City Council
Report
City Council Meeting: May 27, 2025
Agenda Item: 4.L
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Approve Resolution Adopting the 2025 Annual Water Supply and Demand Assessment
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Categorical Exemption pursuant to Section 15307 and Section 15308 of the California Environmental Quality Act (CEQA) Guidelines;
2. Hold a public meeting and receive public comment for the 2025 Annual Water Supply and Demand Assessment Report for the Public Works Department, Water Resources Division; and
3. Approve the attached resolution adopting the 2025 Annual Water Supply and Demand Assessment Report.
Summary
To ensure the availability of water during extreme climate events, such as severe drought, the California Water Code (CWC) requires all urban water suppliers to conduct an annual water supply and demand assessment. The City’s Public Works Department, Water Resources Division, staff completed the assessment for the projected 2025 year (July 1, 2025, through June 30, 2026), as defined by the California Department of Water Resources (DWR). Details of the annual assessment are included in the attached 2025 Annual Water Shortage and Demand Assessment Report (Attachment A). The annual assessment analyzes current water supply and demand conditions to project water supply reliability over the next year (July 1, 2025, through June 30, 2026), identify potential water supply shortages and, if necessary, implement water shortage response actions to mitigate potential water supply shortage conditions. In order to adapt to environmental impacts induced by climate change on the City’s water supply, the City 2 of 7
continues to invest in diversifying its water supply, enhancing drought resiliency, and investing in water conservation measures to permanently reduce water demand. Based on the findings from the annual assessment, staff recommends remaining in a Stage 2 Water Shortage Stage (20% reduction in water use compared to each customer’s 2013 baseline), per the City’s 2020 Water Shortage Contingency Plan (Attachment B) adopted by City Council in June 2021. Maintaining a Stage 2 Water Shortage is critical to meet the City’s goal to reduce its reliance on imported water supplies, comply with state regulations to reduce per capita water use, and help preserve this precious resource. The City has remained in the Stage 2 Water Shortage Stage since the 2014 drought and continues to maintain a 20% reduction in water demand from the baseline year of 2013.
Discussion
In 2018, the California Legislature enacted into law new requirements for urban water suppliers to increase drought resilience and to improve communication of water shortage response actions. Each urban water supplier is required to prepare an Annual Water Supply and Demand Assessment (Annual Assessment) and submit an Annual Water Supply and Demand Assessment Report (Annual Report) to DWR on or before July 1, 2022, and every year thereafter. The annual assessment must be conducted according to a written decision-making process determined by individual water suppliers. The City’s written decision-making process is outlined in the City’s 2020 Water Shortage Contingency Plan (Attachment B), which was adopted by City Council on June 8, 2021, as part of the City’s 2020 Urban Water Management Plan.
Assessment Procedure
The assessment required the analysis of current year and projected year water supply and demand. The City currently obtains its potable water supply from a combination of treated local groundwater and imported water from the Metropolitan Water District of Southern California (MWD), which is purchased to supplement local water supplies. The CWC requires water utilities to assess available water supplies under a representative single dry year. Per the 2020 Urban Water Management Plan, local groundwater supply available during a single, worst-case dry year is approximately 6,755 acre-feet per year 3 of 7
(AFY). Relative to previous years, the local groundwater supply in 2024 (2,863 AFY) was lower than the past due to: 1) Santa Monica Well 4, the highest producing groundwater well in the Olympic Well Field, was taken offline due to operational issues; and, 2) the Arcadia Water Treatment Plant (WTP) was offline for extended periods for construction of the Arcadia WTP production efficiency enhancement and expansion.
Since construction at Arcadia WTP was completed in April 2025, which is prior to the start of the project year (July 1, 2024), there are no anticipated outages during the projected year. This results in the projected year local groundwater supply equating to 6,755 AFY. For imported water supplies, the assessment assumes only MWD’s Tier 1 water supply allotment of 7,406 AFY is available. The total available supply for the projected 2025 year is therefore 14,161 AF (6,755 AFY local supply + 7,406 AFY MWD Tier 1 allotment).
A conservative approach was used for the projected year demands, as the intent of the assessment and requirements of the CWC are to ensure urban water suppliers are able to maintain reliable water supplies for a projected dry year. Constrained demands for the projected year for all categories were calculated using averages of previous years’ (2020-2024) constrained demand. This projection ensures the City is prepared for a high demand coupled with a dry year (seen in 2020-2022), while accurately reflecting recent usage (seen in 2024). The unconstrained demand was calculated by increasing the constrained demand value by 20%. Unconstrained demand is defined by the CWC as water demand absent any water supply and demand restrictions (e.g., water conservation programs). The 20% increase accounts for water usage that would occur without any water conservation activities. Unconstrained water demand for the current and projected year is summarized in Table 1.
