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HomeMy WebLinkAbout2004-10-25 City Council (12)City of Palo Alto C ty Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE:OCTOBER 25, 2004 CMR:449:04 TITLE:WATER PURCHASE .PROJECTIONS IN SUPPORT OF THE ENVIRONMENTAL REVIEW PHASE OF THE REGIONAL WATER SYSTEM’S CAPITAL IMPROVEMENT PROGRAM This report on the volume of water Palo Alto estimates it will purchase in 2030 fronl San Francisco is for the Council’s inforlnation only. No action is required. BACKGROUND In May 2002, the San Francisco Public Utilities Conm~ission (SFPUC) adopted a long- term capital improvement program (CIP) to repair, replace and seismically upgrade the regional water system’s pipelines and rennets, reservoirs and dams. Palo Alto and the other member agencies of the Bay Area Water Supply and Conservation Agency (BAWSCA) are on record in support of the SFPUC’s CIP program for the regional water system. The $3 billion CIP is a large undertaking that includes building new pipelines to lneet existing and projected loads and increasing operational flexibility to enhance emergency responsiveness. The environlnental review process is a major step in implememation of the CIP. In order for it to plan, size, perlnit and design the projects in its CIP, the SFPUC must have estimates of how much water the regional system will need to provide in the furore. The project plamfing and permitting process must also consider alternative means for addressing fl~ture water needs, including other sources of supply and conservation. For the past year, a consultant to the SFPUC has been preparing projections of how nmch water each BAWSCA agency will need in the furore. The consultant is working with the staff of each individual agency to ensure that the basis for the purchase projections, and the results, are consistent with local land use plans and other characteristics of the comlnunity. CMR:449:04 Page 1 of 4 The first step in that process was to develop long-tel~n water demand projections for San Francisco and each BAWSCA agency. This step has been COlnpleted and an information report to the Council [CMR:106:04] on May 15, 2004 showed that the long-tem~ water forecast developed for Palo Alto was consistent with City policies and the adopted land- use plans. The next step in the process was to evaluate the potential for implememation of water conservation measures in San Francisco and each BAWSCA agency. The consultant used the end-use model developed for the long-term projections to analyze the potential for and the cost-effectiveness of thirty-two water conservation measures. In this analysis, a group of conser~vation measures was determined to be cost-effective if implemented in Palo Alto. These measures were grouped into three potential conservation programs, Portfolio A, Portfolio B, and Portfolio C. Portfolio A consists of a group of measures that were expected to save 1.6% of the long-term demand. Portfolio B contains all of Program A’s measures and additional measures that are expected to save 3.2% of the long-terln demand. Portfolio C, the 1host aggressive portfolio, contains, all of Program B’s measures and all additional cost-effective measures expected to save 4% of the long- terln demand. On September 13, 2004, the Council received an information report [CMR:395:04] on this evaluation concluding that the long-term conservation savings potential for Palo Alto is between 1.6% and 4% of the water demands in 2030. DISCUSSION Water Purchase Proiections The final step in the process is to determine how much water Palo Alto plans to purchase from San Francisco by 2030. The key components of this determination include the anticipated implementation of water efficiency programs and the expected development of recycled water. The water demand projection for 2030 is about 16,500 acre-feet per year (AFY). Palo Alto currently uses about 1,300 AFY of recycled water and has no plans in place to expand its usage of recycled water. The range of conservation savings was estimated to be between 260 AFY (1.6% of long-term demand)and 660 AFY (4% of long-term demand). The table below shows these calculations for the range of conservation savings. Water Use in Acre-Feet/Year Water Water Water Conservation Conservation Conservation Portfolio A Portfolio B Portfolio C Demand Projection for 2030 16,500 16,500 16,500 Current Recycled Water Use 1,300 1,300 1,300 Future Recycled Water Use 0 0 0 Water Conservation Estimate 260 525 660 Water Purchase Estimate 14,940 14,675 14,540 CMR:449:04 Page 2 of 4 As the table shows, if the high end of the range is used as a good estimate