Mark’s Ventura County Market Analysis
Special Camarillo - Drought vs New Home Development Issue
Special Camarillo - Drought vs New Home Development Issue
2nd
& 3rd Quarter 2015 - (April - September)
Housing sales, new home development, and water use
have become interlocking issues in Ventura County. There is a housing shortage
in Ventura County which has become more pronounced in the last 3 years. The
demand for new homes has become so great that developers are once again free to
build whatever city planning commissions will allow, knowing that any home they
build will sell. That frequently translates into large, multi-story luxury
condos priced from the mid - $400,000’s on up, and 4 bedroom homes priced from
the high $700,000’s to over $1,000,000.
The high cost of living in California is in no small
part due to the infrastructure costs of new housing. Huge new developments are
currently being built or are in the final planning stages for Camarillo, Oxnard,
Santa Paula, Moorpark and Simi Valley, with smaller developments in almost
every other town in the county. More
home development translates to greater demand on schools, police, fire
departments, road maintenance/construction and water resources.
The severity and length of California’s drought have
prompted the State to take the extraordinary action of mandating reductions in
each city’s water useage, with very real consequences possible for those cities
( like Moorpark ) which fail to meet the state targets. Each town in Ventura County has responded in
a different manner to these requirements and a very few have finally begun the
process of addressing water issues as they apply to new home construction.
To be fair, some towns have been working for years
to improve their water resource infrastructure and availability. Oxnard,
Camarillo and Ventura have all developed water treatment/pumping facilities to
meet new demand in the last few years. Yet not all towns have a formalized
linkage between water resources and new home development. More water is being
pumped or purchased from other water agencies and then immediately apportioned
to new home developments. It’s like maxing out a credit card and then asking to
raise your minimum balance instead of paying it off.
New home development is a double edged sword from a
water use viewpoint. New high density development requires not only more water,
but often an increase in the size and capacity of the entire city water and
sewer distribution system. New development also requires specifically sourced
water.
Oxnard has a brand new Advanced Water Purification
Facility that produces drinkable quality water, recycled from the sewer system.
Unfortunately, it does little to reduce the human demand for water since by law
it cannot be used for drinking water but can only be used for other purposes
such as farming.
There are a myriad of water agencies affecting the
supply of water to each municipality. These include the State Water Resources
Control Board which acts apparently as some sort of “Supreme Court” for water
issues. Then there is the Los Angeles Regional Water Quality Control Board, the
Calleguas Municipal Water District, the Pleasant Valley County Water District
which gets it’s water from the Thousand Oaks’ Hill Canyon Wastewater Treatment
Plant, United Water Conservation District which gets it’s water from Lake Piru
and has 2 reservoirs in Camarillo managed by Pleasant Valley. These are just a few of the water providers
feeding the demand of the cities in Ventura County and each seems to have its’
own way of doing business.
Regardless of how each town manages its water
supply, the net result has been to make water use more restricted, regulated
and expensive for the average citizen and home owner. City governments have,
with rare exception, passed these costs on to their constituents without any
form of public review or voting process.
More than one town has seized
upon the water shortage as an excuse to charge its citizens higher water rates
though there is no real justifiable increase in city costs to produce that
water. According to California Proposition 218 this is not legal for cities to
do.
“In April, a state appeals court
ruled that a tiered water rate used by the City of San Juan Capistrano to
encourage conservation – similar to the plan proposed by Ventura – was
unconstitutional. The 4th
District Court of Appeal struck down Capistrano’s fee plan, saying it violated
Proposition 218, which prohibits government agencies from charging more for a
service than it costs to provide it.” Since the State Water Resources
Control Board is enforcing the Governors’ water reduction mandate with each
city in California, perhaps they should also check that city compliance is
being done in a strictly legal manner.
I have arranged the material for this report in a
roughly chronological format beginning the 2nd quarter of this year
and progressing to early October. Issues are dynamic and have continued to
change and evolve during this time so I have tried to capture a bit of this
process. There is no way to include
everything which has happened since the governors drought reduction mandate
this last Spring but I have tried to include enough details to lend a bit of insight
and flavor to this extraordinary time in our Ventura County history.
