CC 2021-10-12_09a Resolution Declaring Stage 1 Water Shortage Emergency‘ ` MEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY MCDONALD, CITY MANAGER
TIMOTHY CARMEL, CITY ATTORNEY
BY: DROUGHT TEAM:
BILL ROBESON, ASSISTANT CITY MANAGER/PUBLIC WORKS
DIRECTOR
NICOLE VALENTINE, ADMINISTRATIVE SERVICES DIRECTOR
DAVID HIRSCH, ASSISTANT CITY ATTORNEY
SHANE TAYLOR, UTILITIES MANAGER
JESSICA MATSON, LEGISLATIVE & INFORMATION SERVICES
DIRECTOR/CITY CLERK
PATRICK HOLUB, ASSISTANT PLANNER
TIM SCHMIDT, PUBLIC WORKS LEADPERSON
TUCKER SCHMIDT, WATER SERVICES WORKER III
CAMELA SCHAAF, SENIOR ACCOUNTING CLERK
SUBJECT: CONTINUED CONSIDERATION OF APPROVAL OF A RESOLUTION
DECLARING A STAGE 1 WATER SHORTAGE EMERGENCY
D ATE: OCTOBER 12, 2021
SUMMARY OF ACTION:
Conduct a continued public hearing in accordance with Water Code Section 350, et seq.,
adopt a Resolution declaring a Stage 1 Water Shortage Emergency, and implement
reductions in water usage as provided in Arroyo Grande Municipal Code Section
13.07.030(A).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The exact costs of implementing Stage 1 Emergency Shortage Restrictions are
dependent upon several variables, including the length of time that the City experiences
a water shortage. Impacts to City staff resources include the need to analyze and to
determine water use baselines based on historical use. In addition, the following impacts
are anticipated:
•Responding to inquiries from residents to answer customer/property
specific questions.
•Conducting site visits with property owners about water conservation
options and to conduct water audits.
•Responding to requests for water meter “re-reads.”
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CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A STAGE 1
WATER SHORTAGE EMERGENCY
OCTOBER 12, 2021
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‘ ` • Responding to requests for modifications to the established water use
baselines.
• Increase in the time necessary for the Utility Billing Adjustment Committee
(UBAC) acting as the Water Shortage Appeal Board (WSAB) to review
appeals.
Continued water use reductions will decrease revenues to the Water Fund and may
require consideration of a future water rate adjustment.
The cost to mail out baseline letters will be approximately $4,000 which includes $2,800
to be allocated from the Water Fund unallocated fund balance and $1,200 from the Sewer
Fund unallocated fund balance.
For FY 2021-22, it is anticipated that utility billing revenue loss from implementing a Stage
1 Water Emergency will be approximately $413,800 to the Water Fund and approximately
$56,000 to the Sewer Fund. A drought rate will be included for consideration in the Water
and Sewer Rate Study coming before Council this fall.
RECOMMENDATION:
It is recommended the City Council: 1) Conduct a continued public hearing in accordance
with Water Code Section 350, et seq.; 2) Adopt a Resolution declaring a Stage 1 Water
Shortage Emergency and implementing Emergency Water Shortage Restrictions and
Regulations in accordance with California Water Code Section 350, et seq., and Arroyo
Grande Municipal Code Section 13.07.030(A); and 3) Appropriate $2,800 from water fund
balance and $1,200 from sewer fund balance for the cost to mail out baseline letters.
BACKGROUND:
On September 28, 2021, the City Council held a public hearing and considered information
regarding a potential Stage 1 Water Shortage Emergency Declaration. At that time, staff
recommended that, following discussion of Council questions and the receipt of public
testimony, the hearing be continued to October 12, 2021. The main purpose of continuing
the item was to incorporate a tiered approach for Multi-Family Residential (MFR) customers
not previously included in staff’s recommendation and to provide the most equitable
percentage reductions for each customer type to achieve a 10% reduction for all
customers, correlating to the 10% cutback in Lopez deliveries required under the Low
Reservoir Response Plan (LRRP).
Additional background information, including the reasons and legal requirements for the
proposed State 1 Water Shortage Emergency, is outlined in the September 28, 2021 staff
report and has been included as Attachment 2.
During the previous Stage 1 Water Shortage Emergency enacted in 2015, Single Family
Residential (SFR) and Multi-Family Residential (MFR) customers were required to reduce
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usage according to a 4 tier structure. Tier 0 applied to users with 0-9 units of usage and
users in this tier were not required to reduce water. Tier 1 applied to users with 10-18
units of usage and users in this tier were required to reduce usage by 10%. Tier 2 applied
to users with 19-36 units of water usage and required 20% reductions. Tier 3 applied to
users with more than 36 units and were required to reduce by 30%.
ANALYSIS OF ISSUES:
Staff has analyzed the overall customer usage for 2020 and evaluated the total amount
of reductions that would be necessary to achieve a 10% reduction for all customers,
correlating to the 10% cutback in Lopez deliveries required under the LRRP. Prior to the
September 28, 2021 City Council meeting, staff received questions regarding the
recommendation that would require all MFR customers to reduce usage by 10% rather
than including a Tier 0 similar to SFR customers. Upon review, staff agreed with the
request and recommended a continuance to allow time for staff to develop a revised
recommendation.
Revised Exhibit A to the attached Resolution includes the following recommended
reduction requirements: For SFR and MFR customers using of 0-9 units, the reduction
allocation is 0%; for SFR and MFR customers using 10-18 units, the reduction allocation
is 7%; and for SFR and MFR customers using 19 or more units, the reduction allocation
is 14%. The calculations used to develop this revised recommendation are shown in the
table below.
Category
Usage Range
(per unit)
Reduction
Percentage
Tier 0 0 – 9 0%
Tier 1 10 – 18 10%
Tier 2 19 – 36 20%
Tier 3 More than 36 30%
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OCTOBER 12, 2021
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As noted, under the provisions in AGMC Chapter 13.07, commercial customers will be
exempt from the overall water restrictions unless they have an irrigation meter. The
reasons for this exemption include recognition that many commercial businesses are
unable to institute conservation measures without impacting public health and safety and
the economic vitality of the City. This exemption is required by the terms of AGMC
Chapter 13.07.
During the hearing held on September 28, 2021, a number of additional questions were
raised regarding proposed Stage 1 Water Shortage Declaration. Those questions and
answers are included here. In addition, a list of Frequently Asked Questions and answers
to those questions are included as Attachment 6, which will be made available on the
City’s website.
• How will the required reductions be calculated and is 2020 the appropriate baseline
year to use for these calculations?
The proposed Resolution uses a historical methodology of reducing customer water
accounts based on 2020 usage. This concept requires every household to conserve a
specified percentage of their historical water use. Those not meeting their conservation
target would be subject to a financial penalty on their next bill. When selecting which year
to use as a customer baseline, staff reviewed per capita usage for the prior 3 years. In
2020, total usage averaged 117 gallons per day person, compared to 2018 total average
2020 Usage Total Customers Percentage Total Units % Reduction Usage after Reduction
0-9 units 1,923 33% 62,740 0%62,740
10-18 units 1,913 33% 156,600 7%145,638
19 + units 1,998 34% 387,796 14%333,505
Total Usage 5,833 100% 607,136 11%541,883
2020 Usage Total Customers Percentage Total Units % Reduction Usage after Reduction
0-9 units 123 53% 41,715 0%41,715
10-18 units 81 35% 55,659 7%51,763
19 + units 26 11% 14,405 14%12,388
Total 230 100% 111,779 5%105,866
Customer Type 2020 Usage Reductions Usage after Reduction
SFR 607,136 11%541,883
MFR 111,779 5%105,866
Commercial 110,000 0%110,000
Irrigation meter 79,289 25%59,467
Total 908,204 10%817,215
Total 908,204 10%817,384
SINGLE FAMILY RESIDENTIAL
MULTI FAMILY RESIDENTIAL
ALL CUSTOMER TYPES
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usage of 112 gallons per day person and 2019 total average usage of 108 gallons per
day person.
