CC 2016-08-23_12a Emergency Water Restriction Revisions
MEMORANDUM
TO: CITY COUNCIL
FROM: GEOFF ENGLISH, ACTING CITY MANAGER
BY: DROUGHT TEAM:
GEOFF ENGLISH, PUBLIC WORKS DIRECTOR
DEBBIE MALICOAT, ADMINISTRATIVE SERVICES DIRECTOR
TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
DAVID HIRSCH, ASSISTANT CITY ATTORNEY
SHANE TAYLOR, UTILITIES SUPERVISOR
KELLY HEFFERNON, ASSOCIATE PLANNER
SUBJECT: CONSIDERATION OF A RESOLUTION AMENDING EXHIBIT A OF
RESOLUTION 4659 RELATING TO PENALTIES FOR THE DECLARED
STAGE 1 WATER SHORTAGE EMERGENCY AND CONSIDERATION
OF OPTIONS FOR A POTENTIAL DEVELOPMENT AND ANNEXATION
MORATORIUM
DATE: AUGUST 23, 2016
RECOMMENDATION:
It is recommended the City Council;
1. Adopt a Resolution amending Exhibit A of Resolution 4659 which declared a
Stage 1 Water Shortage Emergency; and
2. Provide direction regarding options for a development and annexation
moratorium
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Amending the penalties for non-compliance will have minimal impact on the Water
Fund. The exact amount will depend on the number of violations, but is estimated at
$5,000 - $15,000.
BACKGROUND:
The City of Arroyo Grande, along with much of the State of California, is experiencing
historic drought conditions. The drought conditions have negatively impacted the City’s
water supply and have necessitated State-wide water conservation requirements and
precipitated the City’s need to implement the Water Shortage Contingency Plan and to
establish mechanisms for the application of mandatory water use reductions.
On June 10, 2014, the City Council adopted a set of comprehensive strategies to
address the City's short-term and long-term water supply needs. The objectives of these
Item 12.a. - Page 1
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AMENDING EXHIBIT A OF RESOLUTION
4659 RELATING TO PENALTIES FOR THE DECLARED STAGE 1 WATER
SHORTAGE EMERGENCY AND CONSIDERATION OF OPTIONS FOR A
POTENTIAL DEVELOPMENT AND ANNEXATION MORATORIUM
AUGUST 23, 2016
PAGE 2
water supply strategies were to address long-term projected water demand through
increased water conservation measures, and to protect the existing water supply by
pursuing the future use of recycled water.
On February 24, 2015, the City Council adopted Ordinance No. 669 establishing an
emergency Water Shortage Contingency Plan to be put in place in case mandatory
water use restrictions became necessary to meet water demand and to address any
potential negative impacts on the City’s water supply. The Ordinance included two
methodologies based upon two stages of water shortage emergency:
Stage 1 Water Shortage Emergency
A Stage 1 Water Shortage Emergency shall be declared when there have been impacts
to the City’s water supply and/or it has been determined that it is imminent that the water
supply will be less than projected demand. All customers will then be required to reduce
water usage by a percentage compared to the same billing period the prior year, which
will be established by Resolution.
Stage 2 Water Shortage Emergency
A Stage 2 Water Shortage Emergency shall be declared when it has been determined
that it is imminent that the water supply is or will be equal to or less than amounts
determined necessary to meet basic minimum household health and safety
requirements. Therefore, the purpose of Stage 2 requirements is to limit water usage to
the minimum amount necessary for public health since the City will likely need to make
arrangements for some type of emergency water supply deliveries.
In accordance with the provisions in Arroyo Grande Municipal Code (“AGMC”) Section
13.07.030 and after holding a noticed public hearing on May 26, 2015, the City Council
adopted Resolution 4659 declaring a Stage 1 Water Shortage Emergency and
implementing reductions in water usage based upon historical use. Resolution 4659
also established mandatory penalties for failing to meet water use requirements.
Additionally, AGMC Section 13.07.030(B) 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.
The Stage 1 Water Shortage Emergency as established by Resolution of the City
Council has been implemented and is being enforced. The actions by the City Council
were enacted due to local water supply concerns and due to State of California
mandated water conservation requirements for water purveyors.
