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SR-05-14-2013-4ACity Council Meeting: May 14, 2013 Agenda Item: 4— i To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Sustainable Water Master Plan Status Update Recommended Action Staff recommends that the City Council: 1. Direct staff to proceed with the Sustainable Water Master Plan (SWMP) and fully develop Option 1 — Staff Recommendation. 2. Review and comment on SBx7 -7 water use goal of 123 gallons per capita per day (GPCD) and direct staff to change the next Urban Water Management Plan (UWMP) SBx7 -7 water use goal from 123 GPCD to 141 GPCD at the UWMP 2015 update. 3. Direct staff to proceed with the water and wastewater rate study. Executive Summary The development of a Sustainable Water Master Plan (SWMP) entails a multi- faceted approach to address the City's goal of achieving water self- sufficiency by the year 2020. With the City's current capability to meet approximately 70% of its water demand from local groundwater sources, the objective is to develop strategies to close the "gap" represented by the current purchase of imported water. Through a combination of demand management approaches and water supply augmentation tactics, subjected to a life cycle cost assessment, various portfolios are being developed to represent permutations and combinations of options that best meet the program objectives and continue to support the City's Sustainability Plan. This report presents an update of the SWMP and the process and tools developed, including portfolio development and the rate study update to allow the Council and the community to evaluate the mix of strategies to achieve water self- sufficiency by 2020. Additionally, this report recommends a portfolio of conservation and supply approaches, as well as a modification to the water consumption goal previously adopted. Background In a study session at the March 8, 2011 Council meeting, staff presented the concepts and principles involved in achieving the goal of water self- sufficiency by the year 2020. Following the study session, staff embarked on the development of a Sustainable Water Master Plan (SWMP) in order to achieve this goal. In support of this effort an agreement with Richard C. Slade and Associates, LLC (RCS) to perform a groundwater assessment was authorized at the August 23 2011 Council meeting, and another agreement with Kennedy /Jenks Consultants (KJC) was authorized at the March 27, 2012 Council meeting to prepare the Sustainable Water Master Plan. In an information item to Council dated November 5, 2012, staff presented an update on the status of the development of a Sustainable Water Master Plan (SWMP) to guide the City's efforts to achieve the goal of water self- sufficiency by 2020. At that time, the SWMP was 25 percent complete. The SWMP is now 75 percent complete. This report presents an update on the status of the work performed since the last report and a request that Council provide comment and direction in order to complete the SWMP. This update includes information regarding the following: • Advisory Committee • Water demand analysis • Water conservation program modeling and analysis • Analysis of additional local groundwater opportunities • Analysis of the potential for rainwater harvesting and city -wide stormwater capture • Recycled water market study • Preliminary implementation cost analysis Discussion At its core, a water master plan targeting water self- sufficiency by 2020 must first develop an estimate of the demand in that year, and then compare the city's current supply capabilities against this demand. The resultant "gap" is then filled by a portfolio of water conservation strategies and new water supply opportunities such that the city's demand in 2020 can be met without dependence on imported water supplies. The following sections of this report address the demand estimated for the year 2020, along with recommended water conservation programs and new supply approaches. 2 Advisory Committee A volunteer advisory committee was formed near the inception of the project comprising of individuals interested in assisting the City pursue its goal of water self- sufficiency. Advisory committee members include Mark Gold, Chair of the City's Environmental Task Force, Associate Director UCLA Institute of the Environment and Sustainability; Andy Lipkis, Tree People Founder and President; Conner Everts, Southern California Watershed Alliance Executive Director; Ed Osann, Natural Resources Defense Council Senior Policy Analyst, Water Program; Judy Abdo, Santa Monica representative on the MWD Board of Directors, former Santa Monica Mayor and Councilmember; Caryn Mandelbaum, Environment Now Freshwater Program Director, Staff Attorney; Tracy Quinn, Natural Resources Defense Council Policy Analyst, Water Program; Deborah Weinstein, Tree People Director of Policy. Meetings with available members of the committee have occurred January 10, February 28, March 11, and April 10 to discuss approaches and strategies