Water Demand Committee January 20 2004 Item 2E Discuss Policy Regarding Reassigning Water Credits

WATER DEMAND COMMITTEE

MEETING DATE: JANUARY 20, 2004

ACTION ITEM 2-E: DISCUSS POLICY RELATED TO REASSIGNING WATER CREDITS

SUMMARY: Due to the complexity of requests to assign water credits from an adjacent parcel/lot to vacant lots of land, staff requested guidance from the Water Demand Committee. The assignment of water credits is an administrative practice that is not set forth in the District’s Rules and Regulations. At the September 23, 2003, Water Demand Committee meeting, the Board Chair suspended processing requests for credit reassignments to vacant lots or lots with uninhabitable structures pending policy action from the Board. Staff was directed to determine what type of rule change this policy direction required. If development of a resolution or ordinance were necessary, staff was directed to proceed with presenting the issue to the committee or the Board. Straightforward reassignments of credit, such as occurs when a demolished house straddled a lot line, were allowed by continue.

The former Water Demand Committee reviewed the following information at its September 23, 2003 meeting and affirmed that water credit reassignments should not be allowed if they facilitate construction of a new connection (new residence).

Requests to reassign credit occur for a variety of reasons. Originally, staff received requests for reassignment when a house was being demolished that straddled two lots. In recent times, requests have become increasingly complex. Examples of reassignment requests are summarized in the following numbered paragraphs, with an example of how staff would currently administer the request following the example. It should be noted that the issue of reassigning water credit comes about due to the District’s definition of a “site” in Rule 11:

SITE - shall mean any unit of land which qualifies as a parcel or lot under the Subdivision Map Act, and shall include all units of land: (1) which are contiguous to any other parcel (or are separated only by a road or easement), and (2) for which there is unity of ownership, and (3) which have an identical present use. The term "Site" shall be given the same meaning as the term "Parcel".

All requests to designate water credits to a particular portion of a site are deed restricted. In addition to verifying that the ownership of the properties is identical, that the properties are contiguous and have an identical present use (residential or commercial designation), staff requires the property owner to record deed restrictions on the originating site and the receiving site. In addition to deed restrictions identifying the allowed uses on both sites and the length the water credit is available, the District has required all requests for reassignment to agree to allow public access to water records indefinitely. This condition is in keeping with the Board’s policy requiring disclosure on all water credit transfers.

Water credits that are the subject of a request for reassignment must be documented prior to processing a request for reassignment. For instance, a house must be demolished or a bathroom permanently removed prior to any action to reassign the credits. Throughout the process, staff is continuously verifying the unity of ownership, and inspects the property prior to and following any action to permanently reduce water use.

Recent Examples Of Reassignment Requests

1. A single-family dwelling straddles two lots/parcels. The single-family dwelling is demolished and portions of the credit are distributed to each lot.

2. Two lots/parcels each have single-family dwellings that are under identical ownership. Owner removes water fixtures from the first house and installs ultra low-flow appliances in both houses to add water fixtures to the second house.

3. Two lots/parcels each with a single-family dwelling under identical ownership. One of the parcels is subdivided into two new parcels (LOTS 1 & 2). The other parcel remains the same (LOT 3). The existing single-family dwelling is located on one of the newly created parcels (LOT 1) and a garage with water fixtures is located on the other newly created parcel (LOT 2). Owner would like to remove water fixtures from both existing single-family dwellings (on LOTS 1 & 3), install ultra low-flow appliances in both houses, and reassign the water credits to LOT 2 to construct a new home.

4. Three contiguous lots/parcels under the same ownership. Single-family dwellings occupy two lots/parcels (LOTS 1 & 2). The third parcel is a landscaped garden (LOT 3). Owner would like to remove water fixtures and install ultra low-flow appliances in both existing houses (LOTS 1 & 2) to build a new single-family dwelling on the garden parcel (LOT 3).

5. Owners assert existing exterior use on a vacant lot/parcel to avoid being charged for landscaping use. Staff is finding it increasingly difficult to document pre-1985 water use on a site (e.g. the District’s current permitting requirements were adopted in 1985 requiring any increase in the number of water fixtures on a residential property to receive a permit). It is easy to install incidental water fixtures without a permit (i.e. a hosebibb and/or minimal landscaping with outdoor irrigation). Staff’s determination that there has been historic irrigation and landscaping on a vacant lot allows the property owner to build without requiring water for the exterior uses. Making the determination is problematic.

The following recommendation was made to the former Water Demand Committee: The Water Demand Committee should provide direction to staff on processing requests for credit reassignment to adjacent properties that meet the District’s definition of a site. Staff offers the following options for consideration:

1. Uncomplicated requests to reassign credit, such as demonstrated in example #1, should be processed when a specific written request from the property owner is received and the property owner agrees to deed restrictions on both properties.

2. Require deed restrictions and assign an water budget for each parcel involved in a reassignment of credit to ensure that post-reassignment water use does not exceed historic pre-reassignment water use. Should this option be selected, direction would be required on establishing the pre-reassignment water use and direction would be required on establishing an enforcement mechanism.

3. Direct staff to modify the District’s definitions of “site” and “parcel” by deleting references to multiple parcels. This action can be taken by amending the definition as one component of an upcoming ordinance.

4. Requests for reassignment that involve a new connection or construction of a new residence on a formerly vacant lot or parcel should be referred to the Water Demand Committee for review.

5. Requests for reassignment that involve a new connection or construction of a new residence should be subject to environmental review by the District.

6. Require proof of historic landscaping on a vacant lot by requiring the applicant to provide copies of water bills demonstrating continuous water use on the vacant lot from the mid-1980’s to present. This assumes that a water meter separate from the existing residential service serves the vacant lot.

7. Other.

RECOMMENDATION: The Water Demand Committee should review the issue of water credit reassignments and provide direction to staff on processing the various types of requests. As the procedure is not a formal District process, staff recommends that an ordinance be developed to respond to the recommendation of the committee. The committee may direct staff to seek further direction from the Board before developing an ordinance to respond to this issue, or a draft ordinance could be developed for committee review before taking the matter to the full Board.