CC 2015-11-10_09g Resolution_Water Shortage RequirementsMEMORANDUM
TO: CITY COUNCIL
FROM: DIANNE THOMPSON, CITY MANAGER
BY: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
GEOFF ENGLISH, PUBLIC WORKS DIRECTOR
DEBBIE MALICOAT, ADMINISTRATIVE SERVICES DIRECTOR
DAVID HIRSCH, ASSISTANT CITY ATTORNEY
SHANE TAYLOR, UTILITIES SUPERVISOR
KELLY HEFFERON, ASSOCIATE PLANNER
RYAN CORNELL, ACCOUNTING MANAGER
SUBJECT: CONSIDERATION OF A RESOLUTION AMENDING EXHIBIT A OF
RESOLUTION 4659 RELATING TO THE MANDATORY PENAL TIES
FOR FAILING TO MEET DECLARED STAGE 1 WATER SHORTAGE
EMERGENCY WATER USE REQUIRE:MENTS FOR CUSTOMERS
WHOSE Bl-MONTHLY WATER USE IS 10 UNITS OR LESS
DATE: NOVEMBER 10, 2015
RECOMMENDATION:
It is recommended the City Council adopt a Resolution amending Exhibit A of
Resolution 4659 relating to mandatory penalties for the declared Stage 1 Water
Shortage Emergency for customers whose bi-monthly Baseline Water Amount is 10
units or less.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is a significant amount of staff time needed to process a baseline adjustment
request. To date the City has completed approximately 260 baseline adjustment
requests with 90 additional requests to be processed. Of the completed request
approximately 25% are customers who consume less than 10 units of water.
' .
Since the implementation of the Stage 1, Water Shortage Emergency, approximately
1,600 accounts have exceeded their maximum allotment. Of the 1,600 accounts,
approximately 12% of the accounts have usage of 10 units or less. Should Council
approve staffs recommendation, the City will forgo the collection of up to $40,000
(depending on the number of violations) in penalties from these low water users.
However, it is the goal of the City to reduce consumption and not penalize its water
customers.
Item 9.g. - Page 1
CITY COUNCIL
CONSIDERATION OF ADOPTION OF A RESOLUTION AMENDING EXHIBIT A OF
_RESOLUTION 4659 RELATING TO THE MANDATORY PENALTIES FOR FAILING
TO MEET WATER USE REQUIREMENTS FOR THE DECLARED STAGE 1 WATER
SHORTAGE EMERGENCY FOR CUSTOMERS WHOSE Bl-MONTHLY BASELINE
WATER AMOUNT IS 10 UNITS OR LESS
NOVEMBER 10,-2015
PAGE 2of3
BACKGROUND:
On May 26, 2015 the City Council adopted Resolution 4659 declaring a Stage 1 Water
Shortage Emergency and implemented reductions in water usage. As set forth in
Exhibit A of Resolution_ 4659, residential and irrigation water customers are assigned a
baseline amount of water which is based on the amount of water used during the same
billing period of the 2014 calendar year.
Residential and irrigation customers have been required to reduce water usage by the
percentage amount set forth in Exhibit A of Resolution 4659, which varies· depending on
their bi-monthly usage tier. The formula is set in a way that customers whose
consumption is 9 units or less are not required to reduce consumption, however, they
cannot increase their usage from the 2014 baseline. Residential and irrigation
customers are subject to mandatory penalties for failing to reduce use as required by
the Resolution, and in the case of customers whose bi-monthly use are 9 units or less,
increase their usage from 2014. -
Now that the Stage 1 Water Shortage Emergency and required reductions and
restrictions in water usage have been in place for several months, staff has had an
opportunity to evaluate the impacts of implementation. and has identified concerns
relating to how _they effect customers whose bi-monthly usage is 10 units or less. First
of all, customers who use under 10 units of water or less are using a very small amount
of water, rriany less than 50 gallons per person per day. In those instances, the
customer's current allotment is less than the allotment given if City Council were to
declare a Stage 2 Water Shortage Emergency. Moreover, since these customers use
such little water, they have limited flexibility when it comes to taking additional measures
to assure that their water use does not increase above their assigned baseline amount.
What is also problematic is thaf the City's billing program only reads water usage in
whole units, and therefore fractional changes in use can result in rounding that can
make a· customer subject to penalties, even though any actual increase is nominal.
Finally, staff believes that imposing penalties on customers whose bi-monthly usage is
10 units or less in effect penalizes the City's best conserving customers.
ANALYSIS OF ISSUES:
Based upon the foregoing, staff is recommending that the City Council adopt the
attached Resolution. The Resolution will adopt a new Exhibit A, which will delete the
provision that subjects customers whose bi-monthly use is 1 O units or less to penalties if
their use increases from their assigned baseline amount.
