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HomeMy WebLinkAboutItem 6d. Approve use of funding for Recycled Water User Site Improvements Item 6d Department: Utilities Cost Center: 601 For Agenda of: 9/19/2023 Placement: Consent Estimated Time: NA FROM: Aaron Floyd, Utilities Director Prepared By: Mychal Boerman, Utilities Deputy Director - Water SUBJECT: APPROVE USE OF FUNDING FOR RECYCLED WATER USER SITE IMPROVEMENTS RECOMMENDATION 1. Authorize the use of up to $172,647.45 in available funding from the Recycled Water System Retrofits CIP (Project #2000573) to make recycled water and water distribution system protection site improvements on qualifying private properties; and 2. Find that the use of this funding does not constitute a gift of public funds and fulfi lls a public purpose; and 3. Find the action categorically exempt from the California Environmental Quality Act. REPORT IN BRIEF The proposed project consists of the City-funded replacement of existing irrigation tubing and the installation of backflow devices on existing infrastructure on certain private properties in order to minimize the potential for recycled/non -potable water and potable water cross-connections and associated public health risks, as explained in detail in this report. Staff is bringing this recommendation to the City Council because the California Constitution prohibits the giving or lending of public funds to any person or entity, public or private. Exceptions to this provision allow for expenditures/disbursements that serve a public purpose. Staff is recommending that the City Council authorize Capital Improvement Plan funding to implement the project and find that the use of public funds does not constitute a gift and that the project would fulfill a public purpose. POLICY CONTEXT The current Recycled Water Master Plan was adopted by the City in March 2017. Implementation of the recommended improvements is consistent with the General Plan Water and Wastewater Element (WWE) because the recycled water site improvements would occur within the Water Reuse Master Plan area and would facilitate the continued use of recycled water.1 1 Refer to Water and Wastewater Element Figure 2: Water Reuse Master Plan Area & Distribution System Page 35 of 323 Item 6d California Constitution Article XVI Public Finance, § 6 prohibits the giving or lending of public funds to any person or entity, public or private. This prohibition includes aid, the making of any gift, pledging of credit, and payment of liabilities and encompasses the giving of monetary funds and any “thing of value.” Exceptions to this provision allow for expenditures/disbursements that serve a public purpose . (County of Alameda v. Janssen, 16 Cal. 2d 276 (1940). Implementation of the recommended action would address public health and safety issues related to potential potable and non-potable water cross-connections, serve a public purpose benefitting the City as a whole, and be consistent with the General Plan as WWE Goal A.7.1.1 calls for the City to “maximize recycled water for all approved purposes” and Policy A.7.2.1 states that “the City will make available recycled water to substitute for existing potable water uses as allowed by law and to supply new non - potable uses.” Substitution of recycled water for potable water for irrigation purposes preserves potable water supplies in local reservoirs, which benefits the entire City. Implementation of the proposed improvements would also support WWE Goal A 2.1 to ensure a long-term, reliable water supply to meet both current and future water demand associated with development envisioned by the General Plan. DISCUSSION Background The City’s recycled water program began making its first deliveries for landscape irrigation in 2006. In its initial years, recycled water sites included large commercial complexes and City parks. As the City has expanded, the recycled water program has also expanded, today encompassing over 50 accounts serving a diverse customer base. These acco unts include City parks, Laguna Lake Golf Course, business parks, and common areas within single and multi-family developments. Landscaping outside of commonly-owned residential areas is not served by recycled water. Today the City uses approximately 300 acre-feet of recycled water each year, which amounts to approximately five percent of the City’s total water use. As the City has expanded its use of recycled water to additional and more diverse users, staff have identified that current State codes regula ting the use of recycled water could be improved to further mitigate the potential risk of cross -connection between potable water and recycled water systems. A cross-connection occurs when an unapproved water supply (such as recycled water or well water that does not meet drinking water standards) is connected to a potable water supply, allowing non -potable water to enter the City’s drinking water system or a home or business. Within the City, the most likely sources of a cross-connection would be between the City’s drinking water system and recycled water system or a privately owned well.2 2 The County of San Luis Obispo is the agency responsible for private well permits and associated testing and monitoring requirements. The use of privately owned wells is r egulated by City Municipal Code 13.04.240. Page 36 of 323 Item 6d Backflow Device Installation Current State codes, which are the basis for the City’s engineering plan approval for recycled water sites, require that parcels that are served by both potable water and recycled water have backflow devices installed to protect the site from potential cross - connection. However, these codes and the City’s Engineering Standards and Specifications do not specifically require that potable water sites adjacent to those using recycled water be protected with backflow devices. Given the proximity of potable water lines to recycled water lines, the possibility exists that at some time in the future a homeowner, resident, or gardener might make a cross-connection between the two irrigation systems. As many new residential developments have large areas where recycled water lines run adjacent to potable water lines at the boundary of the two properties, thereby presenting a risk of cross-connection, it is in the best interest of the general public for the protection of public health if potable sites adjacent to those using recycled water are required to be