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Agenda Packet 2001-08-16 SP CITY COUNCIL B-&f/ AGENDA ~17~ Michael A. Lady Mayor Tony M. Ferrara Mayor Pro Tern Steven Adams City Manager Thomas A. Runels Council Member Timothy J. Carmel City Attorney Jim Dickens Council Member Kelly Wetmore Director, Administrative Services Sandy Lubin Council Member NOTICE OF CONTINUED SPECIAL MEETING CITY COUNCIL AGENDA SUMMARY THURSDAY, AUGUST 16, 2001 6:30 P.M. Arroyo Grande City Council Chambers 215 East Branch Street, Arroyo Grande 1. CALL TO ORDER: 6:30 P.M. 2. ROLL CALL 3. FLAG SALUTE 4. CITIZENS" INPUT, COMMENTS, AND SUGGESTIONS on Special Meeting Agenda Items. Members of the public wishing to address the Council on any item described in this Notice may do so when recognized by the Presiding Officer. 5. CONSIDERATION OF THE 2001 GENERAL PLAN UPDATE POLICY DOCUMENTS AND ELEMENTS AND FINAL ENVIRONMENTAL IMPACT REPORT (FEIR) The City Council will continue the Public Hearing from July 31, 2001 to reyiew comments, responses, and consider the FEIR and adoption of the General Plan Update and related maps. 6. ADJOURNMENT to a Special City Council Meeting of Tuesday, August 23, 2001 at 6:30 p.m. in the Council Chambers, 215 East Branch Street. www.arrovoQrande.org --.-- .j-- MEMORANDUM TO: CITY COUNCIL FROM: KERRY MCCANTS, COMMUNITY DEVELOPMENT DIRECTOR AND ROB STRONG, 2001 GENERAL PLAN UPDATE AND EIR CONSUL T ANT SUBJECT: PLANNING COMMISSION SUPPLEMENTAL REPORT AND THE SAFETY ELEMENT AND FINAL EIR FOR 2001 GENERAL PLAN DATE: AUGUST 16, 2001 RECOMMENDATION: It is recommended the City Council: 1 . Consider the Planning Commission supplemental report on the Safety Element of the final EIR for the 2001 General Plan. DISCUSSION: On August' 7, the Planning Commission held its fourth meeting regarding 2001 General Plan Update recommendations to the City Council. At prior meetings the Commission resolved recommendations on all elements except the Safety Element and optional comments regarding the final EIR, reported to the 'City Council on July 31, 2001. The Commission submits the following supplemental report regarding the 2001 General Plan and Final EIR: Safety Element The Commission recommends the Safety Element policy document as outlined in the 5/21/01 public review and comment distribution draft with the addition of an implementation measure: "S5 -1.3 Review evacuation plans within the City's Emeraencv Plan for ability to complete an evacuation in an anticipated radiological event. If evacuation plans are determined to be inadequate, alternative measures must be provided." The Commission also recommends that the Countywide Technical Background Report and the relevant Arroyo Grande area maps and materials Planning Commission Supplemental Report Safety Element & EIR General Plan Update August 16, 2001 Page 2 be part of an Appendix on file in a Reference Library at City Hall and the South County Library reference desk. The vote was 3 - 1 with Fowler, Guthrie and Keene for, Brown against and Costello absent. Land Use Element By consensus the Commission also corrected the July 31, 2001 report to Council regarding Land Use Study Area 7E b) East Myrtle/East Cherry, South of Arroyo Grande Creek including Lierly Lane (Stillwell, Estes, et al) - reclassify from Residential Rural (RR) to Single Family Residential, Medium Density (SFR-MD) the entire 22 acre area subject to consideration of infrastructure improvements (streets, water, sewer, drainage, parks, etc.) and providing for an agriculture buffer to the southeast and Conservation/Open Space along Arroyo Grande Creek to the north and east. (The prior report implied a "neighborhood development plan" requiring cooperation of area property owners not intended by the Commission and a typographic error regarding C/OS classification.) The underlined works are the corrected recommendation. Final Environmental Impact Report The Commission recommends the adequacy of the Final EIR, as drafted 5/21/01 and completed by response to comments dated 7/18 and 7/19/01, for all topics except water resources, air quality and transportation/circulation which were determined to be potentially significant impacts. The vote was 3 - 1 with Guthrie, Fowler and Keene for, Brown against and Costello absent. Regarding Air Quality, the Commission recommends the adequacy of the Final EIR and the Findings and Statement of Overriding Considerations based upon regional impacts that are beyond the control of the City to mitigate to less than significant. The vote was 3 -1 with Guthrie, Fowler and Keene for, Brown against and Costello absent. Regarding Water Resources and Transportation/Circulation, the Commission was unable to reach a decision with respect to these issues and in order to ..--. Planning Commission Supplemental Report Safety Element & EIR General Plan Update August 16, 2001 Page 3 avoid causing significant additional delay in the City Council deliberations on the General Plan Update will not make a recommendation on Water Resources and Transportation/Circulation unless directed to do so by the City Council. In addition Staff has prepared a response to Mayor Pro Tern Farrara's Memo of July 20, 2001 on the Draft General Plan (Attachment I). Staff has not attempted to deal with those items which require policy direction from the City Council. The Director of Publ.ic Works will summarize the available water supply, water consumption patterns, and identify several possible water conservation measures. In addition a Memorandum of Understanding regarding Urban Water Conservation in California has been attached (Attachment 2). This document describes various water conservation measures and in some cases provides information on the effectiveness of the measures. The T ransportation/Ci rcul atio n issues and consideration of Circulation Element policies should be continued to August 23, 2001 when Keith Higgins, traffic engineering consultant will present the Traffic Model Analysis of key Circulation Element proposals and alternatives. ATTACHMENT: 1. Response to Councilman Ferrara's Memorandum re Draft General Plan Update. 2. Memorandum of Understanding Regarding Urban Water Conservation in California - ,-----.----------- ---- I A TT ACHMENT 1 MEMORANDUM TO: TONY FERRARA, MAYOR PRO TEM FROM: ROB STRON~ GENERAL PLAN UPDATE AND EIR CONSULTANT- SUBJECT: CONSUL T ANT'S RESPONSE TO COUNCILMAN FERRAR'S MEMORANDUM RE DRAFT GENERAL PLAN AND EIR DATE: AUGUST 16, 2001 In responding to the questions, observations and concerns outlined in your 14-page memo regarding the Draft General Plan and EIR, I will be as brief as possible and reference each point by element and policy number. The basic purpose of the General Plan is to summarize Citv Council objectives and policies regarding community development. The fundamental function of the Environmental Impact Report is to identify possible significant adverse impacts of the Plan and consider ways that these impacts could be reduced or avoided. In most instances, the response requires City Council policy direction for any change to the draft. AGRICULTURE, CONSERVATION AND OPEN SPACE ELEMENT Aa 1-1 Eliminating the stated exception phrase, in my opinion, does not change the intent of this policy to preserve all undeveloped prime farmland soils. Nonconforming parcels may be interpreted as potential exceptions due to size or location. Only one exception appears to exist as "widowed" based on the criteria of policy Ag 3-14. Request Council direction. Aa 1-4.2 If the Dorfman and JWA parcels are allowed to convert 12 acres of prime farmland soils, this policy would require 24 acres of other prime soils in the City or its planning area to be Dermanentlv preserved as minimum "mitigation" . Ag 1-4.3 would require that the City Council consider such conversion a significant adverse impact and conclude overriding considerations allowed by CEQA, in addition to mitigation. Request Council direction. Mayor and City Council Response to Councilman Ferrara's Memo August 16, 2001 Page 2 of 5 Aa 2. Aa 2-1 & Aa 2-1.1 The objective and policies require interpretation. Agriculture, potential Fringe Area and urban developments utilize the same ground and surface water resources. The policy proposes to "minimize" development that would divert water from agriculture. Regional use of water resources mav exceed current estimates of safe yield, as concluded by the EIR, thus a Statement of Overriding Considerations is reauired by CEQA. Request Council direction. Aa 3-1 This policy does not refer to prime ag land but all land in ag use, thus more exceptions exist (e.g. Land Use Study Area 10, Farrell Avenue). Request Council direction. Aa 5-2.2 The Planning Commission recommends a 200 foot agricultural buffer with site specific design variables. C/OS 1-1.1 No basic objection to added wording. Request Council direction. C/OS 6 Water resources are uncertain and regional in nature. The City alone cannot mitigate possible impacts to less than significant despite policy of managing land use and limiting urban development to that which can be sustained by 3590 af.ft./yr. Request Council direction. FRINGE AND URBAN AREA LAND USE ELEMENT LU 2-5 No basic objection to additional policy regarding hillside residential development. Request Council direction. LU 3-9 Concur: Locate policy in LU 4-3. LU 4-2 No basic objection to deletion of "campus like" and addition of pedestrian oriented design features including "landscaped street yards and off-street parking areas." Request Council direction. LU 5-2 No basic objection to revised wording. Request Council direction. LU 5-6 & LU 8-2 Nonconforming businesses will be determined during Development Code revision and rezoning. LU 5-7 Correct spelling. 2 Mayor and City Council Response to Councilman Ferrara's Memo August 16, 2001 Page 3 of 5 LU 5-8 Concur with deletion of "high density". Do not support 5-8.4 re "problematic intersections and road segments", nor "mindful of circulation impacts", implicit with all development review. Request Council direction LU 5-10 Concur if City wants sole responsibility. Request Council direction. LU 5-10.2 Residential density, height and coverage do not require use of Floor Area Ratio (FAR). Council should determine policy regarding 3-story buildings. LU 5-11 Similar to LU 5-8. Request Council direction. LU 7 'Business Park' classification derived from 1990 plan, but not applied in 2001. No basic objection to if criteria are not relevant to Regional Commercial. Request Council direction. LU 7-1 Prefer general wording versus specific suggested. LU 7-2 "Power center" is what Arroyo Grande has with several anchor big box stores in same center not arranged as a retail shopping mall. LU 7-3 50,000 sq.ft. is an anchor for Regional Commercial. City Council should determine policy. LU 7-4 throuah 7-8 City Council should determine policy. LU 8 Intent was to permit existing auto dealer expansion In MU by conditional use permit but not in Village Core. LU 8-2 Council should clarify policy to enable or facilitate expansion. LU 9 Concur with rewrite or edit. LU 9-6 & 9-7 Concur with deletion. LU 11-2.2 Include hyphen after LU 11-2.2 through 11-2.5. LU 11-3.3 City policy should be clarified to refer to "peak periods" vs. the peak hour. LU 11-3.6 Intent is to ensure capacity. Request Council direction. 3 Mayor and City Council Response to Councilman Ferrara's Memo August 16, 2001 Page 4 of 5 LU 11-4.1 , LU 4.3 and LU 4.5 There may be overriding considerations or difficult distinction of what is feasible or adequate. Request Council direction. LU 11-6.10.1 b, d & h Council should determine policy. LU 12-2 Council should determine policy re 3-story buildings and other components of rural setting and small town character. LU 12-3.2 Concur LU 12-3.8 No basic objection to proposed policy addition. Request Council direction. LU 12-4.2 & 4.3 Senior and other special needs housing may be exceptions to multiple family residential design criteria. LU 12-13.9 & 13.10 on Concur with revision and renumbering. CIRCULATION/TRANSPORTATION ELEMENT The comments on CIRCULATION/TRANSPORTATIN ELEMENT have been sent to Higgins Associates for response at the special council meeting of August 23 regarding traffic model analysis. HOUSING ELEMENT H 1-4 "Identified housing needs" refers to state and SLOCOG determinations of individual City responsibility for addressing regional estimates. The wording is from adopted City policy. SAFETY ELEMENT This element already contains "Implementation Measures" supporting each policy and/or objective. S 5-5.1 Concur S 5-2.1 Concur. S 5-5: Concern with trees is the hazard of unhealthy trees requiring removal for human safety. 4 Mayor and City Council Response to Councilman Ferrara's Memo August 16, 2001 Page 5 of 5 NOISE ELEMENT Will correct typos - wording is adopted City policy. Could not find referenced statements on pages cited. PARKS AND RECREATION ELEMENT PR 2-2.3 Council should determine policy. cc: City Council Kerry McCants Steve Adams 5 " ATTACHMENT 2 MEMORANDUM OF UNDERSTANDING REGARDING URBAN WATER CONSERVATION IN CALIFORNIA As Amended September 21,2000 - 1 - MEMORANDUM OF UNDERSTANDING REGARDING URBAN WATER CONSERVATION IN CALIFORNIA TABLE OF CONTENTS RECiTALS.................................................................................................................. .4 TERMS........................................... .............................................................................5 SECTION 1. DEFIN ITIONS ..................... ......................:............................................ 5 SECTION 2. PURPOSES........................................................................................... 6 SECTION 3. LIMITS TO APPLICABILITY OF MOU ...................................................6 SECTION 4. IMPLEMENTATION OF BEST MANAGEMENT PRACTICES ..............7 SECTION 5. BAY/DEL TA PROCEEDINGS.............................................................. 10 SECTION 6. CALIFORNIA URBAN WATER CONSERVATION COUNCIL .............11 SECTION 7. GENERAL PROVISIONS ................. ...... ..... ..... .................................. .12 EXHIBIT 1. BMP DEFINITIONS, SCHEDULES, AND REQUIREMENTS. ................14 EXHIBIT 2. CALIFORNIA URBAN WATER CONSERVATION COUNCIL................56 EXHIBIT 3. PRINCIPLES TO GUIDE THE PERFORMANCE OF BMP ECONOMIC (COST -EFFECTIVENESS) ANAL YSES.... ..........................................58 EXHIBIT 4. FORM LETTER TO SWRCB.................................................................. 60 EXHIBIT 5. SWRCB ANNUAL REPORT OUTLINE ................................................ 62 EXHIBIT 6. ASSUMPTIONS AND METHODOLOGY FOR DETERMINING ESTIMATES OF RELIABLE WATER SAVINGS FROM THE INST ALLA TION OF ULF TOILETS.................... ................................. 64 EXHIBIT 7. BYLAWS OF THE CUWCC....................................................................83 - 2- MEMORANDUM OF UNDERSTANDING REGARDING URBAN WATER CONSERVATION IN CALIFORNIA This Memorandum of Understanding Regarding Urban Water Conservation in California ("'MOU") is made and entered into on the dates set forth below among the undersigned parties ("signatories"). The signatories represent urban water suppliers, public advocacy organizations and other interested groups as defined in Section 1 of this MOU. AMENDED September, 1991 February 10, 1993 March 9,1994 September 30, 1997 April 8, 1998 December 9, 1998 (By-Laws only) September 16, 1999 September 21,2000 -3- RECITALS A. The signatories to this MOU recognize that California's economy, quality of life and environment depend in large part upon the water resources of the State. The signatories also recognize the need to provide reliable urban water supplies and to protect the environment. Increasing demands for urban, agricultural and environmental water uses call for conservation and the elimination of waste as important elements in the overall management of water resources. Many organizations and groups in California have an interest in urban water conservation, and this MOU is intended to gain much needed consensus on a complex issue. B. The urban water conservation practices included in this MOU (referred to as "Best Management Practices" or "BMPs") are intended to reduce long-term urban demands from what they would have been without implementation of these practices and are in addition to programs which may be instituted during occasional water supply shortages. C. The combination of BMPs and urban growth, unless properly accounted for in water management planning, could make reductions in urban demands during short-term emergencies such as droughts or earthquakes more difficult to achieve. However, notwithstanding such difficulties, the signatory water suppliers will carry out the urban water conservation BMP process as described in this MOU. D. The signatories recognize that means other than urban water conservation may be needed to provide long-term reliability for urban water suppliers and long-term protection of the environment. However, the signatories may have differing views on what additional measures might be appropriate to provide for these needs. Accordingly, this MOU is not intended to address these issues. E. A major benefit of this MOU is to conserve water which could be used for the protection of streams, wetlands and estuaries and/or urban water supply reliability. This MOU leaves to other forums the issue of how conserved water will be used. F. It is the intent of this MOU that individual signatory water suppliers (1) develop comprehensive conservation BMP programs using sound economic criteria and (2) consider water conservation on an equal basis with other water management options. G. It is recognized that present urban water use throughout the State varies according to many factors including, but not limited to, climate, types of housing and landscaping, amounts and kinds of commercial, industrial and recreational development, and the extent to which conservation measures have already been implemented. It is further recognized that many of the BMPs identified in Exhibit 1 to this MOU have already been implemented in some areas and that even with broader employment of BMPs, future urban water use will continue to vary from area to area. Therefore, this MOU is not intended to establish uniform per capita water use allotments throughout the urban areas of the State. This MOU is also not intended to limit the amount or types of conservation a water supplier can pursue or to limit a water supplier's more rapid implementation of BMPs. H. It is recognized that projections of future water demand should include estimates of anticipated demand reductions due to changes in the real price of water. - 4- TERMS SECTION 1. DEFINITIONS For purposes of this MOU, the following definitions apply: 1.1 Best Manaaement Practices. A Best Management Practice ("BMP") means a policy, program, practice, rule, regulation or ordinance or the use of devices, equipment or facilities which meets either of the following criteria: (a) An established and generally accepted practice among water suppliers that results in more efficient use or conservation of water; (b) A practice for which sufficient data are available from existing water conservation projects to indicate that significant conservation or conservation related benefits can be achieved; that the practice is technically and economically reasonable and not environmentally or socially unacceptable; and that the practice is not otherwise unreasonable for most water suppliers to carry out. Although the term "Best Management Practices" has been used in various statutes and regulations, the definitions and interpretations of that term in those statutes and regulations do not apply to this MOU. The term "Best Management Practices" or "BMPs" has an independent and special meaning in this MOU and is to be applied for purposes of this MOU only as defined above. 1.2 Implementation. "Implementation" means achieving and maintaining the staffing, funding, and in general, the priority levels necessary to achieve the level of activity called for in the descriptions of the various BMPs and to satisfy the commitment by the signatories to use good faith efforts to optimize savings from implementing BMPs as described in Section 4.4 of this MOU. Section B of Exhibit 1 to this MOU establishes the schedule for initial implementation of BMPs. 1.3 Sianatorv Groups. For purposes of this MOU, signatories will be divided into three groups as follows: (a) Group 1 will consist of water suppliers. A "water supplier" is defined as any entity, including a city, which delivers or supplies water for urban use at the wholesale or retail level. (b) Group 2 will consist of public advocacy organizations. A "public advocacy organization" is defined as a non profit organization: (i) whose primary function is not the representation of trade, industrial, or utility entities, and (ii) whose prime mission is the protection of the environment or who has a clear interest in advancing the BMP process. -5- TERMS (c) Group 3 will consist of other interested groups. "Other interested groups" is defined as any other group which does not fall into one of the two groups above. 