Drought
vs Development in Camarillo
The April 10
issue of the Ventura County Star quoted Camarillo Public Works Director Tom Fox
as stating that the city has initiated a recycled-water system that will
replace about a million gallons a day of potable water. “ The Pleasant Valley
Recreation and Park District began receiving the recycled water for irrigation
in March, and the Village at the Park and Marz Farms soon will use this water
as well.”
The Public Works Director said the city also is
working on plans for a groundwater desalination plant that will treat
groundwater at the north end of the city that is currently unuseable and create
a new local source of high quality water. Fox said a question that is often
asked is: How can the city allow new home construction when there is not enough
water?”
“We don’t allow new customers to build in the city
unless they provide their own water source. In the case of the Springville
development of 1,300 homes, the land was previously used to grow strawberries,
a very water-intensive crop. Homes use far less water, so the extra water can
be transferred to the city.”
The May 28
issue of the Ventura County Star contained an article with Councilwoman Jan
McDonald and Councilman Mike Morgan expressing concerns over the continued
approval of residential home developments during our severe drought conditions.
CAMARILLO, Calif. - The
Camarillo City Council decided on Wednesday to consider an appeal of the
Planning Commission’s recent approval of the construction of 99 for-sale
townhomes due to continued water concerns in the city. The townhome project is
on about 5.76 acres in the Springville Specific Plan area at the southwest
corner of Ponderosa Drive and Spring Oak Road.
The council plans to
consider the appeal, requested by Councilwoman Jan McDonald, at a special meeting
at 9:45 a.m. on Friday at Camarillo City Hall. The council will only be
deciding if the appeal should be considered for approval at a future meeting. McDonald
requested that the council consider appealing the decision on what she
considers to be “outdated and incomplete water studies on the project.”
She brought up the
appeal during council comments, when she talked about how she is dismayed that
the Planning Commission continues to process residential developments “kind of
business as usual” with no consideration of water usage for the projects and
that the state is in a drought. “It’s something that I still personally can’t
understand. I’m having a hard time explaining that the members of the community
that ask me about it,” McDonald said.
The councilwoman also
requested an agenda item at a future meeting to have a discussion on a
potential moratorium on new building and grading permits for new residential
developments until the state is out of current drought conditions. McDonald
said if there isn’t a complete moratorium, perhaps a requirement should be
considered that water studies be updated on development projects. She said
other cities are having similar discussions about the drought and how it can
affect future development projects.
“I think the thing we
need to do for our community is that we as a council and staff need to have an
open and honest public discussion on how to handle the water issue,” McDonald
said.
Councilman Mike Morgan
said he has also had concerns about water and the drought.“It’s the worst I’ve
seen in 52 years I’ve been here, and it’s not going to get any better,” he
said. Morgan requested that city staff
prepare a council policy that would halt any new building permits without
allotments until a desalter project is completed or until the drought status
has been reduced or resolved. Morgan also wanted to request that all building
permits already approved be restricted to following Stage 3 Water Alert status.
Councilman Kevin Kildee
said the city is unlike many cities and to his knowledge has never approved a
development without procuring a source of water.
Mayor Bill Little said
any moratorium and associated laws allowing it would have to be researched by
city staff before consideration by the council.
In June
the Camarillo City Council approved an “exclusive negotiation agreement” with
T.M. Mian & Associates to develop a new 700 person Conference Center with a
possible 250 room Hilton or Embassy Suites Hotel and Cheesecake Factory
restaurant. The Conference Center would be built on a vacant 12.4 acre site on
the North East corner of the intersection of Ventura Blvd and Los Posas –
across the street from the outlet mall. In the June 26 issue of the Ventura County Star it was stated that the
negotiation agreement for the 15,000 square ft conference center was unanimously approved by the Camarillo
City Council.
Curiously, there was no mention in the Star’s June
26 article of where the water would come from for the 15,000 sq ft Conference
Center and 250 room Hilton Hotel or Cheesecake Factory restaurant.
Camarillo reduced its’ water use 27% comparing May
2013 with May 2015. That is a May 2015 per person water use of 88.9 gallons per
day (which includes landscaping).
In August the
City of Camarillo circulated a report entitled “The Drought: Long Term
Solutions”. The report stated that “Currently 50% of the City of Camarillo’s
water supply is imported from Northern California and purchased from Calleguas
Municipal Water District. The rest of the city water supply comes from local
groundwater pumped from the Fox Canyon Aquifer through four city wells and
recycled water used for landscape and agricultural purposes.