Each account will be assigned a baseline amount of water, which will be equal to the
water used in the same billing period in 2020. Customers will then be requested to reduce
consumption by a certain percentage below their baseline amount. The percentage
reduction applicable to each customer will depend on the customer’s water usage tier.
Usage in the higher tiers will require a higher amount of reduction.
Customers will be mailed a baseline letter that includes a table similar to the sample
shown below. In addition, a sample baseline letter has been included as Attachment 5.
Account Number: 00-00000-00
Future Billing
Dates1
Baseline Historic
Usage in Units2
Maximum Allowable
Usage in Units3
January 2020 8 8
February 2020 - -
March 2020 21 19
April 2020 - -
May 2020 34 30
June 2020 - -
July 2020 23 20
August 2020 - -
September 2020 14 13
October 2020 - -
November 2020 24 21
December 2020 - -
1 - Water meters are read every-other month, therefore the bill you receive on the 3rd of the
billing month will reflect usage from the previous two months’ usage.
2 - Units: one unit of consumption (cons) equals 100 cubic feet or 748 gallons of water.
3 - Based on historic 2020 usage. This is the customer’s maximum water usage without
incurring a penalty. Users are encouraged to use less than the maximum allowed.
Each billing cycle will provide the amount that was used in 2020 as the customer’s
baseline and then a column that has calculated the reduction based on the percentage
that needs to be reduced. The 2020 baseline period will be used throughout the Stage 1
Water Shortage Emergency so that, if the drought continues beyond one year, customers
will not be required to reduce usage exponentially each year.
• What happens if a new home is built or additional people move into a home after
2020?
A customer who has had a change at their property, such as the construction of a new
home or the addition of residents on the property, would be eligible to apply for a baseline
adjustment. In the instance of a new home, including the construction of an Accessory
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Dwelling Unit (ADU), the 2020 average per capita use, 117 gallons per day per person,
will be used to develop a new baseline calculation for the property. For example, if two
people move into a newly constructed home, that account would be allocated 19 units
as the baseline. The calculation used to arrive at this amount is as follows: 117gpcd x 2
people = 234gpcd. A billing cycle on average is 60 days. 60 days’ x 234gpcd = 14,040
gallons, which = 19 units. A similar approach will be used if additional people move into
an existing residence. Customers may request a baseline adjustment by submitting a
Water Allocation Baseline Adjustment Request Form, which staff will review and approve
as appropriate. The adjusted baseline amount will then be used to create modified
reduction requirements.
During the last Stage 1 event in 2015 and 2016, City staff processed hundreds of
baseline adjustment requests. In short, Arroyo Grande can apply customized factors and
water conservation for each account. This process is time consuming, but the result is a
fair and equitable way of meeting the City’s overall reduction goal.
• What types of customers have irrigation meters and will agricultural customers be
required to reduce water usage?
The City does not currently serve any agricultural customers. The City’s irrigation
customers are commercial and MFR customers that have dedicated irrigation meters for
their outdoor water usage. Commercial customers with irrigation meters are proposed to
be required to reduce irrigation use by 25%. Staff met with local landscaping firms that
manage commercial customers within the City to review what would be acceptable cut
backs and a 25% reduction will add stress to these areas but would be a manageable
reduction. This is the same percentage reduction required to commercial customers
during the previous drought. Partial units will be rounded down.
• How will the City help customers reduce their water usage if they need help
achieving the reduction requirements?
The City currently reviews any abnormal usage amounts each billing cycle and contacts
customers with abnormally high usage to investigate possible leaks. Onsite water audits
are also provided currently and will continue to be provided throughout the Stage 1 Water
Shortage Emergency Declaration.
The City offers many Water Conservation Incentive Programs including: Water Efficient
Washing Machine Rebate Program, Cash for Grass Rebate Program and Plumbing
Retrofit Program. The Water Efficient Washing Machine Rebate Program is a program
that offers a $200 rebate for water customers who purchase a water efficient washing
machine. The FY 2021-22 budget includes $5,000 allocated towards this program, and,
to date, four rebates have been issued totaling $800, leaving $4,100 available in the
current budget for Water Efficient Washing Machine Rebates. The Cash for Grass Rebate
Program is a program that offers $1 per square foot of turf removed with a minimum of
500 square feet and a maximum of 5,000 square feet available for funding. Turf must be
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replaced with drought-tolerant plants, permeable mulch or artificial turf. The Cash for
Grass Rebate Program in the FY 2021-22 budget includes $100,000 allocated towards
this program, with approximately 60,000 square feet committed to date. The Plumbing
Retrofit Program is a program that offers installation of shower-heads, toilets, faucet
aerators, and pressure regulators. The FY 2021-22 budget includes $25,000 allocated
towards this program, with t approximately $1,300 spent to date for two retrofits and one
pressure regulator.
City staff will also offer a water school for customers who receive a second violation to
allow customers to offset their $50 fine by attending the 2-hour water school class. Water
school informs customers how to conserve water and how the water system works.
Detailed information is provided on how water is produced and delivered to the City, and
all possible options are reviewed to help customers conserve water. Attendees will be
taught how to read and time their meter and will be provided conservation tips, tools, and
strategies to stay within their assigned water allotment.
Next Steps
If the proposed Resolution is adopted, letters identifying each customer’s baseline water
amount will be mailed out on or before December 1, 2021, and warning letters will begin
being sent in February 2022. The February 2022 billing would include the estimated
service dates of November 20th - January 20th, which would provide customers time to
make adjustments to their water usage.
The City currently provides electronic utility bills to approximately 2,000 customers. If
copies of individual baseline letters were to be sent to all customers receiving electronic
bills, it is estimated to take approximately 100 hours of staff time.
Drought rates will be evaluated and included as an option in the Water & Sewer Rate
Study. Any such drought rates would only be used during Stage 1 or a higher Water
Shortage Emergency. Once the Water Shortage Emergency is rescinded, any adopted
drought rates will be rescinded and water rates will return to regular rates.
ALTERNATIVES:
The following alternatives are provided for Council’s consideration:
1. Adopt the Resolution declaring a Stage 1 Water Shortage Emergency and
implement Emergency Water Shortage Restrictions and Regulations in
accordance with California Water Code Section 350, et seq., and Arroyo
Grande Municipal Code Section 13.07.030;
2. Modify and adopt the Resolution;
3. Do not adopt the Resolution; or
4. Provide other direction to staff.
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CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A STAGE 1
WATER SHORTAGE EMERGENCY
OCTOBER 12, 2021
PAGE 8
ADVANTAGES:
Declaration of a Stage 1 Water Shortage Emergency and the required reductions in water
use will help preserve the limited water supply resources available to the City. Because
the rainy season is yet to come, it is unclear how long the current severe drought will
continue and how long the available water supplies will last. Also, adoption of the
Resolution will provide enforcement tools to provide for compliance with the Stage 1
restrictions.
DISADVANTAGES:
Water customers will be required to reduce water usage, which may create hardships on
members of the community and have negative impacts on available staff resources.
Declaration of the recommended Stage 1 Water Shortage Emergency will have a
significant impact on staff resource and time, including but not limited to:
• Responding to inquiries from residents to answer customer/ property specific
questions.
• Conducting site visits with property owners about water conservation options
and to conduct water audits.
• Responding to requests for water meter “re-reads.”
• Preparation of historical water use baseline amounts for each customer.
