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HomeMy WebLinkAbout03/03/1992, C-7 - WATER SUPPLY STATUS UPDATE/EXITING MANDATORY CONSERVATION IIII MEETING DATE: ► pi�� City Of San «.IIS OBISPO March 3, 1992 mango COUNCIL AGENDA REPORT MN NUMBER/I I FROM: William T. Hetland,,`' PREPARED BY: Ron Munds Utilities Director Water Conservation Coordinator SUBJECT: WATER SUPPLY STATUS UPDATE/EXITING MANDATORY CONSERVATION CAO RECOMMENDATION: Adopt a resolution rescinding the allocation and surcharge components of the 15% mandatory conservation program, to be effective for all water billing dates after March 3, 1992. DISCUSSION At the August 20, 1991 City Council meeting, the Council adopted Water Operation Plan Action Levels to guide entering and exiting mandatory water conservation. The total storage required to end mandatory water conservation was identified as 28,100 acre feet. With the February rains and subsequent available water supply, the total reservoir storage is over 29,000 acre feet, exceeding the amount specified to end the mandatory program. Adoption of the attached resolution would end the allocation and surcharge components of the 15% mandatory water conservation program. Because of the complex impacts of dismantling the entire program, staff will be coming to Council with a two-phase approach. Phase 1 includes the actions identified with this report, in which Council has the opportunity to end the water allocation and surcharge components of the mandatory program. Phase 2 will be presented later this month. That report will address the steps needed to systematically dismantle the remaining components of the mandatory program, and will outline recommendations for the continuing program, the future direction of the water conservation program, and staffing requirements to achieve these goals. This report focuses on two major topics: (1) the City's current and projected water supply; and (2) a brief identification of the future issues to consider in eliminating mandatory water conservation. CURRENT AND PROJECTED WATER SUPPLY The City's reservoir storage as of February 20, 1992, was 29,481 acre feet, exceeding the action level of 28,100 acre feet for departing mandatory conservation. Total reservoir storage for the City is 45,630 acre feet; storage is currently at 65% of that figure. The rainy season which ends in April could add to the current storage, but since Salinas can only add approximately 2,000 acre feet before it spills and Whale Rock is very slow to add to storage, it is not likely that storage will change by more than an additional 3,000 to 4,000 acre feet this year. C - 17 _ 1 MY Of San LAS OBISPO MNN&WMA� COUNCIL AGENDA REPORT 40 Exiting Mandatory Conservation Page 2 The Reservoir Storage Curve (Attachment A) is part of the City's Annual Water Plan analysis. It is a model to estimate the City's reservoir storage .based on historical water use, reservoir data and available groundwater supplies. The model is used to forecast the City's water supply position and to make certain water policy recommendations. The curve has been updated to reflect the City's current storage. The model predicts current water storage to last until the late spring of 1996, under a set of worst case conditions. Total storage is approximately at the same level that the City was in early 1987, but the storage at Salinas reservoir accounts for a much higher percentage of the total current storage than was the case in 1987. This is significant as evaporation affects Salinas storage more dramatically, impacting the steepness of the projected storage curve. If drought conditions return next winter, the curve predicts that the City may again enter mandatory conservation in April, 1993. However, a return to normal rainfall patterns next year would increase reservoir storage, especially at Whale Rock. This would continue to pull the City out of the drought and would decrease the necessity of again implementing mandatory water conservation program. The current increase in reservoir storage �e not influence the City's safe annual yield. Therefore, the City's building moratorium will continue to be in effect. New building permits will only be issued under the retrofit program. New sources of supply must be developed to lift the existing building moratorium. EXITING MANDATORY CONSERVATION PROGRAM-ISSUES TO CONSIDER Elimination of mandatory water rationing and the associated allocations and surcharges creates a number of other issues that need to be addressed. These issues are briefly summarized below and will be presented for Council action later this month. 1. Water Rates - In April of each year, staff reviews the rate structure and the amount of revenue that it generates to meet current budget requirements. Any recommended changes to the mandatory water conservation program ("MWCP") will be reflected in the rate analysis. These changes or modifications to the rate structure will be consistent with current Council policy for establishing utility rates. 