WATER DEMAND COMMITTEE
ITEM:		ACTION ITEM
3.	DEVELOP RECOMMENDATION TO THE BOARD ON FIRST READING OF ORDINANCE NO. 164 ESTABLISHING WATER PERMIT REQUIREMENTS FOR OUTDOOR SEATING AT RESTAURANTS
Meeting Date:			February 13, 2014	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: To be completed prior to consideration of adoption
Committee Recommendation: N/A
CEQA Compliance: In progress

SUMMARY: Attached as Exhibit 3-A is the second draft of Ordinance No. 164 for Committee review. Following the January 20, 2015, Water Demand Committee meeting, staff was directed to confer with representatives from the Monterey County Hospitality Association and the Coalition of Peninsula Businesses, as well as Save Our Carmel River. Following the January meeting, staff worked with planning staff from the City of Monterey to refine the definitions, met with representatives from the Coalition of Peninsula Businesses and the Monterey County Hospitality Association, and had a lengthy discussion with Pat Bernardi of Save Our Carmel River. The draft ordinance is scheduled for first reading at the February Board meeting.

RECOMMENDATION: The Committee should review and discuss the draft ordinance and make a recommendation to the Board.

DISCUSSION: The draft ordinance changes the District’s administrative practice by requiring Water Permits for exterior seating in excess of half the number of interior seats. To implement the new rules, existing exterior restaurant seating and new exterior restaurant seating that is approved by the Jurisdiction before August 1, 2015 (or another date as recommended by the Committee) will not be subject to the change. Sites that have a restaurant Water Permit on file with MPWMD will be restricted to the permitted number of interior seats, but may receive a Water Permit for existing exterior seating in use as of the effective date of the ordinance. There will be no charge for documenting the existing exterior seating.

Upon adoption of the ordinance, the District will send notification of the pending policy change and the deadline for permitting existing exterior seating to all restaurant water account holders and property owners. Staff will also work with the hospitality industry, the local Chambers of Commerce, and the Jurisdictions to document exterior seat counts.

BACKGROUND: At its December 15, 2014 meeting, the Board discussed the issue of permitting exterior restaurant seating and directed staff to prepare a draft ordinance for consideration. The draft ordinance is to be reviewed by the Water Demand Committee and the Technical Advisory Committee before final consideration by the Board. The following direction was given:

· Allow future exterior seating up to 50 percent of the number of interior seats identified in a Water Permit or otherwise documented at the Site without a Water Permit or Capacity Fee as this limited number of exterior seats do not affect the Water Use Capacity of the business;

· No Water Credit will be associated with removal of exterior seats (unless permitted using a water Allocation or Water Credit);

· The ordinance should apply prospectively to projects as of a specific date;

· Staff should work with the Technical Advisory Committee (TAC) to develop definitions of “outdoor” and “dining enclosure” to clarify the difference between indoor and outdoor seating;

· Staff should investigate methods to document seat counts at existing establishments; and

· The conceptual ordinance should be submitted to the Water Demand Committee for additional consideration before it is brought back to the Board for first reading.

EXHIBIT

3-A Ordinance No. 164 (Second Draft)

U:\staff\Board_Committees\WaterDemand\2015\20150212\03\item3.docx