On April 1, 2015, due to ongoing drought conditions and the historical low Sierra
snowpack measurements, the Governor signed Executive Order B-29-15, enacting
statewide mandatory water conservation requirements. The Governor’s Executive Order
Item 12.a. - Page 2
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AMENDING EXHIBIT A OF RESOLUTION
4659 RELATING TO PENALTIES FOR THE DECLARED STAGE 1 WATER
SHORTAGE EMERGENCY AND CONSIDERATION OF OPTIONS FOR A
POTENTIAL DEVELOPMENT AND ANNEXATION MORATORIUM
AUGUST 23, 2016
PAGE 3
included a requirement that the State Water Resources Control Board (SWRCB) impose
restrictions to achieve a statewide 25% reduction in potable urban water usage through
February 28, 2016. The required reduction was based upon a comparison to the amount
of water used in 2013. The final regulations adopted by the SWRCB on May 5, 2015,
imposed a 28% water use reduction on the City of Arroyo Grande.
In recognizing persistent yet less severe drought conditions throughout California, on
May 18, 2016 the State Water Board, as directed by Governor Brown in Executive Order
B-37-16, adopted an emergency water conservation regulation that allowed water
purveyors the option to develop conservation standards based upon each agency’s
specific circumstances. This revised standard required local water agencies, should they
choose to participate, to ensure a three-year supply assuming three more dry years like
the ones the state experienced from 2012 to 2015. Water purveyors could also choose
to continue operation under the May 2015 Water Board conservation requirement. The
City of Arroyo Grande remains under the mandatory State water conservation
requirement of 28%.
The new executive order requires suppliers to plan water supply for the next three years
based on the previous three years of the current drought. The San Luis Obispo County
Flood Control District provided the supply information from Lopez and the groundwater
supply is detailed in the Groundwater Management agreement. With the supply being
so uncertain, trying to predict another 3-year stressed condition lends to uncertain
supply and predicted reduction numbers. The current water emergency ordinance has
proven to achieve above the required 28% reduction. Based on these factors, the
decision was made to stay the course and not self-certify a new reduction amount.
On May 10, 2016, the City Council considered a comprehensive report on the City’s
water supply and demand and adopted a two-year look-ahead approach to continue
closely monitoring the City’s water supply status. In addition, the Council:
1. Approved a funding plan for water conservation programming;
2. Directed staff to use existing measures in the City’s Mandatory Water Use
Restrictions Ordinance to direct mandatory plumbing retrofit for commercial
properties; and
3. Directed staff to move forward with efforts to place a measure on the
November ballot regarding the potential purchase and use of State Water.
The Council also considered options for the potential implementation of building
moratorium options however did not provide direction for the consideration of such
measures.
On August 9, 2016, Mayor Hill and Councilmember Brown requested that the matter of
a moratorium on development and annexation be placed on the next Council agenda.
Item 12.a. - Page 3
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AMENDING EXHIBIT A OF RESOLUTION
4659 RELATING TO PENALTIES FOR THE DECLARED STAGE 1 WATER
SHORTAGE EMERGENCY AND CONSIDERATION OF OPTIONS FOR A
POTENTIAL DEVELOPMENT AND ANNEXATION MORATORIUM
AUGUST 23, 2016
PAGE 4
ANALYSIS OF ISSUES:
The City’s long term water supply continues to be of concern as the drought conditions
continue and the two primary water sources, Lake Lopez and groundwater, are
depleting. The extended drought is resulting in a reduction in deliveries of Lake Lopez
water. In anticipation of the Lopez Lake reaching the 10,000 Acre Foot (AF) level,
which would trigger a 20 percent delivery reduction, staff has pro-actively reduced the
Lake Lopez deliveries.
In addition, the ongoing drought has negatively impacted groundwater levels. Despite
having limited impact on increasing reservoir levels, the 2015/16 winter storms did result
in some improvements to the groundwater recharge and have allowed for a shift in
water use strategy to increase groundwater pumping. Although the recent and modest
improvements, groundwater conditions are still precarious and the potential for
seawater intrusion into the Northern Cities Management Area groundwater still poses a
concern. Groundwater alone should not be relied upon to supply the City’s future water
needs.