2. Phase Out of Hotline Staff - The water conservation hotline answers the phone and responds to customer questions regarding allocations, surcharges, and water bills. It is anticipated that it will be necessary to maintain this capability for a period of time as people will have questions regarding their billing and termination of the MWCP. Staff will return to Council with a recommendation on how long this phase out will take. C-0 I��w►► ��IIIIIII�p�N°�9IUIN city Of San L.aIS OBISPO Norms COUNCIL AGENDA REPORT Exiting Mandatory Conservation Page 3 3. Water Conservation Program Debriefing - It is HISTORY OF WATER CONSERVATION PROGRAM suggested that staff take some time to debrief our The Mandatory Water Conservation Program has been current MWCP with the extremely successful in achieving the City's goal of water conservation staff. reducing water consumption. Overall consumption has The purpose of the averaged 43% to 46% of 1987 consumption levels for the debriefing is to evaluate last 24 months. the effectiveness of the past program and identify 25% Mandatory Program - April, 1989 problem areas and Mandatory water conservation was first implemented in potential revisions. 1989 at the level 25% reduction from 1987 base year Realizing that the City may consumption. At that time, average consumption per experience MWCP within a single family household was 25 units per billing period. short period of time, if the The ceiling was set at 40 units. drought continues, it may be beneficial to rewrite the 35% Mandatory Program - July, 1990 current water conservation Mandatory conservation at the 35% level was approved to system. be implemented in June 1990. The program included enforcement of certain water waste actions and a system 4. Assumed Responsibilities of of surcharges for excessive water use. The ceiling was the Water Conservation set at 25 units. Staff - Over the past two years, the water 15% Mandatory Prooram - April, 1991 conservation staff workload The 35% mandatory program was relaxed to a 15% has varied and staffing mandatory program following the March, 1991, rains. City levels have been adjusted Council adopted the program on April 15, 1991, keeping i accordingly. In addition, place surcharges and the Water Waste Municipal Codes. the water conservation staff The ceiling was set at 35 units. has assisted other departments with some of their workload Fr9� 1 HISTORY OF MANDATORY WATER requirements. Those CONSERVATION include: a) Finance Department - answering questions regarding utility billing and utility bills; b) Planning/Building Divisions - assisting in zoning code enforcement and retrofit inspection program; c) Water Division - assisting in compliance with the new copper and lead regulations. A decision will have to be made how these additional workload responsibilities will be handled in the future. c- - °1���H►�illlllllll���ui►���U city of San Lacs OBISPO i0MGm COUNCIL AGENDA REPORT Exiting Mandatory Conservation Page 4 5. Landscape Deferrals - Over the past two and one-half years, landscape projects have been deferred due to the drought. It will now be necessary to follow up on those deferrals to make sure that the landscape projects are implemented in accordance with the City's landscape requirements. 6. Dalidio Wells - The City's agreement for use of the Dalidio Wells has a termination clause that goes into effect when our reservoirs reach 66% capacity. Since storage is at that level, it will now be necessary to remove our well equipment, including the large carbon treatment tanks, from that site, or to renegotiate our contract with the Dalidio family. 7. Records Retention - The water conservation staff has accumulated a significant amount of census data and water use records under this program and a decision needs to be made as to their value and what our long-term records retention policy should be. 8. Repeal of Mandatory Water Conservation Ordinance - The ordinance includes water waste codes which Council may elect to keep as part of the ongoing program. 9. Long Term Sustained Water Conservation Program - While the present mandatory water conservation program will end, the community's emphasis on long term water conservation will continue. We need to decide the content and process of such a program. FISCAL IMPACT The fiscal impact of eliminating mandatory water conservation needs further review. Water Fund revenues should be enhanced by increased water sales but proposed changes to the water rate structure could offset these revenues. Staff will return in April with a more detailed analysis and recommendation regarding water rates. SUMMARY As is indicated by the storage curve, the City is still in a very guarded situation in regards to available water supply. In the worst case scenario of continued drought conditions, the City could be back into mandatory water conservation at the beginning of next year. It will take the voluntary cooperation of our water customers and the next year's rainy season to eliminate the need for a mandatory program. It is evident from the curve that the City needs to continue an aggressive water conservation program to extend and maximize existing water supplies. Since no new water supply projects will be completed in the near