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HomeMy WebLinkAboutPH 4 WTR MGMNT PROG 03-04-91END DATE: TO: FROM: FEBRUARY 27, 1991 WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/WATER DIVISION PUBLIC HEARING N0. 4 3-4-91 Inter - Com SUBJECT: ORDINANCE NO. 1060 - ADOPTING A WATER MANAGEMENT PROGRAM RECOMMENDATION: That Tustin City Council conduct a public hearing for the consideration of an ordinance adopting a Water Management Program and if they find it appropriate, have first reading by title only and introduction of said ordinance. BACKGROUND: At their February 19, 1991 meeting, the City Council was provided a staff report and a draft of Ordinance No. 1060 for their information. The ordinance was scheduled to be returned to the City Council at their March 4, 1991 meeting, at which time a public hearing would be held and if the City Council deemed it appropriate Ordinance No. 1060 would have first reading by title only and introduction. The Council requested a copy of the Metropolitan Water District of Southern California (MWD) five staged program known as the Incremental Interruption and Conservation Program (IICP). A copy of the IICP is attached for their reference. The subject ordinance allows the City to enforce a water conservation program to reduce the quantity of water used by customers of the Tustin Water Service for the purpose of conserving the water supplies and to avoid or minimize the effects of any future shortage. A shortage would exist upon the occurrence of one or more of the following: 1. A general water supply shortage due to limited supplies. 2. Distribution or storage facilities of the MWD, the Municipal Water District of Orange County (MWDOC), the East Orange County Water District (EOCWD), or the City of Tustin become inadequate. 3. A major failure of the supply, storage and distribution facilities of the MWD, MWDOC, EOCWD or of the City of Tustin occurs. The attached ordinance does not address the specifics of any water rationing that could be imposed on the customers of the Tustin Water Service. These specifics will be discussed in an additional staff report under the New Business Section of the March 4, 1991 City Council Agenda. DISCUSSION: Staff is recommending some additional revisions to certain sections of Ordinance No. 1060, which was previously circulated to the City Council. These revisions are highlighted as follows: Section 6(B) on Page 2 has been revised to apply to statewide shortages in lieu of the MWD IICP. Section 6(C) 10 on Page 4 has been revised to add after the word purposes, the following: unless authorized as a mitigation measure or erosion control, compaction or backfilling earthwork or required by the Air Quality Management Plan (AQMP) Control Measure F-4. Section 8 on Page 6 has been eliminated. Section 8 on Page 6 this section was formerly referred to as Section 9. The reference to a three tiered rate structure has been removed and the specific citation amounts have been indicated. Section 9 on Page 6 this section was formerly referred to as Section 10 and has been changed to include the City Council or their designee as the final appeal body. Section 10 on Page 6 this section was formerly referred to as Section 11. A public hearing has been duly noticed for March 4, 1991 at 7:00 p.m. in the Council Chambers, 300 Centennial Way, Tustin, California for the Tustin City Council to consider an ordinance adopting a Water Management Program. After the City Council conducts the public hearing and if the Council determines it appropriate, staff recommends that Ordinance No. 1060 have first reading by title only and introduction. Bob Ledendecker Director of Public Works/City Engineer BL:ccg:blorl060 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 1060 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, FINDING AND DETERMINING THE NECESSITY FOR AND ADOPTING A WATER MANAGEMENT PROGRAM The City Council of the City of Tustin does hereby ordain as follows: SECTION 1. Declaration of Policy. California Water Code Sections 375 et seq. permit public entities which supply water at retail to adopt and enforce a water conservation program to reduce the quantity of water used by the people therein for the purpose of conserving the water supplies of such public entity. The City Council of the City of Tustin hereby establishes a comprehensive water conservation program pursuant to California Water Code Sections 375 et seq., based upon the need to conserve water supplies and to avoid or minimize the effects of any future shortage. SECTION 2. Findings. The City Council of the City of Tustin finds and determines that a water shortage will exist upon the occurrence of one or more of the following: (A) A general water supply shortage due to limited supplies. (B) Distribution or storage facilities of the Metropolitan Water District of Southern California, the Municipal Water District of Orange County, the East Orange County Water District, or the City of Tustin become inadequate. (C) A major failure of the supply, storage and distribution facilities of the Metropolitan Water District of Southern California, the Municipal Water District of Orange County, the East Orange County Water District, or of the City of Tustin occurs. The City Council of the City of Tustin also finds and determines that the conditions prevailing in State and in the Orange County area require that the water resources available be put to maximum beneficial use to the extent to which they are capable, and that the waste or unreasonable use, or unreasonable method of use, of water be prevented and that the conservation of such water encouraged with a view to the maximum reasonable and beneficial use thereof in the interests of the people of the City of Tustin and for the public welfare. SECTION 3. CEOA Exemption. The City Council of the City of Tustin finds that this Ordinance and actions taken hereafter pursuant to this Ordinance are exempt from the California Environmental Quality Act as specific actions necessary to prevent or mitigate an emergency pursuant to Public Resources Code Section 21080(b) (4) and the California Environmental Quality Act Guidelines Section 15269(c). 