Adopt Resolution #22-127 to Enter into Clean Water Fund Grant Agreement with the Metropolitan Council to Accept Water Efficiency Grant Funds

On March 22, 2022, the City Council authorized Staff to apply for water efficiency grant funding through the Metropolitan Council.  On May 5, 2022, Staff received notice that the City of Ramsey was awarded $19,800 in grant funds for the 2022-2024 Water Efficiency Grant Program (the "Program").  As the name of the Program implies, the purpose of the grant is to implement water efficient technologies to reduce the demand on the municipal water supply.

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 $4,950 (note that the Metropolitan Council reduced the matching component from 25% to 20% from the 2020-2022 funding cycle to this current cycle). Secondly, rebate recipients must also have a financial contribution (e.g. the grant funds and the City contribution cannot entirely cover the cost of the purchase). Other important eligibility requirements include the rebate recipient being a 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 2020-2022 grant cycle, the City must enter into a Clean Water Fund Grant Agreement with the Metropolitan Council to accept the grant award for the 2022-2024 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.  The primary difference is that rather than limiting the rebate to certain eligible devices, Staff recommends offering a rebate for any eligible device, per the grant agreement, which not only includes smart irrigation controllers and toilets (both need to be WaterSense® certified), but also clothes washing machines and dishwashers (both must be Energy Star® certified).

Administration of the rebate program will be coordinated by the Community Development and Engineering Departments, but will also include Finance Staff as well for 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: $19,800 from the Water Efficiency Grant from the Metropolitan Council, $4,950 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 additional grant funds for the 2022-2024 grant cycle.  Staff recommends adopting Resolution #22-127 authorizing the execution of the Clean Water Fund Agreement with the Metropolitan Council to accept the $19,800 grant for implementation of a water efficiency rebate program.

Motion to adopt Resolution #22-127 to enter into the Clean Water Fund Grant Agreement with the Metropolitan Council and to accept the $19,800 grant to implement a water efficiency rebate program.