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HomeMy WebLinkAbout2023-04-04; City Council; ; Policy Prioritizing Sewer and Water Service Connections for Proposed Developments that Include Housing Units Affordable to Lower-income HouseholdsCA Review __RK__ Meeting Date: April 4, 2023 To: Mayor and City Council / President and Board Members From: Scott Chadwick, City Manager / Executive Manager Staff Contact: Dave Padilla, Utilities Engineering Manager dave.padilla@carlsbadca.gov, 442-339-2356 Daniel Zimny, Senior Engineer daniel.zimny@carlsbadca.gov, 442-339-2551 Subject: Policy Prioritizing Sewer and Water Service Connections for Proposed Developments that Include Housing Units Affordable to Lower-income Households Districts: All Recommended Actions 1.Adopt a resolution authorizing the City Manager to approve a policy to prioritize sewer services for proposed developments that include housing units affordable to lower-income households. 2.Adopt a Carlsbad Municipal Water District Board of Directors resolution authorizing the Executive Manager to approve a policy to prioritize water services for proposed developments that include housing units affordable to lower-income households. Executive Summary In 2005, Senate Bill 1087 amended California Government Code Section 65589.7 to require all public and private utility providers of sewer or water services to adopt a written policy prioritizing providing these services for proposed developments that include housing units affordable to lower-income households. The city provides sewage collection services and the Carlsbad Municipal Water District (CMWD), a subsidiary district of the city, provides water distribution services, so both are subject to the conditions of SB 1087. The required policy must include specific objective standards for prioritizing water and sewer services for these types of developments that are to be built within the city and CMWD service areas. The law requires the policies to be adopted every five years. Staff recommend adoption of the sewer and water service priority policy to achieve compliance with this condition of the California Government Code. April 4, 2023 Item #2 Page 1 of 13 JOINT CI TY c,o u NCIL AND CARLSBAID ,MUNICI PA l WATER DISTRI CT Staff Report There are no significant changes to the policy with this update with the exception that the policy will be adopted through City Council and CMWD Board resolutions. Adoption of the resolutions will fulfill the requirements of Senate Bill 1087 for the next five-year term. Explanation & Analysis Lower-income households are defined in California Health and Safety Code Section 50079.5. as people and families whose income does not exceed the qualifying limits for lower income families as established and amended from time to time by the federal government under Section 8 of the United States Housing Act of 1937. Developments that qualify for service prioritization must include units reserved for lower- income households that are sold or rented at an affordable cost under the terms of California Health and Safety Code 50052.5 and 50053. Senate Bill 1087 requires all agencies providing sewer or water services to adopt written policies and procedures with specific objective standards for providing the priority service by July 1, 2006, and once every five years thereafter. The policy must account for regulations and restrictions relating to water shortage emergencies, water supply availability as described in an urban water management plan and existing agency policies used to administer service determinations. Senate Bill 1087 also required the city to distribute copies of its adopted Housing Element, the housing plan in the city’s General Plan, to all public agencies or private entities that provide water or sewer service within the city limits. Any subsequent updates to local housing elements must be redistributed to these entities within 30 days of their adoption. The city provides sewer services to about 74% of the city, while the CMWD provide water services to about 85% of the city, with the remaining area served by the Leucadia Wastewater District, Olivenhain Municipal Water District and Vallecitos Water District. Initial implementation and subsequent updates to the city’s sewer and the CMWD’s water service prioritization policy have been included concurrently with the updates to the Housing Element which, in the past, was also on a five-year update schedule. The most recent update to the Housing Element was approved by the City Council on April 6, 2021, and it addresses the 2021-2029 housing cycle. That update included objectives stating that the city and CMWD will adopt written procedures for service prioritization outside of the Housing Element to achieve compliance with SB 1087’s five-year adoption cycle. The service priority policy for city sewer services is provided as Attachment A of Exhibit 1, the City Council the resolution approving the policy. The service priority policy for CMWD water services is provided as Attachment A of Exhibit 2, the CMWD Board resolution Fiscal Analysis There are no fiscal impacts resulting from adopting the policy. Next Steps The city and CMWD will implement the service prioritization policy upon approval by the City Council and the CMWD Board. The policy will be revised, if necessary, and brought to the City April 4, 2023 Item #2 Page 2 of 13 Council and the CMWD Board for readoption at a minimum of every five years or as needed for clarifications and/or to maintain compliance with Senate Bill 1087. The city will also continue