CC 2016-11-22_10b Amend Stage I Water Restrictions
MEMORANDUM
TO: CITY COUNCIL
FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
GEOFF ENGLISH, PUBLIC WORKS DIRECTOR
DAVID HIRSCH, ASSISTANT CITY ATTORNEY
SUBJECT: CONSIDERATION OF A RESOLUTION TO AMEND THE STAGE 1
WATER SHORTAGE EMERGENCY PROVISIONS TO IMPLEMENT
ADDITIONAL RESTRICTIONS INCLUDING THE PROHIBITION OF NEW
WATER CONNECTIONS WHEN SPECIFIED WATER CONDITIONS ARE
DETERMINED TO EXIST
DATE: NOVEMBER 22, 2016
RECOMMENDATION:
It is recommended the City Council adopt a Resolution 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”) in
order to protect the health, safety and welfare of the citizens of the City.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no anticipated financial impact related to adoption of the proposed Resolution;
however, there will be financial impacts to the Water and Sewer Funds if additional
water use restrictions are implemented. The exact amount of these impacts will depend
upon the timing and duration of the required reductions, as well as customer compliance
with the requirements. There may also be an indirect economic impact should specified
conditions exist that precipitate a prohibition on new water connections.
BACKGROUND:
The City of Arroyo Grande continues to experience historic drought conditions. The
drought conditions have negatively impacted the City’s water supply and have
necessitated State-wide water conservation requirements. The City Council has
responded to the drought conditions and water supply reductions by implementing the
City’s Water Shortage Contingency Plan as outlined in the City’s Urban Water
Management Plan.
On February 24, 2015, the City Council adopted Ordinance No. 669 establishing an
emergency Water Shortage Contingency Plan by adding Chapter 13.07 to the Arroyo
Grande Municipal Code (“AGMC”) providing for Emergency Water Shortage Restrictions
and Regulations, to be put in place in case mandatory water use restrictions became
necessary to meet water demand and to address any potential negative impacts on the
Item 10.b. - Page 1
CITY COUNCIL
CONSIDERATION TO AMEND THE STAGE I WATER SHORTAGE EMERGENCY
PROVISIONS TO IMPLEMENT ADDITIONAL RESTRICTIONS WHEN SPECIFIED
WATER CONDITIONS ARE DETERMINED TO EXIST
NOVEMBER 22, 2016
PAGE 2
City’s water supply. The Ordinance included two methodologies based upon two stages
of water shortage emergency:
Stage 1 Water Shortage Emergency
A Stage 1 Water Shortage Emergency shall be declared when there have been impacts
to the City’s water supply and/or it has been determined that it is imminent that the water
supply will be less than projected demand. All customers will then be required to reduce
water usage by a percentage compared to the same billing period in a specified prior
year, which will be established by Resolution. The amount of mandatory water use
reduction established by the Resolution may be increased or decreased by adopting
another Resolution as supply and demand conditions change.
Stage 2 Water Shortage Emergencies
A Stage 2 Water Shortage Emergency shall be declared when it has been determined
that it is imminent that the water supply is or will be equal to or less than amounts
determined necessary to meet basic minimum household health and safety
requirements. Therefore, the purpose of Stage 2 requirements is to limit water usage to
the minimum amount necessary for public health since the City will likely need to make
arrangements for some type of emergency water supply deliveries.
Recent City Council Actions
On May 26, 2015, pursuant to the provisions in AGMC Section 13.07.030 and after
holding a noticed public hearing in accordance with the requirements of Water Code
Section 350, the City Council adopted Resolution 4659 declaring a Stage 1 Water
Shortage Emergency and implementing reductions in water usage based upon historical
use. The Stage 1 Water Shortage Emergency as established by Resolution of the City
Council has been implemented, is being enforced and is summarized in the attached
notice to residents (Attachment 1). The actions by the City Council were enacted due to
local water supply concerns and due to State of California mandated water conservation
requirements for water purveyors.
