STAFF REPORT
Meeting Date: March 11, 2024
To: Honorable Mayor & City Council
From: Robert Welch, P.E., Utilities General Manager
Josette Descalzo, Environmental Compliance and Sustainability Programs Manager
Subject: Amending the Ordinance of the City of Beverly Hills Relating to the Removal of Groundwater – Dewatering Ordinance
Attachments: 1. Ordinance
INTRODUCTION
The Water Supply Ordinance in the Beverly Hills Municipal Code (BHMC 9-4-601 et seq.) authorizes the City to regulate, manage, conserve, protect and preserve the City’s water supply. The Water Supply Ordinance’s scope is based on the “basin,” which defines the City’s groundwater resources subject to the Ordinance. The Dewatering Section of the Water Supply Ordinance (BHMC 9-4-610) requires properties to either put groundwater into beneficial use or pay an in-lieu replenishment fee. Currently, properties within the single-family residential zones are exempt from the Dewatering Section (R-1 exemption).
By amending the municipal code, new and substantially remodeled properties in the single-family residential zones will be required to comply with the requirements of the of the Dewatering Section of the Water Supply Ordinance.
This proposed amendment is a study session discussion item and is also part of the consent calendar for this evening should the Council wishe to move forward to introduce the ordinance for the first reading.
BACKGROUND
The Dewatering Section (Dewatering Ordinance) of the Water Supply Ordinance (BHMC 9-4-610) was presented for amendment consideration to the Public Works Commission (the Commission) at its December 8, 2022 and April 13, 2023 meetings. The Dewatering Ordinance was brought for consideration due to the number of groundwater discharges occurring in single-family residential properties located north of Sunset Boulevard.
These discharges were observed exiting from properties at the curb and gutter and eventually entered the storm drain system. The quantity of these discharges was
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Meeting Date: March 11, 2024
unknown because they are not metered. The consideration to remove the R-1 exemption from using groundwater for beneficial use or pay a replenishment fee has the potential to promote the use of groundwater beneficially rather than wasting a resource by discharging it to the storm drain system.
At the Commission meeting on December 8, 2022, staff presented two options for the Commission to consider:
1. Alternative 1: Require a Dewatering Permit for existing properties, new construction and remodeled projects that alter more than 50% of the project site, that are managing rising groundwater (artesian groundwater) or dewatering, will be required to put groundwater discharge to beneficial use or pay an annual replenishment fee based on volume discharged to storm drain system.
2. Alternative 2: Maintain the existing R-1 exemption in the Dewatering Ordinance and only recommend that R-1 property owners install a beneficial use system to use groundwater (artesian or dewatered) beneficially.
The Commission decided to move forward with the following recommendation:
1. Apply the Dewatering Ordinance for new and substantially remodeled projects that alter more than 50% of the project site and applicable during construction dewatering.
The Dewatering Ordinance was presented to the Public Works Liaison Committee on January 25, 2024. The Committee recommended to move forward with amending the ordinance to remove the R-1 exemption for new construction and substantial remodels.
DISCUSSION
The proposed Ordinance for consideration was brought to the Public Works Commission after a large amount of discharges were observed from single-family residence (SFR) properties north of Sunset Boulevard. After staff investigation, the discharges were determined to be groundwater. Dewatering systems were installed at these properties to prevent groundwater from infiltrating building structures. Discharges are typically collected in a small sump well and pumped to the front curb and gutter of the property and not used beneficially on-site. The volume of groundwater from SFR properties cannot be estimated because these systems are not metered. Based on staff observation, the volume is large and can be used on-site for beneficial use such as irrigation.
To put groundwater into beneficial use, properties can install a system that would collect and treat groundwater from the property and use it for non-potable applications such as irrigation, cooling towers, decorative fountains and other similar applications. In order to require single-family properties to put groundwater into beneficial use, the Dewatering Section of the Water Supply Ordinance needs to be amended to remove the SFR exemption. As such, staff presented the Dewatering Ordinance during the December 8, 2022 and April 13, 2023 Public Works Commission (the Commission) meetings.
During the April 13, 2023 meeting, the Commission recommended to move forward with amending the ordinance by removing the SFR exemption by applying the Dewatering Ordinance to new construction and remodeled projects that alter more than 50% of the project site.
