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HomeMy WebLinkAbout11/01/1994, 1, 2 - URBAN WATER MANAGEMENT PLAN & GENERAL PLAN LAND USE ELEMENT Gl =ll city of Santis OBISPO NoovveMm�berT 1 1994 COUNCIL AGENDA REPORT MM NUMBM: / FROM: John Moss, Utilities Directo PREPARED BY: Gary Henderson, Water Division Manapr 4,a" Sue Baasch, Administrative Analyst Glen Matteson, Associate Planner Ron Munds, Water Conservation Coordinatoz�)- SUBJECT: Urban Water Management Plan CAO RECOMMENDATION 1. Approve the initial environmental study (ER 25-93) and the negative declaration of environmental impacts. 2. Adopt a resolution adopting the Urban Water Management Plan and including chapter two as the Water Element to the General Plan, effective December 1, 1994; 3. Provide direction to staff regarding the alternatives available for protection of the reliability reserve. PLANNING COMNIISSION RECOMMENDATION Adopt chapter two of the Urban Water Management Plan to replace the water section of the Water and Wastewater Element of the General Plan. DISCUSSION A&ckaound The Urban Water Management Plan (UWMP) has been brought before the Council for review and consideration during three prior meetings on January 11, 1994, March 15, 1994 and July 20, 1994. Based on the public input and direction provided by Council at these meetings, staff has prepared the final draft of the plan to be considered for adoption. All the noted modifications to chapter two of the UWMP were reviewed by the Planning Commission at the September 14, 1994 meeting and public hearing and are recommended for adoption to replace the existing Water Element to the General Plan. In addition, at the July 20th meeting Council directed staff to research the alternatives available to ensure that the reliability reserve would not be used for new development by future Councils. Chapter Two Modifications The key additions or changes to the water policy chapter since last reviewed by Council are as follows: ■ Addition of.policy 2.1.3.B. regarding groundwater (part of the current Water Element). ��u i ��npl����n�u►� �� city of San SUIS OBISpo i COUNCIL AGENDA REPORT Urban Water Management Plan Page 2 ■ The water use rate in policy 2.3.2 has been changed to 145 gallons per person per day as endorsed by the Council at the July 20th meeting. This also changes the overall projected demand in policy 2.3.3 from 10,350 acre feet per year to 9,096 acre-feet per year(per Council direction on 7/20/94). ■ Addition of policy 2.6.2 regarding considerations when deciding on the appropriate sources of supplemental water (part of the current Water Element). ■ Addition of policy 2.6.3 regarding paying for supplemental water for new development (part of current Water Element with further clarification on impact fees covering annual debt service per Council direction of 7/20/94). ■ Additional language added to policy 2.8.2.A. which clarifies when water allocations will be available from a new water supply source (per Council direction of 7/20/94). ■ Addition of policy 2.8.2.C. which specifies that new development will continue to retrofit (per Council direction on 7/20/94). ■ Addition of 2.8.3 which states the City will hold in reserve a sufficient amount of water, including retrofitting, for infill and intensification (per Council direction on 7/20/94). ■ Policy 2.9.2.A. retains the current offset requirement for new development at the two to one ratio instead of the initial recommendation of a one to one offset ratio (per Council direction on 7/20/94). ■ Expanded clarification in policy 2.9.1.B. regarding the use of private wells in a new development (reflects the language in the current Water Element). ■ Addition of policy 2.11 which states the City will be the only water purveyor within the City (part of current Water Element). Other Changes The following are key changes or additions to other chapters of the UWMP: ■ Chapter two will be part of the General Plan as originally proposed and will replace the water section of the Water and Wastewater Management Element. This change is reflected in section 1.2 (per Council direction on 7/20/94). 1111111111101I city of San LUIS OBISp0 Na 1 COUNCIL AGENDA REPORT Urban Water Management Plan Page 3 ■ The policy which states that replacement of aging water lines at the annual rate of 2% (formerly policy 2.11)has been moved from chapter two and made part of chapter four's water operation policies. ■ Chapter three, section 2 which discusses the Nacimiento Project reflects the changes to the per capita consumption estimates and the handling of annexation area and the subsequent revised allocation request of 3,380 acre-feet from the project as recently approved by Council. ■ Addition of section 5.2 which discusses the basis for establishing impact fees. ■ Addition of Appendix VII which sets forth the analysis for developing recommended impact fees for water supply and treatment facility improvements attributable to new development. Planning Commission Meeting Summary At the July 20, 1994 City Council meeting, Council directed staff to initiate the process to replace the current Water Element, adopted in 1987, with chapter two of the UWMP. On September 14, 1994 a public hearing was held by the Planning Commission to discuss chapter two of the UWMP. There was no public input provided and the commissioners had only a few comments and questions regarding the document and policies. The commission's main concern was that the process had been reversed because Council had reviewed and recommended changes to the document on three occasions prior to coming to the Planning Commission. The commission voted unanimously (7-0) to approve the recommendation to adopt chapter two of the UWMP as the updated Water Element with no recommended changes. Other Implications of Adopting the UWMP If Council adopts the UWMP as presented, the following issues will need to be returned to Council at future date for approval: ■ Preliminary analysis regarding new development water impacts fees was presented to Council at the July 20, 1994 meeting. Upon adoption of the UWMP, staff will return to Council on November 15, 1994.for formal adoption of the new impact fee schedule as set forth in Appendix VII. ���n�►�I�11��`�U city of San LUIS OBISpo COUNCIL AGENDA REPORT Urban Water Management Plan Page 4 ■ Minor modifications to the Water Allocation Regulations will be necessary to reflect the new policies contained in the UWMP. Reliability Reserve The City Council directed staff to evaluate the alternatives available to ensure that the reliability reserve would not be used in the future to allow for new development. The reliability reserve is intended to be used as an insurance for unforeseen situations such as loss of a water supply, new worst case drought or other emergency situations. This is reflected in the basis for policy in section 2.4 of the UWMP. The establishment of the reliability reserve, or a portion thereof, will not occur until a new supplemental water supply project is accomplished. The Salinas Reservoir and Nacimiento Projects are the likely sources for establishing the reliability reserve. The time frames for completion of either of these projects are several years in the future. Alternatives There are three alternatives which provide varying degrees of assurance that the reliability reserve, once it is established, will not be used to allow additional development. The first two options would be to include language in policy 2.4 requiring either`a 5-0 or 4-1 vote of a future Council to allow modification of the use of the reserve. This alternative may not provide the level of surety that the current Council is seeking, since it can be modified (ie. .5-0 vote requirement) by a majority vote of the City Council-(3-2) at any time in the future. Although this can be modified as stated, it would require a public hearing which would provide a forum to highlight the issue. The second option would be to amend the City Charter to include a policy-relative to the use of the reliability reserve. This alternative provides a greater level of surety that a future Council would not unilaterally change the policy. City Charter Amendment The Council can place a ballot measure on an upcoming election or hold a special election to amend the City Charter to include a section on the reliability reserve utilization. There are three options available: hold a special election, include on March 1996 presidential primary, or include on November 1996 general election. Each of these options have financial impacts to the City as outlined below: city of San GUIs OBIspo MiS COUNCIL AGENDA REPORT Urban Water Management Plan Page 5 Special Election $60,000 March 1996 Presidential Election $20,000 November 1996 General Election $2,000 The reliability reserve will not be established until either the Salinas or Nacimiento Projects are completed and these projects, at best, will not be completed before 1998. Therefore, staff would recommend waiting until the November 1996 general election since there is no urgency or need to expend additional City funds associated with the first two options above. CONCURRENCES The Community Development and Finance Departments have reviewed and concur with the information provided in the Urban Water Management Plan. The Planning Commission, as stated earlier, concurs with the policies contained in chapter two and is recommending adoption. FISCAL BIPACT Adoption of the Urban Water Management Plan does not have additional fiscal impacts on the Water Fund at this time. However, as noted in the Council presentation on July 20, 1994 and set forth in Appendix VII, significant increases in water impact fees will be necessary in financing the portion of water supply improvements attributable to new development. As analyzed in Appendix VII, impact fee projections for an "equivalent dwelling unit" range from $5,243 to 12,568, with a mid-point of $7,245. This compares with the current impact fee for water supply purposes (exclusive of the treatment plant portion) of $2,416. The plan recommends that the supply portion of the impact fee be set at the mid-range level ($7,245). Including the treatment plant portion ($673) results in a recommended fee of$7,918 per equivalent dwelling unit. Table F.2 in Appendix VII sets forth the recommended fee schedule for all residential and non-residential uses. Upon adoption of the Urban Water Management Plan, staff will return to the Council for formal approval of the impact fee schedule. In addition, the plan will ultimately impact user rates for the portion of supply project costs attributable to existing users as more fully discussed in Appendix VII. Attachments: 1. Resolution adopting the Urban Water Management Plan and chapter two of the plan as the revised Water Element to the General Plan. 2. Urban Water Management Plan � s RESOLUTION NO. (1994 SERIFS) A RESOLUTION OF THE SAN LUIS OBISPO CITY COUNCIL ADOPTING THE URBAN WATER MANAGEMENT PLAN AND REVISING THE GENERAL PLAN WATER MANAGEMENT ELEMENT The Council of the City of San Luis Obispo resolves as follows: 1. Record of Proceedin . The City Council has received and considered public testimony and the report and recommendation of staff and the Planning Commission. The City Council conducted a public hearing on November 1, 1994 concerning this matter. The minutes of the hearing indicate Council members' votes on particular components of the plan which may differ from the vote on this Resolution. Records of these items are on file in the office of the City Clerk. 2. Public and Agency Review A draft of the plan has been available for review and comment by interested agencies and individuals. 3. Environmental Determination An initial environmental study (ER 25-93 as revised August 12, 1994) has been prepared and made available for public and agency comment, and the Community Development Director has approved a negative declaration, pursuant to the California Environmental Quality Act ("CEQA") and State and City CEQA Guidelines. Council hereby finds that there are no potentially significant impacts and approves the negative declaration. 4. Revision of Element. The water section of the 1987 General Plan Water & Wastewater Management Element, as amended, is hereby replaced by Chapter Two of the Urban Water Management Plan. 5. Adoption of Plan The Urban Water Management Plan, consisting of a text with tables and figures, dated September 1994, with changes reflected in the Council minutes of November 1, 1994, on file in the City Clerk's Office, is hereby adopted. Resolution No. Page 2 Adopting Urban Water Management Plan 6. Publication and Availablllty The Utilities Director shall cause the newly adopted plan to be published and provided to City officials, concerned agencies, and public libraries, and to be made available to the public at a cost not to exceed the cost of reproduction. 7. Effective Date The newly adopted plan shall be effective on the thirtieth day after passage of this Resolution. On motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was passed and adopted this day of , 1994. Mayor ATTEST: City Clerk APPROVED: i uo ey ME IG AGENDA DATE //-i ITEM #.� i To: San Luis Obispo City Council October 27, 1994 From: Environmental Quality Task Force rpfCDDDIR ❑ FIN DIR " ❑ FIRE CHIEF Subject: EQTF Recommendations Summary and Recommendation , P'11D!R j Report to the Council on water policies and projects. ✓' = D rcL:::L CI=F' Background — T'_L3ia Part of the Council's charge to the EQTF was to provide recommendations to the City on water policies and projects, as the Urban Water Management Plan (UWMP), Water Reuse Project (previously called the Water Reclamation Project), Salinas Reservoir Expansion Project, and other water supply projects, as conservation, ground water, and Nacimiento Project. We had preliminarily made some of these recommendations in our 3/9/94 letter and attachments to the Council. These attachments included the EQTF's two 3/6/94 documents to you titled DRAFT URBAN WATER MANAGEMENT PLAN (UWMP) and DRAFT ENVIRONMENTAL IMPACT REPORT FOR THE PROPOSED SALINAS RESERVOIR EXPANSION PROJECT. However, this report is a necessary update considering more recent information on City water policies and projects. It was impossible to get this report to you sooner due to the complexity of - water issues and summer leave of various EQTF members. Water policy is one of the most important and complex problems facing the City. All potential water importation and diversion sources that the City is studying to date-- Reuse (Reclamation), Salinas, - Nacimiento-- will have severe, unmitigable adverse impacts regardless of our best CEQA efforts. This is because even for smaller cities such as ours, domestic water projects are too massive to properly mitigate the environmental costs. If nothing else, 20 years of struggle with CEQA has shown us this dilemma. Only when we recognize the inevitable, severe environmental consequences of these types of water projects can we begin to make the best water decisions for our City. With the complexity and the environmental severity of water issues facing the City in mind, the EQTF makes the following recommendations to the Council. First is a summary of our recommendations in the Recommendations Summary followed by a discussion of each in the Recommendations Report. pp+� CC `0 C .-iECEI H F - + OCT 2 7 1994 CITY CLERK OBISPO.C 2 Recommendations Summary Except for the first item, which is an unendorsable recommendation, the EQTF asks that the City Council endorse the following water issue recommendations: 1. Reread our letter to you of 3/9/94 (EQTF recommendations to the Council on the Draft Urban Water Management Plan) and its attachments, especially EQTF's two documents, each dated 3/6/94. 2. Add to the UWMP in section 2.8 under Basis for_-_ P_olicT the following fifth official use for new City water supplies: + Providing for habitat management, as mitigating, maintaining, restoring, enhancing, and creating native habitat by allocating a reasonable specified portion of landscaping water for larger new public and private developments, by establishing a new City water policy for this purpose within one year. 3. Modify the 145 gallons per person per day (gppd) planning use rate to 125 gppd, as the appropriate consensus figure to use for planning the City's future water needs. -4. In the spirit of the City's water reclamation policy for maintaining the San Luis Obispo Creek ecosystem (1) provide an effluent flow release adequate to maintain all of the native fish species in lower San Luis Obispo Creek, including three-spined stickleback, steelhead, sculpin, tidewater goby. Pacific lamprey, and speckled dace, and (2) - prior to certification of the Water Reuse Project EIR'Athe document will he modified to include the above information. modify 5. Hold a hearing within one year to consider purchasing some surrounding agricultural land for open space and valley wildlife habitat and importing its water for use within the City. 6. (1) Finish the Environmental Impact Reports on the Water Reuse and Salinas Reservoir projects and hold them in abeyance without further official action. (2) Next, finish the EIR on the Nacimiento Project. (3) Then hold a public City Council site visit to each project area to avoid the possibility that a paper review by itself might overlook any important environmental consideration. (4) Finally, review the Environmental Impact Reports of all three water source 3 projects together to ensure coordination for making the right water and environmental decisions for our City. Recnmimendations Rept 1. Our first recommendation is that you reread our letter to you of 3/9/94 and its attachments, especially the EQTF's previously mentioned two, each dated 3/6/94 . We believe this is necessary for you to have that background for this report and because we do not try to again cover all that was presented in that earlier letter. This report is an update and only references the earlier letter when it is critical to understanding the discussion here. 2. Our second recommendation is a clarification of a recommendation in our 3/9/94 letter to you. In that letter we discussed how the draft UWMP provided only economic uses for City water overlooking the need for ecological uses. To correct this flaw, in section 2.8 under Basis for Po 'ry we recommended that the Council add the following official use of City water by adding a fifth black bullet followed by the wording: Habitat management as, mitigating, maintaining, restoring, enhancing, and creating habitat. Staff thought that EQTF was recommending the City import water from natural aquatic ecosystems to provide habitat in the City. This did not make sense to staff as there would be no net gain of habitat, and likely there would be a net loss, due to the problems of - mitigating for water importation projects. In subsequent discussions with staff we explained our intent is not to import water away from existing habitat to provide for habitat management in the City. Instead our intent is, once the City has determined the quantity of water it needs for buildout, some types of new development requiring landscaping water will allocate a yet-to-be-determined portion of that landscaping water to native vegetation landscaping, which has greater benefit to wildlife than exotic vegetation landscaping. The wildlife that will benefit from native vegetation landscaping are small native songbirds, as wrens, warblers, vireos, native sparrows, orioles, fly catchers, nuthatches, chickadees, etc.. These birds evolved with native vegetation and are highly attracted to it. They are not as attracted to exotic vegetation. However, exotic vegetation is readily 4 used by very adaptive pesky species, as house sparrows, starlings, purple finches, mocking birds, scrub jays, crows, cow birds, and brewer's black birds. These advantaged pest species then further out-compete the small songbirds for any remaining natural feeding, breeding. and nesting sites in the City. Some pest birds (crows, scrub jays, mocking birds) also eat the eggs and chicks of songbirds. It becomes difficult for songbirds to survive. If we want to see songbirds in the City., we can accomplish this by setting a goal of emphasizing native over exotic landscaping vegetation in some types of new City development. This will not only provide extra habitat for songbirds, some of which are becoming rare, but will also avoid giving the pesky birds too much of an initial advantage over them. The EQTF stresses that we are not advocating requiring native vegetation landscaping on small new infill residential and business sites. Instead we are recommending a reasonable proportion of native vegetation landscaping for new public facilities and parks and new larger commercial, industrial, and residential developments. Staff asked the EQTF to clarify this in writing, which we are now doing by recommending that the Council add in section 2.8 under Basis -far Policy the fifth black bullet followed by this clarified wording - Providing for habitat management, as mitigating, maintaining, restoring, enhancing, and creating native habitat by allocating a reasonable specified portion of landscaping water for larger new public and private developments, by establishing a new water policy for this purpose within one year. 3. Our third recommendation addresses the Council's endorsement of five water conservation issues at its public hearing 7/20/94 on the UWMP. The EQTF supports the last 4 of the 5 water conservation decisions that the Council made that night. These are: (1) require retrofitting at a 2:1 ratio, (2) hold in reserve water for intensification and infill development, (3) recover cost of new water supplies necessary for development through impact fees, and (4) require Chapter 2 of the UWMP to be the Water Element of the General Plan. However, the EQTF does not support the first decision the Council made, which was preliminary endorsement of 145 gallons per person per day (gppd) as the water use rate to project future water demand. 