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Staff ReportMEETING DATE: 06/02/15 COUNCIL AGENDA REPORT ITEM NO: Li fBa _s��os DATE: MAY 25, 2015 TO: MAYOR AND TOWN COUNCIL / FROM: LES WHITE, INTERIM TOWN MA SUBJECT: WATER CONSERVATION INTRODUCE AN ORDINANCE ADOPTING ADDITIONS TO CHAPTER 27 (UTILITIES) OF THE TOWN CODE RELATING TO WATER CONSERVATION AND WATER MANAGEMENT AND ESTABLISHING REGULATIONS PROHIBITING NONESSENTIAL USE OF POTABLE WATER AND ADOPTING PENALTIES AND FINES A. MAKE THE REQUIRED FINDING THAT THERE IS NO POSSIBILITY THAT THIS PROJECT WILL HAVE A SIGNIFICANT IMPACT ON THE ENVIRONMENT; THEREFORE, THE PROJECT IS NOT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (SECTION 15060 (C)(2) AND SECTION 15060 (C)(3)). B. MAKE THE REQUIRED FINDING THAT THE PROPOSED TOWN CODE AMENDMENTS ARE CONSISTENT WITH THE GENERAL PLAN AND ITS ELEMENTS. C. MOVE TO INTRODUCE THE ORDINANCE BY TITLE ONLY AND WAIVE THE READING OF THE ORDINANCE. RECOMMENDATION: After opening and closing the public hearing, and asking the Clerk Administrator to read the title of the proposed ordinance, it is recommended that the Town Council: 1. Make the required finding that there is no possibility that this project will have a significant impact on the environment; therefore, the project is not subject to the California Environmental Quality Act (Section 15060 (C)(2) and Section 15060 (C)(3)). 2. Make the required finding that the proposed Town Code amendments are consistent with the General Plan and its Elements. 3. Move to introduce the ordinance by title only and waive the reading of the ordinance. EXECUTIVE SUMMARY Following the adoption of an urgency ordinance on May 5, 2015, Town Staff has had the opportunity to conduct further study of the evolving regulatory environment on water conservation and the drought. The staff recommendation follows a regional effort to align standards and messaging on conservation efforts. This is a step in a different direction than that approved by Council associated with the urgency ordinance. PREPARED BY: MATT MORLEY Director of Parks and Publ c W ks Reviewed by: LV Assistant Town Manager _1fown Attorney PAGE MAYOR AND TOWN COUNCIL SUBJECT: WATER CONSERVATION MAY 25, 2015 BACKGROUND: On May 5, 2015, the Town Council adopted an urgency ordinance reflecting a condition of drought in Los Gatos. The ordinance requires a 25% reduction in water use Town -wide and restricts the means in which water is used in several ways, including the requirement for limited irrigation, the use of positive shut -off hose end sprayers, and the prohibition of watering turf in median islands. An urgency ordinance provides the opportunity for a Council to act quickly on an issue while providing additional time to develop a permanent ordinance. The Town's adopted urgency ordinance requires further action by the Town Council within 45 days. Per California Government Code Section 65858, the Council could extend the actions of the urgency ordinance for another 10 months and 15 days (with a future available extension) or for another 22 months and 15 days. In any case, the urgency ordinance lapses if Council does not extend it and the total maximum life of an urgency ordinance with extensions is 2 years from the original adoption. As presented to the Council at the May 5 meeting, regulations and direction related to the drought have been ongoing. At that time, mandatory requirements affecting Los Gatos and set by the State through the Town's retailer, San Jose Water Company (SJWC), included a 20% conservation level. The Town's implementation of a 25% target was above and beyond the required level. Several actions and events have taken place that provide additional information, which staff has incorporated into this report. This includes a call by the Santa Clara Valley Water District (SCVWD) for a 30% reduction and a regional drought summit, attended by several Council members, where a significant part of the discussion revolved around consistent messaging on the need and the level of conservation. The summit included sample local ordinance language to facilitate consistency across jurisdictions. Most recently, SJWC sent a request to the Public Utilities Commission to revise rates to help achieve a 30% savings and has voluntarily moved its target up to that level from the previously set target of 20 %. The revised rate schedule sets a baseline usage level across all SJWC users and a target use level below that. The residential targets are shown in the table below. Water use is measured in units of one hundred cubic feet (CCF). Each CCF is equivalent to 748 gallons. SJWC billing shows the water usage in CCF on every bill. Note that the average use and the monthly allocation are averaged across all residential users and are not specific to individual account holders. The allocation for all SJWC residential users in July will be 13 CCF, regardless of the individual users' usage in 2013. PAGE MAYOR AND TOWN COUNCIL SUBJECT: WATER CONSERVATION MAY 25, 2015 BACKGROUND (cont'd): SJWC Residential Allocation Plan Month 2013 Avg. Use (CCF) Monthly Drought Allocation (CCF) Monthly Drought Allocation allons January 10 9 6,732 February 9 9 6,732 March 9 9 6,732 April 11 9 6,732 May 14 10 7,480 June 16 11 8,228 July 19 13 9,724 August 19 13 9,724 September 19 13 9,724 October 17 12 8,976 November 17 12 8,976 December 14 10 7,480 Usage above the allocation will result in a surcharge of $3.5634 per CCF. Usage above the 2013 average use will result in a surcharge of $7.1268 per CCF. SJWC will use the surcharge to offset costs associated with conservation. SJWC expects these rates to take effect on June 15, 2015. DISCUSSION: Proposed Ordinance Past Councils have addressed droughts through the use of urgency ordinances. That