ITEM:		CONSENT CALENDAR
2.	CONSIDER ADOPTION OF RESOLUTION 2011-03 SUSPENDING RECEIPT OF LAWN REMOVAL REBATE APPLICATIONS UNTIL REBATE PROGRAM FUNDING IS RENEWED AND PROGRAM GUIDELINES HAVE BEEN REVISED
Meeting Date:			January 27, 2011	Budgeted:	N/A
From:			Darby Fuerst,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Pintar	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: As of January 7, 2011, $924,925 of funding for Rebates approved by the California Public Utilities Commission (D.09-05-029) for 2009-2011 has been refunded to California American Water customers located within the District. By Advice Letter on January 14, 2011, California American Water requested an additional $250,000 in Rebate funds, as authorized by the 2009 decision. It is anticipated that these funds will be available within approximately 30 days. In the interim, MPWMD is accepting, but not processing Rebate applications pursuant to Rule 141.

The Lawn replacement Rebate has been in place since January 1, 2010. During the past twelve months, 77 applications totaling $130,500 have been approved for removal of three acres of Lawn within the District and replacement of the Lawn area with drought tolerant plants or permeable surfaces. Lawn Rebates are deed restricted for 15 years, ensuring continuing water savings over a significant period of time.

After one year of experience in processing Lawn Rebates, staff has identified a need to update the program guidelines before processing more additional Rebates. The current suspension of the program due to funding circumstances makes this an appropriate time to address the staff concerns. Each application for a Lawn Rebate requires staff time to review the application and verify the existing conditions and wet weather conditions make it nearly impossible to verify the Lawn’s status. Resolutions 2011-03 suspends the Lawn Rebate Program until new guidelines and funding are in place. Draft guidelines are being prepared for review by the Water Demand Committee on February 3, 2011.

A resolution to suspend acceptance of applications for Lawn Rebates is needed to avoid unnecessary staff review of applications while program guidelines are updated. Rule 141 states that Rebates shall be issued by the District on a first-come, first-served basis as long as funds remain available. In the event that funds are expended, applications are to be filed in the order received. If all eligibility criteria has been met and additional funding is made available, Rebates are first funded for applications on file pending Rebate, with all subsequent applications taken in a first-come, first-served order as long as funding remains available. Lawn Rebates require significant staff time between the date of application and the completion of the Rebate. Suspending acceptance of applications during the interim avoids unnecessary staff efforts.

RECOMMENDATION: District staff recommends adoption of Resolution 2011-03 (Exhibit 2-A) Suspending Receipt of Lawn Removal Rebate Applications Until The Rebate Program Funding Is Renewed And Program Guidelines Have Been Revised. Draft guidelines for the Lawn Rebate Program will be considered by the Water Demand Committee at its February 2011 meeting.

EXHIBITS

2-A Resolution 2011-03 Suspending Receipt of Lawn Removal Rebate Applications Until The Rebate Program Funding Is Renewed And Program Guidelines Have Been Revised

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