ALTERNATIVES:
The following alternatives are presented for consideration:
Item 9.g. - Page 2
CITY COUNCIL
CONSIDERATION OF ADOPTION OF A RESOLUTION AMENDING EXHIBIT A OF
RESOLUTION 4659 RELATING TO THE MANDATORY PENALTIES FOR FAILING
TO MEET WATER USE REQUIREMENTS FOR THE DECLARED STAGE 1 WATER
SHORTAGE EMERGENCY FOR CUSTOMERS WHOSE Bl-MONTHLY BASELINE
WATER AMOUNT IS 10 UNITS'OR LESS
NOVEMBER 10, 2015
PAGE.3Qf3
• Adopt the Resolution.
• Do not adopt the Resolution and continue to have mandatory penalties for
customers whose bi-monthly baseline water amount is 10 units or less and whose
use increases above their assigned baseline water amount.
• Provide staff other direction.
ADVANTAGES:
The advantage of the proposed Resolution is to remove_ the potential of imposition of
mandatory penalties on those customers who already are using very little water and
who have limited flexibility in assuring that their water use doesn't increase to avoid
such penalties.
DISADVANTAGES:
There are no identified disadvantages, however deleting the penalties for failing to meet
allotted baseline water usage for customers whose two-month water use is 10 units or
less-will reduce the total amount of penalties collected by the City.
ENVIRONMENTAL REVIEW:
The proposed Resolution is categorically exempt from the California Environmental
Quality Act ("CEQA") pursuant to-15307 of the State CEQA Guidelines (Actions by
Regulatory Agencies for Protection of Natural Resources.)
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted in front of City Hall on Thursday, November 5, 2015 and on the
City's website on Friday, November 6 , 2015. No comments were received.
Item 9.g. - Page 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE AMENDING EXHIBIT A OF RESOLUTION 4659 RELATING
TO THE MANDATORY PENALTIES FOR FAILING TO MEET WATER
USE REQUIREMENTS FOR THE DECLARED STAGE 1 WATER
SHORTAGE EMERGENCY FOR CUSTOMERS WHOSE 81-MONTHLEY
BASELINE WATER AMOUNT IS 10 UNITS OR LESS
WHEREAS, on February 24, 2015 the City Council of the City of Arroyo Grande
adopted Ordinance 669 , adding Chapter 13.07 to the Arroyo Grande Municipal Code
(AGMC) relating to Emergency Water Shortage Restrictions and Regulations; and
WHEREAS, in accordance with the provisions in AGMC Section 13.07.030 and after
holding a noticed public hearing in accordance with the requirements of Water Code
Section 350, et seq., on May 26, 2015 the City Council adopted Resolution 4659
declaring a Stage 1 Water Shortage and implemented reductions in water usage based
upon Historical Use, and _mandatory penalties for failing to meet water use
requirements as set forth in Exhibit A of that Resolution; and
WHEREAS, based upon an analysis by City staff of the impacts of the implementation
of the water use requirements and the mandatory penalties as they relate to customers
whose bi-monthly Baseline Water Amount is 10 units or less, staff has recommended
changes to the penalty provisions since such users use little water, the City's billing
program only reads use in whole units, many of those users use very small quantities of
water per day and have limited flexibility in further reducing their use, and imposing
penalties on them in effect penalizes the City's best conserving customers: and
WHEREAS, AGMC Section 13.07.030(8) expressly provides that the mandatory
penalty provisions in a Stage 1 Water Shortage Emergency resolution may be modified
by the City Council as it deems necessary and appropriate.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande does resolve, declare, determine, and order as follows;
SECTION 1. The foregoing Recitals are true and correct and are incorporated herein.
SECTION 2. The City Council hereby adopts the attached amended Exhibit A, which
amends Exhibit A of Resolution 4659, and is attached hereto and incorporated herein
by reference. Exhibit A sets forth baseline water amounts, required residential water
reductions and requirements, and amended mandatory penalties. As provided therein,
all residential customers shall reduce water usage by the percentage amount set forth in
Exhibit A. Commercial customers with irrigation meter accounts shall reduce water use
Item 9.g. - Page 4
as set forth in Exhibit A. Residential and Commercial customers shall be subject to
mandatory penalties for failing to meet required water use reductions, as provided in
Exhibit A, and no penalties shall be imposed on customers whose bi-monthly use is 10
units or less.
SECTION 3. All other water conservation rules, regulations, restrictions, definitions,
enforcement procedures, violation provisions and appeal procedures, including but not
limited to those contained in Arroyo Grande Municipal Code Section 13.05.030, shall
remain in full force and effect.
SECTION 4. The adoption of this Resolution amending Exhibit A to Resolution 4659 is
categorically exempt from the California Environmental Quality Act ("CEQA") pursuant
to 15307 of the State CEQA Guidelines (Actions by Regulatory Agencies for Protection
of Natural Resources.)
SECTION 5. If any section, subsection, sentence, clause, or phrase of this Resolution
is for any reason held to be invalid, such determination shall not affect the validity of the
remaining portions of this Resolution. The City Council hereby declares that it would
have passed this Resolution and each and every section, subsection, sentence, clause,
or phrase not declared invalid without regard to whether any portion of the Resolution
would be subsequently declared invalid or unconstitutional.
