HomeMy WebLinkAbout09/01/1992, 5 - AN ORDINANCE ESTABLISHING CHAPTER 13.06 TO THE SAN LUIS OBISPO MUNICIPAL CODE INSTITUTING MANDATORY RETROFIT STANDARDS UPON THE CHANGE OF OWNERSHIP, USE OR UPON REMODEL. ���H�i�►►��Illlll gyp► II�I11 city of San _ AS OBISPO ITEETIN ITEM NUMBER:J:a�
COUNCIL AGENDA REPORT
FROM: William T. Hetland
Utilities Director
PREPARED BY: Ron Munds
Water Conservation Coordinator
SUBJECT: An Ordinance Establishing Chapter 13.06 to the San Luis Obispo
Municipal Code Instituting Mandatory Retrofit Standards Upon
the Change of Ownership, Use or Upon Remodel.
CAO RECOMMENDATION:
Introduce an Ordinance to Print Establishing Chapter 13.06 to the San Luis Obispo
Municipal Code Instituting Mandatory Plumbing Retrofit Standards Upon the Change
of Ownership, Use, or Upon Remodel.
DISCUSSION
Background
At the February 4, 1992 City Council meeting, Council directed staff to prepare an
ordinance that would require any real property at the time of change of ownership,
transfer of title, or change in use be retrofitted with low water-use plumbing fixtures.
This would also include remodels which add or altered a bathroom. Presently, low-
use water fixtures defined in the State's Title 24 Standards and Ultra-Low Volume
toilets are required in new construction.
The goal of the 1992 Water Conservation Program is to implement effective
programs and policies that support and encourage water efficiency. This ordinance
would be one more tool to achieve water efficiency throughout the City.
Other Retrofit Upon Sale Programs
A similar ordinance has been in effect in the Monterey Peninsula Water District
(MPWD) since August, 1987. The MPWD places the burden of compliance on the
seller but requires a disclosure by the seller and seller's agent informing the buyer of
the ordinance. MPWD contracts with a private company to track escrow closures and
process all necessary paper work. - Exact figures on how much water has been saved
because of the retrofit policy are not available.
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The City of Los Angeles, High Desert Water District, City of San Francisco, the City
of Morro Bay, the City of San Diego, and the Cambria Community Services District
(CCSD) have similar programs.
The CCSD utilizes a different concept which requires the buyer to comply with the
retrofit ordinance but the standards are the same as MPWD. Los Angeles' program
also requires the buyer to submit compliance documentation but has a different set of
standards in what qualifies as a retrofit device. The City of San Diego retrofit
ordinance .requires the retrofitting to take place prior to the close of escrow.
Attachment 1 summarizes other water agencies retrofit upon sale ordinances.
The High Desert Water District, which serves a population of 30,000 and has 10,000
water connections, has documented a 25% reduction in water use on accounts that
have retrofitted.
Proposed Program
Staff recommends that the burden for compliance be placed on the seller based on
input from other water agencies. It is staff's belief this procedure will ultimately
reduce the amount of staff time required to administer this program. In order to
monitor compliance, staff planned to utilize the County Recorder's Office as the
source to identify properties that have sold. This was going to be a time intensive
cumbersome process. After further research, staff located a company that compiles
this type of information for all the areas in the county including the City. SLOCO
Data of Grover City will supply the City this information once a month for a $20.00
fee. This information will be used to cross check "Water Conservation Certificate"
submittals to the 'City which will assist in monitoring compliance.
The Water Conservation Office will work with the San Luis Obispo Board of Realtors
and real estate offices .to explain the ordinance requirements and distribute the forms
and information. Staff believes that while retrofit rebate funds are available, the
customers required to retrofit because of this ordinance should be eligible for a —
rebate. Also, since a list is maintained by the Community Development Department
of people wanting to be retrofitted by developers participating in the Water Offset
Program, this would be another alternative for a potential seller to be retrofitted free
of charge.
