Adopt Resolution #24-152 to Enter into Clean Water Fund Grant Agreement with the Metropolitan Council to Accept Water Efficiency Grant Funds

On March 26, 2024, the City Council authorized Staff to apply for water efficiency grant funding through the Metropolitan Council.  On May 24, 2024, Staff received notice that the City of Ramsey was awarded $14,000 in grant funds for the 2024-2026 Water Efficiency Grant Program (the "Program").  As the name of the Program implies, the purpose of the grant is to encourage residents to replace older, less efficient water-using devices with more efficient technologies to reduce the demand on the municipal water supply.  The grant program would run from July 1, 2024, through June 30, 2026.

There are two (2) primary financial requirements of the Program. First, the municipality must contribute twenty percent (20%) of the grant award, which equates to $3,500. Secondly, rebate recipients must also provide a financial contribution (e.g. the grant funds and the City contribution cannot entirely cover the cost of the purchase), which is accomplished by the recipient being responsible for the sales tax. Other important eligibility requirements include the rebate recipient being a Ramsey municipal water customer (this means that anyone on a private well is not eligible), only applicable to replacement devices (meaning that new construction is not eligible), and the rebate is only applicable for the cost of the device and its installation, excluding any owner labor costs.

Similar to the past two cycles (2020-2022 and 2022-2024) of the Water Efficiency Grant program, the City must enter into a Clean Water Fund Grant Agreement with the Metropolitan Council to accept the grant award for the 2024-2026 cycle.  The agreement is attached to this case.

Notification is not required.

The rebate program will be designed very similarly to the current rebate program.  Rebates will be available for the purchase and installation of any eligible device (per the grant guidelines), which includes U.S. Environmental Protection Agency (EPA) WaterSense® labeled toilets, irrigation controllers, and shower heads, as well as Energy Star® labeled dishwashers and washing machines. 

Administration of the rebate program will be coordinated by the Community Development Department with assistance from the Public Works Assistant. Finance Staff will also be involved with the issuance of the rebates. Per the required Grant Agreement, the City will have to provide quarterly reporting to the Metropolitan Council. Reporting forms will be provided by Metropolitan Council staff and are assumed to include: property address, property type (residential/commercial), device replaced, number of devices, grant amount per device, estimated annual water savings, municipal contribution, and eligible grant amount (rebate amount per device minus municipal contribution).

Funding for this program would consist of three sources: $14,000 from the Water Efficiency Grant from the Metropolitan Council, $3,500 from the City's Water Fund (this is equivalent to the required 20% municipal contribution), and any rebate participant would cover the sales tax on the purchase of the device (thus satisfying the requirement for the rebate participant to have a financial contribution in the program).

The EPB recommended applying for the 2024-2026 Water Efficiency Grant.  Staff recommends adopting Resolution #24-152 authorizing the execution of the Clean Water Fund Agreement with the Metropolitan Council to accept the $14,000 grant for implementation (and continuation) of a water efficiency rebate program.

Motion to adopt Resolution #24-152 to enter into the Clean Water Fund Grant Agreement with the Metropolitan Council and to accept the $14,000 grant to implement a water efficiency rebate program.