1. Proposed Water Neutrality Ordinance
May 9, 2017

2. 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.

3. 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

4. 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

5. 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.

6. 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

7. Compliance – Onsite Offsets1
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

8. 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

9. 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

10. 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.

11. 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)

12. 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)

13. 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

14. 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.

15. 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

16. Recommendation
Adopt for the first reading the water neutrality ordinance 

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

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