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SR 11-27-2018 7E City Council Report City Council Meeting: November 27, 2018 Agenda Item: 7.E 1 of 12 To: Mayor and City Council From: Susan Cline, Director, Public Works, Office of Sustainability & the Environment Subject: Introduction and First Reading of Updates to the Water Neutrality Ordinance Recommended Action Staff recommends that the City Council introduce for first reading the attached ordinance updating Santa Monica Municipal Code section 7.16.050 to expand the definition of new development, to modify the definition of the baseline water demand, and to align terminology with the Planning and Community Development Department’s operational terminology. Executive Summary The City of Santa Monica has a goal to become water self-sufficient, with 100% of Santa Monica’s water supply from local water sources. This leadership goal requires innovative approaches to weaning Southern California from construction and landscaping approaches that inefficiently use scarce potable water. The Water Neutrality Ordinance, effective since July 1, 2017, is one of the tools the City established to help achieve this goal by addressing the additional water demand created by new development and new or enlarged pools, spas, water features, and ponds. After one year of implementation, staff have identified recommended improvements to the ordinance that would expand applicability and more effectively reduce new water demand from development. These changes would:  Expand the definition of new development to capture all projects that result in new water demand  Modify baseline water demand determinant to ensure all new water demand is accounted for, specifically, but not limited to vacant lots 2 of 12  Require a 50% offset for Accessory Dwelling Units (ADU) to support affordable housing and state law  Update terminology to ensure no temporary or final certificate of occupancy are issued before Water Neutrality compliance review has been completed  Increase transparency by adding a notation to the building record so all potential tenants and buyers are aware of Water Neutrality compliance for the property  Require all properties seeking a building permit or projects occurring on or after November 27, 2018 to comply with the updated ordinance Background On November 24, 2015, Council directed staff to develop a Water Neutrality Ordinance with the intent to prevent 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 developments to stay within the same water use as the existing property 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 directed that implementation of an off -site retrofit program be funded by In-lieu Fees. The ordinance became effective on July 1, 2017. Past Council Actions 11/24/2015 (Attachment A) Council directed staff to develop a water neutrality ordinance 05/09/2017 (Attachment B) Council approved the Water Neutrality Ordinance Discussion To achieve water self-sufficiency, the City must close the gap that exists between the total water demand in Santa Monica and the total water generated by the local supply. The Water Neutrality Ordinance (SMMC 7.16.050) addresses this issue for all new developments by limiting a project to the historical water use for that individual parcel. Since the ordinance went into effect on July 1, 2017, all projects that meet the ordinance’s definition of new development have been required to comply. 3 of 12 Current Ordinance Definitions The Water Neutrality Ordinance defines new development in alignment with City Code as follows:  Repair, alteration, modification, addition to, or rehabilitation of an existing structure with any interior plumbing fixture(s), where demolition will occur in accordance with Section 9.25.030(A)(1) and (2) or any successor thereto  A new structure with any interior plumbing fixture(s)  A new or enlarged pool, spa, pond, or water feature The City generates a baseline water demand for those projects that meet the Water Neutrality definition of new development. The baseline water demand is determined by averaging the previous five years of water use on the development site. Where no water use records exist such as vacant lots or properties demolished and vacant for multiple years, the five-year average water usage of water customers in the same customer class with the same meter size is used. If a new development project is projected to use more water than the baseline water demand on the parcel, then the applicant is required to offset 100% of this new potable water demand through either paying Water Neutrality fees to fund a Water Neutrality Direct Install Project, completing on-site retrofits, or completing a combination of the two. New development projects that are 100% affordable housing are required to offset 50% of the new water demand above the baseline. New development projects with projected usage equal to or less than their calculated baseline water demand are not required to offset water usage. These projects are compliant with Water Neutrality, as they are not increasing water demand. To determine if a water offset is required, the new development applicant is required to submit a Water Neutrality Application for review. City staff review the project’s plan set and application to ensure all inputs are consistent. If an offset is required, the new development applicant is required to perform an offset action before receiving final 4 of 12 approval from the City and issuance of a certificate of occupancy or temporary certificate of occupancy, whichever comes first. New development projects that do not meet the definition requirements under Water Neutrality are not subject to the Water Neutrality Ordinance requirements. This includes but is not limited to: 1. Projects with less than 50% demolition occurring 2. Projects that increase the number of stories of a structure, but do not remove 50% of the exterior wall or necessary and integral structural component All new developments are also required to comply with the California Gree n Building Standards Code in effect at the time of application submittal. Due to stricter building code measures, new developments are required to retrofit all older water -using fixtures, as defined under the California Green Building Standards Code, with more efficient models and require all new appliances and fixtures to be installed to meet the efficiency measures in the current Code. Between July 1, 2017 and June 27, 2018, a total of 220 projects submitted were reviewed by staff. 183 projects met the requirements for compliance with the Water Neutrality Ordinance. Of these projects, 93 were projected to use less water than their baseline water demands. A total of 90 projects submitted had new water demand to offset totaling 1,214,634 gallons per year. A total of 37 project submittals did not require compliance with the Water Neutrality Ordinance because they did not meet the definition. This includes substantial residential remodels and large mixed-used projects. Lessons Based on Implementation Experience The current definition of new development and the method of calculating baseline water demands has resulted in projects with significant new water demand not being required to comply with the Water Neutrality Ordinance or only offsetting a portion of th eir new projected water demand. An estimated 2,001,454 gal/year of new water demand was not offset through Water Neutrality. 5 of 12 Over the course of the first year of implementation, staff noted that:  Some new development applicants were demolishing up to 49% of the exterior structures with the intent to add more plumbing fixtures on the development site and/or dwelling units. Santa Monica Municipal Code Section 9.25.030(A)(1) and (2) define demolition as where more than 50% of the exterior wall elements are removed and are no longer an integral or necessary structural component of the overall building. This also includes when 50% or more of the principal support structure is demolished. Therefore, projects demolishing up to 49% of the exterior structures would not be required to comply with this ordinance.  Some new development applicants were indicating on plan sets the intention to install no irrigation systems or landscape. However, in most of these circumstances, a new landscape with an irrigation system had been added on the site after the certificate of occupancy was issued.  Some projects that involved the removal of the roof to add additional stories to an existing building footprint did not trigger the 50% demolition criteria. As a result, these projects were not required to comply with the ordinance even though they added a significant amount of new square footage.  Properties with no historical water usage (i.e. parking lots or vacant lots) only had to offset above the default baseline water demand, which is an average based on meter size and meter class for the proposed site, even if the parcel was not using any water previously.  Temporary or final certificate of occupancy was issued before Water Neutrality compliance was completed.  Accessory Dwelling Units (ADUs) were required to offset at 100%. Although the 37 projects submitted that did not have to comply with Water Neutrality were only 17% of the total project submittals reviewed by OSE staff, they made up 62% of the total projected new water demand within the City. Only an estimated 38% of new water demand was required to be offset through the Water Neutrality compliance process. 6 of 12 To better meet the intent of the ordinance, staff recommends the following modifications:  Revise the definition of new development under the ordinance.  Modify the protocol for calculating baseline water demand.  Modify ADU offset to 50% (the current ratio for 100% affordable housing).  Update terminology to ensure all projects are not given a temporary or final certificate of occupancy until Water Neutrality is met.  Add notation on parcel building record of Water Neutrality compliance.  Require that all new development seeking approval of a building or landscape permit on or after November 27, 2018 shall be subject to compliance with the revised ordinance.  Exempt single-family residences who are already using water efficiently and their minor project will not cause them to exceed the water conservation threshold . New Development Definition Revision To better meet the intent of the ordinance, staff recommends expanding the definition of new development to capture all projects that result in new water demand in the future . Specifically, staff recommends adding the following definitions to section (1)(b) of the ordinance:  a new, enlarged, or relocated irrigation system;  a new structure with any plumbing fixture(s);  a change in use that results in the addition of any plumbing fixture(s);  repair, alteration, modification, addition to, or rehabilitation of an existing structure that results in the net increase of any plumbing fixture(s); To achieve the City’s intent for W ater Neutrality, applicants must be accountable for a project’s indoor and outdoor water use. Under the current ordinance, an installation of a new irrigation system would not trigger compliance even though it is adding water demand to the parcel that was non-existent before. By expanding the definition of new development to include all new, enlarged, or relocated irrigation systems, th e ordinance would further strengthen existing regulations through the State’s Model Water Efficient 7 of 12 Landscape Ordinance (MWELO) and the City of Santa Monica’s Water-Efficient Landscape and Irrigation Standards (WELIS). MWELO and WELIS both establish best management practices for residential and commercial design, installation, and maintenance of landscape and irrigation systems. Santa Monica will be the first municipal agency to implement a water offset ordinance to this degree for new irrigation systems for non-agricultural use. The revised ordinance sets a project’s applicability to comply with Water Neutrality based on water use and water fixtures to ensure all new water demand is captured. The expanded definition of new development would include all specific tenant improvements and remodel projects that will increase water demand. This would include but is not limited to added bathroom facilities, cooling towers, or changes in commercial property to a high-water-using sector tenant. Modifying the Baseline Water Demand Staff identified under the current ordinance’s determinant of baseline water demand that new water demand was not truly being accounted for. Specifically, properties that had no historical usage in the last five years or minimal usage such as parking lots or vacant lots were assigned a default baseline water demand based on the five-year average water usage of water customers in the same customer class with the same meter size. In most cases, this baseline was much greater than actual use on the property. Therefore, these properties were only required to offset usage above the baseline and not total projected new water usage. For example, a parking lot with zero water usage could be provided a default baseline of 500,000 gallons per year for their project based on their meter size and customer class. If their new water demand is projected to be 600,000 gallons per year, under the current ordinance, they would only have to offset 100,000 gallons and not their actual new water demand of 600,000 gallons per year. To meet the intent of the Water Neutrality Ordinance, staff recommends that all new projects except for 100% affordable housing must offset 100% of all new water demand. The current definition of baseline water demand per the ordinance is as follows: 8 of 12  The most recent five-year average of water use according to City records at the proposed site will be used; where no records exist, the five-year average water usage of water customers in the same water customer class (single-family, multi- family, commercial, industrial, landscape, etc.) with the same meter size will be used. Staff recommends modifying the definition of baseline water demand to:  Where no records exist for only one hundred percent affordable housing projects, the five-year average water usage of water customers in the same water customer class (single-family, multi-family, mixed-use, commercial, industrial, landscape, etc.) with the same meter size will be used. New developments that are not 100 percent affordable housing would be required to offset the complete amount of the new water demand. Addressing Accessory Dwelling Units California Government Code Section 65852.2 was established to promote the development of accessory dwelling units (ADU). To support state law and ensure Water Neutrality compliance is not a prohibitive barrier to ADU developments, staff recommends ADU developments regulated under Section 9.31.0300 shall be required to offset 50% of any new water demand. Updating Terminology Staff recommends updating terminology to be consistent with the City of Santa Monica’s Building and Safety Division of the Planning and Community Development Department. The ordinance currently states the following in Section (f) Verification of Water Offset Requirements:  No temporary or final certificate of occupancy, whichever is issued first, shall be issued for the new development until: 9 of 12 Staff recommends the following update to remain consistent with the Planning and Community Development Department’s operational procedures:  No temporary or final certificate of occupancy, whichever is issued first, for a new development or a final approval for any permit required to comply with this Section shall be issued for the new development until: Updating the terminology to include final approval is important to eliminate confusion for new development applicants on requirements and make the Water Neutrality Ordinance consistent with other code requirements in Building and Safety’s permitting process. Increasing Transparency for Greater Compliance It is important for buyers and tenants to be aware of the compliance requirements set under Water Neutrality for their property to help them make informed decisions and maintain compliance with their Water Use Allowance. To ensure Water Neutrality compliance and W ater Use Allowance for each property is known and communicated to buyers or tenants, staff recommends adding a notation to the parcel building record. This added language would clearly state the relationship between Water Neutrality and the Water Shortage Response Plan (WSRP) adopted on September 8, 2015 in accordance with Section 7.16.030 (Attachment C). The City’s WSRP defines how Water Use Allowance is calculated and the guidelines for compliance. For all projects that are required to comply with the ordinance, a notation would be added on the building record to the parcel informing the buyer or tenant that the new development is subject to the Water Use Allowance established by its compliance with this ordinance. Therefore, the property owner, selling agent, tenant, or realtor would have full knowledge of the project’s historical compliance with the ordinance. Applicability All new development seeking approval of a building permit for a project occurring on or after November 27, 2018 and projects already in the pipeline would be subject to compliance with this ordinance. This would ensure that all new developments, including proposed major developments, would be subject to the updated code. It is important to 10 of 12 update applicability and apply this ordinance to all new development projects that have not begun the building process as they still have time to meet compliance. By not requiring these major development projects already in the pipeline to comply solely because they submitted an application to the City prior to July 1, 2017, the City is losing on the opportunity to capture millions of gallons of new water demand these projects will create. To be a successful tool in reaching water self -sufficiency, it is necessary for the ordinance to address all new development and the impact of new water demand they may create. Staff recognizes single-family residences have been doing their part to conserve water. On average 69% of single-family home customers use below their water use allowance. The proposed revisions to the definition of new development will not impact these single-family residences who are already using water efficiently and submitting a building permit for a tenant improvement project. Per section (b)(2), existing single - family residences who are repairing, altering, modifying, adding to, or rehabilitating an existing structure that results in the net increase of any plumbing fixture(s) where the projected water demand is less than the water conservation threshold will be exempt from compliance. By adding this exemption, staff is ensuring those who are efficient water users are not required to save more than they already have. Since July 1, 2017, tenant improvement projects (including commercial and mixed use projects) are not required to comply with any City water conservation policy for new development (SMMC 7.16.050). This was not the intent of the ordinance. The City on average processes 1,434 tenant improvement projects a year. It is important to require these projects to comply with Water Neutrality, so staff can verify if these projects are adding new water demand. By closing this loophole, any project that has not received approval for a building permit as of November 27, 2018 must comply with this ordinance. Staff has identified less than 20 commercial and mixed-use properties that would be impacted due to the proposed new development definition. These projects do not need to comply with the current version of the Water Neutrality Ordinance but would be 11 of 12 required to comply with the updated version. Staff does not anticipate these identified projects would require a wholesale redesign or loss of housing units. Prior to the adoption of Water Neutrality, all new development projects (including tenant improvement projects) were required to pay a Water Demand Mitigation Fee. Water Neutrality replaced the Water Demand Mitigation Fee. Where a new water demand exists, applicants now have the options to offset this new water demand either by paying an in-lieu offset fee and/or performing water-saving retrofits somewhere else in the City of Santa Monica. In order to assist these identified projects to comply, staff plans to reach out to the project applicants with extensive technical support. The revisions to the ordinance’s applicability (section (a)) will strengthen the City’s ability to meet water self-sufficiency. Outreach Staff held two meetings with the Water Neutrality Stakeholder Committee on September 19 and 25, 2018 and with the Land Use Committee at the Chamber of Commerce on November 8, 2018 to discuss the proposed modifications to the ordinance and receive feedback. Staff also presented to the Task Force on the Environment on August 20, 2018 and October 15, 2018. During the October 15th presentation to the Task Force on the Environment, a motion was made in support of the recommended ordinance modifications. The Building and Safety Division has processed an average of 1,434 residential and commercial tenant improvement projects a year since 2014. If the recommended ordinance updates are approved by Council, these projects may have to comply with Water Neutrality. Staff would conduct a thorough outreach and educational campaign regarding the ordinance updates to inform property owners and tenants regarding their project compliance requirements for Water Neutrality. Previous outreach and education on Water Neutrality focused on new development as defined under the current definition. Financial Impacts and Budget Actions 12 of 12 There is no immediate financial impact or budget action necessary as a result of recommended action. Staff anticipates additional time spent providing technical assistance to the public. However, a customer service website will be launched in early 2019 to assist in streamlining the application process. Staff will return to Council if specific budget actions are required in the future. Prepared By: Angela VonSlomski, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. November 24, 2015 Staff Report - Water Neutrality Ordinance B. May 9, 2017 Staff Report C. Water Supply Shortage Response Plan D. Ordinance - PW - Water Neutrality Ordinance - 11.27.2018 E. Written Comments 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 1/14 Proposal for Water Neutrality Ordinance Information Department:Public Works, Office of Sustainability & Environment Sponsors: Category:04. Study Sessions Attachments Printout Recommended Action Recommended Action Staff recommends that the City Council review and comment on options for creation of a water neutrality ordinance for new development, tenant improvement projects and major remodels, and provide staff with direction on how to proceed. Staff Report Body Executive Summary At a time when frequent drought conditions are widely predicted to be "the new normal," City Council has directed staff to look at replacing our current Water Demand Mitigation (WDM) fee with a policy to require new development to completely offset the added water demand above the baseline of previous water use on the site. Staff believes that this can be achieved through implementation of a water neutrality ordinance requiring developers to achieve this goal by installing water efficiency retrofits elsewhere in the community; through a modification of the WDM fee; or a combination of both. While many other cities are moving in this direction, there are no "off the shelf" models that fully ensure that water efficiency measures eliminate the need for additional water generated by new development. Santa Monica would be breaking new ground; there are practical advantages as well as disadvantages to the various options, including paying for start-up costs for implementation, ranging from $25,000 to $340,000; potential reductions between $235,000 and $300,000 in future Water Fund revenues from WDM fees under the direct offset approach; and possible annual reductions in Capital Facility Fee revenues of between $375,000 and $475,000. Background On October 28, 2014 during City Council’s discussion of the Water Shortage Response Plan and the Sustainable Water Master Plan, Council directed staff to look into the feasibility of developing requirements to offset or eliminate new water demand related to new development in Santa Monica City of Santa Monica California Staff Report 1468 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 2/14 and report back on what forms those requirements might take. Council also asked staff to look into options for modifying the City’s existing Water Demand Mitigation (WDM) Fee to further incentivize water conservation. Water Demand Mitigation Fee On February 26, 1991, Council approved an ordinance authorizing the WDM 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 amount and specifying that it would be used to retrofit water inefficient plumbing fixtures in the City. 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. It is a one-time fee charged to new development intended to mitigate the total daily water consumption rate projected for the development. The total daily water demand for the project is calculated using standard water demand factors which were developed by City staff. The fee is set at $3.00 for each gallon of daily water demand which must be mitigated. The fee amount and formula for calculating it has not been updated since the fee was adopted. Payment of the fee is triggered by the following: · Single-Family Residence -- for construction of a new residence or whenever adding 50% or greater to the square footage. · Multi-Family -- for construction of a new building or whenever new units are added. · Non-Residential -- for construction of a new building or whenever there is a change of use, changing or adding plumbing fixtures, or adding restaurant seats or square footage. The WDM fee generates approximately $300,000 in revenue annually which is used to fund a variety of water efficiency upgrades to public infrastructure throughout the city, including installations of water-efficient plumbing, landscaping, rainwater and stormwater capture and reuse equipment, and indoor plumbing fixtures. Similar Actions by Other Cities A number of cities and utility districts, primarily in the most drought impacted areas of California, have adopted policies designed to offset water use related to new development. These include the cities of Lompoc, Morro Bay, Napa, and St. Helena; San Luis Obispo County; and water districts in Cambria, Monterey and Soquel Creek. In general these policies either require a developer to directly offset the new water demand of their development project through the installation of water efficiency retrofits elsewhere in the community, or pay an in-lieu fee (similar to Santa Monica’s WDM fee) which is used by the city, county or water agency to fund water efficiency offsets. 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 3/14 Discussion Staff from the Office of Sustainability and the Environment (OSE) have reviewed similar ordinances and regulations adopted by other cities, interviewed staff in the cities of Napa, CA and Morro Bay, CA about implementation and effectiveness of their ordinances, and worked with staff from Planning and Community Development, the City Attorney’s Office, Public Works, and the City Manager ’s Office to develop the options presented in this report. The City’s Task Force on the Environment and Water Advisory Committee have also provided input on the proposals. The Task Force on the Environment adopted the following motion at their October 19, 2015 meeting regarding water neutrality: The Task Force on the Environment recommends that City Council develop and approve a Water Neutrality Ordinance that requires all new projects and major remodel projects must offset any water demand that exceeds the current water use on the project property. (Note: this motion replaces a similar motion adopted by the Task Force on February 23, 2015 regarding water neutrality) Options for Achieving Water Neutrality As noted above, the two primary mechanisms currently in use to promote water neutrality for new development are either 1) requirements for developers to directly offset the calculated new water demand prior to construction of the new development through the replacement of inefficient water fixtures or irrigation systems on existing properties in other parts of the jurisdiction with more water efficient fixtures or systems, or 2) requirements that in-lieu fees be paid to a jurisdiction to complete water offsets. Both of these approaches have positives and negatives and require costs to effectively administer in order to achieve water neutrality. These are discussed below. Direct Offset Approach Following review of similar water neutrality regulations and discussion with staff in other jurisdictions it was clear that the most effective way to ensure that all water demand related to new development is completely offset is to institute the direct offset requirement. Below is a description of how this approach could be implemented in Santa Monica. · Applicability: For all projects that require development review permits, development agreements and all projects over a certain size (e.g. 7500 square feet) that require a change- of-use permit (such as tenant improvement projects), any increase in water demand on the project site would have to be offset. In other words, credit would be given for the existing water use baseline on the site, but any additional water demand would need to be offset on a 1:1 basis. This ratio could also be adjusted to require a greater than 1:1 offset in order to 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 4/14 generate overall water demand reductions in the event that prolonged drought conditions necessitate a higher offset. Projects in the Paso Robles and Los Osos Water Basins in San Luis Obispo County and within the Soquel Creek Water District are currently required to achieve a 2:1 offset ratio. It is important to note that these areas are currently impacted by either restricted water sources, salt water intrusion, or intensive agricultural uses that are not experienced to the same extent in Santa Monica. · Calculate Net New Water Demand: The amount of water demand to be offset would be determined during