HomeMy WebLinkAbout07-18-2017 Item 16 - Modification of Corporation Yard Well Permit Fee and Access Meeting Date: 7/18/2017
FROM: Carrie Mattingly, Utilities Director
Prepared By: Aaron Floyd, Utilities Deputy Director - Water
Mychal Boerman, Water Resources Program Manager
SUBJECT: MODIFICATION OF CORPORATION YARD WELL PERMIT FEE AND
ACCESS
RECOMMENDATION
Adopt a Resolution amending Resolution No. 10629 (2015 Series) to:
1. Restrict public access to the Corporation Yard non-potable well to outside-City properties
on O’Connor Way, West Foothill Boulevard, and neighboring areas for non-potable use
only;
2. Update permit fee for access to the Corporation Yard non-potable well; and
3. Terminate public access to the Corporation Yard non-potable well on July 1, 2018.
DISCUSSION
Corporation Yard Well History
The Corporation Yard well was established during the
drought of 1987-1991 to serve as an alternative source
of water for construction-related activities (prior to the
City’s recycled water program which began delivering
water in 2006). Over the years, word spread about the
well and it began to see more use. It became known
that people outside of the City were using the well for
non-potable uses such as laundry, livestock, irrigation,
and toilet flushing.
In June 2015, when the City Council declared a local
drought emergency, guidelines were established and a
permit fee was identified for the use of the
Corporation Yard well. Access to the well for non-
City residents was permitted in an effort to provide
temporary support to areas of the San Luis Obispo
Valley Groundwater Basin (SLOVGB) that were
experiencing depleted groundwater levels as a result
of the drought. The June 2015 Council Agenda Report on the drought noted that upon rescission
of the drought emergency, the well would be shut down and would no longer be available for
public use. The permit application form emphasized that “Public use of the well will be
discontinued when the drought emergency is rescinded by the City Council.”
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On June 20, 2017, the City Council voted to rescind the local drought emergency declaration and
directed staff to return with modifications to the Corporation Yard well permit program allowing
for a temporary extension of limited public access to the well for no more than one year. City
Council directed staff to update the permit fee for access to the well to be commensurate with the
adopted City water rates and to restrict access to the well to properties on West Foothill
Boulevard, Cottonwood, and O’Connor Way.
Approved Use Areas
The original Corporation
Yard non-potable well permit
program was offered to any
properties within the
SLOVGB. At the June 20,
2017 City Council meeting,
residents of the O’Connor
Way area testified that their
wells had not sufficiently
recovered from the drought
and they were still dependent
on access to the Corporation
Yard well for basic residential
needs (such as laundry and
toilet flushing). Based on this testimony, the City Council provided direction to restrict access to
the Corporation Yard well to properties on O’Connor Way, West Foothill Boulevard, and
neighboring areas. Council directed staff to prepare a letter to the Board of Supervisors
informing them of the actions taken by the City Council. City Council stated the expectation that
residents in this County area work with County and City staff to develop a solution that would
result in the cessation of the use of the Corporation Yard well by July 1, 2018. Additionally, staff
was to inform Council on progress.
Updated Permit Fees
By estimating Corporation Yard well water use by the 15 permit holders around West Foothill
Boulevard and O’Connor Way that were registered in 2015-16 and 2016-17, staff developed an
annual access fee of $1,510. As directed by Council, this proposed fee was developed using
similar pricing metrics to those that City residents pay, such as a monthly base-fee, an account
set-up fee, and consumption based charges. Water use for each permitted parcel was estimated to
be 330 gallons per day or 110 gallons per capita daily. This assumes that each property is
occupied by three people which is consistent with census estimates for unincorporated areas of
San Luis Obispo County. Estimated use of 110 gallons per capita daily is also consistent with
water use in local communities. Using this methodology, approximately 75% of the use of the
Corporation Yard well could be attributed to use in or around O ’Connor Way. This level of use
would equate to roughly 5.5 acre-feet of water demand from the O’Connor Way area annually.
