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Item 5.1 - Discussion of Water Issues in Old Coach Estates Neighborhoodc City Poway A U APPROVED APPROVED AS AMENDED (SEE MINUTES) DENIED REMOVED CONTINUED RESOLUTION NO. DATE: March 18, 2014 TO: Honorable Mayor and Members of the City Council FROM: Tina M. White, Interim City Manager ro INITIATED BY: Robert J. Manis, Director of Development Services Steve Crosby, City Engineer Ski SUBJECT: Workshop on Water in the Old Coach Estates Neighborhood Summary: On November 19, 2013, at the conclusion of the public hearing on the Maderas Golf Club Conditional Use Permit modification, the City Council directed staff to return with a workshop regarding the availability of water in the Old Coach Estates neighborhood. A number of speakers testified that the water levels in wells in the area have been declining and expressed concern about the availability of water for those residents that are not connected to City water. There are City water mains in the neighborhood, but not all properties are connected to them. This workshop will discuss the existing status of the water mains, the process that resulted in their installation, the process for an individual lot to connect to City water, the potential for availability and use of reclaimed water, and a discussion of City General Plan policies pertaining to water. Recommended Action: It is recommended that the City Council Receive and File this report. Background: Prior to 2001, the Old Coach Estates (OCE) neighborhood did not have City water lines serving the properties in the area. All of the homes existing at the time were served solely by private wells for both domestic and irrigation purposes. Beginning in 1996, the OCE residents began experiencing problems with the reliability of the groundwater supply. The OCE residents approached the City and the City agreed to look into the situation by studying the feasibility of an assessment district and negotiating an agreement with the Ramona Municipal Water District relating to water supplied to a development in Poway. Eventually a water line system was constructed with funds from the residents and completed in January 2001. In June 2001, the City Council approved the assessment district covering 39 properties, subject to a vote of the property owners within the boundaries of the district. With this approval, the City reimbursed the property 1 of 9 March 18, 2014 Item #5.1 a I■ Workshop on Water in the Old Coach Estates Neighborhood March 18, 2014 Page 2 owners and financed the improvements by selling assessment bonds. The water line was accepted as a public improvement in October 2001. Even with the City water mains running through the OCE neighborhood, not every property is served by City water. Some property owners opted not to fully participate in the assessment district, therefore, in some areas a water line is not immediately adjacent to properties. Others have a water line adjacent to their property and could obtain City water but have thus far chosen not to connect to the line. While the boundaries of the assessment district have not changed, over the years there have been lot consolidations and subdivisions that have changed the total number of parcels in the OCE neighborhood. Out of a total of 50 existing parcels in the OCE neighborhood, the status of City water is as follows: Connected to City water 31 parcels Not on City water (water line adjacent to property) 9 parcels Not on City water (water line not adjacent to property) 10 parcels Attachment 1 provides a map illustrating the locations of the parcels and the water mains. A number of properties in the OCE neighborhood have wells installed. Attachment 1 also shows the general location of the wells that the City is aware of, based on County records. The installation of a well requires approval from the County of San Diego Department of Environmental Health. The City of Poway is not involved in the review and approval process, therefore, the City is not aware of new wells that are drilled, nor does the City monitor the use of these private wells. Many of the wells are located on properties that are also connected to City water. Often, these wells are used for irrigation while potable water from the City system is used for