the plan check process either by requiring a developer to submit information regarding the type and number of water fixtures (toilets, sinks, showers, cooling towers, irrigation systems, etc.) in the new development, or by applying a standardized water use calculation based upon the size and use of the building. In both cases, City staff would be required to review the plan submittals and calculate the projected usage from the development. The projected water demand minus the existing water use at the site (determined by taking the average of water use at the site over the previous three years), or, alternatively, an imputed reasonable allocation based upon the existing zoning allowed for development permitted by right, is the amount that the developer would be required to offset. The developer would have an incentive to design the project to be as water efficient as possible in order to reduce the offset requirement. · Offsets: Eligible offsets would need to be identified in other locations in Santa Monica where water use could permanently be reduced, and then developers would be responsible for implementing those offsets and demonstrating to the City that they have been completed prior to receiving a Certificate of Occupancy. Offsets could include retrofitting toilets in existing buildings, replacing lawns and other high water use landscaping, or upgrading irrigation systems or other infrastructure. Because Santa Monica has a significant amount of older multi-family apartment buildings it is believed that replacing 1.6 gallon per flush toilets with more efficient toilets (1.28 gpf or less), along with efficient faucet fixtures and showerheads, in existing buildings could provide offset opportunities for several years based on the anticipated near term levels of new development and remodels. An offset program could be managed and administered by City staff, by an outside vendor contracted by the City or, as is the case in Morro Bay, CA, a developer could be directly required to identify the offset opportunities, complete the retrofits, and demonstrate to the City that the offsets have been completed. Each of these alternatives, and their associated costs and trade-offs are discussed in more detail below. Estimated Volume of Projects There are presently 32 projects (26 development agreements and 6 development review permits) that are pending review that could be subject to a water neutrality ordinance requiring direct offsets as described above. Table 1 presents the estimated potential water demand of the pending projects, as 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 5/14 analyzed in the 2010 LUCE Final EIR. The total estimated water demand of pending projects equals 695,463 gallons per day, which equates to annual water use of 780 acre-feet per year. The current citywide water demand is approximately 14,000 acre-feet per year so the projected new demand would equate to an increase of about 5.5% beyond current demand. It should be noted that this projected demand does not take into account recently adopted water efficiency standards which would likely result in a smaller increase in water demand than was projected in the LUCE EIR. It should also be noted that for development agreement projects, negotiations have typically included performance standards for water efficient fixtures and a minimum percentage below CalGreen baseline for interior and exterior water use, resulting in projects that would likely have lower demand than presented below. Table 1: Pending Projects Estimated Water Demand Use Residential Retail Office Hotel Cultural Hospital Amount 1,802 units 402,988 sf 106,800 sf 921 rooms 13,700 sf 799,000 sf Estimated Water Demand Factors* 124 gpd/unit 0.15 gpd/sf 0.10 gpd/sf 130 gpd/room 0.11 gpd/sf 0.35 gpd/sf Estimated Water Demand (gpd) 223,448 60,448 10,680 119,730 1,507 279,650 *From 2010 LUCE Final EIR Sample Offset Calculation and Cost for Compliance In order to determine a rough estimate of the potential cost to developers to fully offset their water demand, staff evaluated a small sample of newly built mixed-use and multi-family properties to determine their actual water usage. These water use figures were compared to the previous water use at each site to determine the amount that would be required to be offset in order to achieve water neutrality for that property. The cost of the offset was determined by calculating the average water savings for the replacement of an existing toilet with a more water efficient model and then dividing the amount of water to be offset by the amount of savings per toilet to determine the number of toilets that would need to be replaced in order to meet the offset requirement. Toilet replacement was used for this estimate because it is the most cost effective way to reduce water usage and would likely be the method chosen by most developers to offset new water demand. The buildings evaluated for this estimate had between 36 and 122 individual residential units. The annual water use in the buildings sampled averaged about two million gallons per year with the per unit water usage averaging about 32,500 gallons per year. Based on a current contract with a plumbing company to install high-efficiency toilets, the cost to replace an existing residential type toilet is approximately $350. There would also be a cost for 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 6/14 administration which would be determined based on the projected number of new projects, plan review, verification, certification, and database management. The administration cost could add approximately 25% to 30% to the total cost of the retrofit project. The full costs for retrofitting and administering this type of program would need to be determined through a fee study. For the example below staff chose an existing office building which was replaced with a Tier 2 mixed- use property with 40 residential units. This represents a typical project constructed in the downtown area in the past several years. It is important to note that the potential water offset requirement for any project is highly variable depending on the previous water usage on the property. Sample Offset Calculation and Cost - Mixed Use Building with 40 Residential Units Previous Water Use at Site (Gallons Per Year) Proposed Water Use of New Development (Gallons Per Year) Water Use in Gallons to be Offset Per Year Number of Toilets to be Retrofitted Cost to Retrofit Toilet (doesn’t include admin fee) 34,229 1,300,000 1,265,771 1,084 $379,400 Proposed New Development: 40 residential units Average Water Use per Unit: 32,500 gallons/year Proposed Annual Water Use (entire project): 32,500 x 40 units = 1,300,000 gallons/year New Water Demand to be Offset: 1,300,000 (new development demand) - 34,229 (existing water use at site) = 1,265,771 gallons/year Average Water Savings for each 1.6 gallon per flush (gpf) toilet replaced with a 1.28 gpf toilet: 3.2 gallons per day x 365 days = 1,168 gallons Number of Toilet Replacements Required: 1,265,771/1,168 = 1,084 Toilets Estimated Cost: 1,084 toilets x $350 (cost to retrofit a residential style tank toilet) = $379,400 to offset 1,265,771 gallons per year Based on the above example (and other estimates calculated but not shown here) and factoring in estimated administrative fees, it is anticipated that the cost to a developer to offset 1000 gallons per year of new water demand would be approximately $350 - $500 if the retrofit were accomplished through the replacement of toilets. As noted above, there are many variables that have been used to arrive at this rough estimate and it is only provided to help with discussion. 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 7/14 Implementation and Costs for Direct Offset Options 1. City Administered Program – This option would be entirely administered by the City of Santa Monica’s Office of Sustainability and the Environment. Staff would identify existing properties throughout the city whose owners are interested and willing to have their plumbing fixtures upgraded with more efficient fixtures to offset the additional estimated water use of applicable new development or improvement commercial projects; approve applicable project offset requirements; hire and assign plumbers to install the devices; and track the installations and water offsets. The developer/applicant would pay the City directly for all expenses related to the offset process. This option would require the hiring of one full time staff person. Ongoing annual costs (including staff salary costs) would be approximately $150,000. In addition, first year program start-up costs would be approximately $115,000 for a new staff work station and office equipment, computer software upgrades, and miscellaneous expenses. Alternately, if this option were completed using existing staff, the start-up and ongoing staffing costs would be avoided, however, OSE’s ability to provide water consultations to residents and businesses and effective enforcement of water efficiency regulations would be reduced. This would negatively impact OSE’s drought response efforts and would make it more difficult to achieve the City’s water conservation goals. A City administered program would allow for accurate tracking and verification of achievement of water neutrality goals but is also the most staff intensive and costly. 2. Applicant Administered Program – For this program, the City’s involvement would be minimal. The developer/applicant would be required to identify offset options in the community, negotiate with the property owner where the offsets would be obtained, complete installation of the offset equipment using their own installer, and pay all costs. OSE staff would oversee the verification process with costs for verification able to be recovered through the collection of a permitting and processing fee paid by the developer/applicant. This option would not likely require the hiring of additional staff however if the volume of offset applications is significant this would impact the ability of existing staff to complete other job responsibilities, including water consultations to residents and businesses and effective enforcement of water efficiency regulations, in a timely manner. One-time costs would likely be approximately $25,000 for computer software upgrades and ongoing costs for computer maintenance would be approximately $5000 per year. This option would shift the burden for compliance to the developer, and could become onerous for small development projects to complete. 3. Vendor Administered Program – this option would be similar to option 1 except that the City would hire a vendor to administer all aspects of the program. Staff estimates that the annual cost to complete this scope of work would be approximately $150,000 for an outside vendor, with an additional $25,000 for first year start-up costs. 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 8/14 Options 1 and 3 above would provide the best quality control and tracking of water offsets but would require significant start-up costs to administer. It is anticipated that costs could be recovered through permitting and processing fees, however funds would need to be identified in order to initiate the program. In addition, all options would likely result in a net loss to the City due to a decrease in Water Fund revenues. Implementation of a water neutrality requirement for new development could also result in the reduction in development-related revenues that currently accrue to the Water Fund. New developments are currently required to pay connection fees and capital facility fees to the City in order to connect to the City’s water system. Accrual of these fees based on anticipated future development in Santa Monica was factored into the calculation of the City’s current water rates. Capital facility fees generate approximately $375,000 to $475,000 per year in revenue depending upon the level of development from year to year. The capital facility fees are charged to help offset increased capacity requirements to the water infrastructure that the project will create. If a developer offsets the water demand from a new project, it would be difficult to calculate and charge a capital facility fee for that project. However, while the total water demand in the City would be unaffected, the new development would still be increasing the water demand within its localized area, with a concurrent decrease in the area where the offsets were installed. This localized increase in demand could require localized infrastructure upgrades which would require a new source of funding. An alternative fee mechanism to account for these anticipated costs would need to be developed in order to adequately fund future infrastructure and capacity upgrades. Timeline for Direct Offset Program Development and Launch Staff estimates that a City- or vendor-administered direct offset program could be established and ready for implementation within 11 months. The following steps would be involved in the program development process: • Select water-saving devices • Establish water use savings for selected devices • Establish ConserveTrack software update specifications • Amend contract with ConserveTrack to perform software update and provide on-going maintenance • Create applicant checklist • Research top water users • Invite top water users to apply for the program • Open up the program to the public • Select plumbers through a competitive bid process and award contracts • Develop checklist for plan submittal • Complete fee analysis to allow for recovery of administrative costs 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 9/14 • Possibly modify the existing connection and capacity fee structure • Establish plan check process • Establish installation verification process If Council directs staff to proceed with development of a Water Neutrality Ordinance requiring direct offsets, staff anticipates that a draft ordinance could be brought back to Council for first reading by February 2016. In-Lieu Fee Approach As noted above, the City’s current WDM fee is intended to offset water demand from new development. It is a one-time fee charged to new development to mitigate the total daily water consumption rate projected for the development, and applies to new development and major remodels of single family, multi-family and non-residential projects. The fee generates approximately $300,000 per year and is used to fund City water efficiency infrastructure upgrades, including replacement of irrigation systems in parks and public landscapes, rainwater catchment and reuse systems, and installation of water efficient fixtures in public facilities. The fee amount was developed in 1991 and is based on the estimated cost to offset a gallon of water demand at that time. For single family and multi-family residential projects, the fee is based on estimated water use for a typical project of each type. For non-residential projects the projected water use is estimated based on the project square footage and building type. Staff was not able to identify any jurisdiction that is effectively using an in-lieu fee option to offset 100% of projected water demand from new development projects. The primary reason