IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

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1 MEMORANDUM TO: FROM: CITY COUNCIL GEOFF ENGLISH, DIRECTOR OF PUBLIC WORKS SUBJECT: CONSIDERATION OF PLACING A MEASURE ON THE BALLOT AT THE NOVEMBER 8, 2016 ELECTION TO AUTHORIZE THE PURCHASE OF STATE WATER UNDER LOCAL WATER EMERGENCY CONDITIONS DATE: JUNE 28, 2016 RECOMMENDATION: It is recommended the Council 1) Adopt a Resolution calling for the placement of a measure to authorize the purchase of water from the California State Water Project under local water emergency conditions at the General Municipal Election to be held on Tuesday, November 8, 2016, as called by Resolution No. 4730; 2) Adopt a Resolution setting priorities for filing a written argument regarding a City measure and directing the City Attorney to prepare an impartial analysis; 3) Adopt a Resolution providing for the filing of rebuttal arguments; 4) Approve the argument in favor of the measure; and 5) Appropriate $25,000 from the Water Availability Fund for the estimated additional cost of placing the measure on the ballot and preparing and distributing public information and education materials. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The estimated cost of State water for the existing San Luis Obispo County State Water Sub-contractors is approximately $1,250 to $1,350 per acre foot; however the actual per acre foot cost for State water that may be available from State water subcontractors within San Luis Obispo County is unknown and subject to variations at the time of purchase. Additionally, the amount of water that may be needed to supplement the City s existing supply will be dependent on future weather conditions. Purchases of supplemental water supplies are expected to be covered in large part by the water customers at the time of the purchase; however, there is approximately $1.4 million available in the Water Availability Fund to cover costs for acquisition of a new water supply. Between 2009 and 2013, under a temporary five-year water purchase agreement with the Oceano Community Services District (OCSD) the City purchased 100 acre feet of Lopez / groundwater per year at a cost of approximately $1,470 per acre foot. The cost of placing the measure on the ballot in November 2016 is approximately $3,000 to $5,000, based on an estimate from the County Clerk Recorder s office. It is Item 11.b. - Page 1

2 CITY COUNCIL CONSIDERATION OF PLACING A MEASURE ON THE BALLOT AT THE NOVEMBER 8, 2016 ELECTION TO AUTHORIZE THE PURCHASE OF STATE WATER UNDER LOCAL WATER EMERGENCY CONDITIONS JUNE 28, 2016 PAGE 2 proposed to fund this cost from the Water Availability Fund. It is also recommended that $20,000 be appropriated for public information program and educational outreach. It is anticipated that one or more informational mailers will be direct mailed to all Arroyo Grande water customers. There will be substantial impacts on staff resources to provide the necessary educational information to the Arroyo Grande voters. However, this important work will be accomplished as part of ongoing efforts to strategically plan and coordinate City water resources. Water supply measures are one of the priorities identified in the City s Critical Needs Action Plan. Other non-priority projects may be postponed to provide the necessary time to effectively deal with this ballot measure effort. BACKGROUND: An Arroyo Grande ballot measure passed by the voters in 1990 requires a public vote before the City can purchase State water. The question on the ballot was as follows: Shall an affirmative vote of the voters of Arroyo Grande be required before the City of Arroyo Grande is authorized to participate in the California State Water Project? In June 2010, staff presented a water supply analysis and strategies report to the City Council. At the time, the City Council agreed to address these needs by expanding water conservation efforts, seeking purchase of State water, and to continue working on a potential water recycling project in the future. The City Council directed staff to prepare a ballot measure for the June 2012 Election to enable purchase of State water. A copy of that staff report is attached (Attachment 1). The ballot measure was postponed by the City Council on February 14, 2012 and was not revisited. On May 10, 2016, in response to the on-going drought conditions, a water supply and demand report was presented to the City Council. This report requested direction regarding future water supply options including the potential for the purchase of State water. The Council directed that a report be brought back for consideration of a ballot measure in November of 2016 that would, if approved by the voters, allow for the purchase of State water under water emergency conditions. ANALYSIS OF ISSUES: As described in the May 10, 2016 Council Memorandum, and as indicated in the chart below, the City s water supply is sufficient for the next two (2) calendar years, and a temporary supplemental water supply source is not needed at this time; however, due to the declining levels of the Lopez reservoir, and the improved but uncertain condition of the Santa Maria Groundwater Basin, it would be prudent to begin planning for a supplemental water supply that may be needed in Item 11.b. - Page 2