domestic purposes. There are also some wells on properties that are not connected to City water where the wells are the sole source of water. As shown on Attachment 1, some of these are on lots where the City water main is adjacent to the property and readily accessible. Findings: Assessment District In August of 1996, the City Council directed staff to consider groundwater concerns of residents in the OCE neighborhood. As a result, staff recommended to Council in February of 1997, that $25,000 be appropriated for the preparation of engineering and assessment district feasibility studies for the extension of City water to the area. Forty -three Old Coach Estates properties were included in the initial study. At that time the closest public water was near Espola Road and the estimated construction cost to extend water from that location to the OCE neighborhood was in excess of $1.6 million. 2 of 9 March 18, 2014 Item #5.1 Workshop on Water in the Old Coach Estates Neighborhood March 18, 2014 Page 3 In December of 1998, the City Council appropriated an additional $35,000 to fund an Assessment Engineering report for the Old Coach Road Water line project. This report reflected the recently completed water line extension installed with the Old Coach Golf Estates project which extended the water main from Espola Road to the end of the public portion of Old Coach Road, about 700 feet east of Heritage Drive. The result was a much shorter length of water main necessary to extend into the OCE neighborhood. The final estimated cost of the water line extension was approximately $600,000 and an assessment district to fund the construction of the water line was determined to be feasible. The water line was designed and constructed with funds from private residents. The water line project was completed in January 2001. In January of 2001, the Council appropriated an additional $9,350, which was necessary for the assessment district engineer to complete the assessment report. This $9,350 was to be added to the project cost and reimbursed to the City through the assessment district. On June 5, 2001, the City Council approved the formation of Assessment District No. 2001 -1, the Old Coach Road Water Line project. The District contained a total of 39 properties, and a final dollar amount of $615,000. Attachment 2 shows the district boundary actually including 41 parcels, however, because three parcels, APN 277 -130- 14, 16, and 17, constitute one buildable lot, only one of the three parcels, APN 277 -130- 16, was assigned an assessment. The final project consisted of a 12 -inch water main and four 8 -inch water mains which feed off of the 12 -inch water line to serve groups of properties not adjacent to the 12 -inch main. A separate water line to serve the Heights development was installed later and paid for by the subdivision. The 8 -inch lines are public water mains. However, the assessment reports refer to these 8 -inch water mains as "lateral" lines A, B, C, and D. These are also identified on Attachment 2. This terminology was used by the assessment engineer because all 39 parcels shared in the cost of the 12 -inch line, but only the smaller groups of lots served by each of the 8 -inch mains participated in the cost of their respective 8 -inch main. The use of the term "lateral" for these lines is for clarity in the assessment reports and calculations. In standard terminology, the 8 -inch lines would be referred to simply as public water mains. The City does not typically use the term lateral to refer to a public water main. This term is commonly used to refer to the private connection from the water meter to the residence. The private laterals from the meter to the residence are owned and maintained by the respective property owner, not by the City. The cost distribution utilized in the assessment district was calculated based on the benefit received by each property from the improvements. First, the cost of the 12 -inch water main was apportioned as follows: ® Because each parcel, no matter where it is located along the water line, benefits from the potential for having potable water and from fire protection available 3 of 9 March 18, 2014 Item #5.1 Workshop on Water in the Old Coach Estates Neighborhood March 18, 2014 Page 4 when and if