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Home My WebLink About08.05.19 Work Session Packet City of Farmington Mission Statement 430 Third Street Through teamwork and Farmington,MN 55024 cooperation, the City of Farmington provides quality services that preserve our proud past and foster a promising future. AGENDA CITY COUNCIL WORKSHOP August 5, 2019 6:15 PM Farmington City Hall 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) Water Items Update 4. CITY ADMINISTRATOR UPDATE 5. ADJOURN CITY OF 430 Third St, Farmington, MN 55024 FARMINCTON ("4'„J 651-2$0_6800 "` FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Katy Gehler, Public Works Director SUBJECT: Water Items Update DATE: August 5, 2019 INTRODUCTION Water Efficiency Grants At the July 15, 2019 City Council meeting Met Council Representative Wendy Wulff, provided an update of council activities. One of the items noted was the re-authorization of funds for the Water Efficiency Grant Program. This program originally received$500,000 in funding from the Clean Water Fund in the 2015-2017 state budget biennium. The Met Council estimates a savings of 52 million gallons of water a year from this program. The program was funded for the Fiscal years 2020-2021 at a total amount of$750,000. The current solicitation is attached. Staff will review the merits of the program as it relates to water conservation. The City offered a similar grant program through a Source Water Protection grant in 2018/2019. A summary of the program outcomes is attached which was provided to the Water Board at their June meeting. Capital Water Project Update The schedule of capital water projects was updated with the adoption of the 2018 CIP with three major projects identified in the 5-year CIP. Two of the projects are complete, the water tower reconditioning and the construction of Well#9. Staff will be starting the third project this fall, the siting and construction of a new water tower. The tower has been generally located in the Fairhill PUD area. Staff will review the steps in the project process, estimated timing of the project, and preliminary costs and funding. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED NA ATTACHMENTS: Type Description D Backup Material Irrigation Controller Cost Share Summary D Backup Material MCES Water Efficiency Grant Program Summary CITY OF FARM I NGTON TO: Water Board Members, City Administrator FROM: Tom Hoffman, Public Works Coordinator SUBJECT: Water Conservation Programs DATE: June 25, 2019 INTRODUCTION Farmington received a Source Water Protection Grant from the Minnesota Department of Health.The grant is aimed to protect the city's water supply and promote water conservation by implementing smart watering and irrigation practices by providing an incentive to upgrade outdated irrigation controllers. DISCUSSION During the summer months' water consumption spikes, a majority of this water is used for irrigation of lawns. Improper use of irrigation systems and over watering are common problems that leads to water being wasted. The grant funding will come to a close at the end of June. The program to date has helped 23 residents obtain an EPA WaterSense approved smart irrigation controller. The total amount refunded as part of the grant is $3,321.98. There was$7,000 available for the program. The city will look at applying for this funding again in the future if it appears there is a need. At this time it doesn't appear that there is a need to continue funding this program. BUDGET IMPACT $2,000 from water education plan will be used as a local match for the$5,000 grant provided by the Department of Health. Action Requested No action requested, informational only Metropolitan Council CLEAN WATER METROPOLITAN ifcAcv Water Efficiency Grant Program M E O N 1,,NOW NT Overview The Metropolitan Council (Council)will implement a water efficiency grant program effective September 30, 2019 to June 30,2022. Grants will be awarded on a competitive basis to municipalities that manage municipal water systems.The Council will provide 75%of the program cost;the municipality must provide the remaining 25%. Municipalities will use the combined Council and municipality funds to run their own grant or rebate programs. Grants will be made available in amounts with a minimum of$2,000 and a maximum of$50,000. Grantees will be required to provide estimated water savings achieved through this program for Clean Water, Land & Legacy Amendment reporting purposes. Legislative Directive - Minnesota 2019 Session Law $375,000 the first year and$375,000 the second year are for the water demand reduction grant program to encourage municipalities in the metropolitan area to implement measures to reduce water demand to ensure the reliability and protection of drinking water supplies. Fiscal year 2020 appropriations are available until June 30, 2021, and fiscal year 2021 appropriations are available until June 30, 2022. Grant Program Goal The goal of the water efficiency grant program is to support technical and behavioral changes that improve municipal water use efficiency in the seven-county metropolitan area. Critical Points to Remember • The applying municipality must be a water supplier • New construction and new developments are not eligible • Funds are for rebates or grants only; consulting and city staff time are ineligible • Combined Council and municipality funds cannot pay for 100%of an eligible activity's cost • A portion of each eligible activity's cost must be paid by the property owner • Grant recipients must display the Clean Water, Land and Legacy Amendment logo and the Metropolitan Council logo on program-related web pages and paper communications Grant Program Structure: Administration and Funding The Water Efficiency Grant Program will be administered by Metropolitan Council Environmental Services (MCES)and will be funded with $750,000 appropriated by the 2019 Minnesota Legislature. Grant applications will be reviewed and ranked by the MCES Water Supply Planning Unit staff. Grants are only for water efficiency programs offering rebates or grants to property owners who are customers of the municipal water supply system and who replace specified water using devices with approved devices that use substantially less water. 