3 CITY COUNCIL CONSIDERATION OF PLACING A MEASURE ON THE BALLOT AT THE NOVEMBER 8, 2016 ELECTION TO AUTHORIZE THE PURCHASE OF STATE WATER UNDER LOCAL WATER EMERGENCY CONDITIONS JUNE 28, 2016 PAGE 3 Table 3. Current and Projected Water Supply Acre Feet per Year (AFY) Water Supply Sources 2015 Entitlement 2015 Actual Use 2016 Projected Use 2017 Projected Use Groundwater Santa Maria Groundwater Basin 1, Groundwater- Pismo Formation County of San Luis Obispo Lopez Reservoir Project 2,290 2,152 1,560 1,200 TOTAL 3,813 2,239 2,300* 2,300 *- Current water use demand by Arroyo Grande customers is 30% below 2015 use demand is on project to be well below 2,300 AF. Previously initiated water conservation programs and mandatory water use restrictions implemented by the Council have helped significantly reduce water use demands. In 2004 the average per capita water use for Arroyo Grande was 200 gallons per capita per day (gpcd). The average consumption for 2015 was 113 gpcd. Demand management and conservation still remains the primary tool to address future water supply needs. Population Average Per Capita Water Use (gpcd) Gross Water Use (afy) Average Per Capita Water Use (gpcd) Item 11.b. - Page 3

4 CITY COUNCIL CONSIDERATION OF PLACING A MEASURE ON THE BALLOT AT THE NOVEMBER 8, 2016 ELECTION TO AUTHORIZE THE PURCHASE OF STATE WATER UNDER LOCAL WATER EMERGENCY CONDITIONS JUNE 28, 2016 PAGE 4 Additional options for addressing potential water supply deficiencies include the development of drought resistant water supply projects. The City Council has previously directed City staff to work closely with our local partners on the three potential projects listed below: 1. Pismo Beach Regional Groundwater Sustainability Project; 2. South San Luis Obispo County Sanitation District Recycled Water Facilities Planning Study; and 3. Diablo Desalination Plant Excess Water. The City is engaged with the leading partner agencies on all three of the projects listed above and will bring back reports to the Council at key decision making points; however, these projects will require several years of development, design, environmental review and arrangement for financing. None of the projects will be delivered by 2018, the year in which the City s ability to meet water demand is uncertain. The purchase of temporary water supplies from available sources may be necessary. Temporary water supply purchases may be arranged where water can be delivered through existing conveyance networks. Options include, but are not limited to, the following: Zone 3 Agencies with available supplies from the Lopez Reservoir; Nacimiento Agencies with surplus water supplies. (Would require creative water wheeling arrangements); and State water contractors and subcontractors with excess water supplies. Discussions between all of the countywide water managers have been initiated by the County of San Luis Obispo Public Works Department in anticipation that inter- County water purchase may be necessary. As indicated above, the City could not utilize State water due to the results of a ballot measure prohibiting the purchase of State water without a majority voter approval. At the November 6, 1990 General Municipal Election, the voters of Arroyo Grande approved Measure A, as stated below, which stipulates that an affirmative vote of the voters of Arroyo Grande is required before the City of Arroyo Grande is authorized to participate in the California State Water Project: Measure A Shall an affirmative vote of the voters of Arroyo Grande be required before the City of Arroyo Grande is authorized to participate in the California State Water Project? Item 11.b. - Page 4

