HomeMy WebLinkAbout05/05/1998, 4A - 1998 WATER RESOURCES STATUS REPORT F
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CITY O F SAN LUIS O B I S P O
FROM: John Moss,Utilities Director
Prepared By: Gary W. Henderson, Water Division Manager
Ron Munds, Utilities Conservation Coordinator
SUBJECT: 1998 Water Resources Status Report
CAO RECOMMENDATION
1. Receive and file the 1998 Water Resources Status Report
2. Direct staff to initiate the process necessary to clarify policies in the Water Management
Element to the General Plan relative to retrofit and water available for allocation.
3. Affirm 850 acre feet of available water for allocation based on policies contained in the
Water Management Element, population estimate for 1997 and additional development since
1997 population estimate.
REPORT-IN-BRIEF
The annual Water Resources Status Report provides an overview of the City's current water
supply position as well as the status of other programs associated with water resources. The
report also provides an update on the progress relative to water supply projects being pursued by
the City.
With the abundant rainfall this past year, both of the City's water supply reservoirs are at
maximum capacity. In addition to the surface water supplies, groundwater continues to meet a
small portion of the water demand of the City. With these water resources available for City use,
the City has approximately 6 years of water supply assuming a drought period were to begin this
year.
The City's overall water use has continued to increase from the low of 86 gallons per capita per
day (gpcd) in 1991 to 131.5 gpcd for 1997. This is a 53% increase since the end of mandatory
conservation. While the per capita rate has continued to increase, water use is still below the
adopted per capita planning figure of 145 gpcd.
The adoption of the Water Management Element(WME)and the Urban Water Management Plan
(UWMP) in 1994 identified 602 acre feet of water available for new development. The policy
relative to reserving water for infill and intensification within the City limits as of 1994 was
modified in 1996 to allow half of this available supply to be used for new annexation areas.
These figures were based on a 1994 population estimate of 43,919.
The population estimate in 1995 saw a reduction to 41,295 and the latest population estimate is
42,074 for 1997. Based on the current 1997 population estimate, the per capita planning figure
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Council Agenda Report— 1998 Water Resources Status Report
Page 2
of 145 gallons per capita day (gpcd), and other policies contained within the WME, the water
available as of 1997 is 901 acre feet. Based on additional development since the 1997 population
figure estimate, the City currently has approximately 850 acre feet available for new
development.
The City is currently pursuing three projects to meet the identified water resource needs of the
City's General Plan. The Water Reuse Project is likely to be the first additional water supply
project to be added to the City's water resources. With the anticipated resolution this summer of
the protest by the Department of Fish and Game, the project could be supplying the first
customers in the summer of 2000.
The Nacimiento Project is a project being developed by the County of San Luis Obispo. The
project would provide water for north county communities, the City of San Luis Obispo, as well
as some areas south of the City. The draft environmental impact report (EIR) was released for
public comments and the comment period closed on February 1, 1998. Due to the comments
received on the draft, a determination has been made by County staff that a revised draft EIR will
have to be prepared to address alternate alignments and to address other concerns. The current
project schedule anticipates that the County Board of Supervisors will certify the EIR in October
of 1999. Following certification of the document, project participation agreements will be
executed and the design work will be initiated. If the project proceeds on the current schedule,
water deliveries from Nacimiento could occur around the year 2004.
The City has been pursuing the Salinas Reservoir Expansion Project for many years. The revised
EIR is expected to be presented to the City Council for consideration of certification on June 2,
1998. At the certification hearing, the Council will not be asked to approve the project. The
certification of the document will allow the State Water Resources Control Board to utilize the
information in the document to resolve the outstanding protest to the City's water rights permit.
In addition, the certification may allow the City and the County to resolve the agreement terms
relative to the transfer of ownership of the dam and related property from the U.S. Army Corps
of Engineers to the County of San Luis Obispo Flood Control and Water Conservation District.
Following the accomplishment of these tasks, the City would develop the detailed mitigation and
mitigation monitoring plans and associated agreements with private property owners to achieve
the required mitigations. The Council would then have all the information necessary to make a
decision on whether to proceed with the project. The current estimated project schedule shows
that the construction of the project could be completed by the summer of 2003.
The City currently has sufficient water supplies to meet the water demands of existing residents
as well as a limited amount of additional development. At this point there are approximately 850
acre feet of water available for new development.
Council Agenda Report—1998 Water Resources Status Report
Page 3
DISCUSSION
Background
The "Water Resources Status Report"(Attachment A) is an annual report which is prepared to
provide an overview of various issues associated with the City's water supplies. The attached
report discusses four major topics: 1.) Existing Water Supply Status, 2.) Multi-Source Water
Supply Projects, 3.) Water Conservation Program, and 4.) Projected Water Supply Situation. In
addition to the annual status report, the Council requested a thorough discussion of water
availability for new annexation areas and an update on the schedules for supplemental water
supply projects that are currently being pursued. This report will discuss the following areas:
Current Water Supply Status, Water Available for Development, Supplemental Water Supply
Needs, and Supplemental Water Supply Projects.
Current Water Supply Status
With the above-average rainfall this year, both Salinas and Whale Rock Reservoirs are at
maximum storage capacity and continue to spill as of mid-April. The City's combined'water
storage in the two reservoirs is 46,226 acre-feet. It should be noted that if the spillway gates had
been installed in the Salinas Dam, the expanded reservoir would have filled and began spilling 5
days after the spill began this year. This is the third year since the end of the drought that the
reservoir would have filled and spilled had the gates been installed. With the reservoirs filled to
capacity, the City has approximately 6 years of water supply based on the computer storage
model and assumptions listed in Figure 3 of the 1998 Water Resources Status Report.
