HomeMy WebLinkAbout01/11/1994, 1 - DRAFT URBAN WATER MANAGEMENT PLANL
���n� ►����ulllll�������i��1ll City Of San -.AIS OBISPO -
COUNCIL AGENDA REPORT
FROM: John Moss, Utilities Director`J�
PREPARED BY: Gary Henderson, Water Division Manager
Sue Baasch, Administrative Analyst
Ron Munds, Water Conservation Coordinator
SUBJECT: Draft Urban Water Management Plan
CAO RECOMMENDATION
MEETING DATE:
January 11, 1994
ITEM NUMBER: /
Receive this report and provide comments and direction to staff regarding the Draft Urban Water
Management Plan.
DISCUSSION
The City of San Luis Obispo has aggressively monitored and managed its water resources during
the past decade. The Draft Urban Water Management Plan (Plan) has been developed and
written by City staff based on past water policy decisions, the experience gained from those
decisions, water system operational experience, and the proposed General Plan update.
The purposes of the draft Urban Water Management Plan are to:
■ Formulate long range City water policy;
■ Identify needed improvements both in the water supply and distribution systems;
■ Determine needed. water supply and distribution system expansion to reach the
General Plan goals; and
■ Consolidate previous water policy.
The Plan will also bring the City into compliance with state law AB 797, the Urban Water
Management Planning Act relating to water conservation. The law requires the City to submit
an updated version of the Plan every five years. The State's schedule for the next submittal of
plans is in 1995, with the next update due in the year 2000.
The Plan is divided into five chapters and has been structured to serve as an easily understood
water policy and resource guide. Following the introduction, the major policies are provided
followed by a description and analysis of the projects, programs and financial considerations
necessary to support the policies and goals of the City's General Plan.
������i�►►►�IIIIIp�Pn�U city of San LUIS OBISpo
COUNCIL AGENDA REPORT
Draft Urban Water Management Plan
The goal of the study session is to evaluate each element of the plan and then provide staff with
comments and direction for incorporation into the final document. Following the study session,
the Community Development Department will perform the necessary environmental
determination work.
The Council will be asked to suggest policy guidance as to whether this Plan should be
incorporated into the General Plan. There are implications for either course of action, which
will be spelled out more fully at the study session. If the answer is "Yes ", then the two major
implications will be that the Council must refer the Plan to the Planning Commission for their
review and recommendation, and the process for future modifications will be more involved, as
for any General Plan amendment.
Because of the length and complexity of the document, staff has prepared a condensed policy
summary (located in Appendix I of the Plan) and an Executive Summary (located at the
beginning of the Plan) which briefly describes the information presented in each chapter.
CONCURRENCES
The Community Development and . Finance Departments have reviewed and concur with the
information provided in the Draft Urban Water Management Plan.
FISCAL IMPACT
Adoption of the Urban Water Management Plan does not have additional fiscal impact on the
Water Fund at this time. Any policies included in this Plan that are not currently included in
the Water Fund analysis will be brought to Council separately for consideration and approval.
Attachment:
Draft Urban Water Management Plan
(Executive Summary immediately following Foreword in Plan)
2
city of san tins oBIspo
Fl.:
URBAN WATER MANAGEMENT PLAN
January 1994
TABLE OF CONTENTS
EXECUTIVE SUMMARY ....... ............................... iii
CHAPTER I. INTRODUCTION .... ..............................1
1.1 Purpose and Scope ...... ............................... 1
1.2 Relationship to General Plan and Other Documents ................. 3
1.3 Current Water Sources ... ............................... 4
CHAPTER 2. WATER POLICY .. ...............................
11
2.1
Safe Annual Yield ....................................
11
2.2
Water Conservation .... ...............................
15
2.3
Water Demand Projections ...............................
16
2.4
Reliability Reserve ..... ...............................
19
2.5
Siltation at Salinas and Whale Rock Reservoirs ..................
20
2.6
Supplemental Water Requirements ..........................
22
2.7
Multi- Source Water Supply Policy ..........................
23
2.8
Allocation of New Water Supplies ...........................
24
2.9
Water Allocation and Offsets ..............................
26
2.10
Reclaimed Water ...... ...............................
28
2.11
Capital Improvement Plan- Water Distribution ...................
30
CHAPTER 3. SUPPLEMENTAL WATER SUPPLY PROJECTS ............ 31
3.1 Salinas Reservoir Expansion Project ......................... 31
3.2 Nacimiento Project ..... ............................... 34
3.3 Water Reuse ......... ............................... 37
3.4 Water Demand Management .............................. 41
3.5 Other Supplemental Water Supply Project Alternatives .............. 42
CHAPTER 4. WATER OPERATIONAL PROGRAMS ................... 44
4.1 Water Treatment ...... ............................... 44
4.2 Water Distribution ..... ........................... ..... 49
4.3 Water Customer Service . ............................... 56
4.4 Telemetry ............ .............................58
4.5 Water Conservation .... ............................... 61
CHAPTER 5. FINANCIAL PLAN . ............................... 65
5.1 Water Fund ......... ............................... 65
5.2 Annual Water Fund and Rate Review ........................ 66
APPENDICES
City of San Luis Obispo i
/-At
FOREWORD
This Urban Water Management Plan has been developed by City of San Luis Obispo Utilities,
Community Development and Finance Departments staff as a single policy and resource
document. It is intended to consolidate information regarding policies and programs as they
relate to the City's water resources. As a planning document, this Urban Water Management
Plan is intended to provide the basis upon which the Utilities Department will pursue
development of water resources, programs and services. As the City progresses with the various
projects and programs identified in this document, it will be necessary to review and modify this
document, especially as it relates to the policies established herein.
The Urban Water Management Plan has been structured to serve as an easily understood water
policy and resource guide. Following the introduction, the major policies are provided, followed
by a description and analysis of the projects, programs and financial considerations necessary
to support those policies and the goals of the City's General Plan. The chapter on policies,
Chapter 2, is structured to first identify the policy and its relation to other policies contained in
the plan, then to provide the "basis" of that policy or the rationale used in malting the policy
decision. This format creates a document where the substantive policy information is readily
retrievable without having to search the text for the actual policy statement.
The policies and information contained in this Urban Water Management Plan provide the
necessary policy support for the water - related ordinances and regulations contained in the
Municipal Code (Titles 4, 13 and 17).
Planning for the development and wise use of our water resources is of paramount importance
to the City of San Luis Obispo. This Urban Water Management Plan and the policies contained
herein will provide the foundation for responsible water resource planning.
City of San Luis Obispo ii
�� S
EXECUTIVE SUMMARY
DRAFT URBAN WATER MANAGEMENT PLAN
This summary describes the purpose, water policies, operations, and a basis for financial
analysis of the Urban Water Management Plan (Plan). The goal of the summary is to provide
a clear, concise overview of the water planning and management decisions facing the City of San
Luis Obispo.
PURPOSE AND SCOPE OF THE URBAN WATER MANAGEMENT PLAN
The purposes of the Plan are to assist in formulating long range City water policy, determine
needed improvements both in the water supply and distribution systems, identify needed
expansion to reach General Plan goals, and develop a financial analysis for achieving the
recommendations presented in this document.
The specific objectives of the Plan can be summarized as follows:
■ Provide estimates of future supplemental water requirements based on population
projections developed from the Land Use Planning Element and per capita use
figures.
■ Provide an evaluation of alternative supply sources that could meet supplemental
water requirements.
■ Summarize water treatment processes and regulations, and identify the water treatment,
distribution and storage systems current deficiencies and future needs.
■ Consolidate previous water policy.
■ Evaluate the Water Conservation Program.
■ Comply with State Law, AB 797, the Urban Water Management Planning Act.
URBAN WATER MANAGEMENT PLAN SUNEWARY
This Executive Summary condenses the Plan into the following six main areas:
1.2 The Plan's Relationship to the General Plan
1.3 Current Water Supply Sources
2. Water Policy
3. Supplemental Water Supply Projects
4. Water Operational Programs
5.- Financial Plan
City of San Luis Obispo iii
/ -b
Urban Water Management P,___ - Executive Summary
1.1 THE PLAN'S RELATIONSHIP TO THE GENERAL PLAN AND OTHER
DOCUMENTS
Chapter 2, Water Policies, constitutes the Water Element of the General Plan, and replaces the
water section of the Water & Wastewater Management Element.
This plan includes all information needed to comply with state law AB 797, the Urban Water
Management Planning Act.
Implementation progress of this plan will be presented to the Council on yearly basis as part of
the Annual Water Operational Plan.
1.2 CURRENT WATER SUPPLY SOURCES
The City of San Luis Obispo currently receives water from three sources, Salinas Reservoir,
Whale Rock Reservoir, and local groundwater. The City has depended on imported supplies
from Salinas Reservoir, located near the community of Santa Margarita, since 1944 and Whale
Rock Reservoir, located near the community of Cayucos, since 1964. With the onset of the
drought in 1986, resulting in decreasing surface water supplies, the City activated its
groundwater sources in 1989.
2.0 WATER POLICY
The following policy statements and basis for policy summaries provide the foundation for
delivering an adequate supply of water to meet current and projected demands for the City of
San Luis Obispo.
2.1 SAFE ANNUAL YIELD
Po
2.1.1 Basis for Planning
The City will plan for land development and for water supplies based on the amount of water
which can be supplied each year, under critical drought conditions. This amount, called "safe
annual yield ", will be adopted by the City Council. The safe annual yield determination will
be revised as significant new information becomes available, and as water sources are gained
or lost. The determination will consider a staff analysis, which will recommend an amount
based on coordinated use of all water sources. Each change to safe annual yield will be
reflected in an amendment of this plan.
2.1.2 Safe Yield Amount
The City's safe annual yield of potable water is 7,735 acre feet, based on 7,235 acre feet from
the coordinated operation of Salinas Reservoir and Whale Rock Reservoir, and 500 acre feet of
groundwater.
City of San Luis Obispo iv
!-7
Urban Water Management Pla,. - Executive Summary
2.1.3 Groundwater
The amount of groundwater which the City will rely upon towards safe annual yield is identified
in Section 2.1.2. The City will maximize the use of groundwater in conjunction with other
available water supplies to maximized the yield and long term reliability of all water resources
and to minimize overall costs for meeting urban water demands.
Basis for Policy Summary
The safe annual yield of a reservoir depends on rainfall, the resulting runoff, evaporation, and
releases for purposes other than the supply in question (such as required releases for downstream
uses). The estimation of safe annual yield is based on historical hydrological data. The City
has developed a mathematical computer model of the Salinas and Whale Rock Reservoirs, which
accounts for all the factors that result in a safe yield amount. The current safe annual yield
amount results from using data from 1943 through 1991. This period includes the drought
periods of 1946 -51, 1959 -61, 1976 -77, and 1986 -91.
The current calculation reflects taking advantages of differences between the reservoirs through
coordinated. operation which means the City uses Salinas first, since it gains and loses water
faster than Whale Rock, which is used as a backup source. The safe annual yield of 7,735 acre
feet was adopted by the City Council as part of the 1992/93 Water Operational Plan.
2.2 WATER CONSERVATION
P Aa
2.2.1 Long -term Water Efficiency
The City will implement water efficiency programs which will maintain long -term , per capita
usage at least ten percent below the average per capita usage recorded during 1986/87. The
target amount is the long -term planning figure as defined in Section 2.3.
2.2.2 Short -term Water Shortages
Short-term mandatory measures, in addition to the long -term programs, will be implemented
when the City's water supplies are projected to last three years or less based on projected water
consumption, coordinated use of all City water supplies sources, and considering the drought
pattern on which safe yield is based (or response to other situations which may interrupt supply).
Base for Polity Summary
Water conservation was first referenced as a part of the City's water management policy in the
1973 General Plan. In 1985, the City adopted the Annual Water Operational Plan policy which
established water conservation as a means to extend water supplies during projected water
shortages. During this time, many technological and philosophical changes have occurred which
City of San Luis Obispo v
1 -8
Urban Water Management PL.- Executive Summary
are proving water conservation to be both a short term corrective measure for immediate water
supply shortages and a long term solution to water supply reliability.
2.3 WATER DEMAND PROJECTIONS
Poll
2.3.1 -Basis of Projections
The City will project water requirements, considering long -term conditions and the full range
of water uses in the City. Separate projections of potable and nonpotable requirements will be
made.
2.3.2 Water Usage Rate
The City shall use 165 gallons per person per day (0.185 acre -feet per person per year) and the
number of City residents to plan total future water supplies. This quantity will be revised if
warranted by long -term water use trends, including differences in the relationship between
residential and nonresidential usage.
2.3.3 Overall Projected Water Demand
Applying 165 gallons per person per day to a projected City resident population of 56,000 at
General Plan build -out results in a projected-water demand of 10,350 acre -feet.
Basis for Polity Summary
The City must know how much water will be needed to serve residents, businesses, and other
users which could be accommodated by the General Plan. This quantity can be projected using
different methods. All methods involve assumptions about both future usage rates and the
numbers and types of users expected in the future. The quantity expressed in the policy above
corresponds closely with both (1) total citywide usage compared with total resident population
and (2) projections of water demand based on usage by various land use categories.
2.4 RELIABILITY RESERVE
Policy
In seeking and accounting for new water supplies, the City will strive for a "reliability reserve"
of 2,000 acre feet of safe annual yield (about 20 percent of projected water demand at full build -
out).
Basis for Policy Summary
The Council supported the reliability reserve concept in March 1993, by amending the Water
and Wastewater Management Element to include it. The reserve will help maintain adequate
City of San Luis Obispo vi
/—
Urban Water Management Pla.. - Executive Summary
water supplies during unpredictable changes, such as a new worst case drought, loss of a water
source, or contamination of a water source.
2.5 SILTATION AT SALINAS AND WHALE ROCK RESERVOIRS
LoAa
The City shall develop 500 acre -feet of safe annual yield to account for the loss of water storage
due to siltation at Whale Rock and Salinas Reservoirs to the year 2025.
Basis for Policy Summary
Siltation at reservoirs is a natural occurrence which can substantially reduce the storage capacity
over long periods. The reduction. of available storage will reduce the safe annual yield of the
reservoir. Siltation at reservoirs varies depending on factors such as rainfall intensity, and
watershed management practices. There have been numerous reports addressing siltation at
Salinas Reservoir, but no studies have been done for Whale Rock Reservoir.
During the recent drought, water at Salinas Reservoir fell to a record low level. An aerial
survey of the reservoir was prepared in order to update storage capacity information. The latest
information indicates that the siltation rate is on the order of 40 acre -feet per year.
Since no information is available to indicate what rate of siltation is occurring at the Whale Rock
reservoir, it is assumed for planning purposes that the annual average rate of siltation is similar
to Salinas Reservoir.
2.6 SUPPLEMENTAL WATER REQUIREMENTS
Policy
The City shall develop additional water supplies to meet the projected demand at build -out of
the City's General Plan. The supplemental water supply amount shall be based on land use
assessment and the adopted per capita water use figure identified for planning purposes in
Section 2.3.
Basis for Policy Summary
Based on the draft Land Use Element endorsed by the City Council in February 1992 and the
per capita use rate, the projected total amount of water for the City to serve General Plan build -
out is 12,350 acre feet. This figure includes the 2,000 acre feet reliability reserve and
accounting for siltation at the reservoirs.
City of San Luis Obispo _ vii
l— too
Urban Water Management Pla— • Executive Summary
2.7 MULTI- SOURCE WATER SUPPLY
Poucv
The City shall continue to develop and use water resources projects to maintain multi- source
water supplies, and in this manner, reduce reliance on any one source of water supply and
increase its supply options in future droughts or other water supply emergencies.
Basis for Policy Summary
Having several sources of water can avoid dependence on one source that would not be available
during a drought or other water supply reduction. The Council has supported having multiple
sources since adopting the General Plan Water Management Element in 1987 and by endorsing
the above policy statement in November 1990.
2.8 ALLOCATION OF NEW SUPPLIES
Po
2.8.1 Balancing Safe Annual Yield and Overall Demand
When new water sources are obtained, the additional safe annual yield shall be allocated first
to eliminate the deficit between safe annual yield (Section 2.1) and present demand as defined
in Section 2.3 at the time the new source is obtained.
2.8.2 Development and the Reliability Reserve
Any additional safe annual yield beyond that needed to balance safe annual yield and and
projected water demand will be allocated (A) one -half to development and (B) one -half to the
reliability reserve and compensating for reduced yields due to siltation.
2.8.3 Accounting for Reclaimed Water
Reclaimed water shall be accounted for as a "nonpotable" supply as identified under Section
2.10.3. Use of reclaimed water shall not be considered as a component of the City's safe annual
yield, but may affect demand on potable supplies as reclaimed water use increases. .
2.8.4 Private Water Supplies
When developments are supplied by private groundwater wells, the yield of those wells will not
be counted toward the City's safe annual yield. Such yield, however, will result in the demand
for City water supply being lower than it otherwise would be, which may affect adjustments of
the per capita water usage figure used to estimate overall demand.
City of San Luis Obispo _ viii
Urban Water Management Plan = Executive summary
Basis for Policy Summary
The City is pursuing additional water supply projects. The City must address how the added
yield from these projects will be allocated, since the yield added at any one time may not supply
all potential uses. The City has identified the following potential uses for the new supplies:
• Eliminating the deficit between adopted planning water usage figures and safe yield;
• Compensating for reduced yields due to reservoir siltation;
• Establishing a reliability reserve;
• Providing for development of more dwellings, businesses, and public facilities.
The policies objectives are to balance the needs of all the areas identified while not compounding
the potential water shortage problems for existing residents of the City.
2.9 WATER ALLOCATION AND OFFSETS
Policy
2.9.1 Supplying New Development
The City will make available to new development only that amount of safe yield which exceeds
projected water use (as stated in Section 2.3), less the amount to compensate for siltation losses
(as stated in Section 2.5) and to provide a reliability reserve (as stated in Section 2.4). Available
allocations will be assigned to development in a way that supports balanced growth, consistent
with the General Plan.
2.9.2 Exemptions for Offsets
A. When there is no safe annual yield to allocate to a project, that project may be built if
the developer makes changes, in facilities served by the City, which will reduce long-
term water usage tgual to the allocation required for the project.
B. The City may exempt a project from needing an allocation or an offset, or it may reduce
the amount of the required allocation or offset, to the extent that the project is supplied
by a suitable, private well which will not significantly affect the yield of City wells. The
City will consider the cumulative effect of wells in the groundwater basin in making this
determination.
2.9.3 Basis for Allocations and Offsets
Required allocations and offsets will be based on long -term usage for each type of development.
(These usage and offset factors will be determined and published by the City, and may be
revised as warranted by new information.)
City of San Luis Obispo ix
i -/z
Urban Water Management P1, Summary
Basis for Policy Summary
In 1988, the City began to formally account for long -term water usage in new development. As
a result of the 1986 -1991 drought, the City decided that there should be no new development
that would increase water usage. Nearly all construction since 1990 has been replacement
buildings, remodels, or projects which retrofitted facilities to save (offset) twice the amount of
water or water allocation necessary to serve the project.
Requiring an offset -to- allocation ratio greater than one -to -one means that long -term water usage
will decline even as development occurs. Requiring a ratio of greater than one -to -one makes
projects less feasible, and raises questions of equity.
2.10 RECLAEN IED WATER
Poll
2.10.1 Reclaimed Water Quality
The City will produce high quality reclaimed water, suitable for a wide range of nonpotable
uses.
2.10.2 Uses of Reclaimed Water
The City will discharge to San Luis Obispo Creek one cubic foot per second of reclaimed water
for aquatic and riparian habitats. The City will make available reclaimed water to substitute for
existing .potable water uses and to supply new nonpotable uses.
2.10.3 Accounting for Reclaimed Water
As reclaimed water supplies new development or to substitute for potable water in existing
development, reliable yield of nonpotable water will be increased. Reclaimed water will be
credited to nonpotable reliable yield not when it is potentially available at the treatment plant,
but when it is actually available to a user due to completion of the necessary distribution
facilities.
2.10.4 City Reclaimed Water Projects
When the City provides distribution facilities that allow substitution of reclaimed water for
potable water, the resulting reduction in potable water demand will be given offset credit for
government projects (including new City parks or buildings), under any policies or rules limiting
the amount of water which can be allocated to development projects.
2.10.5 Private Reclaimed Water Projects
A. When a developer of a private project provides distribution facilities that allow
the substitution of reclaimed water in facilities that have used potable City water,
City of San Luis Obispo x
/ -/3
Urban Water Management PL_ Executive Summary
the resulting reduction in potable water usage will be credited to any allocation
of potable water needed for the developer's project, at a one -to -one ratio.
B. When a developer of a private project provides distribution facilities that allow
use of reclaimed water in that project, any required potable water allocation for
that project shall be reduced by a corresponding amount.
2.10.6 Combined Reclaimed Water Projects
When a component of the reclaimed water distribution system is funded in part by the City and
in part by a private developer, the credit for reduction in potable water usage resulting from that
component shall be divided in a proportionate share between the City and the developer based
on the respective contribution to the component.
Basis for Policy Summary
Reclaimed water is highly treated wastewater (sewage) which can be used for many nonpotable
uses such as landscape irrigation, industrial processes, and toilet flushing in certain types of
buildings. Use of reclaimed water will require a separate distribution system from potable water
lines.
Reclaimed water can be used to supply nonpotable uses in new development and to offset potable
uses in existing development. These potential uses require a deliberate method to account for
reclaimed water use, consistent with policies concerning total water requirements and other water
sources.
2.11 CAPITAL IMPROVEMENT PLAN -WATER DISTRIBUTION
P_d
The City shall replace aging water lines at the yearly rate of 2% of the value of the water
distribution system (about $1.5 million annually in 1993 dollars).
Basis for Policy Summary
Growth within the City has placed increased demands on the water distribution system. Some
pipes are over 100 years old, and may be too small to meet current fire -flow requirements. The
City has not funded distribution system replacement sufficiently to ensure replacement prior to
reaching the end of the infrastructure's service life.
Past funding for water main replacement was based on an estimated 150 miles of pipeline in the
City. Updated information reveals that there is actually 290 miles of mains with an estimated
replacement value of $75,000,000. Therefore, replacing 2 % of the infrastructure annually would
require $1,500,000 per year in 1993 dollars.
City of San Luis Obispo xi
-/Y
Urban Water Management. - Executive Summary
3.0 SUPPLEMENTAL WATER SUPPLY PROJECTS
Po&
The City shall pursue the expansion of the Salinas Resery oir, the Nacimiento Reservoir Project,
water reuse, and water demand management activities as supplemental water supply sources to
meet current and projected water demand.
Introduction
The City has been pursuing several water supply options over the past several years to secure
adequate supplies to meet current and projected future demand. The following section discusses
the projects presently being considered by the City.
3.1 SALINAS RESERVOIR EXPANSION PROJECT
The Salinas Dam was constructed by the War Department in 1941 to provide water to Camp San
Luis Obispo and the City of San Luis Obispo. The original construction plans for the dam
included the installation of an operable spillway gate to provide an estimated storage capacity
of approximately 45,000 acre -feet. A small fracture was discovered beneath the dam during
construction, therefore the gates were not installed because of stability concerns.
An 1989 study revealed that the dam (following the installation of the gates) was strong enough
to withstand a major earthquake without failing or causing a sudden release of water. The
analysis also found that raising the dam 19 feet would produce an additional 1,650 acre -feet a
year of safe annual yield from the reservoir.
Before the project proceeds, two hurdles must be crossed. They are the certification of the
environmental impact report, which is tentatively set for March 1994, and the resolution of the
ownership issue of the reservoir facilities. The City Council has supported the ownership
transfer to the County of San Luis Obispo and have been working closely to develop an
agreement acceptable to both parties.
3.2 NACIlMEIENTO RESERVOIR PROJECT
The Nacimiento Reservoir provides flood protection and is a source of supply for groundwater
recharge for the Salinas Valley and is owned and operated by the Monterey County Flood
Control and Water Conservation District. The San Luis Obispo County Flood Control and
Water Conservation District (District) has an entitlement of 17,500 acre -feet per year of water
from the reservoir.
The preliminary feasibility study has been divided into three phases and District has requested
that agencies interested in future participation share the costs associated with the studies. Phase
I of the study evaluated the reliability of the reservoir to deliver water at a maximum amount
of 17,500 acre -feet per year and was completed in December 1992. The purpose of Phase II
is to evaluate and recommend equitable apportionment of the District's entitlement to interested
City of San Luis Obispo xa
/`[J
Urban Water Management Plan - Executive Summary
agencies, to analyze and determine the best pipeline alignment, to determine facility
requirements, estimate costs, and to determine probable environmental impacts and mitigation
measures. The reports are scheduled to be completed by December 1993. Work on Phase III
which is the final report and recommendations is scheduled to begin in January 1994.
3.3 WATER REUSE
Reuse of the highly treated water produced by the City's Water Reclamation Facility (WRF) is
a . drought resistant portion of the City's multi-source water plan. The WRF produces
approximately 4,000 acre -feet of disinfected tertiary treated reclaimed water per year. This
water is suitable for most uses other than drinking and food preparation. Of the 4,000 acre -feet,
the City proposes to dedicate 720 acre -feet per year of reclaimed water to San Luis Obispo
Creek to maintain and enhance the in -stream habitat.
Since most of the recycled water will be used for irrigation, it is estimated that only 1,830 of
the remaining 3,280 acre -feet will actually be useable. This is because demand for irrigation
water is very limited during the winter while discharge from the WRF is fairly constant. The
City does not plan to construct a seasonal storage facility at this time.
The Water Reuse Project will construct a distribution system to deliver recycled water to large
volume customers throughout San Luis Obispo. The system will be designed for future
expansion to serve small volume users, when it becomes economically feasible to do so. The
City's Wastewater Division will operate the WRF and the water reuse pumps and filters located
at the treatment Facility. The City's Water Division will operate and maintain the water reuse
distribution system. The tentative completion date of the projects is June 1996.
3.4 WATER DEMAND MANAGEMENT
Water demand management practices and technology have advanced significantly in the last
several years in reaction to the drought of 1986 -1991. Historically, water demand management
was viewed as an emergency response to extreme water shortage situations. The importance of
using our water resources wisely and efficiently is imperative to assure adequate, reliable water
supplies in the future.
