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HomeMy WebLinkAbout06/07/2005, C5 - 2005 WATER RESOURCES STATUS REPORT I counat M.6*°� -� acenaa Repom 1�Numbw CITY OF SAN LUIS O B I S P O FROM: John Moss, Utilities Directot Prepared By: Gary W. Hend rson, Water Division Manager Ron Munds, Utilities Conservation Coordinator SUBJECT: 2005 WATER RESOURCES STATUS REPORT CAO RECOMMENDATION Receive and file report. DISCUSSION The purpose of the annual Water Resources Status Report (WRSR) is to provide an overview of various aspects of the City's water resources. The attached report discusses five major topics: 1.) Existing Water Supply Status, 2.) Multi-Source Water Supply Projects, 3.) Water Conservation Program, 4.) Water Supply Strategies to Meet Future Needs, and 5.) Projected Water Supply Situation. The following is a summary of the information contained in the 2005 Water Resources Status Report. Report Summary Existing Water Supply Status This past year's rainfall was well above average for Salinas and Whale Rock Reservoirs with the two lakes receiving over 150% of the average. This year's significant rainfall filled both reservoirs to maximum capacity. The City's combined total water storage, above minimum pool, in Salinas and Whale Rock Reservoirs is 43,125 acre feet(as of May 1, 2005)which is 100% of the maximum City available storage. Groundwater production for 2004 was 140 acre feet. The City's per capita water demand increased following the end of the drought up to 1997 and then has somewhat stabilized. This past year's use was 126 gallons per capita per day (gpcd), an increase from last year's use of 120 gpcd (see Table 3, page 2 of WRSR). This increase was likely due to the minimal rainfall received at the beginning of 2004 and earlier initiation of landscape irrigation. It should be noted that the 126 figure is not the amount that an average resident in the city used in 2004. The basis of the number is the total water pumped into the water system divided by the current city population. Thus, it reflects both residential and non-residential uses, such as businesses, churches and schools, landscape irrigation, etc. which account for about 40% of the City's water use. Council Agenda Report—2005 Water Resources Status Report Page 2 Water Available for Development The policies in the Water Management Element to the General Plan determine the water available for new development. The policies use a planning figure of 145 gpcd times the current population to determine the present demand. This figure is then subtracted from the City's adopted safe annual yield to determine water available for development as shown in the table below. Table 1: Water Available for Development Year Population Present Water Safe Annual Water Available Demand Yield 1 for Allocation @ 145 gped 2005 44,519 7,230 a.f. 7,490 a.f. 260 a.f. I From Water Management Element,Table 1: includes reductions due to siltation to date Per Water Management Element Policy 8.1.3, one-half of the water available for allocation will be reserved to serve intensification and infill development within existing City limits as of July 1994. Therefore, 130 acre feet is available for infill and intensification and 130 acre feet is available to serve new annexation areas outside the July 1994 City limits. Multi-Source Water Supply Projects One of the major goals of the Council is the pursuit of additional long term water supplies to meet the current and future water demands of the community. The City is currently pursuing or considering the Water Reuse Project, the Nacimiento Pipeline Project, increased water conservation strategies, additional groundwater resources, potential desalination facility, and the Salinas Reservoir Expansion Project to meet these needs. The Water Reuse Project has the potential to be accomplished in the shortest time frame, with projected water deliveries beginning in early 2006. Following initial construction, recycled water will offset approximately 130 acre feet per year of potable water currently used for irrigation. The project has a potential to provide approximately 1,000 acre feet per year for non-potable purposes. The Nacimiento Pipeline Project is being administered by the County of San Luis Obispo and has been under review for over 10 years. The County Board of Supervisors certified the Final Environmental Impact Report for the project on January 6, 2004. Following the Board's certification, the City Council held numerous public meetings to discuss a number of project issues which include: the participation agreements, cost allocation methodologies, City participation and requested amount of water allocation, and potential modifications to policies in the Water Management Element to support the City's participation in the project. On March 9, 2004, the Council supported participation in the project for a total City allocation of 3,380 acre feet per year and directed staff to initiate the process to amend the Water Element. On June 29, 2004, the Council approved amendments to the General Plan Water and Wastewater Element, the Final Environmental Impact Report for the Nacimiento Project, and execution of the agreement with the County for participation in the Project. The project is currently in the initial design phase and various consultants are being hired to provide design services. Council Agenda Report—2005 Water Resources Status Report Page 3 As part of the 2003-2005 Financial Plan, Council approved funding necessary to expand the water conservation program that would have an irrigation efficiency component, and a broadened commercial conservation program. The landscape irrigation efficiency component of the expanded program was implemented in January 2004. The program strategies are to directly contact high residential water users and offering assistance, creating water budgets for individually metered landscape accounts and analyzing commercial mixed water use accounts which include landscape irrigation. To date, about 1,970 letters have been sent to high water use residential customers. A monitoring system has been developed to track the program's effectiveness and the results should be available by late 2005. The added yield from this program will be included in next years report and added to the City's safe annual yield. The commercial portion of the program will initially be focusing on restaurant dishwashing hardware and will be implemented in conjunction with the statewide California Urban Water Conservation Council (CUWCC) program. Program implementation has been delayed because of contracting issues between the California Public Utilities Commission and the CUWCC. It is anticipated that the program will be implemented during the summer 2005. Stetson Engineers completed the Phase 1 evaluation of increasing groundwater production to meet city water demands. The main issue continuing to confront the successful implementation of increased groundwater production involves potential impacts to stream flows in the area. This question has been discussed in past reports and has been very difficult to properly evaluate due to limited historical information. With the recent decision for City participation in the Nacimiento Project and the cost and uncertainty of the additional studies necessary to evaluate project impacts, the Council deferred additional phases of the Groundwater Project on December 7, 2004. On February 19, 2002, the San Luis Obispo City Council considered and endorsed the concept of working with the City of Morro Bay to allow cooperative use of the existing Morro Bay desalination facilities. The City of Morro Bay has determined that it would not be in their best interest to pursue cooperative use of the facility. As such, the discussions relative to the cooperative use of the facility were curtailed. There is the potential for the City of San Luis Obispo to consider construction of a desalination facility in the future to meet projected