1 2 3 4 5 6 7 8 9 10, 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ordinance NN 1,060, Page 2 The City Manager of the City of Tustin is hereby authorized and directed to file a Notice of Exemption as soon as possible following adoption of this Ordinance. SECTION 4. Application. The provisions of this Ordinance shall apply to all persons, customers, and property served by the City of Tustin water service. SECTION 5. Authorization. designated representative is hereby the provisions of this Ordinance. The City Manager or a authorized and directed to implement SECTION 6. Water Conservation Stages. No customer of the City shall knowingly make, cause, use, or permit the use of water supplied by the City for residential, commercial, industrial, agricultural, governmental or any other purpose in a manner in excess of the amounts authorized by this Ordinance, or during any period of time other than the periods of time specified in this Ordinance. AT NO TIME SHALL WATER BE WASTED OR USED UNREASONABLY. The following stages shall take effect upon declaration as herein provided. (A) STAGE 1 - VOLUNTARY COMPLIANCE - WATER WATCH. STAGE 1 applies during periods when the possibility exists that the City will not be able to meet all of the demands of its customers. During STAGE 1, all elements of STAGE 2 shall apply on a voluntary basis only. (B) STAGE 2 - MANDATORY COMPLIANCE - WATER ALERT. STAGE 2 applies during periods when the probability exists that the City will not be able to meet all of the water demands of its customers or when statewide shortages cause a need for local conservation measures to be implemented. During STAGE 2, the following water conservation measures shall apply except when reclaimed or recycled water is used. 1. Lawn watering and landscape irrigation, including construction meter irrigation, is not permitted between the hours of 10:00 a.m. and 6:00 p.m. any day. Watering is permitted at any time if a hand-held hose equipped with a positive shut-off nozzle is used, a hand-held faucet -filled bucket of five (5) gallons or less is used, or a drip irrigation system is used. Watering shall be done as needed only. 2. Water shall not be used to wash down streets, gutters, sidewalks, driveways, parking areas, tennis courts, patios, pool decks, or other paved areas, except to alleviate immediate fire or sanitation hazards. 3. Washing of autos, trucks, mobile homes, buses, trailers, boats, airplanes and other types of mobile equipment shall be done with a hand-held bucket or a hand-held hose equipped with a positive shut-off nozzle 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ordinance N- 1060, Page 3 for quick rinses. Washing is permitted at any time on the immediate premises of a commercial car wash. Further, such washing is exempted from these regulations where health, safety and welfare of the public is contingent upon frequent vehicle cleaning such as garbage trucks and vehicles used to transport food and perishables. 4. Watering parks, school grounds, public facilities, and recreational fields is not permitted between the hours of 10:00 a.m. and 4:00 p.m. 5. Restaurants shall not serve water to their customers except when specifically requested. 6. The operation of any ornamental fountain or similar structure is prohibited unless reclaimed water is used. 7. Agriculture users and commercial nurseries as defined in the Metropolitan Water District Code are exempt from STAGE 2 irrigation restrictions, but will be required to curtail all non-essential water use. (C) STAGE 3 - MANDATORY COMPLIANCE - WATER WARNING. STAGE 3 applies during periods when the City will not be able to meet all the water demands of its customers. During STAGE 3, the following water conservation measures shall apply except when reclaimed or recycled water is used. 1. Lawn watering and landscape irrigation, including construction meter irrigation, is permitted only on designated irrigation days and only between the hours of 6:00 p.m. and 6:00 a.m. A "designated irrigation day" is determined by the last digit in the street address. Properties with addresses ending in an even number may use water on even numbered days and addresses ending with an odd number may use water on odd numbered days. 2. Water shall not be used to wash down streets, gutters, sidewalks, driveways, parking areas, tennis courts, patios, pool decks, or other paved areas, except to alleviate immediate fire or sanitation hazards. 3. Washing of autos, trucks, mobile homes, buses, trailers, boats, airplanes and other types of mobile equipment is prohibited. Washing is permitted at any time on the immediate premises of a commercial car wash. The use of water by all types of commercial car washes not using partially reclaimed or recycled water shall be reduced in volume by 20%. Further, such washings are exempted from these regulations where the health, safety and welfare of the public is contingent upon frequent vehicle cleaning such as garbage trucks and vehicles used to transport food and perishables. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ordinance N- 1060, Page 4 4. Watering parks, school grounds, public facilities, and recreational fields is permitted only after 6:00 p.m. and before 6:00 a.m. 5. The use of water from fire hydrants shall be limited to fire fighting and related activities, or other activities necessary to maintain the health, safety and welfare of the public. 6. Agricultural users and commercial nurseries shall use water only between the hours of 6:00 p.m. and 6:00 a.m. 7. Restaurants shall not serve water to their customers except when specifically requested. 8. The operation of any ornamental fountain or similar structure is prohibited. 9. All water leaks shall be repaired immediately. 10. Construction water shall not be used for earthwork or road construction purposes unless authorized as a mitigation or erosion control, compaction or backfilling earthwork or as required by the Air Quality Management Plan (AQMP) Control Measure F-4. 