City Council
Report
City Council Meeting: September 22, 2026
Agenda Item: 7.A
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To: Mayor and City Council
From: Christopher Dishlip, Director of Public Works, Water Resources Division Subject: Sustainable Water Master Plan Update
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 a finding of categorical exemption pursuant to Section 15307 of the CEQA Guidelines; and
2. Receive and provide direction on the 2026 Sustainable Water Master Plan Update.
Summary
To diversify the City’s water supply portfolio and reduce its reliance on imported water supplies, City Council adopted the 2018 Sustainable Water Master Plan (SWMP) on November 27, 2018, and directed staff to implement water self-sufficiency projects outlined in the plan with the goal of achieving 99% water self-sufficiency. The majority of the projects outlined in the 2018 SWMP have been completed as of January 2026 with the exception of those impacted by the COVID-19 pandemic (e.g., expanding water conservation programs, the recycled water distribution network, and groundwater production).
As the original water self-sufficiency projects approached completion, staff initiated an update to the 2018 SWMP. This update aims to assess the City’s new baseline for local water supply, identify remaining supply gaps associated with projects delayed by the pandemic, and incorporate new data and information (e.g., the 2022 Groundwater 2 of 11
Sustainability Plan) that impact local water supply availability. The updated SWMP also evaluates a range of water supply alternatives to address the remaining gap between projected local water supplies and the City’s water self-sufficiency objectives. These alternatives reflect current water demand projections, updated groundwater management requirements, and lessons learned from the implementation of the 2018 SWMP. The findings of the update will provide a framework for evaluating potential investments and strategies to further enhance local water supply reliability and resiliency.
Background
On January 25, 2011, City Council directed staff to develop a water self-sufficiency plan with the goal of meeting 100% of Santa Monica’s water demand using local water sources by 2020 (Attachment A). On October 28, 2014, Council adopted the SWMP, which outlines a strategy to achieve water self-sufficiency (Attachment B). The 2014 SWMP involves a combination of water demand reduction strategies through various water conservation and efficiency programs designed to permanently reduce residential and commercial water use, along with increased water supply from; 1) alternative water sources such as captured rainwater and treated wastewater; 2) increased efficiency of the City’s water treatment systems; and 3) additional pumping from existing groundwater wells and new wells in the local groundwater basin. Implementation of the SWMP has been proceeding since 2014, with updates provided during Council’s annual consideration of water rate adjustments.
Between 2014 and 2018, other elements of the SWMP, including completion of a preliminary Sustainable Yield Analysis of the Santa Monica groundwater basin and finalizing plans for the Sustainable Water Infrastructure Project (SWIP), progressed to support further analysis and refinement of alternatives to reduce reliance on imported water supply and meet the City’s self-sufficiency goal. Staff initiated a comprehensive update of the SWMP in 2017 to incorporate new information regarding local groundwater resources, regulatory updates, and to integrate new water conservation programs and alternative water supply opportunities.
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On January 9, 2018, staff reported to Council that further analysis was needed in order to assess whether the City could meet its water self-sufficiency goal by 2020 (Attachment C). An updated SWMP was presented to and adopted by City Council on November 27, 2018. The 2018 SWMP outlined three components: Component 1 – Increasing Water Conservation, Component 2 – Develop Sustainable and Drought Resilient Alternative Water Supplies, and Component 3 – Expanding Local Groundwater Production to achieve water self-sufficiency by 2023.
Implementation of the 2018 SWMP was impacted by the COVID-19 pandemic and subsequent City-wide organizational restructuring. Component 1 – Increasing Water Conservation of the 2018 SWMP was not fully implemented, as the Water Conservation Division was reduced by 50 percent, leaving two staff members focused primarily on maintaining existing programs and services. In addition, projects to expand the City’s recycled water distribution network (Component 2) and develop additional groundwater production wells (Component 3) were deferred due to financial constraints. The original implementation schedule, which anticipated completion by 2023, was further extended to summer 2025 as ongoing projects experienced supply chain disruptions and regulatory delays. Despite these challenges, staff successfully completed the majority of the projects identified in the 2018 SWMP, including:
• Sustainable Water Infrastructure Project. The SWIP is a first of its kind facility that leverages stormwater, urban runoff, municipal wastewater, and brackish groundwater to produce highly purified water for groundwater recharge and nonpotable uses such as irrigation. The SWIP has received several regional, national, and global awards for its innovative approach to provide an alternative and resilient water supply for the community. Additional information on the SWIP can be found in Attachment D.
• Olympic Well Field Restoration. Through settlement funds received from the responsible party, the City constructed two new groundwater production wells, a dedicated transmission main, and a new Olympic Advanced Water Treatment 4 of 11
Facility to restore local groundwater in the Olympic Well Field that had been impaired by industrial contaminants. Additional information on the project is available in Attachment E.
• Arcadia Water Treatment Plant Production Efficiency and Enhancement Project.
