HomeMy WebLinkAbout11 Water Supply or Drought Emergency Agenda Item # 11
F
ACTION
To: Board of Directors
From: Steven Poncelet
Date: September 10, 2014
Subject: Consideration of Approving Ordinance No. 2014-05 Finding the
Necessity for and Adopting a Water Conservation Program in the
Event of a Water Supply or Drought Emergency
1. WHY THIS MATTER IS BEFORE THE BOARD
This item includes proposed revisions to District Ordinance 2005-05 which is part of
the existing Urban Water Management Plan's Water Shortage Contingency Plan.
Board action is required to adopt the new District Ordinance 2014-05.
2. HISTORY
The District's Board has had multiple meetings to review and implement the California
State Water Resources Control Board's (SWRCB's) emergency drought regulations.
These regulations require that all Urban Water Suppliers implement fully the stage of
their Water Shortage Contingency Plan that first introduces restrictions to outdoor
irrigation of ornamental landscapes and turf with potable water. The District's Water
Shortage Contingency Plan, and implementing Ordinance No. 2005-05, were written
for a catastrophic failure of our water system. The State's mandate to implement
Stage 2 would create an undue hardship given that the District is not currently
experiencing a water supply shortage.
At the July 16, 2014 District Board meeting, the Board set a Public Hearing date of
September 10, 2014 to consider revisions to our Urban Water Management Plan.
Notice was given to the Town of Truckee, Nevada County, and Placer County
regarding the District's intent to update the plan.
At the August.12, 2014 special District Board meeting, action was taken to comply with
the new regulations and the General Manager was directed to implement the District's
Urban Water Management Plan, Water Shortage Contingency Plan and trigger
Ordinance No. 2005-05 Stage 2 or the Alternate Plan if approved by the California
State Water Resources Control Board.
At the August 20, 2014 District Board meeting, a workshop was help to review and
discuss proposed changes to the District's Urban Water Management Plan and
implementing District Ordinance No. 2005-05.
On September 3, 2014, the District advertised in the Sierra Sun for Public Hearings on
September 10, 2014 to receive input on the District's intent to update the District's
Urban Water Management Plan and Emergency Water Conservation Ordinance.
3. NEW INFORMATION
District staff have created a red-line and final draft revision to District's Ordinance No.
2005-05 (Attachments 1 and 2). These revision have taken into account the impacts
from the SWRCB's drought regulations, a review of other local water agency
ordinances, and feedback from the August 20, 2014 Board workshop. The revised
ordinance is now written for both a drought emergency and a catastrophic failure of
one or more components of our water system that would cause water supply
shortages. Key changes to the ordinance include:
• The stages have been modified and additional stages have been added to give
more granularity in choosing the appropriate stage;
• Restrictions have been removed that were unreasonable or would create undue
hardship;
• The procedures to appeal for hardship or address violations have been
improved; and
• The revised ordinance is more consistent with the ordinances of other local
water agencies.
District staff have created a red-line and final draft revision to the District's 2010 Urban
Water Management Plan's Section 7 (Attachments 3 and 4). The only changes to the
2010 Urban Water Management Plan would be to reflect the changes in the District's
implementing ordinance.
The final draft revision to District's Ordinance No. 2005-05 will be presented to the
Board and public in a Public Hearing at the September 10, 2014 Board meeting. If
adopted, a Public Hearing for consideration of changes to the District's Urban Water
Management Plan will be held immediately thereafter.
If adopted by the District's Board, the new District Ordinance No. 2014-05 and revised
2010 Urban Water Management Plan would take effect in 30-days, which would be
October 10, 2014. District Ordinance No. 2014-05 would replace the existing District
Ordinance No. 2005-05 and would remain in effect until rescinded by the Board. The
Urban Water Management Plan would remain in effect until the next update as
required by the state water code which would be in 2015.
4. FISCAL IMPACT
There is no direct fiscal impact associated with the revisions to District Ordinance No.
2005-05 and Section 7 of the District's Urban Water Management Plan. Fiscal impacts
from the emergency drought regulations have been presented in previous meetings
and potential impacts to District water revenue due to increased conservation remain
unknown.
5. RECOMMENDATION
Adopt District Ordinance No. 2014-05, the revised Water Supply or Drought
Emergency ordinance.
ztr/u t-
Steven Poncelet Michael D. Holley
Public Information & Conservation Manager General Manager
11-1, Attachment 1
• � I~
Ordinance No. 2014 - 05
FINDING THE NECESSITY FOR AND ADOPTING
A WATER CONSERVATION PROGRAM IN THE EVENT OF
A WATER SUPPLY OR DROUGHT EMERGENCY
WHEREAS, California Water Code Sections 375 et. seq. permit public entities which supply water at retail
to adopt and enforce a water conservation program to reduce the quantity of water used by the people
therein for the purpose of conserving the water supplies of such public entity;
WHEREAS, California Water Code Section 10632 requires an urban water supplier to describe stages of
action to be undertaken in the event of a water supply shortage;
WHEREAS,the Board of Directors of Directors of the Truckee Donner Public Utility District has determined
that it is necessary to establish a water conservation program in the event of any future water supply
shortage or drought emergency;
WHEREAS, the Board of Directors finds and determines that a water shortage could exist in the event of
major failure of one or more components of the water system or drought;
WHEREAS, the Board of Directors also finds and determines that the water sources available be put to
maximum beneficial use to the extent to which they are capable, and that the waste or unreasonable use,
or unreasonable method of use, of water be prevented and that the conservation of such water be
encouraged with a view to the maximum reasonable and beneficial use thereof in the interest of the people
of the District and for the public welfare.
NOW THEREFORE BE IT RESOLVED ENACTED by the Board of Directors of Direeter-s of the Truckee
Donner Public Utility District as follows:
1. The General Manager is hereby authorized and directed to implement the provisions of this ordinance.
Additionally,the General Manager is hereby charged with interpretation, regulation and enforcement of
the provisions of this ordinance, and authorized to make exceptions to prevent undue hardship or
unreasonable restrictions, provided that water shall not be wasted or used unreasonably and the
purpose of this ordinance can be accomplished.
2. To the extent that any of the existing and prior ordinances of the District applicable to its water system
are inconsistent herewith, all such prior water ordinances shall be deemed revoked upon this
ordinance becoming effective to the extent that they are inconsistent.
3. The provisions of this ordinance shall apply to all water served to persons,customers, and property by
the District. The District shall declare which portions of the service area are subject to a water supply
emergency and the requirements of this ordinance.