Table 1: Outside-City Permits
2015-16 & 2016-17
Outside-City Permits
Year
Inside-
City
Permits
Non-
O’Connor/West
Foothill
O’Connor/
West Foothill Total
15/16 25 4 15 44
16/17 25 4 15 44
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O’Connor Way/West Foothill Water Demand
Estimated Demand Estimated # of
Permits Annual Acre-Feet/Permit
Annual
Billing
Units/Permit
5.5125 Acre-Feet 15 0.37 160
Note: A billing unit is 748 gallons of water
O’Connor Way/West Foothill Corporation Yard Well Proposed Fee
Account Setup Fee Annual Base Fee Consumption Fee Total
Fee/Permit
$83.00 $148.00 $1,279.00 $1,510.00
Note: The consumption fee is calculated by multiplying estimated O’Connor Way/West Foothill Boulevard water
use (160 Billing Units/Permit/Year) by the City’s existing water rates.
CONCURRENCES
The Community Development Department concurs with the recommendations made in this
report.
ENVIRONMENTAL REVIEW
The proposed modification of Resolution No. 10629 related to the use of the Corporation Yard
non-potable well is not a “project” under the California Environmental Quality Act (CEQA)
because the action does not involve any commitment to a specific project which may result in a
potentially significant physical impact on the environment, as contemplated by Title 14,
California Code of Regulations, Section 15378. Even if the contemplated action is a project
under CEQA, it is categorically exempt pursuant to CEQA guidelines section 15301, existing
facilities.
FISCAL IMPACT
The proposed permit fee will cover costs associated with program management, staffing, and
costs related to electricity and pump maintenance for the Corporation Yard well. Additionally,
the permit fee, based on water use estimates, is aligned with in-city water user costs. If fifteen
permits were purchased at the updated fee amount, the City would recover $22,650.
ALTERNATIVES
1. Allow access to Corporation Yard well to all properties within the SLOVGB who
are located outside of City-limits. The Council could elect to allow permitted access to
the Corporation Yard well to properties located within the SLOVGB and outside of the
O’Connor Way area. Of the 19 total outside-City permits currently issued, four are
located outside the O’Connor Way area. These properties are in the Edna Valley and
Orcutt area. The overall groundwater status of wells in these areas is unknown.
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2. Double of proposed consumption and base fee portions of well permit fee. The
Council could elect to double the base fee and consumption charges of the proposed well
permit fee commensurate with other agreements to furnish water to customers outside of
the City limits. Doubling base-fees and consumption charges would make the annual fee
$3,020 for each user.
Attachments:
a - Resolution 10629 Establishing a Permit Fee and Regulations for Use of the Corporation
Yard Non-Potable Well
b - 2017 Reso amending well rules
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RESOLUTION NO. 10629 (2015 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING A PERMIT FEE AND
REGULATIONS FOR THE USE OF THE CORPORATION YARD NON -
POTABLE WELL
WHEREAS, as evidenced by Governor Edmund G. Brown's various proclamations,
California is in a state of emergency due to severe drought conditions; and
WHEREAS, separate but related to the drought, the State of California has adopted
legislation commonly referred to as the Sustainable Groundwater Management Act, which
requires, among other thing, that a groundwater management agencies must be formed to
manage the groundwater basins underlying the agency's respective jurisdiction; and
WHEREAS, the City of San Luis Obispo's ( "City ") water supply is composed of surface
water stored in the Whale Rock, Salinas, and Nacimiento reservoirs which are located outside of
the City's limits but within the County of San Luis Obispo. In addition to these surface water
supplies, the City owns and operates a non - potable well located at the City's Corporation Yard.
The well draws groundwater from the San Luis Obispo Valley Groundwater Basin which has
been identified by the California Department of Water Resources as a medium priority basin as
part of the California Statewide Groundwater Elevation Monitoring Program (Water Code
section 10920 et seq.); and
WHEREAS, the original purpose of this well was for use at construction sites within the
City; and
WHEREAS, over time, water from the well has been used by individuals and
commercial enterprises for a variety of purposes not regulated by the City; and
WHEREAS, in recognition of the drought and the importance of the groundwater
resources management, and to protect the health, safety and welfare of the public, it is necessary
for the City to regulate the use of the groundwater well at the City's Corporation yard.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Environmental Determination. The Resolution is categorically exempt
from environmental review pursuant to CEQA Guidelines Section 15307 (Actions by Regulatory
Agencies for Protection of Natural Resources).
