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SR-9-A (103) . . e;-~ GS:CP:retro council Meeting: March 19, 1991 Ml1., 1" 1 I .M"; ~~} <ji Santa Monica, California To: Mayor and City Council From: City Staff Subj ect: Recommendation to Adopt Resolution Setting Fees for Mitigation of Water Demand from New Development INTRODUCTION On February 26, 1991, City Council adopted an emergency water conservation ordinance in response to projected water shortages during California's fifth consecutive drought year. section 7245 of the emergency ordinance sets forth the criteria which must be met for new development in the City to be approved. section 7245 authorizes the City to charge a fee from new development in an r--- ~ --------------~------ amount sufficient to mitigate twice the estimated daily water consumption rate projected for the development. The attached resolution sets the level for this water demand mitigation fee for new development. ~- DISCUSSION At this critical point in the drought, it is no longer prudent for the city to allow unrestricted water connections for new projects in the City. Rather than imposing a moratorium on new water connections, the City Council has established a fee for new development which will allow residential and commercial development to proceed while providing the City with sufficient financial 1 q-A- MJlf~' j 9 :.jPi . . resources to offset 200% of the projected water demand from new projects. In the case of low and moderate income housing projects, the city will only require the mitigation of the net increase in water demand from the project. This provision will ensure that the development of low and moderate income housing in the City is not discouraged during the drought period. The water demand mitigation fee will apply to all non-residential development which affects or alters any plumbing fixture. It applies to all single family development which is defined as a "substantial remodel II and which increases the square footage of the principal building by more than fifty percent. It also applies to all multi-family development which is defined as a substantial remodel and which increases the number of dwelling units on the property. The fee must be paid to the General Services Department prior to the issuance of a building permit for the affected project. When an application is received by the General services Department from an eligible new project, the total daily water demand for the project will be calculated using standard water demand factors which have been developed by city staff. Based on the estimated total daily water demand, the appropriate fee will be calculated and assessed. The proposed amount of this fee and an explanation of how it is derived is presented below. 2 . . The equation which has been used to arrive at an amount for the proposed water demand fee is based on the cost to the City for retrofitting an average residential bathroom. Staff estimates that there are an average of 1.4 bathrooms in each residential dwelling unit in the City (this includes single family as well as multi- family occupancies) . Staff also estimates that it costs approximately $150 for the City to retrofit a residential unit, including inspection and administrative overhead costs which must be borne by the City. A standard bathroom retrofit consists of the installation of an ultra low flow toilet, a low flow showerhead and a faucet aerator. The cost to retrofit all the bathrooms in an average dwelling unit is $210 ($150 X 1.4 bathrooms = $210). Once all the bathrooms in a residential unit are retrofitted, the total daily water savings is estimated to average 70 gallons. The total cost for each gallon of daily water demand which is reduced therefore comes to $3.00 ($210 divided by 70 gallons = $3.00). It is proposed that city Council set the water demand mitigation fee at $3.00 for each gallon of daily water demand which must be mitigated. A few examples of how this mitigation fee would be charged for different types of projects is presented in the table below. The standard daily water demand factors used in the analysis are taken from a table compiled by the General Services Department which is attached as Exhibit A. 3 . . Tvpe of Development Two Times Daily Demand Total Fee Single Family House 660 gallons per day $ 1,988 5 unit Apt. Building 1,900 II $ 5,700 (two bedroom units) 20,000 Square Foot 4,800 II $ 14,400 Office Building 20,000 Square Foot 2,600 " $ 7,800 Retail Building The money which is collected from this proposed fee would augment the city's BAYSAVER Program funding and be utilized for various categories of priority bathroom retrofits in the city. The retrofit priority order would be public schools, public buildings such as libraries, park buildings, etc., low and moderate income housing supported financially by the city, non-profit entities supported financially by the City and other non-profit entities. This list of priority retrofit targets could be expanded depending on the magnitude of revenue proceeds from the fee. Application procedures for these retrofit funds will be in place by May 1, 1991. BUDGET/FISCAL IMPACT The amount of funds which will be collected from the proposed fee is contingent on the number of building permits for eligible projects which are issued during the emergency water conservation period. Given the complexity of accurately estimating how many projects would be subject to the fee, it is not proposed that any revenue or expenditure budget adjustments be made at this time. staff will monitor actual development activity over the next two 4 . . months and present an estimate of projected revenues and expenditures from this fee during review of the FY 1991-92 Proposed Budget. In addition, fee payment record keeping will conform with AB1600 requirements. RECOMMENDATIONS It is recommended that City council adopt the attached resolution setting a water demand mitigation fee of $3.00 per gallon of daily water demand for all eligible categories of new development in Santa Monica. Prepared by: stanley Scholl, Director of General Services Craig Perkins, Environmental Services Manager 5 . revised 3/10/91 . CITY OF SANTA MONICA Department of General Services WATER DEMAND FACTORS' Tvpe of Occupancy Warehouse Retail Shops/Stores Hospital (Surgical) Hospital (Convalescent) Hotels3 Manufacturing Medical Building Office Buildings Restaurants: Fast-Food Restaurant Full Service Restaurant Bars Health Club Theater, Church, Auditorium Laundry/Laundromat Nursery-Day Care Center/School Residential: (condominiums use Single Family Dwelling Bachelor Apartment 1 - Bedroom Apartment 2 - Bedroom Apartment 3 - Bedroom Apartment Duplex Gallons/Day2 30/1000 sq. ft. 65/1000 sq. ft. 440/Bed 105/Bed 145/Room 120/1000 sq. ft. 240/1000 sq. ft. 120/1000 sq. ft. 30/Seat or 850/1000 sq. ft. 25/Seat or 750/1000 sq. ft. 20/Seat 800/1000 sq. ft. 4/Seat 230/Washer 12/Child same factors 330/Unit 105/Unit 125/Unit 190/Unit 250/Unit 300/Unit as apartments) All Other Specific Cases will be Analyzed once Application is Received 1All figures assume maximum 1.6 gallon/flush toilets, 1.0 gallon/flush urinals and 2.5 gallon/minute showerheads. 