The City’s Arcadia Water Treatment Plant was upgraded and expanded by implementing a first-of- its- kind Flow Reversal Reverse Osmosis system to increase the treatment efficiency to 90% or greater. This upgrade enables the plant to produce approximately 10 percent more potable water without pumping more groundwater, supporting more sustainable groundwater management.
Additional information on the project is available in Attachment E. • Advanced Water Metering Infrastructure (AMI) Project. Staff deployed the AMI system for the City’s 18,000+ water service connections to provide each customer with real-time information about their water usage, billing, and leak detection. The AMI Project also allows the City to enhance customer service, including providing leak alerts through the EyeOnWater app and enabling quicker responses to bill inquiries and service requests. Additional information on the project and instructions on how to sign up for EyeOnWater are available in Attachment F.
Following pandemic-related impacts to the original project financing plan, staff secured nearly $40 million in state and local grant funding and more than $150 million in lowinterest financing to support project implementation. These funding efforts enabled the City to advance the majority of the water self-sufficiency projects while minimizing rate impacts to the community.
Discussion
To build upon the progress made under the 2018 SWMP and address changing conditions, staff initiated an update to recalibrate the City’s local water supply, update water demand projections to reassess the remaining gap to water self-sufficiency, evaluate current and future local water supply opportunities, and identify both near-term 5 of 11
and long-term strategies to improve water supply reliability. The update also considers new data and information including the 2022 Groundwater Sustainability Plan, emergency preparedness (e.g., regional wildfire response), and peak day/week water demand that affects local water supply availability and demand.
Based on current information, staff estimates that local water supplies can meet approximately 80 to 85 percent of the City’s annual water demand on average.
However, this estimate remains uncertain because two of the City’s largest groundwater production wells at the Charnock Well Field are currently being replaced. The City’s actual local water production capacity will not be fully known until the replacement wells are completed and operational at the end of 2026.
Water Supply Gap Analysis
The 2026 SWMP Update evaluated several scenarios to assess the City’s water supply gap over a 20-year planning horizon (2025–2045). A summary of the projected water supply gap to achieve water self-sufficiency is presented in Figure 1. The range shown reflects varying assumptions regarding the effectiveness of water conservation measures and future population growth associated with regional housing requirements.
The upper blue dashed line represents the worst-case scenario, in which water demand increases as new housing is developed and no additional water conservation measures are implemented. The lower green dashed line represents the best-case scenario, in which the proposed water conservation program outlined in the 2024 Water Conservation Master Plan (Attachment G) achieves its projected savings. Under this scenario, existing local water supplies would be sufficient to meet both current and future water demands. However, actual future conditions are expected to fall between these two scenarios. As a result, the City will likely continue to rely on some level of imported water supplies to meet future water demand, with the amount dependent on the success of conservation efforts and the rate of population growth. 6 of 11
Figure 1: Projected Water Supply Gap (2025-2045)
Water Supply Alternatives to Meet Supply Gap
To support the City’s goal of achieving water self-sufficiency, a total of five major alternatives were developed and evaluated to meet the supply gap. These alternatives considered a combination of water demand reduction, increasing local water supplies, partnering in regional reuse and water supply programs, and adding new water supply sources. A summary of the alternatives developed and evaluated is provided below. • Alternative 1: Water Demand Reduction - Water Conservation Program B.
Increase water conservation and efficiency programs to reduce the City’s overall water demand, as outlined under Program B of the 2024 Water Conservation Master Plan (Attachment G). Program B includes additional water rebate programs and implementing/enforcing upcoming building code changes to increase water use efficiency.
• Alternative 2: Maximize Local Water Recycling – Expand Recycled Water System and Direct Potable Reuse. Expanding the recycled water distribution system to replace potable water consumption assists with replacing potable water consumption. This alternative seeks to increase the use of recycled water 7 of 11
within the City by expanding the recycled water distribution system to serve additional non-potable customers, including new developments with dualplumbing systems, and by implementing direct potable reuse to supplement the City’s groundwater supply.
• Alternative 3: Local Supply Resilience - Groundwater Remediation (Airport). The Coastal Sub-basin beneath the Santa Monica Airport is an untapped groundwater aquifer that could potentially provide one to two million gallons per day of additional groundwater. However, the Coastal Sub-basin is impaired by contamination from historical industrial uses at the airport site. The extent of contamination is currently under investigation by the responsible party with oversight from the Regional Water Quality Control Board. • Alternative 4: Regional Reuse and Water Supply Exchange. Two large-scale water recycling projects are currently in planning and preliminary design phases and could provide opportunities for the City to enhance local water supply reliability and resilience through regional partnerships. The first project is the Metropolitan Water District of Southern California Pure Water Southern California’s Program, which is proposed in Carson. While the City would not receive purified water directly from this project, it could potentially enter into a water exchange agreement with MWD, whereby the City would receive potable water in exchange for purified water produced by the regional facility. The second project is the Los Angeles Department of Water and Power’s Pure Water Los Angeles Program, which is being developed at the Hyperion Water Reclamation Plant in El Segundo. Under this partnership, the City could receive purified water for groundwater replenishment at the Charnock Well Field or further treat the purified water to meet direct potable reuse standards for incorporation into the City’s drinking water supply. Both regional projects have implementation timelines that extend well beyond the planning horizon of Alternatives 1 through 3 and are not expected to be operational until after 2035. • Alternative 5: Seawater Desalination. This alternative increases local supply by developing a new, standalone seawater desalination facility with capacity to provide up to 7 MGD to the City’s water supply portfolio. To minimize 8 of 11
environmental impacts on aquatic life, a sub-surface intake would be used to extract seawater from the ocean. The seawater desalination facility could be located sub-surface similar to the SWIP, or be integrated into its surrounding environment.