Staff has previously calculated that based on the current condition of its water sources,
the City has adequate water supply to meet the anticipated demand for the next two
years. Following is the projected two-year water supply “Look-Ahead”:
Current and Projected Water Supply – Acre Feet per Year (AFY)
Water Supply Sources 2015
Entitlement
2015
Actual
Use
2016
Projected
Use
2017
Projected
Use
Groundwater – Santa Maria
Groundwater Basin 1,323 43 150 220
Groundwater- Pismo Formation* 200 44 120 150
County of San Luis Obispo
Lopez Reservoir Project 2,290 2,152 1,830** 1,830**
TOTAL 3,813 2,239 2,100 2,200
* - Estimate of available capacity
**- Based on anticipated 20% reduction to municipal deliveries
Based on staff’s projections, the City’s water supply is sufficient for this and the next
calendar year. As a result, temporary supplemental water supplies are not needed at
this time. Options for temporary water purchases are being explored for 2018 and will
be brought forward for Council consideration should the need arise.
Item 12.a. - Page 4
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AMENDING EXHIBIT A OF RESOLUTION
4659 RELATING TO PENALTIES FOR THE DECLARED STAGE 1 WATER
SHORTAGE EMERGENCY AND CONSIDERATION OF OPTIONS FOR A
POTENTIAL DEVELOPMENT AND ANNEXATION MORATORIUM
AUGUST 23, 2016
PAGE 5
Current Conservation Measures:
In the meantime, staff recommends that the Council maintain the mandatory water
conservation requirements and the previously adopted mandatory water use
restrictions. The existing permanent and mandatory conservation restrictions for Arroyo
Grande residents include the following:
Use of water which results in excessive gutter runoff is prohibited.
No water shall be used for cleaning driveways, patios, parking lots, sidewalks,
streets or other such use except where necessary to protect the public health
and safety.
Outdoor water use for washing vehicles is allowed only with hand-controlled
watering devices.
Outdoor irrigation is prohibited between the hours of 10:00 a.m. and 4:00 p.m.
Irrigation of private and public landscaping, turf areas and gardens is permitted at
even-numbered addresses on Mondays and Thursdays and at odd-numbered
addresses only on Tuesdays and Fridays.
No irrigation of private and public landscaping, turf areas and gardens is
permitted on Wednesdays.
Irrigation is permitted at all addresses on Saturdays and Sundays.
Emptying and refilling swimming pools and commercial spas are prohibited
except to prevent structural damage and/or to provide for the public health and
safety.
Use of potable water for soil compaction or dust control purposes in construction
activities is prohibited.
In addition, the City Council recently amended the permanent and mandatory
conservation restrictions to require water to be served in restaurants only upon request
and hotels will be required to display signs in rooms instructing visitors to place towels
on the floor only if they need to be replaced. City staff is also working on an effort to
use existing municipal code regulations to require that all commercial properties be
retrofitted with low-flow toilets.
The combination of the mandatory water conservation requirements through a baseline
allotment and the mandatory water use restrictions has resulted in a substantial water
use reduction by Arroyo Grande water customers. Based on a comparison with water
use statistics in 2013, Arroyo Grande water customers have conserved 36.3%, which is
one of the highest conservation achievements in the entire County. A graph of the
cumulative water use reduction in Arroyo Grande is shown on the following page.
Item 12.a. - Page 5
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Item 12.a. - Page 6
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AMENDING EXHIBIT A OF RESOLUTION
4659 RELATING TO PENALTIES FOR THE DECLARED STAGE 1 WATER
SHORTAGE EMERGENCY AND CONSIDERATION OF OPTIONS FOR A
POTENTIAL DEVELOPMENT AND ANNEXATION MORATORIUM
AUGUST 23, 2016
PAGE 7
Customers who incur penalties may have them waived by attending a minimum two-
hour session of Water Conservation School. The option to have penalties waived by
attending Water Conservation School is available only one time for any customer who
has incurred penalties. The following chart shows the number of warnings and
penalties issued by City staff to date.
Jul/Aug Sep/Oct Nov/Dec Jan/Feb Mar/Apr May/Jun Total
# Billed Accounts NA 6,008 5,986 6,054 6,050 6,054
6,030
(avg)
# Baseline Adjustments
Processed 145 128 177 206 197 113 966
# Water Appeals Board Reviews ‐ ‐ 18 21 12 51
# of City Manager Appeals ‐ ‐ ‐ ‐ 2 1 3
# Warning Notices Issued ‐ 1,094 697 201 150 352 2,494
# of $50 Penalties Issued ‐ ‐ 537 169 108 222 1,036
# of $100 Penalties Issued ‐ ‐ ‐ 130 67 127 324
# of $200 Penalties Issued ‐ ‐ ‐ ‐ 33 78 111
Total: ‐ 1,094 1,234 500 358 779
3,965
# of Water School Attendees 49 62 24 5 140
Penalty Modifications and Responses:
City staff has spent a significant amount of staff resources and time on the following:
Responding to inquiries from residents to answer customer/property specific
questions.