On August 23, 2016, the City Council directed staff to place on a future City Council
agenda, the consideration of refined water supply condition “triggers” that will prompt
implementation of the next steps for further reductions to the use of the City’s water
supply. Council subsequently requested additional conservation measures to be
included.
On October 11, 2016, the City Council directed staff to prepare a Resolution that would
modify Stage 1 (Resolution 4659) to include triggers for additional water use
restrictions. The Council also directed staff to include in the revisions to Stage 1 a
modification to Section B of Exhibit A (Resolution 4659) requiring commercial customers
with irrigation meter accounts to further reduce from 25% to 50%. Lastly, the Council
Item 10.b. - Page 2
CITY COUNCIL
CONSIDERATION TO AMEND THE STAGE I WATER SHORTAGE EMERGENCY
PROVISIONS TO IMPLEMENT ADDITIONAL RESTRICTIONS WHEN SPECIFIED
WATER CONDITIONS ARE DETERMINED TO EXIST
NOVEMBER 22, 2016
PAGE 3
approved moving forward with a water offset program to be effective during a prohibition
on new service connections.
On October 25, 2016, the City Council adopted Resolution No. 4764 revising the Stage
1 water emergency restrictions to increase mandatory conservation for dedicated
irrigation meters from 25% to 50%.
ANALYSIS OF ISSUES:
The City’s long term water supply continues to be of concern as the drought endures
and seasonal rainfall has not been sufficient to date to restore the two primary water
sources, Lopez Reservoir (Lopez) and groundwater, to pre-drought levels. Staff has
previously calculated that based on the current condition of its water sources, the City
has adequate water supply to meet the anticipated demand through April 1, 2018. The
City Council has directed that this two-year water supply and demand look-ahead be
reviewed twice annually. The next projected revision is scheduled for late Spring 2017,
following the annual winter storms.
Current and Projected Water Supply – Acre Feet per Water Year (AFY)
Water Supply Sources Entitlement
2015/16
Actual
Use
2016/17
Projected
Use
2017/18
Projected
Use
Groundwater – Santa Maria
Groundwater Basin 1,323 43 150 220
Groundwater- Pismo Formation 200 44 120 150
County of San Luis Obispo
Lopez Reservoir Project 2,290 2,152 1,830* 1,830*
TOTAL 3,813 2,239 2,100 2,200
*- Based on 20% reduction to municipal deliveries
In an effort to conserve future water supplies, the City Council has adopted mandatory
water conservation through the declaration of a Stage 1 Water Shortage Emergency.
Stage 1 Water Shortage restrictions which are currently in effect are the following:
Tiered water use restrictions for residential customers between 0% to 30%.
Mandatory 50% water use reduction for commercial customers with dedicated
irrigation meters.
Water Supply Condition Triggers
On October 11, 2016, the City Council voted to modify the current Stage 1 Water
Shortage Emergency Resolution, so that any one of the following events would trigger
additional water use restrictions (Stage 1B):
Item 10.b. - Page 3
CITY COUNCIL
CONSIDERATION TO AMEND THE STAGE I WATER SHORTAGE EMERGENCY
PROVISIONS TO IMPLEMENT ADDITIONAL RESTRICTIONS WHEN SPECIFIED
WATER CONDITIONS ARE DETERMINED TO EXIST
NOVEMBER 22, 2016
PAGE 4
1) Interruption to local water deliveries, water delivery system or State mandated
reductions.
2) Lopez Reservoir level at or below 10,000 AF.
3) Six quarterly continuous monitoring events of Sentry well water level readings in
the Santa Maria Groundwater Basin below the deep well index trigger level of 7.5
feet in conjunction with Lopez supply reduction of 20% or indications of sea water
intrusion are detected. (Note: this is based on the opinion of the Northern Cities
Management Area Hydrogeological consulting firm, GSI, relative to the potential
impacts with sustained low groundwater levels.)
