Loading...
HomeMy WebLinkAbout09/05/1989, 3 - AMEND THE GENERAL PLAN WATER AND WASTEWATER MANAGEMENT ELEMENT AND THE WATER ALLOCATION REGULATIONS 111h�IWl�lyy SDI MEETING DATE: II1I111MI I�� CIty O f San LUIS OB�SPO Sept. s 1989 M01000 M10COUNCIL AGENDA REPORT FROM: Randy Rossi, Interim Community Development Director BY: Glen Matteson, Associate Planner SUBJECT: Amend the general plan Water and Wastewater Management Element and the Water Allocation Regulations concerning when new water sources can be counted toward city supplies (GP 1456). CAO RECOMMENDATION Adopt the attached resolution and introduce the attached ordinance, in summary form, to approve a negative declaration of environmental impact and to amend the element and the regulations so new sources will be counted only when they can actually provide water to the city water system. DISCUSSION The city's adopted Water and Wastewater Management Element of the general plan and its Water Allocation Regulations say that a prospective water source may be counted toward safe yield, and part of its yield may allocated to development projects, after (1) environmental review has been completed, (2) the City Council has approved construction documents, and (3) the Utilities Director determines that it could provide the yield within one year. The City Council has initiated an amendment to these documents that would allow new sources to be counted only when they can actually provide water to the city water system. The Planning Commission has held a hearing on the proposal and has recommended approval. SIGNIFICANT IMPACTS No significant impacts on water service, city finances, the environment, or the development process are expected. CONSEQUENCES OF NOT TAKING ACTION If the council does not adopt the recommended change, the risk of over extending the city's water supply will be slightly higher. ����► i�Nlll�ll�� �l MY of San"IU1S OBISp0 - Run COUNCIL AGENDA REPOFI T Water regulations amendment �� 1 Page 2 BACKGROUND Situation The city's adopted Water and Wastewater Management Element of the general plan and its Water Allocation Regulations say that a prospective water source may be counted toward safe yield, and part of its yield may allocated to development projects, after (1) environmental review has been completed, (2) the City Council has approved construction documents, and (3) the Utilities Director determines that it could provide the yield within one year. The City Council has initiated an amendment to these documents that would allow new sources to be counted only when they can actually provide water to the city water system. Beginning in 1984, city water use has exceeded the supplies which can be counted on during a drought. In response to declining reservoirs, water use in excess of safe yield, and continued high levels of construction, the city adopted water allocation policies and rules. The rules restrict issuance of building permits, with the aim of eventually getting normal water demand Ievels and reliable supply levels in balance. Doing so would avoid rationing during dry periods. The safe yield of the city's existing supplies is about 7,800 acre-feet per year (AFY). Normal demand is about 8,200 AFY, based on pre-rationing water use levels and projects under construction. In adopting the Water Allocation Regulations, the council decided that normal annual water demand would be allowed to increase by about 233 acre-feet, even if no additional sources could be obtained. Nearly all of that water was allocated between July 1988 and June 1989. The current regulations also say that the first 147 acre-feet of additional permanent water supplies obtained by the city will be credited to achieving a closer balance, and that thereafter new supply will be split half-and-half between getting in balance and supporting additional development. Five groundwater wells yielding about 450 acre-feet have gone through environmental review and have been approved by the council as permanent sources of supply, resulting in about 150 acre-feet to date being placed in reserve for allocation to development projects after June 1989. The 500 acre-feet added yield from "cooperative use" of the Salinas and Whale Rock reservoirs was accounted for before the regulations took effect. Temporary and emergency yields from the several wells which have been offered or drilled in the last few months have not been counted toward safe yield yet because environmental review has not been completed and the council has not authorized their permanent connection with the city water system. The most recent well proposals were granted "categorical exemptions" as temporary, emergency sources, with the understanding that full environmental review would be completed before they could be counted as permanent supplies. Staff believes that all wells being used or investigated by the city could produce over 2,000 AFY, based on past production of established wells