of long-term peru~anent water savings due to conservation measure implementation, then the resulting estimate of purchase requirements from San Francisco is about 14,540 AFY. This is the estimate provided to the SFPUC for Palo Alto’s future water purchase volume for purposes of completing the environmental doculnentation for the regional system’s capital improvemem program. Action by the Director of Utilities In May 2004, each BAWSCA agency was asked to confirm that the long-term forecast that the SFPUC developed is consistent with its adopted land-use plans and all other assumptions used in the model. According to Palo Alto’s Municipal Code (Section 2.08.200 (a)), the Director of Utilities has the dutv: "to coordinate the forecasting of the city’s long-range utility needs" and "to forecast and plan the acqnisition and disposition of sufficient least-cost resource supplies to meet existing and furore supply requirements in an enviromnentally acceptable manner." Therefore, the Director of Utilities concun’ed that the long-term water demand forecast presented by the SFPUC reflects anticipated future water demands and that the data used to develop the forecast is accurate. In August 2004, the Director of Utilities reported to the SFPUC that 1.4% to 4% of long- term demand was a reasonable range of potential water conservation savings for long- range pla~ming purposes. This estimate .was based on the detem~ination of the cost- effective water consergation measures of the thirty-two measures evaluated.. At this time, the Director of Utilities will report to the SFPUC that the City of Paio Alto estimates it will purchase 14,540 AFY from the SFPUC in 2030. This estimate will be used by the SFPUC for purposes of planning and environmental review and conforms to the previously reported long-range demand projection and the conservation savings range. It was noted that the estimate is subject to change based on changed conditions, such as the furore’ cost of water, new pricing structures, and other modified contract arrangements. POLICY IMPLICATIONS Projecting resource needs is consistent with City policies and directives, including the Utilities Strategic Plan (USP) Objective 2: Invest in utility infrastructure to deliver reliable service. An in-depth examination of water efficiency measures is consistent with City’s sustainability efforts to conserve water and to increase market penetration of water efficiency programs in Palo Alto and with USP Key Strategy 7: Implement programs that improve the quality of the environment. The long-texan water purchase forecast is consistent with the City of Palo Alto’s Comprehensive Plan assumptions pertaining to local land use and growth management CMR:449:04 Page 3 of 4 policy limiting ff~ture urban development to currently developed lands within the urban service area. RESOURCE IMPACT There is no resource impact fronl making this declaration to SFPUC. It does not commit to a particular amoum of water or obligate the City to any payment strealn. ATTACHMENT CMR:106:04 Water Long-Term Demand Projection CMR:395:04 Water Conservation Savings Potential PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: CHYE ~~)reHN~.~o.f~/~/~\ S~nior Resource Plalmer EMIL ~ HA~RI~SON Assistant City Manager CMR:449:04 Page 4 of 4 TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE:MARCH 15, 2004 CMR:106:04 TITLE:WATER LONG-TER3{ DEMAND PROJECTION This report on Palo Alto’s long-term water demand is for the Council’s information only. No action is required. BACKGROUND In May 2002, the San Francisco Public Utilities Commission (SFPUC) adopted a long- term capital improvement program (CIP) to repair, replace and seismically upgrade the regional water system’s pipelines and runnels, reservoirs and dams.. The regional w.ater system CIP is expected to cost about $2.9 billion. In November 2002, San Francisco voters approved a $1.6 billion bond issue to pay for its share of the regional water systeln capital improvements ($900 million) and capital improvements for its city sewer systen~ ($700 million). As part of the regional water system capital improvements, the SFPUC is plalming to ensure tlaat the system can meet projected regional water demands. The SFPUC intends to fl_~lly comply with the Califonfia Enviromnental Quality Act (CEQA) in implementing the CIP. The CEQA process requires that the~otential for growth that might be induced by the potential project(s) be evaluated. City and county general plans, which are required by law and are also subject to CEQA, must address the broad range of issues associated with a city’s or county’s development. General plan policies are intended to underlie most land use decisions within the jurisdiction. As such, the general plans represent the best existing information addressing land use decisions and evaluating growth for the areas that rely upon the San Francisco regional water system. Because of this relationship, the SFPUC has obtained copies of and recorded the stares of each general plan and individual elements. The SFPUC will identify whether or not each agency’s land use plan represents a finn basis for facility planning (i.e. whether it is current, has been formally adopted, has been subjected to a recent enviromnental review, CMR:106:04 Page 1 of 7 and has a schedule for updating the Plan). On Jnly 21, 2003 a letter was sent to the land use decision making authorities in the area served by each Bay Area Water Snpply and Conservation A,gency (BAWSCA) member agency, requesting copies of its general plal~elements and the relevant environmental evaluation document. As the formal environmental review process is initiated for. the SFPUC’s CIP, a more comprehensive review of the general plans will occur, in which the demand projections for the wholesale service area will be reviewed for consistency with the general plans. The SFPUC has stated its intention to work in partnership with the BAWSCA agencies in deterlnining the next steps in cases where demand projections may not be entirely consistent with adopted general plans. Palo Alto has made its adopted Comprehensive Plan available to the SFPUC. Palo Alto and the other member agencies of BAWSCA are on record in support of the SFPUC’s CIP program for the regional water system. The $2.9 billion CIP is a large undertaking that includes building new pipelines to meet existing andprojected loads and to increase operational flexibility to enhance elnergency responsiveness. The environmental review process is a major step in receiving approvals to proceed towards implelnentation of the CIP. One of the foundations of the environmental documentation is to ensure that the regional water system’s projected demands emanate from the land use planning agencies’ plans for the comlnnnities served by the regional system. In February 2003, the SFPUC held its first workshop to introduce the BAWSCA agencies to teclmical studies being completed, in cooperation with BAWSCA, to support the implementation of the regional water system CIP. These technical studies include updating regional demand projections used in the SFPUC’s Water Supply Master Plan and developing water supply concepts to lneet those demands. These studies are designed to provide technical baseline data critical to the environlnental review process that will be required to implement regional water system CIP projects. As the SFPUC began the planning, design and environmental review phases for many of the capital improvement projects, the BAWSCA agencies, including the City of Palo Alto, were asked to submit a 30-year water baseline demand forecast. In May 2003, the SFPUC held a second workshop in order to review the data provided.by various agencies on water use within these agencies’ service area; review the model intended to be used for developing futttre demand projections for each agency; and introduce water supply themes to meet those demands. The third workshop on wholesale customers’ demand projections was held in September 2003. By this time, it was determined that SFPUC’s consultant wou]d prepare an individual model for each agency so that methodology and assnmptions would be uniform across the entire region se~wed by SFPUC. The model is a very detailed end-use model that requires data from each agency about the nmnber of single- and multi-family CMR:106:04 Page 2 of 7 households as well as the number of commercial, industrial and institutional customers. The monthly water use for each customer category was input to the model to detem~ine the percentage of water use that is outside versus inside. There£ore, actual data and census data was used to develop the model for each agency. The population projections as developed by the Association of Bay Area Governments (ABAG) were used for forecasting population for the period 2002 to 2030. ABAG projections are based on each agency’s land-use plans. Palo Alto’s Comprehensive Plan was used by ABAG to create its projections for Palo Alto. The SFPUC’s consultant met individually with each agency in October 2003 to ensure that each agency’s model accurately reflected the agency’s circumstances. Palo Alto provided additional information regarding its historical water conse~wation programs, which were then incolporated