ITEM:		PUBLIC HEARING
22.	CONSIDER SECOND READING AND ADOPTION OF ORDINANCE NO. 182 – AMENDING RULES 11, 20, 21, 22, 23, 23.8, 24, 25, 25.5, 33, 141, 142, 161, AND 180
Meeting Date:			May 20, 2019	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Locke	Cost Estimate:	N/A
General Counsel Review: Yes
Committee Recommendation: The Water Demand Committee reviewed the concept ordinance November 6, 2018 and provided direction to staff.
CEQA Compliance: This Ordinance is exempt from review under the California Environmental Quality Act ("CEQA") (California Public Resources Code Section 21000 et seq.). Pursuant to State CEQA Guidelines section 15307 (14 Cal. Code Regs., § 15307), this Ordinance is covered by the CEQA Categorical Exemption for actions taken to assure the maintenance, restoration, enhancement, or protection of a natural resource where the regulatory process involves procedures for protection of the environment.

SUMMARY: Ordinance No. 182, “The 2019-1 Rules and Regulations Amendment Ordinance” amends, clarifies and refines certain procedures necessary to process, issue, and enforce requirements related to Water Permits and Water Distribution System Permits, Water Use Permits, water efficiency requirements, Rebates, and ex parte communications. The draft ordinance is shown as (Exhibit 22-A).

DISCUSSION: The following points summarize the sections of Ordinance No. 182:

1. Rule 11 (Definitions) is amended to clarify the definition of “User.” “Municipal Unit” and “Municipal Unit Allotments” definitions are deleted as these definitions are obsolete. New definitions are proposed for “District Reserve Allocation,” “Intertie,” and “Manufactured Home” and “Mobile Home.” The latter two definitions relate to clarifications pertaining to permits and conservation requirements.

2. This ordinance eliminates unnecessary language in Rule 20-B (Permits to Connect to or Modify a Connection to a Water Distribution System) and adds Manufactured Homes to the list of structures subject to the Water Permit requirements.

3. Rule 21 (Applications) is amended to clarify the language in Rule 21-B-1.

4. Rule 22 (Action on Application for Permit to Create/Establish a Water Distribution System or Request a Confirmation of Exemption) has been clarified with respect to Interties and their connection to the Main California American Water System.

5. Rule 23 (Action on Application for a Water Permit to Connect to or Modify a Connection to an Existing Water Distribution System) has been clarified to indicate that condominiums and Common Interest Developments are included under the Multi-Family Dwelling sub-metering provision consistent with the definition in Rule 11. Use of an Entitlement has been added. A recommended location for a sub-meter is added to facilitate future Connections to the California American Company WDS as required by Rule 23-A-1-i-(4), as well as the required location for the split of the fire and domestic water lines in the meter box.

6. The D.B.O. Development No. 30 Water Entitlement (Rule 23.8) was revised to clarify that the Benefited Properties are those that overlie the Seaside Groundwater Basin and are supplied by California American Water’s WDS from the Seaside Groundwater Basin. This right was authorized by the Monterey County Superior Court, the Seaside Groundwater Basin Watermaster, and Sixth District Court of Appeal.

7. Rule 24 has several amendments. Rule 24-A-3-k has been revised to clarify deed restrictions for second Bathroom additions. Residential and Non-Residential calculations of Water Use Capacity (Rule 24-A and 24-B) have been modified to resolve conflicts with Rule 142.1 (Water Efficient Landscape Requirements). Outdoor water use language proposed for deletion pre-dates the adoption of Rule 142.1. Permanent reductions in use caused by the installation of proven water saving technology (e.g. ozone, Recycled Water, etc.) in Non-Residential uses will result in a reduction in the Estimated Annual Water Use Capacity of a project. These projects are classified as Group IV uses in Rule 24, Table 2, consistent with how Residential technology is addressed. Table 2 is also amended to clarify that the factor for dormitories is based on the number of beds, not the number of rooms (new for second reading).

8. Rule 25 (Cancellation, Expiration, Suspension, Abandonment and Revocation of Water Permits) was revised to separate Water Distribution System Permit actions from Water Permit actions, and to address the expiration of hydrant meter permits consistent with current practices.

9. Rule 25.5 (Water Use Credits and On Site Water Credits) would change the title to reflect current definitions. Amendments would eliminate the extension period for a Water Use Credit. Water Use Credits are extended for the full ten-year period, making the current codified process pointless and unnecessary. Use of (and expiration of) Water Use Credits are tracked in the Water Permit database, and verification occurs when a final inspection is conducted at the completion of a project. If the project is non-compliant at the final inspection, removal of added fixtures or amendment of the Water Permit is required.

10. This ordinance adds a description of the District Reserve Allocation to Rule 33.

11. Minor clarifying language is added to Rule 141 (Rebates).

12. Rule 142 is amended to clarify that all Sites supplied with water from a Water Distribution System regulated by the District must comply with the District’s water efficiency standards, including Manufactured Homes.

13. Property managers and owners of rental property are required to provide their tenants with information about conservation requirements and Non-Essential Water Use. This requirement was unintentionally left out of Rule 161, General Provisions of the 2016 Water Conservation and Rationing Plan.

14. The language in Rule 180, Disclosure of Agents (ex parte communications), was revised for clarity.

RECOMMENDATION: Staff recommends the Board receive public comment and adopt Ordinance No. 182 on second reading. The ordinance will be effective 30 days after adoption.

EXHIBIT

22-A Draft Ordinance No. 182

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