MPWMD BOARD MEETING--JAN 29, 2004--EXHIBIT 13-A--AN ORDINANCE OF THE BOARD OF DIRECTORS ESTABLISHING AN EXPANDED WATER CONSERVATION ANDSTANDBY WATER RATIONING PLAN

EXHIBIT 13-A

FINAL

ORDINANCE NO. 92

AN ORDINANCE OF THE

BOARD OF DIRECTORS OF THE

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

ESTABLISHING AN EXPANDED WATER CONSERVATION AND

STANDBY WATER RATIONING PLAN

FINDINGS

1. The Water Management District is charged under the Monterey Peninsula Water Management District Law with the integrated management of the ground and surface water resources in the Monterey Peninsula area.

2. The Water Management District has general and specific power to cause and implement water conservation activities as set forth in Sections 325 and 328 of the Monterey Peninsula Water Management District Law.

3. This Ordinance is enacted to respond to present and threatened water emergencies, as provided by Section 332 of the District Law. Water emergencies addressed by this ordinance are created by both legal and physical circumstances which constrain the amount of water that is available to serve water users in the Monterey Peninsula area.

4. The District Board declared a water supply emergency in accord with Section 332 of the District Law upon implementation of Supply Option V of the Water Allocation Program Environmental Impact Report in 1990. This water supply emergency remains in effect.

5. The Water Supply Emergency was substantiated in April 1991 upon adoption of Ordinance No. 54, Defining Phase I Water Use Rules. Ordinance No. 54 remains in effect except as amended by this ordinance.

6. State Water Resources Control Board (SWRCB) Order No. WR 95-10, issued in July 1995, ruled that California-American Water Company (Cal-Am) did not have a legal right to take approximately 69 percent of the water historically supplied to Cal-Am users. The SWRCB has set specific goals to reduce Cal-Am=s water diversions from the Carmel River Basin.

7. Under SWRCB Order No. WR 95-10, Cal-Am has been ordered to reduce its historical diversion from the Carmel River Basin by 20 percent in Water Year 1997 and each subsequent water year.

8. This ordinance shall be one part of the Monterey Peninsula Water Management District=s Urban Water Management Plan.

9. This ordinance is exempt from the California Environmental Quality Act (CEQA) under Water Code '10652. This ordinance is also exempt from the requirements of CEQA under the provisions of CEQA Guideline 15269 (c) and 15282 (w).

10. The following District Rules shall be amended or deleted by this ordinance: Rule 11 (Definitions), Rule 92 (Rationing Variance), Rule 104 (Water Rationing), and Rule 106 (Regulation of Mobile Water Distribution Systems During a Water Supply Emergency).

11. The following District Rules shall be added by this ordinance: Regulation XV Expanded Water Conservation and Standby Rationing Plan, Rule 160 (Rationing General Provisions), Rule 161 (Stage 1 Water Conservation), Rule 162 (Stage 2 Water Conservation), Rule 163 (Stage 3 Water Conservation), Rule 164 (Stage 4 Water Rationing), Rule 165 (Stage 5 Water Rationing), Rule 166 (Stage 6 Water Rationing), Rule 167 (Stage 7 Water Rationing), Rule 168 (Water Banks), Rule 169 (Water Rationing Variance), Rule 170 (Water User Survey), Rule 171 (Water Waste Fees), Rule 172 (Landscape Water Budgets), Rule 173 (Regulation of Mobile Water Distribution Systems During a Water Supply Emergency, Rule 174 (Regulation of Well Owners/Operators and Extractors), Rule 175 (Water Rationing Enforcement).

NOW THEREFORE be it ordained as follows:

ORDINANCE

Section 1: Short Title

This ordinance shall be known as the AExpanded Water Conservation and Standby Rationing Plan" of the Monterey Peninsula Water Management District. This ordinance shall add Regulation XV - Expanded Water Conservation and Standby Rationing Plan to the Rules and Regulations.

Section 2: Statement of Purpose

The Monterey Peninsula Water Management District enacts this Expanded Water Conservation and Standby Rationing Plan as legal authority to set standards and procedures pertaining to water use restrictions and water rationing requirements for the Monterey Peninsula during present and future water supply emergencies. This ordinance is intended to maintain Cal-Am=s water production from the Carmel River below the limits set by the SWRCB in its Order No. WR 95-10, to respond to system-wide water storage shortages, and to respond to emergency situations that require immediate water use reductions. This ordinance responds to present and threatened water emergencies created by both legal and physical circumstances that constrain the amount of water available to serve water users in the Monterey Peninsula area. This ordinance establishes seven response levels to the water supply emergency to ensure consumptive use of water does not exceed anticipated water supplies available to the District. Upon the effective date of this ordinance, Stage 1 Water Conservation shall be implemented immediately. This ordinance shall modify the existing Rules and Regulations of the District.

Section 3: General Provisions

A. All water users within the Monterey Peninsula Water Management District shall be subject to the District=s water waste and non-essential water use prohibitions.

B. Prohibitions against water waste and non-essential water use shall be enforced by the District and its designated agents in accordance with Rule 171 (Water Waste Fees).

C. Stage 1 Water Conservation shall be implemented upon the effective date of this regulation.

D. Stage 1 Water Conservation parallels Cal-Am=s Phase IV Mandatory Water Conservation program that was designed to meet the Carmel Valley water production limits set by the SWRCB and approved by the Public Utilities Commission. Stages 1 through 3 Water Conservation are intended to achieve the Carmel Valley water production limits set by the State Board. Stage 4 Water Rationing through Stage 7 Water Rationing are intended to respond to limitations in supply caused by inadequate system inflow and storage.