1.4 California Urban Water Conservation Council. The California Urban Water Conservation Councilor "Council" will have responsibility for monitoring the implementation of this MOU and will be comprised of signatories to this MOU grouped according to the definitions in Section 1.3 above. The duties of the Council are set forth in Section 6 and in Exhibit 2 to this MOU. SECTION 2. PURPOSES 2.1 This MOU has two primary purposes: (1) to expedite implementation of reasonable water conservation measures in urban areas; and (2) pursuant to Section 5 of this MOU, to establish assumptions for use in calculating estimates of reliable future water conservation savings resulting from proven and reasonable conservation measures. Estimates of reliable savings are the water conservation savings which can be achieved with a high degree of confidence in a given service area. The signatories have agreed upon the initial assumptions to be used in calculating estimates of reliable savings. These assumptions are included in Exhibit 1 to this MOU. It is probable that average savings achieved by water suppliers will exceed the estimates of reliable savings. SECTION 3. LIMITS TO APPLICABILITY OF MOU 3.1 Relationship Between Water Suppliers. No rights, obligations or authorities between wholesale suppliers, retail agencies, cities or other water suppliers are created or expanded by this MOU. Moreover, wholesale water suppliers are not obligated to implement BMPs at the retail customer level except within their own retail service area, if any. 3.2 Aariculture. This MOU is intended to apply only to the delivery of water for domestic, municipal and industrial uses. This MOU is not intended to apply directly or indirectly to the use of water for irrigated agriculture. 3.3 Reclamation. The signatory water suppliers support the reclamation and reuse of wastewater wherever technically and economically reasonable and not environmentally or socially unacceptable, and agree to prepare feasibility studies on water reclamation for their respective service areas. However, this MOU does not apply to that aspect of water management, except where the use of reclaimed water may otherwise qualify as a BMP as defined above. 3.4 land Use Plannina . This MOU does not deal with the question of growth management. However, each signatory water supplier will inform all relevant land planning agencies at least annually of the impacts that planning decisions involving projected growth would have - 6- TERMS upon the reliability of its water supplies for the water supplier's service area and other areas being considered for annexation. 3.5 Use of Conserved Water. A major benefit of this MOU is to conserve water which could be used for the protection of streams, wetlands and estuaries and/or urban water supply reliability. This MOU leaves to other forums the issue of how conserved water will be used. SECTION 4. IMPLEMENTATION OF BEST MANAGEMENT PRACTICES 4.1 The Best ManaQement Practices List. Schedule of Implementation and Assumptions. Exhibit 1 to this MOU contains: (a) In Section A: A list identifying those practices which the signatories believe presently meet the definition of a BMP as set forth in Section 1.1 of this MOU. (b) In Section B: A schedule for implementing the BMPs to be followed by signatory water suppliers unless exempted under Section 4.5 of this MOU or an alternative schedule is prepared pursuant to Section 4.6 of this MOU. (c) In Section C: Coverage requirements for implementing BMPs. Coverage requirements are the expected level of implementation necessary to achieve full implementation of BMPs. Coverage requirements may be expressed either in terms of activity levels by water suppliers or as water savings achieved. (d) In Section D: Reporting Requirements for Documenting BMP Implementation. These requirements vary by BMP, are considered the minimum record keeping and reporting requirements for water suppliers to document BMP implementation levels, and will provide the basic data used evaluate BMP implementation progress by water suppliers. (e) In Section E: Criteria to determine BMP implementation status of water suppliers. These criteria will be used to evaluate BMP implementation progress. Evaluation criteria vary by BMP, and are derived from the implementation guidelines and schedules presented in Sections A, B, and C. (f) In Section F: Assumptions for use in developing estimates of reliable savings from the implementation of BMPs. Estimates of reliable savings are the water conservation savings which can be achieved with a high degree of confidence in a given service area. The estimate of reliable savings for each BMP depends upon the nature of the BMP and upon the amount of data available to evaluate potential savings. For some BMPs (e.g., public information) estimates of reliable savings may never be generated. For others, additional data may lead to significant changes in the estimate of reliable savings. It is probable that average savings achieved by water suppliers will exceed the estimates of reliable savings. (g) In Section G: A list of "Potential Best Management Practices" ("PBMPs"). PBMPs are 'possible conservation practices which have not been promoted to the BMP list. -7- TERMS 4.2 Initial BMPs. PBMPs. Schedules. and Estimates of Reliable Savinas. The initial position of conservation practices on the BMP and PBMP lists, the initial schedule of implementation and study for the BMP list, the initial schedule of study for the PBMP list, and the initial estimates of reliable savings represent compromises by the signatories to move the process forward both for purposes of the present Bay/Delta proceedings as defined in Section 5 and to promote water conservation generally. The signatories agree that as more and better data are collected in the future, the lists, the schedules, and the estimates of reliable savings will be refined and revised based upon the most objective criteria available. However, the signatories agree that the measures included as initial BMPs in Section A of Exhibit 1 are economically justified on a statewide basis. 4.3 Future Revision of BMPs. PBMPs. Schedules. and Estimates of Reliable Savinas. After the beginning of the initial term of the MOU as provided in Section 7.1, the California Urban Water Conservation Council ("Council") will, pursuant to Section 6 of this MOU and Exhibit 2, alter the composition of the BMP and PBMP lists, redefine individual BMPs, alter the schedules of implementation, and update the assumptions of reliable savings as more data becomes available. This dynamic BMP assessment process includes the following specific commitments: (a) The assumptions of reliable savings will be updated at least every 3 years. (b) The economic reasonableness of a BMP or PBMP will be assessed by the Council using the economic principles in Sections 3 and 4 of Exhibit 3. (c) A BMP will be removed from the BMP list if, after review of data developed during implementation, the Council determines that the BMP cannot be made economically reasonable or determines that the BMP otherwise fails to conform to the definition of BMPs in Section 1.1. (c) A PBMP will be moved to the BMP list and assigned a schedule of implementation if, after review of data developed during research, and/or demonstration projects, the Council determines that the PBMP is economically reasonable and otherwise conforms to the definition of BMPs in Section 1.1. [Note: In 1997, the Council substantially revised the BMP list, definitions, and schedules contained in Exhibit 1. These revisions were adopted by the Council September 30, 1997.]. 4.4 Good Faith Effort. While specific BMPs and results may differ because of varying local conditions among the areas served by the signatory water suppliers, a good faith effort to implement BMPs will be required of all signatory water suppliers. The following are included within the meaning of "good faith effort to implement BMPs": (a) The proactive use by a signatory water supplier of legal authorities and administrative prerogatives available to the water supplier as necessary and reasonable for the implementation of BMPs. (b) Where implementation of a particular BMP is not within the legal authority of a signatory water supplier, encouraging timely implementation of the BMP by other -8- TERMS entities that have the legal authority to carry out the BMP within that water supplier's service area pursuant to existing legal authority. This encouragement may include, but is not limited to, financial incentives as appropriate. (c) Cooperating with and encouraging cooperation between other water suppliers and other relevant entities whenever possible and within existing legal authority to promote the implementation of BMPS. (d) Optimizing savings from implementing BMPs. (d) For each signatory water supplier and all signatory public advocacy organizations, encouraging the removal of institutional barriers to the implementation of BMPs within that water supplier's service area. Examples of good faith efforts to remove institutional barriers include formal presentations and/or written requests to entities requesting approval of, or amendment to, local ordinances, administrative policies or legislation which will promote BMP implementation. 4.5 Exemptions. A signatory water supplier will be exempt from the implementation of specific BMPs for as long as the supplier substantiates each reporting period that based upon then prevailing local conditions, one or more of the following findings applies: (a) A full cost-benefit analysis, performed in accordance with the principles set forth in Exhibit 3, demonstrates that either the program (i) would not be cost-effective overall when total program benefits and costs are considered; OR (ii) would not be cost- effective to the individual water supplier even after the water supplier has made a good faith effort to share costs with other program beneficiaries. (b) Adequate funds are not and cannot reasonably be made available from sources accessible to the water supplier including funds from other entities. However, this exemption cannot be used if a new, less cost-effective water management option would be implemented instead of the BMP for which the water supplier is seeking this exemption. (c) Implementation of the BMP is (i) not within the legal authority of the water supplier; and (ii) the water supplier has made a good faith effort to work with other entities that have the legal authority to carry out the BMP; and (iii) the water supplier has made a good faith effort to work with other relevant entities to encourage the removal of institutional barriers to the implementation of BMPs within its service area. Signatory water suppliers shall submit exemptions to the Council within two months following the start of the reporting period for which the exemptions are being claimed. 4.6 Schedule of Implementation. The schedule of implementation for BMPs is set forth in Section B of Exhibit 1 to this MOU. However, it is recognized by the signatories that deviations from this schedule by water suppliers may be necessary. Therefore, a water supplier may modify, to the minimum extent necessary, the schedule for implementation of BMPs if the water supplier substantiates one or more of the following findings: - 9- TERMS (a) That after a good faith effort to implement the BMP within the time prescribed, implementation is not feasible pursuant to the schedule. However, implementation of this BMP is still required as soon as feasible within the initial term of this MOU as defined in Section 7.1. (b) That implementation of one or more BMPs prior to other BMPs will have a more positive effect on conservation or water supplies than will adherence to the schedule. (c) That implementation of one or more Potential BMPs or other conservation measures prior to one or more BMPs will have a more positive effect on conservation or water supplies than will adherence to the schedule. SECTION 5. SA Y/DEL T A PROCEEDINGS [Note: The following section was adopted with the initial MOU and has been retained in subsequent revisions. The "present proceedings" refers to the State Water Resources Control Board water rights process then underway to implement new Bay-Delta flow and export standards. As of the date this note was adopted (April 8, 1998), proceedings to implement updated standards are still underway. Therefore, the joint recommendations of the signatories to the SWRCB contained in this letter continue to apply.] 5.1 Use of MOU for Bav/Delta ProceedinQs. The BMPs, the estimates of reliable savings and the processes established by this MOU are agreed to by the signatories for purposes of the present proceedings on the San Francisco Bay/Sacramento-San Joaquin Delta Estuary ("BaylDelta") and in order to move the water conservation process forward. "Present BaylDelta proceedings" is intended to mean those BaylDelta proceedings presently underway and those conducted until a final water rights decision is reached by the State Water Resources Control Board ("State Board"). The willingness of the signatories to enter into this MOU for purposes of the present BaylDelta proceedings in no way limits the signatories' ability to propose different conservation practices, different estimates of savings, or differen~ processes in a forum other than the present Bay/Delta proceedings, or for non- urban water suppliers or for other water management issues. By signing this MOU, public advocacy organization signatories are not agreeing to use the initial assumptions of reliable conservation savings in proceedings other than the present Bay/Delta proceedings. The signatories may present other assumptions of reliable conservation savings for non- signatory water suppliers in the present BaylDelta proceedings, provided that such assumptions could not have adverse impacts upon the water supplies of any signatory water supplier. Furthermore, the signatories retain the right to advocate any particular level of protection for the BaylDelta Estuary, including levels of freshwater flows, and do not necessarily agree on population projections for California. This MOU is not intended to address any authority or obligation of the State Board to establish freshwater flow protections or set water quality objectives for the Estuary, or to address any authority of the Environmental Protection Agency. 5.2 Recommendations for Bav/Delta ProceedinQs. The signatories will make the following recommendations to the State Board in conjunction with the present BaylDelta proceedings and to the EPA to the extent the EPA concerns itself with the proceedings: - 10 - TERMS (a) That for purposes of the present Bay/Delta proceedings, implementation of the BMP process set forth in this MOU represents a sufficient long-term water conservation program by the signatory water suppliers, recognizing that additional programs may be required during occasional water supply shortages; (b) That for purposes of the present Bay/Delta proceedings only, the State Board and EPA should base their estimates of future urban water conservation savings on the implementation of all of the BMPs included in Section A of Exhibit 1 to this MOU for the entire service area of the signatory water suppliers and only on those BMPs, except for (I) the conservation potential for water supplied by urban agencies for agricultural purposes, or (ii) in cases where higher levels of conservation have been mandated;. (c) That for the purposes of the present Bay/Delta proceedings, the State Board and EPA should make their estimates of future urban water conservation savings by employing the reliable savings assump~ions associated with those BMPs set forth in Section C of Exhibit 1 to this MOU; (d) That the State Board should include a policy statement in the water rights phase of the Bay/Delta proceedings supporting the BMP process described in this MOU and that the BMP process should be considered in any documents prepared by the State Board pursuant to the California Environmental Quality Act as part of the present Bay/Delta proceedings. 5.3 Letter to State Board. Within 30 days of signing this MOU, each signatory will jointly or individually convey the principles set forth in SeCtions 5.1 and 5.2 above by sending a letter to the State Board, copied to the EPA, in the form attached to this MOU as Exhibit 4. 5.4 Withdrawal from MOU. If during the present Bay/Delta proceedings, the State Board or EPA uses future urban water conservation savings that are inconsistent with the use of BMPs as provided in this MOU, any signatory shall have the right to withdraw from the MOU by providing written notice to the Council as described in Section 7.4(a)(I) below. SECTION 6. CALIFORNIA URBAN WATER CONSERVATION COUNCIL 6.1 Oraanization. The California Urban Water Conservation Council ("Council") will be comprised of all signatories to this MOU grouped according to the definition in Section 1. The signatories agree to the necessary organization and duties of the Council as specified in Exhibit 2 to this MOU. Within 30 days of the effective date of this MOU, the Council will hold its first meeting. 6.2 BMP Implementation Reports. The signatory water suppliers will submit standardized reports every other year to the Council providing sufficient information to inform the Council on the progress being made towards implementing the BMP process. The Council will make annual reports to the State Board. An outline for the Council's annual report to the State Board is attached as Exhibit 5 to this MOU. - 11 - TERMS SECTION 7. GENERAL PROVISIONS 7.1 Initial Term of MOU. The initial term of this MOU shall be for a period of 10 years. This initial term shall commence on September 1, 1991. 7.2 Sianatories. Signatories shall consist of three groups: water suppliers, public advocacy organizations and other interested groups, arranged according to the definition in Section 1.3. Such arrangement will be made by a Council membership committee comprised of three representatives from the water suppliers' group and three representatives from the public advocacy organizations' group. ('.3 Renewal of MOU. The MOU shall be automatically renewed after the initial term of 10 years on an annual basis as to all signatories unless a signatory withdraws as described below in Section 7.4. 7.4 Withdrawal from MOU. Signatories to the MOU may withdraw from the MOU in three separate ways as described in sections (a), (b) and 8 below. (a) Withdrawal prior to expiration of initial term. Before the exp'iration of the initial term of 10 years, a signatory may withdraw by providing written notice to the Council declaring its intent to withdraw. This written notice must include a substantiated finding that one of the two provisions (i) or (ii) below applies: (i) During the present Bay/Delta proceedings, the State Board or EPA used future urban water conservation savings that are inconsistent with the use of BMPs as provided in this MOU; OR (ii) After a period of 5 years from the commencement of the initial term of the MOU: (1) Specific signatory water suppliers representing more than 10 percent of the population included within the combined service areas of the signatory water suppliers have failed to act in good faith pursuant to Section 4.4 of the MOU; and (2) The signatory wishing to withdraw has attached findings to its past two annual reports to the Council beginning no earlier than the fourth annual report identifying these same signatory water suppliers and giving evidence based upon the information required to be submitted in the annual reports to the Council to support the allegations of failure to act in good faith; and (3) The State Board has failed to require conservation efforts by the specific water suppliers adequate to satisfy the requirements of this MOU; and - 12- TERMS (4) Discussions between the signatory wishing to withdraw and the specific signatories named have failed to satisfy the objections of the signatory wishing to withdraw. After a signatory declares an intent to withdraw under Section 7.4(a), the MOU shall remain in effect as to that signatory for 180 days. (b) Withdrawal after expiration of initial term. After the initial term of 10 years, any signatory may declare its intent to withdraw from the MOU unconditionally by providing written notice to the Council. After a signatory has declared its intent to withdraw as provided in this section, the MOU will remain in effect as to that signatory for 180 days. (c) Immediate withdrawal. Any signatory who does not sign a modification to the MOU requiring a 2/3 vote as described in Exhibit 2 of this MOU may withdraw from the MOU by providing written notice to the Council. The withdrawing signatory's duties under this MOU will be terminated effective immediately upon providing such written notice. If a signatory withdraws from the MOU under any of the above methods, the MOU shall remain in effect as to all other signatories. 7.5 Additional Parties. Additional parties may sign the MOU after September 1,1991 by providing written notice to and upon approval by the Council. Additional parties will be assigned by the Council to one of the three signatory groups defined in Section 1.3 before entry into the Council. All additional signatory water suppliers shall be subject to the schedule of implementation provided in Exhibit 1. 7.6 Leaal Authoritv. Nothing in this MOU is intended to give any signatory, agency, entity or organization expansion of any existing authority. No organization formed pursuant to this MOU has authority beyond that specified in this MOU. 7.7 Non-Contractual Aareement. This MOU is intended to embody general principles agreed upon between and among the signatories and is not intended to create contractual relationships, rights, obligations, duties or remedies in a court of law between or among the signatories. 