In September 1991, The City Council approved and authorized the Mayor to sign the
"Memorandum of Understanding" (MOU) regarding urban water conservation and the
implementation of the "Best Management Practices" (BMP's). This signifies a minimum ten
year commitment to implement and evaluate the water efficiency measures presented in the
MOU. Using the BMP's as a road map for future water demand management program
implementation, a balanced program of providing information and assistance to the City's water
customers is necessary to maintain the water use reductions levels required to stabilize the City's
water supplies.
City of San Luis Obispo _ xiii
/-//,v
Urban Water Management P,_. - Executive Summary
3.5 OTHER SUPPLEMENTAL WATER SUPPLY ALTERNATIVES
3.5.1 Desalination
In May 1990, the City began a feasibility study for a short-term desalination facility. The
preliminary analysis concluded that 3,000 acre feet per year of water could be provided at an
estimated cost of 19.5 million dollars. The "Miracle March" rains of 1991 provided adequate
runoff and storage in the City's reservoirs to allow the termination of the desalination project
on April 16, 1991.
Desalination may be a water supply consideration in the future if other water supply projects
currently under review are not accomplished. Though considered an expensive source of water
at this time, advances in technology in the future may reduce the costs to a more acceptable
level.
3.5.2 Cloud Seeding
The City activated a three year cloud seeding program in January 1991 in response to the
continuing drought. The program targets the Salinas and Lopez reservoirs watersheds, and the
County of San Luis Obispo paid a prorata share of the total cost of the program.
Salinas Reservoir's watershed runoff characteristics are favorable for producing significant runoff
during average rain seasons. Therefore, cloud seeding is not viewed as an annual program but
as a program that the Council may approve following below normal rainfall years.
3.5.3 Salinas to Whale Rock Transfer
The idea of transferring water which would otherwise spill downstream from Salinas Reservoir
to Whale Rock Reservoir was evaluated by staff and presented to Council in 1993. The analysis
revealed numerous obstacles and limitations, and Council directed staff to not proceed at this
time with further studies relative to this project.
4.0 WATER OPERATIONAL PROGRAMS
Policy
The City shall provide an adequate supply of high quality water which
• Meets all Federal and State standards;
• provides uninterrupted water flow at sufficient pressures;
• provides fire protection;
• sustains citywide water efficiency programs.
The City shall allocate funding to meet the goals and objectives presented in this chapter (also
see Chapter 5).
City of San Luis Obispo _ xiv
Urban Water Management Plan - Executive Summary
Introduction
This section will describe the existing water system, operation and maintenance procedures, and
identify current and future system deficiencies.
4.1 WATER TREATMENT
Over the past twenty years, surface water treatment and groundwater treatment standards and
regulations have become more stringent. With the enactment of the Safe Drinking Water Act
(SDWA) in 1974, Congress authorized the federal government to establish national drinking
water regulations. Since that time, many amendments have been made to the act which require
additional monitoring and treatment and thereby increased operational costs.
For the City, the most significant issue is the regulation aimed at reducing the formation of
disinfection by products, specifically trihhalomethanes (THM's). To remain within the
acceptable level of THM's, meet anticipated future surface water quality standards, and increase
water treatment operational efficiency, the City is upgrading the water treatment facility to use
ozone as the primary disinfectant instead of chlorine.
In November 1992, nitrate levels in the Auto Parkway well exceeded State standards and was
taken off -line. The City's Denny's well experienced a similar increase in nitrate levels and was
taken off -line in June 1993. Treatment alternatives for nitrate removal will be recommended to
Council during 1994.
4.2 WATER DISTRIBUTION
The water distribution program delivers potable water from the water treatment plant and wells
to customers and fire hydrants via three storage reservoirs, six pump stations, eight water tanks,
and approximately 300 miles of water mains. Some pipes are over 100 years old, and many are
too small to meet current fire -flow requirements. The City has not funded distribution system
replacement sufficiently to ensure replacement prior to reaching the end of the infrastructure's
service life. Because of this, the current water distribution staff workload is limited mainly to
corrective maintenance and allows minimal time for preventative maintenance.
In order improve the reliability of the water distribution system, a comprehensive preventative
maintenance program should be established. A workload analysis indicates that a minimum of
two additional staff will be required to implement a cost effective preventative maintenance
program. Funding in addition to the Capital Improvement Plan (Section 2.11) may be necessary
to correct other recognized system deficiencies.
4.3 WATER CUSTOMER SERVICE
The Water Customer Service Program is responsible for accurately measuring water delivered
through the distribution system to.the City's 12,500 customers. Other duties include the repair
of meter leaks, meter replacement and testing, and the starting and discontinuance of service.
The current program needs are being met with the cross -over assistance from the water
City of San Luis Obispo _ xv
1—/0
Urban Water Management PI" - Executive Summary
distribution crew during peak workload periods. Future growth will add a significant number
of water meters which may require additional staffing. As areas are annexed, an analysis of
staffing impacts will be performed and recommendations presented to Council.
4.4 TELEMETRY
Telemetry literally means "measuring at a distance '. Telemetry became part of the Utilities'
operations in 1988 when the Regional Water Quality Control Board required installation of
alarms on the City wastewater collection lift stations. It has evolved into complex computer
network, monitoring the City's water and wastewater systems. When completed, the telemetry
system will save staff time by allowing the monitoring and system adjustments to be made from
a central location, add reliability to the water system, and insure the City is in compliance with
federal and state regulations.
4.5 WATER CONSERVATION
In June 1985, the Council adopted the Annual Water Operational Policy which established a
procedure to monitor the City's water supply situation. An integral component of the policy was
the establishment of a water demand program aimed at instituting corrective measures ahead of
any projected water supply deficit.
Water conservation has two primary components, short-term and long -term water demand
management. Short-term activities address immediate water shortage situations caused by
prolonged below normal rainfall or.disruption in water service due to natural disaster such as
an earthquake. Due to the drought and water shortages experienced from 1989 to 1992, the
short-term measures developed during that period (formalized in the City's Water Shortage
Contingency Plan) will be a model for any future water emergencies the City might face.
Long -term programs make permanent reductions in water demand while. minimally impacting
customer's lifestyles. In September 1991, The City approved and signed the "Memorandum of
Understanding" (MOLT) regarding.urban water conservation and the implementation of the "Best
Management Practices" (BMP's). The BMP's act as a road map to the City's long -term water
conservation program development and implementation policy.
5.0 FINANCIAL PLAN
Po
The City's policy is to fully recover all water costs through water revenues. Resolution No.
6447 states the primary goals of the City's water utility are to provide quality water service to
its citizens and to function as self- sufficient enterprise. Under the policy, all water revenues are
used only for water purposes. The water fund will reimburse the general fund for all indirect
costs pursuant to the approved cost allocation plan.
City of San Luis Obispo xvi
f -!9
CHAPTER 1
INTRODUCTION
1.1 PURPOSE AND SCOPE
The City of San Luis Obispo has aggressively monitored and managed its water resources during
the past decade. Faced with increasingly restrictive budgets, growing population, limited
resources, and the commitment to serving our customers needs, the City has fostered a
management style which is pro -active rather than reactive, with an emphasis on actions which
achieve practical results. This philosophy is the foundation for the Utilities Department's
development of the Urban Water Management Plan.
To evaluate the current water supply and.delivery systems and to plan for needed expansion and
improvements through the year 2025, the City has undertaken the preparation of this document.
The purposes of the plan are to formulate long range City water policy, identify needed
improvements both in the water supply and distribution systems, determine needed expansion
to reach the General Plan goals, and develop a basis for financial planning to achieve the
recommendations made in this document.
Objectives and Scope
The specific objectives of the Urban Water Management Plan can be summarized as follows:
■ Provide estimates of future supplemental water requirements based on population
projections developed from the General Plan Land Use Element and per capita water use
figures.
■ Provide an evaluation of alternative water supply sources, both short and long term, that
could meet supplemental water requirements. Evaluations shall be based on economic,
technical, and environmental factors.
■ Summarize the water treatment processes and regulations, and identify the water
treatment, distribution and storage systems current deficiencies and future needs.
■ . Consolidate previously - adopted water policy.
■ Evaluate the water conservation program.
■ Comply with state law, AB 797, the Urban Water Management Planning Act.
City of San Luis Obispo
-.20
Urban Water Management ..an
The Urban Water Management Plan for the City of San Luis Obispo will provide a policy and
strategy for adequately developing the City's water resources and its treatment and delivery
systems. It will also bring the City into compliance with the requirements of state law (AB 797)
relating to water conservation. The Plan will clearly define and analyze the key water issues
facing the City and then identify solutions to meet our supply and infrastructure needs. It will
also evaluate financial options and address institutional relationships as necessary. The Plan is
consistent with the goals, policies, land use, and population projections presented in the proposed
General Plan update.
City of San Luis Obispo 2
/-X
Urban Water Management 1,Qa
1.2 RELATIONSHIP TO GENERAL PLAN AND OTHER DOCUMENTS
Chapter 2, Water Policies, constitutes the Water Element of the General Plan, and replaces the
water section of the Water and Wastewater Management Element.
This plan includes all information needed to comply with State law AB 797, the Urban Water
Management Planning Act and will be updated in the Year 2000 in accordance with provisions
of AB 797.
Progress on the implementation of this plan will be presented to the City Council on a yearly
basis as part of the Annual Water Operational Plan.
City of San Luis Obispo 3
/—OZZ
Urban Water Management , .an
1.3 CURRENT WATER SOURCES
1.3.1 SALINAS RESERVOIR
Introduction
The Salinas Reservoir (also known as Santa Margarita Lake) is located on the upper Salinas
River, approximately nine miles southeast of the community of Santa Margarita. The project
was originally built by the U.S. Army to ensure an adequate water supply for Camp San Luis
Obispo. The dam and appurtenances were declared surplus by the War Department on April
14, 1947 and the U.S. Army Corps of Engineers assumed responsibility for the facilities. On
July 11, 1947, the Corps entered into an agreement with the San Luis Obispo County Flood
Control and Water Conservation District (District) for the operation and maintenance of the dam
and related facilities. The City has an agreement with the Corps for the full entitlement of water
from the reservoir. As part of this agreement, the City pays to the District all operation and
maintenance costs associated with the water delivery and storage facilities.
Operation and Distribution
Salinas Reservoir is formed by a concrete arched dam. Immediately following construction, the
reservoir had an estimated storage capacity of 26,000 acre feet, surface area of 793 acres, and
a drainage area of 112 square miles. As a result of siltation the reservoir capacity has been
reduced. This is discussed in more detail in Chapter 2, Section 5.
Water is conveyed from Salinas Reservoir through 48,700 feet (9.2 miles) of 24 -inch diameter
reinforced concrete pipe to a 3,000,000 gallon regulating reservoir at Santa Margarita booster
pumping station. The pipeline is designed to flow by gravity from the reservoir when the
reservoir surface level is above the elevation of 1,267 feet. A booster pump station at the base
of the dam, consisting of two horizontal centrifugal pumps, is capable of maintaining the rated
flow of 12 cubic feet per second (cfs) when the water surface elevation falls below 1,267 feet.
Three electrically driven horizontal centrifugal pumps at the Santa Margarita booster station
pump water through 6,810 feet of 24 -inch diameter reinforced concrete pipe to the entrance
portal of the Cuesta Tunnel, which runs 5,327 feet through the mountains near Cuesta Grade.
From the outlet portal of the tunnel, water is conveyed through an 18 -inch diameter steel
pipeline a distance of 5,133 feet to the City's turnout point. From the turnout, an 18 -inch
diameter pipe runs 4,180 feet to the Stenner Creek hydroelectric plant. From there, a pipeline
that varies from 24- inches to 30- inches in diameter conveys the water by gravity to the water
treatment plant 5,930 feet downstream.
Operation and Maintenance Evaluation
The operation and maintenance of the dam and water conveyance system are the responsibility
of San Luis Obispo County Flood Control and Water Conservation District. The City currently
pays all operating and capital costs associated with the reservoir and transmission system
(excluding any recreational activities).
City of San Luis Obispo 4
/-023.
Urban Water Management ) ....,
Recommendations for System Improvements
The City is pursuing a project which will install a gate on the spillway in the Salinas Dam,
effectively raising the high water surface of the reservoir by approximately 19 feet. When
completed, the expansion of storage capacity from approximately 23,843 acre feet to 41,790 acre
feet will increase the safe annual yield of the reservoir by an estimated 1,650 acre feet.
1.3.2 WHALE ROCK RESERVOIR
Introduction
Whale Rock reservoir is located on Old Creek approximately one half mile east of the
community of Cayucos. The project was planned, designed, and constructed under the
supervision of the State Department of_ Water Resources. Construction took place between
October 1958 and April 1961. The reservoir is jointly owned by the City of San Luis Obispo,
the California Men's Colony, and the California Polytechnic State University at San Luis
Obispo. These three agencies form the Whale Rock Commission which is responsible for
operational policy and administration of the reservoir. Day -to -day operation is provided by the
City of San Luis Obispo.
Operation
Whale Rock reservoir is formed by an earthen dam and can store an estimated 40,662 acre feet
of water. The project facilities consist of a 30 -inch pipeline, two pumping stations, a
hydroelectric generator, 2.1 miles of trails and a fishing access facility, maintenance facility and
offices, a structure previously used as a private residence, and percolation ponds.
City staff are responsible for ongoing maintenance and operation of the reservoir, including the
inlet and outlet structures, reservoir structural instrumentation, access roads, daily reservoir level
readings and climatological data, percolation pond, reservoir patrol and security, hydroelectric
power generation, pipeline pumps and pumping stations, water meters, cathodic protection
system, and other associated duties. In addition, staff operates a seasonal steelhead hatchery at
the reservoir which started operation during the 1991/92 steelhead spawning season. Staff also
monitors public fishing access to the lake during trout season (April to November).
Conveyance System
The conveyance system (Figure 1) conveys water from the reservoir to the Whale Rock
Commission member agencies located between the reservoir and the City of San Luis Obispo.
Outlets from the pipeline exist for water deliveries to Chorro Reservoir and water treatment
plant (operated by the California Men's Colony), Cal Poly State University, and the City's water
treatment plant.
The Whale Rock pipeline is approximately 17 miles long, connecting the reservoir to the
member agencies, and terminates at the City's water treatment plant. The design capacity of the
City of San Luis Obispo 5
/_02—
Urban Water Management rtan
pipeline is 18.94 cubic feet per second (approximately 8,500 gallons per minute). The line
consists of modified prestressed concrete cylinder pipe at most locations. Cement mortar lined
steel pipe is used at creek crossings and junctions. The pipeline has surge protection consisting
of eight -inch, globe type, diaphragm - actuated pressure relief valves which protect the line from
excessive pressures. The cathodic protection system consists of sacrificial anodes and .test
stations located in areas subject to galvanic corrosion. Recent inspections of the inside of the
pipeline indicate the condition of the pipeline to be very good with no rehabilitation needed in
the near future.
Two pump stations transmit the water along the pipeline to member agencies. The first pump
station is located in Cayucos at Chaney Way (elevation 44 feet). The second station is located
in Camp San Luis Obispo, approximately six miles southeast of Morro Bay (elevation 181 feet).
Each station has five pumps which are capable of varying flow rates requested by member
agencies. Upgrades to both pump stations, which included the addition of two pumps at each
station, were completed in August 1993.
Cayucos Ateseadero
N
Wavle
Reservoir � T
Gt �Ef^�•.Y —� i 0 t 2 Miles
�..
O Pump Station A
.'pTa` A0 SIR 110 +00
per•: 9.1
c
°sue Pol ' ✓ ,o,
'air OQ'i ?o /
� O Santa
r os�. C 77 S/ .�EE� Margarita
I � � r2 e�/ CtSl GAEEix--
9 Va Churro Water
O Ij SANE Treatment Plant
0 I Mara any
D PgFS /
a I//
tapf
2 aq ' Chorro Resaryoh
PtanP Star B Stoma 729+40 San Floor from Salinas Reservoir
Sta 603 +50 Chorro Lateral ~San Luis
SIR 796+36 Obispo
San Luis Obispo. Foreoay rI Water
1I City Water Treatment Ram Treatment
SIR 667 +00 EP PaaemUnt Plant
WHALE ROCK ' Otnl"' Clty 0
/1 Water Treatment Plant ameetlon to Abandoned
CONVEYANCE City water Treatment Plant
CONDUIT San LWs Obisp ' Location Map
Figure 1 WHALE ROCK CONVEYANCE SYSTEM
Operating Agreements
Several agreements establish policy for the operation of the Whale Rock system and actions of
the member agencies. A brief description of the existing agreements follows:
City of San Luis Obispo _ 6
Cz!�
Urban Water Management
1. Agreement for the construction and operation of the Whale Rock Project, 1957, set forth
the project's capital cost distribution to the member agencies.
2. A supplemental operating agreement, 1960, established the Whale Rock Commission and
apportioned the operating costs.
3. Downstream water rights agreement, 1958, established water entitlements for adjacent and
downstream water users. The downstream water users (Cayucos Area Water Organization or
CAWO) affected by this agreement consist of three public water purveyors and the cemetery.
In addition to the agencies, water entitlements were identified for separate downstream land
owners.
Entitlements are as follows:
■ Cayucos Area Water Organization ( "CAWO ") 600 Acre feet
Paso Robles Beach Water Association
Morro Rock Mutual Water Company
County Water District #8
Cayucos -Morro Bay Cemetery District
■ Mainini 50
■ Ogle 14
Total Downstream Entitlement 664 Acre Feet
4. A decision and order by the Fish and Game Commission of the State of California,
October 24, 1964, required the Whale Rock Commission to stock the reservoir with 17,500
rainbow trout (between six and eight inches long) each year.
5. Superior Court decision #36101, 1977, required the Whale Rock Commission to allow
public entry to the reservoir for fishing. In 1981, construction was completed on access trails
and sanitary facilities at the reservoir, and public fishing began at the lake.
6. The City of San Luis Obispo and the San Luis Obispo Community College District
(Cuesta College) reached an agreement in 1987 to deliver up to 110 AF of untreated Whale Rock
water to the California Men's Colony Water Treatment Facility, for treatment and distribution
to the Cuesta College campus.
7. An agreement for water allocation and operational policy betwen the agencies forming
the Whale Rock Commission. The agreement established the accounting procedures to allow
each agency to carry over excess or deficit water each year.
8. An agreement between the Whale Rock Commission and the California Men's Colony,
1990, to establish maintenance and operation criteria for the Chorro Booster pumps. The
Chorro Booster pumps were installed by the Commission on the California Men's Colony
turnout from the Whale Rock line to reduce system pressures required to provide full flow to
City of San Luis Obispo 7
l' 14
Urban Water Managemen. an
the California Men's Colony water treatment plant. Pump and pump station maintenance, per
the agreement, are the responsibility of the California Men's Colony.
Operation and Maintenance Evaluation
Current reservoir staff consists of three full -time, regular employees and one part-time
employee. Reservoir staff are responsible for ongoing maintenance and operational duties which
include:
■ Inlet and outlet structure maintenance. Routine valve operations, trash rack cleaning,
outlet vault valve operation, lubrication, adjustments and repairs.
■ Reservoir structural instrumentation. Weekly recordings and analysis of piezometers,
groundwater levels, reservoir and underdrain seepage data, and erosion and slippage
control information.
■ Percolation pond operation. Daily regulation of the water releases to the pond areas
to optimize water availability to the downstream water agencies. Occasional dredging
of the pond areas has been necessary to maintain satisfactory pumping levels for the
downstream users.
■ Reservoir patrol and security. Daily surveillance of the reservoir, fences, and dam
areas.
■ hydroelectric power generation. Coordinating flows to the downstream percolation
ponds. The power generation plant is only operated when storage at the reservoir nears
capacity which would warrant excess water releases.
■ Pipeline pumps and pumping stations. Daily inspections during operational periods
for readings, adjustments, and pump efficiency evaluation.
■ Water meters. Monthly readings and reporting of deliveries to the various agencies and
individuals. The meters monitored include Whale Rock member agencies' meters,
Cayucos Area Water Organization well meters and certain private party meters. Periodic
maintenance is required for the proper operation of these meters.
■ Cathodic protection. Annual monitoring of stations to ensure that the water
transmission line is properly maintained and protected.
■ The seasonal steelhead hatchery. Recently introduced to help alleviate a long term
deficiency in the availability of native steelhead trout for fish enhancement at Whale
Rock. Native adult steelhead are captured at the reservoir and spawned, then the young
are raised at the facility in circular pens until they are old enough to re- introduce to the
reservoir. The hatchery program requires daily observation, treatments, and feeding of
the young steelhead during the rearing period, usually February through July or August.
Volunteer assistance is frequently used to assist in the hatchery operation.
City of San Luis Obispo 8
/a7
Urban Water Management , ....i
Recommendations for System Improvements
With the upgrades of the pump stations which were completed in August, 1993, combined with
the cathodic system maintenance program which insures the reliability of the water transmission
line, it is anticipated that the raw water delivery system will not require capital improvements
in the near future. One area of concern at the reservoir is earth movement occurring close to
the fishing facility near Old Creek Road. The facility is located in an area which has been
impacted by soil slippage. Due to the current low interest in Whale Rock fishing, and the
hazardous condition at the facility's access driveway, the area has been closed to the public. An
increase in fishing activity at the reservoir would necessitate repair of the access and parking
areas. At the appropriate time, a specific proposal will be presented to Whale Rock commission
for approval.
Staffing Evaluation
Existing staffing levels are considered adequate for current workloads. However, as previously
mentioned, increased fishing activity at the reservoir could require additional monitoring and
repair of the facility and access trails. The existing Whale Rock staff have adjusted work
schedules to permit daily observation of the fishing access areas which eliminates the need for
seasonal fishing program personnel. Additional use would demand more of the staff's time
which would ultimately have a negative impact on the reservoir's over -all operation and
maintenance. Staff will closely monitor the fishing program at the reservoir and present a
recommendation to the Whale Rock Commission if the fishing activity increases beyond the
capabilities of the current staff to adequately monitor the access areas.
1.3.3 GROUNDWATER
Intrdduction
The City's major source of water was groundwater until 1944 when the City began to use water
from Salinas Reservoir. In 1943, the City pumped 1,380 acre feet of groundwater.
Groundwater was used again during the summer of 1948 when 440 acre feet was pumped.
In the intervening years, until 1986, most groundwater in the City was used by agriculture and
very little was used for domestic consumption. As a result of the drought beginning in 1986 and
decreasing surface water supplies, the City activated groundwater wells in 1989 to meet the
City's water demand.
The principal source of groundwater for the City is the San Luis Obispo Groundwater Basin.
The basin is fifteen square miles and is drained by San Luis Obispo Creek. It extends from the
northern limits of the City and continues southernly along the alignment of the creek to just
south of Buckley Road. In the Los Osos Valley area, the basin extends four miles west to the
Los Osos Basin, which includes the community of Los Osos /Baywood Park.
City of San Luis Obispo 9
07V
Urban Water Managemen, an
In 1990, at the height of the drought, the City had seven potable wells which accounted for
approximately 50% of the water supplied during that period. The current groundwater program
uses four potable wells and two irrigation wells. Two of the City's wells, known as the Auto
Park Way and Denny's wells, were shut down in 1992 and 1993 due to elevated nitrate levels.
This is discussed in more detail in Chapter 4.
Operation
Operation and maintenance of the groundwater wells for the City is provided by the Water
treatment plant staff. The well sites require daily inspections, at a minimum, to ensure proper
operation of the facilities. Each site includes pumps, valves, meters and other related
appurtenances, as well as necessary chlorine metering equipment for proper disinfection as
required by the State Department of Health Services. Monthly production rates and biweekly
water levels are recorded and maintained by staff.
The Auto Park Way well required the use of granular activated carbon ( "GAC ") absorption tanks
for the removal of tetrachloroethylene ( "PCE ") which has contaminated the groundwater in the
area of this well. Operation and maintenance of the GAC treatment facility required more staff
time than the other well sites. Elevated nitrate levels in excess of the State's regulations
required the discontinuance of the well's use in October 1992. The Denny's well on Calle
Joaquin was taken out of service in June 1993 due to increasing nitrate contamination.
Operation and Maintenance Evaluation
The operation and maintenance of City wells are adequately handled by the existing personnel
at the Water Treatment Plant. No increase in staff is anticipated in the near future.
Recommended System Improvements
There are several options for reducing maintenance and operating costs. One option is the
installation of variable frequency drive pumps, which could reduce energy consumption and
electrical bills for pumping water. This option should be implemented if analysis reveals a
favorable cost benefit ratio.
Treatment options for the nitrate contamination at Auto Parkway Well will be presented to
Council upon completion of the evaluation of alternatives. Treatment of groundwater is
recommended as a viable, cost effective source of supply. Re- establishment of the Auto
Parkway well will ensure that minimum safe annual yield projections of groundwater are
realized.
City of San Luis Obispo 10
/-.29
CHAPTER 2
WATER POLICY
Introduction
This chapter addresses the water policy elements required to ensure that adequate supplies of
water are available to meet both current and projected future water demand for the City of San
Luis Obispo. Because of the length and complexity of the policies, a brief summary of all the
policy statements contained in this Plan is presented in Appendix I.
2.1 SAFE ANNUAL YIELD
Emma
2.1.1 BASIS FOR PLANNING
The City will plan for future development and for water supplies based on the amount of water
which can be supplied each year, under critical drought conditions. This amount, called "safe
annual yield," will be formally adopted by the Council. The safe annual yield determination will
be revised as significant new information becomes available, and as water sources are gained
or lost. The determination will consider a staff analysis, which will recommend an amount
based on coordinated use of all water sources. Each change to safe annual yield will be
reflected in an amendment of this plan.
2.1.2 SAFE YIELD AMOUNT
The City's safe annual yield of potable water is 7,735 acre feet, based on 7,235 acre feet from
the coordinated operation of Salinas Reservoir and Whale Rock Reservoir, and 500 acre feet of
groundwater.
2.1.3 GROUNDWATER
The amount of groundwater which the City will rely upon towards safe annual yield is identified
in Section 2.1.2. The City will maximize the use of groundwater in conjunction with other
available water supplies to maximize the yield and long term reliability of all water resources .
and to minimize overall costs for meeting urban water demands.
City of San Luis Obispo 11
/-,30
Urban Water Management ....a --
Basis for Po&
Safe annual yield is the amount of water that can reliably be produced by the City's water supply
to meet the water demand. It is estimated by simulating the operation of the City's water supply
sources over an historical period to determine the maximum level of demand which could be met
during the most severe drought for which records are available.
