The URL can be used to link to this page

Home My WebLink About07/07/1992, C-8 - WATER HARDWARE RETROFIT PROGRAM Illll�lylll�lllll�ll� II MEETING DATE: city or san , .is osIspo Jul 7, 1992 COUNCIL AGENDA REPORT ITEM NUMBER/` FROM: William T. Hetland, Utilities Director PREPARED BY: Ron Munds, Water Conservation CoordinatX SUBJECT: Water Hardware Retrofit Program CAO RECOMMENDATION By motion, approve a voluntary retrofit program with a rebate amount up to $100.00 per retrofitted bathroom submitted for verification after July 1, 1992. DISCUSSION Background At the February 4, 1992 City Council study session, Council directed staff to develop altematives for a water hardware retrofit program. Council instructed staff to evaluate the top 15 to 20% water consumers to determine if a mandatory retrofitting requirement would be feasible for this group of customers. Council also indicated that single family residences should be excluded from any mandatory retrofit requirements. As part of the February 4th meeting, staff presented an analysis regarding the potential water savings associated with a program of this type. The analysis indicated that there was a potential of approximately 1,000 acre feet of water per year that could be saved through complete retrofitting of the community. In summary, the general consensus of Council was that a voluntary retrofit program (similar to the Toilet Rebate Program) should continue in some form, possibly offering a larger rebate to stimulate participation and encourage long-term water efficiency, and that the Council would consider mandatory requirements for the larger water consumers. WATER USE ANALYSIS Staff has determined that the top 15% of water consumers would be examined for this report. The reason for this is the next 5% are almost exclusively single family residential accounts. It is interesting to note that the top 15% water users consume 57% of the total water supplied to the City during 1991. Exhibit A presents a detailed breakdown of water uses by customer classification of the top 15% during 1991. 0 mh}►��►��►Illlllfll�QP1°'I@SII city of San l S OBISp0 COUNCIL AGENDA REPORT Retrofit Rebate Program Page 2 As indicated, during 1991, multi-family accounts, which includes all apartments and accounts with a single meter and two residences (duplex and granny units), comprised the largest percentage of accounts and water use in the top 15% category. The next largest user group is the commercial classifications. Staff analyzed the Water Offset Program data to determine if a significant number of multi-family units had already been retrofitted through this program. The analysis indicates approximately 14% of the units have been retrofitted. This equates to approximately 6,500 units still available for retrofitting. Further review of available information indicates that 1,750 of those units were built after 1979 which means the installation of a 3.5 gallon per flush toilet was required by State law. The remaining 4,750 units built prior to this date will have at least a 5 gallon per flush toilet in place. Using the appropriate offset values to estimate potential water savings, approximately 370 acre feet per year could be conserved. If Council determines a mandatory retrofit requirement should be placed on a particular user class, the multi-family group would produce the greatest potential water savings. Staff believes this would also be the easiest classification to monitor for compliance and evaluate for effectiveness of retrofitting. ALTERNATIVE PROGRAMS Voluntary Retrofit Program This type of program would be similar to the City's current Toilet Rebate Program. The current program limits the number of toilet rebates available to an account to three and rebates $70.00 per toilet. If this type of program is adopted, staff would recommend the following changes: I 1) That the limit on the number of rebates eligible per water account be removed to encourage retrofitting of multi-family units. 2) That low-flow showerheads and faucet aerators installation be a requirement in order to receive a rebate. 3) That the rebate amount be increased to $100.00 to stimulate participation. Again, the current rebate amount is $70.00 per toilet and participation in the program has declined dramatically from the Phase I program. The rebate amount during Phase I was $80.00. Staff believes that decreased participation was in part due to the lesser dollar amount offered. Staff would recommend the guidelines for receiving a rebate include the language "up to $100.00 per bathroom" so the City is not paying more than some toilets and showerheads cost. The owner would be required to furnish receipts to determine the rebate amount. ii��i�i►I(uIIIIIIII� ��IIII City Of San 1 's OBISPO COUNCIL AGENDA REPORT Retrofit Rebate Program Page 3 Alternatives 1. Council could decide on a lesser rebate amount than the recommended $100.00. Based on staffs experience from the Phase I and Phase II Toilet Rebate Programs, this alternative is not recommended. 