7.8 Modifications. The signatories agree that this writing constitutes the entire understanding between and among the signatories. The general manager, chief executive officer or executive director of each signatory or their designee shall have the authority to vote on any modifications to this MOU and its exhibits. Any modifications to the MOU itself and to its exhibits shall be made by the Council as described in Exhibit 2. - 13- EXHIBIT 1. BMP DEFINITIONS, SCHEDULES AND REQUIREMENTS This Exhibit contains Best Management Practices (BMPs) that signatory water suppliers commit to implementing. Suppliers' water needs estimates will be adjusted to reflect estimates of reliable savings from this category of BMPs. For some BMPs, no estimate of savings is made. It is recognized by all parties that a single implementation method for a BMP would not be appropriate for all water suppliers. In fact, it is likely that as the process moves forward, water suppliers will find new implementation methods even more effective than those described. Any implementation method used should be at least as effective as the methods described below. Best Management Practices will be implemented by signatory water suppliers according to the schedule set forth in Section B of each BMP's definition. These schedules set forth the latest dates by which implementation of BMPs will be underway. It is recognized that some signatories are already implementing some BMPs, and that these schedules do not prohibit signatories from implementing BMPs sooner than required. "Implementation" means achieving and maintaining the staffing, funding, and in general, the priority levels necessary to achieve the level of activity called for in Section A of each BMP's definition, and to satisfy the commitment by the signatories to use good faith efforts to optimize savings from implementing BMPs as described in Section 4.4 of the MOU. BMPs will be implemented at a level of effort projected to achieve at least the coverages specified in Section C of each BMP's definition, and in accordance with each BMP's implementation schedule. Section D of each BMP definition contains the minimum record keeping and reporting requirements for agencies to document BMP implementation levels and efforts, and will be used to guide Council development of BMP implementation report forms and database. The evaluation criteria presented in Section E of each BMP definition shall be used to evaluate compliance with the implementation definitions, schedules, and coverage requirements specified in Sections A, B, and C of each BMP definition. Section F of each BMP definition contains the assumptions of reliable savings to be used in accordance with Sections 5.1 and 5.2 of the MOU .' . - 14- EXHIBIT 1 1. WATER SURVEY PROGRAMS FOR SINGLE-FAMILY RESIDENTIAL AND MUL TI-FAMIL Y RESIDENTIAL CUSTOMERS A. Implementation Implementation shall consist of at least the following actions: a) Develop and implement a strategy targeting and marketing water use surveys to single-family residential and multi-family residential customers. b) Directly contact via letter or telephone not less than 20% of single-family residential customers and 20% of multi-family residential customers each reporting period. c) Surveys shall include indoor and outdoor components, and at minimum shall have the following elements: Indoor i) Check for leaks, including toilets, faucets, and meter check ii) Check showerhead flow rates, aerator flow rates, and offer to replace or recommend replacement, as necessary iii) Check toilet flow rates and offer to install or recommend installation of displacement device or direct customer to ULFT replacement program, as necessary; replace leaking toilet flapper, as necessary Outdoor iv) Check irrigation system and timers v) Review or develop customer irrigation schedule Recommended but not required vi) Measure currently landscaped area vii) Measure total irrigable area d) Provide customer with evaluation results and water saving recommendations; leave information packet with customer. e) Track surveys offered, surveys completed, survey results, and survey costs. - 15- EXHIBIT 1 B. Implementation Schedule a) Agencies signing theMOU prior to December 31,1997, implementation shall commence no later than July 1, 1998. b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no later than July 1 of the year following the year the agency signed or became subject to the MOU. c) Agencies shall develop and implement a strategy targeting and marketing water use surveys to single-family residential and multi-family residential customers by the end of the first reporting period following the date implementation was to commence. d) The coverage requirement for this BMP, as specified in Section C of this Exhibit, shall be realized within 10 years of the date implementation was to commence. C. Coveraae Reauirements a) Not less than 15% of single-family residential accounts to receive water use surveys within 10 years of the date implementation was to commence. For the purposes of calculating coverage, 15% of single-family residential accounts means the number of accounts equal to 15% of single-family accounts in 1997 or the year the agency signed the MOU, whichever is later. b) Not less than 15% of multi-family residential units to receive water use surveys within 10 years of the date implementation was to commence. For the purposes of calculating coverage, 15% of multi-family residential units means the number of units equal to 15% of multi-family units in 1997 or the year the agency signed the MOU, whichever is later. D. Reauirements for Documentina BMP Implementation a) Number of single-family residential accounts in service area. b) Number of multi-family residential accounts in service area. c) Number of single-family residential surveys offered during reporting period. d) Number of single-family residential surveys completed during reporting period. e) Number of multi-family residential surveys offered during reporting period. f) Number of multi-family residential surveys completed during reporting period. - 16- EXHIBIT 1 E. Criteria to Determine BMP Implementation Status a) Agency has developed and implemented a strategy targeting and marketing water use surveys to single-family residential and multi-family residential customers by the end of the first reporting period following the date implementation was to commence. b) Agency has directly contacted not less than 20% of single-family residential accounts and 20% of multi-family residential units during period being reported. c) Agency is on schedule to complete surveys for 15% of single-family residential accounts and 15% of multi-family units within 10 years of the date implementation was to commence. Agencies will receive credit against the coverage requirement for previously completed residential water use surveys according to the following schedule*: % Credit Before 1990 0.0% 1990 12.5% 1991 25.0% 1992 37.5% 1993 50.0% 1994 62.5% 1995 75.0% 1996 87.5% 1997 100.0% d) Agencies will be considered on track if the percent of single-family accounts and the percent of multi-family accounts receiving water use surveys equals or exceeds the following: 1.5% by end of first reporting period following date implementation to commence; 3.6% by end of second reporting period; 6.3% by end of third reporting period; 9.6% by end of fourth reporting period; and 13.5% by end of fifth reporting period. * .In its study "What is the Reliable Yield from Residential Home Water Survey Programs: The Experience of LADWP' (AWWA Conf. Proceedings, 1995), A & N Technical Services, Inc., found that the average level of savings from home water surveys decreased over time, reaching about 50% of initial yield by the fourth year following the survey, on average. The above decay schedule used for crediting past surveys utilizes these findings to recognize and account for the limited persistence of water savings over time from home water use surveys - 17- EXHIBIT 1 F. Water SavinQs Assumptions Pre-1980 Post-1980 Construction Construction Low-flow showerhead retrofit 7.2 gcd 2.9 gcd Toilet retrofit (five year life) 1.3 gcd 0.0 gcd Leak repair 0.5 gcd 0.5 gcd Landscape survey (outdoor use reduction) 10% 10% - 18- EXHIBIT 1 2. RESIDENTIAL PLUMBING RETROFIT A. Implementation Implementation shall consist of at least the following actions: a) Identify single-family and multi-family residences constructed prior to 1992. Develop a targeting and marketing strategy to distribute or directly install high- quality, low-flow showerheads (rated 2.5 gpmor less), toilet displacement devices (as needed), toilet flappers (as needed) and faucet aerators (rated 2.2 gpm or less) as practical to residences requiring them. b) Maintain distribution and/or direct installation programs so that devices are distributed to not less than 10% of single-family connections and multi-family units each reporting period, or require through enforceable ordinance the replacement of high-flow showerheads and other water using fixtures with their low-flow counterparts, until it can be demonstrated in accordance with Section E of this Exhibit that 75% of single-family residences and 75% of multi-family units are fitted with high-quality, low-flow showerheads. c) Track the type and number of retrofits completed, devices distributed, and program costs. B. Implementation Schedule a) Agencies signing the MOU prior to December 31, 1997, implementation shall commence no later than July 1, 1998. b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no later than July 1 of the year following the year the agency signed or became subject to the MOU. c) Agencies shall develop and implement a strategy targeting the distribution and/or installation of high-quality, low-flow plumbing devices to single-family residential and multi-family residential customers by the end of the first reporting period following the date implementation was to commence. d) An agency may elect to discontinue its device distribution programs without filing a formal budget or cost-effectiveness exemption when it can demonstrate that 75% of its single-family residences and 75% of its multi-family units constructed prior to 1992 are fitted with high-quality, low-flow showerheads. - 19- EXHIBIT 1 C. Coveraae Reauirements a) Plumbing device distribution and installation programs to be maintained at a level sufficient to distribute high-quality, low-flow showerheads to not less than 10% of single-family residences and 10% of multi-family units constructed prior to 1992 each reporting period; or the enactment of an enforceable ordinance requiring the replacement of high-flow showerheads and other water use fixtures with their low-flow counterparts. b) Plumbing device distribution and installation programs to be operated until it can be demonstrated in accordance with Section E of this Exhibit that 75% of single- family residences and 75% of multi-family units are fitted with high-quality, low- flow showerheads. D. Reauirements for Documentina BMP Implementation a) The target population of pre-1992 single-family residences and multi-family units to be provided showerheads and other water saving devices. b) The number of showerhead retrofit kits distributed during previous reporting period. c) The number of device retrofits completed during the previous reporting period. d) The estimated percentage of pre-1992 single-family residences and multi-family units in service area fitted with low-flow showerheads. E. Criteria to Determine BMP Implementation Status a) Agency has developed and implemented a strategy targeting and marketing water use surveys to single-family residential and multi-family residential customers by the end of the first reporting period following the date implementation was to commence. b) Agency has tracked the type and number of retrofits completed, devices distributed, and program costs. c) Agency EITHER i) has distributed or directly installed high-quality, low-flow showerheads and other low-flow plumbing devices to not less than 10% of single-family residences and 10% of multi-family units constructed prior to 1992 during the reporting period; and/or has enacted an ordinance requiring the - 20- EXHIBIT 1 replacement of high-flow shower-heads and other water use fixtures with their low-flow counterparts. OR ii) can demonstrate through customer surveys with 95% statistical confidence and a :1:10% error that 75% of single-family residences and 75% of multi- family units constructed prior to 1992 are fitted with low-flow showerheads. F. Water Savinas Assumptions Pre-1980 Post-1980 Construction Construction Low-flow showerhead retrofit 7.2 gcd 2.9 gcd Toilet retrofit (five year life) 1.3 gcd 0.0 gcd . - 21 - EXHIBIT 1 3. SYSTEM WATER AUDITS, LEAK DETECTION AND REPAIR A. Implementation Implementation shall consist of at least the following actions: a) Annually complete a prescreening system audit to determine the need for a fullscale system audit. The prescreening system audit shall calculated as follows: i) Determine metered sales; ii) Determine other system verifiable uses; iii) Determine total supply into the system; iv) Divide metered sales plus other verifiable uses by total supply into the system. If this quantity is less than 0.9, a fullscale system audit is indicated. b) When indicated, agencies shall complete water audits of their distribution systems using methodology consistent with that described in AWWA's Water Audit and Leak Detection Guidebook. c) Agencies shall advise customers whenever it appears possible that leaks exist on the customer's side of the meter; perform distribution system leak detection when warranted and cost-effective; and repair leaks when found. B. Implementation Schedule a) Agencies signing the MOU prior to December 31, 1997, implementation shall commence no later than July 1, 1998. b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no later than July 1 of the year following the year the agency signed or became subject to the MOU. C. Coveraae Reauirements a) Agency shall maintain an active distribution system auditing program. b) Agency shall repair identified leaks whenever cost-effective. - 22- EXHIBIT 1 D. Reauirements for Documentina BMP Implementation a) Prescreening audit results and supporting documentation; b) Maintain in-house records of audit results or the completed AWWA Audit Worksheets for each completed audit period. E. Criteria to Determine BMP Implementation Status a) Agency has annually completed a pre-screening distribution system audit. b) Agency has conducted a full system audit consistent with methods described by AWWA's Manual of Water Supply Practices, Water Audits and Leak Detection whenever indicated by a pre-screening audit. F. Water Savinas Assumptions Unaccounted water losses assumed to be no more than 10% of total water into the water supplier's system. - 23- EXHIBIT 1 4. METERING WITH COMMODITY RATES FOR ALL NEW CONNECTIONS AND RETROFIT OF EXISTING CONNECTIONS A. Implementation Implementation shall consist of at least the following actions: a) Requiring meters for all new connections and billing by volume of use. b) Establishing a program for retrofitting existing unmetered connections and billing by volume of use. c) Identifying intra- and inter-agency disincentives or barriers to retrofitting mixed use commercial accounts with dedicated landscape meters, and conducting a feasibility study to assess the merits of a program to provide incentives to switch mixed use accounts to dedicated landscape meters. B. Implementation Schedule a) Agencies signing the MOU prior to December 31, 1997, implementation shall commence no later than July 1, 1999. b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no later than July 1 of the second year following the year the agency signed or became subject to the MOU. c) A plan to retrofit and bill by volume of use existing unmetered connections to be completed by end of the first reporting period following the date implementation was to commence. d) A feasibility study examining incentive programs to move landscape water uses on mixed-use meters to dedicated landscape meters to be completed by end of the first reporting period following the date implementation was to commence. C. Coveraae Reauirements 100% of existing unmetered accounts to be metered and billed by volume of use within 10 years of date implementation was to commence. - 24- EXHIBIT 1 D. Reauirements for Documentina BMP Implementation a) Confirmation that all new connections are metered and are being billed by volume of use. b) Number of unmetered accounts in the service area. For the purposes of evaluation, this shall be defined as the baseline meter retrofit target, and shall be used to calculate the agency's minimum annual retrofit requirement. c) Number of unmetered connections retrofitted during the reporting period. d) Number of CII accounts with mixed-use meters. e) Number of CII accounts with mixed-use meters retrofitted with dedicated irrigation meters during reporting period. E. Criteria to Determine BMP Implementation Status a) Agency with existing unmetered connections has completed a meter retrofit plan by end of first reporting period following the date implementation was to commence. b) Agency has completed a feasibility study examining incentive programs to move landscape water uses on mixed-use meters to dedicated landscape meters by end of first reporting period following the date implementation was to commence. c) Agency with existing unmetered connections is on track to meter these connections within 10 years of the date implementation was to commence. An agency will be considered on track if the percent of unmetered accounts retrofitted with meters equals or exceeds the following: 10% by end of first reporting period following date implementation to commence; 24% by end of second reporting period; 42% by end of third reporting period; 64% by end of fourth reporting period; and 90% by end of fifth reporting period. F. Water Savinas Assumptions Assume meter retrofits will result in a 20% reduction in demand by retrofitted accounts. - 25- EXHIBIT 1 5. LARGE LANDSCAPE CONSERVATION PROGRAMS AND INCENTIVES A. Implementation Implementation shall consist of at least the following actions: Customer Support, Education and Assistance a) Agencies shall provide non-residential customers with support and incentives to improve their landscape water use efficiency. This support shall include, but not be limited to, the following: Accounts with Dedicated Irrigation Meters a) Identify accounts with dedicated irrigation meters and assign ETo-based water use budgets equal to no more than 100% of reference evapotranspiration per square foot of landscape area in accordance with the schedule given in Section B of this Exhibit. b) Provide notices each billing cycle to accounts with water use budgets showing the relationship between the budget and actual consumption in accordance with the schedule given in Section B of this Exhibit; agencies may choose not to notify customers whose use is less than their water use budget. Commercial/Industrial/Institutional Accounts with Mixed-Use Meters or Not Metered a) Develop and implement a strategy targeting and marketing large landscape water use surveys to commercial/industrial/institutional (CII) accounts with mixed-use meters. Each reporting period, directly contact via letter or telephone not less than 20% of CII accounts with mixed-use meters and offer water use surveys. (Note: CII surveys that include both indoor and outdoor components can be credited against coverage requirements for both BMP 5 and BMP 9.) b) Unmetered service areas will actively market landscape surveys to existing accounts with large landscapes, or accounts with landscapes which have been determined by the purveyor not to be water efficient. c) Offer the following measures when cost-effective: i) Landscape water use analysis/surveys - 26- EXHIBIT 1 ii) Voluntary water use budgets iii) Installation of dedicated landscape meters iv) Training (multi-lingual where appropriate) in landscape maintenance, irrigation system maintenance, and irrigation system design. v) Financial incentives to improve irrigation system efficiency such as loans, rebates, and grants for the purchase and/or installation of water efficient irrigation systems. vi) Follow-up water use analyses/surveys consisting of a letter, phone call, or site visit where appropriate. d) Survey elements will include: measurement of landscape area; measurement of total irrigable area; irrigation system check, and distribution uniformity analysis; review or develop irrigation schedules, as appropriate; provision of a customer survey report and information packet. e) Track survey offers, acceptance, findings, devices installed, savings potential, and survey cost. New or Change of Service Accounts Provide information on climate-appropriate landscape design, efficient irrigation equipment/management to new customers and change-of-service customer accounts. Recommended a) Install climate appropriate water efficient landscaping at water agency facilities, and dual metering where appropriate. b) Provide customer notices prior to the start of the irrigation season alerting them to check their irrigation systems and make repairs as necessary. Provide customer notices at the end of the irrigation season advising them to adjust their irrigation system timers and irrigation