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SR-6-F (103) -502-orDb 6-F SEP ? J lQ:'1 ~ ~~ GS:SES:SM:bmp Santa Monica, California Council Meeting: September 24, 1991 TO: Mayor and City Council FROM: City Staff SUBJECT: Request for Council Approval of a Memorandum of Understanding Regarding Urban Water Conservation in California INTRODUCTION This report requests that the City Council approve and become an official signatory to a statewide Memorandum of Understanding Regarding Urban Water Conservation which primarily contains a description of the various "Best Management Practices" for water conservation which each water supplier agrees to implement in "good faith." The Memorandum of Understanding is a product of the ongoing San Francisco Bay/San Joaquin Delta Estuary ("Bay/DeltaU) hearings. BACKGROUND The Bay/Delta hearings are being held to determine present and future water rights to the Sacramento/San Joaquin Delta. During Phase I of the Bay/Delta hearings, which concluded in February of 1988, the State Water Resources Control Board ( SWRCB) issued a draft water quality control plan which required Southern California to conserve more than one million acre-feet of water 1 6-F SE? ~~ .1 :~'~1 per year by the year 2010. Because of concerns expressed by many Southern California water agencies, including the Metropolitan Water District, the plan was withdrawn by the SWRCB. Subsequently, working groups composed of representatives from urban water suppliers, environmental groups, the Department of Water Resources, the State Resources Control Board, trade organizations, and others were established to work on the water conservation issues associated with the Bay/Delta. The consensus result of this process to resolve the conservation issues for the Bay/Delta hearings are referred to as the "Urban Water Conservation Best Management Practices" (BMP s ) as contained in the a Memorandum of Understanding. The MOU document includes a list of proven BMF s (water conservation measures), a schedule for implementation of these BMPs, agreed-upon savings assumptions for each BMP, and other recommendations to the SWRCB. It should be noted that during this process, the City of Santa Monica was used as a model for proactive and successful water conservation programs. DISCUSSION The goal of the MOU is to reduce long-term urban water demand, thereby ensuring the reliability of the state's and the region's water supply. The purpose of the urban water conservation practices included in the MOU are to expedite implementation of reasonable water conservation measures in urban areas and to establish generally-accepted assumptions for use in reliably 2 estimating future water savings. Each signatory agrees to make "good-faith efforts" to implement the BMPs in accordance with the established implementation schedule, and study additional conservation measures and implement those that prove to be effective. "Good faith" entails proactive use of legal authority to implement BMPs, use of financial incentives when appropriate, optimization of savings from BMPs, and removal of all institutional barriers to implementation of BMPs. Although nearly all of the recommended BMPs have already been implemented by the City of Santa Monica, many urban water agencies in California will be committing, through the MOU agreement, to much stricter water conservation practices than are currently in place. For example, the City of Sacramento will be agreeing in principle to the installation of water meters in new construction. Water customers in Sacramento are currently unmetered. Also, the MOU will impel a statewide water conservation focus and leave wasteful water use practices in agriculture with few allies among urban water agencies. The MOU therefore constitutes the first commitment by most urban water agencies to the new "rules of the game" vis-a-vis implementation of water conservation practices. The specific Best Management Practices which signatory water suppliers commit to implementing are: 1. Interior and exterior water audits and incentive programs for single family residential, multi-family residential, and governmental/institutional customers; 3 2. Enforcement of water conserving plumbing fixture standards including requirement for ultra low flush toilets in all new construction beginning January 1, 1992; 3. Distribution system water audits, leak detection and repair; 4. Metering with commodity rates for all new connections and retrofits of existing connections; 5. Large landscape water audits and incentives; 6. Landscape water conservation requirements for new and existing commercial, industrial, inst itutional, governmental, and multi- family developments; 7 . Public information; 8. School education; 9. Commercial and industrial water conservation; 10. New commercial and industrial water use review; 11. Conservation pricing; 12. Landscape water conservation for new and existing single family homes; 13. Water waste prohibition; 14. Designation of a water conservation coordinator; 15. Creation of financial incentives; and 16. Programs for ultra low flush toilet replacement. In return for this good faith commitment, environmental organizations which sign the MOD would agree to recommend to the SWRCB that implementing the BMP process is a sufficient water conservation program and that it use only reliable estimates of conservation savings for the agreed-upon BMPs in its water rights 4 decisions for the Bay/Delta hearings. The MOU does not discuss growth management, but each signatory must report annual impacts of planning decisions involving projected growth on the reliability of their water supply. Agreeing to the MOU also does not signify that any position has been taken on the Bay/Delta hearings or the issue of water diversion from northern California. By becoming a signatory to the MOU, the City of Santa Monica will become a member, along with other signatories such as the MWD, City of Los Angeles, Orange County, and many environmental groups, of the California Urban Water Conservation Council. The Council will be responsible for reviewing and making recommendations on the BMF process and submitting annual reports on the process to the SWRCB and signatory organizations. This Council would be divided into two voting groups: 1) urban water suppliers, and 2) public advocacy groups. Other interested groups will serve in a non-voting, advisory capacity. The initial term for the MOU is 10 years, beginning on September 1, 1991, and will be automatically renewed thereafter on an annual basis. An historic signing ceremony will be held in Sacramento on a date to be determined. Representatives of all signatories to the MOU will be invited to attend the ceremony. The MOU has several benefits to Southern California, namely: . A more reliable water suoolv - using only reliable estimates of savings for proven conservation measures in Bay/Delta water 5 rights decisions should increase the reliability of water supplies to Southern California from the State Water Project; . A statewide process - the BMP process would be implemented by urban water suppliers statewide; . Elimination of unreliable conservation auotas - using only reliable savings estimates for proven conservation programs will eliminate the unreliable conservation savings quotas included in the first SWRCB draft plan; . Industrv standard - the BMP process will create an industry standard for conservation against which the need for other water management measures, including facilities, can be measured; . Local flexibility - the BMF process provides local flexibility for both BMP measures and implementation schedules; and . No new authority - the BMP process can be implemented within the existing authority of all organizations participating in the process. As has been noted above, the City has already implemented or is planning to implement all of the BMPs required by the MOU. The MOD has much more significance, from a policy implementation standpoint, on those water agencies which presently have few conservation programs. BUDGET/FINANCIAL IMPACT Approval of the MOD by Council will not entail any budget or financial impact. 6 RECOMMENDATION It is recommended that the City Council approve and sign the attached Memorandum of Understanding Regarding Urban Water Conservation. Prepared by: Craig Perkins, Environmental Services Manager Susan Munves, Acting Conservation Coordinator 7 ~