E. Stage 1 Water Conservation through Stage 3 Water Conservation shall apply to water users of the Cal-Am water distribution system where that system derives its source of supply from the Monterey Peninsula Water Resources System (MPWRS) for as long as Cal-Am is subject to water production goals and limitations enforced by the SWRCB.

F. Stage 4 Water Rationing through Stage 7 Water Rationing may apply to all water distribution system users and water users within the Monterey Peninsula Water Resources System as a response to limited water supply. These stages shall also serve as responses to emergency situations where immediate reductions in water use are necessary to ensure public health, safety or welfare. This regulation authorizes the Board of Directors to, from time to time, determine by Resolution that any water distribution system or set of water users within the Monterey Peninsula Water Management District shall be subject to Stages 4 Water Rationing through Stage 7 Water Rationing as provided in this ordinance.

G. As to water derived from the MPWRS, Cal-Am shall maintain unaccounted for water use in its MPWRS distribution system at or below seven (7) percent. Average losses of more than seven (7) percent during the most recent twelve month period shall be considered water waste. This limitation shall not affect any Cal-Am system east of, and including, the Ryan Ranch subunit.

H. Cal-Am shall amend its Urban Water Management Plan to conform to the policies and procedures described in this ordinance. A copy of the plan and amendment shall be filed with the District within 180 days of the effective date of this ordinance. The plan shall comply with the California Water Code, Division 6, Part 2.6.

I. Cal-Am shall prepare an analysis of the impacts of each of the actions and conditions described in this ordinance, inclusive, on the revenues and expenditures of Cal-Am, and proposed measures to overcome those impacts, such as the development of reserves and rate adjustments. A copy of the analysis shall be provided to the District.

J. Cal-Am shall prepare a per-capita-based tariff rate design and submit this rate design to the California Public Utilities Commission for review and approval. A copy of the plan filed with the California Public Utilities Commission shall be provided to the District. This rate design shall include and be based on the following:

< An accurate survey of water users who are served by the Cal-Am water distribution system where that system derives water from the MPWRS;

< An assumed Cal-Am annual production value that does not exceed the amount of the water production goal set by the SWRCB;

< Unaccounted for water use that does not exceed an average of seven (7) percent of total Cal-Am production;

< A fair weighting to differentiate residential from non-residential water uses based upon historic water use by that sector;

< Factors to fairly differentiate small and large residential lots;

< A methodology which provides an equal amount of water for each permanent resident;

< A methodology which provides a fair quantity of water for each residential and non-residential use based upon current consumption factors and Best Management Practices.

< A mechanism to implement excessive use rates or accelerated rate increases during Stage 3 Water Conservation as a mechanism to discourage excessive water use.

< A statement regarding the confidentiality of information gathered pertaining to the number of residents on single-family and multi-family accounts.

K. The provisions of paragraphs A through J, inclusive, of this Section shall be incorporated into the District Rules and Regulations as Rule 160 (Rationing General Provisions).

Section 4: Water Distribution Systems and Water Users Affected

A. Upon the effective date, this regulation shall apply to all water users within the Monterey Peninsula Water Management District. Stages 1 through 3 Water Conservation may thereafter be triggered under the provisions of this regulation for water users of the Cal-Am water distribution system where that water system derives water from the MPWRS.

B. All water distribution systems and water users deriving water from the MPWRS shall be subject to Stage 4 Water Rationing through Stage 7 Water Rationing of Regulation XV when those stages take effect due to water supply limitations caused by drought or emergency. Water distribution systems and water users outside the MPWRS shall be subject to this regulation only upon Resolution by the Board of Directors in response to physical or legal restrictions which effect sources of supply outside the MPWRS.

C. A list of water distribution systems within and without the MPWRS shall be maintained by the District.

Section 5: Definitions

A. Unless the context specifically indicates otherwise, the following words or phrases shall be given the definitions set forth below.

1. Addition - AAddition@ shall mean an expansion of usable square-footage in a building, or in a non-residential use the use of new area which causes an intensification of use as defined in Rule 11 (Definitions).

2. Base Use - ABase Use@ shall mean a reasonable amount of water anticipated to be used by a Cal-Am water user during Stages 1 through 3 Water Conservation. Base Use correlates to the base block rate established by Cal-Am for the individual customer.

3. Best Management Practices (BMP) - ABest Management Practices@ or ABMP@ shall mean industry-specific water conservation practices, retrofits, equipment and facilities recognized by the District and approved by the Board of Directors.

4. Cal-Am Unaccounted For Water Uses - ACal-Am Unaccounted For Water Uses@ shall mean the difference between what is recorded at the production meters and the consumption recorded through system meters or reported as estimates of reasonable uses. Unaccounted For Water Uses shall include system leakage.

Unaccounted for water is made up of the following: Unknown leakage, stolen water, unreported fire department usage, unreported street sweeping (and other municipal uses), unrecorded construction water, customer meters registering slow.

5. CAWD/PBCSD Wastewater Reclamation Project - ACAWD/PBCSD Wastewater Reclamation Project@ shall mean the wastewater reclamation project undertaken by the Carmel Area Wastewater District and the Pebble Beach Community Services District that supplies reclaimed water to the golf courses and certain open space areas within Pebble Beach.

6. Commercial Use - ACommercial Use@ shall mean water used in connection with commercial premises devoted primarily to, but not limited to offices, stores, markets, hotels, motels, and restaurants.

7. Dedicated Irrigation Meter - ADedicated Irrigation Meter@ shall mean a water meter exclusively used to measure outdoor water consumption.

8. Drip Irrigation - ADrip Irrigation@ shall mean low pressure, low volume irrigation applied slowly, near or at ground level to minimize runoff and loss to evaporation.

9. Equivalent Consumption Unit - AEquivalent Consumption Unit@ or AECU@ shall mean a base water use multiplication factor assigned to every Cal-Am customer to provide a fair weighting of all customers as compared to the lowest level of water use by any customer. Each customer=s ECU factor shall be assigned by Cal-Am.

