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HomeMy WebLinkAbout07-22-14 FA&C Committee Packet 1 OTAY WATER DISTRICT FINANCE, ADMINISTRATION AND COMMUNICATIONS COMMITTEE MEETING and SPECIAL MEETING OF THE BOARD OF DIRECTORS 2554 SWEETWATER SPRINGS BOULEVARD SPRING VALLEY, CALIFORNIA BOARDROOM TUESDAY July 22, 2014 11:30 A.M. This is a District Committee meeting. This meeting is being posted as a special meeting in order to comply with the Brown Act (Government Code Section §54954.2) in the event that a quorum of the Board is present. Items will be deliberated, however, no formal board actions will be taken at this meeting. The committee makes recommendations to the full board for its consideration and formal action. AGENDA 1. ROLL CALL 2. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA DISCUSSION ITEMS 3. ADOPT RESOLUTION NO. 4239 TO DECLARE A WATER SHORTAGE RESPONSE LEVEL 2 – SUPPLY ALERT CONDITION THAT CALLS FOR MANDATORY CONSERVATION MEASURES; AND ADOPT ORDINANCE NO. 546 AMENDING SECTION 39, WATER SHORTAGE RESPONSE PROGRAM, OF THE DISTRICT’S CODE OF ORDINANCES AND AUTHORIZE THE GENERAL MANAGER TO APPOINT A DESIGNEE TO ADMINISTER THE REQUIREMENTS OF THE PROGRAM (CAREY) [5 minutes] 4. APPROVE THE ISSUANCE OF A PURCHASE ORDER TO TEGILE INC. IN THE AMOUNT OF $155,479.60 FOR THE PURCHASE OF TWO (2) ENTERPRISE STORAGE AREA NETWORK (SAN) DEVICES AND SERVICES (KERR) [5 minutes] 5. ADJOURNMENT BOARD MEMBERS ATTENDING: Jose Lopez David Gonzalez 2 All items appearing on this agenda, whether or not expressly listed for action, may be deliberated and may be subject to action by the Board. The Agenda, and any attachments containing written information, are available at the District’s website at www.otaywater.gov. Written changes to any items to be considered at the open meeting, or to any attachments, will be posted on the District’s website. Copies of the Agenda and all attachments are also available through the District Secre- tary by contacting her at (619) 670-2280. If you have any disability which would require accommodation in order to enable you to participate in this meeting, please call the District Secretary at 670-2280 at least 24 hours prior to the meeting. Certification of Posting I certify that on July 18, 2014 I posted a copy of the foregoing agenda near the regular meeting place of the Board of Directors of Otay Water District, said time being at least 24 hours in advance of the meeting of the Board of Directors (Government Code Section §54954.2). Executed at Spring Valley, California on July 18, 2014. ______/s/_ Susan Cruz, District Secretary _____ STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 6, 2014 SUBMITTED BY: Andrea Carey, Customer Service Manager PROJECT: DIV. NO. All APPROVED BY: Joseph R. Beachem, Chief Financial Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: Adopt Resolution No. 4239 to Declare a Water Shortage Response Level 2 – Supply Alert Condition and Adopt Ordinance No. 546 to Amend Section 39, Water Shortage Response Program of the District’s Code of Ordinances to Authorize the General Manager to Appoint a Designee to Administer the Requirements of the Program GENERAL MANAGER’S RECOMMENDATION: That the Board adopt Resolution No. 4239 to declare a Water Shortage Response Level 2 – Supply Alert Condition which calls for mandatory conservation measures and to adopt Ordinance No. 546 amending Section 39, Water Shortage Response Program of the District’s Code of Ordinances to authorize the General Manager to appoint a designee to administer the requirements of the program. COMMITTEE ACTION: See Attachment A. PURPOSE: To comply with the State Water Board’s emergency conservation regulations. ANALYSIS: California is experiencing an unprecedented drought due to three years of lower than anticipated rainfall. In response, Governor Brown declared a statewide drought emergency on January 17, 2014. On March 1st Governor Brown signed a drought relief package, SB 104, which among other things, expanded the State Water Board’s authority to adopt emergency regulations in certain drought years. On July 15th the State Water Board, in response to continued drought conditions, set forth emergency conservation regulations implementing water restrictions for all Californians and mandating all urban suppliers implement their Water Shortage Plans at a level that triggers mandatory restrictions on outdoor water use. In response to this order, staff is recommending the District declare a Water Shortage Response, Level 2: Supply Alert Condition. Moving to a Level 2 response will change all restrictions listed under the Level 1 response from voluntary to mandatory. In addition, the District will restrict outdoor landscape irrigation to no more than three days per week and no more than 15 minutes per watering station per day. Customers who have installed water efficient landscape devices will not be subject to the above time restrictions as these devices put out a lower flow of water over a longer period of time thereby preventing runoff. Customers on private wells or using recycled water are exempt from the drought restrictions. Customers who violate the mandatory water restrictions may be assessed penalties and damages as stated in Section 72.04 of the District’s Code of Ordinances. The District may terminate water service and fine customers up to $500 for each day the violation occurs. Staff is requesting the Board of Directors adopt Ordinance No. 546 amending Section 39 to authorize the General Manager to appoint a designee to administer the requirements of the program. At this time, staff does not recommend implementing drought rates. Staff will be monitoring water revenue closely and should water usage drop significantly, the option of drought rate pricing will be revisited. Water Supply Outlook With 2013 being the driest year on record statewide, the Metropolitan Water District (MWD) decided in 2014 to avoid water allocations by withdrawing from storage reserves. MWD predicts that it has adequate storage reserves to meet the projected supply gap of about 1.1 million acre-feet; however, should conditions continue, MWD may have to begin water allocations in 2015. The impact of this water shortage would be mitigated by the County Water Authority’s (CWA) water supply diversification. San Diego County has invested heavily in additional storage facilities and water sources such as the Colorado River water transfers and the Carlsbad Desalination Project, which is expected to produce water as soon as the fall of 2015. Conservation practices already in place by District customers and the availability of reclaimed water has allowed the District to reduce per capita potable water use by more than 30 percent from FY 2007 to FY 2014. However, it is unknown if additional conservation requirements will be mandated in the current drought environment. Staff is closely monitoring this situation and will be updating the Board as more information becomes available. Internal Water Conservation Programs Staff is currently working to step up internal programs aimed at promoting water conservation. These programs include: Leak Notification: As part of the meter reading process, any customer whose meter registers a leak alarm due to continuous usage for 21 hours out of 24, will be notified via email, phone call, or site visit. The type of notification will be dependent on various thresholds for larger than expected usage. Customers will be directed to the District’s website for tips on how to check for leaks, in addition to programs offering assistance to replace or upgrade water using appliances. Site visits will allow staff to better identify the areas needing attention and pass this information along to our customers. Bill Insert and Envelope Messaging: Staff will continue to publicize conservation through bill inserts and newsletters. In addition, staff is exploring the option of having a water conservation message printed on the bill envelope. This message will alert customers to the current level of required conservation and will be in alignment with other District and county-wide messaging. High Usage Customers with Prior Disconnects: Staff is putting a process in place to assist customers who are high users and have been disconnected or have had multiple disconnects for non-payment within the last year. The water conservation team along with customer service will work together to direct these customers in ways they can reduce their usage and take advantage of audits offered by the District. District Website: The District’s website is being revamped to give water conservation a more prominent place. In the meantime, the home page now includes drought and rebate updates for customers. Staff is working to update the video library to make it easily accessible to customers to learn how to read their meter, check for leaks, and update available irrigation products. Water Waste Reporting: Staff will be working to bring back the water waste tracking mechanism for customers to report water waste by category. This will ensure leaks or run-off identified by citizens in our service area are investigated and acted on promptly. Water Conservation Rebates and Site Visits The following rebates and services are offered to District customers: Site Water Audits: Otay partners with CWA to provide customers free water audits. Customers can contact the CWA’s designated vendor, Mission Resources Conservation Group, to schedule a visit. MWD Turf Removal Program: MWD provides rebates of $2.00 per square-foot when converting existing live turf grass to a low water use alternative. This may include artificial or synthetic turf or other permeable surfaces. MWD’s program includes front, side, and backyards. This can be combined with the CWA Turf Replacement Rebate. CWA Turf Replacement Rebate Program: CWA provides rebates of $1.50 per square-foot when replacing live irrigated grass in front yards with low water use non-invasive plants. This can be combined with the MWD Turf Removal Rebate. Additional Rebates: The following rebates on conservation products are available:  High Efficiency Clothes Washer - $165.00  High Efficiency Toilet - $95.00  Weather Based Irrigation Controllers - Under 1 acre is $140.00 Over 1 acre is $40/station  Rotating Nozzles - $4/nozzle, 15 minimum  Moisture Sensors added to Irrigation Controller - $80.00  Rain Barrels - $75.00 each, 4 maximum Staff is currently evaluating other options to augment the rebates and incentives program already in place. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The fiscal impact of additional water conservation is uncertain at this time. The program costs are likely to be neutral as staff will look to shift budgets to accommodate these costs. If water usage declines by 5%, staff expects a $280,000 net revenue decline which could be offset by a .20 percent water rate increase. Staff will closely monitor both sales volumes and possible budget shortfalls. STRATEGIC GOAL: Actively manage water supply and demand. LEGAL IMPACT: None. Attachments: Attachment A – Committee Action Attachment B – Resolution No. 4239 Attachment C – Ordinance No. 546 Exhibit 1 – Strike-through Section 39 Exhibit 2 - Proposed Section 39 Attachment D – SWRCB Resolution No. 2014-0038 Attachment E - Presentation ATTACHMENT A SUBJECT/PROJECT: Adopt Resolution No. 4239 to Declare a Water Shortage Response Level 2 – Supply Alert Condition, Adopt Ordinance No. 546 to Amend Section 39, Water Shortage Response Program of the District’s Code of Ordinances and to Authorize the General Manager to Appoint a Designee to Administer the Requirements of the Program COMMITTEE ACTION: That the Board approve the Finance, Administration and Communications Committee recommendation to adopt Resolution No. 4239 to declare a Water Shortage Response Level 2 – Supply Alert Condition and adopt Ordinance No. 546 to amend Section 39, Water Shortage Response Program of the District’s Code of Ordinances and to authorize the General Manager to appoint a designee to administer the requirements of the program. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for board approval. This report will be sent to the Board as a committee approved item, or modified to reflect any discussion or changes as directed from the committee prior to presentation to the full board. 1 RESOLUTION NO. 4239 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT TO DECLARE A WATER SHORTAGE RESPONSE LEVEL 2 -- SUPPLY ALERT CONDITION WHEREAS, California is experiencing an unprecedented drought due to three years of lower than anticipated rainfall; and WHEREAS, in response to the drought, Governor Brown declared a statewide drought emergency on January 17, 2014; and WHEREAS, on March 1, 2014 Governor Brown signed a drought relief package, SB 104, which expanded the State Water Board’s authority to adopt emergency regulations in certain drought conditions; and WHEREAS, on July 15, 2014 the State Water Board, set forth emergency conservation regulations implementing water restrictions for all Californians and mandating all urban suppliers implement their Water Shortage Plans at a level that triggers mandatory restrictions on outdoor water use; and WHEREAS, in response to this order, the Otay Water District (herein "District") is declaring a Water Shortage Response Level 2 -- Supply Alert Condition which calls for mandatory conservation measures in order to comply with the State Water Board’s emergency conservation regulations. NOW, THEREFORE, the Board of Directors of the Otay Water District resolves, determines and orders that the District declare a Water Shortage Response, Level 2: Supply Alert Condition. Moving to a Level 2 response will change all restrictions listed under the Level 1 response from voluntary to mandatory. In addition, the District will restrict outdoor landscape irrigation to no more than Attachment B 2 three days per week and no more than 15 minutes per watering station per day. Customers who have installed water efficient landscape devices will not be subject to the above irrigation restrictions. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting held on this 6th day of August, 2014. Ayes: Noes: Abstain: Absent: ________________________ President ATTEST: ____________________________ District Secretary 1 ORDINANCE NO. 546 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE OTAY WATER DISTRICT AMENDING SECTION 39, WATER SHORTAGE RESPONSE PROGRAM OF THE DISTRICT’S CODE OF ORDINANCES BE IT ORDAINED by the Board of Directors of Otay Water District that the District’s Code of Ordinances Section 39, Water Shortage Response Program, be amended as per Exhibit 1 (attached). NOW, THEREFORE, BE IT RESOLVED that the new proposed Section 39, Water Shortage Response Program (Exhibit 2), of the Code of Ordinances shall become effective August 6, 2014. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Otay Water District at a regular meeting duly held this 6th day of August 2014, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ President ATTEST: _____________________________ District Secretary Attachment C 39-1 SECTION 39. WATER SHORTAGE RESPONSE PROGRAM 39.01 DECLARATION OF NECESSITY AND INTENT (a) This Section establishes water management requirements necessary to conserve water, enable effective water supply planning, assure reasonable and beneficial use of water, prevent waste of water, prevent unreasonable use of water, prevent unreasonable method of use of water within the District in order to assure adequate supplies of water to meet the needs of the public, and further the public health, safety, and welfare, recognizing that water is a scarce natural resource that requires careful management not only in times of a water shortage, but at all times. (b) This Section establishes regulations to be implemented during times of declared water shortages, or declared water shortage emergencies. It establishes four levels of actions to be implemented in times of shortage, with increasing restrictions on water use in response to worsening water shortage conditions and decreasing available supplies. (c) The Level 1 water shortage response condition practices are voluntary and will be reinforced through local and regional public education and awareness measures that may be funded in part by the District. Beginning at the level 2 Water Shortage Response Condition, the District may implement water shortage pricing. When a water shortage response Level 2 condition is declared, all conservation practices and water-use restrictions may become mandatory and increasingly restrictive in order to attain escalating conservation goals. (d) During a Water Shortage Response Level 3 condition or higher, the water conservation practices and water use restrictions established by this ordinance are mandatory and violations are subject to criminal, civil, and administrative penalties and remedies specified in Section 72 of this ordinance. Exhibit 1 39-2 39.02 DEFINITIONS APPLICABLE TO THE PROGRAM (a) The following words and phrases whenever used in this Section shall have the meaning defined in this sub-section: 1. “Grower” refers to those engaged in the growing or raising, in conformity with recognized practices of husbandry, for the purpose of commerce, trade, or industry, or for use by public educational or correctional institutions, of agricultural, horticultural or floricultural products, and produced: (1) for human consumption or for the market, or (2) for the feeding of fowl or livestock produced for human consumption or for the market, or (3) for the feeding of fowl or livestock for the purpose of obtaining their products for human consumption or for the market. “Grower” does not refer to customers who purchase water subject to the Metropolitan Interim Agricultural Water Program or the Water Authority Special Agricultural Rate programs. 2. “Water Authority” means the San Diego County Water Authority. 3. “DMP” means the Water Authority’s Drought Management Plan in existence on the effective date of this Section and as readopted or amended from time to time, or an equivalent plan of the Water Authority to manage or allocate supplies during shortages. 4. “Metropolitan” means the Metropolitan Water District of Southern California. 5. “Person” means any natural person, corporation, public or private entity, public or private association, public or private agency, government agency or institution, school district, college, university, or any other user of water provided by the District. 39-3 39.03 APPLICATION (a) The provisions of this Section apply to any person in the use of any water provided by the District. (b) This Section is intended solely to further the conservation of water. It is not intended to implement any provision of federal, State, or local statutes, ordinances, or regulations relating to protection of water quality or control of drainage or runoff. Refer to the local jurisdiction or Regional Water Quality Control Board for information on any storm water ordinances and storm water management plans. (c) Nothing in this Section is intended to affect or limit the ability of the District to declare and respond to an emergency, including an emergency that affects the ability of the District to supply water. (d) The provisions of this Section do not apply to use of water from private wells or to recycled water. (e) Nothing in this Section shall apply to use of water that is subject to a special supply program, such as the Metropolitan Interim Agricultural Water Program or the Water Authority Special Agricultural Rate programs. Violations of the conditions of special supply programs are subject to the penalties established under the applicable program. A person using water subject to a special supply program and other water provided by the District is subject to this Section in the use of the other water. (f) In addition, customers are encouraged not to wash down paved surfaces, including but not limited to sidewalks, driveways, parking lots, tennis courts, or patios, except when it is necessary to alleviate safety or sanitation hazards. At all times, the following practices shall be in effect: 1. Prevent water waste resulting from inefficient irrigation, such as runoff or overspray. Similarly, stop water flows 39-4 onto non-targeted areas, such as adjacent property, non-irrigated areas, hardscapes, roadways, or structures. 2. Serve and refill water in restaurants and other food service establishments only upon request. 3. Offer guests in hotels, motels, and other commercial lodging establishments the option of not laundering towels and linens daily. 4. Repair all water leaks within forty-eight hours (48) of notification by the District unless other arrangements are made with the General Manager or designee. 39.04 WATER SHORTAGE RESPONSE LEVEL 1 – SUPPLY WATCH CONDITION (a) A Water Shortage Response Level 1 condition is also referred to as a “Supply Watch” condition. A Level 1 condition applies when the Water Authority notifies its member agencies that due to water shortage or other supply reductions, there is a reasonable probability there will be supply shortages and that a consumer demand reduction of up to 10 percent is required in order to ensure that sufficient supplies will be available to meet anticipated demands. The General Manager shall declare the existence of a Level 1 and take action to implement the Level 1 conservation practices identified in this Section. (b) During a Level 1 condition, the District will increase its public education and outreach efforts to emphasize increased public awareness of the need to implement the following water conservation practices. The same water conservation practices may become mandatory if the District declares a Level 2 condition: 1. Irrigate residential and commercial landscape before 10 a.m. and after 6 p.m. only. Customers are to water no more than three days a week using the suggested watering schedule as found on the District’s web page. New plantings and newly seeded areas are exempt for 30 days. 39-5 2. Use a hand-held hose equipped with a positive shut-off nozzle or bucket to water landscaped areas, including trees and shrubs located on residential and commercial properties that are not irrigated by a landscape irrigation system. 