Alternatives Evaluation and Recommended Project Portfolio The above water supply alternatives were evaluated using the five key criteria listed below and a portfolio approach was recommended for implementation. • Environmental and Social Considerations – impacts on natural environment, public acceptance, and environmental justice
• Technical Considerations - treatment process and infrastructure complexity, innovative technology, permitting, beneficial use, and maximizing existing facilities
• Operational Considerations – impacts on staffing, operational complexity, and energy efficiency
• Life Cycle Cost – capital and annual operating costs
• Alignment with City’s Overall Goals – water self-sufficiency, project schedule, and control over implementation
Two different weights for the scoring criteria (evenly distributed and prioritizing alignment with City goals) were also used as a sensitivity analysis for the recommended portfolio. Given the uncertainty in future water demand projections, timeline of recommended project alternatives, and long-term reliability of local groundwater supplies, staff divided the recommendations into two separate portfolios:
• Near-Term Portfolio (5-10 years). Implement Alternative 1: Water Demand Reduction – Water Conservation Program B and Alternative 2: Maximize Local Water Recycling – Expand Recycled Water System and Direct Potable Reuse.
Both alternatives were already included in the recently adopted 2025 Water and Wastewater Rate Study approved by City Council. Staff has already begun planning and design efforts and is exploring funding opportunities for these projects.
• Long-Term Portfolio (10+ years out). Under Alternative 4, the City would continue 9 of 11
to engage with regional agencies and stakeholders to explore partnership opportunities as large-scale regional water recycling projects advance through planning, design, and implementation. These partnerships could provide future opportunities to enhance local water supply reliability and reduce reliance on imported water. In addition, emerging seawater desalination technologies may create new opportunities over the long term. New technologies currently in research and development could reduce implementation costs, energy demands, and environmental impacts, potentially making seawater desalination a more viable future option. These two alternatives should be revisited within the next 5- 10 years.
Environmental Review
The 2026 SWMP update 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 2026 SWMP is to provide an update on the City’s strategic initiative on water selfsufficiency and to assess alternatives to close the supply gap. 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. Furthermore, the 2026 SWMP update is exempt from CEQA pursuant to Section 15307 (Actions by Regulatory Agencies for Protection of Natural Resources) of the CEQA Guidelines, which exempts actions taken by regulatory agencies as authorized by state law or local ordinance to assure the maintenance, restoration, or enhancement of a natural resource where the regulatory process involves procedures for protection of the environment. The SWMP update analyzes alternatives to ensure a resilient, reliable and sustainable water supply for the City and as such, is exempt from CEQA pursuant to Section 15307.
Past Council Actions
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Meeting Date Description
01/25/2011
(Attachment A)
Request by Councilmember O'Day that Council act on the
September 2010 recommendation from the Environmental
Task Force that the City develop a plan to achieve 100%self sufficiency on local water sources by 2020 by scheduling a study session in early March to examine the City's water supply and to potentially direct staff to develop the plan for self-sufficiency by 2020
10/28/2014
(Attachment B)
Sustainable Water Master Plan Status Update, Presentation of Rate Analyses, and Discussion of Proposed Rate Options 11/27/2018
(Attachment C)
Sustainable Water Master Plan Update and Pathway to
Water Self-Sufficiency
Commission on Sustainability, Environmental Justice, and the Environment Actions
A summary and recommendation of the 2026 SWMP update were presented to the Commission on Sustainability, Environmental Justice, and the Environment on May 18th, 2026. The Commission supports the findings and recommendations presented in the 2026 SWMP Update.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of recommended action. Staff will return to Council if specific budget actions are required in the future to implement the near-term portfolio projects.
Prepared By: Sunny Wang, Water Resources Manager
Approved Forwarded to Council
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Attachments:
A. January 25, 2011 City Council Direction to Develop Plan for Water SelfSufficiency (web link) B. October 28, 2014 Staff Report (web link)
C. November 27, 2018 Staff Report (web link)
D. Sustainable Water Infrastructure Project Website
E. Olympic Well Field Restoration and Arcadia WTP Production Efficiency Enhancement Project Website
F. Advanced Water Metering Infrastructure Project Website G. Santa Monica FINAL WCMP_2024-3-29_Submitted
H. Written Comments
I. PowerPoint Presentation