11. Exceptions: The prohibited uses of water are not applicable to that use of water necessary for public health and safety or for essential governmental services such as police, fire and other similar emergency services. (D) STAGE 4 - MANDATORY COMPLIANCE - WATER EMERGENCY. STAGE 4 applies when a major failure of any supply or distribution facility, whether temporary or permanent, occurs in the water distribution system of the State Water Project, Metropolitan Water District of Southern California, Municipal Water District of Orange County, East Orange County Water District or City facilities. During STAGE 4, the following water conservation measures shall apply except when reclaimed or recycled water is used: 1. All outdoor irrigation of vegetation is prohibited. 2. Water shall not be used to wash down streets, gutters, sidewalks, driveways, parking areas, tennis courts, patios, pool decks, or other paved areas, except to alleviate immediate fire or sanitation hazards. 3. Washing of autos, trucks, mobile homes, buses, trailers, boats, airplanes and other types of mobile equipment is prohibited. Washing is permitted at any time upon the immediate premises of a commercial car wash. The use of water by all types of commercial car washes shall be reduced in volume by 50%. Further, such washings are 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ordinance N, 1.060, Page 5 exempted from these regulations where the health, safety and welfare of the public is contingent upon frequent vehicle cleaning such as garbage trucks and vehicles used to transport food and perishables. 4. Filling, refilling or adding of water to swimming pools, spas, ponds and artificial lakes is prohibited. 5. Watering of parks, school grounds, public facilities and recreation fields is prohibited with the exception of plant materials classified to be rare, exceptionally valuable, or essential to the well being of rare animals. 6. The use of water from fire hydrants shall be limited to fire fighting or related activities necessary to maintain the health, safety and welfare of the public. 7. Use of water for agricultural or commercial nursery purposes, except for livestock watering, is prohibited. 8. Restaurants shall not serve water to their customers except when specifically requested. 9. The operation of any ornamental fountain or similar structure is prohibited. 10. New construction meters or permits for unmetered service will not be issued. Construction water shall not be used for earth work or road construction purposes. 11. The use of water for commercial, manufacturing or processing purposes shall be reduced in volume by 50%. 12. No water shall be used for air conditioning purposes. 13. All water leaks shall be repaired immediately. 14. Exceptions: The prohibited uses of water are not applicable to that use of water necessary for public health and safety or for essential governmental services such as police, fire and other similar emergency services. SECTION 7. Mandatory Conservation Phase Imalementation. The City shall monitor the projected supply and demand for water by its customers on a daily basis. The City Manager shall determine the extent of the conservation required through the implementation and/or termination of particular conservation stages in order for the City to prudently plan for and supply water to its customers. Thereafter, the City Manager may order that the appropriate stage of water conservation be implemented or terminated in accordance with the applicable provision of this Ordinance. The declaration of any stage beyond STAGE 1 shall be made by public announcement and notice shall be published a minimum of three (3) consecutive times in a newspaper of general circulation. The stage Ordinance Nn 1060, Page 6 1 designated shall become effective immediately upon announcement. The declaration of any stage beyond STAGE 1 shall be reported to the City 2 Council at its next regular meeting. The City Council shall thereupon ratify the declaration, rescind the declaration, or direct the declaration 3 of a different stage. SECTION 8. FAILURE TO COMPLY. 4 (A) Following a declaration of a Stage 1 condition as provided 5 herein, upon the occurrence of violations of any of the provisions of this ordinance, City shall cause written notice 6 to be given to each violator. 7 (B) Following a declaration of a Stage 2 condition as provided herein, citations shall be issued to violators. The first 8 violation by any violator shall subject the violator to a fine of Twenty -Five dollars ($25.00). Upon a second violation, the 9 violator shall be subject to a fine of Thirty -Five dollars ($35.00). Upon a third violation, the violator shall be 10 subject to a fine of Forty -Five dollars ($45.00). Upon a fourth violation, the violator shall be subject to a fine of 11 Fifty -Five dollars ($55.00). 12 (C) For the fifth violation, the City may install a flow restricting device in the customer's water service line for a 13 period not less than 48 hours and until the customer satisfies the City that the failure to comply will not continue. The 14 charge for installing and removing the flow restricting device shall be $65.00 and shall be paid by the customer prior to 15 removal. 16 (D) For the sixth and each subsequent violation, the City may discontinue water service for a period of not less than 24 17 hours and until the customer satisfies the City that the failure to comply will not continue. The customer shall pay 18 $70.00 for restoration of water service. 19 SECTION 9. Appeal Procedure. A customer shall have the right to appeal by filing a written request for appeal within five days with the 20 City Manager or his designee. Within ten days after receipt of such a request, a written decision shall be issued. The City Council or their 21 designee shall be the final appeal body on all decisions. - 22 SECTION 10. Severability. If any section, sub -section, clause or phrase in this Water Conservation Ordinance or the application thereof 23 to any person or circumstances is for any reason held invalid, the validity of the remainder of the Conservation Ordinance or the application 24 of such provisions to other persons or circumstances shall not be affected. 