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14-8.13 ANNUAL WATER BUDGET

(A) Authority

(1) Section 14-8.13 shall be known as the Annual Water Budget Ordinance and is enacted pursuant to the express statutory authority conferred upon municipalities to enact ordinances pursuant to its police power (N.M. Stat. Ann. §3-17-1 B (1978)). It is also adopted pursuant to the City of Santa Fe's powers under its municipal charter, adopted effective March 15, 1998, pursuant to the Municipal Charter Act, sections 3-15-1 to 3-15-16 NMSA 1978, and Article 10, §6 of the Constitution of New Mexico.

(2) The City of Santa Fe is a charter municipality, empowered to make and enforce all laws concerning municipal affairs, subject to limitations of the City charter and the constitution and laws of the state of New Mexico. A reasonable exercise of municipal authority includes planning for the operation and growth of-the municipal water utility, and planning for orderly urban development. Such planning includes the regulation of the amount and types of uses of water from the City's system to ensure that a reliable source of water exists to meet water requirements of the existing customers and that additional supplies of water in the system are allocated in a manner consistent with priorities established by the Governing Body. Establishing an annual amount of water to be budgeted for all users including additional development requesting connection to the City water system is a reasonable exercise of municipal authority to plan for the operation and growth of the municipal water utility as well as to plan for urban development, in furtherance of the public health, safety and welfare.

(B) Legislative Findings, Purpose and Intent

(1) The City has limited water supplies. Much of the City's water supply is dependent on annual precipitation, and in times of shortage or drought, this dependence can create significant variability in the seasonal and annual water supply available to the City and its water customers.

(2) The Governing Body recognizes the need to aggressively pursue available avenues for increasing the City's water supply. These include, but are not limited to the:

(a) Construction of a direct diversion from the Rio Grande to make use of the City's rights to water under that certain Lease Agreement with the Bureau of Reclamation for waters from the San Juan Diversion Project;

(b) Increase in conservation efforts, including the mandating of water catchments, cisterns, drip irrigation and other water saving strategies;

(d) Use of "return flow credits" (if available);

(e) Adoption of individual water customer budgets for all existing and new customers;

(f) Rehabilitation and improvement of existing infrastructure and building new infrastructure for water delivery and effluent distribution;

(g) Adoption and implementation of regulations for the use of "gray water" (when allowed by law); and

(h) Maintenance of existing infrastructure and resources to maximize their potential.

(3) The Governing Body also recognizes that it is in the best interest of the health, safety and welfare of all citizens of Santa Fe that the City immediately take the steps necessary to accurately determine the level of Total System Demand to ensure that, (a) the legal obligations of the City in operating the City Water system are being and will continue to be met, (b) Total System Supply exceeds Total System Demand, and (c) the future water needs and priorities of the City and its citizens are met. It is recognized that the water usage levels of current water customers as of August 2002 have been artificially lowered by heroic conservation efforts, and any further attempt to quantity Total System Demand must take into account the pent-up water-demand of current water company customers.

(4) As of August 26, 2002, the City's water supply is obtained from three sources that have been integrated into the City's water system: (a) 5040 acre feet of permitted surface water rights and water supplies available from the Santa Fe River Canyon and the City's reservoirs ("Permitted Santa Fe River Water"), (b) 3500 acre feet of permitted ground water rights and water supplies available from the City wells within the city limits, the St. Michael's Well, and the Northwest Well, within the Santa Fe Basin ("Permitted Santa Fe Well Water"), and (c) 10,000 acre feet of permitted ground water rights and water supplies available from the Buckman well field ("Permitted Buckman Well Water").

(5) The annual, historic supplies available from Permitted Santa Fe River Water depend upon annual precipitation. The actual historic supplies available from Permitted Santa Fe River Water range from 700 acre feet per annum in times of drought, to 5264 acre feet per annum in years of "above average precipitation." For purposes of effective and responsible management of the use of the Permitted Santa Fe River Water, the Governing Body has relied upon the most low end of this range.