and short-term pump tests of new - wells. However, a hydrologist's study (Wallace and Cleath, 1988) concludes that less than 2,000 AFY is available as a sustained yield from the multiple-part groundwater basin. CX �j 'oL l���� City of San ui s OBI SPO COUNCIL AGENDA REPORT Water regulations amendment Page 3 Under a recent amendment to the regulations, so long as mandatory conservation (rationing) is in effect, water allocations can be given only to those building-permit applications for which certain types of planning applications had been submitted by March 15, 1989, no matter how much water is in reserve for allocation. Mandatory conservation is expected to be in effect at least through winter 1990. Projects needing about 112 acre-feet are eligible for allocations under this exception, and will receive them as they apply for building permits. Besides relating the amount of new demand to new supply, the regulations limit how fast water can be allocated to construction projects. They say that when normal use exceeds safe yield, allocations cannot exceed two percent of July 1 safe yield, plus carryover of any unused allocation potential from the previous year. This limit means that even if the city obtains additional permanent supply and rationing ends during the coming year, only slightly more than now in reserve can be allocated during the next 12 months. Several types of projects are exempt from needing allocations, though they cumulatively add to water demand. Evaluation The proposed approach is one of several which were considered when the element was last amended and the regulations were adopted. However, the council wanted to avoid a moratorium, and one way to do so was to count anticipated sources toward safe yield. As discussed in the water element, all these decisions are based on assessments of acceptable risk in providing an acceptable level of water service. Under the existing rules, factors tending to reduce the risk of worsening the supply-demand imbalance are: The interval between assignment of a water allocation when a project applies for a building permit and when the project is occupied and using water, generally six to 18 months depending on the type and size of project; The rule allowing only one-half of added yield to be allocated to development; The Utility Director's professional responsibility in determining the yield and expected availability of new sources. The following uncertainties would entail risk even with the proposed amendment. The political, legal, and weather influences for surface water sources; The quantity and quality of groundwater, despite initial well test results. Overall, the amendment is expected to improve water service. It will slow the rate at which water service can be provided to new development. It will make the supply more reliable and probably of higher quality for those existing and new developments which do receive service, since there will be less temptation to become dependent on unproven sources. The amendment is worded "can deliver water through the city water system" crty of sa►rfluis osispo COUNCIL AGENDA REPORT Water regulations amendment Page 4 because there may be sources that would truly increase safe yield, but which would not feed water into the system right from the start or continuously. The new wells which have been developed as permanent sources are examples. The Utilities Department would prefer to draw on them only when they are needed to supplement reservoirs, not every year. We would not add or subtract their yields each time the pumps are switched on or off. Approving or denying the amendment will not affect the extent of cut-backs in water use which may be needed this fall. Likewise, conservation achieved during the drought and rainfall received this coming winter will only slightly affect the long-term conditions which the Water Allocation Regulations are intended to deal with. An initial environmental study has been prepared and the Community Development Director has approved a negative declaration. CITIZEN PARTICIPATION The Planning Commission, at its August 9 hearing, voted six to zero (one absent) to recommend that the proposed amendment be approved. Commissioners also supported counting safe yield from wells only after its reliability (no overdrafting) has been proved. One citizen spoke at the hearing, suggesting that well yields not be estimated until they have been pumped for six months, during which an initial decline in yield is often observed. ALTERNATIVES The council may determine that it has sufficient environmental information to take action, or it may require more information (expanded initial study or environmental impact report). The council may introduce the proposed amendment, introduce it with changes, or reject it. The council may continue action. OTHER DEPARTMENT REVIEW The Utilities Director supports the proposed amendment. STAFF RECOMMENDATION Adopt the attached resolution