25 / 26 / 27 / 28 / 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ordinance Nr 1060, Page 7 PASSED AND ADOPTED by the City Council of the City of Tustin at a regular meeting held on the day of , 1991. CHARD B. EDGAR, Mayor MARY E. WYNN, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN CERTIFICATION FOR ORDINANCE NO. 1060 MARY E WYNN, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council is five; that the above and foregoing Ordinance was duly and regularly read and introduced at a meeting of the City Council held on the day of , 1991, and was given its second reading and du -passed and adopted at a meeting of the City Council held on the day of , 19912 by the following roll call vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: Mary E. Wynn, City Clerk t Incremental Interruption & Conservation Program An Overview The program current) is structured with four mandatory conservation stages. Stage III will become effective February 1, 1991. Allocation Reductions Firm Non-firm Stage II 5% 20% Stage III 10% 30% Stage IV 15% 40% Stage V 20% 50% Firm water is used mostly for residential and commercial customers. Non-firm water includes g I des a ricultural customers and water used for replenishment of groundwater basins. The effect of the allocation reductions on individual customers will vary depending on how retail agencies manage their systems. 8-1 Revised &F ROP0VT,4N G,/ATcA 0/STRICT Of SOU71119 b' C�t1If091?1/,a November 20, 1990 T0' Board of Directors (Engineering & Operations Committee--InParmation) (Water Problems Committee --Action) f�o,77. General Manager SUh*f.• Incremental Interruption and Conservation Plan Summary The water supply situation for 1991 is uncertain at best. The State project reservoirs will be critically low starting the year, and although we are working on several supply augmentation plans, we could have less than a full Colorado River Aqueduct. Because of this, it is appropriate that Metropolitan put a plan in place that will allow us to respond to a continuation of the drought in a measured way. Staff, in conjunction with the member agencies, has developed a consensual "Incremental Interruption and Conservation Plan" which begins using water in the -interruptible program, in concert with conservation, to meet needs during the remainder of the drought. The plan assigns each member public agency a monthly conservation target of water from Metropolitan. Agencies using less than the target quantity would receive an incentive payment based on the extent their water use falls below their target quantity. Stage I is a voluntary program to encourage consumer conservation and should be put into effect immediately. Stages II through V couple conservation objectives with reductions in non-firm service (Interruptible Service and Seasonal Storage Service for long-term storage). These later stages maybe necessary in future months should the drought continue. In Stages II through V, agencies exceeding the target quantity would face -a disincentive charge on the amount of Metropolitan water used over their target. It is recommended that the disincentive charge be twice the noninterruptible rate (currently $394 per acre-foot) and the conservation incentive payment be one-half the noninterruptible rate rounded to the nearest dollar (currently $99 per acre-foot). Adjustments would be made to the target quantities to reflect growth and development, changes in local water supplies, and significant conservation Board of Directors -2- November 20, 1990 programs, All adjustments would be reported to your Board. An appeal process would be provided whereby member public agencies could request your Board to review the agency's assigned monthly conservation target. The Interruptible Program was originally conceived to deal with an acute shortage of imported supplies occurring at a time when the longer term water supply for Metropolitan would be more favorable. However, the present situation is different than was contemplated at the time the interruptible program was created. The past four years of drought have already caused a substantial draft of the groundwater and surface storage reserves in our service area, and should 1991 prove dry the prospective shortages for later years only increase. These circumstances are believed to be exceptional within the meaning of Section 4603(b) of the Administrative Code, requiring both that service interruptions be shared equally among all interruptible water users and that conservation by retail consumers must accompany service interruptions to preserve interruptible reserves for possible use in a continuing drought. A resolution of the Board which determines that such exceptional circumstances indeed exist is included as part of the recommended action for the Board to adopt the Incremental Interruption and Conservation Plan. The discussions that have taken place with the managers of the member agencies regarding the possible adoption of the Incremental Interruption and Conservation Plan has led to considerable interest in participation by the member agencies in a review of the Interruptible and Seasonal Storage Service programs and possible revision„$ to the Administrative Code to clarify Metropolitans Drought Contingency Program. I intend to create a task force consisting of invited member agency managers and selected MetropolitAn staff to develop and recommend revisions that the task force may consider desirable in the current Interruptible Service and Seasonal Storage Service programs, and in the Incremental Interruption and Conservation Plan. After review of those recommendations, I would -then propose that the Board adopt appropriate amendments to the Administrative Code. This action is believed to be exempt from the California Environmental Quality Act. Recommendations 1. That the Board adopt the attached form of resolution stating its determination that exceptional Board of Directors -3- November 20, 1990 circumstances exist that make application of Administrative Code Section 