future, it is possible, lacking adequate rainfall, that the City will be faced with the prospect of water rationing for several years. Coo qw A4 11%1111111111111 � l�d�ll City Of San LaiS OBISpO ffilmrme COUNCIL AGENDA REPORT Exiting Mandatory Conservation Page 5 Attachments: Attachment A - Reservoir Storage Curve Attachment B - Action Levels - 1991/92 Water Operation Plan Appendix A - Resolution No. Rescinding Resolution No. 6961 Appendix B - Resolution No. 6961 I C - h- 5 i ATPACEEM A - T W a o Q r O� 4r 4r R 4 QJz t0 W b �p Ol • rvJy^ y tp C H N R vi to O � C ZI O co d 3 J Q � � v 0 a � Q CV a ' T jw a cc W °� O T LLM y N g J o W `o a a V tn ` tn . r Ln � T r m € . -- •• E •r a r W N N N r r r r (spueenoW 133 - 380V ATLACHMM B CITY OF SAN LUIS OBISPO Exhibit August 1991 1991/92 Water Operational Plan ACTION LEVELS Action Level Definition Storage Entering Exiting Action Levels Action Levels MAX STORAGE Total City's storage in both 45,630 Salinas and Whale Rock Reservoirs STAGE I 3.0 years of supply less annual 21,900 28,100 well capacity plus minimum pool. (15%conservation) STAGE II 20 years of supply less annual 13,200 18,200 well capacity plus minimum pool. (35%conservation) ' STAGE III 1.0 years of supply less annual 6,500 10,000 well capacity plus minimum pool. (50%conservation) Minimum Pool 3,100 The storage levels are based on a base year consumption of 8,050 AFY,and then reduced consumption based on the appropriate conservation goal for each action level,1,800 AFY of well production and minimum pool of 3,100 AF. Entering Action Levels In April of each year,staff will evaluate water supply. If City storage will hit action level within the next nine months,the new conservation level will be implemented in May. C.� r1- r7 APPENDIX A • RESOLUTION NO. (1992 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO REPEALING RESOLUTION NO. 6961 REGARDING MANDATORY WATER CONSERVATION WHEREAS, on August 20, 1991, the City Council adopted the 1991/92 Annual Water Operational Plan as policy to establish action levels for, mandatory water conservation, and WHEREAS, said policy states when total reservoir water storage reaches 28, 100 acre feet, mandatory water conservation will end, and WHEREAS, as of March, 1991, reservoir storage has exceeded the stated storage level to end mandatory water conservation. NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of San Luis Obispo does hereby rescind Resolution No. 6961, except that with respect to requests for water allocation adjustments under the Mandatory Water Conservation Program, Section 1, sub-section(s) 10 and 11 of Resolution No. 6961 will remain in effect, as follows: . 10. The City, pursuant to Chapter 13 . 07 of San Luis Obispo Municipal Code which prohibits wasting of water, will impose the following penalties to consumers in violation. The City may: * Issue a written "warning" for the first offense; * Issue a written citation or complaint for the second offense; * Install a flow-restrictor at the cost of the customer for the third offense, and; * Terminate water service for a fourth offense. Prior to the termination of water service, the City will provide a due process hearing before the Water Conservation Adjustment Board. . The charge for water service termination and restoration shall be 100 dollars. 11. The City shall establish a Water Conservation Adjustment Board, which may grant exceptions for uses of water otherwise prohibited by Section 13 . 07. 070. The procedure for filing a request for exception is: * Completely fill out an application form which will be evaluated in accordance with established criteria as approved by the City Administrative Officer. * The first review will be by the Director of C - rT • S Resolution (1992 series) Page 2 Utilities or designees. The customer will be notified of the decision by letter. * If the water customer is not satisfied with the decision, it may be appealed to the Water Conservation Adjustment Board. * If the customer is not satisfied with the decision of the Water Conservation Adjustment Board, it may be appealed to the City Administrative Officer whose decision shall be final. SECTION 2 . Effective Date. This Resolution will become effective for all water billing dates after March 3 , 1992 . Upon motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted the day of 1992 Mayor Ron Dunin ATTEST: Pam Voges, City Clerk APPROVED: *Cit istrative Officer r Finance Director C � � _ 9 Appendix B • RESOLUTION NO.6961 (1991 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO ADOPTING THE MANDATORY WATER CONSERVATION IMPLEMENTATION POLICY STATEMENT WHEREAS, the City of San Luis Obispo has experienced consecutive years with lower than normal rainfall which resulted in lower than normal reservoir storage levels. Using historic water hydrology and demand information, the City developed and adopted its Annual Water Operational Plan of 1985 under which reductions in demand are required when predetermined reservoir storage levels are reached. WHEREAS, The City Council acknowledges that water is a limited resource and therefore desires to improve the effectiveness of water use within the City's service area and encourages citizens to use water wisely. To accomplish this, the City will introduce a mandatory water conservation program using the following elements: SECTION 1. This Council finds that: 1. Water use classifications are determined and established by . . the Director of Finance. 