ITEM:

PUBLIC HEARINGS

 

12.

CONSIDER FIRST READING OF ORDINANCE NO. 115 – AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA WATER MANAGEMENT DISTRICT CLARIFYING WATER USE CREDIT RULES, CANCELLATION OF PERMITS RULES, AND SETTING FEES FOR WATER USE CREDIT DOCUMENTATION

 

Meeting Date:

April 19, 2004

Budgeted:  N/A

 

Staff Contact:

Stephanie Pintar

Program/Line Item No.:  N/A

 

 

Cost Estimate:  N/A

 

General Counsel Approval:  General Counsel has reviewed the proposed ordinance.

Committee Recommendation:  The Water Demand Committee reviewed the proposed ordinance on March 9, 2004.

CEQA Compliance:  Negative Declaration.  Ordinance No. 115 has no significant effect on the environment.

 

SUMMARY:  Draft Ordinance No. 115 (Exhibit 12-A) clarifies the reuse of Water Use Credits on a Site and relocates existing provisions of the District’s Rules and Regulations related to cancellation of permits from multiple rules to one rule.  This ordinance also establishes processing fees for documentation of Water Use Credits.

Clarifications provided in the draft ordinance address staff concerns about practices that are not covered in the Rules and Regulations.  The issues surrounding the use of Water Use Credits on contiguous multiple lots under identical ownership and use was discussed at the January 20, 2004 Water Demand Committee meeting and at the February 2, 2004 Board workshop.  District staff has had an informal practice for handling requests to reassign Water Use Credits for a number of years, particularly as these requests relate to demolition of a house that straddles a lot line.  With less water available from the jurisdictions, staff noticed an increase in the number and complexity of the requests to reassign Water Use Credits.  However, the former staff practice of specifying the amount of credit assigned to a vacant lot on the Site is problematic:  When the property transfers ownership, it is no longer part of the “Site” under which the water credit was documented, which is contrary to District law.  As there is no specific District policy to address the practice of reusing Water Use Credits on adjacent vacant lots that are part of a single Site, staff brought the policy issue to the Water Demand Committee for direction.  In September 2003, the Board Chairman directed staff to suspend processing requests for credit reassignments that involved a vacant lot or a lot with an uninhabitable structure on it pending policy action by the Board.  Draft Ordinance No. 115 addresses these concerns.

 

The Board will consider adoption of a Negative Declaration for MPWMD Ordinance No. 115.  The Negative Declaration states that adoption of Ordinance No. 115 has no significant effect on the environment, in compliance with the California Environmental Quality Act (CEQA).  The “Notice of Intent to Adopt a Negative Declaration for MPWMD Ordinance No. 115,” along with an Initial Study and Ordinance No. 115, was circulated to roughly 40 local agencies and libraries and other entities on March 25, 2004, and was posted on the District’s website as well as at the County Clerk’s office on March 25, 2004 (Exhibit 12-B).  The review period for written comments was defined as March 26, 2004 through April 14, 2004.  The MPWMD Board public hearing on April 19, 2004 to receive oral comments was also identified.  It is notable that Negative Declarations for projects of local importance require only a 20-day comment period (CEQA 21092.3).  The April 19, 2004 agenda containing the public hearing on consideration of a Negative Declaration for Ordinance No. 115 was posted to the District website and mailed to agenda recipients on April 9, 2004.  

 

Staff’s goal is to complete the CEQA review process prior to bringing new ordinances to the Board.  The Water Demand Committee reviewed and supported staff’s proposed CEQA methodology for Ordinance No. 115, and staff completed an Initial Study and Notice of Intent to File a Negative Declaration.  Copies of the CEQA documents were provided to the Board on March 26, 2004.

 

RECOMMENDATION:  The Board should adopt the proposed Negative Declaration provided on the third page of Exhibit 12-B.  The full text of the Negative Declaration states:

 

Based on the finding that adoption of Ordinance No. 115, Clarifying Water Use Credit Rules, Cancellation Of Permits Rules, And Setting Fees For Water Use Credit Documentation, has no significant effect on the environment, the Monterey Peninsula Water Management District makes this Negative Declaration regarding MPWMD Ordinance No. 115 under the California Environmental Quality Act.

 

Staff recommends the Board approve the first reading of Ordinance No. 115.  The proposed ordinance clarifies the reuse of Water Use Credits on a Site and relocates existing provisions of the District’s Rules and Regulations related to cancellation of permits from multiple rules to one rule.  The ordinance also establishes processing fees for documentation of Water Use Credits.

This ordinance addresses processing concerns that were identified in 2003 and reported to the Water Demand Committee and the Board.

 

BACKGROUND:  Water credit “reassignments” involve the designation of an on-site water credit to a specific lot when multiple contiguous properties are under identical use and ownership.  District Rule 25.5 allows the reuse of a documented Water Use Credit at a later time on that same Site (as defined in Rule 11, Definitions) as long as the savings are current and as long as the Water Use Credit has not expired. 

 

At the February 19, 2004 meeting, the Board approved staff’s recommendation for modifications to the rules to clarify the process for utilizing Water Use Credits on Sites consisting of multiple lots  (formerly discussed as “water credit reassignments”).  District Rule 25.5 allows the reuse of a documented Water Use Credit at a later time on the same Site (as defined in Rule 11, Definitions) as long as the savings are current and as long as the Water Use Credit has not expired. 

 

Following the meeting, staff prepared the following summary of the Board’s action:

 

1.      Water Use Credits can be formally designated (e.g. specified by deed restriction) only when there is a demolition that straddled the lot line.   This provision applies only to the two lots that the building formerly occupied.

 

2.      Water Use Credits may be moved between one or more habitable dwelling units on a site when a water permit is issued.

 

3.      Staff should only continue to accept reassignment requests that fall under 1 and 2, above.

 

4.      A new ordinance will be presented to the Board in April that will address the following:

a.       Specifying, by recorded document, an amount of credit available to a vacant lot or a lot with an uninhabitable structure will not be continued.

b.      The owner of a Site will be required to make application to use any credit that was documented pursuant to Rule 25.5. 

c.       Water permits that include a documented Water Use Credit will expire two years after date of issue if not completed.  The applicant will need to reapply with the District to continue the permit.

d.      When a property owner wants to use Water Use Credits to build a new house, the Site must have been under the current ownership for at least 24 months.

e.       If an applicant can provide clear and convincing evidence that a vacant lot has irrigation/landscaping that existed in 1985 and has been maintained since, we will grant credit for exterior uses.   This will be an appealable decision.

f.        Staff will be charging fees for documenting credits, extending credits, consulting on credits, etc.

 

 

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