3. Irrigate nursery and commercial grower’s products before 10 a.m. and after 6 p.m. only. Watering is permitted at any time with a hand-held hose equipped with a positive shut-off nozzle, a bucket, or when a drip/micro-irrigation system/equipment is used. Irrigation of nursery propagation beds is permitted at any time. Watering of livestock is permitted at any time. 4. Use re-circulated water to operate ornamental fountains. 5. Wash vehicles, including but not limited to motorcycles, farm equipment, trailers, boats and boat engines and motorhomes using a bucket and a hand-held hose with positive shut-off nozzle, mobile high pressure/low volume wash system, or at a commercial site that re-circulates (reclaims) water on-site. Vehicle washing is limited to once per week. 6. Use recycled or non-potable water for construction purposes when available. 39.05 WATER SHORTAGE RESPONSE LEVEL 2 – SUPPLY ALERT CONDITION (a) A Water Shortage Response Level 2 condition is also referred to as a “Supply Alert” condition. A Level 2 condition applies when the Water Authority notifies its member agencies that due to cutbacks caused by water shortage or other reduction in supplies, a consumer demand reduction of 11 to 20 percent is required in order to have sufficient supplies available to meet anticipated demands. The District Board of Directors may declare the existence of a Level 2 condition and implement the Level 2 conservation practices identified in this section of the ordinance. The District may decide to implement some or all of the Level 1 practices. 39-6 (b) All persons using District water shall make every effort to comply with Level 1 water conservation practices during a Level 2, and also to comply with the following additional conservation measures: 1. Limit residential and commercial landscape irrigation to no more than three (3) days per week. This section shall not apply to homeowner’s vegetable gardens, fruit trees, commercial growers, or nurseries. 2. Limit lawn watering and landscape irrigation using sprinklers to no more than fifteen (15) minutes per watering station per day. During the months of November through April, landscape irrigation shall not exceed seven (7) minutes per water watering station per assigned day. Watering times may need to be shortened to avoid run-off. This provision does not apply to landscape irrigation systems using water efficient devices, including but not limited to: weather based controllers, drip/micro-irrigation systems, rotating sprinkler nozzles and stream rotor sprinklers. 3. Water landscaped areas, including trees and shrubs located on residential and commercial properties, and not irrigated by a landscape irrigation system on the same schedule set forth above by using a bucket, hand-held hose with positive shut- off nozzle, or low-volume non-spray irrigation. 4. Irrigation is not allowed during a rainstorm and for forty-eight hours after one-quarter inch or more of rainfall is measured at Lindbergh Field. No washing down of paved surfaces, including but not limited to sidewalks, driveways, parking lots, tennis courts, or patios, except when it is necessary to alleviate safety or sanitation hazards. 39.06 WATER SHORTAGE RESPONSE LEVEL 3 – SUPPLY CRITICAL CONDITION (a) A Water Shortage Response Level 3 condition is also referred to as a “Supply Critical” condition. A Level 3 condition applies when the Water Authority notifies its member agencies that due to increasing cutbacks caused by 39-7 water shortage or other reduction of supplies, a consumer demand reduction of between 21 and 40 percent is required in order to have sufficient supplies available to meet anticipated demands. The District Board of Directors may declare the existence of a Level 3 condition and implement the Level 3 conservation practices identified in this Section. (b) All persons using District water shall comply with Level 1 and Level 2 water conservation practices during a Level 3 condition and shall also comply with the following additional mandatory conservation measures: 1. Limit residential and commercial landscape irrigation to no more than two (2) assigned days per week on a schedule established by the General Manager or designee and posted by the District. During the months of November through April, landscape irrigation is limited to no more than once per week on a schedule established by the General Manager or designee and posted by the District. This section shall not apply to commercial growers or nurseries. 2. Water landscaped areas, including trees and shrubs located on residential and commercial properties, and not irrigated by a landscape irrigation system on the same schedule set forth above by using a bucket, hand-held hose with a positive shut-off nozzle, or low-volume non-spray irrigation. 3. Stop filling or re-filling ornamental lakes or ponds, except to the extent needed to sustain aquatic life, provided that such animals are of significant value and have been actively managed within the water feature prior to declaration of a water shortage response level under this Section. 4. Stop operating non-residential ornamental fountains or similar decorative water features unless recycled water is used. 5. Stop washing vehicles except at commercial carwashes that re-circulate water, or by high pressure/low volume wash systems. If a commercial car wash cannot accommodate the vehicle because of the vehicle size or type, such as RVs, horse trailers, boats and commercial vehicles, customers will be 39-8 allowed to wash vehicles using a bucket and a hand-held hose with positive shut-off nozzle, mobile high pressure/low volume wash system. (c) Upon the declaration of a Level 3 condition, no new potable water service shall be provided, no new temporary meters or permanent meters shall be provided, and no statements of immediate ability to serve or provide potable water service (such as, will serve letters, certificates, or letters of availability) shall be issued, except under the following circumstances: 1. A valid, unexpired building permit has been issued for the project; or 2. The project is necessary to protect the public’s health, safety, and welfare; or 3. The applicant provides substantial evidence of an enforceable commitment that water demands for the project will be offset prior to the provision of a new water meter(s) to the satisfaction of the District. This provision shall not be construed to preclude the resetting or turn-on of meters to provide continuation of water service or to restore service that has been interrupted. (d) Upon the declaration of a Level 3 condition, the District will suspend consideration of annexations to its service area. (e) The District may establish a water allocation for property served by the District using a method that takes into consideration the implementation of conservation methods or the installation of water saving devices. If the District establishes a water allocation, it shall provide notice of the allocation by including it in the regular billing statement for the fee or charge or by any other mailing to the address to which the District customarily mails the billing statement for fees or charges for on-going water service. Following the effective date of the water allocation as established by the District, any person that uses water in excess of the allocation shall be subject to a penalty for each billing unit of water in excess of the allocation. The penalty for excess water 39-9 usage shall be cumulative to any other remedy or penalty that may be imposed for violation of this Section. 39.07 WATER SHORTAGE RESPONSE LEVEL 4 – SUPPLY EMERGENCY CONDITION (a) A Water Shortage Response Level 4 condition is also referred to as a “Supply Emergency” condition. A Level 4 condition applies when the Water Authority Board of Directors declares a water shortage emergency pursuant to California Water Code section 350 and notifies its member agencies that Level 4 requires a demand reduction of more than 40 percent in order for the District to have maximum supplies available to meet anticipated demands. The District shall declare a Level 4 in the manner and on the grounds provided in California Water Code section 350. (b) All persons using District water shall comply with conservation measures required during Level 1, Level 2, and Level 3 conditions and shall also comply with the following additional mandatory conservation measures: 1. Stop all landscape irrigation, except crops and landscape products of commercial growers and nurseries. This restriction shall not apply to the following categories of use unless the District has determined that recycled water is available and may be lawfully applied to the use. A. Maintenance of trees and shrubs that are watered on the same schedule as noted in the Level 3 Condition, by using a bucket, hand-held hose with a positive shut-off nozzle, or low- volume non-spray irrigation; B. Maintenance of existing landscaping necessary for fire protection as specified by the Fire Marshal of the local fire protection agency having jurisdiction over the property to be irrigated; C. Maintenance of existing landscaping for erosion control; D. Maintenance of plant materials identified to be rare or essential to the well being of rare animals; 39-10 E. Maintenance of landscaping within active public parks and playing fields, day care centers, school grounds, cemeteries, and golf course greens, provided that such irrigation does not exceed two (2) days per week according to the schedule established under the District’s Level 3 Condition; F. Watering of livestock; and G. Public works projects and actively irrigated environmental mitigation projects. 