2. Council could decide on a tiered rebate system. For example, if a multi-family complex had twenty bathrooms the first three could receive a $100.00 rebate, the next seven receive an $80.00 rebate, and the remaining bathrooms over ten receive a $50.00 rebate. Because of the complexity to administer and track this type of system, this alternative is not recommended. 3. Council could maintain the current Toilet Rebate Program and requirements presently in place which limits the number of toilets eligible and does not require the installation of showerheads and faucet aerators. Given the program's goal of retrofitting the entire City over time, this alternative is not recommended. VoluntaryfMandatory Retrofit Program Based on the evaluation of the water consumption information, there are several combinations of options which could be considered for a mandatory component of a retrofit plan. The greatest opportunity for water savings from retrofitting is in the multi- family customer class. The alternatives are: i 1. Mandatory retrofit requirement for multi-family customer class. 2. Mandatory retrofit requirement for multi-family and commercial customers. 3. Mandatory retrofit requirement for multi-family, commercial, and mobile home parks. Staff would recommend that option number one be adopted, if the Council decides to implement a mandatory component to a retrofit program. In many commercial buildings flush valves are utilized instead of tank type toilets. The ultra-low flush valves are relatively new on the market and supply could prove to be a problem if required. Also, flush valves and bowls are more expensive than tank type toilets adding an additional economic hardship on the commercial sector. Though mobile home parks are master metered, staff believes mobile homes are more like a single family residence because of individual ownership and should be excluded from any mandatory requirement. If Council decides to place a mandatory requirement on any customer classification, staff recommends that the rebate be made available to these customers. Staff also recommends that participants in the Water Offset Program should be excluded from participation in a rebate program which is the current policy. IIINi11�IIIIVIIIIII`I��III�NIIII�III City of San t S OBISPO WiS COUNCIL AGENDA REPORT Retrofit Rebate Program Page 4 SUMMARY With the new marketing approach the water conservation program is presently taking, staff believes that a mandatory retrofit requirement is not necessary for any customer classification. Water conservation staff is currently targeting the large water users for water audits and will be soliciting the rebate program as a cost effective means to reduce retrofit costs, save money on future water bills, and conserve water. CONCURRENCES The Finance Department concurs with recommendations made in this report. FISCAL IMPACT A total of $137,500 was approved as a part of the 1992-93 budget to support a hardware retrofit rebate program (Appendix A, 1991-93 Financial Plan Supplement, 1992- 93 Budget, page B-2). As noted on the request, the level and specifics of the hardware retrofit rebate program are subject to Council direction and approval. If Council approves the recommendations in this report, rebates up to $100.00 can be approved by staff. At the $100.00 rebate level, it is anticipated that approximately 1,375 rebates will be disbursed in Fiscal Year 1992-93. Attachment: Exhibit A I City of San Luis Obispo EXHIBIT A Analysis of Top Water Consumers Accounts in top 15% A B Water %of Water %of Water No.of Consumption Consumed Consumed Accounts in AF-1991 (of top 15%) (of 100%Demand) AlE.SI»NIAk$ilNtfViARY xx . Customer Class Multi-Family 615 673 25.60% 14.51% (110,120,199) Single Meter Rea 847 277 10.56% 5.98% Mobile Home Perks 16 220 8.36% 4.74% Rooming,Frets,etc. 64 49 1.87% 1.06% Condos,PUD's 11 3 0.11% 0.07%' (105) Subtotal 1,553 1,222 46.50% 26.36% .... POM MEHCI14L$U6i11NARY' .. X . Customer Class Commercial 289 397 15.10% 8.56% (200,270) Hotel/Motel 42 170 6.48% 3.67% (160,170) Restaurants 93 125 4.78% 2.71% Subtotal 424 693 26.36% 14.94% Miscellaneous Landscape 119 220 8.36% 4.74% Schools 14 68 2.60% 1.48% Other 65 425 16.18% 9.17% Subtotal 198 713 27.15% 15.39% TOTAL 2,175 2,628 100.00 56.69 Notes: 1. Column A shows the ratio of this class compared to the other top 15%water users 2. Column B shows the ratio of this class compared to all City customers(100%of demand). 3. Total Demand 1991 - 4,636 AF