City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: James Pease, Public Works Director
Date: 08/09/2022
Subject: Loan for Businesses / Water Conservation Mandates RECOMMENDED ACTION:
If the City Council would like to offer loans to non-residential property owners to comply with the State mandate related to Non-Functional Turf, staff recommends the City Council approve the attached resolution and direct staff to move forward with implementing the Non-Functional Turf loan program.
BACKGROUND:
California Governor Gavin Newsom signed an executive order on March 28, 2022 that tasked the State Water Resources Control Board (Water Board) to consider issuing certain mandates with regard to water conservation and water restrictions statewide. At the May 24, 2022 Water Board meeting a resolution was passed to enforce a number of those mandatory water conservation measures.
At the July 2022 City Council meeting, the City Council adopted resolution 22-29 approving specific non-functional turf emergency water conservation measures called for through Executive Order N-7-22 by Governor Gavin Newsom and adopted by the State Water Resources Control Board on May 24, 2022, as summarized below:
Potable water use for “Non-Functional Turf” at Commercial, Industrial and Institutional sites is prohibited. The definition of Non-Functional Turf is grass that is solely ornamental and not regularly used for human recreational purposes or for civic or community events. It does not prohibit the use of potable water necessary to ensure the health of trees and other perennial no-turf plantings or to the extent necessary to address an immediate health and safety need.
This mandate by the State can create areas of dead grass. This is not only unsightly but could also become a fire hazard at some point in the future if not properly maintained.
DISCUSSION/ANALYSIS:
At the July 2022 City Council meeting, the City Council requested staff bring back details of a City loan program where the City would loan property owners the funds to either connect to the non-potable system to irrigate grass that is not used for recreational purposes, nor requires irrigation to maintain trees, or to remove the Non-Functional Turf and install water efficient landscaping.
The following summarizes the recommended Non-Functional Turf loan program to assist nonresidential property owners to comply with the state mandates related to Non-Functional Turf:
Eligibility
The loan program would be available to property owners of non-residential properties within the City limits that have a commercial or industrial business operating on the property with NonFunctional Turf (greater than 500 square feet).
1. Non-potable water service connection to their on-site irrigation system. a. A property owner that has a non-potable water main line located in the public right of way in front of their property may receive a loan to construct the nonpotable water service connection to their on-site irrigation system. b. The property owner must obtain a no cost encroachment permit and hire a licensed and bonded contractor to perform the work in accordance with the City of Ripon standards and specifications.
2. Replace the Non-Functional Turf with water efficient landscaping a. A property owner who would like to replace Non-Functional Turf with landscaping that complies with the State of California Mandatory Water Efficiency Landscaping Ordinance requirements may receive a loan to make these improvements.
b. The property owner must submit a landscaping plan showing the proposed landscape improvements.
Application Process
The property owner will need to fill out an application, including providing plans or a description of the work to be performed along with a cost estimate. City staff will determine whether the plans or description of the work is consistent with the Mandatory Water Efficiency Landscaping Ordinance.
Once the application is approved, the property owner will enter into a loan agreement with the City of Ripon. The terms of the loan agreement, including remedies for non-compliance, shall be prepared by the City Attorney, and shall include, at a minimum, the terms described below.
Reimbursement of Expenses
Once the work has been completed, the property owner will be reimbursed for the expense with loan proceeds.
Terms of the Loan
The loan will be for the actual cost of the improvements with a maximum of $30,000.
The term of the loan will be 5 years.
Interest rate of the amount borrowed will be 2 percent.
Payments are to be made to the City every month.
If the property is sold during the term of the loan, the outstanding balance will be due prior to the sale of the property.
If a borrower is 30 days past due on the monthly payment, they will pay a penalty as permitted by California law.
If a borrower is 90 days past due, this would be considered a default on the loan and the City will take the steps necessary to collect the outstanding balance, including the recording of a Notice of Default and/or a lien against the property.
FISCAL IMPACT:
If every eligible non-residential property owner was to take out the full loan amount available, the City’s Water Enterprise Capital Account would issue $480,000 in loans. The current balance of this fund is $7.2 million.
Attachments:
1. Resolution Exhibit A
RESOLUTION NO. 22-38
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIPON APPROVING AND IMPLEMENTING THE NONFUNCTIONAL TURF LOAN PROGRAM WHEREAS, the State Water Resources Control Board has passed a resolution on May 24, 2022 that no longer allows potable water use to irrigate “Non-Functional Turf” at Commercial, Industrial, and Institutional sites. The definition of Non-Functional Turf is grass that is solely ornamental and not regularly used for human recreational purposes and does not contain trees; and
WHEREAS, the State Water Resources Control Board mandate related to NonFunctional Turf will not only create areas of dead grass that is unsightly, but could also become a fire hazard at some point in the future if not properly maintained; and WHEREAS, in view of the public benefits, the City Council finds and declares that loans issued to eligible recipients under the Non-Functional Loan Program serve a public purpose and do not constitute a gift of public funds.
NOW THEREFORE BE IT RESOLVED the City Council of the City of Ripon does hereby approve and adopt the Non-Functional Loan Program as described in Exhibit A.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 9th day of August, 2022, by the following vote:
RESULT: ADOPTED [4 TO 1]
MOVER: Leo Zuber, Council Member
SECONDER:Michael Restuccia, Vice Mayor
AYES: Dean Uecker, Michael Restuccia, Leo Zuber, Daniel de Graaf NAYS: Gary Barton
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
DEAN UECKER, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk