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SR-101408-1D~® ~;tYa, City Council Report Santa blonicu City CounciLMeeting: October 14, 2008 Agenda Item: 1'-' D Ta' Mayor and City Council From: Dean Kubani, Manager -Office of Sustainability and the Environment Subject: Water-Efficiency Competitive Landscape Grant Program Modifications Recommended Action Staff recommends that City Council adopt changes to the Water-Efficiency Competitive Landscape Grant Program. Executive Summary Modifications are recommended for the Water-Efficiency Competitive Landscape Grant Program in order to improve program efficiency, increase participation and achieve immediate water savings. The modifications will reduce the categories for submission, encourage more applications, and focus on irrigation projects that can be completed in 180 days. There is no budgetary impact to the City for these changes. Background On January 13, 2004, Council approved modification of the Water Efficiency Revolving Loan Fund to the Water-Efficiency Competitive Landscape Grant Program to fund exterior water efficiency projects on private and public properties. On Rpril 27, 2004, Council approved specific categories and ranking criteria for the newly established Water-Efficiency Competitive Landscape Grant Program (Program). The Program is a competitive grant process where Santa Monica. property owners compete for grant funding of up to $20,000 to design and install water-efficient landscapes. The projects are evaluated by City staff and ranked using various criteria. The projects with the most points are awarded funding. 1 Since 2004, approximately 90 grant applications have been submitted, and of these, 51 have been awarded funding totaling $583,035. To date, 31 of the funded projects have been completed. Discussion Based on four years of program implementation, input from applicants and feedback from various City staff who have served as evaluators, modifications are recommended to the categories and criteria of the program in order to improve cost-effectiveness, increase participation and achieve immediate water savings. The recommended changes are as follows: • The competitive element of the .grant funding process will change from a competitive grant program to a first come, first serve grant program. • The number of eligible categories will be reduced from one required category (water-efficient irrigation) and three optional categories (Urban Runoff, California Friendly Plants, Innovative Water Savings) to one required category (water- efficient irrigation) and one optional category (water-efficient plants). • Ranking criteria that were previously based on overall project design with points awarded for each category will be .replaced with a menu of qualified irrigation components and climate-appropriate plants eligible for funding. • Funding will change to a maximum of $3,500 for water-efficient irrigation systems and $1,500 for water-efficient plants, for a total of up to $5,000 per project address but no more than 50% of the total project cost. All projects must be completed within 180 days. • Reserve $30,000 in grant funds to install a new demonstration. garden at the existing garden\garden landscape project located at 1718 Pearl Street. This change will achieve maximum outdoor water savings, while promoting the use of locally adapted plants. It will also aid property owners in compliance with the Green Building Ordinance that stipulates specific guidelines for water-efficient irrigation systems and plants. The funding of urban runoff design elements will be excluded because the new Rain Harvest Rebate Program offers property owners rebates from $45-$500 to install urban run-off mitigation products, such as rain barrels, cisterns, or downspout redirect devices. The Innovative Water Savings category has been eliminated in order to direct funding to water-efficient irrigation systems that will produce immediate and sustained water savings. 2 Offering two distinct categories and funding amounts provides the opportunity for more projects to meet the basic criteria and be awarded grants. In the past, only projects that included elements from each category were awarded funding. This essentially eliminated small projects that requested funding only for the upgrade of irrigation systems and plant material. New construction projects or major remodels would not be eligible. Based on the current grant program results, these types of projects take, on average, 2-4 years to complete their landscape and irrigation installations. The recommended changes would achieve water savings more rapidly because projects would be completed within 3 months as compared to 2-4 years. The proposed new demonstration garden will serve as an aesthetically pleasing model for property owners who want to install more sustainable gardens that are in compliance with the Green Building ordinance. This project will contrast the existing native plant and traditional plant garden by highlighting other sustainable landscape design features, such as a mix of turf alternatives, climate-appropriate plants, edibles, rain harvesting features, and water-efficient irrigation systems. The recommended changes will provide funding for an additional 56 projects, including the third installment of garden\garden, and result in an estimated water savings of 2,800,000 gallons each year. This will support the City's Sustainable City Plan's goal to reduce water use by 20% by 2010. It vyill also reduce the amount of urban runoff from polluting the Santa Monica Bay. Financial Impacts & Budget Actions There is no budgetary impact associated with the action recommended in this staff report. Funds are available in the Water Fund and Wastewater Fund capital accounts, M310082.589000 ($294,290) and M250082.589000 ($294,290). 3 Prepared by: Russell Ackerman, Water Resources Specialist Approved: Manager, Office of Sustainability and the Environment Forwarded to Council: City Manager 4