The safe annual yield of an individual source of water supply is defined as the quantity of water
which can be withdrawn every year, under critical drought conditions. Safe annual yield
analyses of water supply sources are based on rainfall, evaporation and stream flow experienced
during an historical period. The City of San Luis Obispo uses a period beginning in 1943,
which covers drought periods in 1946 -51, 1959 -61, 1976 -77, and 1986 -91. The historical period
used in the latest computer analysis to determine safe annual yield extends from 1943 through
1991 and includes the most recent drought. Although future conditions are unlikely to occur in
the precise sequence and magnitudes as have occurred historically, this technique provides a
reliable estimate of the future water supply capability of the existing sources, since the long term
historical record is considered a good indicator of future conditions.
The safe annual yield gradually declines as silt accumulates in the reservoirs, thereby reducing
storage capacity. This is discussed in more detail in Section 2.5.
Current Safe Annual Yield Analysis
Prior to 1991, the "controlling drought period" for determining safe annual yield was 1946 to
1951. The adopted safe annual yield estimate of 7,235 acre feet uses the controlling drought
period 1986 to 1991. This safe annual yield estimate was adopted by Council as part of the
1992 -93 Water Operational Plan. The adopted safe annual yield from Salinas and Whale Rock
Reservoirs, including 500 acre feet of groundwater, is 7,735 acre feet per year.
Water Supply Safe Annual Yield
Coordinated Operations of the Salinas 7,235 acre feet
and Whale Rock Reservoirs
Groundwater 500 acre feet
TOTAL SAFE ANNUAL YIELD 79735 acre feet
Previous Safe Annual Yield Studies
Previous studies of the critical historical drought periods at Salinas and Whale Rock reservoirs
have indicated the following safe annual yields were available to the City:
City of San Luis Obispo 12
t-3/
Urban Water Management 1._.
Water Supply Safe Annual Yield Reference
Salinas Reservoir 4,800 acre feet Corps of Engineers, 1977
Whale Rock Reservoir* 2,060 acre feet Dept Water Resources, 1974
Coordinated Operation 500 acre feet CH2M -Hill, 1985
Groundwater 500 acre feet Water Operational Plan, 1993
TOTAL 7,860 acre feet
*City's share of Whale Rock Reservoir safe annual yield.
Past safe annual yield analysis for the two reservoirs assumed independent operation and
historical data to the date of each report. The critical drought period for the previous studies.
was 1946 -51. The studies also assumed a minimum pool at Salinas and Whale Rock of 400 and
500 acre feet respectively. "Coordinated operation" is a concerted effort to operate the two
reservoirs together for maximum yield. Since Salinas Reservoir spills more often than Whale
Rock Reservoir, due to its larger drainage area and more favorable runoff characteristics, and
has higher evaporation rates, the combined yield from the two reservoirs can be increased by
first using Salinas to meet the City's demand and then using Whale Rock as a backup source
during periods when Salinas is below minimum pool or unable to meet all of the demand. The
500 acre feet increase in safe annual yield was a preliminary estimate of the additional yield
attributed to coordinated operations of the reservoirs identified in the 1985 report prepared by
CH2M -Hill.
In 1988, the City contracted with the engineering firm of Leedshill - Herkenhoff, Inc., to prepare
a detailed analysis of the City's water supplies and safe annual yield, based on coordinated
operation of the reservoirs. The report "Coordinated Operations Study for Salinas and Whale
Rock reservoirs" was completed in 1989. The study estimated total safe annual yield for the
City from the two reservoirs to be 9,080 acre feet per year. Since the study period was only
to 1988 and the City was in a drought period of unknown length, this amount was never adopted
by Council. It should be emphasized that this estimate assumed that the "controlling drought
period" was 1946 to 1951 and that Whale Rock Reservoir is used only when Salinas is below
minimum pool or can not meet the monthly City demand, and does not consider limitations on
the use of Salinas water due to water quality constraints.
Following the end of the of 1986 -1991 drought, staff updated the computer program created by
Leedshill- Herkenhoff to estimate the impact of the drought on safe annual yield of the reservoirs.
The analysis determined that the recent drought was the critical drought of record for the two
reservoirs, reducing the safe annual yield to 7,235 acre feet per year as identified in the previous
section for the current safe annual yield analysis.
Groundwater Resources
The groundwater basin which underlies the City of San Luis Obispo is relatively small.
Therefore, extractions in excess of 500 acre feet per year during extended drought periods
cannot be relied upon. Since the basin is small, it tends to fully recharge following significant
City of San Luis Obispo 13
1 -3.
Urban Water Management _ -a
rainfall periods. Following periods of above average rainfall, the groundwater basin may be
capable of sustaining increased extraction rates to meet City water demands. The use of the
groundwater basin in conjunction with the City's other water supply resources provides an
effective management strategy which increases the reliability of all the resources to meet current
and future water demands. The operation of the groundwater basin in this manner is similar to
the use of Salinas Reservoir. Since both Salinas Reservoir and the groundwater basin fill up and
"spill" following significant rain periods, there is a benefit in drawing from these sources first
and leaving Whale Rock reservoir as a backup supply. Another benefit to maximizing
groundwater use is that it typically requires minimal treatment which reduces costs compared
to surface water supplies. Even with treatment for nitrates and PCE, the projected costs
associated with that treatment show groundwater to be comparable to other alternative future
water supply projects.
City of San Luis Obispo 14
/-J
Urban Water Management 1.
2.2 WATER CONSERVATION
Poll
2.2.1 LONG -TERM WATER EFFICIENCY
The City will implement water- efficiency programs which will maintain long -term, per- capita
usage at least ten percent below the average per capita usage recorded during 1986/87. The
target amount is the long term planning amount as defined in Section 2.3.
2.2.2 SHORT -TERM WATER SHORTAGES
Short-term mandatory measures, in addition to the long -term programs, will be implemented
when the City's water supplies are projected to last three years or less based on projected water
consumption, coordinated use of all city water supply sources, and considering the drought
pattern on which safe yield is based (or response to other situations which may interrupt supply).
Basis for Polic'X
Water conservation was referenced as a part of the City's water management policy in ,1973.
In 1985, the City adopted the Annual Water Operational Plan policy which established water
conservation as a means of extending water supplies during projected water shortages. During
this time, many technological and philosophical changes have occurred which are proving water
conservation to be both a short term corrective measure for immediate water supply shortages
and a long term solution to water supply reliability.
Because of the experience during the drought of 1986 to 1991, the City has developed a short
term plan to deal with immediate water shortages and has recognized the importance of water
efficiency by supporting long term programs. The City will reevaluate and update its water
conservation efforts in response to changing water demand, supplies, technology and economic
conditions.
City of San Luis Obispo 15
Urban Water Management _ .i
2.3 WATER DEMAND PROJECTIONS
Policy
2.3.1 BASIS OF PROJECTIONS
The City will project water requirements, considering long -term conditions and the full range
of water uses in the City. Separate projections of potable and nonpotable requirements will be
made.
2.3.2 WATER USE RATE
The City shall use 165 gallons per person per day (this equates to approximately 0. 185 acre -foot
per person per year) and the number of City residents to plan total projected future water
demand. This quantity will be revised if warranted by long -term water use trends, including
differences in the relationship between residential and nonresidential usage. (This Plan uses 165
gallons per person per day in computations of future water demand.)
2.3.3 OVERALL PROJECTED DEMAND
Applying 165 gallons per person per day (0.185 acre -foot per person per year) to a projected
City resident population of 56,000 at General Plan build -out results in a projected water demand
of an estimated 10,350 acre -feet per year.
Basis for Polio
The City must know how much water will be needed to serve residents, businesses, and other
users to accommodate the General Plan. This quantity can be projected using different methods.
All methods involve assumptions about both future usage rates and the numbers and types of
users expected in the future. The quantity expressed in the policy above corresponds closely
with both (1) total citywide usage compared with total resident population and (2) projections
of water demand based on usage by various land use categories. There always will be some
uncertainty in estimating development capacity (such as the number of dwellings or residents)
as well as the usage per customer type (such as acre -feet per dwelling or per resident.) The
estimating method must use reasonable assumptions, based on experience, to assure an adequate
level of water supply while not overstating demands.
Since the early 1970's, usage estimates have ranged from 0.17 to 0.22 acre -foot per resident per
year (about 155 to about 195 gallons per person per day). The estimates have varied so widely
due to actual differences in consumption over time and to confusion about accounting for Cal
Poly usage. (The City treats and delivers much of the water used by Cal Poly, even though Cal
Poly has separate entitlements.) Table 2.3.4 shows recent water usage compared with City
resident population. Table 2.3.5 compares the "per capita" and "land use" methods of
estimating water needs.
City of San Luis Obispo 16
Urban Water Management 1-,.d
City.
GPC /Day
160
..163
151
154
is8
179'
182'
182
175
116
89'
85
1992... 5,304 4,704 42.922 110 98
Ph. to "Nov''T993> 5,236 4,636 43;414 115 -Prof. 103 -Pro %.
111; :. Includes Cal Poly potable water.
(2k: water use assumed constant for this period (600 acre feet/year).
The: lines denoting the: 1989 to 1991 block of years indicate
man datory'rationmy,
I41 January 1 population estimates...- estimates...-i California Department of Finance, Population
Research Unitas revised through 1993:
Table Z.3.4 City Water Use 1980 -1993
City of San Luis Obispo
17
1-36
CITY.,WATER USE PER DAY:
...
Water from ;
Total: City
WTP an d Wells
Water.. Demand
Population:
Total
Year
A:F.J 111
(A.F.1:I2J:
441:
GPC %Day
1980
6,745:.:
6145
34,252...
:176
1981
6,342
34,759!
: =178
,. 1982
5,979:
167:
T983
6.766' :.
6:166
35,660 <:.
- 169
1984
7 437 :.' :.
6,837
361407:
182
1.985
.8 095.,-::
7,495
37,378
193
1986
8,382..:
- 7 782
38,205::
196'
T9.97
8,397'. ;
7 797
38,282'.
196.
1.988
8 413:
.7813
.39,850
- :188
l31
1989
`5,933' ;
5,333.
. 41,027
129
1990
4;792''
4;192
41,958
102
.._.:.:. °1991 :.
...... .................
4,636
4036-
42,178
98
City.
GPC /Day
160
..163
151
154
is8
179'
182'
182
175
116
89'
85
1992... 5,304 4,704 42.922 110 98
Ph. to "Nov''T993> 5,236 4,636 43;414 115 -Prof. 103 -Pro %.
111; :. Includes Cal Poly potable water.
(2k: water use assumed constant for this period (600 acre feet/year).
The: lines denoting the: 1989 to 1991 block of years indicate
man datory'rationmy,
I41 January 1 population estimates...- estimates...-i California Department of Finance, Population
Research Unitas revised through 1993:
Table Z.3.4 City Water Use 1980 -1993
City of San Luis Obispo
17
1-36
Urban Water Managemen, to
Method 1: Water Treatment Plant Production and Population
Per Capita Water Use
Based on Historic Demand, Population and Conservation.
Annual Demand
Less Cal Poly
Per Capita Use
Less 10» Ion¢
term conservation
1997 -Year highest use
Subtract 6W am IM hem local,
based on average demand
convent to gallons and
divide by 365. Divide
by Dapt oc Finance
population astinns (3&=.
subtract 10X.
8,397 acre feet
7,797 acre feet
182 gallons /day
164 gallons /day
Method 2: Metered Use by Development Type and Land Use Element
Per Capita Use
Based on Land Use, Historic Demand and Conservation
Type Of
SFResid
4,033 acre feet
Land Use—
MFRasid
2,926
General Plan
Retail Comm
469
Buildout
Office
437
(1992 Hearing Draft) Svc Industry
487
MotayHetel
675
Hosp, Schools, Parke
1.591
Total Acre Feet
(1) 10,618 acre feet
Per Capita Use
convert to gallons and
169 gallons /day
divide by 366. Divide
by esummed buildwa
population (56,0000).
Excludes Cal Poly pop.
(1)
Land use rates include 10% long term conservation
compared to 1987 use.
Table 2.3.5 Two Methods to Derive Estimate for Individual Water Use Per
Based on the analyis of these two approaches, staff assumed a number of 165 gallons per day
per person for long term water supply planning purposes.
CALCULATION OF CURRENT WATER DEFICIT
USING 165 GALLONS PER PERSON PER DAY AS A PLANNING NUMBER
Current Demand
Gallons per
Person per Day
165 X
City Gallons Per
Population Acre -Foot
43,414 X 1 acre foot
325,851 gal.
Current Safe Annual Yield
Estimate of Current Deficit
Days in
Year
-
X 365
8,024 acre feet
(7,735) acre feet
289 acre feet
City of San Luis Obispo is
/-37
Urban Water Management 1. .
2.4 RELIABILITY RESERVE
P ua
In seeking and accounting for new water supplies, the City will strive for a "reliability reserve"
of 2,000 acre -feet safe annual yield (about 20 percent of projected future water demand at full
build -out).
Basis for Ebb
The concept of "reliability reserve" for long range water planning was presented to the City
Council in 1990. At that time, the City was in the midst of an extreme drought and was
considering building a desalination plant to meet projected short term water supply deficits. This
reserve is intended to maintain adequate City water supplies during unpredictable changes such
as a new worst case drought, loss of one of the City's water sources, or contamination of a
source, and not to allow additional development.
Originally, California water law was created to provide certainty in water supply for individuals
or agencies using a source. However, changing water laws now provide little certainty for
planning future supplies. Recent decisions requiring additional downstream releases for
environmental protection purposes, such as those affecting Mono Lake and the Sacramento -San
Joaquin Delta, have shown that the impacts on all users associated with water supply projects
sometimes must be addressed.
- The City's water supply sources may also be jeopardized by water quality and drought
conditions. Contamination or new requirements for water treatment could reduce the available
supply to the City for an extended period. Also, current safe annual yield estimates for Salinas
and Whale Rock reservoirs are based on historical data since 1943. The recent drought of 1986-
1991 is the controlling period for safe annual yield calculations. If there is a future drought
more extreme than this period, the safe annual yield of the reservoirs will likely be reduced.
These uncertainties prompted the Council to establish a reliability reserve of 2,000 acre feet to
protect the City from water shortages in the future (March 3, 1993, Resolution No. 8135). The
reserve will not guarantee that the City will never experience water shortages in the future, but
- will reduce the impacts associated with reductions in available supplies.
City of San Luis Obispo 19
/r ,70
Urban Water Management
2.5 SILTATION AT SALINAS AND WHALE ROCK RESERVOIRS
Poad
The City shall develop 500 acre feet safe annual yield to account for the loss of water storage
capacity due to siltation at Whale Rock and Salinas reservoirs to the year 2025.
Basis forte
Siltation at reservoirs is a natural occurrence which can substantially reduce the storage capacity
over long periods. The reduction of available storage will reduce the safe annual yield of the
reservoirs. Siltation at reservoirs varies depending on factors such as rainfall intensity and
watershed management practices.. There have been numerous reports addressing siltation at
Salinas reservoir, but no studies have been done for Whale Rock reservoir.
Table 2.5.1 lists the studies for Salinas reservoir and the estimated storage capacities. During
the recent drought, water at Salinas reservoir fell to record low levels. Recognizing the unique
opportunity presented by the low water level, the County contracted with a local engineering
consultant to provide an aerial survey of the lake and prepare revised storage capacity
information. The latest information reveals that the survey conducted in 1975 may have over
estimated the siltation rate at the reservoir. Early studies indicated average annual siltation rates
from 23 acre feet per year to 34 acre feet per year. The study done by the U.S. Geological
Survey in 1975 estimated that the siltation rate was approximately 82 acre feet per year. The
latest information indicates that the siltation rate is on the order of 40 acre feet per year.
Since Whale
Rock is used as
a backup supply
for the City, it
may be many
years until the
lake level drops
to the point
where an aerial
survey of
siltation can be
economically
performed.
Since no
information is
available to Table 2.5.1 Summary of Salinas Reservoir Capacity Studies
indicate what
rate of siltation is occurring at the Whale Rock reservoir, it is assumed for planning that the
annual average rate of siltation is similar to Salinas reservoir. The reliability reserve discussed
in Section 2.4 can offset the additional long term loss.
City of San Luis Obispo 20
/ -3g
TOTAL-rneRi
F
AVG ANNUAL LOSS
YEAR
AGENCY
tJ1PACfrY
caPaarY
USABLE CAPAQTY
Aore feat
Acre feet
Acre f6kfV er
1941
U.S: Army
44;800
26,000
:
1947
: U S .Soil Conservation. Sve
25,860
23.3
..
1953
.
U.S; Soil Conservation Sve,
r
25,590
'. 34.2:.
end.0 S Forest Service'..
1975
U S:: Ge.06j. eel Survey .:
41400
23,200
82 4
1990
County of see tins obiape
41,791
24.03S....
40.1
available to Table 2.5.1 Summary of Salinas Reservoir Capacity Studies
indicate what
rate of siltation is occurring at the Whale Rock reservoir, it is assumed for planning that the
annual average rate of siltation is similar to Salinas reservoir. The reliability reserve discussed
in Section 2.4 can offset the additional long term loss.
City of San Luis Obispo 20
/ -3g
Urban Water Management P,,.a
The safe annual yield from the two reservoirs will be continually reduced as a result of siltation.
The key items which need to be assumed to estimate reduction in safe annual yield are the
average annual siltation rate and the future date for the estimate. If the future date is assumed
to be the year 2025, then a certain loss in safe annual yield can be calculated using the City's
computer model.
Since the storage capacity for Salinas reservoir was last estimated in 1990, the annual loss of
40 acre feet per year can be applied from that date. However, since Whale Rock reservoir's
siltation has never been factored into the total available water storage, the loss of 40 acre feet
per year would apply to the period since the reservoir was constructed in 1961.
SAFE ANNUAL YIELD RED UCTION
DUE TO SILTATION
Reduction of Combined Reservoir Yield (A.F.Y.)
-200
-300
-400
-500
-600
-700
-800
2015
2020 2025 2030 2035 2040 2045 2050
Year
Table 2.5.2 Safe Annual Yield Reduction due to Siltation
Using a planning horizon to the year 2025, there will be an estimated loss of storage capacity
at Salinas and Whale Rock reservoirs of 1,400 of and 2,560 of respectively. Based on this
storage capacity reduction, there will be an estimated reduction in the City's safe annual yield
of 500 af. The results of the analysis are shown in Table 2.5.2. This loss in yield needs to be
taken into account when determining if the City has adequate water supplies to meet future water
demand. Future water supply projects will need to make up for this loss in safe annual yield.
City of San Luis Obispo 21
/.#0
Urban Water Management i .dn
2.6 SUPPLEMENTAL WATER REQUIREMENTS
Poll
The City shall develop additional water supplies to meet the projected demand at build -out of
the City's General Plan. The supplemental water supply amount shall be based on land use
assessment and the adopted per capita water use figure identified for planning purposes in
Section 2.3.
Basis for Ebb
Based on the draft Land Use Element endorsed by the City Council in February 1992 and a per
capita use rate of 165 gallons per person per day (Section 2.3), the projected total amount of
water for the City to serve General Plan build -out is 12,350 acre feet (af). This figure includes
the 2,000 acre feet reliability reserve. Table 2.6.1 shows the build -out water requirement,
reliability reserve, siltation loss, and the resulting supplemental water requirement necessary to
meet projected City water demand.
12,350:
`'af.;:::. .
__.
..
:::::.:.:...........
..
. .
5.775
afi:
Table 2.6.1 Supplemental Water Required for
General Plan Build -Out
City of San Luis Obispo 22
Urban Water Management P...,
2.7 MULTI- SOURCE WATER SUPPLY
Polio
The City shall continue to develop and use water resources projects to maintain multi- source
water supplies, and in this manner, reduce reliance on any one source of water supply and
increase its supply options in future droughts or other water supply emergencies.
Basis for Policy
Having several sources of water can avoid dependence on one source that would not be available
during a drought or other water supply reduction or emergency. There may be greater reliability
and flexibility if sources are of different types (such as surface water and ground water) and if
the sources of one type are in different locations (such as reservoirs in different watersheds).
The Water Element of the General Plan, adopted in 1987, identified multiple water projects to
meet projected short and long term water demand. Again in November 1990, the Council
endorsed the multi- source concept.
City of San Luis Obispo 23
_ #0Z
Urban Water Management _ .i
2.8 ALLOCATION OF NEW WATER SUPPLIES
foa -Y
2.8.1 BALANCING SAFE YIELD AND OVERALL DEMAND
When new water sources are obtained, the additional safe yield shall be allocated first to
eliminate the deficit between the adopted safe annual yield (Section 2.1) and the present demand
as defined in Section 2.3 at the time the new source is obtained.
2.8.2 DEVELOPMENT AND RELIABILITY RESERVE
Any additional safe annual yield beyond that needed to balance safe annual yield and projected
demand will be allocated (A) one -half to development and (B) one -half to the reliability reserve
and compensating for reduced yields due to siltation.
2.8.3 ACCOUNTING FOR RECLAIMED WATER
Reclaimed water shall be accounted for as a "nonpotable" supply as identified under Section
2.10.3. Use of reclaimed water shall not be considered as a component of the City's safe annual
yield, but may affect potable water demand for potable supplies as reclaimed water use
increases.
2.8.4 PRIVATE WATER SUPPLIES
When developments are supplied by private groundwater wells, the yield of those wells will not
be counted toward the City's safe annual yield. Such yield, however, will result in the demand
for City water supplies being lower than it otherwise would be, which may necessitate
adjustments of the per capita water usage figure used to estimate overall demand.
Basis for Polio
The City has pursued numerous water supply projects over the years. These projects are
discussed in Chapter 3 of this report. This section of the document addresses allocation of these
supplies once the yields from projects are realized. The City has identified these potential uses
for new supplies:
• Eliminating the deficit between adopted planning figures and safe annual yield;
• Compensating for reduced yields due to reservoir siltation;
• Establishing a reliability reserve;
• Providing for water requirements for future development within the urban reserve area
designated in the General Plan.
Allocation of new supplies can balance the needs of all areas identified while not compounding
the potential water shortage problems for existing City water customers.
City of San Luis Obispo 24
-7-3
Urban Water Management t.ann
A major concern is the deficit between projected water usage levels and safe yield (see Section
2.1 and Section 2.3). As this deficit becomes larger, present and future water customers must
cut back more from their typical use levels during droughts or other water supply shortages.
In 1993, this deficit is about 289 acre -feet, considering a long -term usage rate of 165 gallons
per day per City resident, the 1993 City resident population, and a safe yield of 7,735 acre -feet.
Once the City's water supply deficit has been "balanced ", half of the identified safe annual yield
from new water supply projects should go toward offsetting the siltation deficit and establishment
of the "reliability reserve" and the other half should be designated for development purposes.
By following these guidelines, the certainty of water supplies for all City water customers will
be increased while still allowing for additional development.
The reliability reserve is like an insurance policy (Section 2.4). Some added yield can be
assigned to the reserve rather than other desired uses, to help assure that the City will have
enough water despite unforeseen losses of supplies. However, there are costs of buying this
insurance, both in higher charges for water customers and in foregone uses for the added yield.
Considering these costs, it would be prudent to build the reserve in steps rather than commit a
very large part of the City's water resources at one time. Using the comparison of buying
insurance, the City will make several payments over time rather than one big payment initially,
evaluating the level of risk and the desired amount of reserve as years go by.
City of San Luis Obispo 25
1— #If
Urban Water Management an
2.9 WATER ALLOCATION AND OFFSETS
Polio
2.9.1 SUPPLYING NEW DEVELOPMENT
The City will make available to new development only that amount of safe yield which exceeds
projected water use (Section 2.3), less the amount to compensate for siltation losses (as stated
in Section 2.5) and to provide a reliability reserve (as stated in Section 2.4). Available
allocations will be assigned to development in a way that supports balanced growth, consistent
with the General Plan.
2.9.2 EXEMPTIONS FOR OFFSETS
A. When there is no safe yield to allocate to a project, that project may be built if the developer
makes changes, in facilities served by the City, which will reduce long -term water usage
equal to the allocation required for the project.
B. The City may exempt a project from needing an allocation or an offset, or it may reduce the
amount of the required allocation or offset, to the extent that the project is supplied by a
suitable, private well which will not significantly affect the yield of City wells. The City
will consider the cumulative effect of wells in the groundwater basin in making this
determination.
2.9.3 BASIS FOR ALLOCATIONS AND OFFSETS
Required allocations and offsets will be based on long -term usage for each type of development.
(These use and offset factors will be determined and published by the City, and may be revised
as warranted by new information.)
Basis for Policy
In 1988, the City began to formally account for long -term water usage in new development.
The allocations have been based on histories of water usage for various kinds of development.
At first, the City decided to allocate some water for new land development projects even though
city-wide water usage exceeded safe yield. As the 1986 -1991 drought continued, and the
projected completion of proposed supplemental supply projects moved farther into the future,
the City decided that there should be no new development that would increase water usage. As
a result, nearly all construction since 1990 has been:
■ Replacement buildings, using the same or less water;
■ Additions or remodels which do not substantially affect water usage;
City of San Luis Obispo _ 26
/—'1--:500
Urban Water Management 1,Wi
■ Projects which have retrofitted facilities served by the City, to save (offset) twice the amount
of water which would be allocated to the project. Installation of low -flow toilets,
showerheads, and faucets have accounted for most of the offset credit. Substantial credits
were also earned by installing water recycling equipment in businesses.
Also, a few relatively small projects were able to do little or no retrofitting because they were
supplied with groundwater through private wells. Some projects have utilized more than one
of these strategies to proceed despite the lack of water allocations.
Until available safe annual yield exceeds long -term demand (per Section 2.3), the City will have
no water to allocate to new development. Many facilities have been retrofitted (as of 1993,
about 26% of all potential facilities). Retrofitting has helped reduce total water usage.
A two - to-one offset ratio was established due to the uncertainty of savings factors initially used.
Now, a comprehensive toilet replacement study completed in June 1992 by the Metropolitan
Water District of Southern California indicates the water savings factors used by the City are
accurate. The study analyzed 23,000 dwellings and documented water savings associated with
toilet retrofitting. This study is now used state -wide as a basis for water savings associated with
toilet retrofit programs. Requiring an offset -to- allocation ratio greater than one -to -one means
that long -term water use will decline even as development occurs. Also, requiring a ratio much
greater than one - to-one makes projects less feasible and raises questions of equity.