10. Evapotranspiration: AEvapotranspiration@ or AET@ shall mean the loss of water from a vegetative surface through the combined processes of plant transpiration and soil evaporation. ET is equivalent to and frequently referred to as consumptive use.

11. Even Numbered Property - AEven Numbered Property@ shall mean all property with an official address ending in an even number. This definition shall also apply to properties located on the North or East side of the street in cities or other areas where no numbered street address is available. Landscaped areas associated with a building will use the number of that building as the address. Only one address shall be used for a landscaped area associated with one building or activity, even if the landscaped area is broken into many separate subareas.

12. Excessive Use Rates - AExcessive Use Rates@ shall mean a higher block water rate used by Cal-Am during Stage 3 Water Conservation as a mechanism to discourage excessive water use.

13. Flow Restrictor - AFlow Restrictor@ shall mean a device placed into the water distribution system by the distribution system operator, or put into the output of a private well, that restricts the volume of flow to the user.

14. Golf Course - AGolf Course@ shall mean an area of land designed for public or private recreational golf activities and which is zoned and approved by the local planning jurisdiction for that use.

15. Hand Watering - AHand Watering@ shall mean the application of water for irrigation purposes through a hand‑held hose and through a positive-action shut‑off nozzle.

16. Harvested Water - AHarvested Water@ shall mean precipitation or irrigation runoff collected, stored and available for reuse for irrigation purposes.

17. Industrial Use - AIndustrial Use@ shall mean water used at an industrial site where the water is used primarily in manufacturing or processing activities.

18. Landscape Audit - ALandscape Audit@ shall mean an action taken by a District-approved landscape irrigation auditor to determine reasonable outdoor water use.

19. Landscape Irrigation Auditor - ALandscape Irrigation Auditor@ shall mean a person approved by the Monterey Peninsula Water Management District to perform landscape water audits and assign water budgets.

20. Landscape Water Budget - ALandscape Water Budget@ shall mean a maximum annual water allowance in gallons per year, determined upon completion of a landscape water audit by a District-approved Landscape Irrigation Auditor. The Landscape Water Budget shall take into consideration the types of plants, soil condition, evapotranspiration rates and irrigation system.

21. Large Livestock - ALarge Livestock@ shall mean animals such as cattle, horses, llamas, pack animals and other similar animals.

22. Large Residential Water User - ALarge 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 year prior to establishment of a landscape water budget.

23. Mixed Use Water User - AMixed Use Water User@ shall mean users of water for domestic or other uses from any water distribution system or private well where one water meter or connection or well provides both residential and nonresidential use.

24. Mulch - AMulch@ shall mean any material such as leaves, bark, straw or other materials left loose and applied to the soil to reduce evaporation. Organic mulches include pine bark, compost, and wood chips. Inorganic mulches include rock, cobble, gravel, and synthetic water-holding soil additives.

25. Multi-Family Dwelling - AMulti-Family Dwelling@ shall mean a building designed for occupancy by two or more families living independently of each other.

26. Multi-Family Residential Site - AMulti-Family Residential Site@ shall mean a property with one or more multi-family dwellings, or a property containing more than one single-family dwelling.

27. Non-Revenue Metered and Unmetered Use - ANon-Revenue Metered and Unmetered Use@ shall include water used for water distribution system-owned and leased facilities, flushing when necessary for health or safety purposes, use for production including filter back-washing at two filter plants, rights-of-way, river bank irrigation, and Cal-Am well property irrigation. This definition shall also apply to estimated beneficial water use by fire departments and other municipal uses not prohibited under the definition of Water Waste or Non-Essential Water Use.

28. Odd Numbered Property - AOdd Numbered Property@ shall mean a property with an official address ending in an odd number. This definition shall also apply to properties located on the South or West side of the street in cities or other areas where no numbered street address is available. Landscaped areas associated with a building will use the number of that building as the address. Only one address shall be used for a landscaped area associated with one building or activity, even if the landscaped area is broken into many separate subareas.

29. AOther@ Use - A>Other= Use@ shall mean water used for road sprinkling and temporary hydrant use as reported by Cal-Am as a customer classification.

30. Permanent Resident - APermanent Resident@ shall mean a person who resides continuously in a dwelling unit for more than 30 days or a resident that can submit such other evidence to clearly and convincingly demonstrate permanent residency. Part-time residents (those individuals who periodically reside in a dwelling unit on a regular basis) shall be counted as a fractional permanent resident.

31. Positive Action Shut‑Off Nozzle - APositive Action Shut-Off Nozzle@ shall mean a device that completely shuts off the flow of water from a hose when released.

32. Primary Residence - APrimary Residence@ shall mean the main or principal dwelling unit inhabited by one or more persons.

33. Public Authority Use - APublic Authority Use@ shall mean water used by a public entity.

34. Reclaimed Water - AReclaimed Water@ shall mean wastewater effluent that has been treated to the tertiary level, including disinfection. Reclaimed water is a form of recycled water.

35. Recycled Water - ARecycled Water@ shall mean water that originates from a subpotable source of supply such as wastewater treated to the tertiary level or captured rain water.

36. Remodel - ARemodel@ shall mean the rebuilding or rearrangement of an existing area that alters the water use capacity or modifies the water fixtures in a structure.

37. Residential - AResidential@ shall mean water used for household purposes, including water used on the premises for irrigating lawns, gardens and shrubbery, washing vehicles, and other similar and customary purposes pertaining to single and multi-family dwellings.

