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R 4766 RESOLUTION NO. 4766 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING EXHIBIT A OF RESOLUTION 4659 RELATING TO TRIGGERING CONDITIONS THAT WILL IMPLEMENT ADDITIONAL RESTRICTIONS DURING THE DECLARED STAGE 1 WATER SHORTAGE EMERGENCY ("STAGE 1B") WHEN SPECIFIED WATER CONDITIONS ARE DETERMINED TO EXIST, IN ORDER TO PROTECT THE HEALTH, SAFETY AND WELFARE OF THE CITIZENS OF THE CITY 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, after holding a noticed public hearing in accordance with the requirements of Water Code Section 350, et seq and the AGMC, on May 26, 2015 the City Council adopted Resolution 4659 declaring a Stage 1 Water Shortage Emergency in accordance with Water Code Section 350 and AGMC Section 13.07.030, 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 continues to experience historic drought conditions, which are negatively impacting the City's limited water supply which 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, Water Code Section 353 provides that when a water shortage emergency has been declared by the governing body, it shall adopt necessary regulations and restrictions on the delivery and consumption of water, and pursuant to Water Code Section 356 such regulations and restrictions may include denying applications for new and additional service connections; and RESOLUTION NO. 4766 PAGE 2 WHEREAS, given the continuing concerns regarding the ongoing severe drought's impact on the City's limited water supply, the City Council has determined that it is necessary and appropriate to modify the regulations and restrictions on the delivery and consumption of water to provide that if certain specified water supply conditions are determined to exists (hereinafter referred to as "Triggering Conditions"), that additional restrictions on water use will need to be immediately implemented, including denying new and additional water service connections for projects that do not participate in a water demand offset program, while the water shortage emergency conditions continue to exist, in order to protect the health, safety and welfare of the citizens of the City of Arroyo Grande; and WHEREAS, the City Council desires to provide that such a water demand offset program provide for water savings that offsets a development project's water demand by a ratio of 1:1.5 and finds and determines that requiring an offset of estimated water demand in a ratio somewhat higher than estimated use is prudent and appropriate since water demand varies and is always being based upon estimates and therefore future demand could potentially be underestimated, water savings fixtures lose efficiency with wear and tear over time, and water savings devices may be removed by property owners. 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 finds and determines that failure to adopt and impose additional restrictions on water use and deny new or additional water service connections, as set forth herein, would place the community in a condition that is dangerous to the health and safety of its citizens, due to the severe impact on the City's water supply if it is determined that specified water supply conditions exist. Based upon this determination, 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. The amended Exhibit A sets forth the Triggering Conditions that, when the specified water supply conditions have been determined to exist, will result in the imposition of additional restrictions on water use and denial of new or additional water service connections for projects that do not participate in a water demand offset program, until it has been determined that the water shortage emergency conditions no longer exist and as otherwise set forth in Exhibit A, in order to protect the health, safety and welfare of the citizens of the City of Arroyo Grande (for RESOLUTION NO. 4766 PAGE 3 purposes of convenience these additional restrictions shall be referred to as "Stage 1B"). 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 Mayor Hill, seconded by Council Member Guthrie, and by the following roll call vote, to wit: AYES: Mayor Hill, and Council Members Guthrie and Barneich NOES: Council Members Brown and Harmon ABSENT: None the foregoing Resolution was passed and adopted this 22nd day of November, 2016. RESOLUTION NO. TM, PAGE 4 1JIM ILL, MAYOR ATTEST: #i / 1441814- KELLY ET; ORE, CITY CLERK • PRO '' D 0 CONTENT: 0 LIA.L i) ROBERT MCFALL, INTERIM CITY MANAGER APPROVED AS TO FORM: FATHER K. WHITHAM, CITY ATTORNEY EXHIBIT "A" CITY OF ARROYO GRANDE RESOLUTION 4766 RESOLUTION 4766 AMENDING EXHIBIT A OF RESOLUTION 4659, WHICH DECLARED A STAGE 1 WATER SHORTAGE EMERGENCY, RELATING TO ADDITIONAL STAGE 1B RESTRICTIONS IF CERTAIN SPECIFIED WATER SUPPLY CONDITIONS ("TRIGGERING CONDITIONS") ARE DETERMINED TO EXIST 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 Resolution 4659. B. COMMERCIAL CUSTOMERS All commercial customers with irrigation meter accounts shall reduce water use by 50% 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. 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 4756, 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 $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. Third Violation: 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. Subsequent In addition to a penalty of$200, 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. 