and introduce the attached ordinance, in summary form, to (1) approve a negative declaration of environmental impact and (2) amend the general plan Water and Wastewater Management Element and the Water Allocation Regulations, so new sources will be counted only when they can actually provide water to the city system. Attachments: Draft resolution; draft ordinance; initial environmental study; draft Planning Commission minutes (8-9-89) gm3:gp 1456cc � 1 C RESOLUTION NO. (1989 Series) A RESOLUTION OF THE SAN LUIS OBISPO CITY COUNCIL AMENDING THE WATER AND WASTEWATER MANAGEMENT ELEMENT CONCERNING COUNTING NEW WATER SOURCES (GP 1456) WHEREAS, the Planning Commission and the City Council have held public hearings on the proposed amendment in accordance with the California Government Code; and WHEREAS, the amendment comes to the council upon the recommendation of the Planning Commission; and WHEREAS, the potential environmental impacts of the amendment have been evaluated in accordance with the California Environmental Quality Act and the city Environmental Guidelines. NOW, THEREFORE, the council resolves as follows: SECTION 1. Finding. The proposed amendment maintains general plan internal consistency and promotes the public health, saftey, and welfare. SECTION 2. Environmental determination. An intial environmental study (ER 49-89) has been prepared and the council hereby approves a negative declaration. SECTION 3. Adoption. The the general plan Water and Wastewater Management Element text is amended as fully contained in the attached Exhibit A. The Community Development Director shall cause the change to be reflected in the documents published by the city. 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. Mayor ATTEST: CCity Clerk 3-s Resolution No. (1989 Series) Page 2 APPROVED: City Ad inistrative Officer City Attorn Community Development Director 9 In tia4, C� Utilities Director gm4: 1456-res O Resolution No. EXHIBIT A Program 2.4 The city will adopt regulations which establish allowed increases in water use for new development and which allocate any allowed increase, consistent with this element. (1) So long as normal city water use exceeds safe yield, the amount of water available for allocation to new development at any time will not exceed: 147.1 acre-feet (two percent of July 1988 safe yield); plus 11 acre-feet (remaining from the 1987-88 allocation); plus One-half of any additional safe yield obtained after July 1, 1988, less 147.1 acre feet (repaying the "water credit" extended in anticipation if added supply during 1988-89); minus All water allocated after July 1, 1988. - (2) So long as water use exceeds safe yield, all allocations of water to new development will not exceed an increase in city water use during any year (July 1 to June 30) greater than two percent of then-current �= safe annual yield. (3) The regulations may provide a special reserve, separate from the limitations of parts I and 2 above, for tenant improvement and use changes in existing buildings and for development in large, phased projects which have made substantial commitments to public facilities in anticipation of development. Initially, this special reserve shall not exceed about 74 acre-feet (one percent of July 1988 safe yield). Once the 147-acre-foot "credit" of part (1) as been deducted from any added yield, the council may increase the special reserve by not more than 74 acre-feet. (4) The safe yield of a supplemental source will be included only when earn of thesei eepuFr-ed.- as- ; the Aaw-source can ceuld-deliver water Within Gae y4aiL throueh_the.city water system. (5) The estimation of city water use will employ additions of allocated water to use levels of an average, base year, to avoid fluctuations in measured water use due to relatively short-term economic or weather conditions. The regulations will allocate water-use increases to specific developments, within various land-development categories. Residential uses will be provided at least 66 percent of total water capacity to be allocated. Within the residential category, projects affordable to low- or moderate-income households will have highest priority. Further, the regulations will assure that no single project can receive all available water and that projects which make offsetting water-use reductions in existing development equal to twice their expected water use may proceed independently from the allocation system. The regulations will take priority over previously adopted regulations or specific-plan provisions concerning growth management. gm4:1456-RXA ORDINANCE NO. (1989 Series) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING THE WATER ALLOCATION REGULATIONS BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. The Council makes the following findings. 1. The council has adopted a Water and Wastewater Management Element of the general plan, to guide the conservation, use, and development of water supplies, consistent with goals of the general plan. These regulations are consistent with the general plan. 2. This amendment is necessary to protect the public health, safety, and general welfare. Specifically, this amendment is needed to assure that increased water use due to additional land development will not jeopardize adequate water service to both existing users and new users, including minimum amounts of water for fire protection, personal consumption and sanitation, the operations of businesses, industries, and public services, and landscape irrigation.. 3. The city has prepared and the Council has considered an initial environmental study (ER49-89), in accordance with the California Environmental Quality Act and state and city environmental impact procedures and guidelines. SECTION 2. Environmental determination 1. The council hereby determines that there will be no significant impacts and approves a negative declaration. SECTION 3. Adoption. Municipal Code Chapter 17.89, Water Allocation Regulations, is amended as fully contained in the attached Exhibit A, included herein by this reference. SECTION 4. Publication and effective date A summary of this ordinance, approved by the City Attorney, together with the names of councilmembers voting for and against, shall be published once, at least three (3) days prior to its final passage, in the Telegram-Tribune, a newspaper published and circulated in this city. A copy of the full text of this ordinance shall be on file in the office of the City Clerk on and after the date following introduction and passage to print and the copy shall be available to any interested member of the public. This ordinance shall go into effect thirty days after final passage. I O Ordinance No. INTRODUCED AND PASSED TO PRINT in summary form by the Council of the City of Sar Obispo, at its meeting held on the day of 1989, on motion of seconded by and on the following roll call vote: AYES: NOES`. ABSENT: May OATTEST: City Clerk APPROVED: City dminstrative Officer City Attorn Community Development Director O �0L Utilities Director gm4:1456ord Ordinance No. EXHIBIT A 17.89.050 Allowed water-use increases. A. General reserve categories The following general reserve categories are created: general residential, affordable residential, nonresidential (see Section 17.89.020 for definitions). (1) Initial reserve amounts: Upon July 1, 1988, the reserves shall have the following amounts. (a) Residential development: 101.0 acre-feet. (b) Affordable residential development 17.9 acre-feet. (c) Nonresidential development: 40.0 acre-feet. (2) Deletions from these reserves shall be made as follows: (a) On September 1., 1988, the amount of expected water.-use increases for: (i) those developments which have obtained construction permits between July I, 1988, and September 1, 1988, and (ii) those developments which submitted complete construction permit applications before.September 1, .1988, whether or not they have obtained construction permits. (b) Whenever an allocation is made after September 1, 1988. (3) Additions to these reserves shall be made when oroiects increasing safe vield can deliver water through the city water system ^ '^^-�^^^^ '- safe al yiGld arc , according to the following factors times the added safe yield: (a) Between July 1, 1988, and when the first 147.1 acre-feet of additional yield have been obtained: zero. (b) After the first 147.1 acre-feet of additional safe yield have been obtained (following July 1, 1988): (i) Residential: 0.28; (ii) Affordable residential: 0.05; (iii) Nonresidential: 0.17. Additions may also be made pursuant to Section 17.89.060.C. gm4: .1456OXA 'P [SYNOPSIS] Ordinance No. WATER ALLOCATION REGULATIONS AMENDMENT On 1989, the San Luis Obispo City Council voted to introduce Ordinance No. (1989 Series). This ordinance amends the Water Allocation Regulations, which relate allowed construction to water availability. Currently, the regulations say a new water source may be counted toward safe yield, and part of its yield may allocated to development projects, after (1) environmental review has been completed, (2) the City Council has approved construction documents, and the city utilities director determines that it could provide the yield within one year. Under the proposed amendment, a new source could be counted only when it could actually provide water to the city water system. The council must vote again to approve the ordinance before it can take effect. That action is tentatively scheduled for , 1989, at a regular City Council meeting to begin at 7:00 p.m. in the Council Chamber of City Hall, 990 Palm Street. Copies of the complete ordinance are available in the City Clerk's Office at City Hall, 990 Palm Street. For more information, contact the Community Development Department at 549-7160. Pamela Voges, City Clerk [gm4:1456-syn] city of San 1UIS OBISpo INITIAL STUDY OF ENVIRONMENTAL IMPACT SITE LOCATION r i ty of San I i i i c nh icpyn APPLICATION NO. FR 4Q-RO PROJECT DESCRIPTION Amend the general plan Water and Vlastewater Management Element and the Water Allocation Regulations so that new water sources will be counted toward safe yield only when they can actually provide water. APPLICANT City of San Luis Obispo STAFF RECOMMENDATION: X NEGATIVE DECLARATION MITIGATION INCLUDED EXPANDED INITIAL STUDY REQUIRED ENVIRONMENTAL IMPACT REPORT REQUIRED PREPARED BY Glen Matteson, Associate -Planner DATE .I i 1 14 1 . -1980 COMMUNITY DEVELOPMENT DIRECTOR'S ACTION: DATE 7-26-89 Negative Declaration SUMMARY OF INITIAL STUDY FINDINGS I.DESCRIPTION OF PROJECT AND ENVIRONMENTAL SETTING 11.POTENTIAL IMPACT REVIEW POSSIBLE ADVERSE EFFECTS A. COMMUNITY PLANS AND GOALS ..................................................... NO B. POPULATION DISTRIBUTION AND GROWTH.................... * NO C. LAND USE .................7......................................................... NO D. TRANSPORTATION AND CIRCULATION .............................................. NO E. PUBLIC SERVICES ..._............................................._.................. NO* F. UTILITIES........................................................................ G. NOISE LEVELS ................................................................... NO H. GEOLOGIC&SEISMIC HAZARDS&TOPOGRAPHIC MODIFICATIONS .................... NO I. AIR QUALITY AND WIND CONDITIONS............................................... N(1 J. SURFACE WATER FLOW AND QUALITY ................................................ K. PLANT LIFE ............................................................... L. ANIMAL LIFE..................................................................... NQ M. ARCHAEOLOGICAL!HISTORICAL ................................................... pIQ N. AESTHETIC ........................_............................................. D10 O. ENERGY/RESOURCE USE .......................................................... NO P. OTHER .......................................................................... III.STAFF RECOMMENDATION 'SEE ATTACHED REPORT Qsaes UINITIAL ENVIRONMENTAL STUDY WATER REGULATIONS AMENDMENT CONCERNING COUNTING NEW WATER SOURCES DESCRIPTION OF PROJECT AND ENVIRONMENTAL SETTING The city's adopted Water and Wastewater Management Element of the general plan and its Water Allocation Regulations say that a prospective water source may be counted toward safe yield, and part of its yield may allocated to development projects, after environmental review has been completed, the City Council has approved construction documents, and the Utilities Director determines that it could provide the yield within one year. The City Council has initiated an amendment to these documents that would allow new sources to be counted only when they can actually provide water. Beginning in 1984, city water use has exceeded the supplies which can be counted on during a drought. In response to declining reservoirs, water use in excess.of safe yield, and continued high levels of construction, the city adopted water allocation policies and rules. The rules restrict issuance of building permits, with the aim of eventually getting normal water demand levels and reliable supply levels in balance, so ' substantial reductions from normal water use will not be required during dry years. Safe yield is about 7,800 acre-feet per year (AFY). Normal demand is about.8,200 AFY, based on pre-rationing water use levels and projects under construction. In adopting the regulations, the council decided that normal annual water demand would be allowed to increase by about 233 acre-feet, even if no additional sources could be obtained. Nearly Uall of that water was allocated between July 1988 and June 1989. The regulations also say that the first 147 acre-feet of additional permanent, water supplies obtained by the city will be credited to achieving a closer balance, and that thereafter new supply will be split half-and-half between getting in balance and supporting additional development. Five groundwater wells yielding about 450 acre-feet have gone through environmental review and have been approved by the council as permanent sources of supply, resulting in about 150 acre-feet being placed in reserve for allocation to development projects after June 1989. The 500 acre-feet added yield from "cooperative use" of the Salinas and Whale Rock reservoirs was accounted for before the regulations took effect. Temporary and emergency yields from the several wells which have been offered or drilled in the last few months have not been counted toward safe yield yet because environmental review has not been completed and the council has not authorized their permanent connection with the city water system. (The most recent. well proposals were granted "categorical exemptions" as emergency projects, with the understanding that full environmental review would be completed before