ITEM:		PUBLIC HEARINGS
13.	CONSIDER FIRST READING OF ORDINANCE NO. 141 AMENDING AND REVISING REGULATION XIV -- WATER CONSERVATION--TO UPDATE AND CLARIFY LANGUAGE AND ADD NON-RESIDENTIAL AND LANDSCAPE WATER EFFICIENCY REQUIREMENTS
Meeting Date:			October 19, 2009	Budgeted:	N/A
From:			Darby Fuerst	Program/		N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Pintar	Cost Estimate:	N/A
General Counsel Review: Yes
Committee Recommendation: By a vote of 2-0 on October 1, 2009, the Water Demand Committee recommended the proposed revisions to the Conservation Regulation be bifurcated to delay requirements for High Efficiency Toilets and impacts to Residential Water Credits until after the State Water Resources Control Board takes action on the pending Cease and Desist Order against California American Water. The District’s Technical Advisory Committee (TAC) and the Policy Advisory Committee (PAC) reviewed and supported draft Ordinance No. 141 at the October 12, 2009 meetings.
CEQA Compliance: Categorical Exemption under Class I, §15301

SUMMARY: The proposed ordinance updates the District’s conservation standards and is in keeping with the District’s goal to continue as a leader in water conservation. The proposed amendments are being required through state legislation, are considered Best Management Practices by the California Urban Water Conservation Council, or have been identified as significant areas of water use and potential conservation (i.e., washing machines, pre-rinse spray valves, cooling towers, outdoor irrigation). Water saved through conservation requirements reduces the amount of water needed to serve the community, contributes to community compliance with regulatory restrictions, and provides improved environmental conditions.

Draft Ordinance No. 141 (Exhibit 13-A) is a condensed version of an ordinance discussed by the Board on September 21, 2009. The ordinance amends and clarifies Regulation XIV, Water Conservation, which was adopted as Ordinance No. 30 in 1987. The draft ordinance discussed by the Board at the September Board meeting included new mandates for toilets and other appliances for Residential New Construction and Change of Ownership/Use. At that time, the Board noted the potential loss of existing Residential Water Credits when new requirements are adopted and referred the ordinance back to committee (Water Demand Committee and PAC/TAC) for further discussion.

The Water Demand Committee met and discussed the ordinance on October 1, 2009. The committee requested that the comprehensive Regulation XIV ordinance be bifurcated, with the proposed revisions that impact Residential Water Credits delayed until after the State Water Resources Control Board (SWRCB) takes action in October 2009 on the pending Cease and Desist Order. Staff has accommodated this request in Ordinance No. 141 by removing new requirements for High Efficiency Toilets or HETs (average flush of less than 1.3 gallons) and appliances and by deleting other policy changes that would have impacted Residential Water Credits.

The draft ordinance was reviewed by the Policy Advisory Committee (PAC) and Technical Advisory Committee (TAC) on October 12, 2009. The joint PAC/TAC recommended the Board proceed with first reading of Ordinance No. 141, as amended. The committee asked that the Board not consider new HET requirements and other high efficiency requirements that affect Residential Water Credits.

The elements of the ordinance have been provided to various community interest groups, including the Monterey County Hospitality Association, the Monterey Commercial Property Owners Association, the Monterey County Association of Realtors, National Association of the Remodeling Industry, and the Monterey Peninsula Chamber of Commerce, Pacific Grove Chamber of Commerce, and the Builder’s Exchange of the Central Coast.

DISCUSSION: The following points briefly summarize the substantive amendments proposed by this ordinance. Proposed Ordinance No. 141:

1. Adds, revises and deletes definitions in Rule 11.

2. Simplifies, updates and revises existing language within Regulation XIV to make the regulation easier to understand.

3. Removes or relocates misplaced and outdated rules.

4. Adds a timer requirement for new installations of multiple showerheads.

5. Amends the showerhead flow rate from 2.5 to 2.0 gallons per minute (gpm).

6. Requires compliance with California Model Water Efficient Landscape Ordinance as revised (California Code of Regulations, Title 23, Water, Division 2, Department of Water Resources, Chapter 2.7, Model Water Efficient Landscape Ordinance) or with local or District landscape requirements if more restrictive.

7. Adds Irrigation System requirements for New Construction and encourages use of rainwater catchment systems and graywater systems.

8. Adds a variety of water efficient Non-Residential New Construction requirements that apply to only applicable situations. Examples include: High efficiency washing machines and commercial dishwashers; use of recirculating or air cooled technology in place of single-pass water use systems in ice machines, hydraulic equipment, refrigeration condensers, X-ray processing equipment, air compressors, vacuum pumps, etc.; conductivity controllers in cooling towers; boilerless or connection steamers when installed in New Construction; and implementation of Best Management Practices to the extent possible.

9. Change of Ownership or Use will be required to retrofit Urinals to 1.0 gpf, replace older pre-rinse spray valves with water efficient 1.6 gpm spray valves until July 1, 2010 (when water efficient pre-rinse spray valves become mandated), and install a Rain Sensor on Irrigation Systems that are not Smart Controllers.

10. Requires all Visitor-Serving Facilities by December 31, 2012 (3 years) to be retrofitted exclusively with High Efficiency Urinals, High Efficiency Washing Machines, and Water Efficient Ice Makers. There is an exception when the Washing Machine or ice maker meets Energy Star specifications and was purchased and installed between January 1, 2007 and January 1, 2010: These appliances must comply with this provision by January 1, 2020.

11. Adds a requirement for Non-Residential uses to retrofit to HET by December 31, 2012 with certain exceptions;

12. Directs that Non-Residential laundries must operate exclusively with Ultra-Low Consumption Washing Machines rated with a Water Factor of 5.0 or below by December 31, 2012. There is an exception to this rule when the existing appliance was purchased between January 1, 2006 and January 1, 2010 and rates a Water Factor of 5.1-6.0: These appliances must comply with this provision by January 1, 2020;

13. Adds a requirement for Mobile Water Distribution Systems to utilize water meters at the Source of Supply;

14. Newly installed medical or laboratory photographic and/or X-ray processing systems will be required to have a recirculation system for the rinse process;

15. Towel and linen reuse programs will be required in Visitor Serving Facilities;

16. The ordinance adds existing messaging requirements to Regulation XIV that are currently in the District’s Water Waste and Non-Essential Water Use definitions.

RECOMMENDATION: Staff recommends the Board approve first reading of Ordinance No. 141. As written, the ordinance would take effect on January 1, 2010. Projects in process with the land use jurisdiction on December 31, 2009 will be subject to the District’s current requirements.

The District’s proactive conservation program, including the proposed expansion and revisions, is necessary for the continued well-being of the community during our current water supply situation. The proposed revisions to Regulation XIV are intended to reduce consumptive use of potable water and are necessary to bring about further water efficiency within the MPWMD. This action benefits the community and the environment. Rebates for the required Non-Residential elements of the ordinance will be available upon adoption of Ordinance No. 140.

BACKGROUND: The current Regulation XIV was adopted in July 1987 as Ordinance No. 30, implementing one of the first toilet retrofit upon resale programs in the country. Since 1987, it is estimated that the District’s retrofit on resale program has permanently reduced water demand by approximately 680 acre-feet per year. Additional savings have been achieved through showerhead and faucet aerator replacements and through new construction requirements. The last significant revisions to the program were done in 1990 and 1997. In 1990, an amendment deleted an exemption to the retrofit requirement for 3.5 gallons per flush toilets. In 1997, a requirement to retrofit toilets in visitor-serving commercial facilities was added. The existing regulation is outdated in both language and technology, and does not reflect the ongoing water supply issues experienced by the Monterey Peninsula and the state.

Revisions to Regulation XIV discussed by the Board on September 21, 2009, included requirements that would impact the availability of Water Credits for Residential New Construction. Rule 25.5-B disallows Water Use Credits for water savings resulting from mandatory District programs. Water Credits are presently utilized on almost all Water Permits to offset expanded uses as water from the jurisdiction’s allocations is expended, regulatory restrictions continue/increase, and no new water supply is anticipated in the near-term that would loosen the current limitations. Without water from a jurisdiction’s allocation, Water Use Credits and On-Site Water Credits (Rule 25.5) are essentially the only means to add new water fixtures in a home.

EXHIBITS

13-A Draft Ordinance No. 141

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