Table 1: Current Year and Projected Year Unconstrained Water Demands Type
Current Year
Unconstrained
January – December 2024
(AF)
Projected Year
Unconstrained
June 2025 – July 2026
(AF)
Single Family
Residential 2,895 3,185
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Multi-Family
Residential 5,354 5,705
Industrial/
Commercial 2,860 2,829
Institutional 328 342
Landscape Irrigation 527 560
Fire Service 10 5
Water Loss - -
Demand 11,974 12,626
Assessment Results
The results of the annual water supply and demand assessment show that without water shortage response actions (e.g. 20% water conservation target), a 12% water supply surplus is projected for the next year. A 12% surplus equates to the State’s Standard Shortage Level 0 (no shortage). The shortage due to the difference in projected unconstrained demand and water supply is summarized in Table 2.
Table 2: Assessment Results without Water Shortage Response Actions for Projected Year
Total (AF)
Anticipated Unconstrained Demand
(without Stage 2 Water Shortage conservation efforts)
12,626
Anticipated Total Water Supply 14,161
Surplus/Shortage without Water Shortage Response Actions1 2,525 % Surplus/Shortage without Water Shortage Response Actions1 12% State Standard Shortage Level 0
1 Shortage is indicated by a negative number/percentage; surplus is indicated by a positive number/percentage.
Although the assessment results indicate a State Standard Shortage Level 0, the City recommends staying in Stage 2 for the following reasons:
• Staying in Stage 2 helps the City achieve its long-term water goals to reduce its reliance on imported water supplies and increase local control of water production costs.
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• On the state level, the Water Conservation Act of 2009 (Senate Bill X7-7) requires water suppliers in California to increase their water use efficiency, and CA Executive Order B-37-16: Making Water Conservation a California Way of Life focuses on water conservation to permanently reduce per capita water use. • If the Stage 2 Shortage was lifted, water demand would increase and result in increased purchase of imported water, which could impact water rates and potentially lead to a heavier burden on the City’s rate payers.
The City has remained in a Stage 2 Water Shortage Level since 2014 and has consistently maintained 20% reductions in water demand from 2013 water usage levels.
The City’s Water Shortage Contingency Plan utilizes the same shortage levels as the State and includes water shortage response actions for a Stage 2 shortage. These actions include water use allowance on bills, restriction/enforcement on irrigation runoff or water waste, water use efficiency public outreach through social media and other media outlets, water conservation rebates such as turf replacement, and water use efficiency consultations. The goal of these actions is to reduce water demand by 20% from the 2013 baseline year. Revised results of the assessment with the water shortage response actions incorporated for an estimated 20% reduction in water demand (i.e. “constrained” demand) are tabulated in Table 3.
Table 3: Assessment Results with Stage 2 Water Shortage Response Actions for Projected Year
Total (AF)
Anticipated Constrained Demand 10,101
Anticipated Total Water Supply 14,161
Revised Surplus with Water Shortage Response Actions 4,060 Revised % Surplus with Water Shortage Response Actions 32% Environmental Review
The City’s annual water shortage assessment is categorically exempt from CEQA pursuant to Section 15307 and Section 15308 of the CEQA Guidelines. Section 15307 exempts (Class 7) actions taken by regulatory agencies as authorized by state law or 6 of 7
local ordinance to assure the maintenance, restoration, or enhancement of a natural resource where the regulatory process involves procedures for protection of the environment. Section 15308 exempts (Class 8) actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. The intent of the Annual Water Shortage Assessment is to assess available water supplies against demands in an effort to protect the environment. Therefore, the assessment is exempt from CEQA pursuant to Section 15307 and Section 15308 of the CEQA Guidelines.
Commission Action and Public Outreach
The annual water supply and demand assessment written decision-making procedures include a presentation of the annual assessment to the Commission on Sustainability, Environmental Justice, and the Environment. On March 17, 2025, Staff presented the annual water supply and demand assessment findings to the Commission on Sustainability, Environmental Justice, and the Environment.
Public participation is required as part of the annual water supply and demand assessment procedures which include the item to be presented at a public meeting and provide the opportunity for the public to comment. Public notification for the item was posted in the Santa Monica Daily Press on April 15, 2025.
Past Council Actions
Meeting Date Description
06/08/2021
(Attachment B)
Public Hearing and Adoption of the City of Santa Monica’s 2020 Urban Water Management Plan and Water Shortage Contingency Plan.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future.
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Prepared By: Dinaz Kureishy, Civil Engineering Assistant Approved Forwarded to Council
Attachments:
A. Draft 2025 Annual Water Shortage Assessment Report
B. June 8, 2021 Staff Report (Web Link)
C. Resolution - 2025 Annual Water Shortage Assessment