they are counted as permanent supplies.) Engineers have indicated that all wells being used or investigated by the city can produce over 2,000 AFY based on past production of established wells and short-term pump tests of new wells, though a hydrologist's study (Wallace and Cleath, 1988) concludes that less than 2,000 AFY is available as a sustained yield from the multiple-part groundwater basin. C Under a recent amendment to the regulations, so long as mandatory conservation (rationing) is in effect, water allocations can be given only to those building-permit applications for which certain types of planning applications had been submitted by March 15, 1989, no matter how much water is in reserve for allocation. (Mandatory conservation is expected to be in effect at least through winter 1990.) Projects needing about 112 acre-feet are eligible for allocations under this exception. ,j ER 49-89 Page 2 In addition to relating the amount of new demand to new supply, the regulations limit how fast water can be allocated to construction projects. Theysay that when normal use exceeds safe yield, allocations cannot exceed two percent of July I safe yield, plus carryover of any unused allocation potential from the previous year. This limit means that even if the city obtains additional permanent supply and rationing ends during the coming year, only slightly more than now in reserve can be allocated during the next 12 months. Several types of projects are exempt from needing allocations, though they cumulatively add to water demand. Ninety-four percent of the city's safe yield comes from surface reservoirs within the county but outside the San Luis Obispo Creek watershed. The rest comes from groundwater within that watershed. Safe yield of Salinas Reservoir has been questioned, due to concerns about releases from the reservoir intended to protect the rights of downstream users who may be exceeding their entitlements. Current experience indicates that during a multiyear drought, for every acre-foot that normal annual water use exceeds safe yield, annual water use must be reduced by about four acre-feet to avoid running out. Another way to look at this is that, for example, when use is above available safe yield, each new house built cancels out the desired conservation, at a rate of 25 percent, from 16 existing houses. The current mandatory conservation program levies punitive surcharges for customers exceeding their target use levels. The program aims for about 22 percent citywide - reduction in water use compared with 1987, with a maximum reduction of 30 percent during the summer for residential uses, and 70 percent for landscape irrigation accounts. Based on three months of experience, water consumption is at or below target levels, probably avoiding the need for deeper reductions considered for this fall. POTENTIAL IMPACT REVIEW B. Population distribution and growth Broad issues of city and regional impacts due to development with and without the water regulations were evaluated in the environmental impact report for those regulations (February 1987). The proposed change is likely to affect only the timing of allocations becoming available within a one-year range, and is therefore not expected to significantly change the amount or distribution of development that would accommodate or induce population growth. F. Utilities The proposed change will reduce the risk that an anticipated water source will be counted on to meet added demand from new development, and then prove to be unavailable or inadequate. Factors tending to reduce this risk under the current rules are: C ER 49-89 Page 3 The interval between assignment of a water allocation when a project applies for a building permit and when the project is occupied and using water, generally six to 18 months depending on the type and size of project; The rule allowing only one-half of estimated new yield to be allocated to development; The Utility Director's professional responsibility in determining the yield and availability of new sources. Factors tending to create risk even with the proposed amendment are: Uncertainty in the political, legal, and weather influences for surface water sources; Uncertainty in the quantity and quality of groundwater despite preliminary well test results. Overall, the amendment is expected to produce a beneficial impact on utility service: slowing the rate at which water service can be provided to new development, but increasing the reliability and quality of water service to those existing and new Odevelopments which do receive water service. Approving or denying the amendment will not affect the short-term water situation —the extent of cut-backs which may be needed this fall. Likewise, conservation achieved during the drought and rainfall received this coming winter will only slightly affect the long-term conditions which the allocation regulations are intended to deal with. gm3: er49-89 C'