City Council
Report
City Council Meeting: June 9, 2026
Agenda Item: 12.A
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To: Mayor and City Council
From: Christopher Dishlip, Director of Public Works, Water Resources Division Subject: Public Hearing and Approval of the 2026 Annual Water Shortage Assessment Report
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Hold a public hearing, receive public comment, and approve the proposed 2026 Annual Water Shortage Assessment Report for the Public Works Department Summary
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 2026 year (July 1, 2026 through June 30, 2027), as defined by the California Department of Water Resources. Details of the annual assessment are included in the attached 2026 Annual Water Shortage Assessment Report (Attachment B). The annual assessment analyzes current water supply and demand conditions to project water supply reliability over the next year (July 1, 2026 through June 30, 2027), identifies potential water supply shortages and, if necessary, implements water shortage response actions to mitigate potential water supply shortage conditions. Based on the findings from the annual assessment, staff recommends remaining in a Stage 2 Water Shortage (20% reduction in water use compared to each customer’s 2013 baseline), per the City’s 2020 Water Shortage Contingency Plan adopted by City Council in June 2021. Maintaining a Stage 2 of 5
2 Water Shortage is critical to meeting 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.
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 Shortage Assessment Report (Annual Shortage Report) to DWR on or before July 1, 2022, and every year thereafter.
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 (AFY), which is used for the projected year local supply. 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 2026 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’ (2021-2025) constrained demand. This projection ensures the City is prepared for a high demand coupled with a dry year (seen in 2021- 2022), while accurately reflecting 3 of 5
recent usage (seen in 2024-2025). 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. For the projected year, the constrained demand was 9,977 AF and the unconstrained demand was 12,472 AF.
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 14% water supply surplus is projected for the next year. A 14% surplus equates to the State’s Standard Shortage Level 0 (no shortage).
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.
• 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 California Executive Order B-37-16, Making Water Conservation a California Way of Life, focuses on permanently reducing 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.
Commission on Sustainability, Environmental Justice, and the Environment Action and Public Outreach
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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 February 23, 2026, 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 a public hearing and comment period. Public notification regarding a public hearing was published in the Santa Monica Daily Press on March 26, 2026.
Environmental Review
The City’s annual water shortage assessment is exempt from CEQA pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The intent of the Annual Water Shortage Assessment is to provide an update on the City’s water supply and assess available water supplies against demands in an effort to protect the environment. Therefore, it can be seen with certainty that the agreement would not result in adverse physical impacts on the environment, and as such, is exempt from CEQA.
Past Council Actions
Meeting Date Description
06/08/2021
(attachment A)
2020 Urban Water Management Plan and Water Shortage
Contingency Plan Council Meeting Staff Report
05/27/2025
(attachment B)
2025 Annual Water Supply and Demand Assessment
Council Meeting Staff Report
Financial Impacts and Budget Actions
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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.
Prepared By: Dinaz Kureishy, Civil Engineering Assistant Approved Forwarded to Council
Attachments:
A. June 8, 2021 Staff Report
B. Draft 2026 Annual Water Shortage Assessment Report
C. 2025 Annual Water Shortage Demand Assessment Staff Report D. PowerPoint Presentation