EXHIBIT 16-A

DRAFT

ORDINANCE NO. 127

AN ORDINANCE OF

THE MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

EXPANDING THE REBATE PROGRAM TO INCLUDE REBATES FOR HIGH EFFICIENCY TOILETS AND ZERO WATER CONSUMPTION URINALS

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. The Water Management District approved a toilet replacement rebate program when it adopted the Action Plan for Water Supply Alternatives in February 1996. The Action Plan addressed the need for water supply projects to meet the water supply needs of the Monterey Peninsula following voter rejection of District financing for the New Los Padres Water Supply Project in November 1995.

4. California State Water Resource 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 supplied to Cal-Am users at that time. The SWRCB has set specific goals to reduce water diversions from the Carmel River Basin.

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

6. Seaside v. Cal-Am; Case No. M 66346, resulted in judgment that determined that the Operating Yield for the next three (3) years for the Seaside Basin, as a whole, is 5,600 acre feet (Coastal Sub area is 4,611acre feet and 989 acre feet for the Laguna Seca Sub area). “Over-Production” is any Production which exceeds an initially Natural Safe Yield of 3,000 AFY. Water conservation is a component to achieving the Natural Safe Yield.

7. The rebate program contributes to water savings throughout the MPWMD. It is estimated that as of October 31, 2006, the rebate program saves 174.443 acre-feet annually.

8. Cal-Am is a co-sponsor in the District’s rebate program and provides up to fifty (50) percent of the annual rebate fund.

9. Retrofitting of properties located in the Monterey Peninsula Water Resource System benefits the Monterey Peninsula by reducing over-pumping of groundwater that leads to environmental degradation.

10. High Efficiency Toilets are proven to perform equally or better than ultra-low flush (1.6 gpf) toilets.

11. Zero Water Consumption Urinals have been proven successful at reducing water demand in Non-Residential uses.

12. This ordinance modifies Rule 11 to classify urinals that use no water as Zero Water Consumption Urinals.

13. This ordinance substitutes the term Zero Water Consumption Urinal for Waterless Urinals throughout the Rules and Regulations of the District.

14. The replacement of existing facilities is a categorical exemption under Class I, §15301 of the California Environmental Quality Act (CEQA). A Notice of Exemption has been filed in compliance with CEQA.

15. This ordinance complements the provisions of the rebate program enacted by MPWMD Ordinances No. 85, 88, and 110 and shall be read concurrently, with this ordinance superseding any conflicting provisions of the previous ordinances.

NOW THEREFORE be it ordained as follows:

ORDINANCE

Section One: Short Title

This ordinance shall be known as the 2007 High Efficiency Toilet and Zero Water Consumption Urinal Rebate Ordinance of the Monterey Peninsula Water Management District.

Section Two: Statement of Purpose

The Monterey Peninsula Water Management District enacts this ordinance to expand the standards for the toilet replacement rebate program as set forth in Ordinance Nos. 85, 88 and 110. The purpose of this ordinance is to continue and to expand the rebate program by adding High Efficiency Toilets (HET) and Zero Water Consumption Urinals to the list of Qualifying Devices. The previously adopted rebate program shall continue and is reenacted and expanded by this ordinance.

Section Three: Definitions

A Unless the context specifically indicates otherwise, the following words or phrases shall be given the definitions set forth below and shall be permanently added to or deleted from Rule 11, Definitions, of the Rules and Regulations of the District. Revised text is shown in bold italics (bold italics) and strikeout (strikethrough). Numbering is provided for ease of review.

1. HIGH EFFICIENCY TOILET (HET) – “High Efficiency Toilet” or “HET” shall mean a toilet that is designed to flush at 20 percent below a 1.6-gallons-per-flush Ultra-Low Flush Toilet. An HET toilet shall have a maximum average flush of 1.28 gallons.

2. WATERLESS ZERO WATER CONSUMPTION URINAL - “Waterless Zero Water Consumption Urinal” shall mean a fixture, typically attached upright to a wall, used by men for urinating, that uses no water by replacing the water flush with a specially designed trap that contains a layer of immiscible liquid that floats above a urine layer, blocking sewer gas and urine odors from the room.

B. All references to Waterless Urinal(s) in the Rules and Regulations of the District shall be replaced with Zero Water Consumption Urinal(s).

Section Four: Rebate

A. This ordinance adds HET toilets to the list of Qualifying Devices.

B. This ordinance adds Zero Water Consumption Urinals to the list of Qualifying Devices.

C. This ordinance expands the rebate program to all Water Users within the Monterey Peninsula Water Management District.

Section Five: Eligibility

A. Qualifying Criteria. The rebates created by Ordinance Nos. 85, 89, 110 and 127 shall be available to Qualifying Devices installed on Sites supplied by a Water Distribution System that is regulated by the Monterey Peninsula Water Management District.

B. Replacement of Existing Fixtures.

1. Rebates shall not be issued for the replacement of existing qualifying devices.

2. Notwithstanding B-1 above, replacement of an ultra-low flush (1.6 gallons-per-flush) toilet with an HET toilet shall qualify for a rebate.

Section Nine: Publication and Application

The provisions of this ordinance shall cause the republication and amendment of Rule 11 of the permanent Rules and Regulations of the Monterey Peninsula Water Management District. This ordinance shall be read in conjunction with and complement those provisions of the District’s Rules and Regulations. This ordinance shall be read concurrently with Ordinance Nos. 85, 88, and 110, with this ordinance superseding any conflicting provisions of the previous ordinances.

Section Ten: Effective Date

This ordinance shall be given effect at 12:01 a.m. on March 1, 2007.

Section Eleven: Sunset

This ordinance shall not have a sunset date.

Section Twelve: Severability

If any subdivision, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or of any other provisions of the Monterey Peninsula Water Management District Rules and Regulations. It is the District’s express intent that each remaining portion would have been adopted irrespective of the fact that one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.

On motion of Director ____________, and second by Director _____________, the foregoing ordinance is adopted upon this ______ day of _____________, 2007, by the following vote:

AYES:

NAYS:

ABSENT:

I, David A. Berger, Secretary to the Board of Directors of the Monterey Peninsula Water Management District, hereby certify the foregoing is a full, true, and correct copy of an ordinance duly adopted on the ____ day of _________, 2007.

Witness my hand and seal of the Board of Directors this ____ day of _________, 2007.

________________________________

David A. Berger, Secretary to the Board

U:\staff\word\boardpacket\2007\2007boardpackets\20070125\PubHrgs\16\item16_exh16a.doc