5 CITY COUNCIL CONSIDERATION OF PLACING A MEASURE ON THE BALLOT AT THE NOVEMBER 8, 2016 ELECTION TO AUTHORIZE THE PURCHASE OF STATE WATER UNDER LOCAL WATER EMERGENCY CONDITIONS JUNE 28, 2016 PAGE 5 Furthermore, the full text of Measure A stated that the City of Arroyo Grande shall not participate, in any way, including, but not limited to, the expenditure or commitment of any funds, in the California State Water project without an affirmative vote of the majority of the voters voting on such a measure. The full text of Measure A is as follows: Full Text of Measure A The People of the City of Arroyo Grande do hereby ordain as follows: Section #1. The City of Arroyo Grande shall not participate, in any way, including but not limited to, the expenditure or commitment of any funds, in the California State Water Project without an affirmative vote of the majority of the voters voting upon such a measure. Section #2. This ordinance shall not be amended nor repealed without a vote of the voters of Arroyo Grande. One of the benefits of participating in the State Water Project is the ability to access water from geographical areas beyond the Lopez Reservoir and City s watershed. There is a County led effort to, where possible, utilize excess water supply from Northern California and conserve local water supplies. Due to wet winter conditions in Northern California, several of the largest State Reservoirs have filled significantly, improving the State water supply. As a result, the State of California has increased the allocation to State water contractors to 60% of their full allocations. The County of San Luis Obispo has a State water allocation of 25,000 AFY, substantially beyond the State water contracts within the County as listed below: SLO County State Water Entitlement: (in Central Valley Aqueduct) SLO County Capacity- Coastal Branch Phase II State Water Project: 25,000 AFY 4,830 AFY Northern Cities Entitlements to State Water: Pismo Beach 1,240 AFY Oceano CSD 750 AFY While the County has 25,000 AFY of State Water-Table A Allocation, it is only entitled to 4,830 AFY of capacity within Phase II of the Coastal Branch pipeline and the Polonio Pass Water Treatment Plant. The remainder of the capacity within these facilities is allocated to the Central Coast Water Authority (CCWA), via the Santa Barbara County Flood Control and Water Conservation District. County officials are currently negotiating with the CCWA for conveyance capacity to allow for the potential delivery of additional State water supply. The negotiations between the CCWA and the County water managers may allow the County to deliver SWP water in excess of currently allocated capacity of 4,830 ac-ft Item 11.b. - Page 5

6 CITY COUNCIL CONSIDERATION OF PLACING A MEASURE ON THE BALLOT AT THE NOVEMBER 8, 2016 ELECTION TO AUTHORIZE THE PURCHASE OF STATE WATER UNDER LOCAL WATER EMERGENCY CONDITIONS JUNE 28, 2016 PAGE 6 per year. However, there are several factors, including but not limited to those listed below, that may limit the ability for the County to deliver additional SWP water: Ability of the County to negotiate with CCWA to convey the additional water through the Phase II Coastal Branch of the State Water system. Agreement of all of the ten (10) San Luis Obispo County State water subcontractors to allow for the purchase of State water by a non-state water subcontracting entity. State water subcontractors in the County all must provide a waiver to the County. The County must have the ability to wheel the water through an existing distribution system to a willing purchaser. Additionally, there is the potential that excess State water may be purchased directly from the individual State water subcontractors, such as the City of Pismo, Oceano Community Services District, or San Miguelito Mutual Water Company, among others. Timing On May 10, 2016, the Council directed staff to bring back a report for consideration to place a measure on the November 2016 General Municipal Election ballot that would allow the City to purchase water from the California State Water Project under local water emergency conditions. Recommended ballot language is below. Ballot Language Under AGMC Section , after holding a duly noticed public hearing, the City Council may declare a Stage I Water Shortage Emergency when it finds that there have been impacts to the City s water supply, and/or it has been determined that it is imminent the City s water supply has or will become so limited that an emergency shortage condition exists as far as the available water supply being less than the projected demand. A Stage 1 Water Shortage Emergency triggers mandatory reductions in water use and water use restrictions. The proposed ballot measure authorizes the purchase of State water only under water emergencies declared by the Arroyo Grande City Council. The following ballot measure is proposed: CITY OF ARROYO GRANDE MEASURE Shall the City of Arroyo Grande be authorized to purchase water from the State Water Project to supplement the City s existing water supplies during local water emergencies declared by the Arroyo Grande City Council? Yes No Item 11.b. - Page 6