38. Single-Family Dwelling - ASingle-Family Dwelling@ shall mean a building designed for occupancy by one family.

39. Single-Family Residential Site - ASingle-Family Residential Site@ shall mean a property with one single-family dwelling. A separate guest house or auxiliary unit without a kitchen shall be included in this definition

40. Short Term Residential Housing - AShort Term Residential Housing@ shall mean one or more residential dwelling units on a property that are occupied by visitors, are operated as a business and for which a fee is charged to occupy the premises.

41. Small Water Distribution System - ASmall Water Distribution System@ shall mean a water distribution system with less than 50 connections.

42. Stage 1 Water Conservation - AStage 1 Water Conservation@ shall mean the first stage in the District=s Expanded Water Conservation and Standby Rationing Plan that takes action to maintain Cal-Am water use in the MPWRS below regulatory constraints by increasing conservation activities and preparing for further stages of conservation and rationing.

43. Stage 2 Water Conservation - AStage 2 Water Conservation@ shall mean the second stage in the District=s Expanded Water Conservation and Standby Rationing Plan that takes action to maintain Cal-Am water use in the MPWRS below regulatory constraints by requiring landscape water budgets for large irrigators of over three acres, large residential users and users with dedicated landscape water meters.

44. Stage 3 Water Conservation - AStage 3 Water Conservation@ shall mean the third stage in the District=s Expanded Water Conservation and Standby Rationing Plan that takes action to maintain Cal-Am water use in the MPWRS below regulatory constraints and to respond to potential drought or emergencies by imposing higher water charges for excessive water use.

45. Stage 4 Water Rationing - AStage 4 Water Rationing@ is defined as the fourth stage in the District=s Expanded Water Conservation and Standby Rationing Plan that responds to a drought situation or emergency water supply shortage with a 15 percent reduction goal from system production limits for non-Cal-Am water users. Reductions are achieved by voluntary water use cutbacks in addition to excessive use rates imposed during Stage 3 Water Conservation.

46. Stage 5 Water Rationing - AStage 5 Water Rationing@ shall mean the fifth stage in the District=s Expanded Water Conservation and Standby Rationing Plan that responds to a drought situation with a 20 percent mandatory reduction achieved by requiring water use cutbacks by user category and by per-capita water rations and by enacting a moratorium on water permits that intensify water use.

47. Stage 6 Water Rationing - AStage 6 Water Rationing@ shall mean the sixth stage in the District=s Expanded Water Conservation and Standby Rationing Plan that responds to a severe drought situation with a 35 percent mandatory reduction achieved by requiring water use cutbacks by user category and by per-capita water rations and by enacting a moratorium on water permits that utilize public or private Water Use Credits and by restricting outdoor water use.

48. Stage 7 Water Rationing - AStage 7 Water Rationing@ shall mean the seventh stage in the District=s Expanded Water Conservation and Standby Rationing Plan that responds to a critical drought situation with a 50 percent mandatory reduction achieved by requiring water use cutbacks by user category and by per-capita water rations and by prohibiting all nonessential outdoor water use.

49. Unmetered Water Use - AUnmetered Water Use@ shall mean water use that is not measured through a mechanical device.

50. Unrationed - AUnrationed@ shall mean a time when there are no mandatory reductions in water use that apply to all water users within a distribution system.

51. Urban Water Management Plan - "Urban Water Management Plan" shall mean a plan prepared pursuant to Division 6, Part 2.6, Chapter 3, of the California Water Code.

52. User Category - AUser Category@ shall mean the classification of a water use in one of the following categories: Residential (single-family and multi-family), Commercial and Industrial, Public Authority, Golf Course, Other Use, Non-Revenue Metered Use, and Reclaimed Water Users.

53. Visitor - AVisitor@ shall mean an occasional occupant who resides in a dwelling unit for less than 30 days, but who is not a part-time resident according to the Apermanent resident@ definition.

54. Water Unit - AWater Unit@ shall mean an increment of water equal to 748 gallons.

55. Water Rationing Contingency - AWater Rationing Contingency@ shall mean a percentage of water production not allocated for rations.

56. Water Bank - AWater Bank@ shall mean an account managed by the District or its agent that tracks the difference in the amount of water used and the amount of each user=s water ration during a calendar year.

57. Water Distribution System Operator - AWater Distribution System Operator@ shall mean the person or persons who assume through the District permit process legal responsibility for the proper performance of the requirements of a water distribution system permit holder as defined in the Rules and Regulations and/or in conditions attached to a permit.

58. Water Supply Emergency - AWater Supply Emergency@ shall mean a declaration that a water shortage emergency condition prevails within the area.

59. Water User - AWater User@ shall mean users of water for domestic or other uses from any water distribution system or private well.

60. Xeriscape - AXeriscape@ shall mean the practice of conserving water and energy through creative landscaping using good landscape design, limiting lawn areas, irrigating efficiently, improving soils, using mulches, choosing low water use plants and employing other good landscape maintenance practices.

B. The words and phrases defined above in paragraph A of this Section shall further be set forth as defined terms within Rule 11 (Definitions) of the District's Rules and Regulations.

Section 6: Amendment to Rule 11 (Definitions)

The following modifications (in bold and strikeout) shall be made to Rule 11 (Definitions) of the District Rules and Regulations.

MONTEREY PENINSULA WATER RESOURCE SYSTEM - AMonterey Peninsula Water Resource System@:

(a) shall refer to lands which overlie or are contiguous to (in whole or in part) water in the Carmel River (main stem and tributaries), ground water within the alluvial aquifer, and ground water within the Seaside Coastal Ground water Subbasin, as identified on MPMWD Boundary Map #1, as that may be amended from time to time; or

(b) shall mean the ground water and surface water supplies which serve Cal-Am, other water distribution systems, and private well owners within the District, including the surface water and groundwater resources of the Carmel Valley (both the Carmel River and the Carmel Valley aquifer) and the resources of the Seaside Coastal groundwater subbasin. The Monterey Peninsula Water Resources System shall exclude resources of the Seaside Inland groundwater subbasin, and the Carmel Valley upland formation.