An offset ratio of one- to-one would be consistent with the policies of this plan, because:
■ The long -term usage factors used to determine the required offset amounts generally reflect
usage in projects built several years before the 1986 -91 drought, when toilets and
landscaping were less efficient than those installed under 1993 standards;
■ Retrofitting which does not receive development credit (all rebates and many additions and
remodels) will continue to produce net savings.
City of San Luis Obispo 27
71.0
Urban Water Management ..an
2.10 RECLAMM WATER
P_lmc
2.10.1 RECLAIMED WATER QUALITY
The City will produce high quality reclaimed water, suitable for a wide range of nonpotable
uses.
2.10.2 USES OF RECLAE IED WATER
The City will dedicate to San Luis Obispo Creek one cubic foot per second of reclaimed water
for aquatic and riparian habitats. The City will make available reclaimed water to substitute for
existing potable water uses and to supply new nonpotable uses.
2.10.3 ACCOUNTING FOR RECLAIMED WATER
As reclaimed water supplies new development or substitutes for potable water in existing
development, reliable yield of nonpotable water will be increased. Reclaimed water will be
credited to non- potable reliable yield not when it is potentially available at the treatment plant,
but when it is actually available to a user upon the completion of the necessary distribution
facilities.
2.10.4 CITY RECLAIMED WATER PROJECTS
When the City provides distribution facilities that allow substitution of reclaimed water for
potable water, the resulting reduction in potable water demand will be given offset credit for
government projects (including new City parks or buildings), under any policies or rules limiting
the amount of water which can be allocated to development projects.
2.10.5 PRIVATE RECLAIMED WATER PROJECTS
A. When a developer of a private project provides distribution facilities that allow substitution
of reclaimed water in facilities that have used potable City water, the resulting reduction in
potable water demand will be credited to any allocation of potable water needed for the
developer's project, at a one - to-one ratio, similar to the offset credit.
B. When a developer of a private project provides distribution facilities that allow use of
reclaimed water in that project, any required potable water allocation for that project shall
be reduced by a corresponding amount.
2.10.6 COMBINED RECLAB= WATER PROJECTS
When a component of the reclaimed water distribution system is funded in part by the City and
in part by a private developer, the credit for reduction in potable water usage resulting from that
City of San Luis Obispo 28
Urban Water Management 1-ian
component shall be divided in a proportionate share between the City and the developer based
on the respective contribution to the component.
Basis for Policy
Reclaimed water is highly treated wastewater (sewage) which can be used for most nonpotable
purposes. The City's Water Reclamation Facility (formerly known as the Wastewater Treatment
Plant) has been upgraded to the point the effluent can be used directly for landscape and
agricultural irrigation and other uses such as industrial processes and toilet flushing in certain
types of buildings.
Most treated effluent, in the past, has been discharged to San Luis Obispo Creek. A small
amount of effluent has been used at the treatment plant site for landscape irrigation. Reclaimed
water will be used for additional landscape irrigation at the Water Reclamation Facility and on
City-owned land in the vicinity, and for ponds to benefit wildlife.
Use of reclaimed water beyond the treatment plant area will' require a distribution system
separate from other water lines. Reclaimed water can be used to supply nonpotable uses in new
development -and to offset potable uses in existing development. These potential uses require
a deliberate method to account for reclaimed water use, consistent with policies concerning total
water requirements and other water sources.
Long -term funding for the necessary reclaimed water distribution system is expected to come
from charges for the use of reclaimed water. Initial expenses may be funded from bonds, low -
interest State loans, and developer contributions.
City of San Luis Obispo 29
/—YQ
Urban Water Management _ _a
2.11 CAPITAL IMPROVEMENT PLAN - Water Distribution
P_lid
The City shall replace aging waterlines at the yearly rate of 2% of the replacement value of the
water distribution system (about $1.5 million annually in 1993 dollars).
Basis for Policy
Growth within the city has placed increased demands on the water distribution system. Many
pipes throughout the City are over 100 years old, and are too small to meet current fire -flow
requirements. Even without growth or fire protection requirements, deteriorated pipes must be
replaced to avoid leaks and major service disruptions. Historically, the City has not funded
distribution system replacement sufficiently to ensure replacement prior to reaching the end of
the infrastructure's service life. Therefore, the system has deteriorated, causing frequent water
main breaks.
This problem was partially addressed several years ago during the budget process when funding
for annual replacement of waterlines was increased to $600,000 (based on an average
replacement rate of about 2% and a 50 year life) for an estimated 150 miles of pipelines.
Within the past several years, staff has developed a computer data base which includes all
pipelines within the City, to facilitate scheduled maintenance and access to historical
information. Following input of all the pipeline sections, the data base revealed that there are
actually 290 miles of mains (excluding service laterals) with an estimated replacement value of
$75,000,000. Therefore, replacing 2% of the infrastructure annually would require about
$1,500,000 per year in 1993 dollars.
Since funding has not been adequate, the system has deteriorated to the point that funding
beyond the 2% level may be warranted in the future.
City of San Luis Obispo 30
/-Y9
14-11- -. w z C
SUPPLEMENTAL WATER SUPPLY PROJECTS
WATER SUPPLY SOURCES
Po-lid
The City shall pursue the expansion of the Salinas reservoir, the Nacimiento Reservoir Diversion
project, water reuse and water demand management activities as supplemental water supply
sources to meet current and projected future water demand. Other water supply projects shall
be considered in the future if warranted.
3.1 SALINAS RESERVOIR EXPANSION PROJECT
Introduction
The Salinas Reservoir (also known as Santa Margarita Lake) was constructed in 1941. The
original design of the dam included operable spillway gates which would have increased the
maximum water surface elevation at the spillway crest from 1,300.74 to approximately 1,320.0
feet. Because of uncertainties at the time of construction, the spillway gates were never
installed. The Salinas Reservoir expansion project would involve the installation of gates which
would result in an increase of available storage capacity from 23,843 acre -feet (af) to 41,790 of
with an increase of an estimated 1,650 acre -feet per year of safe annual yield.
Background
The Salinas Dam was constructed by the War Department (now U.S. Army Corps of Engineers)
in 1941 to provide water to Camp San Luis Obispo and the City of San Luis Obispo. The Corps
of Engineers filed and received an application to appropriate water from the Salinas River with
the Division of Water Resources (now State Water Resources Control Board, Division of Water
Rights) on May 27, 1941. The City of San Luis Obispo filed and received an identical permit
on June 4, 1941. The City's right to appropriate water for beneficial use is second in time and
right to the Corps permit. Both permits allow a direct diversion of up to 12.4 cubic feet per
second (cfs) between January V and December 31' and a diversion to storage for later use of
up to 45,000 A.F. between November 1" and June 30* of each season. There is also a third
application to appropriate water from the Salinas River filed by San Luis Obispo County
Waterworks District No. 6 which serves the town of Santa Margarita. This permit was filed on
February 26, 1947 and allows for 1.5 cfs by direct diversion all year round and up to 200 A.F.
diverted to storage during the period from November 1" and June 301 of each season. Since this
permit was filed after the Corps and City's permits, it is junior to the rights of the other permits.
City of San Luis Obispo _ 31
-50
Urban Water Management r,an
The original construction plans for the dam included the installation of an operable spillway gate
to provide an estimated storage capacity of approximately 45,000 acre -feet. During the "fast
track" construction of the dam, a small fault was discovered beneath the right abutment (right
side of dam, looking downstream). There was concern at the time for the dam stability and
therefore the gates were not installed. As a historical note, the spillway gates intended for the
Salinas Dam were installed at Friant Dam in the foothills above Fresno.
Studies
The Phase I report for "Salinas Reservoir Expansion Project" was completed in February 1989
by Woodward -Clyde Consultants. Part I of the report provided geotechnical, seismicity, and
dam safety evaluation. Part 11 analyzed the hydrology, reservoir yield, and an evaluation of
alternatives. The outcome of the analysis revealed that the dam was strong enough to withstand
a major earthquake (7.4 magnitude) on the nearby Rinconada Fault without failing or causing
a sudden release of water from the reservoir. The analysis also found that raising the dam 19
feet would produce an additional 1,650 acre feet per year of safe annual yield from the
reservoir.
The firm of Woodward -Clyde Consultants was retained by the City in March of 1992 to prepare
the environmental impact report for the proposed Salinas Reservoir Expansion Project. Detailed.
evaluation of the impacts associated with the raising of the maximum water surface elevation
revealed major impacts to the recreational facilities and roadways at the lake. It was determined
that a detailed recreational relocation plan was necessary to allow for the evaluation of the
impacts associated with this work to be addressed in the EIR. The conceptual recreation
relocation plan has been completed to the satisfaction of County Parks staff and the draft EIR
was released in November 1993. Council certification of the final EIR is tentatively scheduled
for March 1994.
The EIR represents one of the two major hurdles that need to be crossed prior to proceeding
with the project. The second issue relates to the ownership of the Salinas Dam and related
facilities. The Corps of Engineers currently owns the dam and property surrounding the lake.
Since the facilities are not utilized to supply water to Camp San Luis Obispo, the Corps has
expressed interest for many years in relinquishing ownership of the facilities. The Corps has
indicated that they will not allow the expansion project to proceed unless ownership is
transferred to a local agency. The discussions concerning which local agency, either the City
or County of San Luis Obispo, should ultimately own the facilities has been debated for many
years. On November 17, 1992, the City Council supported the ownership transfer to the County
of San Luis Obispo, provided an acceptable agreement could be prepared which protects the
City's interests in the facilities. City and County staff have been working closely to develop an
agreement acceptable to both parties.
Protect Schedule
Following certification of the EIR and agreement on the transfer of ownership in the facilities,
there are a number of additional steps which will have to be accomplished prior to proceeding
City of San Luis Obispo 32
-S/
Urban Water Management t,..a
with construction. The items are listed in Table 3.1 with estimated time frames necessary to
accomplish each task.
:,Task
Time Frame
1 Ownership Transfer.:
Legislation Allowing' Transfer
1. year
Studies Necessary.: for Transfer
6 months:
2 Permitting /Design
1: year
3 Construction:
1: year
Table 3.1 Salinas Reservoir Expansion Project Schedule
City of San Luis Obispo _ 33
i —sat
Urban Water Management , ,an
3.2 NACEMMNTO PROJECT
Introduction
San Luis Obispo County Flood Control and Water Conservation District ( "District ") has an
entitlement of 17,500 acre -feet per year of water from Nacimiento Reservoir. Boyle
Engineering has been hired by the District to study the feasibility and make recommendations
regarding the transportation and use of this water. The City of San Luis Obispo has tentatively
requested an allocation of 6,265 acre feet from the Nacimiento project.
Background
Nacimiento Reservoir is located in San Luis Obispo County on the Nacimiento River about 12
miles above its confluence with the Salinas River. The reservoir provides flood protection and
is a source of supply for groundwater recharge for the Salinas River Valley. The dam is owned
and operated by Monterey County Flood Control and Water Conservation District. Although
Monterey County retains a majority of the water rights to the reservoir, San Luis Obispo County
is entitled to 17,500 acre feet of water annually. Approximately 1,300 acre feet per year have
been designated for use around the lake, leaving 16,200 acre feet per year for allocation to other
areas within the County of San Luis Obispo.
The District has contracted with Boyle Engineering to provide engineering services for an
evaluation of the Nacimiento project. The District has requested that agencies interested in
future participation in the Nacimiento project share in the costs associated with the preliminary
studies. The agency costs are proportional to the allocation requests. Asking the agencies to
share in the cost of the preliminary studies was intended to limit unrealistic requests. Among
other requirements established to limit allocation requests, each agency must show consistency
with their approved general plan.
Based on the requested allocations, the project is currently about 60% oversubscribed. Some
areas lying within the City's Urban Reserve Line requested allocations independently. This
resulted in some double requests for the same areas. Though some agencies may eventually
decide not to participate, future adjustments to the allocation requests may to be necessary.
Several alignment and treatment options are currently being considered. Two alternatives
involve use of Nacimiento water in the North San Luis Obispo County and the City of San Luis
Obispo only. This water would be delivered either raw or treated at a regional water treatment
plant near Lake Nacimiento. The North County alternatives would deliver water to purveyors
along the 101 Freeway corridor to the City of San Luis Obispo. A third alternative would
deliver treated water to Chorro Valley as well as the North County. The Chorro Valley turnout
would provide water to coastal purveyors to the west. The fourth alternative includes delivery
of treated water to the North County, Chorro Valley, and to coastal and inland purveyors to the
south.
City of San Luis Obispo _ 34
i -s3
Urban Water Management Plan
Studies
Phase I of the study involved an evaluation of the reliability of the Nacimiento Project to deliver
water at a maximum amount of 17,500 acre feet per year. Phase I was completed and presented
to the County Board of Supervisors in December 1992. At the December meeting, the Board
also approved proceeding with Phase 11 of the feasibility study. The results of the reliability
assessment concluded that the Nacimiento Project can deliver 17,500 acre feet per year based
on historic hydrologic data. The analysis indicated a number of months during the most recent
drought when deliveries would have been reduced. However, deliveries from subsequent months
could be increased to make up for the reductions resulting in total deliveries of 17,500 acre feet
for the year.
Phase R of the study provides a preliminary engineering evaluation, a geotechnical study, and
initial environmental review. The purpose of Phase II is to analyze and determine the best
pipeline alignments, to determine facility requirements, estimate costs, and to determine probable
environmental impacts. The draft reports are scheduled to be completed by December 1993 and
presented to the Board of Supervisors in February 1994.
Work on Phase III is scheduled to begin in January 1994. The third phase will involve -the
preparation of a final report identifying the recommended overall project and the presentation
of that information to the County Board of Supervisors and other public agencies. The final
report and presentations are anticipated to be completed by February 1994.
Project Cost
Participation in .Phase I of the preliminary study and evaluation was expected to cost the City
$3,979. Phase H is expected to cost $43,457 with Phase III estimated to cost $8,425.
Therefore, the total cost for participation in the preliminary study and evaluation of the
Nacimiento project is $55,862.
Even with the preliminary evaluation and feasibility study complete, several steps still remain
before the project can be constructed. Preparation and certification of an Environmental Impact
Report is the next major step in the Nacimiento project. Geotechnical studies and preliminary
design will also be performed before the final determination of project participation can be
made. These items are expected to cost between $600,000 and $1,000,000. The City's
participation percentage is likely to range between 24% and 36 %. Thus, the City's share of
these costs would be between $144,000 and $360,000. A separate participation agreement will
be prepared for this phase of the project.
Once those studies are performed and the final participation in the project is determined, final
design of the facilities and project financing can be prepared. Another participation agreement
will be required for this phase. The total cost of the final design is expected to be around $1
to $2 million, depending on which treatment and alignment alternative is selected. The City will
be required to pay its prorated share of these costs.
City of San Luis Obispo 35
Urban Water Management r,an
The remainder of the project involves the construction of the pipeline, related facilities, and
treatment plant(s). The construction will be debt - financed and the costs paid for through the
water pricing. Preliminary estimates indicate the cost of treated Nacimiento water to be
approximately $900 to $1,100 per acre foot in 1993 dollars for the City of San Luis Obispo,
depending on the treatment and alignment alternative that is ultimately chosen.
City of San Luis Obispo 36
J�
Urban Water Management I..,
3.3 WATER REUSE
Introduction
Reuse of the highly treated water produced by the City's Water Reclamation Facility is a drought
resistant portion of the City of San Luis Obispo's multi- source water plan. It is estimated that
50% of water used in the City is used for purposes where non - potable water would be adequate.
Recycled water has not been used by the City due to its low quality, regulatory constraints,
public acceptance, and cost of distribution. Increased demand for water and recent
improvements to the treatment process make it feasible to consider reuse as a source of water
for non - potable demands. Recycled water may be used for:
• Irrigating parks, school yards, golf courses, and residential yards,
• Washing cars, mixing concrete, compacting soil and controlling dust,
• Process and cooling water for industrial applications,
• Fire protection.
The objectives of the San Luis Obispo water reuse project are to:
1. Develop a dependable water supply that will meet non - potable demand,
2. Improve the water quality of San Luis Obispo Creek,
3. Comply with the Federal Clean Water Act and California Inland Surface Water Plan,
4. Efficiently manage the water resources of the City of San Luis Obispo.
Background
The Water Reclamation Facility produces approximately 4,000 acre -feet of disinfected tertiary
treated reclaimed water per year. This water is suitable for most uses other than drinking and
food preparation. Production is at a consistent rate of 5.5 cubic feet per second or 3.6 million
gallons per day. The City proposes to dedicate a release of 1.0 cubic foot per second to the
maintenance and enhancement of the in- stream habitat of San Luis Obispo Creek (720 acre feet
per year). Since most of the recycled water will be used for irrigation, only 1,830 of the
remaining 3,280 acre -feet will actually be useable because of seasonal fluctuations in water
demand for irrigation (see Figure 2). Demand for irrigation water is very limited during the
winter. The City does not plan to construct seasonal storage.
The City conducted a survey in August, 1991, to determine the level of interest in the use of
recycled water. Several large volume irrigation users are potential customers. Ninety-five
percent of those responding to the survey were supportive of the project. The use of 1,830 acre -
feet per year of recycled water may offset the use of between 500 and 1,000 acre -feet per year
of existing potable water. The remainder could offset private groundwater use or new demands
for non - potable water. Targeted large volume users of recycled water include Cal Poly, City
and County parks, the City golf course, local schools, State of California, Department of
Transportation, and areas to be developed within the City.
City of San Luis Obispo 37
l S4
Urban Water Management _ .1
WATER REUSE PROJECT
350
t
c
TOTAL PLANT OUTPUT (4,000 af/yr)
300
0
E 0
'm
w
f9
Q 200 E
2
y
O
O:
H 15
LU
W 100--/
U
2
5 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
W
W
'�'{�iu�n7R�S252�tir���,S�z�Sr„ .�i: .t � r•G
DEDICATED TO SAN LUIS OBISPO CREEK
0720 at /Yr
Figure 2 PRODUCTION AND DEMAND - RECLAIMED WATER
Proposed Distribution System
The Water Reuse Project will construct a distribution system to deliver recycled water to large
volume customers throughout San Luis Obispo. The system will be designed for future
expansion to serve small volume users, when it becomes economically feasible to do so.
Components of the distribution system will include pump stations, water storage facilities,
treatment equipment, pipelines, and valves.
A portion of the recycled water will be discharged to San Luis Obispo Creek to support riparian
habitat. The remainder will enter the recycled water distribution system to be delivered to
customers. A pump station located near the storage pond at the Water Reclamation Facility will
pressurize the distribution system. Booster pumps are needed to provide the proper pressure
throughout the City. Initial planning calls for them to be located near the intersection of
Industrial Way and Sacramento Drive, and at the Emerson School site. Approximately 8 -1/2
miles of new pipeline will be installed and approximately 2 -1/2 miles of abandoned petroleum
pipelines will be converted to recycled water use. Storage will be provided by expanding the
City of San Luis Obispo 38
/ -S7
�
rr/ �
IRRIGATION
(7,830 eflY�)
0
_,-MAXIMUM TO IRRIGATION
/
Figure 2 PRODUCTION AND DEMAND - RECLAIMED WATER
Proposed Distribution System
The Water Reuse Project will construct a distribution system to deliver recycled water to large
volume customers throughout San Luis Obispo. The system will be designed for future
expansion to serve small volume users, when it becomes economically feasible to do so.
Components of the distribution system will include pump stations, water storage facilities,
treatment equipment, pipelines, and valves.
A portion of the recycled water will be discharged to San Luis Obispo Creek to support riparian
habitat. The remainder will enter the recycled water distribution system to be delivered to
customers. A pump station located near the storage pond at the Water Reclamation Facility will
pressurize the distribution system. Booster pumps are needed to provide the proper pressure
throughout the City. Initial planning calls for them to be located near the intersection of
Industrial Way and Sacramento Drive, and at the Emerson School site. Approximately 8 -1/2
miles of new pipeline will be installed and approximately 2 -1/2 miles of abandoned petroleum
pipelines will be converted to recycled water use. Storage will be provided by expanding the
City of San Luis Obispo 38
/ -S7
Urban Water Management Pian
sedimentation ponds along Highway 101 and reactivating abandoned Reservoir lA on Fox
Hollow Road. A single six acre pond will be eight feet deep. The top two feet will provide 3.9
million gallons of short term storage without draining the pond. Reservoir 1A, a concrete lined,
covered storage basin that was built in 1910, will be repaired to provide an additional 5.0
million gallons of storage.
Recycled water will be delivered to customers through a service meter near their property line.
Customers will provide and install the necessary facilities to distribute the recycled water
throughout their properties. Each user will install safety devices to ensure the proper use of
recycled water. The required safety features may include approved backflow prevention devices,
new plumbing to separate potable water from recycled water, and modification to irrigation
systems to prevent over -spray and over - watering.
Operation and Maintenance
The City's Wastewater Division will operate the Water Reclamation Facility and the water reuse
pumps and filters located at the Water Reclamation Facility. The City's Water Division will
operate and maintain the recycled water distribution system.
The City will monitor the customer's compliance with the rules and regulations established for
the safe use of recycled water.
Future Development Areas
Recycled water may be used for irrigation of residential yards with dual plumbing. It is unlikely
that it will ever be economical to install the distribution system and separate plumbing for use
of recycled water in older residential areas. Recycled water may be used in commercial and
industrial facilities for toilet flushing, cooling and rinse water, car washing, concrete mixing,
boiler water, and other uses permitted for "Disinfected Tertiary Reclaimed Water ".
The most cost effective use of recycled water will be in new construction and development
where the dual distribution and plumbing systems can be built as an integral part of the original
construction. The Water Reuse Project is configured to be able to serve those areas identified
in the General Plan Land Use Element as the principle expansion areas.
If recycled water is provided to downstream agriculture outside the city limits, it should be
delivered via a pipeline. The water could be metered for accurate billing, environmental
degradation would be lessened by keeping nutrients out of the creek, and the potential for water
theft would be minimized. Before water is delivered to downstream users, consideration should
be given to setting a termination date for each service to prevent the City from becoming
obligated to continue such services outside the City in perpetuity.
City of San Luis Obispo _ 39
Urban Water Management Tian
Proiect Schedule
The schedule for the water reuse project is as follows:
Activity
•Complete project CEQA review
•Complete project engineering report
•Complete project design
*Complete project construction
Staffine Evaluation
Date
June 1994
December 1994
June 1995
June 1996
It is proposed that the Water Distribution Maintenance and Customer Service Division be
responsible for the recycled water distribution system. Until agreements are reached for
supplying recycled water to various areas of the City, it is impossible to determine the level of
staffing which will be required to maintain the system and read the water meters. Staff will
return to Council at a future date to evaluate the options.
City of San Luis Obispo
40
1-5f
Urban Water Management Pian
3.4 WATER DEMAND MANAGEMENT
Introduction
Water demand management practices and technology have advanced significantly in the last
several years in reaction to the drought of 1986 -1991. Historically, water demand management
was viewed as an emergency response to extreme water shortage situations. As demand for
water resources increase due to growing population and agricultural needs, the importance of
using our water wisely and efficiently is imperative to assure adequate, reliable water supplies
in the future.
Background
Water demand management, or water conservation, was first referenced as a part of the City's
water management policy in the 1973 General Plan. In 1985, the City Annual Water
Operational Plan policy formally established water demand management as a means to extend
water supplies during projected water shortages. From 1988 (when an aggressive water
conservation program was implemented) to October 1993, approximately 14,400 acre -feet of
water savings can be attributed to the water efficiency programs implemented during that period.
In 1990, the City endorsed a multi- source water plan in an attempt to solve both short-term
water shortages and establish long term solutions to the City's water needs. Because of the
difficulty in developing new water supply projects, there has bee a philosophical shift in
perception of water demand management as crisis management vehicle in 1985 to a water supply
alternative for the future.
Water Demand Management Program Direction
In September 1991, the Council approved signing the "Memorandum of Understanding" (MOU)
regarding water conservation and the implementation of the "Best Management Practices"
(BU s). The BMP's are listed in Appendix H. This signifies a minimum ten year commitment
to implement and evaluate the water efficiency measures presented in the MOU.
Using the BMP's as a road map for future water demand management program implementation,
a balanced program of providing information and assistance to the City's water customers is
necessary to maintain the water use reductions levels required to stabilize the City's water
supplies. Many valuable studies which the City could not afford to perform are being funded
and administered by the BMP signatory group, the California Urban Water Conservation
Council. These studies will have a direct benefit to the City by providing a method to analyze
water conservation programs for cost effectiveness and to quantify reliable savings associated
with specific programs.
City of San Luis Obispo - 41
/'Co 0
Urban Water Management ..an
3.5 OTHER SUPPLEMENTAL WATER SUPPLY PROJECT ALTERNATIVES
3.5.1 DESALINATION
Background
In May 1990, the City was faced with the prospect of reaching minimum pool in both of its
surface water supply sources within an 18 to 20 month period. In response to the crisis, the
City embarked on a short term desalination feasibility investigation. The consulting firm of
James Montgomery Engineers was hired to prepare a study which evaluated the various
desalination methods, site options, joint venture opportunities, and financing. The project also
had termination or "Go /No -Go" date established after the 1990 /91 rainy season to determine if
a change in direction was warranted due to any change in water storage resulting from winter
storms. The preliminary analysis concluded that 3,000 acre feet per year of desalted water could
be provided by using reverse osmosis technology which was considered the most cost effective
technology at that time to meet the City's needs. The project cost was estimated to be $19.5
million. The recommendation was based on capital costs, operation and maintenance costs,
decommissioning costs, aesthetics and environmental concerns. Due to the limited time available
to site the facility and build the necessary infrastructure, a tentative agreement with PG &E was
reached to locate the short-term facility at the Morro Bay power plant utilizing their seawater
intake and outfall facilities.
The "Miracle March" rains of 1991 provided adequate runoff and subsequent increased water
storage in the City's reservoirs to allow termination of the desalination project. The City
Council officially directed staff to discontinue the project on April 16, 1991.
Future Desalination Water Supply Project
Using desalted water as a future supply water source will have to be investigated independently
of the past research and study projects. Because the previously discussed desalination endeavor
was planned to be a short term water supply to meet a crisis situation, the cost analysis,
location, environmental review, and technological information would have to be reevaluated for
a long term project.