water needs if other water supply projects currently being pursued are not successful. Based on other potential water supply projects currently being pursued, staff recommends that a potential desalination facility be considered as one of the last options. The City of San Luis Obispo has considered the Salinas Reservoir Expansion Project for many years as a project to meet additional city water demands. This past year, no work has been undertaken on this project. With the City Council's decision on the Nacimiento Project and the fact that the Salinas Reservoir Expansion Project is a Tier 3 project, staff would recommend that the expansion project be considered one of the last options. Additional work related to Salinas Dam will be required over the next several years relative to ownership transfer of the facilities from the U.S. Army Corps of Engineers (Corps) to a local agency. The Corps have been interested in transferring ownership to a local agency for more than 30 years. The City, County, and Corps staff have met several times over the past year to plan the strategy for the studies and actions necessary to allow the transfer to proceed. e�s- 3 Council Agenda Report—2005 Water Resources Status Report Page 4 Water Conservation The Utilities Conservation Office continues to implement the Best Management Practices (BMPs) established by the California Urban Water Conservation Council. The following is a brief summary of the three key components of the program, which are further detailed in the WRSR. 1. Water Hardware Retrofit Replacing higher water using plumbing fixtures such as toilets and showerheads has been the cornerstone of the Water Conservation Program because of the associated water saving potential. Since 1990, it is estimated that approximately 83%of all toilets in the City of San Luis Obispo have been retrofit resulting in an estimated water savings of over 1,400 acre feet per year. This is the largest percentage of total toilet retrofit within any community within the State of California. As part of the 2001-03 Financial Plan, a High Efficiency Washing Machine Rebate Program ($150 rebate) was implemented. Over the past 4 years, a total of 267 rebates were processed with an estimated water savings of 4.5 acre feet per year. 2. Technical Assistance The Utilities Conservation Office provides technical assistance to water customers via free indoor and outdoor water audits. The audits include indoor and outdoor leak detection services, irrigation system evaluations, landscape plant material information and other information on how to use water efficiently. Conservation staff performed approximately 1,030 water audits this past year. 3. Public Information and Education This is a multi-faceted component which uses free printed information, paid advertising, public service announcements, workshops, newsletters and an in-school education program to inform and educate the community. Water Supply Strategy to Meet Future Needs The City is currently pursuing multiple water supply projects to meet the projected community needs based on the policies contained in the Table 2: Priority of Water Supply Projects General Plan and related Elements. Based on the Tier Project information that is currently available on the projects being pursued and the timing and costs Water Reuse associated with each project, the Council 1 Nacimiento Pipeline prioritized the projects last year, as shown in Additional Water Conservation Table 2, to meet our future needs. 2 Additional Groundwater Desalination The Tier 1 projects will be able to meet the 3 Salinas Reservoir Expansion projected water needs of the City. The Council Agenda Report—2005 Water Resources Status Report Page 5 Nacimiento Project when completed will provide water resources to meet the city build-out population and strengthen the City's water supply resources to meet unforeseen future situations such as loss of one of our water supplies or worst case drought conditions. Projected Water Supply Situation The City utilizes a computer program to project how long the City's available water supplies would last based on a number of assumptions. The model uses historical drought weather patterns, projected water demands, etc.,to forecast the City's water supply position and to make certain water policy recommendations. The model predicts current water supplies would last until June of 2012 if the City was to enter into a drought period with conditions comparable to those experienced in the 1986-91 drought(see Figure 4 of the WRSR). FISCAL HAPACT There is no fiscal impact associated with the recommended action. Any fiscal impacts associated with the pursuit of additional water supply projects or additional conservation measures have been or will be addressed through the City's Financial Plan processes. ATTACHMENT 1. 2005 Water Resources Status Report cj -- Attachment 1 City ofSan Luis Obispo I 2005 Water Resources Status Report June 2005 f I Prepared by: Gary Henderson, Water Division Manager Ron Munds, Utilities Conservation Coordinator Attachment 1 TABLE OF CONTENTS I. EXISTING WATER SUPPLIES......................................................................................... 1 CurrentStatus......................................................................................................................................................I WaterConsumption.............................................................................................................................................2 Water Available for Development........................................................................................................................3 II. MULTI-SOURCE WATER SUPPLY PROJECTS ..........................................................4 WaterReuse Project............................................................................................................................................S NacimientoPipeline Project................................................................................................................................6 Additional Water Conservation Strategies..........................................................................................................6 AdditionalGroundwater Resources.....................................................................................................................7 DesalinationFacility...........................................................................................................................................8 Salinas Reservoir Expansion Project...................................................................................................................8 III. WATER CONSERVATION PROGRAM........................................................................ 10 Water Hardware Retrofitting Summary.............................................................................................................11 TechnicalAssistance..........................................................................................................................................12 PublicInformation&Education........................................................................................................................12 New Water Conservation Programs..................................................................................................................13 Future Water Conservation Programs..............................................................................................................14 IV. WATER SUPPLY STRATEGY TO MEET FUTURE NEEDS..................................... 14 V. PROJECTED WATER SUPPLY SITUATION................................................................ 16 ReservoirStorage Curve....................................................................................................................................16 VI. SUMMARY.......................................................................................................................... 