(c) The District shall maintain a current list of Water Distribution Systems within the Monterey Peninsula Water Resource System.

NON-ESSENTIAL WATER USE - ANon-Essential Water Use@ shall mean the indiscriminate or excessive dissipation of water which is unproductive, or does not reasonably sustain life or economic benefits. Non-essential water use includes but is not limited to the following:

1. Serving drinking water to any customer, unless expressly requested, by an restaurant, hotel, café, cafeteria or other public place where food is sold, served or offered for sale.

2. Operation of fountains, ponds, lakes or other ornamental use of potable water without recycling.

3. Unreasonable or excessive use of potable water for dust control or earth compaction without prior written approval of General Manager where non-potable water or other alternatives are available or satisfactory.

4. Use of unmetered fire hydrant water by individuals other than for fire suppression or utility system maintenance purposes, except upon prior approval of the General Manager.

5. Failure to meet MPWMD Regulation XIII, retrofit requirements for an existing business after having been given a reasonable amount of time to comply.

6. Draining and refilling of swimming pools or spas except (a) to prevent or correct structural damage or to comply with public health regulations, or (b) upon prior approval of the General Manager.

WATER WASTE - "Water Waste" shall mean the indiscriminate, unreasonable, or excessive running or dissipation of water. Water Waste shall include, but not be limited, to the following:

1. Waste caused by correctable leaks, breaks or malfunctions. This loss of potable water may be cited as water waste after a reasonable period of time has passed in which the leak or malfunction could have been corrected. Exceptions may be granted by the General Manager for corrections which are not feasible or practical.

2. Use of potable water for washing buildings, structures, driveways, patios, parking lots, tennis courts, or other hard surfaced areas, except in cases where health or safety are at risk.

3. Indiscriminate or excessive water use which allows excess to run to waste.

4. Use of potable water to irrigate turf, lawns, gardens or ornamental landscaping between 9:00 a.m. and 5:00 p.m. by means other than drip irrigation, or hand watering without quick acting positive shut-off nozzles. (Exceptions shall be made by the General Manager for professional gardeners where there is no ability to not water between 9:00 a.m. to 5:00 p.m.).

5. Individual private washing of cars with a hose except with the use of a positive action shut-off nozzle. Use of water for washing commercial aircraft, cars, buses, boats, trailers or other commercial vehicles at any time, except at commercial or fleet vehicle or boat washing facilities operated at a fixed location where equipment using water is properly maintained to avoid wasteful use.

6. Transportation of water from the Monterey Peninsula Water Resources System without prior written authorization from the MPWMD shall be deemed water waste. Emergency or health related situations are exempt from this provision in accordance with Rule 168 (Water Rationing Variance).

7. Operation of a commercial car wash without recycling at least 50 percent of the potable water used per cycle.

8. Use of water for more than minimal landscaping, as defined in the landscaping regulations of the jurisdiction or as described in Article 10.8 of the California Government Code.

9. Use of potable water for street cleaning.

10. Outdoor watering in violation of landscape irrigation restrictions required by Stage 1 Water Conservation.

11. Failure to maintain water use within a mandatory landscape water budget.

12. Misrepresentation of the number of persons permanently residing on a property where water is supplied by a water distribution system or by a private well.

The following activities shall not be cited as Water Waste:

1. Flow resulting from fire fighting or essential inspection of fire hydrants;

2. Water applied to abate spills of flammable or otherwise hazardous materials, where water application is the appropriate methodology;

3. Water applied to prevent or abate health, safety, or accident hazards when alternate methods are not available;

4. Storm run‑off;

5. Flow from fire training activities during Stage 1 Water Conservation through Stage 3 Water Conservation;

6. Reasonable quantities of water applied as dust control as required by the Monterey Bay Unified Air Pollution Control Agency, except when prohibited by Regulation XV.

RESPONSIBLE PARTY - AResponsible Party@ means the person or persons who assume through the District permit process legal responsibility for the proper performance of the requirements of a permit holder as defined in the Rules and Regulations and/or in conditions attached to a permit. AResponsible Party,@ when used in the context of the Expanded Water Conservation and Standby Rationing Plan, shall mean the person who is responsible for paying the water bill. When a property is served by a private well or a small water distribution system, the AResponsible Party@ shall be the water users of the well and the small distribution system operator.

Section 7: Regulation of Mobile Distribution Systems During A Water Supply Emergency

A. No person, extractor, owner or operator shall operate a mobile water distribution system without first securing a written permit from the District. Applications for establishment of a mobile water distribution system shall be made pursuant to Rule 22 (Action On Application For Permit To Create/Establish A Water Distribution System) and shall be investigated, considered, determined, and acted upon on the same terms and conditions as provided for the approval, conditional approval or denial of a creation establishment permit.

B. In the event prior authorization is not obtained by reason of an emergency or health related situation, authorization for the Mobile Distribution System permit shall be obtained from the District within five working days following the emergency or health related event.

C. Delivery and receipt of water from an unpermitted Mobile Distribution System shall be deemed water waste.

D. The provisions of paragraphs A, B and C of this Section shall be incorporated into the District Rules and Regulations as Rule 173 (Regulation of Mobile Distribution Systems During A Water Supply Emergency).

Section 8: Survey

A. Stage 1 Water Conservation Survey

1. Cal-Am shall conduct a confidential survey of all water users of the Cal-Am system that derive their source of supply from the MPWRS. This survey shall be required upon the effective date of this regulation. The survey shall request information to determine the number of permanent residents in each dwelling unit and the lot size of each residential site with permitted water service; the types of uses and amount of water use on non-residential sites; and the number of users and types of use(s) served by each water meter. Only information deemed appropriate for the effective operation of this program will be requested.