4. The provisions of this ordinance are not applicable to the uses of water which are necessary to protect
public health and safety or for essential governmental services, such as police, fire and other similar
emergency services.
1 Ordinance 2014-05
11-1, Attachment 1
5. Water Conservation Stages: No person shall knowingly use water or permit the use of water supplied
by the District for commercial, industrial, agricultural, governmental, or any other purpose in a manner
contrary to any provision of this ordinance, in an amount in excess of the amounts authorized by this
ordinance or during any period of time other than the periods of time specified in this ordinance.At no
time shall water be wasted or used unreasonably.
6. The following stages shall take effect upon declaration as herein provided:
(a) Stage 1 — Targeted 10% Reduction in Water Usage - Voluntary Compliance: Stage 1 applies
during periods that the District determines that water usage should be reduced approximately 10%
in order to meet all of the water demands of its customers. Specific mandated restrictions in water
use for Stage 1 are as follows:
1. Irrigation with potable water of ornamental landscapes and turf shall be limited to every .other day.
2. The application of potable water to driveways and sidewalks shall be prohibited unless for
driveway sealing or construction.
3. 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, shall be prohibited
(b) Stage 2 — Targeted 20% Reduction in Water Usage - Mandatory Compliance: Stage 2 applies
during periods that the District determines that water usage should be reduced approximately 20%
in order to meet all of the water demands of its customers.Specific mandated restrictions in water
use for Stage 2 are as follows:
1. Irrigation with potable water of ornamental landscapes and turf shall be limited to every other
day.
2. The application of potable water to driveways and sidewalks shall be prohibited unless for
driveway sealing or construction.
3. 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, shall be prohibited.
4. Customers may be subject to fines and penalties for failure to comply with this requirement.
(c) Stage 3 — Targeted 30% Reduction in Water Usage - Mandatory Compliance: Stage 3 applies
during periods that the District determines that water usage should be reduced approximately 30%
in order to meet all of the water demands of its customers.Specific mandated restrictions in water
use for Stage 3 are as follows:
1. Irrigation of ornamental landscapes and turf shall be limited to 3-days per week.
2. The application of potable water to driveways and sidewalks shall be prohibited.
3. 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, shall be prohibited.
4. Customers may be subject to fines and penalties for failure to comply with this requirement.
5. The District may install flow restricting devices on a customer's service.
2 Ordinance 2014-05
11-1, Attachment 1
(d) Stage 4 —Targeted 40% Reduction in Water Usage - Mandatory Compliance: Stage 4 applies
during periods that the District determines that water usage should be reduced approximately 40%
in order to meet all of the water demands of its customers. Specific mandated restrictions in water
use for Stage 4 are as follows:
1. Irrigation of ornamental landscapes and turf shall be limited to 2-days per week.
2. The application of potable water to driveways and sidewalks shall be prohibited.
3. The use of potable water to wash a motor vehicle, except where the hose is fitted with a shut-
off nozzle, shall be prohibited.
4. Any customer leak in plumbing and/or irrigation systems shall be repaired when found, but in
any case within ten (10) days of notice by the District to repair. The District may perform the
repair or hire a contractor to perform the repair,and then invoice the customer for those costs.
5. The District may install flow restricting devices on a customer's service.
6. Customers may be subject to fines and penalties for failure to comply with this requirement.
(e) Stage 5 — Targeted 50% Reduction in Water Usage - Mandatory Compliance: Stage 5 applies
during periods that the District determines that water usage should be reduced approximately 50%
in order to meet all of the water demands of its customers. Specific additional mandated
restrictions in water use for Stage 5 are as follows:
1. All outdoor water uses are prohibited in the area affected by the water conservation
requirement. The District may discontinue service to irrigation services.
2. Any customer leak in plumbing arm 1 or irr+ga systems shall be repaired when found, but in
any case within ten (10) days of notice by the District to repair. The District may perform the
repair or hire a contractor to perform the repair, and then invoice the customer for those costs.
3. The District may install flow restricting devices on a customer's service.
4. The District may implement mandatory water rationing through the use of fersed rolling
outages.
5. Customers may be subject to fines and penalties for failure to comply with this requirement.
7. Implementation of Conservation Stages.The District shall monitor the projected supply and demand
for water by its customers on a daily basis. In the event of an emergency,the General Manager shall
determine the extent of the conservation required through the implementation and/or termination of
particular conservation stages in order for the District to prudently plan for and supply water to its
customers. Thereafter, the General Manager may order that the appropriate stage of water
conservation be implemented or terminated in accordance with the applicable provision of this
ordinance. Water system customers shall be notified of water conservation stages by one or more of
the following methods:
(a) Door hanger notices delivered to the property served
(b) Mass mailing to customers and property owners
(c) Announcements in local media such as newspapers, radio and television
(d) Any other methods deemed appropriate by the General Manager
The stage designated shall become effective immediately upon announcement.The declaration of any
stage shall be reported to the Board of Directors as soon as practicable and convene a special meeting
3 Ordinance 2014-05
11-1, Attachment 1
as soon as possible. The Board of Directors shall thereupon ratify the declaration, rescind the
declaration, or direct the declaration of a different stage.
8. VIOLATIONS
In order to protect the health, safety and welfare of the community, the District shall serve any
customer found to be violating any provision of this ordinance with written notice, in accordance with
Section 11, stating the nature of the violation and providing a reasonable time limit for the satisfactory
correction. If a violation is not corrected within the time limit prescribed, the General Manager may
exercise their-his authority to disconnect the water service from the District's system based upon the
severity of the violation. Disconnect and reconnect fees shall be assessed per the District's fee
schedule.
9. REQUESTS FOR EXEMPTION OR DEVIATION
All requests for exemption or deviation from these standards shall be submitted, in writing, by the
customer to the General Manager. The customer must obtain written permission and not assume that
permission will be forthcoming for exemptions or deviations.
The General Manager may temporarily or permanently exempt customers from the provisions of this
Ordinance, or impose reasonable conditions in lieu of compliance, if the General Manager finds that
any of the following conditions exist:
9.1 Serious Economic Hardship
The requirements would cause an unnecessary and undue economic hardship upon the customer,
threatening the customer's primary source of income as an individual or a business.
9.2 Adverse Impact on Health and Safety
Strict compliance would create an emergency condition, as determined by the General Manager,
adversely affecting the health, protection or safety of the customer or the public.
10. APPEALS
Any person who is dissatisfied with any determination made under this ordinance may at any time
within 30 days after such determination make an appeal. The first appeal will be made to the General
Manager in writing. Should the applicant be dissatisfied with the decision of the General Manager, a
subsequent appeal may be made to the Board of Directors of Directors within 30 days of the General
Manager's decision.
10.1 Appeal to General Manager
Any person who is dissatisfied with any determination made under this ordinance may at any time
within 30 days after such determination, appeal to the General Manager by giving written notice to the
General Manager. The appeal shall set forth the events and circumstances leading to the appeal,the
nature of the ruling or interpretation from which relief is sought,the nature of the impact of the ruling on
the appellant's property or business, together with any other reasons for the appeal.
The General Manager shall investigate the matter appealed and shall make a written decision,which
shall be mailed to the appellant within 30 days of receipt of the appeal. If the dispute involves an
amount of charges, the appellant shall pay the amount disputed in full when the charges are due. Any
charge paid under protest will be refunded to the appellant should the General Manager determine that
the charges were wrongfully made.
10.2 Appeal to Board of Directors of Directors
Any person who is dissatisfied with any determination made by the General Manager may at any time
within 30 days after such determination, appeal to the Board of Directors of Directors by giving written
notice to the General Manager and to the Clerk of the Board of Directors of Directors. The appeal shall
set forth the events and circumstances leading to the appeal, the nature of the ruling or interpretation
from which relief is sought, the nature of the impact of the ruling on the appellant's property or
business, together with any other reasons for the appeal.
4 Ordinance 2014-05
11-1, Attachment 1
The General Manager shall transmit to the Board of Directors of Directors a report upon the matter
appealed. The Board of Directors of Directors may request that the appeal be agendized and consider
all testimony and make a decision,which shall be mailed to the appellant within 30 days of the date of
the Board of Directors action. The Board of Directors of Directors may, at any time, upon its own
motion, revise any determination made by the General Manager.
If the dispute involves an amount of charges, the appellant shall pay the amount disputed in full when
the charges are due. Any charge paid under protest will be refunded to the appellant should the Board
of Directors of Directors determine that the charges were wrongfully made.
11. NOTICE OF VIOLATION
If any person fails or refuses to comply with the provisions of this ordinance, the General Manager or
the manager's designee shall provide the person with a written notice of the violation and an
opportunity to correct the non-compliance. The written notice will:
(a) Be posted or presented at the site of the noncompliance
(b) Be mailed to the customer
(c) State the time, date and place of the violation
(d) Provide a general description of the violation
(e) State the means to correct the violation
(f) State a date by which correction is required
(g) State the possible consequences of failing to correct the violation
If the violation is not corrected to the District's satisfaction within the time frame specified,the District
may restrict the water service to the property or disconnect the service. In addition to correcting the
violation, the customer may be billed administrative fees on their account.
11.1 PROCEDURES
11.1.1 First Violation
Following adoption of this ordinance,first violations will result in a friendly reminder in the form of a
notice posted on or near the front door, personal contact with the customer, a phone call and/or a
letter advising the customer of the violation, in accordance with Section 11 a through g.
11.1.2Second Violation
For a second violation within one calendar year, the customer will be notified in writing in
accordance with Section 11 a through g. If the correction is not made within thirty(30)days of the
District's notice to the customer,the customer may be assessed a fine of$100. The fee shall be
added to the customer's water service charges at the property where the violation occurred.
11.1.3Third Violation
For a third violation within one calendar year,the customer will be notified in writing in accordance
with Section 11 a through g. The customer may be assessed a fine of$200. The fee shall be
added to the customer's water service charges at the property where the violation occurred. If not
corrected within ten (10) days of written notice, a flow-restricting device may be installed on the
customer's service connection, and the costs associated with the installation and removal will be
billed on the customer's monthly water billing.
11.1.4 Fourth Violation
For the fourth and subsequent violations within one calendar year,the customer will be notified in
writing in accordance with Section 11 a through g and the customer may be assessed a fine of
$500. The fee shall be added to the customer's water service charges at the property where the
5 Ordinance 2014-05
11-1, Attachment 1
violation occurred. In addition, a flow-restricting device may be installed on the customer's
service connection, and the costs associated with the installation and removal will be billed to the
customer.
If not corrected within ten (10) days of written notice,the District may discontinue the customer's
water service at the property where the violation occurred in accordance with District procedures.
Reconnection shall only be permitted when there is reasonable protection against future violations,
as determined by the General Manager.
11.2 ENFORCEMENT COSTS
The District may correct any violation of this ordinance and bill the customer for costs and
expenses in enforcing the provisions of this ordinance, including staff time for investigation and
monitoring for compliance, if the customer refuses to comply. Charges shall be added to the
customer's bill for the property where the enforcement costs were incurred. The District may also
take such action as may be allowed by statute.
11.3 TERMINATION OF SERVICE
Failure to correct the violation may result in termination of water service to the parcel on which the
violation occurred.
12. SEVERABILITY
If any section, paragraph, sentence, clause or phrase of this ordinance or any part thereof is for any
reason held to be invalid, such decision shall not affect the validity of the remaining portions of this
ordinance or any part thereof. The Board of Directors hereby declares that it would have passed each
section, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more
sections, paragraphs, sentences, clauses or phrases be declared invalid.
PASSED AND ADOPTED by the Board of Directors of Directors at a meeting duly called and held within
the District on the tenth day of September 2014 by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Tony Laliotis, President of the Board of Directors
ATTEST:
Michael D. Holley, Clerk of the Board of Directors
6 Ordinance 2014-05
11-2, Attachment 2
Ordinance No. 2014 - 05
FINDING THE NECESSITY FOR AND ADOPTING
A WATER CONSERVATION PROGRAM IN THE EVENT OF
A WATER SUPPLY OR DROUGHT EMERGENCY
WHEREAS, California Water Code Sections 375 et. seq. permit public entities which supply water at retail
to adopt and enforce a water conservation program to reduce the quantity of water used by the people
therein for the purpose of conserving the water supplies of such public entity;
WHEREAS, California Water Code Section 10632 requires an urban water supplier to describe stages of
action to be undertaken in the event of a water supply shortage;
WHEREAS,the Board of Directors of Directors of the Truckee Donner Public Utility District has determined
that it is necessary to establish a water conservation program in the event of any future water supply
shortage or drought emergency;
WHEREAS, the Board of Directors finds and determines that a water shortage could exist in the event of
major failure of one or more components of the water system or drought;`
WHEREAS, the Board of Directors also finds and determines that the water sources available be put to
maximum beneficial use to the extent to which they are capable, and that the waste or unreasonable use,
or unreasonable method of use, of water be prevented and that the conservation of such water be
encouraged with a view to the maximum reasonable and beneficial use thereof in the interest of the people
of the District and for the public welfare.