into the model for Palo Alto. DISCUSSION On January 23, 2004 SFPUC provided the final long-term demand projections for each agency and asked that each agency confirm the projections. The SFPUC provided the input assumptions and output produced from the model it developed to project demand over the next 30 years. Staff has determined that the forecast SFPUC prepared for the period 2000 to 2030 is donsistent with key data drivers such as number of housing units, lmmber of employees for the commercial and industrial sectors, mad population. The major drivers used by SFPUC’s long-term water use forecast model include water conservation, population and employment growth, and other issues. The detailed model for each agency has estimated how many of each water-using fixture exists in each custolner category. For example, the number of toilets, showers, clothes washers, urinals, etc. is estimated for the residential and non-residential customers. Then, the model is calibrated by making sure that the lnonthly water use for each of those fixtures and the number of fixtures matches the actual historical usage. Once the model is calibrated~ future use projections are developed using population and employlnent projections developed by ABAG. The natural turnover of each water-using fixture is estimated as well. The effect of new plumbing codes and appliance standards have also been considered. California la,w requires that for new construction after January 1, 1992, only fixtures meeting the following standards can be installed in new buildings: ~Toilet- 1.6 gallons per flush maxin~uln -Urinals - 1 gallon per flush maximum *Showerhead and faucets - 2.5 gallons per minute at 80 pounds/square inch Replacement of fixtures in existing buildings is governed by the Federal Energy Policy Act that requires only the above can be sold after January 1, 1994 for residential use and CMR:106:04 Page 3 of 7 January 1, 1997 for COlnmercial toilets. This law governs natural replacement New clothes washers are required to meet energy efficiency standards in 2004 and 2007, which will lead to water efficiency improvements by no later than 2007. Initial proportions of water efficient fixtures was based on saturation studies provided by the Alameda County Water District, the Santa Clara Valley Water Disirict and East Bay Municipal Utilities District plus other information on new teclmology and new regulations. The main assumptions used in the projections are listed in Table 1 below. Table 1: SFPUC Baseline Demand Projections Assumptions for Model Base Year Popnlation and employment projections, 2002- 2030 Number of water accounts for base year, water usage by customer category, and Unaccounted-for water (difference between amount of water purchased and the amount of water consumed) Indoor/outdoor water use split by customer category Residential end uses (division of total water use into specific end uses - e.g. toilets, showers, irrigation, etc.) Non-residential end uses (division of total water use into specific end uses) Residential fixture efficiency - current installation rates Water savings for fixtures, gal/capita/day Non’residential fixture efficiency current installation rates Residential frequency of use da, ta, toilets, showers, washers, uses/user/day Non-residential frequency of use data, toilets and urinals, uses/user/day Natural replacement rate of fixtures Future residential use Future commercial/industrial use Future public and other use 2001 ABAG Projectiohs - December 2002 Actual historical monthly data for 2001 fbr Palo Alto 5-year average of actual historical data Estimated from actual monthly data American Water Works Association Research Foundation (AWWARF) report: "Residential End Uses. of Water" AWWARF report: "Commercial and Institutional End Uses of Water" 2000 Census, housing age by type of dwelling plus natural replacement AWWARF report: "Residential End Uses of Water" 2000 Census, assume commercial establishments built at same rate as housing, plus natural replacement Within ranges in AWWARF report: "Residential End Uses of Water" Within ranges in AWWARF report: "Commercial and Institutional End Uses of Water" Toilets - 4%/year (25 year life) Showers - 4%/year (25 year life) Clothes washers - 6.7%/year (15 year life) Based on projected population Based on projected employment or population Based on projected population \ CMR:106:04 Page 4 of 7 Palo Alto’s Base Year (2001) Water Consumption Actual data froln calendar year 2001 was used as the base year used to calibrate the model for Palo Alto. Water consmnption by customer category in 2001 is shown in Table 2 below. Table 