Desalination is a viable technology which is not rainfall dependent. The major disadvantages
of desalination are the cost, potential environmental degradation, and energy demand. When
compared to existing water supplies and other future water supply options under consideration,
desalted water is significantly more expensive at this point in time. Desalination may be a water
supply consideration in the future if other water supply project currently under review are not
accomplished. Also, advances in desalination technology in the future may reduce the costs to
a more acceptable level when compared to the cost of other water supply sources.
3.5.2 CLOUD SEEDING
The City of San Luis Obispo activated a three year cloud seeding program in January 1991 in
response to the continuing drought and limited surface water supplies at Salinas reservoir. The
City of San Luis Obispo 42
/-6/
Urban Water Management Pan
program "targeted" the Salinas and Lopez Reservoir watersheds, and the County of San Luis
Obispo paid their prorata share of the total cost for the cloud seeding program. The City's
participation the program ended in January 1993, when the Salinas Reservoir filled to capacity
and began spilling.
Evaluations of each year's cloud seeding program were completed following each winter season.
Estimates of increased rainfall precipitation ranged from 11 % to 14% for the Salinas and Lopez
Reservoir watersheds. These were substantial increases and proved to be a cost - effective means
of enhancing runoff during periods when Salinas Reservoir or Lopez lake water levels are low.
Salinas Reservoir's watershed runoff characteristics are favorable for producing significant runoff
during normal rain seasons. Therefore, cloud seeding is not viewed as an annual program but
as a program that the Council may approve following below normal rainfall years and /or periods
when significant storage is available in Salinas Reservoir to capture additional runoff. Staff will
evaluate the need for a cloud seeding program following each year's rainfall season and provide
a recommendation to Council for the next year's winter season as part of the annual Water
Operation Plan (brought to Council in the spring of each year).
3.5.3 SALINAS TO WHALE ROCK TRANSFER
The idea of transferring water which would otherwise spill downstream from Salinas reservoir
to Whale Rock Reservoir was evaluated by staff and presented to Council in 1993. Since Salinas
Reservoir spills frequently in contrast to Whale Rock Reservoir, the potential exists to transfer
significant quantities of Salinas Reservoir water (which would otherwise overtop the Salinas dam
spillway and flow downstream) to Whale Rock Reservoir. The analysis revealed numerous
obstacles and limitations, and Council directed staff to not proceed at this time with further
studies relative to this project.
City of San Luis Obispo _ 43
1-46 a?-
Urban Water Management .,an
• : WMW:_ '
WATER OPERATIONAL PROGRAMS
WATER OPERATIONS
P-0-Ma
The City shall strive to provide an adequate supply of high quality water which
• meets all Federal and State standards;
• provides uninterrupted water flow at sufficient pressures;
• provides fire protection;
• sustains city-wide water efficiency programs.
The City shall allocate funding to meet the goals and objectives presented in this chapter (also
see Chapter 5).
Introduction
The City has depended on imported water supplies from Salinas reservoir since 1944, Whale
Rock reservoir since 1961, and limited local groundwater sources since 1989. Figure 3 shows
the City's reservoir water supplies and delivery system. This chapter will describe the existing
water system, operation and maintenance procedures, and identify current and future system
deficiencies.
4.1 WATER TREATMENT
The City currently receives its water from three sources, Salinas Reservoir, Whale Rock
Reservoir, and groundwater. Over the past twenty years, surface water treatment and
groundwater treatment standards and regulations have become more stringent. With the
enactment of the Safe Drinking Water Act (SDWA) in 1974, Congress authorized the federal
government to establish national drinking water regulations. Since that time, many amendments
have been made to the act which require additional monitoring and thereby increased operational
costs. The following sections discuss the impacts of the current regulations on the City's water
treatment facilities and potential impacts of any foreseeable amendments to the current
regulations.
City of San Luis Obispo _ 44
1-63
Urban Water Management Pta,i
,i
,r
r ,
TZ
a.n
ren:Ro
RA r
...a urttm
..:re
MORRO E
tos
otoi i. Treatment.
.�..Y . •,,•- Plant r•„
.t i ,� ~- l,••,1. ,. .,° lo',�a tiles
CAI Q
•t• •Iw r .• n '/tU15N •'. r••1... �f�
ii � canto„
I
CADERO .., s
'
'•`� AT
Whale Rock
•'-
Reservoir
.r
\ Gal i
� �
'
rallAy K r w.......�..
M1i
Army Line
OF
Whale. Rock Line
_.;'A••
r
',
1
�• ._� t'
r•i+r .•. LUn noun �S
tos
otoi i. Treatment.
.�..Y . •,,•- Plant r•„
.t i ,� ~- l,••,1. ,. .,° lo',�a tiles
CAI Q
•t• •Iw r .• n '/tU15N •'. r••1... �f�
ii � canto„
I
CADERO .., s
\ Gal i
� �
'
rallAy K r w.......�..
�•
Army Line
MlIGA L i Ga11y
AI
�=
SANTA
"• • MANGAR/r.r
Aaf •'�
Salinas
Reservoir
LUIS OBISPO !'
r I `•\
Figure 3 CITY'S WATER SUPPLY AND CONVEYANCE SYSTEM
4.1.1 SURFACE WATER
Background
The City of San Luis Obispo depends on surface water to meet most of its water requirements.
The Salinas Reservoir, located nine miles southeast of the community of Santa Margarita, has
been providing water to the City since 1944 and Whale Rock Reservoir, located one -half mile
east of the town of Cayucos, has been a water source since 1961. Both water supplies are
considered to be of high quality.
Existing Surface Water Treatment Facility
The existing water treatment plant is located on Stenner Creek Road, northwest of the Cal Poly
campus. The facility was constructed in 1964 to provide treatment of surface water from Salinas
and Whale Rock Reservoirs. ' The plant was originally designed to treat up to eight million
gallons per day (mgd). In 1977, the plant was upgraded to provide 11.5 mgd of treatment
capacity but has actually treated up to 12 mgd for limited periods during peak water demands.
The water treatment plant is a conventional plant that includes coagulation, flocculation,
sedimentation, filtration, and disinfection. Currently, the plant uses chlorine as the primary
City of San Luis Obispo 45
Urban Water Management _ It
disinfectant. The plant has operated successfully for nearly 30 years with only minor
modifications.
Surface Water Treatment Regulation
Since the existing water treatment plant was built, the Safe Drinking Water Act was adopted and
was significantly amended. The 1986 amendments are extremely broad in scope and require
implementation of new regulations by the U.S. Environmental Protection Agency. The Safe
Drinking Water Act also required the Environmental Protection Agency to specify criteria under
which filtration is required as a treatment technique for surface supplies. On June 29, 1989,
the Environmental Protection Agency issued the Surface Water Treatment Rule which defines
the standards for surface water treatment and has specific compliance deadlines.
The purpose of the regulation is to protect the public, as much as possible, from waterborne
diseases. Waterborne diseases, most notably Giardia lamblia, Cryptosporidium, and Legionella,
are most commonly transmitted by surface water contamination. For the City of San Luis
Obispo, the most significant issue is the regulation aimed at reducing the formation of
disinfection by products, specifically trihalomethanes ( "THM's "), which are a group of
compounds formed during disinfection by the reaction of chlorine with naturally occurring
organics. While the City has consistently met the current 100 micrograms - per -liter limit, there.
have been occasional instances in which the standard has been exceeded due to the high organic
content of Salinas Reservoir water during certain times of the year. The new regulations require
increased chlorine contact times which will cause the THM levels to exceed the regulations. It
is anticipated that the new regulations will reduce the allowable level for THM's in the future.
Ozone Water Treatment Facility
To comply with the current standards for THM's, meet anticipated future water quality
standards, and increase water treatment operational efficiency, the City is upgrading the water
treatment facility to use ozone as the primary disinfectant instead of chlorine. The use of ozone
provides enhanced disinfection capability to meet federal and state requirements but will not
form chlorinated by- products such as trihalomethanes. When completed (projected -July 1994,)
the plant also will produce water free of objectionable taste and odor associated with algae
blooms at Salinas Reservoir and meet all current as well as anticipated regulations. Appendix
III lists the water quality standards specified in the Safe Drinking Water Act.
4.1.2 GROUNDWATER
Background
Prior to 1986, most groundwater in the San Luis Obispo area was used by agriculture with very
little used for domestic consumption. With the onset of the drought in 1986, resulting in
decreasing surface water supplies, the City activated groundwater wells in 1989 to meet the
City's water demand.
City of San Luis Obispo 46
/ -6S
Urban Water Management Pia.,
Groundwater Ouality and Treatment Regulations
Groundwater quality requirements, as with surface water, are governed by the SDWA. Like
surface water, groundwater must meet the same standards set in the Safe Drinking Water Act.
Water quality analysis in 1989 indicated that advanced treatment was needed on the now
decommissioned Dalidio and Auto Park Way wells due to unacceptable levels of
Tetrachloroethylene (PCE). Carbon absorption units were placed on each well to provide
necessary treatment, and were granted approval for domestic consumption by the State of
California, Department of Health Services.
In November 1992, nitrate levels in the Auto Park Way well exceeded State standards, so the
well was taken out of service. The well located near Denny's Restaurant adjacent to Los Osos
Valley Road (referred to as the " Denny's well ") experienced a similar increase in nitrate levels
and was taken off -line in June 1993. Treatment alternatives for nitrate removal will be
recommended to Council during 1994. The Auto Park Way well will be the focus for potential
treatment and reactivation because of its record of providing a reliable yield of water over an
extended time period (even during the recent drought).
4.1.3 POSSIBLE FUTURE REGULATORY CHANGES
As analytical techniques allow for lower levels of regulated water contaminants to be detected
and new contaminants are added to the regulatory list issued by the U.S. Environmental
Protection Agency and state regulatory agencies, there may be impacts on the City's water
treatment operations. While the Stenner Canyon Water Treatment Plant upgrade was designed
to meet current and anticipated water treatment standards, future regulations may require
additional modifications, depending on the action levels adopted by the federal and state
regulatory agencies. The following are possible regulatory changes which may influence water
treatment plant operations:
■ ,Regulation of total organic carbon. Could require optimizing coagulation, which would
add an acid -feed system to the treatment process.
■ Resulation of THM sub - species. Chlorinated bromides would most likely be targeted,
which would not necessarily be a problem unless the action level is extremely low.
■ Regulation of hypochlorites. Chlorates caused by the decomposition of hypochlorites
solution may require coolers to be installed on holding tanks to stabilize temperature inside
the tanks. This is a requirement now being considered by the State.
■ Lowering of the THM allowable levels. Could require changing from hypochlorite to
chloramines for final disinfection.
The effect of any of the potential regulations on the City's treatment operations is dependent on
the action level adopted. More technical and complicated processes may require training or
hiring of personnel skilled in the maintenance of sophisticated electronic equipment and
City of San Luis Obispo 47
/ -66
Urban Water Management in
knowledgeable in telemetry and computer programming. This will be addressed in the future,
if necessary.
4.1.4 STAFFING EVALUATION
California law requires certification of all water treatment plant operators. There are five
certification levels with Grade V being the highest. Because of the size or output capabilities
of the City's water treatment facility, the plant supervisor must be a Grade V.
The following is a list of the current water treatment staff by level of certification:
Grade V - 1 (Water Treatment Plant Supervisor)
Grade IV - 2
Grade III - 3
Grade II - 1
Lab Tech - 1 (Grade IV certification but not an operator)
TOTAL 8
This level and qualification of staffing meets both the legal standards mandated by the State and
the operational requirements of the water treatment facility. As the operation and monitoring
requirements become more sophisticated, a review of the staffing needs may be required.
City of San Luis Obispo 48
I —(e7
Urban Water Management Pia.,.
4.2 WATER DISTRIBUTION
Introduction
The water distribution system delivers potable water to approximately 12,500 metered
customers. The goals of the program are to provide uninterrupted water flow at adequate
pressures, to meet all fire and domestic flow requirements, and to minimize system water loss
due to leakage. In order to accomplish these goals, the water distribution program has seven
major work objectives. They are as follows:
• Pump station and tank maintenance
■ -- Water main maintenance and repair
• Water service installation and service renewal
• Fire hydrant installation
• Fire hydrant maintenance
• Cross connection control
• Underground Service Alert (USA) markouts
Because of the geographic setting of San Luis Obispo, the water distribution system is a very
complex structure of pipes, pumps, storag
4.2.1 SYSTEM DESCRIPTION
The water distribution program delivers
potable water from the water treatment
plant and wells to customers and fire
hydrants via three storage reservoirs, six
pump stations, eight water tanks, and
approximately 300 miles of water mains.
It is unlikely this basic distribution
pattern will change, since the water
treatment plant will continue to be the
principal source of treated water for the
City.
Pressure Zones
Figure 4 illustrates the distribution
system's pressure zones. The .water
delivered from the treatment plant is
split into two main distribution
e tanks, and pressure reducing valves.
Figure 4 PRESSURE ZONES
networks. About J1.70 flows mto the
City by gravity and the other 48% is
pumped to a storage reservoir at a higher elevation and then flows into the various service areas
by gravity and through pressure reducing valves (PRV's). The most apparent strain is in the
pumped delivery system. This will be discussed in more detail in the system evaluation section.
City of San Luis Obispo 49
M."
1
_,_._._ S. __
I
I
�
1
.\
1
`♦
;' \
-
GRAVITY PUMPED i
\♦ /' \\
DELIVERY DELIVERY \
\
i
Figure 4 PRESSURE ZONES
networks. About J1.70 flows mto the
City by gravity and the other 48% is
pumped to a storage reservoir at a higher elevation and then flows into the various service areas
by gravity and through pressure reducing valves (PRV's). The most apparent strain is in the
pumped delivery system. This will be discussed in more detail in the system evaluation section.
City of San Luis Obispo 49
M."
Urban Water Management -a
Since electrical power for pumping water is a major expense, a goal is to develop a system
which minimizes pumping.
The goal of the water supply system is to deliver water at pressures between 40 pounds per
square inch and 80 pounds per square inch at the customer's meter without using a pressure
reducing valve on the pipe connecting the water main to the meter. This pressure range will
meet the needs of most irrigation .sprinklers and other uses, and provide adequate pressure for
fire sprinkler systems. Pressure zones are established in the distribution system to maintain
these pressure ranges. The City currently has 15 pressure zones divided between the gravity and
pumped delivery systems.
Water Storage Facilities
Water storage facilities are
necessary to provide water during
peak demand periods and
emergency situations such as fires.
The City has ten water storage
facilities, six of which are steel
storage tanks ranging in size from
.07 to 4 million gallons, three
concrete facilities with a capacity
of .03 to 7.5 million gallons, and
one hydropneumatic station. The
combined storage capacity is
24.21 million gallons. The
holding capacity of the various
facilities and tank locations
throughout the City are shown in
Figure 5.
Water Transmission System
Parts of the City's water
transmission system are over 100
years old. Most of the pipes are
made of cast iron. Other pipes
are made of asbestos cement
(located primarily in the Laguna
Lake area), or, since the mid -
1970's, PVC. Water pipes serve
two basic functions. The larger
pipes or transmission mains move
Foure 5 STORAGE FACIUTIES
large volumes of water from one -
portion of the City to another.
They range in size from 12 inches to 30 inches. The smaller pipes or distribution mains are to
City of San Luis Obispo
50
1 -6
Treatment Plant—*
•— Stanner
Canyon
Ferr ini�
1
Highland
:1`�
.,iii
♦Reservoir No. I
i
I
Slack St.
Serra —♦
1'
Bishop
i
I
Terrace Hill
Edna
\
Saddle
rT
Capacity
Elevation
Location
in fna.1
Base
Surface
Treatment Plant Wet Well 4.00
406
431.5
Stenner Canyon Res. 2
7.50
538
557.0
Reservoir 1
7.50
422
433.0
Slack Street Tank
0.07
535
555.0
Highland Tank
0.03
547
544.0
Semano Tank
0.10
542
564.5
Bishop Tank
0.10
533
556.0
Terrace Hill Tank
0.75
386
415.0
Edna Saddle Tank
4.00
320
345.0
Ferrini Tank
0.16
569
584.0
TOTAL
24.21
Foure 5 STORAGE FACIUTIES
large volumes of water from one -
portion of the City to another.
They range in size from 12 inches to 30 inches. The smaller pipes or distribution mains are to
City of San Luis Obispo
50
1 -6
Urban Water Management Piaji
distribute water within a local area and deliver it to each property in the City. They range in
size from 2 inches (in the older portions of the City) to 12 inches. The current minimum
standard is 8 inches for distribution mains.
Water from the water treatment plant in Stenner Canyon is transported through a 30 inch
transmission line 3,500 feet to the transfer pumps (located on Stenner Canyon Road). The
transfer pumps take approximately 48% of the water, increase the pressure, and then provide
water to Stenner Canyon Reservoir, Cal Poly, and other portions of the City, generally north
and east of the Southern Pacific Railroad tracks. From the transfer pumps, there are two 24
inch transmission lines that move water about one mile to the city limits. One pipe is the high
pressure line from the transfer pumps and the other pipe has lower pressure supplied directly
from the water treatment plant's clear well. Figure 6 shows a simplified schematic of the water
transmission system.
Fire Protection System
Fire protection is one of the most important services the City provides to its residents. The fire
protection system is a network of 1,661 public hydrants and 160 private hydrants.
The Las Pilitas fire in 1985 nearly exceeded the City's capability to supply sufficient water for
fire suppression. The Johnson Avenue and Orcutt Road area are the weakest areas for
emergency water supply, because less than 3.5% of the total storage is in this area and our
delivery from the distribution system is limited to about 2,000 gallons a minute. The
alternatives for improving this situation are to increase the water storage capacity in that area
or increase the capacity of the transmission delivery system. Another area of concern is in the
Slack Street and San Luis Drive neighborhoods. Due to existing water main easements and
location of these mains in relationship to fire hydrants, fire protection capabilities are not
adequate. An alternative is to relocate the water mains in City right -of -ways and re -connect
customer service.lines to the new mains.
City of San Luis Obispo 51
1-70
Urban Water Management, A
Fire flows can now be met in all of the other gravity zones. There are local distribution
problems within all zones that will be remedied by removal of deteriorated and undersized pipes
as part of the ongoing capital replacement program.
4.2.2 OPERATION AND MAINTENANCE STAFFING EVALUATION
In order to retain a reliable water distribution system, a routine maintenance program is
essential. The following section discusses the components of a preventative maintenance
program necessary to minimize water service disruption and prolong system service life.
Preventative Maintenance Components
■ Systemwide Mainline Valve Exercise Maintenance
A comprehensive mainline valve exercise program is essential as it ensures proper operation of
valves and minimal disruption to water customers during an emergency shutdown. This program
also identifies problem areas such as broken valves, broken operating nuts, buried gatewells, and
misaligned access sleeves. Identified problem areas can then be scheduled for repair or
replacement which will minimize future distribution problems. In addition, a valve exercise
program assures that fire hydrants can be isolated for maintenance and repair.
■ Pump Station Maintenance
Since electrical and mechanical pumping equipment consists of many moving parts that are
subject to wear, they require a comprehensive preventative maintenance program to prolong their
useful life and avoid costly breakdowns. Currently, staff performs weekly inspections of the five
pumping facilities. Corrective maintenance is performed as needed.
■ Water Storage Tank Inspection and Maintenance
The water storage tanks are a very important component of the water distribution system. As
a result of the storage facilities, the system's flow and pressures are improved and stabilized to
better serve the customers within a storage facility's zone. Additionally, these supplies serve
as a reserve for emergencies such as fire suppression and power outages. Regular inspections
and preventative maintenance are necessary to protect the City's investment in these facilities.
This includes regularly- scheduled inspections and cleaning of probes and relays, paint and
protective coatings, facility security systems, and maintenance of access roads and sites.
■ Service Line Change -Out Program
The service line (from the water main to the customer water meter) change -out program is
currently a reactive program due to the high rate of service line failures. The City's service
lines consist of one of five types of materials: copper, polyethylene, polybutalene, lead, and
galvanized pipe. Three of the materials, polybutalene, galvanized iron and lead, have been
determined to be inferior due to their high failure rate and potential health risk. These types of
City of San Luis Obispo 52
1-071
Urban Water Management F,,...
lines are replaced upon their discovery or failure and account for 45 % of the workload of the
water distribution staff. A capital replacement program which would replace large numbers of
services may be necessary in the future if the failure rate increases significantly.
■ Pressure Reducing Valve Maintenance Program
Pressure reducing valves (PRV's) are necessary to maintain acceptable pressure levels in both
low lying and higher elevation areas of the City. Pressure reducing valves reduce plumbing
failures and system leakage in areas that would otherwise experience high pressure. There are
14 PRV's in the City which should be inspected and tested annually, and rebuilt periodically as
part of a PRV maintenance program. Only corrective maintenance is currently performed.
■ Fire Hydrants
To ensure that fire hydrants operate correctly when needed, annual testing, maintenance, and
repair should be performed. It is the responsibility of the water distribution staff to perform all
maintenance, repairs, and hydrant replacement as needed. Preventative maintenance is on a
limited basis. Periodic flow testing is performed by the Fire Department.
Operation and Maintenance Summary
The preventative maintenance program goals are only being partially accomplished at this time
due to the lack of available staff time to perform the various program components. This is a
result of an aging distribution system which requires a significant amount of emergency repair
coupled with an increase in system size (additional miles of pipeline). The workload analysis
presented in Appendix IV indicates that 60% of the staff s time is spent responding to system
failures in either service or main lines.
4.2.3- WATER DISTRIBUTION INFRASTRUCTURE EVALUATION
In 1992, the City obtained a water system computer modeling program entitled Cybernet.
Cybemet is a graphic modeling program capable of simulating the City's entire water
distribution system. As staff enters water system data, a model of the entire system is being
constructed to analyze necessary system improvements. Until that process is completed, staff
is relying on experience, records, and water distribution crew knowledge to evaluate the system.
Priority Areas
This section identifies specific existing deficiencies in the water distribution system. These
deficiencies are considered high priorities and could require funding beyond the recommended
capital improvement project program expenditures.
The following is a description of the identified problem areas and the recommended solution:
City of San Luis Obispo 53
7A
Urban Water Management ..-d
■ Alrita Pump Station
Problem - The current system consists of a hydro - pneumatic pump that serves 11 customers.
Other customers, immediately outside of the Ahita Zone, have inadequate water pressure.
Solution - Enlarge and raise in elevation the Bishop tank to serve a larger pressure zone. The
Bishop zone is currently too large for the size of the existing storage facility. The existing
80,000 gallon tank should be replaced with a 250,000 gallon tank. This would allow the City
to eliminate the inefficient, uneconomical Alrita hydro - pneumatic pumping station. This would
also increase the fire protection capability of the Bishop tank pressure zone.
■ Highland Zone
Problem - The Highland Tank is undersized for the area it serves. The tank is also too low,
resulting in inadequate pressure for some residences.
Solution - The ideal solution would involve the construction of a new water tank at an elevation
adequate to eliminate the private booster pumps necessary for some customers. The construction
of a new water tank would be costly. Another alternative would involve the construction of a
water line from the Ferrini Tank to the end of Oakridge Drive. This would eliminate the
Highland Tank and the Highland Zone. The area served by the Highland Tank would become
part of the Ferrini zone. About 20 feet of additional head would be experienced in the Highland
Zone. Some private boosters would still be necessary, but the higher head would result in
decreased pumping costs for the residences requiring boosters. The City would save
maintenance cost by eliminating the Fel -mar Pumping Station, which serves the Highland Tank.
■ Laguna Lake Area (west of Los Osos Valley Road)
Problem - The area has inadequate water pressure resulting from the distance to the Edna Saddle
Tank and the size of the Edna Zone.
Solution - A new transmission main may, be necessary to increase water availability in the
Laguna Lake area. A main could extend from the 20 -inch line in the intersection of South
Higuera and Prado Road or could extend down Foothill Boulevard to Los Osos Valley Road.
Another alternative would involve the construction of a new water storage tank in the Laguna
Lake area.
■ Slack Street/San Luis Drive Areas
Problem - Water mains were originally constructed in easements through the back yards of the
properties in the area. Fire hydrant density is inadequate, reading water meters is difficult, and
maintenance on the facilities is nearly impossible.
Solution - The water lines should be relocated to the public streets in front of the residences.
The services should also be changed over to the front of each house.
City of San Luis Obispo 54
1-73
Urban Water Management Pion
4.2.4 FUTURE DEVELOPMENT AREAS
It is estimated that the water distribution system size will increase by approximately 15% or
about 45 miles under the adopted General Plan, which is currently being updated. It is
important to note this does not include annexation of the Airport area. In addition, the proposed
reclaimed water distribution system, to be maintained by the water distribution staff, will add
roughly 11 miles of water line depending on the area served by reclaimed water. Also,
additional pumping stations, water storage, and other distribution facilities may be required.
4.2.5 STAFFING EVALUATION
A comprehensive workload analysis has been performed on the water distribution and customer
service sections using work logs recorded during the past three years. The analysis includes
both sections because of the overlap in duties and job assistance. There are five water
distribution maintenance workers, three customer service representatives, and one supervisor.
The results of the workload analysis are presented in Appendix IV.
As indicated, the current water distribution staff workload is limited to primarily corrective
maintenance because of the increases in the distribution system's size and age. A preventative
maintenance program will add to the reliability of the water system and potentially extend the
service life of the infrastructure, thus reducing future costs. To establish a viable preventative
maintenance program, an evaluation has been prepared which addresses each component of the
program and estimates the time required to perform the various tasks. The evaluation indicates
that a minimum of two additional staff will be required to implement a cost effective
preventative maintenance program. The recommended increase in staffing will be presented to
Council as part of the 1995 -97 Financial Plan.
The workload analysis does not take into account future growth in the water delivery system or
the maintenance of the proposed water reclamation system. Those additional staffing
requirements will be analyzed when more complete water system information is available.
City of San Luis Obispo 55
l-7�
Urban Water Management
4.3 WATER CUSTOMER SERVICE
Introduction
The water customer service program is responsible for accurately measuring water delivered
through the distribution system to the City's 12,500 customers. The following are the major
goals for this section: 1) to accurately measure the amount of water which passes through the
customer water meters, and 2) to schedule and perform meter reads which will generate timely
and regular water billings. To accomplish these goals, the program has three major objectives.