(6) The annual, historic supplies available from Permitted Santa Fe Well Water depend in large part upon the limitations upon the permits for Permitted Santa Fe Well Waters and the production capacity of the City's wells within the Santa Fe Basin. The actual historic supplies available from Permitted Basin Water range from 1924 acre feet per annum as of August 31, 2002, and with the City's Northwest Well producing approximately 900 acre feet per year.

(7) The annual, historic supplies available from Permitted Buckman Well Water are limited by the offset requirements on the permits for the Permitted Buckman Well Water and the production capacity of the Buckman Wells, transmission, storage and treatment facilities. The actual historic supplies available from Permitted Buckman Water are approximately 5200 acre feet per annum in times when the City's wells in the Buckman well field are operating efficiently and at capacity with no additional offset requirements.

(8) The City's current total, historic water supplies available on an annual basis range from 9,700 acre feet (in times of shortage or drought) to 13,210 acre feet (in years of average precipitation when the City's wells, transmission, storage and treatment facilities are operating efficiently and at capacity) (all of which supplies are the "Total System Supply").

(9) The actual and anticipated demands upon and uses of the City's water service include existing customers actually receiving metered water service and existing customers who have meters but have not begun to use water from the system ("Existing Customers"), required reserved capacity and emergency reserves and uses ("Reserve and Emergency Uses"), municipal uses (i.e., parks, recreation, municipal landscaping, public institutional uses) ("Municipal Uses"), projects that have a building permit or water hook-up, or have begun the process for either, or have other agreements Potential Customers"), the County of Santa Fe under the Agreement dated August 10, 1994 (the "Wheeling Agreement"), and system losses on both the City's and Existing Customers' side of the meter ("System Losses") (all of which demands and uses are the "Total System Demand").

(10) It is in the best interest of the health, safety and welfare of all citizens of Santa Fe that the City immediately take the steps necessary to accurately determine the level of Total System Demand.

(11) It is the express purpose of the Annual Water Budget Ordinance to promote the following principles:

(a) That new demands on the City's water system will not increase Total System Demand beyond Total System Supply, as determined on a semi-annual basis by the Governing Body;

(b) That establishes an Annual Water Budget as provided in §14-8.13(D) of this Ordinance that assumes, but does not find, Total System Supply as of September 11, 2002 is committed to Total System Demand, until such time as the Governing Body otherwise finds based upon complete and accurate data gathered and presented in accordance with the Annual Water Budget Administrative Regulations and Procedures;

(d) That accurate, reliable figures for Total System Demand and Supply are developed and utilized by the City in its water planning;

(e) That the budgeting of the City's water resources is based upon reliable figures, reflect the priorities of the community with respect to the growth of the City of Santa Fe, and provide for a stable and predictable water supply; and

(f) That provides for Annual Water Allocations which recognize the priorities of the City in affordable housing, employment opportunities and the need for a healthy and stable economy, while maintaining the City's ability to provide existing residents with an adequate water supply.

(12) Any development meeting the definition of a type A development as defined in the Housing Opportunity Program or individual unit that meets the U.S. Department of Housing and Urban Development's definition of an Affordable Home shall be reimbursed by the City of Santa Fe's Conservation Fund for costs incurred for retrofitting the required number of units as proposed in this ordinance. This is to ensure that these additional costs do not impact the affordability of the home.

(1) The Annual Water Budget Ordinance shall be administered by the City as set forth in the Annual Water Budget Administrative Procedures adopted separately by resolution of the Governing Body. The administrative procedures set forth responsibilities, procedures and standards for administrative actions necessary to implement the Annual-Water Budget Ordinance.

(2) All changes to the administrative procedures shall be approved by resolution of the Governing Body.

(D) Annual Water Budget; Semi-Annual Budget Review

(1) Annual Water Budget

There is hereby established the City of Santa Fe Annual Water Budget (the "Annual Water Budget"):

(a) Comprised of Total System Supply and Total System Demand, as the same are determined on a semi-annual basis by the Governing Body in accordance with this §14-8.13;

(b) Effective for the twelve month period between March 1 to February 28, unless modified by the Governing Body in October of any given year; and

(c) Adopted annually by the Governing Body through an ordinance at the Council meeting on the last Wednesday in February and subject to review and amendment semiannually at the Council meeting on the last Wednesday in October.

