The Path to 2060:Water Conservation Program Update

Presented to the Dallas City CouncilApril 18, 2007

2

Briefing Purpose

Provide background on water conservation programProvide progress report on program activities and milestonesProvide information on regional Customer Cities conservation effortsSeek council support for items scheduled on April 25th agenda

Background

3

4

The Need for AggressiveWater Conservation

Integral part of Dallas’ long-range water supply strategy

Operational tool used to reduce peak requirementsDelays the need to develop expensive future water suppliesLowers capital and operating costs of existing systemRequired by state lawRequired to protect current water rights and to secure future water rights

5

Five Year Strategic Plan GoalGoal to achieve an average 1% per year reduction in overall water consumption over five years by:

Reducing seasonal peak demands;Reducing water loss and waste;Decreasing gallons per capital per day;

While:Maintaining quality of life; andAllowing for continued growth and economic development

6

Five-year Strategic Plan Approach

City Leadership & Commitment“Lead by example” by reducing the amount of water consumed by City operations

Enhanced Education & OutreachImpact customer attitudes and behaviors through public education efforts

Rebate & Incentive ProgramsMotivate customers to replace and/or retrofit high water use fixtures and devices

7

How Success is Measured

Total gallons saved based on system-wide measures and direct programs and servicesGallons per capita (GPCD) trends compared to annual rainfallPositive changes in public attitudes and behaviors based on annual surveys

8

Background:Gallons per Capita per Day

GPCD is intended to establish water-use benchmarks and to evaluate the effectiveness of conservation measures once implemented

Factors that impact gallons per capita:concentrations of commercial and institutional activityvariations in regional climates population and densityregional economic conditions and quality of water supplies the extent and effectiveness of local water conservation programsrates of unaccounted for water in a given distribution system

TWDB emphasizes that per capita estimates are not intended for making direct comparisons between cities

How We’re Doing

9

10

Gallons Per Capita Trends

200

225

250

275

300

FY96FY97FY98FY99

FY00FY01FY02

FY03FY04FY05FY06

FY07FY08FY09FY10

Tota

l GPC

D

Estimated GPCD without conservation

Projected GPCD based on 5%Reduction over 5 years

Time-of-day wateringRestrictions adopted

11

City of DallasConsumption (GPCD) vs Annual Precipitation

20

25

30

35

40

45

50

FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06

Ann

ual P

reci

pita

tion

190

210

230

250

270

290

GPC

DHistorical Annual Average Rainfall

How We Compare

12

13

Texas City ComparisonsPer Capita Investment in Conservation (2006)

San Antonio Water Systems (SAWS) has an average 4.5 dollars per capita spent on conservation Austin Water Utilities (AWU) 4.9 dollars per capita servedEl Paso Water Utilities (EPWU) 6.6 dollars per capita servedDallas Water Utilities (DWU) 3.0 dollars per capita served

Annual Budget ComparisonsFY2002 FY2003 FY2004 FY2005 FY2006

SAWS $4.6M $5.18M $6.16 $4.89M $5.38M

AWU $3.4M $3.1M $2.7M $2.8M $4.6M

EPWU $1.5M $2.82 $5.4M $4.09M $3.88M

DWU $2.2M $2.2 $2.4M $2.4M $3.7M

Texas Cities GPCD Comparison

120

140

160

180

200

220

240

260

280

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

GPC

D

AustinSan AntonioEl PasoCity of Dallas OnlyLinear (City of Dallas Only)Linear (Austin)Linear (El Paso)Linear (San Antonio)

Note: Comparison does not include Industrial Customers 14

GPCD Comparison DWU Retail and Wholesale

120

140

160

180

200

220

240

260

280

FY96FY97

FY98FY99

FY00FY01

FY02FY03

FY04FY05

FY06

GPC

D

City of Dallas WholesaleCity of Dallas RetailLinear (City of Dallas Retail)Linear (City of Dallas Wholesale)

Note: Comparison includes Residential/Industrial/Commercial/Institutional Customers

15

16

Regional Customer Cities Efforts

Subject to same restrictions on curtailment during drought conditionsRates structured to encourage conservation and reduce demandCharge a surcharge for high water usage during peak watering season

CarrolltonFlower MoundCoppellIrving

17

Regional Customer Cities Efforts continued

Enforce time-of-day watering restrictionsMandate sprinkler system repair and maintenanceRequire rain and freeze sensing devicesMaintain Xeriscape demonstrationgardens

18

Regional Customer Cities Efforts continued

Partner with City of Dallas on education and outreachOffer free promotional devices to encourage water conservationOffer water-wise brochures and educational materialsMaintain website links devoted solely to water conservation education

Activities Completed in FY 05/06

19

20

City Leadership & CommitmentLandscape Irrigation Maintenance & Design Strategies

Performed detailed irrigation system audits on 3 high traffic city facilitiesSkyline Branch LibraryFire Station #10Kiest Park

Landscape upgrade installations for Skyline Library and Kiest Park targeted for Spring 2007Facility upgrades for Fire Station #10 coordinated with capital bond programs (Project scheduled to commence in late Fall 2007)

21

City Leadership & CommitmentIndoor Plumbing/Fixture Replacement Strategies

Surveyed indoor plumbing fixtures at 25 city facilities

A total of 152 plumbing fixtures replaced yielding an estimated annual water savings of 2.7 MG

Details on pages 64 and 65

22

City Leadership & CommitmentLocal, Regional & State Support

Increased exposure of program at state and national levels

Program highlighted on American Water Works website in August 2005Hosted Water Conservation forum for customer cities featuring nationally recognized conservation authority, Amy Vickers in August 2005Hosted statewide forum on Water Conservation in January 2006

23

Enhanced Education & OutreachPublic Education Strategies

2006 Public Awareness Campaign HighlightsMomentum remains high

0%

10%

20%

30%

40%

50%

60%

70%

2004 2005 2006 0%

10%

20%

30%

40%

50%

60%

70%

2004 2005 2006

*Citizen Recall of Advertising About Water Conservation Ordinance

*Self Reported Change in BehaviorAfter Exposure to Advertising

*Source: Random survey conducted by Hill Research Consultants

24

Enhanced Education & OutreachPublic Education Strategies continued

Developed Environmental Educational Initiative (EEI) in collaboration with Department of Sanitation

Hamline University and University of North Texas hired to assist staff in program development andadministrationOver 1,300 children participated in program in 2006

Details on page 66

Too Good to Throw Away

DemasiadoBueno Para Tirar

25

Enhanced Education & OutreachPublic Education Strategies continued

EEI program augments city’s relationship with Dallas and Richardson ISDs

Water Conservation component of program to receive *Water Mark Award for Communications Excellence in April 2007

*Water Mark Award issued by Texas American Water Works Association & WaterEnvironment Association of Texas

26

Enhanced Education & OutreachPublic Education Strategies continued

Other School Activities“Dew” elected as water conservation mascot by local school children

Mascot program received Water Mark Award in April 2006

27

Enhanced Education & OutreachGrass Roots Efforts

Annual Water-wise Garden Tour (formerly Xeriscape Tour) held June 2006

An estimated 1,480 citizens participated2 Customer Cities participated as Tour headquarters

AddisonDuncanville

2 Customer Cities’ demonstration gardens featured on tour

DesotoCoppell

28

Enhanced Education & OutreachGrass Roots Efforts continued

Semi-annual Water-wise SeminarsHeld March 11 and September 9, 2006

An estimated 475 citizens attended

In FY 05-06 staff attended 34 trade fairs and special events reaching an estimated 5,960 residentsIn FY 05-06 staff conducted 27 speaking engagements reaching an estimated 20,413 customers

29

Rebates & Incentives Residential Strategies

Phase ILaunched Minor Repair Fixture Replacement Program (formerly VIP)

Program designed to serve low income and elderly customers

834 fixtures installed or replaced116 leaks repaired

454 households served335 toilets replaced286 faucets repaired/replaced203 showerheads replaced10 water heaters replaced

An estimated 3.1 MG saved annually

FY 06-07 Planned Activities

30

31

City Leadership & CommitmentLandscape Irrigation Maintenance & Design and Indoor Plumbing/Fixture Replacements

Continue landscape audit program3 additional designs planned in 2007

Continue and expand plumbing fixture replacementsCurrent Progress

24 new facilities selected and scheduled for auditsDetails on page 67

Landscape architect developing design plans for May installation

Development code review related to water conservation

32

City Leadership & CommitmentLocal, Regional & State Support

Support and encourage state and regional water conservation education campaigns

Currently in negotiations with Tarrant Regional Water District to license “Save Water” brand for use in their service area

