Provide City Council Recommendation for Metropolitan Council Water Efficiency Potential Project

Purpose:
The purpose of this case is to consider recommending City Council approval to participate in a Metropolitan Council Water Efficiency Potential Project.

Background:
Per the attached email from the Metropolitan Council received on November 27, 2017, a Water Efficiency Potential Project was commissioned to assess the economic potential of whether an aggressive water conservation program could reduce a community’s expansion of water supply to meet future residential needs.
 
Based on current water use data and projected population growth, Ramsey ranks #19 out of all Twin Cities metro cities as a potential candidate community for economic analysis of potential peak water demand reduction.  The Metropolitan Council believes the City of Ramsey can potentially benefit from such an analysis, and would like to know if the City is willing to be included in the study.
 
The study generally seeks to answer these questions regarding residential water use:

1. What overall peak reduction would a community need to achieve to avoid (or delay) installation of a new well?
2. What amount of total water savings could be realized, and how many years of delay for a new well (or wells) can be achieved?
3. What is the total cost to reduce peak demand through residential efficiency, and how does this cost compare with the cost of a new well (or wells)? 

 
The first step in the analysis was an exercise to determine which of the 94 metropolitan communities with groundwater supplies and a large residential sector have the most potential to benefit from this analysis.  The Metropolitan Council considered total population growth through 2040, residential water demand, peak summer to winter ratio, and estimated number of new wells through 2040.   Based on these factors, Ramsey ranks #19 (breaking the top 20) of the 94 communities they reviewed.
 
Also attached to this case is a memo detailing the analysis used to identify the communities with the greatest potential for residential water efficiency.
 
There is no cost to participate in the study, but if a City agrees to participate the City must provide the following specific information for the next part of the analysis:

• Well yield data for each well
• Annual operational costs for treatment and for well operation
• Description, program costs, and number of staff for current water conservation programs
• Unit cost per 1,000 gallons of raw water (before treatment, if any)

The Metropolitan Council originally requested a response by December 8, 2017 as to whether the City of Ramsey was willing to participate.  City Staff asked for an extension to allow Staff to present this information to advisory boards and committees before requesting Council authorization to participate in the project on January 23, 2018.  The Met Council approved this extension request.
 
Staff provided an update on this project to the Environmental Policy Board (EPB) during their December 18^th meeting.  The EPB provided some very generalized feedback on this potential opportunity.  There was general consensus supporting the ‘survey’ portion of the project, but a concern was raised regarding the results of the survey.  More specifically, the EPB raised the issue of equitable application of results.  They would not want to see the results only applied to Ramsey or the other communities that participated as this could create an unfair burden on residential water users in Ramsey, such as increased water costs.

Staff estimates this case will take 10 minutes to present and respond to questions.

Observations:
Staff has reached out to the Metropolitan Council to seek clarification on the EPB concern regarding their plan for applying the survey results.  At the time this case was published, a response had not yet been received.  Staff will update the Public Works Committee during the meeting as to whether a response has been received from Met Council and, if so, what the response was.
 
Alternatives:
Alternative #1 – Motion recommending City Council approval to participate in a Metropolitan Council Water Efficiency Potential Project.
 
Alternative #2 – Motion of other.

No costs are associated with this request, other than the time it will take Staff to gather and provide the requested water supply system data.

Staff recommends alternative #1 contingent on verification from the Metropolitan Council that the study results will be applied equitably across the Twin Cities metropolitan region.

Motion recommending City Council approval to participate in a Metropolitan Council Water Efficiency Potential Project.