Upon passage of this ordinance, the policy will be administered by the Water
Conservation Office. Based on the experiences of water purveyors with similar
ordinances, this is a labor intensive program . The agencies surveyed recommended,
for a city our size, there be a designated phone person to answer all the questions
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from the public and real estate industry, and a person to perform spot inspections,
paper work processing, and to maintain a database of retrofitted accounts. Staff is
recommending this be is done by one person, approximately half time with support
from the other water conservation staff. Other agencies have indicated that the initial
start-up of this type program will demand more staff attention. Once procedures and
forms are developed and refined, the program will operate more efficiently with an
anticipated decrease in staff time required.
It is estimated that there are 32,000 toilets in the City. Approximately 4,500 toilets
have been replaced with Ultra-Low-Volume (ULV) toilets through the Toilet Rebate
Program and the Water Offset (Retrofit) Program. This leaves a substantial number
of high gallonage toilets still being used. This ordinance will provide the City with
another avenue to reach the long range goal of reduced water use throughout the city.
San Luis Obispo Board of Realtors Concerns
The first concern expressed by the Board was with the fairness of point of sale
legislation (Attachment 2). Council must be aware that point of sale legislation is
becoming an increasingly integral part of many other communities water management
programs. There is proposed legislation on the State level to adopt retrofit upon sale
requirements state-wide. Because of heavy lobbying from the real estate industry, it is
not certain if or when this legislation will become law. Whether this legislation is
passed at this time or not, it is staffs belief that this type of legislation is inevitable
and will become common practice in the future. By passing this ordinance at this
time, the City will continue to be a leader in the State in water conservation policy.
The other major concern of the Board was the economic feasibility of implementing
such a program. Though an in depth economic analysis has not been performed on
this proposed program, available data indicates that approximately 500 escrows were
closed in the City during 1991. If this ordinance had been in place during this time
period, it is estimated between 30 to 40 acre feet of water per year would have been
saved. Using the estimated program costs, including a potential rebate to the
customer, it is estimated that the water saved would cost the City approximately
$325.00 to $430.00 per acre foot. This is a one time cost to the City with no
operation or maintenance required on our part. Given the life expectancy of a toilet,
the amortized cost would be significantly lower. This is consistent with other studies
conducted by staff which have indicated that with higher level of staffing and the City
paying for complete cost of retrofitting for every toilet in town, the cost per acre foot
saved was comparable to present sources of water and equal to or less expensive than
developing new water supplies.
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Other Considerations
By adopting this ordinance, the City will satisfy part of 'Best Management Practice"
number sixteen, Ultra-Low Flush Toilet Replacement Program. As a signatory
agency, the City has agreed to implement programs for the replacement of existing
high-water-using toilets with ultra-low-flush toilets. It is stated in the document, that
such programs will be at least as effective as offering rebates for replacement and
requiring replacement at the time of resale or at the time of change in service.
Consequences of Not Taking Recommended Action
It is important to understand that the replacement of high gallonage toilets to ULV
toilets is essential to the long range goal of reduced water consumption throughout
the City. The City's goal of efficiently using its water resources will be adversely
affected and may result in further unnecessary depletion of water supplies.
CONCURRENCES
The Community Development Department concurs with the recommendations made in
this report.
FISCAL IMPACT
The estimated total cost including contingencies is as follows:
Annual Cost Estimates
Staffing (1 Half-time FTE) $117250.00
SLOCO Data Printout $240.00
Estimated Forms/Letter Layout/Printing $300.00
Estimated Postage' $150.00
Contingencies @ 15% $100.00
TOTAL $129040.00
The staffing requirement identified in the annual cost estimates is included in the
staffing authorization granted at the April 21, 1992 City Council meeting. No
additional staffing will be required for implementation of this ordinance. Adequate
funds are available in the 1992/93 budget for the other identified costs of this
program.
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ALTERNATIVES
1. An alternative is not to pass this ordinance into law. This alternative is not
recommended at this time. This program is a cost effective means to achieve
the goal of long term reduction of water use throughout the city.
2. Council could direct staff to develop a different type of program which would
require the retrofit to be completed within thirty days of the close of escrow.