NOW THEREFORE BE IT ENACTED by the Board of Directors of the Truckee Donner Public Utility District
as follows:
1. The General Manager is hereby authorized and directed to implement the provisions of this ordinance.
Additionally,the General Manager is hereby charged with interpretation,regulation and enforcement of
the provisions of this ordinance, and authorized to make exceptions to prevent undue hardship or
unreasonable restrictions, provided that water shall not be wasted or used unreasonably and the
purpose of this ordinance can be accomplished.
2. To the extent that any of the existing and prior ordinances of the District applicable to its water system
are inconsistent herewith, all such prior water ordinances shall be deemed revoked upon this
ordinance becoming effective to the extent that they are inconsistent.
3. The provisions of this ordinance shall apply to all water served to persons, customers, and property by
the District. The District shall declare which portions of the service area are subject to a water supply
emergency and the requirements of this ordinance.
4. The provisions of this ordinance are not applicable to the uses of water which are necessary to protect
public health and safety or for essential governmental services, such as police,fire and other similar
emergency services.
1 Ordinance 2014-05
11-2, Attachment 2
5. Water Conservation Stages: No person shall knowingly use water or permit the use of water supplied
by the District for commercial, industrial, agricultural, governmental, or any other purpose in a manner
contrary to any provision of this ordinance, in an amount in excess of the amounts authorized by this
ordinance or during any period of time other than the periods of time specified in this ordinance.At no
time shall water be wasted or used unreasonably.
6. The following stages shall take effect upon declaration as herein provided:
(a) Stage 1 — Targeted 10% Reduction in Water Usage - Voluntary Compliance: Stage 1 applies
during periods that the District determines that water usage should be reduced approximately 10%
in order to meet all of the water demands of its customers. Specific mandated restrictions in water
use for Stage 1 are as follows:
1. Irrigation with potable water of ornamental landscapes and turf shall be limited to every .other day.
2. The application of potable water to driveways and sidewalks shall be prohibited unless for
driveway sealing or construction.
3. 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, shall be prohibited
(b) Stage 2 — Targeted 20% Reduction in Water Usage - Mandatory Compliance: Stage 2 applies
during periods that the District determines that water usage should be reduced approximately20%
in order to meet all of the water demands of its customers.Specific mandated restrictions in water
use for Stage 2 are as follows:
1. Irrigation with potable water of ornamental landscapes and turf shall be limited to every other
day.
2. The application of'potable water to driveways and sidewalks shall be prohibited unless for
driveway sealing or construction.
3. 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, shall be prohibited.
4., Customers may be subject to fines and penalties for failure to comply with this requirement.
(c) Stage 3 — Targeted 30% Reduction in Water Usage - Mandatory Compliance: Stage 3 applies
during periods that the District determines that water usage should be reduced approximately 30%
in order to meet all of the water demands of its customers. Specific mandated restrictions in water
use for Stage 3 are as follows:
1. Irrigation of ornamental landscapes and turf shall be limited to 3-days per week.
2. The application of potable water to driveways and sidewalks shall be prohibited.
3. 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, shall be prohibited.
4. Customers may be subject to fines and penalties for failure to comply with this requirement.
5. The District may install flow restricting devices on a customer's service.
2 Ordinance 2014-05
11-2, Attachment 2
(d) Stage 4 — Targeted 40% Reduction in Water Usage - Mandatory Compliance: Stage 4 applies
during periods that the District determines that water usage should be reduced approximately 40%
in order to meet all of the water demands of its customers. Specific mandated restrictions in water
use for Stage 4 are as follows:
1. Irrigation of ornamental landscapes and turf shall be limited to 2-days per week.
2. The application of potable water to driveways and sidewalks shall be prohibited.
3. The use of potable water to wash a motor vehicle, except where the hose is fitted with a shut-
off nozzle, shall be prohibited.
4. Any customer leak in plumbing and/or irrigation systems shall be repaired when found, but in
any case within ten (10) days of notice by the District to repair. The District may perform the
repair or hire a contractor to perform the repair, and then invoice the customer for those costs.
5. The District may install flow restricting devices on a'customer's service.
6. Customers may be subject to fines and penalties for failure to comply with this requirement.
(e) Stage 5 — Targeted 50% Reduction in Water Usage - Mandatory Compliance: Stage 5 applies
during periods that the District determines that water usage should be reduced approximately 50%
in order to meet all of the water demands of its customers. Specific additional mandated
restrictions in water use for Stage 5'are as follows:
1. All outdoor water uses are prohibited in the area affected by the water conservation
requirement. The District may discontinue service to irrigation services.
2. Any customer leak in plumbing system shall be repaired when found, but in any case within ten
(10) days of notice by the District to repair. The District may perform the repair or hire a
contractor to perform the repair, and then invoice the customer for those costs.
3. The District may install flow restricting devices on a customer's service.
4. The District may implement mandatory water rationing through the use of rolling outages.
5. Customers may be subject to fines and penalties for failure to comply with this requirement.
7. Implementation of Conservation Stages. The District shall monitor the projected supply and demand
for water by its customers on a daily basis. In the event of an emergency, the General Manager shall
determine the extent of the conservation required through the implementation and/or termination of
particular conservation stages in order for the District to prudently plan for and supply water to its
customers. Thereafter, the General Manager may order that the appropriate stage of water
conservation be implemented or terminated in accordance with the applicable provision of this
ordinance. Water system customers shall be notified of water conservation stages by one or more of
the following methods:
(a) Door hanger notices delivered to the property served
(b) Mass mailing to customers and property owners
(c) Announcements in local media such as newspapers, radio and television
(d) Any other methods deemed appropriate by the General Manager
The stage designated shall become effective immediately upon announcement. The declaration of any
stage shall be reported to the Board of Directors as soon as practicable and convene a special meeting
as soon as possible. The Board of Directors shall thereupon ratify the declaration, rescind the
3 Ordinance 2014-05
11-2, Attachment 2
declaration, or direct the declaration of a different stage.
