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SR-10-28-2014-8BCity Council Meeting: October 28, 2014 Agenda Item: 8 -13 To: Mayor and City Council From: Dean Kubani, Manager, Office of Sustainability and the Environment Martin Pastucha, Director of Public Works Subject: Stage 2 Water Supply Shortage Implementation Recommended Action Staff recommends that the City Council: • Review and comment on the proposed updates to the Water Shortage Response Plan (WSRP) Water Use Allowances; • Review and comment on a proposed drought surcharge; • Review and comment on staff's proposed outreach plan; • Direct staff to return with a revised WSRP for adoption incorporating Council directives; • Review and comment on proposed changes to the Municipal Code and direct staff to return with related ordinances. Executive Summary California is in an unprecedented drought and the City has made a commitment to achieve water self- sufficiency by 2020. Reducing water use now is both a drought - management strategy and a means towards long -term water self- sufficiency and water reliability. In this report, staff recommends changing the WSRP in order to achieve the mandatory water reduction targets and to make the WSRP easier to understand and implement. Outreach and education are crucial to the success of implementing the requirements of the WSRP. The outreach would include presentations about the proposed changes to the WSRP at community forums and events. Public comment would be incorporated into the WRSP presented to Council for adoption. A drought response outreach and education campaign would be developed with the assistance of a strategic communications firm. Proposed WSRP changes include: • Stage 2 Water Supply Shortage - Water Use Allowances for all water customers would be 80% of their 2013 water usage. 1 • Drought Surcharges - for customers that exceed their bi- monthly Water Use Allowance in order to recover the costs associated with the implementation of measures to address the Stage 2 Water Supply Shortage. • Residential water conservation thresholds for which customers using less than or equal to the threshold would not be required to reduce 20% from their 2013 water usage baseline. • A process to grant variances to a Water Use Allowance in order to avoid a health and safety emergency or for a financial hardship. Staff also recommends modifications to existing municipal code sections in order to effectively implement and enforce water conservation requirements. Proposed changes include updating the Water Conservation Ordinance, waiving permit fees for landscape projects participating in the City's rebate program, consolidating water related ordinances, and allowing exemptions of individual water meters due to space limitations in the public- right -of -way. The proposed ordinance changes would be brought to Council in January 2015. The estimated costs to implement measures to address the Stage 2 Water Supply Shortage are $862,000 for FY2014 -15 and $592,000 in FY2015 -16. Background Since 2007, with the exception of 2011 -12, California has been in a drought. The current drought has seen some of the lowest rainfall and snowpack since 1896. On May 27 2008 Council adopted amendments to SMMC 7.16 - Water Conservation, which gave Council the authority to determine and declare a water supply shortage and to adopt a Water Shortage Response Plan (WSRP). The ordinance also includes water restrictions such as no hosing paved areas, no irrigation overspray and runoff, and no sprinkler irrigation between 10:00 AM and 4:00 PM any day of the week. The current WSRP was developed in 2009 to comply with the State's Urban Water Management Plan requirements. The WSRP was based on the California Department of Water Resources 2007 Urban Drought Guidebook. On June 9, 2009 Council adopted the WSRP and declared a Water Shortage Advisory calling for a voluntary 10 percent reduction in water use in response to the drought. The WSRP was included in the City's 2010 Urban Water Management Plan which was subsequently approved by the State. This Advisory remained in place as part of the effort to reduce the need to import water from MWD and reach the City's goal for water self - sufficiency by 2020. 