to be included in the SWMP. It is anticipated the advisory committee will continue to be convened throughout the duration of the project. The City's Task Force on the Environment was presented an update of the project at its April 15, 2013 meeting. Water Demand Analysis To achieve water self- sufficiency by the year 2020, the City must have a clear understanding of its future water needs, or demands. The total amount of local water supplies needed to meet the City's sustainability goal includes water supplied to customers as well as an allowance for system water loss, and water lost through the treatment process referred to as brine or production loss. The City's initial estimate of the volume of water needed to meet the sustainability goal was approximately 3,700 acre -feet (AF); however, that estimate was based on the assumption that water demand would not increase in the future beyond current levels and did not consider the effects that economic activity and weather may have on future water demands. While the extent of these effects may vary based on local conditions, there is a general increase in demands with increased economic activity and hotter, M drier weather conditions. These effects were not incorporated in the demand projections available in current planning documents, including the 2010 Land Use and Circulation Element (LUCE). A comparison of current water demands and the LUCE projected demands suggests that the LUCE projection may be too high. The 2010 LUCE projected water demands of approximately 15,300 AF in 2012; a detailed billing data analysis shows actual demand in 2012 was approximately 13,500 AF — a difference of 1,800 AF. To plan for future supply needs, a comprehensive demand analysis was performed in order to develop new demand projections that align more closely with current demands and were adjusted for effects of weather and economic activity applicable to Santa Monica. First, a new baseline demand projection was developed. This baseline demand projection begins with current actual demands of approximately 13,500 AF in 2012 and grows at the same rate as the water demand projection found in the LUCE. LUCE annual growth rates were used since it was developed based on the City's best estimates of demographic and development projections used in the City's General Plan and other planning documents. Figure 1 compares the water demand projection found in the LUCE with the new baseline demand projection. El Figure 1. Demand Analysis: Comparison of the LUCE Water Demand Projection with the Baseline Demand Projection Water Demand 18000 17000 15,900 16100 15;366 14,100 a 14000 13,500 13101 - -- 12000 11000 10000 1OJ2 l0S c'p8 20 c�0�0 ✓`9 Year —LUCE Demand Projection — Baseline Demand Projection Next, the effects of weather and economic conditions on the City's water demand were explored. Regression analyses were performed to evaluate the correlation between water use for various customer categories (single family, multi - family, commercial, institutional and landscape irrigation) and weather and economic (unemployment rate) factors. Data from the regression analyses indicated that there was no significant correlation observed with weather related parameters for the City. However, a better correlation was found between the City's unemployment rate and the water use of single family, multi - family and landscape irrigation customer classes. A decrease in the unemployment rate resulted in an increase in water use among these customers. The analysis suggests the reduction in water use was due in large part to the recession and higher unemployment rate. 5 Accordingly, the baseline water demand was adjusted to project future water demands under good economic conditions, as shown in Figure 2. The "good economy" demand projection is approximately 10 percent higher than the baseline water demand projection. Given that the City's existing local water supply capacity is approximately 9,000 AF, the demand analysis suggests that the gap between available water supply and the volume of water required to meet the City's sustainability goal in 2020 is actually closer to 6,500 AF, rather than 3,700 AF (Figure 2). Figure 2. Demand Analysis: Luce Demand Projection, Baseline Demand Projection & Good Economy Demand Projection Water Demand 1600D _ _.... __ _- ___- ------- - - - - -- 15,300 .,,._ 15000 1400( 13000 _ 13,500 _. LL¢ 12000 11000 10000 9400 15,900 8000 s'Ofc� 10� t'O�V �OJJ` s'OT6` I�Tj �0�8 �0�9 ��20 Year - - LUCE Demand Projection - - Baseline Demand Projection "Good Economy" Demand Projection —Existing Local Supply Capacity A multi- faceted water supply portfolio is required in order for the City to meet its water self- sufficiency goal. This portfolio should include both demand reduction measures through the implementation of water conservation programs, as well as new supply and water treatment options. New water supply options may include additional groundwater n. capacity, rainwater harvesting and stormwater capture, and