Conducting site visit with property owners about water conservation options and
to conduct water audits.
Requests for water meter “re-reads.”
Preparation of historical water use base-lines for each customer.
Response to requests for modifications to the established water use targets.
Increase in time necessary for the Utility Billing Adjustment Committee acting as
the Water Shortage Appeal Board (WSAB) to review appeals.
Based on concerns expressed by water customers at the May 10, 2016 Council meeting
in part due to the amount of staff resources dedicated to the enforcement of the
Item 12.a. - Page 7
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AMENDING EXHIBIT A OF RESOLUTION
4659 RELATING TO PENALTIES FOR THE DECLARED STAGE 1 WATER
SHORTAGE EMERGENCY AND CONSIDERATION OF OPTIONS FOR A
POTENTIAL DEVELOPMENT AND ANNEXATION MORATORIUM
AUGUST 23, 2016
PAGE 8
conservation measures, modifications to the program are recommended. Specifically,
staff recommends that the Council consider resetting the account history regarding
warning and penalty events for each customer to zero (providing all customers a fresh
start) and reducing the financial penalties in half for the following reasons:
Water customers have significantly exceeded the water conservation target of
28%.
The primary purpose of the Stage 1 water emergency is to save water and not
generate revenue.
The imposition of financial penalties has a negative impact on staff time to
implement the penalties and to respond to baseline adjustment requests.
To accomplish the “reset”, the following language is proposed to be added to the
penalty provision in Exhibit A of Resolution 4659. “For purposes of determining the
number of violations (i.e. First Violation, Second Violation, etc.) that result in escalating
monetary penalties, violations occurring prior to the effective date of Resolution No. XX,
amending the penalty provisions contained herein, shall not be considered.”
While reductions in water usage are still needed in order to meet State mandates and to
continue conservation measures due to local water supply uncertainties, it is
nonetheless recommended to provide customers with some relief by modifying the
penalty provisions in Exhibit A of Resolution 4659 (Attachment 1), due to the success of
the conservation program. If customers were not achieving the required reductions,
more stringent and higher penalties might be considered. The reverse is also true, as
customers are achieving higher conservation than required, slightly easing the penalty
provisions is recommended.
Development and Annexation Moratorium:
Another tool to mandate water demand reduction over time would be to implement a
moratorium on new development. In 2008, the City declared a “severely restricted
water supply condition” after it was determined that the City was using up to 99% of its
water entitlements. In 2009, the City adopted Urgency Ordinance Nos. 615, 618 and
622 to implement a moratorium on development applications requiring new water
meters due to the serious water supply condition and water quality samples collected
during that time that indicated constituents consistent with early signs of sea water
intrusion.
In May 2016, general parameters regarding potential implementation of a development
moratorium were presented and staff recommended enacting building restrictions under
the following conditions unless other supply is identified:
1) Declaration of a Stage 2 water supply condition per the City’s existing ordinance
(this could occur based upon a threat to a local water supply, water delivery
system, State mandated reductions, or a combination):
Item 12.a. - Page 8
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AMENDING EXHIBIT A OF RESOLUTION
4659 RELATING TO PENALTIES FOR THE DECLARED STAGE 1 WATER
SHORTAGE EMERGENCY AND CONSIDERATION OF OPTIONS FOR A
POTENTIAL DEVELOPMENT AND ANNEXATION MORATORIUM
AUGUST 23, 2016
PAGE 9
2) Reduction of Lopez supply of 35%:
3) The SMGWB continually falls below the deep well index trigger level of 7.5 feet in
conjunction with Lopez supply reduction of 20% or indications of sea water
intrusion are detected.
Given these parameters, building restrictions would not be triggered at this time. The
third criteria however, does require careful continued monitoring due to the downward
seasonal trend of ground water levels, however, levels are higher than at this time last
year.
The City is utilizing approximately 60% of supply and long term build out projections for
water demand and supply remain balanced based on build-out projections. Any
development increasing land use intensity beyond what was envisioned in the City’s
General Plan Land Use Element would be required to identify additional water supply to
offset the additional demand. Additionally, the General Plan includes specific provisions
regarding annexations. Under Land Use Objective LU11, “the City shall promote a
pattern of land use that protects the integrity of existing land uses, area resources and
infrastructure and involves logical jurisdictional boundaries with adjacent communities
and the County.”