for this is that these fees are often times generated by many small projects in small amounts and, because jurisdictions typically use the fees to fund infrastructure projects which are often large and expensive, these improvements may happen months or years after a development is completed. Staff was unable to find a jurisdiction that carefully tracks water savings from projects funded by water demand mitigation or in-lieu fees and links them back to the projects that generated the funds. This is not to suggest that in-lieu fees are not effective at producing water savings, but rather that it is difficult to directly track those water savings back to a specific development to demonstrate that the new demand from that development was completely offset. The WDM fee could be used on its own or in conjunction with a Direct Offset program to address water neutrality in new developments and major redevelopments. If used on its own the WDM fee would continue to apply to all development projects. If a Direct Offset option is preferred by Council, for smaller projects that would not require development review or change of use permits, such as single family residential and very small commercial and multi-family projects, Council could require that those projects pay the WDM fee to ensure that new water demand is indirectly offset for those 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 10/14 projects as well. Alternately, Council could exempt these small projects from paying the fee. Because of their small size these projects generate relatively little new water demand. Collectively they currently generate approximately 22% of the WDM fee revenues however they represent 76% of the projects that are subject to the fee. If Council directs staff to pursue either of these options, staff recommends that the WDM Fee be reevaluated and updated to reflect current costs to offset water use and more accurately reflect projected water demand from new projects. This process would require a new nexus study, further fee analysis and Council action if the amount of the fee were increased. A tracking procedure could also be established to provide better correlation between the water savings achieved by the projects funded by the fee and the increased water demand generated by the projects that paid the fee. The estimated costs and trade-offs for these various approaches are discussed below. Implementation and Costs for In-Lieu/WDM Fee Options If Council wishes to continue using the WDM Fee, either as the sole means to address and offset new water demand, or in conjunction with a Direct Offset program, staff recommends that a fee analysis and nexus study be completed. This would cost approximately $75,000 and take approximately six months to complete. In conjunction with the adoption of a new fee, staff could develop a tracking system in-house at a minimal cost. This would however increase staff workload to continually monitor and regularly report on the offsets. If the WDM Fee were used in conjunction with a Direct Offset program and restricted to single family residential and small multi-family and commercial projects, the annual revenues from WDM Fees would be reduced from approximately $300,000 to $65,000. If Council decides to eliminate the WDM Fee moving forward this would result in a $300,000 reduction in revenues to the Water Fund, eliminating this source of funding for water efficiency upgrades to the City’s infrastructure. Summary of Water Neutrality Options 1. Continue with Water Demand Mitigation Fee Only For All Projects Advantages: · The fee and the process to collect it is already established. · Fee currently generates approximately $300,000 per year which funds water efficient City infrastructure upgrades. Challenges: 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 11/14 · No tracking system has been established to directly link water offsets to particular development projects and ensure that 100% of new water demand has been offset. Tracking system would need to be developed if Council wanted to demonstrate that new water demand was completely offset by upgrades funded by the WDM Fee. · New water demand would not likely be offset in advance of occupation of new developments due to the way the WDM funds are expended. · Fee methodology and amount was developed in 1991 and requires updating. · New nexus study and fee analysis should be completed if the fee is continued to be used. Council action needed to adopt a new fee. Estimated costs: · Approximately $75,000 to complete a Fee analysis/ Nexus study · Minimal costs to develop tracking system 2. Create Direct Offset Program and continue using WDM Fee for small projects Advantages: · Direct offset program can ensure that new water demand is completely offset prior to occupation of a new development. · Developers could complete Direct Offsets through the retrofit of older, private multi- family housing, which would permanently reduce water use and costs to those properties and their owners and occupants. · Retaining the WDM Fee option for single family homes and smaller developments and tenant improvement projects could help to ensure that new water demand from smaller projects continues to be offset while simplifying the offset requirement process for these smaller projects. Challenges: · Establishment and Implementation of a Direct Offset Program would take approximately 11 months and require upgrades to existing computer programs, development of a submittal and verification process, and modification to the City’s existing plan check process. · Staff would need to develop an alternate fee calculation to ensure that new developments contribute to the cost of upgrading and maintaining local water infrastructure. · A tracking system would need to be developed if Council wanted to demonstrate that new water demand from smaller developments not subject to the Direct Offset requirement was completely offset by upgrades funded by the WDM Fee. · New water demand from the smaller developments not subject to the Direct Offset requirement would not likely be offset in advance of occupation of new developments 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 12/14 due to the way the WDM funds are expended. · WDM Fee methodology and amount was developed in 1991 and requires updating. · New nexus study and fee analysis should be completed if the fee is continued to be used. Estimated Costs: · Start-up costs would range from $25,000 to $115,000 and ongoing annual costs for program implementation would range from $5,000 to $150,000 depending upon the type of Direct Offset Program (City Administered, Vendor Administered, or Developer Administered) the Council prefers. · Annual revenues from WDM Fees would be reduced from approximately $300,000 to $65,000 with the shift to the Direct Offset requirement for larger development projects. This funding reduction would directly impact efficiency upgrades to the City’s water infrastructure. · Annual loss of $375,000 to $475,000 in Capital Facility Fee revenues · Approximately $75,000 to complete a Fee analysis/ Nexus study · Minimal costs to develop tracking system 3. Create Direct Offset Program and Eliminate WDM Fee Advantages: · Direct offset program can ensure that new water demand is completely offset prior to occupation of a new development. · Developers could complete Direct Offsets through the retrofit of older, private multi- family housing, which would permanently reduce water use and costs to those properties and their owners and occupants. · Elimination of WDM Fee would eliminate the need for updating the fee methodology and completing a new nexus study. It would also somewhat reduce the current staff workload involved in collecting and tracking the WDM Fees on individual projects. Challenges: · Establishment and Implementation of a Direct Offset Program would take approximately 11 months and require upgrades to existing computer programs, development of a submittal and verification process, and modification to the City’s existing plan check process. · Staff would need to develop an alternate fee calculation to ensure that new developments contribute to the cost of upgrading and maintaining local water infrastructure · New water demand from smaller developments and single family projects would not be offset if Council restricted the requirement to developments above a certain size 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 13/14 threshold. · Smaller development projects and single family homeowners could find compliance with this process to be onerous if the developer were required to directly complete all of the program requirements (as opposed to participating in a City or Vendor administered program) Estimated Costs: · Start-up costs would range from $25,000 to $115,000 and ongoing costs for program implementation would range from $5,000 to $150,000 depending upon the type of Direct Offset Program (City Administered, Vendor Administered, or Developer Administered) the Council prefers. · Annual revenues from WDM Fees of $300,000 would be eliminated by pursuing this option. This funding reduction would directly impact efficiency upgrades to the City’s water infrastructure. · Annual loss of $375,000 to $475,000 in Capital Facility Fee revenues Environmental Analysis A Water Neutrality Ordinance as discussed above would be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines, Section 15307 (Class 7). Section 15307 provides exemption for a class of projects (Class 7) consisting of actions taken by regulatory agencies to assure the maintenance, restoration, or enhancement of the natural resource where the regulatory process involves procedures for the protection of the environment. A proposed ordinance would provide for the maintenance and enhancement of the City’s water resources. Therefore, the ordinance qualifies as a Class 7 exemption. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action, however, depending upon on Council recommendations, costs for development, implementation and enforcement of a proposed Water Neutrality Ordinance could range from $25,000 to $340,000, with ongoing costs ranging from $5,000 to $150,000 annually. Revenue to the Water Fund could be decreased by $235,000 to $300,000 if the WDM Fee were modified or eliminated and by $375,000 to $475,000 if the water neutrality efforts resulted in the Capital Facility Fee being eliminated. It is anticipated that administrative costs could be recovered through permitting and processing fees, however funds would need to be identified in order to initiate the program. In addition, all options would likely result in a net loss to the City due to a decrease in Water Fund revenues. Budget requests and changes would be included in a future report based on Council direction. 9/20/2018 Proposal for Water Neutrality Ordinance - City of Santa Monica, California http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=1048&MediaPosition=&ID=1468&CssClass=&Print=Yes 14/14 Draft Meeting History Nov 24, 2015 5:30 PM City Council Regular Meeting Powered by Granicus City 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 recommends that the City Council introduce for first reading the attached Water Neutrality 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 fixtures 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-selected 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 reducing 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 to prepare it for implementation. Of this total $2,089,749 would be completely recouped, through newly-established fees, as new developments are approved and completed. The remaining $557,979 would fund a technical design assistance program to help designers incorporate new and more water-efficient technologies to achieve compliance, software updates to administer the program, and initial costs to setup the program. The $557,979 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 developments 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 directed 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 consultants, 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 the 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 plumbing 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 compliance 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 retrofits 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, urinals, 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 offset ratio. 3 of 15 5) Replace the Water Demand Mitigation Ordinance, effective March 1, 2018. Paths to Compliance Applicability - New Development Effective March 1, 2018, this ordinance would apply to new developments which include new buildings with plumbing fixtures; existing buildings with plumbing fixtures where 50% or more of the exterior walls or principal structural supports are demolished; and new or enlarged swimming pools, spas, water features, and ponds. This would not apply to a new garage that has no plumbing fixtures, a kitchen or bath remodel or an addition that does not require the removal of 50% or more of the exterior walls/structural supports. Recent data shows between 60 to 100 projects per year (with an average of 72) would be required to comply with the ordinance, including City projects. Seventy-six percent of these projects were single-family new developments. Since 2014, more than 150 new swimming pools were permitted. Building Design When a new development applicant applies for the initial building permit. Staff would notify the applicant of the water neutrality ordinance, as the entire design could be impacted by this requirement. The City would provide the applicant with the existing property’s five-year average water use. This would be the baseline to compare projected new water demand. Where no water data is available, the baseline would be the five-year average of properties in the same customer class with the same meter size (example: single-family home with a one-inch meter). Five-years was chosen to reflect water use demands where varying occupancy, tenancy, and climate affects could be accounted for and averaged. Using only the most recent year or two could show a major shift in usage such as vacancy or severe water shortage restrictions, which would significantly impact the offset requirement. The baseline for water neutrality is completely separate from baselines 4 of 15 used to establish water use allowances as part of the Water Shortage Response Plan. Staff is also recommending a new program to provide technical design assistance to help applicants achieve water neutrality. This was a specific request from the Stakeholder Committee to help designers select new technologies that they may not be aware of or have never specified in a project which would help them achieve compliance with the ordinance. The estimated $425,000 for five-years would pay for a consultant to review preliminary concepts and/or plans, provide recommendations for water-saving technologies, and direct the designer to additional resources and/or funding opportunities. Some technologies save both water and energy such as efficient showerheads, cooling towers, and recirculating hot water systems. The City’s technical design assistance program would work in