EXHIBIT 11-A
DRAFT
ORDINANCE NO. 117
MONTEREY PENINSULA
WATER MANAGEMENT DISTRICT
AMENDING RULE 28-B
CLARIFYING THE MINISTERIAL REVIEW OF
WATER USE CREDIT
TRANSFER APPLICATIONS, SETTING STANDARD CONDITIONS OF APPROVAL, AND SETTING
FEES FOR TRANSFERS AND REVIEW OF NEW TECHNOLOGY
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.
Rule 28-B of the Water Management District enables transfer of water
credits documented pursuant to District Rule 25.5 from an existing
non-residential use to another expanding non-residential use or to a
jurisdiction for use at its discretion.
4.
This ordinance amends Rule 28-B to clarify the ministerial authority to
approve a water credit transfer.
5.
Ordinance No. 108 changed a ministerial process to a discretionary
process. Due to the time and cost associated with making an application
for transfer under that ordinance, it was never utilized. This ordinance
reinstates the water credit transfer approval process at the ministerial level.
6.
The Board of Directors determines that this ordinance is an action taken
by a regulatory agency to amend internal rules, and therefore finds that
enactment of this ordinance has no measurable impact on the environment and
that a Negative Declaration under the requirements of the California
Environmental Quality Act is appropriate.
7.
This ordinance shall revise, amend and republish Rule 28-B of the Rules
and Regulations of the Water Management District.
NOW THEREFORE be it
ordained as follows:
ORDINANCE
Section
One: Short Title
This
ordinance shall be known as the Water Use Credit Transfer Ministerial Amendment
Ordinance.
Section
Two: Purpose
This
ordinance revises, amends and republishes water use credit provisions set forth
in District Rule 28- B by reverting from a discretionary approval process to a
ministerial approval process and by clarifying standards for approval of
requests made under Rule 28-B, including conditions of approval. This
ordinance shall also address fees for Rule 28-B Water Use Credit transfers and
fees for processing requests for review of water permit applications that
proposed to install new water saving technology.
Section Three:
Amendment of
Rule 28-B (Property-To-Property And Property-To-Jurisdiction Transfers Of Water
Use Credits For Commercial And Industrial Uses)
A.
The following Rule 28-B shall be revised as shown in bold
italics (bold italics) and strikeout (strikethrough):
B.
PROPERTY-TO-PROPERTY
AND PROPERTY‑TO-JURISDICTION TRANSFERS OF WATER USE CREDITS FOR
COMMERCIAL AND INDUSTRIAL USES
Water use credits for
existing water use which has been allowed by the District on or after January
1, 1985, may be transferred from one property to another for commercial and
industrial connections pursuant to this Rule and upon the approval of the Board
of Directors. Commercial and industrial
water credits may also be transferred directly into a jurisdiction’s allocation
upon the approval of the Board of Directors.
Open space and residential water use shall not be transferred. The following conditions shall apply:
1.
Due to the District’s ongoing concern about the viability of the
available water supply and the possibility that water transfers may result in
additional water usage, water transfers shall be approved by the Board of
Directors, subject to the other provisions of this Rule, if the transfer will
not have an adverse impact on the water supply.
In exercising its discretion, the Board of Directors shall consider the
impacts of the application under consideration, as well as the cumulative
impacts of other transfers, on the water supply.
2.
Water use credit transfers shall only occur within a single
jurisdiction. No inter-jurisdictional
transfer shall be allowed.
Property-to-property transferred water credits shall not have any impact
on a jurisdiction’s allocation.
Property-to-jurisdiction transfers shall increase a jurisdiction’s
available allocation.
3.
Water use credit transfers shall only occur within a single water
distribution system. No inter-system
transfers shall be allowed.
4.
Water use credit transfers shall only occur with the prior approval of
the city, county or airport district.
5.
Water use credit transfers shall only be allowed from an existing
commercial or industrial use, and must be applied to the intensification of
another existing commercial or industrial use or added to a jurisdiction’s
allocation. Other than transfers which
add to a jurisdiction’s allocation, transfer credits shall not originate from,
or be transferred to, any residential use. Transfer credits shall not derive from any
prior open space water use.
6.
Property-to-property water use credit transfers shall only be used for
intensification purposes. New water
connections shall not be issued based upon a property-to-property transferred
water use credit.
7.