2 On January 17, 2014, the Governor declared a Drought Emergency and asked all Californians to voluntarily reduce water use by 20% in support of the Governor's efforts. On January 2 22014, the City increased its voluntary conservation target from 10% to 20 %. On March 1, 2014, the Governor signed Senate Bill 104, a state drought relief legislation which implements numerous drought relief measures. One such measure is to make any violation of a regulation adopted by the State Water Resources Control Board ( SWRCB) an infraction, punishable by a fine of up to $500. On July 15, 2014, the SWRCB adopted an Emergency Regulation for Statewide Urban Water Conservation which requires urban retail water agencies, like Santa Monica, to implement all requirements and actions of their water shortage response plans that impose mandatory outdoor irrigation restrictions and prohibit certain activities in promotion of water conservation. On August 12 2014 Council adopted a resolution declaring a Stage 2 Water Supply Shortage which changed the drought response from a voluntary 20% reduction in water use to a mandatory 20% reduction and directed staff to return with a detailed Stage 2 Water Supply Shortage implementation plan including proposed amendments to Section 7.16 of the Municipal Code and the WSRP, a financial impact analysis to address revenue reductions and additional staffing and program implementation costs, and an implementation timeline. This report provides that information. Discussion California is in an unprecedented drought, and the City has made a commitment to achieving water self- sufficiency by 2020. Therefore, water conservation is the new normal. Reducing water use now is both a drought- management strategy and a means towards long -term water self- sufficiency and water reliability. Staff recommends that the k? Council consider this item as a companion item to 8 -C on the October 28, 2014 agenda, which is an update on the City's effort to achieve water self- sufficiency through the Sustainable Water Master Plan. The Sustainable Water Master Plan includes findings and analysis of recently conducted financial and rate studies prepared for the Water and Wastewater Funds. Five -year adjustment options to fund the projected capital programs, infrastructure improvements, and conservation programs related to the City's 2020 self- sufficiency goal are presented. Proposed implementation of Mandatory 20% Citywide Water Conservation Staff recommends that the Council consider a 20% reduction from 2013 water use (the water use baseline) by all sectors (single - family, multi - family, commercial, landscaping) and direct staff to include this goal in an updated WSRP in order to implement the 20% mandatory reduction authorized, by Council on August 12, 2014. Mandatory conservation requirements for landscapes, cleaning, water features, waste, leaks and drinking already codified would continue to be implemented through the City's water conservation ordinance (Chapter 7.16 of the SMMC). The City would continue to provide customers with water audits, access to rebates for landscape, rainwater harvesting, and other efficiency measures, and offer additional conservation programs and training to facilitate long -term behavior change. Customers would be encouraged through a citywide education and outreach campaign to take specific conservation measures in and around their homes and businesses. In 2013 total city -wide water use was 4.2 billion gallons (11.8 million gallons per day). In order to reduce 20 %, water customers combined need to save 800 million gallons a year (2.2 million gallons per day) to reach an annual total of 3.4 billion gallons or a new daily total of 9.6 million gallons per day. Of the total water used in Santa Monica, about 26% is used by single - family water customers, 41% is used by multi - family water td customers, 28% is used by commercial water customers, and 5% is used by landscape only water customers. Staff is proposing that an updated WSRP reflect the necessary water reduction goals based on current water demand trends and the Sustainable Water Master Plan. Proposed changes are detailed below. Redefining Water Use Allowances Water Use Allowances are required in the existing WSRP for Stages 1, 2, 3 and 4 as a means to achieve specific water reduction targets. Staff proposes using 2013 water usage as the baseline to calculate Water Use Allowances. Where the City's water billing records show the water customer used no water in 2013, the baseline will be calculated using the average water usage in 2013 for customers in the same customer class and meter size. The existing WSRP exempts certain water customers from Water Use Allowances due to health and safety concerns, including hospitals, emergency care facilities, assisted living facilities, and those using SMURRF non - potable water. As part of the proposed changes, residential and commercial water customers would not be exempt but may apply for a variance to prevent an emergency condition related to health and safety and /or financial hardship. ® Residential Water Use Allowances The current WSRP Residential Water Use Allowance, detailed in the August 12, 2014 staff report, gives each water customer (defined as those individuals or businesses listed on the water account) a specific amount of water per person for essential uses like bathing, drinking, and cleaning, and additional water based on a percentage of their previous usage for non - essential uses like landscaping and pools. The non - essential use is seasonal so each customer receives more water in the summer when demand is higher and less in the winter. The per person amount 5 is currently set at 68 gallons per person per day based on average usage of existing plumbing fixtures including toilets, showers, and washers. The number of people per household is based on 2000 census data which estimated 4 people for single- family homes and 1.5 people for each multi - family unit. Staff has since determined that a 68 gallon per person per day allowance, plus a percent for essential and non - essential use, would not achieve a 20% reduction of residential use below the existing Water Use Allowance baseline. In addition, this type of calculation is difficult to explain to customers and challenging to implement with existing resources. In order to achieve the 20% reduction, staff proposes the following changes for single - family and multi - family water customers: ® Eliminate the per person Water Use Allowance ® Implement a Water Use Allowance as a percent reduction from a customer's 2013 baseline water usage ® Implement a water conservation threshold for single - family and multi - family water customers whereby customers using less than or equal to the threshold would not be subject to additional savings requirements and Drought Surcharges. Proposed WSRP Residential Water Use Allowance Residential water customers would be given a Water Use Allowance by billing cycling. A billing cycle is typically 60 days. The examples below show an average water customer's 2013 water usage baseline and Water Use Allowance by billing N Stage 1 Stage 2 Stage 3 Stage 4 Water Available per 85% 80% 70% 50% Customer Residential water customers would be given a Water Use Allowance by billing cycling. A billing cycle is typically 60 days. The examples below show an average water customer's 2013 water usage baseline and Water Use Allowance by billing N cycle. For residential customers, typically more water is used during the summer for landscape irrigation, so the Water Use Allowance would be higher in the summer. Example of average single - family water customer Water Use Allowance (this example includes a water conservation threshold). One HCF equals 748 gallons and is how water usage is shown on water customers' utility bills: Example of average multi - family water customer (11 units) Water Use Allowance: Jan Mar May Jul Sep Nov 2013 Water Usage 19 HCF 21 HCF 23 HCF 44 HCF 35 HCF 33 HCF Water Use Allowance 22 HCF 22 HCF 22 HCF 35 HCF 28 HCF 26 HCF Example of average multi - family water customer (11 units) Water Use Allowance: ® Commercial Water Use Allowances The current Stage 2 reduction target for commercial customers is 10 %. Staff proposes increasing that to 20% in an effort to make the water allowances more equitable between residential and commercial water customers. Proposed WSRP Commercial Water Use Allowance Jan Mar May Jul Sep I Nov 2013 Water Usage 100 HCF 119 HCF 122 HCF 175 HCF 173 HCF 125 HCF Water Use Allowance 80 HCF 95 HCF 98 HCF 140 HCF 138 HCF 100 HCF ® Commercial Water Use Allowances The current Stage 2 reduction target for commercial customers is 10 %. Staff proposes increasing that to 20% in an effort to make the water allowances more equitable between residential and commercial water customers. Proposed WSRP Commercial Water Use Allowance Commercial water customers would be given a Water Use Allowance by billing cycling. A billing cycle is typically 60 days. The examples below show what an average water customer's 2013 water usage baseline and Water Use Allowance by billing cycle. 7 Stage 1 Stage `2 Stage 3 Stage 4 % Water Available per 85% 80% 70% 50% Customer Commercial water customers would be given a Water Use Allowance by billing cycling. A billing cycle is typically 60 days. The examples below show what an average water customer's 2013 water usage baseline and Water Use Allowance by billing cycle. 7 Example of average commercial water customer Water Use Allowance: Example of City Hall Water Use Allowance: Jan Mar May Jul Sep I Nov 2013 Water Usage 370 HCF 485 HCF 316 HCF 423 HCF 621 HCF 433 HCF Water Use Allowance 296 HCF 388 HCF 253 HCF 338 HCF 497 HCF 346 HCF Example of City Hall Water Use Allowance: ® Landscape Water Use Allowance There are approximately 750 water accounts that service landscaped areas only. The majority of those landscape water accounts are for two public agencies, the City and Caltrans. Staff proposes providing each public agency with one water allowance for all their landscape accounts. This provides flexibility to provide water where it is needed most such as for trees, new landscaping (for example, the recently installed Pico Blvd median), and sports fields. Staff recommends keeping the existing WSRP water reduction targets for landscape -only accounts. For Stage 2 this is a 20% reduction from the water customer's 2013 baseline. Existing WSRP Landscape Water Use Allowance Jan Mar May Jul Sep Nov 2013 Water Usage 179 HCF 220 HCF 269 HCF 355 HCF 343 HCF 190 HCF Water Use Allowance 143 HCF 176 HCF 215 HCF 284 HCF 274 HCF 152 HCF ® Landscape Water Use Allowance There are approximately 750 water accounts that service landscaped areas only. The majority of those landscape water accounts are for two public agencies, the City and Caltrans. Staff proposes providing each public agency with one water allowance for all their landscape accounts. This provides flexibility to provide water where it is needed most such as for trees, new landscaping (for example, the recently installed Pico Blvd median), and sports fields. Staff recommends keeping the existing WSRP water reduction targets for landscape -only accounts. For Stage 2 this is a 20% reduction from the water customer's 2013 baseline. Existing WSRP Landscape Water Use Allowance Water Use Allowance for City of Santa Monica and Caltrans: Stag e 1 Sta e 2 Stage 3 Stage 4 Water Caltrans 14,386 HCF 11,509 HCF Available per 85% 80% 70% 50% Customer Water Use Allowance for City of Santa Monica and Caltrans: E 2013 Baseline Water Use Allowance per Year City Landscape 134,537 HCF 107,630 HCF Caltrans 14,386 HCF 11,509 HCF E Drought Surcharges Staff proposes Drought Surcharges for customers that exceed their bi- monthly Water Use Allowance in order to recover the costs associated with the implementation of measures to address the Stage 2 Water Supply Shortage. These costs include but are not limited to water conservation rebates, enforcement of water conservation ordinances, and outreach. These proposed measures are not recovered through the City's existing and proposed water rate structure (item 8B on the October 28, 2014 Council agenda). These Drought Surcharges are subject to Proposition 218 requirements and would be noticed accordingly and subject to a protest hearing before adoption. If the drought worsens, additional conservation goals may be recommended for Council adoption in the future. Staff recommends the drought surcharge be calculated by multiplying the water used in excess of the Water Use Allowance times the highest tier rate for that billing period. For example a single - family customer that used 32 HCF which is in Tier 2 ($3.74 per HCF) and which exceeds their Water Use Allowance by 3 HCF Would be charged $11.25 in Drought Surcharges. Residential and commercial water customers that can demonstrate they have taken all necessary measures to save water and cannot achieve a 20% reduction due to financial hardship and /or to prevent an emergency condition related to health and safety, may apply for a variance to increase their Water Use Allowance. Detailed information regarding Drought Surcharges and variance process would be incorporated into the updated WSRP presented to Council for approval. The following water conservation thresholds are proposed to recognize the successful water - efficiency efforts of many residential water customers. Approximately 42% of single - family water customers and 80% of multi - family water customers use less than the proposed threshold. Customers whose water use is below these thresholds would not be required to reduce 20% from their 2013 baseline. However, these customers are 9 encouraged to save more, if possible. Residential water customers that exceed the threshold would be subject to the drought surcharges. Proposed water conservation thresholds for single - family water customers: Stage 1 Stage 2 Stage 3 Stage 4 22 HCF per bi- 22 HCF per bi- 16 HCF per bi- 16 HCF per bi- monthly billing monthly billing monthly billing monthly billing period period period period Proposed water conservation thresholds for multi- family water customers: Stage 1 Stage 2 Stage 3 Stage 4 11 HCF per bi- 11 HCF per bi- 8 HCF per bi- 8 HCF per bi- monthly billing monthly billing monthly billing monthly billing period for each period for each period for each period for each multi - family unit per multi - family unit per multi - family unit per multi - family unit per water account water account water account water account The examples below show the Water Use Allowance and potential Drought Surcharges for average residential and commercial customers. These water billing charges are based on current water rates. Example of Stage 2 Drought Surcharges for average single - family water customer: 10 Jan Mar May Jul Sep Nov Water Use Allowance 22 HCF 22 HCF 22 HCF 35 HCF 28 HCF 26 HCF Water Usage: 17 HCF 18 HCF 20 HCF 38 HCF 32 HCF 22 HCF Usage Beyond Budget: 0 HCF 0 HCF 0 HCF 3 HCF 4 HCF 0 HCF Water Bill: $46.25 $50.00 $57.50 $125.00 $102.50 $80.00 Drought Surchar e: $0.00 $0.00 $0.00 $11.25 $15.00 $0.00 Total Bill: $46.25 $50.00 $57.50 $136.25 $117.50 $80.00 10 Example of Stage 2 Drought Surcharges for average multi - family water customer (11 units): Example of Stage 2 Drought Surcharge for average commercial water customer: Jan Mar Ma y Jul Sep Nov Water Use Allowance 80 HCF 95 HCF 98 HCF 140 HCF 138 HCF 100 HCF Water Usage: 80 HCF 96 HCF 97 HCF 147 HCF 140 HCF 98 HCF Usage Beyond Budget: 0 HCF 0 HCF 0 HCF 7 HCF 2 HCF 0 HCF Water Bill: $312.50 $321.87 $323.21 $586.01 $535.43 $378.07 Drought Surcharge: $0.00 $0.00 $0.00 $39.34 $11.24 $0.00 Total Bill: $312.50 $321.87 $323.21 $625.35 $546.67 $378.07 Example of Stage 2 Drought Surcharge for average commercial water customer: ® Multi- family Drought Surcharge Pass - through The majority of multi - family properties in Santa Monica have only one meter for the entire building. For properties not subject to rent control and where tenants pay the landlord for water in addition to their rent, Drought Surcharges may be passed onto the tenants. The Rent Control Board will discuss drought surcharge pass- through for rent controlled properties at its December 11, 2014 meeting. On February 26, 1991, Council adopted Drought Surcharges and pass- through surcharges to tenants. The pass- through surcharges were granted upon verification that low -flow plumbing fixtures were installed. If low -flow plumbing fixtures were not installed and verified, the water customer was not allowed to pass on those surcharges to the tenants. 11 Jan Mar May Jul Sep Nov Water Use Allowance 296 HCF 388 HCF 253 HCF 338 HCF 497 HCF 346 HCF Water Usage: 290 HCF 390 HCF 245 HCF 350 HCF 505 HCF 326 HCF Usage Beyond Budget: 0 HCF 2 HCF 0 HCF. 12 HCF 8 HCF 0 HCF Water Bill: $1,035.30 $1,392.30 $874.65 $1,249.50 $2,012.05 $1,163.82 Drought Surcharge: $0.00 $7.14 $0.00 $42.84 $70.40 $0.00 Total Bill: $1,035.30 $1,399.44 $874.65 $1,292.34 $2,082.45 $1,163.82 ® Multi- family Drought Surcharge Pass - through The majority of multi - family properties in Santa Monica have only one meter for the entire building. For properties not subject to rent control and where tenants pay the landlord for water in addition to their rent, Drought Surcharges may be passed onto the tenants. The Rent Control Board will discuss drought surcharge pass- through for rent controlled properties at its December 11, 2014 meeting. On February 26, 1991, Council adopted Drought Surcharges and pass- through surcharges to tenants. The pass- through surcharges were granted upon verification that low -flow plumbing fixtures were installed. If low -flow plumbing fixtures were not installed and verified, the water customer was not allowed to pass on those surcharges to the tenants. 11 Variance Provisions A variance is a request for an increase to a water customer's Water Use Allowance. Staff proposes the development of a Variance Policy that outlines who can request a variance, reasons a variance may be requested, how to request a variance, required documentation for applying for a variance, how variance requests are reviewed, reasons for denying a variance request, inspection requirements, and variance notifications In order to achieve a 20% reduction in water use, it is proposed that variances only be granted to customers who demonstrate that all required water saving actions have been implemented and upon verification that additional water is necessary: • To prevent an emergency condition relating to health and safety • To prevent a financial hardship for single - family water customers Drought Response Implementation The goal to reduce water use immediately in order to lessen the impacts of the drought on local groundwater and imported water supplies will benefit the entire community. It will take the commitment of staff, residents, businesses, their employees and visitors to reduce use by 20 %. An interdepartmental team, including the City Manager's Office, Office of Sustainability and the Environment, Public Works, and Finance has collaborated on the recommended water conservation policies, conservation programs, enforcement, and plans for community outreach and education. Council may declare by resolution an end to the emergency water shortage when the drought ends and all requirements of the WSRP would cease. The Sustainable Water Master Plan (item 8 -C on this agenda) includes new water conservation programs and enhancements to existing programs that will help the City reach its goal to be water self- sufficient by 2020. The full implementation of those programs is estimated to save 1.3 million gallons of water per day. However, the Stage 2 Water Shortage reduction target is 2.2 million gallons of water per day. The SWMP 12 does not quantify water savings that might be achieved through education and enforcement of existing water conservation ordinances. In order to immediately reduce water use to lessen the effects of the drought and maintain water conservation levels to meet the City's water self- sufficiency goal, staff is recommending speeding up the implementation of the SWMP as a defense against the drought. Water Conservation Unit The scale of effort needed requires the creation of a new six - person Water Conservation Unit within the Office of Sustainability and the Environment and a citywide education and outreach campaign. The estimated costs to implement these measures are $862,000 in FY2014 -15 and $592,000 FY2015 -16. Funding for the unit and