to distribute subsequent updates to the General Plan’s Housing Element within 30 days of adoption to all other water and sewer agencies providing services within the city boundary, as required under the Senate bill. A similar policy must be adopted by these agencies to affirm all development within the city offering affordable housing units will be prioritized for sewer and water services. Environmental Evaluation This action does not constitute a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065. It has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and, therefore, does not require environmental review. Exhibits 1. City Council resolution 2. Carlsbad Municipal Water District Board of Directors resolution April 4, 2023 Item #2 Page 3 of 13 RESOLUTION NO. 2023-098 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A POLICY TO PRIORITIZE SEWER SERVICES FOR PROPOSED DEVELOPMENTS THAT INCLUDE HOUSING UNITS AFFORDABLE TO LOWER-INCOME HOUSEHOLDS WHEREAS, California Government Code Section 65589.7 was amended by Senate Bill 1087 to require each public agency or private entity providing water or sewer services to grant priority for proposed developments that include housing units affordable to lower-income households; and WHEREAS, Senate Bill 1087 requires sewer and water purveyors to adopt written policies and procedures with specific objective standards for prioritizing the service needs for developments that include affordable housing units within their respective service area; and WHEREAS, the City of Carlsbad provides sewer collection services subject to the requirements of Senate Bill 1087; and WHEREAS, the city has prepared the policy attached hereto as Attachment A in compliance with the requirements of Senate Bill 1087. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the City Council adopts the service priority policy as shown in Attachment A. Exhibit 1 April 4, 2023 Item #2 Page 4 of 13 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Carlsbad Municipal Water District Board of Directors and the City Council of the City of Carlsbad on the 4th day of April, 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Luna. None. None. None. KEITH BLA:CKBURN, Mayor SHERRY FREISINGER, City Clerk (SEAL) April 4, 2023 Item #2 Page 5 of 13 City Council POLICY STATEMENT Policy No. 97 Date Issued April 4, 2023 Resolution No. 2023-098 Subject: Sewer and Water Service Priority Policy for Affordable Housing Development Pursuant to Section 65589.7 of the California Government Code Purpose The purpose of this policy is to establish conformance with California Government Code Section 65589.7 by memorializing written procedures for prioritizing water and sewer service needs for proposed developments that include housing units affordable to lower-income households. The city provides sewage collection services and the Carlsbad Municipal Water District, or CMWD, a subsidiary district of the city, provides water distribution services. Both entities are subject to the conditions of Section 65589. 7. The service priority policy provided herein shall be adopted by both entities.1 Background California Government Code Section 65589.7 was amended in 2005 by Senate Bill 1087 to require public or private purveyors providing sewer collection or water distribution services to enact written policy to prioritize service connections for proposed developments that include housing units affordable to lower-income households. The policy must include specific objective standards for prioritizing water and sewer service needs for proposed developments that include affordable housing units within city and CMWD service areas. These policies are to be revisited, updated and readopted once every five years per Senate Bill 1087. The policies and procedures shall account for the following: 1.Regulations and restrictions adopted pursuant to Chapter 3 of Division 1 of the Water Code relating to water shortage emergencies. 2.Availability of the water supply as determined by the public agency or private entity pursuant to an urban water management plan adopted pursuant to Part 2.6 of Division 6 of the Water Code. 3.Plans, documents and information relied upon by the public agency or private entity that is not an urban water supplier, as defined in Section 10617 of the Water Code, or that provides sewer service, that provide a reasonable basis for making service determinations. Statement of Policy In accordance with Senate Bill 1087 and California Government Code Section 65589.7, the city and the CWMD shall grant sewer and water service priority within their respective service areas to proposed developments that include housing units affordable to lower-income households. 1 The poli�y was approved by the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on April 4, 2023 by Resolution No. 2023-098 Attachment A April 4, 2023 Item #2 Page 6 of 13 Sewer and Water Service Priority Policy for Affordable Housing Development April 4, 2023 Page 2 Procedure The following definitions shall apply to this policy: 1)"Proposed developments that include housing units affordable to lower-income households" means that dwelling units shall be sold or rented to lower-income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. 