Title
Apply for Water Infrastructure Finance Authority - Water Conservation Grant Fund opportunity: High Efficiency Toilet Replacement, Smart Irrigation Controller, and Turf Conversion Rebate Programs (Ordinance S-49949)
Description
Request to retroactively authorize the City Manager, or his designee, to apply for and accept, if awarded, enter into an agreement for disbursement of Arizona state and Federal funding from the Water Infrastructure Finance Authority, beginning on or about May 2023 through Fiscal Year (FY) 2026-27 the Water Conservation Grant Fund (WIFA-WCGF) opportunity. Further request to authorize the City Controller to disburse all funds related to this item. The total grant funds applied for will not exceed $3,105,000 and the City's local match will not exceed $2,600,000.
Report
Summary
The Water Services Department (WSD) submitted a grant application to the Water Infrastructure Finance Authority for a Water Conservation Grant Fund award. This award would be used to offer rebates/incentives to WSD customers for replacing their toilets with a high-efficiency toilet; installing a smart irrigation controller; and/or converting turf grass to desert-adapted landscaping. If awarded, WSD would initiate a program of accepting application for rebates, verifying program eligibility requirements are met, and issuing rebates in the form of a check. The rebate programs would meet an increasing demand for rebates throughout the city and fulfill components of the city's Drought Management Plan.
The grant programs would be phased in over the grant period of FY 2023-24 through FY 2026-27 with operations beginning as soon as possible. The deadline to utilize The WIFA-WCGF funds is Dec. 31, 2026.
The WIFA-WCGF submittal deadline was May 19, 2023.
Due to the timing of the deadline put forth by WIFA, WSD submitted applications prior to obtaining City Council approval. If City Council does not approve this retroactive request, the application will be withdrawn by WSD.
Financial Impact
The estimated total cost for the project is approximately $5,705,000. The maximum WIFA award is $3,100,000. The required local match, if awarded, is 25 percent of the award. If the maximum award is received, the minimum match is $776,250. WSD projects a water savings of 273 acre-feet of water as a result of only two years of the program's operation. The lifetime savings is estimated to be 1,500 acre-feet. WSD plans to go beyond the match, not to exceed $2,600,000.
Funding for the local match is available in the Water Services Department's operating budget. There is potential for additional match funding from upcoming Bureau of Reclamation grant opportunities for water conservation related work.
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Water Services Department.