• Responding to requests for modifications to the established water use targets.
• Increase in time necessary for the UBAC acting as the WSAB to review
appeals.
In addition, continued water use reductions will decrease revenues to the Water and
Sewer Funds and may require consideration of a future water rate adjustment.
ENVIRONMENTAL REVIEW:
The adoption of this Resolution declaring a Stage 1 Water Shortage Emergency 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 at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1. Proposed Resolution with Revised Exhibit A
2. Staff Report from September 28, 2021 Council Meeting
3. Supplemental No 1 from September 28, 2021 Council Meeting
4. Supplemental No 2 from September 28, 2021 Council Meeting
5. Sample Baseline Letter
6. Water Shortage Emergency FAQ’s
Item 9.a. - Page 8
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE DECLARING A STAGE 1 WATER
SHORTAGE EMERGENCY IN ACCORDANCE WITH
CALIFORNIA WATER CODE SECTION 350 AND ARROYO
GRANDE MUNICIPAL CODE SECTION 13.07.030
WHEREAS, Chapter 13.07 of the Arroyo Grande Municipal Code (AGMC), Emergency
Water Shortage Restrictions and Regulations, provides for stages of action that will be
undertaken in response to water supply shortages and related triggering conditions, consistent
with the City of Arroyo Grande's Urban Water Management Plan and for the imposition of
regulations and restrictions, including, but not limited to, requirements to reduce consumption of
water, that are necessary in order to protect the health, safety and welfare of the community;
and
WHEREAS, the stages of action have been created in recognition of the fact that the
City's water supply consists of a combination of water from Lake Lopez and groundwater
sources, and that a variety of specific factors can result in the need to implement a stage of
action, as well as the potential for unanticipated interruptions of local water deliveries or the
imposition of additional State mandated reductions in water use; and
WHEREAS, AGMC Section 13.07.030(A) provides that after holding a noticed public
hearing in accordance with the requirements of Water Code Section 350 et seq., the City Council
may declare a Stage 1 Water Shortage Emergency and institute reductions in water usage,
based upon a determination that triggering conditions exist or there have been impacts to the
City's water supply, and/or it has been determined that it is imminent that the City's water supply
has or will become so limited that an emergency water shortage condition exists regarding the
available water supply being less than projected demand, necessitating the institution of
reductions in water usage; and
WHEREAS, triggering conditions for a Stage 1 Water Shortage Emergency under AGMC
Section 13.07.030(A) may include, but are not limited to, a determination that the water level at
Lake Lopez is at or below fifteen thousand (15,000) acre feet; there have been six quarterly
continuous events of sentry well level readings below the deep well index trigger level of seven
and one-half feet; and/or the imposition of mandatory reductions in water use by the City by the
state water resources control board.; and
WHEREAS, The City of Arroyo Grande has a limited water supply that consists of two
sources: Lake Lopez and groundwater. The San Luis Obispo County Flood Control and Water
Conservation District has developed the Lake Lopez Low Reservoir Response Plan (LRRP),
which provides for a series of management procedures that are to be followed when the reservoir
level drops below 20,000 acre feet, which includes reduced municipal water deliveries. In
addition, significant concerns exist regarding groundwater pumping and the potential for
seawater intrusion; and
Attachment 1
Item 9.a. - Page 9
RESOLUTION NO.
PAGE 2
WHEREAS, on July 8, 2021, Governor Gavin Newsom issued a Proclamation of a State
of Emergency, pursuant to the California Emergency Services Act, due to extreme drought in
additional counties in the State, including San Luis Obispo County; on July 13, 2021, the San
Luis Obispo County Board of Supervisors declared a local drought emergency; and on August
24, 2021, the Board of Supervisors initiated the LRRP for Lake Lopez. Under the LRRP, the City
will now be subject to a 10% reduction in Lopez deliveries, which equates to 216,000 gallons
per day; and
WHEREAS, as of July 14, 2021, the United States Drought Monitor shows San Luis
Obispo County in an extreme drought and rainfall to date for the period from July 1, 2020 through
June 30, 2021 was 9.11 inches at the City’s Corporation Yard rain gauge and based on the
severity of the drought, the upcoming rainy season may not be sufficient to replenish the City’s
normal available water supply; and
WHEREAS, as of September 22, 2021, Lopez Lake is at 15,426 acre-feet of storage, and
has been dropping at the rate of approximately 150 acre-feet per week and is therefore expected
to fall below the triggering threshold of 15,000 acre-feet by approximately October 14, 2021; and
WHEREAS, California Water Code Section 350 et seq. authorize the governing body of
a public water supply distributor to declare that water shortage emergency conditions prevail
within the area served by such distributor whenever it finds and determines that the ordinary
demands and requirements of water consumers cannot be satisfied without depleting the water
supply of the distributor to the extent that there would be insufficient water for human
consumption, sanitation, and fire protection, and Water Code Section 353 provides that when
such a water shortage emergency is declared the governing body shall adopt necessary
regulations and restrictions on the delivery and consumption of water; and
WHEREAS, the City of Arroyo Grande is granted authority by Water Code Section 350
et seq. and AGMC Chapter 13.07 to declare a Stage 1 Water Shortage Emergency and adopt
by resolution regulations and restrictions on the delivery and consumption of water; and
WHEREAS, pursuant to AGMC Chapter 13.07, based upon the foregoing determinations,
City staff has recommended that the City Council declare a Stage 1 Water Shortage Emergency
and implement reductions in water usage based upon Historical Use, as defined in Section
13.07.010 and as further set forth in Exhibit A to this Resolution; and
WHEREAS, in accordance with the requirements of AGMC Section 13.07.030 and Water
Code Sections 351 and 352, a public hearing regarding this declaration was duly noticed and
held on September 28, 2021 and a continued public hearing was held on October 12, 2021
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does
hereby declare, determine, and order as follows:
Item 9.a. - Page 10
RESOLUTION NO.
PAGE 3
SECTION 1. The foregoing Recitals are true, correct and are incorporated herein.
SECTION 2. Pursuant to AGMC Section 13.07.030 and Water Code Section 350, et seq., and
for the reasons set forth herein, the City Council of the City of Arroyo Grande hereby declares
that a Stage 1 Water Shortage Emergency now exists throughout the area served by the City of
Arroyo Grande and that as a result of the historic severe drought, the implementation of the
LRRP and the 10 % reduction in water deliveries from Lopez Reservoir, and the imminent falling
of Lopez Reservoir to below 15,000 acre-feet of storage, that there has or will be impacts on
the City’s water supply such that the available water supply is less than projected demand and
that the demands and requirements of the City’s water consumers cannot be satisfied without
depleting the water supply of the City to the extent that there would be insufficient water for
human consumption, sanitation and fire protection. Based on this condition and on concerns
regarding the anticipated prolonged drought conditions, and pursuant to the Arroyo Grande
Municipal Code and the authority in Water Code Section 353, the City Council hereby
implements reductions in water usage based upon Historical Use, as further set forth in Exhibit
“A,” which exhibit is attached hereto and incorporated herein by this reference, which the City
Council finds are necessary and appropriate to protect the health, safety and welfare of the
public.
SECTION 3. In accordance with the provisions of AGMC Section 13.07.030(A), and as further
set forth in Exhibit A, all residential water customers shall be assigned a baseline amount of
water based upon the amount of water used during the same billing period of the year prior to
the adoption of this Resolution. All residential customers shall reduce water usage by the
percentage amount set forth in Exhibit A. Such percentages may be modified or amended by
the City Council as deemed necessary and appropriate. Commercial customers with irrigation
meter accounts shall also 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 4. All other water conservation rules, regulations, restrictions, definitions,
enforcement procedures, violation provisions and appeal procedures, including, but not limited
to, those contained in AGMC Section 13.05.030, shall remain in full force and effect.
