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City of San Diego Approves Drought Ordinance

By Angelika Villagrana, Public Policy Director

California is facing a serious water crisis. After experiencing two years of drought and the driest spring in recorded history, water reserves for the State are extremely low. Additionally, court-ordered pumping restrictions in the Bay-Delta have cut water supplies from the State Water Project by one third. To meet demands, water wholesalers have begun to tap into reservoir storage reserves.

Last year, the San Diego County Water Authority (CWA) and Mayor Sanders asked residents to do their part by conserving water by 10%.  However, since October 2007, residents have cut their water use by only 5.7%.  If conditions do not improve, the San Diego region could face water rationing as early as next year.  The Mayor has declared a Stage 1 Water Emergency, which requires a 10% water use reduction to ensure the availability of sufficient supplies to meet anticipated needs. In anticipation of possible future water cutbacks, the City of San Diego started preparing a Drought Response Ordinance, modeled after CWA’s ordinance - fourteen water districts in the region have already adopted such an ordinance.  The remaining water districts are in the process of considering adopting ordinances.  The City of San Diego presented its draft ordinance to the National Resourse & Culture (NR&C) Committee on October 15, 2008, and the City Council on November 10, 2008. 

The Chamber created a Water Subcommittee, chaired by former Infrastructure Committee chair Craig Benedetto of California Strategies, and comprised of representatives from partner trade organizations and Chamber members.  The committee began meeting in September and worked with the CWA and the Mayor’s office, as well as City Water Department representatives on business concerns regarding the proposed ordinance. 

Key concerns of the subcommittee were the absence of a fair allocation methodology and a workable off-set program.  Subcommittee members felt that many businesses have already implemented a series of aggressive water saving mechanisms, and that these businesses should not be penalized with additional cutbacks that they may not be able to achieve.

Other issues were that projects that receive their entitlements during a Level 3 drought declaration should be tolled until the Level 3 is lifted, if the project applicant does not proceed with construction and the requirement to offset water use during Level 3.  Furthermore, industry representatives felt that more emphasis should be put on conservation pricing to give customers the tools to conserve

The Chamber and its industry partners (including the Associated General Contractors, Building Industry Association, Building Managers Association, BIOCOM, Industrial Environmental Association, National Association of Industrial and Office Properties, San Diego EDC, San Diego County Apartment Association, San Diego Association of Realtors, and San Diego County Taxpayers Association) brought these concerns to the October 15, 2008 City Council NR&C hearing.  The issue of establishing a fair base line was discussed at length and City staff told the NR&C Committee that the City is in the process of developing an allocation methodology and would bring the issue back to a future Council hearing in January 2009.

The Chamber’s industry partners have continued to work with the Mayor’s office and met with Council Members and/or their staff before the November 10, 2008 Council hearing.  During a meeting in the Mayor’s office on November 6, stakeholders agreed to certain amendments to the language. The agreed-upon amendments included language changes with regard to capacity charges and entitlements.  The Mayor also assured the stakeholders that allocation and off-set issues would be addressed separately in public workshops.  With these assurances, the industry coalition was able to support the ordinance when it was heard, and approved, by the City Council on November 10, 2008.  The second reading of the ordinance will be held today, December 2, 2008.

The first public workshop on developing a water allocation methodology took place on November 18, 2008.  The industry coalition is in the process of crafting their recommendations on this issue. A separate workshop on the development of an off-set program will also be held at a future date.

For information on the Chamber’s involvement, please contact Angelika Villagrana at avillagrana@sdchamber.org.

Get more details on the ordinance and conservation tips.

Visit the San Diego County Water Authority’s web site for suggestions on how you can reduce your water use.