BMP_Manual

Table of Contents

Acknowledgments ........................................................................................................................ 1
Introduction .................................................................................................................................... 2
Integrating Water Efficiency and Conservation into the Local Water Supply Plan ............ 5
Water Audit and Water Loss Abatement Program .................................................................. 7
Metering and Sub-Metering of Existing Residential and Multi-unit Residential,
Commercial and Industrial Users............................................................................................. 17
Retrofitting Residential Fixtures – Showerhead, Aerator and Toilet Flapper Programs . 22
Retrofitting Residential Fixtures – Ultra Low Flow Toilet Programs ................................... 30
Retrofitting Residential Equipment – Clothes Washers ....................................................... 34
Public Information Programs .................................................................................................... 38
School Education and Outreach .............................................................................................. 45
Retrofitting Irrigation Systems/Landscape Water Use Efficiency ....................................... 51
Case Study for an Outdoor Water Use Conservation Program .......................................... 56
Regionally Appropriate Landscaping ...................................................................................... 59
Rainwater Harvesting, Condensate Reuse and Gray Water Use ...................................... 75
Water Conservation Pricing ...................................................................................................... 84
Full-Cost Water Pricing ............................................................................................................. 95
Water Purchasing Contracts .................................................................................................. 104

January 15, 2013 1
Acknowledgments

This manual was prepared with the assistance of many individuals from a variety of
affiliations including: N.C. Department of Environment and Natural Resources, N.C.
Rural Water Association, N.C. Environmental Finance Center, N.C. State University,
and various North Carolina municipalities and water systems. The manual relies on
concepts, presentation style and text found in the water efficiency best management
practices manuals from other states. Much of the information contained in the manual
was reprinted from the Texas Best Management Practices Guide with permission from
the Texas Water Development Board. The N.C. Division of Water Resources would like
to thank the Texas Water Development Board for granting permission to North Carolina
to reprint this material.

The N.C. Division of Water Resources has taken extra effort to develop best
management practices in order to enhance community water systems’ water efficiency
and conservation in this manual. However, it would not have been possible without the
support and assistance of these individuals and organizations. We would like to extend
our special thanks to all of the water systems that tested the Small Water System Water
Audit and allowed us to use their current best management practices as case studies to
better convey the goal of this manual to other communities.

Most of this material contained in the manual has been reworked extensively, and is
difficult to reference precisely. Exact referencing has been attempted when possible,
and those documents that have been used, in general, have been included in the
reference list.

January 15, 2013 2
Introduction

In 2011, the North Carolina General Assembly passed Session Law 2011-374 (HB 609)
Section 3.1. G.S. 143-355(l) that mandates improved efficiency of the use of North
Carolina’s water resources. As part of this mandate, water systems are required to
complete and submit a local water supply plan to the N.C. Department of the
Environment Natural Resources’ Division of Water Resources that includes a plan for
the reduction of long-term per capita demand for potable water.1
The N.C. Department of Environment and Natural Resources was charged with
providing statewide outreach and technical assistance as needed regarding water
efficiency, which includes the development of best management practices for
community water efficiency and conservation. Although used interchangeably, water
efficiency and conservation can have different contextual meanings. Simply put, water
efficiency should be thought of as the practice of optimizing the use of available water
supply, and water conservation as behavioral practices that result in consumption
reduction. The required best management practices include:
Integrating water efficiency and conservation into local water supply plans.
Conducting regular water audits to identify revenue and nonrevenue water and
water losses.
Adopting water loss abatement programs.
Metering and sub-metering of existing residential and multi-unit residential,
commercial and industrial complexes.
Retrofitting residential fixtures (faucets, showerheads, toilets, etc.) and
equipment (clothes washers, dishwashers, etc.) to make them more water
efficient.
Landscaping in a manner that conserves water and is regionally appropriate.
Employing water reuse practices that include harvesting rainwater and using gray
water.
Pricing water to achieve comprehensive conservation and adopting full-cost
accounting in line with the recommendation approved by the State Water
Infrastructure Commission in November 2010.

1 The per capita water demand can be calculated by using a water system’s annual residential
demand and year-round population (annual demand in gallons per day divided by year-round
population).

January 15, 2013 3
In addition to developing these, the N.C. Division of Water Resources also included best
management practices (BMPs) for:
Water supply contracts between water systems selling water and those
purchasing the water.
A consumer education program that emphasizes the importance of water
efficiency and conservation, including measures residential customers may
implement to reduce water consumption. This BMP also serves to help water
systems become eligible for state water infrastructure funds from the Drinking
Water State Revolving Fund, the Drinking Water Reserve, or any other grant or
loan of funds allocated by the General Assembly that require incorporating
consumer education as mandated by Section 3.2. G.S. 143-355.4(b).
A school outreach and education program.

The purpose of this BMP manual is to assist water system managers in determining
which BMPs would be most effective in reducing their long-term per capita demand for
potable water. Water systems are encouraged to objectively view BMPs in this manual,
and make decisions that would most benefit their organization and the customers they
serve. Although water systems are not required to implement any specific best
management practice, there are several that are considered foundational to effective
water efficiency plans. The most important is conducting regular water audits to identify
revenue and nonrevenue water and water losses. As part of conducting these water
audits, metering of all connections is essential to account for all water used. This data
will be used as a baseline for comparison against future water use to determine
increased efficiency. In addition, adopting leak detection and water loss abatement
programs allows systems to act on the water audit information to reduce water loss and
lost revenue.
The manual will outline several BMPs that have been successfully used in other water
systems throughout North Carolina and the United States. Each BMP will contain the
following components:
Applicability – The specific type of water system that could potentially benefit from the
BMP is described, as are the general goals for water efficiency that the BMP addresses.
Description – This section provides an explanation of the specifics of the conservation
measure(s) included in the BMP. The best available technology that is proven and cost
effective is recommended. Often a best available technology may not yet be cost
effective to be implemented by all water users. Highly efficient water conservation
measures that will produce cost-effective results are mentioned.
Implementation – The basic steps to accomplish the BMP are described. If the
description section includes more than one measure to complete the BMP, the
implementation section will suggest necessary steps for achieving the water savings.
January 15, 2013 4
Schedule – In BMPs with multiple implementation steps, a recommended schedule for
implementation is included. In general, planning, data gathering and evaluation steps
should be accomplished within 12 months of adoption of a specific BMP.
Scope – For simpler BMPs, the scope is complete when the steps described in the
implementation section have been achieved. For more complicated BMPs, the scope
discusses the level of implementation and constraints necessary to consider the BMP
complete.
Documentation – To track the progress of a BMP, the water system should collect
certain data to document progress in implementing the BMP and evaluating actual
water savings. This section identifies the recommended data.
Determination of Water Savings – This section specifies information necessary to
calculate water savings from implementation of the BMP and may include statistical or
mathematical formulas when appropriate.
Cost-Effectiveness – Basic costs of implementing the specific BMP are explained. Due
to the wide variety in actual costs based upon the size and location of the program,
ranges of costs are given where appropriate. In many cases, costs and expenses can
be reduced or spread out when multiple BMPs are implemented. This section primarily
serves to remind the users of costs to consider when performing a cost effectiveness
analysis.
References – The BMP concludes with a listing of resources for additional information
and contact information that can assist a water system in implementing the BMP.
Case Study Example – Each applicable BMP will be followed with an example of how
that specific BMP has been successfully implemented by a water system.
As efficiency and conservation practices are implemented, new insights, technological
advances and information will become available. In addition, future technologies may
improve water savings and reduce costs. Therefore, this manual should be seen as an
evolving document that will be routinely updated and modified based on new
information or user feedback. The N.C. Division of Water Resources encourages utility
managers, efficiency/conservation specialists, planners, policy makers, and others to
provide comments and feedback regarding this document, so it can be continually
improved to better serve the water systems of North Carolina. For general comments or
questions about this BMP Manual, please contact the manager of the Water Supply
Planning Branch at 919-707-9024.
By completing the following BMPs, a water system can fulfill several requirements under
Section 9 of the Drought Bill. Fulfilling these requirements also will help the water
system be eligible for loans under the N.C. Division of Water Resources State
Revolving Fund (DWRSRF). For details and further information, see
http://www.ncwater.org/pws/srf/Factsheets/DroughtBill_ProcedureMemo.pdf.
January 15, 2013 5

Integrating Water Efficiency and Conservation into the Local Water
Supply Plan

A local water supply plan (LWSP) is an assessment of a water system's current and
future water needs and its ability to meet those needs. By understanding current and
future needs, communities will be better equipped to manage water supplies and plan
for water supply system improvements. As the population in North Carolina continues to
increase, communities should make it a high priority to ensure that their customers are
conservation minded and that their water system is operating at peak efficiency.
Although used interchangeably, water efficiency and conservation can have different
contextual meanings. Simply put, water efficiency should be thought of as the practice
of optimizing the use of available water supply, and water conservation as behavioral
practices that result in consumption reduction. The LWSP can be a very useful tool in
measuring how well a water system and its customers are managing available water
supply.

As a result of Session Law 2011-374, water systems must now include a plan to reduce
long-term per capita water demand within their jurisdiction as part of their LWSP
submittal. As a matter of practicality, the per capita water demand can be calculated by
using a water system’s annual residential demand and year-round population (annual
demand in gallons per day divided by year-round population). The N.C. Division of
Water Resources has modified the LWSP to help water systems better track their long-
term per capita water demand (see statement below). A chart in Section 5 of the LWSP
will track long-term per capita water demand based on year-round population and water
demand projections entered by the user. The chart will also be equipped to show a
history of per capita water demand. By integrating this feature into the LWSP, systems
can see how well their efficiency and conservation plans are working. Although there is
no requirement to implement a specific BMP, water systems should consider
implementing one or more of the BMPs in this manual, or devise their own BMPs. It
should be noted that water savings from the implementation of a particular BMP will not
be the same for all systems. Factors such as implementation choice(s), condition of
assets, maintenance programs, and customer behaviors will affect the level of water
savings realized by each system.

There are several BMPs considered fundamental to an effective water efficiency and
conservation plan; however, conducting regular water audits is foundational to an
effective plan. Conducting an initial water audit allows a water system to determine
baseline efficiencies and set realistic goals for improvement. Subsequent water audits
enable a water system to measure milestone achievements and performance of BMPs
implemented. Once a water system begins conducting water audits, evaluations can be
performed to determine which BMPs are most effective at minimizing losses and
reducing long-term per capita water demand.

January 15, 2013 6
Regardless of which BMPs a water system implements, there must be a reduction in the
long-term per capita water demand. By implementing water efficiency and conservation
practices, communities will be better positioned to meet the future water supply needs
of their customers.

The statement associated with the tracking chart in the LWSP reads as follows:
Your long-term water demand is xx gallons per capita per day. What demand
management practices do you plan to implement to reduce the per capita water demand
(i.e. conduct regular water audits, implement a plumbing retrofit program, employ
practices such as rainwater harvesting or reclaimed water)? If these practices are
covered elsewhere in your plan, or there are no changes from a previous submittal,
indicate where the practices are discussed or “No Changes” here.

For comments or questions regarding Integrating Water Efficiency and Conservation
into the Local Water Supply Plan, please contact the water efficiency specialist of the
Water Supply Planning Branch at 919-707-9002.
January 15, 2013 7
Water Audit and Water Loss Abatement Program

Background

Every gallon of water lost or wasted due to system inefficiencies comes at an increasing
cost to our communities and natural resources. Water audits and water loss abatement
programs, more commonly known as water loss control programs, are valuable water
management tools that can improve the efficiency of water production and delivery
within all utilities in the state. It is important that water systems focus on the efficiency of
their water supply operations while promoting water efficiency and conservation to their
customers.

While not currently required by law, an essential tool to determine the efficiency of a
water system is the water audit. Water audits are routinely used by utilities and have
proven to be extremely beneficial in identifying areas for system improvement. These
improvements have saved utilities money and provided customers with a more reliable
water supply.

Different types of water audits are used to account for water activity in a system. Two
options are the small system water audit, which was developed from the N.C. Division
of Water Resources’ local water supply plan (LWSP), and the American Water Works
Association (AWWA) water loss control committee’s free water audit.

The need for a standardized water audit was identified by AWWA, and through the
efforts of its members, the free water audit has been made available by going to
http://www.awwa.org/Resources/WaterLossControl.cfm?ItemNumber=48511.

While the AWWA water audit applies to all systems, smaller systems (less than 10,000
people) with more limited resources may wish to complete a slightly less comprehensive
audit. DWR has developed an alternative water audit to meet this need. A link to the
free software will be on the division’s website soon.

Information and technical assistance regarding the use of either of these audits can be
found by going DWR’s website at htttp://www.ncwater.org.

Applicability

A water audit is the first and most important best management practice a utility should
implement, and lays the foundation for any water loss control program. This BMP is
intended for all utilities and should be considered by a utility that:

Needs to ensure its customers are fairly paying for the amount of water they are
receiving.
Needs to reduce water losses to ensure an adequate future water supply for its
customers.
Would like to analyze the benefits of reducing non-revenue water.
January 15, 2013 8
Does not conduct periodic water audits.
Wants to determine how under-registering meters and unmetered users are
impacting revenue.
Does not have an active water loss control program.

To maximize the benefits of this BMP, the utility should use information from the water
audit to implement effective water loss control strategies, revise meter testing and repair
practices, reduce unauthorized water use, and improve accounting for authorized, un-
billed water users.

Description

Water audits and water loss control programs are effective tools for the accounting and
management of all water activity in a system. Performing a reliable water audit is the
foundation of proper water resource management and loss control in water systems.
Interest has increased in revising and developing water audit procedures to move away
from simply considering “unaccounted for water” to a systematic methodology of
accounting for all water activity. The structured approach of a water audit allows a utility
to reliably track water uses and provide the information to address unnecessary water
and revenue losses. The information that comes from a water audit is valuable in setting
performance indicators and goals and to cost-effectively reduce water and revenue
losses.

The Water Audit

A water audit accounts for water processed by a utility. The audit starts with an accurate
accounting of raw, treated and distributed water. In an ideal water audit, the accuracy of
the raw water meters and their output should be verified. This production is then
compared to authorized consumption, both billed and un-billed, to determine water loss
in the system. Water loss is divided into apparent water loss and real water loss.

Apparent: Water loss due to meter accuracy error, data transfer errors between
meter and archives, data analysis errors between archived data and data used
for billing/water balance, and unauthorized consumption including theft. The cost
of apparent water loss is estimated using a utility’s retail water rates.

Real: Water loss due to leakage and excess system pressure. Real water loss
can be reduced by more efficient leakage management, improved response time
to repair leaks, improved pressure management and level control, improved
system maintenance, and replacement and rehabilitation. The cost of real water
loss is estimated using marginal production costs, such as energy and chemicals
needed to treat and deliver the water.

The water audit can also analyze billed versus metered consumption, large meter
sizing, pump efficiency and economic leakage. The water audit may be expanded or
January 15, 2013 9
contracted depending on the size of the system. A utility that wants to improve water
efficiency will conduct the water audit every year.

Completing the Water Audit

The water audit is basically accomplished in two steps:

1. Collect data to perform the water audit.
2. Verify data collected.

The collection of data for the water audit is called the top-down approach. The
verification of the data used in the water audit is called the bottom-up approach. Both
approaches must be completed in order to obtain reliable results from the water audit.

For the top-down approach, a desktop water audit using existing records and
estimations is used to provide an overall picture of water losses. Small utilities that have
an updated LWSP would benefit from using the small system water audit because they
have already gathered a substantial portion of the data needed to complete the top-
down approach. If a utility has conducted a water audit using the AWWA M36 Manual,
they have already completed a more in-depth process. The small system water audit
spreadsheet included in this BMP is only recommended for small utilities with
populations below 10,000 people and who do not consider the AAWA water audit
appropriate for their system.

Utilities that use the small system water audit should first print the definitions to become
familiar with the terms needed to complete the water management table. The water
management table is the main spreadsheet used to complete the audit. The
spreadsheet only accepts values in the non-shaded cells. Cells with red triangles at the
top right corner contain instructions. Use your cursor to roll over the red triangle to see
the instruction box. The spreadsheet has three major components: water delivered by
the utility, water used by customers and water and revenue loss experienced by the
utility. Losses are calculated by the spreadsheet using tools such as the Meter Error
Table, the Cost to Produce Calculator, and the Retail Charge Calculator that are
included as tabs at the bottom of the spreadsheet.

Some records that will be needed to complete the top-down approach include:

Quantity of water entering the system.
Customer billing summaries.
Leak repair summaries.
Meter accuracy test.
Meter change-out summary.
Water production cost.
Retail rates for water.
Permitted fire hydrant use.
Other records that may be kept on water theft and unmetered uses such as line
January 15, 2013 10
flushing or street cleaning.

Once the top-down approach is complete, the utility should have an overall picture of
apparent and real losses along with its associated revenue loss.

For the bottom-up approach, the process of verifying the data used in the water audit is
performed. This process involves a detailed investigation into actual policies and
practices of the utility and includes activities such as:

Checking water consumption values used in the billing system for different user
types.
Performing meter calibrations for a sample set of user types.
Improving estimates of water consumed by un-billed (i.e. fire department, and
public works department) and unauthorized users.
Properly metering all authorized users.

This part of the audit is phased in during several years and will help shape the
objectives and priorities to improve system efficiency.

Tools that can be useful to accomplish the bottom-up approach include models capable
of analyzing system pressure, night and zonal flows, and the practice of keeping good
leakage repair records that show lag times to repair a known leak. Once the bottom-up
approach is complete, a utility should have enough reliable data to establish a baseline
for water loss and revenue loss. From here, development or modification of the water
loss control program can begin.

Water Loss Abatement Program

In order to reduce water loss and revenue loss due to leakage, a utility should develop
and maintain a proactive water loss control program. The program should identify
objectives based on results from the water audit, and set goals to reduce water and
fiscal losses. A structured approach to leakage management has proven to be
successful in limiting losses. Potential elements of an active water loss control program
include:

Conducting regular inspections and soundings of all water main fittings and
connections.
Using a water loss modeling program. A model can range from the AWWA M36
manual water audit spreadsheet to a commercially available statistical model.
Metering and managing individual pressure zones.
Establishing district metering areas (DMA) and measuring daily, weekly or
monthly flows with portable or permanently installed metering equipment.
Continuous or intermittent night-flow measurement.
Installing temporary or permanent leak noise detectors and loggers.
Reducing repair time on leaks. Long-running small-to-medium size leaks can
result in the greatest volume of annual leakage.
January 15, 2013 11
Controlling pressure just above the utility’s standard-of-service level taking into
account fire requirements, outdoor seasonal demand and requisite tank filling.
Operating pressure zones based on topography.
Limiting surges in pressure.
Reducing pressure seasonally and/or where feasible to reduce loss from
background leaks.

If a utility has not had regular leak surveys performed, it will probably need at least three
leak surveys performed in consecutive years, or every other year for the following
purposes:

The first survey will uncover leaks that have been running for a long time.
The second survey will uncover additional long-running leaks whose sounds
were masked by larger nearby leaks.
By the third survey, the level of new leaks should start to approximate the level of
new reported leaks.

The utility should make every effort to inform customers when leaks exist on their side
of the meter. If customer service line leaks are significant, a utility may want to consider
making the repairs itself or shutting off the water until the leak is repaired.

The water loss control plan should address areas such as:

Customer meter inaccuracy due to meter wear, malfunction or inappropriate size
or type of the meter.
Data transfer error when transferring customer metered consumption data into
the billing system.
Data analysis errors including poor estimates of un-metered or un-read accounts.
Inaccurate accounting resulting in some accounts not being billed for water use.
All forms of unauthorized consumption including meter or meter reading-
tampering, fire hydrant theft by contractors, unauthorized taps, and unauthorized
restoration of water service cutoffs.
Un-metered municipal connections. Every effort should be made to meter
municipal connections in order to better account for water use. Spikes in water
use should be reported to the user as this may indicate a leak.
Field Response and maintenance procedures.

Implementation

To successfully implement this BMP, the utility should start by forming a working group
from the following work areas: management, distribution, operations, production,
customer service, finance and conservation. Each of these work areas has an essential
role to play in implementing this BMP. Smaller utilities may have the same person
performing several of these functions; therefore the working group may just be one or
two individuals. The utility should also consider a public involvement process to solicit
outside input and enhance public relations.
January 15, 2013 12

Initially, the working group should focus on gathering relevant data that will form the
basis for completing the top-down approach. Some questions that should be addressed
during this process are:
Should we test production meters and how often? Commercial meters more than
one inch? More than 2 inches?
Should we replace or repair ⅝-inch and ¾-inch meters? How often?
How inaccurate are the ⅝-inch and ¾ inch meters on average when they are
replaced?
How do we estimate total leakage from each leak based on the leakage flow-rate
and duration of leakage from time reported to when it is fixed?
How do we improve this process?
How long does it take to repair leaks? How do we reduce this time? (The repair
logs should be itemized by size of leak).
How are customers encouraged to report leaks?
Is our system for tracking the location of leaks and our method to calculate when
it is cost-effective to replace mains and service lines adequate? How do we
improve this process?
Do meter readers inspect for and report leaks?
How do we adjust consumption records when billing records are adjusted?
How do we improve the optimal use of backwash and other in-plant
water?
How can we improve our theft reduction program?

Based on data collection efforts by the working group, the utility should have enough
information to complete the top-down approach, as well as identify ways to improve the
information for future audits.

In conducting the bottom-up approach, the working group should focus on evaluating
data handling procedures and performing field investigations to improve the quality of
data used. Activities can include:

Checking the customer billing system for water consumption data handling
errors.
Categorizing user types by meter size and consumption volume to check for
gross irregularities in consumption.
Performing meter accuracy tests for a sample set of various user types.
Performing investigations to identify unauthorized water use among a sample set
of various user types.

The top-down and bottom-up approaches to completing the water audit should be
incorporated into the working members’ job duties in order to maintain a set of good
objectives and priorities to be performed through the water loss control program.

January 15, 2013 13
Schedule

To accomplish this BMP, the utility should:

Gather the necessary data to complete the top-down approach, and perform the
water audit within the first 12 months of implementing this BMP.
Begin to make bottom-up refinements in the 12 months immediately following the
completion of the top-down approach.
Begin to develop or modify the water loss control program immediately after
making refinements to the water audit. Development of the water loss control
program can occur simultaneously while performing the bottom-up approach, but
it is advised to obtain the best data reasonably possible before investing
substantial capital to address efficiency objectives.

Scope

To accomplish this BMP, the utility should:

Conduct periodic water audits in accordance with the methodology in this BMP
manual, or use the AWWA M36 Manual.
Develop and perform a proactive distribution system water loss control program
and repair identified leaks.
If the audit warrants, implement:
o A pressure reduction strategy.
o A program to reduce real losses including a leak detection and repair
program.
o A program to reduce apparent losses.
Advise customers when it appears that leaks exist on the customer’s side of the
meter and evaluate a program to repair these leaks.

Documentation

To track the progress of this BMP, the utility should maintain and have available the
following documentation:

A copy of each annual system water audit and a list of actions taken in response
to the water loss control program.
An annual leak detection and repair survey, including number and sizes of leaks
repaired.
The number of customer service line leaks identified and actions taken to repair
these leaks.
Pressure reduction actions taken.
Updates made to the billing system.
Meter change-out efforts.
Theft elimination efforts.
Annual revenue increase through water loss reduction efforts.
January 15, 2013 14

Determination of Water Savings

Water savings is an integral part of the water audit process and should be revealed in a
water audit report. Water savings should become evident after completing the water
audit and execution of strategies in the water loss control program. Whether a system
chooses to use the DWR’s small system water audit or the AWWA free water audit,
both audits include metrics that provide for the visualization of actual savings resulting
from program enhancements. Total apparent and real water losses can be used as a
measure of improvement in volumetric losses, and the cost of apparent and real water
losses can be used as a measure of reduction in revenue loss.

Cost-Effectiveness Considerations

Direct costs that should be considered in implementing this BMP include the initial and
ongoing costs to perform and update the water audit and the water loss control
program, capital costs for items such as leak detection equipment, billing software
upgrades and repairs to the system. Utilities may wish to do the work in-house with
technical staff or use outside consultants and contractors.

