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HomeMy WebLinkAbout05 AUTHORIZATION TO CONTINUE PROVIDING SUPPLEMENTAL FUNDING TO THE MWDOC TURF REMOVAL PROGRAM1'tY OAGENDA REPORT ASTti MEETING DATE: AUGUST 4, 2015 TO: JEFFREY C. PARKER, CITY MANAGER Agenda Item Reviewed. City Manager Finance Director 5 FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: UPDATE ON THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY'S (MWDOC) TURF REMOVAL PROGRAM AND THE SUPPLEMENTAL PAYMENT PROGRAM SUMMARY In an effort to increase participation in the Municipal Water District of Orange County's (MWDOC) turf removal program, on June 2, 2015 the City Council authorized amending the agreement to provide supplemental funding in the amount of one dollar per square foot of turf removed. The supplement has proven to be an extremely effective incentive for Tustin Water Service customers to make the decision to replace their turf with drought tolerant vegetation or artificial turf. As a result, 120 customers are eligible to receive the additional $1 per square feet incentive and are proposing to remove over 250,000 square feet of turf. RECOMMENDATION It is recommended that the City Council appropriate $200,000 from Water Enterprise Reserve Fund Balance for additional customer rebate incentive activity to provide the one dollar supplemental incentive per square foot for all residential turf removal applications received prior to July 9, 2015. FISCAL IMPACT The City budgeted $100,000 for fiscal year 2015/2016 in the Water Operating budget to provide supplemental incentives. An additional $200,000 will be required to provide the incentive to eligible residential Tustin Water customers who submitted their application prior to July 9, 2015. CORRELATION TO STRATEGIC PLAN The participation in the turf removal program contributes to the fulfillment of the City's Strategic Plan Goal G: Strong Community and Regional Relationships. Specifically, this project implements Strategy #2, which encourages working collaboratively with agencies outside Tustin on issues of mutual interest and concern to the parties. BACKGROUND The City of Tustin signed an agreement with MWDOC to participate in the turf removal program on May 14, 2014. Since that date the City has received over 240 applications Update on the Turf Removal Program August 4, 2015 Page 2 from customers of Tustin Water Services, who proposed to remove over 400,000 square feet of turf from their property. On April 1, 2015 Governor Brown issued Executive Order B-29-15, which called for a statewide initiative for local agencies to remove 50 million square feet of lawns and ornamental turf with drought tolerant landscapes. In an effort to meet this challenge by the State and continue the strong participation from Tustin Water Service customers, the City Council authorized providing a one dollar supplement for its customers. The response was overwhelmingly positive from our customers and a significant number of applications were received shortly afterwards by staff. On July 9, 2015 MWDOC announced to participating water agencies that current funding for the program had been exhausted and that the turf removal program would be placed on hold until additional funding could be provided. Reviewing the applications that have been received by the City since June 2, over 250,000 square feet of turf has been proposed to be removed. However, this amount may change once the initial inspection has been conducted. In addition the City will continue to receive a limited number of applicants who have been placed on a waiting list by MWDOC. It is therefore recommended that City Council appropriate an additional $200,000 to provide the one dollar supplemental incentive per square foot for all residential turf removal applications received prior to July 9, 2015. Stack, P.E. Public Works/City Engineer