16 Attachment 1 City of San Luis Obispo 2005 Water Resources Status Report The annual Water Resources Status Report for the City of San Luis Obispo is prepared by the Utilities Department to provide the City Council and interested members of the community with an update of the status of existing water resources as well as water supply projects being pursued to meet the community's future needs. The report covers five main areas: 1.) Existing Water Supply Status, 2.) Multi-Source Water Supply Projects, 3.) Water Conservation Program, 4.) Water Supply Strategy to Meet Future Needs, and 5.) Projected Water Supply Situation. The report provides an opportunity to evaluate the existing water supply situation for the City, identify the amount of water currently available to serve new development, and discuss issues relative to existing policies and water projects being pursued. I. EXISTING WATER SUPPLIES The City of San Luis Obispo currently utilizes three sources of water supply to meet the community's water demand: Santa Margarita Lake (also referred to as Salinas Reservoir), Whale Rock Reservoir, and groundwater. The adopted safe annual yield from these three sources for 2005 is 7,490 acre feet (af) which takes into account annual estimated reductions due to siltation at the reservoirs. The actual total city-wide water use for 2004 was 6,239 of which was about 4.5% higher than last year's use of 5,969 af. The higher water consumption is likely the result of the low rainfall amounts in early 2004 which resulted in earlier activation of irrigation systems. Current Status This past year's rainfall was well above average for Cal Poly and Salinas and Whale Rock Reservoirs with the two lakes receiving over 150%of the average (Table 1). This year's rainfall began with above average amounts in Table L• Area Rainfall October. November did not receive significant rain fall amounts but - Location __2004/05___. Avera e. January, February and March were all Cal Poly State University 32.89" 22.47" well above average. With the abundant Whale Rock Reservoir 30.19" 19.35" winter rains, Salinas Dam began Salinas Reservoir 36.86" 21.00" spilling on January 10`h and Whale Rock began spilling on April 5`h. As of May 16, 2005, both reservoirs were still spilling. With the winter runoff, Salinas and Whale Rock Reservoirs are both at 100% capacity as of May 2005. For the calendar year of 2004, the water demand for the City of San Luis Obispo was provided from the three available sources as shown in Table 2. The total water demand for all City uses in 2004 was 6,239 of which was approximately 4.5% more than the total water use for 2003. The total amount of City water use shown in Table 2 does not include domestic water delivered to Cal Poly University which is accounted for from their available water supply from Whale Rock Attachment ] 2005 Water Resources Status Report Page 2 Reservoir. As of May 1, Table 2:.Water Supply Sources 2005, the City's available Salinas Whale Rock Groundwater Total water storage in Salinas Reservoir (above minimum 3,346 of 2,753 of 140* of 6,239 of pool) was 21,843 acre feet. The City's share of the * 179 of total,including Corp Yard and Golf Course wells Whale Rock storage (above minimum pool) was 21,282 acre feet. The combined water storage available to meet city water needs was 43,125 acre feet (i.e. 100% of maximum storage in each reservoir). Based on the available water storage in both reservoirs, estimated groundwater production and assuming the return of drought conditions as experienced during the late 1980s, the City has approximately 7 years of water supply, according to the computer storage model as shown in Figure 4 (figures are at end of report). The model assumes that additional conservation measures, consistent with our water shortage contingency plan, are implemented when supplies are estimated to last only three years. The various stages of conservation are indicated in Figure 4 and are discussed in more detail in the Water Shortage Contingency Plan. The Plan is an Appendix to the Urban Water Management Plan that was updated and adopted in April of 2001. Water Consumption As noted previously, the total City water use for 2004 was approximately 4.5%more than the use for 2003. Table 3 shows the population estimates from 1995 through 2004 as well as the total City water use and corresponding per capita use rate. Based on policies contained in the Water Management Element of the General Plan, the Table 3: Population Estimates,Water Use& Rainfall City has adopted a per ---- -- - - - _. _ capita planning use rate Year Po-alaton Acre Feet Per Capita _Rainfall of 145 gallons per 1995 41,295 5,574 121 cd 44.33" person per day (gpcd) 1996 41,404 5,791 125 gpcd 24.06" for projecting future 1997 41,807 6,220 133 gpcd 31.36" water supply needs and 1998 42,201 5,853 124 gpcd 43.54" determining the 1999 42,446 6,172 130 gpcd 16.34" availability of water for 2000 44,174 6,121 124 gpcd 24.97" new development. The 2001 44,218 5,886 119 gpcd 24.53" 145 figure is not the 2002 44,333 6,032 121 gpcd 22.91" amount that the average 2003 44,225 5,968 120 gpcd 16.08" person uses but takes 2004 44,176 6,239 126 cd 32.89" _ into account all water 1.Rainfall amounts for July through June from Cal Poly weather station uses including residential, commercial, industrial, landscape, etc. Chart 1 shows the water use between different customer classes for 2004 (landscape use is only specific dedicated landscape meters). The city wide water use is monitored to insure that actual use remains below the adopted planning figure so that the City does not exceed our available water resources. �� q �y Attachment 1 2005 Water Resources Status Report Page 3 While per capita use increased following the Chart 1:Water Use by Category end of the drought up to 1997, the use appears Landscape to have stabilized since that time. This last Irrigation 8 10% ley year's per capita water use was approximately Commercial � Residential 126 gpcd, an increase from last year's use of 2 42% 120 gpcd. This increase was likely due to the lw iti-family minimal rainfall received at the beginning of Residential 2004 and earlier initiation of landscape 19% irrigation due to the dry conditions last spring. There are a number of other factors that can impact the per capita use rate including: population figure estimates from the State which can fluctuate and hardware retrofit that was a requirement for new development from 1989 to 2002. It should be noted that new development had been required to retrofit to not only offset their expected water use but at twice the estimated use (i.e. 2 to 1). The mandatory retrofit requirement was eliminated as of January 1, 2002 based on the fact that the majority of existing toilets have been retrofit. With the elimination of the retrofit requirement, the overall per capita use figure may tend to increase as new development occurs. Maintaining per capita use rates in the 130 gpcd range may likely be achievable over the long term but additional time should be provided to insure use will remain at these lower levels. Water Available for Development The policies in the Water Management Element of the General Plan determine the water available for new development. Section 8.2.A. states"The City will make available to new development only that amount of safe annual yield which exceeds present water use (policy 3.4)." Policy 3.4 and . related policies define present water use as the current population times the adopted per capita water use rate(145 gallons per capita per day). Based on these policies,Table 4 below indicates the water available to allocate to new development in 2005. The population figures are provided by the California Department of Finance. The estimates provided recently by the State adjusted the population estimate for 2004 from 44,176 to 44,163. This year's.estimate of 44,519 