33

City Leadership & CommitmentLocal, Regional & State Support continued

Water IQ ProgramIntroduced as Texas Water Development Board’s Water Conservation Public Awareness campaign in 2005Currently used by North Texas Regional Water DistrictUnder consideration as option for state funded water conservation education campaign

34

City Leadership & CommitmentLocal, Regional & State Support continued

Promote *Water IQ as water education umbrella for all Dallas water issues

Water Shed EducationWater QualityGrease AbatementStorm Water ManagementUse Dallas’ “Save Water” brand under Water IQ umbrella in support of TexasWater Development Board public education program

Water Quality Storm Water Management

Grease Abatement Water Conservation

35

Enhanced Education & OutreachPublic Education Strategies

Expand EEI program to include grades 6-8Increase participation in teacher training component of program

Current ProgressMiddle school program unveiled at press event on March 13, 2007

36

Enhanced Education & OutreachPublic Education Strategies continued

Media campaign started earlier in 06/07 Media placements began in February 2007 due to drought and expanded time of day watering restrictionsCampaign historically begins June 1 each yearCampaign will end earlier (July 2007) due to increased spending to expand media buysAgenda item to extend campaign and services contract with Burson-Marsteller scheduled for April 25th

37

Enhanced Education & OutreachGrass Roots Outreach Strategies

Landscape Irrigation Audit ProgramProvide on-site consultation for ornamental horticulture and irrigation needs for single family and multi family Dallas water customers

Conduct site inspection to determine condition of each zoneMeasure zones to determine precipitation rates, distribution and uniformity and determine estimate of irrigation efficiencyProvide detailed results of audit and recommendations

Estimated annual costs of $101,512 (in current budget) Current Progress

Two internal positions for landscape auditors targeted to be filled by Summer 2007

38

Enhanced Education & OutreachIndustrial, Commercial & Institutional (ICI) Educational Strategies

Commercial Cooling Tower Audit Program Purpose

Increase cooling tower efficiencyReduce water consumptionLower water/wastewater billsIncrease customer involvement in conservation

ProcessInspect cooling tower systemInspect other equipment to improve water savingsCollect water samplesComplete lab analysis on samples collectedProvide findings and recommendations to customer

Estimated Costs & Water Savings2006/2007

$22,860 for approximately 25 audits (in current budget)SAWS estimated annual savings of 12.5 MG per audit

Current ProgressThree audits performed as of March 2007

39

Enhanced Education & OutreachICI Educational Strategies continued

Expand outreach for ICI customers by developing and implementing a comprehensive water audit program using Austin and San Antonio models.For example:

Lawn conversion rebate programsRainwater harvesting/ condensate reuseCommercial laundries rebate programs

40

Rebates & IncentivesResidential Strategies

Phase I (Implemented in Fall 2005)Initiation of Minor Plumbing Repair Program for senior and low-income customers (formerly the VIP program)

Previously mentioned on slide 18

Phase II (April 25th agenda item)Toilet Voucher Program

Single and multi family customersQualified customers will redeem a voucher for up to $90 of the cost of a low-flow toilet at identified retailers

Goal to distribute 4,253 toilets per year (21,265 toilets over five years)

Sample approved toilet list on page 68Sample voucher on page 69

41

Rebates & IncentivesICI Strategies

Commercial Food Services Program (April 25th

agenda item)Provide free low-volume pre-rinse spray nozzle and faucet aerator installations to commercial food establishments including schools and hospitalsGoal to install 2,000 spray nozzles and 500 faucet aerators per year for first four years and 1,000 nozzles and 500 aerators for fifth year (9,000 nozzles and 2,500 aerators over five years)

Samples of existing pre-rinse spray nozzle programs on pages 70 and 71

42

Rebates & IncentivesResidential & ICI Programs

OverviewBoth programs adopted in Water Conservation Five-year Strategic PlanBoth programs recommended in Texas Water Development Board’s Best Management Practices Guide for Water ConservationBoth programs to be administered by outside contractorEstimated water savings for both programs at end of five years is 600MG per year

43

Rebates & IncentivesResidential & ICI Programs continued

Toilet Voucher Program Customer will have choice of pre-approved toiletsCustomer will be responsible for installationCustomer will be responsible for any costs that exceed face amount of voucher

Commercial Food Services ProgramSupplies, installation and training will be provided to customer