additional recycled water sources. These supply options are explored in greater detail in the following sections. Water Conservation Modeling and Analysis Since the November status report, the water conservation analysis was refined to better define the City's opportunities to reduce the projected water demands described above through the implementation of water conservation programs. After completion of a detailed billing and past conservation program and policy analysis, a comprehensive list of water conservation programs was developed and modeled using the Alliance for Water Efficiency's Water Conservation Tracking Tool. This model allows users to analyze the water savings potential and implementation costs of a collection of water conservation programs. The model also uses local demographic and housing characteristics to estimate water savings that could be attributable to enhanced efficiency requirements in State plumbing codes and water fixture usage standards, and predict reductions in demand from other applicable programs. The suite of programs selected for analysis address each of the City's water customer sectors (single - family, multi - family, commercial, institutional, and landscape) with an emphasis on water users that shows opportunity for additional conservation. Since 1988 the City has invested millions of dollars in resources to retrofit nearly every indoor plumbing fixture in commercial, single - family and multi - family buildings with water saving products. As a result water usage in the City has declined even though the City's population and development have increased. Results of the billing analysis indicated that the greatest remaining potential for water conservation exists among the City's commercial and institutional customers, as well as in landscape water use. Two specific large water users, St. John's Medical Center, the Santa Monica - Malibu Unified School District, and laundry facilities, were identified by City staff as customers with a high potential for additional water savings and programs were developed to target those potential savings. 7 Implementation levels for each water conservation program modeled were based on analyses of saturation rate of existing water saving plumbing fixtures and landscapes, customer surveys, staff knowledge of the City's customers and their willingness to implement these programs, and products that will have long -term water savings that are not dependent on significant changes in the customer's behavior. The goal was to develop a diverse selection of programs that aggressively pursued demand reduction through retrofitting existing indoor plumbing that is already water - saving with plumbing fixtures that save about twenty percent more water in addition to retrofitting landscapes with plants and irrigation that can save up to eighty percent more compared to existing landscapes. The resulting suite of conservation programs (Table 1) is projected to save approximately 775 AFY of water in the year 2020. An additional 420 AFY of savings is expected in 2020 as a result of State plumbing and building code standards that require higher water saving fixtures. In addition, a reduction in system -wide leaks and non - revenue water through capital investment in the system is projected to save another 250 AFY of water for a total demand reduction of approximately 1,443 AFY in 2020. L-1 Table 1. Water Conservation Programs Sample Water Conservation Program for the City of Santa Monica -April 2, 2013 Residential HE Clothes Washer Rebate Single Family 890 30 $24,100 $216,600 Residential HET Rebate Single Family 3568 77 $14,400 $129,700 Residential WRlC Rebate Single Family 1920 79 $29,300 $263,800 City's Cash for Grass Rebate Program Single Family 1,100,000 square feet 51 $209,900 $1,889,100 City's Orlp lrri8atlon Rebate Program Single Family 1,100,000 square feet 24 $139,900 $1,259,4DO City's HE Nozzle Rebate Program Single Family 550,000 square feet 7 $52,500 $472,300 Water Smart Software-5% Reduction in Water Use (NEW) Single Fancily 3,040customers 8.._. $26,600 $239,300 0.8gpf Toilets (Direct Installation) (NEW) Multi Family 5,496 73 $174,800 $1,573,100 Residential HE Clothes Washer Rebate Mull! Family 544 19 $9,800 $88,600 Residential HET Rebate Multi Family 4,000 13 $16,200 $145,400 Laminar Flow Restrictors for St. John's Medical Center (NUM) Commercial 664 6 $1,500 $13,600 Commercial Dry Vacuum Pump Rebate Commercial 40 3 $1,400 $12,600 Commercial Co rnectionless Food Steamer Rebate Commercial 2 1 $100 $500 Commercial Zero Water Urinal Rebate Commercial 4 Ol $25 $200 Commercial Ultfa•Low Volume Urinal Rebate Commercial 544 8 $3,500 $31,100 Commercial Conductivity Controller Rebate Commercial 2 4 $0 $0 Commercial HET Rebate Commercial 200 5 $2,500 $22,900 CII Cooling Tower Treatment- Zero Olowdown(NEW) Commercial 2 1 $200 $1,400 Coin-Operated Laundry Machine Retrofit (NEWT Commercial 45 360 $3,500 $31,800 HETs for St, Johns Medical Center (NEW) Commercial 10 0.1 $100 $1,100 0.125 gpf