This years groundwater production was 300.2 acre feet, which was a decrease from the 1996
production of 364.8 acre feet. Groundwater production has been limited due to nitrate
contamination of two of the largest City wells and lower water levels at the other City wells
during summer months. As part of development in the Dalidio area, staff will investigate
opportunities for increasing groundwater production by requesting a site for water treatment
facilities. Another option would be to use untreated groundwater as an additional non-potable
source of supply in conjunction with the water reuse project. This would increase the amount of
water available for non-potable uses.
The City's per capita water demand continues to increase from the low drought period(1991)use
of 86 gallons per capita day (gpcd)to 131.5 gpcd for 1997. This represents a 53% increase since
exiting mandatory conservation in 1992. Although water use is currently well below the 145
gpcd planning figure, long-term water use may continue to increase and additional conservation
measures may be implemented to ensure that citywide water use stays below the adopted planning
figure.
Council Agenda Report—1998 Water Resources Status Report
Page 4
Water Available for Development
1994 Population and Water Fieures
The policies in the Water Management Element of the General Plan determine the water available
for new development. Section 8.2.A. states "The City will make available to new development
only that amount of safe annual yield which exceeds present water use (policy 3.4)." Policy 3.4
and related policies define "present water use" as the current population times the per capita
water use rate (currently established as 145 gallons per capita per day). When the Water
Management Element was adopted in 1994, the population estimate for that year was 43,919.
Based on these figures there was 602 acre feet available for new development.
Policy 8.3 of the Water Management Element reserves water for infill and intensification within
the existing City limits as of July 1994. This policy was added to the Water Management
Element in 1994 and required the City to reserve all the water necessary for infill and
intensification within the 1994 City limits which was estimated to be 569 acre feet. This resulted
in only 33 acre feet available for new annexations to the City. In July of 1996, Council modified
this policy as shown below:
"One half the water needed to serve intensification and infill (as identified in the
table below) within the existing City limits as of July 1994, including the potential
water savings from replacing fixtures in the City (Section 9.1), will be reserved for
use as such development occurs."
Water Available for 1994 City Limits
and for Annexation Areas
Safe Annual Yield 7,735 acre feet
Water needed for 1994 population of 43,919 7,133 acre feet
Available water for allocation 602 acre feet
Reserve for intensification and infill 302 acre feet
Available for post-1994 annexation areas 300 acre feet
Water for new developments is allocated at the time building permits are issued. An important
point to note is that water is not reserved for development in new annexations (after 1994) when
the area is annexed. Water is allocated on a first-come, first-served basis for both infill and
annexation. Since existing water resources and new water supply projects have a cost associated
with developing the water supply, allocating water at the time of annexation could place
additional costs on existing water customers. Allocating water to new development as it occurs
minimizes the cost impacts to existing water customers, yet insures an adequate water supply is
available prior to development
Council Agenda Report— 1998 Water Resources Status Report
Page 5
Since 1994, development has occurred both in new annexation areas and in areas within the City
limits as of July 1994. Table 1 below shows the amount of development in these two areas and
the estimated water available based on the 1994 population figures and the above policies.
Table 1: Water Available for Development Based on 1994 Population
1994 Figures Development Since Water Currently
1994* Available*
Infill &Intensification 302 acre feet 161 acre feet 141 acre feet
New Annexation 300 acre feet 29 acre feet 271 acre feet
Areas
* Actual amount allocated to date for building permits,not full development potential of
annexed areas.
** Based on 1994 population estimates.
If the policy of reserving water for intensification and infill within the existing City limits as of
1994 was modified to require the entire amount to be reserved, a total of 7,702 acre feet would be
needed to serve the build-out within the 1994 city limits (47,420 population). Since the current
safe annual yield is 7,735 a£ and with the development in new annexation areas since 1994,
there would be only 4 acre feet of additional water available at this point to allocate to new
development within annexation areas.
Based on the current policies contained within the WMM and UWW and utilizing the 1994
population figures,there is still water available for both infill and annexation projects.
1997 Population and Water Figures
As stated previously, WME Policy 3.4 defines present water demand as current population times
the planning per capita use rate of 145 gpcd. Water available for development is defined in
WME Policy 8.2 as the difference between the adopted safe annual yield and the present demand
In reviewing the most recent figures for the City's population, the figures have actually gone
down since the 1994 estimates were established by the California Department of Finance. The
population estimate for 1995 was reduced by 2,424 from the 1994 figure. The 1995 population
figure was 41,495 and the latest figure available is 42,074 for 1997. The reduction in estimated
population from 1994 to 1995 is likely the result of assumptions of City population growth
between the 1990 census and 1994 estimate. The current information indicates that the City
population has been stable since 1990, with a declining average household size offsetting
residential construction.
Based on the 1997 population estimate, projections for 1998 population figures and the adopted
planning figure of 145 gpcd, Table 2 below shows the amount of—water which is currently
available for allocation to new development,per WME Policy 3.4& 8.2.
ZIA
Council Agenda Report—1998 Water Resources Status Report
Page 6
Table 2: Water Available for Allocation
Year Population Present Water Demand @ Safe Yield Amount Water Available for
145 gpcd Allocation
1997 42,074 6,834 acre feet 7,735 acre feet. 901 acre feet
1998 42,382* 6,885 acre feet 7,735 acre feet 850 acre feet
* Population increase based on addition of 134 dwellings since 1997 estimates and an
average of 2.3 people per dwelling unit.
In order to maintain the most up to date and accurate accounting of water available for allocation,
staff recommends returning to Council annually in June with the annual Water Resources Status
Report and an update of the most recent population values. Council may at that time each year,
reevaluate the water available for allocation for the upcoming year, while considering all other
factors(i.e. supply project status, reservoir conditions, actual per capita use rate, etc.).