The report when on to state that a new reverse
osmosis desalination plant will soon be built with plans to be operational by
“the end of 2017.” The new North
Pleasant Valley Groundwater Desalter will produce 7,500 acre-ft/year. (One
acre-foot is about 326,000 gallons. Depending on whom you quote, one acre-foot
is enough water to supply 2 to 4 families for a year.) The water will be
managed and distributed by the City of Camarillo Water Division at (805)
388-5373.
Additionally, the $40 million water treatment plant
upgrade that began in 2014 is now delivering 2 million gallons/day and will
eventually deliver 4 million gallons/day at full capacity.
According to this report, Camarillo presently
requires 11,000 acre-feet/year of water. The construction of the desalter will
add 4,500 acre-feet/year of potable water, enabling the city to cut imported
water from 5,500 acre-feet per year to 2,400 acre-feet per year. Along with
water conservation and additional recycled water use, the amount of other
groundwater pumping is estimated to reduce from 4,500 acre-feet/year to 2,000
acre-feet/year.
According to city sources, this water flows
underground from Simi Valley, picking up salt from the surrounding hills and
filling a huge aquifer at the northeast edge of Camarillo. It’s said that there
is enough water there to supply Camarillos needs for 25 years at present population.
In
an article in the Star dated Aug 31, titled “Residents
voice concerns amid drought”, it was stated that “In July, the majority of the
council backed away from an ordinance change that would have restricted water
service to developments underway in the city. Faced with state-imposed water
reductions, Camarillo proposed an urgency ordinance that would curb issuing
‘will serve letters’, which allow developers to obtain city water meters for
competed projects. The city would resume providing the letters when the state
lifts the mandatory cutbacks.”
“Developers told the council the ordinance would
stop numerous projects they’ve invested millions of dollars to complete. They
said the city would be initiating a building moratorium under the guise of a
water conservation ordinance.”
“Councilman Mike Morgan said the city is ahead of
the game with water conservation and projects, such as a new desalter, in the
works. He also said developers are already required to show how they will bring
water to the table.”
During the 26 Aug meeting, “City attorney Brian
Pierik warned council members to limit their comments on the issue because it
wasn’t on the agenda. Mayor Bill Little
also repeatedly warned the audience not to applaud or heckle speakers.
“Camarillo resident Marge Lorraine said she thought
council members trying to challenge the speakers was appalling. ‘The council
proved they don’t care what people think,’ Lorraine said.”
“City Manager Bruce Feng said the city has a long
term water plan in the works, but that the builders also have rights. ‘We don’t
want to end up in a situation legally where we’re confronted by a group of
developers that would suffer inverse action,’ he said.”
“Later, the council voted 3-2, with council members
Jan McDonald and Kevin Kildee dissenting, to approve a tentative tract map
application for 129 condominiums in Mission Oaks. The Camrosa Water District
would have to give the city a water will-serve letter before development could
proceed.”
During
the September 22, first ever Camarillo State of the City 2015 presentation at
Camarillo’s City Hall, Mayor Bill Little hosted a very
informative program which covered a large number of city projects and
challenges including the city response to our ongoing drought. Among his remarks he stated that the new
desalination plant has an estimated cost of $50 million and somewhere between
$10 and $20 million would be funded by state and federal grants.
Mayor Little stated that Camarillo must reduce water
use by 20% and that the Metropolitan Water District which supplies water from
Northern California to Southern California has already reduced water access for
Camarillo by 12%.
Through the Calleguas Water District, the Fox Canyon
Ground Water Management Agency has reduced pumping by 30%. Using water
conservation methods, the city has further reduced water use by 25% in June and
27% in July. Also the recycled water plant is saving the city $110,000 annually
with most of the recycled water going to Village at the Park. Also, the state
has mandated that the medians of our city streets must be converted from grass to
drought tolerant plants. The Carman median is in the process of conversion at a
cost to the city of $200,000.
He also stated that the governors water reduction
edict currently is effective until the end of February 2016. He also stated,
that even though cities may develop brand new sources of water, that additional
water is not recognized in calculating the amount of water reduction is
mandated for each city. In other words, total water use must be
reduced regardless of any new sources of water that may be developed by a city.