represents an approximate 0.8%population increase. Table 4: Water Available for Development Year Population Present'Water Safe"Annual Water Available Demand Yield 1 for Allocation 145 gped 2005 44,519 7,230 af. 7,490 a f 260 of I From Water Management Element,Table 1: includes reductions due to siltation to date Per Water Management Element Policy 8.1.3, one-half of the water available for allocation will be reserved to serve intensification and infill development within city limits existing as of July 1994. Therefore, 130 acre feet is available to serve new annexation areas outside the July 1994 city limits and 130 acre feet is reserved for infill and intensification projects. Table 5 below shows the water that has been allocated to residential versus non-residential development since 1995. Table 5 includes all projects within the city,both infill and annexation areas. Ir, C�� , Attachment 2005 Water Resources Status Report Page 4 Table 5: Water for Development acre feet Year Residential Non-Residential Total 1995 16.89 12.02 28.91 1996 24.54 5.83 30.37 1997 39.96 16.94 56.90 1998 41.40 8.32 49.72 1999 16.26 17.42 33.68 2000 25.08 1.73 26.81 2001 29.10 20.52 49.62 2002 25.02 1.08 26.10 2003 57.87 14.59 72.46 2004 76.70 14.28 90.98 Total 352.82 112.73 465.55 II. MULTI-SOURCE WATER SUPPLY PROJECTS Water Management Element Policy 7.1 identifies the strategy of developing multiple sources of water supply as a basis for strengthening the security of the resources to meet the City's water demand. The policy states that "The City shall continue to develop and use water resource 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." Much like financial planning strategies, a diversified "portfolio" of water supplies will protect against future uncertainties of any one water source. With the City Council's decision to participate in the Nacimiento Pipeline Project, modification to several of the policies in the Water Management Element were approved by the City Council on June 29, 2004. These policy changes strengthen the need for developing additional water resources to account for future siltation losses, drought, loss of yield from an existing supply source, operational requirements to meet peak operating demands, and other unforeseen conditions. These Secondary Supply Requirements are in addition to the Primary Supply Requirements shown in Table 6 below. Based on the General Plan build-out population of 56,000 and the per capita Table 6: Primary Supply Requirements (acre feet) water use rate of 145 gpcd, the projected Safe Annual Yield Required at Build-out 9,096 demand at full build-out is 9,096 acre Current Safe Annual Yield 2005 7,490 feet per year (afy). Table 6 shows the Additional Safe Annual Yield Required 1,606 primary water supply requirements based on the adopted policies to meet Siltation(2005 to 2025) 200 General Plan build-out. The Water Total Water Supply Requirement 1,806 Management Element policies identify CS � ( I i Attachment 1 2005 Water Resources Status Report Page 6 identifies the logical expansion of the water reuse distribution system to more fully utilize the available recycled water. Nacimiento Pipeline Proiect In 1959, the County of San Luis Obispo acquired the rights to 17,500 acre-feet per year (afy) of water from Nacimiento Reservoir. In 1995, the County began the most recent effort to bring the water to various cities, County Service Areas, and other water agencies in the northern part of the County. The Final Environmental Impact Report for the project was certified by San Luis Obispo County Board of Supervisors on January 6, 2004. On January 13, 2004, the City Council considered information regarding the current project status, the draft participation agreement as prepared by the County, cost allocation methodologies and the proposed process for further consideration of the City's participation in the project. Following Council direction, staff returned to the Council on February 10,2004 to discuss participation in the project. Council directed staff to return to Council on March 9, 2004 with recommended amendments to the General Plan Water and Wastewater Management Element (Water Element) to address policies related to service and reliability to support Council direction for participation in the Nacimiento Water Supply Project. At the March 9t' meeting, Council supported participation in the project for a total City allocation of 3,380 acre feet per year and directed staff to initiate the process to amend the Water Element of the General Plan. Staff developed draft language for amendments to the Water Element and presented the recommendations to the Planning Commission on April 28, 2004 for their consideration. With minor wording changes, the Planning Commission unanimously approved the draft policy changes for consideration by the City Council. On June 29, 2004, the Council approved the amendments to the General Plan Water and Wastewater Element, the Final Environmental Impact Report for the Nacimiento Project, and execution of the agreement with the County for participation in the Project. The project is currently in the initial design phase and various consultants are being hired to provide specific services such as surveying, geotechnical, right-of-way acquisition, preparation of plans and specifications, eta. Current project schedules estimate project.completion and.initial water deliveries in 2010. Additional Water Conservation Stratemies As part of the 2003-2005 Financial Plan, Council approved funding necessary to expand the water conservation program to include a more aggressive water conservation program, which would have an irrigation efficiency component, and a broadened commercial conservation program. Table 8 summarizes the estimated water savings that the expanded programs are anticipated to yield. As indicated in the table, the irrigation efficiency component of the program has the greatest potential for water savings, thus is the primary focus of the expanded program. The program is discussed in more detail in the Water Conservation section of this report. Attachment i I 2005 Water Resources Status Report Page 5 that any water available above that needed to serve build-out will be for secondary water needs (future siltation, loss of a supply source, etc.) and will not be made available to serve new development above adopted General Plan build-out. The City is currently pursuing or considering the following supplemental water supply projects: Water Reuse Project, the Nacimiento Pipeline Project, increased water conservation strategies, additional groundwater resources, potential desalination facility, and the Salinas Reservoir Expansion Project. The following is a brief status report on each of these projects being considered to meet the City's future water needs. Wafer Reuse Proiect Beginning in spring of 2006, recycled water will flow to several parks, sports fields, and other landscaped areas. Initially, approximately 130 acre-feet per year of recycled water will offset potable water that has been used for irrigation. The Water Reclamation Facility produces enough recycled water so that approximately 1,000 acre-feet per year could be delivered for irrigation in the future. The additional water will be used to irrigate new developments within the City as well as appropriate existing irrigation sites. Recycled water will provide a reliable long-term source of water for the City. Since drought conditions have very little impact on this source of supply, a dependable water supply can be delivered to the parks, playgrounds and similar landscape areas served by the project even during drought periods. Water Recycling became economical in 1994 after the City completed a$25 million upgrade of the Water Reclamation Facility(WRF) to comply with requirements for discharge to San Luis Obispo Creek. The tertiary treatment required for discharge to the creek, produces recycled water that can be used to irrigate