2)"Water or sewer services" means the supply of a service through a pipe or other constructed conveyance system for residential purposes. This does not include the resale of water for human consumption from one water supplier to another. This also does not include passing sewerage from one sanitary agency's collection system to another. The policy shall be implemented and enforced per the conditions herein: 1)Neither the city nor the CMWD shall deny or condition the approval of an application for water or sewer services to, or reduce the amount of such services applied by, a proposed development that includes housing units affordable to lower-income households unless the city or the CMWD make specific written findings that the denial, condition or reduction is necessary due to one of the following: a.The CMWD is operating under a water shortage emergency as defined by Section 350 of the Water Code. b.The CMWD does not have a "sufficient water supply", as defined by Section 66473.7(2}(a) of the California Government Code. c.The San Diego County Water Authority has declared Drought Response Level 5 prohibiting new water service connections. d.A written engineering analysis and report demonstrate the existing water distribution system does not have sufficient water distribution capacity to serve the proposed development. e.A written engineering analysis and report demonstrate the existing sewerage collection system does not have sufficient collection capacity to serve the proposed development. f.A written engineering analysis and report demonstrate the Encina Wastewater Authority treatment plant does not have sufficient treatment capacity for the sewerage generated by the proposed development. g.The State Water Board Division of Drinking Water, State Water Resources Control Board, San Diego Regional Water Quality Control Board and/or the San Diego County Department of Environmental Health and Quality issues an order to the CMWD that prohibits new water connections or to the City that prohibits new sewer connections. h.The applicant has failed to agree to reasonable terms and conditions relating to the provision of service generally applicable to development projects seeking April 4, 2023 Item #2 Page 7 of 13 Sewer and Water Service Priority Policy for Affordable Housing Development April 4, 2023 Page 3 service from the city or the CMWD, including but not limited t<:>, the requirements of local, state or federal laws, codes, standards, regulations or payment of a fee or charge imposed pursuant to Section 66013. 2)The city and the CMWD shall revisit, revise (if necessary) and readopt an update to these procedures and policies at least once within five years of the issuance date. April 4, 2023 Item #2 Page 8 of 13 RESOLUTION NO. 1702 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, APPROVING A POLICY TO PRIORITIZE WATER SERVICES FOR PROPOSED DEVELOPMENTS THAT INCLUDE HOUSING UNITS AFFORDABLE TO LOWER-INCOME HOUSEHOLDS WHEREAS, California Government Code Section 65589.7 was amended by Senate Bill 1087 to require each public agency or private entity providing water or sewer services to grant priority for proposed developments that include housing units affordable to lower-income households; and WHEREAS, Senate Bill 1087 requires sewer and water purveyors to adopt written policies and procedures with specific objective standards for prioritizing the service needs for developments that include affordable housing units within their respective service areas; and WHEREAS, the Carlsbad Municipal Water District, or CMWD, provides water distribution services subject to the requirements of Senate Bill 1087; and WHEREAS, the CMWD has prepared the policy attached hereto as Attachment A in compliance with the requirements of Senate Bill 1087. NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the CMWD Board adopts the service priority policy as shown in Attachment A. Exhibit 2 April 4, 2023 Item #2 Page 9 of 13 PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Carlsbad Municipal Water District Board of Directors and the City Council of the City of Carlsbad on the 4th day of April, 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Luna. None. None. None. KEITH BLACKBURN, President SHERRY FREISINGER, Secretary (SEAL) April 4, 2023 Item #2 Page 10 of 13 City Council POLICY STATEMENT Policy No. Date Issued 97 April 4, 2023 Resolution No. 2023-098 Subject: Sewer and Water Service Priority Policy for Affordable Housing Development Pursuant to Section 65589.7 of the California Government Code Purpose The purpose of this policy is to establish conformance with California Government Code Section 65589. 7 by memorializing written procedures for prioritizing water and sewer service needs for proposed developments that include housing units affordable to lower-income households. The city provides sewage collection services and the Carlsbad Municipal Water District, or CMWD, a subsidiary district of the city, provides water distribution services. Both entities are subject to the conditions of Section 65589.7. The service priority policy provided herein shall be adopted by both entities.1 Background California Government Code Section 65589.7 was amended in 2005 by Senate Bill 1087 to require public or private purveyors providing sewer collection or water distribution services to enact written policy to prioritize service connections for proposed developments that include housing units affordabl� to lower-income households. The policy must include specific objective standards for prioritizing water and sewer service needs for proposed developments that include affordable housing units within city and CMWD service areas. These policies are to be revisited, updated and readopted once every five years per Senate Bill 1087. The policies and procedures shall account for the following: 1.Regulations and restrictions adopted pursuant to Chapter 3 of Division 1 of the Water Code relating to water shortage emergencies. 