Based on the water available for allocation, as indicated in the above table, and projects of 1%
population growth each year, there are many years of available water to allocate for new
development Figure 1 in the summary section at the end of this report shows a graphical
representation of this information
Actual vs.Planning Water Demand
As stated earlier in this report, the City's per capita water use rate for 1997 was 131.5 gpcd based
on the 1997 population estimate of 42,074. This is still below the adopted water planning figure
of 145 gpcd. The Utilities Department monitors per capita water use on a monthly basis in order
to follow trends in city-wide water use and to estimate water use rates for the coming year. The
per capita figures utilize the population estimates provided by the State. If the State's population
estimates are lower than the"actual"City population, using the lower State figure would result in
higher per capita use rates since actual water use is divided by the estimated population figure. If
the City's water use rates began approaching or exceeding the 145 gpcd figure, actions would be
initiated to control water use and/or limit additional development. This process provides a
second verification to insure that the City does not exceed our available water resources and a
safeguard for fluctuations in City population estimates from the State.
Retrofit vs.Available Supply
The adoption of the 145 gpcd figure was based on the assumption that the entire City has been
retrofit with low-flow fixtures. It is currently estimated that approximately 56% of the toilets
throughout the City have been retrofitted. There has been confusion concerning the policies on
"water available for allocation" and the "retrofit requirement". The-two policies are actually
independent except that the 145 gpcd figure assumes all facilities throughout the City have been
Council Agenda Report—1998 Water Resources Status Report
Page 7
retrofitted. To clarify this issue, staff recommends making a minor change to the wording of the
policies to provide clear separation between the two issues as shown below:
1. Water available for allocation is based solely on the per capita planning figure (145
gpcd) times the current population. This value is then subtracted from the adopted
safe annual yield value to determine the amount of allocation available each year.
2. All new development shall retrofit at a 2:1 ratio as a matter of policy, independent of
available allocation or additional new water sources, until the City retrofit is
essentially complete.
If Council concurs with these minor modification, staff will initiate hearings to amend the Water
Management Element of the General Plan. This will require consideration of the modifications
by the Planning Commission prior to returning to the Council for approval.
Supplemental Water Supply Needs
Supplemental water supplies are needed based on the policies contained within the Water
Management Element of the General Plan. Additional water is needed to meet the City's full
build-out population of 56,000 (as identified in the City's General Plan),to develop a"reliability
reserve", and to offset reduction in water supplies resulting from siltation at Salinas and Whale
Rock reservoirs. The City's current adopted safe annual yield from Whale Rock and Salinas
reservoirs and groundwater resources is 7,735 acre feet. Table 3 below shows the current figures
for additional supplemental water supplies necessary to meet the adopted policies.
Table 3: Additional Water Supplies Needed
Water Demand at Full Build-out* 9,096 acre feet
Reliability Reserve 2,000 acre feet
Siltation 500 acre feet
TOTAL 11,596 acre feet
Current Safe Annual Yield 7,735 acre feet
Additional Water Supplies Needed 3,861 acre feet
* Based on 56,000 population and 145 gpcd
Based on the policies in the Water Management Element of the General Plan, the City needs to
develop an additional 3,861 acre feet of safe annual yield to meet the goals of the General Plan.
Council Agenda Report—1998 Water Resources Status Report
Page 8
Water Supply Project Status
The City is currently pursuing the Water Reuse, Nacimiento and Salinas Reservoir Expansion
projects to meet the additional water supply needs of the community in the future. A thorough
discussion of the status of each project is provided in the attached 1998 Water Resources Status
Report. This report will briefly summarize the current status of each project and provide a best
guess schedule for each project and a discussion of the likelihood of project completion prior to
exhausting the current water supplies available for new development. Figure 6 in the attached
1998 Water Resources Status Report provides a graphical presentation of this analysis. In
addition to the current projects being pursued, the City may have other water projects available
for consideration should the three current projects fail to meet the City's supplemental water
supply needs.
Water Reuse Project
The Water Reuse Project is likely to provide the first additional water resources for the City. The
Water Reuse Project will utilize water from the City's upgraded Water Reclamation Facility to
irrigate parks, playgrounds, and commercial and residential landscaping. It is estimated that the
current project could provide up to 1,200 acre feet per year of additional water supplies to the
City. Staff has estimated that reclaimed water could initially offset 400 to 700 acre feet per year
of existing potable demand for existine non-potable uses.
The final EIR was certified by the City Council on March 25, 1997. In December of 1997,
Brown and Caldwell was selected as the design consultant for the Water Reuse Project. The
consultants are currently working on the preparation of the engineering report which includes an
evaluation of the potential user sites. Project design is on hold pending resolution of the protests
to the State Water Resources Control Board (SWRCB) relative to the change in place and
purpose of use of the treated wastewater as discussed in the following paragraph.
The final hurdle to overcome to successfully move forward with this project is the resolution of
protests to the City's request to the SWRCB relative to the use of the recycled water for
irrigation throughout the City. Staff are currently working with National Marines Fisheries
Service (NMF'S) to obtain a `Biological Opinion" relative to the potential impacts to steelhead,
which has been recently added to the Federal list of "threatened" species. It is likely that
following the release of the NMFS opinion paper, staff will be able to resolve the protest from
the Department of Fish and Game which was based on concerns for impacts to the steelhead.
Currently Fish and Game staff are requesting a dedication of a minimum of 3 cubic feet per
second(cfs) at all times. The project dedication is 1.7 cfs which results in the 1,200 acre feet per
year figure. If a 3 cfs release was required, the project yield would be reduced to 800 acre feet
per year. The project would still be economically feasible at the 800 acre foot amount.
Once the protests are resolved, the City will have no obstacles to the completion of the project.
This project represents the strongest assurance of additional water supplies to meet the projected
future City water demands. Staff estimates that recycled water may be delivered to the first
Council Agenda Report— 1998 Water Resources Status Report
Page 9
customers in the summer of 2000. Based on current negotiations with Fish and Game and
NMFS, City staff are confident that the project will proceed in the near future. A minimum of
800 afy can be safely projected as the project's yield.