7 CITY COUNCIL CONSIDERATION OF PLACING A MEASURE ON THE BALLOT AT THE NOVEMBER 8, 2016 ELECTION TO AUTHORIZE THE PURCHASE OF STATE WATER UNDER LOCAL WATER EMERGENCY CONDITIONS JUNE 28, 2016 PAGE 7 Previous consideration has been given to the purchase of a permanent allocation from the State Water Project. Staff does not recommend such an effort for the following reasons: The design capacity for the Phase II portion of the Coastal Branch pipeline, which delivers State water to the Central Coast, has been secured through contracts by other agencies and would have to be purchased at an unknown, negotiated price, if there was a willing seller. The Phase II section of the Coastal Branch pipeline of the State Water Project pipeline was designed and constructed to a size and capacity determined by the participating agencies at the time of the project design. Additional capacity for future participants was not considered and all costs for construction were distributed amongst the participating subcontractors. Should additional water conveyance capacity be secured through one of the current sub-contractors, a fair-share payment would have to be determined. This buy-in cost would likely be substantial. State Water can be an unreliable water source that happens to be available now during our local drought conditions, but is generally restricted during times of statewide drought conditions. Investment in a more reliable supplemental water source such as recycled water would be more prudent. Despite challenges and drawbacks to the pursuit of a permanent allocation of State Water, the Council may choose to modify the proposed ballot measure to ask the Arroyo Grande voters to authorize pursuing the permanent purchase of State water. The following ballot measure is not recommended, but may be used in place of the proposed measure language should the Council wish to pursue this option: CITY OF ARROYO GRANDE MEASURE Shall the City of Arroyo Grande be authorized to pursue the purchase of water from the State Water Project as a permanent supplemental water supply? Yes No As stated above, the pursuit of a permanent allocation of water supply from the State Water project and the placement of this question on the ballot is not recommended at this time. Item 11.b. - Page 7

8 CITY COUNCIL CONSIDERATION OF PLACING A MEASURE ON THE BALLOT AT THE NOVEMBER 8, 2016 ELECTION TO AUTHORIZE THE PURCHASE OF STATE WATER UNDER LOCAL WATER EMERGENCY CONDITIONS JUNE 28, 2016 PAGE 8 ALTERNATIVES: The following alternatives have been identified for City Council consideration: 1. Approve staff s recommendations by adopting the proposed Resolutions, approving the argument in favor of the measure, appropriating $25,000 from the Water Availability Fund for costs to place the measure on the ballot and for public information and education efforts; 2. Postpone consideration of the measure until the November 2018 election; 3. Modify the language of the proposed ballot measure to ask the Arroyo Grande voters if the City should be authorized to purchase a permanent allocation from the State Water System; 4. Do not approve a ballot measure and reconsider relying entirely on conservation measures and potential purchase of surplus Lopez water from neighboring agencies to address the City's water needs; or 5. Provide other direction. ADVANTAGES: Access to available State water may be one of a few options for supplemental water supply should one or both of the City s water supplies become impacted to the point that we can no longer meet the water supply demands for our customers. Under the proposed ballot measure, the purchase of State water would only be available if necessary to respond to drought, seawater intrusion, or other emergency water supply conditions. Placing the measure on the ballot at this time will benefit from the heightened community awareness of the City s water supply challenges due to the ongoing drought conditions. Additionally, placing the measure on the ballot at this time will better inform the County (District) as the City works to secure additional water supplies should the drought continue. DISADVANTAGES: Placing the measure on the November ballot will require a monetary allocation, as well as staff resources to provide an effective public education effort. Given a substantial current work load and list of current projects and initiatives, some work efforts and projects may be postponed or delayed. ENVIRONMENTAL REVIEW: No environmental review is required for this item. Item 11.b. - Page 8