They are as follows:
■ Water Meter Reading. Read approximately 6,250 water meters each month, investigate
abnormal readings (high and low), start and stop water service, and maintain access to water
meters.
■ Meter replacement and maintenance. Replace all obsolete meters over a seven year period
to conserve water and accurately measure water use for billing purposes; replace meters on a
20 year replacement schedule to ensure proper operation, and repair meter leaks as necessary.
■ Compound meter testing and repair. Maintain large commercial meters and contract
services for the testing and repair on a four -year schedule.
4.3.1 PROGRAM DESCRIPTION AND EVALUATION
The Water customer service program is responsible for the following:
• Read approximately 6,250 water meters monthly as part of the City's bimonthly billing
process
• Repair water meter leaks
• Replace obsolete, old and damaged water meters
• Test and repair of compound meters
• Starting and discontinue water service (turn-on and offs)
• Discontinue and restore service for non - payment
Appendix IV provides the actual workload indicators in these areas for the fiscal years
1991 -92 and 1992 -93.
The program is achieving the work objectives with the assistance of the water distribution
maintenance staff during peak work load periods.
4.3.2 FUTURE DEVELOPMENT AREAS
Under the adopted General Plan, it is estimated there will be an increase of approximately 23 %
in the number of water meters. It is important to note that the current General Plan does not
include the airport area. Depending on the annexation size and adopted development plan for
that area, an additional increase of 2% to 5% could be anticipated. Given this assumption in
City of San Luis Obispo 56
/ -7S
Urban Water Management Pig,,
system growth, it can be projected that the number of water meters in the City will increase by
approximately 2,875 to 3,500 when General Plan build -out is achieved.
4.3.3 STAFFING EVALUATION
Water customer service is staffed by three full -time employees. Assistance on an "as needed"
basis is provided by the water distribution maintenance crew. In addition, customer service
personnel are required to perform standby duties on a rotating basis and respond to any water
emergency occurring during off duty hours. This means customer service personnel must be
fully trained and qualified to perform the same job functions as the water distribution
=- maintenance staff. A combined workload analysis is presented in Appendix IV.
As indicated, a large percentage of time is spent on scheduled meter reads (25 %), but most of
their time is spent in other areas, such as establishing or disconnecting water service and
corrective maintenance. The overlap and assistance provided by the water distribution
maintenance crew is also identified in the analysis. Again, this figure is derived from a three
year average. Assistance is needed mostly during peak periods of start or stop service requests
(coinciding with the beginning and end of Cal Poly's quarters), substituting during vacations or
illness, and when reading large water meter routes.
The cross -over of staffing during peak workload periods and emergency situations is
accomplishing the Customer Service Program goals and objectives. Based on the estimated
increase in the number of water meters as the City annexes areas within the Urban reserve line,
additional staffing will be required. As areas are annexed, an analysis of the staffing impacts
will be performed and a recommendation presented to Council.
City of San Luis Obispo 57
/-76
Urban Water Management . .n
4.4 TELEMETRY
Introduction
Telemetry literally means "measuring at a distance ". Telemetry equipment includes the complete
measuring, transmitting, receiving, and recording data from an outlying location. The use of
a telemetry system will provide operational personnel with a mechanism to monitor and control
the entire water system from a central location and to obtain information at a moment's notice.
The information can either be sent by telephone lines or via radio signals. Through telemetry,
Water Division personnel can by command or by programming of the computer system,
automatically turn pumps on or off, change reservoir elevations, respond to abnormal or
emergency operations more expediently, and optimize pumping efficiency from a central
location. The result is a reduction in staff hours spent accomplishing all these tasks and the
reduction of vehicle trips to these outlying sites. In addition, State and Federal regulatory
standards require alarm procedures to detect process failures. The telemetry system monitors
the required processes, achieving compliance with the various regulations and ensuring reliability
of the water system.
4.4.1 SYSTEM DESCRIPTION
The Water Division telemetry system is a network of interconnected distributed process
controllers (DPC's) and personal computers. DPCs are similar to personal computers, but are
specifically designed to interconnect to sensing and control devices, and run programs written
in a distinctive computer language. Electronic sensing or measuring devices at a remote site
transmit data such as the level of water in a tank via radio signals to another site, such as a
pump station. At the pump station, a DPC uses the tank level data to decide when and which
pumps to operate. DPC's are capable of operating all types of industrial equipment from the
simple pump example to complex water and wastewater treatment processes, and are more
reliable and flexible than the old electromechanical or pneumatic control systems previously
utilized.
The Water Division telemetry system currently consists of twelve DCP's located at pump
stations, water storage tanks, water treatment plant, and various offices. These stations are
linked by a single network through two radio repeaters located at Tassajera Peak and seven radio
transceivers and eight radio links. Figure 6 identifies the current and proposed locations of the
telemetry system. During the 1993 -95 Financial Plan period, the telemetry program will
complete phase 2 of the Utilities Telemetry project implementation at a cost of $30,000 in 1993-
94 and $20,000 in 1994 -95. Planned projects will include upgrading obsolete and outdated
equipment and bringing the remaining water system components on line. When completed, the
water treatment plant, pump stations, water storage facilities and groundwater wells will be able
to coordinate operations, which will optimize the efficiency of the entire system. The system
would be invaluable during a major catastrophic emergencies such as an earthquake or major fire
such as Las Pilitas.
City of San Luis Obispo 58
1-77
Urban Water Management i _r,
LEGEND: italics denote locations to be added to telemetry system during 1993.95.
WRCK
Whale Rock
WTDC
WTP Data Controller
HLNT
Highland Tank
MDNV
Madonna PRV
APMP
A Pump Station
CHEM
Chemical Feed Room
HLNP
Highland Pump
MTPW
M4ehell Park Well
BPMP
B Pump Station
TRNP
Transfer Pump House
MCLP
McCollum Pump
FS4W
Fire Station 4 Well
REST
Reservoir 1
WDIS
• Water Distribution
SLKT
Slack Tank
PBSW
Pac Beach Wells
RES2
Reservoir 2
FRNT
Ferrini Tank
BSPT
Bishop Tank
APWW
Autopark Way Well
EDST
Edna Saddle Tank
FRNP
Ferrini Pump
BSPP
Bishop Pump
DENW
Denny *% Well
TRHT
Transfer Pump
BRSP
Bressi Pump
ALRP
Attila Pump
4.4.2 SYSTEINI OPERATION AND MAINTENANCE EVALUATION
The Water Division telemetry system program was implemented in 1989, initially serving Whale
Rock Reservoir and the water treatment plant. All design, installation, and programming is done
by the City's Telemetry and Instrumentation Technician with assistance provided by Water
Division field crews, with the exception of the new equipment being installed as part of the
water treatment plant upgrade project. The advantages of City personnel performing these duties
are the "hands on" experience gained by the field crews in actual operation of the system, more
immediate response to desired changes in the system function or programming, and the cost
savings versus using an outside consultant.
The system has been very reliable. Necessary repairs and adjustment performed at the existing
telemetry .sites are executed by the telemetry technician. It is Utilities Department policy to
maintain a reserve supply of components. This enables the technician to immediately replace
disabled modules. Any defective equipment removed from the field that is not easily repaired
in the telemetry equipment repair facility is returned to the appropriate manufacturer for repair.
Every site is inspected at least twice annually and given a visual and functional examination.
This especially applies to the radio transmitters, to ensure that FCC licensing standards are
maintained. In addition, every DPC and operator interface computer has a set of program files
which are updated regularly.
City of San Luis Obispo 59
/ -78
Urban Water Management . -a
4.4.3 STAFFING EVALUATION
The entire Utilities Department, Water and Wastewater, telemetry system is currently designed,
installed, programmed, and maintained by one Telemetry and Instrumentation Technician. Based
on an evaluation of the current structure and planned expansion of the telemetry system, this
level of staffing has been determined to be adequate for the needs of the current and completed
system. Some cross- training of existing staff in all utilities sections will ensure adequate staffing
in the future.
City of San Luis Obispo 60
� -79
Urban Water Management Pi.,
4.5 WATER CONSERVATION
Introduction
In June 1985, the City Council adopted the Annual Water Operational Policy which established
a procedure to monitor the City's water supply situation. An integral component of the policy
was the establishment of a water demand management or conservation program aimed at
instituting corrective measures ahead of any projected water supply deficit to maintain a
dependable supply during critically dry periods. Water demand management has played an ever
increasing role in the overall water supply development and management strategies since 1985.
In 1990, the City adopted a multi- source water plan in an attempt to solve both short term water
shortages and establish a long term solution to the City's water needs. The importance of the
implemented water efficiency programs has become even more apparent as some of these
planned water supply projects have either been rejected because of high cost or environmental
impacts which could not be mitigated. Because of the difficulty in developing new water supply
projects, water conservation is being viewed more as a water supply alternative.
The primary goal of the water conservation program is to eliminate water waste by using water
more efficiently, which will postpone the need for additional supplies and reduce the amount of
water needed in the future. The specific objectives to achieve the goals of the water
conservation program are to:
• Educate and inform water customers on short-term and long -term water supply conditions
and the importance of efficient water use;
• Replace old plumbing hardware with water efficient plumbing hardware;
• Evaluate water customer's indoor and outdoor water usage and provide specific
recommendations for improved efficiency;
• Analyze water efficiency programs for cost effectiveness;
• Develop new water efficiency programs;
• Monitor and enforce water conservation municipal codes.
4.5.1 PROGRAM DESCRIPTION
Water conservation has two primary components, short -term and long -term water demand
management. Short-term activities address immediate water shortage situations caused by
prolonged below normal rainfall or disruption in water service due to a natural disaster such as
an earthquake. Long -term programs make permanent, long -term reductions in water demand
while minimally impacting customers' lifestyles.
Short Term Water Efficiency Program
Due to the drought and subsequent water shortage the City experienced from 1989 to 1992, the
short-term measures developed during that period (formalized in the City's Water Shortage
Contingency Plan) will be a model for any future water emergencies the City might face. The
Water Shortage Contingency Plan was submitted to the State Department of Water Resources
in 1992.
City of San Luis Obispo 61
l 40
Urban Water Managemen,
.1
State law (AB 11) mandates that every water purveyor in California develop a water shortage
contingency plan. It is a compilation of all the monitoring systems the City has in place to
evaluate its water supply and any corrective actions necessary based on the water supply outlook.
As the City becomes more water efficient, it will become more difficult to achieve substantial
temporary reductions (mandatory conservation levels). Adjustments will have to be made in the
water shortage contingency plan to account for this increased water efficiency and to maintain
equity in the program administration.
Long Term Water Efficiency Program
Many of the public assistance programs implemented during mandatory rationing have proven
to be sound long -range water management practices. In September 1991, the City Council
approved and authorized the Mayor to sign the "Memorandum of Understanding" (MOU)
regarding urban water conservation and the implementation of the "Best Management Practices"
("BMP's "). The BMP's are comprised of sixteen water conservation measures. The BMP's and
the implementation progress are listed in Appendix II. Most of the measures were implemented
during the water rationing period between 1989 and 1992. Appendix V lists the current
programs and services offered by the Water Conservation Office. The programs listed satisfy
the MOU and fulfill the annual reporting requirements outlined in the BMP's.
4.5.3 PROGRAM EVALUATION
The influence of the water rationing program and higher water rates make it difficult to identify
water savings from a specific program or service. As a signatory agency to the MOU, the city
is a member of the California Urban Water Conservation Council ( CUWCC). CUWCC is
currently working on several studies that will assist the member agencies in evaluating water
efficiency programs for water savings potential and cost effectiveness. The consensus is that the
current BMP's will yield reliable water savings, but it has been recognized that more in -depth
evaluation is needed to quantify the expected water savings of the various efficiency measures.
The City has three major components in its water efficiency strategies. Within these three
components are the programs previously identified. The components are: 1) water hardware
retrofitting; 2) water auditing; and 3) public information and education.
■ Water Hardware Retrofitting. Studies to determine water savings from residential and
commercial toilet retrofitting are being performed by member agencies to the CUWCC.
Preliminary results from the retrofit evaluations have substantiated that the assumptions
used to calculate potential water savings in the residential sector are solid. Commercial
retrofitting data is not yet available. Table 4.5.3 summarizes the progress of toilet
retrofitting in the City through the Retrofit Rebate Program and the Water Offset
Program and examines the estimated water savings based on the preliminary data from
the Retrofit Rebate Program, specifically toilet retrofitting, and calculates a cost per acre
foot based on the cost to the City versus the water saved. As indicated, the cost per acre
foot, as compared to other supply sources, is cost effective and are one time
expenditures.
City of San Luis Obispo
62
/ -8/
Urban Water Management .
CITY OF SAN LUIS OBISPO
TOILET RETROFIT PROGRESS
1993
Toilet Retrofit (Offset) Program
Retrofit Rebate Program
TOTAL
Estimated number of toilets in the City
Percent of City retrofitted
4,500 (estimated)
3,761 (actual)
8.261
32,000
26%
TOILET REBATE PROGRAM
ESTIMATED WATER SAVINGS AND
ESTIMATED COST PER ACRE -FOOT
Number of Toilets Retrofitted
Estimated Water Savings (range)
Total Program Cost (through 1993)
One Time Cost Per Acre -Foot
Amortized cost Per Acre -Foot (20 years)
• No ongoing operation or maintenance costs
Estimated Water Savings @ 100% Retrofit
Table 4.5.3 Water Savings through Hardware Retrofit
3,761
115 to 145 acre -feet per year
$324,390.00
$2,240 to $2,820"
$224 to $282"
900 to 950 Acre -Feet per Year
■ Water Auditing. Water auditing services, both indoor and irrigati on, are a major
element to the water efficiency programs listed. In particular, irrigation auditing offers
a significant opportunity for water savings. Though current available data is not
conclusive, preliminary data estimates a 30% savings potential through proper scheduling
and irrigation practices. To date, approximately 500 water audits have been conducted.
■ Public Information and Education. Public information and education have historically
been the foundation of all the City's water efficiency programs. Though it is impossible
to determine precise water savings from this type of program, it is recognized in the
water profession that information and education are a key to a utility's effectiveness to
serve its customers. The water conservation office offers free information on a variety
of conservation topics including leak detection, irrigation scheduling, landscaping, and
City of San Luis Obispo 63
��0
Urban Water Management I
water hardware retrofitting. In addition, informational workshops and awareness
programs are promoted.
4.5.4 STAFFING EVALUATION
The initial water conservation program was staffed with seasonal temporary and contract
employees. In August 1988, it was recognized that the coordinator position should be made a
regular position to maintain continuity in the development and implementation of short-term and
long -term water efficiency programs. Staffing levels beyond the coordinator position have
continued to be filled by contract staff on an as- needed basis, and the level of staffing evaluated
annually. This staffing policy has given the City the flexibility to meet the short term
requirements and changing needs of the water conservation program. In the 1993 -95 Financial
Plan, the approved level of staffing is for one regular position, one full-time contract person and
one full-time seasonal (May through September) employee.
To maintain an effective program and to meet the City's commitment to long -term water
efficiency and the BMP's, a change in staffing policy may be required. Also, if the City follows
the recommendations made in the Hughes -Heiss reorganization study, Council may want to
consider an alternative staffing policy to support a resource management approach to achieve its
water conservation and solid waste management goals. These options will be evaluated and
presented to Council in the spring of 1994.
City of San Luis Obispo 64
1 g3
CHAPTER 5
FINANCIAL PLAN
5.1 _ WATER FUND
Policy
The City's policy is to fully recover all water costs through water revenues. Resolution No.
6447 states the primary goals of the City's water utility are to provide quality water service to
its citizens and to function as a self - sufficient enterprise. Under this policy, all water revenues
are used only for water purses. The water fund will reimburse the general fund for all
indirect costs pursuant to the approved cost allocation plan.
Background
The City's Financial Plan policies require the annual review of the Water Fund financial needs.
Fees and rate structure must be evaluated to ensure that they are appropriate and equitable. Fees
and rates must be set at levels which fully cover the total cost of providing water services,
including operations, capital outlay and debt service. Annual review assures rate increases, if
required, can be kept to modest levels.
City-policy requires that the Water Fund, as all other enterprise funds and the General Fund,
maintain a fund balance of at least 20% of operating expenditures. This is considered the
minimum level necessary to maintain the City's credit worthiness and to adequately provide for
economic uncertainties, local disasters, and other financial hardships or downturns in the local
or national economy; contingencies for unforeseen operating or capital needs; cash flow
requirements.
In addition, fund balance levels must be sufficient to meet funding requirements for projects
approved in prior years which are carried forward into the new year; debt service reserve
requirements; reserves for encumbrances; and other reserves or designations required by
contractual obligations, state law, or generally accepted accounting principles.
City of San Luis Obispo 65
Urban Water Managemen, n
5.2 ANNUAL WATER FUND REVIEW
In addition to stating that the primary goals of the water utility are to provide quality water
service and to function as a self - sufficient enterprise, Resolution No. 6447 states that city water
should meet all health standards, be free of bad taste and odors, provide adequate fire protection,
and assure reliability and continuity of service to users.
The annual review of the Water Fund is conducted with the above goals and philosophy in mind.
Appendix VI is a summary projection of revenues, expenditures and changes in financial position
for the Water Fund through fiscal year 1996 -97. This projection, revised annually, outlines the
operations and capital improvement budget for the Water Fund as presented in the approved
1993 -95 Financial Plan. These projections include funding for the expansion of the Salinas
Reservoir and for the completion of the upgrade to the Water Treatment Plant. They do not
include funding for participation in the Nacimiento Project or Water Reuse.
Key Variables
The following is a summary of the key variables in forecasting. water fund revenue and expenses:
• Short term and permanent level of water conservation
• Base operating costs plus inflation
• Debt service requirements
• Water customer base growth rate (based on General Plan, not to exceed 1 % per year)
• Capital improvement charges ( "impact fees" paid by new development)
• Connection and meter charges
• Service start-up fees
• Major capital projects
The most recent water fund analysis, Appendix VI, provided a listing of these variables and what
was specifically assumed in the analysis.
City - operated Utility Rate Structure Objectives
Although both revenue requirements and rate structure are considered in the annual review of
the Water Fund, the revenue required to operate the water facilities and the rate structure by
which the revenue is generated are two separate issues. Revenue requirements tell how much
revenue is needed to fully recover the total cost of providing water services, including
operations, capital outlay and debt service. Rate structure describes how these costs will be
distributed among different types of customers. It is important to recognize that any rate
structure can be designed to ensure revenue adequacy.
The Council adopted the following rate review objectives in May, 1988:
• Comply with legal requirements
• Ensure revenue adequacy to fully meet system operating and capital needs
• Encourage conservation
City of San Luis Obispo 66
� - SS
Urban Water Management .
• Provide equity and fairness between classes of customers
• Be easy to understand by our customers and easy to administer
• Provide for ongoing review in order to facilitate rate stability
In January 1993, Council requested a review of the existing rate structure. Upon close
examination, it was felt that some of these goals were potentially in conflict. For example, a
rate structure that provided rate stability would probably not encourage conservation efforts.
A rate structure that was easy to understand by customers would not necessarily be equitable
between classes of customers.
With that in mind, potential rate structures were analyzed based on the primary "goal" that was
intended, viewing the goals as a continuum ranging from a strong bias towards rate stability to
a strong bias towards water conservation. At the end of the continuum emphasizing
conservation, rates would be composed entirely of commodity charges, with no flat rate charges.
At the opposite end of the continuum that emphasizes rate stability, the rates would be composed
entirely of flat rate charges with no commodity charges. The rate system based entirely on
commodity charges would produce revenue based entirely on consumption which would vary
from month to month. The rate system based on commodity charges would not relate to
consumption at all, and would be the same every month.
Prior to March 1993, the City's water rate structure was a combination of a base charge related
to meter size and a two -tiered commodity charge based on an increasing block rate. After
March 1993, the city's rate structure was modified to be entirely commodity driven. It is now
a two-tiered increasing block rate with no base charge. Although rates changed by customer
type, it was a revenue neutral rate structure change. This type of rate structure encourages
conservation, recognizes that the marginal cost of adding new water resources is high, and is
easier for customers to understand. It is equitable among classes of customers, as no one group
is required to carry a disproportionate share of system costs. The primary disadvantage is that
the revenues may be very unstable if the customers have inconsistent consumption patterns.
Concerns about the predictability of consumption patterns due to conservation levels and rates
based wholly on commodity use (and the impact this could potentially have on revenues) could
be addressed through the adoption of a higher fund balance requirement. Also, the current 20%
fund balance requirement is applied only to operating expenditures. This may need to include
debt service as well.
Rate Setting Methodology
In determining water rate revenue requirements and setting recommended rates, the following
general methodology is used:
Step 1: Determine Water Fund revenue requirements for:
• Operations and maintenance
• Capital improvements and replacements
• Debt service obligations (existing and projected)
Revenue requirements are generally projected for four years into the future.
City of San Luis Obispo 67
/ ,?4,,
Urban Water Management
Step 2: Subtract from this amount "non -rate revenues" such as:
■ Interest earnings
■ Connection fees and meter sales
■ Sale of electricity from hydroplant operations
■ Other service charges
Step 3: Identify water rate revenue requirements
Revenue to be generated from water rates is the difference between water revenue
requirements (Step 1) and "non -rate" revenues (Step 2).
Step 4: . Determine new rates.
Model the rate base (consumption and customer account assumptions ) against the
existing rate structure and rate requirements identified in Step 3.
City of San Luis Obispo 68
APPENDIX I
WATER POLICY SUMMARY
Note: * Denotes a new or significantly modified existing policy.
2.1 SAFE ANNUAL YIELD DETERMINATION
2.1.1 Safe annual yield will be based on coordinated operation of all water supply
sources.
2.1.2 The current safe annual yield is 7,735 acre -feet per year
2.1.3 The current safe annual yield of groundwater is 500 acre -feet per year and is
included as part of identified safe annual yield in Section 2.1.2.
2.2 WATER CONSERVATION POLICY
2.2.1* Long -term water efficiency measures will maintain at least a 10% reduction in water
use levels recorded during 1986/87.
2.2.2 Short-term mandatory measures will be implemented when the City's water
supplies are projected to last three years.
2.3 WATER DEMAND PROJECTIONS
2.3.1* Separate projections of potable and nonpotable water requirements will be made.
2.3.2* The City shall use 165 gallons per person per day (0.185 acre -feet per person per
day) to plan for future water supplies.
2.3.3* Projected water demand at General Plan buildout is about 10,350 acre-feet.
2.4 RELIABILITY RESERVE
The City will strive for a reliability reserve of 2,000 acre -feet.
City of San Luis Obispo I -1
APPENDIX I
2.5* SILTATION AT SALINAS & WHALE ROCK RESERVOIRS
The City shall develop 500 acre feet of safe annual yield to account for the loss of
water storage due to siltation at Salinas and Whale Rock reservoirs to the year 2025.
2.6* SUPPLEMENTAL WATER REQUIREMENTS
The City shall develop additional water supplies to meet projected demand at
buildout of the General Plan. The amount of water to be developed shall be based
on land use assessment and the adopted per capita water use figure in Section
2.3.2.
2.7 MULTI- SOURCE WATER SUPPLY
The City shall continue to develop and use water resource projects to maintain
multi- source water supplies to reduce reliance on any one source.
2.8* ALLOCATION OF NEW WATER SUPPLIES
2.8.1* When new water sources are obtained, the additional yield shall be allocated first to
eliminate any projected deficit at the time the new source is obtained.
2.8.2* Any additional safe yield beyond the deficit elimination will be allocated one -half to
new development and one -half to the reliability reserve (Section 2.4) and to
compensate for siltation (Section 2.5).
2.8.3* Reclaimed water shall be accounted for as a nonpotable supply and shall not be
considered as a component of City's potable water safe annual yield.
2.8.4* When developments are supplied by private groundwater wells, the yield of
those wells will not be counted toward the City's safe yield.
2.9 WATER ALLOCATION AND OFFSETS
2.9.1* The City will make available to new development only that amount of safe yield
which exceeds projected water use (as stated in Section 2.3), the amount to
compensate for siltation (Section 2.5) and to provide a reliability reserve (Section
2.5).
City of San Luis Obispo I -2
APPENDIX I
2.9.2* When there is no safe annual yield to allocate to new projects, a project may be built
if a. developer retrofits existing facilities which will reduce long -term water usage
equal to the allocation required for the project.
Exemptions to needing a water allocations or an offset, or reducing the amount of the
required allocation or offset for a project will be granted to the extent that a project
is supplied by a suitable private well.
2.9.3 Required allocations and offsets will be based on long -term usage for each type
of development.
=2.10* RECLAIMED WATER
2.10.1* The City shall produce high quality reclaimed water, suitable for a wide range of
nonpotable uses.
.2.10.2* The City will dedicate one cubic foot per second to San Luis Obispo Creek and make
available reclaimed water for existing and new nonpotable uses.
2.10.3* As reclaimed water supplies new or existing development, the reliable yield of
nonpotable water will increase. The increase in reliable nonpotable yield will only
be credited only when it is available to a user.
2.10.4* When the City provides distribution facilities for reclaimed water, the resulting
reduction in potable demand will be given offset credit for government projects.
2.10.5* When a private project provides the distribution facilities that allow for the use of
reclaimed water in existing development, the resulting reduction in potable water
demand will be credited on a one- to-one basis.
When a private project provides distribution facilities to that project, any required
potable water allocation shall be reduced by a corresponding amount.
2.10.6* When a component of the reclaimed water distribution system is funded by both the
City and a private developer, the credit for reduction in potable water usage resulting
from that component shall be divided according to the proportionate share based on
the contribution. to the component.
2.11* CAPITAL UYIPROVEMENT PLAN- Water Distribution
The City shall replace aging waterlines • at the yearly rate of 2% of the value of the
Distribution system.
City of San Luis Obispo I -3
/-90
APPENDIX I
OTHER URBAN WATER MANAGEMENT PLAN POLICIES
Chapter 3* Supplemental Water Supply Projects
The City shall pursue the expansion of Salinas reservoir, the Nacimiento Reservoir
Project, water reuse, and water demand management activities as supplemental water
supply sources.
Chapter 4* Water Operational Programs
The City shall provide an adequate supply of high quality water which meets all
government. standards, at sufficient pressures, provide for fire protection, and sustain
water efficiency programs. The City shall allocate funding to meet those goals and
objectives.
