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HomeMy WebLinkAbout03-21-2017 Item 16 - 2017 Recycled Water Master Plan Meeting Date: 3/21/2017 FROM: Carrie Mattingly, Utilities Director Prepared By: Jennifer Metz, Utilities Projects Manger Mychal Boerman, Water Resources Program Manager SUBJECT: 2017 RECYCLED WATER MASTER PLAN RECOMMENDATION 1. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving the 2017 Recycled Water Master Plan and a Negative Declaration of Environmental Impact.” 2. Authorize staff to negotiate an agreement for delivery of recycled water outside the city limits consistent with the policies and findings identified in the General Plan. DISCUSSION Background Modern water recycling technologies allow for the efficient treatment of wastewater to extremely high standards of quality. Recycling water is a proven method of improving local water supplies and is a key part of integrated water planning. Recycled water can help improve resilience to drought or other water supply reduction or emergency and serves as an opportunity for the City to address long-term sustainability goals. Utilizing recycled water to its highest and most beneficial use is consistent with a One Water approach (see Figure 1). The City is committed to sound and progressive planning for recycled water infrastructure. The City adopted its first Recycled Water Master Plan in 2004, originally called the Water Reuse Master Plan, and began delivering recycled water in 2006. Recycled water was the first new source of water to the City since Whale Rock Reservoir in 1961. The focus of the prior Master Plan was offsetting potable water used for landscape irrigation to extend the City’s potable water supplies. Since 2007, annual recycled water usage has increased from 77 acre feet to over 193 acre feet in 2016, offsetting four percent of the City’s total demand. The City Council approved funding for an update to the Recycled Water Master Plan (Master Plan) as part of the 2012-13 Figure 1. The One-Water approach considers the urban water cycle as a single integrated system. SOURCE: US Water Alliance. Packet Pg. 251 16 Mid-Year Budget. The City contracted with the Wallace Group for the preparation of the Master Plan in April 2013 concurrent with the work on the City’s Potable Water Distribution System Master Plan. Completion of the Master Plan was put aside while staff worked on the Potable Water Distribution System Master Plan, the 2015 Urban Water Management Plan, and the update to the General Plan’s Water and Wastewater Management Element in 2016. During this time, the Utilities Department brought on a program and design team for the Water Resource Recovery Facility (WRRF) project. One project objective is to maximize the production of recycled water in the plant. In February 2015, Council approved a resolution to submit a grant application for 50 percent funding to study maximizing production and distribution of recycled water. In November 2015, the City was notified the grant had been approved and work commenced on the Recycled Water Facilities Planning Study. Due to the necessary expansion of the Recycled Water Master Plan work scope, staff, incorporating the work done by Wallace Group, completed the Master Plan in-house. Master Plan Approach The Master Plan is part of the City’s comprehensive strategy to efficiently manage its water resources. Recognizing that regulations surrounding recycled water continue to evolve, the Master Plan addresses both current uses and future opportunities. The Master Plan is guided by the City’s General Plan including goals, policies, and programs in the Water and Wastewater Management Element, as well as development projections from the Land Use Element. The Master Plan presents a strategy to serve recycled water to developing areas of the City for use as landscape irrigation, presents opportunities to retrofit existing sites to offset potable water use, explores use of recycled water outside the City limits during periods where much of the City’s recycled water supply goes underutilized, and describes future opportunities consistent with a One Water approach. The Master Plan includes an updated storage analysis and a capital plan through 2035. The purpose and scope of the Master Plan is as follows: 1. Plan for the strategic and beneficial use of recycled water including the potential for future potable reuse. 2. Analyze recycled water production capability in the short- and long-term, ensuring the Master Plan reflects current wastewater generation rates. 3. Understand expected development patterns and recycled water demand. 4. Develop a hydraulic model for the recycled water distribution system that can be utilized for future infrastructure analysis. 5. Analyze the available recycled water supply, including surplus supplies. 6. Confirm the Master Plan service area. 7. Provide a plan for incremental expansion of the recycled water distribution system. 8. Prioritize future retrofit opportunities based on defined criteria. 9. Identify future storage needs based on future peak day demand. Packet Pg. 252 16 10. Evaluate infrastructure improvements needed to reach new customers and a prioritized Capital Improvement Plan (CIP) list. 11. Provide recycled water infrastructure costs for inclusion in the update of the water capacity and connection fees The Master Plan includes a detailed analysis of the available recycled water supply, current and future recycled water demand, and irrigation system retrofit opportunities to offset potable water use. After meeting in-City demands, the Master Plan analyzes both short- and long-term opportunities to utilize the surplus recycled water supply. This evaluation of recycled water availability also takes the future opportunities for potable reuse into consideration. The Recycled Water Facilities Planning Study (the product of the SWRCB 2015 grant), included as Appendix A in the Master Plan, examined several opportunities, in addition to in-City landscape irrigation, for maximizing the long-term beneficial use of recycled water within the City’s sphere of influence. The options studied include:  Provide direct potable reuse;  Provide groundwater recharge within the San Luis Obispo Valley Basin for indirect potable reuse; and  Deliver tertiary-treated recycled water to agricultural interests outside of the City. The Master Plan includes a Recycled Water Production Analysis, prepared by Water Systems Consulting, Inc. (WSC), to determine current infrastructure production capability in the near- term, before the Water Resource Recovery Facility Project (WRRF Project) is complete . This analysis is provided in Appendix B. Recycled Water Storage Analysis, prepared by Wallace Group, is provided in Appendix C. This study reviews assumptions from the 2004 Master Plan, updates demand projections, analyzes potential future recycled water storage options, and includes recommendations on when additional storage should be added to the system. Recycled Water and Other City Goals Agricultural interests outside the City limits interested in the City’s surplus recycled water supply have approached staff to inquire about availability. Historically, the City has only delivered water to customers within the City, with a few exceptions consistent with Municipal Code section 13.04.04 (Limit of city’s responsibility to furnish water outside of the city). Generally, recycled water is used for landscape irrigation and demand is seasonal. Therefore, there is currently a surplus of recycled water available during the months when traditional irrigation is at its low point. Putting this water supply toward this beneficial use may have the potential to further other City goals related to securing a greenbelt around the City. The desired greenbelt, located beyond the City's Urban Reserve Line, includes some irrigated agricultural lands and associated agricultural uses shown below in Figure 5 of the General Plan, Conservation and Open Space Element. Goal 8.1 from the Conservation and Open Space Element, describes the City’s desire to: Packet Pg. 253 16 Secure and maintain a healthy and attractive Greenbelt around the urban area, comprised of diverse and connected natural habitats, and productive agricultural land that reflects the City’s watershed and topographic boundaries. Contracts for transfer of non‐potable water are exempt from the findings required by Gov. Code §56133 (c)(1)-(2); however, Local Agency Formation Commission (LAFCO) approval is still required per Government Code §56133(e). In accordance with these requirements, policy clarification was added with the 2014 Land Use Element Update to distinguish the delivery of potable water from recycled water. Program A 7.3.4 from the General Plan’s Water and Wastewater Management Element states that the City will: Consider the potential to deliver available recycled water supplies to customers outside the city limits, including analysis of policy issues, technical concerns, and cost recovery, provided it is found to be consistent with the General Plan. With the update to the General Plan, Land Use Element in 2014 the following poli cy (1.13.2, Recycled Water) was added: Provision of recycled water outside of City limits may only be