9 CITY COUNCIL CONSIDERATION OF PLACING A MEASURE ON THE BALLOT AT THE NOVEMBER 8, 2016 ELECTION TO AUTHORIZE THE PURCHASE OF STATE WATER UNDER LOCAL WATER EMERGENCY CONDITIONS JUNE 28, 2016 PAGE 9 PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, June 23, 2016 and the Agenda and staff report were posted on the City s website on Friday, June 24, Attachments: 1. Proposed Argument in Favor 2. June 2010 City Council report - Updated Analysis of Water Supply and Usage 3. Resolution No State Water 4. Resolution No State Water Item 11.b. - Page 9

10 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY A MEASURE TO AUTHORIZE THE PURCHASE OF WATER FROM THE CALIFORNIA STATE WATER PROJECT UNDER LOCAL WATER EMERGENCY CONDITIONS AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2016, AS CALLED BY RESOLUTION NO WHEREAS, a General Municipal Election on November 8, 2016 has been called by Resolution No adopted on June 14, 2016; and WHEREAS, the City Council also desires to submit to the voters at the election a question relating to increasing options for the purchase of supplemental water supplies during declared local water emergencies; and WHEREAS, under certain conditions, surplus water from the State Water Project may be available to purchase as a supplemental water supply for Arroyo Grande water customers should this potential supply be the most advantageous. NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Arroyo Grande does resolve, declare, determine, and order as follows: SECTION 1. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following question: CITY OF ARROYO GRANDE MEASURE Shall the City of Arroyo Grande be authorized to purchase water from the State Water Project to supplement the City s existing water supplies during local water emergencies declared by the Arroyo Grande City Council? Yes No SECTION 2. That the vote requirement for the measure to pass is a majority (50% + 1) of the votes cast of the votes cast. SECTION 3. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by State law for holding municipal elections. SECTION 4. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. Item 11.b. - Page 10

11 RESOLUTION NO. PAGE 2 SECTION 5. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion of Council Member, seconded by Council Member, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this 28 th day of June Item 11.b. - Page 11

12 RESOLUTION NO. PAGE 3 JIM HILL, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: GEOFF ENGLISH, ACTING CITY MANAGER APPROVED AS TO FORM: HEATHER WHITHAM, CITY ATTORNEY Item 11.b. - Page 12

13 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE SETTING PRIORITIES FOR FILING A WRITTEN ARGUMENT REGARDING A CITY MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS WHEREAS, a General Municipal Election is to be held in the City of Arroyo Grande, California, on November 8, 2016, at which there will be submitted to the voters the following measure: CITY OF ARROYO GRANDE MEASURE Shall the City of Arroyo Grande be authorized to purchase water from the State Water Project to supplement the City s existing water supplies during local water emergencies declared by the Arroyo Grande City Council? Yes No NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: SECTION 1. That the City Council, being the legislative body of the City of Arroyo Grande, hereby authorizes ALL members of the City Council, to file a written argument in favor of the City measure not exceeding 300 words, accompanied by the printed names and signatures of the authors submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California. The argument may be changed or withdrawn until and including the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk. The arguments shall be filed with the City Clerk, signed, with the printed names and signatures of the authors submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argument. SECTION 2. That the City Council directs the City Clerk to transmit a copy of the measures to the City Attorney, unless the organization or salaries of the Office of the City Attorney are affected. a. The City Attorney shall prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure. If the measure affects the organization or Item 11.b. - Page 13

