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CC 2015-10-27_11a PP Alternatives to Drought ConditionsItem 11.a. Consideration of ALTERNATIVES TO ADDRESS DROUGHT CONDITIONS City Council Meeting October 27, 2015 1 Background August 12, 2008 City Council declared a “severely restricted water supply condition.” Mandatory conservation measures were enacted. These measures were later made permanent in 2010. City’s water conservation program and tiered rate structure were expanded. In 2009, low groundwater levels and high chloride concentrations from water quality tests of one of the sentry wells located along the coast gave indications of incipit seawater intrusion. Interim Urgency Ordinance adopted establishing a development moratorium that expired in 2010. The State of California also enacted the Water Conservation Act in 2009, which required a reduction of 20% in per capita water use by the year 2020. On January 17, 2014, Governor Brown issued a proclamation declaring a Drought State of Emergency for the State of California 2 Background, cont. Also in 2014 - Council approved comprehensive strategies, objectives included: address long-term projected water demand through increased water conservation measures, to protect existing water supply by recycled water to prevent seawater intrusion, and to coordinate with neighboring jurisdictions to manage the overall water supply in the most effective manner possible. February 24, 2015, ordinance adopted for additional water conservation measures and emergency shortage restrictions and regulations dependent on the City’s water supply condition. On May 26, 2015, the Resolution adopted declaring a Stage 1 Water Shortage Emergency. 3 Water supply 1 Assumes 80 AFY of groundwater from Well No. 9, 80 AFY from Well No. 10, and 40 AFY from Well No. 11 will be available as a reliable source of supply from 2016 through 2030. 2 Final three years of a five year contract of 100 AFY with OCSD utilized in 2012, 2013 and 2014. 4 Snapshot In fiscal year 2014/2015, the City used 2,571 acre feet of water Represents 68% of current supply The City’s per capita consumption during this period was 134 gallons per day The City’s target identified in the 2011 Urban Water Management Plan is 149 gallons per day and thus the City is 15 gallons below the 2020 goal.  The City’s build out demand is projected to be 78% of supply as outlined in the Urban Water Management Plan. Additionally, the City is meeting our 28% reduction goal from 2013 per the State and actually exceeding the State mandate.  Lopez lake levels are at 15,567 AF, which corresponds to 31.6% capacity. Zone 3 has put in place a 10% reduction. Groundwater monitoring has shown that while some wells are showing persistent low levels, there are no seawater indicators at this time. As a prudent measure, the City currently only pumps groundwater for well maintenance purposes. 5 Water supply condition The City currently utilizes approximately two-thirds of its water supply Long term projections for water demand and supply remain balanced based on build out projections. Any increase in land use intensity beyond what was envisioned in the City’s General Plan Land Use Element is required to identify additional water supply. Requirements for new development include water conservation fixtures and irrigation control and drought tolerant landscape that has been shown to decrease the typical demand in addition to paying water neutralization fees that are used for meeting continued supply needs. Additional State requirements for water neutral development scheduled to be considered by the City Council next month. City’s conservation program has proven successful to date – it is imperative that the community’s conservation efforts remain rigorous and ultimately evolve into the status quo as a means to balance water resources for a cyclical drought-certain future. Forty-six (46%) percent of the State of California is in a stage of exceptional drought. 6 Alternatives Stage 2 Water Shortage Emergency - if 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 requiring the City to import water to meet health and safety needs Building Restrictions – may be implemented in a variety of ways legislative findings of current and immediate threat to the public health, safety, or welfare, and that the approval of additional subdivisions, use permits, variances, building permits, or any other applicable entitlement for use which is required in order to comply with a zoning ordinance would result in that threat to public health, safety, or welfare. Additional particularly onerous findings would have to be made for a moratorium on projects that include multi-family housing 7 Alternatives, cont. Purpose - preserve the status quo by preventing changes to land uses while the City studied whether to adopt permanent changes Impacts – Housing and Economic Development Elements prioritize continued modest infill development to meet housing needs and achieve economic sustainability. risk to the City’s image as a reliable place to invest and do business. processing 15 planning applications that may impact water demand and 17 residential building permits that require a new or upgraded water meter - all accounted for in the City’s long-term build out projections 8 Sources of Revenue 9 Expenditures 10 Forecast: General Fund Revenues vs. Expenditures 11 Additional efforts underway Fee study - inform the Council of long-term costs to maintain and develop water supply tool to provide an avenue to collect funds to support water conservation programs and/or for new water resources provide investment opportunities for reliable water supply and the promotion of highly water efficient development Contract negotiations to update contract provisions for the Lopez pipeline are underway and include provisions for the use of stored water A Zone 3 Technical Advisory Committee extended drought preparedness subcommittee is examining extended drought emergency water supply options including water exchange project associated with the PG&E desalination plant Pismo Beach Recycled Water Project, and the scalping plant project with the South San Luis Obispo County Sanitation District (SSLOCSD). As opposed to short term moratorium impacts 12 Recommendation Receive and file and direct staff to return in March to consider water supply conditions 13