C. Sunset of Stage 3 Water Conservation. Without further action by the Board of Directors, the provisions of Stage 3 Water Conservation shall be rescinded upon compliance with the year-to-date at month-end production goal for the first two months of the subsequent water year. Water users of Cal-Am when that water system derives water from the MPWRS shall revert to Stage 1 Water Conservation.

(a) Regulatory compliance during a period of Stage 4 Water Rationing shall not cause a sunset of this provision.

D. Notice. Cal-Am shall provide notice of mandatory water conservation with each bill prepared for water users of the Cal-Am system

E. Cal-Am Excessive Use Rates. Section 12-E requires approval by the Public Utilities Commission (PUC) prior to implementation.

1. Cal-Am shall use the ECU factor of each water user for computation of the base water rate block and the related base use.

2. Excessive use rates shall be applied to water use over 150 percent of the base use.

3. Excessive use rates shall be established by multiplying the base block rate of rate blocks 4 and 5 of Cal-Am=s per-capita-based rate tariff by 400 percent. The difference between the base rate for rate block 4 and 5, and the 400 percent excessive use rate shall be the actual excessive use rate and shall be designated separately from the standard water rate billing.

4. In the event that excessive use rates are not authorized by the California Public Utilities Commission, the base use shall become a base ration and use above the base rate shall be considered non-essential water use.

F. Cal-Am Use Prior to PUC Approval of Excessive Use Rates.

1. Upon implementation of Stage 3 Water Conservation, the District shall consider water use above the Cal-Am base rate to be non-essential water use subject to enforcement under Rule 171 (Water Waste Fees).

2. Cal-Am shall provide monthly information with the water bill showing the responsible party=s compliance with the base rate.

G. The provisions of paragraphs A through F, inclusive, of this Section shall be incorporated into the District Rules and Regulations as Rule 163 (Stage 3 Water Conservation).

Section 13: Stage 4 Water Rationing

A. Stage 4 Water Rationing is defined as the fourth stage in the District=s Expanded Water Conservation and Standby Rationing Plan that responds to a drought situation or emergency water supply shortage with a 15 percent reduction goal from system production limits for non-Cal-Am water users. Fifteen percent reductions in the Cal-Am system are achieved through Stage 3 Water Conservation.

B. Trigger.

1. Water Supply Limitation Trigger. Stage 4 Water Rationing shall apply to all water users whose source of supply is derived from the MPWRS. Stage 4 Water Rationing shall become effective on July 1 or such earlier date as may be set by the Board following the District=s May Board meeting if total usable storage in the MPWRS on May 1 is less than 31,580 acre-feet and greater than 24,750 acre-feet. If total usable storage is equal to or greater than 31,580 acre-feet on May 1, no water rationing shall be imposed.

2. Emergency Trigger. Stage 4 Water Rationing shall be implemented upon Resolution of the Board of Directors when there is need for an immediate water use reduction requirement in response to an unexpected water supply shortage.

C. Requirements previously imposed by implementation of the Expanded Water Conservation and Standby Rationing Plan shall remain in force. Requirements may be modified or superseded by actions taken in this or future stages of the Expanded Water Conservation and Standby Rationing Plan.

D. The provisions of Stage 3 Water Conservation shall be implemented for all water users of the Cal-Am water distribution system, unless specifically exempt from Stage 4 Water Rationing by action of the Board of Directors.

E. Sunset of Stage 4 Water Rationing.

1. Water Supply Availability. Stage 4 Water Rationing shall continue to have force and effect until rescinded by Resolution of the Board of Directors upon a determination that the total usable storage in the MPWRS is greater than 31,580 acre-feet. This determination will normally be made at the Board=s May meeting. However, a determination to rescind Stage 4 Water Rationing as early as the following January Board meeting can be made if the total usable storage in the MPWRS is equal to or greater than 31,580 acre-feet on January 1.

2. In the event total usable storage is greater than 31,580 acre-feet, the General Manager shall review Cal-Am=s year-to-date production. Upon compliance with the monthly year-to-date goals specified in Table 1 of Rule 162 and, unless otherwise specified in the Resolution rescinding Stage 4 Water Rationing, water users shall revert to Stage 1 Water Conservation. If Cal-Am=s year-to-date production exceeds the year-to-date goal specified in Table 1 of Rule 162, Cal-Am water users shall revert to Stage 2 Water Conservation.

3. Emergency. Upon correction of a water supply limitation caused by an emergency, Stage 4 Water Rationing shall sunset without action by the Board.

F. Notice.

1. Upon direction of the General Manager, all water distribution system operators affected by Stage 4 Water Rationing shall notify water users of the system that reductions in water use are necessary and that stricter water rationing may be imminent. Water distribution system operators shall ensure that notices provided or required by the District shall be distributed to the system water users.

2. As appropriate, Cal-Am shall notify its water users that excessive use rates will be imposed upon the effective date of Stage 4 Water Rationing.

3. The District shall contact all water users of private wells not supplying water to a distribution system within the MPWRS. Contact shall be via first class mail and shall explain the restrictions placed on the use of private wells during Stage 4 Water Rationing and shall provide and/or request additional information from the private well owner as deemed necessary for the efficient operation of the program.

G. The provisions of paragraphs A through F, inclusive, of this Section shall be incorporated into the District Rules and Regulations as Rule 164 (Stage 4 Water Rationing).

Section 14: Stage 5 Water Rationing

A. 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 emergency water supply shortage with a 20 percent reduction goal from the system production limit. 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.

