 51 TH Association 1-Au -09 01-Ma -10 404 330 544 601 ND 573 36% Sin le Famil 1-Ma -10 01-Jul-10 15 17 25 21 24 24 34% Commercial 1-Au -09 01-Oct-09 25 37 54 64 65 61 54% Commercial 1-Au -09 01-Oct-09 11 8 16 18 32 22 60% Commercial 1-Jun-10 86 202 375 366 438 393 63% Commercial 124 128 413 70% Residential 15 13 21 12% Commercial 29 29 82 48% Residential 10 8 16 44% Raciriantial 17 20 27 30% Read for Ins ecti on in 2011 Potential to S ave Even More! ~ TH Association i-Ma -09 138 259 234 334 ND 2$4 37% Commercial 1-Jun-10 14 14 17 16 20 18 22% Commercial 1-Jun-10 152 135 195 252 268 239 40% Commercial 1-Jun-10 155 139 249 237 274 254 42% •