CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: MAY 12, 2026
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: AMENDMENT OF MUNICIPAL CODE CHAPTER 10.18 (WATER
CONSERVATION AND WATER SHORTAGE CONTINGENCY
RULES AND REGULATIONS); PROPOSED 2025 WATER
SHORTAGE CONTINGENCY PLAN AND 2025 URBAN WATER
MANAGEMENT PLAN; AND RESCISSION OF PRIOR SHORTAGE
DECLARATION AND DECLARATION OF NEW WATER
SHORTAGE CATEGORY
ATTACHMENT (Y/N): YES ITEM # 19
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council take the following actions:
1. By Ordinance, repeal and replace Chapter 10.18 of the Anaheim Municipal Code to update Water Shortage response processes and water conservation requirements (Attachment 1);
2. By Resolution, adopt the proposed 2025 Water Shortage Contingency Plan (Attachment 3);
3. By Resolution, adopt the proposed 2025 Urban Water Management Plan (Attachment 4);
4. By Resolution, rescind Resolution No. 2023-065 and declare the shortage category of Conservation Awareness (Attachment 5);
5. By said Ordinance, determine that the proposed Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to California Water Code section 10652 and is otherwise exempt from CEQA pursuant to sections 15060(c)(2)- (3) and 15061(b)(3) of the CEQA Guidelines (Title 14, Division 6, Chapter 3 of the California Code of Regulations) as the Ordinance does not constitute a “project” within the meaning of CEQA Guidelines section 15378 and will not result in a direct or reasonably foreseeable indirect physical change in the environment; and
6. By said Resolutions, determine that the proposed Resolutions are not subject to CEQA pursuant to California Water Code section 10652.
DISCUSSION:
At its meeting on April 22, 2026, the Public Utilities Board (PUB) recommended that the City Council approve these actions.
201 S. Anaheim Blvd.
Suite #1101
Anaheim, CA 92805
Tel: (714) 765-5173
www.anaheim.net
Amendment of Municipal Code Chapter 10.18 (Water Conservation and Water Shortage Contingency Rules and Regulations); Proposed 2025 Water Shortage Contingency Plan and 2025 Urban Water Management Plan; and Recission of Prior Shortage Declaration and Declaration of New Water Shortage Category
May 12, 2026
Over the past 20 years, Anaheim Public Utilities (APU) customers have made significant reductions in water demand by approximately 30% through a combination of public awareness campaigns to save water, water education programs, customer rebates that promote efficient indoor and outdoor water use, and more stringent building codes. These efforts reflect the City’s ongoing commitment to responsible water management and to maintaining reliable water supplies for residents and businesses while supporting long term sustainability.
However, since California experiences periodic droughts that can last multiple years, state regulations require urban water suppliers like the City of Anaheim to develop two specific plans: the Urban Water Management Plan (UWMP) and the Water Shortage Contingency Plan (WSCP). The WSCP necessitates modifications to Anaheim Municipal Code (AMC) Chapter 10.18 - Water Conservation and Water Shortage Contingency Rules and Regulations to establish the authority and processes for implementing the updated WSCP.
URBAN WATER MANAGEMENT PLAN (UWMP)
In compliance with the California Urban Water Management Planning Act (Part 2.6 of Division 6 of the California Water Code), APU updates its UWMP every five years for submission to the Department of Water Resources (DWR). The 2025 UWMP evaluates existing and future water demands within APU’s service area and identifies available water supplies needed to meet those demands through the year 2050. Although historical water use has declined over the past 20 years, the UWMP includes conservative projections based on the anticipated number of customers, major development projects, housing units, hydrological data and related factors. The UWMP shows that by 2050, a 15% increase in overall water demand can be supported.
The 2025 UWMP also evaluated water supply reliability under three hydrologic scenarios including normal, a single dry-year, and multiple dry years (five consecutive dry years) scenarios. The results of this analysis also demonstrated that regional water supplies are sufficient to serve APU customers, but may require periodic reductions during dry years. This analysis is based on greater reliance on local groundwater supplies from the Orange County Groundwater Basin managed by the Orange County Water District (OCWD), which maximizes the use of drought-proof recycled water, reduced reliance on imported water from the Metropolitan Water District of Southern California (MWD), and mitigating water use increases through building codes and efficiency programs.