B. Implementation.

1. Water Supply Limitation Trigger. Stage 5 Water Rationing shall apply to all water users whose source of supply is derived from the MPWRS. Stage 5 Water Rationing shall become effective on June 1 or such earlier date as may be set by the Board following the District=s May Board meeting if total usable storage in the MPWRS on May 1 is less than 24,750 acre-feet and greater than 17,720 acre-feet. If total usable storage is equal to or greater than 31,580 acre-feet on May 1, no water rationing shall be imposed.

a. The General Manager may delay implementation of Stage 5 Water Rationing to ensure adequate operation of the program. Delays authorized by the General Manager shall not exceed 90 days.

D. The provisions paragraphs A through C, inclusive, of this Section shall be incorporated into the District Rules and Regulations as Rule 168 (Water Banks).

Section 18: Water Waste Fees

A. Each occurrence of Water Waste or Non-Essential Water Use, as those terms are defined by Rule No. 11 (Definitions), which continues after the water user has had reasonable notice to cease and desist that type of water use shall constitute a flagrant occurrence.

B. A $50 fee shall be assessed for each flagrant occurrence of Water Waste or Non-Essential Water Use

C. A $150 fee shall be imposed for each subsequent occurrence (including multiple occurrences) of Water Waste or Non-Essential Water Use which occurs within 18 months of the first occurrence.

D. All fees shall be paid within 30 days.

E. Within the 30 day period, a water user may seek waiver or forgiveness of all or part of the Water Waste fees on the basis of hardship. The water user must provide the District with a written explanation as to why the fees should not be collected. Staff shall be authorized to determine whether or not fees should be waived in full or in part, with the final decision resting with the General Manager.

F. After 30 days, fees which have not been paid or waived may result in a lien being placed on the property served by the water account.

G. Repeated occurrences or Water Waste or Non-Essential Water Use, which continue or occur after the water user has had a reasonable notice to cease and desist that type of water use, or which continues or occurs after the water user has had a reasonable opportunity to cure any defect causing that type of water use, shall provide cause for the placement of a flow restrictor within the water line or water meter.

H. The provisions of paragraphs A through G, inclusive, of this Section shall be incorporated into the District Rules and Regulations as Rule 171 (Water Waste Fees).

Section 19: Variance

A. The General Manager shall assign additional water beyond the ration established in Stage 4 Water Rationing through Stage 7 Water Rationing in the following circumstances upon submittal of the appropriate variance request form and fees.

B. The following variances shall be considered for additional water during Stages 4 through 7 Water Rationing.

1. Medical and/or sanitation needs certified by a doctor;

2. Hospital and/or health care facilities that have achieved all Best Management Practices for those uses;

3. Drinking water for large livestock;

4. Commercial/Industrial users that can demonstrate compliance with all BMPs appropriate for the type of use and where there is minimal exterior water use on the water meter or water supply serving the use;

5. Leaks, when an invoice is provided by a licensed plumber or contractor;

6. Commercial laundromats with signs advising full loads only;

7. Business in a home on a case-by-case basis;

8. Riparian irrigation when required as a condition of a river bank restoration permit issued by the District or as a condition of a riverbank erosion protection permit issued by the District.

9. Emergency, extreme, or unusual situations on a case-by-case basis;

C. No Variance. The following categories of water use shall not qualify for special consideration under the provisions of this regulation:

1. Visitors other than those occupying short-term residential housing as defined in Rule 11 (Definitions) when the property owner has submitted a completed survey form with the applicable information about the occupancy of the site;

2. Irrigation, other than variances allowed by Section 19-B of this regulation.

3. Filling spas, ponds, fountains, etc.;

4. Long-term leaks that are not repaired after reasonable notice.

D. Waiver of Excess Fees by Variance Application. Any qualifying water user may seek to have all or part of the water waste fee for excess water use waived or forgiven through the Rationing Variance process set forth in this Rule. Any water user may seek relief from the water waste fee upon substantial evidence that the excess water use was beyond the user's control, and was not reasonably correctable in a timely fashion due to special and unique circumstances. Due diligence must be shown to forgive any water waste caused by a leak; under no circumstance shall a leak justify the forgiveness of an excess use fee for more than three billing periods. The applicant shall further demonstrate that all reasonable means have been taken to conserve water and minimize future water use.

1. The General Manager or his agent may grant any application to waive water waste fees upon submittal of the appropriate evidence to warrant a variance. All applicants for variance shall submit the appropriate Variance Request Form and processing fee of $60. Any action to waive a water waste fee shall be recorded in writing and include a written explanation to substantiate and justify the waiver;

2. Although inspections shall not be required in all cases, District staff shall use spot or random inspections as necessary to verify an applicant's eligibility for a water rationing variance.

3. Each person making written application for a variance shall be notified in writing of the disposition of their application. Decisions of the General Manager are final.

E. The provisions of paragraphs A, B, C and D of this Section shall be incorporated into the District Rules and Regulations as Rule 169 (Water Rationing Variance).

Section 20: Water Rationing Enforcement

A. Enforcement During Stages 4 through 7 Water Rationing.

1. Courtesy Notice. For the first instance of excess water use beyond the ration in Stages 4 through 7 Water Rationing, a water user shall be given written notice by the water system operator of the excess use and shall be notified that such violation constitutes water waste and a water waste fee of $50 shall be collected in the event the water user again exceeds that user's water ration during any future billing cycle under Stages 4 through 7 Water Rationing. If the water user complies with all water rationing and water waste and non-essential water use requirements during the next month following the first instance of excess use, the excess use fee shall be deferred.

If the water user again exceeds that user's water ration during any following month, the water waste fee of $50 shall be imposed immediately.

2. Second Offense. Upon the second occurrence of excess water use (including any prior excess water use during any prior stage) a water user shall be charged with water waste and assessed a fee of $150 for the second offense, plus the previously deferred $50 first offense fee, by the District or its agent.