2.Availability of the water supply as determined by the public agency or private entity pursuant to an urban water management plan adopted pursuant to Part 2.6 of Division 6 of the Water Code. 3.Plans, documents and information relied upon by the public agency or private entity that is not an urban water supplier, as defined in Section 10617 of the Water Code, or that provides sewer service, that provide a reasonable basis for making service determinations. Statement of Policy In accordance with Senate Bill 1087 and California Government Code Section 65589.7, the city and the CWMD shall grant sewer and water service priority within their respective service areas to proposed developments that include housing units affordable to lower-income households. 1 The policy was approved by the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on April 4, 2023 by Resolution No. 2023-098 Attachment A April 4, 2023 Item #2 Page 11 of 13 Sewer and Water Service Priority Policy for Affordable Housing Development April 4, 2023 Page 2 Procedure The following definitions shall apply to this policy: 1)"Proposed developments that include housing units affordable to lower-income households" means that dwelling units shall be sold or rented to lower-income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. 2)"Water or sewer services" means the supply of a service through a pipe or other constructed conveyance system for residential purposes. This does not include the resale of water for human consumption from one water supplier to another. This also does not include passing sewerage from one sanitary agency's collection system to another. The policy shall be implemented and enforced per the conditions herein: 1)Neither the city nor the CMWD shall deny or condition the approval of an application for water or sewer services to, or reduce the amount of such services applied by, a proposed development that includes housing units affordable to lower-income households unless the .city or the CMWD make specific written findings that the denial, condition or reduction is necessary due to one of the following: a.The CMWD is operating under a water shortage emergency as defined by Section 350 of the Water Code. b.The CMWD does not have a "sufficient water supply", as defined by Section 66473.7(2)(a) of the California Government Code. c.The San Diego County Water Authority has declared Drought Response Level 5 prohibiting new water service connections. d.A written engineering analysis and report demonstrate the existing water distribution system does not have sufficient water distribution capacity to serve the proposed development. e.A written engineering analysis and report demonstrate the existing sewerage collection system does not have sufficient collection capacity to serve the proposed development. f.A written engineering analysis and report demonstrate the Encina Wastewater Authority treatment plant does not have sufficient treatment capacity for the sewerage generated by the proposed development. g.The State Water Board Division of Drinking Water, State Water Resources Control Board, San Diego Regional Water Quality Control Board and/or the San Diego County Department of Environmental Health and Quality issues an order to the CMWD that prohibits new water connections or to the City that prohibits new sewer connections. h.The applicant has failed to agree to reasonable terms and conditions relating to the provision of service generally applicable to development projects seeking April 4, 2023 Item #2 Page 12 of 13 Sewer and Water Service Priority Policy for Affordable Housing Development April 4, 2023 Page 3 service from the city or the CMWD, including but not limited to, the requirements of local, state or federal laws, codes, standards, regulations or payment of a fee or charge imposed pursuant to Section 66013. 2)The city and the CMWD shall revisit, revise (if necessary) and readopt an update to these procedures and policies at least once within five years of the issuance date. April 4, 2023 Item #2 Page 13 of 13 All Receive -Agenda Item# 2- For the Information of the: CITY COUNCIL Date 1i13J.23 CA~ CC / CM _0c'M ✓o'cM (3) ~ April 3, 2023 To: Council Memorandum d Members of the City Council/ {city of Carlsbad Honorable Mayor Black Honorable President BIE.l,,J"'·..,.._l-LJJ!, Cindie K. McMahon, City Atta Scott Chadwick, City Mani er nd Members of the Board of Directors From: Via: Re: Additional Materials Relat ~/ taff Report Item No. 2 -Policy Prioritizing Sewer and Water Service Connections for Proposed Developments that Include Housing Units Affordable to Lower-Income Households (Districts -All) This memorandum provides corrections to the recommended actions and the resolution titles for Staff Report Item No. 2 -Policy Prioritizing Sewer and Water Service Connections for Proposed Developments that Include Housing Units Affordable to Lower-Income Households Recommended Actions The recommended actions currently read: 1. Adopt a resolution authorizing the City Manager to approve a policy to prioritize sewer services for proposed developments that include housing units affordable to lower- income households. 2. Adopt a Carlsbad Municipal Water District Board of Directors resolution authorizing the Executive Manager to approve a policy to prioritize water services for proposed developments that include housing units affordable to lower-income households. The recommended actions should read: 1. Adopt a resolution approving a policy to prioritize sewer services for proposed developments that include housing units affordable to lower-income households. 