5 At the hearing staff indicated the use of data by the Metropolitan Water District Of Southern California (MWDOSC) to help justify the 145 gppd. This is the water agency (along with the Bureau of Reclamation) that drained the lower Colorado River nearly dry and placed many of its native fish species on the brink of extinction (bonytail chub, humpback chub, woundfin, Colorado River squawfish, razorback sucker, etc.) securing municipal water for much of southern California. Many smaller towns as ours do not want to emulate MWDOSC and southern California. We should not be using their data to help determine what water conservation figures our City should use. Instead, we should be using the data of other smaller cities, including our own. To this end considerable good current evidence has recently been supplied to the City by the Sierra Club (letter to the Council 4/18/94). Pat Veesart (letter to the Council 7/20/94), and others showing that smaller coastal California cities that practice water conservation used far below 145 gppd in 1993 (Grover Beach 125 gppd, Morro Bay 125, Monterey 117, Santa Cruz 105, Santa Barbara 104). And the most recent information shows that San Luis Obispo's current 1994 use rate is only 108 gppd. The above small city water conservation figures show that the gppd - planning figure to establish for our City should be well below 145 gppd. This makes conservation and economic sense. For each 1.0 gppd reduction, our City's citizens will save about $28,900 annually (1.0 gppd reduction = 0.00112 acre feet saved per person annually x 44,000 City population x $587 cost/acre foot = $28,927 saved - annually). In acknowledging the environmental and economic advantages of reducing our City's water planning use rate, the EQTF recommends a planning use rate of 125 gppd. Given our City's current use rate of 108 gppd, it is difficult to justify a rate as high as 125 gppd, other than to say it is a compromise between staffs recommended 145 gppd and our citizens' current use rate of 108 gppd. Furthermore, it is evident from the previous economic analysis that by reducing the planning use rate from 145 gppd to 125 gppd, at a cost of $587/acre foot our citizens will save about $578,000 annually (20 gppd reduction x $28,900 saved annually/1.0 gppd reduction = $578,000 saved annually)! Since $587/acre foot is a midrange estimate by the City, the cost/acre foot is likely to be greater and the incremental savings will be proportional to the incremental increase in cost. 6 A final point is that with the adoption of the 125 gppd use rate, the City eliminates the need for all but one of its 3 major water projects. At our General Plan buildout of 56,000 people in year 2015, we would use 7,840 of annually (56,000 people x .140 of per person per year [equivalent to 125 gppd] = 7,840 of per year). To the 7,840 of we must add 2,000 of per year for the City's reliability reserve and 500 of for annual siltation, resulting in a total annual water requirement of 10,340 af. Subtracting the City's 7,735 of safe annual yield from its total annual water requirement of 10,340 of yields an additional annual water need at buildout of 2,605 af. This additional amount of water can be supplied by just one of the City's proposed water projects. 4. The EQTF's fourth water recommendation concerns the Water Reuse (Reclamation) Project. The City's attached water reclamation policy indicates some of the sewage effluent will be used for irrigation and some of it will be used for maintaining the San Luis Obispo Creek ecosystem. It does not say that one use will be accomplished at the expense of the other. Yet Utility Department staff have interpreted this to mean maximum water diversion for irrigation rather than optimum diversion, or balanced diversion, or some other fair sharing of this water. The problem is maximum - diversion for irrigation means minimum effluent flow for the Creek, and that is currently reflected in the draft UWMP and the draft EIR for the Water Reuse Project. These documents propose that of the total effluent of about 5.0 cfs, - 4.0 cfs be diverted for irrigation leaving only 1 cfs for the Creek during the critical summer flow season. Removing this amount of flow in the winter high flow season would not be a major problem. However, the Creek ecosystem has had these higher effluent flows available to it for many years during the hot summer. To drastically reduce the flows to 1 cfs in the critical hot summer cannot help but result in drastic effects to the Creek ecosystem. To address this problem, in our 3/9/94 letter to you, the EQTF recommended that you eliminate reference to the 1 cfs flow by replacing it with the following wording in the UWMP (new wording underlined; old wording lined out): The City will continue to discharge to San Luis Obispo Creek .& flow that has yet to be determined one eabie feet peF see of 7 reclaimed water for aquatic and riparian habitats. This was not done as section 3.3 under Bac ground of the current draft UWMP states: The City proposes to dedicate a release of 1 cubic foot per second to the maintainance and enhancement of the in-stream habitat of San Luis Obispo Creek (720 acre-feet per year). However, at the EQTF's meeting on Friday, 10/7/94, Utility Department staff stated that in the final draft of the UWMP, which the Council will soon review for approval, reference to the 1 cfs release will be deleted. They said that in its place will be a statement similar to the statement we recommended above. The EQTF supports this change to the UWMP. But this change to the UWMP still does not address our primary concern with the I cfs effluent release, which is the release that continues to be proposed in the second draft EIR on the Water Reuse Project. That concern is that if a 1 cfs release was selected, it would not be enough to maintain the Creek ecosystem, let alone enhance it. The last paragraph of the initial Instream Flow Study (IFS 9/8/92) indicated that the 1 cfs was only preliminary and the final - recommendation should consider other factors, some of which it listed. Unfortunately, the only factor the initial IFS used to tentatively show the adequacy of the 1 cfs was "wetted surface area" of the Creek bed. Upon reviewing the results of the IFS, the Calif. Dept. of Fish & Game (CDFG). State Water Resource Control Board - (SWRCB), and others, including EQTF scientists, did not believe that by itself wetted surface area of the Creek bed was adequate and relevant to determine the effluent flow necessary to maintain the Creek ecosystem. The CDFG and SWRCB stated that other factors that needed to be included in determining the amount of effluent to release to maintain the Creek ecosystem were stream flow-velocity, depth, and substrate. These other factors combined would give a more reasonable weighted usable area (WUA) index to help determine the appropriate amount of effluent flow to continue releasing to the Creek to maintain it. After more analysis by the flow study consultant using the WUA index, a SUPPLEMENT TO THE INSTREAM FLOW STUDY (STTIFS 7/26/94) was prepared and it states in the last paragraph: 8 Therefore, more effluent water added to the natural streamflow results in higher WUA values In other words, the more effluent that is released to the Creek, the better it will be for steelhead and other aquatic Creek species; the less that is released, the worse it will be for them. This conclusion of the final STTIFS confirms what the EQTF and many others believed all along. The City must not err on the side of releasing too little effluent, if it is to avoid catastrophic results to the Creek and its native species. With the conclusion of the final STTIFS that the more effluent released to the Creek, the better it will be for native fish, then why is the Utility Department still advocating an inadequate 1 cfs effluent release to the Creek in the second draft EIR? Possibly they are concluding that the Water Temperature Model section of the STTIFS indicates higher effluent releases result in elevated Creek water temperatures that are potentially unsatisfactory for juvenile steelhead. At their confluence, the effluent discharge temperature is somewhat higher than the Creek water temperature. However, the Results and Discussion sections of the Water Temperature Model section emphasize that by the time the combined Creek flow gets to a bridge near the South Higuera Street Highway 101 southbound - access, (only about one-third of the 6 mile Creek distance from the effluent discharge to Marre Dam 1.4 miles upstream of the ocean), even with high effluent releases to the Creek, water temperatures have dropped to within the tolerance range for SLO Creek salmonids (steelhead, salmon, and trout). - Since the preceeding information indicates that there is no water temperature argument for the Utility Department sticking with the 1 cfs effluent release, then maybe they are interpreting that the STTIFS is suggesting that the more effluent released to the Creek the better, but 1 cfs is still adequate. This not only ignores the conclusion of the STTIFS, but it also relies on the one part of the original IFS that was seriously flawed-- the part that focused on the minimal 1 cfs effluent flow release. There are two major flaws with the I cfs part of the IFS. Both stem from the instream flow study giving the impression that the 1 cfs effluent release will now above ground where aquatic species as fish could use it. In reality it will likely quickly evaporate or percolate 9 underground in the hot summer where it would be unavailable to Creek aquatic species. The first flaw with the I cfs part of the IFS, that gives the impression there will be reliable surface flows with a 1 cfs effluent release, was that the Creek bed and banks were inappropriately saturated with water from much higher effluent flows immediately prior to when the 1 cfs part of the study was done. To create the 1 cfs flow in the Creek, the City had to divert the rest of the effluent into their adjacent fields. These fields were small and filled so quickly that the Creek bed and banks did not have time to dry out with the l cfs flow before the rest of the effluent had to be returned to the Creek. As a result, during the 1 cfs -instream flow study the likely nearly saturated bed and banks of the Creek yielded measurable above ground flows for the entire Creek length downstream of the effluent release point. There was no effort made to determine if with 1 cfs effluent release there would be measurable flows in the Creek under late summer, drier bed and bank conditions, contrasted to the actual study conditions of very wet bed and banks. The second flaw with the 1 cfs part of the study, compounding the first flaw, is that the I cfs instream flow study was done in early July instead of mid August, when the City plans to release the least _ amount of effluent to the Creek. It is local common knowledge that as the summer progresses (1) it tends to get hotter, (2) natural Creek flows progressively diminish, and (3) the Creek bed and banks get drier. For these reasons, the measurement of live-stream flows would have been much more favorable in early July, when the study - was done, than they would have been in mid August. Clearly, for the 1 cfs instream flow study results to have had a chance of reliability, the study should have been done in mid August and not early July. The IFS is dated Sept. 8, 1992, but it does not report when the study was done. Instead, this information was found in a letter buried in the back of the EIR, which stated that the study was done the week of July 6, 1992. The EQTF believes that if the study would have been done under the normally nearly dry bed and bank conditions of late summer (as was recommended to the City by an EQTF scientist), there likely would have been little or no flow to measure for much of the Creek downstream of the 1 cfs discharge point. 10 The Instream flow study does not mention these serious flaws with the I cfs part of the IFS because to acknowledge them is to also acknowledge that its preliminary conclusion, that I cfs effluent release may be enough to maintain the Creek, is also seriously flawed. If the procedure design of the study is wrong, then it follows that the study results and conclusion preliminarily supporting 1 cfs effluent release in the initial IFS will also be wrong. However, the STTIFS final conclusion, that the more tertiary effluent that is released to the Creek, the better it will be for Creek species including steelhead, is not wrong, as it takes into account various factors including higher effluent flow regimes. And it is a common sense conclusion supported by the attached Central Coast Salmon Enhancement (CCSE) NEWSLETTER indicating for the first time in 10 years a CDFG survey found fingerling steelhead and other native fish species (sculpin, dace, stickleback, lamprey) in much of the Creek below the effluent discharge point. This rewarding news is understandable since the existing 5.0 cfs effluent flows provide adequate water quantity, and the recent improvement from secondary to tertiary treated effluent now provide, for the first time in many years, adequate water quality for steelhead and the other native fish species. So, whether the City uses the STTIFS conclusion or common sense, it is clear that the more tertiary effluent that is released to the Creek, the better it will be for the Creek ecosystem. Either way, it is obvious that 1 cfs is not enough. It is the EQTF's current understanding that the associated Creek flow model, in the unfinished San Luis Obispo Creek hydrology study report, was designed to show how much flow will be in the Creek at various downstream points with effluent flow releases of 0, 1, 2, and 5 cfs. Because the report is unfinished, we have not yet reviewed the Creek flow model for its results or reliability. Even so, we have a concern that at best most of the representative downstream Creek flows will not be actual stream flow measurements, but will have been derived from a model. As with the 1 cfs instream flow study, if all the right data parameters are not in the model (or wrong ones are in it), then its results and conclusion will be wrong too. Unfortunately, instream flow studies and stream flow hydrology models have inherent complex problems that can cause decision making to be very difficult. Speculation can also cause decision 11 making to be unnecessarily difficult. There are two points of speculation presented in the draft EIR for the Water Reuse Project and elsewhere that the EQTF will now address. The first speculation presented by the Utility Department is that if the state requires in the future greater effluent purity than existing tertiary treatment releases to the Creek, it would be cheaper for the City to divert the effluent than to further treat it. If such a future state mandate arises, then for the short-term, diversion may be the cheapest economic solution. But it would be at great environmental cost to the Creek and its long-term economic tourist value to our Community. The EQTF believes it is inappropriate for the City to consider using effluent diversion from the Creek as a way to avoid meeting future effluent quality standards. The second speculation presented by the Utility Department is that since the source of most of the effluent is outside the SLO Creek system, then eliminating this flow to the Creek would be a return to more normal historical Creek conditions. This is speculation because the EIR has provided no solid evidence of what the historical flow conditions of the Creek were. It is wishful speculation that shutting off the effluent flows the Creek has become reliant on over past decades would help return the Creek to its past natural grandeur. The EQTF believes that shutting off these flows would be one more traumatic blow to the Creek in a long history of such blows. We should strive to turn around this long history of ecological degradation of the Creek. Leaving most or all of this newly enhanced tertiary effluent in the Creek is a rare opportunity to do that, as - evidenced by the already mentioned CCSE NEWSLETTER article. To risk undoing this superb environmental achievement by our City by substantially reducing effluent flows in the critical summer flow season is inviting ecological disaster. Partly because of the inherent problems with complex scientific field studies and speculations about past and future conditions related to the Creek, the EQTF recommends that at this point the Council keep an open mind. This is important because currently there are at least the following three ideas on the appropriate effluent release to the Creek, other than the unacceptable 1 cfs proposal in the EIR. One idea is that a minimum of 3 cfs effluent should be released to the Creek. This proposal was presented by the San Luis Obispo County Land Conservancy to the Utility Department on 5/24/94 in a 12 document dated 5/9/94 titled CITY WATER REUSE PROJECT EIR. It has many supporters at this time including CCSE. A second idea presently being looked at by CDFG is that a minimum summer flow of about 3 cfs should be maintained at all times in the Creek downstream of the discharge, regardless of the flow source. Depending on Creek conditions (weather, month, hydrology, etc.), this flow might be comprised of all natural flow, all effluent flow, or part natural and part effluent flows. A third idea recently mentioned to the EQTF by the State Water Resource Control Board is an effluent release of about 4 cfs. This is based on Figures 5 through 8 of the STTIFS showing that an effluent release of about 4 cfs has the highest weighted usable area (WUA) value for steelhead fry in all three study reaches of the Creek downstream of the effluent discharge. All three of these ideas, and likely others, have merit and deserve further review. It is reasonably certain that I cfs effluent release is not enough to maintain the Creek ecosystem. In this regard, the EQTF is concerned that apparently the fish species being analysed for the preparation of the second draft EIR only include the steelhead and the endangered tidewater goby. The study of "indicator" species, a - popular idea, has limited value. In the end, such studies only indicate, at best, what environmental conditions are needed by the indicator species studied. They do not determine the requirements of all the other species in the environment, which were not studied. Each species in an ecosystem has its own unique set of requirements - for survival. Flows adequate to sustain the goby in the Creek estuary or steelhead upstream of Marre Dam near Avila may not be adequate to sustain the entire native fish species community in the lower San Luis Obispo Creek ecosystem. Upstream of Marre Dam this native fish community is comprised of, besides steelhead, three-spined stickleback, speckled dace, Pacific lamprey, and sculpin. It is biologically incorrect to assume that an effluent flow release adequate to maintain steelhead and tidewater goby will also be adequate to maintain the other native fish species. Therefore, the EQTF recommends that the Council not certify the EIR until the stream flow requirements for all of the named native fish species are known for the purpose of establishing an effluent flow release adequate to maintain them. 13 5. The EQTF urges the City Council to consider the possibility of the City purchasing some surrounding farmland and using its ground water for the City. The EQTF believes this proposal has merit for several important reasons, as supplemental City water, surrounding open space, and valley wildlife habitat, and recommends that the Council hold a public hearing on it within one year. 6. The EQTF's sixth and final recommendation regarding water issues is a call for overall caution and reason. The recent drought has caused our City to move quickly forward analysing various potential future water supplies to meet the needs of our General Plan population buildout of 56,000 people. Although population buildout will not occur until aboid year 2015, it is easy to indulge this water search now throwing caution aside. A flawed and expensive IFS has already demonstrated this. The rest of the way we should proceed more carefully by slowing down our water search process. The worst that could happen in the next few years without any new sources of water would be another extended drought and applying the same water conservation measures that proved very successful for our City during the recent drought. But we are proceeding quickly ahead on complex water projects as if we need all of our future water sooner than year 2015. This haste can cause us to make bad decisions on the 3 big proposed domestic water projects, Water Reuse, Salinas, and the Nacimiento Project. The first two of these projects, as currently proposed in their Environmental Impact Reports, have huge environmental costs that cannot be adequately mitigated. - As already discussed, the release of only 1 cfs effluent flow to the Creek, proposed in the second draft EIR for the Water Reuse Project and past drafts of the UWMP, is not enough to maintain the Creek, as required by the City's water reclamation policy (attached). The Salinas Reservoir Expansion Project is ecologically even worse. In the EQTF's 3/9/94 letter to you we discussed in it, and in our 3/6/94 attachment to it titled DRAFT ENVIRONMENTAL IMPACT REPORT FOR THE PROPOSED SALINAS RESERVOIR EXPANSION PROJECT, our recommendations to you regarding mitigations upstream and downstream of the dam for oak, pine, grass, marsh, and riparian habitats. Rather than repeat those mitigation recommendations here, we urge you to reread the 3/9/94 letter and its referenced attachment. 