In regard to annexation and the area to the southeast of the City that includes the City’s
only Sphere of Influence, LU-6.10.1 includes language specific to water resources: “The
City of Arroyo Grande may consider the annexation of the unincorporated portion of the
Arroyo Linda Crossroads and Williams properties within the proposed Sphere of
Influence when all of the following findings are made: a) The proposed annexation will
not deplete the water resources required for potential General Plan development within
other parts of the City nor divert water resources needed for current and future
Agriculture irrigation...” At this time, any application for a General Plan Amendment that
increases land use intensity, or any annexation, would require a water supply outside of
the City’s current Lopez or groundwater entitlements. Currently, the City has an active
application for a general plan amendment for the E. Cherry Specific Plan project. There
are no current applications for annexations.
Additional conservation measures and new supply:
Additionally, requirements for new development that fall within General Plan Land Use
build out calculations include water conservation fixtures, irrigation control and drought
tolerant landscape as well as water neutralization fees that are used for meeting
continued supply needs. The City is participating on two regional recycled water
alternatives to address continued sustainable supply in the long term.
Recent updates to the General Plan Housing and Economic Development Elements
prioritize continued modest infill development to meet housing needs and achieve
Item 12.a. - Page 9
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AMENDING EXHIBIT A OF RESOLUTION
4659 RELATING TO PENALTIES FOR THE DECLARED STAGE 1 WATER
SHORTAGE EMERGENCY AND CONSIDERATION OF OPTIONS FOR A
POTENTIAL DEVELOPMENT AND ANNEXATION MORATORIUM
AUGUST 23, 2016
PAGE 10
economic sustainability. Both priorities would be jeopardized by the implementation of a
moratorium as impacts would include a housing shortfall and a further risk to the City’s
reputation as a reliable place to invest. According to the Government code pertaining to
building moratoriums, appropriate findings related to protecting the public health, safety
or welfare would be needed. Stringent findings would also have to be made for a
moratorium on projects that include multi-family housing. For a moratorium on water
connections, findings would be made under Water Code 350 to “conserve the water
supply for the greatest public benefit with particular regard to domestic use, sanitation,
and fire protection.”
Building Restriction Options
There are several alternatives regarding the implementation of a moratorium:
Continue to monitor water resource conditions and recommend implementation
of building restrictions according the established criteria;
Direct staff to develop a prohibition for Council consideration for new General
Plan Amendments that increase land use intensity or new annexation proposals;
Direct Staff to develop other building restrictions within the parameters of State
Law;
As previously reported, recent updates to the General Plan Housing and Economic
Development Elements prioritize continued modest infill development to meet housing
needs and achieve economic sustainability. Both priorities could be jeopardized by the
implementation of a moratorium as impacts would include a housing shortfall and a
further risk to the City's image as a reliable place to invest and do business. Halting
improvements to buildings and properties within the City also diminishes the
community's ability to economically develop and re-purpose existing vacant tenant
spaces. Although there are many variables depending upon how a moratorium is
enacted, there may be real or perceived impacts to economic development
opportunities within the City.
ALTERNATIVES:
The following alternatives are presented for consideration:
Adopt a Resolution amending Exhibit A of Resolution 4659 which declared a Stage
1 Water Shortage Emergency;
Modify the proposed penalty amounts and adopt a Resolution amending Exhibit A
of Resolution 4659;
Do not adopt the Resolution and direct staff to pursue alternate strategies;
Continue to monitor water resource conditions and recommend implementation of
building restrictions according the established criteria;
Direct staff to develop a prohibition for Council consideration for new General Plan
Amendments that increase land use intensity or new annexation proposals;
Item 12.a. - Page 10
CITY COUNCIL
CONSIDERATION OF A RESOLUTION AMENDING EXHIBIT A OF RESOLUTION
4659 RELATING TO PENALTIES FOR THE DECLARED STAGE 1 WATER
SHORTAGE EMERGENCY AND CONSIDERATION OF OPTIONS FOR A
POTENTIAL DEVELOPMENT AND ANNEXATION MORATORIUM
AUGUST 23, 2016
PAGE 11
Direct staff to develop other building restrictions within the parameters of State
Law; or
Provide staff other direction.