4603(a) unreasonable; 2. That the Board adopt the Incremental Interruption and Conservation Plan as outlined in this letter; and 3. That the Board declare Stage I of that plan calling for voluntary conservation providing incentive payments for conservation to be in effect December 1., 1990. Detailed Report Background On a statewide basis the water situation is serious. Carryover storage in Oroville and San Luis Reservoirs on October 31, 1990 is now projected to be 1.2 million acre-feet lower than last year and only 200,000 acre-feet above minimum operating storage for these reservoirs. Another dry year in California would have serious consequences. The Department of Water Resources estimates that there may be a 60 to 70 percent reduction of agricultural deliveries and a 10 to 20 percent reduction of municipal and industrial deliveries next year. on the Colorado River, the Bureau of Reclamation's (Bureau) Annual Operating Plan projects 940,000 acre-feet of Colorado River water available for Metropolitan in 1991. Through several efforts which have been reported to your Board, we expect to have more Colorado River water than the Bureau now projects. However, for planning purposes, we must take note of the Bureau's projections. Because of the uncertain water supply picture, it is necessary to make plans for another year of drought and prepare ourselves for future shortfalls. This letter presents a recommended water management plan along with a description of some possible alternatives. The philosophy behind the presented plan, which is called the "Incremental Interruption and Conservation Plan", is to begin using waters in the interruptible program, in concert with conservation, to meet needs during shortfalls such as the present drought. It is structured so it can be staged or phased, always holding as much water in reserve as possible for the eventuality of an even longer drought. The recommended plan is consensual in nature. It has been developed in conjunction with our member agency managers and represents a mutually agreed upon plan designed to respond Board of Directors -4- November 20, 1990 to a continuation of the drought. Nothing in the plan is meant to affect the rights of a member public agency or the provisions of the Metropolitan Water District Act. The Incremental Interruption and Conservation Plan The Incremental Interruption and Conservation Plan establishes 'for each member public agency a monthly target quantity of water available from Metropolitan. The target quantity would be calculated for each member public agency' based on a percentage of the total amount of water taken from Metropolitan during the same month in the base year of 1989-90. Target quantities off agencies who received non-firm water (Interruptible Service and seasonal Storage Service for long-term storage) in the base year would be further reduced in proportion to the amount of non-firm water they received. It is envisioned that the program would be implemented in stages by further reducing the target quantities for each member public agency. Your Board, based on expected aqueduct flow, demands, and storage conditions, would determine in the future, by specific action, the appropriate stage. All interruptible classes of water (agricultural, groundwater replenishment, seawater barrier and reservoir storage) would be reduced uniformly. Similarly, water that is delivered under the Seasonal Storage Program and used for long-term storage would be reduced. Adjustnents would be made to the target quantities to reflect growth and development, changes in local water supplies, and significant conservation programs. The Plan provides that all adjustments would be subject to your Board's approval. In Stages II through V, agencies exceeding the, - target quantity wduld face a disincentive charge for the water used over their target quantity, plus the applicable water rate, while agencies using less than their target quantity would receive an incentive payment. It is recommended that the disincentive charge be twice the non interruptible rate (currently $394/AF) and the conservation incentive payment be one-half the noninter-uptible rate rounded to the nearest dollar (currently $99/AF). In all cases the conservation payment and charges would only apply to deliveries from Metropolitan - and not to total water usage. Stage I of the Incremental Interruption and Conservation Plan would be voluntary. Member public agencies who reduce their use of water from Metropolitan Board of Directors -5- November 20, 1990 below 95 percent of the base year and certify that they did not increase the use of local water to do so, would be eligible to receive the incentive payment. In Stage I there would be no disincentive charge. Based on water supply conditions and continuing high demands, this letter recommends the. Board determine Stage I to be in effect December 1, 1990. The program is illustrated in the following table and example: REQ�ICTIONS FROM BASE YEAR REDUCTION IN NON-FIRM STAGE DELIVERIES PLUS CONSERVATION OF EXPECTED FIRM SAVINGS DELIVERIES AFY I Voluntary Goal 10% 100,000 II 20% _ 5% 2600000 YII 30% 10% 430,000 IV 40% 15% 600,000 V 50% 20% 770,000 As an example, if a member public agency, in a certain month in the base year, received 100 acre-feet of water from Metropolitan of which 10 acre-feet were in non-firm service, then the agency's target quantity under Stage II would be 100 acre-feet minus 2 acre-feet minus 4.5 acre- feet or 93.5 acre-feet. If the agency took less than 93.5 acre-feet, the agency would not only avoid purchase of this water but in addition Metropolitan would provide an incentive payment of $99 per acre --foot. On the other hand, if the agency took more than 93.5 acre-feet, a disincentive charge of $394 per acre-foot would be applied to the amount taken over the target quantity in addition to the applicable water rate. Accounting and Reconciliation At the end of each "water year" (September 30) in which Stages 11 through V were in effect, or following the Board's determination that Stages II through V are no longer in effect, whichever is