8. VIOLATIONS
In order to protect the health, safety and welfare of the community, the District shall serve any
customer found to be violating any provision of this ordinance with written notice, in accordance with
Section 11, stating the nature of the violation and providing a reasonable time limit for the satisfactory
correction. If a violation is not corrected within the time limit prescribed, the General Manager may
exercise his authority to disconnect the water service from the District's system based upon the
severity of the violation. Disconnect and reconnect fees shall be assessed per the District's fee
schedule.
9. REQUESTS FOR EXEMPTION OR DEVIATION
All requests for exemption or deviation from these standards shall be submitted, in writing, by the
customer to the General Manager. The customer must obtain written permission and not assume that
permission will be forthcoming for exemptions or deviations.
The General Manager may temporarily or permanently exempt customers from the provisions of this
Ordinance, or impose reasonable conditions in lieu of compliance, if the General Manager finds that
any of the following conditions exist:
9.1 Serious Economic Hardship
The requirements would cause an unnecessary and undue economic hardship upon the customer,
threatening the customer's primary source of income as an individual or a business.
9.2 Adverse Impact on Health and Safety
Strict compliance would create an emergency condition, as determined by the General Manager,
adversely affecting the health, protection or safety of the customer or the public.
10. APPEALS
Any person who is dissatisfied with any determination made under this ordinance may at any time
within 30 days after such determination make an appeal. The first appeal will be made to the General
Manager in writing. Should the applicant be dissatisfied with the decision of the General Manager, a
subsequent appeal may be made to the Board of Directors of Directors within 30 days of the General
Manager's decision.
10.1 Appeal to General Manager
Any person who is dissatisfied with any determination made under this ordinance may at any time
within 30 days after such determination, appeal to the General Manager by giving written notice to the
General Manager. The appeal shall set forth the events and circumstances leading to the appeal,the
nature of the ruling or interpretation from which relief is sought,the nature of the impact of the ruling on
the appellant's property or business, together with any other reasons for the appeal.
The General Manager shall investigate the matter appealed and shall make a written decision,which
shall be mailed to the appellant within 30 days of receipt of the appeal. If the dispute involves an
amount of charges,the appellant shall pay the amount disputed in full when the charges are due. Any
charge paid under protest will be refunded to the appellant should the General Manager determine that
the charges were wrongfully made.
10.2 Appeal to Board of Directors of Directors
Any person who is dissatisfied with any determination made by the General Manager may at any time
within 30 days after such determination, appeal to the Board of Directors of Directors by giving written
notice to the General Manager and to the Clerk of the Board of Directors of Directors. The appeal shall
set forth the events and circumstances leading to the appeal, the nature of the ruling or interpretation
from which relief is sought, the nature of the impact of the ruling on the appellant's property or
business, together with any other reasons for the appeal.
The General Manager shall transmit to the Board of Directors of Directors a report upon the matter
4 Ordinance 2014-05
11-2, Attachment 2
appealed. The Board of Directors of Directors may request that the appeal be agendized and consider
all testimony and make a decision,which shall be mailed to the appellant within 30 days of the date of
the Board of Directors action. The Board of Directors of Directors may, at any time, upon its own
motion, revise any determination made by the General Manager.
If the dispute involves an amount of charges, the appellant shall pay the amount disputed in full when
the charges are due. Any charge paid under protest will be refunded to the appellant should the Board
of Directors of Directors determine that the charges were wrongfully made.
11. NOTICE OF VIOLATION
If any person fails or refuses to comply with the provisions of this ordinance, the General Manager or
the manager's designee shall provide the person with a written notice of the violation and an
opportunity to correct the non-compliance. The written notice will:
(a) Be posted or presented at the site of the noncompliance
(b) Be mailed to the customer
(c) State the time, date and place of the violation
(d) Provide a general description of the violation
(e) State the means to correct the violation
(f) State a date by which correction is required
(g) State the possible consequences of failing to correct the violation
If the violation is not corrected to the District's satisfaction within the time frame specified, the District
may restrict the water service to the property or disconnect the service. In addition to correcting the
violation, the customer may be billed administrative fees on their account.
11.1 PROCEDURES
11.1.1 First Violation
Following adoption of this ordinance,first violations will result in a friendly reminder in the form of a
notice posted on or near the front door, personal contact with the customer, a phone call and/or a
letter advising the customer of the violation, in accordance with Section 11 a through g.
11.1.2Second Violation
For a second violation within one calendar year, the customer will be notified in writing in
accordance with Section 11 a through g. If the correction is not made within thirty(30)days of the
District's notice to the customer, the customer may be assessed a fine of$100. The fee shall be
added to the customer's water service charges at the property where the violation occurred.
11.1.3Third Violation
For a third violation within one calendar year,the customer will be notified in writing in accordance
with Section 11 a through g. The customer may be assessed a fine of$200. The fee shall be
added to the customer's water service charges at the property where the violation occurred. If not
corrected within ten (10) days of written notice, a flow-restricting device may be installed on the
customer's service connection, and the costs associated with the installation and removal will be
billed on the customer's monthly water billing.
11.1.4 Fourth Violation
For the fourth and subsequent violations within one calendar year, the customer will be notified in
writing in accordance with Section 11 a through g and the customer may be assessed a fine of
$500. The fee shall be added to the customer's water service charges at the property where the
violation occurred. In addition, a flow-restricting device may be installed on the customer's
5 Ordinance 2014-05
11-2, Attachment 2
service connection, and the costs associated with the installation and removal will be billed to the
customer.
If not corrected within ten (10)days of written notice, the District may discontinue the customer's
water service at the property where the violation occurred in accordance with District procedures.
Reconnection shall only be permitted when there is reasonable protection against future violations,
as determined by the General Manager.
11.2 ENFORCEMENT COSTS
The District may correct any violation of this ordinance and bill the customer for costs and
expenses in enforcing the provisions of this ordinance, including staff time for investigation and
monitoring for compliance, if the customer refuses to comply.. Charges shall be added to the
customer's bill for the property where the enforcement costs were incurred. The District may also
take such action as may be allowed by statute.
11.3 TERMINATION OF SERVICE
Failure to correct the violation may result in termination of water service to the parcel on which the
violation occurred.
12. SEVERABILITY
If any section, paragraph, sentence, clause or phrase of this ordinance or any part thereof is for any
reason held to be invalid, such decision shall not affect the validity of the remaining portions of this
ordinance or any part thereof. The Board of Directors hereby,declares that it would have passed each
section, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more
sections, paragraphs, sentences, clauses or phrases be declared invalid.