Property-to-property commercial water use credit transfers shall only
enable intensification of an existing commercial or industrial water use
capacity, as proposed by a current application for a water permit. Transfers shall not provide water use
capacity for new commercial or industrial water meter connections. Transferred water credits shall not be
“banked” for future use at any new or different site.
8.
The use of credits resulting from a property-to-jurisdiction transfer
shall be at the discretion of the jurisdiction.
9.
All water use credit transfers shall originate only from prior
documented commercial water use capacity and shall be subject to each and every
limitation on the calculation of water use credits set forth in Rule 25.5.
10.
All transfers of water use credits shall occur only by the written (and
recorded) agreement of the owner of record for each parcel from which the
transfer originates. This agreement
shall confirm that the transfer of water credit is irrevocable, shall quantify
remaining water use capacity required by the originating parcel(s), and
acknowledge that any intensification of water use capacity on the originating
site thereafter shall result in additional connection charge fees. If all prior water use capacity is
transferred from a site (due to demolition of all structures on that site), the
recorded agreement and notice shall consent to permanent removal of the meter
connection from the originating site, and acknowledge that the placement of a
new meter shall be limited due to unavailability of water.
11.
Transfer of water use credits shall only occur upon approval by the
Board of Directors. The Board of
Directors shall have sole and exclusive authority to determine
the water use capacity, which cannot be transferred by reason of capacity
requirements for the originating site. The Board of Directors shall
have sole and exclusive authority to determine the water use capacity
requirements for the receiving site. The
Board of Directors shall not approve any water credit transfer
where money or other valuable consideration has been given in exchange for the
water credit transfer. The Board of
Directors shall not approve any capacity for expanded water use
deriving from a transferred water credit in any circumstance where money or
other valuable consideration has been given in exchange for use of the water
credit. These limitations shall
nonetheless allow the recipient of a water credit transfer to reimburse the
donor of that credit for connection fees previously paid to the District for
that increment of water.
12.
Violation of the prohibition on the
transfer of water credit for money or other valuable consideration shall result
in immediate revocation of the transfer credit.
13.
Violation of the prohibition on the
transfer of water credit for money or other valuable consideration is a misdemeanor
as provided in Section 256 of the Monterey Peninsula Water Management District
Law.
14.
Transfer of water use credits shall not be approved by the Board of
Directors if the effect of the transfer shall cause the
originating site to have insufficient water credit to meet the water use
capacity requirements of all existing structures on the transferring property
site. If all prior water use is
transferred from a site (due to demolition of all structures), the transfer
shall be approved only upon the removal of the meter connection from the
originating site, and the recordation of the notice specified above.
15.
The effect of any approved water credit transfer shall be the
irrevocable extinction of any right or entitlement to the actual water use,
water use capacity, or water credit which has been transferred from the
originating (transferring) site.
16.
Before any water use credit transfer shall occur, the transfer fee
required by Rule 60 for each originating site shall be paid by the applicant.
Water
use credits for existing water use which has been allowed by the District on or
after January 1, 1985, may be transferred from one property to another for
commercial and industrial connections pursuant to this Rule. Commercial
and industrial water credits may also be transferred directly into a
jurisdiction’s allocation. Open space and residential water use shall not
be transferred. The following conditions shall apply:
1. Water
use credit transfers shall only occur within a single jurisdiction. No
inter-jurisdictional transfer shall be allowed. Property-to-property
transferred water credits shall not have any impact on a jurisdiction’s
allocation. Property-to-jurisdiction transfers shall increase a
jurisdiction’s available allocation.
2. Water
use credit transfers shall only occur within a single water distribution
system. No inter-system transfers shall be allowed.
3. Water
use credit transfers shall only occur with the prior approval of the city,
county or airport district.
4. The
effect of any approved water credit transfer shall be the irrevocable
extinction of any right or entitlement to the actual water use, water use
capacity, or water credit which has been transferred from the originating
(transferring) Site.
5. Water
use credit transfers shall only be allowed from an existing commercial or
industrial use, and must be applied to the intensification of another existing
commercial or industrial use or added to a jurisdiction’s allocation.
Other than transfers that add to a jurisdiction’s allocation, transfer credits
shall not originate from, or be transferred to, any residential use.
Transfer credits shall not derive from any prior open space water use.
6. Property-to-property
commercial water use credit transfers shall only enable intensification of an
existing commercial or industrial water use capacity, as proposed by a current
application for a water permit. Transfers shall not provide water use
capacity for new commercial or industrial water meter connections.
Transferred water credits shall not be “banked” for future use at any new or
different Site.
