Loading...
HomeMy WebLinkAbout05/05/2009, PH2 - PROCEDURES FOR RECYCLED WATER USE councit �1 . �� j acEnba aEpont �N P14 CITY OF SAN LUIS OBISPO FROM: Came Mattingly, Utilities Director Prepared By: Jennifer Metz, Utilities Project Manager SUBJECT: PROCEDURES FOR RECYCLED WATER USE RECOMMENDATION 1. Introduce an ordinance adding Section 13.24.20 to the City's Municipal Code regarding Procedures for Recycled Water Use; 2. Adopt a Resolution establishing fees for Construction Water Permits to take effect upon the effective date of the above ordinance DISCUSSION Background The City adopted a mandatory use ordinance for recycled water in 2001. This policy, codified in the City's Municipal Code as Chapter 13.24, allows the City to require the use of recycled water on parcels when the following criteria are met: 1. Recycled water is available for delivery to the property in compliance with all applicable federal, state, and local laws, ordinances and regulations and 2. Recycled water can be delivered to the property at an overall cost to the user which does not exceed the overall cost of potable water service. The City's 2004 Water Reuse Master Plan identified the areas of the City to be served with recycled water. The City completed construction of the initial eight miles of the recycled water distribution system in 2006. The distribution system extends east, west, and south from the City's Water Reclamation Facility in the southern portion of the City. It provides recycled water to users along the easterly City limits on Tank Farm Road and to the westerly City limits on Los Osos Valley Road (see Attachment 1). At build out, the system will provide its customers approximately 1,000 acre feet per year of recycled water. The City operates its recycled water program under Waste Discharge/Master Reclamation Requirements Order No. R3-2003-081 from the Regional Water Quality Control Board. Consistent with these requirements, each recycled water customer must obtain a permit prior to utilizing recycled water. To communicate the permit requirements to the public, the City is to provide a manual. The City's recycled water permit requirements are provided in the Procedures for Recycled Water Use (Procedures) which were developed by City staff consistent with all applicable federal, state, and local laws, permits and regulations, including Titles 17 and 22 of the California Code of Regulations. The proposed ordinance, modifying. Chapter 13.24 (Recycled I � ' Procedures For Recycled Water Use Page 2 Water Service) of the Municipal Code (Attachment 1), identifies specific procedures to implement and manage the City's recycled water program Procedures for Recycled Water Use Summary The Procedures includes four main sections to guide the use and application of recycled water as identified below: 1. Use of Recycled Water in City 2. System Design, Installation &Inspection 3. System Operation & Maintenance 4. Recycled Water for Construction Uses Sample forms are provided including applications for recycled water service, quarterly site inspection forms, and application for a construction water permit. Recycled Water for Construction Uses Construction water is a permitted use of recycled water within City limits. Water is used at construction sites for soil compaction, dust control, etc. The City prohibits potable water from use in major construction activities, such as grading and dust control. The City has a non-potable well, located near the Corporation Yard off of Prado Road, where carriers who serve construction sites can fill water trucks at no charge. Due to the popularity of the water source, the water pressure available at the well, and limited availability of non-potable water, often a line up of water haulers is waiting to fill their tanks at this location. The City has had interest from contractors in the use of recycled water for construction purposes. The Procedures include permit requirements for the use of recycled water for construction purposes. Through the recycled water distribution system and the Construction Water Permit Program, recycled water would be made available to permitted water haulers for construction purposes at four locations. Similar programs implemented by other water purveyors in California vary from offering recycled water for construction purposes with no fee, issuing hydrant meters to track recycled