14 However, EQTF had a major oversight in our review and comments on the draft EIR. We failed to do a site visit before commenting. Since then EQTF members have made site visits, and it is now obvious to us that the approximately 77 acres of prime riparian habitat that would be permanently destroyed by drowning by the project is irreplaceable and therefore unmitigable. It is dispersed along about 1 and 1/2 miles of the upper Salinas River and about 1/2 mile of Alamo Creek. Along the Salinas River this belt of mature riparian habitat averages about 100 yards wide its entire length of proposed inundation. Unfortunately, the construction of over 150 large reservoirs throughout the state has resulted in the loss of almost all of the State's once common mountain valley, riparian riverine ecosystems. This is one of the few remaining, and all of it recently has been designated by the County, along with its trails, as a passive public park, with its natural wonders little known to the public as yet! It is nearly unthinkable to the EQTF that our environmentally sensitive City could be permanently stigmatized by being one of the last cities in California to destroy a mountain valley and its lush riparian river ecosystem. We know of no other active major dam project proposal in California-- whether a new one or an expansion of an old one, the latter having the same devastating ecological effects as the former. Such projects are wisely not being built anymore, not even by the two great dam builders of the past, the Bureau of Reclamation and the Corps of Engineers. Because site visits were such environmental eye-openers on this project for EQTF members, - especially to the newly opened and little known passive public park along the beautiful upper Salinas River riparian zone, we recommend that the entire Council do the same. The third project, Nacimiento, is also of such great environmental magnitude that once its project features have been delineated in the EIR, a public City Council site visit is appropriate for it too. However, we do know at this time that Nacimiento is very different from Salinas. It does not require the enlargement of the existing reservoir (which, if it did, could be even more ecologically damaging than Salinas, as among other things it would flood the upstream majestic Narrows canyon and further deplete the downstream Salinas River riparian zone). We are only asking for our rights to water of the existing reservoir. For this reason it will likely be less of an ecological problem than Salinas. The project will require water distribution 15 pipelines from the reservoir to local cities, but the pipelines will be buried and habitat vegetation can be established over the lines. On the other hand, the draft EIR process on this project is just starting, so we can only speculate as to the ultimate environmental impacts of this project, as compared to the other two major projects. And that is the point the EQTF wants to make. Only after all 3 Environmental Impact Reports are completed, can our City compare their positives and negatives and make an informed decision. The Environmental Impact Reports for Water Reuse and Salinas will soon be done, but there is no rule or logic requiring acting on either one of these Environmental Impact Reports until the Nacimiento draft EIR is done in a year or so. The argument that CEQA requires that each project be adequately mitigated on its own, and therefore can proceed on its own, is a legal argument that has nothing to do with environmental reality. That reality, as earlier stated in this letter, is that these types of water projects are so big and ecologically damaging that they are impossible to adequately mitigate, except perhaps for superficially satisfying CEQA's legal requirements on paper. But legal requirements do not ensure the survival of native species, as proven by more and more species continually being added to endangered species lists. So if we must choose between ecologically devastating projects, then we must wait until all the - environmental impacts for each project have been analysed in each EIR. Then we can compare them and choose the one that is the least ecologically devastating. With this in mind, the EQTF recommends that the Council finish the - Environmental Impact Reports for Water Reuse and Salinas and hold them in abeyance with no further action until the Nacimiento draft EIR is finished. The Council and public can then review the three projects together to determine which, if any, will meet our City's water needs with the least environmental damage. And as a part of this review, considering the unusual environmental magnitude of each of these three projects, we also recommend that the Council make public site visits to each. Sincerely, EQTF 7024 R.SOLUTION NO. (1991 Series) ESTABLISHING POLICY REGARDING T USE OF RECLAIMED T+ATcR MHER=AS, City policy is to pu'rsu'e 'a water reclamation program to s z;plement the City ' s water supply, and W-WEREAS, 3y cff5etting the Current non-potable water use with reclaimed water, the City would be able to avoid demands On the safe yield from its other water sources, and ' V-2-ERS.?S, using reclair.ed water to replace_ cr augment that . used from private wells for irrigation and/or Other non-potable use would allow fcr a lc'wcr rate Of withdrawal frc-i the bash and more water available fcr potable use. Now, it =:=FOR=, ITSOLVED, by the City Council of the City of San L•_-; s Obispo that City policy regarding reclai-med water use places e-mzh.asis On Offsetting potable water de'a'd fcr ncn-potable use and nininizing the amour, of groundwater pumped fcr ncn-potable use. 3. IT RESOLVED, in keeping with state water reclamation policy, each reclaimed water project should be a test effective project when ccr..pared to developing a new potable water source. BE IT FtRTHER R_SGLVED, that the following is the City polio guideline for approving of reclaimed water projects. If demand for category I is net; then reclaimed water could be distributed to category II. CAT=GCRY I • EX IS=ING IL�IG=.TIC1'/NO!:-?O=:.a_- Wt 1s-R _ - I- T Y ER L__�S iw.T" CON �=CTIGN O CIT SEATER sys='M. • EXIS77NG :RRIG%'rTcx/NOTE-?OTAzLE utsv- TWAT IS S:IT I.'4 _r.- U =AN R=s_-AVZ LINE (UR-1 , WZ7.1 OR W:T OUT A CONNECTION TO _:- CITY STATER SYST_TM S.-2Ci =?S?LCY A =RIVAT= WELL TO SUPPLY OR AUGMENT Tr.:IR N07:- ?O.;.BL . WA17ZR R=QVIR:Y=N7S • M4II:T?_\_*<G cR-=_+.FLO1 :CR -XIS==NG I:ds"ti.?m USES 210 INciz-NTAL G ROUN�wATER �=C:TARGE. CMTEGORY I.I • NEW I GATICN/Nc:.-?oTA==_ LSERs w:--=ti _:- t:cL.(At5 ��$ 9TIOM • Ou7s:=M OF Ta- OR _1=..NCS A.GR_CLL_L:.L OR CTEN srnC:. • �L°��r 1 Cc��r Central C'oasts e Salmon Enhancement �'oaa cam. Vol. 7, No. 2 NEWSLETTER April/May 1994 SLO Creek Steelhead - Confirmed! The first survey in nearly along Highwav 101 near Avila ing has occured. This is good ten years has confirmed that Beach. news after so manv years with Steelhead trout continue to in- A brief Department of little rainfall. Along with the habit all areas of San Luis Fish and Game survey in this trout were other native species Obispo Creek. We have known area found trout in three of including sculpin, dace, stickle- that they exist in areas of four locations sampled! The back, lamprey, crayfish, and downtown and the upper wa- fish %vere young of the year, or pond turtle. Non-native species tershed, but we were not sure if approximately 1-inch long, included goldfish, carp, catfish, they lived in the lower creek, and prove that natural spawn- sunfish,and mesquitofish. Legislation Update Salmon Trout Education Program Assemble Bill 2557, the Central Coast Ocean Resources Enhancement Program, has been tabled for this year. CCSE was instrumental in crafting this _ legislation which was designed to support programs that en- hance ocean fisheries.The le is- .. g lation will be improved and - r' hopefully introduced again next year. b� 70,000 Fish to Arrive ' On Saturday, June 25th, .1 .. CCSE will tentativelv transfer fish from a Fish and Game Educator Troy Horton stocks his classroom incubator aquarium hatchery truck to our ocean rear- with trout eggs provided by CCSE for "harms on'learning. ing pens at Port San Luis Har- bor. We anticipate a late after- to extend a special thank you to would like to come watch or noon delivery of these native the Commercial Salmon Stamp help out with the transfer, con- California, Feather River Chi- Committee for their support in tact CCSE closer to the 18th for nook salmon. CCSE would like obtaining these fish. If you the exact time of arrival. New Office and Phone Number CCSE has relocated its office to 1321 Price Street in Pismo Beach (no change in mailing address), next to Scrambles restaurant. We are looking for volunteers to stop by and help out with a variety of pro- jects - no skills are necessary. We also have a number of fish related publications available for browsing at your leisure. Although we don't have regular office hours, there is often someone around in the mornings and appointments are welcome by calling (805) 773-6769 or sending a fax to(805) 773-6942. Board of Directors and Staff President-Rick Ripe Secretary-Dusty Dunstan Director-Bob Grosenbach H.Director- Jay Elder Vice Pres -Nick Neuberger Treasury-AI McVay Director -Stan Radom H.Director-John Benson Address Staff Biologist P.O.Boz 277 Avila Beach.CA 93424 (805)773-6769 Project Mgr -Paul Cleveland MEMORANDUM OCT 2 ; 1994 CITY CLERK MEETING AGENDA f October 27, 1994 "-`: '.;;'s oeisPo.c,°, DATE � �A'p� ITEM �= To: John Dunn, City Administrative Officer From: John E. Moss, Utilities Director �'/1 Subject: Urban Water Management Plan, Request for Deferral of Public Hearing. Several issues have come to my attention which now force me to request continuance of the public hearing of the Urban Water Management Plan, currently scheduled for November 1, 1994. I would request that the hearing be continued to November 15, 1994. As you are aware, Utilities staff has been on an accelerated schedule in completing the plan in an effort to ensure that the current City Council will be able to consider and adopt the final plan. The requested continuance will still satisfy this requirement. However, the November 1, 1994 hearing date raises several issues in regards to adoption of the new impact fees, provision of adequate time for public notice of the plan and fee adoption, and provision of adequate staff time to consider and evaluate the recommendations of the City's Environmental Quality Task Force on the.Urban Water Management Plan, which have not yet been received. Impact Fees The current schedule is to consider and adopt the Urban Water Management Plan on November 1, 1994 and return to Council for adoption of revised Water Impact Fees on November 15, 1994. This schedule will result in a duplication of effort on the part of Council and staff in consideration of the policies and analysis supporting the revised fees. Additionally, the revised fees as recommended will result in fees nearly four times higher than our current fees. We were only able to recently complete the in-depth financial analysis (just in time for the close of the November 1, 1994 agenda) and have not had time to properly notice the public and interested organizations of the revised fee structure. Given the significance of the increase, I feel it is imperative that we allow an additional two weeks for public notification and consideration of the revised impact fees. EQTF Recommendations The Environmental Quality Task Force is reviewing the Urban Water Management Plan and will be providing recommendations to Council on various components of the Plan. Neither Staff or Council has received the EQTF recommendations as of this time. In all fairness to the EQTF, Council. and Staff, adequate time should be provided for Staff to review and evaluate the recommendations of the EQTF. Given the fact that the Urban Water Management Plan document has been in development for over a year and an extensive amount of public input has been solicited and received on the plan, I feel the requested delay will provide the time necessary to ensure continuance of this high level of public participation at the most critical stage of the planning process, adoption. If I can provide any additional information regarding this request please contact me as soon as possible. EMIED ���•� RE MaTING AGENDA lJ OCT �yy`` DATE �l= ITEM # October 28, 1994 clrr coul5po SAN 1�iic 061' .CIL CA City Council City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Subject: Proposed Water Impact Fee Increase, City Water Management Plan, November 1, 1994 Council Agenda Dear Members of the City Council: Peoples' Self-Help Housing Corporation would like to bring to your attention the negative impact the proposed fee increase will have on affordable housing. Specifically, the challenge of providing housing to lower-income persons will be made even more difficult. Page VII-6 of the Water Management Plan, as recommended by staff, would raise the water impact fee on any new single family home produced to $7,918, from its' current level of$2,416. The proposed water impact fee for apartments is $6,334 per apartment. When added to all the other fees charged to new development, the ability to provide housing for the truly needy becomes increasingly difficult. We recognize that water is a critical resource in the community. However, when considering major fee increases we ask you to look seriously at balancing the other public policy goal of providing housing for low and very low-income households. Perhaps the council could consider an exemption for low and very low- income projects sponsored by non-profit organizations. Historically, there have been very few low-income units produced in the City. While we realize that all housing has impacts, perhaps the water impact fee on non-affordable units could be set at a level sufficient to offset an exemption on lower-income units. San Luis Obispo County recently did this with their public facilities fee. Another alternative is to increase the level of Community Development Block Grant (CDBG) funds the City allocates for housing. The City currently earmarks about $200,000 for housing, out of its' total annual $800,000 CDBG allocation. By increasing the amount of CDBG funds designated for affordable housing, the City could help offset the decreased affordability caused by these higher fees. Sincerely, \ J Y -UiJ.-!GtS_ ❑ CG::I GIR -4 ��� SCottrh ;GA=1 IJ FIFE CHIEF ; Director of Programs ^'"`" �' 'D'�1 y� -.: Peoples'Self-Help Housing Corp. 1411 Marsh Street, Suite ,103 San Luis Obispo, Calfforpia 93401 TEL: (805) 544-5717 FAX: (805) 544-1901 MEETIL- AGENDA DATE 11-1-FIllf rrEM # San Luis Obispo Chamber of Commerce 1039 Chorro Street * San Luis Obispo, California 93401-3278 (805) 781-2777 * FAX (805) 543-1255 October 31, 1994 David E. Garth, Executive Director e'" . N, 6 :�C:1. 0 CDD C)IR Honorable Mayor and City Council Members V, :1A0 U;;,11N C)IR City of San Luis Obispo CJ FIRE CHEF 900 Palm Street P San Luis Obispo CA 93401 PL- i,C RE: Urban Water Management Plan Dear Mayor and Council Members: The San Luis Obispo Chamber of Commerce asks that you reschedule the Urban Water Management Plan which is currently scheduled as Item 1 on the November 1 Council Agenda. The reasons for this request are twofold. First, the Chamber of Commerce just recently received the revised Water Development Impact Fee schedule. This information was made available to the Chamber just last Wednesday. There is simply not enough time for the Water Task Force or the Chamber Board of Directors to meet and evaluate the numbers and how they were derived. Second, the Chamber feels strongly that the Urban Water Management Plan and the Water Impact Fees should be discussed together. Since these two concepts are so inextricably linked,looking at one without the other, in our view, would be inadvisable. Please consider rescheduling the Urban Water Management Plan to a.future date which would enable the time for analysis and community input. Sincerely, O� Pierre Rademaker, Water Task Force Chair San Luis Obispo Chamber of Commerce &JJL6A--,,A �3kAyrA z4) William A. Thoma, Legislative Vice President San Luis Obispo Chamber of Commerce OCT 3 1 1994 ACCREDITED CITY CLERK CNTI�ROIF�� CHAUDER OF COUMEACr 081 OF OF THE UNITED STAIFS U"AN WATER AIANAGEMENT PIAN city Of san luis ostspo URBAN WATER MANAGEMENT PLAN This Plan was adopted on San Luis Obispo City Council.Resolution No. (1994 Series). SAN LUIS OBISPO CITY COUNCIL Peg Pinard, Mayor _ Penny Rappa Bill Roalman Dave Romero Allen Settle City of San Luis Obispo Utilities Department 955 Morro Street San Luis Obispo, CA 93401 805-781-7215 TABLE OF CONTENTS EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v 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 . . . . . . . . . . . . . . . . . . . . . . . . . . 24 2.8 Allocation of New Water Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2.9 Water Allocation and Offsets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 2.10 Reclaimed Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 2.11 Water Service Within the City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 CHAPTER 3. SUPPLEMENTAL WATER SUPPLY PROJECTS . . . . . . . . . . . . 33 . 3.1 Salinas Reservoir Expansion Project . . . . . . . . . . . . . . . . . . . . . . . . . 33 3.2 Nacimiento Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 3.3 Water Reuse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 3.4 Water Demand Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 3.5 Other Supplemental Water Supply Project Alternatives . . . . . . . . . . . . . . 43 CHAPTER 4. WATER OPERATIONAL PROGRAMS . . . . . . . . . . . . . . . . . . . 45 4.1 Water Treatment . . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . 45 4.2 Water Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 4.3 Water Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 4.4 Telemetry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 4.5 Water Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 CHAPTER 5. FINANCIAL PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 5.1 Annual Water Fund Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 5.2 Impact Fees . . . . . . . . . . . . 71 APPENDICES City of San Luis Obispo i TABLE OF CONTENTS - continued Figures, Tables, Appendices FIGURES Figure 1. Whale Rock Conveyance System . . . . . . . . . . . . . . . . . . . . . . . . . 6 Figure 2. Safe Annual Yield due to Siltation . . . . . . . . . . . . . . . . . . . . . . . 21 Figure 3. City's Water Supply and Conveyance System . . . . . . . . . . . . . . . 46 Figure 4. Pressure Zones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Figure 5. Storage Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Figure 6. Water Transmission Schematic . . . . . . . . . . . . . . . . . . . . . . . . . 52 Figure 7. Water Telemetry System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 TABLES Table 2.3 Water Use 1980-1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Table 2.3.2 Per Capita Water Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Table 2.3.4 Calculation of Present (1994) Water Demand . . . . . . . . . . . . . . . . 18 Table 2.5.1 Salinas Reservoir Capacity Studies . . . . . . . . . . . . . . . . . . . . . . . 20 Table 2.6.1 Required Safe Annual Yield for General Plan Build-Out . . . . . . . . . 22 Table 2.6.2 New Water Supply Requirements . . . . . . . . . . . . . . . . . . . . . . . 23 Table 2.8.1 Water to Serve Build-Out (1994 boundaries) and Available for Annexation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Table 3.1 Salinas Reservoir Expansion Project Schedule . . . . . . . . . . . . . . . . 35 Table 4.5.3 Water Savings through Hardware Retrofit . . . . . . . . . . . . . . . . . . 65 APPENDICES Appendix I Water Policy Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1 Appendix II General Plan Land Use Elements-Policies affecting Water Management II-1 Appendix III Water Supply Projects No Longer Being Pursued . . . . . . . . . . . . . III-1 Appendix IV Water Distribution/Customer Service Workload Analysis . . . . . . . . IV-1 Appendix V Water Conservation Programs and Services . . . . . . . . . . . . . . . . V-1 A. Best Management Practices B. Current Programs and Services C. Evaluation of Programs and Technologies Appendix VI Water Fund Rate Review - September 7, 1993 . . . . . . . . . . . . . VI-1 Appendix VII Impact Fee Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-1 �� City of San Luis Obispo FOREWORD This Urban Water Management Plan was 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 was intended to provide the basis upon which the Utilities Department would 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 is structured to serve as an easily-understood water policy and resource guide. Following the introduction, the major policies are stated, 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. Chapter 2 serves as the Water Element to the General Plan. 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 iii ry City of San Luis Obispo EXECUTIVE SUMMARY 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 in the water supply and distribution systems, identify needed expansion to reach General Plan goals, and develop a financial plan 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 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 SUMMARY 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 Urban Water Management Plan - —xecutive Summary 1.2 THE PLAN'S RELATIONSHIP TO THE GENERAL PLAN AND OTHER DOCUMENTS Chapter 2 of this Plan replaces the Water section of the General Plan's Water and Wastewater Management Element, adopted in 1987. 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. 1.3 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 Cityof San Luis Obispo. 2.1 SAFE ANNUAL YIELD Pnucr 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 droughtconditions. 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. Vi City of San Luis Obispo Urban Water Management Plan _xecutive Summary 2.1.3 Groundwater A. 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. The City shall monitor water levels at the well sites to determine whether reduction or cessation of pumping is appropriate when water levels approach historic low levels. B. The City will not compete with local agricultural use of groundwater outside the urban reserve line or damage wildlife habitat through reduced natural stream flows in obtaining long-term sources of water supply. Basis for Policy Summaa 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 advantage 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 Pond 2.2.1 Long-term Water Efficiency The City will implement water efficiency programs which will maintain long-term, per-capita usage at or below the per capita use rate as identified in Section 2.3.2. 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). City of San Luis Obispo vii Urban Water Management Plan _Aecutive Summary Basis for Policy Summmy 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 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 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 145 gallons per person per day (approximately 0.162 acre-feet 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. (Throughout this Plan, 145 gallons per person per day is used in computations of future water demand.) 2.3.3 Overall Projected Water Demand Applying 145 gallons per person per day to a projected City resident population of about 56,000 at General Plan build-out results in a projected water demand of 9,096 acre-feet per year, (excluding demand from the Cal Poly campus, which has separate entitlements). 2.3.4 Present Water Demand Present water demand shall be calculated by multiplying the water use rate identified in Section 2.3.2 by the current city population (as determined by the California Department of Finance, Population Research Unit). Basis for Policy Summga 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 Viii City of San Luis Obispo Urban Water Management Plan _xecutive Summary 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 Summarx 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, contamination of a water source, or failure of a new source to provide projected yield, and not to allow additional development. 