SECTION 5. The adoption of this Resolution declaring a Stage 1 Water Shortage Emergency 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 6. 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
Item 9.a. - Page 11
RESOLUTION NO.
PAGE 4
regard to whether any portion of the Resolution would be subsequently declared invalid or
unconstitutional.
SECTION 7. The restrictions and regulations adopted herein shall remain in effect for the
duration of the Stage 1 Water Shortage Emergency declared through this Resolution, and until
it is 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 12th day of October, 2021.
Item 9.a. - Page 12
RESOLUTION NO.
PAGE 5
___________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
___
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
__________________________________
WHITNEY MCDONALD, CITY MANAGER
APPROVED AS TO FORM:
___________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 9.a. - Page 13
EXHIBIT “A”
CITY OF ARROYO GRANDE RESOLUTION ______
DECLARATION OF 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 year prior to
the adoption of this Resolution.
B.IRRIGATION METER CUSTOMERS
All 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 9 units or less,
residential customers with bi-monthly usage of 10 to 18 units shall be required to reduce
consumption by 7% from the amount of usage of the assigned Baseline Water Amount.
Customers whose bi-monthly usage is 9 units or less shall not increase their usage above
the amount of their assigned Baseline Water Amount.
2. All residential customers with bi-monthly usage of 19 units or more shall be required to
reduce consumption by 14% 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.
In accordance with Arroyo Grande Municipal Code Section 13.07.030(A), 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 increasing 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
Item 9.a. - Page 14
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 B and C herein, and
customers whose bi-monthly use is 9 units or less and whose use increases above the
amount of their assigned Baseline Water Amount:
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
Violations:
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.
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.
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.
Item 9.a. - Page 15
‘ ` MEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY MCDONALD, CITY MANAGER
TIMOTHY CARMEL, CITY ATTORNEY
BY: DROUGHT TEAM:
BILL ROBESON, ASSISTANT CITY MANAGER/PUBLIC WORKS
DIRECTOR
NICOLE VALENTINE, ADMINISTRATIVE SERVICES DIRECTOR
JESSICA MATSON, LEGISLATIVE & INFORMATION SERVICES
DIRECTOR/CITY CLERK
DAVID HIRSCH, ASSISTANT CITY ATTORNEY
SHANE TAYLOR, UTILITIES MANAGER
PATRICK HOLUB, ASSISTANT PLANNER
TIM SCHMIDT, PUBLIC WORKS LEADPERSON
TUCKER SCHMIDT, WATER SERVICES WORKER III
CAMELA SCHAAF, SENIOR ACCOUNTING CLERK
SUBJECT: CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A
STAGE 1 WATER SHORTAGE EMERGENCY
DATE: SEPTEMBER 28, 2021
SUMMARY OF ACTION:
Conduct a public hearing in accordance with Water Code Section 350, et seq., adopt a
Resolution declaring a Stage 1 Water Shortage Emergency, and implement reductions in
water usage as provided in Arroyo Grande Municipal Code Section 13.07.030(A).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The exact costs of implementing Stage 1 Emergency Shortage Restrictions are
dependent upon several variables, including the length of time that the City experiences
a water shortage. Impacts to City staff resources include the need to analyze and to
determine water use baselines based on historical use. In addition, the following impacts
are anticipated:
•Responding to inquiries from residents to answer customer/property
specific questions.
•Conducting site visits with property owners about water conservation
options and to conduct water audits.
•Responding to requests for water meter “re-reads.”
Attachment 2
Item 9.a. - Page 16
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A STAGE 1
WATER SHORTAGE EMERGENCY
SEPTEMBER 28, 2021
PAGE 2
‘ ` • Responding to requests for modifications to the established water use
baselines.
• Increase in the time necessary for the Utility Billing Adjustment Committee
(UBAC) acting as the Water Shortage Appeal Board (WSAB) to review
appeals.
Continued water use reductions will decrease revenues to the Water Fund and may
require consideration of a future water rate adjustment.
The cost to mail out baseline letters will be approximately $4,000 which includes $2,800
to be allocated from the Water Fund unallocated fund balance and $1,200 from the Sewer
Fund unallocated fund balance.
For FY 2021-22, it is anticipated that utility billing revenue loss from implementing a Stage
1 Water Emergency will be approximately $413,800 to the Water Fund and approximately
$56,000 to the Sewer Fund. A drought rate will be included for consideration in the Water
and Sewer Rate Study coming before Council this fall.
RECOMMENDATION:
It is recommended the City Council: 1) Conduct a Public Hearing in accordance with
Water Code Section 350, et seq.; 2) Adopt a Resolution declaring a Stage 1 Water
Shortage Emergency and implementing Emergency Water Shortage Restrictions and
Regulations in accordance with California Water Code Section 350, et seq., and Arroyo
Grande Municipal Code Section 13.07.030(A); and 3) Appropriate $2,800 from water fund
balance and $1,200 from sewer fund balance for the cost to mail out baseline letters.
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 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. During the previous drought that
occurred in 2015, the State of California mandated a 28% reduction of water usage.
AGMC and Declaration of Stage 1 Water Shortage Emergency
Chapter 13.07 of the Arroyo Grande Municipal Code (AGMC), Emergency Water
Shortage Restrictions and Regulations, provides for stages of action that will be
undertaken in response to water supply shortages and related triggering conditions.
Chapter 13.07 was added to the AGMC in February 2015. On May 26, 2015, the City
Council declared a Stage 1 Water Shortage Emergency in accordance with Water Code
Section 350, et seq., 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. On April 25, 2017, the City Council, by Resolution, rescinded the Stage 1
Item 9.a. - Page 17
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A STAGE 1
WATER SHORTAGE EMERGENCY
SEPTEMBER 28, 2021
PAGE 3
Water Shortage Emergency and related emergency water conservation measures and
restrictions.
In February 2017, AGMC Chapter 13.07 was amended to provide for stages of action
consistent with the City’s revised Urban Water Management Plan. The stages of action
were created in recognition of the fact that the City's water supply consists of a
combination of water from the Lopez Reservoir and groundwater sources, and that a
variety of specific factors can result in the need to implement a stage of action, such as
unanticipated interruptions of local water deliveries or the imposition of additional State
mandated reductions in water use.
AGMC Section 13.07.030(A) provides that after holding a noticed public hearing in
accordance with the requirements of Water Code Section 350, et seq., the City Council
may declare a Stage 1 Water Shortage Emergency and institute reductions in water
usage based upon historical use. Water Code Section 350, et seq., authorizes the
governing body of a public water supply distributor to declare that water shortage
emergency conditions prevail within the area served by such distributor whenever it finds
and determines that the ordinary demands and requirements of water consumers cannot
be satisfied without depleting the water supply of the distributor to the extent that there
would be insufficient water for human consumption, sanitation, and fire protection. Water
Code Section 353 provides that when such a water shortage emergency is declared, the
governing body shall adopt necessary regulations and restrictions on the delivery and
consumption of water.
Under AGMC Section 13.07.030(A), triggering conditions for a Stage 1 Water Shortage
Emergency may include, but are not limited to, a determination that the water level at the
Lopez Reservoir is at or below fifteen thousand (15,000) acre feet. As discussed below,
Lopez Reservoir is anticipated to fall below the triggering threshold of 15,000 acre-feet by
approximately October 14, 2021.
Reductions in Use, Review Procedures and Appeals when a Stage 1 Water Shortage
Emergency is Declared
As noted, AGMC Chapter 13.07 provides procedures for the City Council to declare a
Stage 1 Water Shortage Emergency. When that occurs, reductions in water usage are
then imposed based upon historical use. AGMC Section 13.07.010 defines “historical
use” as “a baseline amount of water that is equal to the amount of water used in the same
billing period for a specifically identified previous year.” AGMC Section 13.07.030(A)(2)
explains the procedures for establishing water use reductions for customers as follows:
Assign each customer a baseline amount of water, based upon the
amount of water used during 2020.
