water conservation & metering assessment

final

REPORTTown of Osoyoos

October 2015 | 0552.0040.01

WATER CONSERVATION & METERING ASSESSMENT

304-1353 Ellis StreetKelowna, BC V1Y 1Z9

Contact: Jacob Scissons, P.Eng.Phone: 250-762-2517

Email: [email protected]

SUBMITTED BY:

Water Conservation & Metering Assessment

Letter of Transmittal

Town of Osoyoos

8707 Main Street

Osoyoos, BC

V0H 1V0

Attn: Barry Romanko, Chief Administrative Officer

We are pleased to submit this final report entitled: Town of Osoyoos, Water Conservation & MeteringAssessment. The document is the result of an undertaking by the Town of Osoyoos for a “Water MeteringStrategy” issued in a January 2015 Request for Proposal. In the course of the work, it became evidentthat the focus of the study would be better directed to water conservation, with metering as one of thetools available to achieve conservation objectives.

Study results were discussed with Town staff throughout the period, and presented to Town Council ontwo occasions. Staff and Council comments have been incorporated in this document. We trust it meetsthe Town’s objectives and helps to define priorities for the water utility. We thank you for all your timelyadvice and assistance provided by your staff, and look forward to assisting you further with any aspect ofimplementation and public consultation.

Jacob Scissons, P.Eng. Peter Gigliotti, P.Eng.

Project Manager Senior Reviewer

U:\Projects_KEL\0552\0040\01\R-Reports-Studies-Documents\Final Report\Urban Systems Report - Water Conservation & Metering Assessment - Final.docx

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EXECUTIVE SUMMARY

This report presents an assessment of water usage patterns in the Town of Osoyoos water utility, with theaim of developing a plan to reduce domestic water consumption to targeted levels by the year 2020. Thetargets have been formulated by the Province of BC under the Living Water Smart Initiative. Brieflystated, these targets include:

· Overall annual reduction of domestic water consumption by 33%; and

· Sourcing 50% of water required for new development by means of water conservation efforts.

Additional water conservation drivers identified by the Town include:

· Minimizing operations and maintenance costs;

· Deferring capital investments for major infrastructure, such as supply wells; and

· Increasing public awareness of the importance of water conservation.

Domestic water consumption is defined as residential as well as industrial, commercial, and institutionalland uses. Agricultural irrigation is not included in the scope of this analysis.

The water consumption patterns are analyzed for both the long-term (average annual consumption from2000 to 2014) and more recent monthly patterns (2014 and 2015). The review of the consumption datafinds that:

· The largest contributor to high water consumption is summer season lawn irrigation, particularlyat single family residential dwellings;

· Summer consumption is also increased by the large number of visitors at tourist commercialproperties as well as seasonal residents; and

· Water use at industrial and retail commercial properties is generally in line with that required forbusiness operations.

The study examines a number of water conservation strategies to address excess water use within theTown’s municipal water system. These include:

· Dryland landscaping (xeriscaping);

· Use of low flow fixtures;

· Sprinkling restrictions;

· Education and public awareness;

· Leak repairs;

· Conducting water audits for high use customers; and

· Incentives provided by metered rates.

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The review of water conservation options concludes that the most cost effective initiatives are those thataddress new developments. These include bylaws that require new developments to employ low flowfixtures and to use dryland landscaping. A review of water consumption records for several single familyhomes that use dryland landscaping shows that the typical increase of water consumption in July andAugust is significantly modulated. The water consumption records also indicate that sprinkling restrictionsintroduced in May 2015 resulted in only a marginal reduction in residential water consumption.

Retrofit initiatives are also effective for water demand reductions, but incur greater cost. Programs suchas toilet and showerhead exchanges are estimated to cost approximately $600 for a typical two-bathroomhouse. Typical cost share programs are structured as 1/3 homeowner, 1/3 local government, and 1/3senior government.

The replacement of front lawns with xeriscaping techniques is estimated to cost in the order of $1,000 perhouse, depending on the size of the lot. Senior and local government assistance for this type of retrofit isdifficult to assess, as these programs are less prevalent than fixture retrofit initiatives.

A common water conservation approach for both inside and outside water use is the implementation ofuniversal metering and the use of metered rate incentives. Well-structured metered rates provide financialincentives for conserving water and have historically resulted in reductions of 20 to 25% in overallconsumption. The implementation of universal metering is explored and cost estimates are provided. Theestimated capital cost of installing meters on all water services in Osoyoos is approximately $2 million.Even without the use of metered rates, universal metering is a recognized tool for managing waterutilities. Consideration of universal metering should obtain public assent, and a communications strategyis provided as an appendix to this report.

The other common initiative for reducing both inside and outside water use is improving public awarenessof the issues surrounding water consumption. Conservation is not only directed at reducing costs, it isalso critical to the long-term sustainability of the community water supply. Prudent water usage canprevent shortages during drought conditions and avoid “mining” the aquifer. A motivated community willparticipate in water conservation if it can appreciate the benefits. An important part of any education andawareness program will start at the elementary school level and expand to residents and businesses.

The recommended implementation strategy and priority initiatives are briefly listed as follows:

1. Confirm Council’s support for the selected water conservation strategies.

2. Prepare or modify bylaws to require low flow fixtures and xeriscaping for new developments.

3. Investigate available grants and funding programs to support water conservation initiatives.

4. Seek public feedback regarding the acceptance of universal water metering by means ofdistributing a comprehensive information package.

5. Initiate dialogue with key stakeholder groups regarding the Town’s water conservation goals andobjectives and the potential strategies being considered to achieve them.

6. Identify and plan for the budget and resource requirements for the water conservation initiative.

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The suggested next steps outlined above will help the Town maintain momentum on the waterconservation initiative. Over the past five years, the Town’s efforts have been effective at reducing waterconsumption and this study outlines water conservation strategies to recognize further reductions overthe next five years and beyond.

The calculations below indicate the Town’s progress to date with respect to being 33% more waterefficient by 2020. Water consumption is expressed as daily water use per service connection as a meansof adopting a consistent measuring protocol.

2010: 2,400,000,000 Litres ÷ 3,200 connections ÷ 365 days = 2,055 litres/connection/day


2020: 2,055 litres/connection/day x 0.67 = 1,377 litres/connection/day

Based on the above, the Town is roughly 70% towards achieving the target water use reduction of 33%by 2020.

The Town has also been successful at reducing the maximum day water demand by approximately 12%since 2010. This is great progress and continues to defer the need to develop additional source capacity.

Overall, it appears that Osoyoos is making strong progress towards achieving their water conservationgoals. With a renewed focus on water conservation efforts and implementation of the strategiesrecommended in this study, this trend is expected to continue.

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TABLE OF CONTENTS

Executive Summary .................................................................................................................................. i

1.0 Introduction ................................................................................................................................... 1

2.0 Osoyoos Water System Description .............................................................................................. 1

3.0 Water Conservation Drivers .......................................................................................................... 2

4.0 Municipal vs Rural Water Use ....................................................................................................... 3

5.0 Customer Types ............................................................................................................................ 4

5.1 Residential ............................................................................................................................... 4

5.1.1 Single Family Residential ..................................................................................................... 4

5.1.2 Multi-Family Residential........................................................................................................ 4

5.1.3 Rural Residential .................................................................................................................. 4

5.2 Industrial / Commercial / Institutional ........................................................................................ 4

5.2.1 Industrial .............................................................................................................................. 4

5.2.2 Commercial .......................................................................................................................... 5

5.2.3 Institutional ........................................................................................................................... 5

5.3 Agricultural ............................................................................................................................... 5

6.0 Recorded Consumption Data ........................................................................................................ 6

6.1 Municipal System Water Use .................................................................................................... 6

6.2 Monthly Water Consumption .................................................................................................... 6

6.3 Single Family Residential Water Use ........................................................................................ 7

6.4 Multi-Family Residential Water Use .......................................................................................... 9

6.5 Stage 2 Water Restrictions ..................................................................................................... 10

7.0 Water Conservation Strategies .................................................................................................... 11

7.1 Landscaping Efficiency ........................................................................................................... 11

7.2 Fixture Retrofits ...................................................................................................................... 11

7.3 Water Restrictions .................................................................................................................. 12

7.4 Education and Public Awareness............................................................................................ 13

7.5 Water Accounting and Loss Control ........................................................................................ 13

7.6 Water Audits .......................................................................................................................... 14

7.7 Water Metering....................................................................................................................... 15

8.0 A Closer Look at Metering Approaches ....................................................................................... 16

8.1 Ancillary Benefits of Meters .................................................................................................... 16

8.2 Metering Approaches ............................................................................................................. 16

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8.2.1 Universal Metering ............................................................................................................. 16

8.2.2 Voluntary Metering ............................................................................................................. 17

8.2.3 Scalable Metering ............................................................................................................... 18

8.2.4 Pilot Metering ..................................................................................................................... 18

8.3 Metering and Reading Technologies....................................................................................... 18

8.3.1 Water Meters ...................................................................................................................... 18

8.3.2 Reading Systems ............................................................................................................... 19

8.3.3 Current Products and Technologies .................................................................................... 20

8.4 Metering Costs ....................................................................................................................... 20

8.4.1 Capital Costs ...................................................................................................................... 20

8.4.2 O&M Costs ......................................................................................................................... 21

8.4.3 Replacement Costs ............................................................................................................ 22

8.4.4 Estimated Savings .............................................................................................................. 22

8.4.5 Cost Summary ................................................................................................................... 23

8.5 Metered Rate Setting ............................................................................................................. 23

9.0 Discussion and Recommendations .............................................................................................. 25

9.1 Discussion ............................................................................................................................. 25

9.2 Summary of Recommendations .............................................................................................. 26

9.3 Communications Strategy....................................................................................................... 27

10.0 Implementation....................................................................................................................... 29

10.1 Next Steps ............................................................................................................................. 29

10.2 Progress Update .................................................................................................................... 29

APPENDICES

Appendix A: Communications Strategy

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1.0 INTRODUCTION

This report summarizes our assessment of various water conservation strategies and recommends anapproach for the Town of Osoyoos to meet its water conservation goals. The assessment evaluates theeffectiveness of each water conservation technique using a cost-benefit approach and consideringmultiple customer types. It also examines the potential role of water meters in water conservation. Arecommended implementation approach is provided, supported by a communications strategy.

2.0 OSOYOOS WATER SYSTEM DESCRIPTION

The Town of Osoyoos owns and operates multiple water systems, each having unique sources, serviceareas, and water conservation initiatives.

Municipal Water System

The municipal water system services the majority of the residential and ICI (industrial, commercial, andinstitutional) properties within the Town’s municipal boundaries. The system is supplied by sixgroundwater wells. Although a portion of the municipal system supplies water for some irrigation andprocess needs, it is generally used for domestic purposes. This is high quality groundwater and is notchlorinated.

Irrigation Systems 8 and 9

Irrigation Systems 8 and 9 service the rural areas west of Osoyoos Lake, extending north and south ofthe Town’s municipal boundaries. Each system draws water from Osoyoos Lake, which is chlorinatedprior to distribution. Water is largely used for agricultural irrigation, but also supplies homes with domesticwater. There are plans to install a twin domestic water system throughout the service areas of IrrigationSystems 8 and 9, which will be supplied with higher quality groundwater from the Town’s municipalsystem.

Reclaimed Water System

Reclaimed water from the Town’s wastewater treatment plant is disinfected and used to supply a numberof high consumption irrigation needs including the golf course, baseball fields, and secondary school. TheTown also has the ability to supplement the reclaimed water with water from Osoyoos Lake via IrrigationPumphouse 9A.

Dedicated Irrigation Wells

The Town utilizes dedicated, non-potable groundwater wells to irrigate several parks including Gyro Park,Lions Park, and Park Place. This is in an effort to reduce the stress on the municipal water system wellsduring peak demand periods.

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3.0 WATER CONSERVATION DRIVERS

Water conservation is very important to the Town’s water utility. In 2006, a water master planningprogram was initiated with the objective of identifying source expansion requirements to meet theprojected future water demands of the Town’s service areas. Subsequent to the findings of the WaterMaster Plan, the 2007 Official Community Plan indicated that demand management was key to ensuringa sustainable water supply for the community. The Town retained TRUE Consulting to assist withpreparation of a Water Conservation Plan, which was completed in 2010. For the past five years, theWater Conservation Plan has served as a guide for the Town to work towards achieving its waterconservation goals and objectives. These include:

· Achieving the objectives of the Province of BC Living Water Smart Initiative.

· By 2020: be 33% more efficient.

33% more efficient is taken to mean a reduction of overall annual domestic consumptionby 33%. Agricultural irrigation is not included.

· By 2020: 50% of water demands for new development achieved by conservation.

Water demands that might arise from new development should be reduced by 50%through a variety of conservation directives.

· Minimizing operations and maintenance (O&M) costs.

· O&M costs for treatment plants, pump stations, and other infrastructure components areminimized when water demands are managed.

· Deferring capital investment for major infrastructure.

· The source capacity of the municipal water system is approximately 25 ML/day.Reducing water demand could defer the need to develop additional sources.

· The Town’s wastewater system is based on reclamation and treated effluent being usedfor irrigation. This requires winter storage, so efforts to increase usage of reclaimed waterwill not only reduce the need for additional source development, but will postpone theconstruction of additional reclaimed water storage.

· Increasing public awareness of the importance of water conservation.

· Water conservation is a collaborative effort and the public should be motivated byunderstanding the benefits of water conservation to their pocketbook, to community well-being, and to long-term security of water supply.

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4.0 MUNICIPAL VS RURAL WATER USE

In order to assess the effectiveness of water conservation techniques, we first need to understand howand where water is being used throughout the community. The 2014 Annual Water Report was used toassess monthly volumes of water supplied to the municipal water system (from the combined six supplywells) and to the irrigation systems (from the two surface water intakes). The overall average annualconsumption for the years 2012 through 2014 are recorded as follows:

· Municipal (including domestic, irrigation, and ICI consumption): 2,400 ML/year

· Agricultural (including domestic and irrigation consumption): 7,200 ML/year

Based on the above, the agricultural areas appear to represent about 75% of the total water consumption,while the municipal core areas represent about 25% of total annual consumption.

The focus of the water conservation and metering assessment is the municipal water system.Accordingly, the goal of being 33% more efficient by 2020 is taken as a 33% reduction in the averageannual water consumption within the municipal system service area.

The Town has taken steps to reduce the demand on the municipal water system. Recent examplesinclude expanding the reclaimed water system to provide irrigation water to the secondary school andconstructing a new dedicated irrigation well at Kinsmen Park. However, the future plans to providedomestic water to Irrigation Systems 8 and 9 via a twin system will increase the stress on the municipalgroundwater wells. A reduction in domestic water consumption coupled with maximizing the use ofalternate water sources for irrigation needs will allow the Town to leverage its high quality groundwatersources to provide the highest level of service to the greatest number of customers.

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5.0 CUSTOMER TYPES

The Town of Osoyoos provides water to a variety of customers ranging from single family residential to awide range of businesses and agricultural operations. Each customer type is unique, and in turn, hasunique water use characteristics.

5.1 Residential

5.1.1 SINGLE FAMILY RESIDENTIAL

According to the 2011 Census data from Statistics Canada, there are 1,450 detached single familyresidential homes in Osoyoos. These are the conventional urban residential lots throughout Town. Themajority of the single family residential lots have grass lawns, which require water for irrigation. However,there are several lots that utilize xeriscape landscaping, which includes drought resistant plants, rocks,and other features that do not require water.

5.1.2 MULTI-FAMILY RESIDENTIAL

There are two general types of multi-family residential properties in Osoyoos: those that are occupiedyear round and those that are seasonally occupied. The 2011 Census data from Statistics Canadaindicates that there are 1,515 multi-family residential dwellings in Osoyoos, 810 of which are occupiedyear round. The remaining 705 units are understood to be recreational multi-family dwellings, which aretypically occupied during the summer months, but often vacant in the winter.

Multi-family residential properties tend to have lower outside water use than single family residentialproperties due to smaller lawn footprints. Inside water use is generally similar; however, the combinedwater use of year round and seasonally occupied multi-family units peaks during the summer monthswhen the Town’s overall water demands are at their highest.

5.1.3 RURAL RESIDENTIAL

The rural residential properties in Osoyoos are within the areas currently serviced by Irrigation Systems 8and 9. Water is primarily used for irrigation of crops; however, the homes on these properties also drawwater for domestic uses. The Town intends to install a twin system that would see municipal waterprovided to the rural residential homes. We understand that these new connections are proposed to bemetered, with a consumption based billing system implemented.

5.2 Industrial / Commercial / Institutional

5.2.1 INDUSTRIAL

There are numerous industries within the Town of Osoyoos. Some are relatively low water consumerssuch as fabrication shops and warehousing. Some are higher water consumers such as concrete ready-mix plants and car washes. Not all industries are metered so it is difficult to generate consumption profilesfor each industry. Given that the larger water users require appropriate amounts of water for their specificprocess, significant reductions in consumption are not likely without compromising the process.

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The approach to industrial water use therefore could be directed at encouraging the use of best practicesin each industry by aiming for the highest efficiency in water consumption, whether that be for processwater, cleaning and wash-down water, or cooling water. It will be useful to initiate enquiries of theindustries to determine if there is any desire to utilize reclaimed water for functions such as cooling. If so,reclaimed water could be offered at a lower rate than potable water if the industry is within reach of thereclaimed water transmission piping.

5.2.2 COMMERCIAL

Commercial uses within Osoyoos are varied. There are a number of restaurants, pubs, coffee shops, andother food services as well as a range of retail shops and service centres. Many of these businesses arenot metered. These types of commercial properties tend to have limited fixtures inside and minimalirrigation areas outside. Therefore, opportunities to realize significant water savings in the downtownservice commercial retail area are considered minimal.

However, commercial operations in the tourist sector (hotels and motels) have a significantly higherpotential for realizing reductions in water consumption. These facilities are comprised of multiple units,each containing a range of fixtures. The common areas also tend to consist of uses requiring waterfixtures. The extent of outside irrigation areas can vary, but features such a swimming pools canrepresent high water demands. The tourist commercial properties are considered good candidates forpursuing reduced water consumption.

5.2.3 INSTITUTIONAL

Institutional water users generally include schools, hospitals, community centres, and provincial and localgovernment offices.

Schools are generally closed during the summer, when the highest overall community water consumptionoccurs. This means that measures to reduce indoor water consumption are unlikely to reduce maximumday water demands. However, irrigation requirements for playing fields, etc. can be significant, and unlikeindoor consumption, would continue throughout the summer. This suggests that water conservationefforts for schools should focus on reducing outside water use.

Indoor water use at hospitals and medical offices may be a function of the equipment being used. Cautionneeds to be exercised when considering means to reduce water consumption at these types of facilitiesto ensure that the performance of critical equipment is not impacted. However, procedures to reduceoutdoor irrigation demands would be similar to other land uses.

There could be opportunities to reduce both indoor and outdoor water use at government offices.Although the impact to overall community water use would likely be minimal, it is important to set a goodexample to the public by demonstrating that water conservation techniques are being implementedwherever possible.

5.3 Agricultural

Agricultural irrigation systems are supplied by two intakes on Osoyoos Lake. These systems are separatefrom the Town’s municipal system and conservation efforts are guided by best management practices inthe horticultural industry. These systems are outside the scope of this study.

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6.0 RECORDED CONSUMPTION DATA

Water use data provided by the Town was analyzed to gain a better understanding of consumptionpatterns for various customer types as well as the overall community.

6.1 Municipal System Water Use

Water use records for the municipal system were provided for the period of 2000 through 2014. Thefigure below depicts the total annual water consumption as well as the maximum day demand over this15 year horizon.

Figure 6.1 - Municipal System Water Use

From 2000 to 2010, the overall annual consumption was an average of about 2,400 ML/year. Thisdecreased to approximately 2,100 ML/year between 2010 and 2015, likely as a result of the Town’sefforts at encouraging conservation. This same five year period saw a drop in maximum day waterdemand from about 17 ML/day to approximately 15 ML/day.

6.2 Monthly Water Consumption

In order to understand the variation in water use throughout the year, the monthly consumption wasreviewed for 2014. The monthly consumption is depicted in the figure below.

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Figure 6.2 – 2014 Monthly Water Consumption

The overall domestic consumption increases from an average of about 100 ML/month in the wintermonths to an average of approximately 450 ML/month in July and August. The significantly highersummer water consumption is attributed to increased visitation as well as outside water use.

6.3 Single Family Residential Water Use

The figure below depicts the 2014 monthly water consumption for three single family residentialproperties in Osoyoos. The first two properties (represented by the blue and green lines) have a grasslawn similar to many other homes. The graph indicates that SFR #1 uses less water than SFR #2 duringthe winter months, which is reflective of indoor water use. However, the summer peak water use is aboutthe same reflecting irrigation or outdoor water use.

The third property (SFR #3 represented by the grey line) has a xeriscaped lot. The graph indicates thatthe winter / indoor water use is similar to that of SFR #1. However, the summer peak is approximately45% lower than that of the two properties with grass lawns.

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Figure 6.3 – 2014 Single Family Residential Water Use

To further understand the water use trends at single family residential properties, the 2015 monthly waterconsumption was reviewed for three additional homes. Houses 1 through 2 have grass lawns, whileHouse 3 has a xeriscaped lot.

Figure 6.4 – 2015 Single Family Residential Water Use

Similar to the 2014 data, the homes with grass lawns show a distinct water use increase in late springand through the summer. The ratio is approximately 4:1 over typical winter consumption. The homes thatuse xeriscaping also increase consumption in the summer months, but the ratio over winter consumptionis much lower at about 1.5:1.

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6.4 Multi-Family Residential Water Use

The graph below shows the 2014 monthly consumption (per unit) for three multi-family properties inTown. Water consumption at these properties appears to be generally consistent throughout the year.The summer peak observed at the single family residential properties is not evident.

Figure 6.5 – 2014 Multi-Family Residential Water Use

To understand the impact of seasonal versus year round occupancy, the 2015 monthly water use wasreviewed for three additional multi-family residential properties.

Figure 6.6 – 2015 Multi-Family Residential Water Use

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Units 1 and 2 (depicted by the red and blue lines) show generally consistent water use month over month.One could assume that these units are occupied year round. Unit 3 (depicted by the grey line) showsalmost zero consumption during the winter, with water use rising steadily in the spring and into thesummer. This is most likely reflective of a seasonally occupied unit.

6.5 Stage 2 Water Restrictions

Stage 2 water restrictions were imposed by the Town for the first time in May 2015 and remained in effectuntil early October 2015. Stage 2 requires lawn sprinkling no more than twice per week.

Figure 6.4 reveals a drop in monthly water consumption at single family residential properties after May.However, water use in June and July was reflective of the increasing trend seen in previous years.Figure 6.6 shows lower May water use for one of the multi-family residential units, but was again followedby increasing water use into the summer.

The water consumption patterns did not reveal a marked drop in water use after the Stage 2 restrictionswere imposed (at least for the homes that are metered).

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7.0 WATER CONSERVATION STRATEGIES

7.1 Landscaping Efficiency

Overview: Outside irrigation water consumption during summer months is a major contributor to themaximum day demand and is therefore a critical water consumption behaviour to target. Maximum daydemands can drive infrastructure costs and place increased stress on water sources. Landscapingefficiency can be an effective way to manage this critical system demand. Common techniques includexeriscaping or lawn replacement, which generally involves the removal of high water consuming featuressuch as grass and plants and replaces those with low (or no) water consuming features such as droughtresistant plants, rocks, or turf. Xeriscaping or lawn removal has been encouraged and supported in othercommunities using financial incentives such as subsidies or rebates provided to the home owner. Whileapproaches such as universal metering and irrigation restrictions can lead to “community browning”,xeriscaped properties can maintain a green / natural appearance while conserving water.

Target Customers: The highest impact of water conservation techniques surrounding landscapeefficiency is expected to be for single family residential properties. Outdoor water use for single familydwellings represents a significant portion of the overall community water use, and more importantly,coincides with peak summer demands.

The Town may also wish to consider implementing xeriscape landscaping on municipal boulevards andother public areas. Not only would this reduce water demands associated with irrigation, but it would alsoset a good example of the Town’s commitment to water conservation.

Cost-Benefit: Requiring xeriscaping or other forms of water efficient landscaping for new developmentscan be achieved at a relatively low cost to the municipality. However, requiring (or encouraging) existingresidential home owners to remove their lawns in place of xeriscaped options often requires a financialincentive from local or senior governments. This increases the cost of implementation.

Typical costs for the removal of a grass lawn and installation of xeriscape landscaping are understood tobe approximately $1 per square foot. Consider a typical front lawn with dimensions of 15 feet deep(typical setback from street) and 60 feet wide (typical lot frontage). This correlates to an area of 900square feet and at $1 per square foot would represent a retrofit cost of $900. Assuming that thehomeowner, Town, and senior government would each cover 1/3 of the cost, the Town would beresponsible for $300 per lot (based on this example).

7.2 Fixture Retrofits

Overview: Retrofit programs remove existing, high consumption fixtures and replaces them with newwater efficient (low flow) devices. Common retrofits include replacing; toilets, showerheads, or appliances(i.e. dishwashers, washing machines) which can account for up to 70% of indoor uses. Retrofit programshave been encouraged and supported in other communities using financial incentives such as subsidiesor rebates provided to individual home owners who participate.

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Based on results from other communities, the combined impact of toilet replacement, faucet /showerhead replacement, and water efficient appliances is a reduction in order of 10% of the averageannual water consumption. Toilet replacement represents the majority of the reduction.

Target Customers: The water consumption data suggests that Osoyoos’ indoor residential water use isnot excessive (at least compared to other Okanagan communities). Implementing a fixture retrofitprogram targeted at single family and multi-family residential properties is expected to result in a modestreduction of average day water consumption throughout the year.

The impact of fixture retrofits at seasonal properties such as hotels and motels is expected to have aslightly lower impact, but would be concentrated in the summer months when occupation is highest. Inthis sense, the summer peak demand could be reduced as opposed to the average annual demand.

Cost-Benefit: Similar to xeriscaping, development regulations could be used to require low flow fixturesand water efficient appliances for new developments at a relatively low cost. The BC Building Code hasalready taken this step to some extent. However, a retrofit program targeting existing homes and / orbusinesses would require an additional financial contribution from the municipality to cover subsidies orrebates. The average rebate for toilet replacement programs conducted by other BC municipalitiesranges from $50 to $150 per toilet, typically representing 1/3 of the replacement cost.

7.3 Water Restrictions

Overview: Water restriction bylaws provide a mechanism for the utility to restrict water use during criticalperiods. Outdoor irrigation uses are typically targeted. As previously discussed, the Town’s WaterConservation & Staged Restriction Bylaw (#1273) has been triggered for the first time since beingadopted with a Stage 2 restriction implemented in May 2015 and remaining in effect throughout thesummer.

One of the potential drawbacks with this strategy is the tendency for people to use water within the days /times permitted by the bylaw, even if they wouldn’t otherwise do so. This can result in maximum day andpeak water demands that are higher than if the restrictions were not in place. We understand thatOsoyoos experienced this to some extent during the 2015 water restrictions.

Target Customers: The vast majority of outdoor water use in Osoyoos occurs at single family residentialproperties, primarily for lawn irrigation. This is where water use restrictions have the highest potential tobe effective. The water use data suggests that multi-family properties do not represent a significantoutdoor water use, likely because lawn areas are typically small minimizing irrigation requirements.

Although facilities such as the golf course, schools, and parks have large irrigation areas, this water issourced from the reclaimed water system or dedicated irrigation wells and is not drawn from the municipalwater system.

Cost-Benefit: Without significant efforts directed towards enforcement, the costs to implement waterrestrictions can be relatively low. However, without enforcement the benefits are also low (as the 2015data suggests). The water conservation benefits are highest with increased “policing”. It would seemappropriate for the degree of enforcement to be aligned with the various stages of water restrictions.

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7.4 Education and Public Awareness

Overview: Developing awareness and educating the public about the value of water can help meetconservation objectives. Water consumption is a behavioural attitude, and it is important that customersthink not only about what’s in it for them, but how the community benefits. The US EnvironmentalProtection Agency (USEPA) suggests that public education initiatives can result in a 2% to 5% reductionin consumption. In reality, a well-motivated community can achieve much greater reductions. Educationand awareness can build support and momentum for conservation strategies which have been shown tosubstantially reduce water consumption.

One of the most effective means of promoting long-term behavioral change is through educationprograms implemented in schools. This approach targets multiple generations since children share whatthey’ve learned with parents. It also often generates discussions with friends and family. Past examplessuch as seat belt and power smart programs demonstrate the potential effectiveness of getting themessage to our young people.

Target Customers: This water conservation technique is expected to be most effective with residentialcustomers. Specifically, outdoor consumption at single family residential homes is considered the highestreturn on investment.

Education programs focused on outdoor water use can vary depending on the intended goal, but oneinitiative that has been successful in other communities is the water wise irrigation program. This programfocuses on informing customers about outdoor irrigation such as landscaping design, how to reducewater consumption, and how to select the right plants. In 2001, The City of Kelowna embarked on a waterwise irrigation program which focused on educating individual residents on proper watering techniques aswell as how to properly set sprinkler systems. This program resulted in a 27% reduction in waterconsumption in the summer months.

Tourist behavior can be modified to some extent with informational tags in hotel rooms, highlighting theimportance of water wise habits.

Cost-Benefit: Education programs can be implemented in an affordable manner. For example,information can be shared out on the Town’s website or in local newspapers. Summer students could beengaged to campaign the community to conserve water. Although the direct benefits of educationprograms may not seem significant, these programs can boost the effectiveness of other waterconservation techniques.

7.5 Water Accounting and Loss Control

Overview: Unaccounted for water can result from several factors such as leakage in the municipaldistribution system, leaks on private property (indoor or service connection), illegal connections, firedemands, flushing, or construction uses. It has been documented in other BC communities that waterleakage / loss can account for a substantial amount of water consumption and can range from 5% to 20%of consumption.

System pressure can impact water leakage or system loss. Reducing excessive pressure can reduce theamount of leakage through the municipal distribution system as well as fixtures and faucets.

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Target Customers: Water accounting and loss control affects all users and therefore does notnecessarily have a target customer group. The Town has the ability to assess leakage to a certain extentwith source meters, some zone meters, and a variety of metered service connections. However, withoutstrategically positioned zone meters or implementation of universal metering, system leakage andunaccounted for water is difficult to accurately quantify.

The water meters that are utilized by the Town have leak detection capabilities. Continuous or intermittentleaks are logged by the register and captured with the monthly reading cycle. Staff can run leak reportsand follow up with individual customers as appropriate.

When water meters are installed outside in a pit at the property line, leak detection benefits aremaximized. This is because the meter will record consumption from a leak in the water service pipe (asopposed to just indoor leaks). Illegal connections are also easier to detect when meters are installedoutside.

Cost-Benefit: A utility can invest a significant amount of time, money, and energy in leak detection /repair without guaranteed results. Initiatives to reduce system losses should focus on a specific area orcustomer groups and utilize tools such as water meters as much as possible.

7.6 Water Audits

Overview: Water audits can provide customers with valuable information to help them understand howthey are currently consuming water. In doing so, customers can target specific processes to reduce theamount of water consumed. There are various water audits that can be completed, but the USEPArecommends splitting audits into three groups.

· Large Volume Users – This would involve auditing large volume users which are usually found inthe commercial and industrial sectors.

· Large Landscape Users – This would involve auditing the outdoor usage. For Osoyoos, thepriority should be properties that are irrigating with municipal water, as opposed to lots with dualservices or those connected to the reclaimed water system.

· Selective End Users – This technique would involve auditing a select group of customers who areknown to consume large amounts of water. For example: old homes in a particularneighbourhood may be known to consume more water than a typical residential home.

Although water audits are an effective way to determine how water is being consumed, it is not alwayspossible to substantially reduce water consumption using this technique. In most instances, high waterusers include businesses that need to consume a particular amount of water to service their customerswhich leaves little room for consumption improvement.

Target Customers: As discussed above, target customers include specific large volume consumers,properties with high outdoor water use, or a select group of similar land uses that are suspected to behigh water consumers. Installation of a water meter at these properties is a means of profilingconsumption and directing auditing efforts accordingly.

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Cost-Benefit: Water audits require involvement of staff or potentially an external party. When weighingthe costs and potential benefits of this technique, there should be value placed on the improved customerservice that is being provided. Even if water conservation results are nominal, the utility’s attempt to helpcustomers save money (and reduce water) sets a good example.

7.7 Water Metering

Water metering is discussed in detail in the following section.

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8.0 A CLOSER LOOK AT METERING APPROACHES

8.1 Ancillary Benefits of Meters

Metering is just one of many water conservation tools. Similarly, water conservation is one of severalbenefits of water meters. Some common water metering drivers identified by other BC municipalities(aside from water conservation) include:

· Revenue Generation

· Customer Service

· Raise Awareness of the Value of Water

· Proactive Resource Management

· Equity Billing

· Water System Management and Monitoring (leak detection)

· Future Planning (asset management, infrastructure sizing, demand forecasting)

· Water Quality (support for cross connection control program)

8.2 Metering Approaches

There are multiple approaches to implementing a metering program, each varying in the level ofinvestment, the potential benefits, and the extent of public acceptance.

8.2.1 UNIVERSAL METERING

Universal metering involves installation of a water meter at every service connection, including allcustomer types for both new and existing developments.

By measuring all water that is distributed to customers, in addition to all water extracted from supplysources, system management benefits are maximized. For example, leakage and unaccounted for wateruse can be accurately quantified and proactively managed. When coupled with a well-structured rateschedule, universal metering facilitates equitable billing since all customers are charged based on actualconsumption.

Notwithstanding the benefits of a universal metering program, it is important to recognize potentialchallenges with this approach. Installing meters at all existing properties in a service area can represent asignificant initial investment. The ongoing costs associated with reading, maintaining, testing, andreplacing these meters can also be substantial. The highest return on investment is realized when theutility leverages the system management, customer service, resource management and other “ancillary”benefits of a universal metering program beyond simply revenue recovery.

Of all the metering approaches, universal metering tends to generate the most public resistance andcriticism. Public communications and engagement needs to be initiated early in the process and continuethroughout.

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BCWWA reports that universal metering programs supported by an equitable consumption-based billingmodel and public communication program typically result in a 15 to 30% reduction in water consumption.For municipalities in the BC Interior, universal metering has on average resulted in a reduced waterconsumption in the order of 20%.

Having explored universal metering to some extent already, the Town certainly understands the potentialresults of universal metering, but is equally aware of the public and political sensitivities of this approach.

8.2.2 VOLUNTARY METERING

This approach relies on customers to volunteer to have a water meter installed (often at the utility’s cost)and switch from a flat rate to a consumption billing model.

Voluntary metering programs are generally easier to implement and typically generate minimal publicresistance. Customers can be encouraged to volunteer to have a meter installed by means of acommunication plan focused on promoting the potential cost savings associated with consumption billing.Another mechanism to promote volunteers is to increase flat rates at a greater pace than metered rates.

Although less controversial, voluntary metering programs are also considered less effective thanuniversal programs. The BCWWA Position Statement on Water Metering does not support voluntarymetering citing the following drawbacks:

· The customers that are most likely to volunteer for a meter are those that already aim to conservewater. High water consumers are less likely to volunteer. This limits the water conservationeffectiveness.

· Water consumption data is of limited value for projecting demands, setting rates, sizinginfrastructure, etc. since only the low water consumers are represented.

· Implementation costs are generally higher (than universal programs) since meter installations arecompleted as and when in response to volunteer requests.

· The longer implementation timeline can lead to an increased variation in the meter population(age, technology, maintenance cycle, etc.).

· A future transition from a voluntary program to universal metering approach can send mixedmessages to customers. This path also requires a two-step political review process andincreased regulatory costs.

As an example, the City of Surrey has a meter population in excess of 60,000 meters. Water meters aremandatory for all new homes and buildings. For the past decade, metering of existing residentialcustomers has been approached by means of a voluntary program. Initial years saw high numbers ofvolunteers with thousands of meters being installed annually. However, volunteer counts have decreasedsignificantly over recent years despite increased advertising and promotion through the City’s OperationSave H2O program. The City is currently reviewing options to work towards becoming universally meteredin an effort to meet its water conservation targets.

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8.2.3 SCALABLE METERING

Scalable metering refers to metering a specific group of customers or land uses. Zone (or district)metering is one example. Another common scalable program is metering all ICI customers.

The Town of Osoyoos is currently implementing a form of scalable metering by requiring meters on allnew ICI developments. Although the meters are not used for billing purposes, they provide useful dataregarding water consumption trends.

Scalable metering can be effective if a utility is seeking to target one specific metering goal or objective. Itcan also serve as a stepping stone towards universal metering if resource or budget challenges arepresent.

8.2.4 PILOT METERING

Similar to a scalable program, pilot metering can be effective for a specific metering goal or objective. Afew examples include:

· Assessing the performance of various metering products or technologies;

· Gauging public acceptance to metering; and

· Gathering data for a specific geographical area or customer category.

BCWWA supports pilot metering as a means to inform progression to scalable and eventually universalmetering.

8.3 Metering and Reading Technologies

8.3.1 WATER METERS

Metering technologies have evolved significantly over the past decade. Some advancements have beendriven by legislation, such as “lead free” or “low lead” laws in the United States, while other innovationsfocus on enhancing “smart metering” features. Each manufacturer has taken a slightly different approachwith their product lines. A brief summary of the product lines offered by manufacturers most pertinent tothe BC market is provided below.

Neptune

Neptune continues to produce mechanical meters with bronze maincases. This is not surprising sincethey operate a foundry in Alabama. In 2001, Neptune switched from leaded bronze to a lead free bronzealloy that complies with NSF 61 requirements.

Neptune has recently announced that they will be releasing an ultrasonic meter branded as the Mach 10.This meter appears to be an alternative to their T-10 positive displacement meter. With no moving parts,the ultrasonic meter will allow Neptune to offer a small diameter, non-mechanical meter which seems tobe in demand in some markets. That being said, the robustness and familiarity of the T-10 meter areexpected to keep it in high demand.

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For large diameter and fire service applications, Neptune continues to offer a selection of compoundmeters, which utilize a turbine meter for high flows and a positive displacement meter for low flows.

Sensus

The Sensus water meter product line has seen several changes over recent years. Two new smalldiameter meters were introduced, both comprised of polymer maincases. The iPERL is anelectromagnetic meter with several “smart” features. The accuSTREAM is a positive displacement meterwith a polymer maincase. Shortly after the release of these meters, Sensus announced that their SR andSRII bronze positive displacement meters would be discontinued. In response to backlash from severalcustomers, the SRII meter remains in production.

Sensus has also overhauled their large diameter and fire service meters. Their compound meters havebeen discontinued and replaced with the OMNI line. The OMNI meters utilize “floating ball technology”with varying accuracy tolerances and onboard features available in the R2, T2, C2, and F2 models.

Elster

Elster no longer manufactures mechanical meters. For small diameter sizes, they market a fluid oscillatormeter (the SM700 model). Elster recently released the Q700 fluid oscillator meter, which featuresenhanced low flow registration, a polymer maincase, and metallic threads. As of now, the Q700 meter isonly available in the 16mm x 19mm size.

For large diameter and fire service applications, the compound meter has been replaced with the evoQ4magnetic meter. The factory calibration and battery are designed for a ten year service life, with the pricepoint reflective of this.

Master Meter

Master Meter is relatively new to the BC market. For small diameter sizes, they offer a positivedisplacement meter as well as a multi-jet option. Their “showcase” meter is the Octave, which is anultrasonic meter marketed for medium and large diameter applications. An advertised advantage of theOctave is its low flow accuracy compared to that of a battery powered magnetic meter.

Badger

For small diameter applications, Badger offers positive displacement meters that are available with eitherbronze or composite maincases. A series of compound and turbine meters are available for largediameter and fire service applications.

8.3.2 READING SYSTEMS

Meter reading systems generally fall into the following categories:

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· Touch Read

· Walk-By

· Drive-By

· Fixed Network

Touch read, walk-by, and drive-by systems are referred to as Automated Meter Reading (AMR) whilefixed network systems are considered Advanced Metering Infrastructure (AMI). AMR / AMI systems canbe relatively simple, or very complex. High power systems are available that provide two-waycommunication, often requiring a radio frequency license. Other systems operate in the unlicensedbandwidth, typically providing one-way communication. Reading systems that are common in BC includethose marketed by Neptune, Sensus, and Itron.

8.3.3 CURRENT PRODUCTS AND TECHNOLOGIES

We understand that the Town currently utilizes Neptune T-10 meters equipped with Enhanced E-CoderR900i radio read registers. Reads (and data) are collected by means of a Neptune MRX920 drive-byradio read system. Neptune N_SIGHT R900 host software is used to interface with the Town’s billingsoftware (Vadim).

There are several attractive qualities of the current products, including:

· The T-10 positive displacement metering technology has decades of demonstrated performance,satisfy NSF 61 lead requirements, and allow for field replacement of major components.

· The R900i radio read system does not require a radio frequency license and is fully migratablefrom walk-by to drive-by to fixed network.

· The R900i system provides data logging capabilities in addition to enhanced features includingleak, tamper, and reverse flow detection.

· Neptune is the only company that offers a completely integrated service including supply,installation, and customer support.

The features and flexibility of this system make it well-suited for the Town whether the decision is tocontinue with the current extent of metering or to proceed with a universal metering program.

8.4 Metering Costs

8.4.1 CAPITAL COSTS

Capital costs for the supply and installation of water meters have been estimated based on theassumptions listed below:

· Residential meters are assumed to be positive displacement type equipped with radio readcapabilities;

· ICI meters are assumed to be mechanical type equipped with radio read capabilities;

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· All meters are assumed to be located inside homes or buildings;

· For multi-family strata developments, a single meter for the strata complex is assumed; and

· RV Parks are assumed to be supplied by a single metered water service connection.

The estimated capital costs are calculated as follows:

Single Family Residential and Duplexes (19mm meters): 1,560 units @ $550 = $858,000

Strata Complexes (75mm meters): 70 properties @ $4,000 = $280,000

Industrial / Commercial / Institutional (75mm meters): 150 properties @ $4,000 = $600,000

Contingencies (10%) = $174,000

TOTAL = $1,912,000

As previously discussed, water meters can also be installed outside in belowground chambers nearproperty line. There are several benefits to outside meter installations, such as the following.

· Leakage can be detected on the service line (as well as inside);

· Unauthorized meter bypassing or irrigation connections are less likely;

· When backflow prevention is integrated with the meter assembly, premise isolation can beachieved at property line.

· The Town’s liability associated with damage caused by a leaking or failed meter is reduced; and

· Meters are accessible for maintenance without permission from or coordination with propertyowners.

Notwithstanding the benefits of locating meters outside, there is a cost surplus in doing so. For singlefamily residential homes and duplexes, supply and installation of a “coiled meter pit assembly” would addapproximately $700 to each meter installation. Based on 1,560 units at $700 per unit (plus a 10%contingency), this correlates to an additional $1.2 Million in implementation costs. There are someproperties in Osoyoos with meter pits and setters already installed. The cost for supply and installation ofa water meter within an existing pit would be similar to that of an inside meter installation.

For meters 75mm and larger, the cost surplus for an outside installation vs an inside installation istypically much higher than that for smaller residential meters. This is because of the larger chamberrequired to accommodate the meter, bypass piping, and valves. Recognizing that funding may be aconstraint, the Town could target outside meter installations for single family residential properties, butallow inside meter installations at ICI properties.

8.4.2 O&M COSTS

Annual operations and maintenance costs associated with water meters have been estimated based on abi-monthly reading and billing frequency.

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Meter Reading - Labour - 1.5 days/month @ $300/day $5,400

Meter Reading – Vehicle - 1.5 days/month @ $100/day $1,800

Billings - Labour – 1 day/month @ $400/day $4,800

Maintenance and Parts Allowance $2,500

Service Calls and Testing Allowance $2,500

TOTAL ANNUAL $17,000

Based on the above level of effort, hiring additional staff for meter reading and billing does not appear tobe warranted. However, maintenance and testing efforts may require additional forces unless these tasksare contracted out.

8.4.3 REPLACEMENT COSTS

Meters are expected to have a 20-year lifespan, at which point they need to be replaced. Using areplacement value of $1,500,000 (slightly less than the initial implementation cost) in a 20-year horizon,and a compound interest rate of 4%, yields an annual cost equivalent of approximately $50,000.

8.4.4 ESTIMATED SAVINGS

As discussed earlier, communities in the BC Interior that have implemented universal metering programshave on average reduced their water consumption in the order of 20%. The dollar value of these savingscan be roughly estimated by reductions in annual operating costs. Operating costs are made up of “fixed”and “variable” costs. Fixed costs include labour, vehicle, and equipment costs. Variable costs includepower consumption, and chemical consumption. The savings will be realized primarily in variableoperating costs.

Power consumption at each well depends on the size of pump and the length of time that it runs. TheTown’s records show a power cost of $73,682.49 for the year 2014 and $73,000 is budgeted for 2015 forthe municipal water system. Assuming a round figure of $75,000 per year and a 20% saving in overallwater pumped with the use of meters, the power cost should decline to approximately $60,000 per year,saving about $15,000 per year.

In order to get an approximation of the potential savings of chlorine consumption, it can be assumed thateach well source will need to be chlorinated. This may not be necessary depending on the GUDI / GARPassessment (groundwater under the direct influence of surface water or at risk of containing pathogens).However, for the purpose of the cost comparison, it has been assumed that all wells will be chlorinated.

Chlorine application to the municipal system could run at a 1 mg/L dosage rate. For an annual volume of2,210 million litres (ML), the annual chlorine consumption is 2,210 kg. Using liquid hypochlorite in a 12%solution, the unit cost of chlorine is approximately $4.00 per kg, or $9,000 per year. A 20% saving wouldreduce this to $7,200 per year, or an approximate saving of $2,000 per year.

Based on the above, the overall savings in variable annual costs ($15,000 less for power and $2,000 lessfor chlorine) would be in the order of $17,000 per year.

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Other savings that could be realized with reduced water consumption is the deferral of developing anadditional supply well. This will, of course, depend on how quickly the Town grows and how effectivewater conservation techniques are. Well drilling, testing, and commissioning can represent a significantcost so deferral of this level of expenditure would be beneficial to the Town.

8.4.5 COST SUMMARY

Capital: The estimated capital cost for universal metering is approximately $1.9 Million. This is somewhathigher than the estimate of $1.66 Million provided in the 2010 Water Conservation Plan prepared byTRUE. This is not surprising considering how the costs of water metering and radio read equipment haveincreased over the past five years.

O&M: The estimated additional annual operations and maintenance cost is approximately $17,000 peryear for reading, billing, etc. This is part-time work for staff and may or may not warrant hiring additionalstaff depending on current utilization rates.

Replacement: Prudency would allow for capital replacement in the 20 year timeframe, which means theTown should set aside some $50,000 per year.

Savings: Savings associated with reduced power and chlorine consumption are estimated at $17,000annually.

Financing: For the estimated capital cost, financing $1,912,000 for 20 years at the current MunicipalFinance Authority Rate of 3.5% yields and annual repayment of $134,600/year. The recovery of this debtservicing cost for approximately 3,200 customers on a flat rate basis would represent about $42 per year.

The additional estimated annual O&M costs of $17,000 are offset by an approximate $17,000 of annualpower and chemical savings.

In order to set aside reserve funding for future water meter asset replacement, and annual contribution of$50,000 is estimated. This would represent an additional $15 per year per customer for a service areacomprised of about 3,200 customers.

There are senior government funding programs for which metering is considered eligible. One is theBuilding Canada Fund, which will contribute up to 2/3 of the capital cost of a universal metering project.The other is the Gas Tax Fund, which will contribute up to 100% of capital costs for a universal meteringproject. So senior government funding can make a significant difference on the amount that needs to befinanced by the local government. An assessment of senior government funding potential is a prudentnext step should the Town wish to pursue universal metering.

8.5 Metered Rate Setting

The setting of metered rates is not a straightforward task. It involves taking a detailed look at current andfuture costs and expenses, rate structure options, and the amount of water that the various customersgroups use. The paradox of metering is that if customers do an excellent job of reducing their waterconsumption, revenues may become insufficient to sustain the utility. Some key objectives in developinga metered rate system include:

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· Maintain the system’s financial stability by ensuring a sufficient revenue stream;

· Collect reserve funds for future asset rehabilitation, repairs, and compliance with regulations;

· Plan ahead for gradual rate increases when necessary; and

· Deliver fairly priced high quality drinking water.

Charging customers the actual cost of water service will guarantee that the revenue collected will coverall of the utility’s costs. The benefits of recovering all costs include:

· Financial Capacity: acquire and manage sufficient resources to maintain financial stability;

· Technical Capacity: keep up the system’s infrastructure and operational abilities; and

· Managerial Capacity: attract, retain, and regularly train certified operators.

In order to use the “cost of service” accounting approach, the Town requires annual cost worksheets andannual revenue worksheets, as well as annual amounts required for reserves. This will allow a ratestructure to be designed that will cover all costs. Some common rate structures fall into the followingcategories:

· Flat Rate / Fixed Fee Rate Structure

· Uniform Rate Structure

· Decreasing Block Rate Structure

· Increasing Block Rate Structure

· Seasonal Rate Structure

Many jurisdictions have opted to use a combination of several structures to ensure equity to all customersand sufficient revenues for the utility. In order to achieve this, the customers and their consumptionpatterns must be accurately characterized. The City of Kelowna, for example, installed universal meters,but continued with flat rate charges for two years. With meters in place, they used the two year period torecord and analyze the consumption data and patterns, and then used that data to develop appropriateunit rates for a range of customer types.

As a general rule, flat rates provide a predictable revenue stream; however, if consumption increasesseverely, there is no mechanism to cover the cost of supplying additional water. Similarly, metered ratesthat charge higher rates per unit of water may force conservation but reduce revenues. For thesereasons, it is prudent to develop a strategy for analyzing the metered data for two to three years beforeconstructing a rate schedule.

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9.0 DISCUSSION AND RECOMMENDATIONS

9.1 Discussion

The examination of the Town of Osoyoos historical water consumption records yields some interestingobservations. In many ways, the Osoyoos pattern is similar to other communities in the Okanagan, withnoticeable summer peaking from residential yard sprinkling. Osoyoos, however, gets the additional effectof also having a greater seasonal population during the summer months.

The population increases from short-term visitors (hotels, motels, etc.), is common throughout theOkanagan. The Osoyoos population, however, also increases from the effect of recreational housing,when non-resident owners bring their families for the summer. Recreational housing is a relatively recent,but popular, form of ownership. The number of recreational units in Osoyoos has grown to over 700,representing roughly half of the multi-family units in the Town.

The analysis shows that the most effective water conservation efforts should be directed at reducingoutside water use. This can be achieved to a limited extent with outside water use restrictions, with abylaw already in place. The bylaw requires policing to ensure customers adhere to the restrictions. Amore effective method of reducing outside water consumption is the use of xeriscape landscapingtechniques where native drought tolerant plants are used in place of lawns. Xeriscaping can be arequirement of new development and does not add to the cost of development. It can also be promotedfor replacement of existing lawns. In that instance, the local government will typically provide an incentivein the form of a subsidy or tax credit to encourage changeover to xeriscape. Senior levels of governmentin the United States have incentive programs with partial funding, however such programs are lessprevalent in BC.

The use of low flow fixtures will also have a beneficial impact on total water consumption. Retrofitprograms are typically subsidized by both local governments and senior governments, and sometimesutility companies will also contribute. Retrofit programs come with a cost. However, requiring low flowfixtures on new developments does not increase the development cost to any great extent and suchprograms are in place in many jurisdictions.

Public awareness, will, in the long-term, provide many benefits and result in overall water systemefficiency. One of the important venues is school programs. Previous initiatives on seat belts, powerconsumption, and other topics that have been launched in the schools have proven their worth within onegeneration. In addition to school programs, current customers can be motivated by having anunderstanding of where their water comes from and how it is delivered to their tap.

Metering initiatives can fulfill a variety of objectives and need not be directed solely at revenue. The valueof metering is also in determining how the system operates and where improvements in the efficiency ofthe network can be implemented. Most water networks have some leakage, and small leakage can betolerated. However, the judicious and strategic use of meters can help determine if leakage needs to beaddressed and where and how to address it. Our assessment suggests that universal or scalablemetering would be most effective, while a voluntary approach is not recommended. The metering andreading technology currently being utilized by the Town is considered well-suited for the current extent ofmetering and equally effective for an expanded program (should the Town desire).

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Other initiatives such as use of reclaimed water or accessing a local source for park irrigation, may notreduce the overall water consumption, but will reduce the stress on the domestic water system andpotentially the cost of treatment to meet potability standards.

9.2 Summary of Recommendations

The table below provides a summary of our recommendations regarding where the Town should direct itswater conservation efforts. Considerations regarding existing vs new developments are also provided.

Table 9.1 – Recommended Water Conservation Strategies

Strategy Existing Development New Development

LandscapeEfficiency

· Seek means of providing a financialsubsidy or tax incentive toencourage home owners toimplement xeriscape landscaping inplace of existing high waterconsuming landscaping.

· Retrofit existing municipalboulevards and public areas withxeriscape landscaping to reduceirrigation requirements and set agood example for the public.

· Incorporate requirements forxeriscape landscaping in the Town’sSubdivision and DevelopmentServicing Bylaw.

Fixture Retrofits

· Target multi-family and touristcommercial customers.

· Seek means of providing a financialsubsidy for a toilet (and perhapsshowerhead) replacement program.

· Replace existing high flow fixturesand toilets at public facilities (ie.Town Hall) with low flow fixtures todemonstrate the Town’s commitmentto water conservation.

· Incorporate requirements for low flowfixtures (taps, toilets, etc.) and waterefficient appliances (dishwashers,washing machines, etc.) intoapplicable bylaws.

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Strategy Existing Development New Development

Education andPublic

Awareness

· Consider a “water wise” programtargeted at outside water use atsingle family residential properties.

· Work with the schools to develop awater conservation educationinitiative for students.

· Work with tourist commercial (hotels,motels, etc.) property owners /managers to encourage guests toconserve water (ie. re-use towels,turn off taps while brushing teeth,etc.).

· Share out information on the Town’swebsite.

· Prepare a water conservationinformation package that could beprovided to new home owners alongwith other “welcome literature”typical provided by the developer orproperty agent.

UniversalMetering

· Explore funding sources that couldcover all or a portion of the costsassociated with the supply andinstallation of water meters atexisting homes / buildings.

· Consider installing meters in abelowground chamber at theproperty line (as opposed to insidehomes / buildings).

· Gather water use data to assist withfuture development of an equitableand financially sustainable meteredrate structure.

· Incorporate the requirement for awater meter at all new residentialand ICI developments in the Town’sSubdivision and DevelopmentServicing Bylaw.

