WATER DEMAND COMMITTEE
ITEM:		ACTION ITEMS
2.	CONCEPTUAL REVIEW OF PROPOSED ORDINANCE RELATING TO ISSUANCE OF WATER CREDITS INVOLVING COMMERCIAL TO RESIDENTIAL CHANGE OF USE
Meeting Date:			March 26, 2010	Budgeted:	TBD
From:			Darby Fuerst,	Program/
			General Manager	Line Item No.:
Prepared By:			Stephanie Pintar	Cost Estimate:	TBD
General Counsel Review: Pending
Committee Recommendation: N/A
CEQA Compliance: TBD when Project is defined

SUMMARY: Attached for committee discussion (Exhibit 2-A) is a conceptual draft ordinance that modifies the Water Use Credit and On-Site Water Credit to consider consumption records when determining credits from Non-Residential uses converting to Residential uses. Specifically, the proposed ordinance modifies Rule 25.5, Water Use Credits and On-Site Water Credits to require the consideration of average historical water use when computing the water credit for large Non-Residential uses. Once converted to a Residential use, any remaining credit becomes a Water Use Credit that expires and ceases to exist after a specified period of time.

Staff has also proposed modifications to the calculation of Non-Residential Water Use Credits (also Rule 25.5) after determining that the existing protocol does not adequately address the process that needs to be followed to best account for permanent water savings.

DISCUSSION: Staff has identified several discussion points related to this conceptual ordinance:

1. California American Water currently has water records in electronic format back to 2002. For this reason, eight years was chosen as the number of years of history to review. Should this period be longer or shorter? As time moves forward, a longer record will be available; however, the full record may not be available to uses that ceased active use prior to 2010.

2. From what point in time should the documented average consumption history be considered?

1. Prior to the date of Permanent Abandonment of Capacity

2. At the time the environmental review is conducted (this may occur more than once)

3. At the time the complete Water Permit application is received

3. The concept ordinance averages the historical consumption average with the projected Water Use Capacity determined by applying the District’s Non-Residential Water Use Factors (Rule 24, Table 2).

1. Does this adequately reflect the former use given that some factors are combined factors to allow flexibility in tenant mixes? For example, Group I Non-Residential water uses include offices and retail uses, with offices often having higher actual water needs.

2. Should only one or the other be used? If actual consumption is used, it may be significantly higher or lower than the factored Water Use Capacity. Similarly, factored Water Use Capacity may not reflect reality.

4. Should limitations on outdoor water use be included in a change from Non-Residential to Residential water use or even from an existing neglected use to a revitalized use? Currently, District regulations on new landscaping apply only to formerly vacant lots. Sites that may have had neglected landscaping or minimal landscaping are not required to comply with outdoor conservation requirements recently adopted by the Board for new construction.

5. Should a water credit “balance” resulting from a conversion from Non-Residential to Residential use be converted to a Water Use Credit that has an expiration date?

RECOMMENDATION: The Water Demand Committee should review the conceptual draft ordinance and provide direction to staff. After direction is received regarding the discussion points, staff can prepare an Initial Study pursuant to the California Environmental Quality Act (CEQA). The Initial Study will need to be circulated for comment prior to first reading of the ordinance by the Board.

IMPACT ON STAFF/RESOURCES: Adoption of an ordinance that requires consumption records from the water distribution system operator will increase staff load, although not significantly. However, there is currently no fee associated with reviewing projects undergoing environmental review by outside agencies, which will result in added staff time without reimbursement from the project proponent. Fees are collected for processing water credits when credits are a component of a Water Permit application or when a Water Use Credit is documented (i.e., the credit becomes subject to a time limitation). On-Site Water Credits are not subject to processing fees.

EXHIBITS

2-A Conceptual Draft Ordinance No. XXX

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