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HomeMy WebLinkAbout23 - Declaring No Surplus Water and a Level Two Water Supply ShortageTO: CITY OF NEWPORT BEACH City Council Staff Report June 28, 2022 Agenda Item No. 23 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Mark Vukojevic, Utilities Director - 949-644-3011, mvukojevic@newportbeachca.gov PREPARED BY: Mark Vukojevic, Utilities Director - 949-644-3011, mvukojevic@newportbeachca.gov PHONE: 949-644-3011 TITLE: Resolution No. 2022-46: Declaring No Surplus Water and a Level Two Water Supply Shortage ABSTRACT: California and Orange County are currently experiencing another drought. Governor Newsom and the State Water Board have issued new regulations, requiring new drought response actions by water providers such as the City of Newport Beach (City). Each water agency is required to implement Level 2 demand reduction actions identified in the supplier's water shortage contingency plan. Although the Utilities Department has certified the City to have enough water to meet demands for next year, our supply is threatened by the drought. To best comply with new State of California (State) regulations, staff recommends the City Council enact a Level Two water shortage, with a public awareness campaign to reduce water waste and use. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Adopt Resolution No. 2022-46, A Resolution of the City Council of the City of Newport Beach, California, Declaring a Level Two Water Supply Shortage as Mandated by the State Water Board; and c) Direct staff to implement additional water conservation public education and use restrictions to conserve water. DISCUSSION: An overview of the current California drought indicates that the situation has continued to worsen. Statewide, Colorado River, rainfall, snowpacks, and reservoir levels are significantly low. A lack of new State water supplies and the lack of change in environmental policies exacerbates the overall lack of water. California, Orange County, and the City use less water than they did 20 years ago. The City itself has made significant investments in its sustainable groundwater system, especially with the Orange County Water District's replenishment efforts, and our water conservation efforts. Overall, the City uses 25 percent less water today than it did approximately 20 years ago. However, additional water conservation is still requested by the State. 23-1 Resolution No. 2022-46: Declaring No Surplus Water and a Level Two Water Supply Shortage June 28, 2022 Page 2 Governor Newsom recently signed Executive Order N-7-22, addressing the current drought and the State Water Resources Control Board adopted Resolution No. 2022- 0018, emergency drought response regulations, mandating that each urban water supplier implement its Level 2 demand reduction actions. These are actions identified in the City's water shortage contingency plan which was approved on June 8, 2021. With the concurrence of the City's regional water wholesalers and partners, the Utilities Department has certified that the City has enough water to meet demands for this next year. However, no surplus exists, and its supply is threatened because of the drought. With the lack of surplus, and in compliance with the State's requirements, enacting a Level 2 water supply shortage is recommended. Staff recommends that the overall focus be on water conservation education and on outreach and enforcement on water waste. These efforts will further reduce the City's overall water use, keep it compliant with State requirements, and position the City well if the drought continues or escalates further. Level Two Water Supply Shortage, Municipal Code Section 14.16 The Water Conservation and Water Supply Shortage Program, Municipal Code Section 14.16, was recently updated and approved by City Council on May 24, 2022, and June 14, 2022. Of the various actions in the code, the Level Two water supply shortage includes an overall target reduction range of between 10% and 20%, which is consistent with the State's goals. There are three actionable items within Level 2, described below: Three irrigation/sprinkler watering days per week In a Level Two declaration, the watering days to sprinkler irrigate lawns, landscaping and other vegetation goes to a maximum of three days per week. A reduction of watering days will save water and yet provide enough water to sustain most landscaping. Staff recommends that these be non-specific days. This gives residents the best flexibility and also better balances the pumping within the City's water system. Although enforceable, the primary focus is on education. If needed in the future for the drought, specific watering days can be implemented, with considerable effort. Base year comparison, 2020 A significant decision point in the code is the determination of the base water year. This is the year that the City itself and water users would be compared to. Staff recommends it be the 2020 calendar year. The State has not officially declared or chosen a year, but indications within the industry indicate that 2020 is the likely or best comparison year. Although 2020 was the onset of the virus pandemic, it was also the last year before additional drought actions began. From a practical standpoint, 2020 water use was slightly higher than 2019, giving residents the most flexibility for comparison purposes. 