WATER DEMAND COMMITTEE
2.	DISCUSS CONCEPT ORDINANCE NO. 137, AMENDING REGULATION XV, EXPANDED WATER CONSERVATION AND STANDBY RATIONING PLAN
Meeting Date:		September 29, 2008		Budgeted:	N/A
From:		Darby Fuerst,		Program/	N/A
		Interim General Manager		Line Item No.:
Prepared By:		Stephanie Pintar		Cost Estimate:	N/A
General Counsel Approval:			N/A
CEQA Compliance:

SUMMARY: As part of the Settlement Agreement of August 11, 2008 between MPWMD and California American Water (CAW) (Exhibit 2-A), MPWMD agreed to amend Regulation XV, the Expanded Water Conservation and Standby Rationing Plan, to address regulatory rationing and suspension of water banking, as well as to ensure consistency in noticing requirements and compliance triggers. The District also agreed to amend its definition of the Monterey Peninsula Water Resource System to include the Laguna Seca Subarea, in which the Ryan Ranch, Bishop and Hidden Hills subsystems of CAW operate. This latter action was taken at the September 22, 2008 Board meeting with the adoption of Ordinance No. 135.

The remaining agreed-upon actions will be addressed in Ordinance No. 137. A concept of Ordinance No. 137 is discussed below. Further development of the ordinance is being delayed pending input from the Water Demand Committee and completion of a revised version of Regulation XV that reflects the Board’s recent action in adopting Ordinances 134 and 135.

DISCUSSION: The following is a rule-by-rule overview of the concepts proposed for Ordinance No. 137. These concepts respond to the Settlement Agreement between CAW and MPWMD, dated August 11, 2008. Other proposed additions to the regulation are to clarify or strengthen portions of the regulation.

Rule 11 – Definitions

Proposed language changes are shown in strikethrough (deletions) and bold italics (additions).

1. Discuss deletion of definition of Satellite Systems. Should the definition be deleted and definitions added for Bishop and Ryan Ranch?

2. LARGE RESIDENTIAL WATER USER – “Large Residential Water User” shall mean any Residential User consuming an average of 32 units or more each month (23,936 gallons) or at least 384 units (287,232 gallons) in the in a Water Yyear prior to establishment of a Landscape Water Budget.

3. LONG TERM REGULATORY RATIONING – “Long Term Regulatory Rationing” shall mean water rationing resulting from mandatory long-term regulatory reductions in water supply that result in a California American Water system-wide production limit that is at least 15 percent less than 15,134 acre-feet.

4. MAIN CALIFORNIA AMERICAN WATER SYSTEM – “Main California American Water System” shall mean the California American Water’s Water Distribution System that derives its Source of Supply from the Carmel River System and the Seaside Coastal Groundwater Basin.

5. MINIMUM RESIDENTIAL PER CAPITA WATER RATION -- “Minimum Residential Per Capita Water Ration” shall mean a minimum Water Ration of 35 gallons per person per day (gppd).

6. MOBILE WATER DISTRIBUTION SYSTEM - “Mobile Water Distribution System” means any mobile water supply that originates at a location apart from the Site of use and that is delivered via a truck or other container. This definition process, includesing, but is not limited to, trucked water, used for distribution of water from a Source of Supply to a User for utilization upon the User’s property. This definition shall not apply to deliveries of water by commercial companies in volumes less than or equal to 55 gallons per container.

7. SATELLITE SYSTEMS[1] -- “Satellite Systems” shall mean California American Water's smaller distribution systems along State Route 68 between Monterey and Salinas that derive their Source of Supply from the Laguna Seca Subarea of the Seaside Basin, excluding Hidden Hills System. These Satellite Systems include the Ryan Ranch and Bishop Units.

Rule 160 – General Provisions

No changes proposed

Rule 161 – Stage 1 Water Conservation

Proposed language changes are shown in strikethrough (deletions) and bold italics (additions).

1. California American Water, in coordination with the District, shall conduct Landscape Water Audits and establish Landscape Water Budgets for all Water Users subject to Rule 172. Annually, at the beginning of the Water Year, California American Water shall review its records to verify that all Water Users required by Rule 172 to have a Landscape Water Budget have met the requirement. Property owners/account holders that have not met this requirement shall be notified of this requirement within 30 days. Failure to complete a Landscape Water Audit and Landscape Water Budget within 60 days of notification of such a requirement shall constitute a violation of these Rules and Regulations.