SECTION 2. During the City's declared drought emergency, a permit issued by the City
Utilities Department will be required prior to any person obtaining water from the non - potable
groundwater well at the City's Corporation yard. Water from this well may only be used for non-
potable purposes for properties within the City of San Luis Obispo or those adjacent to or within
the San Luis Obispo Valley Groundwater Basin as defined in Bulletin 118 issued by the
R 10629
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Resolution No. 10629 (2015 Series)
Page 2
California Department of Water Resources. Guidelines for the allowable uses of the water, user
eligibility and application procedures consistent with this Resolution will be developed by the
Utilities Director. The Utilities Director will have the authority to modify the guidelines, user
eligibility and application procedures based on the severity of the drought conditions. If traffic
issues, safety, abuses, or other similar concerns related to the well occur, the use and operation of
the well may be further regulated or shut down at the discretion of the Utilities Director.
SECTION 3. The City Council hereby adopts the following annual fees for use of the
non - potable groundwater well at the City's Corporation yard by user type:
Property owner inside the City limits: 50.00
Property owner outside the City limits,
but in the San Luis Obispo Valley Groundwater Basin: $350.00
SECTION 4. Failure to follow the guidelines or follow other applicable procedures for
use of the water will result in revocation of the user permit and forfeiture of access to the well.
Upon motion of Vice Mayor Ashbaugh, seconded by Council Member Christianson, and on the
following roll call vote:
AYES: Council Members Carpenter, Christianson and Rivoire,
Vice Mayor Ashbaugh and Mayor Marx
NOES: None
ABSENT: None
The foregoing resolution was adopted this 2nd day of June 2015.
Z fttal
Ma or a Marx
ATTEST:
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Resolution No. 10629 (2015 Series)
Page 3
APPROVED AS TO FORM:
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 S4'- day of 7
ony J. M " ,
City Clerk
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R ______
RESOLUTION NO. _____ (2017 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO,
CALIFORNIA, AMENDING THE CITY’S PERMIT FEE AND USER REGULATIONS
FOR THE USE OF THE CORPORATION YARD NON-POTABLE WELL
WHEREAS, the City owns and operates a non-potable groundwater well (the “Well”)
located at the City’s corporation yard;
WHEREAS, the original purpose of the Well was for construction purposes; and
WHEREAS, over time, the Well has been used by individuals and commercial enterprises
for a variety of purposes not regulated by the City; and
WHEREAS, on June 2, 2015, the City adopted Resolution No. 10629 (2015 Series)
formally establishing a permit fee and use regulations for the Well. Specifically, the Resolution
limited the use of the Well for non-potable purposes for individuals and properties who are located
within the San Luis Obispo Valley Groundwater Basin. Use of the Well under Resolution No.
10629 was limited to the period when a drought emergency was declared; and
WHEREAS, on June 20, 2017, the City Council formally rescinded the declared drought
emergency but directed staff to develop a plan to restrict public access to the Well, update the well
permit fee, and work with the County of San Luis Obispo and properties participating in the
program to develop a solution that would result in cessation of the use of the well by July 1, 2018.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. A permit will be required to obtain water from the groundwater well at the
City’s Corporation Yard. Guidelines for the allowable uses of the water, user eligibility and
application procedures will be developed by the Utilities Director and will be consistent with this
Resolution. The Utilities Director will have the authority to modify the guidelines, user eligibility
and application procedures.
SECTION 2. Access to the Corporation Yard non-potable well is hereby limited to non-
potable use for properties located within areas bounded by O’Connor Way and West Foothill as
outlined in the map attached as Exhibit A.
SECTION 3. The annual fee for each property to access and use the well is $1,510.00.
SECTION 4. Failure to follow the guidelines or follow other applicable procedures for
use of the water will result in revocation of the user permit and permanent forfeiture of access to
the well.
SECTION 5. Public access to the well will be terminated on July 1, 2018 unless other
action is taken by the City Council prior to this date.