water usage, and collecting monthly logs of recycled water usage from permit holders. Staff has concluded that a permit with a flat annual fee could keep administrative costs to a minimum, provide contractors an alternative to the existing non-potable well, and utilize available recycled water supply and the existing distribution system. FISCAL IMPACT There are no fiscal impacts associated with the adoption of the Parts 1 through 3 of the Procedures. Part 4 of the Procedures includes the proposed requirements for construction water use. The Construction Water Permit is proposed to have an annual fee of $1,260 (see Attachment 2). A detailed fee justification is provided in Table 1, page 3 of this staff report. Assuming 12 construction water permits are issued each year, the annual permit fee should recover the Construction Water Permit Program start up costs (over ten years), annual administrative costs N a-;� Page 3 Pater Use Procedures For Recycled W a U g and the cost of 200 units of water per permit holder. Based on these assumptions, the Construction Water Program fees will generate approximately$15,000 in gross revenue annually. Staff will revisit the annual administrative costs to implement the Construction Water Permit Program as well as the metered usage of recycled water to determine if any future adjustments to the annual fee are warranted. CONCURRENCES The Utilities staff worked with Finance staff on a protocol for new accounts for the Construction Water Program. The Utilities staff worked with Community Development staff on signage for the wharf-head hydrant locations. Utilities staff will work with Public Works staff related to concerns over the location of one of the four existing wharf-head hydrant locations. These Departments concur with the recommended action. ATTACHMENTS 1. Water Reuse Distribution System and Hydrant Location Map 2. Construction Water Fee Justification 3. Ordinance 4. Resolution AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE Procedures for Recycled Water Use P�� a �3 Attachment 1 LEGEND Water Reuse Distribution Line ® Construction Water Program Hydrant Locations -Calle Joaquin -Prado Road -Industrial Way -Tank Farm Road City of San Luis Obispo Utilities Department,2009. -j ------------ I I 1 i p I I \ I s • I j I I i - " i . ,.` MARGARITA 1 - AREA f I ' • J ' ORCUTT s, AREA J� AIRPORT _ • AREA r. ---_------ ----' �• i DO i I 6 O O Figure 2:Construction Water Program Wharf-head Hydrant Locations TTNa -�f ATTACHMENT 2 Table 1: Construction Water Permit Program Fee Justification A.START UP COSTS: Utilities Department: Materials: Meters for existing wharf-head hydrants $ 3,680.00 Misc.Metering Components $ 360.00 Rock for roadwork(hydrant pull out areas) $ 1,000.00 Meter Installation(staff time): Hourly #Hours Total Water Distribution Supervisor $ 103.34 6 $ 620.04 Water Distribution System Operator $ 72.19 30 $ 2,165.70 Finance Department: Establish new program accounts(staff time): Revenue Supervisor $ 96.81 5 $ 484.05 Accounting Assistant $ 57.62 5 $ 288.10 Total Start-up Costs: $ 8,597.89 Start Up Cost Recovery(over 10 years) $ 859.79 Start Up Cost Recovery(assumes 12 permit holders) $ 71.65 B.ANNUAL ADMINISTRATIVE COSTS: Utilities Departments(staff time) Training Hourly #Homs Total Utilities Project Manager $ 104.00 12 $ 1,248.00 Meter Reading Water Distribution Customer Service $ 72.19 12 $ 866.28 Maintenance Water Distribution Supervisor $ 103.34 2 $ 206.68 Water Distribution System Operator $ 72.19 18 $ 1,299.42 Enforcement Utilities Project Manager $ 104.00 4 $ 416.00 Utilities Conservation Technician $ 73.99 12 $ 887.88 Reporting Utilities Project Manager $ 104.00 4 $ 416.00 Finance Department:(staff time) Fee Collection,Renewal Invoices Accounting Assistant $ 57.62 5 $ 288.10 Total Annual Administrative Costs: $ 5,628.36 Administrative Costs(per Permit): $ 469.03 C.CONSTRUCTION WATER COST: #Permit Holders Recycled Water Usage Annual Per Permit Water Use Construction Water Permit Holders 12 200 units* 2,400 units Annual Recycled Water Usage Costs: $ 9,048.00** Recycled Water Usage(per permit): $ 754.00 NOTES: 'One unit of water equals 748 gallons,therefore 200 units=approx. 