continues to be a resource this Council could use. Staff has also drafted Municipal Code additions, discussed below, and recommends adopting those to provide more effective action by this and future Councils. This is a step in a different direction than that approved by Council associated with the urgency ordinance. Staff has prepared a further ordinance for Council consideration. This ordinance establishes a new Article 6 in Chapter 27 of the Municipal Code titled Conservation and Water Management. The ordinance is modeled after the ordinance provided at the drought summit, as mentioned above. The new Article 6 provides an ongoing means for the Council to declare water conservation needs through a Council resolution. Section B of Article 6 provides for ongoing conservation requirements. These requirements are similar to limitations and restrictions currently in place, including limiting watering hours from 10:00 a.m. to 5:00 p.m., limiting watering duration to 15 minutes, requiring leak repair within 10 days, and limiting drinking water service in restaurants on patron request only. Sections C through E of the ordinance establish a series of water supply shortage levels with the escalating requirements of each level highlighted here. PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: WATER CONSERVATION MAY 25, 2015 DISCUSSION (cont'd): Level 1 Water Supply Shortage, where the Town Council determines a usage reduction of between 11 % and 20% is necessary. • Limits on watering days drops to 3 -5 days per week. • Obligations to fix leaks increases to 72 hours. • Hard or paved surfaces can only be washed to alleviate safety or sanitary hazards. Level 2 Water Supply Shortage, where the Town Council determines a usage reduction of between 21 % and 35% is necessary. • Restricts watering days to 2 days per week. • Increases the requirement to fix leaks to 48 hours. • Prohibits the filling of ornamental lakes or ponds with potable water. • Requires automobiles to be washed at a facility that recycles water. • Prohibits the filling or refilling of swimming pools. Level 3 Water Supply Shortage, where the Town Council determines a usage reduction of greater than 35% is necessary. • Prohibits the watering of vegetated areas with potable water (with some exceptions). • Increases the requirement to fix leaks to 24 hours. • No building permits for new pools or spas will be issued. The Council may declare a Water Supply Shortage by resolution at a regular or special meeting. Upon adoption of a resolution, the Town must publish notice within 5 days in a newspaper used for publication of official notices. Enforcement activities are authorized through the ordinance. The Town will continue to work with San Jose Water on escalating enforcement through their notification process. If a violation requires a citation, the fine for the first violation is $100. Town Activities As discussed with the Council at the May 5 Council meeting, Town staff has implemented measures to reduce municipal water use. The main focus continues to be irrigation as the heaviest source of water use. SJWC bills bi- monthly, so it will be several months before the full impact of these measures are known. Staff will continue to report on drought activities on a regular basis. CONCLUSION: Staff recommends that the Town Council introduce an ordinance adopting additions to Chapter 27 (Utilities) of the Town Code relating to water conservation and water management and establishing regulations prohibiting nonessential use of potable water and adopting penalties and fines. Staff will prepare a resolution for adoption at the June 16, 2015 Council meeting declaring PAGE 5 MAYOR AND TOWN COUNCIL SUBJECT: WATER CONSERVATION MAY 25, 2015 CONCLUSION (cont'd): a Level 2 Water Supply Shortage to accompany the second reading of the ordinance. The timeframe between now and June 16 is covered by the 45 day urgency ordinance. ALTERNATIVES: By a four -fifths vote, the Council could extend the urgency ordinance for a period of 10 months and 15 days or for a period of 22 months and 15 days, without adopting the recommended Town Code additions. COORDINATION: This report has been coordinated with the Community Development Department, the Town Attorney, San Jose Water Company, and the Santa Clara Valley Water District. ENVIRONMENTAL ASSESSMENT: The Town Council finds that this ordinance 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; rather it prevents changes in the environment by imposing mandatory conservation regulations and associated penalties to protect and preserve the City's water resources during the current drought conditions. Further, the adoption of this ordinance is categorically exempt under CEQA Guidelines Section 15308 for actions taken by regulatory agencies to ensure the protection of the environment and Section 15061(b)(3) because the City Council can see with certainty that there is no possibility the adoption of this ordinance will have a significant effect on the environment. Further, the Town finds that this Ordinance and actions taken hereafter pursuant to this Ordinance are exempt from the California Environmental Quality Act as specific actions necessary to prevent or mitigate an emergency pursuant to Public Resources Code Section 21080(b)(4) and the California Environmental Quality Act Guidelines Section 15269(c). The Town Clerk is hereby authorized and directed to file a Notice of Exemption as soon as possible following adoption of this Ordinance. FISCAL IMPACT: There are no further fiscal impacts from this action. Attachments: 1. Staff report from May 5, 2015 Council meeting including Attachments and Addendum 2. Draft Urgency Ordinance Adopted at the May 5, 2015 Council Meeting 3. Draft Ordinance adding Town Code Chapter 27 Article VI