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CC 2017-04-25_11a Rescinding Stage 1 Water Shortage Emerg MEMORANDUM TO: CITY COUNCIL FROM: BOB MCFALL, INTERIM CITY MANAGER BY: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR GEOFF ENGLISH, PUBLIC WORKS DIRECTOR DEBBIE MALICOAT, ADMINISTRATIVE SERVICES DIRECTOR SUBJECT: CONSIDERATION OF ADOPTION OF A RESOLUTION RESCINDING THE DECLARATION OF A STAGE 1 WATER SHORTAGE EMERGENCY DATE: APRIL 25, 2017 RECOMMENDATION: It is recommended the City Council adopt a Resolution rescinding the declaration of the Stage 1 Water Shortage Emergency and related water conservation measures and restrictions. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Approving the recommendation will probably result in additional water consumption, which will result in increased revenues in the Water and Sewer Funds. It is difficult to determine how much additional revenue will be realized in the current fiscal year, however it is estimated to be $40,000 to $70,000 for the Water Fund and $5,000 to $6,000 in the Sewer Fund, based on a 2% to 4% increase for the remaining months of the fiscal year. BACKGROUND: The Arroyo Grande City Council has long been proactive on water conservation efforts and long-term water supply sustainability strategies, starting in 2010 when permanent water use restrictions were adopted. On February 24, 2015, the City Council adopted Ordinance No. 669, adding Chapter 13.07 to the Arroyo Grande Municipal Code, establishing an emergency Water Shortage Contingency Plan to be in place in case mandatory water use restrictions become necessary to meet water demand and to address any potential negative impacts on the City’s water supply. The Ordinance included two methodologies based upon two stages of water shortage emergency: Item 11.a. - Page 1 CITY COUNCIL CONSIDERATION OF ADOPTION OF A RESOLUTION RESCINDING STAGE 1 EMERGENCY WATER USE RESTRICTIONS APRIL 25, 2017 PAGE 2 Stage 1 Water Shortage Emergency A Stage 1 Water Shortage Emergency shall be declared when there have been impacts to the City’s water supply and/or it has been determined that it is imminent that the water supply will be less than projected demand. All customers will then be required to reduce water usage by a percentage compared to the same billing period the prior year, which will be established by Resolution. Stage 2 Water Shortage Emergency A Stage 2 Water Shortage Emergency shall be declared when it has been determined that it is imminent that the water supply is or will be equal to or less than amounts determined necessary to meet basic minimum household health and safety requirements. Therefore, the purpose of Stage 2 requirements is to limit water usage to the minimum amount necessary for public health since the City will likely need to make arrangements for some type of emergency water supply deliveries. In April, 2015, due to ongoing drought conditions and the historically low Sierra snowpack measurement, the Governor signed Executive Order B-29-15, enacting statewide mandatory water conservation requirements. The Governor’s Executive Order included a requirement that the State Water Resources Control Board (SWRCB) impose restrictions to achieve a statewide 25% reduction in potable urban water usage through February 28, 2016. The required reduction was based upon a comparison to the amount of water used in 2013. The final regulations adopted by the SWRCB on May 5, 2015, imposed a 28% water use reduction on the City of Arroyo Grande. On May 26, 2015 the City Council adopted a Resolution implementing Emergency Water Shortage Restrictions and Regulations in accordance with California Water Code Section 350 and Arroyo Grande Municipal Code Section 13.07.030. This action included the Declaration of a Stage 1 Water Shortage Emergency which included the implementation of a baseline water amount for each Arroyo Grande water customer determined by historical use of water during the same billing period of the previous year, and identified required reductions ranging from 0% to 30%. Commercial customers with irrigation meter accounts had to reduce water use by 25%. Enforcement provisions were established with increasingly significant financial penalties for non-compliance. On April 7, 2017 Governor Brown issued Executive Order B-40-17, which lifted the drought emergency in all California counties except Fresno, Kings, Tulare and Tuolumne, and rescinded two emergency proclamations from January and April 2014 and four drought-related executive orders issued in 2014 and 2015. ANALYSIS OF ISSUES: The declaration of a water shortage emergency relies on a number of factors, but essentially comes down to an analysis that water supply will be less than water Item 11.a. - Page 2 CITY COUNCIL CONSIDERATION OF ADOPTION OF A RESOLUTION RESCINDING STAGE 1 EMERGENCY WATER USE RESTRICTIONS APRIL 25, 2017 PAGE 3 demand. Logically, rescinding of the water shortage emergency then depends on an analysis that water supply will be sufficient to meet water demand. TWO YEAR WATER SUPPLY AND DEMAND LOOK-AHEAD As shown on the chart below, the City has total