150,000 gallons.Water trucks have various sized water tanks(1000,2000,4000,5000+gallons). The cost for one unit of recycled water is$3.77 Summary of Costs-Permit Fee Justification Recovery of Start-up Costs(Over 10 Years) $ 71.65 Annual Administrative Costs $ 434.36 Annual Water Use Costs $ 754.00 Total Annual Permit Fee $ 1,260.01 Total Program Revenue $15,120.15 P-�a 5 i Attachment 3 ORDINANCE NO. (2009 Series) AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ADDING SECTION 13.24.20 TO THE SAN LUIS OBISPO MUNICIPAL CODE REGARDING RECYCLED WATER USE WHEREAS, the California Legislature declared that recycled water should be encouraged as a new water supply necessary to meet the future water needs of the State and use of potable domestic water for nonpotable uses that are approved by the State for recycled water use may constitute waste or an unreasonable use within the meaning of the California Constitution, Article X, Section 2 if recycled water is available at a reasonable cost (Water Code §§ 13510 et seq. and 13550 et seq.); and WHEREAS, by Ordinance 1403 (2001 Series), it is the policy of the City that when in the judgment of the City, recycled water service can be feasibly provided to a particular parcel for particular uses, the Utilities Director shall require the use of recycled water in lieu of potable water for those uses. As used in the policy, the term "feasible" means recycled water is available for delivery to the property in compliance with all applicable federal, state and local laws, ordinances and regulations and such recycled water can be delivered to the property at an overall cost to the user which does not exceed the overall cost of potable water service; and WHEREAS, in 2002 the City Council established by resolution a rate for the sale of recycled water equivalent to 90 percent of the potable water rate; and WHEREAS, in 2004 the City approved the Water Reuse Master Plan including the identification of a recycled water use area, and the expansion of a distribution system to provide incremental increase in recycled water available for nonpotable uses; and WHEREAS, in 2006 the City completed construction of a Water Reuse Project which consists of infrastructure facilities (distribution pipelines,pump stations, an underground storage tank and appurtenant facilities) to deliver disinfected tertiary treated recycled water from the Water Reclamation Facility to customers for irrigation, construction uses such as grading and dust control, and other uses;and WHEREAS, the purposes of the Water Reuse Project are to reduce demand for potable water and to provide an alternative source of supply. NOW,THEREFORE,BE IT ORDAINED by the City Council as follows: SECTION 1. Section 13.24.20 (Use and Distribution of Recycled Water) is hereby added to Chapter 13.24 (Recycled Water Service) of Title 13 (Public Services) of the City of San Luis Obispo Municipal Code to read: 13.24.20 Use and Distribution of Recycled Water The use and distribution of recycled water shall be in accordance with the City's Procedures for Recycled Water Use and all applicable federal, state and local laws, permits and regulations, including Titles 17 and 22 of the California Code of Regulations, as may be amended from time to time. _ Attachment 3 Ordinance No. (2009 Series) Page 2 SECTION 2. Severability. If any subdivision, paragraph, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the City's rules and regulations. It is the City's expressed intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses or phrases be declared invalid or unenforceable. SECTION 3. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty(30) days after its final passage. INTRODUCED on the day of 2009, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the day of 2009, on the following roll call vote: AYES: NOES: ABSENT: Mayor David F. Romero ATTEST: Audrey Hooper City Clerk APPROVED AS TO FORM: Jonathan P. Lowell City Attorney Attachment 4 I RESOLUTION NO. (2009 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING CONSTRUCTION WATER PERMIT FEES WHEREAS, Section 13.07.070 (Water Use Reduction) of Chapter 13.07 (Water Conservation) of Title 13 (Public Services) of the San Luis Obispo Municipal Code prohibits use of potable water in major construction activities, such as grading and dust control; and WHEREAS, the City currently provides, at no charge, non-potable water for construction purposes at the Corporation Yard; and WHEREAS, the use of recycled water, in-lieu of Corporation Yard well water, will help preserve groundwater resources, alleviate