WATER DEMAND COMMITTEE
2.	DEVELOP RECOMMENDATION TO THE BOARD REGARDING FIRST READING OF REVISED ORDINANCE NO. 134 -- AMENDING REGULATION XV, EXPANDED WATER CONSERVATION AND STANDBY RATIONING PLAN
Meeting Date:		July 14, 2008		Budgeted:	N/A
From:		Darby Fuerst,		Program/	N/A
		General Manager		Line Item No.:
Prepared By:		Stephanie Pintar		Cost Estimate:	N/A
General Counsel Approval:			Yes.
CEQA Compliance:			Initial Study and Notice of Intent to Adopt a Negative Declaration filed with the County Recorder April 18, 2008.

SUMMARY: Revised Ordinance No. 134 (Exhibit 2-A) amends the District’s Expanded Water Conservation and Standby Rationing Plan to recognize the Seaside Adjudication Decision and to make clarifications and reduce unnecessary language. The revised Ordinance No. 134 does not make any change to the existing definition of the Monterey Peninsula Water Resource System. The definition will be considered in a separate ordinance, currently scheduled for consideration in August 2008. The following bullet points summarize the significant revisions to the Expanded Water Conservation and Standby Rationing Plan contained in Ordinance No. 134. (Numerous small grammatical and editorial changes are included in the ordinance and can be reviewed by looking for the bold and italicized or stricken text.)

Revised draft Ordinance No. 134:

· Adds recognition of the court decision on March 27, 2006 regarding the Seaside Basin adjudication to the Expanded Water Conservation and Standby Rationing Plan.

· Refines terms and clarifies provisions of the regulation to allow for more effective implementation.

· Includes new definitions for “Carmel River System,” “Certified Landscape Irrigation Auditor,” “Rationing Year,” Seaside Basin Adjudication Decision,” and Water Ration.”

· Amends definitions for Emergency Use Rates and Water Waste.

· Maintains the 7 percent Unaccounted For Water Use standard for California American Water’s Main System.

· Adds separate irrigation water meter requirements for Non-Residential New Structures that have irrigated areas beyond ten feet of the building.

· Requires New Structures to install separate water meters for fire protection systems.

· Adds and clarifies noticing requirements for stage changes and implementation of emergency and rationing rates for California American Water Water Users.

· Clarifies that Stage 2 Water Conservation remains in force during Stage 3 Water Conservation.

· Clarifies that California American Water Water Users shall move to Stage 3 Water Conservation upon declaration of Stage 4 Water Rationing.

· Adds a rationing exemption for demonstrable superior, unimpaired water rights during Stage 4 and above.

· Clarifies that the General Manager may delay Stages 5 and above Water Rationing for up to 90 days to allow adequate preparation.

· Clarifies that Stages 5 and above are rescinded by Resolution of the Board of Directors.

· Amends the implementation of the moratoriums in Stages 5 and 6 Water Rationing from October 1 to one-hundred and twenty days from declaration of Stage 5 and Stage 6. Implementation timing of a moratorium is one of the policy questions still before the Board.

· Recognizes rationing rates currently being considered by the California Public Utilities Commission.

· Recognizes enforcement changes adopted in Ordinance No. 133.

· Clarifies the action to be taken when a Water User fails to complete and submit a survey as required by Rule 170.

· Clarifies the Landscape Water Audit and Landscape Water Budget process.

· Enacts administrative fines for exceeding a water ration.

· Sets a standard of 6 ccf/month for flow restrictor flow rates.

DISCUSSION: Revisions were made to Ordinance No. 134 following the Board’s review of the ordinance on May 18, 2008. Changes to the definition of the Monterey Peninsula Water Resource System have been removed and will be considered as a separate action at a future Board meeting.

The Board will be asked to provide guidance on the following items at the July 21, 2008 meeting:

Moratorium

The proposed language of Rule 165-F reads:

On October 1 One hundred and twenty (120) days following implementation declaration of Stage 5 Water Rationing, the District shall suspend the issuance of cease accepting Water Permits applications associated with Intensification of Use. All pending Water Permits not issued within 120 days of declaration shall be suspended. This provision shall not suspend the issuance of Water Permits that utilize public or private Water Use Credits or where issuance of a Permit is required by prior agreement of the District.

The Water Demand Committee discussed timing of a moratorium at its May 9, 2008 meeting and recommended the moratorium occur immediately upon declaration of Stage 5 to send a clear message to the community. The Technical Advisory Committee (TAC) recommended that a moratorium be implemented four months following declaration of Stage 5.

Similarly language is found in Rule 166-F, Stage 6 Moratorium, which places a moratorium on water permits utilizing water credits.

Outdoor Water Use Restrictions

Outdoor water use restrictions come into play in Stage 7, Rule 167-L. This rule reads:

“The Board shall consider adopting restrictions on Non-Residential outdoor water use that may include any or all of the following: Limit outdoor watering to one day per week, one day every other week, or prohibit outdoor irrigation with water from the affected water resource system(s); prohibit irrigation of non-turf areas with water from the affected water resource system(s); reduce Golf Course irrigation from the affected Water Distribution System(s) to a percentage of the amount required to water tees, greens and landing areas only. The use of Reclaimed Water, when available, shall not be restricted by this requirement.”

This paragraph is not currently shown in Stage 5, the first stage of water rationing. There is also a “restriction on the use of water from the Monterey Peninsula Water Resource System for dust control purposes” shown at Stage 6 (Rule 166-P) that might appropriately be moved to Stage 5.

California Environmental Quality Act (CEQA) Compliance

An Initial Study and Notice of Intent to Adopt a Negative Declaration for the original version of Ordinance No. 134 were filed with the County Recorder on April 18, 2008. The comment period ended on May 7, 2008. No comments were received. Staff believes the previously filed CEQA documents are sufficient to adopt a Negative Declaration with this revised version of the ordinance.

BACKGROUND: Since 1999, MPWMD’s Regulation XV, Expanded Water Conservation and Standby Rationing Program, in combination with an extensive public awareness campaign and comprehensive water rate structure for conservation, emergency and rationing rates, has enabled compliance with State Water Resources Control Board (SWRCB) Order WR 95-10 since WY1998. The plan also provides the foundation for water rationing in the event of drought or other emergency reductions in water supply.

RECOMMENDATION: The Water Demand Committee should review and discuss the revised ordinance before formulating a recommendation to the Board.

EXHIBIT

2-A Revised Draft Ordinance No. 134

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