The Council also voted to include provisions for triggers to exit Stage 1B when the
Lopez Reservoir reaches 15,000 AF or the City Council makes a finding that the
additional water use restrictions are no longer needed to preserve the City’s continued
water supply.
Additional Restrictions
When any or all of the adopted trigger conditions exist, then the following additional
water use restrictions would be implemented:
1. Building restrictions - prohibition on new water service connections for any
project that doesn’t have a building permit at the time the prohibition is
implemented.
2. Prohibition on private vehicle washing.
3. Further reduce overall irrigation of City-owned non-sports field turf areas to
25% of the 2015 use.
4. Increase the mandatory water use reductions for residential water customers
by 5% for each of the three water rate tiers.
Regarding building restrictions, as proposed, all projects may be continued to be
processed, however, building permits would not be issued for projects that include a
new water service connection on a vacant lot. In addition, as proposed, all projects that
already have a water connection would be allowed to change use or remodel, including
an upgrade to an existing meter. Attachment 2 includes a list of current projects in
process that include new water connections for reference.
Consistency with the UWMP
The above stated triggers and additional restrictions are reflected in the proposed
Resolution. It is important to note, that upon a recent review of the City’s Urban Water
Management Plan (UWMP), the State of California Department of Water Resources
(DWR) determined that the City’s Water Shortage Contingency Plan (WSCP) within the
UWMP does not meet their interpretation of the State criteria for UWMP’s. Specifically,
the DWR has determined that the Plan does not provide an outline of the specific water
supply conditions that are applicable to each stage of the WSCP. This requirement
Item 10.b. - Page 4
CITY COUNCIL
CONSIDERATION TO AMEND THE STAGE I WATER SHORTAGE EMERGENCY
PROVISIONS TO IMPLEMENT ADDITIONAL RESTRICTIONS WHEN SPECIFIED
WATER CONDITIONS ARE DETERMINED TO EXIST
NOVEMBER 22, 2016
PAGE 5
coincides with the concept of having triggers. The DWR also is requiring that the stages
of actions (i.e. triggers) and demand reduction measure be presented in more than two
(2) stages as established in the current WSCP. As a result, modifications to the WSCP
are being prepared based on three (3) stages as outlined in Attachment 3. The
modified WSCP will be incorporated into an updated UWMP that will be presented to
the City Council for review and adoption in January, 2017.
Vesting Maps
At the City Council meeting on October 11, 2016, it was indicated that the prohibition on
new water connections on vacant lots would apply to subdivisions without a vesting
tentative map or to projects that do not have a building permit issued once the Stage IB
water supply conditions are triggered. Subsequent research by the City Attorney’s
Office, however, concluded that the restriction could apply to vesting maps. In this
respect, it should be noted that vesting map status does not automatically guarantee an
exemption for a moratorium under State law, and additional requirements can be
imposed based upon health and safety needs (reference Government Code Section
66498.1(c)(1)). Therefore, since the City Council had directed staff to prepare the most
restrictive approach with regard to building restrictions, as drafted in the proposed
Resolution, the new connection prohibition would apply to vesting maps as well as
development agreements. Language has been included in the Resolution to provide a
finding to address the health and safety requirement in Government Code Section
66498.1(c)(1).
From a policy standpoint, the City Council could still decide to exempt developments
with vesting maps and/or development agreements, given the expense and investment
involved in such projects, and the underlying policies relating to providing certain vested
rights when using vesting maps or negotiating development agreements.
Alternatives for Application of Building Restrictions
The City Council may choose to modify the proposed building restrictions or to approve
the restrictions as currently crafted.
Should the City Council wish to modify the time and method for application of the
building restrictions upon the triggering conditions, other than at the time of building
permit issuance, then the following options may be considered:
At the time of a certified Stage 1B water supply condition, a prohibition on new water
service connections would apply to all projects unless:
A building application has been accepted for plan check; or
A planning permit approval/entitlement has been issued; or
A planning application has been deemed complete for processing.