Additionally, the 2025 UWMP also outlines demand management measures to provide a comprehensive description of APU’s and its regional partners’ existing and planned water use efficiency programs to help customers reduce water consumption and support compliance with state mandated urban water use efficiency targets.
WATER SHORTAGE CONTINGENCY PLAN (WSCP)
The California Urban Water Management Planning Act also requires the City to prepare a Water Shortage Contingency Plan (WSCP) to be incorporated into the UWMP; however, the California Water Code and Department of Water Resources treat the WSCP as a standalone document. The WSCP outlines specific response actions the City will implement during periods of water shortage.
The 2025 UWMP includes the updated WSCP which provides detailed water reduction strategies and response actions for managing water supplies during times of shortage. AMC 10.18 establishes the implementation authority for the WSCP to allow APU to respond efficiently and appropriately to varying levels of water supply conditions. For context, during a multi-year drought that occurred between 2015-2017, the State Water Resources Control Board required water retail agencies to reduce Amendment of Municipal Code Chapter 10.18 (Water Conservation and Water Shortage Contingency Rules and Regulations); Proposed 2025 Water Shortage Contingency Plan and 2025 Urban Water Management Plan; and Recission of Prior Shortage Declaration and Declaration of New Water Shortage Category
May 12, 2026
their usage, and APU limited watering of outdoor irrigation resulting in approximately 3 billion gallons of water saved in approximately one year.
The updated WSCP defines six (6) Water Reduction Plans corresponding to different shortage conditions, which are now more closely aligned with the State’s standard six (6) water shortage levels (Table 1). This framework provides the City with a flexible, enforceable approach to respond to changing water conditions—from promoting awareness and voluntary conservation to implementing mandatory restrictions and emergency measures during severe shortages.
Table 1 – Water Shortage Levels and Reduction Plans
State’s Standard Shortage Levels Anaheim’s Corresponding Shortage Levels Shortage
Level
Shortage
Percent
Anaheim Shortage
Category
Anaheim Water
Reduction Plan
1 Up to 10 % Conservation Awareness Plan 1
2 Up to 20% Plan 2
3 Up to 30% Moderate Shortage Plan 3
4 Up to 40% Plan 4
5 Up to 50%
Severe to Extreme
Shortage Plan 5
6 Greater than 50% Emergency Plan 6
Table 2 illustrates the proposed water reduction plans with the primary water shortage response actions for each plan.
Table 2 – Water Reduction Plan Restrictions
Restriction Plan
1*
Plan
2 Plan
3 Plan
4 Plan
5 Plan
6 Restrict outdoor irrigation to certain
daytime hours and limit irrigation cycle
times
3 day per week irrigation
2 day per week irrigation
1 day per week irrigation
No outdoor irrigation / restrict water use to
efficient indoor use only
Restrict water use to public health and
safety purposes only
*Voluntary
MODIFICATIONS TO ANAHEIM MUNICIPAL CODE CHAPTER 10.18
The proposed amendments to AMC 10.18 provide the authority and processes necessary to efficiently declare and respond to water shortages and water shortage emergencies, and establish permanent water use requirements in furtherance of safeguarding the reliability of the City’s long-term water supply.
Amendment of Municipal Code Chapter 10.18 (Water Conservation and Water Shortage Contingency Rules and Regulations); Proposed 2025 Water Shortage Contingency Plan and 2025 Urban Water Management Plan; and Recission of Prior Shortage Declaration and Declaration of New Water Shortage Category
May 12, 2026
The non-emergency water shortage plan levels would be activated pursuant to Charter section 909, that allows the Public Utilities Board (PUB) to perform duties prescribed by ordinance or resolution of the City Council. Since the PUB reviews monthly water condition updates, it has current information on water supplies and is equipped to declare the applicable Water Shortage Category so that the Public Utilities General Manager can, pursuant to authority granted by AMC 10.18, implement the appropriate Water Reduction Plan in response.
Should an emergency be declared by the State, and if time permits, the PUB would be requested to make a recommendation to the City Council; however, only the City Council would issue an emergency declaration and the Public Utilities General Manager would then be authorized pursuant to AMC 10.18 to limit potable water use to serve public health and safety purposes.
Additionally, the amended AMC 10.18 establishes permanent water conservation measures to prevent unreasonable water use and reduce water waste that were previously voluntary measures. These include restrictions on inefficient outdoor water use, such as runoff and irrigation following rainfall, limitation on potable water used for washing hard surfaces and vehicles, requirements for recirculating systems in decorative water features and certain commercial water systems, and requirements for timely repair of leaks or malfunctions in plumbing and irrigation systems.
