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HomeMy WebLinkAbout2005 WATER MASTER PLAN AND FINANCING PLAN - AMEND ORDINANCE PROOF OF PUBLICATION CITSTATE OF CALIFORNIA NGT OF 4 •HUNTINGTON BEAN ` ss. LEGAL NOTICE COUNTY OF ORANGE } ORDINANdbythCE City 3743 Adopted by the.City Council on JULY 3, .r' 2006 "AN ORDINANCE OF'THE CITY OF HUNTINGTON, - I am a Citizen of the United States and a BEACH AMENDING CHAPTER,14 12 OF THE — HONTINGTON:BEACH• _ -- resident of,-the-County-aforesaid, I- amv-- MUNICIPALCODE: over the age.of eighteen years, and not a RELATING TO FEES. . -RATES AND DEPOSITS." party to or Interested in the below entitled SYNOPSIS: " THE WATER MASTER matter. I am a principal clerk of the - PLAN EVIEWE AND LAST REVIEWED AND 2000 HUNTINGTON BEACH INDEPENDENT UPDATED, IN CITY AND ADOPTED BY CITYj- COUNCIL, IN, APRIL1{ a newspaper of general circulation, 2001 '.BEGINNING IN 2004 STAFF AND, A CONSULTANT BEGAN -printed and published,,. in the City of WORK ON' ANOTHER, - UPDATE AND .REVIEW = Huntington^" Beach, County, of Orange,- OF THE MASTER PLAN THE PR0JE'CTSI. State of 'California, and that attached NANCING AND PLAN.HTHIS UPDATE WAS SUB- . Notice is a true and complete copy as STANTIVELY{OMPLET ED. IN LATE 2005. A was printed and published In the DRAFT- OF THE PLAN ' WAS PRESENTED TO Huntington Beach issue of said CITY COUNCIL AT- THE FEBRUARY.21, 2006, newspaper to wit the Issue(s) of: STUDYSESSION: ' THE,WMP IS {OM- PRISED OF SIX CHAP- TERS THAT EXAMINE AND ANALYZE VAR IOUS ASPECTS'OF THE CITY'S WATER SYSTEM AND ANY DEFICIENCIES THAT .'HAVE BEEN IDENTIFIED, TAKING JULY 1 3 2 O O 6 INTO ACCOUNT.THOSE / M'ASTER' PLAN PROJECTS THAT. HAVE ALREADY.'BEEN•=COM= - PLETED -: COPIES OF THIS ORDI-t NANCE- ARE AVAILABLE IN THE CITY'CLERK'S OFFICE: declare, under penalty of perjury; that PASSE° e N ° pp I{ ADOPTED:- by the ,City+ the foregoing is true and correct. Council i the ' f99{{ Huntington BeacW"at at a g regular meeting held June 19, 2006 by thei following roll.call vote: .i AYES: Bohr, Green, Executed on .JULY 1 3 2 O O 6 'Coerper; Sullivan, ;Har- / .dy,Hansen,Cook' ' NOES: •None at Costa Mesa, California. ABSENT:. None, This ordinance'is ef- fective`30..days after -y adoption. . CITY OF ' .'HUNTINGTON.BEACH -- '2000-MAIN STREET'. , HUNTINGTON BEACH,. Signature 'CA92648 , 714-536-5227 JOAN L.FLYNN, CITY CLERK Published Newport, Beach/Costa Mesa:Daily Pilot July.'13, 2006 072- 447 4 1 J _-8 Rd I 1: 35 a0 i 1 ♦; •., 6 bit Y°i. Tf Council/Agency Meeting eld: A-9 a(a ` Deferred/Continued tA��' 366 V Approved ❑ Conditionally Approved ❑Denied cityller r' Sig ure Council Meeting Date: 6/19/2006 Departme t Number: 06-028 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY C UNCIL MEMBERS SUBMITTED BY: PENEL PE�RETH- T, CITY INI TRATOR PREPARED BY: ROBERT F. BEARDSLEY, PE, DIRECTOR OF U LIC WORKS SUBJECT: Adopt 2005 Water Master Plan and Financing Plan and Amend Ordinance 3496 to Replace the 2000 Water Master Plan Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments) Statement of Issue: Beginning in 2004, staff and a consultant began work on an update of the Water Master Plan. A draft of the plan was presented to City Council at the February 21, 2006 Study Session. The final draft of this update was recently completed and the 2005 Water Master Plan and Financing Plan Update is presented for City Council approval. Funding Source: No funding is required. All revenues are deposited to the Water Master Plan Fund (507). Recommended Action: Motion to: 1. Adopt Resolution No. 2006-�*, adopting the 2005 Water Master Plan; 2. Adopt Ordinance No.37-JO , which would amend HBMC Sections 14.12.010 (d) and 14.12.040, in order to provide that Water Master Plan Capital Facilities Charge and Capital Surcharge monies shall be used for projects consistent with the goals and I objectives of the 2005 Water Master Plan, which are specifically identified in a resolution, and any amendment to same, adopted by the City Council; and 3. Adopt Resolution No. 2006- 31 , which identifies the specific water projects from the 2005 Water Master Plan upon which WMP Funds can be spent. Alternative Action(s): Do not adopt the 2005 WMP at this time and direct staff on how to proceed. REQUEST FOR COUNCIL ACTION MEETING DATE: 6/19/2006 DEPARTMENT ID NUMBER: 06-028 Analysis: The original WMP was adopted in 1988 as a tool to assist in planning for adequate water service to keep pace with growth and to correct system deficiencies. The plan was originally unfunded and was supplemented in 1990 and 1993. In 1995, the plan was updated and a financing plan was put in place to fund the identified capital projects on a pay-as-you-go basis. Specifically, funding was to be provided by: 1. A capital facilities charge on new residential development of $2,400 per each 3/-inch meter equivalent capacity installed, and 2. A capital surcharge that is charged on each monthly municipal services (water) bill. The capital surcharge was originally set at $3.00 per 3/-inch meter and was programmed to ramp up 50 cents each year to the current $5.50. The surcharge is scheduled to decrease to $2.00 on December 1, 2007. The $2.00 charge is intended to remain in perpetuity to provide operations and maintenance funds for the Master Plan facilities constructed. The WMP was last reviewed and updated in 2000 and adopted by City Council in April 2001. Beginning in 2004, staff and a consultant began work on another update and review of the Master Plan, the projects therein, and the Financing Plan. This update was substantively completed in late 2005. A draft of the plan was presented to City Council at the February 21, 2006, study session. The WMP is comprised of six chapters that examine and analyze various aspects of the City's water system and any deficiencies that have been identified, taking into account those Master Plan projects that have already been completed: 1. City Characteristics and Projected Growth 1. Water Demand 2. Water Supply 3. Water System Facilities and Operation 4. Water Storage and Emergency Supply 5. Water Distribution Chapter 7 focuses on the Financing Plan and the remaining projects along with revised cost estimates. Based on current cost estimates and projected revenue, a shortfall in funding of $3,627,000 is projected. The main reason noted for the shortfall is the recent sharp increase in construction costs. Three alternative solutions for addressing the shortfall are noted. 1. Adopt the WMP as presented, closely monitor project cost and revenue and revisit the shortfall issue by mid-2007 and make any appropriate policy and/or financial adjustments at that time. 2. Suspend the surcharge decrease by one year. By suspending the scheduled December 1, 2007 surcharge decrease of $5.50 to $2.00 by one year, sufficient revenue to meet the shortfall will be realized. 3. Eliminate some scheduled projects or consider alternative funding sources. G:\R C A\2006\06-028 May 15 Adopt 2005 Water Master Plan.doc -2- 6/5/2006 11:34 AM REQUEST FOR COUNCIL ACTION MEETING DATE: 61l9/2006 DEPARTMENT ID NUMBER: 06-028 Because of the current volatility of construction costs, staff and the consultant recommend Alternative 1. If it is determined in mid 2007 that there is still a shortfall in the WMP, then it is recommended that staff explore using the Water Fund to pay for the relatively small amount of remaining project work. In addition to the update of the Master Plan, and in conjunction with the process, a Water Security Plan was completed. The Water Security Plan was undertaken based on an Environmental Protection Agency mandated and grant funded Water System Vulnerability Assessment completed by the City in 2003. While the plan outlines security improvements to City's water system facilities, these improvements have not been included in the WMP and will instead be funded through the City's Water Fund. Public Works Commission Action: The Public Works Commission reviewed the final draft as an informational item on April 19, 2006. The Commission determined that a recommendation of support to the City Council was appropriate on a 6-0-1 vote (Scheid absent). Environmental Status: Not applicable. Implemented projects will comply with the California Environmental Quality Act. Attachment(s): City Clerk's . - Number No. Description 1. Resolution No. 20060 to adopt the 2005 Water Master Plan 2. Ordinance No.3 113 amending HBMC Section 14.12.010 (d) and 14.12.040 3. Resolution No. 2006-31 , identifying specific water projects upon which WMP Capital Facilities Charge and Capital Surcharge monies can be expended 4. Executive Summary— 2005 Water Master Plan 5. PowerPoint Presentation G:\R C A\2006\06-028 Jun 19 Adopt 2005 Water Master Plan.doc -3- 6/12/2006 10:01 AM ATTACHMENT # 1 Resolution No. 2006-30 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AND ADOPTING THAT CERTAIN REPORT ENTITLED "2005 WATER MASTER PLAN AND FINANCING PLAN UPDATE,CITY OF HUNTINGTON BEACH" WHEREAS,at its meeting of June 19 , 2006,the members of the City Council of the City of Huntington Beach were requested by City staff to approve that certain report entitled"2005 Water Master Plan and Financing Plan Update, City of Huntington Beach" (sometimes referred to as"2005 Water Master Plan"and"Plan"), which Plan was prepared by the Irvine,California engineering firm of Tetra Tech ASL; and The 2005 Water Master Plan, as a planning study for possible future actions that the City Council has not approved, adopted or funded and that does not have a legally binding effect on latter activities, is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15262.; and The City Council, at an earlier study session, reviewed the 2005 Water Master Plan,and said Plan was distributed to and reviewed by the City's Public Works Commission on April 19, , 2006. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach as follows. 1. That certain report entitled "2005 Water Master Plan and Financing Plan Update,City of Huntington Beach," prepared by the Irvine, California engineering firm of Tetra Tech ASL, is hereby approved and adopted; and said plan is further approved for use and implementation by the City's staff. 2. The 2005 Water Master Plan shall supercede the City Council's approved 2000 Water Master Plan. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19th day of June , 2006. m Mayor REVIEWED AND APPROVED: OVED AS TO FORM: 1ty AdmA istrator Ci Attorney v 1 ► S 3� aw nD APPROVED: e7j Director of Public Works 06reso/water master/5/31/06 Res. No. 2006-30 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) 1, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular meeting thereof held on the 19th day of June, 2006 by the following vote: AYES: Bohr, Green, Sullivan, Hardy, Hansen, Cook NOES: None ABSENT: Coerper ABSTAIN: None Cit lerk and ex-officio rk of the City Council of the City of Huntington Beach, California ATTACHMENT #2 ORDINANCE NO. 3 7 4 3 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 14.12 OF THE HUNTINGTON BEACH MUNICIPAL CODE RELATING TO FEES, RATES AND DEPOSITS The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION I. The last paragraph following subsection(d) of Section 14.12.010 of the Huntington Beach Municipal Code, is hereby amended to read as follows: 14.12.010 Service fee. For uses zoned commercial or industrial, the Water Department, as a condition to granting the application and furnishing water service to the premises, is authorized to charge and shall collect in advance the following sums for the purpose of reimbursing the City for the cost of the system and future replacements and extensions thereof: (3302-11/95) (a) The sum of sixty dollars ($60) for each usable unit on parcels containing less than ten thousand(10,000) square feet. A "usable unit" shall be each residential quarter in hotels and motels. (3302-11/95) (b) For any parcel containing ten thousand (10,000) square feet of area or more, three hundred dollars($300) per acre or fraction thereof, or sixty dollars ($60) per usable unit, whichever is greater. (3302-11/95) A "usable unit shall be any unit defined in subsection (a)above. The charge of three hundred dollars($300) per acre shall apply to all commercial and manufacturing developments. (3302-11/95) (c) Those areas served by a water main constructed and charged as determined by another ordinance or executed agreement may be exempt from the usable unit charge in subsection(a) if said other ordinance or agreement charge is greater than the charge per subsection(a). (3302-11/95) (d) All necessary service fees established by the City shall be deposited with the City prior to approval of the final subdivision map or issuance of a building permit if a subdivision map is not required. (674-12/57,723-6/59, 1001-10/63,1100-12/64,2022-1/76,2535-3/82) For uses zoned other than commercial or industrial, the Water Department, as a condition to granting the application and furnishing water service to the premises, is authorized to charge and shall collect in advance the Capital Facilities Charge for the purpose of reimbursing the City for the cost of the system and future replacements and extensions thereof. The Capital Facilities Charge is based on the cost per equivalent dwelling unit(EDU)of existing facilities and the proposed expansion facilities which shall be set by a resolution of the City Council. All monies collected as the Capital Facilities Charge shall be used for water projects that are consistent with the goals and 06ord/chap 14-12 1 Ord. No. 3743 objectives of the 2005 Water Master Plan but which projects are specifically identified in a resolution, and any amendment thereto, adopted by the City Council. (3302-11195,3496-5/01) SECTION 2. Section 14.12.040 of the Huntington Beach Municipal Code is hereby amended to read as follows: 14.12.040 Water rates--Designated. The water rates to be charged monthly and collected monthly or bimonthly, as may be determined by the City, shall be set by a resolution of the City Council. A Capital Surcharge to be charged monthly as may be determined by the City shall be set by resolution of the City Council. All monies collected as the Capital Surcharge shall be used for water projects that are consistent with the goals and objectives of the 2005 Water Master Plan but which projects are specifically identified in a resolution, and any amendment thereto, adopted by the City Council. (3302-11/95,3496-5/01) The water rates, plus a ten(10%) percent surcharge, shall be applicable to areas outside the boundaries of the City of Huntington Beach, wherever the City serves water, including Sunset Beach, an unincorporated area, and Surfside, located within the City of Seal Beach. (674-12/57,751-4/60,892-4/62, 1100-12/64, 1217-7/66,Urg 1343-A-8/67, 1344-9/67,1901-4/74, 1996-8/75,2205-7/77,2218-11/77,Urg 2709-6/84,2826-5/86,2948-8/88,3119-7/91) SECTION 3. All other sections of Chapter 14.12 of the Huntington Beach Municipal Code not amended hereby shall remain in full force and effect. SECTION 4. This ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 3rd day of July 12006 GGc., Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney REVIEWED AND APPROVED: INITIATE ND APPROVED: City Administrator Director of Public Works 06ord/chap 14-12 2 Ord. No. 3743 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN,the duly elected,qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven;that the foregoing ordinance was read to said City Council at a regular meeting thereof held on the 19th day of June,2006,and was again read to said City Council at a regular meeting thereof held on the 3rd day of July,2006, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Bohr, Green, Coerper, Sullivan, Hardy, Hansen, Cook NOES: None ABSENT: None ABSTAIN: None I,Joan L,Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on July 13,2006. In accordance with the City Charter of said City Qm4i Joan L. Flynn,City Clerk City Verk and ex-officio Cl Deputy City clerk of the City Council of the City of Huntington Beach, California ORDINANCE NO. LEGISLATIVE DRAFT Chapter 14.12 FEES, RATES AND DEPOSITS (674-12/57,723-6/59,738-12/59,751-4/60,792-10/60,892-4/62, 1001-10/63, 1 1 00-1 2164, 1217-7/66,Urg 1343-A-8/67, 1344-9/67, 1901-4/74, 1927-8/74, 1996-8/75,2020-12175,2022-1/76,2205-7/77,2218-11/77,2400-11/79,2535-3/82,2589-1/83,2709-6/84, 2826-5/86,2948-8/88,3119-7/91,3302-11/95,3404-10/98,3496-5/01) Sections: 14.12.010 Service fee 14.12.020 Installation and meter fees 14.12.030 Installation by applicant 14.12.040 Water rates--Designated 14.12.045 Water rates--Budget 14.12.050 Water rates--Construction purposes 14.12.060 Water rates--Other uses 14.12.070 Private fire service rates 14.12.080 (Repealed Urg Ord 2709-6/84) 14.12.090 Water service--Applications 14.12.100 Water service--Turn-on charges 14.12.110 Water rates--Turn on 14.12.120 Water billing 14.12.130 Vacating premises 14.12.140 Change of address 14.12.150 Renewing service 14.12.160 Adjustment of rates 14.12.170 Water fund 14.12.010 Service fee. For uses zoned commercial or industrial,the Water Department, as a condition to granting the application and furnishing water service to the premises, is authorized to charge and shall collect in advance the following sums for the purpose of reimbursing the City for the cost of the system and future replacements and extensions thereof: (3302-11/95) (a) The sum of sixty dollars ($60) for each usable unit on parcels containing less than ten thousand (10,000) square feet. A "usable unit" shall be each residential quarter in hotels and motels. (3302-11/95) (b) For any parcel containing ten thousand (10,000) square feet of area or more,three hundred dollars ($300)per acre or fraction thereof, or sixty dollars ($60)per usable unit,whichever is greater. (3302-11/95) A "usable unit" shall be any unit defined in subsection (a) above. The charge of three hundred dollars ($300)per acre shall apply to all commercial and manufacturing developments. (3302-11/95) legisdrft/N40412-LD 1 (c) Those areas served by a water main constructed and charged as determined by another ordinance or executed agreement may be exempt from the usable unit charge in subsection (a) if said other ordinance or agreement charge is greater than the charge per subsection(a). (3302-11/95) (d) All necessary service fees established by the City shall be deposited with the City prior to approval of the final subdivision map or issuance of a building permit if a subdivision map is not required. (674-12/57,723-6/59, 1001-10/63, 1100-12/64,2022-1/76,2535-3/82) For uses zoned other than commercial or industrial, the Water Department, as a condition to granting the application and furnishing water service to the premises, is authorized to charge and shall collect in advance the Capital Facilities Charge for the purpose of reimbursing the City for the cost of the system and future replacements and extensions thereof. The Capital Facilities Charge is based on the cost per equivalent dwelling unit(EDU) of existing facilities and the proposed expansion facilities which shall be set by a resolution of the City Council. All monies collected as the Capital Facilities Charge shall be used for water projects W-hie that are consistent with the goals and objectives of the 2-ON 2005 Water Master Plan but which projects are specifically identified in a resolution, and any amendment thereto, adopted by the City Council. (3302-11/95,3496-5/01) 14.12.020 Installation and meter fees. In addition to the fee set forth in Section 14.12.010(a),the Water Department shall charge and collect in advance the following amount for the installation of water connections and meters: a sum equal to the actual cost of labor and material in laying such service line, including the cost of the meters, the cost of replacing pavement, plus fifteen (15%)percent for overhead. The cost of such installation shall be estimated by the Water Department, and such estimated cost shall be paid by the applicant to the Water Department before the work of connecting the main with the property is commenced. Whenever the estimated cost is not sufficient to cover the total expense for labor, material, meters and overhead, the deficit shall be charged to the property for which such installation was made and paid by the owner thereof. Any excess payment shall be returned to the person applying for installation. (674-12/57, 1996-8/75) 14.12.030 Installation byqpplicant. The Water Superintendent may in his discretion authorize an applicant to make the installation at applicant's own cost, and in conformity with the specifications set forth by the Water Department. (674-12/57) 14.12.040 Water rates--Desi ng ated. The water rates to be charged monthly and collected monthly or bimonthly, as may be determined by the City, shall be set by a resolution of the City Council. A Capital Surcharge to be charged monthly as may be determined by the City shall be set by resolution of the City Council. All monies collected as the Capital Surcharge shall be used for water projects• e that are consistent with the goals and objectives of the 2000-2005 Water Master Plan but which projects are specifically identified in a resolution, and any amendment thereto, adopted by the City Council. (3302-11/95,3496-5/01) The water rates, plus a ten (10%)percent surcharge, shall be applicable to areas outside the boundaries of the City of Huntington Beach, wherever the City serves water, including Sunset Beach, an unincorporated area, and Surfside, located within the City of Seal Beach. (674-12/57, 751-4/60,892-4/62, 1100-12/64, 1217-7/66,Urg 1343-A-8/67, 1344-9/67, 1901-4/74, 1996-8/75,2205-7/77,2218-11/77,Urg 2709-6/84,2826-5/86,2948-8/88,3119-7/91) legisdrf/MC 1412-LD 2 14.12.045 Water rates--Budget. It shall be the policy of the City that a balanced budget shall be maintained for the water fund. Pursuant to Section 602 of the Charter of the City of Huntington Beach, the City Administrator shall be required to submit said water fund budget in a balanced condition to the City Council, together with the other budget submittals. The water rate adjustment necessary to maintain a balanced budget shall be incorporated as part of the annual budget which shall modify the rates as set forth in Section 14.12.040 of the Huntington Beach Municipal Code upon adoption of the budget. For the purpose of this Section, "balanced budget" shall mean that total appropriations for operating expenses do not exceed total estimated revenues in the annual budget of the water fund. Operating expenses shall include appropriations for the depreciation cost of those capital improvements customarily provided for in the operating budget and in accordance with generally accepted accounting principles. Revenues shall exclude bond proceeds, if any, but include interest