7. The
use of credits resulting from a property-to-jurisdiction transfer shall be at
the discretion of the jurisdiction. Every jurisdiction
utilizing water from a property-to-jurisdiction transfer shall account for all
water that was received through a water credit transfer, and shall clearly
identify applicants that are authorized to use water from a
commercial-to-public transfer on the Water Release Form and Water Permit
Application.
8. All
water use credit transfers shall originate only from prior documented
commercial water use capacity and shall be subject to each and every limitation
on the calculation of water use credits set forth in Rule 25.5.
9. Calculation of Transferable Water Use Credit.
a.
The
General Manager shall (1) categorize water use on the originating (donor) Site
(i.e. Group I, Group II or Group III as listed in Rule 24, Table 2: Commercial
Water Use Factors), (2) quantify the water use capacity existing on that Site,
and (3) quantify the average actual annual water use for that Site.
b.
The
General Manager shall calculate average actual annual water use using the
preceding ten (10) year record. When a
ten year record is not available, the maximum number of annual water use
records available, but no less than the preceding five (5) consecutive
years of water use records, shall be the used to compute the average actual
water use for that Site. No transferable
water credit shall be available if the minimum water use record is unavailable.
c.
The
General Manager shall calculate transferable credit from demolition of a use by
using the lesser of (a) factored use; or (b) average actual water use.
d.
Transfer of water use credits shall
not be approved by the General Manager if the effect of the transfer shall
cause the originating Site to have insufficient water credit to meet the water
use capacity requirements of all existing structures on the transferring
property Site. If all prior water use is transferred from a Site (due to
demolition of all structures), the transfer shall be approved only upon the
removal of the meter connection from the originating Site, and the recordation
of the notice specified above.
e.
Transfer of water use credits shall only
occur upon approval by the General Manager. The General Manager shall
have sole and exclusive authority to determine the water use capacity that
cannot be transferred by reason of capacity requirements for the originating
Site.
10. Originating
Site Deed Restriction.
a.
All transfers of water use credits shall
occur only by the written (and recorded) agreement of the owner of record for
the originating Site.
b.
This agreement shall confirm that the
transfer of water credit is irrevocable, shall quantify remaining water use
capacity required by the originating parcel(s), and acknowledge that any
intensification of water use capacity on the originating Site thereafter shall
require a water permit and may result in additional connection charge fees and
a water debit from the jurisdiction authorized by a signed Water Release Form
and Water Permit Application.
c.
If all prior water use capacity is
transferred from a Site (due to demolition of all structures on that Site), the
recorded agreement and notice shall consent to permanent removal of the meter
connection from the originating Site, and acknowledge that the placement of a
new meter shall be limited due to unavailability of water.
d.
The property owner(s) shall consent to
continuous monitoring of actual water use on the donor Site and to public
disclosure of that water use data for ten years after transfer. This
agreement shall run with the land and shall apply to any and all water meter
accounts serving the originating Site. This requirement shall include
water meter accounts held by the property owners, property managers, renters or
any other persons, firms or other entities that occupy the property or use
water during the reporting time specified by the General Manager.
11. Receiving
Site Deed Restrictions.
a.
Each property owner receiving water
originating from a property-to-property Water Use Credit Transfer shall consent
to continuous monitoring of actual water use on the recipient Site and to
public disclosure of that water use data for five years prior to issuance of a
water permit utilizing any portion of water that originated from a Water Use
Credit transfer and for five years after project occupancy. This
agreement shall run with the land and shall apply to any and all water meter
accounts on the receiving Site. This requirement shall include water
meter accounts held by the property owners, property managers, renters or any
other persons, firms or other entities that occupy the property during the
reporting time specified by the General Manager.
b.
For
properties where a new or expanded water use is allowed by a
property-to-jurisdiction transfer, the owner(s) of the receiving property shall
agree to the same conditions as required for a property-to-property transfer,
including deed restrictions authorizing consent to monitoring and public
disclosure of water use data.
c.
The General Manager shall have sole and
exclusive authority to determine the water use capacity requirements for the
receiving Site.
12.
The General Manager shall not
approve any water credit transfer where money or other valuable consideration
has been given in exchange for the water credit transfer. The General
Manager shall not approve any capacity for expanded water use deriving from a
transferred water credit in any circumstance where money or other valuable
consideration has been given in exchange for use of the water credit.
These limitations shall nonetheless allow the recipient of a water credit
transfer to reimburse the donor of that credit for connection fees previously
paid to the District for that increment of water.
a.