2: Data for Palo Alto’s Model -Base Year 2001 Single family residential Multi’family residential Commercial Industrial Public Facility Other Total Water Sold to Customers Estimated Unaccounted for Water (used in model for estimating futm’e demand) Total Water Purchased 14,515 !,886 1,629 247 64 286 5.73 46.87 1.97 2.41 1.23 0.34 0.54 16.08 19.75 10.09 2.77 4.44 18,627 12.22 100.00 0.86 7.0% 13.08 Population and Employment Growth In the housing section of its Comprehensive Plan (Chapter 4, page 3), the City of Palo Alto Planning Depamnent has projected that the City’s population will increase from 58,800 in 2000 to 62,880 in 2010 (an annual growth rate of 0.67% per year). Growth in water consmnption &iven by additional residential dwellings is expected to be limited. In the Comprehensive Plan, the City recognizes the need to increase the supply of affordable and market rate housing that meets Palo Alto’s share of regional housing needs. However, according to the Comprehensive Plan (Chapter 4, page 4), Palo Alto has a limited supply of vacant residential land. Most of the City’s development potential consists of infill on small vacant lots, redevelopment of existing properties, and new mixed-use projects. Only 1.4% of the land area in the City is vacant and there are few opportanities to annex additional lands in the future. According to the Comprehensive PIan (Chapter 7 page 2), in 1995, there were approximately 90,000 jobs in the greater Palo Alto area (including Stanford University). The Association of Bay Area Government projects that total employment will reach 94,700 by the year 2010. Most of the increase ~s expected to occur in the retail and service industries. Continued decline is expected in agriculture, malmfacmring, and wholesaling. The forecast presented in this report is consistent with the lilnited supply of residential land and with expected employment figures presented in the Comprehensive Plan. Rapid increases in real estate prices and rents can cause some water use customers to use existing space lnore intensely (e.g., more personsper square foot). As presented inthe housing segment of the Comprehensive Plan (Chapter 4, page 3), this trend has not been obselwed in Palo Alto and is not expected to develop in the foreseeable furore. The CMR:106:04 Page 5 of 7 number of persons per household is expected to relnain constant at 2.3 over the period from 2000 to 2010. Long-tem:t Water Forecast Results from SFPUC’s end use model are sumlnarized in Table 3. expected to increase only marginally over the next 30 years. Total water use is Table 3: Base Water Use Forecast in AF per Year Actual Forecast 2001 2005 2010 2015 2020 2025 2030 Water Demand 15,150 14,900 14,900 15,000 15,000 15,000 15,100 Chart 1 below graphically shows .the long-term water use projection and actual water purchases since 1965. Chart 1: Base Water Purchase Forecast Historical Water Supply Purchases and Long-Term Supply Purchase Forecast 20,000 18,000 16,000 14,000 ~ 12,000 10,000 8,000 6,000 4,000 2,000 0 1965 1970 1975 1980 1985 "19"90. 1995 2000 2005 2010 2015 2020 2025 2030 Action by the Director of Utilities Each BAWSCA agency has been asked to confh-ln that the long-term forecast that the SFPUC developed is consistent with its adopted land-use plans and all other assumptions used in the model. According to Palo Alto’s Municipal Code (Section 2.08.200 (a)), the Director of Utilities has the duty: "to coordinate the forecasting of the city’s long-range utility needs" and "to forecast and plan the acquisition and disposition of sufficient least- cost resource supplies to meet existing and future supply requirements in an environmentally acceptable manner." Therefore, the Director of Utilities will concur that the long-term water demand forecast presented by the SFPUC reflects anticipated furore water demands and that the data used to develop the forecast is accurate. It is noted that CMR: 106:04 Page 6 of 7 the projected water demands represent a baseline condition and do not reflect the effect of furore conselwation savings, furore cost of water, pricing structures, assessment of alternative supplies, demand management and do not represent purchases from the SFPUC. Next Phases of Project Now that there is a very detailed end use model ofPalo Alto’s water use, it can be used for further study. The next phase of the project currently underway is to examine the cost-effectiveness to each agency of implementing 32 different water conservation measures. Palo Alto plans to fully cooperate with the consultant and with SFPUC on this project and learn what measures it may want to add