All residential customers will be required to reduce water usage by a
percentage amount set forth in the Resolution, and percentages may
Item 9.a. - Page 18
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A STAGE 1
WATER SHORTAGE EMERGENCY
SEPTEMBER 28, 2021
PAGE 4
be modified or amended by the City Council as deemed necessary
and appropriate.
The percentage of required conservation will increase depending on
the billing tier of the residential customer's water use as provided in
the City's tiered water rate structure.
The Resolution will include provisions for imposing mandatory
financial penalties if the amount of water in each tier is exceeded,
and penalties may 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.
Pursuant to AGMC Section 13.07.050, commercial customers are not subject to
mandatory penalties during a Stage 1 Water Shortage Emergency, except for commercial
customers with irrigation meter accounts, which are required to reduce water use by a
percentage set forth in the resolution declaring the water shortage emergency.
AGMC Section 13.07.070 contains procedures for adjustments to the water allocation or
water reduction requirements if a customer can provide evidence of unique
circumstances. If the criteria are met, the Public Works Director has the authority to grant
the adjustment. In addition, AGMC Section 13.07.080 provides that the City’s Utility Billing
Adjustment Committee (UBAC) is empowered to act as the Water Shortage Appeals
Board (WSAB), and can consider appeals of actions taken by the Public Works Director,
including adjustments to water consumption reduction amounts, decisions on applications
for exceptions, and decisions to assess administrative penalties. Appeals of the WSAB
decision can also be made to the City Manager and City Council.
ANALYSIS OF ISSUES:
Current Water Supply and Demand Conditions
The City of Arroyo Grande has a limited water supply that consists of two primary sources:
Lake Lopez and groundwater. The San Luis Obispo County Flood Control and Water
Conservation District Zone 3 has developed the Lake Lopez Low Reservoir Response
Plan (LRRP), which provides for a series of management procedures that are to be
followed when the reservoir level drops below 20,000 acre feet. The LRRP includes
reduced municipal water deliveries as one such management procedure.
The United States Drought Monitor, as of September 15, 2021, shows San Luis Obispo
County in an extreme drought. Rainfall to date for the period July 1, 2021, through
September 15, 2021, is 0.0 inches at the City’s Corporation Yard rain gauge. The new
water year began on April 1, 2021, and the City’s annual Lopez contract supply was 2,290
acre-feet at that time. On July 8, 2021, Governor Gavin Newsom issued a Proclamation
of a State of Emergency, pursuant to the California Emergency Services Act, due to
drought in several counties in the State, including San Luis Obispo County. On July 13,
2021, the San Luis Obispo County Board of Supervisors (Board) declared a local drought
Item 9.a. - Page 19
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A STAGE 1
WATER SHORTAGE EMERGENCY
SEPTEMBER 28, 2021
PAGE 5
emergency; and, on August 24, 2021, the Board enacted the LRRP for Lopez Lake. On
September 8, 2021, the Zone 3 Technical Advisory Committee endorsed the action of
reducing contract deliveries by 10% even though, as of September 22, 2021, Lopez Lake
is at 15,426 acre-feet of storage. Water levels at Lopez Lake have been dropping at the
rate of approximately 150 acre-feet per week and is, therefore, expected to fall below the
triggering threshold of 15,000 acre-feet by approximately October 14, 2021. The City
began reducing the flow of its deliveries from Lopez on September 15, 2021, to 1.9 million
gallons per day, compared to the normal flow of 2.2 million gallons per day.
In addition to deliveries from Lopez Lake, the City has 1,323 acre-feet of ground water
entitlement from the Santa Maria Basin, and 160 acre-feet from the Pismo Formation.
The third quarter monitoring for the sentry wells was completed in July. The deep well
index was 7.25 feet above sea level, which is 0.25 feet lower than the deep well index
threshold value of 7.5 feet and 1.75 feet lower than the index value one year ago (9.0
feet). One trigger for a Stage 1 Water Emergency occurs when the deep well index falls
below 7.5 feet for 6 consecutive quarters. While the 6 consecutive quarters have not yet
occurred, the well level trends are concerning and the Technical Advisory Committee for
the Northern Cities Management Area (NCMA) may recommend pumping reductions to
protect against the potential for seawater intrusion.
When the City Council rescinded the previously declared Stage 1 Water Shortage
Emergency on April 25, 2017, Council requested that staff continue preparing monthly
water supply and demand updates. As noted in the September 28, 2021 Monthly Water
Supply Report and Demand Update, in August 2021, the City’s water use was 217.5 acre-
feet with a per capita use of 130 gallons per day/per person. No rainfall occurred in August
2021. The water use for the current “rolling” water year from September 2020 to August
2021 was 2,392.9 acre-feet, which equates to a per capita use of 121 gallons per day per
person. The projected water use for the City of Arroyo Grande for water year 2021/22 is
2,450 acre-feet based on current rainfall.
Based upon the foregoing, staff recommends that the City Council adopt the attached
Resolution declaring a Stage 1 Water Shortage Emergency.
Recommendation regarding Water Usage Reductions and Penalties
The proposed Resolution uses a historical methodology of reducing customer water
accounts based on 2020 usage. This concept requires every household to conserve a
specified percentage of their historical water use. Those not meeting their conservation
target would be subject to a financial penalty on their next bill.
Each account will be assigned a baseline amount of water, which will be equal to the
water used in the same billing period in 2020. Customers will then be requested to reduce
consumption by a certain percentage below their baseline amount. The percentage
reduction applicable to each customer will depend on the customer’s water usage tier.
Item 9.a. - Page 20
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A STAGE 1
WATER SHORTAGE EMERGENCY
SEPTEMBER 28, 2021
PAGE 6
Usage in the higher tiers will require a higher amount of reduction. This approach is
consistent with AGMC Section 13.07.030(A)(2), which states that “[t]he percentage of
required conservation shall increase depending on the billing tier of the residential
customer's water use as provided in the City's tiered water rate structure.” In addition, this
approach helps to address concerns that reduction requirements may penalize customers
that have already instituted conservation measures.
Staff has analyzed the overall customer usage for 2020 and evaluated the total amount
of reductions that would be necessary to achieve a 10% reduction for all customers,
correlating to the 10% cutback in Lopez deliveries required under the LRRP.
Approximately one third or 33% of the water customers fall into usage of 0-9 units of
water, one third or 33% of the water customers fall into usage of 10-18 units of water, and
the remaining 34% of water customers use more than 19 units of water. These
percentages were used to calculate a reduction allocation for each group of water users
so that a water use reduction of 10% overall can be achieved. For users of 0-9 units, the
reduction allocation is 0%; for users of 10-18 units, the reduction allocation is 10%; and
for users of 19 or more units, the reduction allocation is 20%. This information is also
shown in the table below.
Multi-family residential customers would be required to reduce consumption by 10%.
Commercial customers with irrigation meters would be required to reduce irrigation use
by 25%. Staff met with local landscaping firms that manage commercial customers within
the City to review what would be acceptable cut backs and a 25% reduction will add stress
to these areas but would be a manageable reduction. This is the same percentage
reduction required to commercial customers during the previous drought. Partial units will
be rounded down.
As noted, under the provisions in AGMC Chapter 13.07, commercial customers will be
exempt from the overall water restrictions unless they have an irrigation meter. The
reasons for this exemption include recognition that many commercial businesses are
unable to institute conservation measures without impacting public health and safety and
the economic vitality of the City. In addition, commercial customers account for a relatively
small percentage of the City’s water use, 10% of total consumption.