needed, 50% of the design and construction cost was apportioned equally to each property in the district. Because each parcel's benefit is commensurate with the actual length of pipeline needed to provide the water, the remaining 50% of the design and construction cost was apportioned based on each parcel's location along the water line, meaning the parcels located farther along the water line paid a higher assessment. Second, each group of properties served by one of the four 8 -inch water mains (referred to as "laterals" in the assessment reports) also shared in the cost of the 8 -inch line in the same way: O 50% of the total cost split evenly, and © 50% of the cost weighted based on the location of the parcel along the water line. Assessment bonds were sold to reimburse the homeowners for the cost of the improvements. The City carried the 15 -year bonds to fund the district and reimburse the initial construction costs, and established the assessment to reimburse the City based on the final cost distribution. The assessments are added to the tax roll each year, and payments are collected by the County via property tax payments, with the proceeds remitted to the City. The bonds will be paid in full on September 2, 2016. Finally, because it may be possible to subdivide properties located within the assessment district, each parcel was also assigned a development fee to be applied to additional lots created by any future subdivision of a property within the assessment district. One property, APN 277 - 020 -11, located at the east end of Deer Valley Estates was not included in the assessment district because it lies above the water pressure zone served by the new water line, but it was assigned a development fee which would be triggered when the property is developed. It should be noted that staff recently discovered that after completion of the water !ine and during the installation of water meters and private lateral connections, some private laterals were installed across adjacent properties without the property owners obtaining private water easements. Acquisition of private water easements for water lateral connections across adjacent properties is a requirement currently enforced by the City. Connection to Citv Water Ii The following summarizes the steps and costs necessary for a property to connect to a City water main. 4 of 9 Larch 18, 2014 Item #5.1 Workshop on Water in the Old Coach Estates Neighborhood March 18, 2014 Page 5 If a public water main is fronting the property: 1. Pay capacity charges and fees: a. SDCWA $6,922 (1" meter) b. City of Poway $5,448 (1" meter) c. City installation of 1" meter $270 d. City installation of "stub out" (small diameter connection from the water main to the water meter) $1,400. This fee does not apply if the "stub out" is existing. 2. Pull building permit for private lateral (connection from water meter to residence) $220 3. Private contractor installs private lateral connection from meter to residence. If the residence is also served by a well, then a backflow device is required on the private lateral connection. If a public water main does not front the property: 1. Extend public water main to front the parcel to be served, by public improvement plan process. This involves hiring an engineer to prepare plans, plan review and approval by the City, and construction by private contractor. The review and approval fees vary based on the scope of the project. 2. Follow procedure above for public water main fronting the property. •W 1. Per Code section 13.11.100 request approval of temporary water connection from City Council. 2. Pay $2,617 temporary water connection fee. 3. Obtain private easements over all other properties that the private lateral will cross from the water meter to the property receiving service. 4. Execute a recorded agreement to discontinue temporary service and reconnect at an appropriate point closer to the owner's parcel upon installation of a main that the City determines is the main from which the parcel should receive regular service. 5. Follow procedure above for public water main fronting the property. By definition, a temporary water connection is when a public water main is not adjacent to the property and other properties must be crossed to connect the private lateral to the main. Because the approval of temporary water laterals does not provide for the extension of the City's public water system, and does not allow for the installation of additional fire hydrants, and also because the long laterals are more prone to leakage and backflow related health issues, temporary connections are not encouraged and require case by case approval by the City Council. Situations in which the approval of temporary water connections would be recommended by staff would include when the property is located in an area with existing adequate fire protection, and in areas where future water main extensions are unlikely because there are few lots in the area to benefit from a main extension. 5 of 9 March 18, 2014 Item #5.1 Workshop on Water in the Old Coach Estates Neighborhood March 18, 2014 Page 6 The majority of the OCE parcels that do not have a water main adjacent to the property could obtain City water through a temporary water connection. Depending on the length of the private lateral and the topography of the lot, a pump may be needed to obtain adequate flow through the temporary connection. In order to be developed, some of the currently vacant lots may not qualify for a temporary connection and would have to extend the water main to provide adequate fire protection. The extension of the water main would eliminate the need for a temporary connection. Reclaimed Water The City of Poway continues to seek opportunities for expansion of the recycled (or reclaimed) water system both in the northern and southern areas of the City. Because a recycled water system requires its own separate piping ( "purple pipe "), building this dual infrastructure is cost intensive. As a result, expanding the current recycled water system is most achievable in partnership with another city or cities and with service planned for only large reclaimed water users requiring the water for irrigation and /or industrial use, which is the typical customer base for recycled water. However, rising water costs and continuing water supply issues could result in costs and challenges associated with recycled water being addressed in new, more cost - effective ways, thereby increasing possibilities for this water source. Historically, consideration of recycled water for north Poway has focused on five potential irrigation water users. The last detailed study done in 2000, indicated that these users had an estimated annual water requirement of 1,500- acre -feet per year. The upper range of infrastructure construction cost estimates totaled over $8 million for the City, not including pump stations and /or storage that might be required depending on final design. Additional costs required of private customers to modify their systems were not included in the study. The five identified irrigation water users in north Poway were StoneRidge Golf Course, Maderas Golf Course, Valle Verde Area, Old Coach Road Area, and Espola Road Area including Lake Poway and Poway High School. The City of San Diego's San Pasqual Water Reclamation Plant has been of interest to Poway as a potential source of recycled water. Staff from the two cities are regularly in contact to review updated possibilities. While San Diego has ended any plans for producing recycled water at the Plant, they are investigating possibilities for groundwater recharge, as the Plant sits atop a large groundwater basin. Use of water produced by this process would still require a substantial infrastructure investment to make it available in Poway. While San Diego's plans are not immediate, San Diego has expressed that it will consider Poway as a potential partner in its investigation of longer - term possibilities for this new water source. City of Poway staff is also in touch with the City of Escondido and the North County Water Reuse Coalition. The City of Escondido has been updating its Recycled Water Plan as part of a compliance effort. At this time, Escondido envisions expansion of their recycled water system primarily east in the vicinity of State Route 78 with a focus on agricultural irrigation. The North County Water Reuse Coalition has recently updated a 6 of 9 March 18, 2014 Item #5.1 Workshop on Water in the Old Coach Estates Neighborhood March 18, 2014 Page 7 master planning document that also includes the Escondido area. The City of Poway has requested to be included in this group's efforts should their project boundaries be expanded to the south. City Policies Regarding Water Almost all of the OCE neighborhood is zoned RR -A. Lot size and density in this zone vary depending on City water availability. In areas served by City water, the minimum lot size requirement is less than in areas where City water does not exist. It has been a long standing City policy to require that the extension of a water main to an area not currently served by City water, be privately funded (as was the case with The Heights development, east of OCE). The City of Poway's General Plan contains policies regarding the location of public facilities, including water mains, as they relate to the location of existing and planned development. General Plan policies emphasize water conservation and encourage the use of reclaimed water, when it is available. Summary The water main system that exists in the OCE neighborhood is consistent with City policy. It exists as a result of a privately funded assessment district with some initial funding paid by the City. A City water main is readily available to all but ten parcels in the neighborhood. Those ten parcels have options to obtain City water should they ever wish to pursue it. City staff is always available to discuss those options to any property owner considering connecting to City water. Environmental Review: The matter of this workshop is not subject to the California Environmental Quality Act (CEQA). Public Notification: Notice was sent to all property owners in the OCE neighborhood plus two individuals representing the Friends of Blue Sky that have expressed interest in this matter. Attachments: 1. Map of Old Coach Estates parcels and water mains 2. 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March 18, 2014 Item #51 AT-TAC-HUENT2 c`��y „HIV _lit Co TO: MEETING DATE: SUBJECT: L_J AFFIDAVIT OF MAILING NOTICE OF CITY COUNCIL PUBLIC MEETING CITY CLERK March 18, 2014 Workshop on Water Issues in Old Coach Estates Neighborhood LOCATION: City Council Chambers 13325 Civic Center Drive Poway, CA 92064 DATE NOTICES MAILED NUMBER MAILED: March 5, 2014 57 interested parties I declare under penalty of perjury under the laws of the State of California that I am employed by the City of Poway and the foregoing is true and correct. DEVELOPMENT SERVICES 7 c _tom cstk�_�� (Signature) -s-�4 (Date) SENT TO POWAY NEWS CHIEFTAIN FOR PUBLICATION VIA E -MAIL: ORDER NO. r PUBLICATION DATE: COPIES TO: I declare under penalty of perjury under the laws of the State of California that I am employed by the City of Poway in the City Clerk's Office and the foregoing is true and correct. Date: (Signature) Attachments: 1) Mailing List 2) Notice w /attachments 2770201700 770201100 770202600 ALBIN ANTHONY C &JENA B KAN MICHAEL K &JOSEPHINE W KYTASTY ANDREW &INGRID C FAMILY 2577 ARDATH RD P 0 BOX 22793 18372 DEER VALLEY ESTATES RD LA JOLLA CA 92037 SAN DIEGO CA 92192 POWAY CA 92064 2770202700 2770201600 2770201400 KYTASTY HELEN TR TOPP RONALD L TR 01/26/84 LEVY FAMILY 2012 TRUST 09 -04 -12 4264 BIONA PL 12032 ROYAL BIRKDALE ROW #B P 0 BOX 2515 SAN DIEGO CA 92116 SAN DIEGO CA 92128 FALLBROOK CA 92088 2771301900 2772301600 2771300200 CASTLE JOE &CYNTHIA B B A PARTNERS L L C SECTION H TRUST 10 -31 -08 P 0 BOX 500530 P 0 BOX 27324 18201 OLD COACH RD SAN DIEGO CA 92150 SAN DIEGO CA 92198 POWAY CA 92064 2772300400 2772301200 2772301300 B B A PARTNERS L L C B B A PARTNERS L L C B B A PARTNERS L L C P O BOX 27324 P O BOX 27324 P O BOX 27324 SAN DIEGO CA 92198 SAN DIEGO CA 92198 SAN DIEGO CA 92198 2772301400 2772301500 2770203200 B B A PARTNERS L L C B B A PARTNERS L L C SABIN C/O EXCEL REALTY HOLDINGS P 0 BOX 27324 P 0 BOX 27324 17140 BERNARDO CENTER DR #310 SAN DIEGO CA 92198 SAN DIEGO CA 92198 SAN DIEGO CA 92128 2770202000 2770802400 2770802500 MCNABB MARTIN L &SUSAN L BROWN FAMILY TRUST 05 -26 -10 KENNEDY FAMILY TRUST 08 -20 -99 16951 OLD ESPOLA RD 12819 CORTE DOROTEA P 0 BOX 28459 POWAY CA 92064 POWAY CA 92064 SAN DIEGO CA 92198 2770201500 2772300700 2772301000 CARTER REVOCABLE LIVING TRUST B B A PARTNERS L L C B B A PARTNERS L L C 14850 VALLEYVIEW RD P 0 BOX 27324 P 0 BOX 27324 POWAY CA 92064 SAN DIEGO CA 92198 SAN DIEGO CA 92198 2772300800 2772300900 2770202200 B B A PARTNERS L L C B B A PARTNERS L L C BRIED JAMES M FAMILY TRUST P 0 BOX 27324 P 0 BOX 27324 14940 OAK TRAIL CT SAN DIEGO CA 92198 SAN DIEGO CA 92198 POWAY CA 92064 2770202300 2772300100 2772300200 WIER JEROME &MARION FAMILY SABIN GARY B FAMILY TRUST 05 -20 -82 B B A PARTNERS L L C 14960 OAK TRAIL CT 17140 BERNARDO CENTER DR #300 P 0 BOX 27324 POWAY CA 92064 SAN DIEGO CA 92128 SAN DIEGO CA 92198 2771300100 2772300300 2771301000 MYERS LIVING REVOCABLE TRUST B B A PARTNERS L L C GILL GERALD W &TERESA M 18028 OLD COACH RD P 0 BOX 27324 18047 OLD COACH RD POWAY CA 92064 SAN DIEGO CA 92198 POWAY CA 92064 2771301500 - 2771300900 2772300500 TREMBLE THOMAS &PENELOPE VAPLON FRANK M B B A PARTNERS L L C 18049 OLD COACH RD 18055 OLD COACH RD P 0 BOX 27324 POWAY CA 92064 POWAY CA 92064 SAN DIEGO CA 92198 2770102100 MARASCIULLO PROPERTIES CALIFORNIA L P P 0 BOX 920 CONIFER CO 80433 2770101900 AKER LARRY T &HAZEL M 18101 OLD COACH RD POWAY CA 92064 2770102600 2771300500 BREED GARY S &PAMELA FAMILY TRUST MANGUM FAMILY TRUST 03 -30 -99 18108 OLD COACH RD 15684 OAKSTAND RD POWAY CA 92064 POWAY CA 92064 2770101200 2770101500 MONTELEONE FAMILY TRUST 07 -29 -98 AFFLECK RHETT L &KATHRYN M 18114 OLD COACH RD 13110 VIA DEL TORO POWAY CA 92064 POWAY CA 92064 2770101300 FISHER MARK R &NANCY R 18120 OLD COACH RD POWAY CA 92064 2771300600 NEW POINTE C/O SCOT SANDSTROM 16880 W BERNARDO DR #230 SAN DIEGO CA 92127 2770202900 KYTASTY ANDREW &INGRID C FAMILY 18372 DEER VALLEY ESTS POWAY CA 92064 2770201900 OSMUS LARRY D &JODY H 18550 WILD HORSE CREEK POWAY CA 92064 2772300600 B B A PARTNERS L L C P 0 BOX 27324 SAN DIEGO CA 92198 2770801100 SECTION H TRUST 10 -31 -08 18201 OLD COACH RD POWAY CA 92064 2770201300 AGEE GREG P REVOCABLE TRUST 130 S CEDROS AVE #200 SOLANA BEACH CA 92075 2771301100 SPIER MORRIS S &ALICE FAMILY 18107 OLD COACH RD POWAY CA 92064 2770101700 BITHELL TRUST 12 -05 -12 18112 OLD COACH RD POWAY CA 92064 2770101600 PURVIS MARITAL DEDUCTION 18118 OLD COACH RD POWAY CA 92064 2771301800 SAWZAK FAMILY TRUST 01 -07 -91 18151 OLD COACH RD POWAY CA 92064 2770202500 KYTASTY ANDREW &INGRID C FAMILY 18372 DEER VALLEY ESTATES RD POWAY CA 92064 2770203100 SABIN C/O EXCEL REALTY HOLDINGS 17140 BERNARDO CENTER DR #310 SAN DIEGO CA 92128 2770202400 2770202100 DAMARUS -MOORE LIM. PARTNERSHIP RUSCZYK LIVING TRUST 10 -13 -08 18555 WILD HORSE CREEK 20901 OLD JAPATUL RD POWAY CA 92064 ALPINE CA 91901 2770201000 ILLES RICHARD &BEVERLY A MARY GLASS BOB KIANG 18750 DEER VALLEY ESTS 1670 E EL NORTE PKWY #78 18150 VICEROY DRIVE POWAY CA 92064 ESCONDIDO CA 9 2027 SAN DIEGO CA 92128 COURTESY NOTICE OF CITY COUNCIL Tye PUBLIC MEETING c'rY •N THE Co This is to notify you, as an interested party, that the City Council of the City of Poway will hold a Public Meeting to consider the following item: A Workshop to discuss Water Issues in the Old Coach Estates neighborhood DATE OF MEETING: March 18, 2014 TIME OF MEETING: 7:00 p.m. LOCATION OF MEETING: City Council Chambers 13325 Civic Center Drive Poway, CA 92064 PROJECT NAME: Workshop on Water Issues in Old Coach Estates Neighborhood STAFF PLANNER: Steve Crosby EMAIL: scrosby @poway.org PHONE NUMBER: (858) 668 -4603 ANY INTERESTED PERSON may review the staff report for this item and obtain additional information at the City of Poway Development Services Department, 13325 Civic Center Drive, Poway, California, or by visiting the City's website at www.poway.org. If you wish to address this matter with the City Council you may appear in person at the above described meeting or submit your concerns in writing to the City Clerk, City of Poway. IF YOU WISH TO SPEAK at the meeting please fill out a speaker's slip, which are located at the back of the Council Chambers to the right of the door as you enter. The agenda, which gives the order of the meeting, is also located there. You must give the speaker's slip to the City Clerk prior to the meeting or prior to the subject item in order to be called to the podium to speak. If you have special needs requiring assistance at the meeting, please call the City Clerk's Office at (858) 668 -4530 at least 24 hours prior to the meeting so that accommodations can be arranged. Date of Mailing: March 5, 2014