PASSED AND ADOPTED by the Board of Directors of Directors at a meeting duly called and held within
the District on the tenth day of September 2014 by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Tony Laliotis, President of the Board of Directors
ATTEST:
Michael D. Holley, Clerk of the Board of Directors
6 Ordinance 2014-05
11-3, Attachment 3
SECTION 7
WATER SHORTAGE CONTINGENCY PLAN
Law
10632. The plan shall provide an urban water shortage contingency analysis which
includes each of the following elements which are within the authority of the
urban water supplier:
(a) Stages of action to be undertaken by the urban water supplier in response
to water supply shortages, including up to a 50 percent reduction in water
supply, and an outline of specific water supply,conditions which are
applicable to each stage.
4
(b) An estimate of the minimum water supplyvailabl�Yduring each of the next
three water years based on the driest;three year historp sequence for the
agency's water supply. 11"`
(c) Actions to be undertaken by t �e u{rban waterlsupplier to prepare for, and
implement during, a catastrophic,,j rrupt,Ior ��,of water supplies including,
but not limited to, a regional power bU" gii earthquake, or other disaster.
(d) Additional, mandatoryj,rprohIbitions again t,,,specific water use practices
during water shortages,'yi'Pclu'di g, b,ut not'lirnited to, prohibiting the use of
potable water for street crooning
q �t� t
(e) Consur> "t3�or� red 116tion meth6 s 1n the mosVrestrictive stages. Each urban
watersdpplier may Ose any"," pe of consumption reduction methods in its
watel��iortage contingency analysis that would reduce water use, are
apprdo late for Jts� 'area;, and have the ability to achieve a water use
reductioh';anSisteh��niith 0 to,a,;50 percent reduction in water supply.
�A
� ' ( Penalties or charges for excessive use, where applicable.
(g) An analysis,�. f the Impacts of each of the actions and conditions described
in subdivisi&ts (a) to (f), inclusive, on the revenues and expenditures of the
water,., tier, and proposed measures to overcome those impacts,
�sifgb as the development of reserves and rate adjustments.
AIL
t 3 i
(h) A dra{ttwater shortage contingency resolution or ordinance.
Jar'
(i) A mechanism for determining actual reductions in water use pursuant to the
urban water shortage contingency analysis.
The effective management of water supply shortages is an important responsibility of
water agencies. Shortages may be caused by failures of major water supply facilities,
natural disasters, or other adverse conditions. Therefore, it is necessary to have an
effective management program to mitigate water supply shortages.
Page 7-1
11-3, Attachment 3
Section 7—Water Shortage Contingency Plan
As described in Section 5, the District is using groundwater as its sole source of supply.
The Martis Valley Groundwater Basin has a storage volume of about 484,000 acre-feet
(AF) and is able support annual withdrawals of at least 24,000 acre-feet per year (AFY)
Based upon current withdrawals of about 7,175 AFY, there is over 65 years worth of water
supply available even if there was zero recharge of the groundwater basin. A three year
minimum supply of 24,000 AFY has been assumed.
The most likely cause of a water supply shortage would be the failure of a major water
supply facility such as a well, pump station or transmission pipellti'e. Such an occurrence
could be caused by a number of factors including earthquake, fire or major equipment
failure. As a result, water supply shortages are expected tb,fesomewhat short in duration
(days or possibly weeks), but may occur without any wai;�ing. Tf�e Qistrict's water system
consists of five major components: control valve stations, groundWMer wells, pipelines,
pump stations and storage tanks. In May 2004, the'District completed,a Vulnerability
Assessment that identified the number of customers that would be imacted by major
failure of a given facility. In conjunction with`ttii~; Vulnerability AssessmeO' ',ahe District
periodically updates its Emergency Response Plan which l entifies actions to be taken in
the event of a major failure of a given facility.
Historically, the water supply systemth�as ,,peen most Ipacted by power outages. In
response, the District has installed ezternalgenerator con
p nections and manual transfer
switches at all of its pump stations an`d vuell sites }}+' The Distr(d, currently owns two large
1; + �I ���j f
trailer-mounted portable �ge�te�ators tha ,, 7�, 17e, " ob Ike d 3to any of the Districts pump
facilities in the event of a1'po e�;outage. I�r"" ition, the District has installed permanently-
mounted diesel pouf&'d backu g;gnerato'r°s t 17 pump station sites. These generators
are equipped with automatic transfer switches,and will activate in the event of a power
outage.
WATER,,, O�ySEF1(�4TIb}IN PROGRAM
Dependit g upon th0 type of
-,v� ,4 ,, M N Via. location and the number
of customers affected,'il, yiould'6a necessary for the District to implement some form of
'' or mandatory. Table 7-1 identifies the various
water c�►�servation either vol ry•
stages of"'water conservauoh measures that would be implemented.
T"ble 7-1. Water Conservation Stage
Sta e'' ,,;WateConservation Requirement Compliance Level
10% Reduction in Usage Voluntary
�.r ) 30% Reduction in Usage Mandatory
11+;iFOti !I
50% Reduction in Usage Mandatory
Page 7-2
11 -3, Attachment 3
Section 7 — Water Shortage Contingency Plan
Stage 1 Water Conservation
Stage 1 would apply during periods where up to 10 percent of the water supply is
unavailable. A corresponding reduction in water usage of 10 percent would be required .
This would be achieved through voluntary measures ,-,.4e
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Page 7-3
11 -3, Attachment 3
Section 7 — Water Shortage Contingency Plan
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Page 7-4
11-3, Attachment 3
Section 7—Water Shortage Contingency Plan
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Effectiveness of the Water Conservation Program s
The District currently monitors total production fort,'ell sources o ,"4, daily basis. This
monitoring would be the primary tool to gauge thidleffectiveness of the Water conservation
program. Total water production would be compared with production #o :fhe same time
in prior years and with days prior to implerrientation of thelWater conser anon program.
Other measures would likely include drive-by inspections of'customers to verify irrigation
practices and monitoring of customer usage throu'g;hi the.,bistrict's AMR system.
WATER CONSERVATION ORDINANCE ' + 1,
In �= )) :il»�� e `'� �'�, 'th�,Distrlct,a�opted Ordinance �r�°, 'i� i�.-05 which
�, �3„
describes the water conservation program tobe,j Jr ,phemer�,e' in the event of a water
supply €€_�1 4 =�)� Cdh,, emergency )A copy of tf�e ordinance is given in Appendix D.