Nacimiento Project
The Nacimiento Project is proposed by the County of San Luis Obispo to provide water to north
county communities as well as the City of San Luis Obispo and areas just south of the city. The
draft EIR was released for public review and comments in August of 1997. The comment period
was scheduled to close on October 15, 1997 but was extended to February 1, 1998 at the request
of north county agencies and individuals. Based on the comments received, County staff have
determined that a revised draft EIR will need to be prepared to address alternate alignments as
well as address other areas of concern. The current schedule anticipates that the revised draft
EIR will be released in April of 1999 for public review. The schedule anticipates that the
certification of the final environmental impact report for the Nacimiento Project would be
considered by the Board of Supervisors in October of 1999. Following certification and project
approval, the County will initiate procurement of final participation agreements with the project
participants. The County will then proceed with final design, engineering and construction If the
project proceeds on the current schedule, water deliveries from Nacimiento could occur around
the year 2004.
The County has stated that the project will be designed to deliver the full entitlement from
Nacimiento Lake of 16,200 acre feet per year. As such, the current level of participation will be
critical to the project success. If too many participants drop out of the project or significantly
reduce their requested water allocation, the project costs for other participants will increase
which may result in abandonment of the project at this time. A number of the north county
participants have questioned whether their agencies need the water at this time and are concerned
about the impacts to their agencies water rates. Completion of the Nacimiento Project by the
year 2004 is questionable. However, there is broad consensus that the Nacimiento Project will
be needed by all agencies at some point in the future. It is the variability in timing of water needs
that creates doubt as to the certainty of this water supply project at this time. The Nacimiento
Project is the most important and last significant local water resource available for the County's
future and as such will likely someday be constructed and become available as a source of water
for the City.
Salinas Reservoir Expansion Project
The City of San Luis Obispo has been pursuing the Salinas Reservoir Expansion Project for
many years. The revised draft EIR was released for public review and comment in May of 1997.
The public comment period closed on July 25, 1997, and staff anticipates returning to the City
Council for certification of the EIR on June 2, 1998. Since the decision relative to the
Nacimiento Project will not be made until after the Nacimiento Project EIR certification in
October of 1999, staff will recommend that the Council only certify the Salinas EIR in June and
not make the decision to proceed with the Salinas Reservoir Expansion Project at that time. The
Council Agenda Report—1998 Water Resources Status Report
Page 10
certification of,the document will allow the State Water Resources Control Board to schedule a
hearing to resolve an outstanding protest to the City's water rights permit. Resolution of the
protest to the City's request for a time extension to our water right's permit for Salinas has been
on hold pending completion and certification of the EIR. The SWRCB will use the analysis
contained in the EIR to evaluate the merits of the protest, define terms of dismissal and grant or
deny the City's requested time extension.
In addition to the State Board hearing process,the City will need to proceed with and accomplish
the transfer of ownership of the dam and facilities from the federal goverment. The U.S. Army
Corps of Engineers has stated that the expansion project will not be allowed to proceed until the
dam and surrounding property have been transferred to a local agency. City staff will be working
with County staff following certification of the EIR to allow the property to transfer to the
County Flood Control and Water Conservation District. The studies and negotiations necessary
to accomplish the ownership transfer will likely take several years.
Upon completion of the ownership transfer and resolution of the protest to the City's water rights
permit, mitigation and mitigation monitoring plans will be developed and negotiations with
private property owners for implementation of the mitigations will be completed prior to
Council's direction to proceed with the project. It is likely that the Council will have to make
findings of overriding considerations relative to several short term significant impacts of the
project. It is also possible that following the City's decision to proceed with the project and the
filing of the "Notice of Determination", that individuals or agencies may challenge the adequacy
of the CEQA document. A legal challenge to the EIR could result in an additional 12 to 18
month delay.
There are several hurdles that must be overcome to proceed with the Salinas Reservoir
Expansion Project. While the steps needed to proceed with this project may seem large, unlike
the Nacimiento Project, the City has a greater degree of control of the decision on whether the
project will move forward. While there are numerous complex steps to completion of the Salinas
Reservoir Expansion Project, staff considers the project to be extremely viable once a strong
commitment to proceed is made. The revised EIR coming to Council in June is an excellent
document that staff feels will withstand challenge if necessary. The Army Corps of Engineers is
willing and anxious to transfer the dam and related property to a local entity and the County is
willing to accept ownership of the dam and property. The actual expansion of the dam (i.e.
installation of the spillway gates) is a relatively simple engineering project, the majority of the
impacts will be mitigated, and the Fish and Game Department did not have significant comments
or concerns on the EIR. There is no overriding obstacle to completion of the project given
adequate resolve to do so. If the identified steps can be accomplished in a timely manner, the
installation of the spillway gates could be completed by the summer of 2003. This schedule is
very optimistic and schedule delays may be anticipated based on past experience.
Council Agenda Report—1998 Water Resources Status Report
Page 11
Other Water Supply Options
If the City is unable to accomplish some combination of the three water supply projects
identified above to provide the water necessary to meet the future City needs, there may be other
projects that could provide additional water resources to the City. Two readily identifiable
projects which could provide some level of additional water supplies are desalination and/or
additional groundwater production.
Seawater desalination was pursued during the drought of 1987 through 1991. The City was
poised to proceed with the construction of a $20 million temporary desal plant at the Morro Bay
Power Plant. The project would have been allowed to use the PG&E site for only five years.
The cost for this additional water was estimated to range from $2,200 to $2,800 per acre foot in
1991. If the City pursued a desalination project in the future, the City would need to locate a site
near the ocean and construct intake, outfall, and delivery pipeline facilities in addition to the
desalination treatment plant. These costs are likely to be significant but future technical
advances in desalination processes may reduce the costs to reasonable levels. Additionally, the
longer life span of a permanent facility will reduce the cost per acre foot for desalination.
Groundwater production in the San Luis Obispo Basin could be expanded in the future as
discussed previously in this report. Treatment facilities would be necessary to remove nitrates
and PCE contamination in the groundwater. Increasing groundwater production during normal
and abundant rainfall years in a conjunctive manor with the City's surface water supplies could
increase the available water supplies for the City. Additional studies and analysis would be
necessary to determine the additional safe annual yield which could be depended on.
Summary
In summary, the City of San Luis Obispo currently has sufficient water supplies to meet the
water demands of existing residents as well as limited development for several years. At this
point, there are approximately 850 acre feet of water available for new development. Since the
water is not allocated until the issuance of building permits, it will be many years before new
development (both infill and annexations) uses up the available water resources. The figure
below provides a graphical presentation of the water availability. It will also be several years
until the Water Reuse Project is completed and several years before decisions can be made on the
Nacimiento and Salinas Reservoir Expansion Projects. Staff would not at this time recommend
limiting attainment of Council and General Plan goals(i.e. annexation development)based solely
on concern over resource adequacy. Staff feels that with a commitment to providing the water
resources required by the General Plan,that adequate water resources can and will be developed.
Staff will continue to monitor and report annually to Council the status of our water resources
and planning efforts to insure that adequate water resources are available and supplies are not
overextended.
Council Agenda Report—1998 Water Resources Status Report
Page 12
Available Water Suppies vs.
Projected Water Demand
9,500 nd
iiwit Present Water Dematd
9'000 —Available Safe Anmtal Yrcld
0
8.500N
w�a®.aoo.t. o •
N
8.000
c�-7.735&r. •
7,500
c�
7.000 Atsuruptions
1. Additional water supplies assume
6.500 1/2 yield to'reliability reserve'
6.000 2. Projected water demand assumes
145 gcpd and 196 population growth
5,500 every year from 1997.
5.000 g
Year
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
Attachment: A. 1998 Water Resources Status Report
City of San Luis Obispo
1998 WATER RESOURCES STATUS REPORT
OVERVIEW
The City of San Luis Obispo's first annual "Water Operational Plan" was adopted by the Council
on June 4, 1985. The plan was prepared in response to the City's water demand exceeding the
established safe annual yield from the water supply sources available to the City at that time. The
annual reports were prepared for Council consideration each year thereafter (with the exception
of 1994& 1995) and were particularly important during the drought period of 1986-91.
The purpose of the annual "Water Resources Status Report" is to provide an overview of various
issues associated with the City's water supplies. This report discusses four major topics: 1.)
Existing Water Supply Status, 2.) Multi-Source Water Supply Projects, 3.) Water Conservation
Program, and 4.)Projected Water Supply Situation.
I. INTRODUCTION
The City Council adopted the Urban Water Management Plan (UWMP) on November 15, 1994.
Several of the UWMP policies, which are contained in the Water Management Element of the
General Plan, were revised by the City Council and adopted on July 2, 1996. The UWMP and
the Water Management Element establish policies and directions relative to water supplies and
allocation of water to new development. The 1998 Water Resources Status Report reviews the
current reservoir storage and groundwater production situation and the status of the computer
storage model, and then examines the water conservation strategies in use at this time. With the
above normal rainfall this past year, the City's total water storage is at 100% of the maximum
available storage capacity as of April 1, 1998. It is important to note that even with the improved
water outlook, indoor and outdoor water use efficiency must continue to be a high priority for the
City as our water accounting policies rely on a sustained level of conservation.
IL EXISTING WATER SUPPLY STATUS
Rainfall totals for the period from July 1997 to April 1998 were well above normal. The Salinas
Reservoir received 35.21 inches of rain and the Whale Rock Reservoir received 33.41 inches.
The City's water storage in our water supply reservoirs is at maximum capacity.
The City's reservoir water supply is augmented by the use of groundwater. The City's
groundwater production has experienced a significant reduction since 1991 and 1992 as a result
of the loss of several key municipal wells due to groundwater contamination. The Auto Park
Way and Denny's wells have been shut down due to elevated nitrate levels. The Auto Park Way
well has been permanently abandoned since it can no longer be used as a City water supply and
the site is not large enough to accommodate treatment facilities. The UWMP identifies 500 acre
feet per year of groundwater production, which is added to our reservoir's safe annual yield, as
t,<iq -/3
1998 Water Resources Status Report
Page 2
the basis for water available for allocation to new development and planning additional water
supply needs. This past year's production(January 1 through December 31) was only 300.2 acre
feet. As part of development in the Dalidio area or earlier if water conditions warrant, staff will
develop opportunities for increasing groundwater production by establishing a site for water
treatment facilities. Another option would be to use the groundwater without additional treatment
as an additional non-potable source of supply for the water reuse project. This would increase
the amount of water available for non-potable uses.
The Salinas and Whale Rock Reservoirs both began spilling on February 2, 1998 and both
continue to spill as of April 1'. During the period from February god to April la, 77,887 acre
feet flowed over the spillway at Salinas Dam and 14,955 acre feet flowed over Whale Rock Dam.
It should be noted that if the spillway gates had been installed at Salinas Dam, the reservoir
would have filled and began spilling 5 days after this years spill began. Whale Rock spilled for
the second consecutive year which is the eighth time the dam has spilled since construction was
completed in April of 1961. Both reservoirs are at maximum capacity with a total City storage
capacity of 46,226 acre feet. This is approximately six years of water supply based on the
computer storage model and assumptions listed in Figure 3.