1 Grants will be awarded to municipalities in amounts ranging from $2,000 to$50,000 for providing rebates or grants to property owners. Municipalities will be responsible for the design and operation of their rebate or grant program and its details. Grant payments to the municipality will be for 75%of approved program amounts.The municipality must provide the remaining 25%of the program cost. Municipality rebates or grants are eligible for reimbursement on device replacements conducted September 30,2019 through June 30, 2022. Here is an example showing the grant funding design: Metropolitan Council Grant Amount $15,000 Municipality Match $5,000 Municipality Grant/Rebate Program Total $20,000 Eligibility Per legislative language,the grant program is limited to municipalities in the seven-county metropolitan area. Municipalities eligible per above must apply to participate and, if approved,sign a standard Council Grant Agreement, before any eligible rebates or grants can be submitted for reimbursement.Agreements shall require that municipalities: • Entirely pass through grants received (as is being done by MCES) • Verify purchase of devices to receive grants • Retain records and cooperate with any audits • Conduct all communications with property owners and ensure all written communications to property owners include both the Clean Water, Land and Legacy Amendment and the Metropolitan Council's logo • Provide quantitative information for state reporting purposes Eligible water efficiency devices consist of the following: • Toilet replacement with a US EPA WaterSense labeled toilet • Irrigation controller replacement with a US EPA WaterSense labeled controller • Clothes washing machine replacement with an US DOE Energy Star labeled clothes washing machine • Irrigation spray sprinkler body replacement with a US EPA WaterSense labeled spray sprinkler body • Irrigation system audit by an Irrigation Professional certified by a US EPA WaterSense program Expenses eligible for reimbursement are the out-of-pocket cost of the device and its installation only, not to include any owner labor costs. In addition, new construction and new developments are ineligible, as this program is intended as a current infrastructure replacement program. Application Process • Applicants must be municipal water suppliers • Municipalities will submit MCES supplied application form by September 30, 2019. Required information includes: o the municipality's rebate or grant program design and work plan o proposed examples of communications to property owners o requested total grant amount o estimated annual amount of water saved by the applying municipality 2 • Application form is available at: https://metrocouncil.org/Wastewater-Water/Funding- Finance/Available-Funding-Grants.aspx • Submit competed application to: brian.davis@metc.state.mn.us • Metropolitan Council will notify municipalities of grant awards and provide grant agreements by December 2, 2019. Proposal Selection Criteria In the event that funds requested exceed funds available,the following criteria will be used to determine the amount granted to a given municipality: • Municipalities that are supplied 100%with groundwater • Municipalities with identified water supply issues in Master Water Supply Plan Community Profiles or Local Water Supply Plans • Municipalities' ratio of peak monthly water use to winter monthly water use • Municipalities' average residential per capita water use • The order in which applications are received and until grant funds are completely committed Funding Process and Reporting Requirements • Utilizing forms provided by MCES,the following information must be reported on a quarterly basis: o Number,type and amount of rebates or grants provided to property owners,along with each property address o Estimated annual gallons of water saved per device installation o Municipality matching funds disbursed o Number of unmet funding requests from property owners, if any • Upon review and confirmation of the above information, MCES will process a grant payment in the amount of 75%of approved total rebates or grants for the reporting period. • MCES will provide confirmation of grant balances available upon request and reserves the right to amend grant agreements, in collaboration with grantee municipality, if quarterly reporting indicates rebate or grant programs will not fully utilize grant awards within the grant period. Qualified Activities • Toilet replacement with a US EPA WaterSense labeled toilet: http://www.epa.gov/WaterSense/product search.html • Irrigation controller replacement with a US EPA WaterSense labeled controller: https://www.epa.gov/watersense/product-search • Clothes washing machine replacement with an US DOE Energy Star labeled clothes washing machine: https://www.energvstar.gov/productfinder/product/certified-clothes-washers/results • Irrigation spray sprinkler body replacement with a US EPA WaterSense labeled spray sprinkler body https://www.epa.gov/watersense/product-search • Irrigation system audit by an Irrigation Professionals certified by a US EPA WaterSense program https://www.epa.gov/watersense/find-pro 3 4, VI50V W s+ C N tf1 N N .0 C 3 i-f N .-i M Ins Ea. 0 e-+ V? ri I)- W pp • C if, O ON Ln ,CO r UC N N O ++ m N m 0. a v> -cn• vA NJ. 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