truck traffic across the City, and provide improved service for customers; and WHEREAS,the City installed wharf head hydrants to supply recycled water for construction and other purposes as part of the Water Reuse project; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that: SECTION 1. The annual rate for a Construction Water Permit is hereby set at$1,260 per year. SECTION 2. This Resolution shall take effect upon the effective date of the Ordinance No. XXX (2009 Series) adding Section 13.24.20 to the San Luis Obispo Municipal Code regarding Procedures for Recycled Water Use. Upon motion of , seconded by and on the following voter AYES: NOES: ABSENT: The foregoing resolution was adopted this day of 2009. Mayor David F. Romero ATTEST: R Attachment 4 Resolution No. (2009 Series) Page 2 Audrey Hooper City Clerk APPROVED AS TO FORM: Jonathan P. Lowell City Attorney R FA a RED FILE Page 1 of 2 MEETING AGENDA DATEZLgLOATEM #-2.L-2, Coun®1,SloCity o From: Terry Mohan [catsdad@sbcglobal.net] COUNCIL 91 on /2009 2:21 PM To: Council, SloCity CAO IN DIA Cc: ACAO .]-FIRE CHIEF RECEIVED Subject: ATTORNEY PW DIR Construction water Permit Fees CLERK/OAIG POLICE CHF MAYO 5 2100'9 Attachments: DEPT HEADS f�-REC DIR fa P"� SLO CITY CLERK Council members f i� __77L.a, �,,r - UTIL DIR _ _ :• qPHR DIR � �ELcJ?/iy�as X C'ocu.•G-C..L. Yc�/TH /1si7N/lb E2 mac.L /1y C�E/2 While I do not object to offering recycled water for construction uses the figures that the staff uses in their analysis seems to be short changing the taxpayer. Using these figures the cost of an acre foot of recycled water is $1641. This contradicts sharply with the figure John Moss had given for recycled water that would have been closer to the projected cost of Nacimiento Water which is $2000 per acre foot. Is the staff just using the cost of treating the recycled water while leaving the fee for all of the infrastructure to the taxpayers? If the Municipal Code is to be followed shouldn't this water be sold at 90% of potable water? With the proposed rate of potable water in these quantities going for $5.87 per unit wouldn't the adequate rate to recover taxpayer investment be more like $5.28 per unit? This increase in price should be offset by the fuel the contractors will save by going to the closer filling sites and supply extra funds to repair streets used by these construction vehicles. How do we know if contractors using water from city sources are using that water in the city and not on projects in the county as there is no one there to monitor them? If a contractor has an average 3000 gallon tanker it.would entitle them to 50 loads of water per year. This does not seem like it would be enough to satisfy the needs of a project like Chinatown or the Gap property nor keep a contractor in business. How will we know when a contractor reaches their limit of 200 units under the new program? Will they be charged another annual fee to continue drawing water? This appears to be another strategy to promote growth in the city at taxpayers expense. I remind you again of the failure of previous plans relying heavily on sales and TOT taxes. With the city already running a thirty percent deficit due to these policies I would caution you to get the facts concerning this water giveaway before signing off on it. How many water hauling contractors currently use the Prado facility? Can water contractors bring water from outside the city to use on projects inside the city? What are the odds of getting twelve contractors to pony up $1260 per year for ten years? Otherwise taxpayers will have to foot the rest of the bill. Other than a scheduling problem at the Prado hydrant there is sufficient water for construction uses and contrary to the staff report the pressure appears to be adequate. Wouldn't it be cheaper to assign a current staff person for the contractors to call to set up appointments when trucks should come to fill up? At twelve a day it does not seem to be an overwhelming added responsibility. Or charge a fee to the contractors to hire a scheduler/utility maintenance worker. It would be cheaper than $1260 per year. https://mail.slocity.org/exchange/slocitycouncil/Inbox/Construction%20 Water%20Permit%... 5/5/2009 Page 2 of 2 Terry Mohan 2416 Santa Clara San Luis Obispo, CA 93401 https://mail.slocity.org/exchange/slocitycounciVInbox/Construction%20 Water%20Permit%... 5/5/2009