Chapter 5, Financial Plan
The City's policy is to fully recover all water costs through water revenues. All
water revenues are used only for water purposes. The water fund will reimburse the
general fund-for all indirect costs pursuant to the approved cost allocation plan.
City of San Luis Obispo I-4
/• 91
APPENDIX II
BEST MANAGEMENT PRACTICES - Implementation Update
The sixteen elements of the Best Management Practices are to be implemented over a three year period and completed by the tenth
year. Because of the water crisis the City faced between 1989 to 1992, most of the sixteen measures have already been established.
BMPs (BY NUMBER) SCHEDULED FOR YEAR ONE IMPLEMENTATION
BMP No. 2. Enforcement of water conserving plumbing fixture standards in all new construction
Plumbing, New beginning January 1, 1992. All pipeline projects required to utilized water conserving plumbing
and Retrofit futures as of January 1, 1989. All other building projects subject to State standards as of January
1, 1992.
Support State and Federal legislation prohibiting the sale of toilets using more than 1.6
gallons per flush. Legislation passed by the State in November 1992 prohibiting the sale of
toilets using more than 1.6 gallons per flush as of January 1, 1994.
BMP No. 3. In 1988, a water distribution evaluation and leak detection program was developed. This
System Water evaluation identified potential problem areas in the system and made recommendations for water
Audit Year 1. line replacement projects.
BMP No. 7. The City supports an ongoing public information program, including:
Public • Speakers to community groups and media
Information. ■ Paid and public service advertising
• Bill inserts
• Billing information comparisons
• Water Conservation handouts
• Water Conservation workshops and fairs
BMP No. 8.
School The Water Conservation office offers a Resource Education Guide to provide teachers with
Education information on available resource education materials and instructional assistance.
BMP No. 13. The water waste codes currently prohibit
Water Waste • Use of substandard water fixtures;
Prohibition ■ Water run-off from property;
• Use of water from fire hydrants except for fire fighting;
• Serving of water in restaurants unless requested;
• Use of potable water to wash sidewalks, driveways, etc.;
• Use of potable water for construction.
Accurate records on water waste contacts and violations have been maintained since July 1990.
As of January 1993, the records indicate the following:
■ 500 contacts for water run -off violations with a friendly warning;
■ 110 water waste consultations without a warning;
■ 180 warning notices;
■ 27 Notices to Correct;
■ 2 letters from the City Attorney's office;
■ 445 requests from citizens to investigate water waste.
City of San Luis Obispo II -1
/ -9Pz
APPENDIX II
BMP No. 14. A regular position was approved in August 1988.
Water
Conservation
Coordinator
BMPs SCHEDULED FOR YEAR TWO IMPLEMENTATION
BMP No. 2. Plumbing Retrofit - Delivery of low flow showerheads and toilet displacement devices
Plumbing, New In 1987, retrofit kits including low -flow showerheads and toilet dams were delivered to 5,800
and Retrofit households in the City through the CARE program. The City continues to offer free low -flow
showerheads upon request.
BMP No. 3. Water system failure shifted the focus from leak detection to repair and replacement in 1989.
Distribution
System Audits
BMP No. 4. All water services within the City are metered.
Metering with
Commodity
Rates for all
new /existing
connections
BMP No 6. New and Existing Commercial, Industrial, Institutional, Governmental and Multi- Family
Landscape In March 1992, Council adopted Ordinance No. 1209 which established water efficient landscape
Water standards for all new development. This ordinance was submitted to the State and accepted,
Conservation bringing the City into compliance with AB 325, the Water Conservation in Landscaping Act.
Requirements
BMP No. 11. Effective March 1, 1993, a revised two-tiered rate structure encouraging conservation and
Conservation establishing a lifeline usage figure was adopted. It also eliminated the readiness to serve charge.
Pricing
BMP No. 12. ■ In March 1992, Council adopted Ordinance No. 1209, establishing water efficient landscape
Landscape standards for all new development.
Water ■ Each spring and fall, water conservation office sponsors a water efficent plant tagging program
Conservation for in conjunction with local nurseries to encourage installation of water efficient planting.
New and ■ During February 1992, the City's first water conserving demonstration garden was installed as
Existing SFR a joint project between the City, local landscape professionals and Cal Poly. Water consumption
at the site is down 75 % from previous average water use (was a large turf area).
■ Free information and consultations upon request.
BMP No. 16. The City has three programs addressing toilet replacement:
Ultra Low Flush ■ Retrofit Rebate Program - to date approximately 3,000 toilets have been replaced.
Toilet ■ Water Offset Program - to date approximately 3,500 toilets have been replaced by developers
Replacement applying for building permits.
■ Retrofit Upon Sale Ordinance - Since January, approximately 300 toilets have been replaced.
City of San Luis Obispo II -2
/ 43
APPENDIX II
BMPs SCHEDULED FOR YEAR THREE IMPLEMENTATION
BMP No. I. Incentive Programs for Single Family, Multi- Family Residential and Governmental/
Interior and Institutional Customers
Exterior Water ■ Water Conservation staff performed 400 residential /commercial water audits during 1992.
Audits. Results are being monitored with an evaluation set for the end of 1993.
Incentive ■ After evaluating the top 20% water users, it was determined that multi - family complexes should
Programs for be a primary target of informational materials on the Retrofit Rebate Program and free water
SF, MY auditing services.
Residential and
Governmental/
Institutional
Customers
BMP No. 5. ■ Water conservation and Parks Division staff have systematically performed irrigation audits on
Large City parks. Eleven such audits have been performed. Results were mixed. Several parks are
Landscape being retrofitted to improve water distribution efficiency.
Audits ■ Water conservation staff is in the process of auditing the larger greenbelt areas in the newer
developments in the Tank Farm area.
■ Water conservation staff has been working closely with landscape maintenance professionals in
evaluating irrigation system efficiency in several condominium and apartment complexes.
BMP No. 9. The 1993/95 water conservation plan focuses on the commercial /industrial customer sector.
Commercial and
Industrial Water
Use Review
BMP No. 10. Currently, new construction water allocations and required water offsets are based on the amount
New of water the development will use on an annual basis. This means that developers are using the
Commercial and most water efficient technology available to lower the water demand of their project. The lower
Industrial Water the demand, the lower the required retrofitting that must take place prior to approval to build.
Use Review
BMP No, 15. In addition to'the rebates for water hardware retrofitting, other incentive programs are being
Financial researched and analyzed for cost effectiveness.
Incentives
City of San Luis Obispo II -3
l'9f
APPENDIX III
WATER QUALITY STANDARDS
Annual Water Quality Report - 1992
City of San Luis Obispo III -1
/. 9S
Water Distribution / Customer Service
Workload Analysis
Current Workload Customer Service Section:
Current Staffing: 3 Full -Time Personnel
APPENDIX IV
* 0.4 FI'E is currently covered by personnel from Distribution Section
** The above analysis is a reflection of the ratio of time spent on programs and services, not an exact
accounting of weekly workloads.
City of San Luis Obispo IV -1
1.94
Task Description
Staff Hours /Week
1.
Compound Meter Test and Calibration
5.9
(4%)
2.
Turn Ons /Offs
24.2
(18 %)
3.
Re -reads / High Bills
14.8
(11%)
4.
Meter Leak Repairs
20.5
(15%)
5.
Meter Maintenance
2.4
(2%)
6.
Meter Retrofit
12.0
(9%)
7.
Meter Sets/Resets
3.9
(3%)
8.
Miscellaneous Investigations
6.0
(6 %)
9.
Scheduled Meter Reads
39.5
(29%)
10.
Service Discontinuance
6.2
(5%)
TOTAL HOURS /WEEK
136.4
FTE'S
3.4
APPENDIX IV
* 0.4 FI'E is currently covered by personnel from Distribution Section
** The above analysis is a reflection of the ratio of time spent on programs and services, not an exact
accounting of weekly workloads.
City of San Luis Obispo IV -1
1.94
APPENDIX IV
Current Workload Water Distribution Section
Current Staffing: 5 Full -time Personnel
TOTAL HOURS /WEEK 183.7
FTE'S ' 4.6
* Current workload analysis is based on past three years of actual work order records. Analysis
does not include supervisors time and assistance provided by supervisor in the field.
City of San Luis Obispo IV -2
-97
Task Description
Staff Hours /Week
1.
Pump Station & Tank Maintenance
18.4
(10 %)
2.
PRV /PSV Maintenance
9.2
(5%)
3.
Water Main Failures /Repairs
36.7
(20 %)
4.
Service Line Failures/Repairs
73.4
(40 %)
5.
Hydrant Repair /Installation
14.7
(8%)
6.
Miscellaneous Repairs/Upgrades
18.4
(10 %)
7.
Large Meter Change -Outs
3.7
(2%)
8.
USA Markouts
9.2
(5%)
TOTAL HOURS /WEEK 183.7
FTE'S ' 4.6
* Current workload analysis is based on past three years of actual work order records. Analysis
does not include supervisors time and assistance provided by supervisor in the field.
City of San Luis Obispo IV -2
-97
APPENDIX IV
Preventative Maintenance Program:
Task Description Staff Hours /Week
1. Pumps, Motors, Controls and Facility Maintenance 15 (17 %)
2. Storage Facilities
a. Steel Storage Tanks 5 (6 %)
b. Hydro-pneumatic Facility 5 (6 %)
3. PRV /PSV Preventative Maintenance 15 (17 %)
4. Valve Maintenance Program 30 (32%)
5. Valve Replacement/Repair Program 10 (11 %)
6. Equipment and Tool Maintenance 10 (11 %)
TOTAL ESTIMATED HOURS /WEEK 90
ESTIMATED FTE'S 2.25
City of San Luis Obispo IV -3
. _ -98
APPENDIX V
WATER CONSERVATION OFFICE
PROGRAMS AND SERVICES
Using the BMPs as a guide, the water conservation office has developed programs and
procedures to reach the City's goal of long term water efficiency through out the community.
The following section will briefly explain the programs and services.
Programs and Services
1. Retrofit Rebate Program.
Customers are offered up to $100 per bathroom to replace toilets, showerheads, and
faucet aerators with water efficient hardware.
2. Retrofit Upon Sale Ordinance
Effective October 15, 1992, any property sold or transferred must be retrofitted prior to
the close of escrow with water conserving plumbing hardware.
3. Indoor Water Use Evaluations
Water efficiency specialists evaluate all indoor water use and recommend water efficiency
measures to residential and commercial customers.
4. Irrigation Evaluation and Audit
The water conservation office offers free irrigation systems evaluation and will perform
distribution and uniformity audits to determine irrigation scheduling and make
recommendations to improve water efficiency.
5. Water Efficient Plant Material Consultations.
Printed information and suggestions are offered to customers interested in retrofitting
existing landscapes with water conserving plant materials.
6. School Education Program
The water conservation office offers programs and materials for grades 1 through 12.
7. Public Information and Education Program
Ongoing informational and promotional advertising both paid and public service
announcements. Variety of printed informational brochures and pamphlets available free
of charge. Educational workshops on water efficiency topics offered to the public.
8. Water Waste Code Enforcement
Mostly an educational, water efficiency specialist contact customers experiencing water
run -off problems and offer suggestions on how to solve these problems.
City of San Luis Obispo V -1
APPENDIX V
9. Low Income Assistance Water Audit Program
People applying for low income assistance on their water /wastewater bill are required to
have a home water audit performed before being granted a utility bill reduction.
10. Residential Resource Conservation Services Program
A joint program which incorporates recycling and water conservation into one effort.
Specific neighborhoods are targeted and residents are encouraged to participate in the
water audit and recycling programs.
11. Multi - family Resource Conservation Services Program
A program developed specifically for multi- family complexes to assist in establishing
successful recycling programs and achieving water efficiency.
City of San Luis Obispo V -2
APPENDIX VI
WATER FUND RATE REVIEW
September 7, 1993
City of San Luis Obispo VI -1
/-/0/
unoa►�1IIIIIIIII�� ►�I city of San tins OBISp0
Mmis COUNCIL AGENDA REPORT
FROM: William C. Statler, Director of Finance W 6o—z
Prepared by: Linda Asprion, Revenue Manager ; 4, 7v
SUBJECT: WATER FUND RATE REVIEW
CAO RECOMMENDATION
METING DATE:
ITEM NUMBER:
Adopt a resolution increasing water rates by eight and one -half percent (8.5 %) effective
October 1, 1993 and six and one -half percent (6.5 %) effective July 1, 1994.
DISCUSSION
Overview
On June 1, 1993, Council examined the Water Fund rate review recommending a six percent
(6 %) rate increase and determined that additional time and analysis was required to ensure
appropriate groundwater claim costs and capital expenditures were properly assessed. This
report analyzes the revenue requirements of the Water Fund based on the predicted 1992 -93
revenues and expenditures, approved 1993 -95 Financial Plan, and the potential groundwater
claim costs.
An additional factor included in this analysis is the timing of the proposed rate increase.
With the proposed rate increase not being in effect from July through September, when the
City experiences 30% of the total annual water sales, the Water Fund loses 30% of the
revenue generated from the increase. Based upon these factors an eight and one -half
percent (8.5 %) rate increase is recommended effective October 1, 1993. It should be noted
that this proposed rate increase will not retain the Water Fund at the required 20%
unreserved fund balance status by year -end 1493 -94, although this level will be achieved by
the end of the 1993 -95 Financial Plan period.
It should be noted that rates were last adjusted for revenue purposes in June of 1990; if
adopted, the proposed rate increase will reflect a modest adjustment in rates after almost
three and one -half years since their last increase.
Water Rate Review Objectives
As adopted by the Council in May of 1988, the City's rate review should accomplish the
following objectives:
■ Comply with legal requirements
■ Ensure revenue adequacy to fully meet system operating and capital needs
■ Encourage conservation
■ Provide equity and fairness between classes of customers
■ Be easy to understand by our customers and easy to administer
■ Provide for ongoing review in order to facilitate rate stability
,::! i !jj�jl►a►��i� MY O� Sal dS 0131SPO
COUNCIL AGENDA REPORT
This review of the Water Fund has been performed with these goals and philosophy in
mind. Provided in Exhibit 1 is a summary projection of revenues, expenditures and changes
in financial position for the Water Fund through fiscal year 1996 -97, with the assumptions
used in this financial position projection detailed in Exhibit 2. The additional anticipated
costs of the groundwater claim have been shown with the approved 1993 -95 capital
improvement plan for the Water Fund in Exhibit 3. Support for the water service revenue
projections is presented in Exhibit 4, detailing the projected consumption at the various
conservation levels and the projected revenue.
Based upon this analysis, an eight and one -half percent (8.5 %) rate increase for revenue
purposes is proposed effective October 1, 1993. This proposed increase is higher than the
six percent (6 %) rate increase originally proposed in June of 1993 because of two factors:
■ Groundwater claim costs have added an additional $800,000 in expenditures.
■ Deferring implementation of a water rate increase from July to October reduced the
originally proposed rate increase revenue by 30% or approximately $107,000. This
reduction is based on analysis indicating that between July and September the City
uses 30% of its annual water consumption.
It should be noted that this Water Fund projection indicates that during fiscal year 1993 -94,
unreserved fund balance will be expended in order to complete capital projects and that at
year -end the unreserved fund balance is projected to fall below the 20% requirement.
However, this Water Fund projection, which includes a six and one -half percent (6.5 %) rate
increase in 1994 -95, indicates that at fiscal year -end 1994 -95 the unreserved fund balance
will meet the 20% requirement.
Rate Setting Methodology
In determining water . rate revenue requirements and setting recommended rates, the
following general methodology is used:
Step 1: Determine Water Fund revenue requirements for:
■ Operations and maintenance
■ Capital improvements and replacements
11 Debt service obligations (existing and projected)
Step 2: Subtract from this amount "non -rate revenues" such as:
■ Interest earnings
■ Connection fees and meter sales
E. Sale of electricity from hydroplant operations
■ Revenues from other agencies (Cuesta /Cal Poly)
■ Other service charges (service start-up fees, late charges, returned
check charges)
/ - /o3
,11111IUI city of san L.,Is OBispo
NOW-; COUNCIL AGENDA REPORT
Step 3: Identify water rate requirements.
Revenue to be generated from water rates is the difference between water
revenue requirements (Step 1) and "non -rate" revenues (Step 2).
Step 4: Determine new rates.
Model the rate base (consumption and customer account assumptions) against
the existing rate structure and rate requirements identified in Step 3.
Because we perform this analysis over a multi -year period, other factors are considered such
as fund balances available to support capital projects, debt service coverage requirements,
and minimum fund balance policy.
Summary of Key Assumptions
Based upon the assumptions in Exhibit 2 and the three factors discussed above, the financial
position projections indicate that water rates require an increase of 8.5% in 1993 -94 and
6.5% in 1994 -95. The following is a summary of key assumptions for expenditures and
revenues:
■ Annual decrease in water conservation from 1987 levels over the next three years
ranging from 30% in 1993 -94 to 20% in 1995 -96, with 1996 -97 remaining at a 20%
conservation level.
■ Operations and maintenance as approved in the 1993 -95 Financial Plan with an
inflation rate of 4% thereafter.
■ Debt service for the water treatment plant is based upon the 1993 Water Revenue
Bond payment schedule.
■ Rate increases for other agencies who receive their water from the City. The City
has signed agreements with both Cal Poly and Cuesta.
■ Water customer growth rate at less than 1010 until 1996 -97. This projection
corresponds with the assumptions used in the March 13, 1993 Budget Workshop.
■ Capital improvement charges are estimated as a percentage of the "base projection"
of $688,400 which is the estimated amount of fees that would be collected at a 1%
growth rate. These revenues are then discounted by 87% due to the retrofit credit
currently in place, which is projected to be discontinued with the construction of the
Salinas Reservoir expansion.
■ Connection and meter charges are projected at the inflation rate.
■ Service start-up fees in the amount of $25 to be effective October 1, 1993. The
revenue from this fee has been prorated for 1993 -94 to reflect the lost revenue from
July through September. Future years anticipate revenues of $75,000 annually.
/ -/a41
,11,1►01III1 ►'M City of San JIS OBISPO
Waiiis COUNCIL AGENDA REPORT
■ Expansion of Salinas Reservoir is estimated to cost $1,300,000 for study and design
during the 1993 -95 Financial Plan period. Construction is projected for 1995 -96 with
an annual debt service of $700,000 under existing market conditions for the $8
million construction project.
■ The water reclamation program has not been included in these projections as there
is insufficient information on cost versus revenues to include in this analysis.
■ The cost of receiving water from Nacimiento is not included in these projections as
preliminary cost estimates are unavailable.
As reflected above, these assumptions do not include two anticipated projects - water
reclamation and Nacimiento. It should be noted that the cost of these projects would not
affect water rates for 1993 -94, although they could impact future water rate increases as
necessary to cover additional debt service or operating requirements. As plans and
specification for these projects are prepared, any required modifications to existing
projections for future rate increases will be reviewed and presented.
FISCAL IMPACT
The proposed 8.5% and 6.5010 rate increases will (rounded to the nearest five cents) affect
the monthly water rates as follows:
Current
Proposed Rates
Proposed Rates
Rates
October 1. 1993
July 1. 1994
1 to 5 ccf $2.25 per ccf
$2.45 per ccf
$2.60 per ccf
over 5 ccf $2.80 per ccf
$3.05 per ccf
$3.25 per ccf
ccf = one hundred cubic feet .
Based upon the consumption of the average residential customer at 30% conservation from
1987 consumption (which is the conservation rate used in the Water Fund analysis for 1993-
94), the proposed rate increase effective October 1, 1993 will increase the monthly water
bill as follows:
Current Proposed
Water Bill Water Bill Difference
9 ccf $22.45 $24.45 $2.00
� -�aS
Exhibit A
RATES FOR WATER SERVICE
Monthly water service charges per hundred cubic feet of water (ccf) used per dwelling unit
for accounts classified as residential by the director of finance and per account for all other
users, are as follows:
Commodity Charges Per CCF
Effective October 1, 1993 Inside City Outside City
Construction Site Meters
0 to 1 ccf
In excess of 1 ccf thereafter
All Others
$ 2.45. $ 4.90
$160.00 $325.00
1 to 5 ccf $ 2.45 $ 4.90
More than 5 ccf $ 3.05 $ 6.10
Commodity Charges Per CCF
Effective July 1, 1994 Inside City Outside City
Construction Site Meters Only
0 to 1 ccf $ 2.60 $ 5.20
In excess of 1 ccf thereafter $170.00 $345.00
All Others
1 to 5 ccf
$
2.60
$
5.20
More than 5 ccf
$
3.25
$
6.50
I
m
U.
W
W
U4
�i
m
M
LL
Z
LU
0
U
Ex lblLa L
OHO O
�
8 - N8 8 88 88 88
? 0 0 0
N
9
Q
pO �cO�•pp1�'ct G
O V M� h n n N
vat�
ON N h
N N
�. �r
N N O
n�
cn
[�
eay n in er
O4 .-+
i N o
nn N n [v-,
�
�c a
v yop
Oi �
00
pp
o
n
O�
OHO O
y� BE�p
CCCQ
Q
pO �cO�•pp1�'ct G
O V M� h n n N
vat�
ON N h
N N
�. �r
N N O
n�
cn
[�
eay n in er
O4 .-+
�c a
in
*0
8aSJs 8g8�g
w-r Or, n N N �� V'f N Vl N N .r-. 00
N O C4 b V'; 'cf < Q v v 'r y�
n•--i •-•
CD S S OO S
Q
O OI
S
pl
O O O
n
O n n N n N
��pp ��ppIS
ppS
h
v°y
cn O� ^
cn N C'1
^
v
M
00
N
vim..
et re
^
Ig g Flo FE� 815=2 g 81 �
rLn N h O —
h cam" i bI
N N `ct N-i � T1
g h B �SN S a�T o uv cyl� S_ °Ce�^ g � 18o 6 en
co�� 06 g °
Iq M N N
C\
N N T
Bass
O OI O S C
�7 O[�
m wl -11 NO O Vn ^ O v h V
in V en v N
NO C
N
V
A
r�
U c
to
to v 9 '�•� y
qq
� 1.. p
C i • c� C O V
U
Cq y
0
U .. C m v� U y
n ea rCi
cl
e `0
C `_ y O 0. 20 O C o a bi
cn C y 2 `
ft B .__ -5-911 A cj
O C es c c U� O
�3y'agc T�sE' ��E" v� �p25F �� Z Z
v —° �i 3 t`� C3 cn 0 c�a O t3 A e`i O er� a e°� e°, W 0
= >K
� u� o ctira o � x /07
en
Z
O
U
3
a
Z
LL
LLJ
2
Q
0
Z
O
CL
Q
ExhibitcZ
C
O
O
N
T'
N
N
m
rl
4A
O
LO A
VJ
O
O
♦�
Pi
u
N
T
o
O
T
CA
m
VJ A
o
T
O
R
m
O)
cm
O
N
N
co
E63
O
L
41A
\
N
^
\o
On
C
v
�
Q
CV
o
O
0
CA
T
N LO
O
a
Q
N
�
�o
4A
C
W
��.A
4A
0°
�
N
per°
In
N
C'�'
O
O
rn
EH
fV
N
o
tfJ
v
OOi
0)
T
N
a
4%
O
a
Q
Cl
N
n
V7
4A
O
Q
EA
4A
o4
O)
T
0
(9
N
CO)
O
a7
m
/fl
-OP
O
T
N
Cd
C
C
C
R
cn
m
a
U
0
0
m C
0
�a
.0
•Z
c
'70
•U
a L
m
T
C ;
CD
m
C
X O
E
(a
O
co
CD
�'
W
EC
0
w
C
CL
E
y
0
^
co
>
d
a) >
J
C
V1
U
L
R
m
a 2
0
to
p
R
C
y
C
0
a
o
��
0
C
O]
C
N
A
w
I
U
m
N
m
0
C
R
a
mrn
m
~
i
R
3
1
U
m
U)
m
0
O
m
Gyi
Q
m
c
O cc
O
C
y
C
7[
w
I
U
m
U)
m
0
R
O
.m.
R
¢
C
Q
t
0
CC
L
3
�
m
O
U
R
3
N
m
of
R
L
ii
m
E
>
a
c
0
m
aC
R
.9
O
N
4f
0
d
m
C
R
m
a
7
LL
C
o
a
Q
O
Ln
r
m
Ey ai
=
Q
m
m
Im
m
O
7
m
m
R
d
O
m
U
(n
ExhibitcZ
C
O
Z
C
R
m
X
a)
.Q
ymy
m
tt
C
C
C
R
cn
m
a
0
0
0
m C
0
�a
.0
c
'70
•U
a L
m
T
C ;
CD
C
X O
E
(a
O
co
CD
�'
7
L
U
m A
to
U
CO
C a
R
8
d
E
m>
7
L
C
m U
O
O
—
O
O
U
;
C
O
y
a
C
v
CD
E
R
C16 d
z
=
CD
`
3
v
_ O
O C
m.
`
N
t/1
i
C
y
m
d
U
E
N d
a
a
a
o°
a
m
m
v
o
>°
c Z
ty
0
C
L
N
RRy y
m
U
to
O
a>
`-
y
7
m
N
01 m
C
=
7
U
L
o
C.
m
a
t
N>
o 0
m
L
m in
C_
C
y
O
>.
d
7
m
;
> C
R
a
mi
a L
E
°'
E
m
(i
o
o
orn
N
a
d
2
C
d
p
d`
L
O
C
L
V Ql
m
m
C
m
7
m
y O
CL
=
aa)
o
e`a
L
?iyy
>
U
m is
>`
C
a�
Q-
0)
'D
C
@
E
I
d
> m
y
7.
O
i0 y
7
>
o
m
Z
U
R
U
o
.`
d
0
E
cli
�
-io8
0
V P
N O
OQ
O O
i O
IL r
T
N W
Z y1
O ,C,
LL a
rr
W
I—
o a
CL
�
W A
F—
rr
Qrn
LL 2
a�
Z Q T
CL
Z
W
5
W
MO o
1..1.. H
0- a
C Q
U
W
J °
F—
Q
U
000000000
00000Loo L
f07 n fA N N M N
aj fA Vi EA H! Ni C N3
N3 fig
O
O
O
O
O
O
O
O
O
O
O
O
O
(5
O
O
O
m
OOC)
c
�
4H -
T
I
$
N
fA?
