Proposed Water Neutrality Ordinance May 9, 2017

Water Self-Sufficiency The City has a goal to stop importing water and be water self-sufficient by 2020 through water conservation and diversified water supplies. The proposed water neutrality ordinance is one strategy to help achieve water self-sufficiency.

Council Direction November 24, 2015 Council directed staff to develop an ordinance that would: 1) Cap the water use of new developments to that of the existing parcel 2) Provide an in-lieu fee option if compliance cannot be met 3) Provide a credit for affordable housing 4) Replace the water demand mitigation ordinance

Stakeholder Committee The Water Neutrality Stakeholder Committee developed this ordinance through a majority consensus process. Members include: City staff Water agencies Cities and LA County Non-governmental organizations Sustainability consultants Architects Developers Manufacturers Engineers Plumbers

Water Neutrality New developments cannot use more water than the existing parcel. If they cannot comply, the additional water must be offset somewhere else in the city. The baseline is the 5-year average water use for the existing property. Parcels with no water use will get the 5-average for the customer class and meter size. 5-years provides usage that may show changes in tenancy, occupancy.

Applicability New developments (new buildings with plumbing fixtures and existing buildings with plumbing fixtures where 50% or more of the exterior wall or principal structural supports are demolished) and new or enlarged pools, spas, water features, ponds

Compliance – Onsite Offsets 1 Design assistance for devices and systems 2 Design for maximum water-efficiency 3 Calculate water use 4 Approve if projected use does not exceed existing use

Alternative – Off Site Offset When compliance cannot be met on site, the additional water use can be offset somewhere else in the city. Offsets are1:1 or 0.5:1 for 100% affordable housing units

Alternative – Off Site Offset Retrofit water saving devices in existing properties Fees Admin fee In-lieu fee Approve if fees paid or developer retrofit verified

Offset Fees Fees are dependent on costs to implement the ordinance Fees are not refundable Fees maybe used by means set by City to conserve water Administration Fee = $2,000 per project; paid at permit issuance. In-lieu Fee = costs to retrofit toilets, showerheads, faucet aerators; pay 50% deposit at building permit issuance and pay balance as a condition of Certificate of Occupancy (COO) or Temporary Certificate of Occupancy (TCO), whichever comes first.

In-lieu Offset Example: Direct Install Single-Family Home: Offset Requirement = 50,000 gallons per year Example = 21 fixtures to be installed Admin Fee: $2,000 In-lieu Fee: $3,243 Total: $5,243 ($0.10/gal saved)

In-lieu Offset Example: Direct Install Mixed Use Development with 60 units: Offset Requirement = 722,553 gallons per year Example = 301 fixtures to be installed Admin Fee: $2,000 In-lieu Fee: $43,983 Total: $45,983 ($0.06/gal. saved)

Developer Offset Retrofits The developer may choose to install the same or different fixtures than the City retrofit program. Determine types of devices to install Projected water savings Find the sites for retrofits Cover all costs including permit (~$190 sf or $390 for each mf unit) Verification by City (inspection as part of permit) Pay $2,000 admin fee

Costs 5-Year Totals Revenue $2,647,728 Expenditures $2,272,123 Not Recovered $557,979 Revenue from fees – plan check, inspections, administration fee, in-lieu fees. Expenditures – admin and retrofits Not Recovered – initial start up costs for the program that can’t be legally recovered.

Timeline May 2017 Jul 2017 July 2017-Feb 2018 March 2018 Update to Water Shortage Response Plan Council Mtg: Vendor Contract, Database Contract, Fees Develop Program Outreach and Education Rescind Water Demand Mitigation March 2018 Full ordinance implementation begins

Recommendation Adopt for the first reading the water neutrality ordinance 

In-lieu Offset Example Single-Family Home: Offset Requirement = 50,000 gallons per year

In-lieu Offset Example Mixed-Use: Offset Requirement = 722,553 gallons per year