Item 10.b. - Page 5
CITY COUNCIL
CONSIDERATION TO AMEND THE STAGE I WATER SHORTAGE EMERGENCY
PROVISIONS TO IMPLEMENT ADDITIONAL RESTRICTIONS WHEN SPECIFIED
WATER CONDITIONS ARE DETERMINED TO EXIST
NOVEMBER 22, 2016
PAGE 6
Additionally, the prohibition could apply to an upgraded water connection for
redevelopments but only such that water demand will be less than or equal to the
existing water demand.
Water Offset Program
Additionally, the City Council approved moving forward with a water use offset program,
which would be effective during a prohibition on new water service connections that
would allow new connections to the water system.
As previously reported, there are several possibilities for offset programs that may be
customized to permanently save water by retrofitting existing facilities. It should be
emphasized that the City has for many years required in-lieu fees intended to generally
offset new water use at a 1:1 ratio. This program has been demonstrated over time to
be effective in demand reduction concurrent with new development through
implementation of the City’s water conservation programs. Implementing a more robust
off-set policy will help ensure adequate savings are achieved to offset the demand of
new development during severe water shortage conditions. In addition to an adequate
offset ratio, it is important to ensure that on-site and off-site water efficiency measures
are permanent. In the event of a Stage 1B water supply condition, the intent would be
to ensure no impact to water supply through water neutral development. This may be in
the form of minimizing water demand through water saving on-site requirements; and
either through funding or direct undertaking, reducing demand offsite. An additional
option is to allow the purchase or transfer of a new permanent water supply. A review
of the evolution of offset programs suggests that successful programs provide several
options that allow for changing markets and conditions. In this regard, offsets would be
customized in an applicant’s proposal and required to be verified by the City in advance
of approval. It is recommended that the City use a third party consultant, funded by the
applicant, to verify the validity of the proposed program.
While from a legal standpoint, offsets are required to relate to the impacts of a project,
ratios of more than 1:1 are frequently utilized by agencies due to such factors as
demand variation and potential underestimation, water savings fixtures lose efficiency
with wear and tear over time, water savings devices may be removed by property
owners, and related factors. Accordingly, included in the proposed Resolution is an
exemption from the prohibition on new water service connections for projects that
achieve offsets of 1:1.5 through the payment of fees as currently required and 1) the
purchase of new permanent water supply through an approved contract, and/or 2) the
retrofit of allowed off-site conservation measures derived from the table below, the
installation of which is certified by the Public Works Department. Further, onsite
development must include all water applicable measures. Smaller projects, of less than
four residential units or less than 5,000 sq. feet of commercial space, may have the
Item 10.b. - Page 6
CITY COUNCIL
CONSIDERATION TO AMEND THE STAGE I WATER SHORTAGE EMERGENCY
PROVISIONS TO IMPLEMENT ADDITIONAL RESTRICTIONS WHEN SPECIFIED
WATER CONDITIONS ARE DETERMINED TO EXIST
NOVEMBER 22, 2016
PAGE 7
option of achieving the required ratio by paying fees; however, implementation of this
option will require further action by the City Council to properly establish such a fee.
Eligible conservation retrofits are included in Attachment 4 and summarized below:
Air-cooled ice machines
Soil moisture sensors
Water efficient commercial washing machines
Greywater systems
Rain barrel system installations
Water efficient commercial dishwashers
Turf replacement
With regard to the purchase of a new water supply, such a proposal would require a
contract approved by the City Council. It is unlikely that such an option would be
exercised; however, there may be future opportunities through water exchanges.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt the Resolution amending Exhibit A of Resolution 4659 relating to triggering
conditions that will implement additional restrictions during the declared State 1
Water Shortage Emergency (Stage “1B”);
2. Direct staff to modify the triggers and or additional water use restrictions;
3. Provide other direction to staff.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
A public hearing notice was published in The Tribune on November 16, 2016. The
Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. Notice to Residents
2. Applications currently in the permit queue
3. Water Shortage Contingency Plan- Demand Reduction and Trigger table
4. Eligible conservation/offset options for City water offset program
Item 10.b. - Page 7
RESOLUTION NO.