AGMC Section 13.07.090 provides for penalties and enforcement, which are to be set
forth in the Resolution declaring the Water Shortage Emergency. During the previous
2020 Customers by Tier Total Customers Percentage Total Units % Reduction usage after Reduction
0-9 units 1,998 33% 65,005 0%65,005
10-18 units 1,998 33% 163,649 10%147,284
19 + units 2,120 34% 412,567 20%330,054
Total 6,115 100% 641,221 10%542,343
Single Family Residental Water Customers
Item 9.a. - Page 21
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A STAGE 1
WATER SHORTAGE EMERGENCY
SEPTEMBER 28, 2021
PAGE 7
Stage 1 Water Shortage Emergency, the following penalties were imposed, and staff
recommends the same penalties be used for water users who fail to reduce consumption
in the percentages required:
• First Violation: Written notice of violation
• Second Violation: $50
• Third Violation: $100
• Subsequent $200
Repeated violations may also be subject to criminal prosecution as a misdemeanor
pursuant to AGMC Section 13.07.090(B), as well as possible discontinuance of service
or installation of a flow restriction device.
Next Steps
If the proposed Resolution is adopted, letters identifying each customer’s baseline water
amount will be mailed out on or before December 1, 2021, and warning letters will begin
being sent in February 2022. The February 2022 billing would include the estimated
service dates of November 20th - January 20th, which would provide customers time to
make adjustments to their water usage.
Drought rates will be evaluated and included as an option in the Water & Sewer Rate
Study. Any such drought rates would only be used during Stage 1 or higher Water
Shortage Emergency. Once the Water Shortage Emergency is rescinded the water rates
will return to regular rates.
ALTERNATIVES:
The following alternatives are provided for Council’s consideration:
1. Adopt the Resolution declaring a Stage 1 Water Shortage Emergency and
implement Emergency Water Shortage Restrictions and Regulations in
accordance with California Water Code Section 350, et seq., and Arroyo
Grande Municipal Code Section 13.07.030;
2. Modify and adopt the Resolution;
3. Do not adopt the Resolution; or
4. Provide other direction to staff.
ADVANTAGES:
Declaration of a Stage 1 Water Shortage Emergency and the required reductions in water
use will help preserve the limited water supply resources available to the City. Because
the rainy season is yet to come, it is unclear how long the current severe drought will
continue and how long the available water supplies will last. Also, adoption of the
Resolution will provide enforcement tools to provide for compliance with the Stage 1
restrictions.
Item 9.a. - Page 22
CITY COUNCIL
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A STAGE 1
WATER SHORTAGE EMERGENCY
SEPTEMBER 28, 2021
PAGE 8
DISADVANTAGES:
Water customers will be required to reduce water usage, which may create hardships on
members of the community and have negative impacts on available staff resources.
Declaration of the recommended Stage 1 Water Shortage Emergency will have a
significant impact on staff resource and time, including but not limited to:
• Responding to inquiries from residents to answer customer/ property specific
questions.
• Conducting site visits with property owners about water conservation options
and to conduct water audits.
• Responding to requests for water meter “re-reads.”
• Preparation of historical water use baseline amounts for each customer.
• Responding to requests for modifications to the established water use targets.
• Increase in time necessary for the UBAC acting as the WSAB to review
appeals.
In addition, continued water use reductions will decrease revenues to the Water and
Sewer Funds and may require consideration of a future water rate adjustment.
ENVIRONMENTAL REVIEW:
The adoption of this Resolution declaring a Stage 1 Water Shortage Emergency 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 at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachment:
1. Proposed Resolution
Item 9.a. - Page 23
MEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY McDONALD, CITY MANAGER
TIMOTHY CARMEL, CITY ATTORNEY
BILL ROBESON, ASSISTANT CITY MANAGER/PUBLIC WORKS
DIRECTOR
NICOLE VALENTINE, ADMINISTRATIVE SERVICES DIRECTOR
SUBJECT: SUPPLEMENTAL INFORMATION
AGENDA ITEM 9.a. – SEPTEMBER 28, 2021 CITY COUNCIL MEETING
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A
STAGE 1 WATER SHORTAGE EMERGENCY
DAT E: SEPTEMBER 28, 2021
The original staff report published for this item includes the following table providing the
calculations used to determine the reductions proposed for Single Family Residential
Water Customers as follows:
This table does not identify the calculations used to determine the proposed reductions
for other customer types, including Multi-Family Residential and Irrigation Meter
Customers. Upon further review, staff determined that, when factoring in the proposed
reductions for all customer types, the current proposal would actually result in a total water
use reduction of 14%, as shown in Table A below:
Attachment 3
Item 9.a. - Page 24
SUPPLEMENTAL INFORMATION
AGENDA ITEM 9.a. – CITY COUNCIL MEETING
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A STAGE 1
WATER SHORTAGE EMERGENCY
SEPTEMBER 28, 2021
PAGE 2
TABLE A
However, as identified in the original staff report, staff is recommending that the City seek
a 10% overall reduction in water use, consistent with the 10% reduction in Lopez
Reservoir deliveries required under the Low Reservoir Response Plan. With this
additional information, staff recommends modifying the reduction amounts included in the
Stage 1 Water Shortage Emergency Declaration Resolution to obtain a total water use
reduction that is closer to 10%. Staff’s revised recommendation is to require a 7%
reduction for Single-Family Residential Customer using between 10-18 units of water, a
14% reduction for Single-Family Residential Customers using more than 19 units, and a
20% reduction for Irrigation Meter Customers.
The calculations used to arrive at this revised recommendation is shown in Table B below:
TABLE B
The modified recommendations are identified in highlighted grey above.
2020 Customers by Tier Total Customers Percentage Total Units % Reduction Usage after Reduction
0-9 units 1,998 33% 65,005 0%65,005
10-18 units 1,998 33% 163,649 10%147,284
19 + units 2,120 34% 412,567 20%330,054
Total 6,115 100% 641,221 15%542,343
Customer Type 2020 Usage % Reduction Usage after Reduction
SFR 641,221 15%542,343
MFR 99,494 10%89,545
Commercial 110,000 0%110,000
Irrigation meter 79,289 25%59,467
Total 930,004 14%801,354
Target Overall Total 930,004 10%837,004
Single Family Residential Water Customers
2020 Customers by Tier Total Customers Percentage Total Units % Reduction Usage after Reduction
0-9 units 1,998 33% 65,005 0%65,005
10-18 units 1,998 33% 163,649 7%152,194
19 + units 2,120 34% 412,567 14%354,808
Total 6,115 100% 641,221 11%572,006
Customer Type 2020 Usage % Reduction Usage after Reduction
SFR 641,221 11%572,006
MFR 99,494 10%89,545
Commercial 110,000 0%110,000
Irrigation meter 79,289 20%63,431
Total 930,004 10%834,982
Target Overall Total 930,004 10%837,004
Single Family Residential Water Customers
Item 9.a. - Page 25
SUPPLEMENTAL INFORMATION
AGENDA ITEM 9.a. – CITY COUNCIL MEETING
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A STAGE 1
WATER SHORTAGE EMERGENCY
SEPTEMBER 28, 2021
PAGE 3
A revised exhibit to the proposed Resolution setting forth the new recommended
reductions is included as Attachment 1 to this supplemental report. A red-lined version is
provided as well (Attachment 2) to show the changes made in the exhibit that was
included with the original staff report.