Urinals for St. John's Medical Center(NEW} Commercial 7 0.1 $40 $4GO 1.5 gpm Faucet Aerators for St. John's Medical Center (NEW) Commercial 158 0.3 $800 $6,900 SMM USD Audit$ &Retrofits - Assumes 5% Reduction in Total Institutional Maintained through 5 $94,400 $849,400 H2O Use (NEW) 2020 Figure 3 shows the potential effect of implementing the recommended water conservation programs on the City's projected water demand assuming the "good economy' water demand projection previously described. Implementation of the recommended water conservation programs reduces the volume of additional water the City must produce to meet its self- sufficiency goals from approximately 6,500 AF to approximately 5,000 AF. While water conservation alone will not enable the City to meet its water self- sufficiency goal, it can significantly reduce the volume of additional water supply required. Figure 3 - Demand Reduction as a Result of Recommended Water Conservation Program Water Demand While conservation programs are often less expensive than physically constructing and operating new water supply or treatment facilities, the noted reductions in projected water demand are not without a cost. For the City of Santa Monica, these costs include the cost of the actual conservation program, increased staff and public outreach costs associated with new program implementation and management, and the associated loss in water sales revenues (this latter component is partially offset by reduced water supply production costs). Based on the City's current demands and water revenues, it is estimated that the effective annual cost for the recommended water conservation program reflected in Table 1 is approximately $7.2 million through 2020. fin? 16,000 15,490AF 14,000 ro -..'". — „. ....> .> — --- - _. _. _ 14,045 AF 12,000 m 10.000 d LL 9,000 AF rojected additional supply needed 6,000 — -- - -- -- - - -- 111s,000 or 2020 demand Is approximately - AF. 4,000 2,000 ?0fS 209 7o -10 1�0f1 ,20,8 `�% 700 Year —Projected Demand Demand After Conservation —Existing Local Supply Capacity While conservation programs are often less expensive than physically constructing and operating new water supply or treatment facilities, the noted reductions in projected water demand are not without a cost. For the City of Santa Monica, these costs include the cost of the actual conservation program, increased staff and public outreach costs associated with new program implementation and management, and the associated loss in water sales revenues (this latter component is partially offset by reduced water supply production costs). Based on the City's current demands and water revenues, it is estimated that the effective annual cost for the recommended water conservation program reflected in Table 1 is approximately $7.2 million through 2020. fin? Additional Local Groundwater Opportunities In addition to implementing the water conservation programs described above, the City will also need to expand local groundwater resources. Currently, the City obtains local groundwater from the Santa Monica Basin via five wells. These wells are located within the Arcadia and Olympic Sub - basins, and can produce approximately 3,000 acre feet per year (AFY). Additionally, there are five wells located outside of the City limits in the Charnock Sub -basin with a combined production capacity of approximately 6,000 AFY. However, since 1995, the City has had to purchase most of its annual water supply needs from the Metropolitan Water District (MWD) as the Charnock well field was shut down due to methyl tertiary butyl ether (MTBE) contamination. This supply is now being used in the system after treatment at the Charnock Water Treatment plant. The total groundwater production capacity from the Arcadia, Olympic, and Charnock sub - basins is currently estimated at approximately 9,000 AFY. Another study of the groundwater basin was recently performed by Richard C. Slade and Associates, LLC (RCS). The study suggests the City may have additional local groundwater opportunities within the Olympic, Charnock and Coastal Sub - basins. The Coastal sub -basin has not been utilized as a groundwater source to date due to salt water intrusion; additional treatment would be required to utilize water from this basin. Additional efforts are needed to assess potential sites and derive the potential quality and quantity of additional well production for the City's supply portfolio. Incorporating the RCS study with the SWMP's evaluations and discussions, has led to the following preliminary recommendations for additional local groundwater production and treatment facilities. These preliminary recommendations are: • Expansion of the existing Arcadia Water Treatment Plant • Design and construct new Olympic Water Treatment Plant (Gillette /Boeing Settlement Project) • Rehabilitate old wells and drill additional new wells in the Olympic, Charnock and Coastal Sub - basins • Develop and implement improvements in treatment efficiency to reduce the amount