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
Item 10.b. - Page 8
RESOLUTION NO.
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
Item 10.b. - Page 9
RESOLUTION NO.
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 Council Member , seconded by Council Member ,
and by the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this _____ day of November,
2016.
Item 10.b. - Page 10
RESOLUTION NO.
PAGE 4
_____________________________________
JIM HILL, MAYOR
ATTEST:
______________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
_______________________________________
ROBERT MCFALL, INTERIM CITY MANAGER
APPROVED AS TO FORM:
______________________________________
HEATHER K. WHITHAM, CITY ATTORNEY
Item 10.b. - Page 11
EXHIBIT “A”
CITY OF ARROYO GRANDE RESOLUTION ______
RESOLUTION _______ AMENDING EXHIBIT A OF RESOLUTION 4659, WHICH
DECLARED A STAGE 1 WATER SHORTAGE EMERGENCY, RELATING
TOADDITIONAL 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.
Item 10.b. - Page 12
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
Item 10.b. - Page 13
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, in conjunction with Lopez supply reductions of 20%, 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:
Item 10.b. - Page 14
a. Washing of private vehicles shall be prohibited except at commercial car wash
facilities.
b. Irrigation of City-owned non-sports field turf areas shall be reduced to 25% of
the water used for such irrigation in 2015.
c. 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.
d. There shall be no new or additional water connections for any project that
does not have a building permit at the time of the Certification that a Triggering
Condition exists. Notwithstanding this restriction, development projects may
continue to be processed, however, no new building permits shall be issued.
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.
Smaller projects, of less than four residential units or less than 5,000 sq. feet of
commercial space, may have the option of achieving the required ratio by paying fees,
which fees may be established by resolution of the City Council after following
applicable procedures for establishing such fees.
Eligible
Conservation
Measure
Estimated
Cost
Offset Potential References
Air-cooled Ice Machine $10,000 (10
units)
Approximately 100
gallons per 100 pounds of
ice
http://www.ocwatersmart.com/ice
Soil Moisture Sensor $1,750 (50 units) Up to 20% of current
irrigation demand
http://socalwatersmart.com/com
mercial/?page_id=4865
Water Efficient
Commercial Washing
Machine
$6,000 (30 units) 15,000 - 30,000 gallons
per year per unit
depending on use
25-40% average annual
savings
http://www.ebmud.com/water-
and-drought/conservation-and-
rebates/commercial/rebates/com
mercial-clothes-washer-rebates/
Item 10.b. - Page 15
Eligible
Conservation
Measure
Estimated
Cost
Offset Potential References
Greywater
Can be used for:
1. Laundry
(no building permit
required)
2. Shower (building
permit required)
3. Bathroom Sink
(building permit
required)
$4,500 (30
connections)
Savings potential of
approximately 17 gallons
per person per day.
Average of 14,500
gallons saved per
household per year
http://www.valleywater.org/Gray
waterRebate.aspx
http://www.soquelcreekwater.org
/conserving-
water/rebates/graywater-
landscape
http://greywateraction.org/wp-
content/uploads/2014/12/GW_St
udy_revised-2013.pdf
Rain Barrel $5,000 (100
units)
623 gallons per inch of
rain per 1,000 sqft of roof.
