Ian Achimore Senior Watershed Manager Santa Ana Watershed Project Authority June 28, 2018
Emergency Drought Grant Program Components Focus of presentation is on Conservation-Based Water Rates
Scope of Conservation-Based Rates Component SAWPA provides funding and technical assistance (w/ Tom Ash of IEUA) to retail water agencies Funding = $215,030 per retail water agency Two phased funding approach (50% : 50% split of $215,030) to incentivize adoption
Partnership with Retail Agencies Grant Agreement Individual Sub- Agreements
Summary by Retail Agency Sub-Grantee Conservation-Based Rates Status Chino Rate study finalized; rates adopted on June 19, 2018. Chino Hills Rate study finalized; rates adopted on May 8, 2018. Cucamonga Valley Water District Rate study finalized; Board decided not to utilize rates on September 20, 2017. East Valley Water Rate study finalized; Adopted rates in June 2015. District Garden Grove Rate study finalized; Council decided not to utilize rates on August 22, 2017. Hemet Ongoing study; rate adoption scheduled for Fall 2018. Rialto Rate analysis finalized April 2018; moving forward with rates after deadline of Grant Agreement. San Jacinto Rate study finalized; Council decided to not utilize rates on December 5, 2017. Tustin Rate study draft finalized; moving forward with rate setting process after deadline of Grant Agreement.
Major Reasons Retailers End Participation in Rates Component A. Issues with out-of-date billing systems that cannot calculate water-use budgets at the customer level, B. Results from their recent rate studies that analyzed the implementation of conservation-based rates, C. Decisions by their councils/boards, and D. Feedback from management. Retailer: Major Reason: D B, C B, C A B, C
Remaining Cities Participating Chino Chino Hills Hemet Prop 218 Hearing: June 19, 2018 Implement rates: November 2018 Prop 218 Hearing: May 8, 2018 Implement rates : October 2018 Rate study draft, Rate adoption planned for Fall 2018.
Applying Savings to Three Agencies Grant savings from 5 agencies ending participation: $711,000 total Allocated between 3 remaining cities to serve as a further incentive to adopt rate structure: $237,000 per city Additional $237,000 would increase Sub-Grantee agreements to $450,000 per agency Note: Offer to provide further funding was conveyed to Chino and Chino Hills before their rate hearings.
Incentivizing Rate Adoption Phase 1 (Study) Phase 2 (Adopt and Implement) Total Sub-Grantee Agreement $107,515 $107,515 $215,030 Phase 1 (Study) Initial Allocation Proposed Allocation Phase 2 (Adopt and Implement) Total Sub-Grantee Agreement $107,515 $344,789 $452,303
Ensuring All Funding is Utilized Chino Hills and Chino are moving forward with rates at an accelerated pace. Hemet has projected that they can cover their projected rate conversion costs within the new Sub- Grantee agreement amount of $450,000. If any of the cities do not need up to $450,000, those left over funds would be allocated amongst the others.
Recommendation Approve the following: 1) Distribution of the Conservation-Based Water Rates Project s cost savings to the three remaining participating cities: Chino, Chino Hills and Hemet; 2) Preparation and execution of amendments to the three cities Sub- Grantee agreements.
Ian Achimore Senior Watershed Manager Santa Ana Watershed Project Authority June 28, 2018
Emergency Drought Grant Program Components Project 1: Conservation Based Reporting Tools and Rate Structure Implementation Project 2: High Visibility Turf Removal and Retrofit
Note the Following Items The funding amounts for Project 2 show that the Sub- Grantee agreements have been amended, per the approval of the PA 22 Committee on August 24, 2017. That action increased the funding available to EMWD, IEUA and WMWD. The funding amounts reflect the latest invoices that have been submitted to SAWPA by April 30, 2018. Grant Agreement Amendment Approved by DWR June 7, 2018!
Overall Program Status Grant Required Total Funding Match In Grant $ 12,860,110 $ 7,051,533 $ 19,911,643 Agreement Invoiced ($) $6,344,247 $ 5,943,834 $12,288,081 Invoiced (%) 49% 84% 62%
Status by Individual Project Grant Funds Invoiced Invoiced Not Invoiced Scheduled dates of completion: 46% 56% Project 1: Dec 2018 Project 2: March 2019 54% 44% Project 1 Project 2
Status by Component (Project 1) 0.5% 99.5% Grant Funds Invoiced Invoiced Not Invoiced 5% 53% 83% 95% 71% Scheduled dates of completion: Mapping: (Completed) July 2017 Rates: Dec 2018 Geocoding : Dec 2018 47% 17% 29% Web-Based Tool: June 2018 Mapping Rates Geocode Web-Based Cloud ESRI Services ESRI Tool: August 2018
Status by Agency (Project 2) 30% Grant Funds Invoiced Invoiced Not Invoiced 19% 0% Scheduled date of completion: March 2019 98% 70% 89% 100% 81% 100% 2% 11% 0% EMWD IEUA OCWD* SBVMWD WMWD RCWD *OCWD has an agreement with MWDOC that passes down the conditions from their Sub-Grantee agreement to MWDOC
Turf Invoicing Although not all invoices have been received, the Sub- Grantees are making major progress and projects are being implemented. Some of the agencies are choosing to hold invoices until their overall turf removal program in their service area is complete. By holding invoices, a final and comprehensive invoice package that includes an agency s total turf removal costs can be submitted to SAWPA, which is beneficial for accounting and administration.