DECLARATION OF WATER SHORTAGE – CONSERVATION AWARENESS CATEGORY (VOLUNTARY REDUCTIONS TO OUTDOOR IRRIGATION)
Water Reduction Plan 1 has been in effect since it was ordered by the City Council on July 18, 2023 (Resolution No. 2023-065), to encourage voluntary conservation and efficient outdoor irrigation under the existing AMC 10.18 provisions. To align with the revised AMC 10.18 and the updated WSCP, it is necessary to, by resolution rescind Resolution No. 2023-065, declare a shortage level from the updated WSCP (Conservation Awareness category). Pursuant to the amended AMC 10.18 and the updated WSCP, the APU General Manager would be authorized to implement Water Reduction Plan I to ensure conservation measures are implemented under the new provisions. This will support continued promotion of voluntary conservation efforts and public awareness of water efficient practices. If approved, APU will proceed with customer outreach, including utility bill inserts, social media, various customer newsletters, student education programs, and in-person outreach events to educate the public on the ongoing need to conserve water.
PUBLIC HEARINGS
The Public Utilities Board held the public hearings on April 22, 2026, and no public comments were received.
Notice of the public hearings on the proposed amendments to AMC 10.18 along with the proposed 2025 WSCP and the proposed 2025 UWMP, was published in the Anaheim Bulletin and the Orange County Register on April 2 and April 9, 2026, and in La Opinión on April 8 and April 15, 2026. The proposed 2025 UWMP including WSCP was made available to the public for their review on April 7, 2026 at the Anaheim libraries, the City Clerk’s office, and the Anaheim West Tower office (1st floor front desk), as well as electronically on the City’s website. APU also issued notification letters to the Orange County Water District, the Municipal Water District of Orange County, MWD, the County of Orange, and the cities of Buena Park, Fullerton, Placentia and Stanton. The proposed amendments to AMC 10.18 were made available to the public for their review as a link in the Public Utilities Board Meeting Agenda for the regularly scheduled meeting on April 22, 2026.
Amendment of Municipal Code Chapter 10.18 (Water Conservation and Water Shortage Contingency Rules and Regulations); Proposed 2025 Water Shortage Contingency Plan and 2025 Urban Water Management Plan; and Recission of Prior Shortage Declaration and Declaration of New Water Shortage Category
May 12, 2026
ENVIRONMENTAL DETERMINATION:
APU recommends that City Council determine that:
a) The Resolution to adopt the Water Shortage Contingency Plan, the Resolution to adopt the Urban Water Management Plan, and the Resolution to declare a water shortage and rescind the previously adopted Resolution No. 2023-065 are not subject to the California Environmental Quality Act (CEQA) because, pursuant to California Water Code section 10652, CEQA does not apply to the preparation or adoption of the UWMP or WSCP, or to the implementation of the actions taken pursuant to WSCP; and
b) The Ordinance partially comprises Anaheim’s Water Shortage Contingency Plan and involves its implementation; and pursuant to Water Code section 10652, CEQA does not apply to the preparation and adoption of a Water Shortage Contingency Plan or to the implementation of the actions taken pursuant to such plans. The Ordinance is also exempt from CEQA pursuant to sections 15060(c)(2)-(3) and 15061(b)(3) of the CEQA Guidelines (Title 14, Division 6, Chapter 3 of the California Code of Regulations) as this Ordinance does not constitute a “project” within the meaning of CEQA Guidelines section 15378 and will not result in a direct or reasonably foreseeable indirect physical change in the environment.
IMPACT ON BUDGET:
Approval of the Ordinance will not result in any budget impacts. Sufficient funds are available to implement and administer the 2025 UWMP and WSCP in APU’s Fiscal Year 2025/26 restricted Water Utility Fund budget, and future years are subject to City Council approval of budget appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachments:
1. Ordinance repealing and replacing AMC Chapter 10.18
2. Marked version of proposed AMC Chapter 10.18 (redline)
3. Resolution adopting the 2025 WSCP
4. Resolution adopting the 2025 UWMP
5. Resolution rescinding Resolution No. 2023-065 and declaring the Conservation Awareness shortage category
6. Draft 2025 UWMP
7. Draft 2025 WSCP