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Resolution No. _____ (2017 Series) Page 2
SECTION 6. Resolution 10629 (2015 Series) is hereby superseded to the extent
inconsistent herewith.
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
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
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Resolution No. _____ (2017 Series) Page 3
Exhibit A
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Modification of Corporation Yard well permit fee and access
Council Direction – June 20, 2017Draft a letter to County Board of SupervisorsExamine alternative ways to monitor well for non-complianceWork with community and County and provide an update to Council in one yearRestrict use areas to O’Connor Way and West Foothill areaMake fees commensurate with existing City water rates
Corporation Yard Well FeesElements of existing City water rates Account Set-up FeeMonthly Base FeeConsumption Charges$83.00$12.33/Month ($148/Year)Units 1-8: $7.27/unitUnits 9+: 9.08/unit
Corporation Yard Well FeesWhat we know:O’Connor area permits: 15Average annual water use from well: 7.35 Acre-Feet/YearWhat we don’t know:How much each individual permit holder uses
Corporation Yard Well FeesEstimated Demand:0.37 acre-feet/permit annually (5.5 acre-feet total)75% of total water demand from Corporation Yard well110 gallons per capita daily (3 residents per property / 330 gallons/permit)Reasonable Estimate:Inside-City: 85-90 gallons per capita dailyO’Connor area: Larger properties2014 well monitoring: 6 acre-feet of water demand from O’Connor area
Corporation Yard Well FeesProposed Fee Amount:Account Setup Fee Annual Base Fee Consumption FeeTotal Fee/Permit$83 $148 $1,279$1,510Note: The consumption fee is calculated by multiplying estimated O’Connor Way/West Foothill Boulevard water use (160 billing units/permit) by the City’s existing water rates.Tier Rate Billing Units CostTier 1 96 $698Tier 2 64 $581Total 160 $1,279Consumption Fee Calculation:
Next StepsReturn to Council within a year with an update.Contact permit holders & begin new permit period August 1, 2017.Work with County and property owners to come up with an alternative to the Corporation Yard well prior to July 1, 2018.
Questions
RecommendationsAdopt a Resolution amending Resolution No. 10629 (2015 Series) to:1. Restrict public access to the Corporation Yard non-potable well to outside-City properties on O’Connor Way, West Foothill Boulevard, and neighboring areas for non-potable use only;2. Update permit fee for access to the Corporation Yard non-potable well; and3. Terminate public access to the Corporation Yard non-potable well on July 1, 2018.
Alternatives1. Allow access to Corporation Yard well to all properties within the SLOVGBwho are located outside of City-limits.2. Double proposed consumption and base fee portions of well permit fee. Applied to the proposed pricing structure, this would result in an annual charge of $3,020.
More Alternatives3. Limit use to only those properties outside City-limits that are currently permitted to use the well. 4. Limit use to only those current outside City-limits permit holders and all properties on O’Connor Way, West Foothill Boulevard, and neighboring areas.5. Charge 90% of proposed rate. This is similar to the methodology currently used for pricing non-potable recycled water. Applied to the proposed pricing structure, this would result in an annual charge of $1,359.
Corporation Yard Well StatisticsCorporation Yard Well Usage 2015‐16 through 2016‐17Acre‐Feet Inside City Outside City TotalJuly 2015‐June 30, 2016 8.57 23 17 40July 2016‐May 4, 2017 5.46 27 17 4407-18-2017 Item 16 Presentation
2014 Corporation Yard Well DataAddress Units/Month Gallons/Month AF/Month AF/YearO'Connor Undisclosed 43 32,000 0.098204 1.18O'Connor Undisclosed 107 80,000 0.245511 2.95O'Connor Undisclosed 10 7,800 0.023937 0.29O'Connor Undisclosed 21 16,000 0.049102 0.59O'Connor Undisclosed 21 16,000 0.049102 0.59O'Connor Undisclosed 8 6,300 0.019334 0.23O'Connor Undisclosed 16 12,000 0.036827 0.44Total 170,1000.522018 6.2607-18-2017 Item 16 Presentation
07-18-2017 Item 16 Presentation