The recommendation came after staff presented the potential benefits of implementing a beneficial use system and also providing flexibility by requiring a replenishment fee for Meeting Date: March 11, 2024
property owners who opt-out of implementing a beneficial use system. Single-family residential properties subject to the Dewatering Ordinance will be required to obtain a dewatering permit where they will indicate if the groundwater will be used beneficially or pay a replenishment fee. As part of this process, permittees will be required to submit an annual report that includes the annual volume collected or discharged to the curb and gutter. The annual report will be used to calculate the replenishment fee. The Commission also recognized that it is easier to implement a beneficial use system when it is included in the design of a new SFR or a substantially remodeled project.
By amending the Dewatering Section of the Water Supply Ordinance, the City will be able to integrate other water efficiency requirements, such as the water efficiency landscape ordinance and water efficiency ordinance, by allowing other types of water sources, such as groundwater, to be used for irrigation or for non-potable water-use.
Staff currently forecasts that 5% of the SFR parcels may be affected by amending the Dewatering Section of the Water Supply Ordinance because of the presence of groundwater in certain areas north of Sunset Boulevard. This forecast may increase and be applicable throughout the City as basements and subterranean structures are becoming more common in SFR projects. This assumption is also based on rising groundwater becoming more common because of varying rainy seasons due to climate change.
The environmental and cost analyses for implementing a beneficial use system are summarized in Tables 1 through 3.
To contextualize the positive benefits of a beneficial use system, it is important to know that new and substantially remodeled projects are required to install an irrigation meter.
If the SFR project has groundwater on the property and the property owner chooses to use it beneficially, the City can issue a ground water use permit and exempt the property from the requirement for installation of an irrigation meter as long as no domestic meter is used to supply water for outdoor use. This requirement will be verified during the project’s plan review process and the property’s application for a Dewatering permit.
This exemption also means that property owners cannot utilize domestic meters to serve as a backup irrigation water supply for the beneficial use system. An example of a beneficial use system is comprised of perforated pipes (French drains), a centralized tank used for storage, an optional treatment system and a pump that is used to feed the water for the irrigation.
Table 1: First-Year Avoided Costs for a Beneficial Use System Item Estimated Cost
Irrigation meter installation cost $13,385 (1” meter) to $15,264 (1.5-2.0” meter)
Water Consumption Using 2023 Water
Rates
(Annual Average Irrigation Water Use of
772,000 gallons (1032 HCF) in Beverly
Hills
$12,161
Annual Replenishment Fee per acre-feet
(AF)
$1,343.45/AF (projected 5% annual
increase)
Estimated Total $26,890 to $28,768
Meeting Date: March 11, 2024
Table 2: Subsequent Years Avoided Costs for a Beneficial Use System Item Estimated Cost
Water Consumption Using Tier 2 Rates
(Projected Annual Average Irrigation Water
Use of 772,000 gallons (1032 HCF) in
Beverly Hills)
$12,161
Annual Replenishment Fee per acre-feet
(AF)
$1,343.45/AF (projected 5% annual
increase)
Estimated Total $13,504
To calculate the Return on Investment (ROI) for implementing a beneficial use system, staff used estimates to drill a dewatering well or build a collection, storage, pump and treatment system similar to stormwater capture and re-use systems. The estimates are summarized in Table 3.
Table 3: Estimated Cost for a Beneficial Use System
Item Estimated Cost
Dewatering well $3,250 per well
Collection, storage, pump and treatment system $20,000
Based on Tables 1, 2 and 3, an SFR can have an ROI within one year and have additional savings of approximately $13,500 on subsequent years from water rates and replenishment fees.
IMPLEMENTATION
If the proposed amendment is supported by the City Council, staff will assist developers and property owners to assess the feasibility of installing a beneficial use system that includes a return-on-investment analysis. The service will also look into the feasibility of installing a neighborhood beneficial use system where nearby neighbors, with their cooperation, contribute to the installation, operation and maintenance of the beneficial use system. The potential benefits of this amendment will help with the City’s water efficiency goals.
OUTREACH ACTIVITIES
Public Works Commission meetings and newspaper postings were the main forms of outreach activities. In addition, staff has been recommending single-family residential developers to install a beneficial use system if their projects encounter groundwater during their plan review process.
FISCAL IMPACT
There is no fiscal impact by amending the Dewatering Section of the Water Supply ordinance. The estimated cost for installing a beneficial use system and ROI analyses are detailed above. The implementation of this ordinance could reduce the irrigation meter and consumption-based revenues to the water fund; however, there is a larger perceived benefit to the water system of encouraging users to capture and reuse groundwater for irrigation purposes.
