CC MIN 02012022 - Laserfiche WebLink

Linda Kelly reported learning compost is available to residents at the operations yard. She added she has placed this City compost in her yard. She stated a City backyard policy would not go well, noting the City has a general policy of staying out of people's back yards. She stated as an Energy and Environment Committee member, Option 2 is the way to go and expressed appreciation of the acknowledgment of CAP 2.0. She added Ms. Dennis' backyard is a joy to behold. Mayor Brown closed the public hearing. Councilmember Narum moved to approve Option 2 which includes an additional $15,000 from the Water Enterprise Fund to be used for the WEL Rebate Program. She expressed appreciation for staff trying to find the right balance in encouraging residents to use the program and not burdening the ratepayers. She noted the Water Enterprise Fund is self-funded by ratepayers. She expressed support for tying it back to CAP 2.0, requiring sustainable practices, and partnering with Zone 7. Councilmember Arkin seconded the motion. In response to Councilmember Arkin, Ms. Di Candia confirmed the terms of the rebate specify that the resident must maintain the landscape for a minimum of two years. She explained the City's terms were taken from Zone 7. She explained that most residents who take advantage of the program put a lot of time and effort into it and typically do not change landscape although when there is a change of ownership the new owner would be eligible to apply for a new rebate. She explained she will need to think about a situation where the same resident would apply for the same rebate after two years and will return to the City Council with more information at a future meeting. Councilmember Arkin expressed support for Option 2 and feels the option could be extended to backyards in the future. She offered a friendly amendment of increasing the rebate to $600. Finance Director Olson advised $600 is the threshold where the rebate would need to be reported as taxable income, so it needs to be below that amount. Councilmember Narum accepted the friendly amendment to change the rebate to $599. Councilmember Balch explained it is taxable income regardless of the amount but at $600 the City is required to issue a 1099. He recommended having the amount be $550 so it does not look like the City is to evade the Internal Revenue Service. In response to Councilmember Testa, Mr. Repp explained there are many numbers used for residential irrigation and is hesitant to give an average percentage of residential water use on landscape. He suggested providing that information to Councilmember Testa after he performed the analysis. Councilmember Testa expressed concern that the City is recommending water conservation that is so small yet is putting a burden on residents. She does not believe the incentive is high enough for residents to be interested. She noted the investment is also an investment in neighborhood beautification. In response to Councilmember Testa, Ms. Di Candia advised she would have to investigate to the total of the StopWaste grant and agreed to provide it to Councilmember Testa. Councilmember Testa expressed disappointment that the City did not use eligible pass-through dollars to benefit residents and businesses and instead chose to burden the ratepayers. She expressed support for the program. Mayor Brown expressed strong support for the program along with Zone 7's generous rebate increase. She noted it is available for residents who chose to apply. City Council Minutes Page 11 of 16 February 1,2022