earnings and other nonoperating revenue in accordance with generally accepted accounting principles. (Urg 2709-6/84) 14.12.050 Water rates--Construction purposes. All construction water shall be taken from existing outlets designated by the Water Department or from special outlets installed at the expense of the consumer. If in the determination of the Water Department, the setting of a meter is impracticable or uneconomical for the supply of construction water, the charge for such unmetered water shall be set by a resolution of the City Council. (674-12/57,792-10/60, 1996-8/75, 2535-3/82, Urg 2709-6/84,2948-8/88) 14.12.060 Water rates--Other uses. Water used for any purpose not hereinbefore enumerated, or for schools, hospitals and similar uses, shall be furnished and charged for either at meter rates or at a special rate to be fixed by the City Council under separate agreement with the consumer. (674-12/57) 14.12.070 Private fire service rates. The monthly rate for private fire service protection shall be set by a resolution of the City Council. (674-12/57,751-4/60,2948-8/88) 14.12.090 Water service--Applications. All applications for water must be made out on forms provided by the Water Department and must be signed by the applicant or his or her agent. All applicants must deposit with the Water Department a fee established by resolution of the City Council as a guarantee that all water bills, fines and penalties shall be paid by the applicant. The City Treasurer shall waive the deposit upon a showing of creditworthiness by the applicant as determined by the City. (3404-10/98) The deposit shall be returned to the applicant, without interest, at the time water service is discontinued provided that applicant has not left unpaid any water bill, fine or penalty. Such unpaid water bill, fine or penalty shall be deducted from the applicant's deposit and the balance thereof, if any, shall be refunded to the applicant at his or her last known address. (674-12/57, 2020-12175,2508-11/81,3404-10/98) 14.12.100 Water service--Turn-on charges. No charge shall be made for the transfer due to change of ownership or occupancy. Where the owner or occupant requests temporary turnoff of water service, a charge of five dollars ($5) shall be made for restoring the water service to the premises. (697-12/57, 1996-8175) legisdrft/MC 1412-LD 3 14.12.110 Water rates--Turn on. Whenever the distribution line of the municipal water system shall be duly connected with the premises of any person, and the water turned on such premises, the charge for water shall be a charge against the person in possession of the premises who used the water, and the charges shall continue so long as the water is turned on to the premises, whether the same is actually used or not. (674-12/57) 14.12.120 Water billing. All water bills are due upon presentation and are payable at the Office of the Treasurer of the City of Huntington Beach, or his authorized agent. Bills are deemed presented if addressed to the water customer at the address shown on the records of the City Treasurer and deposited with the United States mail service,postage prepaid. Accounts which remain unpaid thirty(30) days thereafter are delinquent. A notice of final billing shall be mailed to each delinquent account specifying a date by which full payment is due. Said final billing shall include a late fee imposed to recover billing and mailing costs, set by resolution of the City Council. Water service for delinquent accounts shall be shut off until all outstanding bills, fees, utility taxes and penalties have been paid. When the supply of water has been shut off for nonpayment or a violation of any ordinance or of any rule or regulation, service shall not be resumed until a turn-on fee, as set by resolution of the City Council, has been paid. (674-12/57, 1996-8/75,2400-11/79, 2589-1/83) 14.12.130 Vacating premises. Whenever a consumer shall vacate any premises,he shall immediately give written notice thereof to the Water Department. Upon the receipt of such notice, the department shall read the water meter, shut off the water from the premises and immediately present the consumer all unpaid bills for water furnished by the City to him up to that time. Thereupon the consumer shall pay said bills to the Water Department. In the event that the consumer shall have made a deposit with the department, as required in Section 14.12.090, the balance, if any, of such deposit shall be returned to the consumer after deducting therefrom the amount of said bills. Until such notice and payments shall have been made, the premises shall be deemed occupied by the consumer and his liability continued. (674-12/57) 14.12.140 Change of address. Failure to receive mail will not be recognized as a valid excuse for failure to pay water rates when due. Change in occupancy of property supplied with City water, and changes in mailing addresses of consumers of City water must be filed in writing at the Water Department on forms provided for that purpose. (674-12/57) 14.12.150 Renewing service. Each owner or occupant of any premises previously connected with the City water system desiring to renew the use of water shall make application for renewal of water service and upon payment of all unpaid charges, if any,together with any turn-on charge imposed by Section 14.12.100, the water will be turned on. (674-12/57) 14.12.160 Adjustment of rates. The Council shall have the sole power to grant rebates from the rates specified in this chapter to indigent persons, and in the event of any dispute as to the water rate to be paid by any consumer, it shall determine the same. (674-12/57) 14.12.170 Water fund. All moneys collected from fees and charges under Chapters 14.04 through 14.20 of the Huntington Beach Municipal Code shall be deposited in the treasury of the City in a water fund and annually there shall be disbursed from said water fund to the general fund, an amount equal to fifteen (15%)percent of the gross revenue received from the sale of water by the Water Department in lieu of franchise and property taxes. (738-12/59,1927-8/74) legisdrft/MC 1412-LD 4 ATTACHMENT #3 Resolution No. 2006-31 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH IDENTIFYING THE SPECIFIC WATER PROJECTS FROM THE APPROVED 2005 WATER MASTER PLAN ON WHICH CAPITAL FACILITIES CHARGE MONIES AND CAPITAL SURCHARGE MONIES CAN BE EXPENDED WHEREAS, on , unt- 9 , 2006, the City Council of the City of Huntington Beach gave a first reading to Ordinance No. 3743 ; which ordinance would amend Huntington Beach Municipal Code Sections 14.12.010(d) and 14.12.040 to provide that monies collected from the Capital Facilities Charge and Capital Surcharge shall be expended on water projects that are consistent with the goals and objectives of the City Council- approved 2005 Master Water Plan, but which projects are specifically identified in an implementing resolution adopted by the City Council; and The 2005 Water Master Plan, as a planning study for possible future actions that the City Council has not approved, adopted or funded and that does not have a legally binding effect on latter activities, is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15262.; and On June 19 , 2006, the City Council, by the adoption of Resolution No. 20 0 6--4 p , adopted and approved the 2005 Water Master Plan; On T„ n 3 , 2006, it is expected that the City Council will give a second reading and formally enact into law Ordinance No. 3743 ; which-ordinance will become effective thirty(30) days after its passage; Ordinance No. 3 7 4 3 requires that this implementing resolution also be adopted by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach as follows: 1. The effective date of this resolution shall be August 02 , 2006. 2. From and after the effective date of this resolution, Capital Facilities Charge monies and Capital Surcharge monies may be expended on the list of water projects contained within the approved 2005 Water Master Plan; which list is attached hereto as Exhibit A and incorporated herein by reference. 3. If any of the water projects listed on Exhibit A are deleted or changed, or if other water projects, not presently listed, are proposed to be added to the list, such changes shall be memorialized by an amendment to this resolution. 06reso/2006 water'5131/06 I Resolution No. 2006-31 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 19 th day of June , 2006. Mayor REVIEWED AND APPROVED: APPROVED AS TO FORM: ft-a' C'. y Adm istrator C ty Attome 5 � S. r.pL TIATE AND APPROVED: Director of Public Works 06reso/2006 water/5/31/06 2 EXHIBIT A i Executive Summary Table E-1. Schedule of Remaining Water Master Plan Projects to be Paid For from Security NA Improvements $588 $161 $749 Beach Blvd and #1&#15 Downtown $88 $687 $775 Pipeline Improvements $59 $457 $516 Well 13 Chlorination #2 Upgrades $250 $250 Energy Backup #5 Wells 6,9,& 10 $288 $2,240 $2,528 Pipeline Corrosion I #8&#9 &lI $2,800 $2,800 Pipeline Corrosion #10& 11 III&IV $150 $242 $5,784 $6,176 #12 Well13 $237 $2,611 $2,848 Southeast Reservoir #13 &BPS $100 $1,479 $17,402 $18,981 SE Reservoir #14 Transmission Main $662 $6,675 $7,337 n Fire Protection w #16 Im rovements $127 $991 $1,118 Cast Iron Main #17 1 Replacement $823 1 $5,710 1 $867 1 $5,930 1 $13,331) Total $3,638 $1,610 1 $8,933 1 $4,304 1 $14,846 1 $24,077 $57,408 The financial analysis finds that the cash balance in the Water Master Plan Fund plus annual revenues may not be sufficient to pay for all remaining master plan projects and O&M expenses related to these capital projects. At the end of the analysis period, 2010/11, the Water Master Plan Fund could potentially have a negative ending balance of$10,269,000 as shown in Table E-2. The potential negative ending balance results from current costs being higher than original budget estimates, which is attributable to a number of factors including substantial increases in the costs of `- materials,contract staffing for design and inspection,and unknown and unclear field conditions. However, considering that $34.7 million has been spent to date on water master plan projects since 1995 and an estimated $57.4 million remains to complete all master plan projects by 2010/11, the estimated potential shortfall of$10.3 million only translates to an overrun of approximately 13% over 15 years. Also, the estimated shortfall of $10.3 million may be significantly reduced because some of the scheduled cast iron main replacements may be accomplished via development projects, and because pipeline corrosion control project costs may be reduced as a result of innovative and modern corrosion control technologies. CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan Update E-9 Res. No. 2006-31 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) 1, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular meeting thereof held on the 19th day of June, 2006 by the following vote: AYES: Bohr, Green, Sullivan, Hardy, Hansen, Cook NOES: None ABSENT: Coerper ABSTAIN: None City Gerk and ex-officio C61rk of the City Council of the City of Huntington Beach, California ATTACHMENT #4 `V 2005 Water Master Plan Financingand For the City of Huntington Beach 3 TETRATECH, INC. in association with Bartle Wells Associates Executive Summary E.1 Purpose The purpose of this report is to update the City's water master plan and water financing plan, which were last updated in December 2000 and in February 2001,respectively. In conjunction with the 2005 Water Master Plan and Financing Plan, a 2005 Water System Security Plan was prepared by Tetra Tech and was submitted to the City as a separate report in January 2005. The Water Master Plan evaluates water system performance and facilities for the planning period 2005 through 2025. The project includes the evaluation of City growth, water demands, water use efficiency, water supply, proposed new water quality regulations, water storage, emergency water supply, and water system distribution. The Water Financing Plan evaluates the costs, scheduling and financing of projects remaining to be paid for in the City's Water Master Plan Capital Improvement Program (CIP). These projects were recommended in previous City water master plans. E.2 City Characteristics and Projected Growth Of the 17,231 acres of land within the City boundaries, only 3% of the City remains as vacant land (520 acres). Of this vacant land, approximately 25%is zoned residential,24%is zoned industrial, and 18% is zoned open space parks. It is estimated that all of this land will be developed ultimately with the exceptions of land to be left vacant per City Specific Plans and vacant land in the open space conservation category. The City's population is projected to increase from 198,043 in 2004 to 222,274 in 2025 (12.2%),with total dwelling units(DUs)increasing from 77,221 to 80,297(4.0%). The percentage of vacant DUs in the City has been 2.65% since the year 2000. The number of people per occupied DU (population density) was 2.63 in 2004. If it is assumed that the vacancy percentage remains 2.65% in 2025, then the population density would increase to 2.84 in 2025, an 8.0%increase. E.3 Water Demand Historical Water Demands City water demands have not changed significantly over the past decade even though development has occurred and the City's population has increased during this time. City potable water supply for the 8 water years 1996/97 through 2003/04 averaged 34,462 acre feet per year(afy). Note that a water year is July through June, whereas the City's fiscal year is October through September. For this same period, City water consumption as developed from City billing records averaged 32,266 afy. Unaccounted-for water, which is the difference between water supply and water consumption and represents"lost"water,averaged 2,197 afy(6.4%of water production). Unaccounted-for water was 9.9% in 1995/96, but has averaged 6.4% since 1996/97. The decrease in unaccounted-for water can be in part attributed to a leak detection survey conducted for the City in 1996/97. The California Urban Water Conservation Council recommends a complete distribution system audit if unaccounted-for water exceeds 10%. With the City currently averaging a little over 6%,an audit is not needed. CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-1 Executive Summary Total water use per person in the City has historically been less than total water use per person in Orange County. For comparison, the City averaged 164 gallons per capita per day (gpcd) from 1996/97 through 2003/04 compared with 208 gpcd for the Municipal Water District of Orange County (MWDOC) service area (all of Orange County not including the cities of Anaheim, Fullerton, and Santa Ana). Existing and Projected Water Demands City potable water supply averaged 21,250 gallons per minute (gpm),which is 34,300 afy, over the 5- year period 1999/00 through 2003/04 and this could be taken to be the average water demand for the City's "Existing System". Per capita water use for this 5-year period was 158.5 gpcd. However, City per capita water use has been higher in past years when there was low rainfall. In 1990/91, the fifth year of a 6-year drought, City per capita demand was 170 gpcd. In 1996/97, the second of two consecutive low to moderate rainfall years, City per capita demand was 172 gpcd. For the purpose of analysis,City potable water demands were increased 8.5%to 23,100 gpm(37,200 afy)for the Existing System in order to evaluate water system performance during low rainfall periods. Water demands for the year 2025, which represents the Ultimate System for the planning period, are estimated to increase 6.4%to 24,800 gpm (39,900 afy)by estimating that all developable vacant land will be developed and by increasing residential water demands by 4.0% to account for the projected 8.0%increase in population density. Maximum-day demand factors, which are the ratios of the maximum-day demand to the average day demand, were estimated to be 1.8 for the entire system and 2.7 for the 800-acre Reservoir Hill area that constitutes Zone 2 of the water system. The peak-hour demand factors,which are the ratios of the peak hour demand to the average demand,were estimated at 2.8 for the entire system and 4.7 for Zone 2. These demand factors are slightly higher than the factors developed for the 2000 Water Master Plan based on new demand information. Water Use Efficiency The City became a Signatory to the Memorandum of Understanding Regarding Best Management Practices for Urban Water Conservation (Urban MOU) in September 2000. The California Urban Water Conservation Council (CUWCC) has responsibility for monitoring implementation of the Urban MOU. MWDOC, as a regional wholesaler of imported water, implements many of the Best Management Practices (BMP) on behalf of its member agencies including the City. As Signatory to the Urban MOU, the City has committed to using Good Faith Efforts to implement 14 current BMPs. As a result City water conservation efforts, a downward trend in City water consumption can be seen especially in regard to residential per capita water consumption. From 2000/01 through 2003/04, residential per capita water demand averaged 106.5 gpcd, which is 5% less than in 1999/00 (112 gpcd) and 7%less than in 1996/97 (115 gpcd). The downward trend in residential water use can be attributed in part to water conservation programs undertaken by the City including public information programs, school education programs, water survey programs, and plumbing fixture retrofits. City commercial and industrial water demand decreased approximately 17%from 1996/97 to 2003/04. Decreased water use for the Commercial and Industrial billing categories can be attributed in part to the City's participation in regional commercial, industrial, and institutional water-use efficiency programs. However, the predominant reason for this decrease is the gradual implementation by the CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-2 Executive Summary City over the past decade of dual meters in place of single mixed-use meters for commercial and industrial accounts as well as public and multi-family residential accounts. In using dual meters, one meter is dedicated to measuring irrigation water use under the Irrigation billing category with the second meter dedicated to measuring internal water use. The City is employing dual meters in order to better account for and monitor irrigation water use. In implementing dedicated irrigation meters, water use as measured in the Municipal and Irrigation billing categories is slightly increased over this same period. Municipal accounts include all City parks. EA Water Supply City water supply has historically come from groundwater production and from supplemental, treated, imported water purchased from the MWDOC, which is a member agency of the Metropolitan Water District of Southern California(MWD). As a member agency of Orange County Water District (OCWD), the City is entitled to groundwater from the Orange County Groundwater Basin. The City and other basin producers pay a Replenishment Assessment (RA) to OCWD for all groundwater produced up to a percentage of the producer's total water supplies used to meet demands. This is called the Basin Production Percentage (BPP), which is set uniformly for all producers. For 2003/04, OCWD lowered the BPP from 75%to 66%and increased the RA from $127/acre feet(af) to $149/af. For 2004/05,the BPP was unchanged but the RA was increased to $172/af. OCWD further increased the RA to $205/af and further decreased the BPP to 64%for 2005/06. The intent of these changes is to lessen groundwater pumping in order to increase basin groundwater levels. It benefits the City to use groundwater up to the maximum allowable BPP because groundwater is less expensive and considered to be more reliable than imported water. City groundwater production cost approximately$248/af in 2004/05 (including the RA and energy but not including other well operation and maintenance costs). The City currently purchases supplemental, treated, imported water from MWDOC for $472.50/af (exclusive of connection fees and readiness to serve charges). City groundwater production cost will increase in 2005/06 as a result of the RA increasing from $172 of to $205/af. The City's water supply has averaged 56% groundwater production and 44% imported water purchases over the past eight years(1996/97—2003/04). However,the City participates in the In-Lieu or Cyclic Storage Program offered by OCWD and MWD, when available. In this program, the City purchases imported water in-lieu of groundwater but at the lower cost of groundwater production in order to help OCWD replenish the groundwater basin. Accounting for this in-lieu imported water use as equivalent groundwater use, adjusts imported water use for the City down to 3 1% for this 8-year period. With the construction of Well No. 12 in late 2005,the City now has ten active potable water wells that have a combined capacity of approximately 24,800 gpm. Well No. 1 is scheduled to be re-drilled in 2006 and it is estimated that the capacity of this well will increase from 500 gpm to approximately 750 gpm when this work is completed. The City has sufficient well capacity to fully utilize the current BPP and it is estimated that this well capacity will be sufficient to fully utilize the BPP through the planning period. The City also has sufficient well capacity and imported water capacity to meet all normal demand conditions through the planning period including average-day demands, maximum-month demands, and maximum-day CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-3 Executive Summary demands. City supply capacities plus existing reservoir booster pump capacities are sufficient to provide for City peak-hour demands through the planning period. A 50-mgd seawater desalination plant has been proposed at the AES Huntington Beach Generating Station property. In September 2005,the Huntington Beach City Council approved an Environmental Impact Report supporting construction of the plant. As of the date of the report's data analysis and modeling(November 2005),this proposed plant was not considered as a supply source. Water Quality The City's water supply consistently meets or exceeds all State and federal potable water quality standards. Proposed federal water quality regulations on the horizon including a new lower maximum contaminant level(MCL)for arsenic, an upgraded rule for groundwater disinfection, a MCL for radon, and new monitoring requirements for disinfectant byproducts are not expected to affect the City's ability to meet future water quality standards based on historic water quality parameters of the City's supply sources and the City's current