earlier, there will Board of Directors -6- November 20, 1990 be reconciliations of the disincentive charges and the incentive payments for-delive=Y during that year or partial years. At this reconciliation, agencies may use conserved water for which they received incentive payments to offset overages on which they paid the disincentive charge. For such offsets, Metropolitan would credit the agency the difference between the disincentive charge and the incentive payment. Therefore, if, at the end of the reconciliation period, a particular member agency overused in some months and underused in other months in such quantities that the over and under use equaled each other on an acre-foot basis, that member agency will have evened out its account. The end result in this case would be an adjustment of previous billings for delivery in that period so there would be no disincentive charge and no incentive payment. Adjustments Regarding the target quantity adjustments to account for changes in local water supplies, growth and development, and significant conservation programs; staff has developed guidelines to be used in the adjustment process. Because of the wide variety of circumstances, discussions will be necessary with a number of agencies in order to complete the adjustments. In all cases, adjustments to target quantities will be reported to your Board. Any member public agency could request your Board to review the agency's assigned monthly conservation target. The following are the guidelines we propose to use in making . adj ustmerts . (A) Local Water Supply - adjustments to target quantities will be recommended if: 1. A well, reclamation plant, aqueduct, reservoir, pipelines fails. 2. There is less surface water because of drought. 3. Court order, regulatory order, or negotiated agreement limits the use of local supplies. 4. No adjustments would be made to account for routine or elective maintenance. Board of Directors -7- November 20, 1990 (B) _Conservation - adjustments will be recommended if an agency uses less water because of a significant conservation effort in the base year consisting of: 1. A mandatory water conservation program. 2. A major water management program with demonstrated results. (C) Growth and Development - agencies' target quantities will be adjusted for growth based on: 1. The number of new service connections. 2. A demonstrated change in the mix of service connections toward larger sized connections. 3. The establishment or expansion of a major industrial water user after the base year. Stages II through V constitute an implementation of service interruptions in conjunction with a requirement for increasing conservation by the member public agencies. -- In Stage II for example, conservation at 5 percent noninterruptible service would be mandated in conjunction with a 15 percent interruption in interruptible service thereby reducing future interruptible obligations by 15 percent. The reduction in future interruptible obligations would be controlled solely by the amounts by which target quantities were reduced owing to past purchases of interruptible service. Agencies that did not meet their interruptible obligations to Metropolitan would pay the applicable water rate plus the disincentive charge thus • amounting to payment of the emergency rate for an inability to sustain a service interruption. Conversely, agencies that reduced their use of interruptible service by amounts greater than the call of an interruption by Metropolitan would receive the $99 incentive payment but would not reduce future interruptible obligations. - By requiring increased conservation as interruptions are implemented, we ensure that depletion of Metropolitan's interruptible storage reserves is accompanied by austerity in water use. This balanced use of conservation and interruptions recognizes the potential for continued shortages. Although the prospects for shortages in 1991 are a matter of concern, there is still a need to maintain regional storage reserves under the long-term Board of Directors -8- November 20, 1990 seasonal storage and interruptible water service programs to protect against more serious supply deficiencies in the future. Not only would demands likely increase in later years of a continuing drought, but dry conditions in 1991 that could cause a potential shortfall in supplies would substantially worsen prospective water supplies for later years. On the State Water Project for example, the potential serious shortages to Metropolitan in 1991 are lessened by the ability to impose deficiencies to agricultural contractors of up to 50 percent prior to imposing deficiencies on municipal and industrial contractors. However, if such a deficiency were imposed on agricultural contractors in 1991, municipal and industrial contractors collectively would be on equal footing with agricultural contractors to share in any deficiencies in 1992 through 1996. This is because the combined 1990 and 1991 deficiencies to agricultural users would have reached one year's entitlement which is the maximum for any seven-year period. Thus, preserving regional storage reserves under the interruptible and seasonal storage service programs for potential use in 1992 and later years is a primary consideration in developing mitigation plans for 1991. Alternatives At the October 8, 1990 meeting of the Water Problems Committee, Mr. Donald Harriger, General Manager, Western Municipal Water District discussed the Incremental Interruption and Conservation Plan (I1C) and presented an alternative plan. This alternative is modeled after the plan contained -in this letter, but differs in that it eases the penalty for failure to meet the conservation target and interrupts different classes of interruptible Service by different amounts. The alternative reduces the disincentive charged from $394/AF to $200/AF and provides for overuse above the allocation of 5 percent before the penalty is applied. The alternative plan also increases the incentive for conservation to $200/AF. In staffs opinion, the easing of the disincentives for overuse will likely result