schedules. B. Implementation Schedule a) Agencies signing the MOU prior to December 31, 1997, implementation shall commence no later than July 1, 1999. - 27':' EXHIBIT 1 b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no later than July 1 of the second year following the year the agency signed or became subject to the MOU. c) Develop ETo-based water use budgets for all accounts with dedicated irrigation meters by the end of the second reporting period from the date implementation was to commence. d) Develop and implement a plan to target and market landscape water use surveys to CII accounts with mixed-use meters by the end of the first reporting period from the date implementation was to commence. e) Develop and implement a customer incentive program by the end of the first reporting period from the date implementation was to commence. C. Coveraae Reauirements a) ETo-based water use budgets developed for 90% of CII accounts with dedicated irrigation meters by the end of the second reporting period from the date implementation was to commence. b) Not less than 20% of CII accounts with mixed-use meters contacted and offered landscape water use surveys each reporting period. c) Irrigation water use surveys completed for not less than 15% of CII accounts with mixed-use meters within 10 years of the date implementation was to commence. (Note: CII surveys that include both indoor and outdoor components can be credited against coverage requirements for both BMP 5 and BMP 9.) For the purposes of calculating coverage, 15% of CII accounts means the number of accounts equal to 15% of CII accounts with mixed-use meters in 1997 or the year the agency signed the MOU, whichever is later. D. Reauirements for Documentina BMP Implementation Dedicated Landscape Irrigation Accounts Agencies shall preserve water use records and budgets for customers with dedicated landscape irrigation accounts for a period of not less than two reporting periods. This information may be used by the Council to verify the agency's reporting on this BMP . a) Number of dedicated irrigation meter accounts. b) Number of dedicated irrigation meter accounts with water budgets. - 28- EXHIBIT 1 c) Aggregate water use for dedicated landscape accounts with budgets. d) Aggregate budgeted water use for dedicated landscape accounts with budgets. Mixed Use Accounts a) Number of mixed use accounts. b) Number, type, and dollar value of incentives, rebates, and no, or low interest loans offered to, and received by, customers. c) Number of surveys offered. d) Number of surveys accepted. e) Estimated annual water savings by customers receiving surveys and implementing recommendations. E. Criteria to Determine BMP Implementation Status a) Agency has developed water use budgets for 90% of accounts with dedicated irrigation meters by end of second reporting period from date implementation was to commence. b) Agency has implemented irrigation water use survey program for CII accounts with mixed-use meters, and directly contacts and offers surveys to not less than 20% of accounts each reporting period. (A program to retrofit mixed-use accounts with dedicated landscape meters and assigning water use budgets, or a program giving mixed-use accounts ETo-based budgets for irrigation uses satisfies this criterion.) c) Agency is on track to provide water use surveys to not less than 15% of CII accounts with mixed-use meters within 10 years of the date implementation was to commence. Agency may credit 100% of the number of landscape water use surveys for CII accounts with mixed-use meters completed prior to July 1, 1996, that have received a follow-up inspection against the coverage requirement; and 50% of surveys that have not received follow-up inspections. Agency may credit 100% of the number of landscape water use surveys completed for CII accounts with mixed-use meters after July 1, 1996 against the coverage requirement. (A. program to retrofit mixed-use accounts with dedicated landscape accounts, or a program giving mixed-use accounts ETo-based budgets for irrigation uses satisfy this criterion.) - 29- EXHIBIT 1 d) An agency will be considered on track if the percent of CII accounts with mixed- use meters receiving a landscape water use survey equals or exceeds the following: 1.5% by end of first reporting period following date implementation to commence; 3.6% by end of second reporting period; 6.3% by end of third reporting period; 9.6% by end of fourth reporting period; and 13.5% by end of fifth reporting period. (A program to retrofit mixed-use accounts with dedicated landscape accounts, or a program giving mixed-use accounts ETo-based budgets for irrigation uses satisfy this criterion.) e) Agency has implemented and is maintaining customer incentive program(s) for irrigation equipment retrofits. F. Water SavinQs Assumptions Assume landscape surveys will result in a 15% reduction in demand for landscape uses by surveyed accounts. . - 30- EXHIBIT 1 6. HIGH-EFFICIENCY WASHING MACHINE REBATE PROGRAMS A. Implementation Implementation shall consist of at least the following actions: Council Actions and Responsibilities a) Within 6 months from the adoption of this BMP, the Council will develop interim estimates of reliable water savings attributable to the use of high-efficiency washing machines based on the results of the THELMA Study and other available data. Water purveyors may defer implementing this BMP until the Council has adopted these interim estimates. [NOTE: INTERIM ESTIMATE OF RELIABLE WATER SAVINGS ADOPTED BY COUNCIL PLENARY APRIL 8, 1998, SEE SECTION F.] b) Within two years from the adoption of this BMP, the Council will complete studies quantifying reliable savings attributable to the use of high-efficiency washing machines. c) At the end of two years following the adoption of this BMP, the Council will appoint a committee to evaluate the effectiveness of triggering high-efficiency washing machine financial incentive programs operated by MOU signatories with programs operated by energy service providers. This committee will consist of 2 group 1 representatives, 2 group 2 representatives, and the Council Administrator or Executive Director or his/her designee. This BMP will be modified by the appointed committee to require agencies to implement financial incentive programs for high-efficiency washing machines whenever cost- effective and regardless of the absence of a program operated by an energy service provider if the committee concludes from available evidence the following: i) the Council has verified that significant water savings are available from high-efficiency washing machines; ii) there is widespread product availability; and iii) financial incentive programs offered by energy service providers in California have either not materialized, been largely discontinued or significantly scaled back. - 31 - EXHIBIT 1 Water Purveyor Responsibilities a) In conjunction with the Council, support local, state, and federal legislation to improve efficiency standards for washing machines. b) If an energy service provider or waste water utility within the service territory is offering a financial incentive for the purchase of high-efficiency washing machines, then the water agency shall also offer a cost-effective financial incentive based on the marginal benefits of the water savings. Incentive levels shall be calculated by using methods found in A Guide to Customer Incentives for Water Conservation prepared by Barakat and Chamberlain for the CUW A, CUWCC, and US EPA, February 1994. A water purveyor is not required to implement a financial incentive program if the maximum cost-effective rebate is less than $50. B. Implementation Schedule a) Agencies signing the MOU prior to December 31, 1997, implementation shall commence no later than July 1, 1999. b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no later than July 1 of the second year following the year the agency signed or became subjectto the MOU. C. Coveraae Reauirements Cost-effective customer incentive for the purchase of high-efficiency washing machine offered if incentives are being offered by local energy service providers or waste water utility. D. Reauirements for Documentina BMP Implementation a) Customer incentives to purchase high-efficiency washing machines being offered by local energy service providers, if any. b) Customer incentives to purchase high-efficiency washing machines being offered by agency, if any. E. Criteria to Determine BMP Implementation Status a) Agency has determined if energy service providers or waste water utilities operating within service territory offer financial incentives for the purchase of high-efficiency washing machines. - 32- EXHIBIT 1 b) If energy service provider or waste water utility operating within agency's service territory is offering financial incentives, agency has calculated cost-effective customer incentive using methods found in A Guide to Customer Incentives for Water Conservation prepared by Barakat and Chamberlain for the CUW A, CUWCC, and US EPA, February 1994, and is offering this incentive to customers in service territory. F. Water Savinas Assumptions The interim estimate of reliable annual water savings per replacement of a low- efficiency washing machine with a high-efficiency washing machine is 5,100 gallons, which is the mean yearly water savings derived from THELMA study data on water savings and washing machine load frequencies. Signatory water suppliers may use an estimate of annual water savings exceeding 5,100 gallons at their discretion I and may also select a lower estimate, so long as it is not below 4,600 gallons per year per retrofit, and there is a data supported reason for adopting an estimate lower than 5,100 gallons. - 33- EXHIBIT 1 7. PUBLIC INFORMATION PROGRAMS A. 1m plementation Implementation shall consist of at least the following actions: a) Implement a public information program to promote water conservation and water conservation related benefits. b) Program should include, but is not limited to, providing speakers to employees, community groups and the media; using paid and public service advertising; using bill inserts; providing information on customers' bills showing use in gallons per day for the last billing period compared to the same period the year before; providing public information to promote water conservation practices; and coordinating with other government agencies, industry groups, public interest groups, and the media. B. Implementation Schedule a) Agencies signing the MOU prior to December 31, 1997, implementation shall commence no later than July 1, 1998. b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no later than July 1 of the first year following the year the agency signed or became subject to the MOU. C. Coveraae Reauirements Agencies shall maintain an active public information program to promote and educate customers about water conservation. D. Reauirements for DocumentinQ BMP Implementation a) Number of public speaking events relating to conservation during reporting period. b) Number of media events relating to conservation during reporting period. c) Number of paid or public service announcements relating to conservation , produced or sponsored during reporting period. d) Types of information relating to conservation provided to customers. e) Annual budget for public information programs directly related to conservation. - 34- . EXHIBIT 1 E. Criteria to Determine BMP Implementation Status Agency has implemented and is maintaining a public information program consistent with BMP 7's definition. F. Water SavinQs Assumptions Not quantified. - 35- EXHIBIT 1 8. SCHOOL EDUCATION PROGRAMS A. Implementation Implementation shall consist of at least the following actions: a) Implement a school education program to promote water conservation and water conservation related benefits. b) Programs shall include working with school districts and private schools in the water suppliers' service area to provide instructional assistance, educational materials, and classroom presentations that identify urban, agricultural, and environmental issues and conditions in the local watershed. Education materials shall meet the state education framework requirements, and grade appropriate materials shall be distributed to grade levels K-3, 4-6, 7-8, and high school. B. Implementation Schedule a) Agencies signing the MOU prior to December 31,1997, implementation shall commence no later than July 1, 1998. b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no later than July 1 of the first year following the year the agency signed or became subject to the MOU. C. Coveraae Reauirements Agencies shall maintain an active school education program to educate students in the agency's service areas about water conservation and efficient water uses. D. Reauirements for Documenfina BMP Implementation a) Number of school presentations made during reporting period. b) Number and type of curriculum materials developed and/or provided by water supplier, including confirmation that curriculum materials meet state education framework requirements and are grade-level appropriate. c) Number of students reached. d) Number of in-service presentations or teacher's workshops conducted during reporting period. e) Annual budget for school education programs related to conservation. - 36- EXHIBIT 1 E. Criteria to Determine BMP Implementation Status Agency has implemented and is maintaining a school education program consistent with BMP 8's definition. F. Water Savinas Assumptions Not quantified. - 37- EXHIBIT 1 9. CONSERVATION PROGRAMS FOR COMMERCIAL, INDUSTRIAL, AND INSTITUTIONAL (CII) ACCOUNTS A. Implementation Implementation shall consist of at least the following actions: BOTH (a) AND (b) (a) CII Accounts Identify and rank commercial, industrial, and institutional (CII) accounts (or customers if the agency chooses to aggregate accounts) according to water use. For purposes of this BMP, CII accounts are defined as follows: Commercial Accounts: any water use that provides or distributes a product or service, such as hotels, restaurants, office buildings, commercial businesses or other places of commerce. These do not include multi-family residences, agricultural users, or customers that fall within the industrial or institutional classifications. Industrial Accounts: any water users that are primarily manufacturers or processors of materials as defined by the Standard Industrial Classifications (SIC) Code numbers 2000 through 3999. Institutional Accounts: any water-using establishment dedicated to public service. This includes schools, courts, churches, hospitals, and government facilities. All facilities serving these functions are to be considered institutions regardless of ownership. (b) CII ULFTs Within one year of the adoption of this BMP, the Council shall establish long- term implementation targets for the replacement of high-water-using toilets with ULFTs in the CII sector. Implementation targets will be based on the findings of the Council CII ULFT Water Savings Study. AND EITHER (c) OR (d) (c) CII Water-Use Survey and Customer Incentives Program Implement a CII Water-Use Survey and Customer Incentives Program. Develop a customer targeting and marketing strategy to provide water use surveys and customer incentives to CII accounts such that 10% of each CII sector's - 38- EXHIBIT 1 accounts are surveyed within 10 years of the date implementation is to commence. Directly contact (via letter, telephone, or personal visit) and offer water use surveys and customer incentives to at least 10% of each CII sector on a repeating basis. Water use surveys must include a site visit, an evaluation of all water-using apparatus and processes, and a customer report identifying recommended efficiency measures, their expected payback period and available agency incentives. Within one year of a completed survey, follow-up via phone or site visit with customer regarding facility water use and water saving improvements. Track customer contacts, accounts (or customers) receiving surveys, follow-ups, and measures implemented. The method for crediting water use surveys completed prior to the revision of this BMP is described in Section E. (d) CII Conservation Performance Targets Achieve a water use reduction in the CII sectors equaling or exceeding the CII Conservation Performance Target. Implement programs to achieve annual water use savings by CII accounts by an amount equal to 10% of the baseline use of CII accounts in the agency's service area over a ten year period. The target amount of annual water use reduction in CII accounts is a static value calculated from the baseline amount of annual use. Baseline use is defined as the use by CII accounts in 1997. Water purveyors may justify to the Council the use of an alternative baseline year. B. Implementation Schedule (a) Agencies signing the MOU prior to December 31,1997, implementation shall commence no later than July 1, 1999. (b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no 'later than July 1 of the second year following the year the agency signed or became subject to the MOU. (c) The coverage requirement for this BMP, as specified in Section C of this Exhibit, shall be realized within 10 years of the date implementation was to commence. - 39- EXHIBIT 1 C. Coverage ReQuirements EITHER (a) CII Water Use Survey and Customer Incentives Program 10% of each of the CII sector's accounts to accept a water use survey within 10 years of the date implementation is to commence. For the purposes of calculating coverage, 10% of CII accounts means the number of accounts equal to 10% of CII accounts in 1997 or the year the agency signed the MOU, whichever is later. OR (b) CII Conservation Performance Targets Reduce annual water use by CII accounts by an amount equal to 10% of the annual baseline water use within 10 years of the date implementation is to commence. D. ReQuirements for Documentina BMP Implementation (a) CII Accounts The number of accounts (or customers) and amount of water use within each of the CII sectors. AND EITHER (b) OR (c) (b) CII Water Use Survey and Customer Incentives Program 1) The number of CII accounts (or customers) offered water use surveys during the reporting period. 2) The number of new water use surveys completed during the reporting period. 3) The number of follow-ups completed during the reporting period. 4) The type and number of water saving recommendations implemented. 5) Agency's program budget and actual program expenditures. - 40- EXHIBIT 1 (c) CII Conservation Performance Target The estimated reduction in annual water use for all CII accounts due to agency programs, interventions, and actions. Agencies must document how savings were realized and the method and calculations for estimating savings. E. Criteria to Determine BMP Implementation Status (a) CII Accounts Agency has identified and ranked by water use its CII accounts. AND EITHER (b) OR (c) OR (d) (b) CII Water Use Survey and Customer Incentives Program 1) Agency has developed and implemented a strategy targeting and marketing water use surveys to CII accounts (or customers) by the end of the first reporting period following the date implementation is to commence. 2) Agency is on schedule to complete surveys for 10% of commercial accounts, 10% of industrial accounts, and 10% of institutional accounts within 10 years of the date implementation is to commence. Agencies may credit 50% of the number of surveys completed prior to July 1, 1996 that have not received follow-up verification of implementation, and 100% of the number of surveys completed prior to July 1, 1996 that have received a follow-up survey. Agencies may credit 100% of the number of surveys completed after July 1, 1996 against the coverage requirement. 3) Agencies will be considered on track if the percent of CII accounts receiving a water use survey, in aggregate, equals or exceeds the following: 0.5% of the total number of surveys required by end of first reporting period following date implementation is to commence; 2.4% by end of second reporting period; 4.2% by end of third reporting period; 6.4% by end of fourth reporting period; and 9.0% by end of fifth reporting period. (c) CII Conservation Performance Targets 1) Agency is on schedule to reduce water use by CII accounts by an amount equal to 10% of baseline use (as defined in Section A) for CII accounts within 10 years of the date implementation is to commence. 2) Agencies will be considered on track if estimated savings as a percent of baseline water use equals or exceeds the following: 0.5% by end of first - 41 - EXHIBIT 1 reporting period following date implementation is to commence; 2.4% by end of second reporting period; 4.2% by end of third reporting period; 6.4% by end of fourth reporting period; and 9.0% by end of fifth reporting period. 3) Credited water savings must be realized through agency actions performed to increase water use efficiency within the CII sector. Agencies may credit 100% of estimated annual savings of interventions since 1991 that have been site verified, and 25% of estimated annual savings of interventions that have not been site verified. 4) Agencies may claim the estimated savings for regulations, ordinances, or laws intended to increase water use efficiency by the CII sector, subject to the review and approval of the savings estimates by the Council. To avoid double counting, agencies justifying savings on the basis of rate structure changes may not claim savings from any other actions undertaken by CII customers, third parties, or the agency. (d) Combined Targets Agencies may choose different tracks for different CII sectors, and will be considered in compliance with this BMP if they are on track to meet each applicable coverage requirement for each sector. In addition, agencies may implement both tracks for a given CII sector, and will be considered in compliance with this BMP if the percent of surveys completed and the percent of water savings realized, when added together, equals or exceeds the applicable compliance requirement. For example, at the end of the second reporting cycle an agency would be considered on track to meet the coverage requirement if the percent of surveys completed and the percent of water savings achieved, when added together, equaled or exceeded 2.4%. Agencies may combine tracks only if they make a convincing demonstration that savings attributable to counted surveys are not also included in their estimate of water savings for meeting the water savings performance track. F. Water SavinQs Assumptions Commercial water reduction results from Best Management Practices such as Interior and Landscape Water Surveys, Plumbing Codes, and Other Factors but exclude Ultra Low Flush Toilet Replacement. (Includes savings accounted for in other BMPs) Estimated reduction in gallons per employee per day in year 2000 use occurring over the period 1980-2000: 12%. - 42- EXHIBIT 1 Industrial water reduction results from Best Management Practices, Waste Discharge Fee, New Technology, Water Surveys, Plumbing Codes and Other Factors, but exclude Ultra Low Flush Toilet Replacement. (Includes savings accounted for in other BMPs) Estimated reduction in gallons per employee per day in year 2000 use occurring over the period 1980-2000: 15%. - 43- EXHIBIT 1 10. WHOLESALE AGENCY ASSISTANCE PROGRAMS A. Implementation Implementation shall consist of at least the following actions: Financial Support a) Wholesale water suppliers will provide financial incentives, or equivalent resources, as appropriate and beneficial, to their retail water agency customers to advance water conservation efforts and effectiveness. b) All BMPs implemented by retail water agency customers which can be shown to be cost-effective in terms of avoided cost of water from the wholesaler's perspective, using Council cost-effectiveness analysis procedures, will be supported. Technical Support Wholesale water agencies shall provide conservation-related technical support and information to all retail agencies for whom they serve as a wholesale supplier. At a minimum this requires: c) Conducting or funding workshops addressing the following topics: i) Council procedures for calculating program savings, costs and cost- effectiveness. ii) Retail agencies' BMP implementation reporting requirements. iii) The technical, programmatic, strategic or other pertinent issues and developments associated with water conservation activities in each of the following areas: ULFT replacement; residential retrofits; commercial, industrial and institutional surveys; residential and large turf irrigation; and conservation-related rates and pricing. d) Having the necessary staff or equivalent resources available to respond to retail agencies' technical and programmatic questions involving the Council's BMPs and their associated reporting requirements. - 44- EXHIBIT 1 Program Management e) When mutually agreeable and beneficial, the wholesaler may operate all or any part of the conservation-related activities which a given retail supplier is obligated to implement under the BMP's cost-effectiveness test. The inability or unwillingness of the wholesaler to perform this function, however, in no way relieves or reduces the retailer's obligation to fully satisfy the requirements of all BMPs which are judged cost-effective from the retailer's perspective. Water Shortage Allocations f) Wholesale agencies shall work in cooperation with their customers to identify and remove potential disincentives to long-term conservation created by water shortage allocation policies,; and to identify opportunities to encourage and reward cost-effective investments in long-term conservation shown to advance regional water supply reliability and sufficiency. B. Implementation Schedule a) Agencies signing the MOU prior to December 31, 1997, implementation shall commence no later than July 1, 1999. b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no later than July 1 of the second year following the year the agency signed or became subject to the MOU. C. Coveraae Reauirements a) Cost-effectiveness assessments completed for each BMP the agency is potentially obligated to support. The methodology used will conform to Council standards and procedures, and the information reported will be sufficient to permit independent verification of the cost-effectiveness calculations and of any exemptions claimed on cost-effectiveness grounds. b) Agency avoided cost per acre-foot of new water supplies. The methodology used will conform to Council standards and procedures, and the information reported will be sufficient to permit independent verification of the avoided cost calculations. c) The total monetary amount of financial incentives and equivalent resources provided to retail members to assist, or to otherwise support, the implementation of BMPs. - 45- EXHIBIT 1 d) The total amount of verified water savings achieved by each wholesaler-assisted BMP. D. Reauirements for Documentina BMP Implementation a) The total monetary amount of financial incentives and equivalent resources provided to retail members to assist, or to otherwise support, the implementation of BMPs, subtotaled by BMP. b) The total amount of verified water savings achieved by each wholesaler-assisted BMP. E. Criteria to Determine BMP Implementation Status a) Timely and complete reporting of all information as provided for above under "Reporting and Record Keeping Requirements." b) Offering workshops covering all topics listed above under "Technical Support." c) Timely reconciliation of wholesaler and retailer BMP reports as provided for above under "BMP Reporting." F. Water Savinas Assumptions Not quantified. - 46- EXHIBIT 1 11. CONSERVATION PRICING A. Implementation Implementation methods shall be at least as effective as eliminating non-conserving pricing and adopting conserving pricing. For signatories supplying both water and sewer service, this BMPapplies to pricing of both water and sewer service. Signatories that supply water but not sewer service shall make good faith efforts to work with sewer agencies so that those sewer agencies adopt conservation pricing for sewer service. a) Non-conserving pricing provides no incentives to customers to reduce use. Such pricing is characterized by one or more of the following .components: rates in which the unit price decreases as the quantity used increases (declining block rates);rates that involve charging customers a fixed amount per billing cycle regardless of the quantity used; pricing in which the typical bill is determined by high fixed charges and low commodity charges. b) Conservation pricing provides incentives to customers to reduce average or peak use, or both. Such pricing includes: rates designed to recover the cost of providing service; and billing for water and sewer service based on metered water use. Conservation pricing is also characterized by one or more of the following components: rates in which the unit rate is constant regardless of the quantity used (uniform rates) or increases as the quantity used increases (increasing block rates); seasonal rates or excess-use surcharges to reduce peak demands during summer months; rates based upon the longrun marginal cost or the cost of adding the next unit of capacity to the system. c) Adoption of lifeline rates for low income customers will neither qualify nor disqualify a rate structure as meeting the requirements of this BMP. CUWCC Rate Impact Study Within one year of the adoption of this BMP revision, the Council shall undertake a study to determine the relative effect of conservation rate structure influence on landscape and indoor water use. The study shall develop sample areas that incorporate varying rate structure environments (e.g., low, uniform commodity rates,; high uniform commodity rates; increasing block rates, etc.). As praCtical, the study shall utilize direct metering of customer end uses, and shall control for weather, climate, land use patterns, income, and other factors affecting water use patterns. If the study shows significant potential savings, as determined by a balanced committee of voting Council representatives, a revised pricing BMP containing numeric targets or other appropriate standards shall be developed for a Council vote. - 47- EXHIBIT 1 B. Implementation Schedule a) Agencies signing the MOU prior to December 31, 1997, implementation shall commence no later than July 1, 1998. b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no later than July 1 of the first year following the year the agency signed or became subject to the MOU. C. Coveraae Reauirements Agency shall maintain rate structure consistent with BMP 11's definition of conservation pricing. D. Reauirements for Documentina BMP Implementation a) Report annual revenue requirement by customer class for the reporting period. b) Report annual revenue derived from commodity charges by customer class for the reporting period. c) Report rate structure by customer class for water service and sewer service if provided. E. Criteria to Determine BMP Implementation Status Agency rate design shall be consistent with the BMP 11's definition of conservation pricing. F. Water Savinas Assumptions Not quantified. - 48- EXHIBIT 1 12. CONSERVATION COORDINATOR A. Implementation Implementation shall consist of at least the following actions: a) Designation of a water conservation coordinator and support staff (if necessary), whose duties shall include the following: i) Coordination and oversight of conservation programs and BMP implementation; ii) Preparation and submittal of the Council BMP Implementation Report; iii) Communication and promotion of water conservation issues to agency senior management; coordination of agency conservation programs with operations and planning staff; preparation of annual conservation budget; participation in the Council, including regular attendance at Council , meetings; and preparation of the conservation elements of the agency's Urban Water Management Plan. b) Agencies jointly operating regional conservation programs are not expected to staff duplicative and redundant conservation coordinator positions. B. Implementation Schedule a) Agencies signing the MOU prior to December 31,1997, implementation shall commence no later than July 1, 1998. b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no later than July 1 of the first year following the year the agency signed or became subject to the MOU. C. Coveraae Reauirements Agency shall staff and maintain the position of conservation coordinator and provide support staff as necessary. D. Reauirements for Documentina BMP Implementation a) Conservation Coordinator name, staff position, and years on job. b) Date Conservation Coordinator position created by agency. - 49- EXHIBIT 1 c) Number of Conservation Coordinator staff. d) Duties of Conservation Coordinator and staff. E. Criteria to Determine BMP Implementation Status a) Creating and staffing a Conservation Coordinator position within the agency organization. b) Providing the Conservation Coordinator with the necessary resources to implement cost-effective BMPs and prepare and submit Council BMP Implementation Reports. F. Water Savinas Assumptions Not quantified. .50 - EXHIBIT 1 13. WATER WASTE PROHIBITION A. Implementation Implementation methods shall be enacting and enforcing measures prohibiting gutter flooding, single pass cooling systems in new connections, non-recirculating systems in all new conveyer car wash and commercial laundry systems, and non-recycling decorative water fountains. Signatories shall also support efforts to develop state law regarding exchange-type water softeners that would: (1) allow the sale of only more efficient, demand-initiated regenerating (DIR) models; (2) develop minimum appliance efficiency standards that (a) increase the regeneration efficiency standard to at least 3,350 grains of hardness removed per pound of common salt used; and (b) implement an identified maximum number of gallons discharged per gallon of soft water produced; (3) allow local agencies, including municipalities and special districts, to set more stringent standards and/or to ban on-site regeneration of water softeners if it is demonstrated and found by the agency governing board that there is an adverse effect on the re- claimed water or groundwater supply. Signatories shall also include water softener checks in home water audit programs and include information about DIR and exchange-type water softeners in their educational efforts to encourage replacement of less efficient timer models. B. Implementation Schedule a) Agencies signing the MOU prior to December 31,1997, implementation shall commence no later than July 1, 1998. b) Agencies signing the MOU or becoming subject to the MOUafter December 31, 1997, implementation shall commence no later than July 1 of the first year following the year the agency signed or became subject to the MOU. C. Coveraae Reauirements Agency shall adopt water waste prohibitions consistent with the provisions for this BMP specified in Section A of this Exhibit. D. Reauirements for Documentina BMP Implementation Description of water waste prohibition ordinances enacted in service area. - 51 - EXHIBIT 1 E. Criteria to Determine BMP Implementation Status Agency's water waste prohibition ordinances meet the requirements of the BMP definition. F. Water Savinas Assumptions Not quantified. - 52- EXHIBIT 1 14. RESIDENTIAL ULFT REPLACEMENT PROGRAMS A. Implementation Implementation shall consist of at least the following actions: a) Implementation of programs for replacing existing high-water-using toilets with ultra-Iow- flush (1.6 gallons or less) toilets in single-family and multi-family residences. b) Programs shall be at least as effective as requiring toilet replacement at time of resale; program effectiveness shall be determined using the methodology for calculating water savings in Exhibit 6 of this MOU. After extensive review, on July 30 1992, the Council adopted Exhibit 6, "ASSUMPTIONS AND METHODOLOGY FOR DETERMINING ESTIMATES OF RELIABLE SAVINGS FROM THE INSTALLATION OF ULF TOILETS." Exhibit 6 provides a methodology for calculating the level of effort required to satisfy BMP 14. B. Implementation Schedule a) Agencies signing the MOU prior to December 31,1997, implementation shall commence no later than July 1, 1998. b) Agencies signing the MOU or becoming subject to the MOU after December 31, 1997, implementation shall commence no later than July 1 of the first year following the year the agency signed or became subject to the MOU. c) The coverage requirement for this BMP, as specified in Section C of this Exhibit, shall be realized within 10 years of the date implementation was to commence. C. Coveraae Reauirements Water savings from residential ULFT replacement programs to equal or exceed water savings achievable through an ordinance requiring the replacement high- water-using toilets with ultra-low-flow toilets upon resale, and taking effect on the date implementation of this BMP was to commence and lasting ten years. D. Reauirements for Documentina BMP Implementation a) The number of single-family residences and multi-family units in service area constructed prior to 1992. - 53- EXHIBIT 1 b) The average number of toilets per single-family residence; the average number of toilets per multi-family unit. c) The average persons per household for single-family residences; the average persons per household for multi-family residences. d) The housing resale rate for single-family residences in service area; the housing resale rate for multi-family residences in service area. e) The number of ULFT installations credited to the agency's replacement program, by year. f) Description of ULFT replacement program g) Estimated cost per ULFT replacement. h) Estimated water savings per ULFT replacement E. Criteria to Determine BMP Implementation Status Calculated ULFT replacement program water savings at the end of each reporting period are within 10% of calculated retrofit-on-resale water savings, using Exhibit 6 methodology and water savings estimates. F. Water Savinas Assumptions See Exhibit 6. - 54- EXHIBIT 1 POTENTIAL BEST MANAGEMENT PRACTICES This section contains Potential Best Management Practices (PBMPs) that will be studied. Where appropriate, demonstration projects will be carried out to determine if the practices meet the criteria to be designated as BMPs. Within one year of the initial signing of this MOU, the Council will develop and adopt a schedule for studies of these PBMPs. 1. Rate Structure and other Economic Incentives and Disincentives to Encourage Water Conservation. This is the top priority PBMP to be ~tudied. Such studies should include seasonal rates; increasing block rates; connection fee discounts; grant or loan programs to help finance conservation projects; financial incentives to change landscapes; variable hookup fees tied to landscaping; and interruptible water service to large industrial, commercial or public customers. Studies on this PBMP will be initiated within 12 months from the initial signing of the MOU. At least one of these studies will include a pilot project on incentives to encourage landscape water conservation. 2. Efficiency Standards for Water Using Appliances and Irrigation Devices 3. Replacement of Existing Water Using Appliances (Except Toilets and Showerheads Whose Replacements are Incorporated as Best Management Practices) and Irrigation Devices. 4. Retrofit of Existing Car Washes. 5. Graywater Use 6. Distribution System Pressure Regulation. 7. Water Supplier Billing Records Broken Down by Customer Class 8. SwjmmingPool and Spa Conservation including Covers to Reduce Evaporation 9. Restrictions or Prohibitions on Devices that use Evaporation to Cool Exterior Spaces. 10. Point of Use Water Heaters, Recirculating Hot Water Systems and Hot Water Pipe Insulation. 11. Efficiency Standards for New Industrial and Commercial Processes. - 55- EXHIBIT 2. CALIFORNIA URBAN WATER CONSERVATION COUNCIL 1. The California Urban Water Conservation Council (the "Council") will be comprised of a representative of each of the signatories to the MOU. 2. The Council will be housed by California Urban Water Agencies ("CUWA"). The Council will act independently of CUWA on all technical and policy issues. CUWA will be responsible for the initial funding and ensuring that the Council's administrative and general office needs are met. CUW A will retain the right to withdraw from this relationship at any time upon 180 days written notice to the Council. The Council recognizes that its funding requirements may exceed what CUWA is prepared to contribute and that alternative funding may be needed. 3 The Council's responsibilities and authorities include: a. Recommending study methodologies for Best Management Practices ("BMPs"), including procedures for assessing the effectiveness and reliability of urban water conservation measures. b. Developing guidelines including discount rate to be used by all signatories in computing BMP benefits and costs pLirsuant to Exhibit 3. c. Reviewing and modifying the economic principles set forth in Exhibit 3. d. Collecting and summarizing information on implementation of BMPs and Potential Best Management Practices ("PBMPs"). e. Adopting or modifying BMPs and PBMPs lists. f. Adopting or modifying reliable water conservation savings data for BMPs. g. Adopting or modifying the schedules of implementation for existing and new BMPs. h. Adopting or modifying the schedules for research and demonstration projects for BMPs and PBMPs. I. Coordinating and/or making recommendations regarding BMPs study and demonstration projects. j. Accepting or denying requests for additional parties to join the MOU and assigning additional parties to one of the three signatory groups as described in Section 1.3 of the MOU. k. Reviewing and modifying report formats. I. Making annual reports to the State Water Resources Control Board and the Council Members on the above items based on the format described in Exhibit 5. - 56- EXHIBIT 2 m. Within two years of the initial signing of this MOU, developing and implementing procedures and a funding mechanism for independent evaluation of the MOU process at the Council and signatory levels. n. Undertaking such additional responsibilities as the Members may agree upon. 4. The Council will make formal reports to the State Water Resources Control Board and to the governing bodies of all Council Members. Such reports shall include a formal annual written report. Other reports such as status reports and periodic updates may be prepared as deemed appropriate. by the Council. Any Member of the Council will be entitled to review draft reports and comment on all reports. Such comments shall be included in any final report at the Member's request. 5. It is anticipated that the Council will develop a committee structure, which will include a Membership Committee as described in Section 7.2 of the MOU. A Steering Committee and one or more technical committees may also be needed. 