The URL can be used to link to this page

Home My WebLink About2009-05-12; Municipal Water District; 681; Apply for Grant from Bureau of ReclamationCARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL 13 AB# 681 MTG. 05/12/09 DEPT. PW-M&O AUTHORIZATION TO APPLY FOR A GRANT FROM THE U.S. DEPARTMENT OF INTERIOR, BUREAU OF RECLAMATION DEPT. HEAD^^ CITY ATTY. @^ CITY MGR. (jj — RECOMMENDED ACTION: Adopt Resolution No.1354 authorizing the Carlsbad Municipal Water District (District) Executive Manager to apply for a grant from the U.S. Department of Interior, Bureau of Reclamation under the Challenge Grant Program. ITEM EXPLANATION: The U.S. Department of Interior, Bureau of Reclamation is offering Challenge Grants/Water Marketing and Efficiency, for projects which help urban communities cope with water shortages and drought conditions. These grants provide cost-shared funding on a competitive basis for on-the-ground construction projects that will create water markets and make more efficient use of existing water supplies. Increasing the efficiency of existing water delivery systems across the West will help significantly increase future water supplies for farms, cities, people, and the environment. The total available nationwide funding has not been determined at this time; the decision on ultimate available funding will be made at a future date with consideration given to projects which address the overall purposes of the Recovery Act and the Reclamation's priorities, namely, to quickly and prudently commence activities which preserve and create jobs and promote economic recovery and to make more efficient use of existing water supplies. The Reclamation Department's share of any one proposed project will not exceed 50 percent of the total project costs. Awards will be limited to a minimum of $1,000,000 and a maximum of $5,000,000 in Federal funds. Applications will be ranked and selected according to their merit without consideration of the dollar amount requested. Applicant cost sharing in excess of 50 percent will be more favorably ranked during the selection process. All projects must be completed by September 30, 2011 and projects with a completion date of no later than September 30, 2010 will receive a higher ranking during the evaluation process. Projects that expand, protect, and conserve our nation's water resources through water conservation, efficiency improvements, and/or water markets will also be ranked higher. The due date for applications is May 22, 2009. Projects eligible for this grant funding include those that implement and/or use water banks, that improve water use and management through the use of improved technologies, that line pipes or canals to achieve water savings or that allow for more accurate measurement, tracking and distribution of water supplies through its distribution system. Projects that repair or replace existing infrastructure with like replacements that do not improve efficiency or effectiveness of water distribution over the expected life of the improvement are not eligible for funding. DEPARTMENT CONTACT: Cari Dale, 760-438-2722, Cari.Dale@carlsbadca.gov FOR CITY CLERKS USE ONLY COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED *D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER - SEE MINUTES D D D n Page 2 Staff is proposing to apply for funding for an Automated Meter Replacement Program. The program meets the grant criteria for eligibility and can be completed within the prescribed grant timelines. The proposed Automated Meter Replacement Program would replace existing manually read meters with meters capable of being read using radio waves to transmit meter reading data electronically to a central location. This new type of meters would also be equipped with acoustic leak detection technology for monitoring leaks allowing for real-time leak detection within the entire water system. Detecting leaks when they occur allows water to be conserved and for customers and for the District to minimize water waste. Quickly repairing known leaks also reduces large emergency capital repairs. The type of technology also offers the following added benefits: • Revenue and water losses due to tampering or other equipment damage would be minimized. Using this technology, the District will receive an alarm when there is no water consumption. Knowing that a meter is stuck as soon as possible helps to quickly identify and correct the problem and restore the meter to read status. • Real-time leak detection data can be stored electronically, mapped and be integrated with the billing software. Detecting leaks real-time could reduce liabilities and result in more timely repairs of broken water pipes affecting private properties. • Enhancements to sewer revenue may also be realized. For commercial/industrial accounts, sewer usage is based partially on water consumption. As water consumption is more accurately accounted for, sewer revenues may increase proportionately. • Automated Meter Reading technology reduces the need for current staff to manually read meters and drive reading routes which contributes to global warming, supporting a proactive approach to sustainability. • Staff will no longer have to walk or drive a route on a monthly basis or stoop and bend to get in position to read the meter register, thereby reducing work related injuries. • Staff will become quickly aware of leaks within the water distribution system resulting in timely repairs and reductions in water loss. Staff will also be able to notify customers of leaks that they are unaware of, reducing customer water losses and improving customer service. • As new customers move into and out of their residences, staff will be able to collect final and beginning meter reads automatically which will result in more efficient establishment of a new account, getting a final bill out to the former customer in a shorter period of time and reducing the need for staff time to manually record the meter read. • At a future date, water consumption data may be viewed by customers by accessing their account information via the internet. By making data available for use by customers, water use behaviors can be more easily modified, providing a tool for customers to conserve when faced with water cut-backs. Page 3 FISCAL IMPACT: The overall objective of a meter replacement program is to ensure that meters operate properly so that the proper amount of revenue is being collected from customers. Staff evaluated three scenarios to accomplish a meter replacement program; a 15-year replacement program replacing meters with manually read meters, a 15-year replacement program replacing meters with Automated Meters, and a 15-year program replacing meters with Automated Meters with partial supplemental grant funding. All three of the options accomplish the overall objective of a meter replacement program. The first two scenarios would be funded out of operating revenues with approximately the same amount of funding each year, resulting in replacement of the entire system within a 15 year period. The third scenario would partially fund the first three years of a 15-year program through a cost sharing agreement with the Bureau of Reclamation. The Bureau being responsible for 45% of the eligible expenses between now and September of 2010 and the Water Operating Fund being responsible for 55% of the eligible expenses. If approved by the Board, the District will apply for a grant estimated at $1.3 million. Implementing 15-year replacement program with Automated Meters, has an estimated payback of 30 years. If the District receives the partial grant funding, the payback period would be reduced to approximately 13 years. Approving the grant application submittal does not commit the Board to funding an Automated Meter Program. The Board will be given an option to make a decision regarding meter replacement funding when the operating budget comes forward for approval in June. ENVIRONMENTAL IMPACT: The application for or award of this grant does not qualify as a project under California Environmental Quality Act (CEQA Section 15738) and no environmental review is required. EXHIBITS: 1. Resolution No. 1354 , authorizing the application for a grant from the U.S. Department of Interior, Bureau of Reclamation for automated meter reading water meters and equipment programmed with leak detection technology. 1 RESOLUTION NO. 1354 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE 3 CARLSBAD MUNICIPAL WATER DISTRICT (DISTRICT) AUTHORIZING THE APPLICATION FOR A GRANT FROM THE 4 STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES REQUESTING GRANT FUNDING TOWARDS WATER LEAK 5 DETECTION EQUIPMENT. 6 WHEREAS, the U.S. Department of Interior, Bureau of Reclamation is offering Challenge 7 Grants/Water Marketing and Efficiency, for projects which help urban communities cope with water 8 shortages and drought conditions; and 9 WHEREAS, a proposed Automated Meter Replacement Program would replace existing 10 manually read meters with meters capable of being read using radio waves to transmit meter reading data electronically to a central location; and 12 WHEREAS, the proposed Automated Meters would be equipped with acoustic leak detection 13 technology for monitoring leaks allowing for real-time leak detection within the entire water system; 14 and -1C WHEREAS, an Automated Meter Replacement Program increases the efficiency of the ' ° existing water delivery systems will help significantly increase future water supplies for farms, 17 cities, people, and the environment; and 18 WHEREAS, the District wishes to submit an application requesting grant funds from the U.S. 19 Department of Interior, Bureau of Reclamation for an Automated Meter Reading Program and 20 equipment programmed with leak detection technology; and 21 NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District 22 Board of the City of Carlsbad, California, as follows: 23 1. That the above recitations are true and correct. 24 2. That the Carlsbad Municipal Water District Board authorizes the Executive Manager 25 to apply to the U.S. Department of Interior, Bureau of Reclamation requesting grant 26 funding towards the purchase of automated meter reading water meters and 27 equipment programmed with leak detection technology. 28 H- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 12th day of May, 2009, by the following vote to wit: AYES: Board Members Lewis, Kulchin, Hall and Blackburn. NOES: None. ABSENT: Board Member Packard. EWIS, President ATTEST: