1. Landscape Transformation “ Millions of Lessons Learned ” Metropolitan Water District of Southern California Bill McDonnell January 25, 2016

2. Metropolitan Water District of Southern California Regional water wholesaler Includes 6 counties 5,200 square miles 26 member agencies 250-300 retail water agencies 19 million people Add about 150,000 people/yr Imported water supplies meet about half of retail demands

3. Metropolitan’s Member Agencies

6. Governor Declares Drought Emergency 2014

7. Gov. Jerry Brown Issues Calls For Mandatory 25% Water Reduction With No End In Sight For Drought

8. February 9, 2015WP & S Committee9-1 Member Agency Administered program in 2008 Initially $0.30/Sq. Ft. Increased to $1/Sq. Ft. with grant funds in 2011 Board approved maintaining rebate at $1 when grants ended in 2013.

9. February 9, 2015WP & S Committee9-1 January 2014 - Launched May 2014 - Board increased rebate to $2/Sq. Ft as important drought response. July 2014 – Staff implement additional policies for “Large Turf” reservations over $100,000. Detailed site maps MWD site inspections before and after Rebates limited to project costs Allowance for reservations over 120 days.

10. February 9, 2015WP & S Committee9-1 Accelerate the region’s ability to comply with 20% water use reduction by 2020 Increase public awareness of water efficient landscaping. Transform the market toward more efficient outdoor water use practices Act as an option for increased water savings during critical drought periods

11. Landscaping Efficiency or Inefficiency You Can See

12. 12WP & S Committee 8-1 New Devices Drought Declaration Executive Order New Programs Doubled Conservation Budget $2/sq ft Turf Radio Ads TV Ads Water Supply Alert SWRCB Emergency Regulations Radio Ads

13. Residential Customers 65 Front Yards 2,533 Front Yards 99k ft2 486k ft2 661k ft2 814k ft2 1.2M ft2 1.7M ft2 2.5M ft2 3.8M ft2

14. 2/5 Football Field 130 Football Fields Commercial Customers 22k ft2 97k ft2 194k ft2 173k ft2 773k ft2 2.0M ft2 5M ft2 7.5M ft2

15. 15WP & S Committee 8-1 $20M $40M $60M $450M $100M Budget Growth

16. Conservation Budget 1990 – 2013/14 –$352 million 2014/15 – 2015/16 –$450 million

17. 17WP & S Committee 8-1

18. February 9, 2015WP & S Committee9-1 Small percent of commercial customers account for disproportionate amount of turf removal rebate requests What is long term sustainability of the program under current rebate levels? Is current program design achieving the goal of market transformation? Equity issues of residential vs. commercial or public vs. private

19. February 9, 2015WP & S Committee9-1 15,480 36 4 5 12 10 2 $3.5M $18M $31M $15M Requested MWD Funds ($Millions) <$100k$100k- $250k $250k- $500k $500k- $1M $1M- $2M $2M- $5M >$5M 50% of Funding Requested by 0.2% of customers

20. February 9, 2015WP & S Committee9-1 Maximum annual application funding level Change in rebate level per square foot Annual turf removal budget

21. 21WP & S Committee $1 million (11.5 acres) $500,000 maximum (4.7 acres) $250,000 (2.8 acres) Reduction in Requested MWD Funds $40.7M $53.6M $60.4M Maximum Annual Incentive Level $1M $500k $250k Customers Affected 24 (0.15%) 29 (0.19%) 33 (0.21%) Customers NOT Affected 99.85% 99.81% 99.79%

22. February 9, 2015WP & S Committee9-1 Residential and Commercial Residential: $2/sq. ft. Commercial: $1/sq. ft. Potential Reduction in MWD Funds: $44.1M

23. February 9, 2015WP & S Committee9-1 Set a firm turf rebate annual budget Notify the public that funding is a “first come, first served” basis Conjunction with other program modifications Could be challenging to turn the program on and off.

24. $2/sq ft $2/sf Max: $6k Residential Commercial Before May 12, 2015 After May 12, 2015 $2/sq ft $2/sq ft (<3k sf) $1/sq ft (>3k sf) Max: $50k Public Agency $1/sq ft Max: $25k $1/sq ft Max: $25k

25. 50M sq ft Gov. Brown Directed Statewide Removal 22 M sqft 50M sq ft Removed Enough requests to exceed 150M sq ft MWD Turf Removal In process

26. Can’t Require Existing sprinkler % plants Design plans Sheet mulching Require workshop Native only Inches of mulch Pre-Post inspection

27. Golf courses HOAs Cities Very visible Good business More cost effective Public vs private Media perception Handled separately own rules

28. Originally Help colleges Increase activity Trade allies Issues Media Quality Activity Misrepresentation OOB

29. Contractor left job Contractor back logged Materials not here Was out of the country Family emergency Didn’t know had a time limit Vacations Permitting issues HOA Issues Water bill

30. Number of records Public records act Computer capability Real time data Cancelations Exceptions Invoices size W9s and 1099s Matching it all up

31. February 9, 2015WP & S Committee9-1 Member Agency input Accommodate schools, parks, and public areas Very large customers can complete their project over multiple years Align expenditures with water use patterns of residential and non-residential customers in the region. (75% residential, 25% non-residential)

32. Phone system Volume of calls Tracking information Staffing up or down Training System for exceptions Changing incentive Program funds exhausted

33. Team work Collaborated Creative No new staff Vendor management Online system Market transformation Made a big splash

34. FUTURE

35. Questions? Bill McDonnell 213-217-7693 bmcdonnell@mwdh2o.com Bewaterwise.com