Adopt Resolution #22-027 Modifying the Water Efficiency Grant Program Making Energy Star Rated Washing Machines Eligible for a Rebate

The purpose of this case is twofold.  First, it is to provide City Council with an update on the Water Efficiency Rebate Program and secondly, it is to consider a program modification to include Energy Star rated clothes washing machines as an eligible rebate device.

For background purposes, the City was awarded $28,000 in grant funds from the Metropolitan Council to implement a water efficiency grant/rebate program.  The program will run through June 30, 2022 or until grant funds are exhausted, whichever comes first.  The program currently allows for a rebate of up to $200 per device ($500 cap for household) to replace inefficient toilets and older, less efficient irrigation controllers in residential properties.  The rebate for Commercial properties and Home Owners Associations (HOAs) is the same for toilets, but is up to $700 per smart irrigation controller with a $1,400 cap per property/HOA.  Any property, commercial or residential, that is currently served by the City's water system is eligible to participate in this program. 

Notification is not required.

The rebate program began in May of 2020.  As of the writing of this case, there have been eighty (80) residential properties and one (1) HOA that have taken advantage of this program.  The bulk of the rebates have been for smart irrigation controllers.  More specifically, there have been fifty-nine (59) rebates for smart irrigation controllers; thirteen (13) rebates for WaterSense labeled toilets; and nine (9) rebates that have been for both smart irrigation controllers and WaterSense labeled toilets.  The grant funds have covered $14,287.02 worth of rebates with the City's contribution (per the Grant Agreement) covering $4,762.35. 

The grant program runs through June 30, 2022.  There is just under half of the original grant allotment remaining ($13,712.98).  The program has been promoted through the Ramsey Resident newsletter, Facebook, the City's website, on the City's dynamic display sign along Highway 10, and Staff has attempted to contact all eligible HOAs to inform of this program and opportunity.   

Considering there is only about five (5) months before the program ends, Staff is recommending adding Energy Star rated clothes washing machines as a rebate eligible device.  The rebate amount would be $200.  Staff has verified with the Metropolitan Council that this addition is allowable and does not require any modification to the grant agreement.  If approved by City Council, information will again be pushed out through the aforementioned media outlets for one final push before the program ends.

Funding for the Water Efficiency Grant Program consists of three sources: $28,000 from the Water Efficiency Grant from the Metropolitan Council, $9,340 from the City's Water Fund (this is equivalent to the required 25% 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) plus any amount that exceeds the per device cap.

Staff recommends modifying the grant program to include Energy Star rated clothes washing machines as a rebate eligible device.

Motion to adopt Resolution #22-027 Modifying the Water Efficiency Grant Program to include Energy Star rated clothes washing machines as a rebate eligible device.