2.5 SILTATION AT SALINAS AND WHALE ROCK RESERVOIRS Policy 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 Summarx 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. City of San Luis Obispo ix Urban Water Management Plan -.Aecutive Summary 2.6 SUPPLEMENTAL WATER REQUIREMENTS Pofid 2.6.1 Supplemental Water Requirement The City shall develop additional water supplies to meet the projected demand at build-out of the City's General Plan, to establish the reliability reserve, and to offset water yields lost due to siltation. The supplemental water supply amount shall be based on the adopted per capita water use figure identified for planning purposes in Section 2.3. 2.6.2 Supplemental Water Sources In deciding on appropriate sources of supplemental water, the City will evaluate impacts on other users of the water and other environmental impacts, total and unit costs, reliability, water quality, development time, and quantity available. 2.6.3 Paying for Supplemental Water for New Development The cost for developing new water supplies necessary for new development will be paid by. impact fees set at a rate sufficient to cover the annual debt service cost of the new water supplies attributable to new development. Basis for Policv Summarx 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 11,596 acre feet. This figure includes the 2,000 acre feet reliability reserve and accounting for siltation at the reservoirs. 2.7 MULTI-SOURCE WATER SUPPLY Ponce 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. x City of San Luis Obispo Urban Water Management Plan _xecutive Summary 2.8 ALLOCATION OF NEW SUPPLIES Pokcv 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 any deficit between safe annual yield (Section 2.1) and present demand. as defined in Sections 2.1 and 2.3.4 at the time the new source is obtained. 2.8.2 Supplying New Development A. The City will make available to new development only that amount of safe yield which exceeds present water use (Section 2.3.4). Available allocations will be assigned to development in a way that supports balanced growth, consistent with the General Plan. Allocations from a new water supply project shall be considered available at the time project construction is initiated. B. Any additional safe annual yield beyond that needed to balance safe annual yield and present demand will be allocated (A) one-half to.the reliability reserve and compensating for reduced yields due to siltation and (B) one-half to development, subject to the requirements in Section 2.8.3, "Reserve for Intensification and Infill". C. Until all toilet and showerhead fixtures in the City are replaced with low flow toilet and showerhead fixtures, the amount by which safe annual yield (Section 2.1.2) exceeds present demand resulting from the assumption that 100% of the retrofit is complete (Section 2.3.4), shall not be made available to development. 2.8.3 Reserve for Intensification and Infill Development A sufficient amount of water supply, including the potential water savings from replacing water fixtures in the City (Section 2.9.1), will be held in reserve to serve intensification and infill within existing City limits as of July 1994. 2.8.4 Accounting for Reclaimed Water Reclaimed water shall be accounted for as a "non-potable" 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 reduce demand for potable water supplies as reclaimed water use increases. 2.8.5 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 City of San Luis Obispo Xi Urban Water Management Plan _xecutive Summary for City water supply 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 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 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 twice the allocation required for the project, consistent with the policies in Section 2.8. 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 private well which will not significantly affect the yield of City wells. Such a well may be operated by the owner of the property containing the well only for the owner's use. The City will consider the cumulative effects of wells in the groundwater basin in making this decision. Such wells may be used only when: 1. The City Council approves the well proposal as part of a specific land development project approval, and the proposed well system meets all City standards; and 2. A qualified, independent, hydrological investigation demonstrates that the well(s) reliably can provide sufficient quality and quantity of water for the proposed land development project and will not impact the yields from City wells. xii City of San Luis Obispo Urban Water Management Plan - _xecutive Summary 2.9.2 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 Swamga 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 use unless safe yield and present use would be balanced. 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. 2.10 RECLAMED WATER PoNd 2.10.1 Reclaimed Water Quality The City will produce high quality reclaimed water, suitable for a wide range of non-potable uses. 2.10.2 Uses of Reclaimed Water The City will make available reclaimed water to substitute for existing potable water uses as allowed by law and to supply new non-potable 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 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. City of San Luis Obispo xiii Urban Water Management Plan - .-xecutive Summary 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, the resulting reduction in potable water usage will be credited to any allocation of potable water needed for the developer's project, at a two-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 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 Summaa 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 WATER SERVICE WITHIN THE CITY Policy The City will be the only purveyor of water within the City. Basis for Policy Summga Historically, the City has been the sole water purveyor within the City limits. This allowed the City to maintain uniformity of water service and distribution standards, and to be consistent in developing and implementing water policy. In continuing to be the sole water purveyor, the City will maintain control over water quality, distribution and customer service, as well as ensure consistency with the City's General Plan policies and goals. ary City of San Luis Obispo Urban Water Management Plan ..xecutive Summary 3.0 SUPPLEMENTAL WATER SUPPLY PROJECTS Policy The City shall pursue the expansion of the Salinas Reservoir, 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: certifying the environmental impact report, and resolving the ownership issue of the reservoir facilities. The City Council has supported the ownership transfer to the County of San Luis Obispo and has been working to develop an agreement acceptable to both parties. 3.2 NACIAUENTO RESERVOIR PROJECT The Nacimiento Reservoir provides flood protection and is a source of supply for groundwater recharge for the Salinas Valley. It 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 H is to evaluate and recommend equitable apportionment of the District's entitlement to interested agencies, to analyze and determine the best pipeline alignment, to determine facility City of San Luis Obispo xv Urban Water Management Plan - _x cutive Summary requirements, estimate costs, and to determine probable environmental impacts and mitigation measures. The reports were completed in December 1993. Phase III work includes the report and recommendations. 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 drinldng and food preparation. 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 reclaimed 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 project 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 levels required to "stabilize the City's water supplies." 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 avi City of San Luis Obispo Urban Water Management Plan _xecutive Summary 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 drought. The program targeted 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 not to proceed at this time with further studies relative to this project. 3.5.4 Groundwater Recharge Groundwater recharge using tertiary treated reclaimed water may be future water supply alternative. Because of the capacity and recharge capabilities, there may be limited opportunities for recharging the groundwater basin. The State Department of Health Services have very stringent regulations governing such non-potable water recharge projects. An extensive analysis and study evaluating costs, water recharge potential, and potential storage or injection sites will be required before pursuing such a project. 4.0 WATER OPERATIONAL PROGRAMS Ponce The City shall sustain city-wide water efficiency programs and 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. City of San Luis Obispo xvii Urban Water Management Plan —Aecutive Summary The City shall allocate funding to meet the goals and objectives presented in this chapter (also see Chapter 5). The City should strive to replace aging water lines at the annual rate of 2% of the replacement value of the water distribution system. 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 trihalomethanes (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 Park Way well exceeded State standards, so that well 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 with minimal time for preventative maintenance. In order to 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. zviii City of San Luis Obispo Urban Water Management Plan _fecutive Summary 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 assistance from the water distribution crew during peak workload periods. Future growth will add a significant number of water meters which may require additional staffing. As area 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 preventative measures when water supply deficits are projected. 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" (MOU) regarding urban water conservation and the implementation of the "Best Management Practices".(BMP's). The BMP's act as a road map for the City's long-term water conservation program. 5.0 FINANCIAL PLAN Policy The City's policy is to fully recover all water costs, operations, maintenance, capital, debt service, and appropriate overhead, through water revenues. Resolution No. 6447 states the City of San Luis Obispo xix Urban Water Management Plan _Aeoutive Summary 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 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. Water impact fees were established in 1991 to pay for needed facilities and improvements reasonably related to new development within the City. These fees are adjusted annually to account for changes in the cost of construction or other considerations which affect the reasonable relationship between the fees and the cost of facilities and improvements on which the fees are based. xx City of San Luis Obispo 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 t Urban Water Management Pi. 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 1994 Planning Commission draft Land Use Element. 2 City of San Luis Obispo Urban Water Management Pia„ 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 Urban Water Management Pi.... 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 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 Section 2.5. 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). 4 City of San Luis Obispo Urban Water Management Pia.. Recommendations for System Improvements The City proposes to 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 Urban Water Management Ply., 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. CayucosAlascadero Whale Rock ` iN Reservoir ` ,ter l / Q.���~�'•� �� 1 11 1 'Niles i\ :"reAN Q Pon SA Sta 110+0leben 0 r\ ssL9 PPO ✓ to v oO CREEK Santa ry.^:'LIT Margarita Charm Warcr O Treatment Plant n I Morro Bay / Z nafSs4gF / / =opf Il Chorro Reserwh r ; 1 FGgh Panrt a Prang Statlon B Sla 729+40 •_—. Flow from Salinas Rascrvoir Sia 603+50 Chorro Lateral Abandoned Sla 796+36 San Luis Forebay Obispo San Luis Obispo. Water City Water Treatment Plan! Treatment / St.657+00 Plant f EP Pewer:lanl WHALE ROCK and Outlet at City 101 Water.Treatment Plant onleetion to Abandoned ,/ CONVEYANCE City Water Treatment Plant CONDUIT San Luh Obis 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: 6 City of San Luis Obispo Urban Water Management Pi. 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 between 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 Urban Water Management Pla.. 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. 8 City of San Luis Obispo Urban Water Management 1-._. 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 Introduction 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 were 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 southerly 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 Urban Water Management Pi_ 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 Park Way 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 Park Way well will ensure that minimum safe annual yield projections of groundwater are realized. 10 City of San Luis Obispo CHAPTER 2 WATER POLICY Introduction This chapter contains the water policies 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. Chapter 2 constitutes the Water Element of the General Plan, and replaces the water section of the Water and Wastewater Management Element. Because of the length and complexity of the policies, a summary of all the policy statements contained in this Plan is presented in Appendix I. 2.1 SAFE ANNUAL YIELD Policy 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 A. 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. The City shall monitor water levels at the well sites to determine whether City of San Luis Obispo 11 Urban Water Management PI... reduction or cessation of pumping is appropriate when water levels approach historic low levels. B. The City will not compete with local agricultural use of groundwater outside the urban reserve line or damage wildlife habitat through reduced natural stream flows in obtaining long-term sources of water supply. Basis Lor Policy 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 (from surface sources) 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 7,735 acre-feet 12 City of San Luis Obispo Urban Water Management 1•..... 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: Water Suonly 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 CMM-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 analyses 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 L.eedshill-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 City of San Luis Obispo 13 Urban Water Management Pla.. 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 rainfall periods. Following periods of above average rainfall, the groundwater basin may be capable of sustaining increased extraction rates to meet City water demands. 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. The conjunctive use of the groundwater basin and surface water supplies in this manner will provide an effective management strategy which increases the reliability of all the resources to meet current and future water demands. 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. Past City policy has been not to compete with agriculture for use of groundwater resources. Recognizing the importance of the open space provided by agricultural land outside the urban reserve line, the City will continue to endorse this policy. 14 City of San Luis Obispo Urban Water Management Pian 2.2 WATER CONSERVATION Policy 2.2.1 LONG-TERM WATER EFFICIENCY The City will implement water-efficiency programs which will maintain long-term, per-capita usage at or below the per capita use rate as identified in Section 2.3.2. 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 Policy 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. Since 1985, 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. A comprehensive evaluation of the potential water savings from current water conservation technologies and programs is included as Appendix V to this Plan. 'Based on the reliability of the water conservation measures which were evaluated, and the cost effectiveness of the proposed programs, a long term reduction in water demand of approximately twenty percent from the average per capita use recorded in 1986-87 is used for planning for future water conservation programs as well as future water supply needs. 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 Plu„ 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 145 gallons per person per day (this equates to approximately 0.162 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. (Throughout this Plan, 145 gallons per person per day is used in computations of future water demand.) 2.3.3 OVERALL PROJECTED DEMAND Applying 145 gallons per person per day to a projected City resident population of about 56,000 at General Plan build-out results in a projected water demand of 9,096 acre-feet per year (excluding demand from the Cal Poly campus, which has separate entitlements). 2.3.4 PRESENT WATER DEMAND Present water demand shall be calculated by multiplying the water use identified in Section 2.3.2 by the current city population (as determined by the California Department of Finance, Population Research Unit). Basis for Policy 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 city-wide 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 16 City of San Luis Obispo Urban Water Management Pim.. 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 shows recent water usage compared with City resident population. Table 2.3.2 compares the "per capita" and "land use" methods of estimating water needs. Table 2.3 WATER USE 1980-1993 Water from <Total City Year WTP:and Water: ; Wells ;DemandTotal City (af) ' laf! : Population ' GPC/Day GPClDay 1980 6,745 6,145 34,252 176 160 1981 6,941 6,341 34,759 178 163 1982 6,584 5,984 35,239 167 152 1983 1 6,800 6,200 35,660 169 155 1984 7,862 7,262 36,407 182 178 1985 8,025 7,425 37,378 193 177 1986 8,367 7,767 38,205 196 181 1987 8,399 7,799 38,282 196 182 1988 8,411 7,811 39,858 188 175 4 1989 6,004 5,404 41,027 129 118 1990 4,796 4,196 41,958 102 89 1991 4,640 4,040 42,178 98 86 1992 5,316 1 4,716 42,922 1 110 98 1993 5,572 4,972 43,415 115 102 ' Data from City Water Treatment Plant production reports. Includes Cal Poly potable water. 2 Cal Poly water use assumed constant for this period (600 acre feet per year). ' January 1 population estimates -California Department of Finance, Population Research Unit, as revised through 1993. ° Bolded, italicized years (1989 - 1991) indicate .mandatory rationing years. City of San Luis Obispo 17 Urban Water Management Pla.. Table 2.3.2 PER CAPITA WATER USE Method 1: Water Treatment Plant Production and Population Method 2: Metered Use by Development Type and Land Use Bement Per Capita Water Use-Based on Historic Demand,Population and Conservation Per Capita Water Use-Based on Land Use,Historic Demand and Conservation Annual Demand 1087-veer highest use 8,397 acre feet Type of SFaesld 3,630 acre feet Land Use- MFl9esid 2,633 General Plan FballComm 422 Leen Cel Poly Subtract 600 ane act from total, 7.797 acre feet Buildout office 393 based on average demand (1992 Hearing Draft) SVC Industry 438 Motel/Hotel 608 Hmp,Schools,Parks 1,432 Per Capita Use Convert to gallons and 182 gallons/day Total Acre Feet (1) 9,556 acre feet divide by 365. Divide by Dept of Rnam;e population estimate(6.282). Per Capita Use convert to gallons and 152 gallons/day divide by 385 Divide Less 20%long- Subtract 2096. 145 gallons/day by estimated bulldout term conservation population(50,0000). Excludes cel Poly pop. (1) Land Use rates include 20%long term conservation compared to pre-7987 use. Based on the analysis of these two approaches and the inclusion of long term water conservation programs, 145 gallons per day per person is used throughout this Plan for long term water supply planning purposes. Table 2.3.4 CALCULATION OF PRESENT (1994) WATER DEMAND Gallons per . City Gallons per .. . Days m person per day Population Acre`Foot a'Year Current Demand 1 acre-foot 145 43,415 325,851 gallons 365 7,052 acre feet 18 City of San Luis Obispo Urban Water Management Pi.... 2.4 RELIABILITY RESERVE Pofia 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 foT Pour 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, contamination of a source, or failure of a new source to provide projected yield, 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 Urban Water Management Pla,r 2.5 SILTATION AT SALINAS AND WHALE ROCK RESERVOIRS PPoud 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 for Policy 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. Table 2.5.1 SALINAS RESERVOIR CAPACITY STUDIES Total US able: Avg Annual Loss' 'i Year Agency Capacity Capacity Usable"Capacity;: (afl iafl' (afy) 1941 U.S. Army 44,800 26,000 - 1947 U.S. Soil Conservation Service - 25,860 23.3 1953 U.S. Soil Conservation Service and U.S. Forest Service - 25,590 34.2 1975 U.S. Geological Survey 41,400 23,200 82.4 1990 County of San Luis Obispo 41,791 24,035 40.1 Usable capacities are shown at the 1,301.0-foot spillway elevation because the usable capacity at the 1,300.7-foot elevation for the 1947 and 1953 studies could not be accurately determined. Usable capacity at the 1,300.7-foot elevation for the 1941 survey was determined to be 25,800 acre-feet and for th 1975 survey was 23,000 acre-feet. 20 City of San Luis Obispo Urban Water Management P., 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 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. 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. Using a planning horizon to the year SAFE ANNUAL YIELD REDUCTION 2025, there will be DUE TO SILTATION an estimated loss of storage capacity at Salinas and Whale Reduction of Combined Reservoir Yield (A.F.Y.) Rock reservoirs of -200 . 1,400 of and 2,560 of respectively. -300 . Based on this -400 storage capacity __ reduction, there -500 ........... .... ............ ... ..... will be an estimated reduction in the -600 City's safe annual field of 500 af. 700 - The results of the analysis are shown -800 in Figure 2. This 2015 2020 2025 2030 2035 2040 2045 2050 Year loss in yield needs Figure 2 SAFE ANNUAL YIELD REDUCTION DUE TO SILTATION 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 Urban Water Management P,. 