2. Adopt a Carlsbad Municipal Water District Board of Directors resolution. approving a policy to prioritize water services for proposed developments that include housing units affordable to lower-income households. Resolution Titles Exhibit 1 The resolution title in Exhibit 1 currently reads: City Attorney's Office/General Counsel's Office 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 442-339-2891 t Council Memo -Additional Materials Related to Staff Report Item No. 2 April 3, 2023 Page 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO APPROVE A POLICY TO. PRIORITIZE SEWER SERVICES FOR PROPOSED DEVELOPMENTS THAT INCLUDE HOUSING UNITS AFFORDABLE TO LOWER-INCOME HOUSEHOLDS The resolution title should read: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A POLICY TO PRIORITIZE SEWER SERVICES FOR PROPOSED DEVELOPMENTS THAT INCLUDE HOUSING UNITS AFFORDABLE TO LOWER-INCOME HOUSEHOLDS Exhibit 2 The resolution title in Exhibit 2 currently reads: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, AUTHORIZING THE EXECUTIVE MANAGER TO APPROVE A POLICY TO PRIORITIZE WATER SERVICES FOR PROPOSED DEVELOPMENTS THAT INCLUDE HOUSING UNITS AFFORDABLE TO LOWER- INCOME HOUSEHOLDS The resolution title should read: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, APPROVING A POLICY TO PRIORITIZE WATER SERVICES FOR PROPOSED DEVELOPMENTS THAT INCLUDE HOUSING UNITS AFFORDABLE TO LOWER-INCOME HOUSEHOLDS Corrected resolutions are included in Attachments A and B to this memorandum. The resolution in Exhibit 1 requires four affirmative votes for approval. The resolution in Exhibit 2 requires three affirmative votes for approval. Policy In addition to the above corrections, the following footnote should be added to the policy at the end of the "Purpose" section: The policy was approved by the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on [date] by Resolution No. [number]. A corrected policy including this footnote is included in Attachment C to this memorandum. Attachment: A. City Council resolution (corrected) B. Carlsbad Municipal Water District,Board of Directors resolution (corrected) C. Sewer and Water Services Priority Policy (corrected) Council Memo -Additional Materials Related to Staff Report Item No. 2 April 3, 2023 Page 3 , cc: Geoff Patnoe, Assistant City Manager Paz Gomez, Deputy City Manager, Public Works Vicki Quiram, Utilities Director/General Manager Kristina Ray, Communication & Engagement Director Dave Padilla, Utilities Engineering Manager Daniel Zimny, Senior Engineer ATTACHMENT A RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A POLICY TO PRIORITIZE SEWER SERVICES FOR PROPOSED DEVELOPMENTS THAT INCLUDE HOUSING UNITS AFFORDABLE TO LOWER-INCOME HOUSEHOLDS WHEREAS, California Government Code Section 65589. 7 was amended by Senate Bill 1087 to require each public agency or private entity providing water or sewer services to grant priority for proposed developments that include housing units affordable to lower-income households; and WHEREAS, Senate Bill 1087 requires sewer and water purveyors to adopt written policies and procedures with specific objective standards for prioritizing the service needs for developments that include affordable housing units within their respective service area; and WHEREAS, the City of Carlsbad provides sewer collection services subject to the requirements of Senate Bill 1087; and WHEREAS, the city has prepared the p.olicy attached hereto as Attachment A in compliance wfth the requirements of Senate Bill 1087. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Council adopts the service priority policy as shown in Attachment A. ~ PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Carlsbad Municipal Water District Board of Directors and the City Council of the City of Carlsbad on the_ day of ___ _, 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: KEITH BLACKBURN, Mayor SHERRY FREISINGER, City Clerk (SEAL) ATTACHMENT B RESOLUTION NO. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, APPROVING A POLICY TO PRIORITIZE WATER SERVICES FOR PROPOSED DEVELOPMENTS THAT INCLUDE HOUSING UNITS AFFORDABLE TO LOWER-INCOME HOUSEHOLDS WHEREAS, California Government Code Section 65589.7 was amended by Senate Bill 1087 to require each public agency or private entity providing water or sewer services to grant priority for proposed developments that include housing units affordable to lower-income households; and WHEREAS, Senate Bill 1087 requires sewer and water purveyors to adopt written policies and procedures with specific objective standards for prioritizing the service needs for developments that include affordable housing units within their respective service areas; and WHEREAS, the Carlsbad Municipal Water District, or CMWD, provides water distribution services subject to the requirements of Senate Bill 1087; and WHEREAS, the CMWD has prepared the policy attached hereto as Attachment A in compliance with the requirements of Senate Bill 1087. NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the CMWD Board adopts the service priority policy as shown in Attachment A. PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Carlsbad Municipal Water District Board of Directors and the City Council of the City of Carlsbad on the_ day of ___ ~ 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: KEITH BLACKBURN, President SHERRY FREISINGER, Secretary (SEAL} City Council POLICY STATEMENT Policy No. Date Issued Resolution No. ATTACHMENT C Subject: Sewer and Water Service Priority Policy for Affordable Housing Development Pursuant to Section 65589.7 of the California Government Code Purpose The purpose of this policy is to establish conformance with California Government Code Section 65589. 