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STAFF REPORT <br />DATE: June 4th, 2026 <br />CONSENT <br />TO: Mayor and Councilmembers <br />FROM: Clarissa Hadler, Finance Director <br />AGENDA ITEM: Metropolitan Council Water Efficiency Grant Agreement <br />CORE STRATEGIES: <br />☐ Vibrant, inclusive, connected community <br />☐ Responsive, transparent, adaptive governance <br />☐ Managed Growth <br />☒ Efficient, reliable, innovative services <br />☒ Balanced Finances now and future <br />☐ Resilient Infrastructure <br />BACKGROUND: <br />ISSUE BEFORE COUNCIL: <br />Should the City Council approve the Grant Agreement with the Metropolitan Council for the Water Efficiency Grant? <br />PROPOSAL DETAILS/ANALYSIS: <br />The Metropolitan Council will reimburse 80% of the cost of the water efficiency replacement rebate program. We will <br />expand the program to apply to all grant eligible activities: Eligible water efficiency devices consist of the following: <br />Toilet replacement with a US EPA WaterSense labeled toilet <br />Irrigation controller replacement with a US EPA WaterSense labeled controller, either weather-based or soil <br />moisture-based <br />Clothes washing machine replacement with a US DOE Energy Star labeled clothes washing machine <br />Irrigation system audit by an Irrigation Professional certified by a US EPA WaterSense program <br />Staff will prepare advertisements, mailings, newsletters, online updates and social media updates to residents to <br />encourage participation in the program. Residents who are municipal water customers will be required to submit proof <br />of purchase of an eligible device and will receive reimbursement as a rebate posted to their water account the following <br />quarter. New construction and new developments are not eligible. <br />FISCAL IMPACT: <br />The grant provides for an initial reimbursement of up to $49,000. Additional funding is available if there is a greater level <br />of program participation than anticipated. The city must provide a 20% match ($12,250) of any Met Council grant funds <br />for a total two year budget of $61,250. In addition, the city and met council contributions cannot cover 100% of the cost <br />of the purchase. To simplify meeting this requirement, the city will ask that water customers cover an amount equal to <br />the sales tax associated with the purchase. <br />OPTIONS: <br />Approve the Clean Water Fund Grant Agreement with the Metropolitan Council <br />Do not approve the Clean Water Fund Grant Agreement with the Metropolitan Council