Based on the input from the experiences of other agencies this alternative is
not recommended.
ATTACHMENTS:
1. Summary of other water agencies retrofit upon sale programs
2. Response letter from the President of the San Luis Obispo Board of Realtors
3. Draft Ordinance for the Retrofit Upon Sale or Change of Use of Real Property
4. Summary of the Ordinance for Publication
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ATTACHMENT 1
RETROFIT UPON SALE SUMMARY
CITY OF SAN DIEGO
Staffing- 2 full-time clerical
2 full-time telephone hotline
Utilize Building Division staff for post inspections
Proof of retrofitting required before the close of escrow.
LOS ANGELES DEPARTMENT OF WATER AND POWER
Staffing- 7 full-time clerical
5 full-time telephone hotline
Post inspections performed by contracted licensed inspectors
Proof of retrofitting not required until after the close of escrow.
HIGH DESERT WATER DISTRICT
Staffing- 1 full-time clerical
1 half-time inspector
Proof of retrofitting not required until after close of escrow.
An interesting part of their ordinance is that they require retrofitting of properties sold
or re-rented.
CITY OF SAN FRANCISCO
Staffing- 5 full-time clerical/inspectors —
Proof of retrofitting is not required until after close of escrow.
MONTEREY PENINSULA WATER DISTRICT
Staffing- 2 full-time clerical/hotline
1 full-time inspector
Contract with a private company to provide all information when a property is sold
or transferred.
S
a
CAMBRIA COMMUNITY SERVICES DISTRICT
Staffing- 1 full-time clerical/hotline
1 full-time inspector
Proof of retrofitting not required until after close of escrow.
CITY OF MORRO BAY
Staffing- 1 part-time clerical
1 part-time inspector
Proof of retrofitting required before the close of escrow.
S- 7
SAN LUIS OBISPO ASSOCIATION OF REALTORS, INC.
443 MARSH STREET/SAN LUIS OBISPO/CALIFORNIA 93401 / (805) 541-2282/ FAX (805) 544-2813
R EA LT O fay 25, 1992
Ron Munds
Water Conservation Coordinator
888 Morro Street
San Luis Obispo, CA 93401
Dear Mr. Munds;
The San Luis Obispo Association of Realtors is pleased to be asked for comments regarding
the proposed mandatory plumbing retrofit ordinance. As always we encourage government
and industry working together in advance of new legislation so that potential pitfalls can
be avoided. We hope that our comments will be accepted in the spirit in which they are
given .... to proactively contribute to just law.
The San Luis Obispo Association of Realtors as part of the California Association of
Realtors (C.A.R.) and the National Association of Realtors (N.A.R.) is in opposition to
most "point of sale" legislation for several reasons:
A. "Point of sale" legislation usually mandates a unilateral requirement for a
property owner to comply with a certain standard. Plumbing retrofit; would not equally
or equitably be required of other property owners. There is nothing about a property sale
that would make an owner more or less wasteful of water. Why should a buyer or seller be
mandated to provide these community benefits when other property owners are exempt?
B. "Point of sale" law requires the disclosure of that particular law at the time of
sale. Sale transactions are becoming increasingly complicated by these requirements.
Disclosures in today's transactions designed to provide consumer protection and health
and safety information are necessary resulting in transactions that limit after purchase
litigation. The retrofit requirement is not sale related and will likely lead to after sale.
disputes.
We do support conservation of our resources, including water. More appropriate
legislation might be to determine a date at some point in the future in which ALL
properties in the city would be required to retrofit. This would be equitable to all
citizens of San Luis Obispo, not just a few.
Before retrofit is adopted it is important that a complete study of the economic feasibility
is conducted. The draft ordinance sets into motion an implementation, administration and
enforcement process which will result in increased staff and an increased cost to tax
payers. If it costs our taxpayers 52.00 per every $1.00 of water savings then it does not
make sense to implement the program. A more beneficial approach, under this example,
may include spending a 51.00, on new water resources or offer a 51.00 water rate
discount to voluntary retrofits.