coordination with the existing Southern California Edison (SCE) and the Gas Company’s Savings by Design Program, which, currently, tier 1 and tier 2 projects are required to utilize to achieve energy savings and receive financial incentives. The technologies recommen ded by both programs would be consistent for those products that save both water and energy. The SCE and Gas Company Savings by Design Program is funded by the California Public Utility Commission (CPUC). City staff tried to expand upon the SCE and Gas Co mpany to include water saving fixtures but they cannot add devices that only save water at this time due to CPUC regulations. Funding for the City’s new technical design assistance program is included in the FY 2017-19 Proposed Operating Budget. Projected New Water Demand In order to standardize the projected water demand from a new development, a water demand calculator would be made available online to assist in the design of new developments and to show comparisons of projected water demand based on d ifferent plumbing fixtures, non-potable water systems, and landscaping choices. A water demand spreadsheet would be created by this calculator and would be used as part of the building plan set submission. The City and County of San Francisco has authorized the City to use its existing water demand calculator. Staff, in partnership with the Stakeholder Committee and the vendor 5 of 15 selected to implement the offset program, would adapt this calculator to meet local conditions and current plumbing codes in Santa Monica. At the time of implementation, the calculator would provide sufficient data for the majority of new single-family and mixed-used development projects. The calculator would include the water use for toilets, urinals, showers, faucets, climate control systems, landscaping, pools, spas, water features, and ponds. Water benchmarking data, water usage data for specific types of water using devices for residents and businesses, is almost non-existent. Currently, the calculator is limited to water usage for only a few fixtures that have data such as toilets, urinals, and faucets. The calculator would evolve as more data becomes available for how much water various fixtures use in specific types of buildings, e.g. hair salon hair washing stations or restaurant dishwashers for a 30-seat capacity full service restaurant. In the future if a new full- service restaurant with 30 seats used the calculator, it would provide the projected demand for all the water using fixtures onsite such as for food-prep, thawing food, dishwashing, and cleaning in addition to toilets, urinals, and faucets. Plan Check Once developers decide on a final design, they would submit the new water demand spreadsheets to the Office of Sustainability and the Environment for review and approval. If a new development is designed to use no more water than the previous property’s five-year average, the project’s new water demand plan would be approved and no additional requirements would be applied. In-lieu Offsets If a new development is designed with all practical water-savings measures and additional water demand is still projected, the project would not be considered in compliance with the water neutrality regulations and would be required to offset the additional projected water use. Offsets would be achieved by retrofitting devices and plumbing fixtures like toilets, urinals, showerheads, and faucet aerators in an existing property located in Santa 6 of 15 Monica. The number and type of retrofits would vary depending on the amount of water needed to offset each project. Developers would have the option of utilizing the City’s turn-key retrofit program and/or performing their own retrofits. For developer retrofits, the City would require approval of the devices and their corresponding water savings estimates in addition to permits and inspections for those installations. For the City’s program, toilets, showerheads, and faucet aerators would be installed initially and the City’s vendor would be responsible for inviting owners of existing properties to participate in the retrofit program. The vendor would also pre -screen buildings to ensure they meet the criteria for retrofitting. The Stakeholder Committee recommended a priority installation list where low-income multi-family apartments would be asked to participate first followed by high-water use multi-family apartment then low-income single-family homes, etc. Multi-family properties are easy to retrofit and have more residents than individual single-family homes, thus generating higher water-savings. Most single-family homes are likely to achieve compliance by installing very water- efficient fixtures and landscaping on-site to meet existing building code requirements. These new developments would be more water-efficient than previous homes. However, installing a pool where one did not exist before or adding several new bathrooms as part of the new development project could require offsets somewhere else in the city. The proposed water neutrality ordinance is drafted to allow for flexibility in the design of water-efficient buildings in order to meet compliance. These are new technologies that may not be approved by the Los Angeles Department of Public Health and/or the State Water Resources Control Board at this time for installation in certain buildings such as graywater for toilet flushing in an apartment building. These agencies are developing a permitting process for a variety of new water-saving technologies and installation locations. Administrative and In-lieu Fees When an applicant is required to offset additional water use an Administrative Fee would be assessed. Additionally, if the applicant chooses to participate in the City’s turn - 7 of 15 key retrofit program an In-lieu Fee would be charged. The Administrative Fee covers the costs for administering the ordinance including coordination with the developer, maintenance of the projected water demand calculator, retrofit site selection, audits, inspections, data entry, and reporting. The In-lieu Fee covers the costs for the retrofit of water-saving fixtures elsewhere in the city. These two fees would cover the City’s costs to implement this ordinance and would not be refundable. The fees are based on the costs charged by a vendor to implement the water neutrality ordinance. The amount of the In-lieu Fee would be based upon the cost to achieve the necessary water savings generated by replacing existing toilets, showerheads, and faucet aerators. This includes the cost of the replacement fixtures and the cost to install them. In order to calculate the water savings, certain assumptions would be made such as occupancy rate (numbers provided by the City’s Planning Division), old and new fixture flow rates, duration of the flow or use, and per capita daily usage. The Stakeholder Committee agreed upon the formulas and assumptions included in the draft ordinance. A request for proposals was issued on December 16, 2016 for the administration and implementation of the in-lieu offset retrofit program. Two bids were received, however, both bids were incomplete and not reviewed. The request for proposals was re-issued on January 24, 2017. Two bids were received and evaluated by staff. The costs provided by the top ranking vendor was used as the basis for the Administrative Fee and In-lieu Fee (see Attachment C for In-lieu Fee). Retrofits performed by the City’s vendor are subject to prevailing wage requirements. On July 11, 2017, staff will bring to Council a request to authorize negotiation s with the top ranking vendor. Staff will also request for Council to se t the plan check fee, inspection fee, the Administrative Fee, and the In-lieu Fee related to this ordinance as part of the annual fee schedule update on June 27, 2017. The Administrative Fee would be a flat rate of $2,000 per project to be paid at the time of the building permit issuance. This Administrative Fee covers the cost of the vendor to help City staff implement this ordinance and it includes coordination with staff, the 8 of 15 developer, maintaining the calculator, selecting and pre-screening the retrofit sites, verifying developer retrofits, reporting, and City prevailing wage reporting. The vendor could also provide plan check and inspection services if needed. Fifty percent of the In - lieu Fee would be paid at the time of the building permit issuance a nd the balance is to be paid at the time of the temporary certificate of occupancy or certificate of occupancy. Splitting the In-lieu Fee payment allows for adjustments in the design of the building that may need to be made during construction and that could impact the projected water demand. Changes to the building’s plan would require additional plan check and submission of a new water demand spreadsheet. Offset requirements could change along with In-lieu Fees. Fees already collected would not be reimbursed. Retrofits Once the fees are collected, the City’s vendor would arrange retrofits with pre-screened properties. The retrofits would target low income, high water use customers, and buildings where sewer capacity is higher than average. Once the eligi ble list of properties is retrofitted, staff would look for new opportunities to save water on private and public properties. The retrofits would include the removal of the old fixtures, replacement with new water-saving fixtures such as showerheads, toilets, faucet aerators, and the recycling of old fixtures when available. Recycling facilities do not accept used toilets and/or metals from used showerheads and faucets. Broken porcelain toilets can easily puncture tires or cause injury so many recycling fac ilities, including Allan and Company in Santa Monica, no longer accept them. The retrofit potential for toilets, showerheads, faucet aerators within existing buildings in Santa Monica is estimated at about 60,000 total fixture replacements. This is based on fixture replacement rates from previous retrofit programs between 1989 and 2003. Hardship A hardship provision is included in the draft ordinance that waives the ordinance requirements if it can be demonstrated that the off -set requirement would deprive the owner of all economically beneficial use of that site or be prohibited by state or federal 9 of 15 law. Estimated Costs to Developers The examples below provide estimates of how the projected new water demand and off - sets would be calculated but do not show the actual demand and/or off-sets. The fees were calculated using the top ranking vendor’s cost proposal. Please note that the examples below are based on codes and standards used in the current online calculator developed by the San Francisco Public Utilities Commission for buildings in San Francisco. Santa Monica will use this online calculator as a template and update the data based on the Committee’s decisions using local conditions and the current plumbing code requirements. Single-family Home: Offset Requirement = 50,000 gallons per year Retrofits Required for Offset = 21 fixtures (6 toilets, 5 showerheads, 10 faucet aerators) to be installed which would save 51,028 gallons per year Admin Fee: $2,000 In-lieu Fee: $3,243 Total: $5,243 ($0.10/gal saved) Single-Family Fixture Type Water Savings GPY Gravity Tank Toilet 2,978 6 17,868 1,998$ Showerheads 3,723 5 18,615 525$ Lavatory Faucets 1,047 5 5,235 360$ Kitchen Faucets 1,862 5 9,310 360$ Sum 51,028 3,243$ Quantity Total GPY Saved Cost per Fixture Mixed Use Development with 60 units: Offset Requirement = 722,553 gallons per year Retrofits Required for Offset = 301 fixtures (76 toilets, 75 showerheads, 150 faucet aerators) saving 722,612 gallons per year to be installed Admin Fee: $2,000 In-lieu Fee: $43,983 Total: $45,983 ($0.06/gal. saved) 10 of 15 Multi-Family Fixture Type Water Savings GPY Gravity Tank Toilet 1,862 76 141,512 25,308$ Showerheads 2,978 75 223,350 7,875$ Lavatory Faucets 3,723 75 279,225 5,400$ Kitchen Faucets 1,047 75 78,525 5,400$ Sum 722,612 43,983$ Quantity Total GPY Saved Cost per Fixture Effect on Other Ordinances Water Shortage Response Plan When a water supply shortage is declared by City Council as a Stage 1, 2, 3, or 4, water use allowances go into effect. This requires mandatory con servation and water customers to reduce use by a set percentage from a prior year’s water usage. Currently, the City is in a Stage 2 Water Supply Shortage and water use allowances are in effect. Water customers that exceed their water use allowance are subject to fines and civil penalties. On May 23, 2017, staff will bring to Council an update to the Water Shortage Response Plan that would require the new development’s new water demand to become the water use allowance during a declared water supply shortage. Using the approved water neutrality demand calculation as the water use allowance provides the most accurate water budget and would likely not result in a citation, adjustment or appeal. However, penalties could still be assessed for using more than the updated water use allowance. Water Demand Mitigation Ordinance If adopted, the water neutrality ordinance would replace the existing water de mand mitigation ordinance (WDM), effective March 1, 2018, when the new water neutrality ordinance will be ready for full implementation. The existing water demand mitigation ordinance would automatically terminate on February 28, 2018. The proposed water neutrality ordinance is designed to keep water levels at current levels and any offsets would be at a one-to-one ratio, except 100% affordable housing 11 of 15 new development projects. Offset retrofits would be installed at private and/or public properties and would no longer be restricted to only City-owned properties. Water Neutrality Costs 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 to prepare it for implementation. Of the total $2,089,749 would be completely recouped, through newly-established fees, as new developments are approved and completed. The remaining $557,979 would fund a) professional services for software updates b) initial vendor costs for implementation and c) a Water Savings by Design technical design assistance program to help designers incorporate new and more water-efficient technologies to achieve compliance. The $595,000 would not be recoverable through fees. The professional service cost for development and implementation of the water neutrality ordinance over five years is $2,425,000. Non-reimbursable up-front costs include a) $100,000 in professional services to upgrade the existing database software system to track new developments and retrofits and b) $70,000 for a new vendor to initiate the implementation of the ordinance, update the water demand calculator, and setup the retrofit program and c) the Water Savings by Design technical design assistance program would cost $425,000 over a five-year period and is non- reimbursable. The $1,830,000 for offset retrofits would be reimbursed through the collection of Administration and In-lieu Fees. $250,000 was included in the Water Rates 5-year forecast for these up-front costs Staff will return to Council on July 11, 2017 with a recommendation for the modification to the existing contract with ConserveTrack, LLC for the database software system upgrades and a new contract with DNV GL Energy Services USA, Inc. for the administration of the water neutrality ordinance. 