ITEM:	ACTION ITEMS
24.	PROVIDE DIRECTION ON MODIFICATIONS TO RULE 25.5, WATER USE CREDITS, PERTAINING TO REDEVELOPMENT PROJECTS
Meeting Date:		June 21, 2004	Budgeted: N/A
Staff Contact:		Stephanie Pintar	Program/Line Item No.: N/A
			Cost Estimate: N/A
General Counsel Approval: Yes.
Committee Recommendation: The Water Demand Committee recommends no change be made to Rule 25.5.
CEQA Compliance: N/A

SUMMARY: At the May 17, 2004, Board meeting, during the consideration of the second reading and adoption of Ordinance No. 115, Director Potter offered a motion to: (a) delete section 5-C (2) of the ordinance that requires ownership of a site for 24 months; (b) adopt the amended ordinance; and (c) refer the ordinance to the Water Demand Committee and request that the committee develop language that addresses the reuse of saved water for redevelopment projects to ensure that redevelopment projects can move forward without the 24 month ownership requirement. The amended version of the ordinance would be presented for Board consideration. Director Knight seconded the motion and the motion passed 5-2.

The redevelopment circumstances discussed at the May 17, 2004 Board meeting are addressed in draft Ordinance No. 118, attached as Exhibit 24-A. The following proposed language would be added as District Rule 25.5-C (3):

3. Notwithstanding any other provision of Rule 25.5, a Water Use Credit shall not support creation of a new single-family User unless or until an applicant has continuously owned the Site for a period of at least twenty-four (24) months before the date of application. This limitation, however, shall not apply to any Site (a) that is owned, in whole or in part, by any Jurisdiction or by any Redevelopment Agency, or (b) that is subject to an Exclusive Negotiation Agreement (ENA) for purposes of redevelopment, or (c) upon which Affordable Housing or Low Income Housing is constructed.

RECOMMENDATION: On June 8, 2004, the Water Demand Committee considered language developed by District Counsel to address an exemption for redevelopment projects from the 24-month ownership requirement, and recommended 2/1 that there should be no change to Ordinance No. 115.  No change will mean that Rule 25.5, as modified by Ordinance No. 115, will remain without a time requirement for ownership of adjacent properties before a new connection can be built using Water Use Credits. The Board should consider whether or not to uphold the Water Demand Committee’s recommendation, and if not, staff should be directed to proceed with Ordinance No. 118.

Draft Ordinance No. 118 will need to be reviewed in an Initial Study pursuant to CEQA, just as Ordinance No. 115 was. The proposed modification to Rule 25.5 could be presented to the Board for first reading at the August 16, 2004 meeting. If approved at first reading, second reading could be scheduled for the September 20, 2004 meeting, and if adopted, the ordinance would be effective 30 days later.

U:\staff\word\boardpacket\2004\2004boardpacket\20040621\ActionItems\24\item24.doc