to its conservation pro~’ams. Following the assessment of conservation opportunities for each agency, the project will review potential recycled water projects with each agency. When the impact and potential for conse~wation and recycled water is fully evaluated, the final step will be for each agency to estimate how much of its future demands will be met with purchases from the SFPUC. This project is expected to be completed in mid 2004. POLICY IMPLICATIONS Projecting resource needs is consistent, with City policies and directives, including the Utilities Strategic Plan (USP) Objective 2: Invest in utility infrastructure to deliver reliable se,wice. This forecast is the first step in an in-depth examination of water efficiency measures, which is consistent with City’s sustainability efforts as well as USP Key Strategy 7: hnplement programs that improve the quality of the environment. This forecast is consistent with the City of Palo Alto’s Comprehensive Plan assmnptions pertaining to local land use and growth management policy limiting furore urban development to cm-rently developed lands within the urban se~wice area. PREPARED BY: /!/JANE RATCHYE 2 ~ { Senior Resource Plann DEPARTMENT HEAD: CITY MANAGER APPROVAL: of Utilities SON Assistant City lqAanager CMR:106:04 Page 7 of 7 TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE:SEPTEMBER 13, 2004 CMR:395:04 TITLE:WATER CONSERVATION SAVINGS POTENTIAL This report on a reasonable range for Palo Alto’s long-tema water conservation savings is for the Council’s infomaation only. No action is required. BACKGROUND In May 2002, the San Francisco Public. Utilities Comlnission (SFPUC) adopted a long- ~erm capitol improvelnen~ program (CIP) to repair, replace and seismically upgrade the regional water system’s pipelines and tunnels, reservoirs and dams. The regional water system CIP is expected to cost about $2.9 billion. In Novelnber 2002, San Francisco voters approved a $1.6 billion bond issue to pay for its share of the regional water system capital ilnprovenaents ($900 million) and capital improvements for its city sewer system ($700 lnillion). Palo Alto and. the other m_ember agencies of the Bay Area Water Supply and Conservation Agency (BAWSCA) are on record in suppol: of the SFPUC’s CIP program for the regional water system. The $2.9 billion CIP is a large undertaking that i~cludes building new pipelines to meet existing and projected loads and increasing operational flexibility to enhance emergency responsiveness. The enviromnental review process is a major step in receiving approvals to proceed towards implementation of the CIP. The first step in that process was to develop long-term water delnand projections for San Francisco and each BAWSCA agency. This step has been completed and an infom~ation report to the Council [CMR:106:04] on May 15, 2004 showed that the long-termwater forecast developed for Palo Alto was consistent with City policies and the adopted land- use plans. The long-term demand forecast took into account the existence of plumbing codes that only allow the sale of certain water-efficient appliances (for example, ultra-low flush CMR:395:04 Page 1 ofll toilets) so that, over thne, higher water-using appliances will naturally be exchanged for more efficient models. The final forecast developed by SFPUC shows that Palo Alto’s total water use is expected to increase only marginally over the next 30 years. Chart 1 below graphically shows the long-tem~ water use projection (including the use of recycled water) and actaal water consumption since 1965. Chart 1: Base Water Purchase Forecast Historical Water Supply Purchases and Long-Term Supply Purchase Forecast 20,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 o 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 After establishing the long-term demands for each BAWSCA agency, SFPUC conducted an analysis of 32 water onse~wation measures to deterlnine which measures would be effective in each agency’s service area. DISCUSSION Conservation Measure Evaluation Using the end-use demand model used ~o develop the long-term forecast, SFPUC’s consultant analyzed thirty-two water conservation measures to detemaine which ones would be cost-effective and produce water savings in Palo Alto. The amount of water savings potential as well as its cost to the utility and to the community was calculated for each measure. Attachment 1 lists the measures evaluated and shows the results of the analysis. CMR:395:04 Page 2 of 11 Tl~’ee portfolios of measures were created to span the range of water conse~z~ation potential. Portfolio A reflects Palo Alto’s current