A cost benefit analysis should be incorporated as part of a utility’s overall strategy to
reduce losses and improve efficiency. The cost benefit analysis should measure the
cost of system software and hardware improvements against anticipated benefits in
revenue gain. The analysis should also predict when the utility should start seeing a
return on investment from actions taken in the water loss control program.

For comments or questions regarding the Water Audit and Water Loss Abatement
Program BMP, please contact the water efficiency specialist of the Water Supply
Planning Branch at 919-707-9021.

References

Water Loss Control Manual, Julian Thornton, McGraw-Hill 2002.
M36 Manual, AWWA, 2009 Third Edition.
Applying Worldwide BMPs in Water Loss Control, AWWA Water Loss
Control Committee, Journal AWWA, August 2003.
Survey of State Agency Water Loss Reporting Practices: Final Report to the
AWWA Technical and Education Council, Beecher Policy Research, 2002.
Benefit Cost Analyses of Leak Reduction Program: A Note for the Canadian
Water and Wastewater Association, Alan Lambert, 2002.

January 15, 2013 15
Case Study for a Water Audit and Water Loss Abatement Program

Mars Hill, North Carolina

Background

Mars Hill is a small town in the southern portion of Madison County, North Carolina. The
town's history is closely linked to Mars Hill College, the oldest educational institution still
in its original location in Western North Carolina. It is part of the Asheville Metropolitan
Statistical Area.

The town’s population was 1,869 according to the 2010 U.S. Census. According to the
2011 local water supply plan update, the town had a year-round service population of
3,150 people. The total included 1,200 students with 702 residential connections and
124 gallons per connection per day. Mars Hill withdraws their water supply from Popular
Cove Reservoir on Big Laurel Creek.

In 2008, the North Carolina General Assembly provided N.C. Department of
Environment and Natural Resources with funding for the most drought vulnerable water
systems in order to have consultants complete a detailed water audit. Using the AWWA
Water Loss Control Committee Free Water Audit, the consultant reported that Mars
Hill’s had an estimated non-revenue water loss of 38 percent.

In 2012, the town staff believed this figure was reduced to between 20 percent and 25
percent. The consultant provided several valuable recommendations and the town of
Mars Hill wants to find and reduce non-revenue water loss and improve their water
system in other ways as well.

Water Audit Results

The main recommendation from the water audit was to continue to audit the water
system in future years. Most of the original input data was taken from estimates, so
metering all water use is a key to more accurate data. Other recommendations
included:

Troubleshoot billing software.
Replace Mars Hill College (MHC) turbine meters with compound meters.
Active leak detection for the cross-country transmission line.
Replace MHC’s two 6-in. meters and the 2-in. Madison Manor meter with
compound auto-read meters.
Active leak detection workshops for Mars Hill’s staff.
Develop Unidirectional Flushing Strategy and Valve Inventory/Exercise Program.
Maintain Standardized Leak Detection/Repair and Flushing Records.
Add distribution system personnel to support development of leak detection
program.
January 15, 2013 16
Develop meter inventory and systematic replacement of meters seven years or
older with automatic read meters; target (minimum) between 5 percent and 10
percent replacement each year.
Perform water rate study.

Actions that have been incorporated into the utility’s standard operation procedures to
date:

• The town has added distribution personnel, per the audit’s recommendation.
• Successful efforts have been made to reconcile outliers and glitches in the
software of the billing system.
• Missing accounts were restored and all are metered. Un-billed accounts are now
in consumption records.
• The town is setting aside funds (approx. $16,000) to replace the Mars Hill
College turbine meters with compound meters (Four 2-inch meters and one 6-
inch meter).
• Two 6-inch meters are being priced for replacement.
• The 2-inch Madison Manor meter was replaced.
• The town and a consultant performed leak detection on their cross-country
transmission line. Based on finding numerous problems, they are replacing this
old, high-pressure line with 8-inch ductile iron in 2012.
• Active leak detection was performed on the Bailey Street line.
• Town staff was trained in active leak detection techniques.
• One of three recommended large pressure-release valves for pressure
management will be installed with the new cross-country water line.
• Town staff are now keeping records on leak detection, repairs and flushing.
• Town staff regularly evaluate unauthorized consumption.
• A radio-read meter replacement program has begun; 107 out of 800 meters have
been replaced thus far with the oldest meters being replaced first.
• The town did a water rate study and now has an increasing block rate. The town
formerly had a fixed flat-rate for water rate structure.

Mars Hill has demonstrated that by undertaking a Water Audit and Water Loss
Abatement BMP, they are progressing towards a more efficient water system. As Mars
Hill continues to incorporate the recommendations of the water audit, they will continue
to reduce their water losses and increase their revenues.

The town manager indicated he would be glad to discuss the Water Audit and Water
Loss Abatement Program with anyone regarding the successes they have had in Mars
Hill. Mr. Daryl Boone can be contacted at 828-689-2301.
January 15, 2013 17
Metering and Sub-Metering of Existing Residential and Multi-unit
Residential, Commercial and Industrial Users

Applicability

This BMP is intended for all water systems (“utility”) that do not have 100 percent
metering of all customer connections. Improved accuracy of meters resulting from
increased maintenance efforts should result in increased revenue and reduced water
loss. Metering of all new customer connections and retrofitting existing connections are
effective methods of accounting for all water usage by a utility within its service area.

Description

Proper installation of meters by size and type is essential for good utility management.
Using and maintaining the most accurate meter for each type of connection will help to
generate adequate revenues to cover the expenses of the utility, ensure equity among
customers, reduce water waste and reduce flows to wastewater facilities. The American
Water Works Association (AWWA) provides a number of helpful resources on metering.
Those resources are listed in the reference section of this BMP.

The purpose of this BMP is to ensure that all aspects of meter installation, replacement
testing and repair are managed optimally for water use efficiency.

For a utility’s meter program to qualify as a BMP which satisfies the requirements of
Session Law 2011-374, it should include:

Required metering of all connections.
A policy for installation of adequate, proper-sized meters as determined by a
customer’s current water use patterns. The use of compound meters for multi-
family (“MF”) residential connections or other industrial and commercial accounts
is recommended.
Direct utility metering of each duplex, triplex, and four-plex unit whether each is
on its own separate lot or whether there are multiple buildings on a single
commercial lot.
Meter all utility and publicly-owned facilities even if it the utility does not choose
to bill these facilities. (This helps at the time of a water audit to account for all
authorized uses).
Use construction meters and access keys to account for water used in new
construction.
Require separate meters for all in-ground irrigation systems as per G.S. 143-
355.4.
Review capital recovery fees to determine whether the fees provide any
disincentive to developers to use utility metering of apartment units.
Annual testing and maintenance of all meters larger than 2 inches since a meter
may under-register water use as the meter ages.
Regular testing and evaluation of 5/8 inch and 3/4 inch meters which are 8 to 10
January 15, 2013 18
years in service to determine meter accuracy or a periodic, consistent
replacement program based on the age of the meter or cumulative water volume
through the meter. This program should be based on testing of meters at each
utility to determine the optimal replacement/repair period since it depends on the
quality of water and the average flow rate through the meter versus the capacity
of the meter.
An effective monthly meter-reading program where readings are not estimated
except due to inoperable meters or extenuating circumstances. Broken meters
should be fixed within seven days.
An accounting of water savings and revenue gains through the implementation of
the Meter Repair and Replacement Program.
Meter hydrant flushing and fire use to the extent practicable.

Implementation

To accomplish this BMP, the utility should do the following:

Conduct a Meter Repair and Replacement Program following the methodology
and frequency currently recommended in NCDENR Efficient Metering
Recommendations Report, which can be found at
http://www.ncwater.org/drought/Efficient_Metering.pdf and/or use current industry
practices as specified by the AWWA.
Develop and perform a proactive meter-testing program and repair identified
meters.
When meters are accurate but customer-side leaks exist, develop a protocol to
notify customers. An option would be to repair leaks on the customer’s side of the
meter or to provide guidance to customers on how to find leaks.

Schedule

To accomplish this BMP, the utility should do the following:

The utility should develop procedures for implementation of this BMP within the
first twelve months. The procedures should include annual or more frequent
benchmarks for measuring implementation.
The program participant should consider procedures for and maintain a proactive
Leak Detection and Repair Program (See, System Water Audit and Water Loss
Abatement BMP) within the first twelve months.

Scope

To accomplish this BMP, the utility should do the following:

Develop and implement a metering program based on current North Carolina
standards, which can be found at
http://www.ncwater.org/drought/Efficient_Metering.pdf and/or AWWA practices
January 15, 2013 19
and standards.
Produce a regular schedule for the utility meter repair and replacement program
based upon total water use and the consumption rates of utility accounts.
Effectively reduce apparent water losses though implementation of the meter
replacement and repair programs.

Documentation

To track the progress of this BMP, the utility should gather the following documentation:

A copy of meter installation guidelines based upon customer usage levels.
A copy of the meter repair and replacement policy.
Records of number and size of meters repaired annually.
Report on the method used to determine meter replacement and testing intervals
for each meter size.
Estimate of water savings achieved through meter replacement and repair
program.

Determination of Water Savings

Every year, the utility should estimate its annual water savings from the BMP. Savings
can be estimated based upon a statistical sample analyzed as part of the meter-testing
program. Water savings can also be realized through application of the water audit. As
the percent meter error decreases through program enhancements, there should also
be an associated decrease in apparent water loss shown in the audit. The utility should
project potential savings into future years and also include water savings targets and
goals in their projections.

Cost-Effectiveness

Capital costs to the utility in implementing this BMP may include the costs to install new
meters and retrofit older ones, as well as one-time or periodic costs such as the
purchase of meter testing and calibration equipment. A replacement meter can cost
from as little as $50 for a residential meter to several thousand for larger compound
meters. Meter testing and repair can be done by utility staff or by contractors. Smaller
utilities could consider sharing testing facilities. A typical residential meter test can be
completed at a cost of between $15 and $50. Administrative costs may exist for
additional tracking and monitoring of meter replacements.

For comments or questions regarding the Metering BMP, please contact the water
efficiency specialist of the Water Supply Planning Branch at 919-707-9021.

References

Water Loss Control Manual, Julian Thornton, McGraw-Hill, 2002.
M6 Water Meters – Selection, Installation, Testing and Maintenance, AWWA 4th
January 15, 2013 20
Edition, 1999.
Applying Worldwide BMPs in Water Loss Control, AWWA Water Loss Control
Committee, Journal AWWA, August 2003.
Recommendations for Efficient Metering of Water Use by Local Governments
and Large Community Water Systems
http://www.ncwater.org/drought/Efficient_Metering.pdf.
NC DENR-DWR Public Water Supply
http://www.ncwater.org/pws/srf/Pages/dwsrf_program.htm.

Case Study for Metering and Sub-metering

Brunswick County Utilities, North Carolina

Background

Brunswick County Utilities is located on the southeastern coast of North Carolina and
serves a year-round population of 108,071 people based upon the 2010 Census and a
seasonal population of 195,600 people. In 2011, the utility replaced 7,000 meters out of
a total of 34,041 metered residential connections.

In 1999, Brunswick County had 10,249 retail water customers. With the explosive
growth that has occurred in Brunswick County, the acquisition of one private water
system, and assumption of operational responsibility and ownership of three municipal
systems, the county has added approximately 24,000 customers to the water system in
13 years.

Brunswick County is the sixth largest county in terms of area in the state and provides
retail service throughout the county. Due to the size of the county and complexity of
reading each meter on a monthly basis, the county evaluated methods to remotely read
its water meters. After a careful evaluation of all the alternatives, the county decided to
implement an Advanced Meter Infrastructure (AMI)2 meter reading system. With the AMI
2 Due to advancements in technology, systems such as Advanced Meter Reading (AMR) and
Advanced Meter Infrastructure (AMI) are now available in the utilities industry. The foundational
premise upon which AMR and AMI systems work is the provision of greater efficiency and accuracy in
resource accountability. AMR systems can be used to electronically record metered water usage,
and transmit the data to a central location for billing and other operational uses. AMR systems
provide for a reduction in labor costs, and eliminate operator error in reading and processing water
usage data. As a result, application of AMR systems can also reduce apparent water loss. AMI
systems have the capability to provide greater flexibility to the utility. These systems can record
metered water usage and report the data in near real-time occurrence intervals. AMI systems also
provides the utility with the option to remotely send instructions to customer meters such as
disconnect/connect or upgrade firmware, and interface with data warehousing systems that store and
manage collected data. The communication and to interface capabilities that AMI systems provide
allows systems to timely and accurately manage water resources which reduces costs on the supply
side, and increases efficiency and revenue on the demand side.

January 15, 2013 21
meter reading system, all meters can be read at one central location. The county
selected a vendor to supply the AMI system and decided to use its own crews to install
the meters during a seven-year period. The replacement of the meters has been taking
place for the last three years and will continue for several more years. A full-time in-
house team of six staff members spends five days a week replacing meters.

One of the major advantages of the AMI meter reading system is its ability to detect
leaks in a customer’s system. Since the meters transmit readings back to the central
office, constant usage through normal low-flow periods can be detected. The AMI meter
reading system has software that will print a daily list of customers with possible leaks.
This allows the billing supervisor to flag possible leaks and contact the customer to alert
them about the potential problem.

The capital cost of the project is $8,733,076 and will be funded during a period of years.
Since the meter change-out is new and a new billing system is being used for the first
time this year, no calculations of revenue saving have been made thus far.

Depending on the type of construction, the county allows developers of multi-family
projects, including apartment and condominiums, to install either a gang meter
assembly, where one meter serves each unit; or a master meter, where one meter
serves all of the units. When a master meter is installed, the property owner or Property
Owners’ Association is responsible for the water charges. When a gang meter is
installed, the property owner or renter of each unit is responsible for his or her usage.

January 15, 2013 22
Retrofitting Residential Fixtures – Showerhead, Aerator and Toilet
Flapper Programs

Background

The typical U.S. family of four uses 280 gallons of water per day. In North Carolina, 80
percent is indoor water use (AWWA website). The average indoor use in a home with
water efficient fixtures and appliances is approximately 35 percent less than without
these fixtures (Vickers, 2001). This substantial savings makes residential indoor water
efficiency an important component to consider in a comprehensive water efficiency plan.
Residential indoor water efficiency programs have many aspects, with varying degrees
of cost and water savings outlined in this best management practice. They include:

Residential showerhead, aerator and toilet flapper retrofit programs;
Residential toilet replacement programs; and
Residential clothes washer incentive programs.

Applicability
A showerhead, aerator and toilet flapper retrofit program seeks to replace older,
inefficient showerheads, aerators and toilet flappers with high quality, low-flow devices.
These can either be installed directly by the utility, a contractor for the utility or by the
resident or housing management directly.

This BMP is intended for a water system (“utility”) that has at least 20 percent of the
homes and apartment units it serves constructed prior to 1995, and for which there has
not been an active retrofit program for efficient showerheads and aerators. This BMP is
often implemented in conjunction with the Residential Ultra Low-flow Toilet
Replacement BMP.

Description
Plumbing retrofits usually include showerheads and kitchen and bathroom faucet
aerators, but may include toilet flappers as well. Four types of high quality, low-flow
devices can be installed under this program: showerheads rated at 2.5 gallons per
minute (gpm) or less, kitchen faucet aerators of 2.2 gpm or less, bathroom faucet
aerators of 1.5 gpm or less, and if included, toilet flappers that flush the toilet at the
designed flush volume for that toilet model.

Studies have shown that many 1.6 gallons per flush (gpf) toilets that have been installed
are flushing at more than 1.6 gpf. If the utility decides to do a direct install of the low-
flow devices, the flush volume of the 1.6 gpf should be checked and, if needed, adjusted
to restore the flush volume to 1.6 gpf. If after the water level in the tank is adjusted and
the flush volume is still well above the 1.6 gpf, it is likely that the toilet originally had an
January 15, 2013 23
early closure flapper. Using the model number on the inside of the toilet tank, determine
which flapper is required. Replace the flapper or provide the customer with the
replacement information for the flapper.

Implementation

1. The utility should identify the number of single-family (SF) and multi-family (MF)
residences constructed prior to 1995. If there is no data of SF homes existing at the
end of 1994 readily available, census data can be used. For the most accurate
estimate of SF and MF residents, census data from 1990 and 2000, which includes
the number of housing units by type, should be used. This data can be used to
estimate SF units at the end of 1994, assuming linear growth.
2. Develop a plan for disseminating the retrofit kits, either by directly installing the
plumbing devices in single-family homes and multi-family residential facilities, by
providing the kits for installation with follow-up inspections, or by distribution directly
to customers with no follow-up.
3. If doing a direct install program, include a program to restore the flush volume of 1.6
gpf toilets to the design flush volume, if feasible.
4. After determining the potential number of participants, begin distribution to
customers. See Table 1: Distribution Methods, Potential Participation Rates, and
Approximate Costs for Plumbing Fixtures for more information on various aspects of
different distribution methods.

To estimate the number of residences constructed prior to 1995

(# 2000 SF - # 1990 SF x 40%) + (# 1990 SF) = estimate of end of 1994 SF or
detached units

Where # 2000 SF: Number of Single Family Homes or detached units in the 2000 Census data

Where # 1990 SF: Number of Single Family Homes or detached units in the 1990 Census data

The 40% assumes linear growth at 10 percent per year for four years.

A similar calculation can be done for multi-family residences, replacing SF with MF or attached units.

Source: Texas Water Development Board Report 362, Water Conservation Best Management
Practices Guide, November 2004.

January 15, 2013 24
Kit Distribution Method* Description Pros Cons Potential Customer †
Participation Rates
Approximate Cost ‡
of Program Per
Household
Door to Door Canvass Retrofit kits are delivered directly
to households for installation by
residents. Follow-up canvassing by
trained technicians encourages or
assists residents with installation.
High participation rates
reported by targeted customers
who respond to telephone
surveys
Discrepancy between customer-
reported installation rates; not all
customers who receive a kit can
be certain to install it.
50-75% $13-$20
Direct Installation Trained technicians are hired to
install fixtures directly in homes,
helping to ensure that the devices
are installed correctly and not
wasted. This method is often
combined with other indoor and
outdoor water-use audit.
Perhaps the most reliable
installation technique for
achieving water savings with
retrofit devices because it is
verified by installers; particularly
effective for multifamily
dwellings where users may not
be motivated to install devices
themselves
Usually the most expensive
installation method.
40-60% $17-$30
Mass Mailing Kits are mailed directly to all
customers or targeted customers
for installation by residents.
Low-cost delivery method gets
kit directly to customers who
return cards requesting mail-out
kit.
No direct contact with customer
installation unless they request
help of information; not all
customers who receive a kit can
be certain to install it.
15-60% $10-$15
Depot Pickup Customers are notified of depot
locations, such as public buildings,
libraries, and schools, where they
can pick up the free kits.
Low administrative costs and
responsibility
May attract only customers who
are motivated to pick up a kit; it
cannot be assumed that all
customers who pick up kits will
install the devices.
5-40% $8-$13
Rebate Utility provides rebates to
customers who install a low-
volume showerhead (and possibly
other devices or fixtures).
Reward for customers who
install conservation devices
May attract only customers who
are motivated to install devices;
rebate application process may
be time-consuming and
expensive for both program
sponsor and customer without
significant water savings if
participation rate is low.
5-30% $15-$20
Kit Requests Water utility or sponsoring agency
offers kits to customers who
request them. Kits can be
customized for residents’ needs.
Minimal program design,
management, and
administrative responsibilities
for program sponsor.
Not all customers who request a
kit can be certain to install it.
Verifying installation is difficult.
Poor $7-$12
Table 1: Distribution Methods, Potential Participation Rates, and Approximate Costs for Plumbing Retrofit Kit Programs
* Assumes each delivery method provides the same type of kit: two toilet displacement devices, two 2.5 gpm showerheads, two faucet aerators, toilet leak-detection tablets, and water
conservation information booklet.
† Range shown is possible but not certain depending on a particular program’s design, implementation, and targeted base.
‡ Includes approximate cost of kit and delivery method; actual costs vary according to unit price per kit and program-specific costs for promotion, contract labor, postage, printing,
surveys, and other program specifics.

Source: Handbook of Water Use and Conservation, Vickers, 2001, page 99.

January 15, 2013 25

Schedule
Based on the approach(es) selected, the following schedule should be followed:

1. Direct Install and Kit Distribution Approach
In the first 12 months: Plan a program including stakeholder meetings as needed.
Locate plumbing contractors or retrofit companies who may be interested in
bidding on the program. Determine a plan for educating homeowners, apartment
owners and managers, plumbers and realtors about this program. Solicit bids
and initiate the program. Include inspections by utility personnel, or a third party,
to verify the plumbing devices installation. Each year, 10 percent of eligible
single-family homes and 10 percent of eligible multi-family units should be
retrofitted to maintain program development. Continue the program until 50
percent of eligible single-family houses and multi-family units are retrofitted.

2. Direct Giveaway of Kits by Customer Request, Targeted Giveaways and/or
General Public Outreach Events.

In the first 12 months: Plan a program to target general distribution of the retrofit
kits to neighborhoods of single-family and multi-family residences that were built
before 1995. For information on strategies for retrofit kit distribution directly to
customers, see Table 1. For years 2-5, continue with the distribution of the retrofit
kits.

Scope
To accomplish this BMP, the utility should:

Develop and implement a plan to distribute or directly install high quality,
efficient plumbing devices to single-family and multi-family units constructed
prior to 1995.
Implement the distribution or installation programs to achieve retrofits on at
least 10 percent of eligible single-family units and 10 percent of eligible multi-
family units each year. Utilities with more than 200,000 connections should
retrofit at least 20,000 eligible homes and units each year.
Within five years of implementing this program, retrofit at least 50 percent of
eligible single-family houses and multi-family units with the specified devices.
For utilities with more than 200,000 connections, at least 100,000 eligible
homes and units should be retrofitted within five years.

Documentation
To track the progress of this BMP, the utility should gather:

January 15, 2013 26

An inventory of the number of single-family and multi-family buildings prior to
1995, which are targeted by this BMP.
For each year of implementation, maintain records of the number of single-family
and multi-family units retrofitted;
For each year of implementation, maintain records of the number of
showerheads, bathroom faucet aerators, kitchen faucet aerators and toilet
flappers (by category) installed in single-family and multi-family units;
If kits are given directly to customers without follow-up installation verification, the
utility should maintain records of the number and type of plumbing devices
distributed.

Determination of Water Savings

Notes:
(*) The actual device life span is five to 15 years; the savings are permanent because inefficient
equipment can no longer be purchased. In 1992, Congress passed the Energy Policy Act of 1992 which,
among other things, mandated maximum flow rates for toilets, urinals, showerheads, and faucets.
Device
Initial Savings
(gallons per day or gpd
per device
Device Life Span
(Savings)

Showerheads and Faucet Aerators

5.5 gpd

Permanent*

Toilet Flapper

Up to 12.8 gpd **

Five years
Calculate water savings as follows:

Water Savings = Number of Devices Retrofitted x Device Savings

Device Savings may be found in Table 2: Retrofit Device Savings Table

Number of Devices Retrofitted = 1.0 x Number Devices Installed (when using Direct
Installation Approach) OR

Number of Devices Retrofitted = 0.3 x Number of Devices Installed (when using Kit
Distribution Directly to the Customer Approach)
Source: Texas Water Development Board Report 362, Water Conservation Best Management
Practices Guide, November 2004.
Table 2: Retrofit Device Savings Table

January 15, 2013 27

(**) Residential End Use Study 5 average for toilet leakage was 9.5 gpcd, which can be translated to gpd
per toilet by multiplying by average household size (2.7) and dividing by average number of bathrooms
(2) Per single-family house. The utility should try to estimate actual savings based on measured leakage
rate. (9.5gpcd x 2.7) / 2=12.8 gpd per toilet
Source: Texas Water Development Board Report 362, Water Conservation Best Management Practices
Guide, November 2004.

The showerheads and faucet aerators should result in 5.5 gallons per day savings for
between five years and 15 years. If the toilet flapper program is also used, then
approximately up to 12.8 gallons per day could be saved for around five years.