6. For purposes of the Council, signatories will be divided into three groups: water suppliers ("Group 1"), public advocacy organizations ("Group 2") and other interested groups ("Group 3") as those terms are defined in Section 1 of the MOU. Members of Groups 1 and 2 shall be members of the Council and shall possess all voting rights. Members of Group 3 shall not have voting rights, but shall act in an advisory capacity to the Council. 7. Decisions by the Council to undertake additional responsibilities; to modify the MOU itself; or to modify Exhibits 2 or 3 require the following: a. The Council will provide notice to all signatories giving the text of the proposed action or modification at least 60 days in advance of the vote by the Council. b. To pass the action or modification, there must be a vote in favor of the action or modification, by at least 2/3 of the members of Group 1 voting, including votes made in person or in writing, and a vote in favor of the action or modification by at least 2/3 of the members of Group 2 voting, including votes made in person or in writing. 8. All other modifications and Council actions shall be undertaken as follows: There must be a vote in favor of the modification or action by a simple majority of the members of Group 1 voting, including votes made in person or in writing, and a vote in favor of the modification or action by a simple majority of the members of Group 2 voting, including votes made in person or in writing. - 57- EXHIBIT 3. PRINCIPLES TO GUIDE THE PERFORMANCE OF BMPECONOMIC (COST-EFFECTIVENESS) ANAL YSIS 1. The total cost-effectiveness of a conservation measure will be measured by comparing the present value of the benefits of the measure listed in paragraph 3 below to the present value of the costs listed in paragraph 4. The measure will be cost-effective if the present value of the benefits exceeds the present value of the costs. 2. The cost-effectiveness of a conservation measure to the water supplier will be measured by comparing the present value of the benefits described in paragraph 5 to the present value of the costs described in paragraph 6. The measure will be cost-effective if the present value of the benefits exceeds the present value of the costs. 3. Total benefits exclude financial incentives received by water suppliers or by retail customers. These benefits include: a. avoided capital costs of production, transport, storage, treatment, wastewater treatment and distribution capacity. b. avoided operating costs, including but not limited to, energy and labor. c. environmental benefits and avoided environmental costs. d. avoided costs to other water suppliers, including those associated with making surplus water available to other suppliers. e. benefits to retail customers, including benefits to customers of other suppliers associated with making surplus water available to these suppliers. 4. Total program costs are those costs associated with the planning, design, and implementation of the particular BMP, excluding financial incentives paid either to other water suppliers or to retail customers. These costs include: a. capital expenditures for equipment or conservation devices. b. operating expenses for staff or contractors to plan, design, or implement the program. c. costs to other water suppliers. d. costs to the environment. e. costs to retail customers. 5. Program benefits to the water supplier include: a. costs avoided by the water supplier of constructing production, transport, storage, treatment, distribution capacity, and wastewater treatment facilities, if any. b. operating costs avoided by the water supplier, including but not limited to, energy and labor associated with the water deliveries that no longer must be made. - 58- EXHIBIT 3. c. avoided costs of water purchases by the water supplier. d. environmental benefits and avoided environmental costs. e. revenues from other entities, including but not limited to revenue from the sale of water made available by the conservation measure and financial incentives received from other entities. 6. Program costs to the water supplier include: a. capital expenditures incurred by the water supplier for equipment or conservation devices. b. financial incentives to other water suppliers or retail customers. c. operating expenses for staff or contractors to plan, design, or implement the program. d. costs to the environment. 7. The California Urban Water Conservation Council ("Council") will be responsible for developing guidelines that will be used by all water suppliers in computing BMP benefits and costs. These guidelines will include, but will not be limited to, the following issues: a. analytical frameworks. b. avoided environmental costs. c. other impacts on the supply system that may be common to many water suppliers. d. time horizons and discount rates. e. avoided costs to non-water supply agencies. f. benefits and costs to retail customers. g. benefits of water made available to other entities as a result of conservation efforts. These guidelines will recognize the uniqueness of individual water suppliers and will therefore not impose excessive uniformity. [Note: In September 1996, the Council adopted "Guidelines for Preparing Cost- Effectiveness Analyses of Urban Water Conservation Best Management Practices"] 8. Within these guidelines, each water supplier will be responsible for analyses of the cost- effectiveness of particular BMPs on its system. These analyses will be reviewed by the Council. 9. The Council will also be responsible for periodically reviewing the overall framework set forth in this Exhibit. - 59- EXHIBIT 4. FORM LETTER TO SWRCB John Caffrey, Chairman, and Members State Water Resources Control Board 901 "P" Street Sacramento, California 95801 Subject: Bay/Delta Proceedings: Urban Water Conservation Dear Chairman Caffrey and Members: We are pleased to forward to you a copy of a "Memorandum of Understanding Regarding Urban Water Conservation in California" recently entered into by many urban water suppliers, public advocacy organizations, and other interested groups. This Memorandum of Understanding was developed over a period of many months of fact-gathering and intensive negotiations. It commits the signatory water suppliers to good faith implementation of a program of water conservation which embodies a series of "Best Management Practices" for California's urban areas. It also commits all of the signatories to an ongoing, structured process of data collection through which other conservation measures, not yet in general use, can be evaluated as to whether they should be added to the list of Best Management Practices. Finally, it commits all signatories to recommending to this Board that the Best Management Practices identified in this Memorandum of Understanding be taken as the benchmark for estimating reliable savings for urban areas which utilize waters affected by the Bay/Delta proceedings, An important part of this program is the signatories' recognition of the need to provide long-term reliability for urban water suppliers and long-term protection of the environment. To carry out these commitments, please be advised that each of the signatories has endorsed making the following recommendations to this Board: 1. That for purposes of the present Bay/Delta proceedings, implementation of the Best Management Practices process set forth in the Memorandum of Understanding represents a sufficient long-term water conservation program by the signatory water suppliers, recognizing that additional programs may be required during occasional water supply shortages. 2. That for purposes of the present Bay/Delta proceedings only, the Board should base its estimates of future urban water conservation savings on implementation of all of the Best Management Practices included in Section A of Exhibit 1 to the Memorandum of Understanding for the entire service area of the signatory water suppliers and only on those Best Management Practices, except for (a) the conservation potential for water supplied by urban agencies for agricultural purposes, or (b) in cases where higher levels of conservation have been mandated. 3. That for purposes of the present Bay/Delta proceedings, the Board should make its estimates of future urban water conservation savings by employing the reliable savings assumptions associated with those Best Management Practices set forth in Section C of Exhibit 1 to the Memorandum of Understanding. Measures for which reliable savings assumptions are not yet available should not be employed in estimating future urban water use. 4. That the Board should include a policy statement in the water rights phase of the present Bay/Delta proceedings supporting the Best Management Practices process described in the Memorandum of Understanding and should also consider that process in any documents it prepares pursuant to the California Environmental Quality Act as part of the present Bay/Delta proceedings. - 60- EXHIBIT 4 It should be emphasized that the Memorandum of Understanding does not contain projections of population for California and, accordingly, none of the signatories to the Memorandum of Understanding are agreeing to recommend that any specific population levels be used by the Board in estimating future water demands. Furthermore, it should be noted that the signatories have retained the right to advocate any particular level of protection for the Bay/Delta Estuary, including levels of freshwater flows, and that the Memorandum of Understanding is not intended to address any authority or obligation of the Board to establish freshwater flow protections or to set water quality objectives for the Estuary. The Memorandum of Understanding is also not intended to address any authority of the Environmental Protection Agency. Finally, as described in Section 5.1 of the MOU, the signatories have not limited their ability to propose different conservation practices, different estimates of savings or different processes in a forum other than the present BaylDelta proceedings or for non-urban water suppliers or for other water management issues. Public advocacy organization signatories have not agreed to use the initial assumptions of reliable conservation savings in proceedings other than the present Bay/Delta proceedings. The signatories may present other assumptions of reliable conservation savings for non-signatory water suppliers in the Bay/Delta proceedings, provided that such assumptions could not adversely impact the water supplies of signatory water suppliers. The Memorandum of Understanding establishes an ongoing process for study and research in the field of urban water conservation and an organizational structure to support this effort, which is described in Exhibit 2 to the Memorandum of Understanding. The process is dynamic and contemplates periodic revisions to the list of Best Management Practices, as well as refinements to the savings assumptions based on continuing field studies. The California Urban Water Conservation Council will forward updated lists of Best Management Practices and updated savings assumptions to the Board as they become available. However, for the present Bay/Delta proceedings, the measures and savings assumptions listed on Exhibit 1 should be used as described above. The Memorandum of Understanding is a significant accomplishment and one of which all tt.le parties are proud. We hope it will be of value to the Bo.ard in the complex and important Bay/Delta proceedings. By copy of this letter, we are forwarding these recommendations to the Environmental Protection Agency. Very Truly Yours, Name of Signatory By: cc: Administrator U.S. Environmental Protection Agency 401 "M" Street, SW Washington, D.C. 20460 Regional Adminisfrator, Region IX U.S. Environmental Protection Agency 215 Fremont Street San Francisco, California 94105 - 61 - EXHIBIT 5. SWRCB ANNUAL REPORT OUTLINE I. Executive Summary II. Implementation Assessment Water Suppliers' Report Findings Comments Progress Public Advocacy Organizations' Report Findings Comments Progress. III. Survey Results for 199X Summary of Survey Responses Table _' Per Capita Usage [by region] Table _' Status of BMP Implementation [by supplier] Table _' Proposed Implementation Schedules Interpretation of Survey Responses Lack of Data Climatic Influences . Implementation Difficulties Evaluation of Results IV. Trend Analysis Comparison with Prior Years Table _' Per Capita Usage [by region] Projected Conservation Table _' Schedule of Implementation Updated Estimates of Future Savings [by region] Evaluation of Progress . V. Studies of Best Management Practices Assessment of Current BMPs Table _' Evaluation of Effectjveness [by measure and region] - 62- EXHIBIT 5 Assessment of Potential BMPs Status of Current Studies Proposed Future Studies Revision of Lists of Current and Potential BMPs. Additions and Deletions Other Modifications to MOU or Exhibits VI. Recent Developments Legislative Update Program Funding Case Studies Residential Conservation Industrial Conservation Irrigation Efficiency Legal Actions National Practices Technical Advances Publications VII. Council Committee Activities VIII. Funding Levels IX. Staffing Levels X. Substantiated Findings by Signatory Water Supplier in Support of Use of Exemptions XI. Substantiated Findings in Support of Use of Alternative Schedule of Implementation Appendices List of Signatories [subcommittee members noted] Key Correspondence and Comments - 63- EXHIBIT 6. ASSUMPTIONS AND METHODOLOGY FOR DETERMINING ESTIMATES OF RELIABLE WATER SAVINGS FROM THE INSTALLATION OF ULF TOILETS. July 1992 Approved June 30,1992 California Urban Water Conservation Council SUMMARY On June 30, 1992, the California Urban Water Conservation Council (Council) adopted the assumptions and methodology described in this report for determining estimates of reliable water savings from the installation of ULF toilets. The Council voted to provide only a method for estimating ULF toilet conservation potential, not specific estimates for different regions or agencies. The methodology presented here was explicitly developed to balance simplicity and accuracy. The method allows a water agency to customize the estimate of conservation potential by using service- area-specific information on household demographics, composition of housing stock, and turnover rates of real estate. Agencies lacking service area specific information can use regional averages. Given the large supply of conserved water that ULF toilets represent, the Council feels that the method's adjustments of estimated conservation potential for different local conditions is well worth the extra effort. The first step required to estimate a given area's conservation potential is to assess water savings likely to result per ULF toilet retrofit. We provide a scheme for adjusting estimates of water savings that were realized by first-year participants in the Los Angeles and Santa Monica toilet rebate programs to make these estimates suitable for other service areas. Water savings estimates for participating households in Los Angeles and Santa Monica were derived through sophisticated statistical models based on data provided by over 23,000 households covering a seven year period1. These reliable estimates of conservation form the best basis for extrapolating to other service areas. These estimates should not be used directly, but must be adjusted for three service- area-specific factors: 1) people per household; 2) toilet retrofits per household; and 3) the mix of pre-1980 and post-1980 toilets. The method and assumptions presented here apply to three separate ULF-toilet-related Best Management Practices (BMPs) in the Memorandum of Understanding (MOU). BMP 14 requires water suppliers to implement programs for replacement of existing high water- using toilets with ultra-low-flush toilets (1.6 gallon or less) in residential commercial, and industrial buildings. As per BMP 14, such programs should be at least as effective as offering rebates of up to $100 for each replacement that would not have occurred without the rebate, or 1See The Conserving Effect of Ultra Low Flush Toilet Rebate Programs, Chesnutt, T., A. Bamezai, C. McSpadden, A & N Technical Services, June 1992, and related reports listed in Appendix A. - 64- EXHIBIT 6 requiring replacement at the time of resale, or requiring replacement at the time of change of service. BMP 14 lists three alternatives that indicate compliance. The Subcommittee selected the second alternative, a bill requiring replacement of non-ULF toilets with ULF toilets when a property exchanges hands, as a quantifiable way for determining each service area's water conservation target. Furthermore, this framework allows the assessment of both the total water conservation target for each service area and the rate at which these targets must be met. BMP 14 differs from other BMPs in that it is defined in terms of water savings instead of a level of activity. Restated, water savings targets implied by BMP 14 come from calculating the effect of ULF replacement of all non-ULF toilets at the time of resale or exchange. This requires combining information about estimated per-household water savings with information about housing turnover rates and the natural toilet replacement rate. We present detailed analyses for a hypothetical service area to describe the methodology in detail. According to the MOU, water suppliers will commit to saving water that is implied by BMP 14 through ULF toilet retrofit programs. This should not be interpreted to mean that such a legislation will actually be in place. It is a hypothetical scenario that is to be used for determining urban water conservation targets for each service area. Any water conservation program will be acceptable as long as it saves water that is implied by BMP 14; these program choices rest solely with each service area2. Water suppliers will calculate the amount of water to be saved for BMP 14 using the method described herein, and then achieve that targeted amount using a ULF program of their own choice. As stated in the MOU, the Council voted and agreed that estimates of reliable savings potential are to be used. The Council agreed that the reliable estimate lies in the 50 percent to 90 percent range of statistical confidence. The Council did not reach consensus on the exact level of reliability to be used in calculating estimates of ULFT conservation potential. This issue is to be resolved at the next plenary session in September. Until such time as a precise level of desired reliability in estimated savings can be formally addressed by the Council, it should be noted that the magnitude of ULFT conservation potential does not change substantially under different assumptions. Due to the high quality of the statistical data, the agreed 50 to 90 percent range translates to a difference in estimated conservation of only three percent. The Council recognizes that the estimates of reliable savings can be changed as better information become available. The Council has decided to postpone a formal recommendation on estimates of ULFT conservation potential for the commercial/industrial retrofits. Presently available data is too weak to support a 2 For example, although a legislation that requires ULF retrofits upon resale'or exchange implies that all non-ULF toilets in a home must be replaced when it is sold, this need not be the actual goal of a toilet retrofit program. The evaluation of ULF toilet rebate programs shows that the first toilet retrofit in a home is far more effective than subsequent retrofits, and that retrofits in multiple family complexes are more effective than retrofits in single family households. Thus, by increasing the coverage of ULF toilet rebate programs instead of within-household penetration, and emphasizing retrofits in multiple family complexes over retrofits in single family households, a water supplier may be able to achieve water savings implied by BMP 14 using a smaller number of ULF toilet replacements. - 65- EXHIBIT 6 reliable estimate. Studies are currently underway to address the conservation potential of commercial/industrial ULFT retrofits, and the Council expects to address this issue next year. I. INTRODUCTION There are several ways that currently proposed BMP's can produce savings from ULF toilets. The 1991 plumbing code requires installation of ULF toilets in new construction. Additionally, if the State of California enacts legislation banning the sale and installation of non-ULF toilets, the result will be the natural replacement of existing toilets with ULF toilets as and when existing toilets begin to malfunction, are damaged, or households decide to remodel their bathrooms. Programs that affect the replacement of non-ULF toilets with ULF toilets (BMP 14), would additionally affect the existing housing stock. This report describes a methodology for quantifying the conservation targets under BMP 14. In particular, the ULF Toilet Subcommittee has selected ULF replacement-upon-resale-or-exchange legislation as a quantifiable way for determining ULF conservation targets (under BMP 14) over a period of 10 years. The calculations required to quantify this legislation, and hence BMP 14, also yield information on the water saving potential of the other ULF-related BMP's. To keep estimates of ULF conservation potential accurate, it