Attachments:
1. Revised Exhibit A to the proposed Resolution (clean)
2. Revised Exhibit A to the proposed Resolution (redline)
cc: City Attorney
City Clerk
City Website (or public review binder)
Item 9.a. - Page 26
MEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY McDONALD, CITY MANAGER
SUBJECT: SUPPLEMENTAL INFORMATION
AGENDA ITEM 9.a. – SEPTEMBER 28, 2021 CITY COUNCIL MEETING
CONSIDERATION OF APPROVAL OF A RESOLUTION DECLARING A
STAGE 1 WATER SHORTAGE EMERGENCY
DATE: SEPTEMBER 28, 2021
Attached is correspondence received by 4:00 PM for the above referenced item.
cc: Assistant City Manager/Public Works Director
Administrative Services Director
City Attorney
City Clerk
City Website (or public review binder)
Attachment 4
Item 9.a. - Page 27
CITY OF
ARROYO GRANDE
CALIFORNIA
Current Resident
300 E. Branch St.
Arroyo Grande, CA 93420
Stage 1 Water Emergency: Baseline Notification Letter
Dear Valued Water Customer,
California is facing one of the worst droughts in recent history. In response, on October 12, 2021, the
Arroyo Grande City Council declared a Stage 1 Water Emergency and approved mandatory water
conservation measures. Although Arroyo Grande’s water customers are doing a great job reducing water
consumption, we need to conserve more. This declaration requires that water users reduce water
consumption. Usage beginning on December 1, 2021 will be the first cycle that will compare your current
usage to your 2020 baseline usage. Your baseline will increase or decrease with each billing period. Your
baseline usage per billing period as well as maximum allowable usage is shown below:
Account Number: 00-00000-00
Future Billing Dates1
Baseline Historic Usage
in Units2
Maximum Allowable
Usage in Units3
January 2020 8 8
February 2020 - -
March 2020 21 19
April 2020 - -
May 2020 34 30
June 2020 - -
July 2020 23 20
August 2020 - -
September 2020 14 13
January 2020 8 8
February 2020 - -
March 2020 21 19
1 - Water meters are read every-other month, therefore the bill you receive on the 3rd of the billing
month will reflect usage from the previous two months usage.
2 - Units: one unit of consumption (cons) equals 100 cubic feet or 748 gallons of water.
3 - Based on historic 2020 usage. This is the customer’s maximum water usage without incurring a
penalty. Users are encouraged to use less than the maximum allowed.
Do I Really Have to Reduce My Water Usage?
Yes. Tier 1 water customers are not required to reduce water usage, but reductions are encouraged. Tier
2 and 3 water users are required to reduce water usage to less than or equal to your maximum allowable
water usage requirement. Water usage in excess of your maximum allowable water usage will result in a
monetary penalty. Voluntary compliance and working together to reduce water consumption is in
everyone’s best interest.
Attachment 5
Item 9.a. - Page 28
What does a Stage 1 Water Emergency Mean?
A Stage 1 Water Emergency means we all need to reduce the amount of water we use. The three main
components of this emergency include: 1) Baseline water amount based on 2020 use is assigned to each
residential customer; 2) residential customers are required to reduce consumption by a certain
percentage (see table below); and 3) enforcement provisions that include increasingly significant financial
penalties to ensure that the scarce and irreplaceable commodity of water is equitably distributed and is
conserved.
Need Help Saving Water?
The City of Arroyo Grande has several programs, including water
audits, which can help you conserve water. For information on
the City’s programs and tips on how to save water please visit
www.thinkh2onow.com.
My Historic Water Usage Doesn’t Reflect My Water Needs. How Do I Change My Baseline?
For unusual circumstances, Arroyo Grande Municipal Code Section 13.07.070 contains procedures for
adjustments of the baseline. If you would like more information regarding the adjustment procedure, visit
the City’s website at www.arroyogrande.org/148/water-conservation for further instructions.
The City offers many Water Conservation Incentive Programs including:
• Water Efficient Washing Machine Rebate Program
• Cash for Grass Rebate Program
• Plumbing Retrofit Program.
Want to Learn More?
• Water Reduction Tips: www.thinkh20now.com
• Stage 1 Water Shortage Emergency: www.arroyogrande.org/148/water-conservation
• Track your Usage at www.arroyogrande.org/148/water-conservation
Thank you for your participation in helping conserve water. Your actions today will sustain our community
through one of the worst droughts in California history.
Sincerely,
City of Arroyo Grande
Department of Administrative Services
Category Usage Range (Units)
Reduction
Percentage
Tier 1 0 – 9 0%
Tier 2 110 – 18 7%
Tier 3 More than 19 14%
Item 9.a. - Page 29
Water Conservation – FAQ’s
Q. When will notices be sent regarding the required water conservation and
providing my “baseline”?
A. Notices will be mailed to all customers by December 1, 2021, notifying each address
of the required conservation ordinance and establishing the “baseline” for the address.
Q.What is my “baseline” based on?
A. Each customer’s “baseline” reflects the historical amount of water used at that location
during each billing cycle of calendar year 2020. Customers are required to reduce water
consumption by up to 0%, 7% or 14%, depending on how many water units were
historically used at the subject property. The less water you already use, the less you will
have to reduce. Higher water users will have to conserve more. The notices provide each
property with their maximum allowable usage for each future billing cycle based on their
“baseline,” less their required conservation percentage.
Q.I can’t reduce my water use below the maximum allowable usage. What can I
do?
A. Customers that have had a change in circumstances that prevents them from reducing
water use to an amount below the maximum allowable usage can apply for a baseline
adjustment. In order to apply for the adjustment, customers must complete a Baseline
Adjustment Request Form and a Water Audit and provide information and/or
documentation about their circumstances.
Q. I received a warning in the mail that I didn’t meet my reduction requirement.
Now what?
A. The first time a customer fails to meet their reduction target and uses more water than
their maximum allowed usage, they receive a courtesy warning letter. This letter serves
as notice to the customer that additional conservation efforts are required. Visit the City’s
water conservation website for ideas on how to further reduce your water use at:
www.thinkh2onow.com.
Q.I didn’t meet my reduction target again and now I have a financial penalty. What
can I do?
A. As described above, the first time you do not meet your required reduction, you will
receive a warning. The second time you do not meet your required reduction, you receive
a $50 fine. Fines increase for each subsequent violation of the water reduction
requirement. Customers who attend water school can receive a $50 credit on their bill. In
Attachment 6
Item 9.a. - Page 30
order to enroll in water school, contact 805-473-5485. Water school will be scheduled in
Spring 2022.
If you believe you should not have received the fine, you can appeal the fine by writing a
letter, including your name, water service address, water account number, and the reason
for the appeal. Mail the appeal letter to:
Water Adjustment Board
City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93420
Q. I want to enroll in water school. Do I still need to pay the $50 fine?
A. Yes. Customers will receive a $50 credit on their water bill upon completion of water
school. However, in order to avoid late charges, penalties and interest, they should pay
the full amount of their water bill, including any fines by the due date identified on their
bill.
Q. Is it too late to request a baseline adjustment?
A. Baseline adjustments for future billing periods can be requested at any time. However,
baseline adjustments will not be retroactive to prior billing cycles. To complete the
required forms, visit the City’s water conservation webpage.
Drought in the Landscape
Q. Are there some easy things I can do to save water in a landscape?
A. Check sprinkler irrigation systems regularly for physical and operational problems that
reduce sprinkler system’s efficiency. Walk through an area while the irrigation system is
running and repair or replace sprinklers that are broken, sunken, crooked, or clogged with
soil or debris. Also, be certain that sprinklers are watering the plants they are intended to
get to. When sprinklers are positioned incorrectly, they might be watering the sidewalk
instead of your planting area. Make sure you’re not losing water to the street and gutter.
Correcting these problems can improve the uniformity of water application, reduce water
waste by 10 percent or more, and greatly improve the health of plantings.