considered in compliance with Water and Wastewater Element Policy A 7.3.4 and the following Packet Pg. 254 16 findings: A. Non-potable/recycled water is necessary to support continued agricultural operations. B. Provision of non-potable/recycled water will not be used to increase development potential of property being served. C. Non-potable/recycled water will not be further treated to make it potable. D. Prior to provision of non-potable/recycled water, the property to be served will record a conservation, open space, Williamson Act, or other easement instrument to maintain the area being served in agriculture and open space while recycled water is being provided. Staff is recommending the Council authorize the negotiation of an agreement for delivery of surplus recycled water outside the city limits consistent with the policies and findings identified in the General Plan. Staff analyzed in-city recycled water demand and believes sufficicent supply exists to accomodate this delivery after meeting in-City demands and creek discharge requirements. This delivery would help to meet the City’s greenbelt goals and regional goals to augment the San Luis Obispo groundwater basin. Staff anticipates negotiations would include the schedule and term of recycled water delivery, cost, and cost recovery by the City for the recipient’s capital improvements to facilitate water delivery. Prior to executing any agreement, the City will need to modify Section 3.16 of the Municipal Code to allow for the delivery of such water outside the City’s boundaries. If negotiations are successful, staff will return to Council to with the aforementioned ordinance change and to receive authorization to execute the agreement. The terms of an agreement to provide recycled water outside the city limits would be consistent with the actions taken by Council on March 7, 2017 related to the Sustainable Groundwater Management Act and the City’s long-term planning efforts for a One Water future. ENVIRONMENTAL REVIEW An Initial Study was prepared for the Master Plan in accordance with the California Environmental Quality Act (CEQA) and a Negative Declaration is recommended for adoption. FISCAL IMPACT There are no fiscal impacts associated with the recommended action. Operating program costs associated with recycled water production and delivery are funded through water rates. Capital costs are funded by both water rates and water development impact fees. Funding to support expansion of system users and the distribution system will be identified in future budgets for Council consideration and approval. The Utilities Department will also continue to pursue grant funding for expansion of the recycled water distribution system. Packet Pg. 255 16 Attachments: a - Resolution for RW Master Plan Adoption b - RWMP Negative Declaration c - Council Reading File - RWMP Packet Pg. 256 16 R _____ RESOLUTION NO. (2017 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE 2017 RECYCLED WATER MASTER PLAN AND A NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT WHEREAS, the City has a multi-source water supply and has produced and delivered recycled water since 2006; and WHEREAS, the Recycled Water Master Plan is consistent with goals and policies of the General Plan; and WHEREAS, the Recycled Water Master Plan provides a roadmap for the City’s recycled water distribution system; and WHEREAS, the Recycled Water Master Plan describes future opportunities for the City to consider potable reuse consistent with a One-Water approach; and WHEREAS, the Recycled Water Master Plan, consisting of text, tables, and figures, was presented to the City Council in final form on March 21, 2017. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Action. The City Council does hereby adopt the Recycled Water Master Plan attached hereto as Attachment 1. SECTION 2. Environmental Determination. The City Council does hereby adopt a Negative Declaration of Environmental Impact for the approval of the Recycled Water Master Plan. SECTION 3. Effective Date. The Recycled Water Master Plan shall become effective immediately upon adoption of this Resolution. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________, 2017. ____________________________________ Mayor Heidi Harmon Packet Pg. 257 16 Resolution No. _____ (2017 Series) Page 2 R _____ ATTEST: ____________________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ____________________________________ Carrie Gallagher City Clerk Packet Pg. 258 16 Packet Pg. 259 16 Packet Pg. 260 16 Packet Pg. 261 16 Packet Pg. 262 16 Packet Pg. 263 16 Packet Pg. 264 16 Packet Pg. 265 16 Packet Pg. 266 16 Packet Pg. 267 16 Packet Pg. 268 16 Packet Pg. 269 16 Packet Pg. 270 16 Packet Pg. 271 16 Packet Pg. 272 16 CITY OF SHR LUIS OBISPO Avi RECYC ',�, CITY OF Sfln Lais OBISPO System Expansion Ban Luh I . Ranch M; Wait" Ara \ le�aaurawOrcuR Race + \ Area 1 r Frown cha"M Ranch 1 1 Chevron f Area1 Easl Al rt �. Avila Ane w"d' f Changed Conditions Wastewater Flow 2003: 4.5 mgd 2015: 2.7 mgd Creek Discharge Requirement 2004: 1.1 mgd Today: 1.6 mgd WRRF Outfall Location into San WS Obispo Creek 3/22/2017 2 Deliveries keep increasing In 2016, recycled water use offset four percent of total water demand _ else 2007 2016 New connections planned 77 acre feet 193 acre feet for 2017 and beyond CITY OF SH11 LLUS 1: '1 Changing Perspective Public acceptance + Evolving legislation + Future opportunities = a� Nv1 iahle end RC e l l l c n1 Water Utilities a6 ax Healthy Waterways Thriving Cilias M One Water Approach ag N3 Social and Economic comp i ivs gus�css Inclusion and lhduxtry dR SuilaiaeLly Apicultural Systems uCITY OF SHR Luis OBISPO 3/22/2017 3 Why update the Master Plan? Maximize recycled water use for all approved purposes General Plan, Water and Wastewater Management Element, Goal AT 1.1 1. Analyze supply and demand of recycled water Recycled Water Demand 35 � v.4 300 ^ 0.35 250 f A 0.3 0.25 20.0 0.2 15.0 0.15 10.0 0.1 5.0 0.05 0.0 0 41, CNIY 0fi I��IaV 1 ��P�Ir I�-Ilii ���I Ili•���.�iiil i1lf lllq 3/22/2017 4 2. Identify capital needs for distribution system expansion and storage Developed recycled water distribution system model a Pipeline expansion options m Storage analysis 3. Identify In -City Irrigation Demand Considered specific plan area build out to Examined existing customers 3/22/2017 5 r• 4. Explore alternative uses of recycled water. including use outside the city limits after I' City needs are met Recycled Water Facilities Plaiming Study analyzed: 1: Delivery to agricultural interests outside the City 2: Potable reuse _ ._-••�raarill Potable Reuse ■ Indirect potable reuse: uses highly treated wastewater to recharge the groundwater basin ■ Direct potable reuse: uses advanced treatment before being injected into potable water distribution system M4auciOM w alcr axv Indirect potable reuse 3/22/2017 L Delivery to Interests Outside the City City has surplus recycled water — surplus may decrease as City grows May provide off-peak use for surplus water Questions? RECYCLED WATER KEEPS 3/22/2017 7 Recommendations Adopt a Resolution entitled "A Resolution of the City Council of the City of San Luis Obispo, California, approving the 2017 Recycled Water Master Plan and a Negative Declaration of Environmental Impact." Authorize staff to negotiate an agreement for delivery of recycled water outside the city limits consistent with the policies and findings identified in the General Plan. 3/22/2017 E] Dual Plumbing Recycled water can be used for other non -potable uses such as toilet flushing, cooling, etc. The City would need to: * Obtain permit to allow use recycled water for dual plumbed systems. * Consider staffing needs and other costs Modify regulatory documents Laguna Lake Recycled water could be used to augment lake levels, however this usage would not create a potable offset A Recycled water would require dechlorination w The City may need to obtain permit to allow use recycled water for surface water augmentation 3/22/2017 W Anticipated Terms for Negotiation • Schedule/Term • Quantity • Price ■ SGMA ■ Other City Goals Delivery to Agricultural Interests Outside the City Water and Wastewater Management Element, Program A 7.3.4: Consider the potential to deliver available recycled water supplies to customers outside the city limits, including analysis of policy issues, technical concerns, and cost recovery, provided it is found to be consistent with the General Plan. � a ISO 3/22/2017 10 Land Use Element, Policy 1.13.2 states: Provision of recycled water outside of City limits may only be considered in Compliance with Water and Wastewater Element Policy A 7.3.4 and the following findings: A. Non-potable/recycled water is necessary to support continued agricultural operations. B. Provision of non-potable/recycled water will not be used to increase development potential of property being served. C. Non-potable/recycled water will not be further treated to make it potable. D. Prior to provision of non-potable/recycled water, the property to be served will record a conservation, open space, Williamson Act, or other easement instrument to maintain the area being served in agriculture and open space while recycled water is being provided. 3/22/2017 11