2. Repair all water leaks within twenty-four (24) hours of notification by the District unless other arrangements are made with the District. (c) The District may establish a water allocation for property served by the District. If the District establishes water allocation it shall provide notice of the allocation by including it in the regular billing statement for the fee or charge or by any other mailing to the address to which the District customarily mails the billing statement for fees or charges for on-going water service. Following the effective date of the water allocation as established by the District, any person that uses water in excess of the allocation shall be subject to a penalty for each billing unit of water in excess of the allocation. The penalty for excess water usage shall be cumulative to any other remedy or penalty that may be imposed for violation of any provision of this Section. 39.08 CORRELATION BETWEEN DROUGHT MANAGEMENT PLAN (DMP) AND WATER SHORTAGE RESPONSE LEVELS (a) The correlation between the Water Authority’s DMP stages and the District’s water shortage response levels identified in this Section of the Code of Ordinance is described herein. Under DMP Stage 1, the District would implement Water Shortage Response Level 1 actions. Under DMP Stage 2, the District would implement Water Shortage Response Level 1 or Level 2 actions. Under DMP Stage 3, the District would implement Water Shortage Response Level 2, Level 3, or Level 4 actions. 39-11 (b) The water shortage response levels identified in this Section correspond with the Water Authority DMP as identified in the following table: Water Shortage Response Levels Use Restrictions Conservation Target DMP Stage 1 - Supply Watch Voluntary Up to 10% Stage 1 or 2 2 - Supply Alert Mandatory 11 to 20% Stage 2 or 3 3 - Supply Critical Mandatory 21 to 40% Stage 3 4 - Supply Emergency Mandatory Above 40% Stage 3 39.09 PROCEDURES FOR DETERMINATION AND NOTIFICATION OF WATER SHORTAGE RESPONSE LEVEL (a) The existence of a Water Shortage Response Level 1 condition may be declared by the General Manager upon a written determination of the existence of the facts and circumstances supporting the determination. A copy of the written determination shall be filed with the Clerk or Secretary of the District and provided to the District Board of Directors. The General Manager may publish a notice of the determination of existence of Water Shortage Response Level 1 condition in one or more newspapers, including a newspaper of general circulation within the District. The District will also post notice of the condition on their website. (b) The existence of Water Shortage Response Level 2 or Level 3 conditions may be declared by resolution of the District Board of Directors adopted at a regular or special public meeting held in accordance with State law. The mandatory conservation measures applicable to Water Shortage Response Level 2 or Level 3 conditions shall take effect on the tenth (10) day after the date the response level is declared. Within five (5) days following the declaration of the response level, the District shall publish a copy of the resolution in a newspaper used for publication of official notices. (c) The existence of a Water Shortage Response Level 4 condition may be declared in accordance with the procedures specified in California Water Code sections 350 to 352 as note below: 39-12 350. The governing body of a distributor of a public water supply, whether publicly or privately owned and including a mutual water company, may declare a water shortage emergency condition to prevail within the area served by such distributor whenever it finds and determines that the ordinary demands and requirements of water consumers cannot be satisfied without depleting the water supply of the distributor to the extent that there would be insufficient water for human consumption, sanitation, and fire protection. 351. Except in event of a breakage or failure of a dam, pump, Pipe line or conduit causing an immediate emergency, the declaration shall be made only after a public hearing at which consumers of such water supply shall have an opportunity to be heard to protest against the declaration and to present their respective needs to said governing board. 352. Notice of the time and place of hearing shall be published pursuant to Section 6061 of the Government Code at least seven days prior to the date of hearing in a newspaper printed, published, and circulated within the area in which the water supply is distributed, or if there is no such newspaper, in any newspaper printed, published, and circulated in the county in which the area is located. The mandatory conservation measures applicable to Water Shortage Response Level 4 conditions shall take effect on the tenth (10) day after the date the response level is declared. Within five (5) days following the declaration of the response level, the District shall publish a copy of the resolution in a newspaper used for publication of official notices. If the District establishes a water allocation, it shall provide notice of the allocation by including it in the regular billing statement for the fee or charge or by any other mailing to the address to which the District customarily mails the billing statement for fees or charges for on-going water service. Water allocation shall be effective on the fifth (5) day following the date of mailing or at such later date as specified in the notice. (d) The District Board of Directors may declare an end to a Water Shortage Response Level by the adoption of a resolution at any regular or special meeting held in accordance with State law. 39-1 SECTION 39. WATER SHORTAGE RESPONSE PROGRAM 39.01 DECLARATION OF NECESSITY AND INTENT (a) This Section establishes water management requirements necessary to conserve water, enable effective water supply planning, assure reasonable and beneficial use of water, prevent waste of water, prevent unreasonable use of water, prevent unreasonable method of use of water within the District in order to assure adequate supplies of water to meet the needs of the public, and further the public health, safety, and welfare, recognizing that water is a scarce natural resource that requires careful management not only in times of a water shortage, but at all times. (b) This Section establishes regulations to be implemented during times of declared water shortages, or declared water shortage emergencies. It establishes four levels of actions to be implemented in times of shortage, with increasing restrictions on water use in response to worsening water shortage conditions and decreasing available supplies. (c) The Level 1 water shortage response condition practices are voluntary and will be reinforced through local and regional public education and awareness measures that may be funded in part by the District. Beginning at the level 2 Water Shortage Response Condition, the District may implement water shortage pricing. When a water shortage response Level 2 condition is declared, all conservation practices and water-use restrictions may become mandatory and increasingly restrictive in order to attain escalating conservation goals. (d) During a Water Shortage Response Level 3 condition or higher, the water conservation practices and water use restrictions established by this ordinance are mandatory and violations are subject to criminal, civil, and administrative penalties and remedies specified in Section 72 of this ordinance. Exhibit 2 39-2 39.02 DEFINITIONS APPLICABLE TO THE PROGRAM (a) The following words and phrases whenever used in this Section shall have the meaning defined in this sub-section: 1. “Grower” refers to those engaged in the growing or raising, in conformity with recognized practices of husbandry, for the purpose of commerce, trade, or industry, or for use by public educational or correctional institutions, of agricultural, horticultural or floricultural products, and produced: (1) for human consumption or for the market, or (2) for the feeding of fowl or livestock produced for human consumption or for the market, or (3) for the feeding of fowl or livestock for the purpose of obtaining their products for human consumption or for the market. “Grower” does not refer to customers who purchase water subject to the Metropolitan Interim Agricultural Water Program or the Water Authority Special Agricultural Rate programs. 2. “Water Authority” means the San Diego County Water Authority. 3. “DMP” means the Water Authority’s Drought Management Plan in existence on the effective date of this Section and as readopted or amended from time to time, or an equivalent plan of the Water Authority to manage or allocate supplies during shortages. 4. “Metropolitan” means the Metropolitan Water District of Southern California. 5. “Person” means any natural person, corporation, public or private entity, public or private association, public or private agency, government agency or institution, school district, college, university, or any other user of water provided by the District. 39-3 39.03 APPLICATION (a) The provisions of this Section apply to any person in the use of any water provided by the District. (b) This Section is intended solely to further the conservation of water. It is not intended to implement any provision of federal, State, or local statutes, ordinances, or regulations relating to protection of water quality or control of drainage or runoff. Refer to the local jurisdiction or Regional Water Quality Control Board for information on any storm water ordinances and storm water management plans. (c) Nothing in this Section is intended to affect or limit the ability of the District to declare and respond to an emergency, including an emergency that affects the ability of the District to supply water. (d) The provisions of this Section do not apply to use of water from private wells or to recycled water. (e) Nothing in this Section shall apply to use of water that is subject to a special supply program, such as the Metropolitan Interim Agricultural Water Program or the Water Authority Special Agricultural Rate programs. Violations of the conditions of special supply programs are subject to the penalties established under the applicable program. A person using water subject to a special supply program and other water provided by the District is subject to this Section in the use of the other water. (f) In addition, customers are encouraged not to wash down paved surfaces, including but not limited to sidewalks, driveways, parking lots, tennis courts, or patios, except when it is necessary to alleviate safety or sanitation hazards. At all times, the following practices shall be in effect: 1. Prevent water waste resulting from inefficient irrigation, such as runoff or overspray. Similarly, stop water flows 39-4 onto non-targeted areas, such as adjacent property, non-irrigated areas, hardscapes, roadways, or structures. 2. Serve and refill water in restaurants and other food service establishments only upon request. 3. Offer guests in hotels, motels, and other commercial lodging establishments the option of not laundering towels and linens daily. 