(2) 2002 Annual Water Budget

As of September 11, 2002 and due to the current state of a water emergency in the City of Santa Fe, the Annual Water Budget for the twelve month period March 1, 2002 to February 28, 2003 is assumed to be fully allocated, meaning that it is assumed that Total System Supply is already committed to Total System Demand.

(3) Semi-Annual Review and Revision of Water Allocation

The Governing Body shall, at its first public meeting in October and March of each year, review the information obtained and gathered for the determination of Total System Supply and Total System Demand. If the Governing Body determines at the October meeting that Annual Water Budget and the Annual Water Allocation as provided in §14-8.13(E) of this Chapter for the current twelve-month period can be modified to provide for an increase in the Annual Water Allocations, then the Governing Body at such meeting shall make such modifications. Because the supplemental Buckman Wells have been permitted to provide drought relief and an emergency cushion by the customers of the Sangre de Cristo Water Division, any increased water supply brought on by such wells shall be available only for existing customers and reserve and emergency uses.

(4) Review of Annual Water Budget Ordinance and Procedures

At least once annually at the first Wednesday in March, the Governing Body shall review at a public hearing the effectiveness of the Annual Water Budget Ordinance and the Annual Water Budget Procedures in achieving its purposes, the effect the Annual Water Budget Ordinance is having on the economy, the effect the Annual Water Budget Ordinance is having on efficient and effective operation of the development approval process and review the possible amendments to the Annual Water Budget Ordinance.

(E) Annual Water Allocations

(1) At such times as the Governing Body determines that Total System Supply exceeds by any amount Total System Demand, the Governing Body shall recalculate and reallocate the Annual Water Budget and make an allocation of the amount of water of the Total System Supply which exceeds Total System Demand (the "Annual Water Allocation" or "Water Allocation") for the City's system as follows:

(a) All previous Water Allocations provided for in the Annual Water Budget for the preceding twelve-month period shall be included within the Total System Demand and shall be accounted for and honored prior to any new Water Allocation.

(b) The Annual Water Allocation established shall specify the specific amount of water made available on the City's system, the date when it may be utilized in a request for service as part of a building permit application or development proposal subject to this §14-8.13, and the Annual Water Allocation shall give priority to residential development in which the average sales price or rent of at least 70 percent of all units for sale or for rent are affordable to households with incomes at or below 80 percent of the area median income, using a four person household for homebuyers and a three person household for renters. Developers shall give first priority in the sale of the homes or rent of the units to households earning no greater than 80 percent of the area median household income. All building permit applications for the construction of new multi-family residences, new single family residences and any non-residential structure which after completion will require water service from the Sangre de Cristo Water Division shall only be issued in accordance with the 2002 Water Budget Administrative Procedures.

(c) After the Governing Body has determined and made (or revised) the Annual Water Allocation, then the Water Allocation shall be assigned and administered ("Administrative Allocation Assignment") to specific applications for building permits and other development proposals subject to §14-8.13, in accordance with directions of the Governing Body in making the Water Allocation and in accordance with the Annual Water Budget Procedures by the City Manager and his designees.

(d) No new allocations of water can be made until such time as 50 percent of the projects permitted by the building permits that are open as of September 11, 2002 have been completed.

(2) An Administrative Allocation Assignment creates no right to approval for the requested number of lots, units or commercial development, or commercial buildings, building permits or water meters proposed in the allocation application or as granted. The actual number of lots or units, or the amount and type of commercial development or the number of building permits or water meters that may be approved shall be determined by the appropriate development, permit or meter application review process.

(3) Administrative Allocation Assignments may not be sold, traded, transferred or exchanged in any way between applicants or allocation holders of different developments, building permits or water hookups or between different developments, building permits or water hook-ups having the same owner or applicant. Administrative Allocation Assignments are granted for specific developments, building permits or water hook-ups and specific geographic sites and they may not be moved.