Cost-Effectiveness
The significant expenses associated with this BMP will be the costs of purchasing the
devices, the distribution costs and administrative costs. Usually contractors have been
hired to conduct kit installation and door-to-door distribution programs. Labor costs are
usually bid based on a unit cost per showerhead, aerator or flapper installed or per kit
delivered. Labor costs exist for utility staff to bid the project, oversee the contractor, and
conduct spot inspections of the contractors’ work.

Utilities often have programs where customers pick up the kits. Labor costs range from
$10 to $30 per single-family customer for showerhead and aerator installation and an
additional $5 to $20 per toilet replacement. Multi-family residences will usually have
their own staff for installation.

High-quality showerheads purchased in bulk are available starting at less than $2 each
with aerators costing less than $1 each. Flappers range in cost from $3 to $10. When
choosing between models of equipment that have varying degrees of water efficiency,
only the incremental cost of the more water efficient device should be compared with
the benefits to the utility in order to determine the maximum water efficiency benefit.

Administration of the program can be conducted by utility staff or contracted out.
Marketing and outreach costs may range from $5 to $10 per single-family customer.
Administrative and overhead costs range from 10 to 20 percent of labor costs. If this
program is combined with the Residential Ultra Low-flow Toilet Replacement BMP,
there should be efficiencies in these costs. If the distribution of kits through public
outreach events is the sole option undertaken, then only the costs of the devices, staff
time, and cost of attending the event would be incurred.

For inclusive overall costs per household, please see Table 1: Distribution Methods,
Potential Participation Rates, and Approximate Costs for Plumbing Fixtures on Pg. 24.
For comments or questions regarding the Retrofitting Residential Fixtures BMP, please
contact the water efficiency specialist of the Water Supply Planning Branch at 919-707-
9009.

January 15, 2013 28

References

Handbook of Water Use and Conservation, Amy Vickers, Waterplow Press, May
2001.
DrinkTap.Org, AWWA – Water Use Statistics
http://www.drinktap.org/consumerdnn/Home/WaterInformation/Conservation/Wat
erUseStatistics/tabid/85/Default.aspx.
Tampa Bay Water Potable Water Conservation BMPs, January 2010.
Texas Water Development Board Report 362, Water Conservation Best
Management Practices Guide, November 2004.
Legislative Report – Recommendations for Water Efficiency Standards for Water
Using Fixtures in Residential and Commercial Buildings, NCDENR, January
2009. http://portal.ncdenr.org/c/document_library/get_file?uuid=5cddf8ca-cf3d-
41f3-a84f-6e4985ba1f43&groupId=38322.

Case Study for Retrofitting Residential Fixtures Program

The average indoor use in a home with water efficient fixtures and appliances is
approximately 35 percent less than without these fixtures (Vickers, 2001). Many water
systems choose to work with residential customers as part of their water reduction
efforts to bring these water savings to the residents and the water system. Methods for
delivering these services, however, vary depending on the staff and funds available.

Direct Installation – Raleigh, North Carolina

In 2007 and 2008, Raleigh, N.C. experienced a drought of record. The city responded
by developing a conservation plan that included retrofitting residential fixtures such as
showerheads, as well as offering rebates for the purchase of High Efficiency Toilets
(HETs). As part of that program, the city recognized that many low-income families were
living in rented, water-inefficient housing. Because traditional rebate programs do not
take into account the burden that overhead costs have on low-income communities and
renters, a different approach was needed to reach those audiences.

The City of Raleigh Public Utilities Department partnered with the Raleigh Housing
Authority and AmeriCorps VISTA members to design a program that would tackle the
issues of these community members, while creating a high return on investment (ROI)
for the participants. This comprehensive program included:

Replacing 5,000 3.5 gallon per flush – 5 gallon per flush toilets with new
WaterSense labeled ones;
Replacing 1,000 old showerheads with new 1.6 gallons per minute ones;

January 15, 2013 29

Constructing a water efficiency checkup program with audits and instructor
training;
Engineering a WaterWise Landscaping & Gardening program with a
demonstration garden;
Promoting annual water savings events;
Compiling brochures and educational presentations.
The program was highly effective. Many, if not all, water bills showed a significant
decrease in water consumption, a few by as much as 50 percent. All the public events
were well-attended, and the garden still serves as an educational tool for water
conservation and efficiency. For more information on this unique partnership or other
aspects of their program, please contact the Water Conservation & Efficiency Specialist
with the City of Raleigh at 919-996-3468.

General Distribution – Greensboro, North Carolina

As early as 1993, Greensboro recognized growing water supply vulnerabilities and an
increasing need for enhanced water efficiency. As part of a comprehensive plan,
Greensboro’s Water Resources Department partnered with organizations to distribute
free water saving showerheads, faucet aerators and toilet flappers to Greensboro
customers at all Greensboro libraries, recreation centers, the Farmer’s Curb Market and
Water Customer Service. From 1996 to 2003, more than 165,000 total pieces of
hardware were distributed. Customer rebates of $4 were credited to 1,488 Greensboro
water customers, who purchased closing flappers between 1995 and 1997. For more
information about this method of distribution or other aspects of this program, please
contact the Water Education Program Coordinator at 336-373-4601.

January 15, 2013 30

Retrofitting Residential Fixtures – Ultra Low Flow Toilet Programs

Applicability

Water use by toilets is typically the largest source of indoor residential water demand,
averaging 26.7 percent of indoor water use (Vickers, 2001). The residential toilet
replacement program seeks to replace higher flush volume toilets with ultra-low flush
toilets that use 1.6 gallons per flush or less in order to decrease water use. These toilets
can either be installed directly by the utility, a contractor for the utility, or by the resident
or housing management.

This BMP is intended for a water system (“utility”) that has at least 20 percent of its
homes and apartment units in its service area constructed prior to 1995, and for which
there has not been an active retrofit program to replace high flush volume toilets with
1.6 gallons per flush toilets, or Ultra Low Flow Toilets (ULFT). This BMP is often
implemented in conjunction with the Retrofitting Residential Fixtures – Showerhead,
Aerator, and Toilet Flapper Program BMP.

Description

ULFT replacement programs are an effective method of achieving water efficiency in
the residential sector. ULFTs are toilets that use 1.6 gallons per flush (gpf) or less
including dual flush toilets that can flush either 1.6 gpf or 0.8 to 1 gpf. Federal
requirements prohibit installation of new toilets using more than 1.6 gpf. Under this
BMP, the utility would develop and implement a program to replace existing toilets using
3.5 gpf or more in single-family and multi-family residences.

According to Vickers, successful toilet rebate and replacement programs must include:

Identification of potential participants, potential water savings, program benefits
and costs, schedule, and program budget and human resource requirements.
Program outreach and marketing strategies targeted to specific customer groups
and subgroups.
Attractive financial incentives – a rebate, water bill credit, or fixture giveaway, for
example.
Installation guidance (e.g. printed instructions, call-in technical assistance,
referrals to certified plumbers) or assistance (e.g. direct installation service,
particularly for the elderly and disabled).
Purchasing information about 1.6 gpf toilets, such as a description of types
available for various applications, along with the names and model numbers of
fixtures reported to be reliable in consumer surveys and technical studies.
Rebate application forms.
A convenient inspection process.
Timely rebate processing and payment.
Evaluation and reporting of program results.
(Source: Water Use and Conservation, Amy Vickers, 2001, p. 42.)

January 15, 2013 31

Implementation

The ULFT replacement programs should offer free toilets or rebates for toilet
replacement. If offering rebates, the utility needs to provide a list of eligible toilet models
(i.e. WaterSense models). Incentives and promotion of the program should be sufficient
to retrofit at least five percent of eligible homes per year. In addition, ULFT models that
are used in retrofit programs should maintain 2 gpf or less, regardless of what
replacement flapper is used.

Identify the number of single-family and multi-family residences constructed prior to
1995. If there is no data of single-family homes existing at the end of 1994 readily
available, U.S. Census data can be used. For the most accurate estimate of single-
family and multi-family residents, census data from 1990 and 2000, which includes the
number of housing units by type, can be used. This data can be used to estimate single-
family units at the end of 1994, assuming linear growth. Refer to calculation box in the
Retrofitting Residential Fixtures - Showerhead, Aerator and Toilet Flapper Programs
BMP to estimate residences.

Schedule

In the first 12 months: Plan a program including customer involvement as needed.
Identify plumbing contractors or retrofit companies who may be interested in bidding on
this program if applicable. Develop a plan for educating homeowners, apartment owners
and managers, plumbers and realtors about the program. Solicit bids if using outside
contractors and initiate the program. Include inspections by utility personnel or a third
party to verify installation. In order to effectively implement this program, five percent of
eligible single-family homes and five percent of eligible multi-family units should be
retrofitted every year.

In the second year and after: Each year, target five percent of identified eligible single-
family homes and multi-family units to be retrofitted. Continue the program until 50
percent of eligible single-family homes and multi-family units are retrofitted in order to
achieve reasonable water efficiency benefits.

Scope

Annually, the ULFT replacement program should replace at least five percent of the
estimated number of eligible toilets within the service area.

In order to accomplish this BMP, the utility should:

Develop and implement a plan to distribute or directly install high quality ULFTs
to eligible single-family and multi-family units;
Implement the distribution or installation programs to achieve ULFT retrofits on at
least five percent of eligible single-family units and five percent of the multi-family

January 15, 2013 32

units each year. Utilities with more than 100,000 eligible connections should
retrofit at least 5,000 eligible homes and units each year.
Within 10 years of implementing the program, retrofit at least 50 percent of
eligible single-family homes and multi-family units with ULFTs. For utilities with
more than 100,000 eligible connections, at least 50,000 eligible homes and units
should be retrofitted within 10 years.

Documentation

To track this BMP, the utility should collect the following information:

The eligible number of single-family residences and multi-family units in the
service area.
The average number of toilets per single-family residence; the average number
of toilets per multi-family unit.
The average persons per household for single-family residences; the average
persons per household for multi-family units.
The number of ULFT installations credited to the replacement program, by year,
including brand and model of toilets installed.
A description of the ULFT replacement program, if applicable.
The estimated cost per ULFT replacement, if applicable.
The estimated water savings per ULFT replacement.

Determination of Water Savings

[Type a quote from the document or the summary of an interesting point. You can position the
text box anywhere in the document. Use the Drawing Tools tab to change the formatting of the
pull quote text box.]

Average Daily Savings = SF x ((10.5 x Hs)/Ts) + MF x ((10.5 xHm)/Tm)

SF= Number of SF toilets retrofitted
MF = Number of MF toilets retrofitted
Hs = Number of people in average single family household
Ts = Average number of toilets per SF house
Tm = Average number of toilet per MF unit

For Single-family homes:
10.5 = gallons saved per capita per day if all toilets replaced in each household
Dual flush ULFTs increases savings by 25 percent

For Multi-Family Units:
10.5 = gallons saved per capita per day if all toilets replaced in each unit
Dual flush ULFTs increase savings by 25 percent

January 15, 2013 33

Cost-effectiveness

The rebates to the customers for installation of ULFT toilets are the most significant
costs of this program. If the rebate cost for the toilet is set too low, only those customers
already planning to retrofit will do so. If the rebate is set too high, the utility will be
overpaying for customers to retrofit. Most utilities have found a rebate to work effectively
if set between $70 and $100. Some utilities find it is more effective to provide the toilets
free of charge to their customers. Toilets can be purchased from wholesalers by the
truckload for $50 to $70. There may be additional costs for storage and distribution of
the toilets.

Administration of the program can be conducted by utility staff or contracted out. There
will be labor costs for application processing and inspections to verify installation, to
determine if the tank is properly set and to discourage fraud. Inspection costs will be
lower per toilet per multi-family retrofit due to the higher volume of toilets per
application, but generally, labor costs range from $10 to $40 per toilet. Marketing and
outreach range from $5 to $20 per toilet. Administrative and overhead costs range from
10 percent to 20 percent of labor costs. If this program is combined with the
showerhead, aerator, and flapper retrofit BMP, there will be efficiencies in these costs.

To calculate the total cost per unit, total all costs and divide by the number of units
being retrofitted.

For comments or questions regarding the Retrofitting Residential Ultra Low Flow Toilets
BMP, please contact the water efficiency specialist of the Water Supply Planning
Branch at 919-707-9009.

References:
Handbook of Water Use and Conservation, Amy Vickers, Waterplow Press, May
2001.
Tampa Bay Water Potable Water Conservation BMPs, January 2010.
Texas Water Development Board Report 362, Water Conservation Best
Management Practices Guide, November 2004.

January 15, 2013 34

Retrofitting Residential Equipment – Clothes Washers

Applicability

A typical family of four washes a little more than one load of laundry per day, which
accounts for approximately 22 percent of residential indoor water use (Vickers, 2001).
While the average clothes washer in the United States uses 41 gallons of water per
load, the new high efficiency clothes washers use between 11 and 25 gallons per load.
A Residential Clothes Washer Incentive Program BMP would encourage customers to
purchase water efficient clothes washers through a direct discount at the time of
purchase or a rebate after the purchase. This BMP can be implemented by any Water
User Group (“utility”) that has residential customers.

Description

Under this BMP, the utility would develop and implement an incentive program to
encourage customers to purchase efficient clothes washers. Water efficiency for clothes
washers is best described by using water factor (WF) terminology. WF is calculated by
dividing the gallons of water used to wash a full load of clothes by the capacity of the
washer tub in cubic feet. As of Jan. 1, 2011, the U.S. Department of Energy requires
that all Energy Star washing machines have a maximum WF of 6.0, which is the highest
ratio that the Consortium of Energy Efficiency (CEE) will consider as an efficient model
of washing machine. For more information, go to
http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=11628.

For this BMP to be the most effective, the incentive offered should bridge at least one-
half of the gap in the price difference between the efficient machines and conventional
ones. As with any incentive program, the amount of the incentive will impact the
participation in the program. Fully featured inefficient machines cost approximately
$400, while the least expensive efficient machines cost between $600 and about $1000.
For the least expensive machines, the price difference is around $200. The price
difference is the most important factor of the buying decision for low-income customers.
In addition, low-to-moderate income customers would be more likely to purchase the
efficient washer if they received the incentive in the form of a discount at the time of
purchase, rather than waiting between four weeks and six weeks for a rebate.

A clothes washer incentive program can be more effective if offered in conjunction with
local gas and/or electric utilities because the incentive can be increased and the
marketing reach should expand. The energy savings is a result of using more efficient
motors, less energy required for heating hot water because less hot water is used, and
a shorter drying time because the spin cycle on efficient washers remove more water.

Incentives should only be given to those customers who install washers that qualify as
water efficient. A list of efficient washers is maintained and regularly updated by the
Consortium for Energy Efficiency (CEE); please see CEE website at
http://www.cee1.org/. CEE, a nonprofit public benefits corporation, develops national

January 15, 2013 35

initiatives to promote the manufacture and purchase of energy-efficient products and
services. The U.S. Department of Energy and U.S. Environmental Protection Agency
support CEE through active participation and funding. The CEE has ratings based on
water and energy efficiency. This list has been used by many utilities as the source of
qualifying washers to receive an incentive.

The utility may want to give higher rebates or discounts to customers purchasing the
most WF efficient CEE Tier III models, slightly less to those purchasing Tier II models,
and the lowest incentives to those purchasing Tier I models.

Implementation

Develop and implement a clothes washer incentive program designed to increase the
market share of efficient clothes washers to 20 percent of the installed units by the
second year of implementation. The program should be offered to customers in single-
family homes and in multi-family units that have in-unit washer connections. Approach
the local gas and/or electric utility to join in a partnership to implement the program.
Organize stakeholder meetings. Develop a marketing plan for educating customers,
appliance stores, and realtors about this program. Initiate the program.

Schedule

The following schedule should:

Plan, implement and market an efficient clothes washer incentive program within
six months of adopting this BMP.
Continue marketing efforts to achieve at least 20 percent market penetration for
efficient washers by the end of the second year after implementing this BMP.

Scope

In order to accomplish this BMP, the utility should:

Develop and implement a plan to offer incentives for the purchase of efficient
clothes washers.
Within two years of implementing this program, increase the market share of
efficient clothes washers to at least 20 percent of local clothes washer sales.

Documentation
To track the effectiveness of this BMP, the utility should:

Calculate the number of single-family homes and multi-family units with in-unit
washer connections.

January 15, 2013 36

Calculate the average number of persons per household for single-family and
multi-family residences.
Calculate the number of efficient clothes washer incentives issued each year, by
year, including brand, model and water factor of each efficient washer.
Estimate water savings per efficient washer.
Average total washer sales per year in the service area.

Determination of Water Savings

H. Cost Effectiveness Considerations

The rebates to the customers for installation of water efficient clothes washers are the
most significant costs of this program. If the rebate cost for the clothes washer is set too
low, only those customers already planning to buy an efficient washer will do so. If the
rebate is set to high, the utility will be overpaying the customer to retrofit. Most utilities
that implement this BMP have found a rebate to work effectively if set between $50 and
$100 per efficient clothes washer. If partnering with an energy utility, the gas or electric
utility rebate could add an additional $50 to $100. Some utilities have started offering
tiered rebates based on the efficiency of the washer; the highest rebates are offered for
the most-efficient washers in the lowest water factor tier.

Administration of the program can be conducted by utility staff or contracted out.
Washer inspections are sometimes performed in order to verify installation and
discourage fraud. Labor costs range from $15 to $35 per clothes washer. Marketing and
outreach costs range from $5 to $15 per clothes washer. Administrative and overhead
costs range from 10 percent to 20 percent of labor costs.

To calculate the total cost per unit, total all costs and divide by the number of units
being retrofitted.

Savings = EWS x 5.6 x Hs + EWM x 5.6 x Hm

EWS = Number of single-family efficient washer incentives
EWM = Number of in-unit multi-family washer incentives
Hs = Number of people in average single-family household
Hm = Number of people in average multi-family household

Or

Single-Family: 5.6 = gallons saved per capita per day

Multi-Family In-Unit: 5.6 = gallons saved per capita per day

January 15, 2013 37

For comments or questions regarding the Retrofitting Residential Clothes Washers
BMP, please contact the water efficiency specialist of the Water Supply Planning
Branch at 919-707-9009.

References:
The Department of Energy:
http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=11628)
Handbook of Water Use and Conservation, Amy Vickers, Waterplow Press,
May 2001.
Texas Water Development Board Report 362, Water Conservation Best
Management Practices Guide, November 2004.

January 15, 2013 38

Public Information Programs

Applicability

Public information programs can be an effective outreach tool to inform customers
about water efficiency and ways they can conserve water. This BMP should be
incorporated into all other BMPs as a way to reach your targeted audience regarding
other water efficiency or water conservation measures the water system is undertaking.
Outreach opportunities include direct interaction with the public, water use histories on
bills, and a water efficiency/conservation webpage on the system’s website. This BMP
is intended for all water systems (“utility”) with residential customers.

Description

Under this BMP, utilities would implement a public information program to promote
water efficiency measures, including other BMPs being implemented and water
efficiency-related benefits. The program should include various aspects of the following:

Use the customers’ bills as outreach tools.
o Water use for the last billing period compared to the same period the year
before, including a bar graph.
o Use the bill to advertise any other programs (e.g. rebate or incentive
programs) or restrictions underway.
o Direct people to your website for more water efficiency information, if you
include the website in a prominent place on the bill.

Directly interact with the public.
o Provide speakers for community groups.
o Have booths with staff and exhibits at community festivals and events.
o Co-sponsor adult education and training programs on water efficiency and
conservation topics (e.g. water efficient landscaping, making your own rain
barrel, and how to do your own home water audit). These programs could
be done in conjunction with local gardening clubs, soil and water
conservation districts, homeowners’ associations and similar
organizations.

Utility In-House Media
o Maintain a regularly updated water efficiency webpage as part of the
utility’s website. Include any water efficiency rebate or incentive programs,
watering restrictions, and links for more information on water efficiency
topics.
o Record “on hold” messages with conservation information for utility or
municipal phone lines.
o Produce brochures, handouts and giveaways that can be distributed at
public events and at public buildings.

January 15, 2013 39

Traditional/Social Media
o Produce television and radio spots for larger water efficiency or
conservation measures the utility is undertaking.
o Develop and maintain a regularly updated water efficiency Facebook
page, MySpace page, Twitter feed, postings to YouTube, etc.

Implementation

Although utilities will choose to implement different components of this BMP,
implementation should consist of at least the following:

Determine if the current billing system allows for water use history for the last
billing period compared to the same period the previous year and whether it can
add graphs. Determine if bills can be updated with other outreach information. If
this information cannot be added to the bill, determine if a new billing system may
be required. Determine if it is fiscally viable to implement this BMP.
Create a program for direct interaction with the general public. At a minimum, this
should include speaking with community groups and exhibiting at community
festivals.
Create and maintain a regularly updated water efficiency and conservation
webpage as part of the utility’s website.
Create a plan for disseminating information about drought status accompanied
by appropriate conservation and efficiency messages.
Produce brochures, handouts and giveaways that can be distributed at public
events and at public buildings.
Schedule

Research if the current billing system allows for water use history for the last
billing period compared to the same period last year and whether it can add
graphs. Research if bills can be updated with other outreach information. If the
bills cannot be altered, research billing options that will allow for these changes.
If there are no fiscal barriers, this change should be completed within the first 12
months.
In the first three months, begin planning your public events. Research local
festivals and inquire about participating. Create a water efficiency display and
publications for these events. Remember to include other BMPs that your water
system is implementing. Contact local organizations about collaborating to
facilitate water efficiency related workshops. Begin public engagement within the
first six months and continue throughout the year.
In the first six months, plan a water efficiency webpage as part of the utility’s
website. Remember to include other BMPs that your water system is
implementing. If necessary, locate contractors who may be interested in bidding
for this project. Within the first 12 months, create and launch the webpage.
Update the webpage at least every three months.

January 15, 2013 40

Within the first six months, determine whether the utility and/or municipal phone
systems have recorded messages or music for phone calls placed on hold. If so,
record several water efficiency messages that play while on hold. Remember to
include other BMPs that the water system is implementing. This project should
be completed within 12 months and updated every three months or sooner if
needed.
Within the first six months, engage in social media outlets such as creation of a
Facebook or MySpace page, sending Twitter feeds or creation of YouTube
videos.

Scope

To accomplish this BMP, the utility should do the following:
If fiscally possible, within 12 months of implementing the program, develop and
implement a plan to make customers’ bills an outreach tool by providing water
use history for the last billing period compared to the same period the previous
year.
Within 12 months of implementing this program, the direct public engagement
aspect should be fully implemented. The utility should strive for at least four
public speaking engagements and/or public events per year.
Within 12 months of implementing this program, the webpage, social media and
recorded messages should be fully implemented. The utility should strive to
update these at least every three months (Some information such as water
status or drought restrictions should be implemented much more often,
especially during drought).
Documentation

Utilities will differ in what aspects of this BMP they implement. To track progress of this
BMP, the utility should gather and have available the following documentation:

Document the research for the billing system, including estimates on replacing
billing software with software that provides water use histories, graphs and
water efficiency information directly on the bill if the current system does not
have the ability to add them.
The number of public speaking engagements that utility staff has attended,
including the estimated number of people in attendance.
The number of public events that utility staff has attended with a display or
exhibit. These should include the estimated number of people in attendance.
A list of brochures and handouts created for or used to provide information to
the general public about water efficiency, water efficiency benefits, other BMPs
that the system is currently undertaking and/or other water efficiency related
topics.
A completed water efficiency webpage and any social media projects, schedule
of past updates and changes made during the updates.

January 15, 2013 41

The number of phone lines that have water efficiency “hold” messages, and the
content of the messages, the schedule of past updates and the content of the
changes.

Determination of Water Savings

Water savings for public information programs are difficult to quantify and therefore
estimated savings are not included in this BMP. This BMP, however, is critical to the
success of the other BMPs undertaken, as it serves as the promotional and educational
portion of those BMPs.

Cost-effectiveness

A true cost-effectiveness analysis cannot be determined without a measure of water
savings. This BMP, however, is an integral part of many best management practices, so
it should be considered foundational to a successful water conservation program. In
addition, by implementing this BMP, the utility will enhance its public image and
increase customer goodwill.

