AGENDA REPORT
Meeting Date: March 11, 2024
Item Number:
To: Honorable Mayor & City Council
From: Robert Welch, P.E., Utilities General Manager
Josette Descalzo, Environmental Compliance and Sustainability Programs Manager
Subject: 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 ONE-FAMILY RESIDENTIAL ZONES THAT ARE
NEWLY CONSTRUCTED OR PROPERTIES THAT ARE
SUBSTANTIALLY REMODELED
Attachments: 1. Ordinance
RECOMMENDATION
Staff recommends that City Council waive the full reading of the Ordinance and that the Ordinance entitled “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 One-Family Residential Zones That Are Newly Constructed or Properties That Are Substantially Remodeled” be introduced for first reading and that City Council find the Ordinance exempt from review under the California Environmental Quality Act.
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).
Meeting Date: March 11, 2024
By amending the municipal code, new and substantially remodeled properties in the singlefamily residential zones will be required to comply with the requirements of the Water Supply Ordinance.
BACKGROUND
The Water Supply Ordinance in the Beverly Hills Municipal Code (BHMC section 9-4-601 et seq.) authorizes the City to regulate, manage, conserve, protect and preserve the City’s water supply in such a manner that it remains a viable resource and be put to the most efficient and beneficial use by the City and its residents. As such, Chapter 4, Article 610 (BHMC section 9-4-610) of Title 9 of the BHMC, provides the requirements relating to the removal of groundwater (dewatering) and furthering the management of groundwater within the City.
BHMC section 9-4-610 (Dewatering Ordinance) establishes a permitting process and options for dewatering properties. This section currently provides management options to existing and future dewaterers within the City. These options include:
Replenish the groundwater basin. The dewaterer will have to adhere to all state and federal laws to implement groundwater replenishment. Put the water to reasonable and beneficial use on the property. A permit and an annual consumption and usage report will be required for any dewaterer that uses its groundwater for beneficial use.
Deliver the groundwater to the City. An agreement will be established between the dewaterer and the City under this option.
If the first three options are impracticable, obtain a permit and pay a replenishment fee.
The replenishment fee is based upon the cost of replacing the dewatered groundwater.
The fee may be set based upon either the 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.
The intent of the fee is to recover these costs, not to provide added revenue to the City.
Replenishment fee funds are deposited in the Water Enterprise Fund, which is used solely to provide a reliable water supply of high-quality water in Beverly Hills and portions of West Hollywood.
Currently, the dewatering provisions of the Water Supply Ordinance apply to all properties except for properties that are within single-family residential zones. The proposed Ordinance will remove the exemption for newly constructed buildings or substantially remodeled properties in single-family residential zones and apply the reasonable and beneficial use requirements on those properties or require payment of a replenishment fee if beneficial use is impracticable.
DISCUSSION
The proposed Ordinance for consideration is due to the large amount of discharge observed from single-family residential (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 Meeting Date: March 11, 2024
metered. Based on staff observation, the volume is large and can be used on-site for beneficial use such as irrigation, cooling towers, decorative fountains or other similar applications.
For single-family residents to put groundwater into beneficial use, the Water Supply Ordinance needs to be amended to remove the SFR exemption for new and substantially remodeled SFR projects that alter more than 50% of the project site. SFR projects that encounter groundwater will be required to obtain a Dewatering permit where the property owner selects to install a groundwater beneficial use system or pay a replenishment fee.
The dewatering permit will also require the property owner to submit an annual report that includes the annual volume captured or discharged to the curb and gutter. The replenishment fee will be calculated using the annual report data. The proposed amendment supports water conservation, sustainability practices and potential water costsavings for SFR properties by applying the dewatering provisions of the Water Supply Ordinance to SFR properties with newly constructed buildings or substantially remodeled properties.
Staff currently forecasts that 5% of the SFR parcels may be affected by amending the Water Supply Ordinance. These parcels are located north of Sunset Boulevard where staff have observed dewatering activities. 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 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 for outdoor use. If the SFR project has groundwater on the property and the property owner chooses to use it beneficially, the City can issue a groundwater 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 a ROI within one year and have additional savings of approximately $13,500 on subsequent years from water rates and replenishment fees.
To assist SFR property owners to consider installing a beneficial use system, staff will assist project applicants during the plan review process to estimate water cost-savings as presented in the table above.
FISCAL IMPACT
Currently, there is no projected fiscal impact by amending the Water Supply Ordinance because there is no known number of SFR projects that have opted to pay the replenishment fee in lieu of using groundwater to beneficial use. 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.
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