SECTION 6. The restrictions and regulations adopted ·by Resolution 4659, and as
amended herein, shall remain in effect for the duration of the Stage 1 Water Shortage
Emergency, and until rescinded or modified by the City Council. This Resolution shall
be effective immediately upon its adoption.
On motion of Council Member , seconded by Council Member
and by the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of 2015.
Item 9.g. - Page 5
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
DIANNE THOMPSON, CITY MANAGER
APPROVED AS TO FORM:
HEATHER K. WHITHAM, CITY ATTORNEY
Item 9.g. - Page 6
EXHIBIT "A"
CITY OF ARROYO GRANDE RESOLUTION __
RESOLUTION AMENDING EXHIBIT A OF RESOLUTION 4659, WHICH
DECLARED A STAGE 1 WATER SHORTAGE EMERGENCY
A. ASSIGNMENT OF BASELINE WATER AMOUNT BASED UPON HISTORICAL
USE
All residential customers and commercial customers with irrigation meters will be
assigned a Baseline Water Amount based upon their Historical Use, as further set forth
herein. Except when adjusted in accordance with the provisions contained in Arroyo
Grande Municipal Code Section 13.07.070 A or B, the Baseline Water Amount shall be
based upon the amount of water used during the same billing period of the previous
year prior to the adoption of this Resolution.
B. COMMERCIAL CUSTOMERS
All commercial customers with irrigation meter accounts shall reduce water use by 25%
from the amount of usage of the assigned Baseline Water Amount. Failure to reduce
water use by this required percentage shall result in the imposition of the mandatory
financial penalties contained in Subsection D, herein.
C. REQUIRED RESIDENTIAL CUSTOMER WATER REDUCTIONS
1. Except for customers whose-bi-monthly Baseline Water Amount is 10 units or less,
residential. customers in Tier 1 (bi-monthly usage of 0 to 18 units) shall be required to
reduce consumption by 10% from the ·amount of usage of the assigned Baseline Water
Amount. Customers whose bi-monthly use is 10 units or less shall not increase their
usage above the amount of their assigned Baseline Water Amount.
2. All residential customers in Tier 2 (bi-monthly usage of 19 to 36 units) shall be
required to reduce consumption by 20% from the amount of usage of the assigned
Baseline Water Amount.
3. All residential Customers in Tier 3 (bi-monthly usage of 37 units or more) shall be
required to reduce consumption 30% from the amount of usage of the assigned
Baseline Water Amount.
Failure to reduce water use by the-required percentage shall result in the imposition of
the mandatory financial penalties contained in Subsection D, herein. No penalties shall
be imposed on customers whose bi-monthly Baseline Water Amount is 10 units or less.
Item 9.g. - Page 7
In accordance with Arroyo Grande Municipal Code Section 13.07.030, the City Council,
may_ by resolution, increase the required percentage of reduction if it deems it
necessary in ·order to achieve the projected amount of water savings established as
necessary.
D. MANDATORY FINANCIAL PENALTIES
The purpose of the mandatory penalties assessed pursuant to this resolution is to
assure compliance by the customer through the imposition of increasingly significant
penalties so as . to create a meaningful incentive to reduce water use. In
acknowledgment of the fact that the City's water is scarce and irreplaceable commodity,
the intent is to equitably distribute that commodity among Water Department customers
and to assure that, to the extent feasible, City water is conserved and used only for
purposes deemed necessary for public health and safety. Accordingly, the mandatory
penalties contained herein are not to be construed as creating a "water pricing"
structure pursuant to which customers may elect to pay for additional water at
significantly higher rates.
The following mandatory financial penalties will be levied on all water users who fail to
reduce consumption in-the percentages required in Subsections Band C herein,
provided that no penalties shall be levied on customers whose bi-monthly Baseline
Water Amount is 10 units or less:
First Violation:
Second Violation:
Third Violation:
Subsequent
Violatio-ns:
Failure to pay:
Written notice of violation and opportunity to correct violation.
The City shall impose a penalty of $50. Written notice shall be
given to the owner by certified mail. The penalty will be billed to the
customer on the regular water bill.
A penalty of $100. Written notice shall be given to the owner by
certified mail. The fine will be billed to the customer on the regular
water bill.
In addition to a penalty of $200, continued
violations may be subject to referral to the City Attorney for
appropriate action, including but not limited to prosecution under
the Arroyo Grande Municipal Code, as well as possible
discontinuance of service.
The City may discontinue water service to any customer who fails .
to pay penalties billed on the regular water bill. Service will be
restored upon full payment of all outstanding balances and
reconnection charges. A delinquent bill shall also be increased by
penalty of ten (10) percent of the amount of delinquency.
Item 9.g. - Page 8
Customers who incur penalties may have them waived by attending a minimum two
hour session of Water Conservation School, which will be conducted by the City of
Arroyo Grande. The option to have penalties waived by attending Water School shall be
available only one time for any customer who has incurred penalties.
The foregoing penalties may also be modified or amended by the City Council as
deemed necessary and appropriate based upon a determination of the severity of the
Water Shortage Emergency.
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