water entitlements of 3,813 acre feet per year (AFY) from all water sources. In 2016, only 1,948 acre feet of water were used. Based on assumptions of increased use if the current water restrictions are lifted, it is projected that water use will increase to 2,200 and 2,500 in the following two years. Current and Projected Water Supply – Acre Feet per Year (AFY) Water Supply Source Entitlement 2016 Actual Use 2017 Projected Use 2018 Projected Use Groundwater – Santa Maria Groundwater Basin 1,323 165 120 110 Groundwater – Pismo Formation 200 79 80 100 County of San Luis Obispo Lopez Reservoir Project 2,290 1,704 2,000 2,290 TOTAL 3,813 1,948 2,200 2,500 In determining whether current supply will meet the projected demand of 2,200 and 2,500 acre feet, staff looked at the amount of water in Lopez Reservoir as well as the groundwater supply and consulted with the City’s water partners on the likelihood of receiving full water entitlements from all sources. As of April 14, 2017 Lopez Lake is at 61% of storage with 30,267 acre feet of water. The lake has received 35 inches of rainfall at the dam since July 1, 2016. This tremendous winter rainfall raised the lake level from 22% to 61%. The Zone 3 Monthly Operation report is attached (Attachment 1) along with most recent Lopez Reservoir Storage Projection chart. (Attachment 2) Based on this, the County has indicated it will be delivering the City’s full entitlement for the next two years. The sentry well key level index, which provides information on the amount of groundwater in the groundwater basin, was 10.75’ on April 12, 2017. This is 2.5’ higher than last year at this time. Based on this groundwater level data, the City can expect to be able to pump its full entitlement of groundwater. Item 11.a. - Page 3 CITY COUNCIL CONSIDERATION OF ADOPTION OF A RESOLUTION RESCINDING STAGE 1 EMERGENCY WATER USE RESTRICTIONS APRIL 25, 2017 PAGE 4 In conclusion, the City’s water supply is no longer restricted and full entitlements are available for the next two years. Based on this analysis, it is no longer necessary for the City to operate under a Stage 1 Water Shortage Emergency. The Governor’s Executive Order (EO) [B-40-17] removes the drought emergency (emergency conservation standard/supply stress test) for much of the state, but still requires various water waste prohibitions (hosing off sidewalks, etc.) and reporting to be maintained. This EO coincides with the release of the report titled Making Water Conservation a California Way of Life: Implementing Executive Order B-37-16, which proposes legislation to implement elements of the Report that are intended to establish long-term water conservation measures and improved planning for more frequent and severe droughts. Applicable highlights of proposed new requirements include: - Reporting and Water Waste Prohibitions- Continued monthly reporting to the Water Board and prohibitions on wasteful water practices as a bridge to permanent requirements to be developed through 2017. - New Water Use Targets (supersedes SB7’s 20x2020 reduction targets)- Development of new methodology for water use targets based on indoor and outdoor water use as well as performance measures for commercial, industrial, and institutional use. Interim targets becoming applicable in 2018, final standards by 2021 and compliance by 2025. Will require use of DWR’s urban landscaped area dataset (under development) to calculate outdoor water use standards specific to each supplier. - Minimizing Water Loss- AWWA Water Audits are required to be completed by October 1, 2017 and annually thereafter. Audits will be validated for performance standards set by the Water Board by July 1, 2020. DWR will provide technical assistance and financial assistance through the Drinking Water State Revolving Fund. The CPUC adopted Resolution W‐5119 ordering large, investor‐owned water utilities to minimize leaks. The CPUC may grant financial incentives for minimizing leaks during the review of each utility’s upcoming General Rate Case application. - Water Shortage Contingency Planning- Under the proposed legislation, Water Shortage Contingency Plans will be required to be submitted according to new standards, 5-year Drought Risk Assessments developed every five years, and water budget forecasts to be conducted and submitted annually. The Water Board would establish appropriate compliance and reporting criteria, and provide assistance to urban suppliers for meeting the requirements. The City of Arroyo Grande has had a long history of making water conservation a way of life. The City adopted mandatory conservation measures years before the recent drought situation. Even so, the City’s residents and businesses responded to the drought by reducing consumption by 37% compared to the 28% requirement. Clearly, Item 11.a. - Page 4 CITY COUNCIL CONSIDERATION OF ADOPTION OF A RESOLUTION RESCINDING STAGE 1 EMERGENCY WATER USE RESTRICTIONS APRIL 25, 2017 PAGE 5 conservation is engrained in the fabric of the Arroyo Grande community. The recommended action would not impact the City’s adopted ongoing mandatory conservation measures; City staff would continue to enforce them. Ongoing Mandatory Conservation Measures The existing permanent and mandatory conservation restrictions for Arroyo Grande residents include the following:  Use of water which results in excessive gutter runoff is prohibited.  