· Consider specifying that meters mustbe installed in a belowgroundchamber at the property line for newdevelopments (as the cost premiumover an inside meter installationwould be minimal in terms of thedevelopment servicing costs).

9.3 Communications Strategy

An additional mandate for this assignment was to develop a communications strategy intended to engageresidents, businesses, and other stakeholders in the community and promote water conservation. Acommunications strategy is critical to the success and effectiveness of any water conservation program.

The components of the communications strategy are derived from work in other communities and tailoredto address specific issues in Osoyoos. Osoyoos is unique in its mix of year-round and seasonal residentsas well as the large proportion of visitors during the summer months. The surrounding agriculturecomponent adds another measure of complexity to the water conservation discussion.

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The Communications Strategy is provided in Appendix A. Some of the key recommendations include:

· Determine the appropriate and desired level of engagement (inform, consult, involve, collaborate,or empower);

· Conduct clear and consistent messaging;

· Conduct community-wide engagement for the broader water conservation initiative as well asstakeholder engagement for those customer types that are target audiences for specific waterconservation strategies;

· Define measures of success for the various components of the communications strategy so thatadjustments can be made and efforts can be directed where they are most effective; and

· Plan for the staff resources and funding necessary to develop and implement the communicationsstrategy.

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10.0 IMPLEMENTATION

10.1 Next Steps

In order to move forward with the implementation of the recommended water conservation strategies,there are a number of key actions that the Town needs to take to ensure that efforts and resources areeffectively and efficiently deployed. Suggested next steps include:

1. Confirm Council’s support for the selected water conservation strategies as well as thecommunications strategy. The success and effectiveness of the water conservation initiative willbe dependent on the support of politicians and management.

2. Identify bylaws that could support the Town’s water conservation initiative, specificallyrequirements for low flow fixtures and xeriscape landscaping for new developments, anddetermine when amendments or updates could be completed.

3. Explore funding programs, such as senior government grants, that could contribute financial orother resources towards the Town’s water conservation initiative.

4. Prepare a water metering information package elaborating on the range of uses and benefits ofmeters and engage the public to determine the desire and acceptance for metering as amanagement tool or for the derivation of metered rates.

5. Initiate and maintain dialogue with key stakeholder groups (such as the development communityand school board) regarding the Town’s water conservation goals and objectives and thepotential strategies being considered to achieve them.

6. Identify and plan for the budget and resource requirements for the water conservation initiativeover the next few years and beyond.

10.2 Progress Update

The suggested next steps outlined above will help the Town maintain momentum on the waterconservation initiative, working towards meeting the Province’s target of being 33% more efficient by2020. This is a ten year endeavor for the Town, which began in 2010 with the preparation of the WaterConservation Plan. Over the past five years, the Town’s efforts have been effective at reducing waterconsumption and this study outlines water conservation strategies to recognize further reductions overthe next five years and beyond.

A consistent measuring protocol needs to be established in order to set finite goals and track progress.Community water use is often expressed as a residential daily per capita value (ie. litres/person/day). Thiswould be difficult to calculate in Osoyoos’ case, given the variation in population from seasonal residents,visitors, and tourists. Water use for residential vs ICI customers would also need to be separated. In lightof these factors, the daily water use per service connection is presented.

As discussed earlier in this report, the overall annual water consumption in Osoyoos between 2000 and2010 was approximately 2,400 ML/year. The comprehensive universal metering assessment conductedin 2009 indicates a total of 3,200 service connections in the municipal water system. These inputparameters yield the following “base value”:

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A 33% reduction in total annual water use by 2020 represents a “target value” of:

2020: 2,055 litres/connection/day x 0.67 = 1,377 litres/connection/day

Over the past five years, the total annual water consumption has decreased to approximately 2,100 ML.Osoyoos has seen modest growth over this same period, with approximately 3,650 total serviceconnections in 2015. This correlates to a “mid-term value” of:


Based on the above, the Town is roughly 70% towards achieving the target water use reduction of 33%by 2020.

The Town has also been successful at reducing the maximum day water demand by approximately 12%since 2010. This is great progress and continues to defer the need to develop additional source capacity.

Overall, it appears that Osoyoos is making strong progress towards achieving their water conservationgoals. With a renewed focus on water conservation efforts and implementation of the strategiesrecommended in this study, this trend is expected to continue.


Appendix ACommunications Strategy

Town of OsoyoosOctober 2015 | 0552.0040.01

Water Conservation & Metering Assessment:

Communications Strategy

SUBMITTED BY:

Water Conservation & Metering Assessment - Communications Strategy

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Contents1.0 Introduction .................................................................................................................................... 1

1.1 Community Engagement Objective .......................................................................................... 1

1.2 Approach ................................................................................................................................. 1

1.3 Spokespeople .......................................................................................................................... 2

1.4 Audiences ................................................................................................................................ 2

2.0 Key Messages ............................................................................................................................... 4

2.1 Disseminating the Messages ................................................................................................... 5

3.0 Stage One - Community Wide Engagement ................................................................................... 6

4.0 Stage Two - Targeted Stakeholder Engagement........................................................................ 8

5.0 Measures of Success ..................................................................................................................... 9

6.0 Budget Considerations ................................................................................................................. 10

June 2015


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1.0 IntroductionThe purpose of the Communications Strategy associated with the WaterConservation and Metering Assessment is to collaborate with residents,businesses and other stakeholders in the community and wider region toexplore options to assist the Town of Osoyoos in meeting its waterconservation goals and objectives. Throughout this process, it is expectedthat communication and engagement will play a critical role in defining the

opinion of the public and various stakeholders in the community. The followingCommunications Strategy outlines a flexible procedure for engaging with the public on issues

of water consumption and communicating various options for reducing water use. Further, as the Town ofOsoyoos begins to engage the public this Strategy will help ensure the process allows community membersto be aware of, and have a say in, the decisions that will impact them and their community.

1.1 Community Engagement ObjectiveThe objective of this Strategy is to inspire community involvement in the Water Conservation and MeteringAssessment and equip interested residents with the information and tools they need to understand theissues and provide informed, meaningful input. The primary water conservation goals and objectives as setout on the 2010 Water Conservation Plan include:

· compliance with the Province’s Living Water Smart Initiative;

· minimizing operations and maintenance costs;

· deferring capital investment for major infrastructure components; and,

· demonstrating to the public that water conservation is important to the Town and pursuing changesin user behavior.

Key targets for reduction in water consumption are provided by the Province’s Living Water Smart Initiative,which has established benchmarks for reductions in water consumption, including:

· becoming 33% more efficient by 2020; and,

· requiring 50% of water demands for new development to be provided by conservation by 2020.

1.2 ApproachOverall, the current public acceptance of water metering is considered low. Therefore, an effectivecommunity engagement process that focuses broadly on water conservation rather than water meteringwill be essential.

One of the most critical components in effective communication is listening, so ideally, this communicationsapproach will also provide a platform for a two-way flow of information and meaningful dialogue. Toaccomplish that objective, this strategy identifies methods for the Town of Osoyoos to provide importantinformation to community members and, equally important, encourage their input. This process will assessand review public acceptance and challenges associated with:


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· the need for water conservation;

· creating public awareness;

· changing user behavior; and,

· enacting new water conservation measures.

Further, this strategy considers specifically tailored communication approaches for several identifiablestakeholder groups, including:

· Commercial Users and local businesses (potentially includes institutional, industrial, hotels, etc.);

· Residential (including stratas, permanently occupied properties, etc.);

· Agriculturalists; and,

· Seasonal Residents.

Overall, this strategy will also work to develop a flexible communications approach that will support theTown’s goal of meeting the stated requirements of the Province’s Living Water Smart Initiative.

1.3 SpokespeopleThe main spokespeople for the Water Conservation Initiative process will include the Mayor and Council ofOsoyoos, Barry Romanko (Chief Administrative Officer), and Jim Zakall (Director of Financial Services).

1.4 AudiencesThe audience for the communications regarding the Water Conservation and Metering Assessment willinclude the entire community of Osoyoos, as well as part-time residents and seasonal visitors. Further,there is also a need for the Town to engage regional neighbours and the region as whole in a discussionabout water conservation, as the source of Osoyoos’ water is shared by several communities. Somepotential audiences and organizations to involve in this discussion may include:

· Osoyoos Town Residents

· Osoyoos School District No. #53

· Osoyoos and District Chamber of Commerce

· Okanagan Basin Water Board (OBWB)

· Oliver Osoyoos Winery Association

· Local Media

· Osoyoos Indian Band (OIB)

· Destination Osoyoos (tourism industry)

In communicating with residents, businesses and stakeholders the Town should consider the Spectrum ofPublic Participation, and decide on what level of participation it desires from the community based on whatdirection it chooses to take water conservation (see Figure 1.0).


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The level of participation desired will influence the form of engagement and the specific steps taken toimplement the Communications Strategy. The Strategy aims for the ‘inform’ and ‘consult’ level ofparticipation, with a shift to the ‘involve’ level in some issues and circumstances.

We will keepyou informed.

We will keep youinformed, listen to andacknowledge concernsand provide feedback onhow the public inputinfluenced the decision.

We will work with youto ensure that yourconcerns and issues aredirectly reflected in thealternatives developedand provided.

We will look to you fordirect advice and innovationin formulating solutions andincorporate your advice andrecommendations into thedecisions to maximumextent possible.

INFORM COLLABORATE

We will implementwhat you decide.