14 RESOLUTION NO. PAGE 2 salaries of the office of the City Attorney, the City Clerk shall prepare the impartial analysis. b. The analysis shall include a statement indicating whether the measure was placed on the ballot by a petition signed by the requisite number of voters or by the governing body of the city. c. In the event the entire text of the measure is not printed on the ballot, nor in the voter information portion of the sample ballot, there shall be printed immediately below the impartial analysis, in no less than 10-point type, the following: The above statement is an impartial analysis of Measure. If you desire a copy of the ordinance or measure, please call the election official s office at and a copy will be mailed at no cost to you. d. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion by Council Member, seconded by Council Member, and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 28 th day of June, Item 11.b. - Page 14

15 RESOLUTION NO. PAGE 3 JIM HILL, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: GEOFF ENGLISH, ACTING CITY MANAGER APPROVED AS TO FORM: HEATHER WHITHAM, CITY ATTORNEY Item 11.b. - Page 15

16 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS WHEREAS, Section 9282 of the Elections Code of the State of California provides for written arguments to be filed in favor or against city measures not to exceed 300 words in length; and WHEREAS, Section 9285 of the Elections Code of the State of California authorizes the City Council by majority vote, to adopt provisions to provide for the filing of rebuttal arguments for City measures submitted at municipal elections. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: SECTION 1. That pursuant to Section 9285 of the Elections Code of the State of California, when the City Clerk has selected the arguments for and against the measure (not exceeding 300 words each) which will be printed and distributed to the voters, the City Clerk shall send a copy of an argument in favor of the measure to the authors of any argument against the measure, and a copy of an argument against the measure to the authors of any argument in favor of the measure, immediately upon receiving the arguments. The author or a majority of the authors of an argument relating to a City measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. A rebuttal argument may not be signed by more than five authors. The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing direct arguments. The rebuttal arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argument. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. SECTION 2. That all previous resolutions providing for the filing of rebuttal arguments for City measures are repealed. SECTION 3. That the provisions of Section 1 shall apply only to the election to be held on November 8, 2016, and shall then be repealed. Item 11.b. - Page 16

17 RESOLUTION NO. PAGE 2 SECTION 4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion of Council Member, seconded by Council Member, and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 28 th day of June, Item 11.b. - Page 17

18 RESOLUTION NO. PAGE 3 JIM HILL, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: GEOFF ENGLISH, ACTING CITY MANAGER APPROVED AS TO FORM: HEATHER WHITHAM, CITY ATTORNEY Item 11.b. - Page 18

19 ATTACHMENT 1 ARGUMENT IN FAVOR OF MEASURE Your YES vote on Measure will authorize the City of Arroyo Grande to purchase State water if necessary to meet anticipated water supply needs. Due to ongoing drought conditions, the City may not have sufficient water supplies to meet its customer s water use demand as soon as To meet current water demands, the City uses all of its allotment of Lopez Reservoir water and a court order prevents the City from pumping groundwater above its entitlement. State water may be available to the City for short term purchases, even in drought conditions, because the County of San Luis Obispo has excess supply that is available to compensate for periodic reductions in deliveries from the State. Access to State water will potentially provide the City with a supplemental water source when local water supplies are jeopardized. Water conservation efforts by Arroyo Grande water customers have significantly reduced water use Citywide. Additionally, long-range efforts to secure supplemental water supplies such as recycled water are ongoing, but will take several years to develop. Given the uncertainties involving our water resources, it is prudent to have additional options to secure supplemental water supplies. Approval of this measure will provide the critical authorization needed to purchase State water if needed to replace the loss of existing supply due to drought or other emergency conditions. This measure is not intended to acquire water to accommodate any growth not currently allowed or planned. The City has worked hard to make available the water needed to serve its customers, but supply is restricted and options are limited. Your City Council unanimously urges you to take the steps necessary to help ensure it can continue to meet these needs in the future in a cost effective manner by voting YES on Measure. Jim Hill, Mayor Barbara Harmon, Mayor Pro Tem Jim Guthrie, Council Member Kristen Barneich, Council Member Tim Brown, Council Member Item 11.b. - Page 19

20 Item 11.b. - Page 20