ITEM:		PUBLIC HEARING
13.	CONSIDER FIRST READING OF ORDINANCE NO. 155 – EXTENSTION OF WATER USE CREDITS FOR REDEVELOPMENT PROJECTS
Meeting Date:			October 15, 2012	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Pintar	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: Referred to Board by Water Demand Committee. Technical Advisory Committee (TAC) recommended approval on October 9, 2012
CEQA Compliance: Initial Study completed and circulated. Consideration of Negative Declaration prior to adoption.

SUMMARY: Ordinance No. 121, adopted on August 15, 2005, modified District Rule 25.5 to extend the expiration limit when a Water Use Credit was associated with a Redevelopment Project Site pursuant to California’s Community Redevelopment Law. The modification allowed two additional extensions to a Water Use Credit at these Sites, providing up to twenty years to reuse a credit. As of February 1, 2012, Assembly Bill (AB) 1X 26 abolished redevelopment agencies. This action essentially nullified the District’s definition of Redevelopment Project, which provided the mechanism for extension of the Water Use Credits associated with Jurisdiction-identified redevelopment Sites.

Although the Redevelopment Agencies have been eliminated, redevelopment of previously identified Sites continues to be a high priority by the Jurisdictions. There exist areas that constitute physical and economic liabilities, requiring redevelopment in the interest of the health, safety, and general welfare of the people of these communities. The Cities of Monterey, Seaside and Sand City have Redevelopment Project Sites identified prior to AB 1X 26. Several have ave Water Use Credits that will expire after ten years without adoption of the change proposed in this ordinance.

Ordinance No. 155 (Exhibit 13-A) amends the definition of Redevelopment Project Site to accommodate an extension of Water Use Credits at Sites identified prior to AB 1X 26. This amendment is consistent with the original intent of Ordinance No. 121, which was to facilitate Redevelopment Projects without going through the process of transferring Water Use Credits to a Jurisdiction pursuant to District Rule 28.

RECOMMENDATION: The Board should approve the first reading of Ordinance No. 155.

IMPACT ON STAFF/RESOURCES: None. The Cities of Monterey, Seaside and Sand City will be paying the cost of filing the CEQA notices.

EXHIBIT

13-A Draft Ordinance No. 155 U:\staff\Boardpacket\2012\20121015\PubHrng\13\item13.docx