Questions
Ian Achimore Senior Watershed Manager Santa Ana Watershed Project Authority June 28, 2018
Background $83,605 in Prop 84 grant funds unallocated between turf agencies. Metropolitan Water District (MWD) biennial budget for FYEs 2019 and 2020 adopted Allocated $86M to Water Use Efficiency (WUE) Programs including new Landscape Transformation (rebate) Program PA 22 Committee requested update on planned activities of SAWPA Member Agencies and MWDOC to see the options for using this additional $83,605
MWD s Member Agency Administered Programs MWD also adopted a provision that up to 25% of a member agency s allocation, which are provided through their Member Agency Administered (MAA) programs, can be available for projects that include: Consumer landscape education workshops, Storm water capture workshops, Consumer landscape design help, and Public agency demonstration gardens. May be of interest to the PA 22 Committee and SAWPA plans to discuss with the Committee member s staff if a regional and multi-agency effort could be funded through this new MAA funding policy.
EMWD Considering adding an additional $ incentive on top of MWD s new turf rebate program for public agencies such as school districts. Implementing a Request for Proposals to acquire a landscape contractor/designer to create standard plans for large public agency turf retrofit projects.
IEUA Getting feedback from retailers on their preference for MWD s MAA Allocation Taking advantage of new 25% policy for landscape design services. MWD will lead administration of new turf rebate program in IEUA area. Planning to add $1 per square foot in addition to MWD s new turf rebate.
MWDOC/OCWD Considering having MWD administer new turf rebate program in MWDOC area. Considering using MAA allocation for landscape design assistance and pressure regulator valve install. Soliciting recommendations from MWDOC retailers for MAA allocation ideas.
SBVMWD Has existing $1 per square foot turf removal rebate program for drought grant. Pays an additional 25% of the base rebate amount provided by its retailers for items such as high efficiency toilets and turf removal. Launched SARCCUP Smartscape Program with retailers in 2018; implementing various tasks such as design assistance and workshops.
WMWD Planning to add an additional $1 per square foot on top of MWD s new turf rebate program up to a rebate cap of $150,000. Likely some of its retailers will also add funding in addition to MWD s base rebate amount. Considering using MAA allocation for devices such as water efficient sprinklers and urinals, as well as design assistance.
Analysis of Agency WUE Activities and Next Steps MWD s timeline for their rebate program may not fit within the Grant Agreement s new deadline of June 2019. Now working with SAWPA member agencies and MWDOC to utilize $83,605 with non-mwd projects. MAA allocation could be used for watershed-wide technical assistance or water efficient devices/turf, but each agency has different plans and SARCCUP Smartscape Program is being implemented already watershed-wide.
Ian Achimore Senior Watershed Manager Santa Ana Watershed Project Authority June 28, 2018
Background Executive Order B-37-16 signed May 2016. Joint Agency Report released April 2017 SB 606 and SB 1668 signed May 2018 Old State Policy: water conservation based on historical baselines. New State Policy: water use efficiency based on water budgets. New policy requires data tracking and analysis of irrigable/irrigated landscaping, weather, etc.
Enforceable Requirements on Urban Retailers Earliest Date Action Can Take Place State Water Board Action Required Remedy or Penalty Nov 2023 Informational Orders No action required; no penalties Nov 2024 Notices of Failure to Meet Objective May request retailer to address areas of concern in its next annual report; no penalties Nov 2025 Conservation Order May include measures designed to assist a provider in reaching its objective; no penalties Nov 2027 Orders and Regulations May be liable for fines of $1,000 per day and up to $10,000 per day if the violation occurs during emergency drought conditions Provided by WaterNow Alliance analysis; author Caroline Koch.
Drought Grant Experience 2015 Aerial Imagery Flight and Analysis. Web-Based Outreach Tool (OmniEarth). Web-Based Aerial Imagery Tool (ESRI). Geocoding and NAICS (Miller Spatial). Coordination with DWR on State-wide aerial imagery.
Potential Role for PA 22: Assist with Compliance Rolling out Aerial Imagery Tool (ESRI). Additional aerial flights, analysis and tools. Evapotranspiration monitoring stations. Budget-based rate assistance.
The Importance of Tools and Assistance Helps retailers with: Regulatory compliance (SB 606 and AB 1668). Water resource planning (supply and demand forecasts). Assisting customers and answering questions. Implementing water use efficiency programs. Implementing budget-based rates. Conducting customer water audits. Others.
Potential Funding for Additional Tools and Assistance Remaining drought grant funds. Future PA 22 budgets. MWD s MAA Allocation. Next steps: Gage success of existing Drought Grant tools, monitor funding options, and coordinate with other agencies on need for new aerial imagery.