in an easing of agencies, conservation efforts. Because of this the expected savings projected in the Harriger alternative are too high and should be reduced by 40 to 50 percent. Board of Directors -9- November 20, 1990 .A note is appropriate regarding the $394/AF disincentive charge proposed in the IIC. This charge is not designed to collect revenue. Its purpose is to send a strong signal encouraging conservation. The IIC provides flexible use of conservation to cover overages that may inadvertently occur. The disincentive charge is designed to encourage those who night not otherwise participate in water conservation to join in and do their share. The disincentive charge has the advantage of matching the Districts emergency rate and avoids the potential problem of charging different rates for the same class of service. Another feature of the alternative plan is that it interrupts different classes of interruptible service by different amounts; direct replenishment would suffer the greatest cutback, agricultural the lightest, and seawater barrier none -at -all: Staff examined a similar approach and concluded that it was best to cut all classes of interruptible service equally, for the following reasons: 1. Four years of drought have depleted local groundwater basins. It is important that as much water as possible be maintained in these basins in case of a longer drought; 2. To maintain as much water in reserve as possible, _ equal sharing of the shortage through equal interruption is the best management approach; 3. Equal interruptions offers flexibility to merJDer agencies; each can choose how the cut is distributed within the agency. Cutting by class of service Would require an audit by Metropolitan' to see that each class is cut as specified. Calling for a cut in all interruptible serfice does not require such an audit; and 4. Equal interruptions provides fair, flexible, and simple administrative measures. In a time of shortage, simple, understandable rules are each agency greatest assurance of consistent, equitable application. A straight interruption in service without any penalties or incentives for conservation was also considered as an alternative. It was determined that this approach would lead to the use of our reserves too early. Staff felt that depleting groundwater and storage surface Board of Directors -lp- November 20, 1990 water reserves, crippling the agricultural corzunity, and perhaps collapsing the seawater barrier, without calling for general conservation was not a neasured approach to extending our supplies through a drought of uncertain length. Exceptional Circur.starces The continuing drought has caused an exceptional need to maintain local storage reserves for possible future use. This is in contrast to the objectives for dr ougrt Mitigation that were proposed at the time the interruptible program was implemented. The interruptible program was designed on the premise that local storage reserves could be utilized without specific regard to the need for retail conservation and that storage reserves could be relied upon more substantially than other types of interruptible service to offset an acute shortage of imported water. In this context then.. the need to share interruptions equally between all classes of interruptible service and the need to moderate the current use of service interruptions in order to preserve the ability to impose service interruptions in a future year constitutes exceptional circumstances. The proposed resolution of the Board which adopts the Incremental, interruption and Conservation. Plan takes note of these exceptional circumstances to offer some clarity as to why alternative means of implementing a service interruption, which may in the past have seemed appropriate, would not be prudent as•a current mitigation schema. Member Aaencv Task Force There is considerable interest on the part of the mer.Lber agencies in participating in a review of the interruptible and seasonal storage service programs and possible revisions to the administrative code to clarify Metropolitan's drought contingency program. I intend to create a task force on which member agency managers will be invited to participate jointly with Metropolitan staff to develop and recommend desirable revisions to the interruptible service and seasonal storage service programs and to the Incremental Interruption and Conservation Plan. California Environmental QU a l i tv Act ( CEQA ) This drought is of unknown duration which, if it continues, presents a clear and imminent danger to water Board of Directors -11- November 20, 1990 service if steps are not taken to Mitigate its impacts. Consequently, while not free from doubt, it is believed that this action is exempted from CEQA both by Public Resources Code Section 21080 (b)(4) as necessary to prevent or mitigate an emergency as well as under Section 15301 of the Secretary for Resources Guidelines implementing CEQA since this action singly provides for the continued operation of existing facilities with no expansion of use beyond that previously existing. Carl oron DLA/ KRH:aj Attachment DATE: FEBRUARY 12, 1991 Inter — Cown joist's.** TO: WILLIAM HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT WATER OPERATIONS SUBJECT: ORDINANCE NO. 1060 FE 14 1991 LD ADOP'T'ING A WATER MANAGEMENT PROGRAM RECOMMENDATION: That the attached ordinance be distributed to City Council as information only at their regular meeting of February 19, 1991. BACKGROUND: California is entering a fifth consecutive year of drought. This condition, along with other adverse events, has begun to place limits on the State's water supply. In response to the current water shortage, and to the potential for serious shortages in the future, the Metropolitan Water District of Southern California (MWD) has adopted a five Staged program known as the Incremental Interruption and Conservation Program (HCP). This program establishes conservation objectives for local agencies ranging from a voluntary 10% reduction in purchases from MWD at Stage I, through a mandatory 20% reduction in purchases from MWD