No water shall be used for cleaning driveways, patios, parking lots, sidewalks, streets or other such use except where necessary to protect the public health and safety.  Outdoor water use for washing vehicles is allowed only with hand-controlled watering devices.  Outdoor irrigation is prohibited between the hours of 10:00 a.m. and 4:00 p.m.  Irrigation of private and public landscaping, turf areas and gardens is permitted at even-numbered addresses on Mondays and Thursdays and at odd-numbered addresses only on Tuesdays and Fridays.  No irrigation of private and public landscaping, turf areas and gardens is permitted on Wednesdays.  Irrigation is permitted at all addresses on Saturdays and Sundays.  Emptying and refilling swimming pools and commercial spas are prohibited except to prevent structural damage and/or to provide for the public health and safety.  Use of potable water for soil compaction or dust control purposes in construction activities is prohibited. In addition, the City Council recently amended the permanent and mandatory conservation restrictions to require water to be served in restaurants only upon request and hotels are required to display signs in rooms instructing visitors to place towels on the floor only if they need to be replaced. Options and Alternatives OPTION #1 – Rescind the Stage 1 Water Shortage Emergency and rely on the City’s permanent mandatory water use restrictions to meet the new requirements. (Recommended) Given improved local water supply conditions, including the fact that the Lopez Reservoir level has increased above the 30,000 AF storage level (60%), and improved groundwater levels, as well as Governor’s action ending the statewide drought emergency, the conditions are met for the City Council to rescind the City’s Stage 1 Water Shortage Emergency. Adopting the attached Resolution would eliminate the establishment of the baselines which were assigned to each residential customer based on their billing tier and corresponding required reduction percentages. The proposed Item 11.a. - Page 5 CITY COUNCIL CONSIDERATION OF ADOPTION OF A RESOLUTION RESCINDING STAGE 1 EMERGENCY WATER USE RESTRICTIONS APRIL 25, 2017 PAGE 6 action would also discontinue the requirement for Commercial customers with irrigation meter accounts to reduce water use by 25% from the amount of usage of the assigned baseline water amount. Lastly, the financial penalties established within the Stage 1 Water Shortage Emergency would be rendered unnecessary. OPTION #2 – Adopt Additional Permanent Restrictions for Outdoor Watering (not recommended) There are other tools that may be implemented in addition to or independent of the proposed Stage 1 Water Shortage Emergency declaration that would achieve additional water conservation and the Governor’s goal of making water conservation a way of life. One potential tool is to amend the Arroyo Grande Municipal Code to restrict outdoor watering to two days per week. Currently, the City restricts watering as outlined above in the City’s ongoing mandatory water conservation measures. Outdoor watering is not allowed on Wednesdays. Additional restrictions would include limiting watering to two days a week only; for example, Tuesdays and Saturdays for one-half of the City and Wednesdays and Sundays to the other half. Some jurisdictions have implemented this measure, including the city of Paso Robles, and it would be consistent with, but not a required component of the Governor’s recommendations. This measure would likely result in reduced demand in terms of reducing irrigation especially during summer months. However, a review of reductions achieved from “no-water Wednesdays” indicate only a small percentage of water is regularly saved, likely due to additional watering on other days, and further restricting days may not gain the amount of savings desired. Additionally, the two-day watering measure would further impede flexibility in terms of the wide diversity in landscape and customer needs. Additional staffing would also need to be expended on enforcement. Finally, this option would not allow customers to choose their own methods of water reduction. Consequences The recommended action may result in an increase in water use, causing overall water demand to increase. Although many Arroyo Grande water customers have implemented permanent water conservation habits, there will most likely be an increased water demand if the conservation requirements and associated penalties are no longer in place. Below is a chart depicting the reduction in per capita water use during the recent drought and corresponding emergency water use restrictions. PER CAPITA WATER USE CHART Average per capita consumption of water per year in Arroyo Grande: YEAR 2000 2013 2014 2015 2016 2020 Goal Gallons 193 160 141 113 99 149 Item 11.a. - Page 6 CITY COUNCIL CONSIDERATION OF