ADVANTAGES:
Advantages of adopting the Resolution amending Exhibit A of Resolution 4659 will
provide water customers with some relief by modifying the penalty provisions in Exhibit
A of Resolution 4659. Additionally staff resources currently used in enforcing the
regulations will be reduced, resulting in reprioritization of staff efforts.
DISADVANTAGES:
There is a potential that reduction in the penalties may result in less water conservation
and the City would not meet the State requirements. There may also be a negative
public perception that those customers that are currently not achieving compliance are
being rewarded by having the penalty event reset to zero and reducing the penalty for
non-compliance.
ENVIRONMENTAL REVIEW:
Adoption of the Resolution amending Exhibit A of Resolution 4659 is categorically
exempt from the California Environmental Quality Act (“CEQA").
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in accordance with Government Code Section 54954.2.
Item 12.a. - Page 11
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AMENDING EXHIBIT A OF RESOLUTION
NO. 4659 RELATING TO PENALTIES FOR THE DECLARED
STAGE 1 WATER SHORTAGE EMERGENCY
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
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 Emergency and implementing 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, on April 1, 2015, the Governor issued an Executive Order directing the
imposition of restrictions on water suppliers to achieve a statewide 25 percent reduction
in potable urban water usage through February 2016, and the implementing regulations
adopted by the State Water Board mandated that the City of Arroyo Grande reduce its
total potable water production by 28 percent for each month as compared to the amount
of water used in the same month in 2013; and
WHEREAS, the City of Arroyo Grande has a limited water supply that consists of two
primary sources: Lake Lopez and groundwater. The reservoir level at Lake Lopez was
not significantly replenished during the 2015-16 rainy season and continues to decline,
and there continue to be significant concerns regarding groundwater pumping and the
potential for seawater intrusion; and
WHEREAS, AGMC Section 13.07.030(B) 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; and
WHEREAS, since the declaration of the Stage 1 Water Shortage Emergency the City of
Arroyo Grande’s water system customers have made significant efforts to reduce water
consumption, and the City Council has determined that while reductions in water usage
is still needed in order to meet State reduction mandates, it is appropriate to provide its
customers with some relief by modifying the penalty provisions in Exhibit A of
Resolution 4659.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande does resolve, declare, determine, and order as follows
Item 12.a. - Page 12
RESOLUTION NO.
PAGE 2
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 amended mandatory penalties. As provided therein,
all residential customers shall continue to reduce water usage by the percentage
amounts set forth in Exhibit A. Commercial customers with irrigation meter accounts
shall reduce water use 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.
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 23rd day of August 2016.
Item 12.a. - Page 13
RESOLUTION NO.
PAGE 3
_______________________________________
JIM HILL, MAYOR
ATTEST:
_______________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
______________________________________
GEOFF ENGLISH, ACTING CITY MANAGER
APPROVED AS TO FORM:
_______________________________________
HEATHER K. WHITHAM, CITY ATTORNEY
Item 12.a. - Page 14
EXHIBIT “A”
CITY OF ARROYO GRANDE RESOLUTION NO. ______
RESOLUTION NO. ______ AMENDING EXHIBIT A OF RESOLUTION NO. 4659,
WHICH DECLARED A STAGE 1 WATER SHORTAGE EMERGENCY
A. ASSIGNMENT OF BASELINE WATER AMOUNTBASED 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 Resolution 4659.
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.
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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.
For purposes of determining the number of violations (i.e. First Violation, Second
Violation, etc.) that result in escalating monetary penalties, violations occurring prior to
the effective date of Resolution , amending the penalty provisions contained herein,
shall not be considered.
The following mandatory financial penalties will be levied on all water users who fail to
reduce consumption in the percentages required in Subsections B and C
herein,provided that no penalties shall be levied on customers whose bi-monthly
Baseline Water Amount is 10 units or less:
First Violation: Written notice of violation and opportunity to correct violation.
Second Violation: The City shall impose a penalty of $25. Written notice shall be
given to the owner by certified mail. The penalty will be billed to the
customer on the regular water bill.
Third Violation: A penalty of $50. Written notice shall be given to the owner by
certified mail. The fine will be billed to the customer on the regular
water bill.
Subsequent In addition to a penalty of $100, continued
Violations: 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.
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Failure to pay: 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.
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 their first monetary penalty
under the provisions contained herein.
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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