HomeMy WebLinkAbout09/00/1989, 1 - SINGLE FAMILY RESIDENCE WATER ALLOCATION CEILING Im If t� MEETING DATE:
,111"y�M�I�II��mg city of SAy�1 � tUIS QUISpO SEPTEMBER 26, 1989
ITE
Mill COUNCIL AGENDA REPORT "''NUMBER:
FROM: William T. Hetland 0 Prepared by Allen Short
Utilities Director Water Division Manager
SUBJECT: Single Family Residence Water Allocation Ceiling
RECOMMENDATION:
Adopt a resolution amending Resolution No. 6603 which establishes a maximum
water allocation amount of 40 units per billing period for each single
family residence.
OVERVIEW
The purpose of this report is to consider the following two modifications to the current
Mandatory Water Conservation Program
A. Establish an "allocation ceiling" for all single family residential accounts.
B. Increase the lifeline allowance.
As discussed below, it is recommended that an allocation ceiling of 40 units per billing
cycle be established, and that the lifeline allowance remain at 15 units per billing
cycle.
BACKGROUND
The City Council on April 5, 1989 adopted an ordinance and policy resolution declaring a
water shortage emergency condition. This Resolution No. 6603 imposed mandatory water
conservation using a percentage reduction with the seasonal allotment method and a life
line allowance. Listed below are the percentage target reductions which were established
by class of customer for the summer and winter seasons.
PERCENTAGE TARGET REDUCTIONS
Summer Winter
Residential
Single Meter 30 10
Multi-Family 15 10
Commercial/Industrial 10 10
Institutional 40 10
Landscape 70 50
Lifeline Allowance 15 15
The overall goal of the program was to reduce water consumption by 20 percent citywide.
The program established water allocation targets based upon 1987 as the base year.
Additionally, allocation adjustment guidelines and procedures were established to address
those concerns or conditions which were not addressed in the ordinance and policy
resolution. To encourage compliance with the mandatory water conservation program, an
excess water use surcharge was established. The surcharge established by resolution
calls for a 100 percent surcharge on the water bill if the usage is greater than the
allotment but less than the base year. If the usage is greater than the base year a 200
percent surcharge is added to the water bill. l
"I'lloolplill City Of SW� LUIS OBISPO
COUNCIL ACENOA REPORT
Mat Uusd
Page 2
The percentage reduction with seasonal allotment method was recommended by staff and
adopted by the City Council because the program was:
1. Understandable and communicable to the public.
2. Considered to be a fair, rational, and equitable program which would assist the
City in meeting it's overall target reduction goal of 20 percent.
3. Able to be administered with minimal staffing requirements.
To date, the program has been very successful. Eighty-five (85) percent of the accounts
are at or below their target allocation. This equates to an overall reduction in water
consumption of 33 percent since the implementation of the program .
PROGRAM REVIEW
The implementation of the mandatory water conservation program was the first for the
City. To help facilitate our program, City staff extensively reviewed what other utility
companies and cities had experienced. The objective was to identify pitfalls and learn
from past experiences of others. However, staff did realize it was not possible to
develop a perfect program and that it would require review and modification to customize
it to the needs and concerns of the water customers of San Luis Obispo.
In an effort to achieve program equity, the percentage reduction with a seasonal
allotment method was utilized. Additionally, the program takes into consideration class
of user (residential vs commercial) and an allocation adjustment process. This
adjustment process includes guidelines which consider household size, base year, medical
needs, and redistribution of the existing allocation. Due to these enhanced equity
features, the current mandatory water conservation program is relatively complex in
nature. This makes it more difficult to achieve the goals of being easily communicated
to the public and easily administered by the staff.
Presently, City staff has received over 12,500 telephone calls and reviewed over 3,000
requests for allocation adjustments during the past five months of the program. The
major concern which has been communicated by customers is the perceived inequity of the
present method in allocating water. The present system establishes a target allocation
based upon 1987 consumption records. If that year was one of high usage, then the target
allocation will be high. If conservation measures were implemented during or prior to
the base year, the target allocation will be low. For example, same size families with
similar houses and yard sizes may have vastly different water allocations based on their
water use habits during the 1987 base year. This may give the impression that the City
may be unfair to those citizens who have installed water conservation devices and been
extremely careful and conscious of the resource in the past as well as to customers with
smaller lots or outside irrigation needs.
(hese problems were identified when the recommended conservation program was submitted
for council review and adoption at the April 5, 1989. meeting. To address the equity
concerns of the percentage reduction method, the following features were incorporated
into the existing program:
I
o Adjusted for seasonal usage.
o Target reductions by the type of user.
o Lifeline allowance of 15 units.
o Allocation adjustment process ���
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= COUNCIL AGENDA REPORT
Allotment
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Based upon our experience with the current program over the past five (5) months, the
only area of concern which has been expressed is the development of a water allocation
ceiling.