of water lost to brine disposal during treatment (reduction of brine water losses from 18% to 9 %) 11 While additional engineering and hydrogeologic studies will be required to determine a realistic production capacity for these wells, it is believed that the City could attain as much as an additional 6,000 AFY of local water if all of these strategies were implemented. Of course, an equivalent increase in local water treatment capacity is required to deliver this water to the City's customers, requiring an increase in the capacity of the Arcadia Water Treatment Plant and /or using settlement funds and other sources to construct a new water treatment plant (currently referred to as the Olympic Water Treatment Plant as it is designed to focus on treating water from the Olympic sub - basin). The current approach for this future water supply strategy is reflected graphically on Figure 4. Figure 4. Groundwater Basins and Facilities 12 .enend As Monica W @Os i Existing Santa Monica Welis fi Existing Water Treatment Facilities E PfopoSed Water Treatment Facility city of sanla Monica Boundary i 9 Santa Monica Basin Beyond the additional local groundwater opportunities described above, potential exists for joint - development of nearby under - utilized groundwater basins, including the Hollywood and Central Basins. These are multi - jurisdictional opportunities that will require coordination between the City and the Los Angeles Department of Water and Power and /or the City of Beverly Hills. Given the nature of institutional - related projects, these opportunities are considered as more long -term water supply options and are not included in the list of potential new groundwater opportunities available to the City to meet its self- sufficiency goal by 2020. Rainwater Harvesting and Stormwater Capture Rainwater harvesting (the capture and onsite use of rainwater for landscape irrigation purposes) offers minimal opportunity as an additional water supply within the City. Santa Monica's Mediterranean climate is characterized by seasonal rainfall, with the majority of rain falling in the winter months of November through March. Conversely, landscape water demands are highest in the warmer, drier months of April through September. Analyses were performed to evaluate and compare the potential for rainwater harvesting based on average monthly precipitation data and monthly landscape water demand for residential and commercial customers. Results of the above analysis indicate that the potential for rainwater harvesting as a supply option in Santa Monica is limited by the large size of cisterns and customers' motivation to install them. For most residential and commercial customers in the City, space is limited; therefore, it was assumed customers would install no more than 500 gallons of rain harvesting capacity. A cistern of this size is depleted quickly, even in the wetter winter months. In the drier summer months, rainwater supply is minimal, and when available, landscape irrigation demand far exceeds the capacity of the cistern therefore depleting this supply rapidly. Residential cistern installation, even with a rebate of $1,000 per cistern, has been minimally accepted by the City's customers. Accordingly, it is estimated that the rainwater harvesting incentive program may provide only 1 -2 AF per year. 13 Similarly, a City -wide stormwater capture program offers a seasonal, unreliable additional water supply option for the City. A scenario was developed in which stormwater captured through the City's storm drain system would be routed to the Santa Monica Urban Runoff Recycling Facility (SMURRF) for distribution to landscape irrigation customers. It is estimated that a City -wide stormwater capture program could generate an additional 160 AF of supply per year. The costs for this program are not yet developed. Recycled Water Currently, the City distributes approximately 85 AFY of recycled urban runoff to customers for landscape irrigation and indoor commercial use through the SMURRF and associated distribution system. The City does not operate a wastewater treatment plant and thus does not have a local source for additional recycled water supplies. However, the City could partner with adjacent agencies that currently produce recycled water in order to bring additional recycled water supplies to its customers. The West Basin Municipal Water District (WBMWD) operates a recycled water system that terminates near Marina Del Rey, which may provide the City with a potentially feasible source for recycled water. The Los Angeles Department of Water and Power (LADWP) also looked into utilizing this source and has prepared a master plan that suggests a potential for connection at this same location. A recycled water market study was performed to estimate the potential for recycled water use within the City. Results of this study indicate that 350 AF of recycled water could be used by the City's dedicated landscape irrigation customers that reside along some key corridors into the City. Figure 5 proposes a potential recycled water distribution system that focuses on delivering year -round recycled water to the City's existing SMURRF facility and serves a number of customers along the way. 14 Figure 5. Proposed Recycled Water System Map Existing Dedicated Landscape ® City Boundary Irrigation Demand (AFY),' Existing Recycled Water Customers g 6.5 Residential 6. 