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Ord 778ORDINANCE NO. 778 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING CONSERVATION ENFORCEMENT MEASURES FOR WATER CUSTOMERS; ESTABLISHING WATER ALLOCATION AND BASE USAGE CRITERIA; AND PROVIDING FOR FINES AND PENALTIES FOR WATER CUSTOMERS EXCEEDING WATER ALLOCATIONS OR BASE LEVEL USAGE WHEREAS, the City Council of the city of Poway (the "City Council ") recognizes that there is a need to develop alternative methods of encouraging water conservation to better ensure a reliable source of potable and raw water for its residents and customers, while at the same time finding ways to maintain sufficient revenues for the efficient and economical operation of the City of Poway's water enterprise; and WHEREAS, the City of Poway (the "City ") has previously adopted Chapter 8.94 ( "Chapter 8.94 ") of the Poway Municipal Code (the "Code "), with the intent of encouraging water use efficiency and conservation by its customers in the form of conservation and end use efficiency incentive measures through various options, primarily but not exclusively during times of extreme drought conditions; and WHEREAS, the conservation and end use efficiency incentive measures do not include incentives such as fines and penalties for excessive use of water by the City's customers, relying instead upon voluntary efforts of the customers at the risk of consumption that would result in the incurrence of established "blocks" of rates charged to its customers, which methods may not be the most effective measure for encouraging conservation and protecting against excessive consumption of potable water in unusual or extreme cases such as severe drought or sudden water enterprise infrastructure failures; and WHEREAS, the City Council has determined that additional alternative measures are required in order to enhance efforts to encourage water conservation and investments in end use efficiency on the part of the City's water utility customers, which alternative methods include the imposition of administrative fines and penalties for water utility customers exceeding an adopted base usage measurement of water consumed by each customer class during a billing cycle; and WHEREAS, in order to establish conservation goals and administrative fines and penalties the City Council must first establish them by ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES ORDAIN AS FOLLOWS: Section 1: Chapter 8.96 is hereby added to Title 8 of the Poway Municipal Code to read as follows: Ordinance No. 778 Page 2 8.96.010 Purpose. The purpose of this Chapter is to establish the framework for identifiable administrative fines and penalties that may be imposed by the City for customers of the City's water services whose consumption of water exceeds the amount allocated by the City Council for the billing cycle being charged. Fines and penalties collected may be used for any governmental purpose of the City; however, it is the intent of this chapter that the use of the fines and penalties collected should be the initial source of revenues to address State or regional water conservation mandates and directives. The imposition of the administrative fines and penalties are subject to those procedures established by Chapter 1.10, as amended from time to time, except as supplemented in this Chapter. The amount of administrative fines and penalties shall not exceed the amounts set forth in this Chapter, but because the City experiences varying degrees of water supply restrictions (due to, adversely, sustained drought conditions or, favorably, improvements in the supply of potable water as a result of successful conservation efforts and other conditions) they shall be based upon a determination of allocation or base level usage as set by resolution of the City Council from time to time and consistent with this Chapter. 8.96.020 Definitions. In addition to those terms previously defined in this Chapter, for the purposes of this Chapter, and for the purpose of any resolution to implement this Chapter, the following definitions shall apply: A. Administrative fine; administrative penalty. A fine or penalty imposed on the responsible party as an incentive measure, and as permitted by this ordinance, for water usage above the customer's water allocation, in the amount as may be adopted by the City Council by resolution. B. Administrative review. The procedures for imposing administrative fines and penalties as set forth in Chapter 1.10. Administrative review includes all procedures involving the appeal of the administrative fines or penalties charged, but shall not include any judicial review of a final decision. C. Allocation; water allocation. The amount by which a customer shall be limited in its use of raw, potable, or reclaimed water during any billing cycle, as determined by resolution of the City Council. D. Base level usage. An amount of water that is fixed by resolution of the City Council to be an allowable amount to be consumed by single - family or multi - family residential customers during any billing cycle and below which conservation is not required. Ordinance No. 778 Page 3 E. Billing cycle. The period of time that water is delivered to a customer through the City's water facilities. The billing cycle may be monthly, bi- monthly, or whatever period of time is established between the City and the customer by agreement. The billing cycle may be prorated based on the date of the opening or closing of account, including upon the termination of services following a "shut off" notice issued by the City. F. Conservation. Conservation refers to a temporary change in behavior of how water is used due to water use restrictions. Water use restrictions are often imposed due to a drought or other type of emergency that temporarily constrains supply availability. G. Customer. The party responsible (whether person, persons, or entity) for the payment of charges for water delivered by the City to the residence, business, or property. The customer does not need to own the property where the water is delivered. H. End use efficiency. End use water efficiency focuses on reducing water waste, not just restricting its use to establish conservation. For example, not flushing the toilet as often would be considered water conservation; replacing a 3.5 gallon /flush toilet with a 1.28 gallon /flush toilet would be considered water end use efficiency. I. Enforcement officer. The City Manager, the Assistant City Manager, the Director of Public Works, and the Director of Administrative Services, or any other person authorized by the City Manager to enforce the provisions of any City ordinance. J. Incentive measures. Incentive measures refer to policies that use economic penalties and /or economic benefits to encourage water users to make decisions sooner rather than later to invest in end use efficiency methods and /or to restrict current water use. K. Responsible party; party responsible. The customer, the property owner (if either arrangements are made between the property owner and the City, or if by law, allowing a lien to attach to the property), or such persons responsible for payment of water charges for the account. L. Unit of water. A unit of water is the equivalent of 748 gallons or 100 cubic feet (HCF). M. Variance. An exception to the allocated amount of water that may be consumed by a customer without incurring an administrative fine or penalty due to circumstances specifically related to the proper sanitation measures required in the home, for the health of either persons residing in the home or benefit from the daytime care of children or adults, although who are not residents. A variance may be limited in amount and in time, and is granted on a case -by -case basis. Ordinance No. 778 Page 4 8.96.030 Establishment of allocations and base level usage. A. Pursuant to this Chapter and Chapter 8.94 of the Poway Municipal Code, the City Council may, by resolution, establish a water allocation for each property served by the City. The City Council may also establish base level usage for single - family and multi - family residential customers by resolution. B. If the City establishes water allocation amounts or base level usage amounts, it shall provide notice of the allocation or base level usage by including it in the regular billing statement for the fee or charge or by any other mailing to the address to which the City customarily mails the billing statement for fees or charges for on -going water service. C. Following the effective date of the water allocation or base level amounts any customer using water in excess of the allocation applicable to the property, and which also exceeds the base level applicable to that customer, shall be subject to a penalty for each billing unit of water in excess of the allocation or the base level, whichever is greater. D. The penalty for excess water usage shall be cumulative to any other remedy or fee that may be imposed for violation of this Chapter or Chapter 8.94. 8.96.040 Establishment of administrative fines and penalties. A. It is a violation for any City water customer to use, and it is a violation for any responsible party to allow to be used, more than the water allocation and base level usage of water (as may be adjusted by an approved variance) for any billing cycle on any account. Any customer whose use exceeds the water allocation and base level usage of water (as may be adjusted by an approved variance) shall be subject to an administrative fine or administrative penalty that shall be set by a resolution of the City Council from time to time for excess of the water allocation and base level usage that is in effect at the time of the violation. B. Fines and penalties, if any, shall be in addition to water service fees the City imposes for water delivered to the meter. C. No administrative fine or administrative penalty shall exceed one hundred percent (100 %) of the amount of the volumetric water charges for the billing cycle on the account for which the customer or the responsible party is determined in violation of this Chapter. 8.96.050 Charge of administrative fines and penalties. Upon a determination that an administrative fine or penalty is chargeable by this Chapter the enforcement officer shall determine the amount, charge it to the customer's Ordinance No. 778 Page 5 account as a special charge, and include the fine or penalty on the customer's bill for the billing cycle in which the fine or penalty was incurred, all in accordance with Chapter 13.11. Receipt of a water bill with any administrative fine or penalty shall serve as notice of violation of the City's rules and regulations herein. 8.96.060 Administrative review of administrative fines and penalties. A. Any customer who wishes to appeal the imposition of an administrative penalty or fine imposed by the City under this Chapter shall comply with the following procedures: 1. The customer shall pay all amounts due and owing on his or her water bill, except for any disputed penalty(ies) imposed by the City pursuant to this Chapter to avoid interruption in service. 2. The customer shall submit an appeal request form to the Director of Administrative Services no later than fifteen (15) calendar days from the date that the customer's water bill for the billing cycle in which any penalty imposed is due. B. An appeal may be granted under the following limited circumstances: 1. The amount of water delivered to the customer's property did not violate the water allocation, as evidenced by a demonstrable malfunction in the meter serving the customer's property or a billing error by the City. 2. The customer demonstrates the water use is in accordance with a previously granted variance or, if the customer had not previously applied for a variance, that the use is in accordance with a subsequently approved variance applied for within ten (10) days following the billing date. 3. The customer demonstrates an undetected water leak occurred at his or her property during the billing cycle in which the penalty was imposed, resulting in water loss that did not benefit the customer, and notifies the City of such leak at least five days prior to the bill due date, and demonstrates that the leak has been repaired. C. The City shall respond to the appeal request within thirty (30) calendar days from receipt of the appeal request form. D. The decision of the Director of Administrative Services shall be final. E. If the appeal is not granted, the customer shall pay all the disputed penalties within ten (10) days of the date that the decision is mailed to the customer. F. Legal action must be commenced in accordance with Government Code section 53069.4(b) by filing a petition with the Superior Court within twenty (20) days of Ordinance No. 778 Page 6 the date that the final decision of the Director of Administrative Services is served on the customer. 8.96.070 Failure to pay administrative fines or penalties. Non- payment of any penalty or fine imposed pursuant to this Chapter shall be subject to the same remedies available to the City as for non - payment of basic water rates. Any administrative fines or penalties not paid, or not credited following any administrative review of the charge, shall continue to be charged to the responsible party until paid. No interest on the unpaid fines or penalties shall apply during any period of administrative review by the City. Upon a final determination of the amount of the fines or penalties, payments on any account shall first be applied to the administrative fines or penalties outstanding, in the order by which they were first charged, and the balance of any payment, following the full payment of fines and penalties, shall be applied to the outstanding balance of the customer's account. 8.96.080 Initiation and termination of water allocation; administrative fines or penalties. The City Council may initiate the implementation of water allocations or base level usage regulation from time to time by resolution. After implementation of water allocations or base level usage is initiated pursuant to this section, the City Council can, at any time, by resolution, terminate the implementation and cease imposing administrative fines or penalties for violation of this Chapter. 8.96.090 Water usage data. The City Council hereby determines that the public interest in providing water usage data to a customer for their property address clearly outweighs the public interest in not providing the information, when such information is for the purpose of allowing a customer to more accurately evaluate their water allocation, or for the purposes of appealing any administrative fine or penalty. Therefore the City Council hereby approves the release of any water usage data of a former customer at the property address of a current customer, section 6254.16 of the California Government Code notwithstanding. EFFECTIVE DATE: This ordinance shall be effective thirty (30) days following its passage and adoption. CERTIFICATION /PUBLICATION: The City Clerk shall certify the adoption of this Ordinance and cause it or a summary of it, to be published with the names of the City Council members voting for and against the same in the Poway News Chieftain, a newspaper of general circulation in the City of Poway within fifteen (15) days after its adoption and shall post a certified copy of this Ordinance in the Office of the City Clerk in accordance with Government Code § 36933. Ordinance No. 778 Page 7 Introduced and first read at a Regular Meeting of the City Council of the City of Poway held the 15th day of September 2015, and thereafter PASSED AND ADOPTED at a regular meeting of said City Council held the 6th day of October 2015. Steve Vaus, Mayor ATTEST: Sheila . Cobian, C C, City Clerk STATE OF CALIFORNIA ) ) SS COUNTY OF SAN DIEGO) I, Sheila R. Cobian, City Clerk, of the City of Poway, do hereby certify that the foregoing Ordinance No. 778, was duly adopted by the City Council at a regular meeting of said City Council held on the 6th day of October 2015, and that it was so adopted by the following vote: AYES: LEONARD, CUNNINGHAM, MULLIN, GROSCH, VAUS NOES: NONE ABSENT: NONE DISQUALIFIED: NONE i Sheila . Cobian, CIVIC, City Clerk City of Poway