12 of 15 OSE is also requesting one existing Water Resources position be deleted and replaced with one Sustainability Analyst position. The Sustainability Analyst would spend 20% of his/her time implementing water neutrality. The other 80% of his/her time would be spent implementing water conservation programs related to water shortage response and water self-sufficiency. The total staff cost for five-years is $122,728. Water neutrality plan check and inspection fees collected would total $159,749 cover the staff costs to implement this ordinance. Water neutrality implementation would include managing the contract with the vendor, educating the public about the ordinance, and providing plan check and inspections for water neutrality projects. The work associated with water shortage response and water self-sufficiency include implementing the water use allowance citations, providing water school for water use allowance citations, providing water use consultations and other water conservation related tasks as requested. Should the water supply shortage be rescinded and water use allowances end, this Sustainability Analyst could take on the administrative tasks assigned to the vendor implementing the water neutrality ordinance. The position is requested as part of the FY 2017-19 Operating Budget. Timeline Upon Council approval of this ordinance by resolution, award of the proposed contracts, and contract execution (estimated to take between four to six months), staff would continue to meet with the Stakeholder Committee to finalize the implementation plan and implement the projected water demand calculator. Staff would also provide outreach and education to homeowners and professionals about the ordinance and develop the technical design assistance program , if funded. Full implementation of the ordinance would occur on March 1, 2018. At that time those applicants pulling a first application would be subject to the ordinance. Those applicants that have already pulled a first application, are in the entitlement process, submitted plans, or received a building permit before March 1, 2018 would not be subject to compliance with this ordinance. For those applicants/permit holders, retroactive compliance with the ordinance would require significant design review, changes to the project and signifcant additional costs. 13 of 15 Below is the projected timeline for implementation of the proposed water neutrality ordinance: Outreach Five Stakeholder Committee Meetings were held on November 15, 2016; December 12, 2016; January 24, 2017; March 8, 2017; and April 4, 2017; where proposed requirements of the ordinance and its implementation were discussed and a consensus on recommendations was achieved. Staff presented the draft ordinance to the Chamber of Commerce Governmental Affairs Committee on March 6, 2017. A public meeting was held on April 6, 2017 and 10 community members attended. Staff also presented the draft ordinance to the North of Montana Association (NOMA) neighborhood association on April 6, 2017 and at the Mid-Cities neighborhood association on April 18, 2017. The public was notified by emails sent to all the neighborhood groups and business districts, Facebook postings, a press release, and a calendar event listed on the City’s website. Information about the ordinance and how to comply will be posted on the City’s website prior to implementation. Water Advisory Committee Staff presented the draft ordinance to the City’s Water Advisory Committee on February 6, 2017. Following discussion, the committee recommended support of the ordinance. 14 of 15 Task Force on the Environment Staff presented the draft ordinance to the City’s Task Force on the Environment on March 20, 2017. Following discussion, the Task Force unanimously approved a motion in support of the ordinance. If adopted staff would provide additional outreach and education to architects , landscape architects, neighborhood groups, business districts, and the community at large. Alternatives On November 24, 2015, staff presented City Council with three options to develop and implement a water neutrality ordinance. Council chose one option and directed staff to return with an ordinance. The proposed water neutrality ordinance attached is based on Council’s directions. An alternative to this proposed ordinance is to keep the existing Water Demand Mitigation Fee in place and not approve the proposed water neutrality ordinance. Financial Impacts and Budget Actions Future year costs of $2,272,123 and new revenues are included in the FY 2017-19 Proposed Budget and are contingent on Council budget approval. Prepared By: Kimberly O'Cain, Senior Sustainability Analyst Approved Forwarded to Council 15 of 15 Attachments: A. November 24, 2015 Water Neutrality Study Session B. Ordinance C. In-lieu Fee Installation Costs for Water Neutrality D. March 19, 1991 Water Demand Mitigation Ordinance Staff Report E. Written Comments F. Powerpoint Attachment A CITY OF SANTA MONICA WATER SHORTAGE RESPONSE PLAN Department of Public Works Water Resources Division 1212 5th St., Third Floor Santa Monica, CA 90401 (310) 458-8975 www.smgov.net/water City of Santa Monica Water Shortage Response Plan -September 8, 2015 Page 2 of 12 Table of Contents Section 1: Introduction………………………………………………………………………. page 3 Section 2: Objectives and Priorities of Water Use……………………………………… page 3 Section 3: Triggers for Implementation…………………………………………………… page 3 Section 4: Stages of Water Shortage Supply……………………………………………. page 4 Table 1: Water Shortage Reduction Targets…………………………………………. page 4 Section 5: Water Use Restrictions for All Stages………………………………………. page 4 Section 6: City of Santa Monica Staff Responsibilities………………………………… page 4 Section 7: Water Allowances for Stages 1, 2, 3, 4……………………………………… page 5 Table 2: Water Use Allowances ………………………………………………………… page 5 Section 8: Penalty…………………………………………………………………………….. page 7 Section 9: Waiver of Penalty………………………………………………………………… page 7 Section 10:Water Use Allowance Adjustment……………………………………………. page 7 Section 11: Definitions……………………………………………………………………….. page 8 Exhibit 1 – Residential Water Conservation Threshold Calculations…………… page 10 City of Santa Monica Water Shortage Response Plan -September 8, 2015 Page 3 of 12 Section 1: Introduction The City of Santa Monica City Council adopts this Water Shortage Response Plan (WSRP) pursuant to Santa Monica Municipal Code (“SMMC”) section 7.16.030. The WSRP is intended both as an action plan and as the implementing regulations for water conservation as authorized by Section 7.16.030. It is designed to reduce water demand during water shortages. The WSRP is based in part on the State of California Department of Water Resources 2007 Urban Drought Guidebook. The Urban Water Management Planning Act (Section 10632 of the California Water Code) requires water shortage contingency planning as a component of the Urban Water Management Plan, which is updated every five years. The WSRP establishes five stages of water shortage severity based on predicted or actual water supply reductions. Each stage establishes water use reductions through voluntary or mandatory measures. Triggers for implementing the WSRP may include such events as a state or local emergency; natural disaster; a localized event that critically impacts the water supply; drought or the City’s wholesale water agency imposing water allocation restrictions. Section 2: Objectives and Priorities of Water Use A. The objectives of the WSRP are to: (1) Prioritize essential uses of available water; (2) Avoid irretrievable loss of natural resources; (3) Manage current water supplies to meet ongoing and future needs; (4) Maximize local municipal water supplies; (5) Eliminate water waste city-wide; (6) Create equitable demand reduction targets; and (7) Minimize adverse financial effects. B. The following priorities for use of available water are listed in order from highest to lowest priority: (1) Health and Safety including: consumption and sanitation for all water users; fire suppression; hospitals, emergency care, nursing and other convalescent homes and other similar health care facilities; shelters and water treatment; (2) Institutions, including government facilities and schools such as public safety facilities, essential government operations, public pools and recreation areas; (3) All non-essential commercial, institutional, and residential water uses; (4) New water demand. Section 3: Triggers for Implementation The City Council may declare by resolution that an Advisory or Stage 1, 2, 3 or 4 Water Supply Shortage exists and that the actions outlined in this WSRP are necessary. Upon Council adoption by resolution, any Advisory or Stage may be rescinded. The type of event which may prompt the City Council to declare an Advisory or Stage1, 2, 3, 4 Water Supply Shortage may include, among other factors: City of Santa Monica Water Shortage Response Plan -September 8, 2015 Page 4 of 12 • Drought; • State or local emergency; • A natural disaster that critically impacts the water treatment or water distribution system; • A localized event that critically impacts the water supply, water quality, water treatment or water distribution system; • The City’s wholesale water agency requests extraordinary water conservation efforts in order to avoid mandatory water allocations; • The City’s wholesale water agency implements a water allocation. Section 4: Stages of Water Shortage Supply The WSRP establishes five stages of severity based on predicted or actual water supply reductions. Each stage establishes water use reductions either through voluntary or mandatory measures. Mandatory water restrictions include water use allowance for each water customer category. Table 1 below outlines the stages and water use reduction goals. Table 1: Water Shortage Reduction Targets Section 5: Water Use Restrictions for All Stages The water conservation requirements in SMMC Section 7.16 are permanently enforced. Section 6: City of Santa Monica Staff Responsibilities (A) City staff will be informed of the water supply shortage. Each staff member will be expected to use water efficiently. (B) The City’s landscaped areas will be efficiently irrigated based on the Irrigation Association’s Best Management Practices. (C) Each staff member will be expected to notify the appropriate City department immediately of any leaks seen on City property or private property. Section 7: Water Allowances for Stages 1, 2, 3, 4 A Water Use Allowance (WUA) is established for each water customer. The WUA shall not apply to: Water Shortage Stage Water Use Restrictions City-wide Use Reduction Goal Advisory Voluntary 10% Stage 1 Mandatory 15% Stage 2 Mandatory 20% Stage 3 Mandatory 30% Stage 4 Mandatory 50% City of Santa Monica Water Shortage Response Plan -September 8, 2015 Page 5 of 12 (A) Any water customer of the City of Santa Monica during an Advisory water supply shortage stage; (B) Any water customer account designated for municipal non-potable water. Summary of Allowances A WUA is the maximum allowable amount of water that could be used by a water customer and it is calculated as a percent reduction in the amount of water available for each water customer in the City of Santa Monica for the duration of a declared water shortage. The WUA is calculated as a percentage of the baseline year’s water usage. The baseline is calendar year 2013. Each water customer will receive a WUA for each billing period. A billing period is approximately 60-days. Public agency, including but not limited to the City of Santa Monica, Caltrans, Santa Monica-Malibu Unified School District, individual landscape only accounts will be combined and receive one WUA. Water Use Allowances for new water accounts, new water customers, properties vacant in 2013, and water accounts with zero usage in 2013 will be based on the average usage of water customers in the same water customer class (single-family, multi-family, mixed-use, commercial, industrial, landscape, etc.) with the same meter size. For example a single-family water customer whose home was vacant due to a remodel in 2013 and as a result of the remodel their meter size increased from ¾ inch to two inch because the house size increased significantly, shall get a WUA that is the average of other single-family homes with a two inch meter. Water Use Allowances The Water Use Allowance formula for residential water customers is: The average daily baseline use per billing period x the % of water available or the residential threshold; whichever is higher The Water Use Allowance formula for commercial and landscape water customers is: The average daily baseline use per billing period x the % of water available City of Santa Monica Water Shortage Response Plan -September 8, 2015 Page 6 of 12 Table 2: Water Use Allowance for all Water Customers* Stage 1 Stage 2 Stage 3 Stage 4 85% Water Available Per Customer 80% Water Available Per Customer 70% Water Available Per Customer 50% Water Available Per Customer Single-Family average daily baseline use x 0.85 or 22 HCF; whichever is higher average daily baseline use x 0.8 or 22 HCF per billing period; whichever is higher average daily baseline use x 0.7 or 16 HCF; whichever is higher average daily baseline use x 0.5 or 16 HCF; whichever is higher Multi-Family average daily baseline use x 0.85 or 11 HCF per unit; whichever is higher average daily baseline use x 0.8 or 11 HCF per unit; whichever is higher average daily baseline use x 0.7 or 8 HCF per unit; whichever is higher average daily baseline use x 0.5 or 8 HCF per unit; whichever is higher Commercial average daily baseline use x 0.85 average daily baseline use x 0.8 average daily baseline use x 0.7 average daily baseline use x 0.5 Landscape average daily baseline use x 0.85 average daily baseline use x 0.8 average daily baseline use x 0.7 average daily baseline use x 0.5 *HCF is hundred cubic feet Residential Water Conservation Thresholds – see Exhibit 1 for calculations Water Shortage Supply Stage 1 & 2 Penalties will not be imposed for single family customers using less than 22 HCF per bi- monthly billing period and each multi-family unit per building using less than 11 HCF per bi-monthly billing period. Water Shortage Supply Stage 3 & 4 Penalties will not be imposed for single family customers using less than 16 HCF per bi- monthly billing period and each multi-family unit per building using less than 8 HCF per bi-monthly billing period. Section 8: Penalties When a Responsible Party exceeds the applicable WUA during a billing period, a Penalty may be imposed through the issuance of an administrative citation. The citation fine amount will be calculated as set forth below. City of Santa Monica Water Shortage Response Plan -September 8, 2015 Page 7 of 12 • first violation penalty: $250 • second violation penalty (within twelve months of the first violation): $500 • third violation penalty (within twelve months of the second violation): $1,000 Any Responsible party that exceed the WUA three times may be required to have a water audit performed by a licensed engineering firm having water audit experience