Rule 162 – Stage 2 Water Conservation

1. Update Table 1 and Table 2 to correct a rounding error in Ordinance No. 135.

2. Consider implementing a percentage reduction in the water budget for Large Residential Water Users to achieve a conservation savings[2]. Current Landscape Budgets provide for a reasonable amount of water for the existing landscaping using the existing irrigation system. A small percentage reduction would require implementation of some conservation measures or reduction in interior use.

Rule 163 – Stage 3 Water Conservation

No changes proposed.

Rule 164 – Stage 4 Water Rationing

1. Add a new response for exceeding regulatory limits. Staff will explain CAW’s proposal and the committee can discuss possible options and alternatives.

2. Amend Stage for to provide immediate and measurable reductions in use. This response would occur if there are no new (i.e. unanticipated) regulatory supply reductions that would cause a need to move to actual rationing. Stage 4 for CAW customers would be implemented when water use in the MPWRS is exceeding the Table 1 and 2 limits. One concept is that advancing levels of CAW Stage 4 (i.e. reduce certain users first, then add others if the first round is not effective) could be implemented one after the other immediately if savings aren't achieved.  The first act would be to contact a predetermined list of outdoor water users (e.g. public properties, HOAs, everyone?) and request suspension of irrigation until the system is in compliance. If that does not work, additional measures could be implemented. The measures contemplated at this time would only be considered as a short-term response (i.e. several months at the most).

Rule 165 – Stage 5 Water Rationing

The significant change to Stage 5 is adding a regulatory rationing response in the event of permanent significant regulatory supply reductions. For example: Reductions in the permitted production levels by 20-34% would result in Stage 5; reductions of 35-49% would result in Stage 6; and reductions of 50% or more would result in Stage 7. Percentages may change before first reading, and a table showing triggers for higher stages of rationing would be added.

Proposed language changes are shown in strikethrough (deletions) and bold italics (additions).

1. Stage 5 Water Rationing is defined as the fifth stage in the District’s Expanded Water Conservation and Standby Rationing Plan that responds to a drought situation or other threatened or existing emergency water supply shortage with a 20 percent reduction goal from system production limits. Stage 5 Water Rationing shall be implemented to respond to regulatory production reductions of between 20 and 34 percent. Reductions are achieved by water use cutbacks by User Category and by per-capita Water Rations and a moratorium on Water Permits that Intensify Water Use.

2. The California American Water annual production limit shall be reduced by 20 percent during Stage 5 Water Rationing. The resulting production limit shall be further reduced by the average Unaccounted For Water Use percentage of the California American Water Water Distribution System for the 12 months preceding Water Rationing, and by a water rationing contingency determined by the Board. Seven (7) percent of the remainder shall be the maximum California American Water Unaccounted For Water Use ration. The remaining water shall be the California American Water annual production limit for all User Categories.

3. Available production for other Water Distribution Systems subject to Stage 5 Water Rationing shall be determined using the same methodology as for California American Water. Systems with less than ten (10) connections shall not without includeing a deduction for Unaccounted For Water Uses. The non-California American Water annual production limit for the Monterey Peninsula Water Resource System shall be used as the maximum production limit.

4. ESTABLISHING RATIONS

Rations for each User Category shall be determined by the General Manager by dividing the reduced available production by the percentage of use. The percentage of use for each User Category shall be determined by the most recent unrationed Water Year (October 1 through September 30) data provided by California American Water for Water Users of California American Water that derive water from the MPWRS, and by data provided by the District from its annual Well reporting program for non-California American Water Distribution Systems. The Minimum Residential Per Capita Water Ration shall have priority over all other Water Rations.

Rule 166– Stage 6 Water Rationing

Proposed language changes are shown in strikethrough (deletions) and bold italics (additions).

1. Stage 6 Water Rationing is defined as the sixth stage in the District’s Expanded Water Conservation and Standby Rationing Plan that responds to a drought situation or other threatened or existing emergency water supply shortage with a 35 percent reduction goal from system production limits. Stage 6 Water Rationing also responds to regulatory supply reductions by implementing a 35-49 percent reduction goal. Reductions are achieved by water use cutbacks by User Category and by per-capita Water Rations and a moratorium on Water Permits that utilize Water Credits.

2. There may be other edits similar to those made in Stage 5.

Rule 167 – Stage 7 Water Rationing

Proposed language changes are shown in strikethrough (deletions) and bold italics (additions).

1. ESTABLISHING RATIONS

Rations for each User Category shall be determined by the General Manager by using the Minimum Residential Per Capita Water Ration and by dividing the remaining reduced available production by the percentage of use among the remaining User Categories and by taking into consideration Residential water needs to ensure health, safety and welfare. The percentage of use for each User Category shall be determined by the most recent unrationed Water Year (October 1 through September 30) data provided by California American Water for Water Users of the California American Water Distribution System that derive water from the MPWRS, and by data provided by the District from its annual Well reporting program for non-California American Water Distribution Systems.