equipped with backflow devices if staff determine the risk of cross-connection is present. As these potable sites are not directly served by recycled water and receive no individual benefit from the use of recycled water versus potable water, and because there is presently no state or local requirement for private installation of backflow devices in this situation, staff believe that the financial responsibility for the installation of these devices and annual testing costs should be carried by the City. S taff have also determined that properties being served by recycled water and properties adjacent to areas where recycled water is used are not the primary beneficiaries of the use of recycled water and do not receive an unproportional amount of benefit from the use of this resource. Staff have made this assessment based on the fact that the City as a whole benefits from the use of recycled water by preserving potable water supplies in local reservoirs, consistent with the General Plan. All work performed by the City to install backflow devices on identified private properties will be done pursuant to a written right of entry agreement and liability waiver on a form satisfactory to the City Attorney. Drip Irrigation Tubing Current State codes require that drip irrigation tubing for recycled water be constructed of solid purple material or black material with a purple stripe. After managing recycled water sites for the past 17 years, staff have determined that black drip tubing with a purple stripe does not provide a strong enough visual indication that recycled water is being used in a drip line. This is often exacerbated by the purple stripe being installed facing downward toward the soil or being faded by sunlight over time. Photos showing the comparison are provided on the following page. Page 37 of 323 Item 6d The City’s current Engineering Standards and Specifications require the following: “In areas where recycled water will or could be used, all tubing shall be purple for use with recycled water” (Drip Irrigation Standard 8660), which is a stricter standard than State code. However, there are landscaped areas in the City’s recycled water use area that were established using the black tubing with a purple stripe, rather than solid purple tubing, creating a situation where potential cross-connection could occur due to misidentification of the irrigation water source (potable vs. recycled water). Staff a re requesting City Council’s approval to fund and implement the replacement of existing black tubing with a purple stripe with solid purple tubing at recycled water sites where there is a potential for cross-connection to occur. These replacements would be specifically focused on recycled water use areas adjacent to parcels utilizing potable water for drip irrigation. Implementing the tubing replacement would protect public health and safety and mitigate the potential for non-potable recycled water entering the City's water distribution system, which would protect the City’s potable water supply and benefit the City as a whole. Engineering Standard and Municipal Code Changes California Code states that “the water supplier shall protect the public water sup ply from contamination by implementation of a cross-connection control program. The program, or any portion thereof, may be implemented directly by the water supplier or by means of a contract with the local health agency...” The program shall include but not be limited to Figure 1. Black with purple stripe tubing Figure 2. Solid purple tubing Page 38 of 323 Item 6d “the provisions of backflow protection by the water user at the user’s connection or within the user’s premises or both.”3 In addition, County Public Health Environmental Health Services Division, in its capacity as the contractor for the City, has the authority under County Code Section 8.30.040(5) which states: “Notwithstanding any other provisions of this section, on any premises where the environmental health services division determines that a special hazard exists, the public water supply shall be protected by such approved backflow prevention assembly as designated by the environmental health servi ces division.” Furthermore, as provided by these existing regulations, the County Public Health Department has determined that the City has the authority to exercise professional judgment in determining specifically which sites are defined as being in close proximity to common area reclaimed water irrigation systems to ensure the safety and purity of the public water supply. Staff have updated internal plan review processes to ensure that solid purple drip tubing is designated on plans for future development sites to minimize risk of cross-connection. In coordination with the Public Works Department, staff have drafted updated engineering standards (subject to Council approval in the first half of 2024) to ensure that sites adjacent to areas using recycled water are identified during the plan review process and equipped with backflow devices. In the meantime, staff is recommending that the City complete work on properties that are currently adjacent to areas using recycled water to install backflow devices on those properties to ensure that inadvertent cross-connection does not contaminate the City’s potable water system. This work will protect the City’s water system while also complying with County Public Health Department requirements. While Staff have the authority to require the installation of a backflow device, based on their professional judgment, as authorized by the California and County Codes, Staff intend to return to the City Council at a future date for consideration of a Municipal Code update including more clear language regarding backflow device installation and testing requirements within the City. Extent of Installations and Drip Tube Replacements Staff are currently conducting an audit of all recycled water sites to identify locations where purple-stripe drip irrigation tubing should be replaced with all-purple tubing and where backflow devices should be installed. Several sites have been identified, including the Avila Ranch and San Luis Ranch developments, where protection of public heal th could be further improved by these actions. Staff have currently identified 24 parcels where backflow devices could be installed and believe that more si tes (including, but not limited to, sites within the Avila Ranch and San Luis Ranch developments) wi ll be identified as the audit continues. At this time, Avila Ranch and San Luis Ranch developments are connected to potable water for irrigation use until these issues and potential for cross-connections are resolved. 