Meeting Date: March 11, 2024
NEXT STEPS
If City Council adopts these changes to the Dewatering Section of the Water Supply Ordinance, staff will release beneficial use system guidelines and ROI systems to assist project developers.
RECOMMENDATION
Staff recommends City Council amend the Dewatering Section of the Water Supply Ordinance by removing the R-1 (Single-Family Residential Zone) exemption for new and substantially remodeled R-1 properties and apply the dewatering requirements to those properties to use groundwater for beneficial use, or alternatively pay a replenishment fee, and find that the Ordinance is exempt from review under the California Environmental Quality Act.
Shana Epstein
Director of Public Works
Approved By
Attachment 1
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ORDINANCE NO. 24-O-______
AN ORDINANCE OF THE CITY OF BEVERLY HILLS
AMENDING THE BEVERLY HILLS MUNICIPAL CODE TO
APPLY DEWATERING PROVISIONS OF THE WATER
SUPPLY ORDINANCE TO BUILDINGS IN THE ONEFAMILY RESIDENTIAL ZONES THAT ARE NEWLY
CONSTRUCTED OR PROPERTIES THAT ARE
SUBSTANTIALLY REMODELED
THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS DOES ORDAIN AS FOLLOWS:
Section 1. Section 9-4-602 (“DEFINITIONS”) of Article 6 (“WATER SUPPLY”) of Chapter 4 (“WATER REGULATIONS”) of Title 9 (“BUILDING AND PROPERTY HEALTH AND SAFETY REGULATIONS”) of the Beverly Hills Municipal Code is amended by adding new entries for “SUBSTANTIALLY REMODELED” and “LANDSCAPED AREA” to read as follows:
“SUBSTANTIALLY REMODELED: Any project or projects that affects the removal or replacement of 50% or more of the linear length of the existing exterior walls of the building, and/or 50% or more of the linear length of the existing exterior wall plate height is raised, and/or 50% or more of the existing roof framing area is removed or replaced, and/or 50% or more of the landscaped area is removed or replaced over a 3-year period.
LANDSCAPED AREA: The total surface area dedicated to plants, turf, and water features. The landscaped area does not include footprints of buildings or structures, sidewalks, driveways, parking lots, decks, patios, gravel or stone walks, or other hardscapes.” Section 2. Section 9-4-610 (“DEWATERING”) of Article 6 (“WATER SUPPLY”) of Chapter 4 (“WATER REGULATIONS”) of Title 9 (“BUILDING AND PROPERTY HEALTH AND SAFETY REGULATIONS”) of the Beverly Hills Municipal Code is amended to read as follows:
“A. Prohibited Without A Permit: No person owning, leasing, occupying or having charge or possession of any premises in the city shall cause the dewatering of the basin or the basin drainage area, by the extraction, diversion, transportation or movement of water from, through or across the premises, unless the person has obtained prior approval from the city by applying for and obtaining a dewatering permit, in accordance with this article. This requirement applies to all dewatering, including any dewatering commenced prior to November 3, 2006.
B. Use In Lieu Of Dewatering: Unless impracticable, all persons shall place all extracted ground water to reasonable and beneficial purposes rather than causing the dewatering of the basin. For purposes of this section, "impracticable" shall mean technically infeasible or requiring the expenditure of a greater amount than the replenishment fee described in subsection I of this section, and “beneficial purposes” shall mean placing extracted ground water towards the purposes set forth in subsections C or D of this section. -2-
C. Beneficial Purposes (Non-One-Family Residential Zone Properties): For all properties except those in the R-1, R-1.X, R-1.5, R-1.5X, R-1.5X2, R-1.6X, R-1.7X, and R-1.8X zones, the beneficial purposes to which extracted ground water may be placed include:
1. Recharging the ground water to the basin;
2. Placing the ground water to reasonable and beneficial use on the property, including irrigation or other nonpotable use, subject to the permitting requirements of section 9-4-603 of this Article; or
3. Delivering the ground water to the city for treatment and use by the city, including the design, construction, operation, maintenance, repair and replacement of all facilities necessary for conveyance of the water to the city's water treatment plant, at no cost to the city.
D. Beneficial Purpose (One-Family Residential Zone Properties): For properties in the R-1, R-1.X, R-1.5, R-1.5X, R-1.5X2, R-1.6X, R-1.7X, and R-1.8X zones, the beneficial purpose to which extracted ground water may be placed is limited to non-potable water use on the property, including, without limitation, decorative fountains and irrigation systems, or delivery at the direction of the City, subject to the permitting requirements of section 9-4-603 of this Article.