2. All Water Users shall be rationed by User Category as outlined in Rule 165 (Stage 5 Water Rationing). To achieve desired reductions in production and to ensure health, safety or welfare, the Board may further reduce the amount of water available to one or more categories of use.

3. The Board shall reconsider adopting restrictions on Non-Residential outdoor water use that may include any or all of the following not adopted during Stage 6 Water Rationing: Limit or prohibit 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 Recycled Water, when available, shall not be restricted by this requirement.

4. There may be other edits similar to those made in Stage 5 and 6.

Rule 168 – Water Banks

Proposed language changes are shown in strikethrough (deletions) and bold italics (additions).

1. RULE 168 - WATER BANKS

Water Banks in all California American Water Water Distribution Systems shall be suspended until (a) California American Water completes the installation of its new computer system and completes the programming needed to calculate Water Banking credits; or (b) MPWMD completes computer programming needed to calculate Water Banking credits; or (c) December 31, 2010, whichever event occurs first.

During the suspension of Water Banking, Water Users shall be excused the first time a Water Ration is exceeded in a Ration Year. Second and subsequent offenses shall be enforced

A. Water Banks shall be available to each Water User during Stages 5 through 7 Water Rationing. A Water Bank shall allow each Water User to accrue the unused portion of a monthly Water Ration for use in the current Rationing Year.

B. Water Banks shall be reset to zero on the first day of each Rationing Year. Ten (10) percent of the remaining Water Bank shall be credited to the following year’s Water Bank for three months to allow the establishment of a new bank.

C. The Water Bank shall be reduced on the first day of the fourth month of the Rationing Year by the amount of banked water carried over. Water Banks may not carry a negative balance.

Rule 169 – Water Rationing Variance

Proposed language changes are shown in strikethrough (deletions) and bold italics (additions).

1. MANDATORY CONDITIONS OF APPROVAL

1. Prior to approving any Residential variance pursuant to Rule 169-B, the Site must be in compliance with all applicable District Rules and Regulations and the following water conservation standards shall be achieved in all structures on the Site. Verification by District inspection may be conducted prior to granting a variance.

a. Toilets shall be designed to flush with a maximum of 1.28 gallons-per-flush (e.g. High Efficiency Toilet);

b. Showerheads, Rain Bars, or Body Spray Nozzles shall not emit more than 2.2 gallons per minute of water in the aggregate;

c. Faucets shall not emit more than 1.5 gallons of water per minute;

d. Drip Irrigation shall be installed for watering all non-turf plantings when an Irrigation System is installed;

2. Prior to approving any Non-Residential variance pursuant to Rule 169-B, the Site must be in compliance with all applicable District Rules and Regulations and the following water conservation standards shall be achieved in all structures on the Site. Verification by District inspection may be conducted prior to granting a variance.

a. Toilets shall be designed to flush with a maximum of 1.28 gallons-per-flush (e.g. High Efficiency Toilet);

b. Showerheads, Rain Bars, or Body Spray Nozzles shall not be installed if the fixture is designed to emit more than 2.2 gallons per minute of water in the aggregate;

c. Faucets shall not emit more than 1.5 gallons of water per minute;

d. Drip irrigation shall be installed for watering all non-turf plantings when an irrigation system is installed;

e. Automatic sensor faucets or self-closing faucets shall be installed where there are more than two washbasins in a room;

f. Site must comply with all BMPs appropriate for the type of use.

Rule 170 – Water Use Survey

No changes proposed

Rule 171 – Water Waste Fees

No changes proposed

Rule 172 – Landscape Water Audits

No changes proposed

Rule 173 – Regulation of Mobile Water Distribution Systems

No changes proposed

Rule 174 – Regulation of Well Owners/Operators and Extractors

No changes proposed

Rule 175 – Water Rationing Enforcement

No changes proposed

RECOMMENDATION: Staff recommends the Water Demand Committee discuss the concept ordinance and provide feedback to staff. The committee may also make a recommendation to the Board.

EXHIBIT

2-A CAW/MPWMD Settlement Agreement

C:\Documents and Settings\arlene\Local Settings\Temporary Internet Files\OLK2D\Ord 137 Amending Reg XV_First Reading Staff Report_29Sep08_Pintar (2).doc

U:\staff\word\committees\waterdemand\2008\20080929\02\item2.doc

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[1] Subject to strikeout in response to #1.

[2] This could also be addressed in Stage 4.