3 California Title 17 Public Health, Division 1 State Department of Health Services and State Water Resources Control Board, Chapter 5 Sanitation (Environmental), Subchapter 1 Engineering (Sanitary) Group 4 Drinking Water Supplies, § 7584. Responsibility and Scope of Program. Page 39 of 323 Item 6d Other Potential Cross-Connection Issues Upon completion of recycled water site audits and any necessary site modifications, staff requests utilization of any remaining funding to conduct similar modifications to sites within the City that are located adjacent to properties where similar cross-connection and public health issues have the potential to occur, and staff has determined additional protection measures are warranted. Some examples of this scenario include potable water sites adjacent to properties using a private well for irrigat ion purposes and areas where contaminant4 remediation is necessary. Installation of a backflow device on a property adjacent to a site posing these and similar potential scenarios would protect the City’s water supply from potential cross-connection contamination in the event of an unauthorized connection .5 Ensuring prevention of non- potable and possibly contaminated groundwater from getting into the City's water distribution system would protect the City’s potable water supply and thereby benefit the City as a whole. Public Engagement Staff developed this proposed plan after discussions with developers who are constructing new housing projects where these issues have been identified, such as Avila Ranch and San Luis Ranch. Staff have not yet conducted fo rmal engagement or communication with homeowners as City Council approval is needed before this funding is utilized to resolve identified issues. If authorized, Staff will conduct outreach and coordination with larger project developers and individual property owners. CONCURRENCE The Community Development Department concurs with the contents and recommendations within this report. All work performed by the City to install backflow devices on identified private properties will be done pursuant to a written right of entry agreement and liability waiver on a form satisfactory to the City Attorney. In addition, the County Public Health Environmental Health Services Division has determined that the City has the authority to exercise professional judgment in determining specifically which sites necessitate the installation of a backflow prevention assembly to ensure the safety and purity of the public water supply. 4 Contaminants including but not limited to perchloroethylene (PCE) and/or Per- and polyfluoroalkyl substances (PFAS) 5 The City’s Engineering Standards and Specifications require backflow prevention on all service connections that pose a potential threat to health and safety of the community, in cluding but not limited to areas served by private wells (Engineering Standards and Specifications, Uniform Design Criteria 1010, 6.1.3 Cross Connections). This applies when a site is connected to the City’s water distribution system for potable water, while using a private well for irrigation (for example). Page 40 of 323 Item 6d ENVIRONMENTAL REVIEW The proposed actions are categorically exempt from the California Environmental Quality Act (CEQA), pursuant to State CEQA Guidelines Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction) because the projects will be limited to the replacement of existing irrigation tubing and the installation of backflow devices on existing infrastructure serving existing developments and developments under construction. The actions would not result in an expansion of use or increase in the capacity of the existing infrastructure, which would retain the same purpose of providing water to a property within the City. FISCAL IMPACT Budgeted: Yes Budget Year: 2023-24 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost Water Fund - Recycled Water System Retrofit CIP (2000573) $172,647.45 $172,647.45 $0 $5,000 Total $172,647.45 $172,647.45 $0 $5,000 The 2021-23 Financial Plan Supplement (2022-23 Adopted Budget) identified $200,000 for recycled water system retrofits. Staff is requesting that the City Council authorize the use of remaining funding from this Recycled Water System Retrofit CIP account. The balance of this account is $172,647.45 and staff requests utilization of all available funding for site improvements as described in this report. Because staff have not completed a systemwide audit, total project costs are not yet defined ; however, it is anticipated that all existing deficiencies can be addressed with the available project budget. Annual backflow testing is estimated to cost $50 to $75 per device and backflow device installation is expected to have a one -time cost of approximately $1,000 per device. Should the City Council approve the use of the requested $172,647.45 for infrastructure improvements, staff estimate ongoing costs of approximately $5,000 per year to conduct backflow device testing in accordance with State requirements, which will be requested in the 2024-25 budget supplement. Page 41 of 323 Item 6d ALTERNATIVES 1. The City Council could decide to require the property owner to fund above- mentioned improvements. This is not recommended, as the City residents as a whole benefit from the improvement to public health protection resulting from these modifications and not the specific property in question. While the authority exists via State Code for the City and Cou nty to require the identified improvements, the intention of this program is to deliver recycled water to preserve potable water sources, protect public health, and comply with State and local codes, for the benefit of the community as a whole. Furthermore, requiring the property owner to fund the improvements would result in an unanticipated financial burden on homeowners. 2. The City Council could elect to not move forward with the recommended improvements. This is not recommended, as these minor modifications to recycled water sites and properties adjacent to areas served by recycled water or served by a private well will improve the protection of public health and reduce the likelihood of a cross-connection. Page 42 of 323