ITEM 6-B

City Council Meeting 12-12-89            Santa Monica, California

                          STAFF REPORT

TO:         Mayor and City Council

FROM:       City Attorney

SUBJECT:    Ordinance Adding Section 7200B to the Santa Monica
            Municipal Code to Establish a Residential Water
            Conservation Incentive Fee Program

      At its meeting  on  December  5,  1989,  the  City  Council
introduced for first reading an ordinance adding Section 7200B to
the Santa Monica Municipal Code to establish a residential  water
conservation   incentive  fee  program.   The  ordinance  is  now
presented to the City Council for adoption.

                         RECOMMENDATION

      It  is  respectfully  recommended  that  the   accompanying
ordinance be adopted.


                      ORDINANCE NUMBER ____

                      (City Council Series)

             AN ORDINANCE OF THE CITY COUNCIL OF THE
        CITY OF SANTA MONICA ADDING SECTION 7200B TO THE
     SANTA MONICA MUNICIPAL CODE TO ESTABLISH A RESIDENTIAL
            WATER CONSERVATION INCENTIVE FEE PROGRAM

      THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:

      SECTION 1.  Section 7200B is  added  to  the  Santa  Monica
Municipal Code to read as follows:

                 SECTION  7200B.   Residential  Water
           Conservation Incentive Fee Program.

                 (a)  The City Council by  resolution
           may impose a conservation incentive fee on
           the charges for supplying water service to
           any  residential consumer in the event the
           consumer  has  not  installed  any   water
           conservation  measure  set  forth  in  the
           resolution imposing the surcharge.

                 (b)  No person who has been relieved
           of  the  obligation  to pay a conservation
           incentive fee because of the  installation
           of  any  water  conservation measure shall
           remove  such  water  conservation  measure
           without  first  notifying the City of such
           removal.  In the event  of  such  removal,
           the  City  may  reimpose  the conservation
           incentive fee.

      SECTION 2.  Any provision of  the  Santa  Monica  Municipal
Code  or  appendices  thereto inconsistent with the provisions of
this Ordinance, to the extent  of  such  inconsistencies  and  no
further, are hereby repealed or modified to that extent necessary
to affect the provisions of this Ordinance.

      SECTION 3.  If any section, subsection,  sentence,  clause,
or  phrase of this Ordinance is for any reason held to be invalid
or unconstitutional by a decision of any court of  any  competent
jurisdiction,  such decision shall not affect the validity of the
remaining portions of this Ordinance.  The  City  Council  hereby
declares  that  it would have passed this Ordinance, and each and
every  section,  subsection,  sentence,  clause,  or  phrase  not
declared  invalid  or  unconstitutional without regard to whether
any portion of  the  Ordinance  would  be  subsequently  declared
invalid or unconstitutional.

      SECTION 4.  The Mayor shall sign and the City  Clerk  shall
attest  to  the  passage of this Ordinance.  The City Clerk shall
cause the same to be published once  in  the  official  newspaper
within  15  days after its adoption.  This Ordinance shall become
effective after 30 days from its adoption.

APPROVED AS TO FORM:

____________________
ROBERT M. MYERS
City Attorney