parks,playgrounds, agricultural crops, and landscaping. The recycled water may also be used in industrial processes,for construction,and many other non-potable uses. During this past year the two major project components have been under construction. The first component involves the offsite pipeline and distribution facilities to deliver recycled water and the second involves the improvements Table 7: Water Reuse Project Costs at the City's Water Reclamation - - Facility. Bids for the project were Project Component Engineer's : Low Bid tY• P J Estimate : received on March 25, 2003 and WRF Improvements $5,640,000 $5,440,528, were below the engineer's Water Distribution System $7,630,000 $5,024,528 estimates for both projects as shown in Table 7. The offsite pipelines for the recycled water distribution system were completed in August of 2004. The WRF improvements are estimated to be completed by the early 2006 with initial water deliveries beginning in the spring of 2006. In addition to the construction of the first phase of the water reuse system, a Water Reuse Master Plan was completed and approved by the City Council on September 19, 2004. The.Master Plan oc. ( 3 Attachment I ' 2005 Water Resources Status Report Page 7 The goal for the first year of the Table 8: Savings from Expanded Conservation landscape portion of the program Program Total Savings 1St Year was a savings of about 90 acre acre feet Savin feet of water. Conservation staff Landscape/Irrigation 270 90 has developed a monitoring Non-residential 70 to 75 20 to 25 program to determine the Total 340 to 345 .110 to 115 effectiveness of the program. The results of the monitoring program will be better known towards the end of the irrigation season, possibly by September or October of 2005. The estimated savings for the first year will be included in next years Water Resources Status Report. About half of the estimated water savings of the non-residential program was based on a pending cooperative grant proposal submitted to the California Public Utilities Commission (CPUC) by the California Urban Water Conservation Council (CUWCC). The requested funds would offset the cost of replacing restaurant spray rinse valves with low water using models. The new low flow valves save about 200 gallons of water per day per valve. This portion of the program has been delayed because of contracting problems between the CPUC and the CUWCC. It is anticipated the contract issues will be resolved and the program will begin during the summer 2005. Additional Groundwater Resources The City's Safe Annual Yield (SAY) Model identifies 500 afy of our water resources as being contributed from groundwater. However, actual groundwater pumped over the past few years has been around 150 afy. This is due to several of the City's wells being taken off-line as a result of rising levels of certain contaminants. San Luis Obispo's groundwater basin is relatively small with limited yield. In addition to issues with nitrate and PCE contamination, pumping additional groundwater may impact the underflow to San Luis Obispo Creek resulting in environmental concerns. Stetson Engineers were hired by the City to prepare the Phase 1 evaluation of increasing groundwater production. The "Groundwater Project: Phase 1 — Evaluation of Project Alternatives and Potential Impacts" was completed in September 2004. The Phase 1 report provided a preliminary evaluation of the various treatment processes available to remove the contaminants, an evaluation of potential well sites, a preliminary environmental evaluation, evaluation of the alternatives including costs analysis and an evaluation of possible sites for locating treatment facilities. The main issue continuing to confront the successful implementation of.increased groundwater production involves potential impacts to stream flows in the area. This question has been discussed in past reports and has been very difficult to properly evaluate due to limited historical information. With the recent decision for City participation in the Nacimiento Project and the cost and uncertainty of the additional studies.necessary to evaluate project impacts, the Council deferred additional phases of the Groundwater Development Project on December 7, 2004. Attachment 1 2005 Water Resources Status Report Page 8 Desalination Facility The City of San Luis Obispo has investigated the potential to construct a desalination facility in the past to meet city water demands. In 1989, the City was experiencing a significant drought and as such was pursuing the construction of a temporary(5 year) desalination facility located on PG&E (nowDuke) power plant property in Morro Bay. The idea was to utilize the existing intake and outfall facilities from the plant to minimize potential impacts associated with the construction and operation of a desalination plant. PG&E was not interested in a long-term agreement for use of the facilities and construction of the desalination facility on their property, but were willing to allow a short-term lease due to the serious water shortage facing the City of San Luis Obispo. With the "Miracle March" rains of 1991, the City was able to curtail work on this project which was estimated to cost over $20 million (at that time) and would only be used for five years. The City also discussed the possibility of a joint agency use of the City of Morro Bay's existing desalination facility. The existing facility could be utilized by both agencies and the capacity could be more than doubled from 645 acre feet per year to approximately 1,550 acre feet per year. Following numerous meetings and discussions, the City of Morro Bay decided that the joint use of their existing desalination facility was not in their best interest. As such, the discussions relative to the cooperative use of the facility were curtailed. There is the potential for the City of San Luis Obispo to consider construction of a desalination facility in the future to meet projected water needs if other water supply projects currently being pursued are not successful. The desalination facility could potentially be located at or near the Duke Power Plant to utilize existing outfall facilities or it could be located in other areas nearby such as Whale Rock Reservoir property. Pursuit of a new desalination facility, especially one that required new intake and outfall facilities, would require significant study and analysis prior to construction. Impacts associated with the project would need to be thoroughly evaluated and numerous regulatory permits would be required. Based on other potential water supply projects currently.being pursued,staff recommends that a potential desalination facility be considered as one of the last options. Salinas Reservoir Expansion Project The City has considered the Salinas Reservoir Expansion Project for many years as a project to provide additional water resources. The project when originally envisioned seemed relatively simple and straight forward: install a spillway gate in theclam,that was originally intended as part of the structure. The installation of the spillway gate would raise the maximum water surface level by approximately 19 feet. This would increase the storage capacity by almost 18,000 acre feet (currently 23,843 af) and would result in an estimated increase of safe annual yield of 1,650 acre feet. The project has many hurdles to overcome prior to initiation of construction. The major issues involve environmental impacts due to inundation of areas around the lake, opposition by agencies and individuals in the north county due to concerns of impacts to groundwater resources, and strengthening of the dam to safely store the additional water. Attachment i 2005 Water Resources Status Report Page 9 With the City Council's recent decision on the Nacimiento Project and the fact that the Salinas Reservoir Expansion Project is a Tier 3 project (as discussed later in the report), staff would