REPORT TO THE CITY COUNCIL FROM: MICHAEL CARBAJAL, Director Department of Public Utilities BY: CHERYL BURNS, Senior Management Analyst Department of Public Utilities - Administration SUBJECT ..Title RESOLUTION - Authorizing an application by the Department of Public Utilities to the United States Department of the Interior, Bureau of Reclamation for a WaterSMART Grants: Water and Energy Efficiency Grant for Fiscal Year 2022 in an amount not to exceed $500,000 for the Smart Irrigation Controller Direct Install Program (Citywide). ..Body RECOMMENDATION Staff recommends that the City Council adopt a Resolution authorizing submission of an application by the Department of Public Utilities (DPU) to the United States Department of the Interior, Bureau of Reclamation (Bureau) for a WaterSMART Grants: Water and Energy Efficiency Grant (WaterSMART WEEG) for Fiscal Year 2022 in an amount not to exceed $500,000 for the Smart Irrigation Controller Direct Install Program, which will provide direct installation of smart irrigation controllers to City of Fresno water customers on a first-come first-served basis, and authorize the Director of Public Utilities or designee to execute all grant application documents on behalf of the City. EXECUTIVE SUMMARY As drought conditions have continued to worsen in California, the City has been actively engaged in efforts to promote water conservation throughout the City. The Water Conservation Program has proposed a Smart Irrigation Controller Direct Install Program, which will allow the City to provide water customers with free smart irrigation controllers on a first-come, first-served basis. Water Conservation staff will install the controllers at individual properties and program the timers to maximize the efficiency of the specific irrigation system. The Bureau provides 50/50 cost-share grants for water and energy efficiency projects such as the Smart Irrigation Controller Direct Install Program. DPU will apply for the WaterSMART WEEG, and if awarded, will implement a program to utilize the funding. The total cost for the project is estimated to be up to $1,000,000, and if awarded, 50% will be funded through the WaterSMART WEEG, with DPU providing matching funds for its respective portion of the project. BACKGROUND The City of Fresno provides potable water supply service to approximately 135,000 residential, commercial, industrial, and institutional customers within a geographic area that extends across approximately 110 square miles. As drought conditions have continued to worsen in California, the City has been actively engaged in efforts to promote water conservation throughout the City. The largest volume of potable water in the City of Fresno is used for landscaping. Residential outdoor water use in the City of Fresno accounts for nearly 70 million gallons of water per day, mainly for landscape irrigation. It is estimated that as much as 50 percent of this water is wasted due to overwatering caused by inefficiencies in irrigation methods and systems. WaterSense-labeled, weather-based irrigation "smart" controllers can significantly reduce overwatering by applying water only when plants need it, using local weather and landscape conditions to tailor watering schedules for a specific property's needs. With proper installation, programming, and maintenance, homeowners can use WaterSense labeled controllers instead of clock-based controllers on their irrigation systems and no longer worry about wasted water. The Water Conservation Program has proposed a Smart Irrigation Controller Direct Install Program, which will allow the City to provide water customers with free smart irrigation controllers on a first-come, first-served basis. Water Conservation staff will install the controllers at individual properties and program the timers to maximize the efficiency of the specific irrigation system. Through this program, the City expects to purchase approximately 1500 smart irrigation controllers to be distributed through the Smart Irrigation Controller Direct Install Program. The project is estimated to reduce total potable water consumption by approximately 360 acre-feet per year (AFY). The Bureau provides 50/50 cost-share grants for water and energy efficiency projects such as the Smart Irrigation Controller Direct Install Program. As the water purveyor, DPU will apply for the WaterSMART WEEG, and if awarded, will implement the Smart Irrigation Controller Direct Install Program to utilize the funding. The total cost for the project is estimated to be up to $1,000,000, and if awarded, 50% will be funded through the WaterSMART WEEG, with DPU providing matching funds for its respective portion of the project. Staff recommends Council adopt the attached Resolution authorizing the City to submit an application to the Bureau for a WaterSMART WEEG in an amount not to exceed $500,000. The proceeds from the WaterSMART WEEG will be used to purchase, distribute, and install smart irrigation timers to City of Fresno water customers on a first-come, first-served basis to reduce potable water demands on the City's public water system. ENVIRONMENTAL FINDINGS Pursuant to California Environmental Quality Act (CEQA) Guidelines section 15378, submitting this grant application is not a project for the purposes of CEQA. LOCAL PREFERENCE Local Preference was not implemented because this action does not include a bid or an award of a contract. FISCAL IMPACT This resolution will have no impact on the General Fund. Should the grant be awarded, the matching funds will be identified in future fiscal year Public Utilities budgets. The reduction in potable water use will result in energy and chemical savings from reduced groundwater pumping and water treatment. Attachment: Resolution