MPWMD BOARD MEETING--MAY 17, 2004--ITEM 14--CONSIDER SECOND READING AND ADOPTION 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

ITEM:	PUBLIC HEARINGS

14.	CONSIDER SECOND READING AND ADOPTION 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:		May 17, 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 April 13, 2004 and recommends approval.
CEQA Compliance: Negative Declaration. Ordinance No. 115 has no significant effect on the environment.

SUMMARY: Draft Ordinance No. 115 (Exhibit 14-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 February 2, 2004 Board workshop and at the January 20, 2004, Water Demand Committee meeting. 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 adopted a Negative Declaration for MPWMD Ordinance No. 115 at first reading. 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. The review period for written comments was defined as March 26, 2004 through April 14, 2004. One response was received with no comment.

RECOMMENDATION: Staff recommends the Board approve the second reading and adoption 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.

If adopted on May 17, 2004, staff will file the Negative Declaration with the County Clerk in compliance with CEQA on the following day, and the ordinance would be effective on July 1, 2004.

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