ADOPTION OF A RESOLUTION RESCINDING STAGE 1 EMERGENCY WATER USE RESTRICTIONS APRIL 25, 2017 PAGE 7 It is difficult to speculate how the per capita use will increase, but it would be unacceptable to the long-term sustainability of the City’s water supply for water use to return to per capita amounts from the early 2000’s. Following is a chart showing the average per capita water use from 1996 to present. Staff will continue to monitor per capita use, along with other measures available to estimate water use, and will return to the City Council with recommendations for water conservation efforts should it become necessary. Actions could include augmenting or revamping public education efforts or other ways of reminding the community about the need for ongoing conservation. Another outcome of rescinding the Stage 1 Water Shortage Emergency results in positive impacts to City staff resources. Significant staffing efforts in the Public Works and Administrative Services departments have been expended in implementing and enforcing the Stage 1 actions. Rescinding the Stage 1 Water Shortage Emergency will allow staff to return to other activities that have been suspended or reprioritized during the Stage 1 emergency. However, it should be noted that the experience of implementing and enforcing this water emergency provided valuable processes and procedures that can be put in place again, should the need arise. ALTERNATIVES: The following alternatives are presented for consideration: 1. Adopt the proposed Resolution and rescind the Stage 1 Water Shortage Emergency; 2. Modify and adopt the Resolution; 3. Do not adopt the Resolution and continue with the actions of the Stage 1 Water Shortage Emergency; or 4. Provide staff other direction. Item 11.a. - Page 7 CITY COUNCIL CONSIDERATION OF ADOPTION OF A RESOLUTION RESCINDING STAGE 1 EMERGENCY WATER USE RESTRICTIONS APRIL 25, 2017 PAGE 8 ADVANTAGES: The proposed Resolution rescinds mandatory water conservation allocations and financial penalties for non-compliance. It returns the City to a state of ongoing water conservation restrictions aimed at making water conservation a way of life. The discontinuation of the Stage 1 Water Shortage Emergency will also result in a workload reduction for City staff as a substantial amount of staff time has been devoted to the management and enforcement of water customer baselines. DISADVANTAGES: Water consumption is likely to increase above the amounts used during the past two years, thus depleting water supplies. Efforts will need to be put in place to monitor water wasting activities or community-wide excess use in the long term. ENVIRONMENTAL REVIEW: There is no environmental review required for this action. 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. The Zone 3 Monthly Operation report 2. Lopez Reservoir Storage Projection chart Item 11.a. - Page 8 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE RESCINDING THE DECLARATION OF A STAGE 1 WATER SHORTAGE EMERGENCY AND RELATED WATER CONSERVATION MEASURES AND RESTRICTIONS WHEREAS, on February 24, 2015 the City Council of the City of Arroyo Grande adopted Ordinance 669, adding Chapter 13.07 to the Arroyo Grande Municipal Code relating to Emergency Water Shortage Restrictions and Regulations; and WHEREAS, on May 26, 2015, after holding a noticed public hearing in accordance with the requirements of Water Code Section 350, et seq and the Arroyo Grande Municipal Code, the City Council adopted Resolution 4659 declaring a Stage 1 Water Shortage Emergency, implementing reductions in water usage based upon Historical Use, and imposing mandatory penalties for failing to meet water use requirements; and WHEREAS, the Stage 1 Water Shortage Emergency was based upon historic drought conditions, which negatively impacted the City’s limited water supply which consists of two primary sources: Lake Lopez and groundwater; 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 2017 winter weather pattern in Arroyo Grande included persistent atmospheric rivers that resulted in significant rainfall and runoff, which has brought the water level at Lake Lopez above 30,000 acre feet and replenished the groundwater basins; and WHEREAS, on April 7, 2017 Governor Brown issued Executive Order B-40-17, which lifted the drought emergency in all California counties except Fresno, Kings, Tulare and Tuolumne, and rescinded two emergency proclamations from January and April 2014 and four drought-related executive orders issued in 2014 and 2015. 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. Item 11.a. - Page 9 RESOLUTION NO. PAGE 2 SECTION 2. Based upon the existing water conditions, as described above, the City Council hereby rescinds the previously declared Stage 1 Water Shortage Emergency. SECTION 3. 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. 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 April, 2017. Item 11.a. - Page 10 RESOLUTION NO. PAGE 3 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 11.a. - Page 11 Item 11.a. - Page 12 ATTACHMENT 2 Item 11.a. - Page 13 THIS PAGE INTENTIONALLY LEFT BLANK Item 11.a. - Page 14