Other variables in the .economic analysis need to be determined, such as:
A. The viability and life of current water saving devices. Will there be other
newer, more efficient water closets that could render those installed today obsolete in 5
to 10 years? p
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B. What economic impact will current projections have if it involves costly
1 modifications to our treatment plants or if conservation is mitigated by treatment plant
waste water reclamation?
All of these factors need to be researched before retrofit legislation is presented to city
council.
Water conservation is a lofty and popular notion and somehow patriotic, however,
implementation of conservation measures demands no less fiscal responsibility than any
other program requiring public funds.
As a precursor to legislation mandating retrofits at point of sale, the city must rescind its
legislation mandating 2 for 1 retrofits in water saving devices before issuing building
permits. The legislation, (Ordinance # 1144) was established in 1989, as an exemption to
the total building moratorium of that period. That ordinance was based upon findings that
took into consideration evidence of drought conditions and reservoir levels. It was passed
in conjunction with a mandatory water rationing ordinance. As a result of the '92 rains,
the city has lifted both the water rationing and the building moratorium ordinances. As
we understand, the water offset is still in effect with regard to permit issuance.
This regulation was designed to allow building in a time when no water allocations were
available. It is just and equitable that in times of drought everyone must contribute to
water conservation in all forms, including moratoria and rationing. Now that the city has
lifted rationing and the moratorium, it is again an unjust policy to require permit
applicants to pay for the retrofit of other property owner's homes, in order to build new
structures. We should now be in a position to provide adequate water for a planned 1%
annual growth. Should this condition change again the citizens of San Luis Obispo will
again respond, in unison, to the crisis. Until that time, no single party should be
penalized by being required to pay for others retrofits. It is also easy to visualize, that
if the city implements new mandatory retrofit legislation, soon there will be no properties
to retrofit, thereby making the permit process impossible.
In closing, it is suggested that: A. The city consider an interim voluntary retrofit
program. Such a program could prove beneficial allowing the city to ease into a mandatory
program and it should be less costly to administer. Those who voluntarily retrofit could
be rewarded with public recognition and (possibly) a more favorable water rate. B. A date
certain be given for an equitable uniform property retrofit program be established. that is
not tied to point of sale.
We hope the questions raised and suggestions made will prove helpful in the formation
stage of this proposed ordinance. The San Luis Obispo Association of Realtors' legislative
committee would be happy to meet with your office to discuss this issue further.
Sincerely,
41-
David
Slade
President
cc: All City Council Members
Administration Office
City Attorney
Utilities Director
Community Development Director
39
ORDINANCE NO. (1992 SERIES)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING CHAPTER 13.06 MANDATORY PLUMBING RETROFIT
STANDARDS UPON CHANGE OF OWNERSHIP, USE, OR
BATHROOM ADDITIONS OR ALTERATION
WHEREAS,The City Council acknowledges that water is a limited resource and therefore
desires to improve the effectiveness of water use within the City's service area. The City
Council hereby finds that:
A. The City has adopted and implemented water conservation measures which set
standards for the installation of plumbing fixtures in new construction.
•B. The City has found and determined that it is in the best interest of the City and
the inhabitants to provide plumbing retrofit standards for the conservation of potable water
supplies.' Retrofit of existing plumbing fixtures will lessen consumption of limited potable
water resources available to the City.
C. The City has determined that the conservation and retrofit effort shall benefit
the public good by increasing the availability of potable water by reducing demand.
BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:
SECTION 1
Chapter 13.06 is added to the San Luis Obispo Municipal Code to read as follows:
13.06.010 DEFINITIONS
A. "Change of Ownership" means a transfer of a present interest in real property.
Every transfer of property shall qualify as a"Change of Ownership", except transfer of title
from one spouse to another, whether the transfer is voluntary, involuntary, by operation
of law, by grant, gift, devise, inheritance, trust, contract of sale, addition or deletion of an
owner, property settlement, or any other means. "Change of Ownership" effected other
than by a contract of sale shall be deemed to occur at the time of actual transfer of title.
