HomeMy WebLinkAbout11 Water Shortgae Contingency Plan ImplementationrtTRUCKEE DONNER 'ITEM #11
Public Utility District
MEETING DATE: June 1, 2022
TO: Board of Directors
FROM: Chad J. Reed, Water Utility Director
SUBJECT: Consideration to Enact Level 2 of the District's Water Shortage
Contingency Plan in accordance with the Governor's Executive
Order N-7-22
APPROVED BY
Brian C. Wright, General Manager
RECOMMENDATION:
Adopt Resolution 2022-15, enacting the District's Water Shortage Contingency Plan Level 2
Water Supply Reduction, effective June 2, 2022. To prevent unreasonable use of water and
to promote water conservation, including but not limited to the prohibition of use of potable
water for the irrigation of non-functional turf at commercial, industrial, and institutional sites.
BACKGROUND:
The drought throughout the state has not changed in the past two weeks. The state is still
facing a third straight year of drought, with two especially dry years of below normal
precipitation. As staff reported during the Board of Directors meeting on May 18, 2022, the
Governor of California has issued Executive Order N-7-22. This order required the California
State Resource Control Board (SWRCB) to produce and adopt emergency drought
regulations to help reduce overall water demand across the State of California.
On May 25, 2022, the SWRCB met and adopted the SWRCB staff's proposed emergency
regulations which complied with the Governor's Executive Order N-7-22. A summary of key
provisions within the emergency regulation that the District must take action on has been
provided below:
• Each Urban water supplier shall submit to the Department of Water Resources (DWR)
a preliminary annual water supply and demand assessment consistent with section
10632.1 of the Water Code no later than June 1, 2022
• Each urban water supplier that has submitted a water shortage contingency plan to
DWR shall implement by June 10, 2022, at a minimum, the demand reduction actions
identified in the supplier's adopted water shortage contingency plan (WSCP) for a
shortage level of ten to twenty percent (Level 2)
• To prevent unreasonable use of water and to promote water conservation, the use of
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potable water is prohibited for the irrigation of non-functional turf at commercial,
industrial, and institutional sites
The District has submitted its preliminary annual water supply and demand assessment to
DWR. This report showed the District does not have a water supply shortfall. Since no shortfall
has been identified, the District is required by the SWRCB emergency regulation to implement
Level 2 of the adopted WSCP. The District's adopted WSCP includes incremental actions
leading up to the Boards declaration of a water supply shortage. Recognizing that the District
is not in a water supply shortage condition, but that the emergency drought regulation adopted
by the State Water Board requires the specific action, staff is recommending the Board adopt
resolution 2022-15, formally implementing Level 2 Water Supply Reductions and the
prohibited uses of potable water as identified in the emergency regulation.
OBJECTIVES AND GOALS:
This item is in support of the following goals and objectives:
District Code1.05.020 Objectives:
3. Provide reliable and high quality water supply and distribution system to meet current and
future needs.
Strategic Goals:
1. Responsibly serve the public.
1.1. Conduct the District's business in a legal, ethical, open, and transparent manner.
1.2. Implement a proactive public outreach program.
FISCAL IMPACT:
Monthly water customer revenues are comprised of a base charge and volumetric charge.
The annual effective revenue mix is 85% base charges and 15% volumetric charges. The
previous Level 2 event that took place in the summer of 2015 resulted in approximately 20%
lower billed water deliveries and a $210,000 decrease in revenues. The associated $130,000
decrease in pumping costs equated to a net unfavorable impact of $80,000.
Staff estimates this current Level 2 implementation to have the following range of impact on
2022 water financial results to Budget:
Revenues — Decrease in the $200,000 to $250,000 range
Costs - Decrease in the $120,000 to $150,000 range
Net Impact — unfavorable $80,000 to $100,000 range
The operating reserve balance as of December 31, 2021 was $5.2 million. The estimated
Net Impact range above will reduce operating reserve by $80,000 (1.5%) to $100,000 1.9%).
This item is an example of the intended purpose and use of the reserve balance fund, and at
less than 2% is not estimated as a material impact.
ATTACHMENTS:
1. Resolution 2022-15
2. TDPUD Water Shortage Contingency Plan 2021
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