at Stage V. The conservation target objectives are based on local agencies' purchases from MWD during fiscal year 89/90. The MWD board declared Stage III (mandatory 10% reduction) effective February 1, 1991. Under the IICP, if an agency does not meet its conservation target, it is assessed a penalty of $394.00/acre foot over and above the normal rate of $244.00/acre foot. Conversely, if an agency achieves greater conservation than its target, it receives an incentive credit of $99.00/acre foot. The City of Tustin has the ability to produce about -70% of its supply from local wells. Conversely, we are dependent on imported (MWD) water for approximately 30 % of our supply. It is within the latter 30% that we have exposure to penalties. The groundwater basin under Tustin, which is managed by Orange County Water District, is in relatively good condition and we should be able to maintain groundwater production at 70 % for the foreseeable future. The only disclaimer to this would be if unforseen malfunctions to our wells or reservoirs were to occur. ORDINANCE NO. 1060 - ADOPTING A WATER MANAGEMENT PROGRAM FEBRUARY 12, 1991 PAGE 2 An additional consideration is that the City's Nitrate Removal Plant was placed on line on March 161 1990, nearly 3/4 of the way through the HCP base period. The plant is capable of producing 15-17 % of the City's supply, and places the City in the fortunate position of not being penalized under Phase III or IV of the IICP. On February 12, 1991 MWD's Board of Directors voted to implement Phase V of the HCP, effective March 1, 1991. This phase requires a mandatory 20% monthly reduction based on imported water purchased in the Fiscal Year 1989/90. In May 1990, City Council passed Resolution No. 90-53 adopting a Voluntary Water Conservation Program with an objective of a 10% reduction in water use. At this time this goal has not been attained and we are achieving only 5-7 % conservation. In order to meet the 10 % conservation goal efforts have been undertaken by the various departments. Finance Water Billing 1. Water conservation publications are distributed. 2. Water conservation lits are given to customers on request (over 200 have been distributed to date). 3. Water conservation messages are printed on bimonthly water bills. 4. Informational press releases have been sent out to 24 local news agencies and civic groups. 5. Restaurants have been provided with table tents and two posters each stated "Just Ask for Water". 6. Staff has developed and implemented outreach programs designed to identify high water consumption and to be responsive to broken sprinklers and water misuse when so advised by customers. If a resident calls in to report water misuse by a business a Customer Service Supervisor notifies the party of the problem and explains the need for water conservation. If a resident calls in reporting another resident, an informational packet is sent out which explains the need for conservation and contains water conservation tips, landscaping ideas, and a water conservation kit. 7. The State of California requires that an annual Water Quality Report be distributed to each customer by April 1 of each year. A water conservation packet will also be mailed out with this year's report. ORDINANCE NO. 1060 - ADOPTING A WATER MANAGEMENT PROGRAM FEBRUARY 12, 1991 PAGE 3 Community Development 1. Developers are being made aware of the need for planting drought resistant. landscaping. Field Services 1. All irrigation systems for street median irrigation have been equipped with moisture sensors. 2. Irrigation of medians, parkways, and parks has been reduced. The impact of this is being closely monitored, both in terms of water use and general appearance of turf and shrub areas. 3. Water Operations continues to repair leaks in the public right-of-way on a high priority basis. 4. Water Operations staff continues to participate in regional agency planning meetings in order to remain abreast of State and local water issues. 5. Wells and appurtenant equipment are being closely monitored and are repaired on a high priority basis. 6. Staff is working with the Tustin Unified School District in providing assistance to their conservation program. 7. Field surveillance of water misuse is being reported to the City's Customer Service Section as well as to Irvine Ranch Water District which serves the East Tustin Area. 8. Conservation measures have been imposed on all City contractors using water for irrigation purposes. The proposed ordinance would give the City an additional tool with which to achieve greater conservation and would allow the City Manager, with Council ratification, the flexibility to adjust to any rapidly changing water supply situation. The ordinance is organized into four stages, ranging from Stage 1, Voluntary Compliance, to Stage 4, Water Emergency. The ordinance provides for penalties ranging from written warning through cutoff of service in cases of severe abuse. The ordinance also provides for imposition of a tiered rate structure in cases of water abuse. This will need to be further detailed and approved by Council prior to implementation, and once approved would require an additional 3 to 6 months to be installed in the current utility billing system. ORDINANCE NO. 1060 - ADOPTING A WATER MANAGEMENT PROGRAM FEBRUARY 12, 1991 - PAGE 4 CONCLUSIONS: Staff anticipates substantial penalties as a result of MWD declaration of Stage V of the IICP. Staff will present projected water use and penalties to Council at their regularly scheduled meeting of March 4, 1991, at which time we propose to present this ordinance for first reading and information. Section 375 of the California Water Code requires that a public hearing be held on the proposed Ordinance No. 1060. We propose to publish the Notice of Public Hearing on February 21, 1991 in the Tustin News and hold the hearing on March 4, 1991 at the regularly scheduled City Council meeting, prior to introduction of the ordinance for first reading and information. Bob Leden ecker Director Public Works/City Engineer BL:PR:cc Pablo Rodriguez Manager Field Services