water conselwation programs. Portfolio B assumes a somewhat more aggressive program and Po~lfolio C is a very aggressive program. Some measures were rejected because they were not cost-effective or would not produce enough savings to justify program implementation. The measures found in the tl~’ee portfolios are sho~vn in the table below. Residential Water Surveys Residential Retrofit Clothes Washer Re.bate Public information Program ET Controller Rebates Restaurant low flow spray rinse nozzles Large Landscape Conservation Audits Rebates for 6/3 dual flush or 4 liter toilets Focused water audits for hotels/motels Commercial Water Audits ULF Toilet and Urinal Rebates Offer incentives for replacement of clothes washers in coin-operated laundries Award program for water savings by businesses The water savings estimates for each portfolio are shown in the following table. A 260 B 525 C 660 1.6 %$219 3.2%$245 4.0%$241 These savings are in addition to the natural changes over time in water-using fixtures due to the plmnbing code. Savings due to the plumbing code alone are expected to result in savings 5f 1.410 acre-feet@ear by 2031, or 8.7% of the 203.1 water use. Next Phases of Proiect After developing a very detailed end use model of Palo Alto’s water use and using it to examine the cost-effectiveness of implementing water consexwation measures, the next step is to evaluate other water supply alternatives, including recycled water. When the impact and potential for alternatives, including recycled water, are fully evaluated, the final step will be for each agency to estimate how much of its future demands will be met with purchases from the SFPUC. This project is expected to be completed in late 2004. Agreeing to a reasonable range of potential water conselwation programs does not commit to the City to implement any such programs.Separately from SFPUC’s CMR:395:04 Page 3 of 11 evaluation of water conservation potential for the environmental review phase of its capital program implementation, Palo Alto Utilities is also analyzing its water consmwation potential and developing a long-term water conservation program. Since October 2002, Palo Alto Utilities has had a co-sharing agreement [CMR:359:02] for water conse,wation programs with the Santa Clara Vatley Water District (SCVWD). This water conservation program has been widely successful with utility customers. The next iteration of the co-sharing program is scheduled to be implemented in October 2004. The development of a long-term water conservation plan is underway and will involve consideration of programs that may be offered by the SCVWD, SFPUC, BAWSCA and those Palo Alto may implement on its own. Concurrence with Conservation Ranges Each BAWSCA agency has been asked to review the estimated water savings resulting for the conservation analysis and concur with the statement that it "considers the water savings estimate to reflect a reasonable range of potential water conservation savings for long-range planning purposes." According to Palo Alto’s Municipal Code (Section 2.08.200 (a)), the Director of Utilities has the duty: "to coordinate the forecasting of the city’s long-range utility needs" and "to forecast and plan the acquisition and disposition of sufficient least-cost resource supplies to meet existing and ~uture supply requirements in an environmentally acceptable manner." Therefore, on August 10, 2004, the Director of Utilities signed the required concun’ence t’om~ of conservation ranges for planning purposes. POLICY IMPLICATIONS Projecting resource needs is consistent with City policies and directives, including the Utilities Strategic Plan (USP) Objective 2: Invest in utility infiastructure to deliver reliable service. This forecast is the first step in an in-depth examination of water efficiency measures, which is consistent with City,s sustainability efforts to conselwe water and to increase market penetration of water efficiency programs in Palo Alto. Examining water efficiency measuresis consistent with USP Key Strategy 7: Implement programs that improve the quality of the enviromnent. This forecast is consistent with the City of Palo Alto’s Comprehensive Plan assumptions pertaining to local land use and growth lnanagement policy limiting furore urban development to currently developed lands within the urban service area. ATTACHMENT A: Results and Description of Conservation Measure Evaluation CMR:395:04 Page 4 of 11 PREPARED BY: //~ J@qE RATCHYE ~._ ~nior Resource Planner DEPARTMENT HEAD: CITY MANAGER APPROVAL: HARRISON Assistant City Manager CMR:395:04 Page 5 of 11 oa~ o o +’~ ~ o o ,_o ’! o 0 0 0