5 Non - Residential 5.1 - £+Non - Residential 8.4 - M Non-Revdential A SMURRF Plant City of Los Angeles ® ®® Potential System Westside SMURRF Distribution System Main 15 Proposed Branch Lines Proposed Connection from ®m West Basin Line to SMURF Demand Areas A - Main Line to Smurf B t - South Airport Branch B2 - North Airport Branch C -Neilson Way Branches D -Virginia Aan Park Branch E - Colorado Ave Branch F - Broadway Ave Branch In this potential system, the City may be able to partner with LADWP to jointly fund a new transmission and pumping system that connects to the WBMWD line and bring recycled water to the southeast side of Santa Monica (Figure 6). The project would require approximately 5 miles of pipe from its current point of termination. Establishing the partnerships and agreements necessary to make this type of inter - agency program a reality will require time, and this option should be considered a long -range strategy for the City. It is unlikely that the City could deliver additional recycled water to its customers before 2020. Portfolio Options and Per Capita Water Consumption Targets Implementation of the strategies described above (Option 1) suggest that the City can meet its self- sufficiency goal through a combination of water conservation programs, additional local groundwater production (Figure 6), and additional supplies from rainwater harvesting and City -wide stormwater capture. In the future, the City may also be able to establish additional recycled water supplies through inter - agency partnerships with adjacent water agencies and municipalities. Figure 7 presents three different options for obtaining water self- sufficiency. Details for each option are presented in this section. 16 Figure 6. Water Supply and Demand Comparison Including New Supply Opportunities Water Demand 18,000 16,000 ___ - - -_- 14,000 — — — _—_.� v 12,000 � 10,000 _- . - - - -- LL 9,000 Acre Feet G 8,000 6,000 4,000 2,000 - - -- o -- `'O'l,J X019 Existing Supply M °° - - ° Water Demand After Conservation Projected additional supply - needed for 2020 demand is -- approximately 5,000 AF %t" Gap, 6,500 rocs Fors 1�0 ro8 tl Year 17 5,000 AF m I ®° `�o O - - - - - - Supply After Augmentation Figure 7. Potential Portfolios 7000 6000 5000 4000 a i Q 3000 2000 1000 0 Potential Portfolios for Meeting the City's Sustainability Goal (closing the 6,500 AFY gap) Option 1: Staff Option 2: Proposed Option 3: Long Range Recommendation Policy Considerations Regional Recycled Water (135 GPCD) (123 GPCD) (133 GPCD) Proposed Policy Considerations (New Conservation Regulations) 9 Existing and Proposed Conservation Programs as Rain Harvesting and City -Wide Stormwater Capture Proposed Regional Recycled Water ■ Existing SMURRF Recycled Water ® Existing and Proposed Groundwater Option 1 To implement Option 1, "Staff Recommendation," the City would close the gap of 6,500 AF and achieve water self- sufficiency by 2020 through increased activity in existing water conservation programs, new water conservation programs, maximize new groundwater supplies, new rainwater harvesting and stormwater capture programs described above. In this scenario, it is estimated that the City's per capita water use would be 135 gallons per capita per day (GPCD) in 2020. This portfolio should achieve the City's goal of water self- sufficiency by the year 2020, but will fall short of the City's current water use reduction target adopted in the 2010 Urban Water Management Plan (UWMP) in response to Senate Bill x7 -7 (SBx7 -7). In contrast, the City's adopted target per capita water use in 2020 is 123 GPCD. In The State formula for calculating GPCD is not the standard formula used in the water conservation field. The standard formula divides the water used by the residents by the number of residents. Following this formula residents are only using 86 GPCD. The State formula divides all the water used by all of the customers (businesses, residents, and landscapes) and divides that by the number of residents. This does not allow the City to include the nearly 250,000 daily visitors to the City in the calculation. Option 2 To implement Option 2, "Proposed Policy Consideration," the City would close the gap of 6,500 AF, achieve water self - sufficiency and meet the SBx7 -7 target of 123 GPCD by 2020 through very aggressive water conservation programs and policies, limited new groundwater supplies, new rainwater harvesting and stormwater capture programs described above. In this scenario, it is estimated that the City's per capita water use would be 123 GPCD in 2020. In order to reduce demand to levels low