is important not to double count conservation from the different types of ULF programs. Our basic method can be described as multiplying how much water ULF toilets save in a household by the number of households affected. Both of these quantities will vary in different service areas and are discussed in turn. First, the quantity of water likely to be saved by a ULF toilet retrofit will vary in different service areas because of differences in household characteristics and age of the housing stock. Section II describes how we estimate water savings from ULF retrofits for different service areas. Second, the number of affected homes will vary in different service areas due to differences in housing turnover rates and differences in the rate at which toilets are naturally replaced because of either damage, malfunction, or bathroom remodeling. Since, at the time of malfunction or breakdown some toilets are likely to be retrofitted with ULF toilets, the net water saving effect of BMP-14 will be overstated if this is not taken into account. Section III deals with this second set of issues. Section IV contains illustrative calculations for a hypothetical service area. II. ESTIMATING PER-HOUSEHOLD WATER SAVINGS The household water saving estimates are based on the evaluation of Los Angeles' and Santa Monica's ULF toilet rebate programs. Using the results of this evaluation it was possible to quantify how household water savings vary with the number of people that reside in a household, the number of toilets that are retrofitted in a home, and the type of toilet replaced. Thus, to extrapolate water savings estimates to other service areas requires three pieces of information at the service area level: - 66- EXHIBIT 6 . Average number of people per household . Average number of toilets per household . Mix of pre-1980 and post-1980 toilets To simplify the calculation of how these factors are related to expected household water savings, planning tables are provided for single and multiple family households. Table 1 shows expected average water savings per single family household per day corresponding to different service area characteristics (persons per household and toilets per household.) Table 2 shows similar information for multiple family units. So, for example, if in a service area the average number of people that reside in single family homes is 2.7 and the average number of toilets per single family home is 2, then approximately 43.3 gallons of water will be saved per day if both toilets are replaced with ULF toilets3. The water savings estimates shown in Tables 1 and 2 make no adjustment for differences in the mix of pre-1980 and post-1980 toilets4. If information about the existing mix of toilets is available the water saving estimates can be further refined. The default values implied by the planning tables reflect the combined experience of Los Angeles and Santa Monica--approximately 7.5 percent of all toilets replaced in single family households and 12.5 percent replaced in multiple family units were of the post-1980 (3.5 gallon/flush) variety. If water planners know how their service area differs from this mix of toilets, the following section describes how to incorporate that information. Based on the data available from the first year of ULF rebate programs, we estimate that retrofitting a post-1980 (3.5 gl./flush toilet) saves 20 percent less than retrofitting a pre-1980 toilets. If one does know the proportion of post-1980 toilets in a service area, then this information can be used 3If in a service area, the average number of people residing in single family homes exceeds 3, we recommend choosing a water savings estimate from Table 1 assuming the average is 3. This is because we had only a handful of households that reported having greater than 3 residents and therefore we were unable to derive reliable estimates of water savings for these larger households. The error this approximation is likely to produce is minimal because we found that, in general, water savings grow less than linearly as population density increases in a household. 4Effective January 1, 1978, all new dwelling units and lodging rooms in California were required to have toilets that used no more than 3.5 gallons per flush. Though there was no grace period in the law, it is widely believed that implementation and enforcement of this law was initially spotty. We have selected 1980 as the effective year of implementation. The requirement for 3.5 gallon-per-flush toilets was extended to virtually all new construction, effective January 1, 1983. (An exemption was allowed for blowout toilets used in some public restrooms.) 5 Our estimate is an empirical one based on observed retrofits in Los Angeles and Santa Monica. It can differ from theoretical calculations based upon design specifications of toHets meeting the 1980 plumbing code versus those that do not for several reasons. Toilets may use less on average if they were designed conservatively or they may use more if the earlier 1980-compliant designs resulted in more double flushes. Many supposedly 5-7 gl./flush toilets actually use 4-5 gl/flush in laboratory tests. Furthermore, the average rate at which toilets develop leaks and the preexisting installation of toilet dams or bags can alter theoretical calculations. Since no one knows, or can know, the true average amount of water used per flush across the mix of installed toilets in a service area, we believe this issue is moot. - 67- EXHIBIT 6 to adjust any of the estimates of conservation. Since the overall mean net conservation provided in Tables 1 and 2 is a weighted average of pre- and post 1980 toilets, we can back out separate savings estimates for pre-1980 and post-1980 toilets. These estimates can then be applied to the proportion of the housing stock that has each type of toilet. The adjustment factors come from combining our knowledge of the proportion of post- 1980 toilets (7.5 percent in single family homes) with how much less water retrofits of post-80 toilets save relative to pre-1980 toilets (about 20 percent). We state the following two equations: NSF = ~ost-80 *_.075*+ Npre-8o * .925 post-80 -.8 Npre-8o and solve for Npre-80 and Npost-80 in terms of the overall single family mean NSF: Npre-80 = NSF + (.8 * .075 + .925) == NSF * 1.015 Npost-80==NSF* 1.015*.8 ==NSF * .812 (1 ) Changing for the proportion of post-80 toilets in the multiple family sample (about 12.5 percent), we can find the comparable relationships between the multiple family overall savings and pre-/post-80 toilet savings: Npre-8o = NFM + (.8 * .125 + .875) == NMF *1.0255 Npost-80 == NMF * 1.026 * .8 == NMF * .8205 (2) Thus, if there is information on the mix of pre-/post-1980 toilets in a service area, the overall mean water savings given in Tables 1 and 2 should be separated into its two components: the mean for pre-1980 toilets and the mean for post-1980 toilets. For single family households, the mean for pre- 1980 toilets can be derived by multiplying the overall mean from Table 1 by 1.015 and the mean for post-1980 toilets can be derived by multiplying the overall mean from Table 1 by 0.812. For multiple family households, the mean for pre-1980 toilets can be derived by multiplying the overall mean from Table 2 by 1.0255 and the mean for post-1980 toilets can be derived by multiplying the overall mean from Table 2 by 0.8205. ... - 68- ~ 0 m ~ ~ 0 M M m N N ~ N ~ ~ ~ ~ m m m ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ "'C o "': <'!<D....."!m"!~C!~<D~ ..c: N N~<DI'-,....~~~,....<D~ Q) ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ (J) :;, o M NM~m<DONO<D~<D I N ~M~~<O~~~<D~"; - ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ c ~ N ~~~~N,....mm~~~ ~ N m..... M ..; ~ ~ ~ Lri ~ ~ M '^ ~ M~~~~~~~~~~ C, o ~ ..c: ..... ~~mO~~<D<.o~~m ~ ~ N ~O.....MM";~~";MN CJ) 3: M~~~~~~~~~~ '- Q) (J) - ca m 0 om"':<D",:~~~.....,....m ~ L... 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C\I (t) ~ L(') <'! r-- ex:> 0') 0 ro ~ S ~~ T"" T"" T"" T"" T"" C\I C\I C\I C\I C\I C\I C\I C\I C\I C\I ('I') Q) 00:::::: ~ .Q ~ ~ ~ ro o c.. ~ ~ Q) (]) :5 - ~ 0 co ~ ~ "0 C) E C Q) C ~ C ~ co c: ~ ~ ~ N ro E ~ ~ - ~ ~ w m I- EXHIBIT 6 Reliability The estimates given in Tables 1 and 2 represent the expected value of household savings in an entire service area--i.e., there is a fifty percent chance that the realized savings will exceed the estimate and a fifty percent chance that the realized savings will be less than the estimate. Suppose that a different kind of estimate is desired--one that can be met or exceeded 90 percent of the time. The second estimate incorporates the idea of reliability; sometimes SO/50 odds of being right or wrong are not good enough. The charter of many public utilities requires them to provide a public good in a reliable fashion. Also, the MOU on Water Conservation calls for the use of "estimates of reliable water savings" for water resource planning that incorporates urban water conservation achievements. If a water utility wants to incorporate estimates of the water saved through ULF toilet programs as a means of reliably meeting future wat~r demand, then the water utility needs an estimate of water savings that incorporates the desired level of reliability. The estimates in Tables 1 and 2 can be adjusted to reflect any desired level of reliability. We estimate a within-sample standard error surrounding the estimates in Tables 1 and 2 of about two and a half percent. A standard normal Z table can be used to translate the desired level of reliability into a Z-value--the number of standard errors away from the expected value that one must move to attain a higher level of reliability. A desired reliability of 90 percent, for example, implies that the expected value of household savings should be lowered about 1.28 standard errors. In our case, this translates into an estimate that is (1.28*2.5 percent =) 3.2 percent lower. In other words, there are sufficient data in this case so that this expression of "reliable savings" is quite close to the expected values shown in the tables. However, estimates of water savings likely to be achieved from other BMPs may be much less well defined and as a result may differ significantly from the expected values. In such cases, the concept of planning for reliable savings will assume qualitatively more importance. III. ESTIMATING TOILETS REPLACED BECAUSE OF HOUSING TURNOVER Existing non-ULF toilets can be replaced with ULF toilets for reasons other than a legislation that requires retrofit upon resale or exchange. For example, toilets break down, malfunction, and are usually replaced when households remodel their bathrooms. Given that the State of California is considering another separate piece of legislation that would ban the sale and installation of non- ULF toilets in the state, it is very likely that a large number of old toilets will be replaced with ULF toilets purely as a result of the normal toilet replacement cycle. If this is not taken into account, one will overstate the water-saving effectiveness of a legislation that requires retrofit upon resale or exchange. To account for these complexities, we estimate the water-saving effectiveness of retrofit upon sale or exchange legislation by calculating the water that will be saved if it were in place and the amount of water that would be saved anyway in the absence of such legislation. There are at least seven factors that can affect estimates of net water savings attributable to a legislation that requires ULF toilet retrofits upon resale or exchange. . Housing demolition rate . Housing turnover rate . Natural toilet replacement rate . Existing mix of toilets - 71 - EXHIBIT 6 . Type of new toilet used for replacement . Average number of people and toilets per household . Changes in household size over time Of these seven factors, changes in average household size over time can be safely ignored because it is unlikely to change appreciably over a period of ten years which is the focus of this analysis. Information about the average number of people and toilets per household, and the existing mix of pre-1980 and post-1980 toilets are required to forecast per-retrofit water savings-- this was discussed in detail in Section II. For the remaining factors--that is, the housing demolition rate, the housing turnover rate, the natural toilet replacement rate, and type of new toilet used for replacement--water planners should use data that is relevant to their own service area. Although some amount of uncertainty naturally surrounds estimates of the above factors, it is largest in the case of the natural toilet replacement rate and the type of new toilet that is likely to be used for replacement. To assess the extent to which this uncertainty affects estimates of the water-saving potential of BMP 14, we performed detailed sensitivity analyses. A total of six scenarios were considered for the sensitivity analysis. It is generally agreed that, on average, a toilet lasts anywhere from 20 to 30 years, although some claim to have seen toilets as old as 50-60 years. Assuming that toilets are replaced at an annual rate of 3 percent implies that after 30 years approximately 40 percent [(1-0.03)30] of toilets of this vintage would still be around; with a replacement rate of 7 percent this number declines to 11 percent [(1-0.07)30] which can be considered the other end of the range. We performed sensitivity analyses assuming the natural toilet replacement rate is 3 percent,S percent and 7 percent. The sensitivity analyses also considered two additional scenarios corresponding to each natural toilet replacement rate that pertain to the type of toilets that are likely to be used to replace old malfunctioning toilets. In the first scenario we assume that all toilets that are naturally replaced are retrofitted with 1.6 gallon ULF toilets. This is a very likely scenario given that legislation banning the sale and installation of non-ULF toilets is being considered in the state of California. In the other scenario, we assumed that 50 percent of toilets naturally replaced are retrofitted with ULF toilets in the base year and that this proportion increases to 100 percent by the end of the 10-year analysis period. We found that the results were relatively insensitive to these assumptions. The 10-year cumulative water savings derived from these six scenarios were within 015 percent of the average. The ULFT subcommittee proposes that service areas use a natural toilet replacement rate of 4 percent and assume that all toilets naturally replaced will be retrofitted with 1.6 gallon/flush ULF toilets for their area-specific calculations. The next section describes illustrative calculations performed for a hypothetical service area. SAMPLE CALCULATION FOR A HYPOTHETICAL SERVICE AREA In this section, we present detailed calculations for a hypothetical service area to demonstrate the method of calculating conservation targets. Single family and multiple family homes are analyzed separately. This scenario is based on a natural rate of toilet changeout of 4 percent per year, and that all new retrofits are of the 1.6 gallon-per-flush variety. - 72- EXHIBIT 6 Table 3 shows the data used for this sample calculation. For example, in this service area,-publicly available data on real-estate sales suggest that 30 percent of all single family homes and 42 percent of all multiple family complexes were sold at least once in the last five years. This is typically the format in which real-estate transactions data are available. This five-year estimate can be transformed into an annual turnover rate using the following formula: (1 - p)5 = (1 - S) Where S is the proportion of the stock that was sold at least once during the five year period and P is the annual turnover rate. We apply a different turnover rates for the single family and the multiple family housing stock. Table 3 Data Used in Sample Calculation Parameter Single Family Multiple . Familv Annual housinQ demolition rate 0.5% 0.5% Annual housinQ turnover rate 6.9% 10.3% . Annual toilet replacement rate 4.0% 4.0% No. of homes with old pre-1980 toilets 700,000 420,000 No. of homes with 3.5 gal. (post-1980) 250,000 210,000 toilets No. of homes with 1.6 Qal. toilets 50,000 70,000 AveraQe persons per household 3.25 2.47 Average toilets per household 2.16 1.20 NOTE: Homes already with 1.6 gallon/flush toilets are excluded from the analysis. After establishing the home turnover rate, the next step is to estimate average water savings per household per day using information contained in Section II. For single family households (Table 1), average household water savings corresponding to 3.25 people per household (refer footnote 1) and 2.16 toilets per household is approximately 43.4 gallons per day. As mentioned earlier, estimated water savings represent a weighted mix of pre-1980 and post-1980 (3.5 gl./fl.) toilets. To illustrate how to adjust these estimates for a specific service area, use the relations listed in Section II to incorporate the service area specific data in Table 3. From Equation (1) for single family homes, pre-1980 toilet retrofits are estimated to save approximately 44 gallons/day and post-1980 toilets are estimated to save 35.2 gallons/day. For a 90 level of reliability, these estimates are lowered 3.2 percent to 42.6 gallons/day and 34.1 gallons per day. The similar calculation for - 73- EXHIBIT 6 multiple family complexes uses Table 2 and Equation (2), savings pre-1980 toilet retrofits are estimated to save approximately 48.2 gallons/day and post-1980 toilets are estimated to save 38.6 gallons/day. Changing this expected value to a 90 percent reliable value gives 46.7 gallons per day and 37.4 gallons per day. We first calculate water savings assuming no retrofit-upon-resale legislation is in effect and that all savings result from the normal cycle of toilet replacements (Tables 4 and 6). These results can be interpreted as savings that would result from a legislation that bans the sale and installation of non- ULF toilets in the State of California. Next we estimate water savings that result from the combined effect of natural changeout combined with a retrofit-upon-resale-or-exchange legislation (Tables 5 and 7). The difference between the two then is the net water-saving effect of a legislation that requires replacement of non-ULF toilets with ULF toilets at the time of resale or exchange (BMP 14). Table 8 shows these estimates of net water conservation (or conservation targets) that the particular service area in question will have to achieve over the course of the next 10 years. For example, in 1993 the total target is (2822 single family net + 3026 multiple family net =) 5848 acre feet. In the next year, additional conservation of (2412 single family net + 2487 multiple family net =) 4899 acre feet is added to the previous year's target for a total cumulative savings target of (5848 AF + 4899 AF =) 10747 acre-feet. Figures 1 through 3 plot the cumulative savings targets for BMPs 2B and 14 over the course of 10 years. Note that the conservation targets implied by BMP14 (Figure 3) has a curved shape. This is a complete result of the assumed ULF retrofits--in the later years, more and more of the homes that are sold have already been retrofitted with ULF toilets. Note that the conservation targets are listed in acre-feet per year not toilets per year. To meet the water conservation targets, that ampunt of water specified in Table 8 must conserved through ULF efforts. Since multiple family retrofits save more than single family retrofits and the first toilet retrofit per household saves more than the second or third retrofits, it is possible to design ULF conservation programs that conserve the same amount of water using fewer toilets. Thus, issues of program design are intimately linked with the effort and costs that will have to be incurred to meet these conservation targets. - 74- EXHIBIT 6 Table 4 Single Family Natural Replacement Only BMP 2b Homes Toilets Annual Annual Year Housing Naturally Naturally Water Savings Cumulative Stock Retrofitted Retrofitted (AF/yr) Savings (AF/yr) 1992 950,000 0 0 0 0 1993 912,190 37,810 81,670 1,709 1,709 1994 875,885 36,305 78,419 1,641 3,350 1995 841,025 34,860 75,298 1,576 4,926 1996 807,552 33,473 72,301 1,513 6,439 1997 775,411 32,141 69,424 1 ,453 7,891 1998 744,550 30,861 66,661 1,395 9,286 1999 714,917 29,633 64,007 1,339 10,626 2000 666,483 28,454 61,460 1,286 11,912 2001 659,142 27,321 59,014 1,235 13,147 2002 632,908 26,234 56,665 1,186 14,333 Note: Water savings are from a weighted mix of pre-1980 and post-1980 toilets, Table 5 Single Family: Natural Replacement and Housing Turnover (BMP2b and BMP 14) Year Housing Homes Home Total Total Annual Annual Stock Naturally Turnove Homes Toilets Water Cumulative Retrofitted r Retrofitted Retrofitted Savings Savings (AF/yr) (AF/yr) 1992 950,000 0 0 0 0 0 0 1993 849,758 37,810 62,432 100,242 216,522 4.531 4,531 1994 760,094 33,820 55,844 89,665 193,675 4,053 8,584 1995 679,890 30,252 49,952 80,203 173,239 3,625 12,209 1996 608,150 27,060 44,681 71,740 154,959 3,243 15,452 1997 543,979 24,204 39,966 64,171 138,608 2,901 18,352 1998 486,580 21,650 35,749 57,399 123,983 2,594 20,947 1999 435,237 19,366 31,977 51,343 110,900 2,321 23,267 2000 389,312 17,322 28,603 45,925 99,198 2,076 25,343 2001 348,232 15,495 25,585 41,079 88,731 1,857 27,200 2002 311,488 13,860 22,885 36,745 79,369 1,661 28,861 - 75- EXHIBIT 6 Table 6 Multiple Family: Natural Replacement Only - Year Housing Homes Toilets Annual Annual Stock Naturally Naturally Water Cumulative Retrofitted Retrofit Savings (AF/yr) Savings 1992 630,000 0 0 0 0 1993 604,926 25,074 30,089 1,224 1,224 1994 580,850 24,076 28,891 1,175 2,369 1995 557,732 23,118 27,741 1,129 3,528 1996 535,534 22,198 26,637 1,064 4,611 1997 514,220 21,314 25,577 1,040 5,652 1998 493,754 20,466 24,559 999 6,651 1999 474,103 19,651 23,582 959 7,610 2000 455,233 18,869 22,643 921 8,531 2001 437,115 18,118 21,742 884 9,416 2002 419,718 17,397 20,877 849 10,265 Table 7 Multiple Family: Natural Replacement and Housina Turnover Year Housing Homes Home Total Total Annual Annual Stock Naturally Turnov Home Toilets Water Cumulative Retrofitted er Retrofitte Retrofitte Savings Savings d d (AF/yr) (AF/yr) 1992 630,000 0 . 