2water demand from cooling towers, industrial/manufacturing processes or other special uses will be calculated on a case by case basis and added to the base water demand factor. 3Assumes 80% occupancy rate and on-site linen service. Without linen service, demand would be 100 gallons per room. Restaurants within the hotel need to be calculated separately. . . GS:CP:wtrreso Santa Monica, California Resolution Number 8l96(CCSl (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA PERTAINING TO WATER DEMAND MITIGATION FEES FOR NEW DEVELOPMENT WHEREAS, the State of California is facing its fifth straight drought year which is causing shortages in Santa Monica's water supplies; and WHEREAS, the City Caunell of the City of Santa Monica has required a mandatory cutback in water usage from all water customers; and WHEREAS, during the drought emergency, it is necessary to restrict water demand caused by new development in the City; and WHEREAS, a moratorium on water connections for new development might pose a significant economic hardship for certain individuals; and WHEREAS, it is in the best interest of the community to not discourage the development of additional low and moderate income housing during the emergency drought period; and WHEREAS, new development causes a greater impact on water demand in the City than that related to water use on the 1 . . project site itself as employees and occupants of the new development use services in the city such as housing, restaurants and other services which further increases overall water demand; and WHEREAS, based on proj ected shortages in future water supplies it is necessary that all new development contribute to a significant net reduction in the city's overall water consumption; and WHEREAS, it has been proven that water consumption in the City can be reduced through the retrofit of existing water inefficient plumbing fixtures with ultra low-flow plumbing fixtures; and WHEREAS, the City has established the BAYSAVER Plumbing Fixture Retrofit Program to facilitate the conversion to water efficient plumbing fixtures in the cit~; and WHEREAS, Section 7245 of the Santa Monica Municipal Code provides that the city Council may set and collect a fee in order to mitigate twice the projected on-site water demand from new development and the net increase in water demand from new low and moderate income housing projects; and WHEREAS, it is now in the best long-term interest of the community that a mitigation fee be collected from each new development and used to retrofit water inefficient plumbing fixtures in the City so that the City's overall water demand can be reduced by two times the projected on-site water demand from the new development; and 2 . . WHEREAS, in the case of a project to build low and moderate income housing, which helps alleviate the city's affordable housing shortage, the city's overall water demand can be reduced by an amount equal to the net increase in on- site water demand from the project, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. This Resolution shall apply to the following projects: (a) Any non-resident1al development which adds, affects or alters any plumbing fixture. (b) Any development of a multifamily residential building or any substantial remodel, as defined in Municipal Code Section 9000.3, of a multifamlly residential bU1lding and which increases the number of residential units on the property. (c) Any development of a new single family dwelling or any substantial remodel, as defined in Municipal Code section 9000.3, of a single family dwelling and which 1ncreases by more than fifty percent (50%) the square footage of the single family dwelling. SECTION 2. In order to meet the requirements of Municipal Code Section 7245, any project subject to this Resolution pursuant to section 1 shall pay the following fee to the 3 . . Director of General Services: (a) A fee calculated according to the following formala: $3.00 x (average number of gallons per day x 2). (b) A low and moderate income housing project shall pay a fee caluclated according to the following formala: $3.00 x ((average number of gallons per day - existing average number of gallons per day if the s1te is developed) x 1}. SECTION 3. Prior to the issuance of a building permit, a developer of a project subject to this Resolution pursuant to Section 1 shall file, on a form approved by the city, a request for a determination of the water demand for the project. The Director of General Services shall review the request and determine the water demand using standard water demand factors which have been developed by the city. The Director of General Services shall notify the developer in writing of the results of his or review and the amount of the fee required pursuant to this Resolution. The determination of the Director of General Services shall be final and not subject to administrative appeal. Any fees required pursuant to this Resolution shall be paid prior to the issuance of a building permit for the project. SECTION 4. The City Clerk shall certify to the adoption of this resolution, and thenceforth and thereafter the same shall be in full force and effect. 4 . APPROVED AS TO FORM: ~'-.~" ROBERT M. MYERS LJ City Attorney ----- . 5 . . Adopted and approved this 19th day of March, 1991. o /~/0 !A.-Mayor I hereby certify that the foregoing Resolution No. 8l96(CCS) was duly adopted by the City Council of the city of Santa Monica at a meeting thereof held on March 19, 1991 by the following council vote: Ayes: Councilmembers: Genser, Holbrook, Katz, Olsen, Vazquez, Zane, Mayor Abdo Noes: Councilmembers: None Abstain: Councilmembers: None Absent: Councilmembers: None ATTEST: /~bLt!--JL- - . City cIerI . . CA:RMM:rmlist/hpca1/pc city Council Meeting 3-19-91 Santa Monica, California LIST OF PENDING CASES TO BE CONSIDERED IN CLOSED SESSION 1. Fried v. City of Santa Monica, et al., Santa Monica Superior Court Case No. WEC 141 002. The authority for this closed session is Government Code Section 54956.9(a). [Note. Following closed session, the City Council may publicly approve settlements in one or more of the above-entitled cases. ]