EMPOWERINVOLVECONSULT

FIGURE 1.0 SPECTRUM OF PUBLIC PARTICIPATION:


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2.0 Key MessagesKey messages are not the only messages that will be conveyed, but they are the ones that will be conveyedconsistently and frequently throughout the engagement process. Examples of key messages are set outbelow.

1. The Town is undertaking a Water Conservation and Metering Assessment to develop an equitableapproach for creating a long-term strategy to manage its water resources.

2. Environmental stewardship is the highest priority for the Town of Osoyoos and the waterconservation initiative will help ensure the Town focuses on using water resources responsibly, andat the same time considering the financial, technical and social outcomes.

3. Community input is important because the Water Conservation and Metering Assessment willidentify possible solutions to reduce water consumption and their associated costs to taxpayers.

4. The Town is seeking compliance with the Province’s Living Water Smart Initiative, meaningbecoming 33% more efficient, and requiring 50% of water demands for new development to beprovided by conservation by 2020.

5. There are many potential alternative water conservation strategies, which could include:

a. Landscaping efficiency;

b. Fixture retrofits;

c. Watering restrictions;

d. Education and public awareness;

e. Water accounting and loss control;

f. Water Audits; and

g. Various metering approaches.

6. Metering is just one of many possible water conservation tools and the potential metering of majorwater users could help curb water consumption. Key messaging around the water meter discussionshould include:

a. Communications that provide clarity about what meters do;

b. Information on different metering technologies and the use of “Smart Meters” (i.e. whatthese do and how they improve data collection);

c. Different water meter implementation options, such as Universal / Scalable / Pilot /Voluntary;

d. The impacts of water metering on permanent vs. seasonal residents;

e. Communications that addresses the issue of Community Browning; and,

f. The many benefits of water meters beyond water conservation, including:

i. Revenue generation

ii. Customer service

iii. Raise awareness of the value of water


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iv. Proactive resource management

v. Equity billing

vi. Water system management and monitoring (leak detection)

vii. Future planning (asset management, infrastructure sizing, demand forecasting)

viii. Water quality improvements (support for cross connection control program)

7. Water conservation will reduce infrastructure costs, and deferring major infrastructure upgradeswill save taxpayers money.

8. Other information about the community’s current water consumption and water related issues.

2.1 Disseminating the MessagesThere are a number of methods the Town can use to communicate with the public on issuesrelated to water conservation. It is recommended that the Town use a combination ofcommunication tools in coordination with each other. These could include several of thefollowing options:

Local media, including:

· Osoyoos Times

· Osoyoos Daily News

· Castanet/Online News

· Global News Okanagan

· 1240 AM EZ-Rock Osoyoos

· 106.5 FM CIRO

· Shaw Communications

· Town of Osoyoos Website www.osoyoos.ca

· Direct Mail (with quarterly utility bills)

· Social Media (Facebook, Twitter, etc.)

· Signage/ panels

· Public meetings

· Newsletters

· Surveys

· Email distribution


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3.0 Stage One - Community Wide EngagementEarly engagement will provide an initial opportunity for community members and stakeholders to learnabout water conservation, provide input on the water consumption issues, as well as identify potentialsolutions, and how they wish to be engaged throughout the process.

Activity Objectives Distribution Timing

Newsletter · Communicate the water consumption issuesfacing the Town

· Raise awareness about the need to reducewater consumption

· Encourage community members toparticipate in the process (e.g. take thesurvey)

· Print version mailed toOsoyoos and area residents

· Copies available at TownOffice

· On-line version available onTown’s website

Fall 2015

CommunitySurvey

· Identify how residents use water, and whatwater issues are important to communitymembers

· Identify potential solutions the communitywould like to see investigated

· Identify what information people want toreceive and how they want to be engagedduring the process

· Print version mailed to allOsoyoos and area residents

· Copies available at TownOffice

· On-line version available onTown’s website

Fall 2015

Frequently AskedQuestions (FAQ)

· Anticipate questions the public may haveand proactively provide answers

· Provide an ongoing record ofquestions/answers as they are identified

· Include in first newsletter· On-line version on Town

website updated regularly

Fall 2015andongoing

Fact Sheets · Distribute fact sheets about waterconservation to inform the public aboutcurrent water usage and how it affects them

· Highlight several simple water savingsolutions to be implemented by residents

· Design and distribute factsheets in person and online.

· Create posters to place inpublic buildings

Fall 2015

Press Release toLocal Media

· Promote the newsletter and surveyparticipation

· Partner with the media to keep the publicinformed of important community initiatives

· Provide media with accurate informationand contacts

· Press release to OsoyoosTimes and local radiostations

· Press release on Town’swebsite

Fall 2015

Create a WaterConservationInitiative Pageon Town’sWebsite

· Provide community members with easy toaccess, up to date information on a WaterConservation webpage

· Provide link to electronic documents (e.g.surveys, reports, etc.)

· Question of the Month

· Town to create a separatepage linked to Public Workspage to include WaterConservation relatedinformation and documents(including link to surveys)

Fall 2015andongoing


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VisualCommunications

· Provide a community message board orsignage to create public awareness

· Update message board with information,current progress (survey results, etc.) andupcoming meetings

· Town to set-up a messageboard in the community.This should provideinformation and updates, aswell as collect feedback

Fall 2015

CommunityInformationMeeting

· Hold a community-wide information meetingto collect feedback from the public in person

· Provide information up-front and allow foropen comments

· Address the concern of the public directly· Connect community members with the

information suite described above

· Town to advertise and hostcommunity meeting on theWater ConservationInitiative

Fall 2015


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4.0 Stage Two - Targeted Stakeholder EngagementThe purpose of the targeted stakeholder engagement is to take the discussion a step further, and begin toassess and review public acceptance and challenges associated with water conservation and watermetering to determine what options will be implementable in Osoyoos.


Residents · Hold a targeted information meeting withpermanent Osoyoos residents to collectfeedback from this group on residential waterdemand and solutions currently being put towork in the community

· Prepare information targeting this specificgroup

· Administer a survey and collect feedback

· Town to advertise and hostcommunity meeting on theWater Conservation Initiativewith residents

· Potentially look to hold severalcommunity meetings inpartnership with local residentassociations

· Potential combine withcommunity events, such as theMarket on Main or othercommunity gathering.

Early2016

CommercialBusinesses

· Hold a targeted information meeting withlocal businesses to collect feedback from thisgroup directly

· Determine who are the largest water users inOsoyoos and discuss potential ways to reducewater consumption for major users

· Prepare information targeting this specificgroup; highlight industry norms and currenttrends


· Town to advertise and hostcommunity meeting on theWater Conservation Initiativewith local businesses andcommercial interests

· Potentially combine with aChamber of Commerce meeting

Early2016

Agriculturalists · Hold a targeted information meeting with theagricultural industry to collect feedback fromthis group directly

· Understand future demands and potentialsolutions from the agricultural community(i.e. demands for irrigation, etc.)

· Prepare information targeting this specificgroup; highlight industry norms and currenttrends


· Town to advertise and hostcommunity meeting on theWater Conservation Initiativewith local agriculturalists

· Potentially combine with anOliver Osoyoos WineryAssociation meeting

Early2016

SeasonalResidents

· Hold a targeted information meeting withseasonal residents to collect feedback fromthis group directly

· Prepare information targeting this specificgroup


· Town to advertise and hostcommunity meeting on theWater Conservation Initiativewith seasonal residents

· Hold meeting during summermonths to capture moreparticipants

Mid 2016


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5.0 Measures of SuccessThis section highlights the goals of this Communications Strategy and measures of success to indicatewhen the Town has begun to make progress in its approach to communicating issues related to the WaterConservation and Metering Assessment with the public. Importantly, the Town should continually seek todetermine its level of influence based on an understanding of the level of interest from public to ascertainhow effective their communications are. Some examples of measures and goals include:

· Number of survey responses – Survey receives 250 responses (5% of population).

· Resident awareness of the issue and satisfaction - 85% of survey respondents are satisfied withthe initial information they have received about the Water Conservation and Metering Assessment,and felt it clarified their understanding of the issue.

· Number of hits on the Water Conservation Initiative website – 500 hits a month shows a high levelof interest (10% of population).

· All comments or questions from community members are responded to within three business days(on-line, email or phone call) – keep people informed and engaged.

· High level of participation amongst residents and local businesses in the targeted engagementmeetings.


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6.0 Budget ConsiderationsRefinement and implementation of the Communications Strategy will require budget and resourceallocations by the Town. While the communications strategy can be used as it is drafted, it will likely requiresome refinement through discussion with staff and Council. The refinement would take place once the Townhas clearly identified the direction it plans to take with respect to the next steps in the Water Conservationand Metering Assessment. Refinement could be undertaken by staff or could be done with consultingresources in the $3,000 to $5,000 range.

Implementation of the communications strategy could have a wide range of costs depending on the levelof engagement and the number of meetings identified. The level of engagement set out in this strategywould require the Town to set aside about $40,000 to $60,000 if undertaken by communications and publicengagement consultants. This figure could increase if the number of meetings with the public andstakeholders increase. It could also be reduced if the Town provides fewer avenues of engagement. TheTown could also undertake some of the engagement activities by using internal staff resources, reducingconsulting costs, but taking up staff time and resources.

A well-executed communications strategy can enhance the understanding amongst all of the various groupsinvolved and generate a solid level of commitment to the direction identified through the process.