recommend that the expansion project be considered as one of the last options. One area which will require additional work relative to the Salinas Reservoir involves the ownership of the dam. The U.S. Army Corps of Engineers (Corps) owns the dam and related facilities, pipelines and pump stations and the property surrounding the reservoir. In the past, there have been three separate agreements with the Corps relative to operations and activities at Santa Margarita Lake (Salinas Reservoir). The County of San Luis Obispo currently has a lease with the Corps which authorizes the use of the area around the lake for recreation proposes. The County Flood Control and Water Conservation District has had an agreement with the Corps for the ongoing operation and maintenance of the dam and related delivery facilities. And finally, the City of San Luis Obispo has had an agreement with the Corps for use of the water from the lake which includes the responsibility for paying all costs associated with the operations and maintenance of the dam and water delivery facilities by the County. These last two agreements expired in 2004 and the Corps granted a two year extension to June of 2006 to provide time to pursue the transfer of the ownership of the facilities to a local agency as discussed in more detail below. As the Council is likely aware, the Corps has been interested in transferring ownership of the dam and surrounding property to a local agency since the early 1970's. The facilities serve no federal purpose and as such the Corps wants to transfer the facilities to a local agency. This issue has come up a number of times over the years and has never been successfully resolved. The Corps, City and County staff have met several times this past year to develop a strategy for completing the necessary studies and reports to .allow the property transfer to occur. The following studies or actions would likely be required to allow the transfer of the property to occur: ■ Cultural Resources Evaluation ■ Hazardous Materials Evaluation ■ NEPA/CEQA documentation • Possible Special Legislation to allow transfer In addition, a meeting with the State Division of Safety of Dams (DSOD) staff and Corps and City staff was held on January 25, 2005 to discuss the State's jurisdiction of the dam following the ownership transfer. Once the dam is transferred to a local agency, DSOD would be the regulatory agency with oversight of the dam structure and operations. The State's dam safety criteria would apply which are different from the federal requirements. Additional seismic studies and other evaluations may be required by DSOD prior to their certification of the dam. - The costs associated with these studies and actions would likely be several hundred thousand dollars. While the Corps will likely ask the local agencies to pay for these studies, additional discussions with the Corps and the City and County will be necessary to determine appropriate responsibilities for this funding. Also, development of the appropriate agreements between the City and County will be required to identify which entity will actually own the facilities and Attachment 1 2005 Water Resources Status Report Page 10 define the ongoing contractual relationship between all of the parties involved in activities at Santa Margarita Lake. It is currently envisioned that the County Flood Control and Water Conservation District would be the agency to own the facilities and property provided appropriate conditions were included in the agreements to protect the City's interests. III. WATER CONSERVATION PROGRAM The Water Conservation Program is an integral part of the City's overall water management strategy and can actually be considered as a new source of supply contributing to our safe annual yield based on the water saved. Since the mid 1980's, the City has implemented water efficiency programs and policies that have enabled the City to decrease overall demand while the population continues to grow. In 1991, the City became one of the charter members of the California Urban Water Conservation Council and has implemented the organization's fourteen `Best Management Practices" (BMP's) regarding urban water conservation. The Memorandum of Understanding acts as a road map for the City's long-term water conservation program and signifies a commitment to the implementation of the BMP's. The fourteen BMP's are listed below: 1. Water Use Survey Programs for Single-Family Residential and Multi-Family Residential Customers 2. Residential Plumbing Retrofit 3. System Water Audits, Leak Detection and Repair 4. Metering with Commodity Rates for All New Connections and Retrofit of Existing Connections 5. Large Landscape Conservation Programs and Incentives 6. High-Efficiency Washing Machine Rebate Programs 7. Public Education Programs 8. School Education Programs 9. Conservation Programs for Commercial, Industrial, and Institutional Accounts 10. Wholesale Agency Assistance Programs 11. Conservation Pricing 12. Conservation Coordinator 13. Water Waste Prohibition 14. Residential Ultra Low Flush Toilet Replacement Programs Based on the BMP's, the City's Water Conservation Program is divided into three primary components: 1. Water hardware retrofitting 2. Technical assistance 3. Public education and information The following is a summary of these water conservation program components: Attachment 1 i 2005 Water Resources Status Report - Page 11 Water Hardware Retrofitting Summary With the adoption of the UWMP in Table 9: Summary of Toilet Retrofitting 1994, toilet retrofitting had been identified as a significant water Year Rebate Offset Total Estimated demand management strategy and Savings integral part of the City's overall 1999 160 2,145 2,305 130 of management plan. As of December 2000 76 3,194 3,270 155 afy 2004, approximately 32,300 toilets 2001 53 2,590 2,643 185 afy out of an estimated 39,000 toilets 2002 54 860 914 44 afy have been retrofitted either through 2003 93 274 367 17afy the Retrofit Rebate, Retrofit Upon 2004 38 297 335 20afy Sale and/or the Water Offset Programs. This equates to Total 474 99360 99834 551 of approximately 83% of all toilets Totals.Since 9466 239082 32,348 1,470 afy within the City of San Luis Obispo. 1990 This represents an annual estimated water savings of over 1,400 acre feet. Table 9 summarizes the toilet retrofit activity since 1999 and the program totals since 1990. A vast majority of the toilets replaced through the years have been through the Water Offset Program (Retrofit to Build). The mandatoy Water Offset Program was terminated in January 2002. As can be seen in Table 9,toilet replacement has dramatically decreased since that time. As part of the 2001-03 Financial Plan, a High Efficiency Washing Machine Rebate Program was implemented. A $150 dollar rebate was offered for qualifying machines. The budgeted amount was for 100 machines for each fiscal year. Table 10• Washing Machine Rebates Funding for the 2001-02 and 2002-03 fiscal years was fully utilized by January 2003. Year"T Rebate Estimated The Council continued funding the Savings program as part of the 2003-05 Financial - - Plan but participation in the program has 2001 45 .75 afy been up and down as indicated in Table 10. 