ITEM: VI PUBLIC HEARINGS
| Meeting Date: March 19,
2001 Staff Contact: Stephanie Pintar General Counsel Approval: N/A
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Budgeted: N/A Program/Line Item No.: N/A Cost Estimate: N/A |
SUMMARY: Ordinance No. 100 (Exhibit 1) temporarily suspends the authority of the Water Management District to receive any water credit transfer applications under District Rule 28 B that are not for "like to like" (i.e., identical) commercial-to-commercial or industrial-to-industrial expansions of an existing use. The ordinance also states that any payment of money or other value in compensation for the transfer cannot exceed the connection fee that would apply to the increment of water use capacity pursuant to Rule 24. At the direction of the Board chair, the ordinance was modified after first reading to sunset on the 91st day, unless rescinded earlier by a vote of the Board. A provision allowing extension of the ordinance has been eliminated.
RECOMMENDATION: The Board should consider public comment before acting on the second reading. If adopted following second reading, Ordinance No. 100 will be effective on March 20, 2001.
The District's Technical Advisory Committee/Policy Advisory Committee (TAC/PAC) reviewed draft Ordinance No. 98 at its February 8, 2001 meeting. By unanimous vote, the TAC/PAC voted not to support this ordinance.
BACKGROUND: At the January 27, 2000 meeting, the Board considered modifying the water credit transfer program to include residential uses. At the time, the key issue was whether current District rules, which allow the transfer of commercial water credits to another commercial site but prohibit the transfer of residential water credits to another residential site, should be amended. The Board did not take action at the January meeting other than to direct staff to set a public hearing for review of the water credit transfer ordinance at the February 24, 2000 board meeting.
At the February 24, 2000 Board meeting, staff was directed to prepare a report on whether or not water demand has been reduced as a result of the existing water credit programs. The preliminary report that was presented on March 20, 2000, indicated that the anticipated water savings from the program were not occurring. Staff was directed at the March 20, 2000 meeting to continue researching the water savings associated with Water Use Credits and transfers and report back to the Board in 90 days.
District staff began an extensive data collection process following the March 20, 2000 Board meeting. Cal-Am customer-specific data related to individual water consumption is proprietary and confidential information owned by Cal-Am. For the District to access this information, a non-disclosure agreement was necessary. The non-disclosure agreement was signed by both parties on June 7, 2000. This agreement allows the District access to Cal-Am's confidential customer consumption records for limited purposes on the condition that the District maintains confidentiality and agrees that information obtained from Cal-Am is the property of Cal-Am and will not be distributed to third parties.
Transfers of commercial water credits from an existing commercial use to an expanding commercial use in the same jurisdiction have been allowed since December 1993. In September 1995, Ordinance No. 79 modified the transfer rule to allow commercial credits to transfer into a jurisdiction's allocation. Once the water use credit is assigned to the jurisdiction's allocation, the water becomes available for use at the jurisdiction's discretion and can be used for residential and nonresidential uses, new connections, and remodels. All transfers require the authorization of the jurisdiction and the District, and the property owner must agree to transfer the water use credit and must agree to a deed restriction on the property.
District Ordinance No. 95 was adopted on June 19, 2000, to allow only commercial-to-commercial water credit transfers of like kind to occur during a 90-day moratorium on water credit transfers. During the 90-day period, the effectiveness of the water credit program was to be reviewed. The proposed ordinance was effective for 90 days and was extended for a second 90-day period on September 18, 2000 to give staff time to have a third party review the findings from its credit analysis. The ordinance expired on December 18, 2000, after consideration of a third extension of the ordinance was continued by lack of a quorum at the December 11 board meeting. The third party analysis of the water credit program is underway but has not been completed to date.
DISCUSSION/ANALYSIS: Adoption of the ordinance will preclude staff from accepting new transfer applications (except like-to-like transfer applications) while the Board considers taking action to modify or discontinue the water credit transfer program. A third party analysis by DCI Inc. of the findings presented to the Board in September 2000 on water consumption data supplied by Cal-Am and the water savings associated with credit transfers that was made by staff at the September 2000 meeting has been initiated and a report on the water savings at the transferring site is expected to be available for the April 2001 meeting. Information about water use at the site receiving the credit is being prepared for analysis.
There are presently nine transfer applications pending completion on file at the District. Three have been received since Ordinance No. 95 expired in December 2000. Once an application is deemed complete, it will be presented to the Board for consideration of approval.
PRIOR BOARD ACTION:A public hearing was held on this item at the February 22, 2001 board meeting. No action was taken, and board discussion on the item was postponed to permit the entire board to be present. Please see background information for other prior board action taken on this subject.
IMPACT ON STAFF/RESOURCES: Adoption of this ordinance will have minimal impact on staff work load.
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