For comments or questions regarding the Public Information Program BMP, please
contact the water efficiency specialist of the Water Supply Planning Branch at 919-707-
9009.

References:

California Urban Water Council, Memorandum of Understanding Regarding
Urban Water Conservation in California, as Amended Sept. 14, 2011.
Texas Water Development Board report 362, Water Conservation Best
Management Practices Guide, November 2004.

Case Studies
Direct Interaction with the General Public

Greensboro, North Carolina

As early as 1993, water supply vulnerabilities in Greensboro increased the city’s need
for a water demand strategy, water supply augmentation, water restrictions and a
comprehensive public educational program. Greensboro created and has maintained a
substantial public education program by using a variety of approaches to educate the
public.

January 15, 2013 42

The Greensboro Water Resources Department disseminates public information in
several ways. To spread the conservation message, they distribute promotional items at
various special events in the community. Several brochures covering topics such as
how to have a WaterWise Home, WaterWise Landscaping and WaterWise Lawn Care
have been created. Customers typically receive public education materials through their
water bills, at presentations, workshops and by visiting the customer service
informational kiosk. The Greensboro contact center provides customers with advice on
how to fix a leaky toilet, report environmental issues such as pollution, flooding and
storm drain blockage. In addition, new customers receive an information packet that
contains various resources.

Multiple awareness campaigns have been produced through the collaborative efforts
established between Greensboro and High Point. The Greensboro Water Resources
Department also collaborates with the North Carolina Cooperative Extension Service in
Guilford County on several projects to address issues affecting the community.
Throughout the year, the cooperative extension service holds Carolina Yards and
Neighborhood Program workshops for residents that deal with issues such as proper
planting techniques, water conservation and protecting water quality. In addition, the
agency manages the rain barrel distribution program the city promotes.

For more information on the Greensboro Water Conservation Program, please see the
following link at http://www.greensboro-nc.gov/index.aspx?page=2259.

Cary, North Carolina

During non-drought times, Cary primarily communicates with residents through its
monthly utility newsletter (BUD), the town’s website, Cary TV 11 Conservation Corner,
and the distribution of brochures at venues such as Earth Day at Spring Daze. Displays,
print ads in the local newspaper, and postcards are used primarily for annual
campaigns, such as Beat the Peak and Fix a Leak Week. In its recent Water
Conservation Survey of 2011, the town asked customers how they would prefer to
receive water conservation information. The customers preferred getting information
through the utility newsletter by a large margin (83.2 percent). Other important sources
were direct mail via postcards (67.5 percent), Cary’s email list service (60.2 percent),
Cary’s website (59.3 percent), Cary News (55.5 percent), and homeowners’
associations (52.5 percent).

In addition to its public outreach, Cary works with local businesses and community
groups to help communicate its water conservation message whenever possible.
Providing information to customers from many sources increases awareness of the
many water conservation programs the town offers. For example, making sure that
plumbers and home improvement stores know about the availability of high-efficiency
rebates or free toilet dye tablets, for example, is an important point of contact for
customers. Providing information at local garden centers and through irrigation
contractors are other opportunities for businesses and water purveyors to work together
to share conservation messages.

January 15, 2013 43

For more information on the Cary Water Conservation Program, go to
http://www.townofcary.org/Departments/Public_Works_and_Utilities/Conservation/Wate
r_Conservation.htm.

Using the Customers’ Bills as Outreach Tools

Durham, North Carolina

The Durham Department of Water Management wanted to be able to show customers
how much water they were using as compared to previous billing cycles. While usage
was shown on each bill (bi-monthly for residential customers), there was no bill-to-bill
point of comparison. When the city converted from the mainframe billing system to the
Enterprise Resource Planning System (ERP) based billing system in January 2009, one
of the major selling points was the ability to provide billing history on the bill itself.
Water management has received numerous compliments from customers for providing
this useful information.

In addition to the usage history, there is a small box just under the usage graph for
newsworthy information. Staff has used the box to announce the implementation of year
round watering restrictions, information about the tiered rate structure and notices of
drought stages. All messaging directs customers to the DurhamSavesWater.org website
for additional information. Used in concert with notification in the Citizens’ Newsletter
and other city-wide public information tools, both the usage graph and the information
box have been received positively by Durham’s customers, providing them the
necessary tools to take ownership of their water usage.

Durham has seen a relatively flat demand during the last few years even with an
increase in customers. City staff gives partial credit to information provided in the
customers’ bills, since it was used as a public outreach tool. The graphs on the water
bill encourage on-going attention to usage and customers pay special attention during
the summer months. Seasonal usage has not spiked as much in the post-drought years
as had been anticipated, thanks in part to the usage graphs and the odd-even watering
schedule. The decreasing number of seasonal watering violations is also a result of
keeping the message in front of customers. Durham attributes the relatively flat demand
to a number of factors, such as best management practices instituted by the city during
the last few years.

For more information on the Durham’s Water Conservation Program, go to
http://www.durhamnc.gov/departments/wm/water_cons.cfm. For an example of
Durham’s water bill with a consumption graph, please see below.

January 15, 2013 44

January 15, 2013 45

School Education and Outreach

Applicability

A school education and outreach program should provide age-appropriate water
efficiency and conservation lessons with background information. In addition, the
lessons should be correlated to the North Carolina Essential Standards. These
programs can be offered as professional development workshops to teachers or as
programs conducted directly with students.

This BMP is intended for a water system (“utility”) that serves schools and or students
as part of its customer base. Before deciding whether this BMP is necessary, review
existing curricula to see if the local school district is already offering water efficiency and
water conservation related curriculum.

Description

School education programs, while not related to an equipment change may result in
short and long-term water savings. Ideally, a school education program should reflect
issues that are age appropriate, hands-on, and local in scope. Any suggestions for
behavior changes should be things that a child in that targeted age range can
accomplish on his or her own in order to create a lasting behavior change and positive
environmental self-efficacy in the child.

A quality water efficiency and water conservation program for schools provides teachers
with materials that contribute to interdisciplinary learning while educating the students
about water efficiency, water conservation and local water resources. There are many
state and national programs that include water efficiency, water conservation and water
audits as part of a comprehensive water education curriculum, including Project WET
(Water Education for Teachers) and the Environmental Protection Agency. Local issues
can be incorporated into these lessons to help create a more locally appropriate
curriculum.

Another option beyond offering a supplemental curriculum is to offer an education
entertainment show for grades 1 through 5. These shows can be popular with teachers
and often do not have the same requirements for material to meet the N.C. Essential
Standards. In addition, the percentage of students that can be reached is often higher
than for adoption of a curriculum.

To evaluate the effectiveness of the education materials, presentation or show, the
utility should use an evaluation tool such as a pre- and post-test, or a survey.

Implementation

Implementation should consist of at least the following:

January 15, 2013 46

Evaluate local, regional, state and national resources available to determine
applicability to the utility’s local water conditions. Consider creating an advisory
committee of local educators to assist in choosing or creating the curriculum.
Provide environmental education professional development for utility staff that
will be working with school education and outreach. For example, workshops
offered through the N.C. Office of Environmental Education and Public Affairs,
such as the Basics of Environmental Education and Methods of Environmental
Education, provide an overview of how to effectively work with various age
groups. Additionally, Project WET workshops offered through the N.C. Division of
Water Resources give the participants activities to use with different audiences.
Implement a school education program to promote water efficiency, water
conservation and water conservation related benefits. Programs include working
with school districts and private schools in the water supplier’s service area to
provide instructional assistance, educational materials, and classroom
presentations that identify urban, agricultural, and environmental issues and
conditions in the local watershed and water service area. When possible,
educational materials should meet the N.C. Essential Standards.

A water oriented curriculum that is focused on conservation and resource issues should
be made available for all grades and should include the following:

Teacher professional development specifically targeted to certain grades is an
effective approach to implementing a lasting water education presence in the
schools. If possible, you should work directly with the school system to set up
free, professional development training on a teacher workday. Correlate the
agenda to the N.C. Essential Standards that the targeted educators teach. When
possible, provide curricula and materials for them to take back to their classroom
that they can implement easily. In addition, periodic follow-up with the teachers to
ask how the utility can help them incorporate water education into their
classrooms will result in greater implementation now and in the future.
Grade appropriate programs and/or materials should be implemented for grades
1 through 5 initially. Alternatively, a presentation or educational show can be
offered for some or all of these grade levels. Some utilities also sponsor day-long
water festivals that incorporate water efficiency, water conservation and other
water resource issues for 5th grade students in a school.
For grades 6 through 8 and high school students, the utility may do one of the
following: distribute grade appropriate materials for science, math, or other
appropriate classes; present assembly type programs; sponsor science
expositions with emphasis on water resources; or implement education programs
with community groups such as Girl and Boy Scouts and 4-H clubs.
The utility can meet this BMP by focusing only on teacher training or direct student
interaction.

In conjunction with the Showerhead, Aerator, and Toilet Flapper BMP, consider
providing a water audit unit as part of the curriculum where the students take flow

January 15, 2013 47

measurements of showerheads and faucet aerators at their homes. If the showerheads
and faucets are higher than current standards, the students can have their parents sign
a request for replacement form to receive an efficient showerhead and faucet aerators
to install with the assistance of their parents. This unit can be successfully implemented
in grade 5.

Schedule

Depending on the program option(s) selected, the following schedule should be
followed:

In the first year, find the appropriate teacher professional development curricula
and materials that meet the needs of both the teachers’ and the utility. You may
also want to meet with your local Soil and Water Conservation Education
coordinator or the Project WET State Coordinator to help facilitate the workshop.
Meet with school administration and ask for help in coordinating the training on a
teacher work day. Trainings should be grouped by ages taught, for example,
elementary, middle and high school. In the second year, begin facilitating the
workshops.
The utility should adopt or develop the program in the first year and start
implementation in the second year for grades 1 to 3.
The utility should adopt or develop the program in the second year and start
implementation of the program in the third year for grades 4 to 5.
The utility should adopt or develop the program in the third year and start
implementation in the fourth year for grades 6 to 8.
The utility should adopt or develop the program in the fourth year and start
implementation in the fifth year for grades 9 to 12.
It is important that follow-up contact with teachers and schools that participated in the
past be initiated annually. It will serve as an impetus to ask questions or arrange
speakers or programs for their students for the following year.

Scope

The utility has three choices within the scope of this BMP. Select item 1, or items 2 and
3, or item 4 below. The utility should strive to reach 25 percent of teachers with
professional development training by the third year of implementation.

1) The utility should strive to reach 10 percent of students in grades 1 to 5 with a
presentation or lesson each year by the third year following the schedule above.
2) The utility should strive to reach at least 10 percent of students in grades 6 to 12
with a presentation or lesson each year by the third year of implementation
following the schedule above.
3) Alternatively, this BMP will be met if the utility only focuses on grades 1 to 5 or 6
to 12. The program would be developed in the first year and implemented in the
second year for either alternative. The utility should strive to reach either 15

January 15, 2013 48

percent of students within grades 1 to 5 each year by the third year of
implementation, or 15 percent of students in grades 6 to 12 by the third year of
implementation.
4) The utility can count students reached through clubs and other educational
events as participants and students impacted by utility sponsored programs
outside the utility service area.
For smaller utilities, or those in which service area boundaries overlap school district
boundaries with another water utility, jointly operated or funded programs should be
considered.

Documentation

To track the progress of this BMP, the utility should gather and have available:

The number of school presentations made during the reporting period.
The number and type of curriculum materials developed and/or provided by the
water supplier, including confirmation that curriculum materials meet N.C.
Essential Standards and are grade-level appropriate.
The number and percent of students reached by presentations and curriculum.
The number of students reached outside the utility service area.
The number of in-service presentations or teachers workshops conducted during
the reporting period.
The number of students reached by teachers trained at the above workshops.
The results of evaluation tools used, such as workshop feedback forms, pre- and
post-tests, student surveys and/or teacher surveys.
Copies of program marketing and educational materials.
Annual budget for school education programs related to conservation.

Determination of Water Savings

Water savings for school education programs are difficult to quantify and therefore
estimated savings are not included in this BMP. If the retrofit kit is distributed, water
savings can be calculated as described in the Retrofitting Residential Fixtures –
Showerheads, Aerators, and Toilet Flapper Programs BMP. A 1991 study conducted for
The Harris Galveston Coastal Subsidence District found an average savings of 18
percent or 1,400 gallons per month in homes where the students and parents had
installed efficient showerheads and aerators on bathroom and kitchen sinks.

Cost-effectiveness

A true cost-effectiveness analysis cannot be determined without a measure of water
savings. By implementing this BMP, the utility will enhance its public image, increase

January 15, 2013 49

customer goodwill, and increase the viability of its overall water efficiency and water
conservation efforts.
School education costs vary widely due to the varying types of programs. Curriculum
units can be developed and implemented for between $1 and $3 per student. Teacher
education workshops can be facilitated for between $20 and $30 per teacher.
Educational entertainment programs can be developed or contracted out for between $2
and $5 per student. There are prepackaged contractor programs with extensive features
that cost up to $35 per student. Most programs will require utility staff oversight and
outreach efforts to schools and students.

If the showerhead and aerator kits are distributed as part of this BMP, the costs for the
kits will be similar to those described in the Retrofitting Residential Fixtures –
Showerheads, Aerators, and Toilet Flapper Programs BMP.

References:

Texas Water Development Board Report 362, Water Conservation Best
Management Practices Guide, November 2004.
Beyond Ecophobia, David Sobel, Volume 1 Orion Society Nature Literacy
Series.
Project WET (Water Education for Teachers): http://www.projectwet.org.
NC Project WET:
http://www.ncwater.org/Education_and_Technical_Assistance/Project_WET/.
U.S. Environmental Protection Agency Waterkids:
http://water.epa.gov/learn/kids/waterkids/watered2.cfm.
North Carolina Essential Standards:
http://www.dpi.state.nc.us/acre/standards/new-standards/.

January 15, 2013 50

Case Study for a School Education and Outreach Program

Greensboro, North Carolina

The Greensboro Water Resources Department has many tiers to its school education
and outreach program. The city directly provides youth education in the form of
classroom presentations, special events and programs. Presentations are provided for
school age children on a variety of topics such as general water supply awareness,
conservation and water quality. In addition, each year, more than 300 5th grade
students participate in the water festival. Students learn about the importance of water
while visiting eight different hands-on water activity sites.

The Greensboro Water Resources Department also maximizes its education and
outreach efforts by partnering with local agencies. The Greensboro Kathleen Clay
Edwards Family Library branch offers a host of environmental programs and workshops
for Greensboro residents. Educators can take advantage of Project WET (Water
Education for Teachers), Wonders of Wetlands (WOW), and Planning of Wetlands
(POW) training workshops. The Water Resources Department pays for the cost of the
curriculum guides, so workshops are provided for free to teachers in the Guilford County
School System at least once per year. Participants increase their knowledge of
watersheds, wetland design, water quality and water conservation. They then take
these activities back into their classrooms, thereby reaching the students as well.

In addition, a collaborative effort with North Carolina Cooperative Extension allows
students in Grades 1-4 to participate in their annual poster contest. The contest is held
in two categories: water conservation and water quality. Winners receive a prize and
recognition at a local city council or county commissioners’ meeting.

January 15, 2013 51

Retrofitting Irrigation Systems/Landscape Water Use Efficiency

Applicability

This BMP is intended for use by water systems (“utility”) with a substantial percentage
of customers using automated landscape irrigation systems and is targeted to
customers who have automated irrigation systems. Each water system has the potential
for substantial water savings with the implementation of this BMP. For the maximum
water-use efficiency benefit, the utility should adhere closely to the measures described
below.

Description

Landscape irrigation conservation practices are an effective method of accounting for
and reducing outdoor water usage while maintaining healthy landscapes and avoiding
runoff. Using this BMP, the utility provides non-residential and residential customers
with customer support, education, incentives and assistance in improving their
landscape water-use efficiency. Incentives include rebates for purchase and installation
of water-efficient equipment. There are three approaches a water system can explore,
water-use surveys, metering, and budgeting; landscape design; and minimum
standards and upgrades. Successful implementation of this BMP will be accomplished
by performing one or a combination of the approaches listed.

Water-Use Surveys, Metering, and Budgeted Water Use
If the utility chooses the survey approach, the utility develops and implements a plan to
promote landscape water-use surveys to all of its accounts. The water-use surveys, at a
minimum, include: measurement of the landscape area; measurement of the total
irrigable area; irrigation system checks and distribution uniformity analysis; review of
irrigation schedules or development of schedules as appropriate; and provision of a
customer survey report and information packet. When cost-effective, the utility should
offer the following: landscape water-use analyses and surveys; voluntary water-use
budgets; installation of dedicated landscape meters; acceptance of site conservation
plans; and follow-up to water-use analyses and surveys.

At the start and end of the irrigation season, irrigation systems should be checked, and
repairs and adjustments should be made as necessary. Notices should be included in
bills to remind customers of seasonal maintenance needs. For accounts with water-use
budgets, the utility should provide notices with each billing cycle showing the
relationship between budgeted water usage and actual consumption. When soil
conditions allow, and landscape managers are familiar with the use and maintenance of
soil moisture sensors, water budgets can be allocated based upon soil moisture status,
thereby providing a closer estimate of actual conditions.

In an effort to increase water system efficiency and water use awareness North Carolina
general statute 143-355.4 was passed in the 2009 session of the General Assembly.

January 15, 2013 52

It mandates that as of July 1, 2009 all local government water systems and large
community water systems must require separate meters for new in-ground irrigation
systems that are connected to their water system. Large community water systems are
defined as those with at least 1,000 connections or serving at least 3,000 people.
According to the League of Municipalities, the actions needed by the water system to
achieve this mandate include:

Determine whether to split existing taps, add additional taps, or a combination of
the two.
Adopt a local ordinance stating, at a minimum, the requirements of the state
general statute.
Decide whether a change in the rate structure and/or fee schedule is necessary.

Landscape Design
If the utility chooses the landscape design approach, the utility should provide
information on climate-appropriate landscape design, as well as efficient irrigation
equipment and management for new customers and change-of-service customer
accounts. To serve as a model, the utility should install climate-appropriate, water-
efficient landscaping at water agency facilities and landscape meters where appropriate.
Municipalities with ordinance-making powers should consider adopting ordinances that
require all new apartment complexes and commercial buildings to install a water
conserving landscape. This can often be accomplished by amending an existing
commercial landscape ordinance. Please refer to the BMP entitled, Regionally
Appropriate Landscaping, for detailed information regarding the measures individual
landowners and land managers can do to implement responsible water efficient
practices on their landscape.

Minimum Standards and Upgrades
Irrigation system design, associated maintenance components, and even landscape
design could be improved through use of municipal ordinance-making powers where
possible. Minimum water efficient design features can be mandated for new
construction, while existing systems or landscapes are offered incentives to upgrade.
Precipitation sensors, evapotranspiration (ET) estimation sensors, soil moisture
sensors, irrigation controllers, and pipe specifications for zoning of irrigation systems
are all potential elements of an irrigation systems ordinance. Size and scope of
hydrozones, surface water buffer zone vegetation, and turfgrass species selection are
potential elements of landscape design ordinances. Buffer or median areas represent
additional savings when all landscaped areas less than five feet in any dimension are
restricted to drip or other surface or subsurface (non-spray) irrigation system or no
irrigation system.

Implementation

The utility should consider offering a landscape irrigation program to customers with
large landscapes first as a means of rapidly increasing cost-effectiveness and water
savings. Marketing the program to the customer via bill inserts will allow the utility to

January 15, 2013 53

target the largest summer peak users first. The utility should consider also approaching
local weather announcers, gardening show hosts, and newspaper columnists, as well
as any other means of establishing communication with the public concerning the
program. Public/private partnerships with non-profits such as gardening clubs,
Cooperative Extension offices and/or with green industry businesses, such as
landscape and irrigation maintenance companies, are potential avenues to market the
program and leverage resources.

Incentives can include rebates for irrigation audits and systems upgrades, recognition
for water-efficient landscapes through signage and award programs, and certification of
trained landscape company employees and volunteer representatives who can promote
the program. Utility staff can also be trained to provide irrigation audits which can
include resetting irrigation controllers with an efficient schedule.

The initial step in assisting customers with landscape irrigation systems is a thorough
evaluation or audit of the existing landscape area and irrigation systems. This includes:

Customers with large landscapes, a list of landscape areas, measurements, plant
types, irrigation system hydrozones and controllers.
A list of existing irrigation policies or procedures, including maintenance and
irrigation schedules.
A distribution uniformity analysis on irrigated turf areas.
A review of water bills with attention to the ratio of summer to winter use.
An initial report summarizing the results of the evaluation.
Ensure that landscape irrigation system specifications are coordinated with local
building codes and contractor licensing requirements.

The water customer who participates in this program needs to maintain and operate its
irrigation systems in a water-efficient manner. Maintenance programs include pre-
irrigation system checks, adjustment of irrigation timers when necessary, installation of
rain sensors, regular review of irrigation schedules and visual inspection of the irrigation
system. When landscape management companies are used, contracts should include a
required report showing regularly scheduled maintenance and seasonal adjustments to
irrigation systems controllers. The utility should consider implementing a notification
program to remind customers of the need for maintenance and adjustments in irrigation
schedules as the seasons change.

Approximately one year after conducting an irrigation audit, the utility should consider
conducting a customer-satisfaction survey. The objective of the customer-satisfaction
survey is to determine the implementation rate of recommended modifications and to
gauge customer satisfaction with the program.

When appropriate, the utility should consider offering:

Training in efficiency-focused landscape maintenance and irrigation system
design.

January 15, 2013 54

Financial incentives, such as loans, rebates, and grants, to improve irrigation
system efficiency and to purchase and/or install water efficient irrigation systems.
Financial incentives to replace high-water use plants with low water use ones.
Rebates and incentives to purchase rain sensors or soil-moisture sensors.
Notices at the start and end of the irrigation season, alerting customers to check
irrigation systems and to make repairs and adjustments as necessary.

Evaluations and/or rebate processing could be done by the utility staff or be outsourced.
If a utility chooses to perform the evaluations using in-house staff, they may take
advantage of irrigation evaluation training programs provided by North Carolina State
University-Turf Management Cooperative Extension. For more information on these
trainings, go to http://www.turffiles.ncsu.edu.

An outsourcing option for the non-residential sector is to use or recommend a water-
based performance contractor. Performance contracting is a financing technique that
uses cost savings from reduced water and sewer consumption to repay the cost of
installing water conservation measures. This technique allows for the development of a
water-savings program without significant up-front capital expenses on the part of the
customer. Instead, the costs of water-efficiency improvements are borne by either the
contractor or a third party lender who recoups cost and shares water savings with the
user.

Goals
Realize the scope of this BMP within 10 years of the date implementation
commences.
Develop and implement a plan to target and market landscape water use surveys
to all accounts by the end of the first year from the date implementation
commences.
Develop and implement a customer incentive program by the end of the first year
from the date implementation commences.
Follow up with the participating customer approximately one year after a water
use survey has been conducted and/or a rebate processed.

Scope

To accomplish the goals for this BMP, the utility should do the following:

Landscape Irrigation System Management Programs
Within one year of implementation date, develop and implement a plan to market
water-use surveys to Industrial-Commercial-Institutional (ICI) accounts with
mixed-use meters.
Within one year of the implementation date, develop and implement a customer
incentive program.
Within 10 years, contact and offer landscape water-use surveys to all accounts
with separate irrigation meters. A minimum response rate for the surveys should
be 15 percent.

January 15, 2013 55

Within 10 years, contact and offer landscape water-use surveys to all accounts
with summertime monthly use of greater than four times the annual average. A
minimum response rate for the surveys should be 15 percent.

Ordinance Approach
In the first 12 months: Plan a program, including customer input as needed.
Consider offering rebates for all or a portion of the time this program is in place.
For example, offer rebates for only the first five years to encourage customers to
take advantage of rebates and retrofit early in the program.
Develop a plan for educating real estate agents, landscape companies and
irrigation installers about this requirement. Plan a follow-up inspection program
after retrofit. Develop and pass the ordinance. Implement the ordinance and
tracking plan for the number of units retrofitted.
In the second year and all subsequent years: Continue implementation; continue
outreach program for real estate agents, landscape companies and irrigation
system installers; and continue verification inspections.