4. Repair all water leaks within forty-eight hours (48) of notification by the District unless other arrangements are made with the General Manager or designee. 39.04 WATER SHORTAGE RESPONSE LEVEL 1 – SUPPLY WATCH CONDITION (a) A Water Shortage Response Level 1 condition is also referred to as a “Supply Watch” condition. A Level 1 condition applies when the Water Authority notifies its member agencies that due to water shortage or other supply reductions, there is a reasonable probability there will be supply shortages and that a consumer demand reduction of up to 10 percent is required in order to ensure that sufficient supplies will be available to meet anticipated demands. The General Manager shall declare the existence of a Level 1 and take action to implement the Level 1 conservation practices identified in this Section. (b) During a Level 1 condition, the District will increase its public education and outreach efforts to emphasize increased public awareness of the need to implement the following water conservation practices. The same water conservation practices may become mandatory if the District declares a Level 2 condition: 1. Irrigate residential and commercial landscape before 10 a.m. and after 6 p.m. only. Customers are to water no more than three days a week using the suggested watering schedule as found on the District’s web page. New plantings and newly seeded areas are exempt for 30 days. 39-5 2. Use a hand-held hose equipped with a positive shut-off nozzle or bucket to water landscaped areas, including trees and shrubs located on residential and commercial properties that are not irrigated by a landscape irrigation system. 3. Irrigate nursery and commercial grower’s products before 10 a.m. and after 6 p.m. only. Watering is permitted at any time with a hand-held hose equipped with a positive shut-off nozzle, a bucket, or when a drip/micro-irrigation system/equipment is used. Irrigation of nursery propagation beds is permitted at any time. Watering of livestock is permitted at any time. 4. Use re-circulated water to operate ornamental fountains. 5. Wash vehicles, including but not limited to motorcycles, farm equipment, trailers, boats and boat engines and motorhomes using a bucket and a hand-held hose with positive shut-off nozzle, mobile high pressure/low volume wash system, or at a commercial site that re-circulates (reclaims) water on-site. Vehicle washing is limited to once per week. 6. Use recycled or non-potable water for construction purposes when available. 39.05 WATER SHORTAGE RESPONSE LEVEL 2 – SUPPLY ALERT CONDITION (a) A Water Shortage Response Level 2 condition is also referred to as a “Supply Alert” condition. A Level 2 condition applies when the Water Authority notifies its member agencies that due to cutbacks caused by water shortage or other reduction in supplies, a consumer demand reduction of 11 to 20 percent is required in order to have sufficient supplies available to meet anticipated demands. The District Board of Directors may declare the existence of a Level 2 condition and implement the Level 2 conservation practices identified in this section of the ordinance. The District may decide to implement some or all of the Level 1 practices. 39-6 (b) All persons using District water shall make every effort to comply with Level 1 water conservation practices during a Level 2, and also to comply with the following additional conservation measures: 1. Limit residential and commercial landscape irrigation to no more than three (3) days per week. This section shall not apply to homeowner’s vegetable gardens, fruit trees, commercial growers, or nurseries. 2. Limit lawn watering and landscape irrigation using sprinklers to no more than fifteen (15) minutes per watering station per day. During the months of November through April, landscape irrigation shall not exceed seven (7) minutes per water watering station per assigned day. Watering times may need to be shortened to avoid run-off. This provision does not apply to landscape irrigation systems using water efficient devices, including but not limited to: weather based controllers, drip/micro-irrigation systems, rotating sprinkler nozzles and stream rotor sprinklers. 3. Water landscaped areas, including trees and shrubs located on residential and commercial properties, and not irrigated by a landscape irrigation system on the same schedule set forth above by using a bucket, hand-held hose with positive shut- off nozzle, or low-volume non-spray irrigation. 4. Irrigation is not allowed during a rainstorm and for forty-eight hours after one-quarter inch or more of rainfall is measured at Lindbergh Field. No washing down of paved surfaces, including but not limited to sidewalks, driveways, parking lots, tennis courts, or patios, except when it is necessary to alleviate safety or sanitation hazards. 39.06 WATER SHORTAGE RESPONSE LEVEL 3 – SUPPLY CRITICAL CONDITION (a) A Water Shortage Response Level 3 condition is also referred to as a “Supply Critical” condition. A Level 3 condition applies when the Water Authority notifies its member agencies that due to increasing cutbacks caused by 39-7 water shortage or other reduction of supplies, a consumer demand reduction of between 21 and 40 percent is required in order to have sufficient supplies available to meet anticipated demands. The District Board of Directors may declare the existence of a Level 3 condition and implement the Level 3 conservation practices identified in this Section. (b) All persons using District water shall comply with Level 1 and Level 2 water conservation practices during a Level 3 condition and shall also comply with the following additional mandatory conservation measures: 1. Limit residential and commercial landscape irrigation to no more than two (2) assigned days per week on a schedule established by the General Manager or designee and posted by the District. During the months of November through April, landscape irrigation is limited to no more than once per week on a schedule established by the General Manager or designee and posted by the District. This section shall not apply to commercial growers or nurseries. 2. Water landscaped areas, including trees and shrubs located on residential and commercial properties, and not irrigated by a landscape irrigation system on the same schedule set forth above by using a bucket, hand-held hose with a positive shut-off nozzle, or low-volume non-spray irrigation. 3. Stop filling or re-filling ornamental lakes or ponds, except to the extent needed to sustain aquatic life, provided that such animals are of significant value and have been actively managed within the water feature prior to declaration of a water shortage response level under this Section. 4. Stop operating non-residential ornamental fountains or similar decorative water features unless recycled water is used. 5. Stop washing vehicles except at commercial carwashes that re-circulate water, or by high pressure/low volume wash systems. If a commercial car wash cannot accommodate the vehicle because of the vehicle size or type, such as RVs, horse trailers, boats and commercial vehicles, customers will be 39-8 allowed to wash vehicles using a bucket and a hand-held hose with positive shut-off nozzle, mobile high pressure/low volume wash system. (c) Upon the declaration of a Level 3 condition, no new potable water service shall be provided, no new temporary meters or permanent meters shall be provided, and no statements of immediate ability to serve or provide potable water service (such as, will serve letters, certificates, or letters of availability) shall be issued, except under the following circumstances: 1. A valid, unexpired building permit has been issued for the project; or 2. The project is necessary to protect the public’s health, safety, and welfare; or 3. The applicant provides substantial evidence of an enforceable commitment that water demands for the project will be offset prior to the provision of a new water meter(s) to the satisfaction of the District. This provision shall not be construed to preclude the resetting or turn-on of meters to provide continuation of water service or to restore service that has been interrupted. (d) Upon the declaration of a Level 3 condition, the District will suspend consideration of annexations to its service area. (e) The District may establish a water allocation for property served by the District using a method that takes into consideration the implementation of conservation methods or the installation of water saving devices. If the District establishes a water allocation, it shall provide notice of the allocation by including it in the regular billing statement for the fee or charge or by any other mailing to the address to which the District customarily mails the billing statement for fees or charges for on-going water service. Following the effective date of the water allocation as established by the District, any person that uses water in excess of the allocation shall be subject to a penalty for each billing unit of water in excess of the allocation. The penalty for excess water 39-9 usage shall be cumulative to any other remedy or penalty that may be imposed for violation of this Section. 39.07 WATER SHORTAGE RESPONSE LEVEL 4 – SUPPLY EMERGENCY CONDITION (a) A Water Shortage Response Level 4 condition is also referred to as a “Supply Emergency” condition. A Level 4 condition applies when the Water Authority Board of Directors declares a water shortage emergency pursuant to California Water Code section 350 and notifies its member agencies that Level 4 requires a demand reduction of more than 40 percent in order for the District to have maximum supplies available to meet anticipated demands. The District shall declare a Level 4 in the manner and on the grounds provided in California Water Code section 350. (b) All persons using District water shall comply with conservation measures required during Level 1, Level 2, and Level 3 conditions and shall also comply with the following additional mandatory conservation measures: 1. Stop all landscape irrigation, except crops and landscape products of commercial growers and nurseries. This restriction shall not apply to the following categories of use unless the District has determined that recycled water is available and may be lawfully applied to the use. A. Maintenance of trees and shrubs that are watered on the same schedule as noted in the Level 3 Condition, by using a bucket, hand-held hose with a positive shut-off nozzle, or low- volume non-spray irrigation; B. Maintenance of existing landscaping necessary for fire protection as specified by the Fire Marshal of the local fire protection agency having jurisdiction over the property to be irrigated; C. Maintenance of existing landscaping for erosion control; D. Maintenance of plant materials identified to be rare or essential to the well being of rare animals; 39-10 E. Maintenance of landscaping within active public parks and playing fields, day care centers, school grounds, cemeteries, and golf course greens, provided that such irrigation does not exceed two (2) days per week according to the schedule established under the District’s Level 3 Condition; F. Watering of livestock; and G. Public works projects and actively irrigated environmental mitigation projects. 2. Repair all water leaks within twenty-four (24) hours of notification by the District unless other arrangements are made with the District. (c) The District may establish a water allocation for property served by the District. If the District establishes water allocation it shall provide notice of the allocation by including it in the regular billing statement for the fee or charge or by any other mailing to the address to which the District customarily mails the billing statement for fees or charges for on-going water service. Following the effective date of the water allocation as established by the District, any person that uses water in excess of the allocation shall be subject to a penalty for each billing unit of water in excess of the allocation. The penalty for excess water usage shall be cumulative to any other remedy or penalty that may be imposed for violation of any provision of this Section. 39.08 CORRELATION BETWEEN DROUGHT MANAGEMENT PLAN (DMP) AND WATER SHORTAGE RESPONSE LEVELS (a) The correlation between the Water Authority’s DMP stages and the District’s water shortage response levels identified in this Section of the Code of Ordinance is described herein. Under DMP Stage 1, the District would implement Water Shortage Response Level 1 actions. Under DMP Stage 2, the District would implement Water Shortage Response Level 1 or Level 2 actions. Under DMP Stage 3, the District would implement Water Shortage Response Level 2, Level 3, or Level 4 actions. 39-11 (b) The water shortage response levels identified in this Section correspond with the Water Authority DMP as identified in the following table: Water Shortage Response Levels Use Restrictions Conservation Target DMP Stage 1 - Supply Watch Voluntary Up to 10% Stage 1 or 2 2 - Supply Alert Mandatory 11 to 20% Stage 2 or 3 3 - Supply Critical Mandatory 21 to 40% Stage 3 4 - Supply Emergency Mandatory Above 40% Stage 3 39.09 PROCEDURES FOR DETERMINATION AND NOTIFICATION OF WATER SHORTAGE RESPONSE LEVEL (a) The existence of a Water Shortage Response Level 1 condition may be declared by the General Manager upon a written determination of the existence of the facts and circumstances supporting the determination. A copy of the written determination shall be filed with the Clerk or Secretary of the District and provided to the District Board of Directors. The General Manager may publish a notice of the determination of existence of Water Shortage Response Level 1 condition in one or more newspapers, including a newspaper of general circulation within the District. The District will also post notice of the condition on their website. (b) The existence of Water Shortage Response Level 2 or Level 3 conditions may be declared by resolution of the District Board of Directors adopted at a regular or special public meeting held in accordance with State law. The mandatory conservation measures applicable to Water Shortage Response Level 2 or Level 3 conditions shall take effect on the tenth (10) day after the date the response level is declared. Within five (5) days following the declaration of the response level, the District shall publish a copy of the resolution in a newspaper used for publication of official notices. (c) The existence of a Water Shortage Response Level 4 condition may be declared in accordance with the procedures specified in California Water Code sections 350 to 352 as note below: 39-12 350. The governing body of a distributor of a public water supply, whether publicly or privately owned and including a mutual water company, may declare a water shortage emergency condition to prevail within the area served by such distributor whenever it finds and determines that the ordinary demands and requirements of water consumers cannot be satisfied without depleting the water supply of the distributor to the extent that there would be insufficient water for human consumption, sanitation, and fire protection. 351. Except in event of a breakage or failure of a dam, pump, Pipe line or conduit causing an immediate emergency, the declaration shall be made only after a public hearing at which consumers of such water supply shall have an opportunity to be heard to protest against the declaration and to present their respective needs to said governing board. 352. Notice of the time and place of hearing shall be published pursuant to Section 6061 of the Government Code at least seven days prior to the date of hearing in a newspaper printed, published, and circulated within the area in which the water supply is distributed, or if there is no such newspaper, in any newspaper printed, published, and circulated in the county in which the area is located. The mandatory conservation measures applicable to Water Shortage Response Level 4 conditions shall take effect on the tenth (10) day after the date the response level is declared. Within five (5) days following the declaration of the response level, the District shall publish a copy of the resolution in a newspaper used for publication of official notices. If the District establishes a water allocation, it shall provide notice of the allocation by including it in the regular billing statement for the fee or charge or by any other mailing to the address to which the District customarily mails the billing statement for fees or charges for on-going water service. Water allocation shall be effective on the fifth (5) day following the date of mailing or at such later date as specified in the notice. (d) The District Board of Directors may declare an end to a Water Shortage Response Level by the adoption of a resolution at any regular or special meeting held in accordance with State law. STATE WATER RESOURCES CONTROL BOARD RESOLUTION NO. 2014-0038 TO ADOPT AN EMERGENCY REGULATION FOR STATEWIDE URBAN WATER CONSERVATION WHEREAS: 1. On April 25, 2014, Governor Edmund G. Brown Jr. issued an executive order to strengthen the state’s ability to manage water and habitat effectively in drought conditions and called on all Californians to redouble their efforts to conserve water. The executive order finds that the continuous severe drought conditions present urgent challenges across the state including water shortages in communities and for agricultural production, increased wildfires, degraded habitat for fish and wildlife, threat of saltwater contamination, and additional water scarcity if drought conditions continue into 2015. The National Integrated Drought Information System reported that nearly 80% of the state was reported to be under "extreme" drought conditions at the end of June; 2. The executive order refers to the Governor’s Proclamation No. 1-17-2014, issued on January 17, 2014, declaring a State of Emergency to exist in California due to severe drought conditions. The January Proclamation notes that the state is experiencing record dry conditions, with 2014 projected to become the driest year on record. Since January, state water officials indicate that reservoirs, rainfall totals and the snowpack remain critically low. This follows two other dry or below average years, leaving reservoir storage at alarmingly low levels. The January Proclamation highlights the State’s dry conditions, lack of precipitation and the resulting effects on drinking water supplies, the cultivation of crops, and the survival of animals and plants that rely on California’s rivers and streams. The January Proclamation also calls on all Californians to reduce their water usage by 20 percent; 3. There is no guarantee that winter precipitation will alleviate the drought conditions that the executive orders address, which will lead to even more severe impacts across the state if the drought wears on; 4. Water Code section 1058.5 grants the State Water Board the authority to adopt emergency regulations in certain drought years in order to: “prevent the waste, unreasonable use, unreasonable method of use, or unreasonable method of diversion, of water, to promote water recycling or water conservation, to require curtailment of diversions when water is not available under the diverter’s priority of right, or in furtherance of any of the foregoing, to require reporting of diversion or use or the preparation of monitoring reports”; 5. Over 400,000 acres of farmland are expected to be fallowed, thousands of people may be out of work, communities risk running out of drinking water, and fish and wildlife will suffer. 2 6. Many Californians have taken bold steps over the years and in this year to reduce water use; nevertheless, the dire nature of the current drought requires additional conservation actions from residents and businesses. Some severely affected communities have implemented water rationing, limiting water use in some cases to only 50 gallons per person per day, foregoing showers, laundry, toilet flushing, and all outdoor watering. 7. Water conservation is the easiest, most efficient and most cost effective way to quickly reduce water demand and extend supplies into the next year, providing flexibility for all California communities. Water saved this summer is water available next year, giving water suppliers the flexibility to manage their systems efficiently. The more water that is conserved now, the less likely it is that a community will experience such dire circumstances that water rationing is required ; 8. Most Californians use more water outdoors than indoors. In many areas, 50 percent or more of daily water use is for lawns and outdoor landscaping. Outdoor water use is generally discretionary, and many irrigated landscapes would not suffer greatly from receiving a decreased amount of water; 9. Public information and awareness is critical to achieving conservation goals and the Save Our Water campaign, run jointly by the Department of Water Resources (DWR) and the Association of California Water Agencies, is an excellent resource for conservation information and messaging that is integral to effective drought response (http://saveourwater.com). 