3. Third Offense.

a. Stage 5, 6 and 7 Water Rationing. A third occurrence of excess water use (including any prior excess water use during any prior stage) shall result in an excess water use charge equivalent to the Cal-Am per unit water charge at the water user=s level of use multiplied by the number of units over a water ration, plus $150 as provided in Rule 171 (Water Waste Fees). A third occurrence of excess water use shall provide cause for the installation of a flow restrictor in the water meter or water supply providing water to the property where the over-use occurred. Restrictors shall remain in place until conditions are reduced to Stage 2 Water Conservation or a less restrictive stage. All costs for the installation and removal of a flow restrictor shall be charged to the property owner of the site subjected to this action.

4. Fourth Offense. A fourth occurrence of water use in excess of the water ration shall result in fees and charges listed for a third offense and shall result in the installation of a flow restrictor by the system operator in the water meter or water supply providing water to the property where the over-use occurred. Restrictors shall remain in place until conditions are reduced to Stage 3 Water conservation or to a less restrictive stage. All costs for the installation and removal of a flow restrictor shall be charged to the property owner of the site subjected to this action.

B. Flow Restrictor Exemption. Exemptions to the installation of a flow restrictor as a means to enforce the water ration shall occur when there are provable risks to the health, safety and/or welfare of the water user. The following shall apply in the event a flow restrictor cannot be installed in the water meter or water supply providing water to a property due to health, safety or welfare requirements:

1. Water Meters Serving Three or More Multi-Family Dwelling Units. The responsible party shall be charged $150 times the number of dwelling units located on the meter during each month in which a violation of the water ration occurs. The responsible party shall be liable for payment of all excess water use charges.

C. All notices and assessments of water waste and/or excess water use charges made by a water distribution system operator shall be reported to the District.

D. The provisions of paragraphs A, B and C of this Section shall be incorporated into the District Rules and Regulations as Rule 175 (Water Rationing Enforcement).

Section 21: Regulation of Well Owners/Operators and Extractors

A. During a water supply emergency, each owner/operator or extractor of a private water well or other water-gathering facility shall comply with the provisions of this regulation, as they relate to such well.

B. The provisions of paragraph A of this Section shall be incorporated into the District Rules and Regulations as Rule 174 (Regulation of Well Owners/Operators and Extractors).

Section 22: Funding

A. All costs associated with the administration of the Expanded Water Conservation and Standby Rationing Plan for water users of Cal-Am shall be paid by Cal-Am. All charges collected by Cal-Am shall be used to underwrite costs of administration, enforcement, education, and other necessary activities relating to the water supply emergency of both the District and Cal-Am. Charges for costs incurred under the Expanded Water Conservation and Standby Rationing Plan shall be paid to cover the actual costs of administration, enforcement, education, and other activities relating to the water supply emergency.

B. Administration of water rationing for water users not supplied by Cal-Am shall be paid by the water user.

Section 23: Modification of P.U.C. Rationing Standards

The General Manager shall take action as necessary to ensure that rules of the California Public Utilities Commission enable any water distribution system to enforce or collect fees, charges, surcharges pursuant to the rationing standards set forth by this ordinance, including but not limited to water restrictor installation and, if warranted, service disconnection.

Section 24: Deletion of Rule 83 (Water Waste Fees)

Rule 83 (Water Waste Fees) shall be deleted in its entirety. In its place, Rule 171 (Water Waste Fees) shall be enacted by this ordinance.

Section 25: Deletion of Rule 104 (Mobile Distribution Systems During A Water Supply Emergency)

Rule 104 (Mobile Distribution Systems During a Water Supply Emergency) shall be deleted in its entirety. In its place, Rule 173 (Regulation of Mobile Distribution Systems During A Water Supply Emergency) shall be enacted by this ordinance.

Section 26: Renumbering of Rule 107 (Regulation of Well Owners/Operators and Extractors)

Rule 107 (Regulation of Well Owners/Operators and Extractors) shall be deleted in its entirety and renumbered as Rule 174 (Regulation of Well Owners/Operators and Extractors).

Section 27: Deletion of Rule 112 (Administration of Rationing Penalties)

Rule 112 (Administration of Rationing Penalties) shall be deleted in its entirety. In its place, Rule 175 (Water Rationing Enforcement) shall be enacted by this ordinance.

Section 28: Publication

The provisions of this ordinance shall cause the republishing of the District Rules and Regulations of the Monterey Peninsula Water Management District.

Section 29: Effective Date

The provisions of this ordinance shall take effect at 12:01 a.m., March 1, 1999.

Section 30: Sunset

The provisions of this ordinance shall be reviewed by the Board of Directors every five years at the January meeting, beginning with the first review in January 2004. Upon the modification of SWRCB Order No. 95‑10, or at least every five years, the Board of Directors shall hold a public hearing to consider whether or not a state of water supply emergency continues, and whether or not the provisions of this ordinance shall be continued, modified, or rescinded.

Section 31: Severability

If any section, sub-section, sentence, clause, or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The Board of Directors hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, sub-sections, sentences, clauses, or phrases may be declared invalid.

On motion of Director Ernst, and second by Director Edwards, the foregoing Ordinance is duly passed to print the 28th day of January 1999, by the following vote:

AYES: Directors Chesshire, Ely, Ernst, Edwards, Hughes, Pendergrass

NAYS: None

ABSENT: Director Potter

I, Darby Fuerst, Secretary to the Board of Directors of the Monterey Peninsula Water Management District, hereby certify that the foregoing is an ordinance duly adopted on the 28^th day of January, 1999.

Witness my hand and seal of the Board of Directors this third day of February, 1999.

Darby Fuerst, Secretary to the Board

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