The ordinance outline of'i�,Oater alerts that describe different required
conservation efforts;,,,These conservation sayings range from voluntary compliance with
9 9 rY p
reasonable conservat,or,reffors 1ja�Stage,1 to'a� mandatory 50 percent reduction in Stage
The ordinance auth�tirizpc��.the'Gdifio al�__,ahager of the District to implement these
s, . );���I
measures,, immediately upon,v occurrence of an event requiring such conservation
measLf(0$ A public.4 eting lb f.the Board of Directors would then be scheduled as soon
a possI,ple to inform tfie;Roard,�;hd,the public of the emergency, the actions taken by the
Distriot�; nd the expected,'l�uration' a ntil the problem could be corrected.
POTENTIAL FINANCI CTS
In 2009, the",Qjstrict ret n`ed HDR to perform a water rate study and assist in the
development of the;D�s#r' f's new metered rate structure. This new rate structure became
effective in Januaryl,o'f12010. One of the major objectives in developing this new rate
structure was to closely match the District's variable revenue stream with its variable
expenses and to match its fixed revenue stream with its fixed expenses. Currently, about
85 percent of the Water Department's expenses are fixed and do not vary with the amount
of water sold to customers. The remaining 15 percent of expenses is for the costs of
pumping and treatment and will vary with customer usage.
In the event that a Stage conservation requirement (50 percent reduction in water
usage) was imposed for a significant length of time ( l"._ number of months), the District
Page 7-5
11-3, Attachment 3
Section 7—Water Shortage Contingency Plan
would expect to see a revenue reduction of about 7.5 percent. However, there should be
a corresponding reduction in expenses associated with less water being treated and
pumped to customers. Any remaining differences between revenue and expenses would
likely be covered through the use of reserves. The District would then have to evaluate
its overall financial situation during the next annual budget cycle. At that time, the District
would review whether rate adjustments were necessary to ensure the financial stability of
the Water Department.
The District does not expect any significant impact on expenditures associated with a
drought-related water shortage. In the event of a major water'`supply facility failure,
unforeseen expenses can be expected. District staff and/or outside contractors may be
required to work overtime and weekends to repair the dam'aged Rfacility, install a temporary
facility or adjust system operations in order to maintain vvciter service to District
customers. Similar to a drought-related water shortage,�it is expect6d�ahat the immediate
cost impacts would be covered through the use of reserve funds. The District would then
review its financial situation once the facility has, ben repaired.
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Page 7-6
11-4, Attachment 4
SECTION 7
WATER SHORTAGE CONTINGENCY PLAN
Law
10632. The plan shall provide an urban water shortage contingency analysis which includes
each of the following elements which are within the, authority of the urban water
supplier:
(a) Stages of action to be undertaken by the urban water supplier in response to
water supply shortages, including up to a 50 percent reduction in water supply,
and an outline of specific water supply conditions which are applicable to each
stage.
(b) An estimate of the minimum water supply available during each of the next three
water years based on the driest three year historic sequence for the agency's
water supply.
(c) Actions to be undertaken by the urban water supplier to ;prepare for, and
implement during, a catastrophic interruption of water supplies including, but not
limited to, a regional power outage, anfearthquake, or other disaster.
(d) Additional, mandatory prohibitions against specific water use practices during
water shortages, including;but`not_limited to',prohibiting the use of potable water
for street cleaning.
i
(e) Consumption,reduction methods in the most restrictive stages. Each urban water
supplier may use any type 11of consumption -reduction methods in its water
shortage contingency:analysis tha# would reduce water use, are appropriate for
its area, and have the ability to achieve a water use reduction consistent with up
to a 50 percent reduction in-water supply.
(f) Penaltjes,,or c'harges for excessive use, where applicable.
(g) An analysis of the impacts of each of the actions and conditions described in
subdivisions (alto (f); inclusive, on the revenues and expenditures of the urban
,Water supplier,46d proposed measures to overcome those impacts, such as the
development of reserves and rate adjustments.
(h) A draft,water,shortage contingency resolution or ordinance.
(i) A mechanism for determining actual reductions in water use pursuant to the
urban water shortage contingency analysis.
The effective management of water supply shortages is an important responsibility of water
agencies. Shortages may be caused by failures of major water supply facilities, natural
disasters, or other adverse conditions. Therefore, it is necessary to have an effective
management program to mitigate water supply shortages.
Page 7-1
11-4, Attachment 4
Section 7—Water Shortage Contingency Plan
As described in Section 5, the District is using groundwater as its sole source of supply. The
Martis Valley Groundwater Basin has a storage volume of about 484,000 acre-feet (AF) and is
able support annual withdrawals of at least 24,000 acre-feet per year (AFY) Based upon
current withdrawals of about 7,175 AFY, there is over 65 years'worth of water supply available
even if there was zero recharge of the groundwater basin. A three year minimum supply of
24,000 AFY has been assumed.
The most likely cause of a water supply shortage would be the failure of a major water supply
facility such as a well, pump station or transmission pipeline. Such an occurrence could be
caused by a number of factors including earthquake, fire or major equipment failure. As a
result, water supply shortages are expected to be somewhat short in duration (days or possibly
weeks), but may occur without any warning. The District's wate"(system consists of five major
components: control valve stations, groundwater wells, pipefines ..pump stations and storage
tanks. In May 2004, the District completed a Vulnerability Assessment that identified the
number of customers that would be impacted by major.fai,ldfe of a given facility. In conjunction
with the Vulnerability Assessment, the District periodically updates its Emergency Response
Plan which identifies actions to be taken in the event of a major failure of a given facility.
Historically, the water supply system has been most impacted'by power outages." In response,
the District has installed external generator connections and.-,manual transfer switches at all of
its pump stations and well sites. The District currently Own s'two large trailer-mounted portable
generators that can be mobilized to any)6f the District's"`puinp facilities in the event of a power
outage. In addition, the District has installed permanently mounted diesel-powered backup
generators at 17 pump station sites. These generators are equipped with automatic transfer
switches and will activate in the event of a:power outage,
WATER CONSERVATION'PROGRAM
Depending upon the type,of water supply restriction, its location and the number of customers
affected, it would be necessary for the District to implement some form of water conservation
— either voluntary or mandatory. Table'?-1 identifies the various stages of water conservation
measures that would.be implemented.