(4) Nothing in §14-8.13 (E) shall prohibit the City Manager or the Governing Body from suspending Water Allocations, in accordance with §25-5 (Emergency Water Regulations Ordinance) for applications subject to §14-8.3 either inside or outside the City limits that are connected or intend to connect to the City water system.

(5) Once an Administrative Allocation Assignment has been made in accordance with §14-8.13 and the Annual Water Budget Procedures, it shall be a permanent portion of Total System Demand calculations unless it shall expire or terminate as provided in the Annual Water Budget Procedures. Upon such expiration or termination, an Administrative Allocation Assignment shall be reassigned in accordance with the Annual Water Budget Procedures.

(F) Requirement for Approvals; Building Permits, Water Hook-ups and Development Proposals; Applicability

(1) New Building Permits and Water Hook-ups

Except as provided below in §14-8.13 (F)(3), all building permit applications for the construction or placement of new multi-family residences, new single family residences, or any non-residential which after completion will require water service (whether or not a meter for service has been previously installed) from the Sangre de Cristo Water Division, or applications for water service from any project that is described in this section shall only be issued when the applicant has received an Administrative Allocation Assignment and complied with the conditions thereof

(2) Specified Development Approvals

Except as provided below in §14-8.13(F)(3), all applications filed after September 11, 2002 for subdivision approvals under Article 14-9 (except subdivisions considered by the Summary Committee of the Planning Commission and Inheritance or Family Transfer Subdivisions under §14-9.4) and for development proposals requiring a development plan approval under §14-3.8(A) (1) through (4), shall only be granted final approval when the applicant has received an Administrative Allocation Assignment for the proposed project and complied with the conditions thereof.

(3) Offsets

Any building permit or water hook-up shall be issued or granted only if it is in compliance with all sections of Chapter 14 and when the applicant demonstrates that the water demands created by the use of the structures for which the building permit, water hook-up or development approval is sought will be entirely offset ("Project Water Offset") in accordance with the Annual Water Budget Procedures and §14-8.13(F). An applicant may demonstrate Project Water Offset through the following methods and in compliance with the submittal requirements of the Annual Water Budget Procedures:

(a) By actually replacing the total number of Required Retrofits and supplying the documentary evidence required by Annual Water Budget Procedures.

(4) The Annual Water Budget Procedures shall require replacement water fixtures for residential and non-residential construction subject to §14-8.13 as follows:

(a) Residential Uses:

(i) For a "DWELLING UNIT, LOW WATER USE" as defined herein, the applicant shall retrofit eight fixtures for each new fixture installed;

(ii) For a "DWELLING UNIT, MEDIUM USE" as defined herein, the applicant shall retrofit ten fixtures for each new fixture installed; and

(iii) For a "DWELLING UNIT, HIGH WATER USE" as defined herein, the applicant shall retrofit twelve fixtures for each new fixture installed.

(b) Non-residential Uses. The applicant shall retrofit the number of fixtures in accordance with the Annual Water Budget Procedures. In all cases, the amount of water offset by retrofits shall be equal to or greater than the estimated water usage of the proposed building as determined by the Annual Water Budget Procedures.

(c) The City shall monitor water use in all retrofitted buildings and shall report such use to the public in the semi-annual water use and supply review.

(d) Any fixture that is obtained for free or which has received a rebate from any City water conservation program is not eligible to be counted as an eligible retrofit.

(5) The following development approvals shall not be subject to the provisions of §14-8.13:

(a) Applications for General Plan amendments, annexations, master plans, master plan amendments, or rezonings where the rezoning does not require a development plan as part of the application;

(b) Applications for preliminary subdivision plat and plan approval, subdivisions approved by the Summary Committee of the Planning Commission, subdivisions created by Inheritance or Family Transfer;

(c) Government development that connects to the City water system but is not subject to City development plan and building permit procedures; provided, however, the water demand of all such developments shall be calculated and charged against the Total System Demand; and

(d) Applications where the purpose is to create tracts of land according to an approved master plan, and where additional subdivision of land or a more detailed development plan within the various tracts is still necessary to construct dwelling units and other buildings according to that master plan.

(Ord. No. 2002-29 §§ 5-11)