ALTERNATNES
A. DEVELOPMENT OF AN ALLOCATION CEILING
To make the program more equitable, staff has investigated the establishment of a ceiling
in the amount of water units any residential account could obtain. Currently residential
targets range from a lifeline allowance of 15 to a high of 217 billing units. Below is a
table of target usage groups utilizing from zero (0) to fifty (50+) plus billing units
and the number of accounts in each group.
After reviewing numbers and percentages, staff is recommending the establishment of a
maximum limit for water allocation at 40 units. The figures indicate that 83 percent of
the accounts for single family dwellings were targeted below this level. This table is
listed below:
RESIDENTIAL USERS
Customers With Targets Cgunj Percentage
More Than In Any One
Billing Cycle
50 Units 871 9.4
46 Units 1,156 12.5
41 Units 1,607 17.4
36 Units 2,283 24.7
31 Units 3,206 34.7
21 Units 5,865 63.4
16 Units 7,370 79.7
0 Units 9,252 100.0
The average targeted water use in the City of San Luis Obispo is about 20 units in the
summer and 18 units in the winter for a typical residential account with three (3)
occupants. Staff is recommending that a maximum of 40 units be provided to any one
residential household.
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COUNCIL AGENDA REPORT
Allotment
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The modification of the program would establish a maximum allocation for residential use
of 40 units per billing cycle. With the exception of a thoroughly documented medical
examination, absolutely no allocation adjustment above 40 units will be considered or
granted. To encourage compliance with the ceiling, a surcharge of 100 percent would be
applied to the water bill if the usage is greater than the ceiling but less than the base
year usage. If the usage is greater than the base year, a 200 percent surcharge is added
to the water bill as provided under the existing program. For example, if a customer had
the following:
A 1987 usage of 90 units; and
a current target allocation of 63 units; and
if the ceiling limit were imposed the new allocation would be 40 units, then;
a 100 percent surcharge would be imposed for usage above 41 units and up to 90
units.
A 200 percent surcharge would be imposed for usage above 90 units.
Advantases
A modification to the existing program in the form of a ceiling will make the program
appear more equitable, fair and responsive to the concerns of the customers of San Luis
Obispo. It should also encourage further water conservation efforts resulting in an
increase in water savings.
Disadvantases
The change in the program will require that staff develop a public relations program to
effectively communicate the changes and their impact on that portion of the population.
Approximately 17 percent of the accounts (1607 customers) will be negatively affected by
this recommended change in the current program. The reduction may pose a hardship for
certain individuals to comply without penalty because of their lot size, landscape
requirements, and size of household. The City will be asking those individuals to cut
back by a greater percentage than what is being asked other citizens after they may have
already instituted some water conservation measures. Finally, augmented staffing levels
will need to be extended to handle the additional workload which would arise in
processing allocation adjustment forms, answering phone calls and providing the necessary
information.
B. INCREASE THE UFEUNE ALLOWANCE
Additionally, staff has investigated the possibility of increasing the lifeline allowance
from the current 15 to 21 units per billing period. Currently, the hot line personnel
have answered approximately 12,500 phone calls since the implementation of the program.
The public has not raised this issue and does not appear to be concerned with the floor.
Additionally, staff has not received through the allocation adjustment process requests
to increase the lifeline allocation. Staff at this time is not recommending that this
option be implemented or included as part of the Mandatory Water Conservation program.
I
Advantases j
The program does not surcharge people using 15 to 21 units of water.
11101111fW111 city of san Luis osispo
A0094 COUNCIL AGENDA REPORT
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Disadvantages
The current program works extremely well. A change in the program will require extensive
efforts to develop a public relations program to effectively communicate the changes and
their impact on that portion of the population. Approximately 7370 accounts will be
directly affected by this change in the current program. The proposed increase in the
lifeline to 21 units is above the current targeted City average of 20 units in the
summer, and 18 units in the winter. As such, if everyone uses their target allocations
it will be mathematically impossible to achieve the overall target reduction of 20
percent if the current average is less than the floor. The possibility also exists that
with an increase in the lifeline to 21 units, we may see an increase in water usage. The
administration of this modification exceeds the current staffing ability. Based on
recent customer contact experience, we would expect significant telephone response to
this change from the significant number of customers (67%) who have already sacrificed
and achieved these levels.
FINANCIAL IMPACT
A. For the ceiling adjustment there may be a reduction in the water sales revenue
assuming these accounts would conserve more water. The effect on water revenues
cannot accurately be predicted at this time, but it is estimated that there will
be a slight decrease.
B. If the lifeline allowance is increased, there may be an increase in water sales
revenue assuming these accounts would use more water. The effect on water
revenues cannot accurately be predicted at this time but it is estimated that
there will be a slight increase.
RECOMMENDATION
Adopt a resolution amending Resolution Number 6603 which establishes a maximum water
allocation amount of 40 units per billing period for each single family residence.