2.6 SUPPLEMENTAL WATER REQUIREMENTS Poud 2.6.1 SUPPLEMENTAL WATER REQUIREMENT The City shall develop additional water supplies to meet the projected demand at build-out of the City's General Plan (Table 2.6.1) and to establish the reliability reserve and to offset water yields lost due to siltation. The supplemental water supply amount shall be based on the adopted per capita water use figure identified for planning purposes in Section 2.3. 2.6.2 SUPPLEMENTAL WATER SOURCES In deciding appropriate sources of supplemental water, the City will evaluate impacts on other users. of the water and other environmental impacts, total and unit costs, reliability, water quality, development time, and quantity available. 2.6.3 PAYING FOR SUPPLEMENTAL WATER FOR NEW DEVELOPMENT The cost for developing new water supplies necessary for new development will be paid by impact fees set at a rate sufficient to cover the annual debt service cost of the new water supplies attributable to new development. Basis for Polio Based on the Land Use Element adopted by the City Council in August 1994 and a per capita use rate of 145 gallons per person per day (Section 2.3), the projected total amount of water for the City to serve General Plan build-out is 11,596 acre-feet (af). This figure includes the 2,000 acre-feet reliability reserve and 500 acre-feet siltation reserve. Table 2.6.2 shows the build-out water requirement, reliability reserve, siltation loss, and the resulting supplemental water requirement necessary to meet projected City water demand. Table 2.6.1 REQUIRED SAFE ANNUAL YIELD FOR GENERAL PLAN BUILDOUT Annual AF @ 145 gal.per. Percent;(%) Population day potal Existing Development 43,415 7,052 77.5% New Development 12,585 2,044 22.5% TOTAL 56,000 91096 100.0% 22 City of San Luis Obispo Urban Water Management I.. Table 2.6.2 NEW WATER SUPPLY REQUIREMENTS (in acre feet) - Required Safe Annual Yield 9,096 — Current Safe Annual Yield 7,735 Additional Safe Annual Yield Required (based on per capita water demand ratios) 1,361 — Additional Safe Annual Yield Required 1,361 — Reliability Reserve 2,000 Siltation Reserve 500 ETotal Water Supply Requirement 3,861 City policy adopted in 1987 as part of the Water Element states that the costs of developing supplemental water sources will be borne by those malting new connections to the water system. Policy 2.6.3 continues this policy and is consistent with the Land Use Element policy 1.13.4(see Appendix H.) City of San Luis Obispo 23 Urban Water Management P►a.. 2.7 MULTI-SOURCE WATER SUPPLY Policy 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 BLh 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. 24 City of San Luis Obispo Urban Water Management Pian 2.8 ALLOCATION OF NEW WATER SUPPLIES Policy 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 any deficit between the adopted safe annual yield (Section 2.1) and the present demand as defined in Sections 2.1 and 2.3.4 at the time the new source is obtained. 2.8.2 SUPPLYING NEW DEVELOPMENT A. The City will make available to new development only that amount of safe yield which exceeds present water use (Section 2.3.4). Available allocations will be assigned to development in a way that supports balanced growth, consistent with the General Plan. Allocations from a new water supply project shall be considered available at the time project construction is initiated. B. Any additional safe annual yield beyond that needed to balance safe annual yield and.present demand will be allocated (A)one-half to the reliability reserve and compensating for reduced yields due to siltation and (B) one-half to development, subject to the requirements in Section 2.8.3, "Reserve for Intensification and Infill". C. Until all toilet and showerhead fixtures in the City are replaced with low flow toilet and showerhead fixtures, the amount by which safe annual yield (Section 2.1.2) exceeds present demand resulting from the assumption that 100% of the retrofit is complete (Section 2.3.4), shall not be made available to development. 2.8.3 RESERVE FOR INTENSIFICATION AND INFILL DEVELOPMENT A sufficient amount of water supply, including the potential water savings from replacing water fixtures in the City (Section 2.9.1), will be held in reserve to serve intensification and infill within existing City limits as of July 1994. 2.8.4 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 reduce demand for potable water supplies as reclaimed water use increases. 2.8.5 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 City of San Luis Obispo 25 Urban Water Management Pi.... 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 any 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. In their deliberations regarding services for new development when considering the General Plan Land Use Element update on June 14, 1994, Council approved a policy which states, "...development in an annexed area may be approved only when adequate City services can be provided for that development, without reducing the level of services or increasing the cost of services for existing development and build-out within the City limits as of July 1994." (Section 1.13.4, Development and Services, General Plan Land Use Element). Policy 2.8.3 supports this Land Use policy by holding in reserve adequate water for infill and intensification within the existing city limits. Table 2.8.1 shows the amount of water required to support build-out within the July 1994 city limits and the amount of water available for annexation areas, available through retrofit savings. 26 City of San Luis Obispo Urban Water Management Plan Table 2.8.1 WATER TO SERVE BUILD-OUT OF CITY (1994 Boundaries) AND AVAILABLE FOR ANNEXATION AREAS WATER NEEDED TO SUPPLY FULL BUILD-OUT,OF CITY, as of1.'July 1994 Population at build-out of City Total water needed (1994 city boundaries) (assuming 145 gallons/ person/day) 47,420 • 7,702 acre feet/year WATER AVAILABLE`FOR ANNEXATION CREATED THROUGH RETROFIT Safe Annual Yield 7,735 acre feet/year Water needed at build-out of city (1994 boundaries) 7,702 acre feet/year Available for Annexation Areas (retrofit savings potentia/) 33 acre feetlyear IL Note: *Population figure based on land use policies adopted by Council in August 1994. The adoption of 145 gallons/per person/per day as a water supply planning figure would indicate water is available for development, eliminating the need for retrofitting. Since the 145 gallons/per person/per day assumes that the retrofit component of the water conservation program is 100% complete (approximately 43% was completed as of July 1994), new development will continue to retrofit until the City is completely retrofitted or construction is initiated for a new water supply project. City of San Luis Obispo 27 Urban Water Management Pta.. 2.9 WATER ALLOCATION AND OFFSETS Pofta 2.9.1 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 twice the allocation required for the project, consistent with the policies in Section 2.8. 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 private well which will not significantly affect the yield of City wells. Such a well may be operated by the owner of the property containing the well only for the owner's use. The City will consider the cumulative effects of wells in the groundwater basin in making this decision. Such wells may be used only when: 1. The City Council approves the well proposal as part of a specific land development project approval, and the proposed well system meets all City standards; 2. A qualified, independent, hydrological investigation demonstrates that the well(s)reliably can provide sufficient quality and quantity of water for the proposed land development project and will not impact the yields from City wells. 2.9.2 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, or 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; and 28 City of San Luis Obispo Urban Water Management PPa„ ■ 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. City of San Luis Obispo 29 Urban Water Management Plm, 2.10 RECLABIED WATER Poli y 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 make available reclaimed water to substitute for existing potable water uses as allowed by law 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 potabld 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 two-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 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. 30 City of San Luis Obispo Urban Water Management Plan BASIS for POGO! 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 31 Urban Water Management Pin.. 2.11 WATER SERVICE WITHIN THE CITY Pond The City will be the only purveyor of water within the City. Basis for Policy Historically, the City has been the sole water purveyor within the City limits. This allowed the City to maintain uniformity of water service and distribution standards, and to be consistent in developing and implementing water policy. In continuing to be the sole water purveyor, the City will maintain control over water quality, distribution and customer service, as well as ensure consistency with the City's General Plan policies and goals. 32 City of San Luis Obispo CHAPTER 3 SUPPLEMENTAL WATER SUPPLY PROJECTS WATER SUPPLY SOURCES Poud 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. Backeround The Salinas Dam was constructed by the War Departmenf(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 30th 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 V 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 33 Urban Water Management P,. 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 II 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 annualyield 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. 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. Project 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 34 City of San Luis Obispo Urban Water Management Ph., with construction. The items are listed in Table 3.1 with estimated time frames necessary to accomplish each task. Table 3.1 SALINAS RESERVOIR EXPANSION PROJECT SCHEDULE TASK TIME':FRAME'' 1. Ownership Transfer: Legislation allowing transfer studies 1 year 2. Ownership Transfer: Studies necessary for transfer 6 months 3. Permitting and Design 1 year 4. Construction 1 year Project Cost Salinas Reservoir Expansion Studies $ 480,000 Design/Ownership Transfer 1,300,000 Construction 8.000.000 Total $9,780,000 City of San Luis Obispo 35 Urban Water Management PI .. 3.2 NACBHENTO 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 was 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 requested an allocation of 3,380 acre-feet from the Nacimiento project, which is less than the original request of 6;265. The reduction in the allocation requested is due to changes in pe"r capita consumption estimates and the handling of annexation areas. 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 contracted with Boyle Engineering to provide engineering services for an evaluation of the Nacimiento project. The.District 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. The Preliminary Evaluation, approved by the Board of Supervisors on June 7, 1994, listed purveyor allocation requests totalling 25,509 acre-feet per year. This was nearly sixty percent greater than the 16,200 acre-feet available. Both County Service Area,No. 22 and the Fiero Lane Water Company requested an allocation of Nacimiento water. The City's request excludes water to serve these areas, even though they are within the City's Urban Reserve Line and designated for eventual annexation. At such time as these areas are annexed to the City, their entitlements for Nacimiento water would go to the City. Several alignment and treatment options are considered in the study :prepared by Boyle Engineering.. 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 36 City of San Luis Obispo Urban Water Management P►,... 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. Studies Phase I of the Boyle Engineering 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 II 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 II 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 were completed by December 1993. On January 25, 1994, the County Board of Supervisors met to consider the work done by Boyle Engineering. The Board accepted the Preliminary Evaluation for the Nacimiento Water Supply Project, Phase II, along with its Preliminary Engineering Evaluation and Environmental Assessment. Boyle Engineering was directed to proceed with finalizing the report, incorporating and addressing comments by the purveyors and by individual Board members. Project Cost The County has prepared participation and reservation agreements for the next phase of work. This next phase includes preparation of an EIR and preliminary engineering. This work is expected to be completed near the end of 1995. Participation in the preliminary study and evaluation of the Nacimiento project cost the City $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 $1,200,000. This equates to a cost of approximately $75 per acre-foot of water requested for the feasibility/study stage-alone. The City's share of these costs is $253,500, reduced from the original estimate of $385,000, based on the reduced allocation request. A separate participation agreement has been prepared for this phase of the project. City of San Luis Obispo 97 Urban Water Management Pi,... 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. A final binding 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. 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 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. 38 City of San Luis Obispo Urban Water Management P,..., 3.3 WATER REUSE Introduction Reuse of the highly treated water produced by the City's Water Reclamation Facility is a diought 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. Reclaimed 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 as determined in the Water Reuse Program EIR currently being prepared for maintenance and enhancement of the in-stream habitat of San Luis Obispo Creek. 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 39 Urban Water Management Pli.. 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 sedimentation ponds along Highway 101 and reactivating abandoned Reservoir 1A 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 1 A, 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 nesary facilities to distribute the recycled water throughout their properties. Eces 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". 40 City of San Luis Obispo. Urban Water Management Pim, 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 area 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. Project Schedule The schedule for the water reuse project is as follows: Activit Date •Complete project CEQA review Jan 1995 •Complete project engineering report March 1995 *Complete project design Sept 1995 •Complete project construction Dec 1996 Staffing Evaluation 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 41 Urban Water Management Pi.... 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 been 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 Manaeement 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" (BMP's). The BMP's are listed in Appendix V. 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 increase the reliability of 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. 42 City of San Luis Obispo Urban Water Management Pi.. 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 capital 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 43 Urban Water Management Phu. 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 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. 3.5.4 GROUNDWATER RECHARGE Groundwater recharge using tertiary treated reclaimed water may be a future water supply alternative. The groundwater basin from which the City pumps water is relatively small and recharges quickly following average rainfall periods. Because of the limited storage capacity and rapid recharge, there may be limited opportunities for recharge of the groundwater basin. It may be possible in the future to develop a groundwater recharge system using reclaimed water produced at the Water Reclamation Facility for potable water uses. The State Department of Health Services have very stringent regulations governing such non-potable water recharge projects. An extensive analysis and study evaluating costs, water recharge potential, and potential storage or injection sites will be required before pursuing such a project. 44 City of San Luis Obispo Urban Water Management Pi.... CHAP'T'ER 4 WATER OPERATIONAL PROGRAMS WATER OPERATIONS Policy The City shall sustain city-wide water efficiency programs and 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. The City shall allocate funding to meet the goals and objectives presented in this chapter (also see Chapter 5). The City should strive to replace aging water lines at the annual rate of 2% of the replacement value of the water distribution system. 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 45 Urban Water Management Pim.. 'r 1 llle .i Whale Rock ` ' •'- AT SCADFRO ' = Reservoir —� ` .1 I1•� .M Vp IwJ I.11w�YrO� .•r 1•Iw1 /••.�•,w Mn RI .y ,1."61.0w .r rJcw ,jl • w•lo 1• .�. 1 � - isreRO ........ _ w 9 lq •s ly,r.Y Lh. .- . .•j J.',d`anm•• '.'.. u1• CAMBER 1 • ' MA 1F.... �G. • l/RrT., ••. O Whale Rock Line �'�• ` "'�"' �- SANTA .Army Line - • : ... , •.� ..•- ....� MIIGsllll MORRO BAY% �^ X ..�- y ' -I.Nr •N lln.ueMr" yT• /,.q' �'•.l\ IJ 1 r...r...-- bill W r 1 � ...�•.,Y• s.cnl.c r �RA 1'w.Y•rw r y .. 1 / ••' 1 MAN[:ARI r.. LTWOOD � ••1 'rco•ow. �/"f �J -' - .ARf !// r lot olol • 1Y. 1.. �'�•• •..Iiul�� '.J•� 1 ti.YY,_r �, -`o� ,r.� Treatment 'Y •lol : 1 ....':•.-..,;• .� ._, -� .�i...,.,� Salinas .. Plant -.-- �; �. Reservoir `ALU OBISPO Is •01. • -I.n rw•7 I-- � sc • 9 ` �• 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 46 City of San Luis Obispo Urban Water Management P'r__ 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. The upgraded project will increase the capacity of the plant from 11.5 million gallons per day to 16.0 million gallons per day. This is accomplished through increased filter efficiency and the ability to treat Whale Rock Reservoir water without using the sedimentation process. The expanded capacity is sufficient to meet projected water demand at full buildout under the General Plan. City of San Luis Obispo 47 Urban Water Management Pl� 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. Groundwater Quality and Treatment Regulations Groundwater quality requirements, as with surface water, are governed by the SDWA. Like surface water, groundwater must meet the 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. ■ Regulation 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. 48 City of San Luis Obispo Urban Water Management P..... ■ 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 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 49 Urban Water Management Pi,., 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, storage tanks, and pressure reducing valves. 4.2.1 SYSTEM DESCRIPTION ..a.xd Z.— J . '%A , S. Z. . The water distribution program delivers PoM14� -�. Fx. ..�Z.. potable water from the water treatment ''` .K . _., plant and wells to customers and fire ��° �•'` hydrants via three storage reservoirs, six pump stations, eight water tanks, and approximately 150 miles of water mains. It is unlikely this basic distribution ,� /� �� =m• �� :°" pattern will change, since the water treatment plant will continue to be the principal source of treated water for the City. GRAVITY t— PUMPED j Growth within the City has placed\, \�\ DELIVERY DELIVERY increased demands on the water `. distribution system. Additionally, many ,------- pipes throughout the City are over 100 �`-- years old, and do not provide adequate capacity to meet current fire-flow Figure 4 PRESSURE ZONES requirements. Even without growth or fire protection requirements, aging pipes must be replaced to avoid major service disruptions and leaks due to deterioration. Historically, the City has not sufficiently funded distribution system replacement to a level that ensures replacement prior to the end of its expected service life. 50 City of San Luis Obispo Urban Water Management Pith There are approximately 150 miles of water distribution pipelines throughout the City. The engineering estimate for the life expectancy of these facilities is 50 years. Complete replacement within the term of life expectancy would require that the City replace an average of 2% of the system infrastructure each year. Pressure Zones Figure 4 illustrates the distribution system's pressure zones. The water delivered from the treatment plant is split into two main distribution networks. About 52% flows into 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. Since electrical power for pumping water is a major expense, Treatment Plant •—stenner Canyon a goal is to develop a system which minimizes pumping. Ferrini-� 1.1 The goal of the water supply Highland �Reservoir No.I system is to deliver water at pressures between 40 pounds per Slack St. square inch and 80 pounds per Serra — square inch at the customer's meter without using a pressure reducing valve on the pipe Bishop connecting the water main to the meter. This pressure range will Terrace Hill meet the needs of most irrigation sprinklers and other uses, and r provide adequate pressure for fire sprinkler systems. Pressure zones \ are established in the distribution system to maintain these pressure Saddle ranges. The City currently has 15 pressure zones divided between Capacity Elevation the gravity and pumped delivery Location in m Base Surface systems. 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 Water StoraLye Facilities Slack Street Tank 0.07 535 555.0 Highland Tank 0.03 547 544.0 Serrrano Tank 0.10 542 564.5 Bishop Tank 0.10 533 556.0 Water storage facilities are Terrace Hill Tank 0.75 386 415.0 necessary to provide water during Edna Saddle Tank 4.00 320 345.0 FeniniTank 0.16 569 584.0 peak demand periods and _ TOTAL 24.21 emergency situations such as fires. The City has ten water storage Figure 5 STORAGE FACILITIES City of San Luis Obispo 51 Urban Water Management Pi.,, 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 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 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. - 91.MD TaM ES[STIMG . J I R.Mnar tl _l..V � Lrran NII we4r T.wlnynl olonl De.nte.n Edm Soca• Figure 6 WATER TRANSMISSION SCHEMATIC 52 City of San Luis Obispo Urban Water Management Pim.. Fre 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 areas 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. 