its operations would be generated through the collection of Drought Surcharges. Four new limited -term positions are proposed. This unit, which is detailed below, would work collaboratively with other departments throughout the implementation of the Stage 2 Water Shortage to ensure that it is effectively and efficiently administered. Once the drought is over, the unit would be scaled back or disbanded. ® One Senior Sustainability Analyst to help coordinate the drought response alongside the City Manager's Office, oversee the Water Conservation Unit in the Office of Sustainability and the Environment, manage the water conservation programs outlined in the SWMP, manage the water conservation programming budget, and develop and update policies as needed. This would be a full -time permanent position that would replace one existing Sustainability Analyst position. ® Two Sustainability Analysts to assist in developing and implementing the education and outreach campaign, assist with implementing the water conservation programs including toilet direct installations and plumbing retrofits in City facilities, and to assist with reporting for programming and grant funding. One position would be a full -time limited term position (two years). The second 13 position would be filled by an existing permanent OSE staff member who is currently responsible for such projects. ® Two Water Resources Specialists to educate customers in the field about existing water restrictions and enforce those restrictions, to perform variance inspections, to perform inspections for the sustainable landscape rebates and bay saver fee, and perform inspections for Green Building ordinance and Urban Runoff ordinance as needed. These would be full -time limited term positions (two years). ® One Project Support Assistant to provide customer service related to water conservation, maintain the stock of give -away items (showerheads, aerators, hose nozzles) and process rebates, warnings, and citations. This would be a full- time limited term position (two years). Additional contracted assistance to review variance requests may be needed. In order to catalyze community action to address the drought, staff is in the process of requesting proposals from communication firms for assistance with a citywide education and outreach campaign and will return to Council this year with a recommendation to engage a firm. In addition to limited term staff and contractor support, supplies and expenses, the outreach campaign, and the ability to make facility improvements to accommodate the new unit, staff is requesting $80,000 in bridge funding to cover the costs of water conservation rebates until the SWMP and proposed rates are adopted. Budget adjustments for these costs are included in item 8 -D, FY 2014 -15 Expenditure Changes and Rate Changes, on the October 28, 2014 Council agenda. M Estimated Cost to Implement the Water Conservation Unit, Education Campaign, and Water Conservation Rebate Program City's Response to the Drought The City has been a leader in sustainability efforts since 1994 and will continue to lead by example. The SWMP is the City's most recent plan to make Santa Monica resilient and self- sufficient in the face of climate change. A plan this comprehensive had never been developed in California. The SWMP can achieve water self- sufficiency if fully implemented. This is especially important given the unreliability and high cost of imported water. The City has already taken several steps to reduce its water use and will implement additional water savings measures in order to reduce use by 20 %. To date, the City has: 1. Reduced water use for aesthetic purposes. In light of the drought and to offset water use in the new water features in Tongva Park and Ken Genser Square, both of which use recirculated water, the water feature at the Public Safety Facility has been turned off. Staff proposes permanently converting this water feature into a sustainable landscape area. 2. Reduced water use for cleaning purposes by: a. Reducing pressure washing the Promenade b. Reducing cleaning of tennis courts 15 Limited Term Staffing $ 4 405,000 Contracted Services E60,OOO E517FY $ 75-16 Supplies and Expenses $ 37,000 Facility Improvements $ Outreach and Education $ 200,000 $ 150,000 Conservation Rebates $ 80,000 TOTAL $ 862,000 $ 592,000 City's Response to the Drought The City has been a leader in sustainability efforts since 1994 and will continue to lead by example. The SWMP is the City's most recent plan to make Santa Monica resilient and self- sufficient in the face of climate change. A plan this comprehensive had never been developed in California. The SWMP can achieve water self- sufficiency if fully implemented. This is especially important given the unreliability and high cost of imported water. The City has already taken several steps to reduce its water use and will implement additional water savings measures in order to reduce use by 20 %. To date, the City has: 1. Reduced water use for aesthetic purposes. In light of the drought and to offset water use in the new water features in Tongva Park and Ken Genser Square, both of which use recirculated water, the water feature at the Public Safety Facility has been turned off. Staff proposes permanently converting this water feature into a sustainable landscape area. 2. Reduced water use for cleaning purposes by: a. Reducing pressure washing the Promenade b. Reducing cleaning of tennis courts 15 3. Reduced water use for entertainment purposes by: a. Reducing splash pad water use at Douglas Park, Tongva Park, Virginia Avenue Park, and Annenberg Beach House By June 2015, staff will: 4. Identify areas within parks and other landscaped sites where turf can be replaced by drought - tolerant plants within: a. Parkways and planters (with no trees) b. Common areas /open spaces 5. Conduct an assessment of the City's park and landscape site irrigation systems to increase effectiveness and decrease water use with improved irrigation efficiencies such as: a. Installing additional weather based irrigation controllers, flow meters and master valves wherever possible /feasible b. Converting from conventional "spray" sprinklers to "rotor" water conservation nozzles wherever possible /feasible c. Converting more areas to use drip irrigation The City's response to the drought will consider improvements in technology, changes in landscape design and practices, and operational modifications which may have budget implications. Specific actions will be analyzed and may be brought to Council for approval, depending on project scope and cost. Water Use in New Development Between 2003 and 2013 the number of total water accounts in Santa Monica increased from 14,979 to 17,709 but total water use decreased by about 1 %. Even though the number of water customers increased over the past ten years, overall water use declined slightly. The biggest increases in water use during that period were from dedicated landscape water meters (mostly for public parks and open spaces). Another 16 area where water use has increased significantly is in the single family residential sector where use has gone up over 7% during the past four years. Much of the single - family usage is from additional landscape irrigation due to much lower than normal precipitation during that time. All new or major remodel projects in the City, including residential and commercial, are required to meet very strict state and local water efficiency requirements. In order to meet the requirements of the new State CalGreen building standards, all new developments must be at least 20% to 40% (depending upon building type) more water efficient than buildings that met the previous code. For example, the most recent low income housing development uses 43% less water than similar size existing low income housing developments. The newest hotel uses 23% less water than existing similar size hotels. All new developments and remodels are required to pay a Water Demand Mitigation Fee based on the estimated first year of water demand. This Fee is calculated using water fixture flow rates listed in the State Plumbing Code. The Fee is used to fund city - related water efficiency projects such as pipe replacement to fix or prevent leaks, cisterns, irrigation, toilets, urinals, etc. This investment in the City's infrastructure helps to meet the immediate goal to reduce use in response to the drought and the long -term goal for water self- sufficiency. Outreach Education and Public Input Educating Santa Monica's residents, workers, and visitors about the drought, water use allowances, and specific ways they can save water is vital to the success of the drought response and the City's long -term water self- sufficiency strategy. Staff has already begun educating the community about the Stage 2 Water Shortage and the need for mandatory water conservation. In August and September 2014, staff made presentations at the following community events: Task Force on the Environment, North of Montana Neighborhood Association meeting, Chamber of Commerce Breakfast 17 Mixer, Apartment Association of Greater Los Angeles monthly meeting, and the People's Academy. Staff provided information and water- saving products at community events celebrating 20 years of the Sustainable City Plan during September 2014, including AltCar Expo, Green Prize for Sustainable Literature, the screening of the movie Fed Up, and the Sunday Farmer's Market. An education campaign would be developed and implemented over the next one to two years with the assistance of a strategic communications firm and City staff. The goals of the campaign are to educate and motivate community members to reduce overall water use 20 %. Targeted messages would be created for each audience to'promote specific behavior change. Customers would know the five things they can and should do to conserve water