0 0 0 0 0 1993 542,943 25,074 61,983 87,057 . 104,468 4,250 4,250 1994 467,916 21,609 53,418 75,027 90,032 3,663 7,912 1995 403,257 18,623 46,036 64,659 77,591 3,156 11,069 1996 347,533 16,050 39,675 55,724 66,869 2,720 13,789 1997 299,509 13,832 34,192 48,024 57,629 2,344 16,133 1998 258,121 11,920 29,467 41,388 49,665 2,020 18,154 1999 258,121 10,273 25,395 35,669 42,802 1,741 19,895 2000 222,452 8,854 21,886 30,740 36,888 1,501 21,395 2001 165,221 7,630 18,862 26,492 31,790 1,293 22,689 2002 142,390 6,576 16,255 22,831 27,397 1,115 23,803 - 76- o ~ ~ "<t 0 N M ~ ~ ~ ~ ~ "<t "<t N ~ "<t ~ N ~ N ~ en _g> a.. ~ ~ ~ ..- ~ ..- ~ N M 0 ~ I~ ~~ ri ci ~ ~ ci M ~ ~ ~ ~ 'S;: ca m ..-..-..-NNNNNN ca U) C/) C1> > _ ~ 0..- ~ ~ ..- ~ 0 N ~ ~ "<t 1ii~ ca ~ a..~ ~ ~ ~ "<t ~ 0 ~ M ~ ~ 3~ ~+o ~+ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ E<3: m E mm ~ ~ M ~ "<t ~ M ~ ~ N ~ Z ~ N ..- N N M M "<t "<t "<t ~ () ro _ 0 M ~ MOM ~ ~ M M ~ ~ ca M"<t~~"<tMM"<t~~ .. 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T'"" ~ ""0 .- 0 0 0 c:: Q) Q) 0 I . . 0 .... > ... C'CI 0 0 . 0 10 Q) ~ . I . . 0) > E C'CI 0 0 0 . 0 0) c:: ~ ::J . 0 . . T'"" ... :J C/) E 0 0 0 . .... w . I . . . OJ .... ::J 0 0 . c:: 0 0 -::t '00 Q) . 0 . 0 0) :J Z 0 0 . 0 0) 0 ..c:: . 0 . 0 T'"" 0 0 . 0 E 0 . 0 e I . . - 0 0 0 ('i) In 0) OJ . I . 0) c:: . 0 . 0 T'"" 'S; co 0 0 . . In 0 0 0 0 'tJ 0 . . I . Q) 0 . . 0 0 N .... 0) co 0 . I I 0 0) E 0 . 0 0 0 +J . T'"" In . . . . Q) .... Q) z 0 0 0 0 0 0 0 M 0 0 0 0 0 0 0 0 0 0 0 0 ~ 0 10 0 10 0 10 :J ('i) N N T'"" T'"" .2> LL Je8An88:;j-8J:::>V' U! S6U!AeS 8A!lelnwn~ EXHIBIT 6 V. ESTIMATING WATER SAVINGS FROM NEW CONSTRUCTION The analysis described above can be extended to evaluate water savings that will be achieved from new construction. For this analysis each service area will be required to forecast the rate of growth of new construction by type (single family, multiple family, and so on). The water savings calculations would be based on installation of 1.6 ULF toilets, assuming the implementation of the 1991 plumbing code, as opposed to installation of 3.5 gallon/flush toilets. - 81 - EXHIBIT 6 Appendix A. Overview of the ULF Toilet Rebate Evaluation Reports There are several reports that document the ULF toilet rebate evaluation in Los Angeles and Santa Monica. Each has a different focus and different intended audience. Ultra Low Flush Toilet Rebate Proarams in Southern California: Lessons For Water Manaaers and Planners. This is an overview report that presents the key findings from Los Angeles and Santa Monica related to ULF program design, justification, and evaluation. The Conservina Effect of Ultra Low Flush Toilet Rebate Proarams. This report contains the summary of findings about how much water was saved by the Los Angeles and Santa Monica ULF toilet rebate programs. This study requires no technical background and presents the evaluation and its findings in plain English. Continuous-Time Error Components Models of Residential Water Demand. This technical report documents the formal structure of the models of household water demand used in the evaluation of the Los Angeles and Santa Monica ULF toilet rebate programs. This study should be of interest to a technical audience concerned with statistical and analytic issues involved in estimating household water demand models from billing system data. Mappina the Conservina Effect of Ultra Low Flush Toilets: Implications for Plannina. This technical report presents an empirical approach to quantifying the conservation potential of ULF toilet retrofits. The analysis presented in this report can be used to provide quantitative answers to such questions as how much water would be saved by differently designed programs, or how much water ULF retrofit programs would save in other service areas. This study should be of interest to water planners and program managers interested in estimating the conservation potential of ULF retrofit programs in other service areas. Data Used in the Evaluation of the Los Anaeles and Santa Monica Ultra Low Flush Toilet Rebate Proarams. This backup report presents the inspection and telephone survey instruments that were used to collect the data, as also the tabulations of responses. - 82- EXHIBIT 7 BYLAWS OF CALIFORNIA URBAN WATER CONSERVATION COUNCIL ARTICLE I Name, Principal Office, Purpose and Restrictions 1.01 Name The name of the corporation is California Urban Water Conservation Council, a California nonprofit public benefit corporation (Council). 1.02 Principal Office The Board of Directors (Board) shall determine the location of the principal office of the corporation. 1.03 Purpose The purpose of the Council is to implement the Memorandum of Understanding Regarding Urban Water Conservation in California dated September 1991, as amended from time to time, among signatories comprised of water suppliers, public advocacy organizations and other interested groups (the MOU). 1.04 Restrictions All policies and activities of the Council shall be consistent with and limited by the MOU and shall also be consistent with: (a) Applicable federal, state and local antitrust and trade regulation laws; (b) Applicable tax-exemption requirements including that no part of the Council's net earnings inure to the benefit of any private individual; and (c) All other legal requirements including the California Nonprofit Corporation Law under which the Council is incorporated and to which its operations are subject, as amended from time to time. ARTICLE II MOU Signatory Groups 2.01 MOU SiQnatorv Groups. All participants in the Council must be signatories to MOU. Eligible signatories are: (1) water suppliers, (2) public advocacy organizations, and (3) other interested groups, as defined below. 2.02 Water Supplier Group. This group ("Group 1 ") consists of water suppliers, defined as any entity, including a city, which delivers or supplies water for urban use at the wholesale or retail level. 2.03 Public Advocacy OrQanization Group. This group ("Group 2") consists of public advocacy organizations. A public advocacy organization is defined as a nonprofit organization whose primary mission is protection of the environment, or who has a clear interest in advancing - 84- Exhibit 7. the Best Management Practices, and whose primary function is not the representation of trade, industrial or utility entities. 2.04 Other Interested Group. This group ("Group 3") includes other organizations with an interest in the purposes of the Council which are not included in Group 1 or Group 2. 2.05 Representatives. Each MOU signatory shall designate one representative to the Council. The signatory shall be responsible for informing the Council of the identity of its representative at all appropriate times. Signatories may also name substitute representatives to attend meetings in place of the designated representative. Substitute representatives have the same voting rights as the designated representative, but may not take th,e place of an officer of the Council. Only one representative from any signatory may vote within the Board, the Executive Committee or any other Council committee at any time. Designated and substitute representatives may be referred to collectively as "representatives" . 2.06 Membership This corporation shall have no members. ARTICLE III Fees 3.01 Fees The Board of Directors may recommend fees and assessments and set the terms of payment, which will be voluntary to the signatories. ARTICLE IV Board of Directors 4.01 Board of Directors The Board of Directors is the governing body of the Council and has authority and responsibility for the supervision, control, and direction of the Council. A meeting of the full Board may be referred to as a "Plenary session" or "Plenary meeting". 4.02 Composition. The Board shall consist of the representatives of Group 1 and Group 2 signatories. Representatives of Group 3 signatories shall be advisory directors. Advisory directors may attend and participate in meetings, but do not have a vote. 4.03 Term of Office. All representati~es will serve until replaced by the signatory they represent. 4.04 Meetings. The President, the Vice-president, the Secretary or 10 percent or more of the directors of each of Group 1 and Group 2 may call meetings of the Board. The Board shall hold its quarterly meeting(s) at the time and place it selects and may hold other regular meetings each year at the time and place it selects. 4.05 Notice. The Board may hold regular meetings without additional notice if the time and place of such meetings has been fixed by the Board and communicated to all Board members. - 85- Exhibit 7. The Board may hold special meetings upon seven days notice by first class mail or 48 hours notice delivered personally or by telephone or electronic media. 4.06 Quorum. A quorum of the Board shall be at least 30 representatives with voting rights, provided that at least 10 percent of the directors from each of Group 1 and Group 2 are present. 4.07 Board Action. Any decision by the Board to undertake responsibilities in addition to those listed in Exhibit 2, Section 3, of the MOU; to modify the MOU itself; or to modify Exhibits 2 or 3 of the MOU must be carried out according to the procedures in Exhibit 2, Section 7, of the MOU. All other Board actions, including modification of MOU Exhibits other than Exhibits 2 or 3 and modification of the Bylaws, require that a quorum be present at a properly noticed meeting of the Board, that a majority of the directors voting from Group 1 vote in favor of the action, and that a majority of the directors voting from Group 2 vote in favor of the action. The Board may modify the Bylaws and take other actions only to the extent that such actions are consistent with the then current version of the MOU. ARTICLE V Executive Committee 5.01 Executive Committee. The Board may delegate any of its authorities to an Executive Committee, provided the Committee shall report its actions to the Board at its next meeting. The Executive Committee may be referred to as the "Steering Committee". 5.02 Composition. Selection and Term The Executive Committee shall consist of voting and non-voting signatory members as follows: Board members representing Group 1 signatories shall select from among themselves up to eight signatories, whose representatives shall serve as voting members of the Executive Committee. Board members representing Group 2 signatories shall select from among themselves up to eight signatories, whose representatives shall serve as voting members of the Executive Committee. Advisory Board members representing Group 3 signatories shall select from among themselves up to four signatories, whose representatives shall serve as non-voting members of the Executive Committee. In addition, all officers of the Council are members of the Executive Committee and have the same voting rights on the Committee as other representatives of their respective Groups. The outgoing President shall be a non-voting member of the Executive Committee for the following term. The numbers of members of the Executive Committee shall be increased by the number of officers, except when one or more officers' have been .' independently selected as members of the Executive Com.mittee. Executive Committee members shall be selected at the last Board meeting of the calendar year and shall assume office starting January 1 of the following year for a term of two years. The terms will be staggered with half of the positions of each group being elected each year. Unlimited consecutive terms may be served. Group 1 and 2 Board members shall nominate from among themselves candidates for the Executive Committee in person or in writing at the third Plenary of the year prior to the start of a new two-year term. Write-in nominations must be received by the Council prior to the - 86- Exhibit 7. start of the Plenary session. Any nomination must be seconded by a Board member in person or in writing, and accepted by the nominee in person or in writing to be included on the ballot. The ballot of Group 1 and 2 candidates for the Executive Committee shall be included in the Plenary Packet of the final Plenary of the year prior to the start of a new two-year term. The Board shall vote on the ballot at the final Plenary of each year. Votes may be made in person or in writing. Write-in votes must be received prior to the start of the Plenary session to be counted. Group 1 and 2 Board members may vote for up to eight candidates from their respective Groups. The top eight candidates from Group 1 and the top eight candidates from Group 2, as ranked by number of votes received, shall be elected to the Executive Committee. If either Group 1 or Group 2 nominates less than eight candidates, all candidates from that Group shall be elected to the Executive Committee. 5.03 Vacancy. If a vacancy occurs on the Executive Committee for any reason, the remaining members of the affected Group will select a replacement for the un-expired term, subject to approval by the Executive Committee. 5.04 Number of Meetinas. The President of the Council, and any other persons designated by the Executive Committee, may call meetings of the Executive Committee. 5.05 Notice The Executive Committee may hold regular meetings without additional notice if the time and place of such meetings has been fixed by the Executive Committee and communicated to all members of the Executive Committee. The Executive Committee may hold special meetings upon seven days notice by first class mail or 48 hours notice delivered personally or by telephone or electronic media. 5.06 Quorum. A quorum of the Executive Committee shall be at least 50% of the total number of Group 1 and Group 2 Executive Committee members, provided that at least 2 members are present from each of Group 1 and Group 2. 5.07 Committee Action. All Executive committee actions require that a quorum be present, that a majority of the Executive Committee members voting from Group 1 vote in favor of the action, and that a majority of the Executive Committee Members voting from Group 2 vote in favor of the action. The Executive Committee may also act without meeting, provided that (1) the taking of the vote has previously been authorized by the Executive Committee; (2) the vote has received seven days notice by firs~ class mail or 48 hours notice delivered personally or by telephone or electronic media; and (3) the proposed action is approved by 50% or more of the Group 1 and 50% or more of the Group 2 members of the Executive Committee voting. The Executive Committee may take action without seeking Board approval only where the Board has delegated such authority to the Executive Committee and only to the extent that the action is consistent with the then current version of the MOU. ARTICLE VI - 87- Exhibit 7. Officers 6.01 Officers. The officers of the Council are President, Vice-President, Secretary and Treasurer. The President and Vice-President may be referred to as Convener and Vice- Convener, respectively. 6.02 Qualifications. Only designated representatives of signatories may serve as officers. In addition, the offices of President and Vice President may only be held by directors representing Group 1 or Group 2 signatories. No person may hold more than one office at the same time, except that one person may hold the offices of Secretary and Treasurer concurrently. 6.03 Selection and Term of Office. The officers shall be selected at the last Board meeting of the calendar year and assume office starting January 1 of the following year for a term of one year. The offices of President and Vice-President shall not be held by designees from the same Group. The office of President shall alternate between Group 1 and Group 2. The Board may specify that the Secretary and/or Treasurer will be members of Group 3. If so, then Group 3 will select these officers, subject to approval by the Board. The Board shall nominate candidates for the offices of President, Vice-President, Secretary, and Treasurer in person or in writing at the third Plenary of each year not less than 60 days prior to the Plenary during which the nominations are voted upon. Written nominations must be received by the Council prior to the start of the Plenary session. Any nomination must be seconded by a Board member in person or in writing, and accepted by the nominee in person or in writing to be included on the ballot. For the offices of President and Vice- President, Group 1 and 2 Board members may only nominate candidates for the office their Group will hold in the coming term. The ballot for the offices of President, Vice-President, Secretary, and Treasurer shall be included in the Plenary Packet of the final Plenary of each year. The Board shall vote on the ballot at the final Plenary of each year. Votes may be made in person or in writing. Write-in votes must be received prior to the start of the Plenary session to be counted. For the offices of President and Vice-President, Group 1 and 2 Board members may only vote for candidates for the office their Group will hold in the coming term. For each office, the candidate receiving the most votes will be awarded the office. 6.04 Duties. The officers perform those duties that are usual to their positions and that are assigned to them by the Board, including those duties that are set forth in the position descriptions for each officer as adopted by the Board from time to time. In addition, the President of the Council acts as Chair of the Board and the Executive Committee; the Vice- President acts in place of the President when the President is not available; and the Treasurer is the chief financial officer of the Council. 6.05 Vacancies. If a vacancy occurs among the officers, for any reason, the Executive Committee shall elect another designee from the same Group for the unexpired portion of the term. Signatories whose designee serves as an officer may not substitute another individual into that office. - 88- Exhibit 7. ARTICLE VII Executive Director 7.01 The Board of Directors may hire an Executive Director to perform such duties and be granted such powers as described and agreed upon by the Board. The Board may authorize the Executive Director to hire other such staff as may be necessary to perform business and management functions of the Council. The Executive Director serves at the pleasure of the Executive Committ-ee. The Executive Director has sole responsibility for management, control and retention of other staff. ARTICLE VIII Indemnification and Insurance 8.01 Indemnification To the fullest reasonable extent permitted by the law, the Council shall indemnify and hold harmless any agents subjected to a claim by reason of any alleged or actual action or inaction in the performance of their duties performed in good faith on behalf of the Council. "Agent" for this purpose shall include Directors, officers and employees. 8.02 Insurance. The Council shall have the right and shall purchase and maintain insurance on behalf of its agents against any liability asserted against or incurred by the agent in such capacity arising out of the agent's status as such. ARTICLE IX Policies, Rules, Interpretation v 9.01 Policies and Rules. The Board may establish policies, procedures and rules that are consistent with these Bylaws for the governance of the Council and its programs. 9.02 Interpretation. These Bylaws should be interpreted consistent with the California Nonprofit Corporation Law and must be interpreted so as to conform with that Law, as it is interpreted and amended from time to time. In cases of conflict between these Bylaws and the MOU, the language of the MOU shall prevail. ARTICLE X Nondiscrimination 10.01 Nondiscrimination. The corporation shall ensure equal employment opportunity for all persons, regardless of race, color, religion, sex, national origin, age, physical condition or disability, or other conditions within the limits imposed by law. These principles shall apply - 89- Exhibit 7. to all employment practices, to selection of consultants, contractors, and suppliers, and to all other applicable business practices of the corporation. ARTICLE XI Adoption of Bylaws 11.01 The Bylaws may be adopted, provided that: (1) a quorum of the signatories, as defined in Section 4.06 of the Bylaws, is present at a meeting noticed according to the requirements of Section 4.05 of the Bylaws; (2) a majority of the directors voting from Group 1 vote in favor of adoption; and (3) a majority of the directors voting from Group 2 vote in favor of the adoption. These Bylaws were adopted by the California Urban Water Conservation Council on December 7,1994 and were last amended on December 9,1998. - 90-