ITEM:		PUBLIC HEARING
18.	CONSIDER SECOND READING AND ADOPTION OF ORDINANCE NO. 149, AN ORDINANCE OF THE BOARD OF DIRECTORS AMENDING THE REBATE PROGRAM
Meeting Date:			September 19, 2011	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Pintar	Cost Estimate:	N/A
General Counsel Review: Yes
Committee Recommendation: On July 21, 2011, the Water Demand Committee recommended the Board approve the proposed amendments to the Rebate Program. The Technical Advisory Committee (TAC) reviewed the ordinance on August 2, 2011, and recommended approval. This ordinance has been provided to California American Water and to the Public Utilities Commission’s Division of Ratepayer Advocates (DRA).
CEQA Compliance: The replacement of existing facilities is a categorical exemption under Class I, §15301 of the California Environmental Quality Act.

RECOMMENDATION: Ordinance No. 149 (Exhibit 18-A) amends the District’s Rebate Program to increase the Rebate amounts for Residential and Commercial High Efficiency Clothes Washers (HECW), eliminates the Rebate for Synthetic Turf and Rain Sensors, and reduces the amount of the Rebate for Lawn removal. The ordinance also adds a definition to MPWMD Rule 11 for Commercial High Efficiency Clothes Washer and deletes language in Rule 141-B that was inadvertently omitted during adoption of Ordinance No. 148 in April 2011.

The Rebate Program within the California American Water (CAW or Cal-Am) system is currently suspended pending future funding through the California Public Utilities Commission (CPUC). Funding in the amount of approximately $2.1 million is anticipated in January 2012. The Rebate Program for Users within the District that are not served by California American Water has not been suspended, and Rebates are available through a separate Rebate Account in the District’s Fiscal Year 2011-2012 budget.

DISCUSSION: Details of the proposed Rebate Program amendments, including cost/benefit information, was provided in the staff report for the first reading of Ordinance No. 149 on August 15, 2011. Prior to first reading, the ordinance was reviewed and supported by the appropriate District committees (i.e., Water Demand Committee and Technical Advisory Committee) and by California American Water and was provided to the CPUC’s Division of Ratepayer Advocates (DRA).

The following bullets summarize the proposed amendments to Rule 141 (the Rebate Program):

• The Rebate for purchase and installation of a Residential HECW increases from $250 to $500;

• The Rebate for purchase and installation of a Commercial HECW increases from $450 to $1,000 with a limit of twenty (20) per Site unless specific authorization for a greater number is secured from the General Manager. The Commercial HECW Rebate Program will only be available until December 31, 2012, when retrofit to Commercial HECW becomes a District mandate;

• The Lawn removal Rebate is being reduced from $1.25/square-foot to $1.00/square-foot, and the maximum Lawn removal Rebate has been reduced from $6,250 to $2,500 per Site (i.e., from 5,000 square-feet to 2,500 square-feet of removed Lawn);

• The Rebate for Synthetic Turf has been eliminated due to comments received from the public and representatives of the local Jurisdictions regarding environmental concerns related to run-off from Synthetic Turf;

• The Rebate for Rain Sensors has been eliminated as agreed upon by MPWMD, California American Water and the California Public Utilities Commission’s Division of Ratepayer Advocates (DRA).

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RECOMMENDATION: Following public comment, staff recommends the Board approve the second reading and adopt Ordinance No. 149. Following adoption, staff will commence working with Zone 24/7 (computer programmers) to implement the Rule changes in the District’s database prior to the implementation date of January 1, 2012. Staff will also work with California American Water to publicize the amendments to their customers and to local appliance and landscaping distributors and professionals.

This ordinance is exempt from CEQA. Upon adoption, staff will file a Notice of Exemption with the County Clerk. Replacement of existing facilities is a categorical exemption under Class I, §15301 of the California Environmental Quality Act.

IMPACT ON STAFF/RESOURCES: The changes proposed in this ordinance will increase the participation level of the HECW Rebate program. Computer programming costs for implementation of the ordinance were included in the Fiscal Year 2011-2012 budget.

EXHIBITS

18-A Ordinance No. 149

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