Coachella Valley Water District

Was a public meeting held?: On May 12, 2015, the CVWD Board of Directors adopted Ordinance No. 1419, assessing penalties for customers who do not reduce consumption by 36% of their outdoor water budget. Prior to adopting this ordinance, our Board of Directors held 3 public meetings receiving dozens of public comments encouraging strong action to prevent water waste. In accordance with state law, the Notice of Public Meeting was published 10 days in advance of the meeting in the Desert Sun and the Imperial Valley Press. Following the adoption of the ordinance, it was published on May 15, 2015 in the Desert Sun and Imperial Valley Press. Drought Penalties took effect on July 1, 2015.

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Authority in Water Conservation

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1. Under what authority can Coachella Valley Water District (CVWD) impose drought penalties or fines?: Coachella Valley Water District has been ordered by the State of California (specifically by the Governor and the State Water Resource Control Board) to reduce overall water consumption by 36% compared to 2013. CVWD is authorized under the State Constitution and the State Water Code to adopt policies to ensure water is put to beneficial use to the fullest extent possible and to prevent water waste.

Under Article X, Section 2 of the California Constitution:

…the general welfare requires that the water resources of the State be put to beneficial use to the fullest extent of which they are capable, and that the waste or unreasonable use or unreasonable method of use of water be prevented.

California Water Code Section 31026 provides that:

A district (such as CVWD) shall have the power to restrict the use of district water during any emergency caused by drought, or other threatened or existing water shortage, and to prohibit the wastage of district water or the use of district water during such periods, for any purpose other than household uses or such other restricted uses as may be determined to be necessary by the district and may prohibit use of such water during such periods for specific uses which the district may from time to time find to be nonessential.

2. Was a public meeting held?: On May 12, 2015, the CVWD Board of Directors adopted Ordinance No. 1419, assessing penalties for customers who do not reduce consumption by 36% of their outdoor water budget. Prior to adopting this ordinance, our Board of Directors held 3 public meetings receiving dozens of public comments encouraging strong action to prevent water waste. In accordance with state law, the Notice of Public Meeting was published 10 days in advance of the meeting in the Desert Sun and the Imperial Valley Press. Following the adoption of the ordinance, it was published on May 15, 2015 in the Desert Sun and Imperial Valley Press. Drought Penalties took effect on July 1, 2015.

3. How were customers notified?: In addition to the public notices required under State Law, CVWD has used multiple media channels, including print, television and radio ads, to get the message out about drought penalties to our customers. Bill inserts were mailed to customers in June along with billing statements containing a message stating that drought penalties were coming July 1, 2015. A red message indicated what Drought Penalties would have been assessed in June had the penalties been in place. CVWD mailed every customer a brochure, mailed letters to various other customer classes, sent e-mails to customers, developed an envelope message, news releases, articles for HOAs, city and chamber newsletters, and attended public events.

4. Does the San Juan Capistrano court case make your tiered rates illegal?: The San Juan Capistrano opinion does not prohibit tiered rates. In fact, the opinion states "Neither the voters nor the Constitution say anything we can find that would prohibit tiered pricing." Our tiered rate structure was adopted based on the costs to provide service and is compliant with the State Constitution, state law, and applicable case law.

Water Code Sections 370-374 permits public entities to develop allocation-based conservation water pricing (i.e. tiered rates) to prevent water waste or unreasonable use of water. CVWD’s tiered pricing structure complies with these legal requirements.

5. My HOA and/or city prohibit me from allowing my lawn to brown or converting to desert landscaping. How can I be expected to conserve water?: Assembly Bill 2100 was signed into law in 2014 which amended the Davis-Stirling Common Interest Development Act, particularly California Civil Code Section 4735. The Davis-Stirling Act voids and makes unenforceable any HOA governing documents that prohibit the use of low water-using landscape. The bill prohibits a HOA from imposing a fine or penalty against a member for reducing or eliminating watering of landscaped area when the Governor has declared a state of emergency or a local government has declared a local emergency, due to drought.

Assembly Bill 1 was signed into law in 2015 which amended Government Code Section 8627.7. This act prohibits a county or city from imposing a fine against an individual for failure to water a lawn or for having a brown lawn when the Governor has issued a state of emergency due to drought.

The State Legislature has continued to adopt follow up legislation to further clarify the State’s authority and the rights of homeowners on these issues.

6. Why does the district not comply with the requirements that apply to public utilities under the public utilities code?: CVWD is not a public utility, municipally owned utility, nor a municipal corporation. As a result, CVWD is not subject to the Public Utilities Code. CVWD was formed under County Water District Law set forth in Water Code Section 30000 and the statutes that follow that section. A County Water District is not the arm of any county but rather, is an independent special district with the authority to provide water and wastewater service as a separate public agency. CVWD’s authority and obligations arise from the Water Code, the Government Code and related laws. However, the laws in the Public Utilities Code, which apply to investor-owned utilities like Edison or PG&E for example, do not apply to a County Water District operating under the Water Code. A special district ensures local control. The board of directors meets locally so the public can attend and provide input and voters choose their representatives on the board through public elections. As a result of this local control, qualified individuals can also run for a seat on the board of directors.

7. I am an apartment owner and have no control over consumption at my rental units. How can I be expected to comply with the drought ordinance?: Apartment owners are customers of CVWD and are responsible for complying with the restrictions on water use like any other customer, regardless of the consumption habits of that property owner's tenants or others living on that property. The statewide Drought Regulations imposed by the Governor and State Water Resources Control Board mandate water use restrictions on all customers of urban water suppliers, including customers of CVWD.

Apartment owners do have control to improve water conservation in their property. Installing water-efficient appliances and fixtures, fixing leaks in a timely manner, and reducing outdoor irrigation times are all steps that reduce water consumption.

8. Under what authority can the district require that service be provided on the account of the landlord?: As a County Water District formed and operating under the County Water District Law, CVWD is authorized to adopt policies relating to the provision of services and facilities for service and the regulation of those services and facilities. (Water Code Sections 31027, 31105). CVWD may exercise the powers granted under the County Water District Law and those powers necessarily implied there from. (Water Code Section 31000). In addition, CVWD has the power generally to perform all acts necessary to carry out fully the provisions of the County Water District Law. (Water Code Section 31001). Therefore, CVWD has the authority to adopt a policy that requires the landlord to be on the account with a tenant.

CVWD is not subject to any requirement in the Public Utilities Code which may prevent an agency from requiring landlords to be on accounts. CVWD is not subject to, and does not operate under, any such requirements in the Public Utilities Code. In fact, the legal requirements that do apply to CVWD specifically authorize CVWD to impose such requirements on landlords. Water Code Section 31007.5, which is part of the County Water District Law, provides as follows:

No district furnishing water for residential use to a tenant shall seek to recover any charges or penalties for the furnishing of water to or for the tenant's residential use from any subsequent tenant on account of nonpayment of charges by a previous tenant. The district may, however, require that service to subsequent tenants be furnished on the account of the landlord or property owner.