Harvested Water (Gal) =
Catchment Area (sqft) X
Rainfall Depth (inch) X
Conversion Factor
(0.623)
http://www.socalwatersmart.com/
qualifyingproducts/rain-barrels/
Water Efficient
Commercial
Dishwasher
$10,000 (10
units)
60,000 - 100,000 gallons
per year per unit
depending on use
25% average annual
savings
http://www.montereywaterinfo.or
g/NonResidential.html
http://www.allianceforwaterefficie
ncy.org/commercial_dishwash_i
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 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.
Item 10.b. - Page 16
CITY OF
ARROYO GRANDE
CALIFORNIA
Current resident
Arroyo Grande, CA 93420
Stage 1 Water Emergency: 2016 Update
Dear Valued Water Customer,
Thank you for your continued conservation of water as we face one of the worst droughts in recent history. At
the August 23, 2016, Arroyo Grande City Council meeting, the Council recognized that many customers have
achieved the goal of reducing their consumption. To show appreciation, the City Council approved a resetting of
all account history regarding warning and penalty events for each customer to zero (providing all customers a
fresh start) effective September 4, 2016. The drought is still a critical issue and continued conservation is very
important due to the low levels of water at Lake Lopez. The Stage 1 Water emergency and approved mandatory
water conservation measure is an ongoing effort that is in effect until the City Council ends this measure.
As a reminder, your maximum allowable usage in water units is shown below:
Account Number:
Future Billing Dates1
Baseline Historic Usage
from 2014 in Units2
Maximum Allowable
Usage in Water Units3
January 18 17
February - -
March 17 16
April - -
May 22 18
June - -
July 21 17
August - -
September 23 19
October - -
November 18 17
December - -
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.
2 - Units: one unit of consumption equals 100 cubic feet or 748 gallons of water.
3 - Based on historic 2014 usage. This is the customer’s maximum water usage without incurring a penalty.
Users are encouraged to use less than the maximum allowed.
Please retain this letter as an easy reference to review when you receive your future billings.
ATTACHMENT 1
Item 10.b. - Page 17
Do I Really Have to Reduce My Water Usage?
Yes. Tier 0 water customers are not required to reduce water usage, but reductions are encouraged. Tier 1
through 3 water users are required to reduce consumption to less than or equal to your maximum allowable
water usage. Water usage in excess of your maximum allowable water usage will result in a monetary penalty.
Compliance and working together to reduce water consumption is in everyone’s best interest.
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 2014 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.
What are the Overallotment Penalty Events?
The Arroyo Grande Municipal Code provides that the Stage 1 Water Shortage Emergency includes provisions for
the imposition of mandatory penalties. The following mandatory financial penalties will be levied on all water
users who fail to reduce consumption in the percentages required:
• First Overallotment penalty: Written notice of violation
• Second Overallotment penalty: $ 50
• Third Overallotment penalty: $ 100
• Subsequent $ 200
Customers who incur penalties may receive a $50.00 credit by attending a minimum two-hour session of Water
Conservation School. The option to have penalties waived by attending Water Conservation School is available
only one-time for any customer who has incurred penalties. To register for water school please visit
http://www.arroyogrande.org/562/Water-School-Registration.
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 or call the City’s Water Conservation Hotline at (805) 473-5487.
My Historic Water Usage Doesn’t Reflect My Water Needs. How Do I Change My Baseline?
For unusual circumstances, the Arroyo Grande Municipal Code Section contains procedures for adjustments of
the baseline. If you would like more information regarding the adjustment procedure, please call the Water
Conservation Hotline at (805) 473-5487 or visit the City’s website at www.arroyogrande.org/148/water-
conservation for further instructions.
Want to Learn More?