44

Rebates & IncentivesResidential & ICI Programs Customer Qualifications

Toilet Voucher ProgramCustomer of DWUResidence must have been built before 1992Will not replace existing low flow toiletsSF residence can receive maximum of two toiletsOwners/managers of multifamily residential units may apply for up to 200 toilets per year

Commercial Food Services Program

Food service providers that areDWU customersEstablished for two years or more and do not have existing high efficiency spray nozzlesFocus on establishments that use tableware

45

Rebates & IncentivesResidential & ICI ProgramsContractor Services

Request for ProposalsBids submitted by:

WaterWise Consulting, Inc. – Pasadena, CAProposal for Toilet Voucher Program

SBW Consulting, Inc. – Bellevue, WAProposal for Commercial Food Services Program

Niagara Conservation – Cedar Knolls, NJProposal for both Toilet Voucher and Commercial Food Services Program

Contractors Bid to perform these tasksContractor Responsibility Toilet Voucher

ProgramCommercial FoodServices Program

Develop Database

Create Marketing/Outreach Strategy

Establish Relationship with Retailers N/A

Issue Voucher that customer can redeem N/A

Maintain bilingual customer service call center

Make appointments with customer through call centerand field canvassing

N/A

Install fixtures N/A

Train facility staff on proper use of nozzle N/A

Audit facility for additional water saving opportunities N/A

Conduct quality control inspections *

Respond to customer complaints by phone/site visit

Monthly and annual reports including program overview,production report, program funding, accomplishments

*City staff will handle this process46

47

Rebates & IncentivesResidential & ICI ProgramsContractor Selection

Niagara offered the best proposal including the lowest price for both programs

Established in 1977 to manufacture products that save natural resourcesProvide audits, installation services and program management services to water and electric utility industryHave 20+ years of experience administering conservation programsRecommend two-year contracts with three optional one-year renewal terms

Client list on page 72

48

Toilet Voucher Program Costs

Unit Annual 5 yearProgram Admin $39.50 $168,000 $840,000Voucher Cost $90.00 $382,770 $1,913,850

Total $129.00 $550,770 $2,753,850

49

Commercial Food Services Program Costs

Unit Annual 5 yearSpray Nozzle $145.00 $290,000 $1,305,000Faucet Aerator $.50 $250 $1,250

Total $145.50 $290,250 $1,306,250

Cost includes administration, installation and materials.

50

Agenda Items Scheduled forApril 25th

One agenda item for three actionsToilet Voucher Program

Services Contract for program administrationAuthorize vouchers for toilet replacements

Commercial Food Services ProgramServices Contract for program administration, installation and training

Agenda item to extend media campaign and services contract

51

SummaryWater Conservation program plays an integral role in city’s long range water supply strategy

For example: Development code review related to water conservation

Conservation strategies have helped to reduce GPCD and peak demand since 2001

34BG saved since 2001Conservation efforts are not a “quick fix”

We use long-term trends to project long-term savings and water supply needs

Seeking council support for agenda items for furtherance of conservation efforts

52

Next Steps

Recommend approval of April 25thagenda items

Toilet vouchers, program administration, pre-rinse spray nozzle program

Niagara Conservation

Contract extension for advertising campaign

Burson-Marsteller

APPENDIX

53

54

Council Actions Taken To Address Need for Aggressive Water Conservation(2001-2006)

2001Amended Water Ordinance to include mandatory watering requirementsAdded conservation tier to rate structure to encourage water conservation

2002Authorized public relations firm to help develop and implement aggressive multi-media public education campaign

2004Approved hiring of technical consultant to help develop five-year strategic plan on water conservationAuthorized the implementation of a temporary rain/freeze sensor rebate program

2005Adopted updates to 1999 Water Conservation & Drought Contingency PlansAdopted Five-year Strategic Plan on Water Conservation Authorized a thirty-six moth contract with Burson-Marsteller for continuance of Public Awareness campaign

55

Council Actions Taken To Address Need for Water Conservation continued

2006Authorized minor plumbing repair and fixture replacement program for low-income and senior citizensAuthorized contract to hire educational consultantAmended Water Ordinance to prohibit watering from April 1 through October 31

Formerly, watering prohibited from June 1 through September 30

Authorized an extension of Stage 1 of Drought Contingency Plan

56

Authorized Program Spending2002-2003

$2.2M

2003-2004$2.2M

2004-2005$2.4M

2005-2006$2.4M

2006-2007$3.7M