E. Permit Procedures: The director of public works may issue dewatering permits in accordance with Title 4, Chapter 1, Article 1 of this code.
F. Permit Application: In addition to any other information required by section 4-1-102 of this code and any other information the director of public works may deem necessary in order to determine whether a dewatering permit should be issued, an application for a dewatering permit shall include all of the following information:
1. The applicant's name and address;
2. The location of the property on which dewatering will occur;
3. A description of the legal interest the applicant has in the property (e.g., owner, lessee, renter) and the name and address of the owner of the property if the applicant is not the owner;
4. A detailed description of the purpose or purposes for which the dewatering is proposed. Such description shall include:
a. The activity or activities that will necessitate the dewatering of the basin; b. The method by which the dewatering will be effected; c. The estimated duration of the dewatering, including beginning and ending dates; d. The estimated amount of water that will be dewatered from the basin, including the amount estimated to be dewatered daily;
e. A statement that the dewatering site is in compliance with all federal, state and local laws and regulations;
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5. A declaration that the applicant shall pay to the city the replenishment fee described in subsection I of this section.
G. Standards For Permit Issuance: The director of public works may issue a dewatering permit if it finds that the alternatives described in subsection C or D of this section in lieu of dewatering are impracticable, and the applicant has satisfied the general criteria of section 4-1- 103 of this code.
H. Permit Conditions: Any dewatering permit shall be conditioned upon:
1. The permittee's reporting the amount of ground water dewatered as required by the director of public works; and
2. Paying the replenishment fee described in subsection I of this section.
I. Replenishment Fee: In the event that placing dewatered ground water towards a beneficial purpose is impracticable, the permittee shall pay to the city an annual fee based upon the cost of replacing the dewatered ground water, as recommended by the director of public works and determined by the city council. The fee may be set based upon either direct or in lieu replenishment of the basin by the city, and may account for the treatment of water or stranded capital facilities of the city, at the discretion of the city council. The amount of dewatered ground water subject to the fee shall be measured or estimated by the permittee according to a method approved by the director of public works.
J. Exemption: Persons owning, leasing, occupying or having charge or possession of any building in the R-1, R-1.X, R-1.5, R-1.5X, R-1.5X2, R-1.6X, R-1.7X, or R-1.8X zones that have a valid national pollutant discharge elimination system (NPDES) permit are exempt from the requirements of this section, except that this subsection J shall not apply to persons owning, leasing, occupying or having charge or possession of any newly constructed building or substantially remodeled property in the R-1, R-1.X, R-1.5, R-1.5X, R-1.5X2, R-1.6X, R-1.7X, or R-1.8X zones that is deemed complete after April 18, 2024.
K. Revocation Or Suspension Of Permit: The director of public works may revoke or suspend a dewatering permit in accordance with title 4, chapter 1, article 1 of this code.
L. Outdoor Water Meter Exception: Notwithstanding section 4.304.2 of the California Green Building Standards Code, as adopted pursuant to section 9-1-1101 of this code and amended pursuant to section 9-1-1102 of this code, persons owning, leasing, occupying or having charge or possession of any newly constructed building or substantially remodeled property in the R-1, R-1.X, R-1.5, R-1.5X, R-1.5X2, R-1.6X, R-1.7X, or R-1.8X zones with an active ground water use permit issued for their property pursuant to section 9-4-603 of this Article shall not be required to have a landscape water meter installed on that property for outdoor landscape irrigation.”
Section 3. CEQA. The City Council finds that the adoption of this Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15307 (14 C.C.R. Section 15307), which applies to actions taken by regulatory agencies as authorized by local ordinance to assure the maintenance, restoration, or enhancement of a -4-
natural resource where the regulatory process involves procedures for protection of the environment. This Ordinance is intended to regulate, conserve, protect and preserve the city's water supply through expanding the applicability of dewatering regulations to protect the environment.
Section 4. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, the remainder of this Ordinance shall be and remain in full force and effect.
Section 5. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (15) days after its passage in accordance with Section 36933 of the Government Code, shall certify to the adoption of this Ordinance, and shall cause this Ordinance and this certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.
Section 6. Effective Date. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage.
Adopted:
Effective:
JULIAN A. GOLD, M.D.
Mayor of the City of
Beverly Hills, California
ATTEST:
_______________________________(SEAL)
HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
LAURENCE S. WIENER
City Attorney
NANCY HUNT-COFFEY
City Manager
SHANA E. EPSTEIN
Director of Public Works