• Water Reduction Tips: www.thinkh20now.com
• Stage 1 Water Shortage Emergency: 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 0 0 – 9 0%
Tier 1 10 – 18 10%
Tier 2 19 – 36 20%
Tier 3 More than 36 30%
Item 10.b. - Page 18
ATTACHMENT 2 DEVELOPMENT QUEUE
***Yellow highlighting denotes vesting map or development agreement
BLD 16-000333 314 Short Street Single family residence with Plan Check
BLD 16-000467
1559 Elderberry
1529 Elderberry
SP 15-001
CUP 16-003
ACUP 15-001
PPR 15-013
VTTM 16-001
Planning Permits
Building Permits
Permit No.Address Description Status
VTTM 16-002/CUP 16-
TPM 16-001
CUP 16-005
TPM 14-001
Incomplete
Incomplete
Incomplete
Incomplete
In Process
In Process
In Process
In Process
189 Brisco Road
Corbett Canyon Road
227 S. Halcyon Road
Oak Park/James Way
159 Brisco Road
995 E. Grand Avenue
Paulding Circle
Rodeo/Grace Lane
4 multifmaily residential units
Warehouse Storage Building
2 mixed use buildings
382 S. Halcyon Road
330 S. Halcyon Road
1495 El Camino Real
383 Alder Street
E. Cherry Ave/Traffic
1177 Ash Street
11 lot single family subdivision
Office and 2 residential units
70 room assisted living and
7 lot single family subdivision
19 lot multifamily reidential
3 lot mixed-use subdivision
2 unit mixed-use development
4 lot single family subdivision
Cherry Ave. Specific Plan
4 lot multifmaily subdivision
Permit No.Address Description Status
ARCH 16-010
GPA 14-001
4 lot multifamily residential
54 room hotel
Lot 7 Architectural Review
Lot 4 Architectural Review
Lot 23 Architectural Review
Map Finaled
Map Finaled
Map Finaled
Map Finaled
Approved
Approved
Cherry Creek
325 E. Branch Street
1029 Ash Street
1029 Ash Street
Cherry Creek
ARCH 16-014
ARCH 16-012
850 Fair Oaks
306 Short Street
1516 Elderberry
1525 Elderberry
BLD 16-000468
BLD 16-000469
BLD 16-000470
BLD 16-000471
BLD 16-000472
BLD 16-000152
BLD 16-000522
BLD 16-000435
BLD 16-000466
1561 Elderberry
1555 Elderberry
1524 Elderberry
1551 Elderberry
BLD 16-000211 1517 Elderberry
Plan Check
Plan Check
Plan Check
Plan Check
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
45,000 sq. ft. medical office
Single family residence with
New single family residence
New single family residence
New single family residence Plan Check
New single family residence
Approved
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
La CanadaVTTM 01-001 Tract 1998 - 15 lot single family
In Process
Map Finaled
Map Finaled
Lot 1 Architectural Review
22 lot single family subdivision
1029 Ash Street
Heights at Vista Del
Lot 25 Architectural Review
Approved
Approved
Approved
Approved
ARCH 16-011
CUP 15-009
PPR 15-017
TPM 15-002/PUD 15-
CUP 15-007
ARCH 16-015
Item 10.b. - Page 19
***Yellow highligting denotes vesting map or development agreement
BLD 15-000074
BLD 15-000387
BLD 15-000370
BLD 15-000368
BLD 15-000371
BLD 15-000367
BLD 15-000375
BLD 15-000374
BLD 15-000376
BLD 15-000372
BLD 15-000369
BLD 14-000346
711 White Court
196 Ralph Beck Lane
180 Ralph Beck Lane
150 Ralph Beck Lane
136 Ralph Beck Lane
122 Ralph Beck Lane
104 Ralph Beck Lane
127 Ralph Beck Lane
111 Ralph Beck Lane
195 Ralph Beck Lane
168 Ralph Beck Lane
534 Callie Cuervo
Single family dwelling with
New Single family residence
New Single family residence
New Single family residence
New Single family residence
New Single family residence
New Single family residence
New Single family residence
New Single family residence
New Single family residence
New Single family residence
New single family residence
Issued; under construction
Issued; under construction
Issued; no inspections
Issued; no inspections
Plan Check
Issued; under construction
Issued; under construction
Issued; under construction
Issued; under construction
Issued; under construction
Issued; under construction
Issued; under construction
BLD 16-000319 300 Via Las Aguilas New single family residence Plan Check
BLD 16-000276
BLD 16-000201
BLD 15-000366
BLD 15-000073
312 Myrtle Drive
567 Crown Hill
145 Ralph Beck Lane
701 White Court
New single family residence
Single family dwelling with
New single family residence
Single family dwelling with
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
BLD 16-000501
BLD 16-000502
BLD 16-000503
1509 Elderberry
1506 Elderberry
1589 Elderberry
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
BLD 16-000496
BLD 16-000497
BLD 16-000499
BLD 16-000500
1590 Elderberry
1586 Elderberry
1568 Elderberry
1598 Elderberry
1572 Elderberry
1560 Elderberry
1558 Elderberry
1502 Elderberry
1511 Elderberry
BLD 16-000489
BLD 16-000490
BLD 16-000478
BLD 16-000479
BLD 16-000486
BLD 16-000487
BLD 16-000488
BLD 16-000491
BLD 16-000492
BLD 16-000493
BLD 16-000494
BLD 16-000495
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
BLD 16-000474
BLD 16-000475
BLD 16-000476
BLD 16-000477
BLD 16-000473
1515 Elderberry
1578 Elderberry
1530 Elderberry
1501 Elderberry
1593 Elderberry
1550 Elderberry
1563 Elderberry
1521 Elderberry
1543 Elderberry
1537 Elderberry
1510 Elderberry
1533 Elderberry
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
New single family residence
Plan Check
Plan Check
Plan Check
Plan Check
New single family residence Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
Plan Check
Item 10.b. - Page 20
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Page 1 of 1ATTACHMENT 3 Item 10.b. - Page 21
ATTACHMENT 4
Eligible Conservation Measure/Retrofit Options for City Water Off-set Program
Eligible
Conservation
Measure
Estimated
Cost
Offset Potential References
Air-cooled Ice Machine $10,000 (10
units)
Approximately 100
gallons per 100 pounds of
ice
http://www.ocwatersmart.com/ice
Soil Moisture Sensor $1,750 (50 units) Up to 20% of current
irrigation demand
http://socalwatersmart.com/com
mercial/?page_id=4865
Water Efficient
Commercial Washing
Machine
$6,000 (30 units) 15,000 - 30,000 gallons
per year per unit
depending on use
25-40% average annual
savings
http://www.ebmud.com/water-
and-drought/conservation-and-
rebates/commercial/rebates/com
mercial-clothes-washer-rebates/
Greywater
Can be used for:
1. Laundry
(no building permit
required)
2. Shower (building
permit required)
3. Bathroom Sink
(building permit
required)
$4,500 (30
connections)
Savings potential of
approximately 17 gallons
per person per day.
Average of 14,500
gallons saved per
household per year
http://www.valleywater.org/Gray
waterRebate.aspx
http://www.soquelcreekwater.org
/conserving-
water/rebates/graywater-
landscape
http://greywateraction.org/wp-
content/uploads/2014/12/GW_St
udy_revised-2013.pdf
Rain Barrel $5,000 (100
units)
623 gallons per inch of
rain per 1,000 sqft of roof.
Harvested Water (Gal) =
Catchment Area (sqft) X
Rainfall Depth (inch) X
Conversion Factor
(0.623)
http://www.socalwatersmart.com/
qualifyingproducts/rain-barrels/
Water Efficient
Commercial
Dishwasher
$10,000 (10
units)
60,000 - 100,000 gallons
per year per unit
depending on use
25% average annual
savings
http://www.montereywaterinfo.or
g/NonResidential.html
http://www.allianceforwaterefficie
ncy.org/commercial_dishwash_i
ntro.aspx
Turf Replacement $4.75 SF 18 gallons per year per
square foot of turf
removed
Item 10.b. - Page 22