HomeMy WebLinkAbout06/00/1990, 3 - TOILET REBATE PROGRAM MEMG DATE:
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COUNCIL AGENDA REPORT
FROM: William T. Hetland r PREPARED BY: Ron Munds
Utilities Director Water Conservation
Coordinator
SUBJECT: TOILET REBATE PROGRAM
RECOMMENDATION:
Approve funding not to exceed $100,000 dollars for the Toilet
Rebate Program, and rebate the amount of $80.00 dollars per Ultra-
Low-Volume (ULV) toilet installed after June 1, 1990.
DISCUSSION:
Background
At the April 17, 1990 City Council meeting, Council directed staff
to develop programs assisting water customers in water
conservation. By motion, Council specifically requested staff to
develop a Toilet Rebate Program.
It is estimated that there are 25,000 toilets in the City. These
toilets use between 3.5 gallons per flush to 7 gallons per flush.
Presently, 1.6 gallon per flush toilets are required in all new
construction. The retrofit program for development credits has
installed between 1,500 to 2,000 low flush-toilets leaving a
substantial number of higher gallonage toilets still being used.
The Federal Housing and Urban Development 1984 Residential Plumbing
Use Study determined that a person flushes the toilet on an average
four times a day at home. So, when an existing five-to-seven
gallon toilet is replaced by ultra-low-volume (ULV) 1.6 gallon
toilet, about 4.0 gallons per flush is saved resulting in a savings
of 16 gallons per person, per day. Assuming this savings happens
every day of the year, the annual savings is about 0.018 acre-feet
per person, per year which would be 738 acre-feet of water saved
each year by the 41,000 residents served by the City of San Luis
Obispo.
Other municipalities and water districts have implemented rebate
programs which have been successful. For example, Goleta Water
District has rebated approximately $900,000.00 for 13,000 ULV
toilets since 1987. Goleta's rebate amount is $80.00. The City
of Santa Monica has an aggressive rebate program with a goal to
replace 25% (16, 000 households) of the City's high gallonage toilet
with a ULV toilet within a five year time period. The budget for
the program is $2.8 million dollars funded by the Metropolitan
Water District, general water revenues, and a Conservation
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q$W jj city of saKIJI S oai spo 4
COUNCIL AGENDA REPORT
Toilet Rebate Program
Page 2
Incentive Fee added to each water bill. Santa Monica's rebate
amount is $100.00. Other examples of active rebate programs are:
tiv lity Rebate Amount
1. City of Santa Barbara $ 80.00
2. City of Los Angeles $100.00
3. City of Glendale, Arizona $. 50.00
It is important to understand that between the cost of the toilet
and the cost of installation, the range of cost to the customer
will vary. The following are the range estimations for toilet and
installation costs:
Range Average
Toilet Costs $90 to $225 $150.00
Installation $35 to $75 $ 50.00
Average Costs $200.00
For this program to be effective, a sufficient dollar amount must
be rebated as incentive to the customer to make this expenditure.
In the following section different alternatives will be discussed.
ALTERNATIVES:
The following table examines the different dollar amounts that
could be rebated, the estimated number of toilets that would be
installed based on a $100,000 program, and a estimated amount of
water saved from the installation ULV toilets:
$1000000 Rebate Program
Rebate Amount *Number of Toilets **Water Savings
$ 35.00 2,858 171 Acre Feet
$ 50.00 21000 120 Acre Feet
$ 80.00 1,250 75 Acre Feet
$100.00 10,000 60 Acre Feet
* The number of toilets is calculated by dividing rebate amount
into $1001000.
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COUNCIL AGENDA REPORT
Toilet Rebate Program
Page 3
** The water savings estimation is based on the assumption a 5
gallon toilet is replaced with a 1.5 gallon toilet in a residence
with one (1) bathroom and that 100% of the toilets are replaced at
the established rebate amount.
If the cash incentive is not large enough, the water customer will
not replace their high gallonage toilets. Staff recommends that
the amount of $80.00 be rebated to offset the average cost of
$200.00 for the purchase and installation of a ULV toilet. other
utility districts have found that a rebate amount in the $35.00
range was not sufficient incentive. Staff believes that $80.00
would offer adequate incentive to the water customer and reflects
what other successful rebate programs have offered.
The Water Conservation Coordinator will administer this program.
Customers can request rebate applications at the Water Conservation
Office or by phone. After receiving the returned applications,
Water Conservation staff will arrange an appointment to verify the
purchase and installation of the ULV toilet. Upon verification by
Water Conservation staff, a check for the amount of the rebate
would be paid directly to the water customer.
CONSEQUENCES OF NOT TAKING RECOMMENDED ACTION:
1. The loss of potential water savings if this program is not
implemented.
2. The perception that the City is not offering solutions to the
present mandatory conservation situation and addressing the
long-range goal of reducing water consumption throughout the
City.
CONCURRRENCE:
The Finance Department concurs with the recommendations presented
in this report.
FISCAL IMPACT:
Funds are available in the Water Conservation Budget. The
1989-90 and 1990-91 budgets both had $50,000 for a rebate program.
These funds will be used to fund the $100,000 Toilet Rebate
Program.
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AMY Of sar�-UI S OBI SPO �
COUNCIL AGENDA REPORT
Toilet Rebate Program
Page 4
RECOMMENDATION:
By motion, approve the Toilet Rebate Program in the amount of
$100,000.00 dollars with the rebate amount of $80.00 per ULV toilet
installed after June 1, 1990.
APPROVED:
V
John Dunn City Administrative Officer
ti
e Jo a n, ,4fity Attorney
zds
William Stfiffler, Finance Director
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