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. City of San Luis Obispo 53 Urban Water Management Phu. ■ 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, polybutylene, lead, and galvanized pipe. Three of the materials, polybutylene, galvanized iron and lead, have been determined to be inferior due to their high failure rate and potential health risk. These types of 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. 54 City of San Luis Obispo Urban Water Management P.__ 4.2.3 WATER DISTRIBUTION INFRASTRUCTURE EVALUATION In 1992, the City obtained a water system computer modeling program entitled Cybernet. Cybernet 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: ■ Alrita Pump Station Problem - The current system consists of a hydro-pneumatic pump that serves 11 customers. Other customers, immediately outside of the Alrita 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. City of San Luis Obispo 55 Urban Water Management Plo ■ 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 newly 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. 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 56 City of San Luis Obispo Urban Water Management Pi_. 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 57 Urban Water Management Pi. 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 58 City of San Luis Obispo Urban Water Management Pi. that area, an additional increase of 2% to 5% could be anticipated. Given this assumption in 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 was 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 59 Urban Water Management Pty... 4.4 TELEMETRY Introduction Telemetry literally means "measuring at a distance". Telemetry equipment includes:the coinplete 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 DP-C 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 DPC'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 7 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 major catastrophic emergencies such as-an earthquake or a major fire likel Las Pilitas. 60 City of San Luis Obispo Urban Water Management Pio.. F-1Wa kronur et Water Tr®tlnent plant WIDC I CHEM 7 TF1F 1 Wblwoik M)nitr In WaelaRock raeW%A*otaw ❑ wrfFt2 ®6T O W6 ❑ Ot 1 WDmrlhmonFE6 �n shop ARA 93AOP 1;*f F;W HNP 67� MOLP BSEP AaJF i 2 1 t 2 9 4 6 a 7 FFNT HNT SKT BWT I 1 1 2 Figure 7 WATER TELEMETRY SYSTEM 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 Mitchell Park Well BPMP 8 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 Fenini rank BSPT Bishop Tank APWW Autopark Way Well EDST Edna Saddle Tank FRNP Ferrini Pump BSPP Bishop Pump DENW Denny's Well TRHT Transfer Pump BRSP Bressi Pump ALRP Akita Pump 4.4.2 SYSTEM 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 61 Urban Water Management Phu, 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. 62 City of Sanliiis Obispo, Urban Water Management Pian 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 meet the City's long term water needs. The importance of the implemented water efficiency programs has become even more apparent as some of these planned water supply projects have 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 City of San Luis Obispo 63 Urban Water Management P,,.., Water Shortage Contingency Plan was submitted to the State Department of Water Resources in 1992. State law (AB11) 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 V. 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. City water conservation staff completed a thorough analysis of the water savings potential from water conservation technologies and programs in July 1994. That study is included in Appendix V, as part of the description of City water conservation programs and services. Three major components are included in the City's water efficiency strategies. These components include 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 64 City of San Luis Obispo Urban Water Management Pia„ 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. Table 4.5.3 WATER SAVINGS THROUGH HARDWARE RETROFIT .. .. ...... ................... ... ........ ...... ... . . ............. T 'Iout R Toilet Retrofit (Offset) Program 4,500 (estimated) Retrofit Rebate Program 3,761 (actual) Total 8,261 Number of toilets in the City (est) 32,000 Percent of City retrofitted 26% :..Toilet Rebate Program ........ ;Esti d ...... ...... :E mated Water Savings an ............ Estimated Cost perAcre Foot Number of toilets Retrofitted 3,761 Estimated Water Savings (range) 115 to 145 acre-feet per year Total Program Cost (through 1993) $324,390 One time cost per acre-foot $2,240 to $2,820 • Amortized cost per acre-foot (20 years) $224 to $282 • No ongoing operation or maintenance costs Estimated Water Savings - 100% Retrofit 900 to 950 acre-feet per year • Water Auditing. Water auditing services, both indoor and irrigation, 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 City of San Luis Obispo 65 Urban Water Management PI .. conservation topics including leak detection, irrigation scheduling, landscaping, and 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. 66 City of San Luis Obispo CHAPTER 5 WATER FUND FINANCIAL PLAN Mud The City's will fully recover all water costs, operations, maintenance, capital, debt service, and appropriate overhead, 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 purposes. The water fund will reimburse the general fund for all indirect costs pursuant to the approved cost allocation plan. Water impact fees were established in 1991 to pay for needed facilities and improvements reasonably related to new development within the City. Based on the policies contained in Section 2.6.3, impact fees will be set at a rate sufficient to ensure cost recovery for that portion of new supplies attributable to the new development. These fees are adjusted annually to account for changes in the cost of construction or other considerations which affect the reasonable relationship between the fees and the cost of facilities and improvements on which the fees are based. Introduction 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 67 Urban Water Management Pt.... 5.1 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. 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 68 City of San Luis Obispo Urban Water Management Pia.. ■ 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 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 flat 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 City of San Luis Obispo 69 Urban Water Management Ply.. ■ Debt service obligations (existing and projected) Revenue requirements are generally projected for four years into the future. 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. 70 City of San Luis Obispo Urban Water Management F.- 5.2 EWPACT FEES The City adopted impact fees (also called "connection fees") in 1991, following a high degree of community discussion. The adopted fees were calculated under the requirements of AB 1600, which states that a "reasonable relationship" must exist between the need and the cosf for a public facility and the development on which the fee is imposed. The goal of the adopted fees was to assure that new development paid its fair share of the cost of constructing necessary community facilities. This goal was the 1990 recommendation of the Citizens' Advisory Committee (CAC) established to review and evaluate the City's long term financial health. Based on prior Council direction and adoption of the policies contained in Sections 2.3 and 2.6, staff has evaluated the necessary impact fees to recover the cost of new supplies associated with new development. The detailed evaluation is included as Appendix VII. City of San Luis Obispo 71 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 A. The amount of groundwater which the City will rely upon 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. The City shall monitor water levels at the well sites. B. The City will not compete with local agricultural use of groundwater outside the urban reserve line or damage wildlife habitat through reduced natural stream flows in obtaining long-term sources of water supply. 2.2 WATER CONSERVATION POLICY 2.2.1* Long-term water efficiency measures will maintain long-term, per-capita usage at or below the per capita use rate as identified in Section 2.3.2. 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 145 gallons per person per day (0.162 acre-feet) to plan for future water supplies. 2.3.3* Projected water demand at General Plan buildout is about 9,096 acre-feet. 2.3.4* Present water demand is calculated by multiplying the water use identified in Section 2.3.2 by the current city population. City of San Luis Obispo I_t APPENDIX I 2.4 RELIABILITY RESERVE The City will strive for a reliability reserve of 2,000 acre-feet. 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 2.6.1* The City shall develop additional water supplies to meet projected demand at build- out of the General Plan, to establish the reliability reserve, and to offset water yields lost due to siltation. The amount of water to be developed shall be based on the adopted per capita water use figure in Section 2.3.2. 2.6.2* In deciding on appropriate sources of supplemental water, the City will evaluate the impacts on other users of the water and the environment. 2.6.3* The cost for developing new water supplies necessary for new development will be paid by impact fees. 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 deficit between safe annual yield (Section 2.1) and present demand as defined in Sections 2.1 and 2.3.4 at the time the new source is obtained. 2.8.2* A. The City will make available to new development only that amount of safe yield which exceeds present water use (Section 2.3.4). Allocations from a new water supply project shall be considered available at the time project construction is initiated. B. Any additional safe annual yield beyond any deficit elimination will be allocated (A) one-half to the reliability reserve and compensating for reduced yields due to siltation and (B) one-half to development (see section 2.8.3). C. Until 100% retrofit of the City, the amount by which safe annual yield (Section 2.1.2) exceeds present demand shall not be made available to development. 1-2 City of San Luis Obispo APPENDIX I 2.8.3* A sufficient amount of water supply, including water savings from retrofitting, will be held in reserve to serve intensification and infill within existing City limits as of July 1994. 2.8.4* Reclaimed water shall be accounted for as a non-potable supply and shall not-be considered as a component of City's potable water safe annual yield. 2.8.5* 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 & OFFSETS 2.9.1* A. 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 twice the allocation required for the project. B. Exemptions to needing a water allocation or an offset, or reducing the amount of the required allocation of offset for a project will be granted to the extent that a project is supplied by a suitable private well which will not significantly affect the yield of City wells. 2.9.2* 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 make available reclaimed water as allowed by law to supply new non- potable 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 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 two-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. City of San Luis Obispo I-3 APPENDIX I 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 WATER SERVICE WITHIN THE CITY The City will be the only purveyor of water within the City. OTHER URBAN WATER MANAGEMENT PLAN POLICIES Chapter 3* Supplemental Water Supply Projects The City shall pursue the expansion of Salinas reservoir, the Nacimiento Reservoir Diversion Project, water reuse, and water demand management activities as supplemental water supply sources. Chapter 4* Water Operational Programs The City shall sustain city-wide water efficiency programs and strive to provide an adequate supply of high quality water which meets all government standards, flows at sufficient pressures, and provides fire protection. The City shall allocate funding to meet those goals and objectives. The City should strive to replace aging water lines at the annual rate of 2% of the replacement value of the water distribution system. Chapter 5, Financial Plan The City's policy is to fully recover all water costs, operations, maintenance, capital, debt service, and appropriate overhead, 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. Water impact fees were established in 1991 to pay for needed facilities and improvements reasonably related to new development within the City. I-4 City of San Luis Obispo APPENDIX II > � a 3 ems _m cco m M ° y m O r w r m m O r+ L O «m+ m ? N m CL •� > m cm c m >.� N m G"0 'O m L m y 0. 0. 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O m U O = O) > Cl Y m m y c — m C m 3 — > L > �• m ,.� a' � Q � o 3H > o � dooEm Q W � z z° N o �i � `'' W :. V N C C C y C m o E LE 0 > E` -' O O cm x m CL O m M C UJ (/) c c a>i c _ LAI a m m m'. 4m c0 M m p m '- N City of San Luis Obispo II-1 APPENDIX II N 0 M > c m ° E c E a •� w B U C M o U 0 Na m U O O ma m E > c Eos «L CL M Q— U > m m O > 0 0 too y � � imeco �+ U mCL ` « y 0 0 V L C m M — lC 0 0 ° m ._ E � oo°', m m SCD O mW = Q T m d C y C CL CD 3 � � E CL 0 (D m a 3 C a7 U 0 .Oo 0 0 U 0 0 Cl) W Q� L W c > « 'O _ C N NL N � e0 O N V H � 0L 0 0 w O 0 0 ` C j 3 w 01 Q y 0 O Q .a..: 'O U :C H CO •7 L W 'O i• O w CD m M cc '�. � C N L ° 0 C y D .0 L) o W ca (a( D z E -0c g o moma_ m o W v mm o m> E to 0 U m L N C N C N C W y N 0 �+ C N ` E .0 -0 M N N 1H•1 1--i Q� .. C ? U w N l9 t0 N ? m U to O L > N T cL ?o g C N m «+ C O N' eu m E c ai eco o .. Cep• cc°� c a « ca .0 CL 3 m — c eo eo eo o >— a�.� C jp N C ;E 7 _ '0 r 0 Q D Ea m o n c CD « •o = « y m Z3 ACL c .y cn — o � E �, •- � vo, a O. r 0 VN L J 0 L 0 .� > «� .0 C N �• 0 y ° N m C t A N y N 0.,> C G. CL N 'O M r d C C !_' e0 w Q N 3 e1 E p U '� G j C L C r-� U 0 0 e`e7 :E C 2 0 0 0 0 C 0 m U t0 0 y 9 N . a rLCD nX � CO � � 0 a z z rW N O V N C C C p L •r O O N 0, r C y N CL 0 0 Z N 3 m m a ° Ho veto ° v N2 �j C7 a X Q m = n° Q Lu O cn eD O to a N cn co II-2 City of San Luis Obispo APPENDIX III WATER SUPPLY PROJECTS NO LONGER BEING PURSUED The following projects have been considered in the past as supplemental water supply projects for the City of San Luis Obispo. Feasibility studies and/or reports have been prepared for these projects and are available in the Utilities Department library at 955 Morro Street. These projects are not being pursued due to economic, environmental or other identified problems. 1. Coastal Streams Diversion Project 2. State Water Project 3. Hansen and Gularte Creeks Project 4. San Bernardo Creek Project City of San Luis Obispo �_t APPENDIX IV Water Distribution / Customer Service Workload Analysis Current Workload Customer Service Section: Current Staffing: 3 Full-Time Personnel 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 * 0.4 FTE 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 N-1 APPENDIX ry Current Workload Water Distribution Section Current Staffing: 5 Full-time Personnel 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. W-Z City of San Luis Obispo 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 APPENDIX V WATER CONSERVATION PROGRAMS AND SERVICES A. Best Management Practices B. Current Programs and Services C. Evaluation of Programs and Technologies City of San Luis Obispo V-1 APPENDIX V 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 fixtures 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. BMP No. 14. A regular position was approved in August 1988. Water Conservation Coordinator V-2 City of San Luis Obispo APPENDIX V BMPs SCHEDULED FOR YEAR TWO IMPLEMENTATION W No. 2. Plumbing Retrofit-Delivery of low flow showerheads and toilet displacement devices .,umbing, 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 1P 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 V-3 APPENDIX V BMPs SCHEDULED FOR YEAR THREE IMPLEMENTATION BMP No. 1. 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, MF 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 V-4 City of San Luis Obispo APPENDIX V CURRENT 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. 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. City of San Luis Obispo V-5 APPENDIX V 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. V-6 City of San Luis Obispo APPENDIX V WATER CONSERVATION TECHNOLOGIES Evaluation of Reliability, Water Savings, Cost In evaluating the water savings potential from water conservation technologies and programs, the reliability of the potential savings must be considered. Many components of a comprehensive water conservation program have not been adequately studied to determine reliable water savings. Staff has attempted to objectively evaluate the potential for each technology or program and then determine the reliability of the estimated savings. Staff has developed a rating system to measure the reliability of each component. The rating system is based on the following criteria: 1. Availability of quantitative data 2. Ongoing dependability of the water efficiency measure 3. Public acceptance of the water efficiency measure The reliability factor will be on a scale of one to five and will reflect the criteria previously outlined. A factor of five means that the savings can be definitely counted on as permanent ongoing water savings. WATER CONSERVATION TECHNOLOGIES Water conservation technologies have advanced significantly over the last several years. Most of the developments have been a response to the recent drought. This analysis is limited to technologies which are associated with the largest indoor water use, graywater systems, landscape and public information programs which can potentially yield reliable water savings: Reliability Factor Section 1. ULTRA-LOW FLUSH TOILETS 4.5 Section 2. LOW-FLOW SHOWERHEADS 3.5 Section 3. GRAYWATER SYSTEMS 2.0 Section 4. HOT WATER RECIRCULATING SYSTEMS 1.0 Section S. LANDSCAPING 2.0 Section 6. INFORMATION & EDUCATION 2.0 Section 1. ULTRA-LOW FLUSH TOILETS (ULF) Reliability Factor: 4.5 As of January 1993, all toilets sold in the State of California must meet the ULF standard of 1.6 gallons per flush or less. A study was completed in June 1992, funded by the Metropolitan Water District of Southern California, to evaluate toilet replacement programs and establish reliable water savings projections. This study has been endorsed by the California Urban Water Conservation Council (which the City is a member of) and is now recognized as a state-wide standard for toilet replacement programs. The reliability rating of 4.5 is based on the quantitative data available from the Metropolitan Water District's ULF toilet replacement study completed in June 1992, the 20 to 30 year operational life of a toilet and the public's approval of the technology derived from a City survey conducted in 1991. City of San Luis Obispo V-7 APPENDIX V ULTRA-LOW FLUSH TOILET Estimated Water Savings Single Family 1/ 350 afy Assumes 41.9 gallons/day/household multiplied by 7,500 households. Multi-Family 1/ 325 afy Assumes 53 gallons/day/dwelling multiplied by 5,500 dwellings. All Others 2/ 260 afy Assumes 27 gallons/per toilet/per day multiplied by 8,750 toilets. TOTAL 935 acre feet per year ("afy") Notes: 1/ Single family and multi-family gallons/day/household derived from information contained in the Metropolitan Water District toilet replacement study. 2/ Based on average water use factors for retrofitted ULF toilets. Table 1 Based on the figures provided in the study, it is estimated that water savings at 100% toilet retrofit in the City is 935 acre feet (af) per year and is summarized in Table 1. In performing the cost evaluation, staff examined the total amount of capital required to fund the current Retrofit Rebate Program to 100% completion of retrofitting and the cost of a program where the City pays the full cost of the toilet retrofit. Table 2 summarizes the results of the analysis which includes the cost per acre foot to the City. ULTRA-LOW FLUSH TOILET Cost Evaluation Assumptions: rinstallation costs do not include floor covering changes or sub floor rehabilitation.) 