Table 7:1. Water Conservation Stages
Stage Water Conse'Nation Requirement Compliance Level
1 Targeted 10% Reduction in Usage Voluntary
.2 Targeted 20% Reduction in Usage Mandatory
3 , Targeted 30% Reduction in Usage Mandatory
4; :T Targeted 40% Reduction in Usage Mandatory
5 Targeted 50% Reduction in Usage Mandatory
Page 7-2
11-4, Attachment 4
Section 7—Water Shortage Contingency Plan
Stage 1 Water Conservation
Stage 1 would apply during periods where up to 10 percent of the water supply is unavailable.
A corresponding reduction in water usage of 10 percent would be required. This would be
achieved through voluntary measures such as:
• Irrigation with potable water of ornamental landscapes and turf would be limited to every
other day
• The application of potable water to driveways and sidewalks would be prohibited unless
for driveway sealing or construction
• 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, would be prohibited-..
Stage 2 Water Conservation
Stage 2 would apply during periods where up to 20 percent oft he water supply is unavailable.
A corresponding reduction in water usage of 20 percent would be required.' Compliance with
water conservation requirements is mandatory for Stage 2 and above. Water. conservation
measures in Stage 2 include:
• Irrigation with potable water of ornamental landscapes and turf would be limited to every
other day
• The application of potable water to driveways and sidewalks would be prohibited unless
for driveway sealing or construction
• 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, would be prohibited
• Customers may be;aubj6dt' to fines and"penalties for failure to comply with these
requirements
Stage 3W6ter Conservation
Stage 3 would apply during peeriods where up to 30 percent of the water supply is unavailable.
A corresponding reduction in water usage of 30 percent would be required. Compliance is
mandatory. Water conservation measures in Stage 3 include:
• Irrigation of ornamental landscapes and turf would be limited to 3-days per week
• The application of potable water to driveways and sidewalks would be prohibited
• 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, would be prohibited
• The District may install flow restricting devices on a customer's service
• Customers may be subject to fines and penalties for failure to comply with these
requirements
Page 7-3
11-4, Attachment 4
Section 7—Water Shortage Contingency Plan
Stage 4 Water Conservation
Stage 4 would apply during periods where up to 40 percent of the water supply is unavailable.
A corresponding reduction in water usage of 40 percent would be required. Compliance is
mandatory. Water conservation measures in Stage 4 include:
• Irrigation of ornamental landscapes and turf would be limited to 2-days per week.
• The application of potable water to driveways and sidewalks would be prohibited.
• The use of potable water to wash a motor vehicle, except Where the hose is fitted with
a shut-off nozzle, would be prohibited.
• Any customer leak in plumbing and/or irrigation systems would be repaired when found,
but in any case within ten (10) days of notice by the District to repair. The District may
perform the repair or hire a contractor to perform the repair, and then invoice the
customer for those costs.
• The District may install flow restricting device's,on a customer's service.-,, ,
• Customers may be subject to fines and penalties for failure to comply with this
requirement
Stage 5 Water Conservation
Stage 5 would apply during periods where up,to 50 percentof the water supply is unavailable.
A corresponding reduction=in water-.usage 4,,6 .percent would be required. Compliance is
mandatory. Water conservation measures in-,Stage 5 include:
• All outdoor water uses would be prohibited iOhe area affected by the water conservation
requirement. The District may discontinue`service to irrigation services.
• Any customer leak in plumbng system would be repaired when found, but in any case
within ten (10) days of,,notid by the District to repair. The District may perform the repair
or-Dire a contractor to perforrn the repair, and then invoice the customer for those costs.
• The District may install flow restricting devices on a customer's service.
• The Districf�may implement mandatory water rationing through the use of rolling
outages.
• Customers may be subject to fines and penalties for failure to comply with this
requirement.
Effectiveness of the Water Conservation Program
The District currently monitors total production for all sources on a daily basis. This monitoring
would be the primary tool to gauge the effectiveness of the water conservation program. Total
water production would be compared with production for the same time in prior years and with
days prior to implementation of the water conservation program. Other measures would likely
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11-4, Attachment 4
Section 7—Water Shortage Contingency Plan
include drive-by inspections of customers to verify irrigation practices and monitoring of
customer usage through the District's AMR system.
WATER CONSERVATION ORDINANCE
In September 2014, the District adopted Ordinance 2014-05 which describes the water
conservation program to be implemented in the event of a water supply or drought emergency.
A copy of the ordinance is given in Appendix D.
The ordinance outlines five stages of water alerts that describe different required conservation
efforts. These conservation savings range from voluntary compliance with reasonable
conservation efforts in Stage 1 to a mandatory 50 percent reduction in Stage 5. The ordinance
authorizes the General Manager of the District to implement these;measures immediately upon
occurrence of an event requiring such conservation measures.;�Apublic meeting of the Board
of Directors would then be scheduled as soon a possible to inform the Board and the public of
the emergency, the actions taken by the District and.the expected duration until the problem
could be corrected.
POTENTIAL FINANCIAL IMPACTS
In 2009, the District retained HDR to perform a water rate study'and assist in thee'development
of the District's new metered rate structure. This 'new' rate structure became effective in
January of 2010. One of the major objectives in developing this new rate structure was to
closely match the District's variable revenue stream with its=variable expenses and to match its
fixed revenue stream with its fixed expenses: Currently, about 85 percent of the Water
Department's expenses are fixed and do n'ot vary with the amount of water sold to customers.
The remaining 15 percent of expenses is fot'�the costs of pumping and treatment and will vary
with customer usage.
Ai
In the event that a Stage 5 conservation requirement (50 percent reduction in water usage)
was imposed for a significant length of time (a number of months), the District would expect to
see a revenue reduction U abou# 7.5 percent 'However, there should be a corresponding
reduction in expenses„associated with less water being treated and pumped to customers. Any
remaining:differences'between revenue and expenses would likely be covered through the use
of reserves:- The Distdd yvould then have to evaluate its overall financial situation during the
next annual.budget cycle. At that time;�'the District would review whether rate adjustments were
necessary:to ensure the financial stability of the Water Department.
r ,
The District does not expectany significant impact on expenditures associated with a drought-
related water shortage. _-in ,fhe event of a major water supply facility failure, unforeseen
expenses can be expected: 'District staff and/or outside contractors may be required to work
overtime and weekends.fo repair the damaged facility, install a temporary facility or adjust
system operations in order to maintain water service to District customers. Similar to a drought-
related water shortage, it is expected that the immediate cost impacts would be covered
through the use of reserve funds. The District would then review its financial situation once the
facility has been repaired.
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