The state requires a water use study for any new
development of 500 units or more. Camarillo requires a water use study for any
new development of 5 units or more. The new long term water use policy
is for each new development to bring its’ own water or reduce impact through a
water credit transfer, or by actually causing a water use reduction elsewhere
in the water service area.
Home owners may now convert up to 90% of their front
yards into artificial turf with 10% live plants. For homes with drought
tolerant landscaping (other than artificial turf), 30% of the landscaping must
be live plants.
Also explained was the right for the city to develop
areas without a vote. Each city in Ventura County has what is called an Urban
Boundary Line within which any property can be developed without a public vote.
The Springville Specific Plan falls within the Camarillo Urban Boundary Line.
Mayor Little also revealed that the Camarillo Police
Department has pioneered a new project to provide permanent housing for local
homeless people. Called Project Hope, it has already helped 61 homeless people
to relocate to permanent housing. They are working hard to find homes for the
estimated 31 additional homeless people in Camarillo.
The population of Camarillo has increased from
54,013 people in a 1990 census count to our current 66,000 residents. The Mayor
stating “that’s only a 24 percent increase in 25 years, or less than 1 percent
a year.”
By my count there were approximately 50 Camarillo
residents in attendance at this televised presentation which lasted about an
hour. Written questions were allowed and answered by both Mayor Little and Mr
Bruce Feng - the City Manager, during a session lasting an additional full
hour.
In an Oct 2 article of the Star it was announced
that the “Camarillo City Council recently unanimously voted to make the HERO
Program available to residents. Fillmore, Ojai, Oxnard, Port Hueneme, Santa
Paula, Ventura and Camarillo are all launching a program that allows homeowners
to pay for water saving projects through their property taxes. Under the “HERO
Program”, homeowners can finance energy or water saving home improvements
through property taxes. Participants make payments over 5 to 20 years, and interest
is tax – deductible.”
“Water saving projects include drip irrigation
systems, artificial turf, drought-tolerant landscaping, and high efficiency
toilets, faucets and shower heads. Energy-saving projects include solar panels,
energy efficient heating and air conditioning systems, double windows, roofing
and insulation.” Visit www.heroprogram.com
for more information.
In
Summary, I’m not a politician and I don’t pretend to
completely understand all the development and water issues facing Ventura
County but I have studied each town in the county and I feel Camarillo has done
a better job than most in responding to the water crisis. Mayor Little, Vice
Mayor Morgan, City Manager Feng and other city officials have been very active
in addressing the water issues to the public, hosting numerous discussions and
presentations around town and I feel they should be commended for their efforts.
Having said that, I am still concerned. The Metropolitan Water
District has reduced water access to Camarillo by 12%, Calleguas Water District
has reduced water pumping by 30%, the new water desalination plant is not
scheduled to open until the end of 2017 and according to Mayor Little, State
and Federal grants cover only $10 to $20 million of the estimated total cost of
$50 million.
Last May, City Council Members discussed a
moratorium on new development until the drought eases, halting any building
permits which do not have their own water source or restricting
them to following Stage 3 Water Alert status. Yet these precautions have not
been enacted, and new developments continue to be approved. Our City Officials
explain “that developers have rights too.”
My question would be – what happens if
the new water desalination plant is more expensive than originally planned?
What if the plant is not built in 2 years, or some technical issue arises that
prevents timely operation of the new plant. We are literally betting the farm
and Camarillos’ future on a facility that does not yet exist. What is the back-up
plan if this desalination plant does not happen? Where will the water come
from?
Just the way I see it,
Mark Thorngren
Movewest Realty, Inc (805) 443-3366
BRE Lic. #01413932
Mark's Blogs:
Additional drought and water use websites can be
found at: www.cityofcamarillo.org/savewater
, www.bewaterwise.com
, www.camarillogardening.com
, www.saveourh2o.org .
Most of the data used for this report is taken
from the Ventura County Star and our local Ventura County Multiple Listing
Service unless otherwise noted. This report is far from comprehensive and many
important issues have been trimmed in the interest of brevity. All opinions are
those of the author alone and do not necessarily reflect the viewpoint of
Movewest Realty, Inc., the VCCAR or the Ventura Coun