Violation of the prohibition on the
transfer of water credit for money or other valuable consideration shall result
in immediate revocation of the transfer credit.
b.
Violation of the prohibition on the
transfer of water credit for money or other valuable consideration is a misdemeanor
as provided in Section 256 of the Monterey Peninsula Water Management District
Law.
13.
Before any water use credit
transfer shall occur, the applicant shall pay the transfer fee required by Rule
60 for each originating Site. Every applicant applying for a permit using
water that originated from a Water Use Credit Transfer under this rule shall be
subject to administrative fees as shown in Rule 60.
14.
All
properties receiving water from a property-to-jurisdiction transfer shall
receive a water permit from the District prior to issuance of a building permit
by the jurisdiction.
15.
Upon approval of a Water Use Credit
Transfer, the jurisdiction in which the transfer occurs shall receive written
notification of the action. The jurisdiction shall be notified of the
precise amount of water that has either been applied to a water permit
(commercial-to-commercial transfer) or has been transferred into the
jurisdiction’s water allocation (commercial-to-jurisdiction).
Section
Four: Standard
Conditions of Approval
The
following text in bold italics shall be added as District Rule
28-C, Standard Conditions of Approval for Water Use Credit Transfers. These
conditions shall be applied to all Water Use Credit Transfers processed
pursuant to Rule 28-B.
1.
The property owner(s) of the
originating Site of a Water Use Credit transfer shall consent to continuous
monitoring of actual water use on the donor Site, and to public disclosure of
that water use data, for a minimum of ten years after transfer. This agreement
shall run with the land and shall apply to any and all water meter accounts on
the originating Site. This requirement shall include water meter accounts
held by the property owners, property managers, renters or any other persons,
firms or other entities that occupy the property or use water during the
reporting time specified by the General Manager.
2.
The property owner of the originating Site and the applicant to transfer
from the originating Site shall each complete a Declaration Regarding
Consideration Given for Transferred Water Use Credits for each application to
transfer a Water Use Credit pursuant to Rule 28-B.
3.
The property owner of a site
receiving water from a Water Use Credit transfer shall consent to continuous
monitoring of actual water use on the recipient Site, and to public disclosure
of that water use data, for five years prior to issuance of a water permit
utilizing any portion of water that originated from a Water Use Credit transfer
and for five years after project occupancy. This agreement shall run with
the land and shall apply to any and all water meter accounts on the receiving
Site. This requirement shall include water meter accounts held by the
property owners, property managers, renters or any other persons, firms or
other entities that occupy the property during the reporting time specified by
the General Manager.
4.
The property owner of a site receiving water from a Water Use Credit
transfer and his agent as specified on the Water Release Form shall each
complete a Declaration Regarding Consideration Given for Transferred
Water Use Credits for each application for a water permit that utilizes a
transferred Water Use Credit.
5.
Prior to issuance of a water
permit, the water permit applicant utilizing any portion of a transferred Water
Use Credit shall submit fees as required by District Rule 60.
6.
Prior to occupancy of any project
that received a water permit by using any portion of a transferred Water Use
Credit, a final inspection by the District shall be required prior to occupancy.
Section
Five: Amendment to Rule
63, Miscellaneous Fees
The following bold and italicized text shall be
added to District Rule 63 shall be amended to add the following fees:
F.
Fee
for Water Use Credit Transfer:
1.
Administrative
fee to receive, process, monitor, review and enforce transfer applications
pursuant to Rule 28: $2,240 (for first thirty-five (35) hours of staff time;
$70 per hour for each matter that requires additional time in excess of
thirty-five (35) hours. A separate fee shall be assessed for each
transfer site.
2.
Administrative fee to monitor and review water permit applications
receiving water from a Rule 28 transfer: $700 (for first ten (10) hours
of staff time; $70 per hour for each matter that requires additional time in
excess of ten (10) hours. A separate fee shall be assessed for each
transfer site.
G.
Fee for Review of New or Unproven Water
Saving Technology:
1.
Administrative
fee to review projects that utilize new water saving technology prior to
submittal of a complete water permit application: $2,800 for the first forty
(40) hours of staff time; $70 per hour for each matter that requires additional
time in excess of forty (40) hours.
a.
Prior
to approval of water savings associated with new water saving technology, the
applicant shall pay any additional fees incurred by the District for
independent verification of water savings associated with the new technology.
Applicant shall be given an estimate of the cost of any additional review and
shall
