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Home My WebLink About11/20/1990, 7 - ADDITIONAL FUNDING FOR TOILET REBATE PROGRAM __ MEETING DAO! O EE !�� h°II1iiI�U° ��U�U city of San Cues osIspo COUNCIL AGENDA REPORT ITE NUMBER: FROM: William T. Hetland W 'lv PREPARED BY: Ron Munds'J"> Utilities Director Water Conservation Coord. SUBJECT: Additional Funding for Toilet Rebate Program CAO RECOMMENDATION: By motion, approve: 1. Additional funding not to exceed $100,000 from the 1989/90 Water Fund Carry-Over, for the Toilet Rebate Program; and 2. A rebate amount of $80.00 per Ultr-Low Volume (ULV) toilet installed after June 1, 1990. DISCUSSION Background At the June 6, 1990 City Council meeting, Council approved the funding for the Toilet Rebate Program for the amount not to exceed $100, 000. As of October 5, 1990, $100,000 has been rebated to the water customers of San Luis Obispo. The program has been extremely successful both in encouraging San Luis Obispo residents to replace their high gallonage toilets with ULV toilets and in aiding the City in obtaining the long-range goal of reducing over-all water consumption within the city. The program has also created a positive response from the public. The general consensus is that by instituting this program, the City is taking steps to assist the community in our current water shortage situation. The only negative reaction has been from mobile home park residents j and apartment owners who have basically been excluded from participating in the program because of the Council decision to i limit the rebate to three (3) toilet per applicant. Staff made the distinction that the applicant must have a water account number to qualify for a rebate for bookkeeping purposes. Since most mobile home parks and multi-family complexes have one master meter, they i were entitled to only three (3) toilets for the entire park or complex. It was the original intent of the Toilet Rebate Program to concentrate on single family water customers and allow the Water offset (retrofit) Program focus on the other water users. Since the initial conception of the Toilet Rebate Program, the Water offset Program has had limited activity due to the slow down in building project within the city. Therefore, many of the large water accounts with multi-units have not been approached by developers to be retrofitted and are not allowed to fully participate in the Toilet Rebate Program. It is still a concern of staff that a disproportionment of funds could be utilized by a few large water account holders which would impact the funds available for single family customers. Because of this potential problem, staff recommends that the City continue the program as it is presently established. 74 li,.""' lil,l�l��lp6 lll�ll city of San LUIS 0131SPO NaZa COUNCIL AGENDA REPORT Toilet Rebate Program, Phase II Page 2 It is estimated that there are 25,000 toilets in the City. WATER SAVINGS ESTIMATION Approximately 3,000 toilets have been retrofitted from Assumption: A 5 gallon per flush toilet is 1 participation in the water replaced with a 1.5 (ULV) gallon per flush toilet Offset and Toilet Rebate in a one (1) bathroom house. Programs. Assuming the average toilet uses 5 gallon per flush Water Usage: As part of a HUD "Survey of and all the toilets are Water Fixture Use study, it has been retrofitted within the city, the determined that the ULV toilet water savings is approximately .04 acre feet per year when a 5 potential water savings per year gallon toilet is replaced with a 1.5 gallon toilet. would be approximately 1, 000 acre feet (see box) . This Calculation of Water Savings: Number of demonstrates the enormous water toilets times the water savings per toilet equals savings potential from this type acre feet per year saved. i of program. Example: 25,000 toilets � Because of the potential water X .D4 acre feet savings, staff recommends that 1,000 acre feet per year the City continue the funding of saved this program and that all toilets within the City of San Luis Obispo purchased after June 1, 1990 be eligible for the Toilet Rebate Program. Consequences of Not Taking Recommended Action 1. The loss of potential water savings if this program is not continued. 2. The perception that the City is not offering solutions to .the present mandatory water conservation situation and addressing the long-range goal of reducing water consumption throughout the City. I I CONCURRENCES The Finance Department concurs with the recommendation presented in this report. FISCAL IMPACT A total cost of $100,000 is proposed for Phase 2 of the Toilet Rebate Program, to be funded from the 1989/1990 Water Fund Carry- Over. Funding is adequate from this source as approximately $574,000 are available in carry-over funds. i �� i�►;i�iIIIIfI�� Il city of san tins osispo COUNCIL AGENDA REPORT Toilet Rebate Program, Phase II Page 3 ALTERNATIVES The following are alternatives Council may want to consider, beginning with the staff recommendation followed by options in order of staffs preference: 1. Continue the Toilet Rebate Program as it is presently established, 3 toilets per applicant and water account number. The advantage of this alternative is that all forms and procedures are established and working. The disadvantage is II that not all San Luis Obispo water customers can fully participate. 2. A sliding scale rebate amount could be used for single meter, multi-family complexes. The following is an example of this concept: NUMBER OF TOILETS PURCHASED REBATE AMOUNT 1 to 3 $80.00 per toilet 4 to 10 $50.00 per toilet. 11 plus $35.00 per toilet The advantages to this alternative are: A. The sliding rebate amount can be justified because of the decrease in labor expenses associated with the installation of the larger number of toilets. A random survey of plumbing contractors showed that the price of installation is negotiable depending on how many toilets are installed and; B. Single family water accounts will continue to receive the maximum rebate. The disadvantage is the administrative and bookkeeping problems which will arise tracking the various rebate amounts to the different water accounts. Staff will have to scrutinize each application to determine the amount of rebate the applicant is eligible to receive if they have previously applied for a rebate. Because of the administrative problems, this alternative is not recommended. 3. Council may consider lowering the rebate amount to $50. 00. The advantage to this alternative are: A. Potentially more toilets will be replaced using the same amount of money and; -3 city of San Luis OBISpo Mi;% COUNCIL AGENDA REPORT Toilet Rebate Program, Phase II Page 4 B. The impact on the rebate funds would not be as great if Council decides to include all toilets replaced within the City during this phase of the Toilet Rebate Program. i The disadvantage to this alternative is that this amount may not be incentive enough for water customers to incur the expense of purchasing and installing the ULV toilets. It has been established that the average cost of purchase and installation of the ULV toilets is $200.00. Because of this, staff does not recommend the lowering of the rebate amount to $50.00. i 4. Council may consider not granting more funds to continue the Toilet Rebate Program. With the City facing a possible fifth dry winter, staff does not recommend this alternative at this time.