disinfection procedures. However,the City will need to monitor proposed radon regulations in regard to which radon mitigation program the State chooses to follow. E.5 Storage and Emergency Supply The City currently has 55.0 million gallons (MG) of storage capacity located at the Overmyer, Peck, Springdale, and Edwards Hill storage reservoirs. Booster stations are located at the Overmyer, Peck/Springdale, and Edwards Hill sites to pump water from the reservoirs into the Zone 1 distribution system at appropriate pressures. The Reservoir Hill Booster Pump Station, which is located at the Overmyer site, boosts water from Zone 1 into Zone 2, which does not have a storage reservoir. In addition to pumping to Zone 1,the Edwards Hill Booster Pump Station also boosts water into Zone 2. As recommended in the 2000 Master Plan and scheduled in the City's current Water Master Plan CIP, a 10-MG storage reservoir and an I1,000-gallons per minute (gpm) booster pump station will be constructed in the southeast quadrant of the City at the AES property to ensure water supply reliability and storage for the area south of the Newport-Inglewood Fault and south of Bolsa Chica. Currently there are no storage reservoirs or supply sources located south of the fault and an earthquake on this fault could potentially sever water transmission and distribution pipelines crossing the fault leaving the southern portion of the City without potable water. With the construction of this"Southeast Reservoir and Booster Pump Station",the City will have 65.0 MG of storage capacity. It should be noted that storage capacity occurs when a reservoir is filled to its maximum level. However, during a normal operating day, City reservoir levels vary between the maximum and minimum levels in order to supply water into the system when needed. With this in mind, a total existing system volume of 55.0 MG is never available at any one time. It is estimated that the City has sufficient reservoir storage to accommodate operational and fire- protection storage requirements throughout the planning period. Emergency storage is reservoir water that is available to satisfy demands when normal supplies are reduced or unavailable due to unusual circumstances. For the City, normal water supply is from wells and imported water connections. One way to gauge the magnitude of available emergency storage is to determine the equivalent number of days of average demand that can be provided. Based on existing storage, 0.95 days of average demand emergency storage is available. After the construction CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-4 Executive Summary of the proposed 10.0 MG Southeast Reservoir, 1.22 days of average demand emergency storage would be available. These emergency storage volumes, which are calculated based on year 2025 projected average demand, places the City approximately in the middle of 24 water agencies surveyed by the City's Department of Public Works in 2001. Backup water supply can augment storage during a specific emergency water supply scenario. In this regard, several different emergency storage/supply scenarios were evaluated including a complete loss of the City's imported water supply coupled with a 7-day electric power outage. The most likely causes for an imported water outage or reduction in supply would be a break in an imported water transmission main or mains or an outage at a filtration plant caused by an earthquake. MWD's "Infrastructure Reliability and Protection Plan (IRPP)" is a program where MWD is evaluating the reliability of its aqueduct facilities,treatment plants and distribution system. For example, an outage of the Diemer Filtration Plant,which treats imported water for Orange County cities including Huntington Beach, is estimated to have a recover time of 31 days. Repairs on the East Orange County Feeder No. 2, one of the major transmission pipelines conveying imported water to the City, is estimated to take 10 days. For Orange County, the most significant risk to imported water supply is believed to be movement of the Whittier-Elsinore fault system. It was determined that the City has sufficient emergency storage, groundwater supply, and emergency power to withstand an imported water outage of 31 days or longer coupled with an electric power outage lasting the first 7 days of the emergency scenario. Another possible emergency scenario is a complete loss or a reduction in the City's groundwater supply from the Orange County Groundwater Basin, conceivably as a result of basin groundwater contamination. It was determined that the City has sufficient emergency storage and imported water supply to withstand this emergency scenario also. E.6 Water Distribution The City's existing hydraulic network model was created by the City in 1998 to analyze City water distribution performance. For this water master plan, the City's model was updated with upgraded H2ONET software, which was then used to improve the connectivity of the model. Pipelines constructed since the year 2000 were entered into the model, as were new updated water demands. The upgraded and updated model was then used to simulate and analyze distribution system performance for the existing water system and for the year 2025 water system. Service pressures throughout the water system were found to be good for average-day and peak-hour demand conditions for the existing system and for the year 2025 system. Fire flow is the flow rate of a water supply that is available for fire fighting at a residual pressure of 20 psi. City fire flow requirements are set by the City Fire Department and are based on the current Uniform Fire Code (UFC). A Fire flow of 1,000 gpm was run in the model at each City fire hydrant location to gauge fire flow strength in terms of residual pressure. A 1,000-gpm fire flow represents the minimum UFC fire flow for one and two-family dwellings having a fire area less than 3,600 square feet. For the next iteration in the fire-flow analysis, the fire flow at each hydrant was increased to 1,500 gpm. As a third step in the analysis,the fire flow at each hydrant was increased to 2,000 gpm. CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-5 Executive Summary The analysis showed that a residual pressure of 20 psi could be attained at most hydrants in the system at fire flows up to 2,000 gpm. However, a residual pressure of 20 psi could not be attained on a number of hydrants that are located at the end of dead-end 6-inch water mains at fire flows of 1,500 gpm and 2,000 gpm. These 6-inch dead-end hydrants are typically located in residential areas. Also, a 6-inch water main in North Pacific Avenue in Sunset Beach (approximately 1,700 linear feet long) might need to be replaced with a larger diameter pipeline and/or cross connections might need to be made to the 8-inch main in Pacific Coast Highway and/or the 10-inch main in South Pacific Avenue in order to meet fire flow requirements. The purpose of this analysis was to provide the City with an indication of where fire flow deficiencies might occur within the City. It is recommended that the City further evaluate the areas with low residual pressures in consultation with the City Fire Department and then possibly conduct more detailed analysis to determine if fire system and/or water system improvements are required. E.7 Financing Plan Updated cost estimates and scheduling were developed for projects remaining to be paid for in the City's Water Master Plan CIP. These projects were recommended in previous City water master plans. The remaining projects are identified with project numbering from the 2000 Water Master Plan and financing plan and are described as follows: Protect Nos. 1 and 15: Beach Boulevard and Downtown Pipe Improvements Project Nos. 1 and 15 have been combined for this water master plan and financing plan. For Project No. 1, dead end pipe segments will be connected in spots along Beach Boulevard to improve water supply and fire flow reliability for corresponding areas fronting this road. For Project No. 15, improvements will be made to the 20-inch Downtown Loop Transmission Main to improve supply to the downtown area especially from the proposed Southeast Reservoir transmission main(Project No. 14 discussed later). Proiect No. 2: Chlorination UpgLades for Well No. 13 Well No. 13 is a new City well that is currently operating with temporary facilities. Chlorination upgrades will include chlorine room modifications, some building construction, and installation of secondary containment vessels. Proiect No.s: Enery backup S sy tem for Well Nos. 6. 9, and 10 A portable trailer-mounted propane storage vessel will be purchased and vaporizers will be constructed at Well Nos. 6,9,and 10 so as to provide energy backup supply for these wells. Proiect Nos.8 and 9:Pipeline Corrosion Protection Stases I and II Project Nos. 8 and 9 have been combined for this water master plan and financing plan. For Project No. 8 (Pipeline Corrosion Control- Stage I), corrosion control will be constructed for various pipelines including the 42-inch OC-35 Transmission Main from Warner Avenue and Springdale Avenue to Clay Avenue and Huntington Street. For Project No. 9 (Pipeline Corrosion Control- Stage II), corrosion control will be constructed for various pipelines including the 36-inch OC-35 Transmission Main on Springdale Avenue from Bolsa Avenue to Warner Avenue. CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-6 Executive Summary Project No.10:Pipeline Corrosion Protection Stage III Project No. 10, corrosion control will be constructed for various pipelines, including the 30- inch transmission main from Clay Avenue and Huntington Street to Newland Street and Yorktown Avenue. Since corrosion control on existing smaller diameter pipeline is more costly and intrusive and development projects over time can eliminate some of these areas of concern, Pipeline Corrosion Control — Stage IV (Project No. 11), as identified in the 2000 Water Master Plan, has been combined with this Stage III project. It is believed that the original Water Master Plan objective behind corrosion control will have been met after completion of Stages I to III. Project No.12: Permanent Wellhead Facilities for Well No. 13 Well No. 13 is a new City well that is currently operating with temporary facilities.Permanent wellhead facilities will be constructed not including chlorination upgrades, which are listed as Project No.2. Proiect No.13:Southeast Reservoir and Booster Pump Station A 10 million gallon (MG) storage reservoir and an 11,000 gallon per minute (gpm) booster pump station will be constructed for this water master plan and financing plan in the southeast quadrant of the City at the AES property to ensure water supply reliability and storage for the area south of the Newport Inglewood Fault and south of Bolsa Chica. Project No.14:Southeast Reservoir Transmission Main A 10,400 linear foot(If) 16-inch to 24-inch distribution/transmission main will be constructed to distribute water supply to the southeast service area and to transmit water to the Downtown Loop from the Southeast Reservoir. Project No.16:Fire Protection Improvements Water main improvements will be constructed to improve fire flow pressures and supply reliability in several areas of the City including Peters Landing in Huntington Harbor. Project No.17: Cast Iron Main Replacement Program To increase distribution system capacity and reliability, the City will continue to replace cast iron pipe in the distribution system with new mains made of non-corrosive pipe materials. Water System Security Improvements In conjunction with the 2005 Water Master Plan and Financing Plan, a 2005 Water System Security Plan was prepared by Tetra Tech and was submitted to the City as a separate report. The recommended water system security improvements will be funded through the Water Fund CIP and are not included as Water Master Plan projects. CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-7 Executive Summary Table E-1 shows a timeline of the remaining water master plan projects, starting in 2005/06 and ending in 2010/I1. The total cost for the remaining master plan projects is estimated at $51,244,000. Costs for design, construction, construction management, and City project management are included. It should be noted that costs for construction materials and labor have gone up significantly since these projects were originally estimated between 1995 and 2000. Costs are based on 2005 dollars and are escalated at an assumed 2.8%annual inflation rate. Table E-1. Schedule of Remaining Water Master Plan Projects to be Paid For I4 Beach Blvd and #1&#15 Downtown $88 $687 $775 Pipeline Improvements $59 $461 $520 Well 13 Chlorination #2 Upgrades $250 $250 Energy Backup #5 Wells 6,9,& 10 $288 $253 $541 Pipeline Corrosion I #8&#9 &II $2,800 $2,800 Pipeline Corrosion #10 III(a) $150 $139 $3,371 $3,660 #12 1 Well13 $252 $2,783 $3,035 Southeast Reservoir #13 &BPS $100 1 $1,479 $17,648 $19,227 SE Reservoir #14 Transmission Main $503 $5,355 $5,858 Fire Protection #16 Improvements $128 $1,002 $1,130 Cast Iron Main #17 Replacement $830 $5,759 $874 $5,981 $13,444 Total $3,050 $1,456 $6,762 $1,602 $12,588 $25,786 $51,244 a) Corrosion control III and IV are combined into Stage 111. In 1995 the City adopted pay-as-you-go financing as the method to pay for the water master plan projects. Pay-as-you-go financing relies on cash from fund balances and on-going revenues. There is no borrowing. The City sets aside moneys to pay for water master plan projects in its Water Master Plan Fund. There are three sources of revenues for the Water Master Plan Fund: capital surcharges, capital facilities charge, and interest earnings(i.e.,cash received from investments.). The capital surcharge, which the City Council adopted in 1995, is a flat monthly charge to each water customer,regardless of water usage. The surcharge was initially set at$3.00 per month per equivalent dwelling unit (EDU). It increased $0.50 each December 1st through December 1, 2000, when it became $5.50 per month per EDU. On December 1, 2007, the surcharge will decrease to $2.00 per EDU and remain at that level in perpetuity to pay for maintenance of facilities built through the master plan. CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-8 Executive Summary The current capital facilities charge is$2,400 per EDU and has not changed since its adoption in 1995. This charge applies to new residential development connecting to the water system. The City has entered into development agreements with respect to certain developments in Huntington Beach under which the developers provide water facilities in lieu of paying the capital facilities charges. Interest earned on the cash balance (i.e., cash received from investments) in the Water Master Plan Fund is another source of revenue. For the purpose of the financial analysis, an interest rate of 3% is used. The cash flow for the Water Master Plan Fund shows the projection of revenues and expenses applicable to the remaining water master plan projects. Sources of revenues for master plan projects are the cash balance in the Water Master Plan Fund, capital surcharges, capital facilities charges, and interest earnings. Expenses include expenditures on design and construction of master plan projects, annual O&M expenses related to the remaining master plan projects and city overhead costs allocated to the master plan. The cash flow projections from 2005/06 through 2010/11 and how the revenues and expenses are forecasted are shown in Table E-2. The financial analysis finds that the cash balance in the Water Master Plan Fund plus annual revenues may not be sufficient to pay for all remaining master plan projects and O&M expenses related to these capital projects. At the end of the analysis period, 2010/11, the Water Master Plan Fund could potentially have a negative ending balance of$3,627,000 as shown in Table E-2. The potential negative ending balance results from current costs being higher than original budget estimates, which is attributable to a number of factors including substantial increases in the costs of materials,contract staffing for design and inspection,and unknown and unclear field conditions. The estimated shortfall of$3.63 million may be significantly reduced because some of the scheduled cast iron main replacements may be accomplished via development projects, and because pipeline corrosion control project costs may be reduced as a result of innovative and modern corrosion control technologies. Understanding that there are many factors that affect our projected ending fund balance, such as volatile construction costs, interest rates and the timing of project construction, the following possible solutions are offered to address the projected negative ending balance: • Adopt the Water Master Plan as presented. Closely monitor project cost and revenue, revisit the shortfall issue by mid-2007 as actual project costs are realized, and make any appropriate policy and/or financial adjustments at that time,if necessary. • Suspend the surcharge decrease by one year. The Water Master Plan Surcharge is currently scheduled to decrease from the current $5.50 per equivalent dwelling unit to $2.00 on December 1, 2007. The $2.00 charge was designed to remain in perpetuity to pay for operations and maintenance costs for the new facilities constructed with the Water Master Plan funds. If this decrease were delayed one year to December 1, 2008, it is estimated sufficient revenue would be realized to meet the projected shortfall. • Eliminate some scheduled projects from the Water Master Plan. Projects could be eliminated or, more likely, considered for funding from alternative sources to address the shortfall. For CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-9 Executive Summary example, these projects could eventually be constructed through the Water Fund annual CIP program or from Water Fund reserves,if available. Consultant and City Staff recommend that the best course of action at this time would be to follow the first solution highlighted above: to closely monitor project cost and revenue, revisit the shortfall issue by mid 2007 as actual project costs are realized and make any appropriate policy and/or financial adjustments then. If it is determined at that time that there is still a shortfall in the Water Master Plan Fund, then it is recommended that staff explore using the Water Fund to pay for the relatively small amount of remaining project work. Table E-2.Cash Flow Projections—Remaining Water Master Plan Projects I Beginning balance 1 $22,720,000 $26,552,000 $32,080,000 $28,787,000 $29,804,000 $19,847,000 Revenues Capital surcharge 6,900,000 6,907,000 3,247,000 2,516,000 2,519,000 2,521,000 Capital facilities charge 240,000 240,000 240,000 240,000 240,000 240,000 Cash received from investments 682,0001 797,0001 962,0001 864,0001 894,0001 595,000 Total revenues 7,822,000 7,944,000 4,449,000 3,620,000 3,653,000 3,356,000 Expenses Water master plan capital projects 3,050,000 1,456,000 6,762,000 1,602,000 12,588,000 25,786,000 Cost allocation charge 240,000 240,000 240,000 240,000 240,000 240,000 Additional O&M 700,0001 720,000 740,000 761,000 782,000 804,000 Total expenses 3,990,000 2,416,000 7,742,000 2,603,000 13,610,000 26,830,000 Ending balance $26,552,000 $32,080,000 $28,787,000 $29,804,000 $19,847,000 $3,627,000 CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-10 ATTACHMENT #5 2005 Water Master Plan and Financing Plan June 19, 2006 Introduction • Original work on the plan began in 1988 • 1995 — plan is adopted with pay-as-you-go financing plan • Updated in 2000 • RFP for new update issued Sept. 2003 • Contract awarded Jan. 2004 to Tetra Tech/Bartle Wells • Presented at Council Study Session 2-21 -06 June 19, 2006 2 Master Plan • City characteristics and projected growth • Demand • Supply • Facilities and operations • Storage and emergency supplies • Distribution • Capital Facilities Finance Plan June 19, 2006 3 Master Plan - Demand • Historical production and consumption — Average production of 34,000 acre-feet over the last 15 years — Minimal growth in demand or consumption — Average daily per capita use much lower than County average June 19, 2006 4 Master Plan - Supply • Groundwater — 10 groundwater wells — Basin Pumping Percentage 64%, efforts to increase the basin yield continue — "In lieu" programs • Imported water — 3 MWD connections June 19, 2006 5 Master Plan - Supply • Emergency connections • Average annual; average day, max. day, peak hour and monthly demands • Supply adequacy — Sufficient to meet all normal demands through 2025 June 19, 2006 6 Master Plan — Storage and Emergency Supply • Reservoir operating levels — Typically filled at night, operating level varies based on demand • Operational storage — 25% of maximum day demand • Fire storage — 2 simultaneous 5,000 gpm fire flows for 5 hours June 19, 2006 7 Master Plan - Distribution • Distribution — Update of hydraulic model — Year 2025 system analysis • Used to create maximum-day and peak hour demand scenarios — Recommended fire flow improvements June 19, 2006 8 Master Plan/Capital Facilities Finance Plan • Remaining projects from 2000 Master Plan — Security Improvements — Beach Boulevard and downtown pipe improvements — Chlorination upgrades — Energy backup — Pipeline corrosion — Well 13 permanent facilities — Southeast reservoir, booster station, transmission line — Fire protection improvements — Cast iron main replacement June 19, 2006 9 Master Plan/Capital Facilities Finance Plan • Security Plan — Greatly increased in scope — Recommend funding through the Water Fund • Estimated costs of remaining projects - $51 .2M • Revenue — Surcharge — currently $5.50/month and scheduled to reduce to a maintenance level of $2.00 on 12/1/07 — Capital facilities charge — Interest June 19, 2006 10 Master Plan/Capital Facilities Finance Plan • Cash flow projections show negative balance in 2011 of $3 .6M • Alternatives to address projected shortfall — Adopt plan as presented and revisit shortfall issue mid- 2007 — Extend $5.50 surcharge an additional year — Eliminate projects or provide alternative funding — Water Fund June 19, 2006 11 2005 Water Master' Plan and Financing Plan June 19, 2006 RCA ROUTING SHEET INITIATING DEPARTMENT: Public Works SUBJECT: Adopt 2005 Water Master Plan and Financing Plan and Amend Ordinance 3496 to Replace the 2000 Water Master Plan COUNCIL MEETING DATE: 1 &/1/1010. RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable ❑ Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable ❑ Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable ❑ Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable ❑ Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Ap licable ❑ Bonds (If applicable) Attached ❑ Not Applicable ❑ Staff Report (If applicable) Attached ❑ Not Applicable ❑ Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable ❑ Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable ❑ EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORW RED Administrative Staff Assistant City Administrator Initial ) City Administrator (Initial) ) ( ) City Clerk ) EXPLANATION FOR RETURN OF ITEM: c Only)(Below Space For City Clerk's Use RCA Author: Ken Dills � f 3 ggq �I y� . Yf e Master ,2005 ater and, . Plan + ,E for the City of Huntington Beach Sk v l )0� t�— FINAL DRAFT PENDING CITY COUNCIL APPROVAL ' x • TETRA TECH,INC. in association with Please discard previous copies Bartle Wells Associates March 2006 2005 Water Master Plan and Financing Plan ' For the City of Huntington Beach 1 TETRA TECH, INC. ' in association with Bartle Wells Associates ' Table of Contents ' Page Executive Summary E.1 Purpose.....................................................................................................................................E-1 E.2 City Characteristics and Projected Growth.............................................................................E-1 ' E.3 Water Demand.........................................................................................................................E-1 E.4 Water Supply............................................................................................................................E-3 E.5 Storage and Emergency Supply...............................................................................................E-4 E.6 Water Distribution ...................................................................................................................E-5 ' E.7 Financing Plan..........................................................................................................................E-6 Chapter 1 —City Characteristics and Projected Growth 1.1 Overview..................................................................................................................................1-1 1.2 Land Use ..................................................................................................................................1-i 1.3 Population and Housing............................................................................................................1-4 Chapter 2—Water Demand ' 2.1 Overview..........................................:.......................................................................................2-1 2.2 Historical Potable Water Production.......................................................................................2-1 2.3 Historical Water Consumption/tJnaccounted-For Water........................................................2-1 ' 2.4 Projected Water Demands........................................................................................................2-8 2.4.1. Zone 2 Demands.........................................................................................:...............2-11 2.4.2 Peaking Factors...........................................................................................................2-13 2.5 Fire Flow Demands..................................................................................................................2-15 2.6 Water Conservation.................................................................................................................2-16 ' Chapter 3—Water Supply 3.1 Overview..................................................................................................................................3-1 ' 3.2 City Water Supplies.................................................................................................................3-1 3.3 Water Quality...........................................................................................................................3-3 3.3.1 Proposed New Water Quality Rules and Standards..................................................3-3 ' 3.4 Groundwater Supply......................................................................................................:.........3-5 3.4.1 OCWD Projects..........................................................................................................3-5 3.4.2 City Groundwater Production....................................................................................3-6 ' 3.5 Imported Water Supply.................................................:...........................................................3-8 3.5.1 Colorado River Water Delivery Agreement..............................................................3-9 3.5.2 Conjunctive Storage Program....................................................................................3-9 3.5.3 City Imported Water Supply......................................................................................3-10 ' 3.6 Seawater Desalination..............................................................................................................3-11 3.7 Emergency.Connections..........................................................................................................3-11 3.8 Supply Under Various Operating Conditions.........................................................................3-11 ' 3.8.1 Average-Annual Demand...........................................................................................3-11 3.8.2 Average-Day Demand................................................................................................3-11 3.8.3 Maximum-Day Demand.............................................................................................3-12 ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan i ' Table of Contents ' Page Chapter 3—Water Su (continued) p Supply 3.8.4 Peak-Hour Demand....................................................................................................3-13 ' 3.8.5 Monthly Demand........................................................................................................3-13 3.9 Supply Adequacy for Normal Operating Conditions..............................................................3-14 ' Chapter 4—Water System Facilities and Operation ' 4.1 Overview..................................................................................................................................4-1 4.2 System Operation.....................................................................................................................4-1 4.3 Storage Reservoirs and Booster Pump Stations......................................................................4-3 ' 4.3.4 Overmyer Reservoir and Booster Pump Station........................................................4-4 4.3.2 Reservoir Hill Booster Pump Station.........................................................................4-4 4.3.3 Peck Reservoir, Springdale Reservoir, and Peck Booster Pump Station..................4-4 ' 4.3.4 Edwards Hill Reservoir and Booster Pump Station...................................................4-6 4.4 Potable Water Well Pumps......................................................................................................4-6 4.5 Transmission and Distribution Piping....:................................................................................4-6 4.6 Distribution System Treatment................................................................................................4-10 ' Chapter 5—Water Storage and Emergency Supply ' 5.1 Overview..................................................................................................................................5-1 5.2 Reservoir Operating Levels.....................................................................................................5-3 5.3 Operational Storage .................................................................................................................5-5 ' 5.4 Fire Storage..............................................................................................................................5-5 5.5 Emergency Storage/Supply.....................................................................................................5-6 5.5.1 Pressure Zone 2.......................'....................................................................................5-14 5.6 Storage/Supply Adequacy for Emergency Operating Conditions..........................................5-15 Chapter 6—Water Distribution ' 6.1 Overview..................................................................................................................................6-1 6.2 Upgrading and Updating City's Hydraulic Model..................................................................6-1 6.3 Year 2005 System Analysis..........................................................................................:..........6-2 ' 6.3.1 Average-Day Demand................................................................................................6-2 6.3.2 Peak-Hour Demand................................................................................:...................6-4 6.3.3 Maximum-Day Demand plus Fire Flow....................................................................6-4 ' 6.4 Year 2025 System Analysis.....................................................................................................6-12 6.4.1 Average-Day Demand................................................................................................6-12 6.4.2 Peak-Hour Demand....................................................................................................6-16 ' Chapter 7—Financing Plan 7.1 Overview..................................................................................................................................7-1 ' 7.2 Remaining Water Master Plan Projects...................................................................................7-1 7.3' 2005 Water System Security Plan...........................................................................................7-3 ' 7.4 Estimated Costs and Scheduling for Water Master Plan Projects..........................................7-3 ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan ii ' Table of Contents ' Page Chapter 7—Financing Plan (continued) ' 7.5 Sources of Revenue for Water Master Plan Projects..............................................................7-5 7.5.1 Capital Surcharges.......................................................................................................7-5 ' 7.5.2 Capital Facilities Charge............................................................................................7-6 7.5.3 Interest Earnings.........................................................................................................7-7 7.6 Financing Approach.......................................................................................:..........................7-7 7.7 Cash Flow Projections.............................................................................................................7-7 7.7.1 Begging Balance in Water Master Plan Fund............................................................7-7 7.7.2 Future EDUs...............................................................................................................7-7 7.7.3 Projections of Revenues.............................................................................................7-8 ' 7.7.4 Projections of Expenditures........................................................................................7-8 7.7.5 Ending Balance in Water Master Plan Fund..............................................................7-9 7.8 Proposition 218........................................................................................................................7-9 7.9 Conclusion................................................................................................................................7-9 ' 7.10 Recommendation.....................................................................................................................7-10 1 1 1 I ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan iii Executive Summary. E.1 Purpose The purpose of this report is to update the City's water master plan and water financing plan, which ' were last updated in December 2000 and in February 2001, respectively. In conjunction with the 2005 Water Master Plan and Financing Plan, a 2005 Water System Security Plan was prepared by Tetra Tech and was submitted to the City as a separate report in January 2005. The Water Master Plan evaluates water system performance and facilities for the planning period 2005 through 2025. The project includes the evaluation of City growth, water demands, water use efficiency, water supply, proposed new water quality regulations, water storage, emergency water ' supply, and water system distribution. The Water Financing Plan evaluates the costs, scheduling and financing of projects remaining to be ' paid for in the City's Water Master Plan Capital Improvement Program (CIP). These projects were recommended in previous City water master plans. ' E.2 City Characteristics and Projected Growth Of the 17,231 acres of land within the City boundaries, only 3% of the City remains as vacant land (520 acres). Of this vacant land, approximately 25% is zoned residential, 24%is zoned industrial, and 18% is zoned open space parks. It is estimated that all of this land will be developed ultimately with the exceptions of land to be left vacant per City Specific Plans and vacant land in the open space ' conservation category. The City's population is projected to increase from 198,043 in 2004 to 222,274 in 2025 (12.2%), with total dwelling units(DUs) increasing from 77,221 to 80,297 (4.0%). The percentage of vacant DUs in ' the City has been 2.65% since the year 2000. The number of people per occupied DU (population density) was 2.63 in 2004. If it is assumed that the vacancy percentage remains 2.65% in 2025, then the population density would increase to 2.84 in 2025, an 8.0%increase. E.3 Water Demand ' Historical Water Demands City water demands have not changed significantly over the past decade even though development has t occurred and the City's population has increased during this time. City potable water supply for the 8 water years 1996/97 through 2003/04 averaged 34,462 acre feet per year(afy). Note that a water year is July through June, whereas the City's fiscal year is October through September. For this same period, City water consumption as developed from City billing records averaged ,32,266 afy. ' Unaccounted-for water, which is the difference between water supply and water consumption and represents"lost"water,averaged 2,197 afy(6.4%of water production). ' Unaccounted-for water was 9.9% in 1995/96, but has averaged 6.4% since 1996/97. The decrease in unaccounted-for water can be in part attributed to a leak detection survey conducted for the City in 1996/97. The California Urban Water Conservation Council recommends a complete distribution ' system audit if unaccounted-for water exceeds 10%. With the City currently averaging a little over 6%, an audit is not needed. CITY OF HUNTINGTON BEACH, TETRA TECH,INC. ' 2005 Water Master Plan and Financing Plan E-1 ' Executive Summary ' Total water use per person in the City has historically been less than total water use per person in Orange County. For comparison, the City averaged 164 gallons per capita per day (gpcd) from 1996/97 through 2003/04 compared with 208 gpcd for the Municipal Water District of Orange County (MWDOC) service area (all of Orange County not including the cities of Anaheim, Fullerton, and Santa Ana). ' Existing and Proiected Water Demands City potable water supply averaged 21,250 gallons per minute (gpm), which is 34,300 afy, over the 5- year period 1999/00 through 2003/04 and this could be taken to be the average water demand for the ' City's "Existing System". Per capita water use for this 5-year period was 158.5 gpcd. However, City per capita water use has been higher in past years when there was low rainfall. In 1990/91, the fifth year of a 6-year drought, City per capita demand was 170 gpcd. In 1996/97, the second of two ' consecutive low to moderate rainfall years, City per capita demand was 172 gpcd. For the purpose of analysis, City potable water demands were increased 8.5%to 23,100 gpm'(37,200 afy) for the Existing System in order to evaluate water system performance during low rainfall periods. ' Water demands for the year 2025, which represents the Ultimate System for the planning period, are estimated to increase 6.4% to 24,800 gpm (39,900 afy) by estimating that all developable vacant land ' will be developed and by increasing residential water demands by 4.0% to account for the projected 8.0%increase in population density. Maximum-day demand factors, which are the ratios of the maximum-day demand to the average day demand, were estimated to be 1.8 for the entire system and 2.7 for the 800-acre Reservoir Hill area that constitutes Zone 2 of the water system. The peak-hour demand factors, which are the ratios of the peak hour demand to the average demand, were estimated at 2.8 for the entire system and 4.7 for Zone ' 2. These demand factors are slightly higher than the factors developed for the 2000 Water Master Plan based on new demand information. ' Water Use Efficiency The City became a Signatory to the Memorandum of Understanding Regarding Best Management ' Practices for Urban Water Conservation (Urban MOU) in September 2000. The California Urban Water Conservation Council (CUWCC) has responsibility for monitoring implementation of the Urban MOU. MWDOC, as a regional wholesaler of imported water, implements many of the Best Management Practices (BMP) on behalf of its member agencies including the City. As Signatory to the Urban MOU, the City has committed to using Good Faith Efforts to implement 14 current BMPs. As a result City water conservation efforts, a downward trend in City water consumption can be seen especially in regard to residential per capita water consumption. ' From 2000/01 through 2003/04, residential per capita water demand averaged 106.5 gpcd, which is 5% less than in 1999/00 (112 gpcd) and 7% less than in 1996/97 (115 gpcd). The downward trend in ' residential water use can be attributed in part to water conservation programs undertaken by the City including public information programs, school education programs, water survey programs, and plumbing fixture retrofits. ' City commercial and industrial water demand decreased approximately 17%from 1996/97 to 2003/04. Decreased water use for the Commercial and Industrial billing categories can be attributed in part to the City's participation in regional commercial, industrial, and institutional water-use efficiency ' programs. However, the predominant reason for this decrease is the gradual implementation by the ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-2 1 ' Executive Summary ' City over the past decade of dual meters in place of single mixed-use meters for commercial and industrial accounts as well as public and multi-family residential accounts. In using dual meters, one meter is dedicated to measuring irrigation water use under the Irrigation billing category with the ' second meter dedicated to measuring internal water use. The City is employing dual meters in order to better account for and monitor irrigation water use. In implementing dedicated irrigation meters, water use as measured in the Municipal and Irrigation billing categories is slightly increased over this same period. Municipal accounts include all City parks. ' EA Water Supply ' City water supply has historically come from groundwater production and from supplemental, treated, imported water purchased from the MWDOC, which is a member agency of the Metropolitan Water District of Southern California(MWD). As a member agency of Orange County Water District (OCWD), the City is entitled to groundwater from the Orange County Groundwater Basin. The City and other basin producers pay a ' Replenishment Assessment (RA) to OCWD for all groundwater produced up to a percentage of the producer's total water supplies used to meet demands. This is called the Basin Production Percentage (BPP), which is set uniformly for all producers. For 2003/04, OCWD lowered the BPP from 75% to 66% and increased the RA from $127/acre feet(af) to $149/af. For 2004/05, the BPP was unchanged ' but the RA was increased to $172/af. OCWD further increased the RA to $205/af and further decreased the BPP to 64%for 2005/06. The intent of these changes is to lessen groundwater pumping in order to increase basin groundwater levels. It benefits the City to use groundwater up to the maximum allowable BPP because groundwater is less expensive and considered to be more reliable than imported water. City groundwater production cost ' approximately $248/af in 2004/05 (including the RA and energy but not including other well operation and maintenance costs). The City currently purchases supplemental, treated, imported water from MWDOC for $472.50/af (exclusive of connection fees and readiness to serve charges). City ' groundwater production cost will increase in 2005/06 as a result of the RA increasing from $172 of to $205/af. The City's water supply has averaged 56% groundwater production and 44% imported water ' purchases over the past eight years (1996/97—2003/04). However, the City participates in the In-Lieu or Cyclic Storage Program offered by OCWD and MWD, when available. In this program, the City purchases imported water in-lieu of groundwater but at the lower cost of groundwater production in order to help OCWD replenish the groundwater basin. Accounting for this in-lieu imported water use as equivalent groundwater use, adjusts imported water use for the City down to 31% for this 8-year period. ' With the construction of Well No. 12 in late 2005, the City now has ten active potable water wells that have a combined capacity of approximately 24,800 gpm. Well No. 1 is scheduled to be re-drilled in 2006 and it is estimated that the capacity of this well will increase from 500 gpm to approximately 750 ' gpm when this work is completed. The City has sufficient well capacity to fully utilize the current BPP and it is estimated that this well ' capacity will be sufficient to fully utilize the BPP through the planning period. The City also has sufficient well capacity and imported water capacity to meet all normal demand conditions through the planning period including average-day demands, maximum-month demands, and maximum-day ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-3 ' Executive