as well as the long -term benefits of water self- sufficiency. Print advertising and signage, direct mail, radio, web and social media, earned media, and community outreach at city locations and community events would be employed. Additional resources such as the Chamber of Commerce, Convention and Visitors Bureau, Certified Green Businesses, local neighborhood associations and community groups would be engaged to help get the word out. In addition to educating community members about why and how they should save water, staff will engage a diverse group of community members in conversations regarding the proposed changes to the WSRP. Staff will provide these opportunities between mid- November and mid- December 2014. Public comments will be incorporated into the proposed WSRP which will be presented to Council in January 2015. Staff will present the draft WSRP for public input at community forums and events such as the Ocean Park Neighborhood Association meeting, Chamber of Commerce committee meetings for hotels, restaurants, and general members, and the Apartment Association of Greater Los Angeles meeting. In addition, staff will contact the highest water using customers including hotels, Santa Monica Malibu Unified School District and Santa Monica College. Several of these water customers are proactively implementing water conservation projects, including the Loew's Hotel, DoubleTree Hilton Hotel, Sheraton Le Meredien Delfina Hotel, and Comfort Inn. 18 In addition to educating the community, specific training will be provided for City customer service staff in several departments, so they understand the WSRP, what information to provide to customers and /or to whom customers should be directed. Municipal Code Changes Staff recommends modifications to existing municipal code sections in order to effectively implement and enforce water conservation requirements. If the Council so directs, staff expects to bring certain ordinance changes in January 2015 (e.g. fee waivers and clean -up of existing processes) while others may take additional time to research and prepare (e.g. private property groundwater well regulations). In particular, the Governor just signed three groundwater management bills setting forth various additional state laws regulating groundwater. Staff will need to study the impacts of these various laws on the scope and extent of the City's ability to regulate groundwater pumping by private parties. Proposed changes to existing code sections: ® Consider waiving the permit fee for Architectural Review Board to review landscape projects participating in the City's Sustainable Landscape Rebate Program • Consider consolidating and updating existing water related ordinances and rescind outdated code requirements in order to simplify water regulations throughout the municipal code • Consider an exemption for individual water meters due to space limitations in the public- right -of way ® Consider a regulation or ban of groundwater pumping by private property owners, especially during a water emergency 19 Proposed Drought Response Implementation Schedule: Project October November December SWMP & -Rates Council directs Prop 218 notices Staff presents staff on water rate are issued. options to option(s) Staff presents community options to community WSRP Council directs Prop 218 notices Staff presents staff on WSRP are issued. options to options Staff presents community options to community Municipal Code Council directs Changes staff on municipal code changes Education Request for Vendor selected Education plan Campaign Proposals issued and request for developed and proposals due Council to authorize contract negotiations. ME 2015 Project January February March April SWMP & Rates Council may adopt water rate and new rates may go into effect WSRP Council may Drought adopt WSRP Surcharges and Water Use may go into Allowances effect may go into effect Municipal Code Council may Code changes Changes adopt code go into effect changes Education Education plan Education plan Education plan Education Campaign implemented implemented implemented plan implemented Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Salary and position changes related to creating the water conservation unit are included in item 8 -D on the October 28, 2014 agenda, as are appropriations for supplies, expenses, contracted services, facility improvements and conservation rebates. Funding for the Water Conservation Unit and its operations would be generated through the collection of Drought Surcharges. Staff will return to Council if additional budget actions are required in the future. Actions may include those related to 21 launching a citywide outreach, education and behavior - change campaign and implementing a drought surcharge. Prepared by: Kim O'Cain, Sustainability Analyst Approved: k&4�� . Dean Kubani Manager, Office of Sustainability and the Environment Forwarded to Council: Rod Gould City Manager 22