Documentation

To track this BMP, the utility should gather:

The number of dedicated irrigation meter accounts.
The number of dedicated irrigation meter accounts for which water budgets have
been developed.
Aggregate water use for dedicated landscape accounts with budgets.
Aggregate budgeted water use for dedicated landscape accounts with budgets.
The number of mixed-use accounts.
The number of surveys offered and number of surveys accepted and completed.
The number, type and dollar value of incentives rebates and loans offered to and
accepted by customers.
The estimated water savings achieved through customer surveys.
The estimated landscape area converted and water savings achieved through
low water landscape design and conversion program.
The cost of administering program.

Determination of Water Savings

Landscape surveys as described in this document should result in at least a 15 percent
reduction in water demand for landscape uses by surveyed accounts. The utility should
provide estimates of water savings from landscape irrigation survey programs based on
actual metered data.

For comments or questions regarding the Retrofitting Irrigation Systems/Landscape
Water Use Efficiency BMP, please contact the water efficiency specialist of the Water
Supply Planning Branch at 919-707-9005.

January 15, 2013 56

References

Texas Water Development Board Report 362, Water Conservation Best
Management Practices Guide, November 2004.
Handbook of Water Use and Conservation, Amy Vickers, Waterplow Press,
May. 2001.
Legislative Report – Recommendations for Water Efficiency Standards for In‐
ground Irrigation Systems, NCDENR, January 2009.
Case Study for an Outdoor Water Use Conservation Program

Cary, North Carolina

Background

Cary is a large town in west-central Wake County, North Carolina. The town's history is
closely linked with the development of Raleigh and the Research Triangle Park.

The town population was 135,234 at the 2010 U.S. Census. According to the 2011
Local Water Supply Plan update, the town had a year-round service population of
159,898 people with 9,545 residential connections. The daily per capita water usage in
2011 was 61.4 gallons. Cary withdraws their water supply from Jordan Lake at the
confluence of the Haw and New Hope rivers.

WaterWise Landscape Program

Cary began their WaterWise landscape programs in earnest in 1998 and this program
has played a significant part in Cary’s overall 20 percent per capita water reductions.
Cary’s outdoor landscape water efficiency and conservation program has three
components: educational outreach initiatives, financial incentives, and
regulations. WaterWise landscape practices are addressed by specific programs within
each of those categories. Below are actions that have been incorporated into the utility’s
standard operating procedures.

Educational Outreach:
Free WaterWise landscape workshops.
Detailed information on the Town of Cary’s website that covers fundamental
landscape practices to reduce water use and maintain desired conditions.
Beat the Peak campaign, which focuses on providing tips for WaterWise
irrigation practices and landscapes during especially dry periods. Included in the
Beat the Peak campaign is an online video game. To see the campaign visit,
http://www.townofcary.org/Departments/Public_Works_and_Utilities/Conservatio
n/Water_Conservation.htm.

January 15, 2013 57

Free irrigation audits, which include free precision-spray nozzles as part of the
2012 campaign.

Financial Incentives:
Turf Buy Back Program. This program provides a one-time financial
compensation to utility customers who agree to convert at least 1,000 square feet
of historically irrigated turf to natural area or warm-season grass.
Tiered water rates.
Water budgets.
Rain barrels for sale at cost throughout the year.

Regulations:
Alternate day watering and other irrigation scheduling options.
Separate irrigation meter requirements.
Irrigation sensor and ordinances intended to discourage wasteful outdoor water
use such as, the irrigation of impermeable surfaces.
Irrigation system design standards as part of the Land Development Ordinance
(LDO)/Appearance Standards.
Drought-tolerant plant material requirement as part of the LDO.
Use of reclaimed water for irrigation where it is readily available.

WaterWise Program Assessment

Assessments have been conducted on some of Cary’s programs to estimate water use
savings since their implementation. One of these is the Turf Buy Back (TBB) program,
which involves incentivizing the replacement of cool season turfgrasses with warm
season grasses or natural areas. It has been estimated that this initiative has saved
approximately 722,678 gallons in the 2011 fiscal year. In fact, it was so well received by
the public that the interest in participating exceeded the appropriated funds available. In
addition to and in conjunction with the TBB, Cary has begun conducting free irrigation
audits to homeowners that includes the retrofitting of more water-efficient spray nozzles.
This program has only begun within the past year, so water savings totals are
unavailable, but the potential water savings are substantial.

A 2011 survey conducted by CH2M Hill for Cary found that residents are generally
supportive of the town’s outdoor water conservation programs and efforts. The
questions in the survey were based upon a nine-point scale, which examined the
degree of satisfaction respondents had with the town’s water conservation program.
Some highlights from the 2011 Water Conservation survey include:

The respondents were first asked about their satisfaction with how the town
implements their water conservation programs. There was a relatively high level
of satisfaction expressed by the respondents with a mean of 6.97 and 74.2
percent replying on the “satisfied” side of the scale, including 30.4 percent
answering very satisfied.

January 15, 2013 58

The respondents perceived that the most effective tool to encourage water
conservation were regulations, such as alternative day watering. The mean was
7.46 with 81.4 percent of the responses falling on the “effective” side of the scale,
including 45.3 percent answering it was very effective. There were only 6.1
percent of the responses for this subject on the “ineffective” side of the scale.
Overall, this was believed to be the most effective of the tools examined by a
significant margin.
The respondents viewed tiered water rates, financial incentives, such as toilet
rebates, and the towns’ website as the three next most effective tools. The mean
response for tiered water rates, which ranked second was 6.46 with 67.4 percent
of the responses on the “effective” side while 14.6 percent were on the
“ineffective” side.
The use of a financial incentive ranked third with a mean of 6.41 and with 61.3
percent of the respondents on the “effective” side, while 16.9 percent were on the
“ineffective” side. Although the mean was slightly lower than tiered water rates,
there was a higher percentage who felt it was very effective (32.6 percent versus
26.7 percent, respectively) indicating its importance to residents.

Cary has demonstrated that by undertaking these measures they are progressing
towards a more efficient water system while maintaining desired landscape conditions.
As Cary continues to incorporate additional water conservation measures and
programs, it is expected they will continue to reduce their outdoor water use and
maintain a stable water supply for continued growth.

For more information regarding the Cary’s WaterWise Landscape Program, please visit
the town’s website at:
http://www.townofcary.org/Departments/Public_Works_and_Utilities/Conservation/Wate
r_Conservation.htm.

January 15, 2013 59

Regionally Appropriate Landscaping

Applicability

This BMP is intended for use by water system customers who wish to reduce their water
supply needs and reap the biological benefits of establishing a water efficient
landscape. This information should be disseminated by the water systems and the
recommendations should be encouraged through the larger local water conservation
and efficiency program.

Description

This category involves residential and commercial water customers who use some
portion of their water expenditures for irrigation of outside vegetation. These include
automated and manual above- and below-ground irrigation systems as well as “watering
by hand” using a hose or container. Even though managed landscapes that include
automated irrigation systems are often larger and use greater volumes of water, these
best management practices are intended to be inclusive to all users of outdoor
irrigation. If used efficiently, outdoor irrigation can provide desired and attractive
landscapes while maintaining adequate water supplies for other uses of municipal
water.

There are four general categories of BMPs for outdoor irrigation water use:

Planning and design.
Vegetation selection.
Efficient irrigation system.
Soil analysis and amendments.
These categories include many subjects and are not intended to treat one category
more preferentially than another. In fact, once properly implemented, the BMPs from all
categories should work in concert with one another to require minimal water use for
maintaining a beautiful and functional landscape. It must be stressed that all of these
BMP’s require some level of continual maintenance to ensure their optimal
effectiveness in regards to water efficiency. The information contained in this BMP is
general in nature; therefore, it may be helpful to consult with a landscape contractor to
achieve maximum water conservation benefits. However, outdoor water conservation is
ultimately the responsibility of the owner of the landscape, as a professional can only
advise the owner.

Planning and Design

To optimize water conservation efforts, the landscape should be planned and designed
with water use in mind prior to any changes. This process should at least include the
following aspects:

January 15, 2013 60

Survey the land area with a transit or level. Use this information to produce a
map with the elevation contours, as well as, all trees, structures, rocks and any
permanent above-ground utilities.
Use the existing contours while protecting any trees, structures or utilities from
erosion.
Use the contouring of the landscape to create “zones” where plants of similar
water, sun and soil amendment needs are kept together.
Minimal earthwork will reduce soil compaction, thereby increasing the infiltration
into the soil.
All grading activities should be conducted with the goal of reducing flow velocity
and runoff. Engineering schemes such as, plunge pools, increasing channel or
flow zone length through sinuosity, and widening of the flow zone should be
considered to achieve this goal.
Understand where the water is likely to flow during heavy rainfalls and use berms
or vegetation such as multiple-stemmed bushes to reduce the velocity of this
flow. A visit to the area during and immediately after a heavy rain is an important
step to understanding the location and velocities of water flow onsite.
Inspect the entire landscaped area regularly, especially immediately following
heavy rains. Rills or small gullies can form during and immediately after these
rainfall events. These should be immediately filled to avoid further soil erosion
and plant losses. Once filled, alterations in the surface drainage of the
landscaped area may be needed to avoid this type of erosion from reoccurring.
Simple drainage barriers, such as strategically placed mulch tubes, rain gardens
or simply larger, thicker grasses, could serve to reduce the concentration and
velocities of water during and after a rainfall. These solutions also help avoid
costly and time-intensive grading activities.
Use turf only where needed.
Vegetation Selection

Once the design plan has been drafted with specific watering “zones,” the proper
selection of desired vegetation based upon the plant climate region is critical. This was
achieved on a national level by the creation of the Plant Hardiness Zone Map by the
United States Department of Agriculture (USDA). The intention of the USDA’s
establishment of plant hardiness zones was to provide a general idea of which plants
are suitable to certain regions in an attempt to avoid unnecessary plant mortality. The
introduction of the Plant Hardiness Zone Map in 1990 succinctly summarizes the
original concept by stating, “All plants must be placed in an environment that meets their
basic requirements (USDA, 1990).” The specific differences in plant hardiness zones
are based upon the length of day, anticipated solar radiation, temperature, initial timing
and frequency of frost, heat, rainfall and soil pH.

January 15, 2013 61

North Carolina contains several USDA Plant Hardiness Zones from Zone 5 to Zone 8.
The zones range from 5b in the higher elevations of the mountains to 8b in the far outer
Coastal Plain regions, with Zone 7 predominating across the state (Figure 1).

Figure 1. USDA Plant Hardiness Zones for North Carolina (USDA, 2012)
The North Carolina State University’s Department of Horticultural Science has produced
many publications for shrubs and trees that provide detailed suggestions, including the
hardiness zones, for which plants are appropriate to plant in North Carolina. The link for
these detailed publications can be found in the references section of this BMP (NCSU,
2012c). For more detailed information, please consult your county’s cooperative
extension agent or local garden center to assist in the proper selection of plants based
on the plant hardiness zone, landscape placement and water needs.

Once a list of the plants has been determined, these plants should be grouped together
based on water, shade and nutrient requirements. These vegetation groupings are the
basis for landscape zonation as described in the planning and design section. This also
provides the installer an opportunity to determine if any of the desired plants are
inappropriate for the landscaped area. Consultation with a landscape contractor,
arborist or county cooperative extension agent is advised for reasonable alternatives to
any desired but inappropriate plants.

January 15, 2013 62

Turfgrass
Turfgrass is the most widely-grown ornamental crop in the southern United States.
Of the 2 million acres of turfgrass grown in North Carolina, single family homes
account for about 60 percent, primarily in areas serviced by a public water supply
system. Other locations of turfgrass within areas serviced by a public water system
include athletic fields, golf courses, parks, schools, churches and commercial
buildings.

If the landscaped area being designed contains areas of turf, then an appropriate
turfgrass type must be selected. There are many different types of turfgrasses
known to thrive throughout North Carolina and a trip to your local agricultural supply
or hardware store can be confusing if you are not fully prepared. Each species of
turfgrass grown in North Carolina has positive and negative aspects. As a developer
of the landscape, the individual must decide when they want or need the turf to be at
its greenest and when it can be dormant.

North Carolina sits in the transition zone for cool and warm-season turfgrasses.
Cool-season turf species are those with optimum growth at temperatures between
60 degrees and 75 degrees Fahrenheit, whereas warm-season turfgrasses have
optimum growth between 80 degrees and 95 degrees Fahrenheit. By far, the most
commonly-grown species in North Carolina is the cool-season grass tall fescue,
followed by warm-season Bermudagrass. In addition to tall fescue, the cool-season
grasses include creeping bentgrass, fine fescue, Kentucky bluegrass and ryegrass.
The normal time for renovation of tall fescue and Kentucky bluegrass lawns in most
of North Carolina is early September. High temperatures can cause cool-season
grasses, such as tall fescue, to become stressed.

Warm-season grasses include bahiagrass, carpetgrass, centipedegrass, St.
Augustinegrass, and zoysiagrass and bermudagrass. These grasses are generally
better able to survive prolonged periods of dry conditions, but may still be severely
damaged from chronic drought. Heat alone is generally not problematic with warm-
season turfgrasses unless there is low soil moisture. The time to renovate warm-
season grasses is normally in spring/summer.

January 15, 2013 63

Table 2. Characteristics of commonly grown turfgrasses in North Carolina (NCSU,
2012a).

Grass species Adaptation Appearance
Shade Heat Cold Drought Wear Color Texture
Bermudagrass
very
poor
very
good
very
poor excellent excellent medium medium
Centipede good good poor good poor light coarse
Tall Fescue good good
very
good
very
good
very
good medium coarse
Kentucky
Bluegrass/ Tall
Fescue good good
very
good
very
good
very
good
medium-
dark
medium-
coarse
Bahiagrass good good poor excellent poor
medium-
dark coarse
St. Augustine
grass
very
good
very
good poor good poor
medium-
dark coarse
Zoysiagrass good
very
good
fair-
good excellent good
medium-
dark
fine-
medium

North Carolina State University’s Turffiles program has established an excellent
online turf selection decision aid at http://turfselect.ncsu.edu/TurfSelection.aspx.
This internet application only requires knowledge of the general use of the
landscape, shadiness of area, and county. It will generate several appropriate
choices, with a table of the positives and negatives for each turf type.

There are many factors that affect turfgrass survivability and water needs in drought
conditions including species type, turf age, rooting depth, soil type, shade,
maintenance, traffic and heat. Water efficiency should be a goal during all climate
conditions; however, during drought conditions turf should be watered and irrigated
only to keep the grasses alive. Due to the great deal of water needed to establish
new turfgrasses, it is highly recommended that turf areas have at least minimum
maintenance, as the water needed to maintain turf is less than the quantity needed
to start again. A rule of thumb, when the watering regime goal is merely the survival
of the turf, then irrigation of half an inch of water every two to four weeks is
appropriate. This minimal water usage will keep the turf crowns hydrated, and allow
the turfgrass to go semi-dormant to dormant. The color of the grasses may turn a
dull brown. However, this may not occur in species such as tall fescue and
bermudagrass. If the color changes do occur, the color and vigor will readily return
once drought conditions have attenuated or reduced in severity. Keeping vehicle and
foot traffic off the turf when it is under severe drought stress will further increase the
survivability of the turf.

Use of herbicides and fertilizers are known to bind water molecules; therefore, avoid
their usage when under drought conditions. However, under normal climate
conditions, application herbicide treatments will serve to reduce competition for
water resources by undesired/weed species. Similarly, the use of insecticides should

January 15, 2013 64

be restricted during drought conditions. However, their use under normal conditions
will serve to control many insect, nematode or disease issues; thereby, avoiding the
costly water use needed during reseeding. Keep in mind that judicious use is critical
as some products can be toxic to certain turf species; therefore, it is critical to follow
the manufacturer’s suggested dosing.

During normal conditions in the summer months, turf generally needs approximately
one-inch of water per week. This water can be provided from both irrigation and
rainfall; therefore, it is important to install a rain gauge near the irrigated area and
keep track of the amount of precipitation collected. Due to the somewhat spotty
nature of rain events, this is likely to differ from the nearest reported/published rain
gauge data. The Turf Irrigation Water Management Model, which can be found at
http://turf-ims.ncsu.edu/, can be used to calculate and track irrigation use. It utilizes
North Carolina State Climate Office weather data in concert with general soil type
data, turfgrass type and irrigation discharge rate to provide monthly irrigation needs.
The irrigation section of this BMP document provides detailed information about
proper irrigation practices.

To further increase water efficiency of the turfgrass, the mowing height should be
maintained at the higher end of the recommended scale for that specific turf species.
Please visit, http://www.turffiles.ncsu.edu/Turfgrasses, for the recommended mowing
heights of the specific species. Other mechanical maintenance practices, such as
aeration, should be conducted at the appropriate times of the year for the specific
turf type on the landscape. For cool-season grasses, these practices should occur in
the fall when the ground is moist and the turf is typically subjected to little water
stress. However, for warm-season grasses any mechanical activities should occur in
the early summer to avoid turf damage.

Turfgrass that turns bluish-gray in the heat of the day may be in immediate need of
water to prevent mortality. This situation may require exceeding the recommended
watering regime, especially during an extremely hot and dry period. Be aware that
the bluish-gray color may be a diurnal discoloration that will recover at night.
Therefore, it is recommended that regular watering continue for at least one full day
following observation of the discoloration before exceeding the normal watering
regime. If the landscaped area is located in an area with local water restrictions,
hand-watering of those areas that show visual signs of heat and moisture stress may
be needed until the next allowable sprinkler irrigation opportunity (NCSU, 2012a).

Efficient Irrigation

Once the landscaped area has been properly planned and zoned and the locations
of the large trees have been approximated, the type of irrigation system should be
determined. There are two choices, below-ground permanent systems and above-
ground temporary systems. For larger land areas with more extensive landscaping,
the below-ground permanent systems are often preferred. However, many
configurations are possible including maintaining both permanent and temporary

January 15, 2013 65

irrigation systems in the same planned landscape. This approach allows for more
flexibility for landscape alterations and potentially greater water conservation and
efficiency. For more information about conservation programs and efficiency
ordinances local municipalities can initiate, please refer to the BMP entitled
Retrofitting Irrigation Systems.

It should be noted that according to North Carolina general statute 89G-3, section
65.8.(a) and (b), no person shall engage in the practice of irrigation construction or
contracting, use the designation ‘irrigation contractor’, or advertise using any title or
description that implies licensure as an irrigation contractor unless the person is
licensed as an irrigation contractor. All irrigation construction or contracting
performed by an individual, partnership, association, corporation, firm, or other group
shall be under the direct supervision of an individual licensed by the North Carolina
Irrigation Contractors’ Licensing Board.

For the below-ground permanent systems, pipe layout is vital. The piping should be
laid out so that larger rooting trees are avoided and the nozzles are spaced such
that there is little spray overlap. Irrigation water is not needed directly at the base of
trees once they are established. Impermeable surfaces such as sidewalks,
driveways and roads should never be irrigated. Use of water efficient nozzles, which
are regularly maintained, is important to achieve water conservation goals. Leaks
around the nozzles or within the below-ground piping can result in significant water
loss, reduced water pressure through the system and mortality from oversaturation
and erosion from a softening of the subsoil.

Permanent systems are typically constructed as automated systems. If the irrigation
system is automated, rain and/or soil moisture sensors need to be installed and
actively functioning. A well-functioning sensor will avoid both unnecessary water
usage during times when no irrigation is needed and over-watering when some
irrigation is needed. It is important to note that these devices must be accurately
calibrated based upon the specific conditions at the landscaped area. Sensors
should be calibrated at the initial installation and then periodically per manufacturers
guidelines.

Temporary, above-ground irrigation systems include hand watering, manual
irrigation and temporary sprinklers. These methods are thought to reduce water
consumption. However, water reduction is on a case-by-case basis and hand
watering does not always conserve water. Misuse of water can easily occur with a
sprinkler attached to a hose by over-watering or watering surfaces with no plants.
To avoid this situation, it is recommended to measure the irrigation radius of the
sprinklers used and plan for where they will be placed.

A measure of the water volume discharged from sprinkler or nozzle heads should be
conducted for permanent and temporary irrigation systems. To calculate the length
of time required to irrigate one-inch of water on the landscape area, first distribute a
few empty “catch” cans across the irrigated area. Note the exact time when irrigation

January 15, 2013 66

begins. Standard, small tuna cans are useful since they are typically one-inch tall.
The irrigation cycle should end once the catch can is full. The ending time should be
noted. This provides the user with an approximate length of time required to provide
the turf with enough water to thrive for another week. It also serves as an
assessment of the distribution evenness of the sprinkler heads.

Regardless of the irrigation system type, turf areas are generally wide and broad.
Therefore, sprinkler irrigation is typically a better choice. However, drip irrigation is
an appropriate alternative for shrubbery, gardens or during the grow-in period for
trees. Drip irrigation uses less water than the traditional sprinkler because it places
water directly into the soil and reduces the amount of water lost to runoff and
evaporation.

In addition, manual hand-watering with a hose or bucket should be a tool everyone
uses in landscaped areas. Some plants require more water than others and dry
zones can be present, as rainfall is not equal everywhere even across a single lawn.
If small areas of water stress are observed either in turf (i.e. blue-greenish blade
color) or larger plants (i.e. brittle stems and early leaf drop), water should be
provided directly to these plants to avoid loss, as establishing new plants will often
require significantly more water than what’s needed to save the existing plant. For
more valuable landscaping vegetation, water injection and syringing is a tool that
can be used to provide water directly to the roots. People should consult a
landscape professional if they choose this method.

It is recommended that irrigation occur two to three times a week, keeping in mind
that generally only one-inch of water total is needed for the entire week, including
that received from precipitation. Irrigation frequency will often vary with climatic and
environmental factors, such as seasonal shifts, temperature and rainfall. Significant
alterations on water usage can be expected when any of these factors depart from
normal conditions.

To avoid direct and immediate losses of irrigated water from evapotranspiration
(ET), watering activities should be conducted between 10 p.m. and 8 a.m. Nighttime
is generally less windy, cooler and more humid, resulting in less evaporation and
more efficient application of water. It is advised that the watering be conducted late
at night rather than early morning to avoid times of high water demand. Contrary to
popular belief, studies have shown that irrigating during this period does not
stimulate disease development. For more information, go to
http://www.turffiles.ncsu.edu /PDFFiles/000851/ag661.pdf.

Measuring the depth of the root zone is important when determining the frequency
and duration of irrigation. Landscapes with deep, well-established root zones may
require less-frequent irrigation in the summer, even during peak ET demands. For
younger landscapes, more frequent irrigation will likely be needed in the spring,
when the roots are becoming established. Shallow rooting depth and warmer,

January 15, 2013 67

windier days result in higher ET rates. Understanding the changing needs of the
landscaped area is important for water conservation and the health of the plants.

Irrigation frequency should also be adjusted depending on existing environmental
factors such as compacted soils or soils with a shallow hardpan or clay lens. To
avoid runoff on these soils, irrigate only a small portion of the needed water, wait
until all the water has percolated into the soil, and continue to apply small portions of
water. If kept near field capacity, and not allowed to dry, this process will assist in
reducing the compaction of the soil. Field capacity is the amount of water remaining
in a previously saturated soil after free drainage has ceased. On well-aerated soils
with low to moderate traffic, minor water stress on the turf can serve to benefit the
turfgrasses, as this will tend to increase the rooting depth. It is recommended that
once wilting is observed on a few blades, wait another 24 hours, then water the area
again to ensure water infiltrates deep into the soil column.

Table 2. Estimated monthly irrigation totals for turfgrasses in the Raleigh area
(NCSU, 2012a).