Summary ' demands. City supply capacities plus existing reservoir booster pump capacities are sufficient to provide for City peak-hour demands through the planning period. ' A 50-mgd seawater desalination plant has been proposed at the AES Huntington Beach Generating Station property. In September 2005, the Huntington Beach City Council approved an Environmental Impact Report supporting construction of the plant. As of the date of the report's data analysis and modeling(November 2005),this proposed plant was not considered as a supply source. ' Water Quality ' The City's water supply consistently meets or exceeds all State and federal potable water quality standards. Proposed federal water quality regulations on the horizon including a new lower maximum contaminant level (MCL) for arsenic, an upgraded rule for groundwater disinfection, a MCL for radon, ' and new monitoring requirements for disinfectant byproducts are not expected to affect the City's ability to meet future water quality standards based on historic water quality parameters of the City's supply sources and the City's current disinfection procedures. However,the City will need to monitor ' proposed radon regulations in regard to which radon mitigation program the State chooses to follow. E.5 Storage and Emergency Supply ' The City currently has 55.0 million gallons (MG) of storage capacity located at the Overmyer, Peck, Springdale, and Edwards Hill storage reservoirs. Booster stations are located at the Overmyer, Peck/Springdale, and Edwards Hill sites to pump water from the reservoirs into the Zone 1 distribution ' system at appropriate pressures. The Reservoir Hill Booster Pump Station, which is located at the Overmyer site, boosts water from Zone 1 into Zone 2, which does not have a storage reservoir. In addition to pumping to Zone 1,the Edwards Hill Booster Pump Station also boosts water into Zone 2. ' As recommended in the 2000 Master Plan and scheduled in the City's current Water Master Plan CIP, a 10-MG storage reservoir and an I1,000-gallons per minute (gpm) booster pump station will be ' constructed in the southeast quadrant of the City at the AES property to ensure water supply reliability and storage for the area south of the Newport-Inglewood Fault and south of Bolsa Chica. Currently there are no storage reservoirs or supply sources located south of the fault and an earthquake on this fault could potentially sever water transmission and distribution pipelines crossing the fault leaving the southern portion of the City without potable water. With the construction of this "Southeast Reservoir and Booster Pump Station",the City will have 65.0 MG of storage capacity. ' It should be noted that storage capacity occurs when a reservoir is filled to its maximum level. However, during a normal operating day, City reservoir levels vary between the maximum and minimum levels in order to supply water into the system when needed. With this in mind, a.total ' existing system volume of 55.0 MG is never available at any one time. It is estimated that the City has sufficient reservoir storage to accommodate operational and fire- protection storage requirements throughout the planning period. Emergency storage is reservoir water that is available to satisfy demands when normal supplies are ' reduced or unavailable due to unusual circumstances. For the City, normal water supply is from wells and imported water connections. One way to gauge the magnitude of available emergency storage is to determine the equivalent number of days of average demand that can be provided. Based on existing storage, 0.95 days of average demand emergency storage is available. After the construction ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-4 ' Executive Summary ' of the proposed 10.0 MG Southeast Reservoir, 1.22 days of average demand emergency storage would be available. These emergency storage volumes, which are calculated based on year 2025 projected average demand, places the City approximately in the middle of 24 water agencies surveyed by the ' City's Department of Public Works in 2001. Backup water supply can augment storage during a specific emergency water supply scenario. In this regard, several different emergency storage/supply scenarios were evaluated including a complete loss of the City's imported water supply coupled with a 7-day electric power outage. ' The most likely causes for an imported water outage or reduction in supply would be a break in an imported water transmission main or mains or an outage at a filtration plant caused by an earthquake. MWD's "Infrastructure Reliability and Protection Plan (IRPP)" is a program where MWD is evaluating the reliability of its aqueduct facilities,treatment plants and distribution system. For example, an outage of the Diemer Filtration Plant, which treats imported water for Orange County cities including Huntington Beach, is estimated to have a recover time of 31 days. Repairs on the East ' Orange County Feeder No. 2, one of the major transmission pipelines conveying imported water to the City, is estimated to take 10 days. For Orange County, the most significant risk to imported water supply is believed to be movement of the Whittier-Elsinore fault system. ' It was determined that the City has sufficient emergency storage, groundwater supply, and emergency power to withstand an imported water outage of 31 days or longer coupled with an electric power ' outage lasting the first 7 days of the emergency scenario. Another possible emergency scenario is a complete loss or a reduction in the City's groundwater supply from the Orange County Groundwater Basin, conceivably as a result of basin groundwater contamination. It was determined that the City has sufficient emergency storage and imported water supply to withstand this emergency scenario also. ' E.6 Water Distribution The City's existing hydraulic network model was created by the City in 1998 to analyze City water distribution performance. For this water master plan, the City's model was updated with upgraded H20NET software, which was then used to improve the connectivity of the model. Pipelines constructed since the year 2000 were entered into the model, as were new updated water demands. The upgraded and updated model was then used to simulate and analyze distribution system performance for the existing water system and for the year 2025 water system. Service pressures throughout the water system were found to be good for average-day and peak-hour demand conditions ' for the existing system and for the year 2025 system. Fire flow is the flow rate of a water supply that is available for fire fighting at a residual pressure of 20 psi. City fire flow requirements are set by the City Fire Department and are based on the current ' Uniform Fire Code (UFC). A Fire flow of 1,000 gpm was run in the model at each City fire hydrant location to gauge fire flow strength in terms of residual pressure. A 1,000-gpm fire flow represents the minimum UFC fire flow for one and two-family dwellings having a fire area less than 3,600 square ' feet. For the next iteration in the fire-flow analysis, the fire flow at each hydrant was increased to 1,500 gpm. As a third step in the analysis,,the fire flow at each hydrant was increased to 2,000 gpm. ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-5 ' Executive Summary ' The analysis showed that a residual pressure of 20 psi could be attained at most hydrants in the system at fire flows up to 2,000 gpm. However, a residual pressure of 20 psi could not be attained on a number of hydrants that are located at the end of dead-end 6-inch water mains at fire flows of 1,500 ' gpm and 2,000 gpm. These 6-inch dead-end hydrants are typically located in residential areas. Also, a 6-inch water main in North Pacific Avenue in Sunset Beach (approximately 1,700 linear feet long) might need to be replaced with a larger diameter pipeline and/or cross connections might need to be ' made to the 8-inch main in Pacific Coast Highway and/or the 10-inch main in South Pacific Avenue in order to meet fire flow requirements. The purpose of this analysis was to provide the City with an indication of where fire flow deficiencies ' might occur within the City. It is recommended that the City further evaluate the areas with low residual pressures in consultation with the City Fire Department and then possibly conduct more detailed analysis to determine if fire system and/or water system improvements are required. E.7 Financing Plan Updated cost estimates and scheduling were developed for projects remaining to be paid for in the City's Water Master Plan CIP. These projects were recommended in previous City water master plans. The remaining projects are identified with project numbering from the 2000 Water Master Plan ' and financing plan and are described as follows: Proiect Nos. I and 15: Beach Boulevard and Downtown Pipe Improvements ' Project Nos. 1 and 15 have been combined for this water master plan and financing plan. For Project No. 1, dead end pipe segments will be connected in spots along Beach Boulevard to improve water supply and fire flow reliability for corresponding areas fronting this road. For Project No. 15, improvements will be made to the 20-inch Downtown Loop Transmission Main to improve supply to the downtown area especially from the proposed Southeast Reservoir transmission main(Project No. 14 discussed later). ' Proiect No. 2: Chlorination Upgrades for Well No. 13, ' Well No. 13 is a new City well that is currently operating with temporary facilities. Chlorination upgrades will include chlorine room modifications, some building construction, and installation of secondary containment vessels. ' Project No.5: EneW backup System for Well Nos. 6. 9, and 10 A portable.trailer-mounted propane storage vessel will be purchased and vaporizers will be ' constructed at Well Nos. 6, 9, and 10 so as to provide energy backup supply for these wells. Proiect Nos.8 and 9:Pipeline Corrosion Protection Stakes I and II ' Project Nos. 8 and 9 have been combined for this water master plan and financing plan. For Project No. 8 (Pipeline Corrosion Control - Stage 1), corrosion control will be constructed for t various pipelines including the 42-inch OC-35 Transmission Main from Warner Avenue and Springdale Avenue to Clay Avenue and Huntington Street. For Project No. 9 (Pipeline Corrosion Control- Stage II), corrosion control will be constructed for various pipelines including the 36-inch OC-35 Transmission Main on Springdale Avenue from Bolsa Avenue to ' Warner Avenue. ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-6 Executive Summary ' Project No.10:Pipeline Corrosion Protection Stage III ' Project No. 10, corrosion control will be constructed for various pipelines, including the 30- inch transmission main from Clay Avenue and Huntington Street to Newland Street and Yorktown Avenue. Since corrosion control on existing smaller diameter pipeline is more ' costly and intrusive and development projects over time can eliminate some of these areas of concern, Pipeline Corrosion Control — Stage IV (Project No. 11), as identified in the 2000 Water Master Plan, has been combined with this Stage III project. It is believed that the original Water Master Plan objective behind corrosion control will have been met after ' completion of Stages I to III. Project No.12: Permanent Wellhead Facilities for Well No. 13 Well No. 13 is a new City well that is currently operating with temporary facilities. Permanent wellhead facilities will be constructed not including chlorination upgrades, which are listed as ' Project No. 2. Project No.13: Southeast Reservoir and Booster Pump Station ' A 10 million gallon (MG) storage reservoir and an 11,000 gallon per minute (gpm) booster pump station will be constructed for this water master plan and financing plan in the southeast ' quadrant of the City at the AES property to ensure water supply reliability and storage for the area south of the Newport Inglewood Fault and south of Bolsa Chica. Project No.14: Southeast Reservoir Transmission Main ' A 10,400 linear foot (If) 16-inch to 24-inch distribution/transmission main will be constructed to distribute water supply to the southeast service area and to transmit water to the Downtown ' Loop from the Southeast Reservoir. Project No.16:Fire Protection Improvements ' Water main improvements will be constructed to improve fire flow pressures and supply reliability in several areas of the City including Peters Landing in Huntington Harbor. ' Project No.17: Cast Iron Main Replacement Program ' To increase distribution system capacity and reliability, the City will continue to replace cast iron pipe in the distribution system with new mains made of non-corrosive pipe materials. Water System Security Improvements In conjunction with the 2005 Water Master Plan and Financing Plan, a 2005 Water System Security Plan was prepared by Tetra Tech and was submitted to the City as a separate report. ' The recommended water system security improvements will be funded through the Water Fund CIP and are not included as Water Master Plan projects. ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-7 ' Executive Summary Table E-1 shows a timeline of the remaining water master plan projects, starting in 2005/06 and ending in 2010/11. The total cost for the remaining master plan projects is estimated at $51,244,000. Costs for design, construction, construction management, and City project management are included. ' It should be rioted that costs for construction materials and labor have gone up significantly since these projects were originally estimated between 1995 and 2000. Costs are based on 2005 dollars and are escalated at an assumed 2.8%annual inflation rate. ' Table E-1. Schedule of Remaining Water Master Plan Projects to be Paid For Estimat•d Costs per Fiscal Yea ($1,000) Pro . from ' III Total Project II I II. I II I: 1 2008/09II I I I Beach Blvd and #1 &#15 Downtown $88 $687 $775 Pipeline Improvements $59 $461 $520 ' Well 13 Chlorination 92 Upgrades 1 $250 1 $250 Energy Backup 45 Wells 6,9,& 10 $288 $253 $541 ' Pipeline Corrosion I #8&#9 &II $2,800 $2,800 Pipeline Corrosion #10 111(a) $150 $139 $3,371 $3,660 ' 912 Well13 $252 $2,783 $3,035 Southeast Reservoir #13 &BPS $100 $1,479 $17,648 $19,227 ' SE Reservoir #14 Transmission Main 1 $503 $5,355 $5,858 Fire Protection #16 Improvements $128 $1,002 $1,130 ' Cast Iron Main #17 Replacement $830 $5,759 $874 $5,981 $13,444 Total $3,050 $1,456 $6,762 $1,602 1 $12,588 1 $25,786 $51,244 ' a) Corrosion control III and IV are combined into Stage III. In 1995 the City adopted pay-as-you-go financing as the method to pay for the water master plan ' projects. Pay-as-you-go financing relies on cash from fund balances and on-going revenues. There is no borrowing. The City sets aside moneys to pay for water master plan projects in its Water Master Plan Fund. There are three sources of revenues for the Water Master Plan Fund: capital surcharges, ' capital facilities charge, and interest earnings(i.e., cash received from investments.). The capital surcharge, which the City Council adopted in 1995, is a flat monthly charge to each water ' customer, regardless of water usage. The surcharge was initially set at$3.00 per month per equivalent dwelling unit (EDU). It increased $0.50 each December 1st through December 1, 2000, when it became $5.50 per month per EDU. On December 1, 2007, the surcharge will decrease to $2.00 per ' EDU and remain at that level in perpetuity to pay for maintenance of facilities built through the master plan. ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-8 ' Executive Summary The current capital facilities charge is $2,400 per EDU•and has not changed since its adoption in 1995. This charge applies to new residential development connecting to the water system. The City has ' entered into development agreements with respect to certain developments in Huntington Beach under which the developers provide water facilities in lieu of paying the capital facilities charges. Interest earned on the cash balance (i.e., cash received from investments) in the Water Master Plan Fund is another source of revenue. For the purpose of the financial analysis, an interest rate of 3% is used. ' The cash flow for the Water Master Plan Fund shows the projection of revenues and expenses applicable to the remaining water master plan projects. Sources of revenues for master plan projects are the cash balance in the Water Master Plan Fund, capital surcharges, capital facilities charges, and ' interest earnings. Expenses include expenditures on design and construction of master plan projects, annual O&M expenses related to the remaining master plan projects and city overhead costs allocated to the master plan. The cash flow projections from 2005/06 through 2010/11 and how the revenues ' and expenses are forecasted are shown in Table E-2. The financial analysis finds that the cash balance in the Water Master Plan Fund plus annual revenues may not be sufficient to pay for all remaining master plan projects and O&M expenses related to these ' capital projects. At the end of the analysis period, 2010/11, the Water Master Plan Fund could potentially have a negative ending balance of$3,627,000 as shown in Table E-2. ' The potential negative ending balance results from current costs being higher than original budget estimates, which is attributable to a number of factors including substantial increases in the costs of materials, contract staffing for design and inspection, and unknown and unclear field conditions. ' The estimated shortfall of$3.63 million may be significantly reduced because some of the scheduled cast iron main replacements may be accomplished via development projects, and because pipeline ' corrosion control project costs may be reduced as a result of innovative and modern corrosion control technologies. ' Understanding that there are many factors that affect our projected ending fund balance, such as volatile construction costs, interest rates and the timing of project construction, the following possible solutions are offered to address the projected negative ending balance: ' Adopt the Water Master Plan as presented. Closely monitor project cost and revenue, revisit the shortfall issue by mid-2007 as actual project costs are realized, and make any appropriate policy and/or financial adjustments at that time, if necessary.. ' • Suspend the surcharge decrease by one year. The Water Master Plan Surcharge is currently scheduled to decrease from the current $5.50 per equivalent dwelling unit to $2.00 on ' December 1, 2007. The $2.00 charge was designed to remain in perpetuity to pay for operations and maintenance costs for the new facilities constructed with the Water Master Plan funds. If this decrease were delayed one year to December 1, 2008, it is estimated ' sufficient revenue would be realized to meet the projected shortfall. • Eliminate some scheduled projects from the Water Master Plan. Projects could be eliminated ' or, more likely, considered for funding from alternative sources to address the shortfall. For CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan I E-9 ' Executive Summary example, these projects could eventually be constructed through the Water Fund annual CIP program or from Water Fund reserves, if available. Consultant and City Staff recommend that the best course of action at this time would be to follow the first solution highlighted above: to closely monitor project cost and revenue, revisit the shortfall issue by mid 2007 as actual project costs are realized and make any appropriate policy and/or financial ' adjustments then. If it is determined at that time that there is still a shortfall in the Water Master Plan Fund, then it is recommended that staff explore using the Water Fund to pay for the relatively small amount of remaining project work. ' Table E-2. Cash Flow Projections—Remaining Water Master Plan Projects tItem 2005/06II I II I: 1 2008/09II I2010/11 Beginning balance 1 $22,720,000 $26,552,000 $32,080,000 $28,787,000 $29,804,000 $19,847,000 ' Revenues Capital surcharge 6,900,000 6,907,000 3,247,000 2,516,000 2,519,000 2,521,000 Capital facilities charge 240,000 240,000 240,000 240,000 240,000 240,000 ' Cash received from investments 682,0001 797,0001 962,0001 864,0001 894,0001 595,000 Total revenues 7,822,000 7,944,000 4,449,000 3,620,000 3,653 000 3,356,000 ' Expenses Water master plan capital projects 3,050,000 1,456,000 6,762,000 1,602,000 12,588,000 25,786,000 ' Cost allocation charge 240,000 240,000 240,000 240,000 240,000 240,000 Additional O&M 700,000 720,0001 740,000 761,000 782,000 804,000 ' Total expenses 3,990,000 2,416,000 7,742,000 2,603,000 13,610,000 26,830,000 Ending balance $26,552,000 $32,080,000 $28,787,000 $29,804,000 $19,847,000 $3,627,000 1 ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan E-10 ' Chapter 1 - City Characteristics and Projected Growth ' 1.1 Overview The City has reached near full development with only 3%.of land remaining vacant. However, ' development and redevelopment projects that are either on-going or planned will affect future water demands. The City's population is projected to increase 12.2% by 2025 with housing projected to increase 4.0% and the number of people per household (population density) estimated to increase 8.0%. 1.2 Land Use ' There are 17,231 acres of land within the City boundaries. Existing land use in the City is shown on Figure 1-1 and is tabulated in Table 1-1. The existing land use presented is from the City's current General Plan and Specific Plans and from the City's 2004 Vacant land Survey. Land Use presented in ' this water master plan is solely for the purposes of estimating water demands. As shown in Table 1-1, only 3% of the City remains as vacant land (520 acres). Of this vacant land, approximately 25% is zoned residential, 24% is zoned industrial, and 18% is zoned open space parks. ' It is assumed that all of this land will be developed ultimately with the exceptions of land to be left vacant per City Specific Plans and vacant land in the open space conservation category, which is assumed to remain open space, i.e. no future water demands. - In addition to the General Plan, the City is currently being developed in accordance with 13 Specific Plans. The largest Specific Plan currently underway is the Downtown Specific Plan. Projects planned ' or already constructed as part of the Downtown Specific Plan include: • The Strand — Downtown Huntington Beach, which will include a hotel, restaurants, retail shops, and office space on 3.5 acres extending from 6`i' Street to Main Street and fronting Pacific Coast Highway(PCH). The project is scheduled for completion in 2006. ' • Pacific City, a retail center with entertainment and restaurant uses on 31 acres fronting PCH at . First Street in the downtown. The project could be completed in 2006. • Hyatt Regency Huntington Beach Resort and Conference Center, which also includes retail, a ' fitness center and spa, is on 38 acres located along PCH. The resort and spa opened in January 2003. A third hotel is planned as a future phase. ' • The Hilton Water Front Beach Resort,which was completed in 1990. The largest land use in the City is residential at 7,904 acres (approximately 46% 'of the total). ' Approximately 721/o of the residential land use is low density residential (3 to 7 dwelling units (DU) per acre). Commercial land use is spread out over the City (967 acres). However, a large portion of the commercial land borders Beach Boulevard from Adams Avenue to Edinger Avenue. The Hyatt ' Regency Huntington Beach Resort and Conference Center and the Hilton Water Front Beach Resort constitute the majority of the 67 acres of Commercial Visitor land use. Approximately 430 acres in the City are zoned for Mixed Use, which is a composite of Commercial ' Neighborhood, Commercial General, and Residential including town'homes, garden apartments, and mid to high-rise apartments. Mixed Use is also designated as either vertical or horizontal integrated ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 1-I a rn � n l LIfff—f ..I_ m Sao �rJ�IiL ELCn _� w McDonnell_ Douglas � �� Bolsa Ave. .L — I ■N 7. ��ii I"`- i Bolsa Ave. McFadden Ave.Ir, (;olden West Coll je� Edinger Ave. -- 1 -- —— _ a` . �r•�i _ •'j• -/�• -; �c J ;' L L-, Urv■ (■� 'ul. Edinger Ave. ��. '� •��� �� � ICE r— � . Pete16 rs � 1I ��� m��� � I — — loo r ■� --� s,; a -- �rp�HeilAve. Landing �� � ✓ �� — C��I �_ �LJ�Ic Meadowlarklh - f ��. \ \ t1,Rl Qn�0 Golf Club J; _lam 1; � ✓ �ti`,a Li, �� su Lb nsetU. r11 _ _-- Beach i �,911 (�— —.._. Warner Ave. Warne Aver U� J? R r IiJu ��� �i� �� 1�r lei � r I r L ! �♦ E j r,7 ��L,c,i- a ���cL]c ni� jSlaterAve. '\\ Talbert Ave. Bolsa Chloa \% UC:?0�� 41�� Huntington �� \� Wetlands Park •. — — —_ �= ll jne2 z �i Ellis Ave. ui\-\ 0 O ' . ......:... . ...:. '..:.:: : �. � ZoJ aJJ � f�� ��,�: — — � _ — m— -•_ m Garfield Ave. UY - 4L c= 0 f r� ram/ I I( f � �i � � C�J .. - 1' �► .®� �II /Yorktown Seacliff. �,t r:L Ave. 0 h' �� , Golf Course i b, I I_�7 JLL��m■■ c i a �r ten■ i. C r l I t / iron■ G� ® ❑G� 101111111110 u -- rv--� r ■ ,ram — _— � • Adams Avewin no (' n WHO •: ®®®�®♦ ���-� .�■■ l,��J ��, '�� cP ......... ...:..:..... Av . . _•��0®®®O®♦®®♦®�1� fi■■Q� �s=,r—,.. -----= s.a,.: �]G,],�1L,� Indianapolise. ..'..' O gym■ �:� i;_�.:... ..... . .�L`�aim _ J Proposed Strand ♦♦9♦®♦♦j ■s " - J —I LEGEND Development �, 1�9�^v , �� � f, i'" Atlanta Ave. GENERAL PLAN LAND USE AND VACANT LAND •�;" ❑��J�i, I �=� °I '��a Proposed Pacific " / -••—•----- City Boundary :: :.:.:.;' City Development : JI,I� —————— Zone 2 Boundary .' ' ":: Hamilton Ave. Waterfront Hilton •• VACANT MIXED USE Beach Resort Vacant Mixed Use _ ��h, � J d H att Re enc Resort ��,' c ffI � d Y 9 Y .`'' �Ly f and Conference Center Banning Ave. RESIDENTIAL Mixed Use Horizontal g Residential Low Density Mixed Use Vertical AES - Power Plant •, Residential Medium Density �'•��'':, U OPEN SPACE �••. .. Residential Mediun High Density CSDOC Conservation '\•� : f Plant No.2 - Residential High Density Commercial Recreation �•. •,0 COMMERCIAL Park Commercial Regional e9 Shore Commercial Visitor Water Recreation - Commercial General PUBLIC - Commercial Neighborhood _ :\ Public , ® Commercial Office - INDUSTRIAL Right of Way and Bridges - Industrial Railroad 0 4,000 8,000 12,000 Note: The land use information presented is from City's current General Plan and Specific Plans and from the City's 2004 Vacant Land Survey. The locations of some vacant land is approximate. Land use Feet presented is only for purposes of estimating water demands. City of Huntington Beach 2005 Water Master Plan Existing City Land Use O Tetra Tech, Inc. Figure 1-1 ' Chapter 1 - City Characteristics and Projected Growth Table 1-1. City Land Use and Vacant Land Total Net Vacant Total General Plan Area Area 'Yo Vacant land Use Category (ac) (ac) Land Use ---Land - Residential Low Density(3 to 7 DU_/Ac) 5,661 55.4 1.0% 10.7% ' Medium Density(15 DU/Ac) 1,131 54.4 4.8% 10.5% Medium High Density(25 DU/Ac) 1,006 1.6 0.2% 0.3% Hi h Density 30+DU/Ac Imj 19.9 1 18.8% 3.8% ' Subtotal 7,904 131.3 1.7% '25.3% Mixed-Use 430 10.6 2.5% 2.0% Commercial ' Commercial General 614 10.1 1.6% 1.9% Commercial Neighborhood 93 Commercial Office, 56 1.8 3.2% 0.3% ' Commercial Regional 137 - - - Commercial Visitor 67 18.9 28.2% 3.6% Subtotal 967 31 3.2% 5.9% ' Public 1630 41.0 2.5% 7.9% ' Industrial -__ 1,171 123.8 10.6% 23.8% ' Open Space& Other Open Space-Parks 635 95.3 15.0% 18.3% Open Space-Conservation 126 87.0 69.0% 16.7% ' Open Space-Shore 373 - - - Open Space-Water Recreation 243 - O.S.-Commercial Recreation 238 - - ' Railroad 12 - - - Flood Control Channels 206 - - - ' Right of Ways - 3,295 1 - - - Subtotal 5,128 182.3 3.6% 35.1% Total 17,230 520 3.0% 100.0% 1 - - CITY OF HUNTINGTON BEACH TETRA TECH,INC. ' 2005 Water Master Plan and Financing Plan 1-3 1 ' Chapter 1 - City Characteristics and Projected Growth housing. As shown on Figure 1-1, mixed use land use is zoned in the downtown area near the Main ' Pier. The large mixed use area with horizontal integrated housing located between the Seacliff Golf Course and PCH is being developed in accordance with the Palm/Goldenwest Specific Plan. ' A total of 1,615 acres is dedicated to open space including Open Space%Parks (public parks) and Open Space/Commercial Recreation. Huntington Central Park is the largest public park in the City.at 249 acres. The Seacliff Golf Course and the Meadowlark Country Club constitute the commercial ' recreation land use in the City at 238 acres. There are 1,171 acres of industrial land in the City. The largest industrial area is in the northwest corner of the City where Boeing and the McDonnell Center Business Park are located. A second phase of the McDonnell Center Business Park (77-acre area) is currently being developed in the area north of Bolsa Avenue. The second largest industrial area is the Gothard Industrial Corridor that ' borders Gothard Street between Ellis Avenue and Edinger Avenue. Another industrial area in the City is the Southeast Industrial Area, which is actually a composite of ' industrial, public, and open space conservation zoned land uses. The AES Huntington Beach Generating Station (power plant) is located in this area. The power plant recently retooled Generating Unit Nos. 3 and 4 to bring an additional 450 megawatts into the California Electrical grid. A 38-acre land fill is also located in the Southeast Industrial Area. The County Sanitation District of Orange ' County No. 2 Wastewater Treatment Plant is located in the far southeast corner of the City. Both the power plant and the treatment plant are large City water users. The 800-acre Reservoir Hill area that constitutes Zone 2 of the water system is also shown on Figure 1-1. Zone 2 is at higher ground elevations than the rest of the City, which constitutes Zone 1. Water demand has increased:substantially in Zone 2 over the past 10 years as a result of increased ' development in this area. Zone 2 has approximately 60 acres of vacant land remaining. The Zone 2 area is being developed in accordance with the Holly-Seacliff Specific Plan and the Ellis-Goldenwest Specific Plan. The majority of the land in Zone 2 is residential. However, there is a relatively large ' industrial area in the vicinity.of Garfield Avenue/Goldenwest Street with a relatively large mixed use area just south of the Zone 2 industrial area. ' The City also supplies water to Sunset Beach, which is approximately 68 acres of unincorporated land located off Pacific Coast Highway near Huntington Harbor. Sunset Beach land use is not included in Table 1-1. ' 1.3 Population and Housing Historical and projected City population and housing is shown in Table 1-2 and on Figures 1-2 and 1- 3. Between 1980 and 2004, City population and total dwelling units increased 16.2% and 18.8%, respectively. As provided from the Orange County Projections 2004 (OCP 2004), by the Center for Demographic Research at California State University, Fullerton (CDR), the City's population is ' projected to increase 12.2% from 198,043 in 2004 to 222,274 in 2025, with total dwelling units (DUs) increasing 4.0% from 77,221 to 80,297. For comparison, population and total DUs for Orange County are projected to increase 23.5%and 14.4%,respectively, between 2000 and 2025. ' The percentage of vacant DUs in the City decreased from 6.0% in 1980 to 2.65% in 2000 and has held at 2.65% through 2004. The number of people per occupied DU (population density) was 2.63 in ' 2004. If it is assumed that the vacancy percentage remains 2.65%in 2025,then the population density CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 1-4 ' Chapter 1 - City Characteristics and Projected Growth Table 1-2.Historical and Projected City Population and Housing(1980-2025) Historical Projected(") ' ':I 1990 III J _2004 2010 2015 1 20207F 2025 Population 170,505 181,519 189,594 198,043 212,893 217,957 220,759 222,274 ' Annual%Increase - 0.63% 0.44% 1.10% 1.21% 0.47% 0.26% 0.14% Total Dwelling-Units 65,000 72,736 75,662 77,221 79,684 79,988 80,138 80,297 ' Annual%Increase - 1.13% 0.40% 0.51% 0.52% 0.08% 0.04% 0.04% ' Vacant Dwelling Units 3,900 3,857 2,005 2,046 2,112 2,120 2,124 2,128 %Vacant 6.00% 5.30% 2.65% 2.65% 2.65% 2.65% 2.65% 2.65% ' Pop./Occupied DU _ 2.79 2.64 2.57 2.63 2.74 2.80 2.83 2.84 ' a) From Center for Demographic Research, California State University, Fullerton, Orange County Projections 2004. Vacant dwelling units for 2010 through 2025 not provided by CDR but assumed equal to 2.65%consistent with 2004 vacancy%. ' Figure 1-2. City HistoricaUProjected Population&Housing ' Historical Popultaion -0 Projected Population - - -Historical Housing 0 Projected Housing 230,000 105,000 220,000 2004 100,000 i."" ' 210,000 198,034 95,000 2025 200,000 222,274 90,000 190,000 12.2%lncrease ' = 180,000 85,000 0 170,000 80,000 3 _ A ' 160,000 2025 75,000 _ 150A.0 ' 2004 80,297 DU 70,000 0 77,221 DU 4.0%Increase F-' t 140,000 65,000 130,000 60,000 1980 1990 2000 2010 2020 ' Year ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 1-5 1 ' Chapter 1 - City Characteristics and Projected Growth 1 Figure 1-3. Historical/Projected Population Per Occupied Dwelling Unit ' 2025 2.84 2.90 8.0%Increase ' 2.80 D ' A ' II c 2.70 2004 2.63 a n 2.60 s1" i 2.50 i I 2.40 -- - ' 1980 1985 1990 1995 2000 2004 2010 2015 2020 2025 Ye ar ' would increase to 2.84 in 2025, an 8.0% increase. Note that vacant dwelling units are not estimated in OCP 2004. Increased population density is significant because more people per DU results in greater ' water demand per DU. For comparison, the population density for Orange County would also increase approximately 8.0% in ' 2025 (relative to the year 2000) based on the OCP projections for population and total DUs and under the same assumption of a constant vacancy percentage. Huntington Beach has a lower population density than Orange County as a whole. The Orange County population per total (occupied plus ' unoccupied)DUs was 2.94 in 2000 and is projected to increase to 3.18 by 2025. 1 1 1 , ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 1-6 ' Chapter 2 - Water Demand ' 2.1 Overview Water demand has not changed significantly over the past decade even though development has occurred and the City's population has increased during this time. Unaccounted-for water, which is the difference between water supply and water consumption and represents "lost" water, has decreased since 1995/96 and this decrease is attributed in part to a leak detection survey conducted for the City in 1996/97. For the purpose of analysis, existing City potable water demands/were increased 8.5% in ' order to evaluate water system performance during low rainfall periods. Water demands are estimated to increase 6.4% by the year 2025, which represents the Ultimate System for the planning period, as a result of developed land and a projected 8.0% increase in population density. ' 2.2 Historical Potable Water Production ' Historical potable water production for the 13 "water years" 1991/92 through 2003/04 is shown in Table 2-1 and on Figure 2-1. The City's water year is July through June, whereas the City's fiscal year is October through September. The water year format is consistent with the Municipal Water ' District of Orange County (MWDOC) and Orange County Water District (OCWD)requirements. All historical data presented in this water master plan is in accordance with the City's water year. Goldenwest #3, Goldenwest # 4, and Meadowlark # 2 are.City wells that produce non-potable water ' (high color) for irrigation. This non-potable water production has been subtracted from the potable water production in Table 2-1. Goldenwest# 3 was destroyed this year. Test pumping for Well No. 8 and for Well No. 12 and in 1998/99 is also subtracted from potable water production in Table 2-1. ' The affect of rainfall on water demand, primarily irrigation demand, is shown on Figure 2-1. Water production increased slightly from 1991/92 through 1996/97 following the 6-year drought that ended in early 1992. Water production dipped significantly in 1997/98 due to the high rainfall experienced ' from an El Nino weather condition. Rainfall between 1998/99 and 2003/04 was less than the 13-year . average rainfall of 14.5 inches and was as low as 3.5 inches in 2001/02. However, water production only increased slightly during this 6-year period and held constant in 2001/02 when rainfall was only ' 3.5 inches. This can be attributed in part to the water conservation measures undertaken by the City. 2.3 Historical Water Consumption/Unaccounted-For Water ' Historical City water consumption and unaccounted-for water for the eight years 1996/97 through 2003/04 is shown in Table 2-2 and on Figure 2-2. Water consumption was developed from City billing records. Unaccounted-for water is the difference between metered water production and ' metered water consumption and represents "lost" water. Unaccounted-for water occurs for a number of reasons: ' • Water lost from system leaking, i.e. from pipes,valves,pumps,etc. • The City Fire Department performs hydrant testing to monitor the level of fire protection available throughout the City and the City Water Department performs hydrant flushing to eliminate settled ' sediment and ensure better water quality. Neither is metered. However, the quantity of water used is estimated and taken into consideration when calculating unaccounted-for water. • Water used by the Fire Department to fight fires. This water is also not metered. • Customer meter inaccuracies. Meters have an inherent accuracy for a specified flow range. ' However, flow above or below this range is usually registered at a lower rate. Meters become less accurate with time due to wear. ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-1 lllllll� llllll� li♦ � � � � � � � � � � � � � � � � Table 2-1. Historical City Water Supply (1991/92 -2003/04) DomesticHistorical City Total Water Production 32,023 33,595 33,515 34,064 35,099 36,286 34,057 36,143 35,397 35,002 35,045 33,502 34,521 34.481 Non-Domestic Irrigation 262 306 309 327 326 400 269 233 299 328 357 301 360 314 Well To Waste('b) 0 0 0 0 0 0 0 1.706 0 0 0 0 0 131 Total Domestic Supply 31,761 33,289 33,207 33,737 34,773 35,885 33,788 34,204 35,098 34,674 34,688 33,201 34,161 34,036 Ratio to 10-Yr Average__ 0.93 0.98 0.98 0.99 1.02 1.05 0.99. 1.00 1.03 1.02 1.02 0.98 1.00 1.00 Rainfall_(in) 15.4 23.4 1 11.1 1 25.6 1 11.2 14.8 31.0 7.9 8.1 14.2 3.5 14.3 7.4 14.5 (a)Groundwater produced by Goldenwest 43,Goldenwest 44, and Meadowlark 92 is non-potable due to high color and is used for irrigation. (b)Test pumping fof future Well No. 12 and for Well No. 8. Figure 2-1. Historical City Domestic Water Supply (1991/92 - 2003/04) 1E Domestic Water Production 0 Rainfall 35,885 of 36,000 45 788 of 35,000 - 31,761 of 33, _ 33,201 of 40 PI Nino El Nino El Nino 34,000 End of 6-Yr 34,019 AF Average - - 35 Drought 30 33,000 ; 3 32,000 25 = 31000 20 a x q° 30,000 - 15 29,000 10 5 28,000 - 27,000 0 91/92 92/93 93/94 94/95 95196 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 Fiscal Year ' Chapter 2 - Water Demand ' Table 2-2.Historical City Water Consumption/Unaccounted-For Water(1996/97 -2003/04) Historical City Water Consum ption/Prod uction/U naccoun ted-For Water(Acre Feet) ' ' ' ': " " 1 1 1 I I I I I I 03/04(") Average Consumption ' July(a) 3,897 3,430 3,248 3,104 3,813 3,612 4,073 3,014 3,556 August() 2,717 2,861 3,250 2,965 3,110 2,862 2,343 3,240 2,842 ' September(a) 3,520 3,889 3,712 3,920 2,853 3,395 4,107 3,266 3,820 ' October 3,283 3,086 2,462 2,600 3,027 3,245 2,677 3,006 2,923 November ; 2,439 2,628 3,415 3,222 2,954 2,740 2,495 2,210 2,763 ' December 2,787 2,841 2,426 2,447 2,004 1,967 2,557 2,417 2,431 January 2,063 2,089 2,304 2,864 2,894 2,668 2,499 2,102 2,435 ' February 1,817 1,583 1,781 1,946 2,032 1,736 1,672 1,896 1,808 March 2,427 2,379 2,802 2,419 2,100 2,488 2,503 2,185 2,413 ' April 2,545 1,825 1,773 1,756 1,887 2,169 1,943 2,422 2,040 May 2,639 2,335 2,464 3,356 2,908 2,876 2,523 2,674 2,722 June 3,268 2,518 2,976 2,454 2,250 2,412 2,412 3,357 2,706 ' Total 33,402 31,464 32,613 33,053 31,832 32,170 31,804 31,789 32,266 Production 35,885 33,788 34,204 35,098 34,674 34,688 33,201 34,161 34,462 ' Unaccounted-For Water 1 2,483 2,324 1,591 2,045 2,842 2,518 1,397 2,372 2,197 Unaccounted For Water% 6.9% 6.9% 4.7% 5.8% 8.2% 7.3% 4.2% 6.9% 6.4% ' a) All years shown are water years(Jun-Jul)except 2003/04,which is a fiscal year(Oct-Sep). Accordingly, Jul,Aug,and Sep for FY 2003/04 are year 2004 and not 2003. 2003/04 is shown as a fiscal year so that Sep ' 2003,which is overstated as a result of the City switching to monthly meter readings starting in that month, can be omitted. The City read meters every other month prior to Sept 2003. ' The City will also start using the calibrated hydraulic model of the water system, which will be updated as part of this master plan, to help estimate fire hydrant pressures. Only those fire hydrant pressures that are found to be deficient or close to deficient in the model will be verified in the field. ' Utilization of the model will reduce the number of fire-hydrants to be tested, which will further reduce the unaccounted-for water percentage. CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-3 ' Chapter 2 -Water Demand Figure 2-2. Historical City Potable Water Cons umption/Unaccounted-For Water (1996/97-2003/04) 0 Unaccounted-For Water ' Potable Water Consumption —o—Unaccounted-For Water% 36,000 10.0% 0 ' wd 33,0008.0% 3 a 6.0% `o ' 3 30,000 9 4.0% c o � 0 ' a 27,000 2.0% e 24,000 0.0% ' 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 Year ' Unaccounted-for water was 9.9% in 1995/96, but has averaged 6.4% since 1996/97. The decrease in unaccounted-for water can be in part attributed to a leak detection survey conducted for the City in 1996/97. A total of 498 miles of pipeline was surveyed, with a water loss of approximately 67,000 gpd ' quantified from 17 identified leaks. The annual water loss from these leaks was quantified as approximately 24.4 million gallons. The City repaired all of the leaks identified in the survey and the City has since implemented an on-going leak investigation and repair program as a measure to keep ' water losses to a minimum while facilitating cost savings. All years shown in Table 2-2 are water years (June — July) except 2003/04, which is a fiscal year ' (October— September). Accordingly, July, August, and September for FY 2003/04 are year 2004 and not 2003. 2003/04 is shown as a fiscal year so that September 2003, which is overstated as a result of the City switching to monthly meter readings starting in that month, can be omitted. The City read meters every other month prior to September 2003. Billing was corrected after September 2003. The California Urban Water Conservation Council recommends a complete distribution system audit if unaccounted-for water exceeds 10%. With the City currently averaging a little over 6%, an audit is ' not needed. Average daily per capita municipal and industrial (Per Capita M&I) water demand has been used by ' the water industry to measure and compare mean urban water demand. Per Capita M&I water demand includes the municipal, industrial, commercial, residential water demand, and unaccounted-for water associated with each person in the population. It also includes recycled water demand but excludes ' some water usage (such as agricultural usage and replenishment of groundwater storage) which are not directly associated with the population. Historical Per Capita M&I water demand for the City in comparison with the MWDOC service area, which is all Orange County not including the cities of ' Anaheim,Fullerton, and Santa Ana, is shown in Table 2-3 and on Figure 2-3. As shown, Per Capita M&I water demand has averaged 167 gpcd for the City compared with 201 for the MWDOC service area for the eight year period 1996/97 through 2003/04. The lower water demand CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-4 ' Chapter 2 - Water Demand for Huntington Beach is due in part to a milder coastal climate compared with the warmer inland ' climates associated with other parts of Orange County. Table 2-3.Historical Per Capita Municipal and Industrial Water Demands (1996/97-2003/04) Water DemandLUX " II II I I I I I 03/04 Average Huntington Beach Total Demand')(af) 36,286 34,057 36,143 35,397 35,002 35,045 33,502 34,521 34,994 Population(1,000) 186.7 187.6 188.4 189.2 190.8 193.3 195.7 197.5 191.2 Total Per Capita(b) (gpcd) 173 162 171 167 164 162 153 156 164 ' Rainfall(') in 14.8 31.0 7.9 8.1 14.2 3.5 14.3 7.4 12.6 MWDOC(d) ' Total Per Capita (gpcd) 222 199 212 220 203 206 199 205 208 ' a) Total water production including non-potable water well production. b) Total City water production/City population. c) Rainfall at Santa Ana Fire Station(ANA) d) MWDOC service area (all Orange County not including cities of Anaheim, Fullerton and Santa Ana). ' From MWDOC 2005 Regional UWMP. tFigure 2-3. Historical Per Capita M and I Demands (1996/97-2003/04) Rainfall ' Huntington Beach 6 MWDOC Service Area 230 32.0 ' 220 28.0 U a 210 24.0 bD 200 20.0 190 16.0 w ' 4 Q � 180 12.0 a U L a 170 8.0 ' 160 4.0 150 0.0 ' 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 Year CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-5 Chapter 2 - Water Demand Although Per Capita M&I water demand is still a useful measure for evaluating urban water demand, ' the various demand components evaluated separately can offer a more complete perspective. Historical City water demands are shown in Table 2-4 and on Figures 2-4, 2-5, and 2-6 for three user types: 1)residential per capita,2)commercial/industrial,and 3)municipal/irrigation. ' Table 2-4. Historical City Water Demands Per Billing Classifications(1996/97-2003/04) Demands City 1 ' ' ' ': 98 " " II III I I I I 03/04 Avg ' Residential(af) 24,106 22,752 23,352 23,707 22,968 23,429 23,312 23,194 23,353 Population(1,000) 186.8 187.6 188.4 189.2 190.8 193.4 195.7 197.5 191.2 Residential Per Capita (gpcd) 115 108 111 112 107 108 106 105 109 ' Commercial/Industrial a 6,601 6,131 6,350 6,019 5,934 5,683 5,496 5,334 5,944 Municipal/Irrigation a 712,503T2,421 2,812 3,151 2,931 3,059 2,994 3,264 2,892 Rainfall(`)((in) 14.8 31.0 7.9 8.1 14.2 3.5 14.3 7.4 12.6 a) All years shown are water years(Jun—Jul)except 2003/04,which is a fiscal year(Oct—Sep). 2003/04 is shown as a fiscal year so that Sep 2003,which is overstated as a result of the City switching to monthly meter readings starting in that month,can be omitted. b) Does not include unaccounted for water. c) Rainfall at Santa Ana Fire Station(ANA) Figure 2-4. Residential Per Capita WaterDemands (1996/97-2003/04) =Rainfall �—Residential Demands 'c► 120 32.0 c CQ 28.0 115 24.0 p A 20.0 _ ee u _.., =110 16.0 ' Zt, 12.0 •=� U � 105 8.0 Ix L a, 4.0 ' 100 F7 0.0 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 ' Year CITY OF HUNTINGTON BEACH TETRA TECH,INC. ' 2005 Water Master-Plan and Financing Plan 2-6 ' Chapter 2 - Water Demand ' Figure 2-5. Commercial/Industrial-Water Demands (1996/97 -2003/04) 0 Rainfall ' --C�—Commercial/Industlial Demands 6,800 32.0 28.0 _ ' 6,400 24.0 -0 20.0 m 6,000 16.0 ' e 12.0 .0 A 5,600 8.0 ' 4.0 5,200 0.0 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 ' Year Figure 2-6. Municipal/Irrigation Demands (1996/97-2003/04) 0 Rainfall ' —0—Municipal/Inigation Demands 3,400 32.0 28.0 �? 3,000 24.0 -c 20.0 2,600 16.0 8 12.0 .� p 2,200 8.0 x 4.0 ' 1,800 0.0 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 ' Year ' The demand data is from City billing data and does not include unaccounted-for water. Figure 2-4 shows residential (including multi-family residential) demand per person as opposed to total demand per person as shown in Figure 2-3. Residential per capita demand for the most recent four years 2000/01 through 2003/04 averaged 106.5 gpcd, which is 5% less than in 1999/00 (112 gpcd) and 7% ' less than in 1996/97 (115 gpcd). Over the past six years, it also appears the residential response of increased water usage in years of ' low rainfall is less severe than in 1996/97. The downward trend in residential water use can be attributed in part to water conservation programs undertaken by the City including public information programs, school education programs, water survey programs, and plumbing fixture retrofits. ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-7 ' Chapter 2 - Water Demand ' Figure 2-5 shows commercial plus industrial demands based on billing data for these two categories. Commercial and industrial water demand decreased from 6,601 of in 1996/97 to 5,334 of in 2003/04 (17% decrease). Decreased water use for the Commercial and Industrial billing categories can be attributed in part to the City's participation in MWDOC's and MWD's regional commercial, ' industrial, and institutional water-use efficiency programs. However, the predominant reason for this decrease is the gradual implementation by the City of dual meters in place of single mixed-use meters for metering commercial and industrial accounts as well as multi-family residential accounts. This gradual implementation has occurred over the past decade. A mixed-use meter measures total water use (both internal and irrigation water use) as singular water ' use under the Commercial and Industrial billing category. In using dual meters, one meter is dedicated to measuring irrigation water use under the Irrigation billing category with the second meter dedicated to measuring internal water use under the Commercial and Industrial billing category. As the City gradually implements dual meters to replace single mixed-use meters, less water use is attributed to the Commercial and Industrial billing categories and more water is attributed to the Irrigation billing category. The City is employing dual meters in order to better account for irrigation water use. ' Figure 2-6 shows municipal plus irrigation demands *based on billing data for these two user categories. Customers under the Municipal billing category are all City facilities. The majority of Municipal water is used for irrigating City parks such as Huntington Central Park. Other City facilities ' include City Hall, the Civic Center, and City fire stations. Customers under the Irrigation billing category include commercial, industrial, and high density residential (such as apartments) with separate irrigation meters. Seacliff Golf Course is the largest user in the Irrigation billing category. ' Municipal and Irrigation water demand has increased since 1997/98. As discussed above, water use is gradually being shifted from Commercial, Industrial, and Multi-Family residential accounts to Irrigation billing accounts as the City implements dual meters in place of single mixed use meters. ' This is a major reason for the upward trend in Irrigation water use. Also, Irrigation water use is greatly affected by rainfall amounts. Rainfall over the past six years has ' averaged 9 inches per year, which is lower than the historical average of approximately 13 inches per year. Rainfall in 1997/98 was 31 inches. It does appear that the response of increased water use in years of low rainfall is much less severe than in past years as evidenced by an increase in water use of only 4% in 2001/02 when rainfall decreased 75% to 3.5 inches. The City participates in MWDOC's regional landscape irrigation efficiency programs and institutes irrigation efficiency parameters in the City Municipal Code. 2.4 Projected Water Demands City water billing and production data, population data from CDR, land use areas from the City's General Plan, and vacant land from the City's 2004 Vacant Land Survey were used to develop Existing System (year 2005) and Ultimate System (year 2025) unit water use factors and demands. The City provided six years of meter data(1998/99 through 2003/04)for six billing categories. The six billing categories, which constitute the total water consumption for the City, are similar to the land use categories used in the City's General Plan. City domestic water production averaged 21,250 gpm over the 5-year period 1999/00 through 2003/04 ' and this could be taken to be the average "existing" system water demand. However, domestic per capita water demand (total domestic system demand divided by the total population) averaged 158.5 gpcd during this period and domestic per capita water demand has been greater in past years. In ' 1990/91, the fifth year of a 6-year drought, per capita demand was 170 gpcd. In 1996/97, the second of ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-8 Chapter 2 - Water Demand two consecutive low to moderate rainfall years, per capita demand was 172 gpcd. Domestic per capita ' water demand has declined from 166 gpcd in 1999/00 to 150 gpcd in 2002/03 and the 5-year average ending in 2003/04 is 158.5 gpcd. Low rainfall brings higher system demands and the water system must be prepared to supply these higher demands. Because low rainfall or even a drought condition can occur in any given year, it is recommended that the Existing System demand be taken as the five-year average demand 1999/00 ' through 2003/04 multiplied by a factor of 1.085 (172 gpcd/158.5 gpcd), which results in an Existing System demand of 23,060 gpm. This Existing System demand is taken to be the average demand in 2005. As shown in Table 2-5, the billing categories were matched with the land use categories and corresponding existing land use areas to develop existing unit water use factors and existing demands based on an"existing system demand of 23,060 gpm. Unaccounted-for water for the 5-year period was ' applied to each water use category so that demands are consistent with water production. Water use data for unincorporated Sunset Beach is included with City water use data in Table 2-5 using the same billing categories. Existing average-day water demand for Sunset Beach is 209 gpm. Demands for the top 13 water users in the City are shown in Table 2-6 based on billing data from the past five years with the demands increased by a factor of 1.085 to account for a drought condition. ' Eight of the City's top water users were located in their respective water use categories in Table 2-5 and their demands were separated from the general demands developed for each category. ' The AES Huntington Beach Generating Station recently retooled Generating Unit Nos. 3 and 4 and a "worst case" average demand of approximately 455 gpm has been estimated by AES. This demand is approximately 80% greater than their average demand over the past five years of 255 gpm. The demand for the AES power plant was increased from 255 gpm to 455 gpm, increasing the average demand for the Existing System to 23,260 gpm. Water use from the Irrigation billing category was apportioned to the various land use categories in ' Table 2-5 based on estimated use for that land use category. Street right-of-ways were apportioned to each land use category such that unit water use is based on gross acreages. Vacant land totaling 628 acres including right-of-ways was removed from the land use categories and zero demand was ' allocated to vacant land. Global factors were used to adjust demands in the City's H20NET Existing System hydraulic model consistent with the demand information presented in Table 2-5. ' To project Ultimate System (year 2025) demands, the existing residential unit water use factors were increased by 4.0% to account for the projected 8.0% population per dwelling unit increase. The AWWA Research Foundation estimated in 1999 that 45% of residential water use is for interior use ' and 55% is for exterior use. Considering Huntington Beach's moderate coastal climate, it is estimated that interior and exterior water use is evenly split 50%. It is assumed that more people per household would only increase interior water use and not exterior use' Accordingly, it is assumed that the ' projected 8.0%population density increase translates to a 4.0%water use per household increase. The mixed-use land use category is a combination of medium-high to high residential and commercial land uses. The ultimate unit water use factor for this category was increased by 2.5%to account for the ' projected increase in population density. Unit water use factors for other land use categories were assumed not to change from the existing values. CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-9 ' Chapter 2 - Water Demand Table 2-5. Existing System Unit Water Use Factors and Demands Existing Gross Unit Water Billing Corresponding Area(b) Use Factor Demand" ' Residential Low Density 7,176 1,594 7,942 Medium Density 1,378 3,362 3,218 Sunset Beach SFR - - 50 8,554 1,879 11 211 Multi-Family Res. Medium High&High Density 1,351 4,733 4,440 (Irrigation) Mixed-Use 521 4,200 1,519 ' Sunset Beach MFR - - 54 1,872 4 584 6 014 Commercial Commercial 1,074 11480 1,104 (Irrigation) SeacliffGolfCourse (OS-CR) 132 2,502 229 Meadowlark Golf Course(d)(OS-CR) 106 Hilton Waterfront Resort(CV) 13 6,146 55 ' Hyatt Regency Resort(CV) 38 2,968 78 Sunset Beach COM 104 Public 1,608 1,480 1,653 AES Power Plant(e) (Public) 106 6,725 455 CSDOC Plant#2 (Public) 65 4,472 202 Golden West College(P-RL) 119 1,262 104 3,261 1,865 3,985 ' Industrial Industrial 1,020 1,480 1,048 (Irrigation) Boeing(1) 216 1,610 242 1,236 1,516 1 290 ' Municipal Open Space-Parks&Public OS-P 383 2,285 608 H.B. Central Parkre) (OS-P) 249 473 82 632 1571 690 ' Other Open Space-Conservation 22 - Open Space-Shore 373 - Open Space-Water Recreation 243 - ' Railroad 12 - (Irrigation) Other(CALTRANS) 70 Right of Ways 192 - ' Public(Flood Control Channels) 206 - Vacant Land 628 1,676 70 Total 17,231 1,944 23,260 (a) Includes eight major water users as special demands in respective land use category. (b) Including street right of ways associated with each land use category. ' (c) Does not include non-potable water demand. (d) Meadowlark Golf Course irrigated with non-potable well water. (e) Projected"worst case"average demand with the start-up of Generating Units Nos.3 and 4 ' (f) Majority of park irrigated with non-potable well water. ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-10 Chapter 2 - Water Demand Table 2-6. Major City Water Users Annual Billing Demand(") Unit Rank Customer(Land Use Class) Class (gpm) Units Units [Demand 1 AES Power Plant(Public) Commercial 255 Acres 106 3,459 2 Boeing(Industrial) Industrial 242 Acres 216 1,610 3 Seacliff Golf Course(Commercial Rec) Irrigation 229 Acres 132 2,505 4 CS'DOC Plant#2(Public) Commercial 202 Acres 65 4,484 ' 5 Golden West College(Pub—'Res Low) Commercial 104 Acres 119 1,262 6 Huntington Central Park(b)(OS-Park) Municipal 82 Acres 249 473 7 Hyatt Regency Resort(Comm.Visitor) Commercial 78 Acres 38 2,968 8 Huntington By.Sea MHP(Res Med) Apartment 58 Apts 307 271 9 Hilton Waterfront Resort(CV) Commercial 55 Acres 13 6,146 10 Harbour Lights Apts(Res Med High) Apartment 54 Apts 171 458 11 ' Topa Mgt Renda Apts(Res Med High) Apartment 46 Apts 198 332 ' 12 Marina High Sch.(Public—Res Low) Commercial 42 Acres 49 1,247 12 Edison High School ublic_-Res Low Commercial 42 Acres 44 1,388 a) From billing data 1999 through 2002 or 2003.Demands were multiplied by a"drought"factor of 1.085. b) The majority of the park is irrigated from non-potable groundwater from Goldenwest Nos. 3 and 4. ' It was assumed that all land shown as vacant per the City's 2004 Vacant Land Survey would be developed ultimately with the exception of land shown to remain vacant per the City's Specific Plans ' and also vacant land in the Open Space Conservation land use category. As shown in Table 2-7, year 2025 water demand for the City is projected to be 24,760 gpm, which is 6.4%greater than the Existing System demand of 23,260 gpm. Global factors were used to adjust demands in the City's H20NET Ultimate System hydraulic model consistent with the demand information presented in Table 2-7. 2.4.1 Zone 2 Demands ' As shown in Table 2-8, demand in Pressure Zone 2 increased substantially from 1997/98 through 2002/03 due to development primarily in the Holly-Seacliff Specific Plan area and the Ellis- Goldenwest Specific Plan area. The amount of vacant land in Zone 2 has decreased from approximately 240 acres in 1998 to approximately 61 acres in 2004. The 2002/03 demand in Zone 2 of 1,630 gpm was an increase of 123% since 1997/98. As shown, demand has leveled off because of less land developed. With only 61 acres left available for development, demand is only projected to ' increase another 209 gpm to 1,839 gpm ultimately(13%increase).- CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-11 Chapter 2 -Water Demand ' Table 2-7.Year 2025 Unit Water Use Factors and Demands i Gross 1 Category Land Use Category (Acres) (gpad) (gpm) Residential Low Density 7,247 1,658 8,342 Medium Density 1,448 3,496 3,517 Sunset Beach SFR - - 52 8,695 2137 11911 ' Multi-Family Res. Medium High&-High Density 1,378 4,922 4,710 (Irrigation) Mixed-Use 534 4,305 1,596 Sunset Beach MFR - - 57 ' 1,912 5,168 6,363 Commercial Commercial 1,148 1,480 1,180 ' (Irrigation) Seacliff Golf Course(OS-CR) 132 2,502 229 Meadowlark Golf Course("(OS-CR) 106 Hilton Waterfront Resort(CV) 13 6,146 55 Hyatt Regency Resort(CV) 38 2,968 78 ' Sunset Beach COM - - 104 Public 1,656 1,480 1,702 AES Power Plant(Public) 106 6,725 455 ' CSDOC Plant#2 (Public) 65 4,472 202 Golden West College (P-RL) 119 1,262 104 3,383 1855 4111 ' Industrial Industrial 1,167 1,480 1,199 (Irrigation) Boeing(1) 216 1,610 242 1,383 1,632 1,440 Municipal Open Space-Parks&Public OS-P 495 2,285 785 H.B. Central Park(`)(OS-P) 249 473 82 ' 744 1,826 867 Other Open Space-Conservation 126 Open Space-Shore 373 - Open Space-Water Recreation 243 - Railroad 12 (Irrigation) Other(CALTRANS) - - 70 Right of Ways 192 - ' Public(Flood Control Channels) 206 - Vacant Land 1,152 - 1 70 ' Total F 17,269 2,065 1 24,760 a) Existing water use factors for residential land use categories multiplied by 1.04(1.025 for mixed-use)to account for the projected increase in population per dwelling unit of 8.0%. b) Meadowlark Golf Course irrigated with non-potable well water. c) Majority of park irrigated with non-potable well water. ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-12 Chapter 2 - Water Demand Table 2-8. Zone 2 (Reservoir Hill)Demands Projected ' " ': 1998/99 " ' I 1 I2 _2002103I Demand a 730 968 1,284 1,596 1,631 1,630 1,839 Demand m) 453 600 796 989 1,011 1,011 1,140 Annual%Inc. - 33 33 24 2 0 0.5 ' Total%Increase ! - 33 76 119 123 123 158 ' 2.4.2 Peaking Factors Just prior to the 2000 Water Master Plan, the City analyzed water production data for the 11 water ' years 1988/89 through 1998/99 and determined that the system maximum-day demand factor during this period was 1.37 (maximum-day demand/average-day demand) and that the system peak-hour demand factor was 2.17 (peak-hour demand/average-day demand). Peaking factors used by other area water purveyors were evaluated in the 2000 Master Plan, and the 1.37 and 2.17 peaking factors were increased to 1.6 and 2.5, respectively, to provide a 15% safety factor in analyzing Zone 1 system performance. Maximum-day and peak-hour demand factors of 2.0 and 3.5 were used to analyze Zone 2 system performance based on factors used by other area water purveyors for systems in the neighborhood of 1,000 gpm. Note that smaller pressure zones have larger peaking factors. ' As part of this water master plan, daily water demands were analyzed for the years 2001 through 2003 to reassess maximum-day demand factors for both the entire system and for Zone 2. The maximum- day demand for the entire system on July 5, 2002 was 1.55 times greater than the average annual demand in 2002 and 1.54 times greater than the average demand for 1998/99 through 2002/03. The ' maximum-day demand for Zone 2 on July 3, 2002 was 2.37 times greater than the average annual demand in 2002. Rainfall in 2001/02 was only 3.5 inches, which is the lowest rainfall total for at least the past 13 years and is significantly lower than the historical average rainfall of approximately 13 ' inches. The maximum-day demands also correlated with increased water use for the Independence Day holiday. Hourly demand information was not available for analysis. Based on the new maximum-day demand information, the maximum-day demand factors will be increased to 1.8 for the entire system and 2.7 for Zone 2 for system analysis in the water master plan update. These factors include a 15% factor of safety. The peak-hour demand factors will also be increased proportionally to 2.8 for the entire system and 4.7 for Zone 2. ' With the exception of most irrigation demands, domestic water demands typically peak in the morning around 6 a.m. to 8 a.m. with a second peak occurring in the evening around 5 p.m. to 7 p.m. These ' peaking times are a little later on the weekends. City golf course and park irrigation typically occurs between the hours of 10 p.m. and 6 a.m. Because these large irrigation demands peak at a different time, they were separated from the other domestic water demands in order to more accurately analyze ' peak-hour demands in the hydraulic model. The maximum-day and peak-hour demand factors for the golf courses and parks is estimated at 2.5 and 7.5, respectively, which is consistent with the factors reported by other water purveyors in Southern California with an 8-hour irrigation period. CITY OF HUNTINGTON BEACH TETRA TECH,INC. ' 2005 Water Master Plan and Financing Plan 2_13 ' Chapter 2 - Water Demand Other irrigation demands including residential lot, residential common area,and commercial landscape ' irrigation are included with the base "day-time" domestic water demands. The Meadowlark Golf Course and the majority of Huntington Central Park are irrigated with non-potable well water. The Seacliff Golf Course is irrigated 100%from the domestic water system. Demands and peaking factors for the Existing System and the Ultimate System are shown in Tables 2- 9 and 2-10, respectively. Table 2-9. 2005 Demands and Peaking Factors II 1 • ' lAveM iraize Day Demand Golf Course and Parks 987 1 988 ' Remainder of System 21,175 1 010 22,272 Total 22,162 1,011 23,260 ' Maximum-Day Demand Factor Golf Course and Parks 2.50 2.50 2.50 Remainder-of System 1.73 2.70 1.77 ' Total 1.77 2.70 1.80 Maximum-Day Demand ' Golf Course and Parks 2,467 3 2,470 Remainder of System 36,671 2,727 39,398 Total 391-138 2,730 41,868 ' Peak-Hour Demand Factor Golf Course and'Parks 7.50 7.50 7.50 Remainder of System 2.50 4.70 2.59 Total 2.72 4.70 2.80 Peak-Hour Demand Golf Course and Parks 7,402 8 7,410 Remainder of System() 52,971 4,747 57,718 a) Peak-hour demand for golf courses and parks occur at night and peak hour demand for the ' remainder of the system occurs during the day,i.e. they do not occur simultaneously. ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-14 ' Chapter 2 -Water Demand ' Table 2-10.2025 Demands and Peaking Factors I � • 1 ' Zone I Zone 2 Overall � • Average Dav'Demand Golf Course and Parks 1,165 1 1,166 ' Remainder of System 22,355 1,239 23,594 Total 23,520 1,240 24,760 ' Maximum-Day Demand Factor Golf Course and Parks 2.50 2.50 2.50 Remainder of System 1.71 2.70 1.77 ' Total 1.75 2.70 1.80 Maximum-Day Demand ' Golf Course and Parks 2,912 3 2,915 Remainder of System 38,308 3,345 41,653 Total 41,220 3,348 44,568 Peak-Hour-Demand Factor Golf Course and Parks 7.50 7.50 7.50 Remainder of System 2.45 4.70 2.59 Total 2.70 4.70 2.80 ' Peak-Hour Demand Golf Course and Parks 8,737 8 8,745 Remainder of System 54,760 5,823 60,583 a) Peak-hour demand for golf courses and parks occur at night and peak hour demand for the remainder of the system occurs during the day,i.e. they do not occur simultaneously. Park and golf course "nighttime" irrigation demands were not reallocated in the City's existing hydraulic model, but will be reallocated in a new hydraulic model that will be developed for the City in the near future when the City's updated GIS is completed.. 2.5 Fire Flow Demands ' Fire flow is the flow rate of a water supply that is available for fire fighting at a residual pressure of 20 pP Y g g pounds per square inch (psi). City fire flow requirements are set by the City Fire Department and are based on the current Uniform Fire Code (UFC). Fire flow demands are discussed in greater detail in Chapters 5 and 6. CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-15 ' Chapter 2 - Water Demand 2.6 Water Conservation tThe City became a Signatory to the Memorandum of Understanding Regarding Best Management Practices for Urban Water Conservation (Urban MOU) in September 2000. The California Urban ' Water Conservation Council (CUWCC) has responsibility for monitoring implementation of the Urban MOU. MWDOC, as a regional wholesaler of imported water, implements many of the Best Management Practices (BMP) on behalf of its member agencies including the City. As Signatory to ' the Urban MOU,the City has committed to using Good Faith Efforts to implement 14 current BMPs. A BMP as defined in the Urban MOU is a "practice for which sufficient data are available from t existing water conservation practices to indicate that significant conservation or conservation related benefits can be achieved; that the practice is technically and economically reasonable and not environmentally or socially unacceptable; and that the practice is not otherwise unreasonable for most water agencies to carry out." MWDOC implements water use efficiency programs on behalf of the City and other member agencies on a regional basis. MWDOC secures funding from MWD's Conservation Credits Program, the ' United States Bureau of Reclamation, the State Water Resource Control Board, and other sources, to help implement the BMPs. The 14 current BMPs are: BMP 1: Water Survey Programs for Single-Family and Multi-Family Residential t BMP 2: Residential Plumbing Retrofit BMP 3: System Water Audits, Leak Detection and Repair BMP 4: Metering with Commodity Rates for All New Connections and Retrofit of Existing ' Connections BMP 5: Large Landscape Conservation Programs and Incentives BMP 6: High-Efficiency Clothes Washing Machine Financial Incentive Programs BMP 7: Public Information Programs BMP 8: School Education Programs BMP 9: Conservation Programs for Commercial, Industrial, and Institutional Accounts BMP 10: Wholesale Agency Assistance Programs ' BMP 11: Conservation Pricing BMP 12: Conservation Coordinator BMP 13: Water Waste Prohibition BMP 14: Residential ULFT Replacement Programs Potential BMPs that CUWCC is currently studying for inclusion as a BMP include: ' 1. Rate Structure and other Economic Incentives and Disincentives to Encourage Water Conservation 2. Efficiency Standards for Water Using Appliances and Irrigation Devices ' 3. Replacement of Existing Water Using Appliances and Irrigation Devices 4. Retrofit of Existing Car Washes 5. Gray water Use ' 6. Distribution System Pressure Regulation 7. Water Supplier Billing Records Broken Down by Customer Class 8. Swimming Pool and Spa Conservation including Covers to Reduce Evaporation ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-16 ' Chapter 2 - Water Demand ' 9. Restrictions or Prohibitions on Devices that use Evaporation to Cool Exterior Spaces 10. Point of Use Water Heaters,Recirculating Hot Water Systems and Hot Water Pipe Insulation 11. Efficiency Standards for New Industrial and Commercial Processes As a result City water conservation efforts, a downward trend in City water consumption can be seen especially in regard to residential per capita water consumption. Historical City water demands are shown on Figures 2-7, 2-8, and 2-9 for three user types: 1) residential per capita, 2) commercial/industrial, and 3) municipal/irrigation. Figure 2-4 shows a downward trend in residential per capita water use, which can be attributed in part to water conservation programs undertaken by the City including public information programs, school education programs,water survey programs,and plumbing fixture retrofits. ' Figure 2-5 shows decreased water use for the Commercial and Industrial billing categories, which can be attributed in part to the City's participation in MWDOC's and MWD's regional Commercial, Industrial, and Institutional water-use efficiency programs. However,the majority of this decrease can be attributed to the advent of more dedicated landscape meters in lieu of mixed-use meters, which has ' decreased water use attributed to the Commercial and Industrial billing categories, while increasing water use attributed to the Irrigation billing category. This and low rainfall over the past 6 years are the primary reasons for increased Municipal and Irrigation water demand as shown in Figure 2-6. The City participates in MWDOC's regional landscape irrigation efficiency programs and institutes irrigation efficiency parameters in the City Municipal Code. As an additional measure to reduce ' irrigation water use, it is recommended that the City look into retrofitting City parks with weather- based irrigation timers. Weather-based irrigation timers operate on the principle of scheduling irrigation based on evapotransportation(ET), which is a function of weather conditions and plant type. ET is the quantity of moisture that is both transpired by the plant and evaporated by the soil and plant ' surfaces. ET irrigation scheduling systems utilize micro-processing devices that calculate irrigation schedules based on weather conditions, plant type, and site conditions. Weather-based irrigation timers adjust irrigation schedules automatically as weather changes, resulting in much higher irrigation ' efficiencies. 1 ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 2-17 ' Chapter 3 - Water Supply ' 3.1 Overview The City's existing sources of potable water supply consist of ten groundwater wells, three imported ' water connections, and three emergency connections with neighboring cities. Orange County Water District (OCWD) currently allows the City and other Orange County Groundwater Basin producers to produce groundwater up to a uniform-set percentage of their total water supplies used to meet demands or to pay a production penalty for groundwater produced above this percentage. This Basin Production Percentage is currently set at 64%. ' The City also purchases supplemental, treated, imported_water from the Municipal Water District of Orange County(MWDOC), which is a member agency of the Metropolitan Water District of Southern California (MWD). The City has historically used more groundwater production than imported water ' purchases to meet demands. City groundwater production is less expensive than the purchase of imported water. The City's water supply consistently meets or exceeds all State and federal potable water quality ' standards. The City maintains a water-quality monitoring program consistent with State of California Department of Health Services (DHS)requirements. 3.2 City Water Supplies As a member agency of OCWD, the City is entitled to groundwater from the Orange County Groundwater Basin. The basin, which is managed by OCWD, is imajudicated. The City and other basin producers pay a Replenishment Assessment(RA) to OCWD for all groundwater produced up to a percentage of the producer's total water supplies used to meet demands. This is called the Basin Production Percentage(BPP),which is set uniformly for all producers. For 2003/04, OCWD lowered the BPP from 75% to 66% and increased the RA from $127/af to $149/af in consideration of low groundwater levels. For 2004/05, the BPP was unchanged but the RA ' was increased to $172/af. OCWD further increased the RA to $205/af and further decreased the BPP to 64%for 2005/06. ' In addition to the RA, groundwater production above the BPP is charged a fee called the Basin Equity Assessment (BEA). The BEA is calculated by OCWD for each producer based on the producer's production costs, such that the cost of the groundwater above the BPP is essentially the same as ' purchasing imported water through MWD. City groundwater production cost approximately $248/af in 2004/05 (including the RA and energy but not including other well operation and maintenance costs). The City currently purchases supplemental, treated, imported water from MWDOC for ' $472.50/af (exclusive of connection fees and readiness to serve charges). City groundwater production cost will increase in 2005/06 as a result of the RA increasing from $172 of to$205/af. The City's water supply has averaged 56% groundwater production and 44% imported water purchases over the past eight years (1996/97 — 2003/04) as shown in Table 3-1 and on Figure 3-1. However, the City participates in the In-Lieu or Cyclic Storage Program offered by OCWD and MWD, when available. It is a groundwater replenishment program that refills the groundwater basin ' by avoiding pumping, and is usually offered in the lower demand period of October through April. In the program, OCWD requests the City to leave a number of its wells turned off. The City then takes replacement water through its imported water connections which is purchased by OCWD from MWD ' through MWDOC. OCWD purchases the water at a reduced rate, and then bills the City the amount it ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 3-1 Chapter 3-Water Supply would have had to pay for pumping energy and replenishment assessment if it had produced the water ' from its wells. Table 3-1. Groundwater Production vs. Imported Water Purchases ' (1996/97-2003/04) Water Year ' 96 ' ' ': ': " II 1 It I I I I I 03/04 Average ' Groundwater 26,104 20,001 19,584 20,123 18,245 24,583 14,126 13,188 19,494 Imported Water 10,181 14,056 16,559 15,254 16,756 10,458 19,375 21,082 15,465 ' Total 36,285 34,057 36,143 35,377 35,001 35,041 33,501 34,270 34,959 %Imported 28% 41% 46% 43% 48% 30% 58% 62% 44% ' In-Lieu Imported 0 6,121 7,105 5,286 1,746 0 10,527 6,394 4,647 Adjusted% ' Imiported 28% 23% 26% 28% 43% 30% 26% 43% 31% Figure 3-1. Groundwate r Production vs. Imported Water Purchases (1996/97-2003/04) ■Imported Water E9 In-Lieu Imported El Groundwater 40,000 35,000 0 309000 28% 23% 26% 28% 30% 26% 43% 43% 259000 20,000 r�i•i �S i^ J i 15,000 10,000 p 5,000 6 �, ' 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 fiscal Year In-lieu imported water purchases have been approximately 13% of the total City water supply over the past eight years, with imported water purchases not applicable to this program at approximately 31% ' as shown in Table 3-1 and on Figure 3-1. In-lieu water is regarded as groundwater production when calculating a producer's BPP. In addition to being less expensive, local groundwater is also considered a more reliable source of ' supply. Imported water must be conveyed to the City through long transmission pipelines that cross ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 3-2 ' Chapter 3-Water Supply active earthquake faults, which makes the imported water supply system susceptible to damage in a seismic event. These transmission pipelines also operate at high pressures (outside of the City limits), which make them susceptible to rupture from a pressure surge. ' 3.3 Water Quality The Safe Drinking Water Act (SDWA), which was enacted in 1974, is the main federal law that ' regulates potable drinking water standards. Under SDWA, the U.S. Environmental Protection Agency (EPA) sets standards for drinking water quality and oversees the states, localities, and water suppliers who implement those standards. ' State potable water quality standards are set by the State of California Department of Health Services (DHS). The potable water quality standards listed in the Title 22 California Code of Regulations include primary and secondary maximum contaminant levels (MCLs). Primary MCLs are established ' for a number of organic and inorganic chemicals, trihalomethanes, and radioactivity as they relate to public health. Secondary MCLs are established for chemicals or characteristics as they relate to taste, odor, or appearance of drinking water. These State MCLs are the same or in some cases more stringent ' than the Federal MCLs. The City's water supply consisting of groundwater and imported water consistently meets or exceeds ' all State and federal potable water quality standards. The City maintains a water-quality monitoring program consistent with DHS requirements. As a result of the high quality of the City's source water supplies, the only water treatment conducted ' by the City is disinfection and fluoridation. The City disinfects at each of its well sites through the injection of gaseous chlorine (Clz) typically at a rate of about 1.0 milligram per liter (mg/1) residual. The City receives imported water that has been disinfected by means of chloramination typically at a rate of about 2.2 mg/1 residual. The City has fluoridated its water supply to aid in the development of healthy teeth since 1972. The ' natural fluoride concentration of the groundwater ranges from 0.3 to 0.4 mg/l and the imported water supply has a fluoride content of 0.2 mg/l. The City increases the fluoride concentration to between 0.70 to 1.30 mg/l via injection stations located at all wells and imported water connections. t3.3.1 Proposed New Water Quality Rules and Standards Arsenic ' A new federal water quality regulation will be a reduction in the MCL for arsenic, an inorganic chemical, from 50 parts per billion (ppb) to 10 ppb. The revised MCL must be complied with ' beginning in January 2006. The average arsenic level in' the City's water supply has historically ranged between "Not Detected" to 3 ppb and has averaged "Not Detected". Accordingly, treatment of City supply sources to meet the stricter arsenic MCL is not anticipated. ' Groundwater Rule EPA is proposing the Ground Water Rule (GWR), which specifies the appropriate use of disinfection in groundwater and addresses other components of groundwater systems to protect against bacteria and viruses in potable groundwater supplies. The requirements of the proposed GWR include State- conducted system sanitary surveys and compliance monitoring for systems that disinfect to ensure that CITY OF HUNTINGTON BEACH TETRA TECH,INC. ' 2005 Water Master Plan and Financing Plan 3-3 ' Chapter 3 -Water Supply they reliably achieve 99.99% (4-log) inactivation or removal of viruses. The City currently disinfects ' at all of their well sites through the injection of gaseous chlorine. Radon ' Radon is a naturally-occurring radioactive gas that may be found in indoor air and in drinking water. Exposure to radon can increase the risk of getting cancer. Radon in soil under homes presents a greater ' risk than radon in drinking water. There is currently no MCL for radon in drinking water. EPA has developed a proposed regulation to reduce radon in drinking water that includes a "Multimedia Mitigation program"option to reduce radon in air. ' The proposed regulation offers two options: • Option 1: States can choose to develop enhanced state-wide programs to address the health risks from radon in indoor air known as Multimedia Mitigation (MMM) programs while reducing radon levels in drinking water for individual water systems to 4,000 pCi/L or lower (picoCuries per liter, a standard unit of radiation). EPA is encouraging states to adopt this ' option because it is the most cost-effective way to achieve the greatest radon risk reduction. • Option 2: If a state chooses not to develop an MMM program, individual water systems in that ' state would be required to either reduce radon in their system's drinking water to 300 pCi/L or develop individual local MMM programs and reduce levels in drinking water to 4000 pCi/L. Water systems already at or below 300 pCi/L standard would not be required to treat their water for radon. ' Radon in the City's water supply averaged approximately 395 pCi/L in 2002, 388 pCi/L in 2003, and 327 pCi/L in 2004. Radon treatment alternatives include aeration and treatment with granular ' activated carbon filters. Staize 2 Disinfectant Byproduct Rule ' Chlorine and other.chemical disinfectants used by public water systems to control microbial pathogens in drinking water interact with organic and inorganic materials in source water to form disinfection ' byproducts (DBP). Epidemiology and toxicology studies have shown a link.between disinfection byproducts, specifically total trihalomethanes (THM) and haloacetic acids (HAA), and some forms of cancer. ' EPA's Stage 1 Disinfectant Byproduct Rule (DBR) requires water systems to meet THM and HAA MCLs of 80 ppb and 60 ppb, respectively. Compliance is determined by calculating the running annual averages of samples from all monitoring locations across the system. TTHM and HAA5 averaged 17 and 6; 24 and 9; and 17 and 6; for the Huntington Beach water system in 2002,2003, and 2004, respectively. These values are well below the MCLs. ' Under the proposed Stage 2 DBR, systems will be required to conduct an evaluation of their distribution system to identify the locations with high THM and HAA concentrations. This evaluation could change the locations currently monitored. Also, levels of THM and HAA can vary significantly from one point in a water distribution system to another. Under the proposed Stage 2 DBR, compliance with the MCLs for THM and HAA will be calculated for each monitoring location in the distribution system (locational running annual average), as opposed to the current less stringent CITY OF HUNTINGTON BEACH TETRA TECH,INC. ' 2005 Water Master Plan and Financing Plan 3-4 ' Chapter 3 -Water Supply method of calculating running annual averages of samples from all monitoring locations across the ' system. The Stage 2 DBR will be implemented in two phases. During Phase 1 of the implementation, the ' MCLs for THM and HAA will be 80 ppb and 60 ppb, respectively, based on running system-wide annual averages (the current methodology) at the current monitoring sites. Additionally, locational running system averages (sample site specific) of 120 ppb and 100 ppb for THM and HAA, respectively, will be introduced. During Phase 2, the compliance sites will be changed based on the system-wide evaluation for high DBP sites and the locational annual averages will be reduced to 80 ppb for THM and 60 ppb for HAA. ' 3.4 Groundwater Supply The City and other OCWD member agencies are charged the RA for groundwater produced from the ' Orange County Groundwater Basin (groundwater basin) up to the BPP, and are charged an additional BEA for groundwater produced over this percentage. The BPP is uniform for all members and is set at 64% for 2005/06. The RA is set at.$205/af for 2005/06. In recent years the BPP has been ' decreased and the RA has been increased in consideration of lower groundwater levels. By decreasing groundwater use and shifting the pumping in the basin inward away from the coast, OCWD hopes to hold back seawater intrusion. The lower groundwater levels were caused by gradually increasing ' groundwater production from 1993/94 through 2002/03 and drought conditions from 1998/99.through 2002/03 that reduced the amount of local water available to refill the basin. ' 3.4.1 OCWD Projects OCWD has on-going and proposed projects to protect,clean, and refill the groundwater basin. ' Talbert Seawater Intrusion Barrier Since 1975, OCWD has operated a seawater barrier to keep seawater from mixing with and ' contaminating potable groundwater. Fountain Valley's Seawater Intrusion Barrier is a series of 28 injection wells running along Ellis Avenue from Euclid Street to Newland Street. A mixture of wastewater purified at Water Factory 21 in Fountain Valley and deep well water is pumped to the ' wells and injected into the ground to create an underground dam that blocks seawater from entering the groundwater basin. OCWD has just completed a project to further protect the groundwater supply with an expansion of ' the seawater intrusion barrier. OCWD recently filed a report under the California Environmental Quality Act (CEQA) as a first step toward a construction project to install piping in Ellis Avenue and drill injection wells in the Southern California Edison property near Newland Street(Harper Park). ' Groundwater Replenishment System ' The Groundwater Replenishment System, which is scheduled to go on line in 2007, will divert highly treated sanitary wastewater from the Orange County Sanitation District that is currently discharged into the ocean, and treat it through advanced techniques, including microfiltration, reverse osmosis and ' ultraviolet disinfection and hydrogen peroxide. The treated water will then be injected into the groundwater at strategic injection sites. The injected water will help fortify the seawater intrusion barrier or will be percolated into deep aquifers, where it will eventually become part of the potable groundwater supply. The treated water will exceed all federal and state drinking water standards. The ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 3-5 i iChapter 3—Water Supply treated water will be near-distilled water that will improve the overall quality of the groundwater basin iby lowering the mineral content. 3.4.2 City Groundwater Production ' The capacities of the City's ten active potable water wells are shown in Table 3-2. Well No. 1 is scheduled to be re-drilled in 2006 and it is estimated that the capacity of this well will increase from i 500 gpm to approximately 750 gpm when this work is completed. Well No. 12 is a new well that was recently construction. The locations of the City's potable water wells are shown on Figure 3-2. Table 3-2. City Potable Water Well Capacities and Normal Supplies NormalCapacity Supply No._1(_e) Active 750 350 ' No.3 Active 2,500 1,750 No. 4 Active 500 450 iNo. 5 Active 3,000 3,000 No.6 Active 3,000 2,500 ' No. 7 Active 3,400 3,400 No.9 Active 3,000 1,750 No. 10 Active 3,400 2,700 j No. 12 Active 3,000 3,000 ' No. 13 Active 2,500 2,500 Total(gpm)—100%(b) - 25,050 21,400 Total m —54%(b) - 13,570 11,592 Total_ a —54%(b) - 21,886 18,697 ' (a) Scheduled to be re-drilled in 2006 with capacity increased from 500 gpm to an estimated 750 gpm. (b) Theoretical supply if the City operated all of their wells 100%of the year. However,the City operates ' each well only 6 to 7 months a year in order to preserve the well(6.5 months=0.54 year). With the re drilling of Well No. 1, the City will have a total potable water well capacity estimated at 25,050 gpm. However, many of the City's wells are not normally operated at 100% capacity in ' consideration of several factors including groundwater level, water quality, and chlorine feed. The City prolongs the life of the wells and associated supply equipment when operating at less than capacity. The normal operating supplies for the City's wells are also shown in Table 3-2. Overall, ' the wells are operated at about 85%of total capacity. f ' CITY OF HUNTINGTON BEACH TETRA TECH,INC. 2005 Water Master Plan and Financing Plan 3-6