10. Enforcement against water waste is a key tool in conservation programs. When conservation becomes a social norm in a community, the need for enforcement is reduced or eliminated; 11. The emergency regulations set a minimum standard requiring only modest lifestyle changes across the state. Many communities are already doing more and have been for years. They should be commended, but can and should do more. Others are not yet doing so and should at least do this, but should do much more given the severity of the drought; 12. On July 8, 2014, the State Water Board issued public notice that the State Water Board would consider the adoption of the regulation at the Board’s regularly-scheduled July 15, 2014 public meeting, in accordance with applicable State laws and regulations. The State Water Board also distributed for public review and comment a Finding of Emergency that complies with State laws and regulations; 13. On April 25, 2014, the Governor suspended the California Environmental Quality Act’s application to the State Water Board’s adoption of emergency regulations pursuant to Water Code section 1058.5 to prevent the waste, unreasonable use, unreasonable method of use, or unreasonable method of diversion of water, to promote water recycling or water conservation; 14. As discussed above, the State Water Board is adopting the emergency regulation because of emergency drought conditions, the need for prompt action, and current limitations in the existing enforcement process; 3 15. Disadvantaged communities may require assistance in increasing water conservation and state agencies should look for opportunities to provide assistance in promoting water conservation; 16. Nothing in the regulations or in the enforcement provisions of the regulations, preclude a local agency from exercising its authority to adopt more stringent conservation measures. Moreover, the Water Code does not impose a mandatory penalty for violations of the regulations adopted by this resolution and local agencies retain their enforcement discretion in enforcing the regulations, to the extent authorized, and may develop their own progressive enforcement practices to encourage conservation. THEREFORE BE IT RESOLVED THAT: 1. The State Water Board adopts California Code of Regulations, title 23, sections 863, 864, and 865, as appended to this resolution as an emergency regulation; 2. The State Water Board staff will submit the regulation to the Office of Administrative Law (OAL) for final approval; 3. If, during the approval process, State Water Board staff, the State Water Board, or OAL determines that minor corrections to the language of the regulation or supporting documentation are needed for clarity or consistency, the State Water Board Executive Director or designee may make such changes; 4. These regulations shall remain in effect for 270 days after filing with the Secretary of State unless the State Water Board determines that it is no longer necessary due to changed conditions, or unless the State Water Board renews the regulations due to continued drought conditions as described in Water Code section 1058.5; 5. The State Water Board directs staff to provide the Board with monthly updates on the implementation of the emergency regulations and their effect; 6. Directs State Water Board staff to condition funding upon compliance with the emergency regulations, to the extent feasible; 7. Directs State Water Board staff to work with the Department of Water Resources and the Save Our Water campaign to disseminate information regarding the emergency regulations; and 8. Directs State Water Board staff in developing an electronic reporting portal to include data fields so that local agencies may provide monthly reporting data on (i) conservation- related implementation measures or enforcement actions taken by the local agency and (ii) substitution during the drought of potable water with recycled water to extend water supplies. 4 THEREFORE BE IT FURTHER RESOLVED THAT: 9. The State Water Board commends water suppliers that have increased conservation messaging and adopted innovative strategies to enhance customer awareness of water use, such as applications that let customers compare their water use to water use by others; reduce system losses, such as fixing system leaks which can deplete supplies by 10 percent or more; and establish incentives to reduce demand, such as tiered or drought rate structures. The State Water Board also commends all Californians that have already been working to maximize their conservation efforts, both at home and at work; 10. The State Water Board calls upon water suppliers to take the following actions: Educate customers and employees  Retail water suppliers should provide notice of the regulations in English and Spanish in one or more of the following ways: newspaper advertisements, bill inserts, website homepage, social media, notices in public libraries;  Wholesale suppliers should include reference to the regulations in their customer communications;  All water suppliers should train personnel on the regulations;  All water suppliers should provide signage where recycled or reclaimed water is being used for activities that the emergency regulations prohibit with the use of potable water, such as operation of fountains and other water features;  All water suppliers should redouble their efforts to disseminate information regarding opportunities and incentives to upgrade indoor fixtures and appliances;  All water suppliers should use education and the tools available through the Save Our Water website (http://saveourwater.com); and  All water suppliers should educate and prepare their boards and councils on the drought response actions contained in the emergency regulations and in this resolution, and to make sure that drought response items are placed on agendas as early as possible; Increasing local supplies  All water suppliers should accelerate the completion of projects that will conserve potable water by making use of non-potable supplies, such as recycled water, “greywater,” and stormwater collection projects;  All water suppliers should improve their leak reporting and response programs and request that police and fire departments and other local government personnel report leaks and water waste that they encounter during their routine duties/patrols;  Smaller water suppliers – those with fewer than 3,000 service connections – should take proactive steps to secure their communities’ water supplies and educate their customers about water conservation and the status of their supply reserves;  All water suppliers should conduct water loss audits and make leak detection and repair a top priority for the duration of the drought; and  All urban water suppliers should evaluate their rate structures and begin to implement needed changes as part of planning for another dry year. Information and assistance on setting and implementing drought rates is available from the Alliance for Water Efficiency. (http://www.allianceforwaterefficiency.org/). 5 11. The State Water Board calls on all Californians to take the following additional actions:  Further reduce water demand, whether by using less water in daily routines indoors and out, retrofitting appliances and installing greywater and rainwater catchment systems; and  Check residential and business water bills to see if there are high charges that may indicate a leak and to fix the leak, if they are able, or contact their local water utility if they need assistance. 12. The State Water Board encourages its staff, the Department of Water Resources, the Public Utilities Commission, urban water suppliers, and other local agencies to look for opportunities to encourage and promote new technologies that reduce water usage, including through timely access to water usage information and behavioral response. 13. The State Water Board encourages all state and local agencies to look for additional opportunities to minimize potable water use in outdoor spaces. 14. The State Water Board encourages investor-owned utilities to expeditiously submit applications for implementation of the regulations to the California Public Utilities Commission. CERTIFICATION The undersigned Clerk to the Board does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on July 15, 2014. AYE: Chair Felicia Marcus Vice Chair Frances Spivy-Weber Board Member Steven Moore Board Member Dorene D’Adamo NAY: None ABSENT: Board Member Tam M. Doduc ABSTAIN: None Jeanine Townsend Clerk to the Board PROPOSED TEXT OF EMERGENCY REGULATIONS Article 22.5. Drought Emergency Water Conservation Sec. 863 Findings of Drought Emergency (a) The State Water Resources Control Board finds as follows: (1) On January 17, 2014, the Governor issued a proclamation of a state of emergency under the California Emergency Services Act based on drought conditions; (2) On April 25, 2014, the Governor issued a proclamation of a continued state of emergency under the California Emergency Services Act based on continued drought conditions; (3) The drought conditions that formed the basis of the Governor’s emergency proclamations continue to exist; (4) The present year is critically dry and has been immediately preceded by two or more consecutive below normal, dry, or critically dry years; and (5) The drought conditions will likely continue for the foreseeable future and additional action by both the State Water Resources Control Board and local water suppliers will likely be necessary to further promote conservation. Authority: Wat. Code, § 1058.5. References: Wat. Code, §§ 102, 104, 105. Sec. 864 Prohibited Activities in Promotion of Water Conservation (a) To promote water conservation, each of the following actions is prohibited, except where necessary to address an immediate health and safety need or to comply with a term or condition in a permit issued by a state or federal agency: (1) The application of potable water to outdoor landscapes in a manner that causes runoff such that water flows onto adjacent property, non-irrigated areas, private and public walkways, roadways, parking lots, or structures; (2) The use of a hose that dispenses potable water to wash a motor vehicle, except where the hose is fitted with a shut-off nozzle or device attached to it that causes it to cease dispensing water immediately when not in use; (3) The application of potable water to driveways and sidewalks; and (4) The use of potable water in a fountain or other decorative water feature, except where the water is part of a recirculating system. (b) The taking of any action prohibited in subdivision (a) of this section, in addition to any other applicable civil or criminal penalties, is an infraction, punishable by a fine of up to five hundred dollars ($500) for each day in which the violation occurs. Authority: Wat. Code, § 1058.5. References: Wat. Code, §§ 102, 104, 105. PROPOSED TEXT OF EMERGENCY REGULATIONS Sec. 865 Mandatory Actions by Water Suppliers (a) The term “urban water supplier,” when used in this section, refers to a supplier that meets the definition set forth in Water Code section 10617, except it does not refer to suppliers when they are functioning solely in a wholesale capacity, but does apply to suppliers when they are functioning in a retail capacity. (b)(1) To promote water conservation, each urban water supplier shall implement all requirements and actions of the stage of its water shortage contingency plan that imposes mandatory restrictions on outdoor irrigation of ornamental landscapes or turf with potable water. (2) As an alternative to subdivision (b)(1), an urban water supplier may submit a request to the Executive Director for approval of an alternate plan that includes allocation-based rate structures that satisfies the requirements of chapter 3.4 (commencing with section 370) of division 1 of the Water Code, and the Executive Director may approve such an alternate plan upon determining that the rate structure, in conjunction with other measures, achieves a level of conservation that would be superior to that achieved by implementing limitations on outdoor irrigation of ornamental landscapes or turf with potable water by the persons it serves to no more than two days per week. (c) To promote water conservation, each urban water supplier that does not have a water shortage contingency plan or has been notified by the Department of Water Resources that its water shortage contingency plan does not meet the requirements of Water Code section 10632 shall, within thirty (30) days, limit outdoor irrigation of ornamental landscapes or turf with potable water by the persons it serves to no more than two days per week or shall implement another mandatory conservation measure or measures intended to achieve a comparable reduction in water consumption by the persons it serves relative to the amount consumed in 2013. (d) In furtherance of the promotion of water conservation each urban water supplier shall prepare and submit to the State Water Resources Control Board by the 15th of each month a monitoring report on forms provided by the Board. The monitoring report shall include the amount of potable water the urban water supplier produced, including water provided by a wholesaler, in the preceding calendar month and shall compare that amount to the amount produced in the same calendar month in 2013. Beginning October 15, 2014, the monitoring report shall also estimate the gallons of water per person per day used by the residential customers it serves. In its initial monitoring report, each urban water supplier shall state the number of persons it serves. (e) To promote water conservation, each distributor of a public water supply, as defined in Water Code section 350, that is not an urban water supplier shall, within thirty (30) days, take one or more of the following actions: (1) Limit outdoor irrigation of ornamental landscapes or turf with potable water by the persons it serves to no more than two days per week; or (2) Implement another mandatory conservation measure or measures intended to achieve a comparable reduction in water consumption by the persons it serves relative to the amount consumed in 2013. Authority: Wat. Code, § 1058.5. References: Wat. Code, §§ 102, 104, 105; 350; 10617; 10632. 1 Water Shortage Response Program Attachment E 2 Drought in California Jan. 17 - Governor Brown declares State of Emergency Jan. 30 - State snow pack level dwindles to 12% of normal May 31 – Statewide precipitation was 55 percent of average July 15 - State Water Resources Control Board issues mandatory water restrictions January 18, 2013 January 18, 2014 3 State Conservation Regulation Approved by the State Water Resources Board July 15, 2014 Expected to be effective August 1, 2014 Intended to reduce outdoor urban water use Three requirements: Restrict outdoor water use Require water suppliers to activate Water Shortage Contingency Plan to a level where outdoor irrigation restrictions are mandatory Water suppliers with > 3,000 connections will have to submit a report by the 15th of each month detailing water used in the previous month 4 OWD Level 2 Supply Alert Irrigate landscape before 10am and after 6pm only Do not wash down paved surfaces Prevent water runoff or overspray Use of hose only if fitted with a positive shut-off nozzle Use of only those fountains that recirculate water Limit residential and commercial irrigation to 3 days per week, 15 minutes per watering station Properties using water efficient irrigation products are exempt 5 Water  Supply Outlook MWD does not anticipate allocations for 2014 MWD may move to allocations in 2015 SDCWA has invested heavily in diversified water supply and additional storage facilities Conservation in San Diego has become a way of life Otay water use per capita has gone down 30% from 2007 to 2014 6 Conservation Programs Leak Notification – Leak alarms from AMR meters Bill inserts & envelope messaging High usage residential customers with prior disconnects Enhanced District website – Conservation more prominent Water Waste Tracking 7 Rebates Water Smart check up – site audits Turf Replacement (rebates can be combined) MWD= $2.00/sq. ft. CWA= $1.50/sq. ft. High Efficiency Washer - $165 High Efficiency Toilets - $95 Weather Based Irrigation Controller Under 1 acre = $140 or Over 1 acre = $40/station Rotating nozzles $4/nozzle with minimum of 15 Moisture Sensors added to irrigation controller $80 Rain Barrels $75, maximum of 4 8 Recommendations Adopt Resolution No. 4239 declaring a move to Water Shortage Response Level 2 Adopt Ordinance No. 546 amending Section 39 9 Questions? STAFF REPORT TYPE MEETING: Regular Board MEETING DATE: August 6, 2014 W.O./G.F. NO: DIV. NO. ALL SUBMITTED BY: Michael Kerr, Information Technology Manager APPROVED BY: Adolfo Segura, Assistant Chief, Admin/IT Services Geoff Stevens, Chief Information Officer German Alvarez, Assistant General Manager Mark Watton, General Manager SUBJECT: REPLACEMENT OF NETWORK STORAGE EQUIPMENT AND SERVICES GENERAL MANAGER’S RECOMMENDATION: That the Board approve the issuance of a purchase order to Tegile Inc. in the amount of $155,479.60 for purchase of two (2) enterprise storage area network (SAN) devices and services. COMMITTEE ACTION: See “Attachment A”. PURPOSE: To authorize the purchase of replacement of storage devices and services. ANALYSIS: The District’s enterprise storage area network (SAN) equipment is the business critical day-to-day data storage repository for all electronic files, applications and enterprise server operating systems. Data services that are dependent of this storage equipment include Microsoft Office documents, Server Operating Systems, Eden Financial System, Geographic Information System (GIS), SQL databases, Voice/Phone System, Records and Video archives, Data Recovery and Server Virtualization Technology. The District’s current SAN equipment is over six (6) years old. Storage operation and industry best practices recommend SAN equipment upgrade/replacement and supporting hardware every three to five years. Also, given the lifecycle stage of our SAN equipment, the risk of hardware failure increases. Replacement of this equipment will continue to support and improve enterprise application performance, reliability, sustain data growth needs and leverage the District’s recent Cisco network infrastructure upgrade. Current SAN storage equipment lacks functionality and features that would make the system more efficient and reliable. Operation and functional improvements of the new SAN equipment include: performance monitoring/reporting and administration features; server operating system and virtualization interoperability; and cloning, mirroring and snapshot features. The latter mentioned features allow for point-in-time instant backup and recovery, ability to quickly create virtual operating server environments to test, validate and minimize potential issues prior to go-live or production state, preservation lifecycle or retention cycle policies, and real-time mirroring from SAN to SAN and cloud services to meet disaster recovery objectives. The requested SAN equipment will be operated and maintained by existing staff. Finally, IT staff evaluated SAN technology from the following vendors: Netapp, Dell, Compellent, Nimble, EMC and Tegile. Selection of Tegile was based on technology fit, low administration overhead, positive client references and lowest cost. The 2012 – 2014 Strategic Plan identified the need to “Improve the operating cost and efficiency of data center and network services” (3.1.2.10); in order to achieve this objective, staff conducted an extensive analysis of current and future storage requirements and developed a list of specifications. Staff solicited quotes from three (3) vendors for the required equipment and services and only received one (1) qualified quote from Tegile, Inc., in the amount of $155,479.60. The other vendors, Groupware Technology and 1903, Inc. respectively, did not meet the features that the District was seeking. In addition, Tegile, Inc.’s bid was substantially lower than the quotes offered by the competing vendors. Groupware Technology was quoted at $261,968.89 and 1903, Inc. was quoted at $262,414.00. FISCAL IMPACT: Joe Beachem, Chief Financial Officer The approved capital budget is $175,000 for FY15 for CIP P2469 Information Technology Network and Hardware. There are no current expenditures dispersed for this CIP to date, leaving an available balance of $175,000. This expenditure of $155,479.60 will leave a remaining balance of $19,520.40 in CIP P2469. The Project Manager anticipates, based on financial analysis, that the budget will be sufficient to support this project. Finance has determined that 60% of the funding is available from the Expansion Fund and 40% from the Replacement Fund. Replacing the existing SAN equipment will result in a decrease of approximately $10,000 in hardware maintenance expenses beginning in FY16. STRATEGIC GOAL: This project will, in part, achieve the strategic objective “Improve the operating cost and efficiency of data center and network services” (3.1.2.10). LEGAL IMPACT: None. ATTACHMENTS: Attachment A – Committee Action Report ATTACHMENT A SUBJECT/PROJECT: REPLACEMENT OF NETWORK STORAGE EQUIPMENT AND SERVICES COMMITTEE ACTION: The Finance, Administration and Communications Committee met on July 22, 2014 to review this item. The Committee supports presentation to the full Board for their consideration. NOTE: The “Committee Action” is written in anticipation of the Committee moving the item forward for Board approval. This report will be sent to the Board as a Committee approved item, or modified to reflect any discussion or changes as directed from the Committee prior to presentation to the full Board.