1. Cost per toilet $85 to $300 2. Cost for installation $50 to $100 Alternative A Voluntary Retrofit Rebate Program (Asswnes 26% change-out of existing toilets as of 4194 and$100 rebate) Total $2.37 million Cost per acre foot $255 over a ten year period Alternative B Mandatory Retrofit Program (Assumes City pays all costs; cost to replace standard toilet and labor is estimated at$165/toilet. Costs for flooring changes and additional charges for custom toilets not included.) Total $3.9 million Cost per acre foot $420 over a ten year period Table 2 V-8 City of San Luis Obispo APPENDIX V Section 2. LOW-FLOW SHOWERHEADS Reliability Factor: 3.5 The current State standard for a low-flow showerheads is a flow rate of 2.5 gallons per minute. In order to calculate long range water savings from showerhead replacement, the projected savings are based on water use and population figures from 1993. The CARE Program, (joint effort with PG&E) initiated in LOW-FLOW SHOWERHEADS 1987 and implemented in 1988, replaced an estimated 27% Estimated Water Savings of the showerheads in the City during that year. Since 1988, 1993 Population 43,415 low-flow showerheads have been a requirement in new construction and thousands were replaced during mandatory Average savings 6.2 gallons/ water conservation. It is estimated that 70% to 80% of the person/day showerheads are currently low-flow. TOTAL It is estimated that 300 acre feet per year of water savings Estimated savings 300 of/year will be achieved at 100% retrofit of showerheads. Table 3 (basad on Rocky Mountain Institute data) summarizes the total estimated water savings and assumptions Table 3 used to calculate the estimated water savings. Section 3. GRAYWATER Reliability Factor: 2.0 Graywater is defined as untreated household waste water which includes water from bathtubs, showers, bathroom wash basins, and water from clothes washing machines and laundry tubs. It does not include water that has come into contact with toilet waste, kitchen sinks, dishwashers or laundry water from soiled diapers. Up until 1989, the use of graywater was not regulated in the State of California and was viewed as an illegal use of household wastewater by local health agencies. During 1989/1990, several counties and cities, including San Luis Obispo, legalized the use of graywater as a drought emergency measure. In July 1992 legislation was passed which directed the Department of Water Resources (DWR) to develop graywater use regulations. DWR working with the Department of Health Services and other concerned organizations and individuals, spent 18 months developing standards which protect public health while establishing a uniform set of Statewide standards. On March 8, 1994 the California Building Standards Commission approved the Graywater Standards as part of the California Plumbing Code. These standards were published on May 8, 1994 and will take effect in every California city and county in six months. The new regulations restrict the application of graywater to single family dwellings and is allowed only under certain conditions and circumstances. The primary limitations are 1) the water application setback requirements from adjoining properties, 2) application can only be sub-surface, 3) soil conditions must allow for adequate infiltration without puddling or runoff, and 4) at a sufficient distance above the groundwater level to avoid potential water contamination. The reliability factor of 2.0 is based on the wide range of water savings estimates from the various sources of graywater, the ability of user to discontinue the use of the systems, the limitations placed on graywater use by State law and the degree of commitment from the user to maintain the systems. City of San Luis Obispo VA APPENDIX V GRAYWATER Estimated Water Savings EXISTING SINGLE FAMILY 1/ Assumes a total of 7,500 single family dwellings. Slab foundations are assumed on 75% of the dwellings and raised foundations on 25% of the dwellings. (75% of 7,500 = 5,625; 25% of 7,500 = 1,875) Raised Foundation 220.5 afy 2/ Assumes 105 gallons/day/household multiplied by 1,875 dwellings. Slab Foundation 283.5 afy 3/ Assumes 45 gallons/day/household multiplied by 5,625 dwellings. TOTAL 504 acre feet per year ("afy") Less Seasonal Demand (4 Months) 336 acre feet per year 4/ Notes: 1/ Multi-Family excluded. Currently, State law does not allow the use of graywater at multi-family complexes. Legislation has been introduced in the State legislature to legalize the use of graywater in multi-family and certain commercial situations. 2/ Assumes 35 gal/person/day and an average of 3 persons per household for all graywater sources (this is an average of the State's published guidelines and a study performed by LADWP completed in June 1993. 3/ Based on the recently adopted State guidelines for graywater use for laundry wash water (15 gallons per person per day). 4/ These savings assume that all the graywater is needed for irrigation; that this amount of potable water would have been used and that all potential locations are able to use graywater. Table 4 The results of the analysis indicate that graywater systems can yield 336 of/year of water savings. Table 4 summarizes the assumptions and results of the analysis. Cost Evaluation The cost of a graywater system varies greatly with its complexity and capabilities. Approximate price ranges, corresponding capabilities of systems and installation cost, as suggested by manufacturers and installers are listed below: Systems costing between $400 to $800 This range applies to systems that tap the discharge from the washing machine only, connected to a low- tech system. The lower end of the price range applies to the do-it-yourself installation, and the upper end to professional installation. V-10 City of San Luis Obispo APPENDIX V Systems costing between $1,000 to $1,500 In this price range, all graywater sources are usually connected to the system which generally requires installation by a professional contractor. The graywater collection and distribution system is still relatively simple and low-tech, and the total cost depends on the number of graywater sources connected. Systems costing between $2,000 to $3,700 Graywater systems in this price range are fully automatic, high-tech systems, connected to nearly all sources of graywater in the home and possibly backed up by potable water systems for periods when graywater may not be available. Based on this information, Table 5 summarizes the. results of the graywater system cost analysis. GRAYWATER Cost Evaluation Summary 1/ Alternative A Washing Machine Water Only Systems Based on 15 gallons per person per day, during irrigation demand months. Total System Cost $ 400 to $2,000 Cost per acre foot $1,200 to $5,950 Alternative B All Source Systems Based on 105 gallons per household, during irrigation months. Total System Cost $1,000 to $3,700 Cost per acre foot $1,275 to $4,720 Note: l/ These costs do not include the cost of the specialized irrigation equipment required to apply graywater to the landscape. Table 5 "Low Tech" systems require regular maintenance, such as filter cleaning, by the resident to minimize graywater system failure. On the other hand, fully automated systems require little or no maintenance on the part of the user. It is a concern with low tech systems that if routine maintenance is not performed, the system will experience problems which will ultimately lead to a failure and the system being turned off. Low tech systems require a commitment from the user in order to retain reliability and thus achieve long term water savings. In order to determine a reliable water savings from graywater systems, it is recommended that only fully automated systems be. part of any City sponsored graywater program. Though automated systems require a greater initial expense, long term water savings can be reasonably predicted with greater reliability. Table 6 summarizes the cost of a rebate program and the ;ost of a program where the City pays full cost of the "High Tech" graywater systems. City of San Luis Obispo V-11 APPENDDC V GRAYWATER - "High Tech" Systems Cost Evaluation Assumptions. 1. Cost for laundry only systems $2,000 1/ 2. Cost for all source systems $2,000 to$3,700 1/ 3. See Note 1. Alternative A Rebate Program Cost per acre foot reflects City's willingness to pay $1,500 per acre foot. Therefore, the City would pay a rebate of$500 for laundry only systems and $1,175 for all source systems. 2/ Laundry Only Systems Total $2,812,500 All Source Systems Total $2,203.125 TOTAL $5,015,625 Cost per acre foot $ 1,500 Alternative B Full system cost paid by City Laundry Only Systems Total $11,250,000 All Source Systems Total $3.750.000 to $ 6.937.500 TOTAL $15,000,000 to $18,187,500 Cost per acre foot $4,460 to $5,410 Note: 1/ Laundry only systems are assumed to be possible in all single family dwellings on slab foundations. Slab foundations are assumed to be on 75`Yo of single family dwellings(75% X 7,500 = 5,625). All source systems are assumed to be possible in single family dwellings on raised foundations(25% X 7,500 = 1,875). 2/ Customer Cost (after rebate) • Laundry only systems $1,500 Payback period 32 years • All source systems $825 to $2,525 Payback period 12-34 years Table 6 V-12 City of San Luis Obispo APPENDIX V Section 4. Hot Water Recirculating Systems Reliability Factor: 1.0 Hot water recirculating systems work on the principal of providing hot water on demand at all locations in a house. By drawing hot water from the hot water heater and recirculating the cold water from the hot water line back to the heater, a significant amount of water may be saved. Staff has researched the availability of retrofit hot water recirculating systems and found only one company which manufactures such a product. There are several variables which effect the amount of water savings which can be derived from these systems. The variables include: ■ Size of household ■ Plumbing layout ■ Square footage of dwelling ■ Customer habits Of these variables, plumbing layout is the most significant. After consulting with plumbing professionals, it is estimated that less than 50% of the existing homes would benefit from the installation of this type of system. Most older homes are not plumbed with complete looping of hot and cold water lines which means more than one of these systems would be required to recirculate all the hot and cold water within the dwelling. Table 7 summarizes the results of the potential water savings analysis. HOT WATER RECIRCULATING SYSTEMS Estimated Water Savings Based on manufacturer information and discussions with plumbing contractors and product users, the following water savings may be achieved: Existing 43 to 105 afy Assumes 10 to 25 Single Family gallons/day/household; 50% of existing dwellings. New Construction 44 to 117 afy Assumes 3 to 8 gallons/day/household,- -and additional population- 13,100—at buildout. TOTAL 87 to 222 acre feet per year ("afy") Table 7 These systems are not fully automated and rely on the user to activate the recirculating pump. Because of the number of variables, it is difficult to derive a reliable water savings amount from this type of system. Table 8 summarizes the cost analysis for both a rebate program and a program where the City pays for the system and installation. City of San Luis Obispo V-13 APPENDIX V HOT WATER RECIRCULATING SYSTEMS Cost.Evaluation Assumption: The cost of a retrofit hot water circulating system is approximately $300. Installation cost is estimated at approximately$150 to$250 depending on the location of the unit. The calculations use $200 for labor. Estimates are based on 50% of existing homes. Alternative A Rebate Program - Existing Single Family Estimated program cost (City paid rebate of$425). TOTAL $425 X 3,750 dwellings $1,593,750 Cost per Acre Foot $1,500 based on 105 afy savings Alternative B Full Cost paid by City TOTAL $500 X 3,750 dwellings $1,975,000 Cost per Acre Foot $1,78.5 based on 105 afy savings Table 8 - -- - - - - Section 5. LANDSCAPE PROGRAMS Reliability Factor: 2.0 Predicting water savings from landscape efficiency programs is difficult and can vary from 30% to 70% when conventional landscapes are replaced with water.efficient plants (RMI Water Efficient Landscaping 1994). Another, often less expensive component of a landscape efficiency program is improved.irrigation management.and upgrades of irrigation hardware. Water savings from landscapeirrigation improvements is estimated to be up to 30% (Cal Poly Pomona for Chino Basin). To date, landscaping programs do not provide readily predictable or measurable water savings due to lack of data on projects that have been carried out and the difficulties in distinguishing landscape water savings from those caused by indoor water efficiency projects and behavioral changes in reaction to drought situations (RMI 1994). The reliability factor of 2.0 is based lack of quantitative data regarding water savings, the fact that landscape plant materials can be changed to higher water using plants depending on customer preference, and that the efficiency of irrigation systems can vary depending on the customer's irrigation knowledge and management practices. Water efficient landscape programs, though difficult to predict water savings, should be a component of an aggressive ongoing water conservation program. Single Family Landscape Water Use In order to attempt to establish a baseline for landscape water use in single family residences, staff utilized an analysis performed by the Finance Department prior to the implementation of mandatory water conservation in April 1989. This analysis indicated that during the summer months (April through October) an average of 29 units of water (748 gallons per unit) were,,consamed per household. Estimating that 40% of this water was used for landscape irrigation equates to 800 acre feet per year for landscape use. Using an estimated water savings of 30% from irrigation efficiency measures would V-14_ City of Sao Luis Obispo. . APPENDIX V equate to a potential savings of 240 acre feet per year from a single family irrigation efficiency program for the irrigation period. Using similar methodology for winter irrigation, an additional 27 of/year of water savings can be achieved for a total of 267 of/year. This assumes that all landscapes and irrigation systems are currently inefficient and can be improved to meet the projected water savings goal. Table 9 summarizes the results of the single family landscape water use analysis. Commercial and Institutional Landscape Water Use LANDSCAPE-Single Family Estimated Water Savings Additional water savings can be achieved in the commercial and institutional sectors but are more Summer Irrigation Use 800 afy difficult to identify. For instance, City parks Winter Irrigation Use 62 afy consume large quantities of water because of the TOS 862 afy large amount of turf acreage. Water Conservation and Parks Division staff have 30% reduction due to audited all of the major turf areas and found that irrigation efficiency the irrigation schedules used by the City were Summer 240 afy more efficient than the schedules recommended Winter 27 afy by irrigation professionals. This coupled with Total 267 afy the capital improvements currently under way, an additional 30% reduction from efficiency TOTAL savings measures may not be possible. Further research due to irrigation efficiency 267 afy and analysis will be required to establish a Table 9 potential water savings for this sector. Cost Evaluation Summary Staff has not been able to establish a cost associated with water efficient landscape programs because of lack of a quantitative data and conclusive studies. Additionally, staff has researched the available literature and was unable to find examples of landscape programs which would be applicable to San Luis Obispo. It is recommended that a strong educational program be established and that additional research be conducted to evaluate the feasibility of a monetary incentive program using a combination of graywater systems and alternative irrigation technologies. For analysis purposes, the cost of a water efficient landscape program will accounted for in the public education and water audits components of the various comprehensive water conservation program alternatives. Section 6. INFORMATIONAL & EDUCATIONAL PROGRAMS Reliability Factor: 2.0 During mandatory water conservation, the informational and educational component of the water conservation program provided an essential service to our citizens by offering educational materials and assistance on how to save water. Though water planning professionals agree these types of programs are necessary to promote water efficiency, quantitative data is not available to predict reliable water savings. Because reliable.water savings cannot be determined, cost of such support programs should be factored into the total cost of an over-all water conservation program. City of San Luis Obispo V-15 - APPENDIX V During mandatory water conservation, the City had a very comprehensive public relations program which included the following: Public Workshops In-school programs Media advertising & promotion Water efficient landscape awareness/plant tagging program Demonstration garden development (City parks) Public event participation Consumer product information Indoorlirrigation water audits Free printed information Of these components, only water audits and printed information are currently offered upon request due to budget and staff reductions. Cost Evaluation Summary Staff has not been able to determine a water savings value to perform a cost per acre foot analysis. As with water efficient landscape programs, the cost of educational and information programs will be accounted for in the various comprehensive water conservation program alternatives. V-16 City of San Luis Obispo APPENDIX V EXHIBIT A City of San Luis Obispo WATER CONSERVATION TECHNOLOGIES EVALUATION SUMMARY Fstimatedg Program Coat per Reliability Water Savin a cost Aere Foot Factor 1. Ultra-Low Flush Toilets (ULF 935 afy 4.5 Alternative A $2.37 million $255/af Alternative B $3.9 million $420/af 2. Low Flow Showerheads 300 afy included in included in 3.5 ULFT program ULFT program 3. Graywater Systems 336 afy 2.0 Alternative A $5 million $1,500/af Alternative B $15 to$18 million $4,460- $5,41 0/af 4,460- $5,410/af 4. Hot Water Recirculating 40 to 105 afy 1.0 Systems Alternative A $1.6 million $1,500/af Alternative B $1.9 million $1,785/af S. Landscape Programs 267 afy unknown unknown 2.0 6. Information & Educational unknown unknown unknown 2.0 Programs TOTAL ESTIMATED D WATER SAVINGS 1,943 AFY City of San Luis Obispo V-17 APPENDIX V EXHIBIT B-1 City of San Luis Obispo WATER CONSERVATION PROGRAM ALTERNATIVES The four alternatives shown below project program costs and estimate potential water savings. In addition, a reliability factor has been established based on staff's evaluation of the various programs and technologies. The over-all program costs assume that the City continues to use monetary incentives as a means to promote water-efficent technologies,allocate funds for education and informational programs and provide support for the level of staffing recommended in the alternatives. It is important to recognize the assumptions used to determine the estimates are based on past experiences during mandatory water rationing. The identified financial commitment is the potential long term costs during the planning period (20 years). The water savings estimates are based on reduced demand from the previous high water use period from 1986 through 1987. Exhibit B-1 is a summary of the detailed program information provided in Exhibit B-2. 165 Gallons/ 155 Gallons/ 145 Gallons/ 1311 Gallons/ Person/Day Pereon/Day Pamon/Day Pemon/Day Total Staffing, Program $305,060 $597,400 $1,172,400 $2,725,200 and Other Costs Estimated Water Savings 1,070 1,695 2,325 3,26$ (in acre feet) Cost per Acre Foot $265 $352 $504 $635 (acre feet per year) Composite Reliability Factor 5.0 4.5 2.5 2.5 V-18 City of San Luis Obispo APPENDIX V EXHIBIT B-2 City of San Luis Obispo WATER CONSERVATION PROGRAM ALTERNATIVES 165 Gallons/ 155 Gallons/ 145 Gallons/ 130 Gallons/ Person/ Penson/Day Person/Day Person/Day STAFFING 2 3 4 5 Water Conservation Coordinator X x x X Water Conservation Specialist X x x X Water Conservation Specialist ............... X X ............ .............. Water Conservation Specialist M. X X X X Office Assistant Total Annual Staffing Costs(see Exhibit B-3) $102,180 $135,000 $180,000 $219,800 PROGRAMS Retrofit rebate $137,500 $237,000 $237,000 $390,000 Wader Offset current level Retrofit Upon Sale $400 $400 $400 $400 Public Education/Information Media promotion&advertising $25,000 $35,000 $45,000 $60,000 Brochures and publications $10'000 $10,000 $15,000 $15,000 Workshops/public events $5= $10,000 Water Audits Code enforcement/irrigation audits Other Water Efficiency Programs Hot water recirculating systemsry { 60000 90000 $1 $1 Graywader systems $150,000 $500,000 $1,800,000 Total Identified Programs Costs(see Note 1) $172,900 $432,400 $962,400 $2,465,400 OTHER: Office Supplies,Training Total Other $30,000 $30,000 $30,000 $40,000 TOTAL STAFFING,PROGRAM&OTHER COSTS $305,080 $597,400 $1,172,400 $2,725,200 Notes: 1/ WATER CONSERVATION TECHNOLOGIES 1-A,2,5,6 1-A,2,5,6& 1-A,2,3-A,4-A,5,6 I-B,2,3-B.4B,5,6 included in costs(see detail in Exhibit A) Pilot for 3 2/ ***Indicates costs are included in other line items. 3/ Shading indicates particular component not included in this afternative. City of San Luis Obispo V-19 APPENDIX V EXIHBIT B-3 City of San Luis Obispo WATER CONSERVATION PROGRAM ALTERNATIVES - Staffing Analysis 165 Gallons/ 155 Gallons/ 145 Gallons/ 130 Gallons/ Person/Day Person/Day I Person/Day Person/Day TASK DESCRIPTION Hours per week 1. Interior/e)derior/low 10 20 25 35 income water audits. 2. Customer Incentive Program 10 10 25 25 3. Retrofit Upon Sale Program 15 15 20 20 4. Water Offset Program 5 10 10 10 5. Public Information and 10 10 10 25 education. 6. Program Development, 15 25 25 35 Education&Administration. 7. General Customer Service 10 15 25 25 8. Water Waste Code 5 15 20 25 Enforcement/irrigation Audits. TOTAL HOURS PER WEEK 80 120 160 200 FULL-TIME EQUIVALENTS 2 3 4 5 V-20 City of San Luis Obispo APPENDIX VI WATER FUND RATE REVIEW September 7, 1993 City of San Luis Obispo VI-I i�Il�Iryp�fpl ME NG ATE: ""WpU city of san tins 0131'Po COUNCIL AGENDA REPORT STEM NUMBER: FROM: William C. Statler, Director of Finance Prepared by: Linda Asprion, Revenue 1Vlanager� � ✓ SUBJECT: WATER FUND RATE REVIEW CAO RECOMMENDATION 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 1993-94, 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 0 Provide for ongoing review in order to facilitate rate stability city of sail s OBISp0 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 Debt service obligations (existing and projected) Step 2: Subtract from this amount "non-rate revenues" such as: ■ Interest earnings ■ Connection fees and meter sales ■ 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) �lall��A City Of San L ,S OBISPO sollifid 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 209o' 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 1% 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. MY of San tins OBISPO Now 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 8.59o' and 6.59o' 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 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 $ 2.45 $ 4.90 In excess of 1 ccf thereafter $160.00 $325.00 All Others 1 to 5 ccf $ 2.45 $ 4.90 More than 5 ccf $ 3.05 $ 6.10 Commoditv 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 pExhibit o0O_ N h r+ e'Zp cr Nr r- kn ;:::::D: x.4+ /' a4; : Aa�i:0 :�;T �. ,:i : 1 i.i. .. {vke;fvJ'f{ii co .Lf�r O rl O of v'f O y� M N �p S 00 }>}•.:yFri` N O N h �? .� .a N v fV r+ oR..p r v ? h O\ H S [c S S o H H S S2 O O O ^ O d'::�;g i:.i O N �p (� ppOpp� p'Vp yt y1��•� 617 ':.T('3 ":!,'*.`•. 