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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
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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
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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.
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Figure 2:Construction Water Program Wharf-head Hydrant Locations
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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
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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
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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
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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
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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