A"Change of Ownership" resulting from a contract of sale or similar instrument shall be —
so regarded only if escrow is opened or a contract of sale is executed, whichever occurs
last, on or after the effective date of this ordinance.
B. "Change of Use" means change of the occupancy classification as defined in
the Uniform Building Code.
C. "Existing Residential Building" means any structure built and intended primarily
for the shelter or housing of any person.
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D. "Low Water-Use Plumbing Fixtures" means any toilet using a maximum of 1.6
gallons per flush and shower heads designed to emit a maximum of 2.5 gallons per
minute (gpm) of water.
E. "Retrofit' means the replacement of a conventional plumbing fixture with low-
water using plumbing fixtures.
F. 'Water Conservation Certificate" means a certificate acknowledging that
installation of water conserving plumbing fixtures has been completed.
13.06.020 RETROFIT UPON CHANGE OF USE
All existing residential, commercial, industrial, or institutional structures at the time
of change of use shall be retrofitted, if not already so equipped, with low water-use
plumbing fixtures. These fixtures shall be installed and maintained and shall not be
replaced with fixtures which allow greater water use.
13.06.030 RETROFIT UPON EXPANSION OF USE
A. All residential, commercial, institutional, and industrial reconstruction, remodels or
additions that add or change bathroom plumbing fixtures shall include low water-use
plumbing fixtures for the entire facility, including retrofitting of existing plumbing fixtures,
as defined in 13.06.010.
B. No release for occupancy shall be issued without documentation confirming
compliance with this ordinance.
13.06.040 RETROFIT UPON SALE
A. Before the close of escrow for any change of ownership, defined by this
ordinance, of real property within the City, the selling owner(s) or an authorized agent
shall certify compliance with the retrofit requirements of this ordinance by obtaining a
Water Conservation Certificate in accordance with 13.06.050. No property transfer shall
be recorded until verification has been received by the City and a Water Conservation
Certificate has been issued to the seller.
B. Pursuant to the authority vested to the City of San Luis Obispo under Civil
Code Section 1102.6a, the City hereby requires disclosure of the retrofit requirements
of this chapter, in transaction, transfer, or change in ownership subject to the provisions
of this chapter.
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Page 3
C. No liability shall arise, nor any action be brought or maintained against, any
agent of any party to a transfer of title, including any person or entity acting in the
capacity of an escrow, for any error, inaccuracy, or omission relating to compliance with
this section. However, this section does not apply to a licensee, as defined in Section
10011 of the State Business and Professions Code, where the licensee participates in the
making of the certification required to be made pursuant to this section with actual
knowledge of the falsity of the certification.
13.06.050 VERIFICATION
A. Upon retrofitting with water conserving plumbing fixtures, the seller, prior to the
change of ownership, shall obtain from the Utilities Department a "Water Conservation
Certificate", in accordance with administrative procedures established by the Department,
verifying that water conserving plumbing fixtures have been installed. The seller shall
allow an inspection of property by City staff.
B. "Water Conservation Certificates"shall also be available to those who voluntarily
install water conserving plumbing fixtures or have installed water conserving plumbing
fixtures prior to the effective date of this chapter.
13.06.060 NOTICE OF CORRECTION
Whenever the Utilities Director determines that there is a property where low water-
use plumbing fixtures have not been installed as required by this chapter or where..such
fixtures have been removed since initial installation and replaced with other than low
water-use fixtures, the Utilities Director may serve a notice of correction on the owner(s)
of the property on which the violation is situated and any other person responsible for the
violation. The owner of record shall have ninety (90) days to take corrective action.
Failure to take corrective action within ninety (90) days shall constitute a violation of this
chapter.