M
°O °O °O °O °O °O °O °O
0 0 U') C.) Lf) . rn l°n 0
f9 TfA NfA fR ff3 ff? f!'3 �
T
fH
0
0
O
T
N
T
69
O
O
O
O
O
O
O
O
U;
rl
0
O
O
m
Y
C
O
O
O
O
O
O
O
O
0
0
o
O
O
m
O
c
c
0
c
Ld
$
N
M
N
O
�
�
�
cm
°O °O °O °O °O °O °O °O
0 0 U') C.) Lf) . rn l°n 0
f9 TfA NfA fR ff3 ff? f!'3 �
T
fH
0
0
O
T
N
T
69
O
O
O
O
O
O
O
O
U;
rl
0
O
O
m
Y
C
O
O
0
0
0
0
0
0
O
IT
a7
O
N
N
N
ll�
M
N
O
°O °O °O °O °O °O °O °O
0 0 U') C.) Lf) . rn l°n 0
f9 TfA NfA fR ff3 ff? f!'3 �
T
fH
0
0
O
T
N
T
69
O
O
O
O
O
O
O
O
U;
rl
0
O
O
m
Exhibit 3
/- /a9
Y
C
O
O
O
0
IT
a7
O
N
N
Vi
E
Exhibit 3
/- /a9
Y
C
E
O
C
0
.,
a
O
y
a
X
W
o
N
cc
y
as
. C
m
cn
Q
C
J
_`m,
a7
a;
`
�a
ci
I
C
m
y
x
a
O
>
m
°
m=
3r
"a
c
7
O
c7
C
l0
X
W
A
d
R
a
m
E
5
r-
C
E
Q
0
a�
o
>
nt
ca
P
y
c@
m
�
_
N
Rf
3
E
a)
E
CD
Q
m
x
.a
cn
m
E
> CD
O
E
E
a!
a
C
7
m
y
o
a)
E
O
�
aai
�
c
as
N
E
E
f-
Q
F-
OF
o�
U
E
�o
U
°?
t0
-p
c
O
C7
m
R
¢
v
c
LL
m
7
U
al
Q
F
A
O
as
C
Lo
M.
ci
0)
T
a)
Ua
Exhibit 3
/- /a9
r
c
U
c
c
V)
Z
0
I N
U`n =
p' L) W
� o°
O
0 aN
V
r
IL
0
W
Lo
A
Z °' y
I =
W L)
W��N``
V
Z
O
Q �
Z
O C
0 =, O
m U
^ O
I..L_ aaCO`
V
Z
0
F—
Q
J
N
O c
cm
R CC
v
o u
N
Co
r I
O c
69 69
s
I. I
N
O c
cm
R CC
N
N c
C%
Co
r I
O O
69 69
O i
I. I
N
O c
cm
R CC
N
ts cc
N
Co
r I
CO
69 69
oC,
I. I
N
O to
O lA
R CC
I
N P
M
°r.
r I
m
69 69
O
0 cm N
I N O N N O m C\i CV) 44 fR n CO
m o r`
N N 6A f s 16cp
O
O to
O lA
O
0 N
N n
M
iV Ch
r I
OCl)
69 69
t0
cO
CA
II
m
N
Nf4
IT, O
Q
44
03
N
co
0
c0
64
L)
c7
C
0
CD
O
c0 N
c0 O
M
nj pj
c0
OCl)
,fNO_
it
II
co N
N
O
IT, O
Q
6cf �
03
N
co
0
c0
64
L)
c7
C
0
N a 644l 64
CD
s
t0
w
II
O
IT, O
Q
a
cA
CV crj
(M
N
N
N
64 64
00
0)
co
CM
R
co
N
U
N
Lf)
co
0
N a 644l 64
Exhibit.
CD
N
t0
II
_
O
O)
O
a
CD
ca
C
j W
* >%
ca
d
d
R
O
N
U
0
0
_
O
O
O)
=
Lff
O
a
Lf
m
O N
:3
LQ
O
o d
E
o
II
LO U
to
=
O =
j
co
O
o
c
d
CL
E
(D 0
0)
O1
w
N
C9
o
~
N
7
m 0
F-
E
r
E E
o
0 0
00
o
r'
> >
0
a`
ci
U U
I
w
p
•
:
U
�
j
Q O
U
V U
U
U
U
E i°
U
N
U
j
cc)
U
N I
+
y
0p� I+
m
1+
0�
0 a�
0
U
0
m
Q
U
a
[C
Exhibit.
CD
N
t0
II
T R
O
O)
O
a
CD
ca
C
j W
* >%
ca
d
d
R
O
N
U
a
_
O
O
O)
=
Lff
O
a
Lf
m
O N
:3
LQ
O
o d
E
o
II
LO U
to
=
O =
j
co
O
o
c
d
CL
E
(D 0
0)
O1
w
N
o
V
m c0
7
m 0
m
m
r
E E
o
0 0
00
o
r'
> >
co
a`
ci
U U
I
w
p
•
:
Z
MEMORANDUM
January 6, 1994
TO:
VIA:
FROM:
SUBJECT:
Mhi ING AGENDA
DATE ITEM K-- / -
City Council
John Dunn, -City Administrative Off
John Moss, Utilities Director's
CHANGES TO DRAFT URBAN WATER MANAGEMENT PLAN
Attached please find revised pages to insert into your Draft. Urban Water Management Plan
distributed with the January 11 study session agenda packet. The revised pages show the
specific changes using redlining to highlight the new wording and strike out to eliminate words.
The changes are to clarify the meaning of present demand and to distinguish it from projected
demand. These changes affect Sections 2.3, 2.8 and 2.9. Since these sections are summarized
in the Executive Summary and Appendix I, replacement pages are included for those sections
as well as the main body of the document.
F. �irm .
JAN 7 1994
56A
19 CAO
�ATTORNEY CAO
CLERKIORIG
• MGMTTEAM
• JC READ FILE
FF /�[ •
DIR
DD
fIN DIR
Ef IRE CHIEF
Y DIR
POLICE CHI
EC DIR
Nr UTIL DIR
❑ PERS DIR
Urban Water Management Ply Executive Summary
are proving water conservation to be both a short term corrective measure for immediate water
supply shortages and a long term solution to water supply reliability.
2.3 WATER DEMAND PROJECTIONS
Mhla
2.3.1 Basis of Projections
The City will project water requirements, considering long -term conditions and the full range
of water uses in the City. Separate projections of potable and nonpotable requirements will be
made.
2.3.2 Water Use Rate
The City shall use 165 gallons per person per day (0.185 acre -feet per person per year) and the
number of City residents to plan total future water supplies. This quantity will be revised if
warranted by long -term water use trends, including differences in the relationship between
residential and nonresidential usage.
2.3.3 Overall Projected Water.-Demand
Applying 165 gallons per person per day to a projected City resident population of 56,000 at
General Plan build -out results in a projected water demand of 10,350 acre -feet.
3<4> "P3r "ese
E.W.WwFoiffim
Basis for Policy Summary
The City must know how much water will be needed to serve residents, businesses, and other
users which could be accommodated by the General Plan. This quantity can be projected using
different methods. All methods involve assumptions about both future usage rates and the
numbers and types of users expected in the future. The quantity expressed in the policy above
corresponds closely with both (1) total citywide usage compared with total resident population
and (2) projections of water demand based on usage by various land use categories.
2.4 RELIABILITY RESERVE
Policy
In seeldng and accounting for new water supplies, the City will strive for a "reliability reserve"
of 2,000 acre feet of safe annual yield (about 20 percent of projected water demand at full build -
out).
City of San Luis Obispo vi
I- 9
Urban Water Management Plan Accutive Summary
Basis for Policy Summary
The Council supported the reliability reserve concept in March 1993, by amending the Water
and Wastewater Management Element to include it. The reserve will help maintain adequate
water supplies during unpredictable changes, such as a new worst case drought, loss of a water
source, or contamination of a water source.
2.5 SILTATION AT SALINAS AND WHALE ROCK RESERVOIRS
Poll
The City shall develop 500 acre -feet of safe annual yield to account for the loss of water storage
due to siltation at Whale Rock and Salinas Reservoirs to the year 2025.
Basis for Policy Summary
Siltation at reservoirs is a natural occurrence which can substantially reduce the storage capacity
over long periods. The reduction of available storage will reduce the safe annual yield of the
reservoir. Siltation at reservoirs varies depending on factors such as rainfall intensity, and
watershed .management practices. There have been numerous reports addressing siltation at
Salinas Reservoir, but no studies have been done for Whale Rock Reservoir.
During the recent drought, water at Salinas Reservoir fell to a record low level. An aerial.
survey of the reservoir was prepared in order to update storage capacity information. The latest
information indicates that the siltation rate is on the order of 40 acre -feet per year.
Since no information is available to indicate what rate of siltation is occurring at the Whale Rock
reservoir, it is assumed for planning purposes that the annual average rate of siltation is similar
to Salinas Reservoir.
2.6 SUPPLEMENTAL WATER REQUIREMENTS
Policy
The City shall develop additional water supplies to meet the projected demand at build -out of
the City's General Plan. The supplemental water supply amount shall be based on land use
assessment and the adopted per capita water use figure identified for planning purposes in
Section 2.3.
Basis for Policy Summary
Based on the draft Land Use Element endorsed by the City Council in February 1992 and the
per capita use rate, the projected total amount of water for the City to serve General Plan build -
out is 12,350 acre feet. This figure includes the 2,000 acre feet reliability reserve and
accounting for siltation at the reservoirs.
City of San Luis Obispo vii
Urban Water Management Pl. Executive Summary
2.7 MULTI- SOURCE WATER SUPPLY
Poll
The City shall continue to develop and use water resources projects to maintain multi- source
water supplies, and in this manner, reduce reliance on any one source of water supply and
increase its supply options in future droughts or other water supply emergencies.
Basis for Policy Summary
Having several sources of water can avoid dependence on one source that would not be available
during a drought or other water supply reduction. The Council has supported having multiple
sources since adopting the General Plan Water Management Element in 1987 and by endorsing
the above policy statement in November 1990.
2.8 ALLOCATION OF NEW SUPPLIES
Poll
2.8.1 Balancing Safe Annual Yield and Overall Demand
When new water sources are obtained, the additional safe annual yield shall be allocated first
to eliminate the deficit between safe annual yield (Section 2.1) and present demand as defined
in Section ZM4 at the time the new source is obtained.
2.8.2 Development and the Reliability Reserve
Any additional safe annual yield beyond that needed to balance safe annual yield and pfejeeted
rset3 water demand will be allocated (A) one -half to development and (B) one -half to the
reliability reserve and compensating for reduced yields due to siltation.
2.8.3 Accounting for Reclaimed Water
Reclaimed water shall be accounted for as a "nonpotable" supply as identified under Section
2.10.3. Use of reclaimed water shall not be considered as a component of the City's safe annual
yield, but may affect demand on potable supplies as reclaimed water use increases.
2.8.4 Private Water Supplies
When developments are supplied by private groundwater wells, the yield of those wells will not
be counted toward the City's safe annual yield. Such yield, however, will result in the demand
for City water supply being lower than it otherwise would be, which may affect adjustments of
the per capita water usage figure used to estimate overall demand.
City of San Luis Obispo viii
Urban Water Management Pla, xecutive Summary
Basis for Policy Summary
The City is pursuing additional water supply projects. The City must address how the added
yield from these projects will be allocated, since the yield added at any one time may not supply
all potential uses. The City has identified the following potential uses for the new supplies:
• Eliminating the deficit between adopted planning water usage figures and safe yield;
• Compensating for reduced yields due to reservoir siltation;
• Establishing a reliability reserve;
• Providing for development of more dwellings, businesses, and public facilities.
The policies objectives are to balance the needs of all the areas identified while not compounding
the potential water shortage problems for existing Fesidents of the City.
2.9 WATER ALLOCATION AND OFFSETS
Policy
2.9.1 Supplying New Development
The City will make available to new development only that amount of safe yield which exceeds
pFejeeted pr seA water use (as stated in Section A ), less the amount to compensate for
siltation losses (as stated in Section 2.5) and to provide a reliability reserve (as stated in Section
2.4). Available allocations will be assigned to development in a way that supports balanced
growth, consistent with the General Plan.
2.9.2 Exemptions for Offsets
A. When there is no safe annual yield to allocate to a project, that project may be built if
the developer makes changes, in facilities served by the City, which will reduce long-
term water usage gqual to the allocation required for the project..
B. The City may exempt a project from needing an allocation or an offset, or it may reduce
the amount of the required allocation or offset, to the extent that the project is supplied
by a suitable, private well which will not significantly affect the yield of City wells. The
City will consider the cumulative effect of wells in the groundwater basin in making this
determination.
2.9.3 Basis for Allocations and Offsets
Required allocations and offsets will be based on long -term usage for each type of development.
(These usage and offset factors will be determined and published by the City, and may be .
revised as warranted by new information.)
City of San Luis Obispo ix
i -/z
Urban Water Management . i
2.3 WATER DEMAND PROJECTIONS
Poll
2.3.1 BASIS OF PROJECTIONS
The City will project water requirements, considering long -term conditions and the full range
of water uses in the City. Separate projections of potable and nonpotable requirements will be
made.
2.3.2 WATER USE RATE
The City shall use 165 gallons per person per day (this equates to approximately 0. 185 acre -foot
per person per year) and the number of City residents to plan total projected future water
demand. This quantity will be revised if warranted by long -term water use trends, including
differences in the relationship between residential and nonresidential usage. (This Plan uses 165
gallons per person per day in computations of future water demand.)
2.3.3 OVERALL PROJECTED DEMAND
Applying 165 gallons per person per day (0.18$ acre -foot per person per year) to a projected
City resident population of 56,000 at General Plan build -out results in a projected water demand
of an estimated 10,350 acre -feet per year.
x;3:4 >PRES: PIER DOM
Basis for PolicX
The City must know how much water will be needed to serve residents, businesses, and other
users to accommodate the General Plan. This quantity can be projected using different methods.
All methods involve assumptions about both future usage rates and the numbers and types of
users expected in the future. The quantity expressed in the policy above corresponds closely
with both (1) total citywide usage compared with total resident population and (2) projections
of water demand based on usage by various land use categories. There always will be some
uncertainty in estimating development capacity (such as the number of dwellings or residents)
as well as the usage per customer type (such as acre -feet per dwelling or per resident.) The
estimating method must use reasonable assumptions, based on experience, to assure an adequate
level of water supply while not overstating demands.
Since the early 1970's, usage estimates have ranged from 0.17 to 0.22 acre -foot per resident per
year (about 155 to about 195 gallons per person per day). The estimates have varied so widely
due to actual differences in consumption over time and to confusion about accounting for Cal
City of San Luis Obispo 16
Urban Water Management 2
Poly usage. (The City treats and delivers much of the water used by Cal Poly, even though Cal
Poly has separate entitlements.) Table 2.3.4 shows recent water usage compared with City
resident population. Table 2.3.5 compares the "per capita" and "land use" methods of
estimating water needs.
Table 2.3.4 City Water Use 1980 -1993
City of San Luis Obispo 17
/ 3�
Urban Water Management
2.8 ALLOCATION OF NEW WATER SUPPLIES
Pvk�c
2.8.1 BALANCING SAFE YIELD AND OVERALL DEMAND
When new water sources are obtained, the additional safe yield shall be allocated first to
eliminate the deficit between the adopted safe annual yield (Section 2.1) and the present demand
as defined in Section 2Y at the time the new source is obtained.
2.8.2 DEVELOPMENT AND RELIABILITY RESERVE
Any additional safe annual yield beyond that needed to balance safe annual yield and pr-ejeeted
rsirn demand will be allocated A one -half to development and one -half to the reliability
reserve and compensating for reduced yields due to siltation.
2.8.3 ACCOUNT NG FOR RECLAIMED WATER
Reclaimed water shall be accounted for as a "nonpotable" supply as identified under Section
2.10.3. Use of reclaimed water shall not be considered as a component of the City's safe annual
yield, but may affect potable water demand for potable supplies as reclaimed water use
increases.
2.8.4 PRIVATE WATER SUPPLIES
When developments are supplied by private groundwater wells, the yield of those wells will not
be counted toward the City's safe annual yield. Such yield, however, will result in the demand
for City water supplies being lower than it otherwise would be, which may necessitate
adjustments of the per capita water usage figure used to estimate overall demand.
Basis for Polia
The City has pursued numerous water supply projects over the years. These projects are
discussed in Chapter 3 of this report. This section of the document addresses allocation of these
supplies once the yields from projects are realized. The City has identified these potential uses
for new supplies:
• Eliminating the deficit between adopted planning figures and safe annual yield;
• Compensating for reduced yields due to reservoir siltation;
• Establishing a reliability reserve;
• Providing for water requirements for future development within the urban reserve area
designated in the General Plan.
Allocation of new supplies can balance the needs of all area identified while not compounding
the potential water shortage problems for existing City water customers.
City of San Luis Obispo 24
i -Or3
Urban Water Management Pid,
A major concern is the deficit between projected water usage levels and safe yield (see Section
2.1 and Section 2.3). As this deficit becomes larger, present and future water customers must
cut back more from their typical use levels during droughts or other water supply shortages.
In 1993, this deficit is about 289 acre -feet, considering a long -term usage rate of 165 gallons
per day per City resident, the 1993 City resident population, and a safe yield of 7,735 acre -feet.
Once the City's water supply deficit has been "balanced ", half of the identified safe annual yield
from new water supply projects should go toward offsetting the siltation deficit and establishment
of the "reliability reserve" and the other half should be designated for development purposes.
By following these guidelines, the certainty of water. supplies for all City water customers will
be increased while still allowing for additional development.
The reliability reserve is like an insurance policy (Section 2.4). Some added yield can be
assigned to the reserve rather than other desired uses, to help assure that the City will have
enough water despite unforeseen losses of supplies. However, there are costs of buying this
insurance, both in higher charges for water customers and in foregone uses for the added yield.
Considering these costs, it would be prudent to build the reserve in steps rather than commit a
very large part of the City's water resources at one time. Using the comparison of buying
insurance, the City will make several payments over time rather than one big payment initially,
evaluating the level of risk and the desired amount of reserve as years go by.
City of San Luis Obispo 25
/' #,/
Urban Water Management
2.9 WATER ALLOCATION AND OFFSETS
P.
2.9.1 SUPPLYING NEW DEVELOPMENT
The City will make available to new development only that amount of safe yield which exceeds
pr-ejeeted pt sett water use (Section less the amount to compensate for siltation losses
(as stated in Section 2.5) and to provide a reliability reserve (as stated in Section 2.4). Available
allocations will be assigned to development in a way that supports balanced growth, consistent
with the General Plan.
2.9.2 EXEMPTIONS FOR OFFSETS
A. When there is no safe yield to allocate to a project, that project may be built if the developer
makes changes, in facilities served by the City, which will reduce long -term water usage
equal to the allocation required for the project.
B. The City may exempt a project from needing an allocation or an offset, or it may reduce the
amount of the required allocation or offset, to the extent that the project is supplied by a
suitable, private well which will not significantly affect the yield of City wells. The City
will consider the cumulative' effect of wells in the groundwater basin in making this
determination.
2.9.3 BASIS FOR ALLOCATIONS AND OFFSETS
Required allocations and offsets will be based on long -term usage for each type of development.
(These use and offset factors will be determined and published by the City, and may be revised
as warranted by new information.)
Basis for Policy
In 1988, the City began to formally account for long -term water usage in new development.
The allocations have been based on histories of water usage for various kinds of development.
At first, the City decided to allocate some water for new land development projects even though
city-wide water usage exceeded safe yield. As the 1986 -1991 drought continued, and the
projected completion of proposed supplemental supply projects moved farther into the future,
the City decided that there should be no new development that would increase water usage. As
a result, nearly all construction since 1990 has been:
■ Replacement buildings, using the same or less water;
■ Additions or remodels which do not substantially affect water usage;
City of San Luis Obispo 26
/— 7�
Urban Water Management P,....
■ Projects which have retrofitted facilities served by the City, to save (offset) twice the amount
of water which would be allocated to the project. Installation of low -flow toilets,
showerheads, and faucets have accounted for most of the offset credit. Substantial credits
were also earned by installing water recycling equipment in businesses.
Also, a few relatively small projects were able to do little or no retrofitting because they were.
supplied with groundwater through private wells. Some projects have utilized more than one
of these strategies to proceed despite the lack of water allocations.
Until available safe annual yield exceeds long -term demand (per Section 2.3), the City will have
no water to allocate to new development. Many facilities have been retrofitted (as of 1993,
about 26% of all potential facilities). Retrofitting has helped reduce total water usage.
A two - to-one offset ratio was esta blished due to the uncertainty of savings factors initially used.
Now, a comprehensive toilet replacement study completed in June 1992 by the Metropolitan
Water District of Southern California indicates the water savings factors used by the City are
accurate. The study analyzed 23,000 dwellings and documented water savings associated with
toilet retrofitting. This study is now used state -wide as a basis for water savings associated with
toilet retrofit programs. Requiring an offset -to- allocation ratio greater than one -to -one means
that long -term water use will decline even as development occurs. Also, requiring a ratio much
greater than one -to -one makes projects less feasible and raises questions of equity.
An offset ratio of one -to -one would be consistent with the policies of this plan, because:
• The long -term usage factors used to determine the required offset amounts generally reflect
usage in projects built several years before the. 1986 -91 drought, when toilets and
landscaping were less efficient than those installed under 1993 standards;
• Retrofitting which does not receive development credit (all rebates and many additions and
remodels) will continue to produce net savings.
City of San Luis Obispo 27
Urban Water Management.
Step 2: Subtract from this amount "non -rate revenues" such as:
■ Interest earnings
■ Connection fees and meter sales
■ Sale of electricity from hydroplant operations
■ Other service charges
Step 3: Identify water rate revenue requirements
Revenue to be generated from water rates is the difference between water revenue
requirements (Step 1) and "non -rate" revenues (Step 2).
Step 4: Determine new rates.
Model the rate base (consumption and customer account assumptions ) against the
existing rate structure and rate requirements identified in Step 3.
City of San Luis Obispo 69
a 07619 JV DOW
WATER POLICY SUMMARY
Note: * Denotes a new or significantly modified existing policy.
2.1 SAFE ANNUAL YIELD DETERNIINATION
2.1.1 Safe annual yield will be based on coordinated operation of all water supply
sources.
2.1.2 The current safe annual yield is 7,735 acre -feet per year
2.1.3 The current safe annual yield of groundwater is 500 acre -feet per year and is
included as part of identified safe annual yield in Section 2.1.2.
2.2 WATER CONSERVATION POLICY
2.2.1* Long -term water efficiency measures will maintain at least a 10% reduction in water
use levels recorded during 1986/87.
2.2.2 Short-term mandatory measures will be implemented when the City's water
supplies are projected to last three years. .
2.3 WATER DEMAND PROJECTIONS
2.3.1* Separate projections of potable and nonpotable water requirements will be made.
2.3.2* The City shall use 165 gallons per person per day (0.185 acre -feet per person per
day) to plan for future water supplies.
2.3.3* Projected water demand at General Plan buildout is about 10,350 acre -feet.
2.4 RELIABILITY RESERVE
The City will strive for a reliability reserve of 2,000 acre -feet.
City of San Luis Obispo I -I
071.
APPENDIX I
2.5* SILTATION AT SALINAS & WHALE ROCK RESERVOIRS
The City shall develop 500 acre feet of safe annual yield to account for the loss of
water storage due to siltation at Salinas and Whale Rock reservoirs to the year 2025.
2.6* SUPPLEMENTAL WATER REQUIREMENTS
The City shall develop additional water supplies to meet projected demand at
buildout of the General Plan. The amount of water to be developed shall be based
on land use assessment and the adopted per capita water use figure in Section
2.3.2. '
2.7 MULTI- SOURCE WATER SUPPLY
The City shall continue to develop and use water resource projects to maintain
multi- source water supplies to. reduce reliance on any one source.
2.8* ALLOCATION OF NEW WATER SUPPLIES
2.8.1* When new water sources are obtained, the additional yield shall be allocated first to
eliminate any projeeted deficit at the time the new source is obtained.
2.8.2* Any additional safe yield beyond the deficit elimination will be allocated one -half to
new development and one -half to the reliability reserve (Section 2.4) and to
compensate for siltation (Section 2.5).
2.8.3* Reclaimed water shall be accounted for as a nonpotable supply and shall not be
considered as a component of City's potable water safe annual yield.
2.8.4* When developments are supplied by private groundwater wells, the yield of
those wells will not be counted toward the City's safe yield.
2.9 WATER ALLOCATION AND OFFSETS
2.9.1* The City will make available to new development only that amount of safe yield
which exceeds "'''"
prejeeted p�esela� water use (as stated in Section W), the amount
to compensate for siltation (Section 2.5) and to provide a reliability reserve (Section
2.5).
City of San Luis Obispo I -2
/ -89
APPENDIX I
2.9.2* When there is no safe annual yield to allocate to new projects, a project may be built
if a. developer retrofits existing facilities which will reduce long -term water usage
equal to the allocation required for the project.
Exemptions to needing a water allocations or an offset, or reducing the amount of the
required allocation or offset for a project will be granted to the extent that a project
is supplied by a suitable private well.
2.9.3 Required allocations and offsets will be based on long -term usage for each type
of development.
2.10* RECLAIMED WATER
2.10.1* The City shall produce high quality reclaimed water, suitable for a wide range of
nonpotable uses.
2.10.2* The City will dedicate one cubic foot per second to San Luis Obispo. Creek and make
available reclaimed water for existing and new nonpotable uses.
2.10.3* As reclaimed water supplies new or existing development, the reliable yield of
nonpotable water will increase. The increase in reliable nonpotable yield will only
be credited only when it is available to a user.
2.10.4* When the City provides distribution facilities for reclaimed water, the resulting
reduction in potable demand will be given offset credit for government projects.
2.10.5* When a private project provides the distribution facilities that allow for the use of
reclaimed water in existing development, the resulting reduction in potable water
demand will be credited on a one - to-one basis.
When a private project provides distribution facilities to that project, any required
potable water allocation shall be reduced by a corresponding amount.
2.10.6* When a component of the reclaimed water distribution system is funded by both the
City and a private developer, the credit for reduction in potable water usage resulting
from that component shall be divided according to the proportionate share based on
the contribution.to the'component.
2.11* CAPITAL IMPROVEMENT PLAN- Water Distribution
The City shall replace. aging waterlines at the yearly rate of 2 % of the value of the
Distribution system.
City of San Luis Obispo I -3
-90