23-2 Resolution No. 2022-46: Declaring No Surplus Water and a Level Two Water Supply Shortage June 28, 2022 Page 3 Cutback percentages Utilities staff has reviewed the City's overall water supply and demand forecast for next year. A reduction in water use has already begun. At this point, staff does not recommend specific additional cutback percentages be required of the City's water customers. Rather, residential and irrigation customers are asked to not use more water than they did in 2020 (same billing periods). Although this would be an enforceable requirement, the initial primary focus will be on educating water users. There are a variety of exemptions and reliefs from compliance as listed in the code. Additionally, staff recommends additional exemptions for already efficient water users. Specifically, the comparison standard would not apply to single-family residential and multifamily customers that already use 10 (or nine, respectively) billing units or less. Implementation and public education City staff has developed a communication and outreach strategy as water conservation education is the staff's primary focus. This has been a proven way to reduce water use and waste. Staff has begun enhanced drought and conservation communications and is using many different outreach tactics including emails, bill inserts (paper and electronic), print media, social media, ads, newsletters, NBTV interviews, changeable message signs, City Manager's The Week in Review, City website, City Council meetings, door hangers, and community events/meetings. A key component is the creation of a new electronic customer portal. This portal, which is being rolled out this summer, will leverage the City's investment in its new digital AMI water meters, allowing customers electronic access to view and compare their water use in near real-time. As a last resort, code enforcement will focus on wasted water, i.e. water running down the gutter. New State prohibition on watering non-functional turf grass In its recently adopted emergency regulation, the State Water Resources Control Board adopted a new prohibition for the watering of non-functional turf grass. Non-functional turf grass means turf grass that is solely ornamental (decorative) and not regularly used for human recreational purposes or for civic or community events. This is not lawns adjacent to homes; rather it is referring to decorative lawns that are commonly found at the entrances to businesses and communities, or parkways along frontage roads. There are exemptions and enforcement from State Water Resources Control Board is unclear, especially as an emergency regulation as opposed to a new State law. City staff has begun the educational outreach regarding this to businesses and to homeowner associations. Partial compliance is expected immediately. However, transitioning to full compliance may take some time in order to prevent health and safety issues, preserve surrounding trees/landscaping and give property owners the benefit of the doubt regarding human use of these turf areas. 23-3 Resolution No. 2022-46: Declaring No Surplus Water and a Level Two Water Supply Shortage June 28, 2022 Page 4 Overall, the City is in a good position because of its previous efforts and would like to continue its efforts as a conserver. Additional water use savings have already begun. Education and along with new actions by the City and new State requirements should garner overall water savings of over 10%. In order to fully comply with new State requirements, staff recommends implementation and actions as described for a Level Two water supply shortage. The term of this Level Two Water Supply Shortage will expire in six months and staff will return to the City Council in November if a continuation or escalation is necessary. FISCAL IMPACT: The current adopted budget includes sufficient funding for the additional expenses relating to water conservation and the drought. They will be expensed to the Water Enterprise Fund in the Utilities Department. Additionally, with a decrease in water use, a decrease in water revenue is expected. During the 2019 water rate study, a rate stabilization reserve, also known as a drought reserve, was created for items such as this temporary drought. Through the use of reserves, there are sufficient reserve funds to sustain a 10% decrease in water use for approximately three years. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Resolution No. 2022-46 23-4 ATTACHMENT A RESOLUTION NO. 2022- 46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, DECLARING A LEVEL TWO WATER SUPPLY SHORTAGE AS MANDATED BY THE STATE WATER BOARD WHEREAS, California is currently experiencing a state-wide drought; WHEREAS, on March 28, 2022, Governor Newsom issued Executive Order N-7- 22, which directed the State Water Resources Control Board (State Water Board") to consider adopting emergency regulations to increase water conservation and requested the State Water Board to require urban water suppliers to implement Level 2 of their water shortage contingency plans; WHEREAS, on May 24, 2022, the State Water Board adopted Resolution No. 2022-0018, to enact an emergency regulation relating to drought response actions by amending Title 23 of the California Code of Regulations to add new section 996 ("Emergency Regulation"); WHEREAS, the Emergency Regulation, which took effect June 16, 2022 and will remain in effect for one year unless the State Water Board modifies it, ends it earlier, or readopts it, requires each urban water supplier to implement at a minimum all demand reduction actions identified in the supplier's water shortage contingency plan adopted under Water Code Section 10632 for a shortage level of ten (10) to twenty (20) percent (Level 2); WHEREAS, Newport Beach residents and businesses have taken bold steps over the years to reduce water use and the City of Newport Beach and the Orange County Water District have invested in water resiliency and water reliability within our groundwater basin; WHEREAS, the City's public information and awareness campaign regarding the current drought continues to be instrumental in achieving conservation goals and reducing water waste; WHEREAS, the "Save Our Water" statewide water conservation program (SaveOurWater.com), and the City's water conservation campaign (ocwatersmart.com) are great resources for water conservation information, tips, rebates, and water saving landscape designs; 23-5 Resolution No. 2022- Page 2 of 4 WHEREAS, according to the City's annually mandated water supply and demand assessment, the City has a balance in water supply and demand for next year but with no surplus water supply; WHEREAS, Governor Newsom and the State Water Board nevertheless have determined that additional conservation actions from urban water suppliers, residents, and the commercial, industrial, and institutional sectors are required; and WHEREAS, these additional conservation actions will help increase the availability of water for the next year. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby declare a Level Two Water Supply Shortage to comply with the State Water Board's Emergency Regulation mandating implementation of demand reduction actions associated with the Level Two Water Supply Shortage condition as identified in the City's Water Shortage Contingency plan. Section 2: In accordance with NBMC Section 14.16.070, the following water use restrictions for a Level Two Water Supply Shortage condition are imposed: A. No customer shall use potable water to irrigate any lawn, landscape or other vegetated area for more than three days per week. This restriction does not apply to the following: 1. Maintenance of vegetation, including trees and shrubs, that is watered using a hand-held bucket or similar container, a hand-held hose equipped with a positive self -closing water shut-off nozzle or device, or a very low -flow drip type irrigation system when no emitter produces more than two gallons of water per hour. 2. Irrigation of food crops (including fruit trees and vegetable gardens). 3. Short periods of irrigation for the exclusive purpose of adjusting or repairing an irrigation system. B. Residential and irrigation customers shall not use in any billing period any more water than the amount of water those customers used in the same billing period in 2020. For those customers without a City water billing history for the same billing period in 2020, their base amount shall be an estimate based on the water usage of similar 23-6 Resolution No. 2022- Page 3 of 4 premises and users during that that billing period in 2020. This restriction does not apply to the following customer categories: 1. Single Family Residential customers that use 20 billing units or less during a two -month billing period or 10 billing units or less during a one -month billing period. 2. Multi -family Residential customers that use 18 billing units or less during a two -month billing period or 9 billing units or less during a one -month billing period. C. This declaration of water supply shortage and the accompanying mandatory water use restrictions and conservation measures set forth herein shall become effective upon the adoption of this resolution and shall remain in full force and effect for up to six (6) months unless this resolution is extended, repealed earlier, or new mandatory conservation measures are adopted, but shall not in any case be in effect for longer than the effective dates of the Emergency Regulation. Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 5: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 23-7 Resolution No. 2022- Page 4 of 4 Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 28th day of June, 2022. Kevin Muldoon Mayor Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE -j-"" C, ,n,- Aaron C. Harp City Attorney 23-8