Soil Analysis and Amendments

In North Carolina, most soils are acidic and somewhat low in nutrients; therefore,
optimal plant growth and yield often require the addition of amendments. Plants with
nutrient deficiencies or ion toxicities will show symptoms of water stress. This is
because essential nutrients such as Phosphorus (P), Potassium (K), and Nitrogen

January 15, 2013 68

(N) are necessary for the plant to transmit water from the soil into the roots and up
into the above-ground portions of the plant. At the same time, ion toxicities, such as
Aluminum (Al), Iron (Fe), or Sodium (Na) will restrict the uptake of water from the
soil. Proper soil pH is also critical to avoid plant water uptake issues. In highly acidic
soil conditions plant roots will be constrained in the uptake of water. For most areas
throughout North Carolina, the recommended soil pH range is between 5.5 and 6.5.
Soil testing is the best way to determine the types and quantities of the soil
amendments needed based on existing field conditions. Over-fertilization or over-
liming should be avoided, as it could result in increased shoot growth at the expense
of root development. A soil analysis should be completed prior to any planting.
Ensuring the turf and larger plants have the proper amount of fertilizer applied early
in the season will assist in making more efficient use of the available nutrients. This
will result in increased efficiency of water uptake throughout the growing season. In
North Carolina, the Department of Agriculture and Consumer Services (NCDA&CS)
provides a free assessment of soil samples sent by North Carolina residents. This
report details the existing levels of essential macronutrients, as well as important
micronutrients present. The report also provides recommendations for quantities of
soil amendments to be applied. These recommendations are based on the specific
use of the landscaped area, which in this case would be a managed lawn.

It is important to follow the instructions provided by the State Department of
Agriculture and Consumer Services for proper collection of samples, including
sample depth and composite sampling. When, where and how the sample is taken
all affect sample quality and the resulting nutrient/amendment recommendations.
Each sample must accurately reflect the variability and conditions in the landscaped
area, and typically soil from a single location cannot do this. Samples should be
taken at the depths of the rooting zone for the plants planned for that location.
Therefore, in planned turf areas the sample does not need to exceed 6 inches.
However, in areas where larger plants are planned, the sample depths should be
between 6 inches and 12 inches. The samples taken at different depths should not
be combined together into a single composite sample. Rather, composite samples
should be soil samples of the same depth at different locations. Each sample should
be a composite of between 15 and 20 locations, thoroughly mixed, and the area
represented by each sample should be relatively uniform. Avoid areas where soil
conditions would be expected to be markedly different from those in the rest of the
landscaped area (i.e. wet spots, severely eroded areas, old building sites, fence
rows, spoil banks, burn row areas, old woodpiles or fire sites. These peculiar areas
should have their own separate sample(s). The sample turn-around time varies
throughout the year with the winter months generally taking longer than the summer
months due to the increased agricultural needs (NCDA&CS, 2008). An example of a
soil analysis report as well as an explanation of soil test results are included as
Appendices 1 and 2 at the end of this BMP.

January 15, 2013 69

Mulching

Mulching around trees and shrubs in a landscaped area, excluding the lawn,
provides temperature protection and moisture retention for the plants as well as
creating an attractive landscape. Some of the primary water efficiency benefits
mulches provide include:

Soil moisture retention, which is then taken up by the plants.
Reduction of moisture lost to the atmosphere from the soil by evaporation (i.e.
10 percent to 25 percent reduction in soil moisture loss from evaporation).
Soil protection from compaction from traffic, as well as from precipitation
striking the soil. Compaction reduces the total pore space in the soil available
to hold water.
Reduction of runoff, which results in holding more water on-site.
Reduction of topsoil erosion. Topsoil often contains more water for plants and
more nutrients than the deeper, underlying soil.
Insulation of the soil below from heat loss in the winter and evenings.
Resistance of rapid warming in the summer and mid-day. This consistent
environment reduces the amount of water lost to evaporation.
Impedes the growth of weeds and other undesirable plants, which compete
for limited water resources. A 2-inch–to-4-inch layer (after settling) is
adequate to prevent most weed seeds from germinating.
The mulched area should include as much of the root zone as possible. For plant
beds, the entire area should be covered with mulch. For individual plants, such as
trees, the mulched area should extend at least three feet from the base of the plant.
It is advisable to pull the mulch between 1 inch and 2 inches from the base of plants
to prevent bark decay. Mulch can be applied year-round. However, the best time to
mulch is late spring after the soil has warmed. Early spring application will delay soil
warming and possibly plant growth. It is not necessary to remove the mulch when
you fertilize. Apply the fertilizer on the mulch. Nutrients will move with the water to
the roots below.

Mulch depth depends on two factors: the moisture holding capacity of the underlying
soil and the type of mulch material used. Sandy soils dry out quickly and often
benefit from a slightly deeper mulch layer of between 3 inches and 4 inches.
However, excessive application of mulch can result in a situation in which roots are
growing in the mulch and not in the soil. Over-mulched plants are easily damaged
when herbicides and fertilizers are applied and during periods of drought stress.
Mulching an area that is poorly drained can further reduce the drainage resulting in
an area permanently saturated, which the selected plants would not be able to
tolerate (NCSU, 2012b).

January 15, 2013 70

Table 3. Mulching estimates to adequately cover a landscaped area with a loamy
surface (top 6 inches) soil (NCSU, 2012b).

There are essentially two distinct categories of mulching products, organic mulches
and inorganic mulches. Organic mulch lacks significant manufacturing in its
production. As such, organic mulch contains only plant materials. Inorganic mulches
often also contain plant material, but may also include many different types of
materials integrated during the manufacturing process. Each has its own advantages
and disadvantages, and its selection should be based upon landscape setting,
anticipated use, maintenance requirements and budget.

Organic Mulch Materials
Many organic materials can be used as mulch. The material should be weed-free,
non-matting, easy to apply, and readily available. Fine particle organic mulch will
form a more complete soil cover than a coarse, loose material. Coarse mulch
material will need to be applied in thicker layers in order to achieve the desired
benefits. Organic mulches decompose with time, releasing small amounts of
nutrients and organic matter to the soil. The layer of mulch should be renewed as
needed to maintain a 2-inch-to-4-inch depth. On previously mulched areas, apply a
1-inch layer of new material every few years.

Some of the best organic materials include pine bark nuggets, shredded hardwood,
pine straw and compost. Pine straw is aesthetically pleasing and will remain in place
better than most other materials. However, pine straw can be a fire danger during
drought conditions. Pine bark nuggets are longer lasting, but can be washed with a
heavy rain. Note that pine bark mulch is primarily used as a soil conditioner and that
pine bark nuggets are used as mulch. Bark used as mulch should contain less than
10 percent wood fiber. Reapplication time should be a consideration; pine straw will
need to be reapplied each year while pine bark may not need to be reapplied for
several years.

January 15, 2013 71

Other organic materials sometimes used for mulch include: wheat straw, shredded
newspaper, peanut hulls, wood chips, sawdust and partially decomposed leaves.
Most of these materials are less expensive than pine straw or pine bark but have
some significant limitations. Any fresh, light-colored, unweathered organic mulch
such as wheat straw, peanut hulls and wood chips will tie up nitrogen during the
early stages of decomposition. Properly composted wood chips can be used as a
long-lasting mulch that weathers to a silver-gray color. Unfortunately, most wood
chip material is sold as a fresh material rather than as a composted or aged
material. The chips decompose slowly, but as they decompose, microorganisms use
nutrients from the soil that might otherwise be available for plant growth. If sawdust
is used, it should be well-aged. Otherwise it will be difficult for water to move into the
soil. Uncomposted sawdust is low in nitrogen and will rob nitrogen from the soil as it
decomposes.

Yard waste, such as grass clippings, leaves and small twigs can be used as mulch
in moderation. The back side of the shrub border or natural area is an ideal place to
dispose of small pruning clippings. Ideally, these materials should be shredded or
composted before applying; however, small amounts can be applied to existing
mulch. Non-shredded leaves and grass clippings can form a thick mat that makes
water penetration nearly impossible.

Organic material that has been stockpiled (in large piles) often goes through
anaerobic (low oxygen, high moisture) decomposition and becomes acidic, with a pH
of approximately 3. This can present a toxicity problem for the plants unless
adequate liming material is provided. Properly composted organic material should
have a pH of between 6.0 and 7.2. Anaerobic decomposition is often a problem with
uncomposted materials such as leaves, grass clippings, wood chips or sawdust due
to its toxic byproducts including methane and alcohol production. A good way of
determining if the mulch underwent anaerobic decomposition is the strong smell of
vinegar, ammonia or sulfur emanating from the mulch when turned. Damage usually
occurs within 24 hours after application of the mulch and will manifest as marginal
leaf chlorosis, leaf scorch, defoliation and/or plant death. Materials such as shredded
newspaper, sawdust and yard waste may contain chemical contaminants that can
harm plant growth.

Inorganic Mulch Materials
Though organic mulch provides good soil water benefits, geotextiles and landscape
fabrics can be used to provide similar results. These materials are especially useful
on areas with significant slopes and are used extensively on newly constructed road
rights-of-way and other recent grading projects. They allow for normal water and
oxygen exchange and prevent the growth of most weeds, while allowing desired
grasses to grow through. The material should be applied on bare soil before or
immediately after planting and held tightly in place by biodegradable staples or other
similar devices. Good growth results have been shown when using a combination of
landscape fabric covered with an organic material. However, a thin layer of soil can

January 15, 2013 72

develop atop the fabric, since these materials provide a semi-permeable covering.
This thin layer of soil can be a haven for weeds, which can use the water before it is
transmitted past the fabric and into the soil. In this situation, using a coarse-textured
mulch, such as pine bark nuggets, will delay the development of this layer.

For comments or questions regarding the Regionally Appropriate Landscaping BMP,
please contact the water efficiency specialist of the Water Supply Planning Branch at
919-707-9005.

References

USDA, 1990. Miscellaneous Publication No. 1475., issued January 1990.
USDA, 2012. National Plant Hardiness Zone Map. Internet address:
http://planthardiness.ars.usda.gov/PHZMWeb/#. accessed February 2012.
NCSU, 2012a. Turffiles: turfgrasses. Internet address:
http://www.turffiles.ncsu.edu/Turfgrasses/Default.aspx. Accessed February
2012.
NCDA&CS, 2008. Soil Testing - Enhancing Land Productivity, Nutrient Use
Efficiency & Environmental Quality.
NCSU, 2012b. Consumer Factsheet – Mulching. Internet address:
http://www.ces.ncsu.edu/depts/hort/consumer/factsheets/trees-
new/text/muching.html. accessed June 2012.
NCSU,2012c.http://cals.ncsu.edu/hort_sci/extension/HorticulturePublicationsT
reeandGroundsCare.php.
Dr. Charles Peacock, NCSU Turf Management Department and Dr. Anthony
Lebude, NCSU Horticulture Department, Personal Communication.

January 15, 2013 73

Appendices

Appendix 1. Example of a NCDA&CS soil analysis report.

January 15, 2013 74

Appendix 2. Explanation of Soil Test Results.

January 15, 2013 75

Rainwater Harvesting, Condensate Reuse and Gray Water Use

Background

The purpose of this BMP is to highlight ways of creating water efficiency through the
use of rainwater harvesting, condensate reuse and/or the use of recycled water for
irrigation or other applicable purposes.

In addition to providing water use efficiency, use of rainwater harvesting methods, such
as cisterns, can also count as stormwater treatment devices. Development projects that
use rainwater harvesting methods for rooftop runoff can receive stormwater reduction
credit. This credit can be used to reduce, or possibly eliminate, other types of
stormwater treatment devices such as wet ponds. This document does not provide
details on the design techniques to achieve stormwater credit but that information is
available in the Stormwater BMP Manual provided by the N.C. Division of Water Quality.
It can be found in Chapter 19, “Rooftop Runoff Management” and is available at
http://portal.ncdenr.org/web/wq/ws/su/bmp-ch19.

Applicability

This BMP is intended for use by a water system (“utility”) concerned with reducing
outdoor irrigation demands on the potable water system.

Calculation of potential savings will depend on regional climate patterns. Rainwater
harvesting and condensate reuse are applicable to industrial, commercial and
institutional (ICI) buildings, while private homes can benefit from rainwater harvesting.
Utilities may benefit by targeting this BMP to help shave peak demand through
customer education. For maximum water-use efficiency benefit, the utility should adhere
closely to the measures described below. Gray water use will not be discussed in this
BMP until the N.C. Division of Water Quality has established an approved gray water
use system as directed by the North Carolina General Assembly.

Description

Rainwater harvesting and condensate reuse (“RWH/CR”) conservation programs are an
effective method of reducing potable water usage while maintaining healthy landscapes
and avoiding problems due to excessive run-off. Using this BMP, the utility provides
customers with support, education, incentives and assistance in proper installation and
use of RWH/CR systems. RWH/CR systems will be most effective if implemented in
conjunction with other water efficiency measures including water-saving equipment and
practices. Rainwater harvesting is based on ancient practices of collecting, usually from
rooftops, and storing rainwater close to its source, in cisterns or surface impoundments,
and using it for nearby needs. ICI users have found it to be cost-effective to collect the
condensate from large cooling systems by returning it into their cisterns as well.
Facilities with large cooling demands will be in the best position to take advantage of
condensate reuse, which due to its quality can potentially be used in landscape

January 15, 2013 76

irrigation, as cooling tower makeup water, or in some industrial processes. The
variability in rate and occurrence of rainfall requires that rainwater or condensate be
used with maximum efficiency. Incentives may include rebates for purchase and
installation of water-efficient equipment.

Several factors should be considered in the design of rainwater harvesting and
condensate reuse systems. System components include the collection area, a first flush
device, a roof washer, storage structure with the capacity to meet anticipated demand
and a distribution system. For above ground structures, design consideration should be
given to maintaining the highest elevation feasible for collection and storage systems for
the benefit of gravity flow to distribution. When using drip irrigation systems, filters are
necessary to prevent particulates from clogging drip nozzles. Regular maintenance of
RWH/CR systems includes changing filter media on a regular basis and cleaning the
first flush filter. The utility should consider providing participants with reminders of
regular maintenance requirements for their RWH/CR systems. Maximum expected daily
demand and knowledge of historical precipitation patterns, including amount, frequency
and longest time between rainfall events, is important in designing the system. The
Rainwater Harvesting: Guidance for Homeowners produced by North Carolina State
University can be used as a resource, as well as technical assistance from professional
installers of equipment for proper design and implementation of RWH systems. To see
the guide, go to
http://www.bae.ncsu.edu/stormwater/PublicationFiles/WaterHarvestHome2008.pdf.

While residential cooling systems are unlikely to provide significant flows of condensate,
ICI installations with large cooling demands can produce significant amounts of
condensate and should be evaluated for the dual RWH/CR system. Large ICI
installations can implement rainwater harvesting (from roofs), as well as capture of
stormwater for irrigation or other non-potable uses. Large buildings that have or need
French drain systems for foundation drain water should also evaluate the potential for
recovery of this resource as well.

The utility should consider sponsoring one or more demonstration sites. Potential
partners include customers with educational missions such as schools, universities,
botanical gardens and museums with large public landscapes.

Although rainwater is recommended for all irrigation uses, it is most appropriate for use
with drip or micro irrigation systems. Utilities implementing this BMP should consider
offering a landscape water-use survey to help customers ensure that RWH/CR systems
are properly designed and sized.

The water-use surveys, at a minimum, should include: measurement of the total
irrigated area; irrigation system checks, review of irrigation schedules or development of
schedules as appropriate; and provision of a customer survey report and information
packet. The utility should provide information on climate-appropriate landscape design
and efficient irrigation equipment and management for new customers and change-of-

January 15, 2013 77

service customer accounts. See the Residential and commercial Landscape Irrigation
BMP for more detail.

Implementation

Programs should consider the following elements:

Retrofit or Rain Barrel Program

Marketing the program to the customer via bill inserts will allow the utility to target
the largest summer peak users first. The utility should consider also approaching
local weather announcers, radio gardening show hosts, and newspaper
columnists for assistance in notifying the public about the program. The program
can be marketed using public/private partnerships with non-profits such as
gardening clubs, neighborhood associations, cooperative extension offices or
with green industry businesses such as rainwater harvesting companies and
local sustainable building groups. Using these partnerships can also be an
effective way to leverage available resources.
Incentives can include rebates for RWH/CR systems, recognition for RWH/CR
systems through signage, award programs, and certification of trained landscape
company employees and volunteer representatives to promote the program.
The initial step in assisting customers with landscape irrigation systems is a
thorough evaluation of the potential water captured by a RWH/CR system.
The water customers who participate in this program will need to maintain and
operate their irrigation systems efficiently. The utility should consider
implementing a notification program to remind customers of the need for
maintenance and adjustments in irrigation schedules and to system filters as the
seasons change.
The utility needs to ensure that RWH/CR system specifications are coordinated
with local building and plumbing codes.
The American Rainwater Catchment Systems Association lists evaluation
training for RWH/CR programs. ICI customers may want to consider performance
contracting as an option for financing retrofitted RWH/CR systems.

New Construction: In addition to retrofitting existing homes and buildings with RWH/CR
systems, a utility may also choose to support new construction. Using this approach, the
utility could:

Adopt ordinances requiring all new ICI properties to install a RWH/CR system
that collects and stores rainwater and condensate from all eligible sources and
distributes it to irrigation and/or a cooling tower make-up system.
Implement an incentive program to encourage builders and owners of new ICI
properties to install a RWH/CR system that collects and stores rainwater and
condensate from all eligible sources and distributes it to irrigation and/or a
cooling tower make-up system. In large ICI buildings requiring cooling towers,
design consideration should be given to returning condensate flows from air

January 15, 2013 78

conditioning coils to cooling tower make-up. It may be effective for this BMP to be
part of a Green Builder-type rating system that also includes WaterWise
landscaping and adequate soil depth.
Implement an incentive program to encourage homebuilders and homeowners to
install a RWH system for landscape use to reduce potable water consumption
from the utility in the summer season.
Adopt ordinances requiring that new homes or multi-unit properties install
plumbing that separately collects and stores rainwater from eligible sources and
distributes the rainwater through a subsurface irrigation system. The rainwater
could be distributed around the foundation of the residence or building or for
other landscape use.

Such programs would need to be carefully coordinated with stormwater collection
programs and meet all applicable regulations for stormwater collection and reuse.

Schedule
Depending on the option(s) selected, the corresponding schedule should be followed.

Incentive Approach: In the first six months, plan the program including stakeholder
meetings as needed. Develop a plan for educating potential homebuyers, developers,
plumbers, green industry trade groups, landscape architects and realtors about this
program. After six months, implement the program.

Ordinance Approach: In the first six months, hold stakeholder meetings to develop the
ordinance. Consider offering incentives for the first year of implementation. Propose the
ordinance or rules to the local city council for approval. Develop a plan for educating
potential homebuyers, developers, plumbers and realtors about this program. After six
months, implement the program.

Scope

To accomplish the goals of this BMP, the utility should do one or more of the following:

Develop and implement an incentive program to encourage RWH/CR in new
multi-unit properties and certain new commercial developments such as office
parks.
Develop and implement an incentive program to encourage RWH/CR in existing
multi-unit properties and certain existing commercial developments such as office
parks.
Develop and implement an incentive program to encourage residential customers
to install rainwater harvesting systems.
Develop and implement an ordinance requiring condensate recovery in new non-
residential construction as applicable.

January 15, 2013 79

Documentation

To track this BMP, the utility should gather and have available the following
documentation for each year of operation:

The number of new RWH/CR developments for which design planning started
after adoption of this BMP.
The number and type of RWH/CR installations completed each year.
The estimated rainwater and condensate use in each RWH/CR installation.
Aggregate water capacity of RWH/CR sites.
The number, type and dollar value of incentives, rebates or loans offered to and
accepted by customers.
Estimated water savings achieved through customer surveys.

Determination of Water Savings

Water savings from a RWH/CR program is determined by water volume harvested and
used to replace other potable water sources. In programs which target new
construction, the water savings should be estimated based upon known water
consumptions for the proposed end use. A number of sources, including other BMPs,
can be helpful in estimating potential water savings. A method for estimating potential
water catchment and a monthly water balance equation for estimating water storage
capacity are:

Storage Capacity: A simple assumption is that up to three weeks may lapse without
significant rainfall. As such, it’s recommended that storage structures are sized to
maintain three weeks’ worth of water use.

More precise methods of estimating needed storage capacity or additional
information for estimating water balance of RWH/CR systems and of accounting
for the variability in seasonal rainfall pattern is available at the Rainwater
Harvesting website of NCSU at
http://www.bae.ncsu.edu/topic/waterharvesting/model.html.

Catchment Potential (gals) = Area x 0.62 x 0.8 x [Rainfall]

Where Area = total area of catchment surface in square feet.
0.62 = coefficient for converting inches per square feet to gallons
(unit conversion from 7.48 gallons per cubic feet).
0.8 = collection efficiency factor.
0.9 Rainfall = average rainfall in inches.

Note: Median and lowest recorded rainfall can also be calculated in order to
develop a range of expected values.

January 15, 2013 80

For condensate recovery, storage should be based on the anticipated maximum
holding time before the condensate is reused for irrigation or other purposes.

Cost-Effectiveness

The costs of this BMP to the utility will include administrative program management
costs and incentives to customers for implementing rainwater harvesting or condensate
reuse projects. Depending on program design and whether project inspections are
required, staff labor costs should range from $50-to-$100 per project. Marketing and
outreach costs range from between $20 and $50 per project. Administrative and
overhead costs range from 10-to-20 percent of labor costs. For rain barrel installations,
labor costs range from $8 to $12 per project and warehouse storage costs may be an
additional consideration.

For comments or questions on the Rainwater Harvesting and Condensate Reuse BMP,
please contact the water efficiency specialist of the Water Supply Planning Branch at
919-707-9021.

References

American Rainwater Catchment Systems Association. http://www.arsca-usa.org/
First American Rainwater Harvesting Conference Proceedings, Gerston, J. and
Krishna, H., editors, ARCSA, August 2003.
Rainwater Harvesting Design and Installation, Save the Rain [e-mail]
Texas Guide to Rainwater Harvesting, Texas Water Development Board and
Center for Maximum Potential Building Systems, 2nd Edition, 1997.
http://www.twdb.state.tx.us/publications/reports/RainwaterHarvestingManual_3rd
edition.pdf
Waste Not, Want Not: The Potential for Urban Water Conservation in California,
Pacific Institute, November 2003.
http://www.pacinst.org/reports/urban_usage/waste_not_want_not_full_report.pdf
Rainwater Harvesting at North Carolina State University
http://www.bae.ncsu.edu/topic/waterharvesting/
http://www.bae.ncsu.edu/stormwater/PublicationFiles/WaterHarvestHome2008.p
df

Case Studies for Rainwater Harvesting and Water Reuse

North Guilford Middle and High School Greensboro, North Carolina

Background

January 15, 2013 81

Greensboro is in Guilford County in north central North Carolina and has a population of
263,000 people. North Guildford Middle and High School have a total student population
of 2,344. The schools were constructed in 2007. The design of the rainwater harvesting
infrastructure for the school took place at the time of the school design.

The goal for the project was to collect enough water to flush the toilets in the facility and
also to irrigate the school grounds. This goal was met on completion of the project.

Cistern size – 360,000 gallons
Water saved per year – 4 million gallons
Cost – $500,000 or $1.39/gallon
Cost Savings – 4 million gallons at a cost of $1.50/gallon which = $6,000/year

The project’s design was driven by location, number of students and faculty, weekly and
seasonal schedule of the schools, available collection area, plumbing fixture efficiency,
rain water supply and other factors.

The rainwater harvesting project has also been used as an educational resource for the
school. Other system benefits include the elimination of stormwater runoff from the site
and the reduction of utility bills.

For more details on this project, go to
http://innovativedesign.net/files/Download/NMS%2085x11.pdf.

University of North Carolina at Chapel Hill Chapel Hill, North Carolina

Background

Chapel Hill is in Orange County, where water is provided by Orange Water and Sewer
Authority. The University of North Carolina at Chapel Hill has a population of more than
28,000 students.

The facilities service division of the University of North Carolina noted the limited local
water supplies and recent droughts. This highlighted the need to reduce water
consumption across the UNC campus. Planning and construction of cisterns and the
use of reclaimed water have reduced the overall need for potable water. In 2009,
operations started on a reclaimed water system that further reduced potable water
consumption by more than 200 million gallons per year.

