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Resolution— Adoption of Penalties for Noncompliance <br />With Phase 2 Water Conservation Targets <br />August 4, 2015 <br />Page 2 <br />Enforcement <br />Upon declaring the Phase 2 Water Supply Shortage, Council directed staff to formulate suitable <br />enforcement measures. Staff worked with a consultant, Black & Veatch (B &V), to analyze and <br />develop alternatives for a water consumption penalty. Staff recommends implementing a penalty <br />rate of $4.65 per hundred cubic feet (hcf) on water use above the 12 percent reduction level. <br />Penalty applies to exceedances only <br />The recommended penalty rate applies only to water consumed in excess of the 12 percent <br />reduction target, as required by the Phase 2 Water Supply Shortage. There is no impact on <br />customers who meet their conservation targets. <br />Notice of first violation <br />No penalty will be incurred for the first violation. Customers whose water use exceeds the <br />required 12 percent reduction will receive an initial warning notice on their utility bill. However, <br />the proposed penalty would be applied on the second and subsequent violation(s) until such time <br />that Council declares the Phase 2 Water Supply Shortage to be ended. <br />Relief from compliance <br />In accordance with SAMC Section 39 -105, at the discretion of the Executive Director of Public <br />Works Agency, customers who can demonstrate extenuating circumstances in their ability to <br />reach the 12 percent water use reduction, such as business growth, significant increase in <br />household size, and/or other relevant factors may be granted exception from the penalty. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #6 Community Facilities & <br />Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City <br />assets), Strategy H (complete waterlwaste water rate study to ensure adequate resources to <br />capture critical long -term capital needs); Goal #5 Community Health, Livability, Engagement & <br />Sustainability, Objective #2 (expand opportunities for conservation and environmental <br />sustainability); and, Objective #6 (focus projects and programs on improving the health and <br />wellness of all residents), Strategy F (incorporate health and wellness into all applicable policies <br />and plans). <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />75E -2 <br />