ATTACHMENT: Resolution
alllimit/cas
I
REso=CN NO. (1989 SERIES)
A RESOILTi'ICN OF THE CITY COMCIL OF THE QTY OF
SAN wis OBISPO AmoboG THE mINDATORY mTER
CONSERVATION IMPLEMERMTION POLICY STAIEME T
WHEREAS, on April 5, 1989 the City Council passed Resolution
No. 6603 implementing the percentage reduction with seasonal
allotment program; and
WHEREAS, the City has determined that Section 1 of Resolution
No. '6603 requiressa program modification.
NOW THEREFORE BE IT RESOLVED by the Council of the City of San
Luis Obispo as follows:
1. Effectivewith all billing cycles beginning October 1, 1989, the
City will establish a maximum water allocation of 40 units per
billing period for any single family residential meter within
• the City service area.
2. To encourage compliance with the ceiling, a surcharge of 100
percent would be applied to the water bill if the usage is
greater than the ceiling but less than the base year. If the
usage is greater than the base year, a 200 percent surcharge is
added to the water bill.
on motion of , seconded_
by , and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of
1989.
ATTEST:
MAYOR RON DUNIN
CITY CLERK PAMELA VOGES
Ji
Resolution No. (1989 Series)
APPROVED:
_ 1� J
t�?C. City Administrative Officer
City Attcpey
Fina ce Director /
Utilities Director
VL
Water Division Manager
alllres
MEETING AGENDA
DATE U2b-- ITEM #
To San Luis Obispo City Council September 23, 1989 '
Mayor Dunin And All Councilmembers
City Hall
990 Palm Street
San Luis Obispo,CA 93401
Dear Mayor Dunin And All Councilmembers, , ;;Dow=ajLead
Respond b
On Tuesday night,September 26th,the City Council Agenda, Item 1, rA
Gi
calls for"Consideration of establishing a maximum water allocation amountof_40 units per.billing period for each single family residence. Staff Amrecommendation is that the Council adopt a resolution establishing such -0"
an allocation change. Yq
On April 28, 1989, a pamphlet describing the City's Mandatory WaterConservation Program was mailed to all City water customers, Later a
letter was mailed to all water customers referring to the pamphlet and
further discussing the individual target water use specifically assigned
to the specific water address"based on usage at your service address for
the comparable period in the base year of 1987'.
Although not without problems,the Conservation Program has done very
well. Public relations on the program went into full gear and publicly
thanked all those who met,or used less than,their allocation totals. The City
ordered and issued to customers t-shirts as rewards for "doing their part".
This success is based on the acceptance by the water customers of a program
deemed to be thought out and as fair as possible to all service customers.
Two of the problems that seem to bother the City the most are the low
allocations given to regular family households that were not served in the
target year 1987 and the complaint by some that a third of the service
customers have overly high allocations. The City has considered increasing
the low"lifeline" allocations and lowering the very high. This agenda item "I
specifically addresses the latter.
I am urging the Council to hold onto the existing format and not change
the rules midway through the program. The acceptance of the program is
critical to it's success. It would be counterproductive to tamper with the
accepted"fairness" of the program, Too much publicity has been given to
ALL those who met,or used less than,their allocations. To now change those same
allocations would be selecting a specific group within the program for
what could be conceived as excessive pressure.
I suggest that the Council discuss and adopt the following measures to
REINFORCE the Conservation Program:
1. By special mail,City Newsletter,Poly's Mustang Daily
articles,Cuesta New articles,and other effective media,
send out the message to all new and returning students, E�
staff,and faculty that the City has a program to conserve c C E'V
water. They should be exposed to the problem as a G
lack-of-resource situation not a money or finance problem. SEp 2 5 1989
CITY CLERK
SAN LUIS OBIS00,CA
2. Send a strong but pleasant and reasonable request to all
service users of 50 billing units per month or more,for a
voluntary decrease in their allocation target. Give an
explanation of the necessity to save more and their unique position
of being able to do more. Discuss a possible questionnaire,to be
included with the letter,to determine why each is using over 50 units
per billing period.
3. That"lifeline" adjustments be given to those requesting
them up to 20 units"with cause". Following the
original program applications should be made, but any
reasonable cause should be accepted for the base.increase.
4. That a strong letter be sent to all service users that did not
hold to their allocations voicing the City's concern and
following up on the original programs procedures.
These measures should be accepted by all service customers as a reasonable follow-up
to the original program. The measures should be issued as such ... complementary to
the program- a reinforcement of the program they are supporting ... supporting with
the expectation that their efforts will be rewarding to the City.
Some discussion should be given to the feeling that is beginning to surface that
citizens are becoming weary of the program. Some are tiring of hauling their buckets
of shower water around the house. I think that theywill.hang in there as long as they
perceive the program as being administrated fairly and consistently. They willnot
like a change in the rules at this point. The only real acceptable change would be one
of total change to all categories as a full crises measure,which if it does not rain,will
come soon enough.
Thank you for your thoughtful consideration,
Barry M.Karleskint
623 Jeffrey Drive
San Luis Obispo,CA 93401