The first project the university undertook was using reclaimed water to irrigate some
athletic fields and to help cool the chilled water plants. In 2009, all five chilled water
plants, which use 200 million gallons of water per year, were using reclaimed water as
their water source.

January 15, 2013 82

In 2012, a 350,000-gallon cistern is being constructed in the former UNC Bell Tower
parking lot. Water from the roof of the new Genome Sciences building will be stored
here and then used to irrigate Kenan Stadium and flush the stadium’s toilets. Other
cisterns installed in front of Hanes Hall and beneath the parking structure at Boshamer
Stadium collect water from the roofs of these structures and this water is then used to
irrigate the baseball field at Boshamer Stadium. Overflow irrigation is collected and
recycled into the cistern.

UNC has worked closely with OWASA on this process. The reclaimed water used on
the campus is highly treated wastewater that is pumped to the university after being
treated at Mason Farm Sewage Treatment Plant.

UNC continues to look for opportunities to use reclaimed water and harvested
rainwater. The expansion of the campus to the north will be designed using the
information gained from these existing projects.

For information on home rainwater harvesting, please see the following links:

http://sustainability.unc.edu/Initiatives/WaterManagement.aspx
http://www.bae.ncsu.edu/topic/waterharvesting/

For more information at UNC’s reclaimed water use, please see the following links:

http://www.owasa.org/whatwedo/reclaimed-water.aspx
http://sustainability.unc.edu/Initiatives/WaterManagement.aspx

Case Study for Rainwater Harvesting

North Carolina Aquarium at Pine Knoll Shores, NC

Background

The design and construction of this rainwater harvesting cistern took place after the
aquarium was built.

The goal for the project was to prevent stormwater runoff from the site. The collected
water is used to irrigate the greenhouse and plant nursery and for maintenance
purposes such as deck and vehicle washing. This goal was met on completion of the
project.

Cistern size – 18,000 gallons held in six tanks
Water saved per year – 4 million gallons
Purpose – stormwater runoff abatement and conservation of municipal water

January 15, 2013 83

The rainwater harvesting project has also been used as an education resource for the
aquarium. A major benefit of the system is that stormwater runoff on the site has been
reduced and utility bills have been lowered.

For more details on this project, go to
http://www.nccoastaltraining.net/uploads/Rainwater%20-%20KATHY%20DeBUSK.pdf.

January 15, 2013 84

Water Conservation Pricing

Background
Water conservation pricing is the use of rate structures to encourage efficient use and
discourage the waste of water. Water conservation pricing provides economic
incentives to customers to use water efficiently. It is possible to achieve full-cost pricing
of water while using water conservation pricing principles.

Appropriately designed and implemented water conservation pricing can:

Reduce water consumption while limiting negative impacts on utility revenues.
Reward customers for making cost-effective changes in water appliances and
water use behavior through greater savings.
Target inefficiency in discretionary water uses such as landscape irrigation.
Delay costly and perhaps unnecessary water supply expansion projects.
Avoid financial hardships on low-income customers.

Applicability

This BMP is intended for all water systems (“utility”) wishing to send price signals to
customers that will encourage water conservation. A water system may have already
accomplished this BMP if it currently has a conservation price structure that has
resulted in water conservation at the desired rate. The objective of the desired rate
should be to show both a declining usage measured on a per customer or per capital
basis, and to achieve a lower seasonal peaking factor.

Description

Water conservation pricing is the use of rate structures to provide for the financial
security of a water system and encourage efficient use and discourage the waste of
water. Conservation pricing structures often increase unit prices with increased
consumption (increasing block rates), charge higher rates during high-use seasons
(seasonal rates), and/or impose water shortage response plan-linked temporary
surcharges during water shortage periods. The goal of conservation pricing is to use
price signals, based on the extra costs necessary to meet peak demands caused by
elective usage, to encourage more efficient long-term usage patterns by customers. For
example, high water use imposes greater costs to the utility in terms of capacity and
should be charged higher rates. Using this BMP, water systems should consider
establishing rates based on long-run marginal costs, or the cost of adding the next unit
of capacity to the system. An established cost of service methodology should be
followed whenever rates are developed or proposed for change. For a typical system,
where elective usage is not a significant portion of total usage, or total usage for a given
customer class (i.e. residential), less drastic pricing signals or price differentials,
combined with appropriate tier cut-offs, can be highly effective.

January 15, 2013 85

This BMP addresses conservation pricing structures for retail customers. For water
systems supplying water and sewer service, the principles contained in this BMP can be
applied to the pricing of both services. The way to support tiered rates for residential
customers is to avoid having the sewer rates based on a capped level of water flows, so
the sewer rate continues to reinforce the higher water rates as customers reach higher
usage levels. A capped sewer rate structure for residential customers does serve to
undermine some tiered structures. Water systems that supply water but not sewer
service should make good faith efforts to work with sewer agencies so that these sewer
agencies do not provide sewer services using a pricing structure that conflicts with the
objectives of the water pricing structure.

For conservation pricing structures to be effective, customers should be educated on
the type of rate structure the water system uses and be provided feedback through the
water bill on their water use. Most customers do not track water use during the month
because of the difficulty and inconvenience of reading the meter. When customers read
their bills, they often just look at the total amount billed. Conservation pricing has the
advantage of providing stronger feedback to the customers. Customers will see a larger
percentage increase in their water bill that will appear disproportionate to their increase
in water use. Water systems should move toward using billing software that allows
customers to compare water use on their bill with average water use for their customer
class, as well as the household’s water use for the last 12 months. The rate structure
should be clearly explained on the water bill, including information about the block sizes
and rates if applicable.

It is not recommended that a minimum monthly water allotment be included in the
minimum bill. The American Water Works Association’s (AWWA) M1 Manual notes that
minimum charges are often considered to work counter to conservation goals and are
unfair to those who use less than the monthly minimum. A customer in a small house
with all efficient fixtures and appliances may be able to consume less than 1,000 gallons
per month and may be inclined to increase their water use if a minimum bill includes
charges for at least 1,000 gallons.

Implementation

Conservation pricing is best if introduced over time and in multiple steps. Some of these
steps include:

Implementing reporting procedures.
Monitoring and documenting usage patterns for various sectors of users.
Educating consumers on the value that the utility provides.

Successful adoption of a new rate structure may necessitate developing and
implementing a public involvement process in order to educate the community about the
new rate structure. The new rate structure should adhere to all applicable regulatory
procedures and constraints. If the conservation pricing structure to be implemented is
substantially different from current practices, then a phased-in approach may be

January 15, 2013 86

appropriate.

Public involvement in the development and implementation of conservation rates can
help assure that the goals of the conservation pricing initiatives will be met and
accepted by local constituents. Public meetings, advisory groups and public
announcements are among ways to generate public involvement.

Development of conservation-based rate structures is more than just a selection of
arbitrary usage breaks for increasing block rates. The process requires consideration of
the effect on water demand and water system finances.

Basic rate structure considerations should include rates designed to recover the cost of
providing service and billing for water and sewer service based on actual metered water
use. Conservation pricing should provide incentives to customers to reduce average
and peak use. The conservation rate structure can be designed to bring in the same
amount of revenue, often termed revenue neutral, as the previous rate structure.

Only one form of conservation pricing is required for this BMP. Conservation pricing is
characterized by one or more of the following components:

Rates in which the unit price ($/1,000 gallons) increases as the quantity of water
used increases are called increasing block rates. A water system should analyze
historical records for consumption patterns of its customers. The first block
should typically cover the amount of water for normal household health and
sanitary needs. Rates for single family residential and other customer classes
may be set differently to reflect the different demand patterns of the classes. To
increase the effectiveness of this rate structure type, the additional revenue from
the higher blocks should be associated with discretionary and seasonal outdoor
water use.

o The price difference between blocks is important in influencing the
customer’s usage behavior. Price increases between blocks should be no
less than 25 percent of the previous block. For maximum effectiveness,
the price difference going from one block to the next highest block is
recommended to be at least 50 percent of the lower block. For example if
the third block of a four block rate structure is $4 per 1,000 gallons, the
fourth and final block should have a rate of at least $6 (50 percent higher)
per 1,000 gallons. Any surcharge based on water usage should be
included when calculating these percentages.

Rates based on individual customer water budgets, in which each customer is
charged according to an increasing block rate structure in which each block size
is determined by that individual customer’s water needs, often called budget-
based rates. Water budget rate structures are based on the philosophy that each
customer has a unique amount of water that is needed for public health and is
adequate for all necessary uses (drinking, cooking, washing, etc.), and uses

January 15, 2013 87

above that amount are considered discretionary and charged as excessive
(irrigating lawns, washing cars, etc.). Typically, there should be an indoor and an
outdoor component to a water budget.

o For residential rates, the indoor component should be based upon
estimates of the household’s average wintertime use. The outdoor
component is based upon landscape area. For business customers, water
budgets will often be based on historical average for indoor water use, and
the outdoor component based on landscape area.

o To qualify as a conservation rate, water systems that implement water
budget based rate structures typically begin excess rate charges for
landscaped areas at no more than 80 percent of average annual reference
evapotranspiration replacement rates.

Rates based upon the long-run marginal cost, or the full-cost of providing water.

o Conservation pricing should use a consumption charge based upon actual
gallons metered. The base charge (“minimum bill”) for service should be
based on the fixed costs of providing that service which generally includes
administrative and meter-reading and billing charges, plus a portion of
debt service and other capacity costs. Including an allotment for water
consumption in the minimum bill does not promote conservation. It is
recommended that if an allotment is included, it should not exceed 2,000
gallons per month. Water systems including a water allotment in the
minimum bill should consider eliminating that allotment within five years of
implementing this BMP.

o Adoption of lifeline rates neither qualifies nor disqualifies a rate structure
as meeting the requirements of this BMP except that the minimum bill
guidelines should be followed. Lifeline rates are intended to make a
minimum level of water service affordable to all customers. Lifeline rates
should not be applicable past the first 2,000 gallons of use.

o The water system should educate customers about the rate structure and
use billing software that allows the customer to compare water use on his
or her bill with average water use for his or her customer class, as well as
his or her household water use for the last 12 months. The rate structure
should be clearly explained on the water bill. The water system may want
to consider implementing the Public Information BMP in conjunction with
this BMP in order to provide customers information on how to reduce their
water bill under a conservation rate structure.

o In order to set up an effective irrigation rate, all water used through
irrigation meters should be charged at least at the highest block rate, if

January 15, 2013 88

applicable. If you charge for water and sewer, keep in mind that by
installing an irrigation meter, the customer will no longer be paying
wastewater rates for that volume of water, and the total price for high units
of water will decrease. Charging irrigation rates at or above the highest
block rate for indoor water allows you to specifically target this type of
discretionary water use. The water system must adopt rules or ordinances
requiring customers serviced after July 1, 2009, with in-ground irrigation
systems to install separate irrigation meters, as required by G.S. 143-
355.4, and should consider retrofitting customers serviced prior to July 1,
2009, with separate irrigation meters. It is important for these customers to
have a separate irrigation meter, so it is more apparent how much water
they are using for irrigation.

Schedule

Water systems pursuing this BMP should begin implementing it according to the
following schedule:

The water system should follow applicable regulatory procedures and adopt a
conservation-oriented rate structure within the first 12 months. The conservation
rate structure should be designed to promote the efficient use of water by
customer classes. Additional suggestions and guidance on setting up
conservation-oriented rate structures are provided in SWIC-Recommended
Guidance for North Carolina Utilities Attempting to Support Water Conservation
in the Long‐Term through Rate Structure Design and Billing Practices available
at http://www.ncwater.org/Water_Supply_Planning/Water_Conservation/SWIC_
11-22-10.pdf.

At least annually, a water system should review the consumption patterns
(including seasonal use) and revenue and expense levels to determine if the
conservation rates are effective. The system should make appropriate, regular
rate structure adjustments as needed.

At least annually, the water system should provide information to all customers
on the conservation rate structure.

If not already in place, within five years or when the water system changes billing
software (whichever is sooner), the water system bill should provide customers
with their historical water use for the last 12 months and a comparison of water
use with the other customers in their customer class. The rate structure should
be clearly indicated on the water bill.

Scope

To accomplish this BMP, the water system should implement a conservation-oriented
rate structure and maintain its rate structure consistently with this BMP’s definition of

January 15, 2013 89

conservation pricing and implement the other items listed in the section above.

Documentation

To track this BMP, the water system should maintain the following documentation:

A copy of its legally adopted rate ordinance or rate tariff that follows the
guidelines of this BMP.
Billing and customer records which include annual revenues by customer class
and revenue derived from commodity charges and fixed charges by customer
class for the reporting period.
Customer numbers and water consumption by customer class at the beginning
and end of the reporting period.
If a water allotment is included in the minimum bill, a cumulative bill usage
analysis similar to Figure 1 (C-3) in the AWWA M1 Manual. (See below.)3
A copy of the educational materials on the conservation rate sent to customers
for each calendar year this BMP is in effect.
An account of all system costs as identified in the Implementation Section.
A water system bill meeting the parameters and schedule in the Schedule
Section.
Optional provisions:
o A copy of the rule or ordinance requiring all customers after July 1, 2009,
to install separate irrigation meters for in-ground irrigation systems.

o Implementation and schedule for an irrigation meter retrofit program for in-
ground irrigation customers prior to July 1, 2009, or a feasibility analysis
for such a program.

3 Principles of Water Rates, Fees, and Charges (M1 Manual), AWWA, 2000.

January 15, 2013 90

Figure 1. Development of cumulative billed usage residential class-annual
number of bills and usage – 5/8-in. meters.

Determination of Water Savings

The effect of conservation pricing implementation is specific to each water system.
Elasticity studies have shown an average reduction in water use of between 1 percent
and 3 percent for every 10 percent increase in the average monthly water and sewer
bill. When implementing a conservation pricing structure, consideration should be given
to the following factors:

Average price is better than marginal price in explaining the quantity of water
demanded by customers.
Customers are typically unaware of their block rates.
The water savings that accompanies a switch to a block rate may be lost in
subsequent years if water rates are not increased to keep up with rising costs.
Customers do not understand the link between water use and sewer billing. As
such, customers do not tend to factor sewer prices into their water use decisions.
Many studies and reports indicate price elasticities for the Southeastern United
States of approximately -0.30, which translates into a reduction of 3 percent in
water use for a 10 percent increase in price.

The water system should focus on a rate design that sends the appropriate price signal
to customers to reduce discretionary water use. To remain effective, the rates need to
be analyzed annually and adjusted periodically to account for rising costs and changes
to the system’s capital plan and operations.

January 15, 2013 91

Cost Effectiveness

The effectiveness of a water-conserving rate structure depends on how well it is
designed and implemented. Each utility has a unique mix of single-family residential
profiles and other customers and circumstances to consider. A cost effectiveness
analysis can be done by comparing the cost of implementing this BMP to the anticipated
water savings from adopting the conservation rate structure. The costs for implementing
a rate structure change are associated with managing a stakeholder involvement
process and costs for consultant services, if needed, and there may be one-time costs
associated with developing and adopting ordinances and enforcement procedures.
There may be significant costs associated with reprogramming the billing system if this
step is necessary.

Other Considerations

While conservation pricing is a valuable tool to ensure the utility has adequate water for
its customers, the utility must also ensure that the rates are adequate to provide for the
day-to-day operations of the water system and the funds necessary for long-term
system repairs and replacement.

The June 2012 Journal of AWWA, contained an article by H. Edwin Overcast entitled “Is
it time for water utilities to rethink pricing?” In the article, Mr. Overcast discussed how
utilities face declining per capita consumption as a result of conservation measures,
unpredictable weather patterns, and implementation of increasing-block rate structures.
Faced with generally declining use per customer, water utilities are confronted with the
unfortunate fact that revenues may not be sufficient to cover the cost of operation,
maintenance, and debt service needed to keep the system of reservoirs, treatment
plants, pumps, pipes, valves, fire hydrants and meters running.

One solution that Mr. Overcast discusses is recovering fixed capital cost associated with
local infrastructure (distribution system-related fixed cost) through fixed monthly charges
and recovering traditional volumetric-related cost through volumetric charges. This
option, called straight fixed-variable rate design has been adopted by other types of
utility providers. Shifting customer cost from volumetric charge to fixed charge would
likely require a phase-in period of a few years in order to mitigate the impact of such
changes on the bills of the smaller-volume users.

For comments or questions regarding the Water Conservation Pricing BMP, please
contact the water efficiency specialist of the Water Supply Planning Branch at 919-707-
9021.

References

Principles of Water Rates, Fees, and Charges (M1 Manual), AWWA, Sixth
Edition 2012.
Residential End Uses of Water, AWWA Research Foundation, 1999

January 15, 2013 92

Setting Small Drinking Water Systems Rates for a Sustainable Future, EPA
Office of Water, January 2006.
Water Price Elasticities for Single-Family Homes in Texas, Texas Water
Development Board, August 1999.
Designing, Evaluating, and Implementing Conservation Rate Structures,
California Urban Water Conservation Council, July 1997.
Effectiveness of Residential Water Price and Nonprice Programs, AWWARF,
1998.
Is it time for water utilities to rethink pricing?, Journal AWWA, June 2012
SWIC-Recommended Guidance for North Carolina Utilities Attempting to Support
Water Conservation in the Long‐Term through Rate Structure Design and Billing
Practices, http://www.ncwater.org/Water_Supply_Planning/Water_Conservation/
SWIC_11-22-10.pdf, November 2010.
North Carolina Water & Wastewater Rates and Rate Structures Report,
University of North Carolina Environmental Finance Center,
http://www.efc.unc.edu/projects/NCWaterRates.htm, March 2012.

January 15, 2013 93

Case Study for Water Conservation Pricing

Orange Water and Sewer Authority (OWASA) Carrboro, North Carolina

Background

OWASA was established in 1977 to consolidate the water and sewer facilities and
operations previously owned and operated by the University of North Carolina at Chapel
Hill, and Carrboro in southeastern Orange County. OWASA is governed by a nine-
member board of directors appointed by the two towns and Orange County. It now
serves about 80,050 people through nearly 21,000 customer accounts.

OWASA is financially self-sustaining and funded primarily by customer revenues from
monthly water and sewer charges and from one-time service availability fees (system
buy-in charges) paid by new customers when they connect to the water, sewer and/or
reclaimed water system. Revenues remaining after the payment of current operating
expenses and debt service are used to pay for rehabilitation, replacement,
improvement, and expansion of the utility systems. Unlike other local government
utilities, OWASA’s revenues cannot be used for non-utility related purposes.

OWASA does not receive any tax revenues, but it has received some limited state and
federal grant funds to offset certain capital expenditures.

In 2001, OWASA completed a comprehensive water and sewer master plan which
identified the need for water and wastewater system infrastructure capacity expansions
to meet projected increases in local water and sewer service demands. At that time, the
peak-day water demand ratio was about 165 percent, and the ratio of wastewater flow
during the maximum month to the flow during the average month was about 140
percent.

In May 2002, OWASA implemented a seasonal water rate structure to replace the
previous year-round uniform block rate structure. The utility put the seasonal water rate
structure in place to reduce peak-day demands, defer the need for future capacity
expansions, and promote greater conservation of the community’s essential water
resources. Coincidentally, the new seasonal rate structure was followed by the drought
of record, which reduced the remaining supply in OWASA’s Cane Creek Reservoir and
University Lake to an all-time low of less than 32 percent of total storage.

The seasonal rate structure remained in place for all OWASA customers until May
2007, when OWASA implemented a five-tiered increasing block rate structure for
individually-metered residential customers. Seasonal rates remained in place for all
other customer classes. OWASA also adopted a new system of water rate surcharges
under which water rates would increase as the severity of a declared drought increases.
As occurred in 2002, implementation of these new conservation pricing policies was
followed by an extreme drought.

January 15, 2013 94

As other utilities have experienced, OWASA’s usage charge revenues declined as
water sales dropped. OWASA offset a portion of the revenue reductions by deferring or
eliminating certain operating, maintenance and capital expenditures. However, rate
increases were required to pay for increasing expenses while ensuring financial stability
in the face of reduced water sales. The increased rates sent an even stronger pricing
signal to OWASA customers, and have likely further contributed to the substantial
demand reductions across all customer classes. For a typical residential customer billed
for 4,000 gallons of water and sewer service each month, OWASA’s combined charges
have increased from $34.12 a month in 2001 to $70.66 a month in 2012. That is a
compounded rate of increase of about 6.25 percent a year.

OWASA’s conservation rates, together with education and outreach efforts,
implementation of a new reclaimed water system, and installation of water efficient
fixtures by many OWASA customers, have resulted in a dramatic reduction in raw water
pumping requirements and average-day use by OWASA’s customers.

Since 2002, OWASA’s customer base has increased by about 11 percent. However,
average-day water sales declined by more than 25 percent during that same period,
while the accounted for water ratio has remained constant. The average billed water
use per metered connection (including both drinking water sales and reclaimed water
sales) has declined from about 470 gallons per day in 2002 to about 350 gallons per
day in 2011.

There have been similar reductions in the peak demands on OWASA’s water and
wastewater infrastructure. During the past five years, the average peaking ratios for the
water plant and wastewater plant have declined to less than 145 percent and 120
percent, respectively.

This has enabled OWASA to revise its capital improvements plan to defer plans for
expansions of its water and wastewater treatment plants. It has also reduced the
amount of energy and chemicals needed to meet the community’s water needs. The
reductions in drinking water demands have helped reduce the community’s risk to
extended droughts.

All these benefits will be important as OWASA strives to meet local water and sewer
service demands in a more sustainable manner.

For more details about OWASA’s water conservation pricing, go to
http://www.owasa.org/client_resources/customerservice/owasa%20is%20well%20posit
ioned%20for%20the%20future--%202011%20owasa%20customer%20letter.pdf.

January 15, 2013 95

Full-Cost Water Pricing

Background
Historically, many utilities have based their water rates on the operation and
maintenance costs of water treatment only and have not been able or willing to include
the cost of the replacement of the water treatment, storage and distribution systems.
Those replacements will come in future years. While this method has resulted in lower
water rates for the system’s customers, historically, water rates have not acknowledged
the full-cost of providing water service. Water systems, like all other man-made
systems, have a useful life expectancy. Water system management must incorporate
the cost of upgrading, maintaining and replacing this infrastructure into their water
pricing.

Full-cost pricing is when the water system (“utility”) charges customers for the actual
cost of water service, including explicit recognition of the level of reinvestment needed
on an on-going basis to refurbish, replace or upgrade existing assets. This will
guarantee the utility the revenue needed to cover at a minimum the costs of operation,
treatment, storage, distribution and for past and future investments. Full-cost pricing is a
pricing structure for drinking water and wastewater service, which fully recovers the cost
of providing that service. Full-cost pricing should be implemented in an economically
efficient, environmentally sound and socially acceptable manner. Full-cost pricing
should also promote efficient water use by customers.

Water systems must base their rates on the true costs of providing water in order to
have the resources available for proper system maintenance and to pay for current
capacity as well as future upgrades and replacements. Availability of state and federal
funds to assist with this work are limited, therefore utilities must be prepared to fund
these upgrades and replacements using their own resources. The sooner a system’s
water rates are based on full-cost pricing, the sooner the needed upgrades and
replacements can be completed. With proper planning, the work can be completed prior
to any major system failures. This planning should not only prevent system failure, but
also prevents sudden, major rate increases in the future that would be needed to repair
the failing systems.

Full-cost pricing:

Is essential for sustainability and economic efficiency; accurate pricing
encourages efficient production and use.
Ensures rates are sufficient and that there is a stable source of funds and
reserves.
Ensures a water system’s financial health, enabling the utility to provide safe
water now and in the future.
Provides better information to customers on the total costs of water service,
and the true value of the product they are purchasing.
Helps customers recognize the value of the service and be more aware of

January 15, 2013 96

their water use.

According to North Carolina’s 2008 Drought Bill (Session Law 2008-143), Section 9-
G.S.143-355.4(b)(1), water rate structures should be adequate to pay the cost of
maintaining, repairing and operating the system. That includes reserves for payment of
principal and interest on indebtedness incurred for maintenance or improvement of the
water system during periods of normal use and periods of reduced water use due to
water conservation measures. In addition, water rates should be sufficient to pay for
future capital costs, whether up-front or through debt service of future loans.