7 by memorializing written procedures for prioritizing water and sewer service needs for proposed developments that include housing units affordable to lower-income households. The . city provides sewage collection services and the Carlsbad Municipal Water District, or CMWD, a subsidiary district of the city, provides water distribution services. Both entities are subject to the conditions of Section 65589.7. The service priority policy provided herein shall be adopted by both entities.1 Background California Government Code Section 65589. 7 was amended in 2005 by Senate Bill 108.7 to require public or private purveyors providing sewer collection or water distribution services to enact written policy to prioritize service connections for proposed developments that include housing units affordable to lower-income households. The policy must include specific objective standards for prioritizing water and sewer service needs for proposed developments that include affordable housing units within city and CMWD service areas. These policies are to be revisited, updated and readopted once every five years per Senate Bill 1087. The policies and procedures shall account for the following: 1. Regulations and restrictions adopted pursuant to Chapter 3 of Division 1 of the Water Code relating to water shortage emergencies. 2. Availability of the water supply as determined by the public agency or private entity pursuant to an urban water management plan adopted pursuant to Part 2.6 of Division 6 of the Water Code. 3. Plans, documents and information relied upon by the public agency or private entity that is not an urban water supplier, as defined in Section 10617 of the Water Code, or that provides sewer service, that provide a reasonable basis for making service determinations. Statement of Policy In accordance with Senate Bill 1087 and California Government Code Section 65589. 7, the city and the CWMD shall grant sewer and water service priority within their respective service areas to proposed developments that include housing units affordable to'lower-income households. 1The policy was approved by the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on [date] by Resolution No. [number]. Sewer and Water Service Priority-Policy for Affordable Housing Development April 4, 2023 Page 2 Procedure The following definitions shall apply to this policy: 1) "Proposed developments that include housing units affordable to lower-income households" means that dwelling units shall be sold or rented to lower-income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. 2} "Water or sewer services" means the supply of a service through a pipe or other constructed conveyance system for residential purposes. This does not include the resale of water for human consumption from one water supplier to another. This also does not include passing sewerage from one sanitary agency's collection system to another. The policy shall be implemented and enforced per the conditions herein: 1} Neither the city nor the CMWD shall deny or condition the approval of an application for water or sewer services to, or reduce the amount of such services applied by, a proposed development that includes housing units affordable to lower-income households unless the city or the CMWD make specific written findings that the denial, condition or reduction is necessary due to one of the following: a. The CMWD is operating under a water shortage emergency as defined by Section 350 of the Water Code. b. The CMWD does not have a "sufficient water supply", as defined by Section 66473.7{2)(a) of the California Government Code . c. The San Diego County Water Authority has declared Drought Response Level 5 prohibiting new water service connections. d. A written engineering analysis and report demonstrate the existing water distribution system does not have sufficient water distribution capacity to serve the proposed development. e. A written engineering analysis and report demonstrate the existing sewerage collection system does not have sufficient collection capacity to serve the proposed development. f. A written engineering analysis and report demonstrate the Encina Wastewater Authority treatment plant does not have sufficient treatment capacity for the sewerage generated by the proposed development. g. The State Water Board Division of Drinking Water, State Water Resources Control Board, San Diego Regional Water Quality Control Board and/or the San Diego County Department of Environmental Health and Quality issues an order to the CMWD that prohibits new water connections or to the City that prohibits new sewer connections. h. The applicant has failed to agree to reasonable terms and conditions relating to the provision of service generally applicable to development projects seeking Sewer and Water Service Priority Policy for Affordable Housing Development April 4, 2023 Page 3 service from the city or the CMWD, including but not limited to, the requirements of local, state or federal laws, codes, standards, regulations or payment of a fee or charge imposed pursuant to Section 66013. 2) The city and the CMWD shall revisit, revise (if necessary) and readopt an update to these procedures and policies at least once within five years of the issuance date.