2002 131 2.2 afy Staff continues to market the program to 2003 - 31 1 .52 afy the local appliance dealers and is hopeful 2004 60 1 afy that participation will increase with the Total 267 4.47 afy stepped up efforts. It is estimated that about 4.5 acre feet of water will be saved Com- �g Attachment 1 2005 Water Resources Status Report Page 12 annually by these water efficient machines with considerable energy savings as a side benefit. Technical Assistance The Utilities Conservation Office (UCO) offers technical assistance to water customers via free indoor and outdoor water audits. The audits include indoor and outdoor leak detection services, irrigation system Table 11: Water Audits evaluation, landscape plant material information and other . . information on how to use water efficiently. The requests for D:escriptoa Npmber audits are typically received from people experiencing high Toilet Leak 346 water bills, residents participating in the low income Excessive Irrigation 412 assistance program, or customers requesting a utility bill Irrigation Leak 133 adjustment through the Utility Billing Adjustment Committee. Service Line Leak 47 Leak @ Meter 91 The Water Audit Program has been very active the last Total 1,029 several years due mainly to the staff follow-ups to high meter readings. Prior to the year 2000, the office averaged about 250 audits per year. The office saw a dramatic increase in audit activity when the UCO took over the task of investigating high water bills and began a program to contact customers with consistently higher than average water-bills. During the calendar years 2000 and 2001, approximately 450 water audits were performed each year by UCO staff. For the calendar year 2002 the number increased to about 600 water audits. For the calendar year 2003, UCO staff performed 768 water audits and in 2004 about 1,030 water audits,with the most common problems listed in Table 11. These water audits often reveal problems which are then corrected by the property owner, which results in lower water use and reduced water bills. Public Information & Education In our ongoing effort to educate the public on efficient resource utilization, the Utilities Conservation Office provides informational brochures on a variety of water conservation and recycling topics upon request. Additionally, staff has produced a quarterly newsletter which focuses on current information regarding water, wastewater, storm water and solid waste issues. Additional information has been distributed through paid media advertising and public service announcements and participation at Farmer's Market, Garden Festival, etc. The current emphasis in the water conservation program's information and education campaign is efficient irrigation practices. In addition to the above programs, in 1999 the Utilities Department implemented a water education program within San Luis Obispo Coastal School District. The program targets third and fourth grades, to compliment the study of water within the school district. Teachers have been enthusiastic about the new program, particularly with the field trip to the Water Reclamation Facility. During the 2003-2004 school year, 16 class presentations and 16 field trips were given for 'schools within the city. The class presentations were 45 minutes and covered the subjects of: Water Cycle, nttecnment i 2005 Water Resources Sta___s Report Page 13 Water Treatment, Water Use, Water Conservation, and Water Reclamation. The classroom presentation is a prerequisite for the field trip. The department's hope is that the conservation education programs are lively, fun and interesting, so that the teachers will continue to want to use the presentations, water education toolkits and tours as a way of enhancing their current water education curriculum. The benefits are immediate and long-term. Instilling water awareness in children leads to increased parental water awareness. It also positively affects future .generations: these students are tomorrow's adults and they will have the information to make informed and appropriate decisions about water. It is expected that demand for the programs and field trips in the upcoming year will be similar to this last year. New Water Conservation Programs Because of the City's affiliation with the California Urban Water Conservation Council (CUWCC), valuable information regarding water conservation program development and implementation is available. Most of the nation looks to California, and more specifically to the CUWCC and the BMPs when developing water efficiency programs. Given this fact; the City's water conservation program uses the CUWCC information to determine if the implementation of a new program will provide dependable water savings in a cost effective manner. Many new studies are currently under way and the information obtained from these studies may lead to new programs in the future. As previously discussed in the report, prior to the development of the 2003-2005 Financial Plan, staff prepared a report for Council consideration relative to the expansion of the Water Conservation Program to include a more aggressive efficient landscape irrigation program and an expanded commercial sector program. The landscape irrigation efficiency component of the expanded program was implemented in January 2004. The program strategies are to directly contact high residential water users and offering assistance, creating water budgets for individually metered landscape accounts and analyzing commercial mixed water use accounts which include landscape irrigation. To date, about 1,910 letters have been sent to high water use residential customers. Of these, over 7% of the contacted customers responded to City staff and requested more information or a water audit. Conservation staff is currently implementing a monitoring system in an effort to quantify the water savings resulting from this effort. More complete data should be available for the 2006 Water Resources Status Report. The commercial portion of the program will initially be focusing on restaurant dishwashing hardware and will be implemented in conjunction with the statewide CUWCC program which will likely provide grant funding for purchase of the hardware. More information will be provided as the details of the program are solidified. Implementation of these programs will take place during the 2005- 06 fiscal year with progress reported in the 2006 Water Resources Status Report. Attachment 1 i1 2005 Water Resources Status Report Page 14 Future Water Conservation Programs The water saved through the Water Conservation Program, historically, has been the least cost option when looking at new sources of supply. The City has implemented numerous programs over the years which have resulted in a dramatic decrease in per capita water use. When evaluating the potential yield from a new conservation measure, it is very important to factor in the reliability of the program to achieve the estimated savings. That is why, in the past, toilet and showerhead replacement had been the cornerstones of the Water Conservation Program. As previously stated, numerous studies statewide are currently underway which are evaluating new water conservation technology. One of the most promising studies which was reported in last year's report.is evaluating several brands of irrigation controllers that use real time weather data to determine when and how much to irrigate. Because of the time needed to evaluate the data and results of the studies, definitive information is still not available. The strategy at this point is to continue to focus on proper irrigation scheduling and upgrading poorly designed systems, then as more information is available relative to the effectiveness of this new.technology, it could be considered as a new program. Staff will continue to monitor new and up and coming water conservation technologies and make recommendations to the Council at the appropriate time. IV. WATER SUPPLY STRATEGY TO MEET FUTURE NEEDS The City of San Luis Obispo is currently pursuing multiple water supply projects to meet the projected community needs based on the policies contained in the General Plan and related Elements. The City Council has recently endorsed participation in the Nacimiento Project for a total of 3,380 acre feet per year. Council approved modifications to the policies in the Water Management Element to identify the appropriate uses for water in excess of the amount needed to support General Plan build-out (shown Table 12: Priority for Water Supply Projects in Table 6). To meet the primary and Tier Project secondary water supply goals, the City Water Reuse should develop the additional supplies from . 