CITY COUNCIL STAFF REPORT
Meeting Date: June 27, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-22 APPROVING DIABLO VISTA WATER SYSTEM 2022 DROUGHT MANAGEMENT PLAN
SYNOPSIS
The Diablo Vista Water System (DVWS) provides raw and untreated canal water for irrigation purposes to 475 homes in the Poets’ Corner area. On June 21, 2022, the DVWS Board adopted a Drought Management Plan (DMP) in response to the Contra Costa Water District’s (CCWD) temporary drought surcharge that was approved on June 15, 2022.
The City Council reviews recommendations regarding the activities of the DVWS and matters relating to the affairs of the water system, therefore any proposed DMP and water rationing program requires Council approval.
DISCUSSION
Background
The Diablo Vista County Water System was formed in 1950 to provide untreated canal water for irrigation to 475 homes in the area bounded roughly by Oak Park Boulevard, Contra Costa Canal, Boyd Road and Patterson Boulevard, known locally as “Poet’s Corner.” In 1963, the Diablo Vista County Water District was merged with the newly incorporated City of Pleasant Hill and changed its name to Diablo Vista Water System (DVWS).
The Diablo Vista Water System (DVWS) receives its water, which is untreated, from the Contra Costa Water District (CCWD). The system is funded by three main sources; Secured Property Tax, an annual Operating Fund Usage fee of $150 per customer, and an annual Capital Improvement fee (approved in 2004 to fund future improvements to the pump house and pipeline) of $135 per customer. The usage fee is a one-time yearly fee, for which the user receives unmetered irrigation water; all water costs are paid for by the DVWS from the Operating Reserve Fund. Any excess water charges are born by the Fund, not the individual user. Secured Property Tax monies collected are allocated to the Operating Fund per Municipal Code Section 13.20.030 - Diablo Vista Water System, Duties of the City.
A total of $310,350 in Operating Fund revenue and $63,450 in Capital Fund revenue is anticipated to be collected in FY22/23. The annual usage and capital improvement fees have not increased since 2004, and while the Secured Property Tax contribution to the fund has increased with the increase in property values, there has also been a substantial increase (77%) in the untreated water costs since 2004. DVWS paid $2.44 per 1,000 gallons used in FY21/22, and a 5% to 7% increase is expected for FY22/23. Water costs comprised approximately 50% of the Operating Budget in FY21/22. The increased water costs have had a significant impact on the amount of Operating Reserve funds available for the remaining utility, administration and maintenance costs of the system.
On March 28, 2022, Governor Newsom issued Executive Order N-7-22 requiring increased efforts to use water efficiently. The Executive Order directed the State Water Resource Control Board (SWRCB) to consider emergency regulations requiring urban water suppliers to implement Stage 2 of their Water Shortage Contingency Plans and up to a 20 percent water use reduction. The SWRCB issued emergency regulations on May 24, 2022, in response to the Executive Order.
CCWD has indicated that it has sufficient supply to meet efficient customer demands this year, with the CVP contract supply, local supplies, and water stored in Los Vaqueros Reservoir.
However, in response to the continued dry conditions and the Governor’s Executive Order, as well as the possibility of the drought continuing for a fourth year into 2023, on April 20, 2022, CCWD enacted a Drought Management Program (Program) consistent with Stage 2 of the District’s Water Shortage Contingency Plan, seeking an overall 15% reduction in water use as compared to 2020. On May 1, 2022, CCWD provided a Notice of Public Hearing for a Drought Surcharge Proposal to all its users.
At a public hearing held on June 15, 2022, CCWD’s Board of Directors adopted a temporary drought surcharge for untreated water equal to $.37 per 1,000 gallons of water used. The surcharge will be effective July 1 to encourage conservation and for CCWD to recover costs related to the impacts of an ongoing drought. This surcharge will be added to the current untreated water rate of $2.44 per 1,000 gallons, for a total of $2.81 per 1,000 gallons. All users that reduce their water consumption by 15% from their 2020 water consumption will experience little to no increase in their water bill. Users who don’t meet the 15% conservation goal will see an increase in their water bill of $2.81 per 1,000 gallons used over the mandated 15% reduction.
In response, the DVWS Advisory Committee held a public meeting on June 21, 2022 to review options for a DMP which incorporates a water rationing and monitoring program. On that same date, the Advisory Committee adopted a rationing program scheduled to begin on July 1, 2022.
In April of 2022, when the system was activated, the DVWS Advisory Board requested all users reduce their water consumption 15%, to be consistent with the Governor’s Executive Order and Stage 2 of CCWD’s Water Shortage Contingency Plan. In April the DVWS exceeded its 2020 allotment by 7%, however in May a 4% reduction was achieved, and current usage numbers for the month of June indicate we will meet or exceed the required 15% reduction.
DVWS has a history of mandating a DMP to meet both the SWRCB and CCWD’s water conservation requirements (2009 and 2015), and has tried several different programs, including, three days per week water rationing; 2 days per week odd/even house water rationing; and 10 day increments for water usage, with water shut offs during that 10 day period when the allocation has been exceeded. Past experience has shown that the most effective conservation method, both for water consumption reduction and monitoring is rationing the water in 10 day increments.
Analysis
The DVWS Advisory Committee held a public meeting via Zoom on June 21, 2022, to discuss the proposed drought management plan. There were no Poet’s Corner residents in attendance.
The following topics were discussed:
CCWD Drought Management Ordinance: Identified the need to conserve irrigation water by 15% of FY2020 consumption levels, or pay increased water costs of $0.37 per 1,000 gallons of water used
History of past DMP’s and what was the most effective DMP for the system and the users
Registration/Notification Methods: Identified current notification methods including; the DVWS Web Page, “Notify Me” automated alert system, and a mass mailing as not all users opted in to Notify Me
Proposed Drought Management Program
The Advisory Board anticipates that providing increased resident education of the new CCWD Drought Management Ordinance will be sufficient to obtain the 15% reduction in water usage and avoid an increase in water costs. If approved by the City Council, beginning June 28, 2022 the Board proposes utilizing a mass mailing, Notify Me, the DVWS website and the DVWS phone recorder as tools to provide information to the users regarding the need for conservation, the targeted conservation goals and the increase in water costs if the conservation goals are not achieved. The Advisory Board will monitor the water consumption through the month of July to see if the goals have been met. If met, the Advisory Board will continue their educational conservation message to continue to meet the CCWD mandate. On the last day of any month, if the mandated 15% has not been achieved, the Advisory Board will then move to a DMP beginning the first day of the following month.
At the beginning of each following month, the DVWS Board will identify the monthly water allowance available to the DVWS in order to achieve a reduction in usage of 15% compared to 2020 monthly consumption as requested by the CCWD Drought Management Ordinance. The water allowance will be split into ten day increments per month, and once the allotment has been reached for that period, the water will be turned off until the next 10 day period begins. All customers will be notified by one of the current methods, including: “Notify Me”, DVWS web page, and DVWS phone recorder.
The DVWS Board is requesting that the City Council adopt the proposed DMP and water rationing and monitoring program, promoting needed water conservation, and preventing an increase in water costs for the system.
FISCAL IMPACT
If the proposed DMP is not adopted, the DVWS may experience an increase in water costs, based on the amount of water used.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt resolution.
ALTERNATIVES TO RECOMMENDED ACTION
The City Council may consider an alternative rationing and monitoring program than the one proposed.
ATTACHMENT(S):
Proposed Resolution
Prepared by: Ann James, Maintenance Superintendent
Approved by: June Catalano, City Manager