13.06.070 EXEMPTIONS
The Utilities Director may exempt facilities from the provisions of this chapter, and impose
reasonable conditions in lieu of full compliance herewith, if the Director determines that
there are practical difficulties involved in carrying out the provisions of this ordinance. The
Director shall require that sufficient evidence or proof be submitted to substantiate any
exemption or acceptance of alternatives.
t5-4-
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13.06.080 APPEALS
A. Content of Appeals - An appeal may be made to an Appeals Board,
consisting of representatives from Community Development Department, Finance
Department, and Utilities Department, by any person aggrieved by a decision of the
Utilities Director pursuant to this chapter. The appellant must specifically state in the
notice of appeal:
1. The name and address of the appellant and the appellant's interest in the
decision;
2. The nature of the decision appealed from and/or the conditions appealed from;
3. A clear, complete, but brief statement of the reasons why, in the opinion of the
appellant, the decision or the conditions imposed were unjustified or inappropriate
4. The specific facts of the matter in sufficient detail to notify the City. The appeal
shall not be stated in generalities.
B. Acceptance of Appeal -An appeal shall not be accepted by the Board unless
it is complete.
13.06.090 PENALTIES-INFRACTION.
It is unlawful to fail to comply with the retrofit requirements of this chapter or to
alter or replace low water- use plumbing fixtures required by this chapter with fixtures
other than low water-use plumbing fixtures. Violation of the provisions of this chapter
shall constitute an infraction. Each day any violation of this chapter continues shall be
considered a new and separate offense.
13.06.100 CIVIL NUISANCE
A- Any building or structure set up, erected, constructed, altered, enlarged,
converted, moved, maintained, sold, or the use of which is changed, contrary to the
provisions of this chapter, and/or any use,of any land, building, or premises, established,
conducted, operated, or maintained contrary to the provisions of this chapter, shall be,
�/3
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and same is hereby declared to be a public nuisance, subject to abatement pursuant to
Chapter 8.24.
13.06.110 REMEDIES CUMULATIVE
The decision of the City to pursue either a civil or criminal or abatement action
against a person violating any provision of this Chapter shall not preclude further relief by
use of any other remedy provided herein, or by common law, statute, or ordinance.
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 express 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 synopsis of this ordinance, approved by the City Attorney, together with the
names of council members voting for and against, shall be published once in full, at least
(3) days prior to its final passage, in the Telegram-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 AND PASSED TO PRINT by the Council of the City of San Luis
Obispo at its meeting held on the day of 1992, on motion of ,
seconded by
and on the following roll call vote: —
AYES:
NOES:
ABSENT:
MAYOR RON DUNIN
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ATTEST:
CITY CLERK PAM VOGES
APPROVED:
CITY ADMINISTRATIVE OFFICER
UTI ES DIRECTOR
COMMUNITY DEV L PMENT DIRECTOR
C O EY
ATTACHMENT 4
ORDINANCE NO. (1992 SERIES)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN
LUIS OBISPO ESTABLISHING CHAPTER 13 .06 TO THE
SAN LUIS OBISPO MUNICIPAL CODE INSTITUTING MANDATORY
PLUMBING RETROFIT STANDARDS UPON THE CHANGE OF OWNERSHIP,
CHANGE OF USE, OR REMODEL
On September 1, 1992, the San Luis Obispo City Council voted
_ to introduce Ordinance No. (1992 Series) , which adds
Chapter 13 . 06 to the San Luis Obispo Municipal Code. Primary
provisions of the ordinance are as follows:
1. All existing residential, commercial, industrial, and
institutional structures at the time of change of ownership or
change of use as defined by this ordinance, shall be retrofitted,
if not already equipped, with low water-use plumbing fixtures.
These fixtures shall be installed and maintained and shall not be
replaced with fixtures which allow greater water use.
2. All residential, commercial, institutional, and industrial
reconstruction, remodels or additions that add or change bathroom
fixtures shall meet "New Construction" low water-use plumbing
fixture standards for the entire facility, including retrofitting
of existing plumbing fixtures as defined by this ordinance.
The Council must vote again to approve the ordinance before it
takes effect. That action is tentatively scheduled for , at a
regular City Council meeting to begin at 7: 00 p.m. in the Council
Chambers of City Hall, 990 Palm Street.
Copies of the complete ordinance are available in the City
Clerk's Office in Room #1 of City Hall, 990 Palm Street. For more
information, contact the Water Conservation Office at 549-7213 .
Pam Voges, City Clerk