1 Nacimiento Pipeline multiple sources thereby diversifying our Additional Water Conservation resources and strengthening our overall L2Additional Groundwater Resources reliability. Desalination 3 Salinas Reservoir Expansion During last year's Council discussion of the 2004 Water Resources Status Report, the Council prioritized the potential water supply projects into three "tiers", as shown in Table 12. The rationale for the prioritization takes into account many factors such as project implementation obstacles and impacts, reliability, City control, costs, water rate implications and likelihood of success. The Water Reuse Project construction is well underway and recycled water deliveries should begin in spring of 2006. When the project is completed, approximately 130 acre feet will initially be used to offset potable demand and this amount would therefore be available for new C5- a-P Attachment 1 2005 Water Resources Status Report Page 15 development based on the policies in the Water Management Element. Staff will continue to actively pursue completion of the initial phase of the project. Additional yield will be developed from the reuse project as development occurs in the south portion of the City. In addition, the Water Reuse Master Plan has identified opportunities to systematically expand the use of recycled water. As the Nacimiento Project moves forward, significant staff resources and involvement will be required. The primary areas of focus for staff will be: consultant selection, commission governance and meetings, design review, financing, and environmental mitigation design. The City will continue to dedicate the staff resources necessary to move this project through the design phase and continue involvement in discussions relative to future governance of the Nacimiento system following completion of construction. The third area of focus will be to continue to improve our conservation efforts. Efficient use of our resources stretches the availability of our water supplies and has proven to be very cost effective. As part of the 2003-05 Financial Plan, the Council endorsed an expanded water conservation program to achieve long-term water reductions. In addition, as new technology or ideas surface in the future, the City needs to continue to evaluate the potential for conservation strategies to reduce our demand for water. The Council directed staff to defer additional work associated with the Groundwater Project on December 7, 2004. The decision for City participation in the Nacimiento Project and the cost and uncertainty of the additional studies necessary to evaluate increased groundwater pumping impacts were the primary factors supporting deferral of the project at this time. The Council did direct staff to pursue the development and use of groundwater to meet non-potable irrigation needs of commercial or institutional customers where feasible. Relative to desalination, the possible use of desalinated seawater will be a potential project for the City if other less costly options prove unsuccessful. Desalination process efficiency improvements over the past decade have resulted in lower costs for producing potable water from seawater. It is likely that this trend will continue in the future, so pursuit of a desalination project would likely benefit from delaying implementation until the water is actually needed. The Salinas Reservoir Expansion Project has numerous hurdles to overcome prior to construction. Pursuit of the Salinas Reservoir Expansion Project would require significant financial and staff resources. Based on the Council's direction for participation in the Nacimiento Project, staff would recommend that the expansion project be considered as one of the last options. Staff will continue to work with the U.S. Army Corps of Engineers and County staff relative to the transfer of ownership of the dam and property from the federal government to a local agency. Based on the above analysis: if our Tier 1 projects are successful, the City will be able to meet the City's primary and secondary water needs as identified in the General Plan and related Elements through a combination of Water Reuse, Nacimiento, and additional water conservation. - Attachment 1 2005 Water Resources Status Report Page 16 V. PROJECTED WATER SUPPLY SITUATION Reservoir Storage Curve The Reservoir Storage Curve is integral to the City's annual water plan analysis. It is a computer model used to estimate the City's future reservoir storage based on historical drought weather patterns, water use projections, reservoir data and available groundwater supplies. The model is used to forecast the City's water supply position and to make certain water policy recommendations. The model also assumes implementation of Stage I conservation when supplies are projectedto last only three years. Stage II and III conservation measures are implemented when water supplies are estimated to last only 2 years and 1 year, respectively(as shown on Figure 4). The curve has been updated to reflect the City's current storage and the policies contained in the Urban Water Management Plan. The model predicts current water supplies would last until June of 2012 (Figure 4), under a set of assumptions that represent the average weather conditions during the worst four years of the drought period from 1986-91. VI..SUNEM ARY With the significant rainfall this year, both of the City's reservoirs (Salinas and Whale Rock) filled to maximum capacity. Even with these available supplies, the City needs to continue pursuit of additional supplemental water supplies to meet the goals of the General Plan. Based on the cost projections for developing new water supplies, it is evident that water conservation will continue to be a crucial element of the City's water resources planning in the future. With the multi-source water policy, a number of supply projects under development, strong water conservation program and other related policies which were adopted as part of the W.M.E.,the City is pursuing a direction which will create a reliable supply of water to meet the current and future needs of the community. Attachments: 1.Definitions 2.Figures 1-5 Attachment 1 Definitions Safe Annual Yield: The maximum quantity of water which can be delivered from the water source each year during a critical dry period(i.e.historical drought period). Acre Foot: * 1 acre foot = 325,851 gallons * Enough water to cover a football field with 1 foot of water * Enough water to serve approximately 3.5 average single family homes (in San Luis Obispo)per year Gallons per Capita per Day(gpcd): Calculation= Total Acre Feet x 325,851 City Population x 365 Present Water Demand(acre feet per year): Calculation= 145 sped x Current City Population x.365 325,851 Salinas Reservoir: Maximum Storage Capacity=23,842.9 acre feet Minimum Pool= storage amount when water extractions must cease=2,000 acre feet Surface Area=730 acres Drainage Area= 112 square miles=71,700 acres Whale Rock Reservoir: Maximum Storage Capacity=40662 acre feet Minimum Pool=storage amount when water extractions must cease=2,000 acre feet Surface Area=594 acres Drainage Area=20.3 square miles= 13,000 acres Attachment I � Y U sem, O o w 5 s a o U) U O ■ E m t 68'Z£ 981 IC *90/ti0 WOE]O/%%%%%/%%%�%�%////////%%%%%%'!%/%%%%%/ 80'96 £8'Z6 b0/£0 a� y 66'ZZ C� 6Z'6Z £0/ZO %/%%%//%%/O%%O%/ p WS Z6'S6 ZO/IO o tis•6 L �EMEE £s'tiZ 98092 I0/00 L6'VZ FSI L6' 00/66 68'Zz OOMOOMi V9'9 6 £Z'ti 6 66/86 89's uiuld 30 sagaul . , � ® � .� . .� ._ ®m ®®® .� .� ,, _ � • •- � • ®® _ � � • �- e ®® ®� �� �� •- �� ®®® , - Attachment t M N s-, o CL uoprIndod 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lei 11 Cl N 17 O CA GO t�: CO Cn ICT It V 7 V' Ch C`) [h C7 Ch CO � N O T O M - N O N N T O � T � O N O Al T O O -. - ----------- -- -----— __ - __. - - - - Cf) O OT CA N CIO ~ M M n O N -. .. 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