Loading...
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. �illllilllll IIII`IIIIIIIIIII II CIS of c 1 US OBISPO Retrofit Upon Sale Page 2 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 ��iiii��►►IIIIIIIIIII111°►I��IIII city of fen luis oBispo Retrofit Upon Sale Page 3 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. .5�3 ��►►►iililllll Iii►►ill City of * US o81Spo IIIIII�IlIII� Retrofit Upon Sale Page 4 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. Jt'. illlllllll��� IIIIIIIIIIIIIIIIII city Of ,- n LUIS OBISPO Retrofit Upon Sale Page 5 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 r 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 ��O 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. Retrofit Upon Sale Page 2 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. Retrofit Upon Sale Retrofit Upon Sale 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- Retrofit Upon Sale Page 4 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 Retrofit Upon Sale Page 5 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 Retrofit Upon Sale Page 6 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