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SR 05-09-2017 7A Ci ty Council Report City Council Meeting : May 9, 2017 Agenda Item: 7.A 1 of 15 To: Mayor and City Council From: Susan Cline, Director , Public Works, Office of Sustainability & the Environment Subject: Introduction for First Reading an Ordinance on Water Neutrality Recommended Action Staff r ecommend s that the City Council introduce for first reading the attached Water N eutrality ordinance that requires new developments and new or enlarged pools, spas, water features, and ponds to stay within the same water use as the existing property through the installation of water -efficient fixt ures and systems on -site. If compliance cannot be met, the applicant must offset the projected additional water use elsewhere in the city. The City will provide a fee -based turn -key retrofit program and/or the applicant can install retrofits at self -select ed sites at their own cost. Executive Summary In response to Council’s November 24, 2015 directive, staff has drafted a water neutrality ordinance. This ordinance would help Santa Monica achieve the goal of becoming water self -sufficient by 2020 through limiting the city’s water demand. The ordinance would not allow a new development to exceed the water use of the existing development on that property. If that requirement could not be met onsite , the excess water demand would have to be offset by reduc ing the water demand (through fixture replacement) at another site within the city. The water neutrality ordinance would require funding totaling $2,647,728 million over five years. Of that total, an initial appropriation of $2,272,123 would be required t o prepare it for implementation. Of this total $2,0 89,74 9 would be completely recouped, through newly -established fees, as new developments are approved and completed. The remaining $5 57 ,979 would fund a technical design assistance program to help designer s incorporate new and more water -efficient tec hnologies to achieve compliance, software updates to administer the program, and initial costs to setup the program. The $5 57 ,979 would not be recoverable through fees. Background On November 24, 2015, Council directed staff to develop a water neutrality ordinance with the intent to keep the city’s total water demand from increasing as a result of new development (Attachment A). Council directed staff to prepare an ordinance that would require 1) new developmen ts to stay within the same water use as the existing property 2 of 15 through the installation of water -efficient fixtures and systems; 2) provide an In -lieu Fee option if compliance could not be met; and 3) provide a credit for affordable housing. Council also d irected that implementation of an offsite retrofit program funded by In -lieu Fees be provided by City staff and/or a vendor. Discussion Over the last year and a half staff has convened regular meetings and solicited a significant amount of public input to assist with the development of this ordinance. Stakeholders have included the Water Neutrality Stakeholder Committee (Stakeholder Committee) which is comprised of representatives of water agencies, non -governmental organizations, sustainability consulta nts, architects, developers, manufacturers, engineers, plumbers, Los Angeles County; the City’s Water Advisory Committee; and staff from the Public Works Department, Planning and Community Development Department, and the City Attorney’s Office. Based on t he input received from these groups, staff is recommending the proposed water neutrality ordinance (Attachment B) that would: 1) Require new developments to be as water -efficient as possible through the design and installation of the most water -saving plu mbing fixtures and/or non - potable water systems including graywater, rainwater harvesting, blackwater systems, and municipally supplied recycled/non -potable water (such as water from the Santa Monica Urban Runoff Recycling Facility (SMURRF)). 2) If compli ance cannot be met after all practical water -saving devices and systems are included in the design, the developer would be required to cover the costs to offset the water at an offsite location through the City’s turn -key retrofit program and/or perform re trofits at self -selected sites at their own cost and risk. 3) The City’s initial turn -key retrofit program would include an Administration Fee and In -lieu Fee to cover the costs to implement and retrofit existing properties with water -saving toilets, urin als, showerheads, faucet aerators and/or other permanent water saving measures. 4) Affordable housing would receive a credit. Instead of a 1:1 ratio for water offsets, 100% affordable housing new development projects would be required to meet a 0.5:1 offs et ratio.