Water ConsgWdon and Conservation
The City exited mandatory water conservation in March 1992. Since that time, per capita water
use has been increasing each year (Figure 4). Per capita water use reached a low in 1991 during
mandatory conservation of 86 gallons per capita per day (gped). For 1997, the per capita use
rate was 131.5 gpcd. This represents a 53% increase since exiting mandatory conservation. The
increase may be attributable to the re-establishment of landscapes lost or damaged during the
drought and maintaining existing
landscape adequately. It should Table 1:Population Estimates&Water Use
be noted that the population
figures used to calculate per
capita water use rates are Year Population Per Capita
determined by the California 1990 419958 89 gped
Department of Finance. The
population estimate in 1995 1991 42,178 86 gped
indicated a reduction in the City
population from the 1994 1992 42,922 98 gped
estimate from 43,919 to 41,495. 1993 437397 102 gped
The reduction in population from 1994 439919 106 gped
1994 to 1995 is more likely a
result of assumptions of City 1995 41495 120 gped
population growth between the —
1990 census and 1994 estimate. 1996 419404 124 gped
1997 42,074 1315 gped
1998 Water Resources Status Report
Page 3
The current information indicates that the City population has been stable since 1990, with a
declining average household size offsetting residential development. As identified in the UWMP,
the per capita use rate utilized for projecting the City's long-term water supply needs is 145 gpcd.
City residents continue to efficiently use water but long-term water use may continue to increase
even with an ongoing water conservation program.
Water Available for Devela�ment
The policies in the Water Management Element to the General Plan determine the water available
for new development. Section 8.2.A. states "The City will make available to new development
only that amount of safe annual yield which exceeds present water use (policy 3.4)." Policy 3.4
and related policies define present water use as the current population times the per capita water
use rate (currently established as 145 gallons per capita per day). Since the 145 gpcd figure was
based on the assumption that the entire City had been retrofitted with low flow toilet and fixtures,
the polices continue to require retrofitting of existing facilities served by the City to obtain a
water allocation. Based on these policies, the table below indicates the water available to allocate
to new development in 1997. Figure 6 (attachment to this report) illustrates the City's available
water supplies and future supply project timing versus the projected water demands in the future.
The future water demand projections are based on a 1% population growth rate and the 145 gpcd
planning figure.
Table 2: Water Available for Allocation
Year Population Present Water Demand @ Safe Yield Amount Water Availablefor
145 gpcd Allocation
1997 42,074 6,834 a.f. 7,735 a.f. 901 a.f.
Since there has been confusion relative to the allocation policies relative to "water available for
allocation" and the "retrofit requirement", staff recommends making a minor modification in the
polices to provide clear separation between the two as discussed below:
1. Water available for allocation is based solely on the per capita planning figure (145
gpcd) times the current population. This value is then subtracted from the adopted
safe annual yield value to determine amount of allocation available each year.
2. All new development shall retrofit at a 2:1 ratio as a matter of policy, independent of
available allocation or additional new water sources, until such time that a
determination is made that the City-wide retrofit is 100% complete.
1998 Water Resources Status Report
Page 4
If Council concurs with these minor modifications, staff will implement the necessary actions to
amend the Water Management Element to the General Plan. This will require consideration of
the modifications by the Planning Commission prior to returning to the Council for approval.
III. MULTI-SOURCE WATER SUPPLY PROJECTS
In November, 1990, the City Council adopted a multi-source water supply policy. The adopted
U IAP Policy 2.7 reaffirmed the City's strategy of utilizing multiple water supply sources to
meet our current and future water needs. The policy states that "The City shall continue to
develop and use water resource projects to maintain multi-source water supplies, and in this
manner, reduce reliance on any one source of water supply and increase its supply options in
future droughts or other water supply emergencies."
Policies which were adopted in the UWMP, the Water Management Element and the Land Use
Element have revised previous water demand projections. The projected total amount of water to
serve General Plan build-out, under the revised plans and policies, is 11,596 acre feet. This
figure includes a 2,000 acre-foot reliability reserve and 500 acre feet for loss of safe annual yield
due to siltation at the reservoirs. The City's current adopted safe annual yield from the reservoirs
and groundwater is 7,735 acre feet. This results in an additional supplemental water supply
requirement of 3,861 acre feet per year.
Since one of the major goals of the Council is the pursuit of additional long term water supplies,
the City is pursuing the Water Reuse Project, Nacimiento Pipeline Project, and the Salinas
Reservoir Expansion Project to provide additional water resources for the community. The
following is a brief status report on each of these projects being considered to meet the City's
future water needs.
Water Reuse
Recycled water or water reuse will provide a reliable long-term water supply source for the City.
Since the completion of a $30 million upgrade in 1994, the City's Water Reclamation Facility
(WRF) produces a tertiary treated effluent. At this advanced level of treatment, the reclaimed
water can be used for irrigation of parks, playgrounds, and all types of commercial and
residential landscaping. It may also be used in industrial processes, for construction, and other
non-potable uses.
By using treated wastewater effluent for non-potable water demand such as landscape irrigation,a
portion of the City's potable water will be made available for other additional potable uses. Staff
has estimated that reclaimed water could offset 400 to 700 acre feet per year of M"stm potable
water demand for existing non-potable uses and even more in future new development.
44--- /&
1998 Water Resources Status Report
Page 5
Before reclaimed water can be delivered to customers,the following must be accomplished:
■ Receive permit from State Water Resources Control Board to change purpose and
place of use of treated wastewater
■ Prepare an engineering report and submit it to the Department of Health Services
(DHS)and the Regional Water Quality Control Board
■ Establish user contracts and an ordinance requiring use when reclaimed water is
available
■ Establish revenue program
■ Perform detailed design of storage,pumping and distribution facilities
■ Construction of distribution facilities
The final EIR was certified by the City Council on March 25, 1997. There are five protests to
the City's application to the State Water Resources Control Board (SWRCB) for a permit to
change the place and purpose of use of the treated wastewater. Staff anticipates that this issue
will be resolved during the summer of 1998 without a SWRCB hearing after the National Marine
Fisheries Service completes its `Biological Opinion" of the impacts to the steelhead.
In December 1997, Brown and Caldwell was selected as the design consultant for the Water
Reuse Project. They have been authorized to proceed with the preparation of the engineering
report which includes an evaluation of the potential user sites. Staff estimates that recycled water
may be delivered to the first customers in the summer of 2000.
Nacvniento Water Supply Project
The County of San Luis Obispo is continuing to pursue the Nacimiento Water Supply Project to
make beneficial use of its entitlement of 17,500 acre-feet per year (afy) of water from Lake
Nacimiento. The current phase of the project involves the preparation of an Environmental
Impact Report (EIR) and preliminary engineering analysis. The City of San Luis Obispo is
participating in the project with an allocation request of 3,380 afy, as approved by Council on
September 20, 1994.
The draft environmental impact report for the Nacimiento Project was released for public
comment in August of 1997. The comment period was scheduled to clese on October 15, 1997,
but due to requests by north county agencies and individuals,the comment period was extended
/./*-/7
1998 Water Resources Status Report
Page 6
to February 1, 1998. Based on the comments received, a revised draft E1R is deemed necessary
and will be prepared to assess alternative pipeline alignments and project alternatives. The
current schedule anticipates that the revised draft EIR will be released in April of 1999 for public
review. The schedule anticipates that the certification of the final environmental impact report
for the Nacimiento Project will be considered by the Board of Supervisors in October of 1999.
Following certification and project approval, the County will initiate procurement of final
participation agreements with the project participants. The County will then proceed with final
design, engineering and construction. If the project proceeds on the current schedule, water
deliveries from Nacimiento could occur around the year 2004.
Salinas Reservoir Expansion Project
The first draft environmental impact report was released for public review and comments in
November of 1993. The formal comment period closed on January 3, 1994. Many comments
were received and a number of areas of potential concern were raised by individuals and
regulatory agencies. Based on the comments received, Council approved additional studies and
directed that the draft EIR be updated to more fully address the areas of concern. Council also
directed that the project proceed on a parallel track with the Nacimiento Pipeline Project. With
the delays noted above relative to the Nacimiento Project, staff recommends that the City Council
consider certification of the Salinas Reservoir Expansion Project EIR prior to release of the
revised draft EIR for the Nacimiento Project but delay the decision relative to approval to
proceed with the Salinas Project until more information is available for the Nacimiento Project-
The
rojectThe additional studies have been completed and the revised draft EIR public comment period
closed on July 25, 1997. Responses to the comments received have been prepared and are
currently being finalized. It is anticipated that the final EIR will be presented to Council for
certification in June of 1998. Certification of the document is a critical step, even if the Council
ultimately decides not to proceed with construction at this time. The certification of the
document will provide the information the State Water Resources Control Board needs to
schedule a hearing to resolve the protest to the City's time extension request relative to our water
rights permit. The certification of the EIR will also allow the City and County to finalize the
property transfer agreements which will facilitate the federal government's desire to transfer the
dam, related facilities,and property surrounding the lake to a local agency.
Once these tasks have been accomplished,the City can proceed with development of the detailed
mitigation/mitigation monitoring plans and negotiations with private property owners relative to
these plans. The City can also initiate the design work necessary for the expansion project.
Constriction is estimated to require 12 to 18 months to accomplish. An optimistic schedule for
the project would see completion of the construction work in the summer of 2003.
Groundwater Wegs
1998 Water Resources Status Report
Page 7
The current groundwater program utilizes three wells for domestic use, two wells for irrigation at
the City golf course and one well at the Corporation Yard for construction water uses. The
City's two largest producing wells, the Auto Parkway and Denny's wells, have been shut down
due to elevated nitrate levels. The Pacific Beach#1 & #2 wells are not operated simultaneously
due to well interference problems between the two sites. At this time, wells are producing an
average of 25 acre feet per month which represents about 6% of the total City water demand.
The relatively small groundwater basin which supplies the majority of the City's groundwater
production is recharged very quickly following normal rainfall periods. The water levels in the
basin also fall relatively quickly following the end of the rain season. This fluctuation of the
basin limits the amount of water that can be withdrawn on an annual basis. The UWMP has
adopted a goal of 500 acre feet per year of groundwater production. This past year's production
from the available wells was only 300.2 acre feet which was a decrease from the previous year's
amount of 364.8 acre feet. Extensive use of groundwater sustained the City through the last
drought. With the loss of the Auto Parkway and Denny's wells to nitrate contamination,the City
should not depend on groundwater for future drought protection unless additional treatment is
provided.
Cloud Seedins
The City of San Luis Obispo initiated a cloud seeding program in January of 1991 due to limited
water supplies and the continuing drought. Atmospherics Incorporated of Fresno, California was
selected to provide a three-year cloud seeding program. The third year of the program was
terminated following heavy rains in December and January of 1993 and the impending
overtopping of the Salinas Reservoir. The program targeted both the Salinas and Lopez
Reservoirs and the City and County shared the costs for the program. Since the Whale Rock
Reservoir drainage area is relatively small and the runoff characteristics are not as favorable, it
was determined that Whale Rock is not a good candidate for cloud seeding operations. Cloud
seeding programs may be warranted in the future when water levels drop significantly at Salinas
Reservoir. Since this year's rains have fulled Salinas and Whale Rock reservoirs to capacity and
water levels will not drop significantly prior to next winter, cloud seeding is not recommended
for the upcoming season.
IV. WATER CONSERVATION PROGRAM
Water conservation has played an ever increasing role in the City's over-all water supply
development and management strategies since 1985. With the adoption of the Urban Water
Management Plan (UWMP) in November 1994, the policies regarding water conservation will
provide the essential foundation in sustaining long-term water supply dependability by using
our existing supplies more efficiently.
In September 1991, the Council approved and authorized the Mayor to sign the"Memorandum
1998 Water Resources Status Report
Page 8
of Understanding" (MOU) with the California Urban Water Conservation Council regarding
urban water conservation and the implementation of the sixteen "Best Management Practices"
(BMPs). The BMPs were presented as part of the UWMP. The MOU acts as a road map for
the City's long-term water conservation program and signifies a commitment to the BMP
process.