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L I C O� N N C7 to _ rn �• p O � ^ O U LL c V0 7 d y C c E c �' c tri to CLto _ N0 Co 3 cE Z C N O O C O O N C C m O r 7 i7 U Q J O C m E 1-O N V CO C J O- UU O `O E E p �' CD U j 0 N N U 7 t0 O O O 00 O W C O N O I + m I + 7 7 CO d Q U a O In 0 0 U U r w m O 2 w i i Z APPENDIX VII IMPACT FEE ANALYSIS City of San Luis-Obispo VIIPI WATER DEVELOPMENT IMPACT FEES Appendix VII OVERVIEW The purpose of this Appendix is to set forth an approach for funding water system improvements that is consistent with the City's policy that new development pay its fair share of the cost of building the facilities necessary to serve it. In this analysis,impact fees are the recommended method for achieving this financing goal. On an"equivalent dwelling unit"basis,the proposed fees for water supply projects range from$5,243 to$12,568, with a mid—range cost of$7,245. This cost range results from the variablity in the cost of sources that may be developed in meeting the City's long—terns water supply needs as well as cost ranges for each specific project. Given these potential cost variances,this analysis presents water supply development costs in three cost ranges:low, middle,and high. Upon adoption of the Urban Water Management Plan,it is recommended that the water supply portion of the City's water impact fee be initially set at the"mid—range"level($7,245). As water supply projects and related costs become better known,fee amounts can be modified as appropriate. In addition to water supply costs,the City's existing water impact fee also includes a component for the cost of water treatment facilities. This analysis addresses this component of the water impact fee using the same methodology for apportioning costs between existing users and new development as used in determining the supply portion. Based on these two components and the equivalent dwelling unit concept,this analysis concludes with recommended water impact fees for residential and non—residential users. SUMMARY OF THE FINANCING METHODOLOGY There are six basic steps in developing recommended water impact fees: A. Determine water supply needs and allocate them between existing users and new development based on: 1. projected water demand at General Plan build—out 2. reserve requirements 3. loss of supply capacity in reservoirs due to siltation B. Identify source of supply solutions that will meet the City's needs over the next 30 years C. Determine the costs of developing these additional water supplies on an annual basis D. Allocate these costs between existing users and new development E. Develop appropriate funding strategies in financing new water supply projects 1. development impact fees for costs related to new development 2. general purpose rate increases for costs related to existing users F. Set water impact fees for both supply and treatment facilities attributable to new development for residential and non—residential users based on"equivalent dwelling units" KEY ASSUMPTIONS The accompanying schedules detail the recommended funding strategy based on the following key assumptions: General Plan • build—out population of 56,000 • 1%annual growth rate • new development must pay its fair share of the facility costs necessary to serve it Wager Supply and Demand • demand based on 145 gallons per day per capita;this reflects both residential and non—residential uses • current safe annual yield of 7,735 acre feet • reliability reserve of 2,000 acre feet annually and siltation allowance of 500 acre feet annually • specific water sources are not allocated between existing users and new development based on the City's multi—source water policy va-2 Avvendix VII Step A EW WATER SUPPLY PROJECTIONS The following three tables outline the City's additional water supply requirements and allocates them between existing users and new development on a prorata basis. As set forth in this analysis,the City needs to develop a safe annual yield of an additional 3,861 acre feet(af)annually;of this amount, 1,255 of(32.5%)is attributable to existing users and 2,606 of(675%)is attributable to new development. These three tables: O Project demand based on a per capita planning ratio of 145gallons per day per capita for existing users and new development A Determine new watersupplyrequirements based on:current safe annual yields;projected demand based on per capita planning ratios:reserve requirements,and siltation allowance ® Allocate new water supply requirements between existing users and new development Pro"ected Demand Based on Per Capita Planning Ratio Table A 1 Annual AR:@. 145:gal per day Percent Po elation per capita: of total. Existing users 43,415 7,052 77.5% New development 12,585 2,044 225% Total 56,000 9,096 100.0% New Water Supply Requirements Tab/c az Required safe annual yield 9,096 Current safe annual yield 7,735 ldditional safe annual yield required based on per capita planning ratio 1,361 Reliability reserve 2,000 Siltation allowance 500 Total 3,8611 Allocation of New Supp]y Requirements Between Existin Users and New Development Table a3 Eidsting. New see notes Users Development Total New supplies based on per capita planning ratio (a) (683) 2,044 1,361 Reliability reserve (b) 1,551 449 2,000 Siltation allowance b 388 112 500 Total 1 1,2551 2,6061 3,8611 Percent 1 32-5% 1 67.5% 1 100.0% a) Credit allocated to existing development based on current safe annual yield in excess of current demand(7735 of vs 7052 al) b.) Reliability and siltation reserve allocated to existing users based on their ratio to total projected demand(77.595) Step B SOURCE OF SUPPLY SOLUTIONS The following identifies three combined sources in meeting the City's additional supply requirements. As plans for individual projects go forward and further environmental,engineering and financial studies are completed,the actual composition of supply sources is liliely to vary. This spec combination of supply sources has been initially evaluated as it is likely to be the least costly combination of sources based on information available at this time. Safe Annual Yields SA from Conceptual Source of SuPPIY Solutions Table B : AFSAY: ,alinas Reservoir expansion(1650 of say less 100 acre feet for County WW District No 6) 1,550 Water reclamation distribution system 1,000 Nacimiento pipeline 1,311 Total 3,861 VII-3 Aayendia VII Step C COST OF NEW WATER SUPPLIES This schedule develops annualized costs for the new water supply sources. Based on the variability of supply combinations and cost ranges associated with each one,three cost estimates are developed: low,middle,and high. The annual costs for each supply project have been developed as follows: Salinas Reservoir The low and mid—range cost estimates are based on projected debt service requirements for a 30 year bond issue with a project cost ranging from$8.0 to$9.8 million. There is no"high"cost range for this project,as the more expensive option would be to develop the 1,550 acre feet that would result from this project through the Nacimiento pipeline project instead. Water Reclamation Distribution System The cost ranges are based on estimated debt service requirements on a 30 year bond issue for a project costing between$4.0 to$8.0 million based on the estimates provided in the draft EIR for this project. Nacimiento Pipeline Cost ranges for the Nacimiento pipeline project are not based on differing construction cost estimates,but on differing assumptions regarding the apportionment of cost components(supply vs treatment — capital vs operations&maintenance). These different apportionment approaches are reflected in the"low,middle,or high" cost ranges summarized as follows based on preliminary annual cost per acre foot information developed by the County's engineering consultants for this project,Boyle Engineering. Table C 1 Su 1 ;;. (Pipeline) Treatment Total Facilities (annual debt service) 522 113 635 Operations&Maintenance O&M 302 63 365 Total $824 $176 $1000 • "Low cost range"is based on the facility cost of the pipeline($522 per acre foot) • "Middle cost range"is based on the facility cost of the pipeline and treatment plant($635 per acre foot) • "High cost range"is based on total facility and O&M costs($1,000 per acre foot) Conservation Although the direct effect of an aggressive conservation program is to lower demand requirements,its costs are treated as a"supply"project since it reduces the amount of new water supplies that would otherwise have to be developed. Cost ranges for conservation have been based on the analysis presented in Appendix V of this plan. Summary of Annual Costs for New Water Supplies Table C2 : co st Ranke: . Low Middle. Hi Salinas Reservoir expansion 640,000 784,000 Water reclamation distribution system 320,000 480,000 640,000 Nacimiento pipeline 684,300 832,500 2,861,000 Conservation 305,100 597,400 1,172,400 Total $1,949,400 , $2,693,900 $4,673,400 Step D ALLOCATION OF COSTS BETWEEN EXISTING USERS AND NEW DEVELOPMENT The following schedule allocates the costs of developing new supplies between existing users and new development based on the apportionment of costs developed in Table A3: Table D Percent ::. Cost::Ran e of..TTotal . : Low Middle Iii., .. Existing users .325% 633,500 875,500 1,518,800 New development 67595 1315 900 1818 400 3,154,600 TOTAL 100.095 $1,949,400 $2,693,900 $4,673,400 VII-4 Annendix VII Step E 'UNDING STRATEGIES The following schedules identify separate strategies for funding the costs of new water supplies for existing users and new development. O New Development The use of impact fees is the primary method identified in this analysis for funding the portion of new water supplies related to new development. Several steps are involved in setting impact fees at appropriate levels: • Identify"equivalent Impact fees are attributable to residential as well as non—residential uses. The dwelling units"(ED UV concept of equivalent dwelling units is a useful one in allocating costs between different types of uses by establishing a"common denominator"based on a single family residential dwelling. As set forth in the summary below,residential EDU's are based on existing single and mulit—family units and 1990 Census data for population per household. Based on 18,300 total dwelling units,this results in 16,340 exisiting residential EDU's. • Project annual Based on 16,340 existing residential EDU's,annual increases are projected at 1% increases in per the City's General Plan growth management policies. This results in an residential ED U's increase of 163 residential EDU's per year over the next 30 years. • Project annual Non—residential uses currently account for 35%of total water consumption;the increases in non— annual growth in non—residential EDU's is projected proportionately,resulting in residential EDU's an additional 88 EDU's annually, for a total increase in EDU's per year of 251. he following table summarizes projected annual increases in equivalent dwelling units: Annual Growth in Equivalent Dwellin Units DU's Table E.1 Existing .. .': Popl'er SFR. Annual.EDU units.. Household uivalenf EDU's. Growth 1%. Single family residential(SFR) 8,500 2.7 1.0 8,500 85 Multi—fa ' ' residential 9,800 2.1 0.8 7 840 78 Total residential 163 Total non—residential @ 35% of total water use 88 Total estimated annual growth in equivalent dwelling units 251 The next step in determining impact fees is to match the annual cost requirements for water supply improvements related to new development(Step D)with the estimated annual growth in EDU's: Water Supply Impact Fee Requirement Table E.1 Annual Cost SFR Fee:@' R.e..:uiiement 251.EDU7s: Low Cost Range $1,315,900 $5,243 Middle Cost Range 1,818,400 7,245 High Cost Range 3 154 600 12,568 This analysis results in an EDU impact fee ranging from$5,243 to$12,568,with a mid—point of$7,245. This compares with the current impact fee for supply purposes (exclusive of the treatment plant portion)of$2,416. A summary of proposed fees based on mid—range costs including both supply and treatment components for residential and non—residential users is provided at the end of this Appendix. -4 Existing Users The balance of the cost of developing new water supplies that is attributable to existing users must be financed through general purpose water rates. The following summarizes projected rate increases necessary to do so: VII-5 Annend x VII Projected Increases in General Purpose Water Rates Table E3 Annual `Buie; Requirement ' Increase: Low Cost Range $633,500 7.7% Middle Cost Range 875,500 10.6% Fligh Cost Range 1,518,800 18.4% • Based on projected rate base revenues of S8.25000 in 1996-97 perJune 6.1994 waterratc analysis(assumes 2095 conservation) As reflected above,funding the portion of water supply improvements related to existing users will require general purpose rate increases ranging from about 8%to 18%,with a mid—range estimate of about 11%. The following summarizes the cost impact of these potential increases on the"average"single family residential customer: Impact on "Average"Single Family Customer Avera a monthJV bill @a 10 b0a units per month —projected rates in 1996-97 Table E4 Billie Increase:. Without allocated share of source of supply projects $28.46 $ -- Low Cost Range 30.65 2.19 Middle Cost Range 31.48 3.02 High Cost Ran e . 33.70 524 Step F RECOMMENDED WATER DEVELOPMENT IMPACT FEES As noted above,water development impact fees are composed of two components:supply and treatment facilities related to servicing new development. Using the same methodolgy used in developing the supply portion of the water impact fee,the following identifies the treatment facilities portion of the recommended fee: Annual Water Treatment Facility Costs Attributable to New Development Table F.1 • Annual debt service requirements for water treatment improvements curently under construction $752,000 • Portion attributable to new development(225%u) 169,000 • Cost er EDU 251 EDU's annuall $673 Based on the portion of"mid—range"cost of water supply improvements as well as debt service requirements for improvements to the City's water treatment plant currently underway that are attributable to new development,the following impact fees are recommended for residential and non—residential uses: Recommended Water Impact Fee Schedule Table F.2 DU's E ":Fee Residential Single family residential 1.0 $7,918 Duplex,townhouse,condominium or apartment 0.8 6,334 Mobile home 0.6 4,751 Non—residential based on meter size 5/8 or 3/4 inches 1.0 7,918 1 inch 2.0 15,836 11/2 inches 4.0 31,672 2 inches 6.4 50,675 3 inches 14.0 110,851 4 inches 22.0 174,194 6 inches 45.01 356,307 Residential a uhWencies are based on 1990 Census population er household data Single family residential 2.7 Duplex,townhouse,condominium or apartment 2.2 Mobile home 1.7 V11-6 IVILL11NU AtiLNUA DAT' ITEM # city of SA1 luis OBiSp o 955 Morro Street • San Luis Obispo, CA 93401 ./CRO ED FIN DIA A-ZAO ❑ October 31, 1994 E CHIEF TO: City Council Members FROM: Michael McCluskey, Public Works Director Wei L Terry Sanville, Principal Transportation Planner" T. SUBJECT: Wording For Circulation Element Programs In response to the City Council's direction, staff offers the following wording for programs that address Route I traffic and a Prado/LOVR connector road: The City shall ask the San Luis Obispo Council of Governments (as the designated Metropolitan Planning Organization) to: A. Monitor the pattern of development throughout San Luis Obispo County and provide feedback to agencies on its impact on the transportation system. B. Sponsor a study that addresses the traffic needs of the Route I corridor from Route 101 northward to include an evaluation of.- 1. Reconstructing the Santa Rosa Street interchange to .improve Route 101/Route I connections. 2. Widening Santa Rosa Street to six lanes between Olive Street and Foothill Boulevard. 3. Constructing a grade separation at Foothill Boulevard to reduce Intersection congestion. 4. Constructing a reliever route for Route 1. As part of any proposal to further develop the Dalidio-Madonna-McBride Area, the alignment and design of a road connecting Prado, Road (west of Route 101) with Los Osos Valley Road shall be evaluated and established. I V 1p OCT 3 11 1994 CITY CLERK ."SOBISPO.C" /O The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities. Telecommunications Device for the Deaf(805)781-7.410. ML-.,NG AGENDA DATE �/-9 ITEM #�_ BOB ROWNTREE , Ph . D _ Pedestrian Advocate Traffic & Transportation Agitator 808 Murray Ave San Luis Obispo, CA 93405 ( 805) 549-9107 October 29, 1994 To: Mayor Pity Council Members Maybe I 'm flagging a dead horse. but I still think it is useful to try to lmr„rove development D:"oposals so that we can fix circulation problems Ems'=OFF everyt`.ing is set in concrete and we're into the EIR process where all we car,. say is "yes" or "no. ” At the end of last Tuesday's session I felt like the little boy in the joke who'd been given the two-'your "birds & bees" lecture when all he'd wanted to know was what State he'd come from. As I said in my verbal presentation. all that I. and a Previous Planing Commissioner, was after was for DroDosal _la-',-;aces t_: the City to include (1) at least one map that extends beyond the bo,_:dar-ies of the project, and (2) an estimate of the project's traffic of f--rts 1-1,e c�t.y as a >.,�-^'_e. I was *JOT asking about impact fees. city-wide modeling, or the stylized -Tr- process. This was bout information to be able olV_r..Q =, Lv we get tc, those ex-)ensive, comp] lcated steps. As things were left last Tuesday, there was a Policy statement on these ideas but no implementing Pro ram. And staff does not believe it has an assignment to find one. Tf you believe this idea is worth an additional five ri^utes. I offer the following softened language that should avid the problems we got into last week: i _ 1a vm— I r.r,T_nT_ !-'r oc o=a1 _ to the L-2ty wi1i _ nC '_ ude ' I =_p ' a'• s of t e ^ ! i1nrs 1s ' S interfa-ce w ; rh naarh .' r ig ^bc c.ods- andir. ' ice =.te e :pected s: grifiCant :a11Lb.live tr == rs-LYt2.t inn ef`ert5 on I .. ent4 re '�•_ is i r y . Thank you, once more. for your time � ,_ ....yvBob Rowntree it r,r-y C's. is CDD DIR' CC: Clerk n.uo [� FP DIa CAO ,y . ,Zo ❑/FIRE QNiEF Din D `!+y� _ RECEIVE LJ i�� OCT J 1 W4 CIry COUNCIL SAN LI IIR OBISPO,CA WARREN A.SINSHEIMER III SINSHEIMER, SCHIEBELHUT & BAGGETT ROBERT K SCHIEBELHUT A PROFESSIONAL CORPORATION STREET ADDRESS K. ROBIN BAGGETT MARTIN J. TANCEMAN ATTORNEYS AT LAW 1010 PEACH STREET THOMAS M. DUGCAN POST OFFICE BOX 31 FACSIMILE MARTIN P.MOROSKI DAVID A.JUHNKE SAN LUIS OBISPO, CALIFORNIA 93406.0031 805.541.2802 STEVEN J.ADAMSKI THOMAS D.GREEN 805-541-2800 M.SUZANNE FRYER CYNTHIA CALDEIRA CLIENT 0201024 W.ARTHUR GRAHAM SUSAN S. WAAG ROY E. OLDEN THOMAS J. MADDEN III MARIA L HUTKIN October 31, 1994 MEETING AGENDA DATE //-/-9 ITEM # Peg Pinard, Mayor HAAT -D LI'dERED— . City of San Luis Obispo 990 Palm Street ✓ I:� �' "`�I� �;FF CHIEF u P.O. Box 8100 San Luis Obispo, California 93403-8100 Re: General Plan Land Use Element/Alex Madonna Dear Mayor Pinard: TcPAWt[E You will recall that I addressed the City Council on Friday, October 28, 1994 on behalf of Alex Madonna. The purpose of my appearance, and my statements, were to convey Mr. Madonna's objections to the possibility of a connector road fronting Highway 101 between the Marsh Street interchange and Madonna Road (on the west side of Highway 101). I pointed out that the Land Use Element had formally contained a provision relative to the Maino-Madonna area which referred to the "possible extension of frontage road connecting Marsh Street and Madonna Road west of Highway 101" (see former Section 8.1.5). I also pointed out that this possible frontage road had been addressed in my earlier Council appearance, and the reference had been deleted from the Land Use Element at our request. Finally, I had stated that I had received information that on October 25, 1994, the Council had decided that it would include a provision for such a frontage road in the Circulation Element, and I requested reconsideration of that decision. I was surprised to read the headline story in the Telegram Tribune on Saturday, October 29. In that story, I was quoted as having represented that Mr. Madonna objected to a Highway 1 bypass running between O'Conner Road and the freeway. I did not intend my comments to be so interpreted at the City Council meeting. Mr. Madonna has not requested that I convey any position, either pro or con, to the City Council regarding a Highway 1 bypass, and to the best of my knowledge, Mr. Madonna has not taken that-Position with regard to the Highway 1 bypass. DECEIVE® OCT 5 1 199it CITY COUNCIL SAN 1-1.11c CRmpn, rq Peg Pinard, Mayor October 31, 1994 Page 2 I hope that the City Council did not misinterpret my remarks at last Friday's meeting. This letter will clarify that those remarks were directed only at the possible connector, or frontage road, between the Marsh Street interchange and Madonna Road along side Highway 101. Thank you for your consideration. Very truly yours, 4RSINSHE SCHIEB HUT & BAGGETT E MJT:tlg g:utr\Madonna\LandUse\24Pinard.031 cc: Councilmember Penny Rappa Councilmember Bill Roalman, Councilmember Allen Settle, Councilmember Dave Romero Ken McCall, Telegram Tribune (via telecopy) Alex Madonna (via telecopy) iffl�CE1VE® M��TING AGENDA Dhff� ITEM NOV - 11994 C coUNClI CA Old S ssion School % Broad Street San Luis Obispo;:Gahforr is 93401 (805).543=6019 October 25, 1994 The Honorable Peg Pinard, Mayor City of SanLuis Obispo 990 Palm Street- San Luis Obispo, CA 93401 Dear Mayor Pinard: The administration of Old Mission School is encouraged to learn that the City Council of San Luis Obispo is investigating the possibility of closing the Highway 101 exit road at Broad Street. We recommend and strongly supporta decision to abandon this off-ramp. Old Mission School serves approximately two hundred families on our elementary campus which is adjacent to the Broad Street exit.The area experiences considerable traffic congestion on a daily basis as students arrive and leave the school grounds. This congestion is severely aggravated by the frequency with which cars eat the.freeway. Many drivers, perhaps'unaware that they are entering a residential neighborhood with an elementary school, exit the freeway at unsafe speeds. On several occasions, our office;staff have called 911 to report accidents when vehicles failed-to negotiate the off-ramp curve during school hours. This poses a potentially dangerous situation not only for our students, their parents, and our staff members, but also for the many neighborhood people who drive and walk in the area. Please list the Old Mission School'administration among the many individuals and groups who, for the safety and well-being of our neighborhood„recommend that the Broad Street off-ramp be closed. We deeply appreciate your efforts on behalf of this action. Sincerely, Dr. Jim Gentilucci, Principal Ms. Linda Mu rr y, Assistant Princi I C NCIL ❑ CDD DIR �C9Q ❑ FIN DIR Ca�CJ10 ❑ Fl$E'CHIEF ' Ms. Patti Stalder, Assistant Principal 052-POUCE P I CLER?VG iiC, ❑ POUvE CHF ❑ rAGVT TEAM Cl PEO MR i [3C R qC "r.r F3 UM Mr. Ms. Valerie Ratto, Elements Tea Coordinator �` _ ❑ F=rs a:