SR-03-25-2014-3FCity Council Meeting: March 25, 2014
Agenda Item: 3 -F°
To: Mayor and City Council
From: Dean Kubani, Manager, Office of Sustainability and the Environment
Martin Pastucha, Director Public Works
Subject: Recommendation to Adopt a Resolution Clarifying Uses of the Water
Demand Mitigation Fees
Recommended Action
Staff recommends City Council adopt the attached resolution clarifying the appropriate
uses of the Water Demand Mitigation Fee for water - efficiency related public facility
capital improvements
Executive Summary
On February 26, 1991, Council approved an ordinance to authorize the Water Demand
Mitigation Fee (Fee). On March 19, 1991, Council adopted Resolution No. 8196 (CCS)
setting the Fee. The Fee is collected for new development projects, substantial
remodels, and plumbing alteration projects to offset the increase in water demand. The
staff report for that resolution stated that the Water Demand Mitigation Fee would be
used for retrofits of toilets, showers and faucets in public facilities, City supported
housing projects and non - profits to reduce the impact and demand on the City's water
supply. It provided that this list of retrofit targets could be expanded depending on the
magnitude of revenue proceeds from the Fee. The Fee generates approximately
$300,000 annually. Advances in plumbing fixture, landscaping, rainwater and
stormwater capture technologies, have resulted in a wide array of new water efficient
products and infrastructure improvements for collecting, treating and distributing water.
In order for the City to meet its goal to become water self- sufficient and meet its State
requirement to reduce water demand 20 percent by 2020, additional water - efficiency
projects and expansion of existing programs will be needed. By clarifying the expanded
uses of the Water Demand Mitigation Fee in the attached resolution, the revenue
collected can be used for a wider array of water - efficiency related public facility capital
improvements in compliance with the Mitigation Fee Act.
The list of priority projects would include installations of water - efficient plumbing
pipeline, landscaping, rainwater and stormwater capture equipment along with the
processes and equipment that minimize the water needed for the distribution system.
1
Background
On February 26, 1991, Council approved an ordinance authorizing the Water Demand
Mitigation Fee (Ordinance Number 1571 (CCS), codified in SMMC Section 7.16.050).
On March 19, 1991 Council adopted Resolution No. 8196 (CCS) setting the Fee and
providing that it would be used to retrofit water inefficient plumbing fixtures in the City.
The March 19 1991 staff report outlined priority retrofits of toilets, showers and faucets
in public facilities as well as City supported housing projects and non - profits. The staff
report also stated that depending on the magnitude of revenues from the fee, the list of
priority retrofit projects could be expanded. The intent of the fee was to mitigate the
increase in water use of new and substantial remodels in single - family, multi - family and
commercial projects during a water shortage. The fees collected were to be used to
augment the City's BaySaver Program, also referred to as the water conservation
program.
Council declared a Water Shortage Advisory on May 12 2009 and extended it on
September 13 2011. It remains in effect and calls for a voluntary 10% reduction in city-
wide water use.
In response to these water shortages and the City's sustainability goals, approximately
92% of all toilets, urinals, showerheads, and faucets in Santa Monica have been
retrofitted with low -flow plumbing fixtures as part the City's conservation rebate and /or
direct installation programs. However, advances in plumbing fixture technology,
irrigation and landscaping have resulted in even more water - efficient products and
processes that are not specifically named in the original staff report and resolution.
Discussion
The priority retrofits for public buildings listed in the original staff report, including toilets,
showers and faucets have been and would continue to be implemented as newer, more
water - efficient, fixtures become available. However, retrofitting toilets, showers and
faucet aerators alone will not be sufficient to meet the goal of water self- sufficiency
2
established by Council on March 8, 2011. Additional water conservation and efficiency
projects and programs would need to be implemented to reach these targets.
On May 14, 2013, Council approved Option 1 included in the proposed Sustainable
Water Master Plan Study Session. Option 1 includes maximizing groundwater supplies,
increasing water conservation programs, and implementing new rainwater and
stormwater capture programs.
The Water Demand Mitigation Fee generates approximately $300,000 annually. The
amount varies depending on how many new construction and remodel projects are
permitted each year. With the clarification of the appropriate uses, the Water Demand
Mitigation Fee by 2020 could generate a total of approximately $2,100,000. These funds
could help offset water - efficient related public facility capital improvement projects, that
would likely account for greater level of water reduction than if solely used for toilets,
showers, and faucets.
As contemplated by the original resolution, by clarifying the additional public
improvements for which the Water Demand Mitigation Fee may be used, the revenue
collected can fund an expanded array of water - efficiency related public facility capital
improvements that could result in greater water savings. The list of priority projects
would include installations of water - efficient plumbing, pipeline, landscaping, rainwater
and stormwater capture equipment and processes and equipment that minimize the
water needed for the distribution system.
3
Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared by: Kim O'Cain, Sustainability Analyst
Approved:
Dean Kubani
Sustainability Manager
Approved:
Martin Pastucha
Director Public Works
Attachment: 1 — Resolution
Forwarded to Council:
Rod Gould
City Manager
Reference:
Resolution No. 10804
(CCS)