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. E. ADDITIONAL STAGE 1B RESTRICTIONS IF SPECIFIED WATER SUPPLY CONDITIONS ("TRIGGERING CONDITIONS") ARE DETERMINED TO EXIST 1. The purpose of this Section is to establish that if any one of the following water supply Triggering Conditions are determined to exist, the additional water use restrictions contained herein shall immediately be imposed (for purposes of convenience these additional restrictions shall be referred to as "Stage 1B"): a. The interruption of local water deliveries, the water delivery system or additional State mandated reductions in water use. b. The water level at the Lopez Reservoir is at or below 10,000 acre feet. c. There have been six quarterly continuous events of sentry well level readings in the Santa Maria Ground Water Basin below the deep well index trigger level of 7.5 feet, or indications of sea water intrusion are detected. In the event that any of the foregoing Triggering Conditions are determined to exist, the Public Works Director and City Manager shall Certify to its existence, immediately notify the City Council of such determination, post the Certification of the existence of the condition on the City website, and make additional notifications to alert the public that the additional Stage 1B restrictions contained herein are being implemented. 2. Upon Certification that a Triggering Condition exists, the following additional Stage 1B regulations and restrictions shall immediately apply: a. Irrigation of City-owned non-sports field turf areas shall be reduced to 25% of the water used for such irrigation in 2015. b. The Required Residential Customer Water Reductions set forth in Section C, above, shall be increased by five (5) percent for each of the three water rate Tiers. c. There shall be rio new or additional water connections for any project that does not have all required planning project approvals and entitlements at the time of the Certification that a Triggering Condition exists. Smaller projects of less than four residential units or less than 5,000 sq. feet of commercial space shall be exempt from this restriction. Notwithstanding this restriction, development projects may continue to be processed. e. The restriction on new or additional water connections shall not apply to any project that participates in the City's approved water demand offset program by providing water savings that offset their project's water demand by a ratio of 1: 1.5. This shall be determined on a case-by-case basis by City staff, and can be achieved through payment of the City's Water Neutralization Fee, combined with either 1) the purchase of new permanent water supply through an approved contract, and/or 2) the retrofit of off- site facilities by use of allowed conservation measures derived from the table below, the installation of which is certified by the Public Works Department. In addition, onsite development must include all applicable water efficiency measures and requirements. For any redevelopment project subject to the 1:1.5 offset requirement, the existing demand on the site shall be credited to the project, and the additional 1:1.5 offset requirement shall only apply to new water demand for the project, as determined by City staff. Projects shall also have the option of achieving all of the required ratio by paying fees if staff determines that providing retrofits are not feasible, which fees may be established by resolution of the City Council after following applicable procedures for establishing such fees. Eligible Estimated Offset Potential References Conservation Cost Measure Air-cooled Ice Machine $10,000 (10 Approximately 100 http•//www ocwatersmart com/ice units) gallons per 100 pounds of ice Soil Moisture Sensor $1,750 (50 units) Up to 20% of current http.//socalwatersmart com/com irrigation demand mercial/2pageid=4865 Water Efficient $6,000 (30 units) 15,000 -30,000 gallons htto•//www.ebmud com/water- Commercial Washing per year per unit and-drought/conservation-and- rebates/commercial/rebates/com Machine depending on use mercial-clothes-washer-rebates/ 25-40% average annual savings Eligible Estimated Offset Potential References Conservation Cost Measure Greywater $4,500 (30 Savings potential of http.//www valleywater org/Gray Can be used for: connections) approximately 17 gallons waterRebate aspx per person per day. http•//www soquelcreekwater orq 1. Laundry /conserving- (no building permit water/rebates/graywater- required) Average of 14,500 landscape 2 Shower(building gallons saved per http://greywateraction permit required) household per year org/wp- 3 Bathroom Sink content/uploads/2014/12/GW St (building permit udy revised-2013.pdf required) Rain Barrel $5,000 (100 623 gallons per inch of http•//www socalwatersmart com/ units) rain per 1,000 sqft of roof. qualifyingproducts/rain-barrels/ Harvested Water(Gal) = Catchment Area (sqft)X Rainfall Depth (inch)X Conversion Factor (0.623) Water Efficient $10,000 (10 60,000- 100,000 gallons httpl/www.montereywaterinfo or Commercial units) per year per unit g/NonResidential html Dishwasher depending on use 25% average annual l http•//www allianceforwaterefficie savings ncyorg/commercialdishwashi ntro aspx Turf Replacement $4.75 SF 18 gallons per year per square foot of turf removed 3. The foregoing Stage 1B additional regulations and restrictions contained in this Section shall no longer apply upon Certification by the Public Works Director and the City Manager that the water level at the Lopez Reservoir is at or above 15,000 acre feet and increasing, none of the other Triggering Conditions exist, or upon a determination by the City Council that these additional water use regulations and restrictions are no longer necessary to protect the City's water supply. OFFICIAL CERTIFICATION I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 4766 was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 22nd day of November, 2016. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 16th day of December, 2016. • (-fit La KELLY WET-M; RE, CITY CLERK - i