WATER DEMAND COMMITTEE
ITEM:		ACTION ITEMS
2.	DISCUSS AND PROVIDE FEEDBACK ON AMENDMENTS TO DISTRICT RULES 25, 25.5, 28 and 30 RELATED TO POLICIES AND PROCEDURES IN THE WATER DEMAND DIVISION
Meeting Date:			September 22, 2005
From:			David A. Berger,
			General Manager
Prepared by:			Stephanie Pintar

SUMMARY: Attached as Exhibit 2-A are proposed amendments to Rule 25-Cancellation of Permits, Rule 25.5-Water Use Credits, Rule 28- Transfer, and Rule 30-Determination of Water Allocations. This is the second “group” of water permit related rules that staff is proposing changes to. The changes reflect current administrative practices and policies. The purpose of the revisions is to clarify the rules to facilitate completion of the Water Demand Division’s Policies and Procedures Manual.

DISCUSSION: Each rule should be discussed separately. Key modifications are outlined below. Proposed modifications to the rules shown at Exhibit 2-A are shown in bold italics (new language) and in strikeout (proposed deletions). Copies of the current versions of the pertinent rules are attached as Exhibit 2-B. District Counsel has reviewed and approved the proposed changes.

Rule 25- Cancellation of Permits

A two-year water permit expiration date is proposed for Rule 25 if a building permit has not been issued. Current practice allows the water permit to remain valid as long as the building permit is valid. This practice is also codified in the proposed amendments to Rule 25. The current rule allows a jurisdiction to specify the term of the water permit. However, as no jurisdiction has specified an expiration date other than those followed by District staff, the proposed amendments will have minimal impact on permit applicants. The proposed two year term brings all permits into the same time-line. The current rule has a one year term for most water permits and a two year term for permits using a Water Use Credit. The proposed changes will assist staff in record keeping and enforcement.

Rule 25.5- Water Use Credits

1. Extensive changes are proposed to Rule 25.5. The first change is a formatting modification: The “process” of calculating and issuing a Water Use Credit has been broken down into specific steps. Those steps are then simplified, following the existing practices. Current restrictions on the calculation of water credits remain: No credit is available for retrofits resulting from District-mandated programs. Added to this is a restriction on credit for landscape removal, as discussed by the Water Demand Committee on June 14, 2005. The former reference to the “15% conservation based on the criteria used for the Water Allocation EIR” has been removed, as this reference was ambiguous. The Water Allocation Program EIR does not have clear criteria for determining what should be considered in calculating any reduction. Staff has grappled with this concept since the adoption of Ordinance No. 60 which established the current Water Use Credit process in 1991. Instead, staff has added the 15 percent conservation requirement to Rule 28- Transfer. Finally, an explanation of a “current” credit is provided in both subsections 1 and 2.

2. Staff is proposing that the two existing application processes be combined into one process, making documentation of water credits easy to explain and understand. The current two methods for calculating water credits have not been consistently followed over the years. The historic practice has been to grant credits for past abandonment when an applicant can produce documentation from the jurisdiction (i.e. a demolition permit or other city inspection). This was recently determined to be an incorrect application of the rule, and staff has stopped the former practice. However, there is a valid argument that there has been no notification of the need to establish a water credit before the permanent removal of water fixtures or uses, and indeed, most applications are submitted during the removal process and are processed after completion. Therefore, staff has proposed combining the existing two procedures into one. The burden of proof to establish both the date of abandonment and the former capacity remain, and specific examples of evidence are added. The former requirement to apply for a credit within 18 months of abandonment is deleted, and the credit tracks from the date the abandonment occurred.

3. Specific conditions are added to water permits that propose to use a Water Use Credit, including a new condition that the former use must have been lawful in terms of having had a water permit, having not required a water permit, or having been grandfathered under the current rules (e.g. having existed as of March 1, 1985).

4. Section C-2 includes specific examples of evidence that can be submitted to determine the preexistence of landscaping on a vacant residential lot.

5. Section C-3 adds Table 1: Ultra-Low Consumption Appliance Credit, and lists the various appliances and their corresponding credit.

6. Section C-4 adds the requirement for obtaining a Water Use Credit for permanent disconnection from a water distribution system. That credit is available for a maximum of 120 months, at which time, the potential to reconnect to the distribution system expires.

7. Section D is added to indicate that a temporary abandonment of a use of a formerly lawful use that occurred on or after March 1, 1985 has the potential to be reoccupied. Temporary abandonment includes commercial changes in use, disconnection of water fixtures without having permanently removed the fixtures, etc.

Rule 28 - Transfer

1. Section A: The title is changed from “Transfer Limitation” to “Transfer of Permit Ownership” to reflect the action taken in this subsection of Rule 28.

2. Section A-1 clarifies the “site” specificity of a water permit.

3. Subsection A-2 is deleted. It’s original intent and applicability is unknown.

4. Section B adds the reference to the ability to transfer open space water credits as allowed by Rule 24-B-2 and references to “commercial” and “industrial” are changed to the blanket term “non-residential.”

5. Section B-9 adds the 15 percent conservation savings requirement.

6. Section B-11 adds the requirement for disclosure of the amount paid for the transfer on the District’s form titled, “Declaration Regarding Consideration Given for Transferred Water Use Credit.”

7. Finally, Section B-17 adds the indemnification condition to approval of a transfer.

Rule 30 – Determination of Water Allocations

Rule 30 has been amended to reflect the current allocation and entitlement situation. The paragraph on granting water credits to a jurisdiction has been deleted, as the Board has not adopted guidelines to guide the implementation of the credit process provided by this Rule: Staff recommends removing this provision from the rules until such time as a clear process is agreed upon.

RECOMMENDATION: The Water Demand Committee should discuss the proposed rule changes and provide feedback to staff.

BACKGROUND: The proposed ordinance is the result of staff having identified a number of permitting practices and policies that require clarification before the completion of the Policies and Procedures Manual. Before the manual can be completed, staff is requesting a number of policies, procedures, and practices be incorporated into the rules and regulations to allow consistency in application. Staff also plans to get input from the TAC on draft text changes.

EXHIBITS

2-A Proposed changes to Rules 25, 25.5, 28 and 30.

2-B Existing Rules 25, 25.5, 28 and 30.

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