Q. Does a landscape have to be re-planted with specific drought tolerant or
“California Friendly” plants to save significant amounts of water?
A. No. Field research studies indicate that most established landscape trees, shrubs,
and groundcovers, regardless of the species planted, perform acceptably with 20 to 40
percent less irrigation than they are typically given. These include many of the plant
species commonly grown in existing landscapes. Established small shrub or groundcover
are those that have been in the ground for a period of one year or more. A tree or larger
shrub must be in the ground for at least three years to be considered established.
Q. What plants are actually drought resistant?
A. A lot of commonly planted tree and shrub species are more water-conserving that you
might think. All plants require a steady supply of moisture for one year or more after they
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are first planted. This is the plant’s establishment phase where it is developing an
extensive root system. Once woody landscape plants are established, they typically
perform acceptably with reduced summer water. Plant species that perform well in
summer drought are typically species that evolved in regions with summer drought. Plants
that originate from dry summer areas in inland California, Mexico, Arizona and Texas are
adapted to limited summer water. Keep in mind that no native or ‘drought-resistant’ plant
is actually water conserving until it has become established for a period of at least one
year.
Q. What is the best approach for conserving water in a lawn or landscape?
A. Ideally, you want to water infrequently and deeply. You can accomplish this by
increasing irrigation runtimes and extending the number of days between irrigation
events. This is contrary to the idea that you should reduce the irrigation runtime and keep
the same frequent irrigation interval.
To do this successfully, schedule slightly longer irrigation runtime so that the entire root
zone of plants is rewetted at each irrigation site and gradually increase the interval
between irrigations over a few weeks. This practice will allow you to save water while
allowing your plants to adjust to a new watering regiment. After extending the interval
between irrigations, the water budgeting or seasonal adjust feature found on many
controllers can be used to fine tune runtimes and achieve optimum water conservation.
Remember that tall fescue lawns normally have roots 6 to 12 inches deep while roots of
Bermuda grass and other warm season grasses are normally at least 12 inches deep.
The majority of roots of trees, shrubs, and groundcovers are normally found within 12 to
24 inches of the soil surface. In order to wet fully the soil to these depths without creating
runoff or puddling of water will usually require scheduling two to four relatively short
irrigation cycles of 5 to 15 minutes on each irrigation day, depending on slope, soil type,
output of the irrigation system, and how much water is needed. Be certain the irrigation
system is functioning well and applies water uniformly over the area.
Q. How much can irrigation be reduced without hurting trees, shrubs, and other
landscape plants?
A. Over irrigation is very common, so most plants can stand having their irrigation
reduced by 20 to 40 percent. Gradual reductions applied over a few weeks using the
approach described above is important so plants can adjust to less water, especially if
the reduction is more than 10 percent.
Q. If water becomes severely restricted; how should priorities be set to save
landscape plants?
A. When water is limited most people choose to water fruit trees, landscape trees, and
shrubs. Lawns, groundcovers, and bedding plants can be reestablished over a relatively
short time, but trees and shrubs need years to mature and are less easily replaced. A few
deep, thorough irrigations spaced several weeks apart from spring through summer can
be enough to keep most trees and shrubs alive when water is in short supply. Many tree
and shrub species will drop leaves or wilt under severe water shortage but will survive.
Item 9.a. - Page 32
Under-watered fruit trees probably will produce less if any fruit, but will also survive. Once
water shortages are lifted, these trees will again leaf out and produce fruit if applicable.
Q. When should trees, shrubs, and other landscape plants be planted in a dry
year or if drought is expected?
A. Hold off planting until fall or winter to take advantage of cool weather as well as fall
and winter rains.
Q. How often should newly planted trees and shrubs be watered?
A. The root balls of newly planted trees and shrubs need to be kept moist until a network
of roots grows out into native soil. Newly planted container plants may need watering
every day for several weeks during warm weather. Adding a 4-inch-thick layer of mulch
reduces water loss and weed problems. Delaying planting until the fall can reduce the
frequency of irrigation required to maintain moisture in the root balls of new transplants
and takes advantage of fall rains.
Q. What are the easiest ways to reduce water use by a landscape without
removing or damaging it?
A. Be sure to water at night, ideally between 9:00 PM and 6:00 AM. Doing this reduces
evaporation and the chance that wind will be strong enough to interfere with sprinkler
patterns. Next, walk through the area while the irrigation system is running and watch
how well the water is applied. Adjust sprinklers to get water completely covering the
ground from one head to another and eliminate overspray onto pavement that leads to
runoff. Repair any misaligned or broken sprinkler heads, fix leaks at heads or valves, and
prune away any plant material that blocks sprinklers. Be sure to add mulch (4 inches
preferable) around shrubs, trees, flowers, and newly planted plants to reduce
evaporation. Finally, adjust the runtimes in your irrigation controller every month to
account for changes in the average weather conditions. Doing all of these things can
reduce landscape water use by up to 10%.
Q. How much water will be saved by upgrading to a “smart” or “ET” irrigation
controller?
A. Claims of 20 percent water savings are purported, but there is no guaranteed amount
of water savings after installing one of the new smart or ET controllers. Few research
studies have quantified the amount of water saved and simultaneously quantified
performance of landscape plants after one of these devices was installed. Installing a
smart controller can result in more, less, or the same amount of water applied to a given
landscape depending on a number of factors. Critical factors include how much water
was previously applied to the landscape (i.e. was the landscape over or under watered
or watered correctly), how accurately the device was setup, and how well the irrigation
system performs.
Q. How often and how much should non-turf landscape plants be watered?
A. As a general rule, established non-turf landscape plants need less frequent irrigation
than a lawn area. Many trees, shrubs, and groundcovers will perform acceptably when
watered every four to ten days in the summer. However, this varies largely based on plant
Item 9.a. - Page 33
species. At each irrigation, enough water must be applied to fully wet most of the root
system. In most cases, this means running the irrigation system long enough to wet the
soil at least 12 inches deep. A good rule of thumb is to water your non-turf landscape
plants infrequently but deeply. Your goal is to wet the entire root zone at each watering
event and then allow the soil to dry before your next watering event.
Q. How can you determine how much water a sprinkler irrigation system applies?
A. You can conduct a can test. Gather at least six straight-sided containers of the same
size (used pet food or tuna cans work very well) and set them evenly spaced in the lawn
placed between sprinkler heads. More containers often produce more accurate test
results. Run the sprinkler system for 20 minutes and use a ruler to measure the depth of
water (in inches) in each container. Total the water depths for all containers and divide
by the number of containers to determine the average depth of water applied. Multiply the
average depth by three to determine how many inches of water the system applies per
hour. Use the results to set the runtime in your irrigation controller. While running the
irrigation system for this test, note the time at which runoff begins. This is the maximum
number of minutes the system should run for a cycle. In many instances, the irrigation
system will need to run more minutes than the time to runoff in order to apply enough
water. Scheduling multiple cycles separated by several minutes to an hour on an irrigation
day will accomplish this without creating runoff and water waste.
Q. How can I tell how deeply the soil is wet after an irrigation?
A. Take a long screwdriver, similarly shaped tool, or a special soil probe and probe the
soil in several spots an hour or so after an irrigation. The depth that the screwdriver or
tool can be easily pushed into the soil is the depth that the water has penetrated. If deeper
wetting is needed to wet plant roots, then additional irrigation cycles are needed. It the
soil is wet beyond plant roots, then irrigation runtime should be reduced. Checking the
soil moisture each day with this technique and watching the plants for signs of wilt or
water stress will enable you to see how long it takes for soil to dry to the point where water
must be replaced. This is the maximum interval between irrigations for the current season.
Ideally, irrigation is applied just prior to the onset of plant stress, so irrigation
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