2. The customer of record is responsible for the water service and extent of water use. 3. The City will establish a life-line water usage allowance of 22 units per billing cycle for single meter residence. 4. The City will establish a maximum allocation of 35 units per billing cycle for single meter residence. 5. The City will establish a lifeline allocation of 16 units per unit per billing cycle for all other users. 6. The City will establish a mAndatory water conservation percentage reduction allotment program for each customer class. 7. The City will establish an optional base-line standard water allocation program adjusted by the target for commercial accounts and a city average plus per capita adjustment water allocation program for residential accounts. The following conservation targets, alternative Base Units/Standard, and Adjusted Units for billing units .per billing cycle are established by customer class: cow • � 10 T Resolution 6961 (1991 Series) Page 2 1 A. RESIDENTIAL Target Optional Allocation Single Meter 15% 22 unit (lifeline) for 3 permanent residents + 2.0 additional permanent resident Multi-Family 12% 16 unit (lifeline) for 3 permanent residents per Dwelling Unit + 2.0 additional units for each additional permanent resident B. COMMERCIAL 5% Commercial accounts will reduce over-all water consumption by 5% for-each classification. C. INSTITUTIONAL 25% D. LANDSCAPE 50% 8. To encourage compliance with the mandatory water conservation program, there will be a surcharge added to the water bill if ' the customer exceeds the required reduction amount. The surcharge will be 100 percent of the total water bill on which the target allocation is exceeded. In the event that the customer's consumption exceeds the established base year usage, the surcharge will be 200 percent of the total water bill. If the customer exceeds the allotment on two billing cycles within a twelve month period, a . flow-restrictor may be installed in the customer's water supply line at cost to the customer, or the surcharge may be increased to a higher value. If the customer exceeds the allotment three or more billing cycles within a twelve month period, the City may reserve the right to terminate the water service. Prior to the termination of water service, the City will provide a due process hearing before the Water Conservation Adjustment Board. 9. The City, pursuant to Chapter 13.07 of the San Luis Obispo Municipal Code which prohibitswasting of water, will impose the following penalties to consumers in violation. The City may: * Issue a written "warning" for the first offense; * Issue a written citation or complaint for the second offense; * _ .Install a flow-restrictor at the cost of the customer for the third offense; and, * Terminate water service for a fourth offense. Prior to the termination of water service, the City will provide a due process hearing before the Water Conservation Adjustment r Resolution 6961 (1991 Series) Page 3 Board. The charge for water service termination and restoration shall be 100 dollars. 10. The City shall establish a Water Conservation Adjustment Board, which may grant exceptions for uses of water otherwise prohibited by Section 13.07:070. The procedure for filing a request for exception is: * Completely fill out an application form which will be evaluated in accordance with established criteria as approved by the City Administrative Officer. * The first review will be by the Utilities Director or designees. The customer will be notified of the decision by letter. k * If the water customer .is not gatisfied with the decision, it may be appealed to the Water Conservation Adjustment Board. * If the customer is not satisfied with the decision of the Water Conservation Adjustment Board; it may be appealed to the City Administrative Officer whose decision shall be final. 11. Requests for exemptions and any subsequent appeals can only . be made by the service customer or property owner. 12. The mandatory water conservation program will be reviewed annually by the City Council in connection with the Annual Water Operational Plan. Current guidelines exist based upon reservoir storage levels which dictate when restrictions will be reduced,increased, or eliminated. SECTION 2. Effective Date. This program will become effective for all water billing dates after April 15, 1991: Resolution 6961 (1991 series) Page 4 On motion of Councilwoman Rappa , seconded by Mayor Dunin and on the following roll call vote: AYES: Councilwoman Rappa, Mayor Dunin, and Councilman Reiss NOES: Councilmembers Pinard and Roalman ABSENT: None the foregoing Resolution was passed and adopted the 16th day of April , 1991. T 1'IAYOR IRON DUNIN IT CLERK _VOGES BY: ASSISTANT CITY CLERK Kim Condon APPRO CITY A NISTRATIVE OFFICER FINANCE DIRECTOR UTILITIES DIRECTOR