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HomeMy WebLinkAbout10 - Continuation of a Level Two Water Supply ShortageQ �EwPpRT CITY OF NEWPORT BEACH 44:09, P City Council Staff Report November 29, 2022 Agenda Item No. 10 TO: 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. 2022-88: Continuation of a Level Two Water Supply Shortage ABSTRACT: California and Orange County are continuing to experience drought conditions. In the spring of 2022, Governor Newsom and the State Water Board issued new regulations, requiring drought response actions by water providers. Those regulations are still in effect. The City of Newport Beach (City) was required to implement Level Two demand reduction actions identified in our water shortage contingency plan. This was enacted by the City Council on June 28, 2022 and is set to expire at the end of December. 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 comply with the regulations, staff recommends that the City Council continue to 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. 2022-88, A Resolution of the City Council of the City of Newport Beach, California, Extending the Declaration of 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 remains grim. Statewide, Colorado River, rainfall, snowpacks and reservoir levels are significantly low. A lack of new state water supplies and the challenging environmental conditions exacerbate 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 Newport Beach's 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 of California (State). 10-1 Resolution No. 2022-88: Continuation of a Level Two Water Supply Shortage November 29, 2022 Page 2 Governor Newsom 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 Two demand reduction actions. These regulations still remain in effect. 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 current and near future demands. However, no surplus exists, and its supply is threatened because of the drought. The State and region are also awaiting to see the results of this winter's weather. With the lack of surplus, and in compliance with the State's requirements, continuing a Level Two water supply shortage is recommended. Staff recommends that the overall focus continue to be on water conservation education and on outreach and enforcement on water waste. Over the past several months, residents and businesses have reduced their water use by 10% as compared to 2020 levels. Continuing 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 Level Two water supply shortage includes an overall target reduction range of between 10% and 20%, which is consistent with the State's goals. The three actionable items within Level Two are described below: Three irrigation/sprinkler watering days per week (April — October) One irrigation/sprinkler watering day per week (November— March) 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 (April — October) and one day per week (November— March). 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. Staff recommended it be the 2020 calendar year and it was approved by City Council on June 28, 2022. Staff continues to recommend that 2020 be used as the base water year. 10-2 Resolution No. 2022-88: Continuation of a Level Two Water Supply Shortage November 29, 2022 Page 3 Cutback percentages Staff again 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 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 for water conservation education. This has been a proven way to reduce water use and waste. Staff 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 articles, City website, City Council meetings, door hangers, and community events/meetings. A new tool in effect is the creation of a new electronic customer portal. This portal, which was rolled out in September, leverages 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. Overall, the City is in a good position because of its previous efforts and would like to continue its efforts as a conserver. With continued education and stable weather, staff expects water use reductions to continue. In order to fully comply with current State requirements, staff recommends continued implementation and actions 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 ahead of summer if a continuation or escalation is necessary. FISCAL IMPACT: The 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. The reserves are currently being utilized and were designed to sustain a 10% decrease in water use for approximately three years. A new water and sewer rate study will be considered by separate City Council action. 10-3 Resolution No. 2022-88: Continuation of a Level Two Water Supply Shortage November 29, 2022 Page 4 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. 2022-88 10-4 ATTACHMENT A RESOLUTION NO. 2022-88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, EXTENDING THE DECLARATION OF A LEVEL TWO WATER SUPPLY SHORTAGE AS MANDATED BY THE STATE WATER BOARD WHEREAS, mandates by Governor Newsom and the State Water Resources Control Board ("State Board") require urban water suppliers, including the City of Newport Beach ("City"), 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) and to ensure the demand reduction remains in effect until at least June 16, 2023, unless other action is taken by the State Board ("State Mandates"); WHEREAS, on June 28, 2022, the City Council adopted Resolution No. 2022-46 declaring a Level Two Water Supply Shortage ("Declaration") to comply with the State Mandates; WHEREAS, the State of California has not taken any action to lift or modify the State Mandates; and WHEREAS, extension of the Declaration, which will expire December 27, 2022, is necessary to comply with the State Mandates notwithstanding the prudent and proactive measures by the City, its residents and businesses to reduce water use as well as investments made in the resiliency and reliability of the City's water sources, which have resulted in projections for the City having a balance in water supply and demand for next year but with no surplus water supply. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: To comply with the State Mandates, the City Council does hereby extend its Declaration and implements the demand reduction actions associated with a 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: 10-5 Resolution No. 2022- Page 2 of 4 A. No customer shall use potable water to irrigate any lawn, landscape or other vegetated area for more than three days per week April through October and for more than one day a week November through March. 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 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. The extension of the Declaration and the accompanying mandatory water use restrictions and conservation measures set forth herein shall remain in full force and effect for up to six (6) months from December 27, 2022 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 State Mandates. Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 10-6 Resolution No. 2022- Page 3 of 4 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. 10-7 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 29th day of November, 2022. Kevin Muldoon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE �-►-`_C fitw. ' Aaron C. Harp City Attorney 10-8