and all related expenses paid by the Responsible Party. The audit must be performed and a full report submitted to the City of Santa Monica within 30-days of notice. The audit report must include how the audit was administered, list all interior and exterior uses of domestic and non-domestic water uses, results of the audit, recommendations, and return on investment calculations. The City may require the implementation of the audit recommendations as a precondition to granting any request for a WUA Adjustment. Any Responsible Party that exceed the WUA seven or more times may have a flow restrictor installed in the meter which restricts the flow of water going into the building, be charged with a Civil Penalty, and/or be charged with a criminal penalty. Section 9: Waiver of Penalty Any Responsible Party that receives a first violation WUA exceedance penalty may choose to attend a City offered water school. Upon successful completion of the water school, the penalties associated with the first violation shall be waive d. The City Manager or his or her designee is authorized to develop regulations to implement the water school program consistent with the policies, objectives and priorities of this Plan. Section 10: Water Use Allowance Adjustment Application for Water Use Allowance Adjustment • Comply with requirements listed under Required Finding for an Adjustment. • Fill out a Water Use Allowance Adjustment Application available at 1717 4th St., Suite 150, Santa Monica, CA 90401. • Submit completed application and required supporting documentation (such as photographs, itemized receipts, maps, drawings, engineering reports, water audit reports, utility bill showing participation in any low income assistance program, or other pertinent information) by mail or in-person at 1717 4th St., Suite 150, Santa Monica, CA 90401. Approval Authority The Adjustment Administrator will exercise approval authority and act upon any completed Water Use Allowance Adjustment Application after submittal and may approve, conditionally approve, or deny the adjustment request. The applicant requesting the adjustment will be notified in writing of any action taken. The decision of the Adjustment Administrator shall be issued within sixty days after the conclusion of the hearing or the submission of all written materials if no hearing is conducted. The applicant may appeal any such decision pursuant to Chapter 6.16 of City of Santa Monica Water Shortage Response Plan -September 8, 2015 Page 8 of 12 this Code. Unless specified otherwise at the time the adjustment is approved, the adjustment applies to the subject property during the term of the applicable stage of the WSRP. Factors to be considered by the Approval Authority in Reviewing a Water Use Allowance Adjustment Application: • Whether denial of the application would create an undue hardship which could create an emergency condition relating to health or safety; or • Whether an undue financial hardship to a water customer would result; or • A new water account is requested by a new user; or • The property was vacant (or otherwise devoid of water use) during 2013 but is now being inhabited; or • There has been an increase in household size or change in tenancy Required Findings for an Adjustment An application for an adjustment will be denied unless the approving authority finds, based on the information provided in the application, supporting documentation, and/or such additional information as may be requested, and on water use information for the property as shown by the records of the City of Santa Monica, all the following: 1. The subject property has implemented all practical water saving measures at minimum, unless unique circumstances that makes meeting these requirements impossible: a. High-efficiency toilets (uses1.28 gallons per flush or less) b. High-efficiency urinals (uses 0.5 gallons or less per flush or is waterless) c. High-efficiency showerheads (uses 2.0 gallons per minute or less) d. High-efficiency faucets (uses 1.5 gallons per minute or less for residential or guest rooms; uses 0.5 gallons per minute or less for commercial) e. No leaks anywhere on the property f. No irrigation runoff and overspray 2. That the adjustment does not constitute a grant of special privilege inconsistent with the limitations placed upon other City of Santa Monica water customers. 3. That because of special circumstances applicable to the property or its use, the requirements of the Water Shortage Response Plan would have a disproportionate impact on the property or use that exceeds the impacts to customers generally. 4. That the adjustment will not materially affect the ability of the City of Santa Monica to effectuate the purpose of the Water Shortage Response Plan and will not be detrimental to the public interest. Section 11: Definitions Billing Period. The billing period is approximately 60 days between water meter readings; Commercial Water Customer. Any water customer whose property is not designated as single family, multi-family or landscape only. This may include mixed-use properties, schools, businesses; City of Santa Monica Water Shortage Response Plan -September 8, 2015 Page 9 of 12 HCF. The billing measurement for water in hundred cubic feet. One HCF is equal to 748 gallons; Irrigation. Any system for distribution of pressurized water in the landscape, including but not limited to any system in which any portion is installed below grade or affixed to any structure; Landscape. Modification of the ground surface with live planting materials such as trees, shrubs, turf, groundcover or other horticultural materials; as well as non-living materials such as mulch, synthetic turf, hardscape, or stone; Landscape Only Account. Any water meter installed to measure the flow of water for irrigation and landscape purposes only; Master Meter Account. A meter that serves multiple tenants in a building and may include but is not limited to water used for common areas such as toilets, urinals, laundry, irrigation equipment and pools; Multi-Family. A residential property with two or more units on the premises. This may include master metered or individually metered units; Multi-Family Individual Meter Account. A meter that serves only one unit and does not include outdoor or landscape water use; New Water Account. A new water service connection where one was not previously installed; Responsible Person or Party. Also referred to as the water customer or any other party responsible for the violation. Potable Water. Water suitable or intended for human consumption; Single-Family. A residential property with one unit; Shortage. The actual or projected demand for water placed upon the water supply system by water customers which exceeds the actual supply, where the actual supply of water is the amount of water available for delivery from the municipal water supply system for subsequent delivery to water customers; Water: All potable water supplied from the municipal water supply system to any water customer. Non-potable water that is metered separately is excluded; Water Customer. The person designated on the water account records maintained by the City as the person responsible for payment of charges incurred for the use of the water supply system. City of Santa Monica Water Shortage Response Plan -September 8, 2015 Page 10 of 12 Water Demand. The amount of water used by water customers; Water Use Allowance. The amount of water assigned to water customers based on a percentage of the baseline water usage. City of Santa Monica Water Shortage Response Plan -September 8, 2015 Page 11 of 12 Exhibit 1 – Residential Water Conservation Threshold Calculations The water use allowance is a percentage of 2013 water usage. Each water customer will receive a WUA for each billing period. Residential water customers that are at or below the residential water conservation threshold outlined in Section 7 will not need to reduce water use. The residential water conservation thresholds are calculated based on the following: Assumptions for Calculating the Water Conservation Thresholds: 1. Number of Single Family Residents per Home = 4 (based on 2010 Census data) 2. Number of Multi-Family Residents per Unit = 2 (based on 2010 Census data) Table 5: Water Use Gallons Per Capita Day Calculation Stage 1 & 2 based on AWWA Residential End Uses Report and pre-2013 plumbing code standards Allocated water use is 68 gallons per capita per day (gpcd) Toilets 5 flushes x 1.6 gallons per flush 8.0 Shower/bath 5 min x 2.5 gallons per minute 12.5 Clothes Washer 1/3 load 6.0 Kitchen/Dishwasher 4 gpcd 4.0 Bathroom Sinks 4 gpcd 4.0 Inside Total (gpcd) 34.5 Cleaning/outdoor Use 33.5 TOTAL 68.0 gpcd Table 6: Water Use Gallons Per Capita Day Calculation Stage 3 & 4 based on AWWA Residential End Uses Report and 2013 plumbing code standards Allocated water use is 50 gallons per capita per day (gpcd) Toilets 5 flushes x 1.6 gallons per flush 8.0 Shower/bath 5 min x 2.5 gallons per minute 12.5 Clothes Washer 1/3 load 6.0 Kitchen/Dishwasher 4 gpcd 4.0 Bathroom Sinks 4 gpcd 4.0 Inside Total (gpcd) 34.5 Cleaning/outdoor Use 15.5 TOTAL 50.0 gpcd Single-family Water Customer Threshold Calculation: 68 gallons gpcd x 4 people x 60 days (bi-monthly billing period) x 748 gallons (HCF) = 22 HCF City of Santa Monica Water Shortage Response Plan -September 8, 2015 Page 12 of 12 Multi-family Water Customer Threshold Calculation: 68 gallons gpcd x 2 people/unit x 60 days (bi-monthly billing period) x 748 gallons (HCF) = 11 HCF/unit Table 7: Threshold Water Use Billing Unit (HCF) Calculations Stage 1 & 2 Stage 3 & 4 Single Family Water Account 22 HCF/bi-monthly billing period 16 HCF/ bi-monthly billing period Multi-Family Master Meter Water Account 11 HCF//unit/ bi-monthly billing period 8HCF/ unit/bi-monthly billing period 1 City Council Meeting: November 27, 2018 Santa Monica, California ORDINANCE NUMBER _________ (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA REPLACING AND RESTATING IN ITS ENTIRETY THE TEXT OF SANTA MONICA MUNICIPAL CODE SECTION 7.16.050 TO REQUIRE THAT NEW DEVELOPMENT OFF-SET WATER USE ON-SITE OR OFF-SITE, OR, ALTERNATIVELY, PAY THE CITY AN IN-LIEU FEE TO FUND RETROFITTING OF PLUMBING FIXTURES OFF-SITE WHEREAS, California has endured a severe multi-year drought that has threatened the water supplies of communities and residents, devastated agricultural production in many areas, and harmed fish, animals and their environmental habitats; and WHEREAS, the City desires to continue to adopt and adhere to permanent changes to use water more wisely and to prepare for more frequent and persistent periods of limited water supply; and WHEREAS, Santa Monica Municipal Code Section 7.16.050 constitutes the City’s water neutrality ordinance and was adopted by the City Council in response to the on-going drought; and WHEREAS, the City desires, among other things, to expand the applicability of the City’s water neutrality ordinance, modify the definition of baseline water demand in the ordinance, and align the ordinance’s terminology with the City’s planning and development procedures. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The text of Santa Monica Municipal Code Section 7.16.050 is hereby replaced and fully restated as follows: 2 7.16.050 Water Consumption Limits and In-lieu Fees for New Development. (a) Applicability. Except as provided in subparagraph (b), below, this Section applies to: (1) Approval of a building permit for new development, occurring on or after November 27, 2018. (b) Exemptions. This Section does not apply to: (1) New development that does not require a permit under Section 8.08.050; (2) Repair, alteration, modification, addition to, or rehabilitation of an existing structure that results in the net increase in the number of any plumbing fixture(s) in an existing single-family residence, where the projected water demand is less than the water conservation threshold in effect at the time of issuance of the building permit. (c) Definitions. The following definitions apply for purposes of administering this Section: (1) 100% Affordable Housing Project. One hundred percent affordable Housing Project is defined in Section 9.52.020.0050. (2) Baseline Water Demand. Baseline water demand means the average potable water use over the previous five (5) years from the time the first application for new development is filed. The most recent five-year average of potable water use according to City records at the proposed development site will be used; where no records exist only for new development of a 100% affordable housing project, the five-year average potable water use of water customers in the same water customer class (single-family, multi-family, mixed-use, commercial, industrial, landscape, etc.) with the same meter size will be used. (3) Director. Director means the Director of the City’s Public Works Department or his or her designee (4) New Development. For the purposes of implementing this Section, new development means any of the following: (i) A new, enlarged, or relocated pool, spa, pond, or water feature; (ii) A new, enlarged, or relocated irrigation system; 3 (iii) A new structure with any plumbing fixture(s); (iv) A change in use that results in the addition of any number of plumbing fixture(s); (v) Repair, alteration, modification, addition to, or rehabilitation of an existing structure that results in the net increase in the number of any plumbing fixture(s); (vi) Repair, alteration, modification, addition to, or rehabilitation of an existing structure with any plumbing fixture(s), where a demolition will occur in accordance with Section 9.25.030 or any successor thereto. (5) New Water Demand. New water demand means projected water demand (defined below) for a proposed new development less baseline water demand (defined above) at the proposed site. New water demand shall be determined at the time of the City Building Official’s acceptance of plan check submission. (6) Plumbing Fixture. A receptacle or device that is connected to a water supply system or discharges to a drainage system or both. (7) Projected Water Demand. The total amount of projected potable water demand for a proposed new development. The projected water demand shall serve as the water use allowance for the proposed new development. (8) Water Use Allowance. The Water Use Allowance (WUA) established by the Water Supply Shortage Response Plan adopted in accordance with Section 7.16.030. (9) Water Conservation Threshold. The lowest level that the Water Use Allowance can be set for a residential water customer as calculated in the Water Shortage Response Plan adopted in accordance with Section 7.16.030. (d) Water Off-Set Requirements. (1) No person shall be issued a temporary or final certificate of occupancy, or a required permit, for any new development that is not exempt under subparagraph (b) of this Section unless the new development offsets all increases in new water demand as follows: 4 (i) New water demand for any new development that constitutes either (a) a 100% Affordable Housing Project, including individual units and common spaces that support those units; or (b) an accessory-dwelling unit regulated under Section 9.31.0300, shall be offset at a ratio of 0.5:1. (ii) New water demand for all other new development shall be offset at a ratio of 1:1. (2) The water offsets required by this Section shall be achieved with on-site water efficiency measures unless the Director determines that such efficiency measures cannot be reasonably achieved on-site. In the event that the Director determines that such efficiency measures cannot be reasonably achieved on-site, the applicant for a permit may satisfy the off-set requirement by implementing such on-site water efficiency measures as the Director determines can reasonably be achieved on-site to accomplish the maximum possible portion of the water offsets required by this Section and: (i) Payment of an in-lieu water offset fee in accordance with subparagraph (j), below; and/or (ii) Performing or undertaking to perform the off-set requirements, in whole or in part, at an off- site location within the City of Santa Monica. The criteria for equivalent performance of the off-set requirements at an off-site location shall be approved in writing by the Director prior to commencement of such work. All work performed or undertaken to be performed by the applicant shall be subject to all laws and regulations generally applicable to such work and shall be performed at the applicant’s sole risk and cost. (3) The owner or permit applicant shall submit sufficient documentation as determined by the Director to demonstrate that the water offset requirements in this Section have been or shall be achieved. (e) New Buyer or Tenant Notification. The owner or selling agent of any new development that is subject this Section shall provide any buyer or tenant of the new development with the building record informing the buyer or tenant that the new development is subject to the Water Use Allowance established by this Section. 