enough to permanently achieve a per capita water use of 123 GPCD, 2,880 AF of the City's potable water demand must be reduced or offset by non - potable sources and new regulations requiring residential and commercial property owners to retrofit plumbing fixtures, landscaping with water - saving plants and irrigation, or banning sprinklers and lawns before 2020. Staff is asking for Council's comments on the new policies proposed below by the Advisory Committee for the SWMP. The proposed policies target specific customer categories that have the highest potential for saving water. • Ban sprinklers and lawns in residential properties - savings 1,280 AFY • Ban sprinklers in the parkways but allow for hand - watering of street trees • Require all hotels to retrofit plumbing fixtures to meet the City's current Green Building Ordinance requirements • Require landscaping to meet the City's current Green Building Ordinance requirements before the sale of the property • Require City -owned facilities and landscapes to reduce water use 19 Option 2 could reach the 123 GPCD goal but at a high cost to residents, businesses, and the City to pay for the required retrofits and increased staffing to enforce the requirements. Option 3 To implement Option 3, "Long Range Regional Recycled Water," the City would develop additional recycled water through regional inter - agency partnerships as a means of reducing potable water use. This option should be considered a long range program and should not be relied upon to meet an adopted per capita water use requirement. As discussed earlier, it is unlikely that these partnerships could be established and the infrastructure completed by 2020. Recommendations Option 1 is the portfolio recommended by staff. In light of this additional analysis, staff also recommends that the City change its water use reduction target when it adopts an update to its UWMP in 2015. Specifically, in its 2010 UMWP, in accordance with SBX7 - 7 the California Department of Water Resources' Methodologies for Calculating Baseline and Compliance Urban Per Capita Water Use, the City calculated several water use targets in accordance with the SBX7 -7 requirements. At the June 28, 2013 Council meeting, staff recommended Method 3 with a target of 141 GPCD, because it is achievable based on the existing budget and staffing limitations for implementing conservation programs and policies, water saving products available in the market, willingness of customers to voluntarily conserve water by participating in numerous conservation programs, and would not open the City up to possible litigation for failing to meet the target by 2020. However, Council chose to formally adopt the stricter 20 percent reduction of 123 GPCD. Since the formal adoption of the 123 GPCD target puts the City at potential risk for litigation for waste and unreasonable use of water resources in 2021 and it does not appear to be achievable, it is recommended that the 141 GPCD target be adopted in the City's 2015 UWMP. This change is allowable under SBX7 -7 and reduces the City's 20 potential risk of litigation. At Council's direction, reducing overall water use a full 20 percent to achieve a per capita water use of 123 GPCD could still be an internal City goal and implemented over a longer period of time beyond 2020. Next Steps As discussed, the SWMP is well on its way. Refinement to some of the program opportunities, evaluation of hydraulic capacities, development of costs, and the preparation of an accompanying rate study are the primary next steps. With the Sustainable Water Master Plan approximately 70% complete and the current solid financial position of both the water and wastewater funds, staff has placed additional work on the water and wastewater rate study on hold until the options, approaches, and programs described in this report are presented to Council. Council's recommended sustainable water supply strategy will inform the rate study, which will commence in FY2013 -14. The rate study is logically sequenced after the SWMP is completed, in order to allow capital projects identified in the SWMP to be included in the rate study. The rate study will be the subject of a future Council study session in the coming fiscal year. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared by: Gil Borboa, P.E., Water Resources Manager Approved: Forwarded to Council: 21 Rod Gould City Manager eIm t. V 'a w4i m[ k[ o�n [wmabnr�a[nnk�tl<otrdUwvmk+ -vNt ;rah) �naVAA,, C. 4i[a pioyirzlnuecrydSrAtf V4&4 -411 Voll LADWP _ City of Los Angeles 7.3% increase Proposed Golden State Water Simi Valley Western MWD West Riverside County San Diego City of San Diego Burbank City of Burbank Newport Beach City of Newport Beach 22,8% increase Effective 2011/12 10.0% increase Effective September 2010 7.75% increase 6th increase since 2007 13.5% increase Approved 6/10 18.6% increase 5000 X606 O C? 4000 41 U 3000 R L g MIR 0 Energy Intensity of Selected Water Supply Sources in Southern California S h r & p°61