Friday, October 30, 2015

City of Camarillo, Ca - Drought vs New Home Development - 2nd & 3rd Quarter 2015


Mark’s Ventura County Market Analysis
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
 
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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