The following information is a summary of the water conservation program's key components:
Retrofit Rebate Program
The retrofit Rebate Program has been in effect since 1990 and is the longest, continually
running toilet rebate program in the State. It is important to note that funding levels and rebate
reimbursements have varied from 1990 through the fiscal year 1992/93 as noted in Table 2.
The downward trend in participation can be attributed to building activity within the City in
which developers provide toilets, showerheads and faucet aerators at no cost to customer in
order to obtain a building permit. Rebate activity significantly increases during periods when
building activity decreases.
Table 2: Summary of Retrofit Rebate Program
Fiscal Year #of Funds Funds Rebate 7
Toilets Allocated Expended A-mount
1990/91 1,250 $100,000 $100,000 $80
1991/92 942 $100,000 $65,990 $70
1992/93 1,313 $137,500 $133,550 $100
1993/94 898 $137,500 $85,230 to$100
1994/95 896 $137,500 $83,777 to$100
1995/96 607 $100,000 $57,323 to$100
1996/97 448 $100,000 $43,213 to$100
7/97 to 3/98 341 $80,000 $33,950 to$100
The Retrofit Rebate Program has been responsible for almost 7,000 toilets being replaced and
represent an approximate water savings of 200 acre feet per year at an amortized cost of
approximately $300 per acre foot.
1998 Water Resources Status Report
Page 9
Retrofit Upon Sale Program
The Retrofit Upon Sale
Ordinance was adopted Table 3: Summary of Retrofit Upon Sale Program
in October of 1992 with
an effective enforcement Year of Issued WCC of BathroonLs
date of January 1993. 1993 730 1,518
After approximately 5
years of enforcement, the 1994 649 I 2,205
ordinance has been very 1995 855 3,012
successful and with
extensive staff effort has 1996 2,099
been well received by the 1997 926 2,190
real estate and escrow
business community. This is a staff-intensive program requiring monitoring of compliance,
tracking escrow closures, issuing follow-up correspondence, issuance of the "Water
Conservation Certificates" (WCC) and entering information into the master retrofit database
computer system. Table 3 summarizes the retrofit upon sale activity since the ordinance went
into effect.
It is important to note that people required to retrofit their property upon sale are eligible to
receive a rebate. Also, developers that need to retrofit as a condition of project approval often
retrofit homes that are being sold. Therefore the numbers listed in Table 3 may also be
included in Tables 2 and 4.
Water Offset Program
Table 4: Summary of Water Offset Program
The Water Offset Program was established
as part of the Water Allocation Regulations
1993 1,261 538 to allow development when there is no
1994 1,727 124 water available to allocate. In 1994 with
the adoption of the UWMP and the new
1995 2,208 525 planning figure of 145 gpcd, there was
1996 1,155 511 water available to allocate, but since the 145
1997 1,458 528 figure assumed full retrofit of all facilities in
the city, the retrofit requirement was still
deemed necessary_ Developers must make
changes, in facilities served by the City, which will reduce long-term water usage by twice the
t fie}—a I
1998 Water Resources Status Report
Page 10
allocation required for the new project. Table 4 summarizes the retrofit activity through the
Water Offset Program for the last five years.
Bathroom Retrofit Summary
With the adoption of the UWMP in 1994, bathroom retrofitting has been identified as a
significant water demand management strategy and integral part of the City's overall
management plan. To date, 18,001 bathrooms (toilets) have been retrofitted either through the
Retrofit Rebate, Retrofit Upon Sale and/or the Water Offset Programs. This represents
approximately 56% of the total toilets in the City.
Water Audit Program
The water conservation office offers free indoor and outdoor water audits upon request. The
requests are typically received from people experiencing high water bills, residents
participating in the low income assistance program or customers requesting a utility bill
adjustment through the Utility Billing Adjustment Committee. During the 1996/97 fiscal year
the office performed approximately 300 water audits for both residential and commercial
customers. These water audits often reveal problems which are then corrected by the property
owner, which results in lower water use and associated billing charges.
Public Information & Education
In its ongoing effort to educate the public on efficient resource utilization, the Utilities
Conservation Office provides informational brochures on a variety of water conservation and
recycling topics upon request. Additionally, staff has developed and implemented three
informational campaigns during the last year: 1) the resource management pop quiz; 2) the
SLO Answer Man; and 3) the W.I.N. Program (Working to Improve Neighborhoods). The
information has been distributed through paid media advertising, public service announcements
and the Utilities Department newsletter. The current emphasis in the water conservation
program's information and education campaign is efficient irrigation practices.
1998 Water Resources Status Report
Page 11
V. PROJECTED WATER SUPPLY SITUATION
Reservoir Storage Curve
The Reservoir Storage Curve is integral to the City's annual water plan analysis. It is a computer
model used to estimate the City's future reservoir storage based on historical weather patterns,
water use projections, reservoir data and available groundwater supplies. The model is used to
forecast the City's water supply position and to make certain water policy recommendations.
The curve has been updated to reflect the City's current storage and the policies contained in the
Urban Water Management Plan.
The model predicts current water supplies would last until May of 2004, under a set of
assumptions that represent the weather patterns during the worst case drought of 1986-91.
SUMMARY
The City is in a favorable water supply situation with this past year's above average rains which
filled both reservoirs to capacity. Even with this improved short-term outlook, the need for
supplemental water supplies is evident and the continued efficient use of water is crucial. With
the multi-source water policy, a number of supply projects under development, strong water
conservation program and other related policies which were adopted as part of the UWMP, the
City is pursuing a direction which will create a reliable supply of water to meet our customers
current and future needs.
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Water Allocation and
Retrofit Policies Clarification
1 . Water available for allocation is based solely on the per
capita planning figure (145 gpcd) times the current
population. This value is then subtracted from the
adopted safe annual yield value to determine the amount
of allocation available each year.
2. All new development shall retrofit at a 2: 1 ratio as a
matter of policy, independent of available allocation or
additional new water sources, until the City retrofit is
essentially complete.
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CITY LIMITS �'� LEGEND
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