Once the full-cost (the true cost of providing water) has been established, the next step
must be to determine how this cost will be distributed to the system’s customers. Often
the cost of water has not been established at a level that encourages the efficient use of
available water. In fact, in some cases the use of decreasing block rates have actually
resulted in less incentives for water conservation.

Applicability

This BMP is intended for all water systems wishing to recover the full-cost of supplying
water to their customers and to send price signals to customers that will encourage
water conservation. A water system may have already accomplished this BMP if it
currently has a price structure that recovers the true cost of supplying water.

Description

Full-cost pricing is the use of rate structures to provide for the financial security of a
water system. Using this BMP, water systems should consider establishing rates based
on the revenue requirements of the system based on specific considation of the level of
investment needed to maintain, refurbish, replace and upgrade the existing assets to
preserve the long-term capacity and efficiency of those assets or the cost of adding the
next unit of capacity to the system. An established cost of service methodology should
be followed whenever rates are developed or proposed for change.

This BMP addresses pricing structures for retail customers. For water systems
supplying water and sewer services, the principles contained in this BMP can be applied
to the pricing of both services. Water systems that supply water, but not sewer service
should make good faith efforts to work with sewer agencies so that sewer services are
not provided using a pricing structure that conflicts with the objectives of the water
pricing structure.

For full cost pricing structures to be effective, customers must be educated on the
reasons for the system’s rate structure. An explanation of the rate structure should be
included with each customer’s water bill.

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Determining Full-Cost Pricing

Full-cost pricing for water utilities is based on the cost of maintaining, repairing and
operating the system. This pricing includes reserves for payment of principal and
interest on indebtedness for the maintenance or improvements, and future capital
expenses such as expected debt service. Essentially, full-cost pricing is an effective
way to achieve long-term sustainability, and if done correctly, can address equity
concerns, provide increased financial flexibility and stability, can be more cost effective
over the long term, and can provide better cost justification for tiered rate structures.

There are many ways to account for your system’s costs. You should pick one that
works well with your current accounting system and that supports the rates you plan to
use. Any approach must fully account for all costs related to the provision of water. To
estimate these costs, review records of the last year’s expenditures and account for
changes to operating costs and capital projects expected to be completed during the
next five years to twenty years. All utilities should create a capital improvement plan that
estimates future capital costs in each year for the next five years to twenty years, and
incorporate it into full-cost pricing. A ten to twenty year capital planning horizon is good,
but financial planning should take into account, but be limited to a five year forecast.
Beyond five years, any rate or financial forecast is typically unreliable, at best.

Cost components are calculated annually, and can be categorized into three different
areas: personnel costs, non-personnel costs, and capital reserves (debt service set-
aside and reserves for future capital costs).

Personnel Costs:

Salaries and wages for administrative and operations and maintenance
personnel.
Labor costs for services required in the operations of the system including:
o Treatment
o Monitoring
o Maintenance
o Testing
o Meter reading and billing operations
o Customer Service
o Legal and Accounting
o Engineering, if applicable
o Management
o Benefits for personnel including:
 Medical Insurance
 Retirement
 Vacation
 Bonuses

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Non-personnel Costs:

Cost for office operations including:
o Space rentals
o Mortgages
o Office supplies
o Computer and lab equipment
o Contracts
o Cost for utilities including:
 Electricity
 Natural Gas
 Communications
 Water purchased from other systems

When estimating future utility costs and revenues, you will likely need to forecast the
total annual water use. Examine your billing data to determine the total annual sales as
well as your records for water withdrawals each year to predict future demand.

Other direct costs to operate the system including:
o Chemicals
o Leased equipment
o Routine maintenance and repair costs at facility sites, and for equipment
and vehicles
o Insurance costs covering buildings, vehicles, and personnel.
o Costs for professional services such as accounting, legal and engineering
if not done in-house
o Permitting costs
o Costs for career development and certification renewals for personnel.
o Costs for residuals disposal
o Costs for security and surveillance

Indirect costs to operate the system including:
o Transfers to the City or County for financial, personnel or other services
provided

Capital Reserves and Debt Service Payments:

Sufficient revenue must be allocated to make principal and interest payments on current
and future indebtedness, and for capital expenses that will be paid in cash. Debt service
excludes mortgages, but covers investments for capital projects needed to maintain the
safe operation of your system. The timing of investing in system assets is an integral
component to determining sufficient reserves, and should be addressed in your Capital
Improvement Plan. Projects for which capital reserves and debt service set-asides
should be allocated can include:

January 15, 2013 99

Rehabilitation and replacement of existing assets, including pipes, pumps,
control systems, tanks, etc.
Expansions and upgrades of the treatment and distribution systems.
Interconnections to other systems.
Source water development and protection.
Any other interest owed by the system.

Managing system assets should be addressed in your Asset Management Plan. Asset
management can be a lengthy process. It involves following five steps that will help you
determine how much money should be placed in a reserve fund each year. Asset
management is a part of your Capital Improvement Plan. The five steps are to:

Develop an inventory of all of your assets by listing them and collecting
information on the condition, age, service history and useful life of each one.
Prioritize your assets to help you decide how best to allocate your limited
resources. Priority should be based on the asset's importance (“criticality”) to the
operation of your system and the protection of public health. Other factors to
consider include how soon you will have to replace the asset and whether other
pieces of equipment can perform the same function (redundancy).
Determine the costs of asset rehabilitation and replacement, which should
include an analysis of both capital cost and life cycle cost.
Decide what percentage of these costs you will cover with cash (i.e., money you
set aside in the reserve account), and how much you will cover through debt. In
some cases, it may make more financial sense to borrow money to cover the
initial cost of the project and pay those costs over a longer period of time, even
with interest payments.
Review and revise your plan. Your Asset Management Plan should be used to
help you shape your Capital Improvement Plan. It should evolve as you gain
more information and as your system’s assets and utility’s priorities change.

Following this process will help you determine how much money must be generated
through water rates to fulfill your capital improvement plan.

Determine the costs associated with operating, maintaining, rehabilitating, replacement,
upgrading, expanding and repairing your system. Then, tally those costs to determine
the full-cost pricing of water. These full cost data should be reviewed annually and
adjustments made to future budgets as appropriate.

Determining Revenue Requirements:

After determining your costs, you will need to calculate how much revenue you collect
each year to offset these costs. Revenue sources can include:

Water sales
Fees and service charges
Tap or connection charges

January 15, 2013 100

Interest
Grants
Transfer payments from other funds (this practice is not recommended for any
public enterprise fund)
Private investments
Other sources

Now that you have a better sense of your costs, revenues and reserves, you are ready
to determine how much revenue will be needed from customers each year to cover any
shortfalls. To cover the full cost of doing business (i.e., to meet the goals of full-cost
pricing), the amount of revenue that you receive from your customers should equal your
total annual costs including your annual debt service payments minus any subsidies or
transfer payments you receive.

You will need to calculate your required revenue annually, taking into account your
budget for the upcoming year. In addition, you will need to think beyond your needs for
the next year. Variable costs, changes in subsidies, debt service costs, and other
factors can affect your required revenue from year to year. Estimating costs for the next
several years based on your fixed costs, operating expenses, asset rehabilitation and
repair needs, and existing debt service can help avoid a significant gap between future
revenue and costs. Once you have a better idea of actual costs, you can revise your
estimates accordingly.

Now that you know your costs and the amount of money you need to collect from your
customers to fully cover those costs, you are ready to start thinking about how you are
going to collect this money. One way is through setting appropriate rates for water used
by your customers that will account for your full cost.

Implementation

Full-cost pricing is best introduced over time and in multiple steps. Some of these steps
include:

Evaluating all the costs associated with the utility and incorporating adequate
accounting programs.
Implementing reporting procedures.
Monitoring and documenting usage patterns for various sectors of users.
Educating consumers on the value the utility provides.
Planning for reserves necessary to fund the maintenance and upgrades required.
Planning for the future and forecasting revenue requirements.
Determining the actual cost of service.
Required Customer Revenue = (Total Annual Costs) – (Subsidies) – (Transfer
Payments) – (Other Revenues)

January 15, 2013 101

Implementing an Asset Management Plan.
Evaluating and optimizing all aspects of the system (treatment, operations,
metering, billing, distribution, debt instruments, etc.).

A rate structure that allows the utility to be self-sustaining is a balanced approach to
utility management. Given the constraints discussed above, the structure of cost-based
rates will vary by community. In the long run, full-cost pricing is imperative for every
utility.

Successful adoption of a new rate structure may necessitate developing and
implementing a public involvement process in order to educate the community about the
new rate structure. The new rate structure should adhere to all applicable regulatory
procedures and constraints. If the conservation pricing structure to be implemented is
substantially different from current practices, then a phased-in approach may be
appropriate.

Public involvement in the development and implementation of rates can help assure that
the goals of the full-cost pricing initiatives will be met and accepted by local
constituents. Public meetings, advisory groups and public announcements are among
ways to generate public involvement.

Schedule

Water systems pursuing this BMP should begin implementing it at the earliest possible
date. Although the implementation of full-cost pricing will likely have a significant impact
on a system’s water rates, phasing in this change can avoid more severe impacts on
the system’s customers. Improper planning will result in system failures and the inability
to provide an adequate and safe water supply. When this happens, utilities may be
forced to implement water rates that far exceed those that could have been
implemented earlier with sufficient planning.

The implementation of full-cost pricing will take a major commitment by the system’s
management and its customers. The easy path is to continue to ignore the problem and
leave the pending system failures and resulting major rate increases for others.

The key to full-cost pricing is to explain the need for the proposed rate structure and the
consequences of inaction. The educational process starts with the system’s
management and staff and then quickly moves on to the system’s customers.

Scope

To accomplish this BMP, the water system must determine the full cost for the operation
of the system and set water rates at a level to help meet these current and future needs.
Management must also maintain these funds for their intended purposes and not divert
them for other needs.

January 15, 2013 102

Documentation

To track this BMP, the water system should maintain the following documentation:

A copy of its legally adopted rate ordinance or rate tariff that follows the
guidelines of this BMP.
Billing and customer records that include annual revenues by customer class and
revenue derived from commodity charges and fixed charges by customer class
for the reporting period.
A copy of the education materials on full-cost pricing sent to customers for each
calendar year this BMP is in effect.
An account of all system costs.
An Asset Management Plan, last updated within the past two or three years.
A Capital Improvement Plan, last updated within the past two or three years.
A water system bill meeting the parameters and schedule in the Schedule
Section.

Other Considerations

While Full-Cost Water Pricing is a valuable tool to help ensure that the utility will have
adequate water available for all its customers, the utility must also ensure the rates are
adequate to cover the day-to-day operation of the water system and the system’s long-
term system repairs or replacement.

The June 2012 Journal of the AWWA, contained an article by H. Edwin Overcast titled
“Is it time for water utilities to rethink pricing?” In the article, Overcast discussed how
utilities face declining per capita consumption as a result of conservation measures,
unpredictable weather patterns, and implementation of increasing-block rate structures.
Faced with generally declining use per customer, water utilities are confronted with the
unfortunate fact that revenues may not be sufficient to cover the costs of operation,
maintenance and debt service needed to keep the system of reservoirs, treatment
plants, pumps, pipes, valves, fire hydrants and meters running.

One solution Overcast discusses is recovering fixed capital cost associated with local
infrastructure (distribution system-related fixed cost) through fixed monthly charges and
recovering traditional volumetric-related costs through volumetric charges. This option,
called straight fixed-variable rate design has been adopted by other types of utility
providers. Shifting customer costs from volumetric charges to fixed charges would likely
need to be phased in over several years in order to mitigate the impact of such changes
on the bills of the smaller-volume users.

For comments or questions regarding the full-cost pricing BMP, please contact the
water efficiency specialist of the Water Supply Planning Branch at 919-707-9021.

January 15, 2013 103

References

Principles of Water Rates, Fees, and Charges (M1 Manual), AWWA, 2000.
Residential End Uses of Water, AWWA Research Foundation, 1999
http://www.allianceforwaterefficiency.org/residential-end-uses-of-water-study-
1999.aspx.
Setting Small Drinking Water Systems Rates for a Sustainable Future, EPA
Office of Water, January 2006.
http://www.epa.gov/ogwdw/smallsystems/pdfs/guide_smallsystems_final_ratesett
ing_guide.pdf.
Water Price Elasticities for Single-Family Homes in Texas, Texas Water
Development Board, August 1999.
http://www.twdb.state.tx.us/rwpg/rpgm_rpts/96483189.pdf
Designing, Evaluating, and Implementing Conservation Rate Structures,
California Urban Water Conservation Council, July 1997.
Effectiveness of Residential Water Price and Nonprice Programs, AWWARF,
1998.
http://www.waterrf.org/ProjectsReports/ExecutiveSummaryLibrary/90747_737A_
profile.pdf
Is it time for water utilities to rethink pricing?, Journal AWWA, June 2012

SWIC-Recommended Guidance for North Carolina Utilities Attempting to Support
Water Conservation in the Long‐Term through Rate Structure Design and Billing
Practices,
http://www.ncwater.org/Water_Supply_Planning/Water_Conservation/SWIC_11-
22-10.pdf, November 2010.
Town of Cary Elasticity Analysis, prepared by Keith Bishton and Dave Green-
ftp://199.72.17.76/Engineering/IntWatResMP/Appendices/Appendix_C_Price%20
Elasticity%20TM_05042007.pdf.

January 15, 2013 104

Water Purchasing Contracts

Applicability

This BMP is intended for all water systems (“utility”) that purchase or sell water. A utility
may have already accomplished this BMP if it has a written contract to purchase or sell
water.

Description

In order for many water systems (“utilities”) to meet the water supply needs of their
customers, they must contract with other utilities to supply the needed water. When
these contracts are developed and formalized, it is important that the seller and the
buyer have a complete understanding of the requirements and expectations of the
contract.

Some of the obvious contract requirements that should be documented are the volume
of water committed for sale or purchase, how the cost of the water will be determined,
the length of the contract, if the contract is renewable and if the water will be used on a
regular or emergency basis. The contract should also indicate if the buying system is
required to comply with all of the selling system’s water use restrictions when
implemented. Open contracts in which a utility verbally agrees to sell water to another
utility should be avoided. It is important for both utilities to maintain contractually agreed
upon water volumes to facilitate good planning practices. Utilities that list contract water
volumes on their local water supply plans will also facilitate a quicker review and
approval of their plan.
Another important part of the contract is the conditions that will be placed on the buyer
concerning efforts to implement BMPs for water conservation.
In accordance with Session Law 2011-374, all local water supply plans must include a
plan for the reduction of long-term per capita demand on potable water. Since the utility
selling the water must implement BMPs to meet this requirement, it would be
appropriate for the sales contract to require the buying utility to also implement BMPs to
reduce potable water demand. The implementation of BMPs will help reduce the
amount of water used and reduce the cost of the water to the utility.
Some of the BMPs that should be considered for inclusion in the contract are
requirements for:
Water Audits
Water Loss Abatement
Metering
Retrofitting of Residential Fixtures
Public Information Program
School Education and Outreach
Retrofitting Irrigation Systems

January 15, 2013 105

Regionally Approved Landscaping
Rainwater Harvesting, Condensate Reuse and Gray Water Use

Implementation

Utilities pursuing this BMP should begin implementing it according to the following
procedure:

Review all the wholesale water purchases and sales contracts.
Use the sample contract enclosed (sample contracts may also be obtained from
North Carolina League of Municipality) to negotiate with the purchaser or seller
on price and volume.
Decide which water efficiency practices will be asked of the purchasing entity.

Schedule

To accomplish this BMP, the utility should do the following:

The utility should develop procedures for implementation of this BMP in the first
six months. The procedures should include an annual, or at least a five year
review, of all information related to the established contract.
The contract participants should develop procedures for making changes to and
maintain a proactive review of the contract.

Scope

To accomplish this BMP, the utility should adopt a contract within six months after
implementation, and maintain a copy of the contract at the town or city hall and water
treatment plant. The town or city manager, as well as the water system
manager/Operator in Responsible Charge (ORC) should be well-versed with the terms
of the contract.

Documentation

To track this BMP, the utility should maintain the following documentation:

A copy of its legally adopted contract should be held at town or city hall, as well
as at the water treatment plant.
A review should be made at regular intervals (annually, or at least every five
years) of the contract and its applicability.
A copy of any changes or modification to the contract should be officially
amended by adoption.

January 15, 2013 106

Determination of Water Savings

Water savings can be tracked through performance of annual water audits and
implementation of other BMPs to conserve water. Water savings for the selling and
buying utility should be realized as a result of contract conditions requiring the
implementation of BMPs.

Cost Effectiveness

The cost effectiveness of implementing this BMP can in part be determined based on
the effectiveness of BMPs enacted by the buying utility. Although a true cost-
effectiveness analysis cannot be determined without a measure of water savings prior
to establishing a contract, the point at which this BMP is implemented can serve as the
benchmark year, and successive years that reveal a reduction in water used can be
used to calculate cost savings by the selling and buying utility. This BMP is an integral
part of a best management practice program, and should be considered fundamental to
a successful water efficiency program. In addition, by implementing this BMP, the
selling utility can assure the needed water supply to the buying utility.

For comments or questions regarding the Water Purchasing Contracts BMP, please
contact the water resources specialist of the Water Supply Planning Branch at 919-707-
9035.

Additional Inter-local Water Agreement Tips

The UNC Environmental Finance Center has developed guidelines for the crafting of
inter-local agreements. These guidelines provide extensive information on items to
consider when drafting water supply contracts. Those items can include service area
and annexation, which party is responsible for maintaining the meter, water quality
issues, water pressure requirements, how and when water rates will change, re-selling
water to other systems, nonrevenue water, and inflow & infiltration (I&I). These
guidelines can be found at:
http://www.efc.unc.edu/publications/2009/water_partnership_tips.pdf.

January 15, 2013 107

Purchase Water Contract Sample

State of North Carolina
County of ___________

WATER SERVICE UTILITY AGREEMENT

THIS AGREEMENT, made and entered into this ____ day of _________, 20__ by and
between the ____________, a North Carolina (Authority, City, County, Private Entity,
Sanitary Districts, Town, etc.), hereinafter referred to as “PROVIDER and the
______________, a (Authority, City, County, Private Entity, Sanitary Districts, Town,
etc.), hereinafter referred to as “CUSTOMER”;

WHEREAS, the CUSTOMER wishes to procure a source of treated drinking water
suitable for re-sale to it citizens, residents and industries; and

WHEREAS, the PROVIDER has treated drinking water available for sale to
CUSTOMER; now, therefore;

WITNESSETH:

That in consideration of, and subject to, the terms and conditions hereinafter set forth,
the parties covenant and agree as follows:

1. Purpose. The purpose of this Agreement is to set forth the terms and conditions
by which CUSTOMER shall purchase, and PROVIDER shall sell, treated drinking
water for re-sale by CUSTOMER to its constituent citizens, residents and
industries.

2. Purchase and Sale. CUSTOMER agrees to buy from PROVIDER and
PROVIDER agrees to sell and deliver to CUSTOMER water on the terms and
conditions hereinafter set forth. The water being sold by PROVIDER shall at all
times meet the standards for safe drinking water as promulgated at 40 CFR,
sections 140 through 143, pursuant to the terms of the Safe Drinking Water Act
at 42 USCA, all as amended from time to time, which standards have been
adopted by the State of North Carolina Department of Environment and Natural
Resources, under which standards PROVIDER produces water at its water
treatment plant.

3. Term. This Agreement shall be effective from and after, __________ and shall
continue and remain in full force and effect until and including ____________ (__
years). Either party hereto may, at any time prior to the beginning of the year
before the expiration of this Agreement, give notice to the other of its desire to
renew this Agreement and upon the giving of such notice, the parties hereto shall
negotiate in good faith with reference to a renewal of this Agreement.

January 15, 2013 108

4. Construction of Water Line Appurtenances. Following permit approval by the
Public Water Supply Section of the North Carolina Division of Water Resources;
the CUSTOMER at its own expense shall connect its water system to that of the
PROVIDER in accordance with permitting and sound engineering practices as
mutually agreed upon by both parties regarding pumping capacity, size and type
of materials, workmanship and location. The water line, pumps (if required) and
connections shall be referred to hereinafter as “The Pipeline”. The metering
point(s) shall be mutually agreed upon by both parties and installed by
CUSTOMER at its own expense per PROVIDER specifications and permit
approval.
5. Ownership and Maintenance. The CUSTOMER will own and maintain the
Pipeline up to the metering point(s). The metering point(s) will be owned and
maintained by the PROVIDER. The CUSTOMER will be responsible for the cost
of meter replacement when necessary.

6. Maximum Usage Limit. The CUSTOMER shall have the privilege to receive water
from the PROVIDER water system with a maximum daily consumption not to
exceed _________ gallons per day.

7. Treated Water Charge. The purchase rate for treated water from PROVIDER to
CUSTOMER will be $_________ per thousand gallons.

8. Invoicing. Bills for water supplied hereunder shall be rendered and paid monthly.

9. Water Related Restrictions. CUSTOMER shall be subject to PROVIDER’s water
conservation/restrictions policies in effect at the time of execution of this
Agreement and as they may be amended. Accordingly, CUSTOMER’s water
supply may be preempted in the same manner and fashion as all other water
users of PROVIDER.

10. Long-term Per Capita Reduction.
In accordance with Session Law 2011-374, all local water supply plans must
include a plan for the reduction of long-term per capita demand on potable water.
Since the PROVIDER must implement Best Management Practices (BMPs) to
meet this requirement, it is required for the CUSTOMER to also implement BMPs
to reduce potable water demand. The PROVIDER will supply a list of BMPs they
have implemented to the CUSTOMER as measures to implement or the
Customer must demonstrate to the Provider that comparable BMPs have been
previously implemented or will be implemented on an established schedule.

11. Interruption of Service. Whenever practicable, PROVIDER will notify
CUSTOMER with at least twenty-four (24) hours notice prior to any interruption of
service necessary due to planned maintenance, repairs or other foreseeable
extent of interruption. When interruptions of service are due to emergency
situations, which cannot be foreseen, the affected party will be notified as soon
as possible as to the estimated duration and extent of the interruption.

January 15, 2013 109

12. Amendment or Termination. This Agreement may be amended or terminated
only by an instrument in writing executed by both parties hereto.

IN WITNESS WHEREOF, the undersigned municipal corporations have caused this
Agreement to be executed on their behalf by individuals duly authorized, all as of the
day and year first above written.

PROVIDER__________

___________________________
Mayor or Manager of PROVIDER

ATTEST:

____________________________
PROVIDER Clerk
PROVIDER___________

_____________________________
Mayor or Manager PROVIDER

ATTEST:

____________________________
PROVIDER Clerk
STATE OF NORTH CAROLINA
COUNTY OF _____________

I, __________________, a Notary Public of the aforesaid County and State, so hereby
certify that ___________________, personally appeared before me this day and
acknowledged that (s)he is the (Deputy) PROVIDER Clerk of the PROVIDER of
_________ and that by authority duly given and as the act of the PROVIDER, the
foregoing instrument was signed in its name by its _____________, sealed with its
corporate seal and attested by (him or her) as its (Deputy) PROVIDER Clerk.

WITNESS my hand and Notarial Seal, this the ____ day of ____________ 20__.

____________________________
Notary Public

My Commission Expires: _____________

January 15, 2013 110

STATE OF NORTH CAROLINA
COUTNY OF ____________

I, __________________, a Notary Public of the aforesaid County and State, so hereby
certify that ___________________, personally appeared before me this day and
acknowledged that (s)he is the (Deputy) PROVIDER Clerk of the
PROVIDER_________ and that by authority duly given and as the act of the municipal
corporation, the foregoing instrument was signed in its name by its ___________,
sealed with its corporate seal and attested by (him or her) as its (Deputy) PROVIDER
Clerk.

WITNESS my hand and Notarial Seal, this the ____ day of ____________ 20__.

____________________________
Notary Public

My Commission Expires: _____________