5 (f) Verification of Water Off-Set Requirements. Neither a temporary or final certificate of occupancy for a new development nor a final approval for any permit required to comply with this Section shall be issued until: (1) The on-site or off-site water offset provisions approved by the Director have been installed and demonstrated to be operational; and/or (2) The owner or permit applicant has paid the in-lieu water off-set fee in accordance with subparagraph (j). (g) Implementing Regulations. The Director shall adopt written administrative regulations or guidelines that are consistent with and that further the terms and requirements set forth in this Section. (h) Penalties for Unauthorized Water use. Failure to meet the utility account’s Water Use Allowance during a billing period may result in a penalty established through the Water Supply Shortage Response Plan adopted in accordance with Section 7.16.030. (i) Administrative Fee. An administrative fee shall be assessed and paid to the City by the permit applicant at the time of issuance of the building permit. The administrative fee shall be imposed to cover cost of administering and implementing the water off-set requirements of this Section and shall be set by City Council resolution. (j) In-Lieu Water Off-Set Fee. (1) The water off-set requirements in this Section may be satisfied, in whole or in part, by payment of a one time in-lieu water offset fee. The fee shall be paid by the owner or permit applicant, as follows: fifty percent shall be paid at the time of issuance of the building permit and the remaining fifty percent shall be paid at the time of the issuance of the temporary certificate of occupancy or certificate of occupancy, whichever occurs first. For all other permits where an issuance of the temporary certificate of occupancy or certificate of occupancy is not required, one hundred percent of the fee shall be paid by the owner or permit applicant before receiving final approval from the City of Santa Monica. 6 (2) Funds collected by the in-lieu water off-set fee shall be deposited into a dedicated fund used by the City to reduce new water demand citywide. (3) Payment of the in-lieu off-set fee, in combination with any implemented water off-sets, shall constitute full satisfaction of the water off-set requirements in this Section. (4) The in-lieu water offset fee shall be non-refundable. (5) The City’s acceptance of the in-lieu water off-set fee does not represent or establish an obligation of the City to reduce new water demand by any particular means. (6) The criteria for establishing the in-lieu water off-set fee shall be set by City Council resolution for implementation through the regulations to be adopted by the Director pursuant to this Section. (k) Hardship (1) The Director may exempt an owner or a building permit applicant from the requirements of this Section, upon showing by the owner that the requirements of this Section would cause undue hardship. (2) For purposes herein, an “undue hardship” shall be found where imposition of the water off-set requirements would deprive the owner of a development site of all economically beneficial use of that site or otherwise be prohibited by applicable state or federal law. (3) An undue hardship application shall include all information necessary for the Director to make a finding of undue hardship, including but not limited to documentation showing the factual support for the claimed undue hardship. (4) The Director may approve the undue hardship exemption application, in whole or in part, with or without conditions. (5) Any exemption granted by the Director is effective immediately. 7.16.050 Water Consumption Limits and In-lieu Fees for New Development. 7 A. This section shall sunset on June 30, 2017, except as to those applications for discretionary or ministerial approvals for new development deemed complete and pending prior to July 1, 2017. No person shall be issued a building permit for any development project unless: (a) The development will not affect or alter any plumbing fixture; or (b) The development involves a single-family residence and is not a substantial remodel as defined in the Zoning Code and will not increase by more than fifty percent the square footage of the principal building; or (c) The development involves a multi-family residence and is not a substantial remodel as defined in the Zoning Code and will not increase the number of dwelling units on the property; or (d) The person pays in advance a fee to the City sufficient to mitigate the estimated daily water consumption rate projected for the development, except that any person requesting a building permit for any low and moderate income housing development shall be required to pay a fee sufficient to mitigate only the estimated net increase in daily water consumption rate projected for the development. The City Council shall by resolution establish or amend any fee permitted by this Section. B. This section shall become effective on July 1, 2017 and shall only apply to applications for discretionary or ministerial approvals for new development submitted or deemed complete and pending on or after July 1, 2017. 1. Definitions. The following definitions shall apply for purposes of administering this Section: (a) 100% Affordable Housing Project. 100% Affordable Housing Project is defined in Section 9.52.020.0050 of this Code. 8 (b) Baseline Water Demand. Baseline water demand means the average water use over the previous five (5) years from the time the first application is filed on or after July 1, 2017 for any required development approval and/or building permit is submitted to the City. The most recent five-year average of water use according to City records at the proposed development site will be used; where no records exist, the five- year average water usage of water customers in the same water customer class (single- family, multi-family, mixed-use, commercial, industrial, landscape, etc.) with the same meter size will be used. (c) Director. Director means the Director of the City's Public Works Department or his or her designee. (d) New Development. For purposes of implementing this Section, new development means any of the following: (i) repair, alteration, modification, addition to, or rehabilitation of an existing structure with any plumbing fixture(s), where a demolition will occur in accordance with Section 9.25.030(A)(1)-(2) or any successor thereto. (ii) a new structure with any interior plumbing fixture(s). (iii) a new or enlarged pool, spa, pond or water feature. (e) New Water Demand. New water demand means projected water demand for a proposed new development less baseline water demand at the proposed development site. Water demand shall be determined at the time of the City Building Official's acceptance of plan check submission. (f) Projected Water Demand. The total amount of water (potable and non- potable water supplies as defined by Chapter 6 of the California Plumbing Code or any successors thereto) projected for the proposed project site, including uses such as but not limited to drinking, cleaning, industrial and landscaping. 9 2. Water Off-Set Requirements. (a) No person shall be issued a temporary certificate of occupancy or certificate of occupancy, whichever occurs first, for any new development unless: (i) The new development offsets all increases in new water demand, as follows: (1) New water demand for new development that constitutes a 100% Affordable Housing Project, including individual units and common spaces that support those units, shall be offset at a ratio of 0.5:1. (2) New water demand for all other new development shall be offset at a ratio of 1:1. (ii) The water offsets required by this Section shall be achieved with on-site water efficiency measures unless the Director determines that such efficiency measures cannot be reasonably achieved on-site. In the event that the Director determines that such efficiency measures cannot be reasonably achieved on-site, the applicant for a building permit may satisfy the off-set requirements by: (1) payment of the in-lieu fee set forth under subsection 6, below; and/or (2) performing or undertaking to perform the off-set requirements at an off-site location within the City of Santa Monica. Such work shall be performed at the applicant's sole risk and cost. The criteria for equivalent performance of the off-set requirements at an off-site location shall be approved in writing by the Director prior to commencement of such work. All work performed or undertaken to be 10 performed by the applicant shall be subject to all laws and regulations generally applicable to such work. (iii) The owner or building permit applicant submits sufficient documentation as determined by the Director to demonstrate that the water offset requirements in this Section can be achieved. 3. Verification of Water Off-Set Requirements. No temporary certificate of occupancy or final certificate of occupancy, whichever is issued first, shall be issued for the new development until -: (a) The on-site or off-site water offset provisions approved by the Director have been installed and demonstrated to be operational; and/or (b) Alternatively, the owner or building permit applicant has paid the in- lieu water off-set fee in accordance with Subsection 6. 4. Implementing Regulations. The Director shall adopt written administrative regulations or guidelines that are consistent with and that further the terms and requirements set forth within this Section. 5. Administrative Fee. An administrative fee shall be assessed and paid to the City by the building permit applicant at the time of issuance of the building permit. The administrative fee shall be imposed to cover cost of administering and implementing the water off-set requirements of this Section, and shall be set by City Council resolution. 6. In-Lieu Water Off-Set Fee. 11 (a) The water off-set requirements in Subsection 2 may be satisfied by payment of a one time in-lieu water offset fee, as provided by this Subsection. The fee shall be paid by the owner or building permit applicant, as follows: 50% shall be paid at the time of issuance of the building permit and the remaining 50% shall be paid at the time of the issuance of the temporary certificate of occupancy or certificate of occupancy, whichever occurs first. (b) Funds collected by the in-lieu water off-set fee shall be deposited into a dedicated fund used by the City to reduce new water demand citywide. (c) Payment of the in-lieu water off-set fee shall constitute full satisfaction of the water off-set requirements in Subsection B. (d) The in-lieu water off-set fee shall be non-refundable. (e) Payment of the in-lieu water off-set fee does not represent an obligation of the City to reduce new water demand by any particular means. (f) The in-lieu water off-set fee shall be set by City Council resolution. 7. Hardship. (a) The Director may exempt an owner or a building permit applicant from the requirements of Subsection 2, upon showing by the owner that the requirements of Subsection 2 would cause undue hardship. (b) For purposes herein, an “undue hardship” shall be found where imposition of the water off-set requirements would deprive the owner of a development site of all economically beneficial use of that site or otherwise be prohibited by applicable state or federal law. 12 (c) An undue hardship application shall include all information necessary for the Director to make a finding of undue hardship, including but not limited to documentation showing the factual support for the claimed undue hardship. (d) The Director may approve the undue hardship exemption application, in whole or in part, with or without conditions. (e) Any exemption granted by the Director is effective immediately. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effectuate the provisions of this Ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. 13 SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: _________________________ LANE DILG City Attorney Memo To: City of Santa Monica City Council From: Mark Gold, Chair, Task Force on the Environment Signature: Date: October 19, 2018 Re: City of Santa Monica Task Force on the Environment Motions Regarding Modifications to the Water Neutrality Ordinance At the October 15, 2018 meeting, the Task Force on the Environment discussed and took action on the following agenda item: Presentation, Discussion and Possible Action Regarding Modifications to the Water Neutrality Ordinance Karina Sandique presented on proposed revisions to the existing Water Neutrality Ordinance going before City Council on November 27, 2018. After discussion, The Task Force on the Environment adopted the following motion: Motion by Task Force Member David Pettit, seconded by Task Force Member Garen Baghdasarian Motion: The City of Santa Monica Task Force on the Environment (TFE) supports staff recommendations to update the Water Neutrality Ordinance with the additional TFE modification that tenant improvement projects for single- family residences that are already highly water efficient are in compliance with the ordinance. The motion was approved by the following roll call vote: Item 7-E 11/27/18 1 of 2 Item 7-E 11/27/18 Ayes: Chair Mark Gold Member David Pettit Member Garen Baghdasarian Member Rob Lempert Member Susan Mearns Noes: None Abstain: None Absent: Erik Neandross, David Hertz Item 7-E 11/27/18 2 of 2 Item 7-E 11/27/18