ITEM:		PUBLIC HEARING
9.	CONSIDER SECOND READING AND ADOPTION OF ORDINANCE NO. 151--AMENDING DEFINITIONS, THE RESIDENTIAL FIXTURE UNIT COUNT, HIGH EFFICIENCY APPLIANCE CREDITS, THE VARIANCE PROCESS, WATER EFFICIENCY STANDARDS AND THE LANDSCAPE WATER AUDITS RULE
Meeting Date:			November 19, 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: Yes
Committee Recommendation: Water Demand Committee recommended approval (July 23, 2012)
CEQA Compliance: Negative Declaration

SUMMARY: Draft Ordinance No. 151 (Exhibit 9-A), amends rules and regulations related to fixture unit values, High Efficiency Appliance Credits, water efficiency standards, variances and Landscape Water Audits. The ordinance was originally slated for first reading at the April 16, 2012 board meeting. The following summary reviews the actions proposed by Ordinance No. 151:

1. Section Three: Definitions (Rule 11)

“Alternative Water Sources” and “Open Space” are defined.

2. Section Four: Amendment of Rule 24, Table 1, Residential Fixture Unit Count

A. Table 1 is amended to delete Ultra-Low Flush Toilets (ULFT) and 1 gallon per flush (gpf) Urinals, consistent with amendments to Rules 142 and 143. The Residential fixture unit value for one gallon per flush Urinals is deleted for consistency with existing Non-Residential standards. Staff estimates there have been less than five Urinals installed in Residential projects over the past twenty years.

An alternative Table 1 is proposed as Exhibit 9-B that does not delete ULFT. This alternative is explained under the “discussion” section, below.

B. Table 1 is amended to add a fixture unit value of 0.8 fixture unit for Ultra High Efficiency Toilets (UHET). There are already fixture unit values for High Efficiency and Zero Water Consumption Urinals.

C. One gallon Urinals are deleted from the Residential fixture unit count, consistent with Rule 142.

3. Section Five: Amendment of Rule 24-B-1-c (Non-Residential Calculation of Water Use Capacity)

A. Rule 24-B-1-c is amended to correct an oversight during the adoption of Ordinance No. 144 when the use of Estimated Total Water Use (ETWU) was added to the rule for consistency with the State Model Water Efficient Landscape Ordinance. This edit makes the calculation of outdoor water use for Non-Residential use consistent with the Residential calculation.

4. Section Six: Amendment of Rule 25.5

A. Rule 25.5-B is amended to allow continued use of Table 4 (High Efficiency Appliance Credits) for New Construction of New Structures. This is an amendment following first reading to mitigate for situations where a structure is demolished and rebuilt using Water Use Credits.

B. Table 4 is amended to delete the 0.4 fixture unit credit for High Efficiency Toilets (HET) and add a 0.5 fixture unit credit for UHET. However, the table reflects that credit for HET will remain available until December 31, 2013, when it becomes the State of California standard.

An alternative Table 4 is proposed in Exhibit 9-B that maintains the credit for HET after December 2013. This alternative is explained in the “discussion” section, below.

C. Table 4 is amended to clarify that credit for Instant-Access Hot Water Systems (IAHWS) is available for more than one Dwelling Unit on a Site on a Multi-Family Residential Site (i.e., condominiums, apartments, duplexes, etc.). Single Family Residential Sites with plumbed ancillary buildings that have hot water are required to install IAHWS in those structures as well as in the primary Dwelling Unit to receive this credit. Note that this amendment affects only the availability of a High Efficiency Appliance Credit. It does not change the requirement for IAHWS in New Construction.

D. The term “washing machine” is replaced with “Clothes Washer,” consistent with terminology used throughout the rules.

5. Section Seven: Amendment of Rule 90, Variance

A. Rule 90 is amended to clarify that a variance to Regulation II, Permits, must be requested no later than 90 days after an appealable decision. This responds to Board direction from August 15, 2011, regarding a request for a variance from District Rule 23, 17 years after a Water Permit was issued.

B. Outdated language (the last sentence) in the first paragraph of Rule 90 is deleted.

6. Section Eight: Amendment of Rule 142-B, Water Efficiency Standards

A. The introductory paragraph to Rule 142 is amended to reflect changed implementation dates and “grandfathering” of requirements for Water Permits issued prior to the Ordinance No. 151 implementation date.

B. HET replaces ULFT as the District’s toilet standard for Residential and Non-Residential New Structures, Changes of Ownership, Changes of Use, and Expansions of Use. There is an exemption to the HET retrofit requirement for Change or Ownership or Use when ULFT were installed prior to the effective date of this ordinance.

C. The rule is amended to clarify that Showerheads must be designed and manufactured to meet the District’s flow requirement of 2.0 gallons per minute. This is to avoid situations where the Showerhead is restricted to meet the requirement and then later altered to allow a higher flow rate.

D. The requirement for three-minute timers on multiple Showerheads is deleted. High Efficiency Clothes Washers (HECW) and High Efficiency Dishwashers are added as requirements in Residential New Construction of New Structures.

E. Utility Sinks and Bar Sinks are included in the 2.2 gallons per minute (gpm) flow requirement.

F. Alternative Water Sources for indoor toilet flushing and other uses allowed by a Jurisdiction is added as a practice to encourage on the list of Non-Residential Water Efficiency Standards.

G. The Non-Residential Water Efficiency Standards for New Structures is amended to add an increased flow rate (consistent with building code) for private Lavatory Sinks (e.g., hotel or motel guest rooms and hospital patient rooms). All other sinks are restricted to 2.2 gpm.

H. High Efficiency Urinals (or ones that uses less water) are added as a standard for Residential and Non-Residential New Construction, Changes of Ownership, Changes of Use, and Expansions of Use.

7. Section Nine: Amendment of Rule 143, Water Efficiency Standards for Existing Non-Residential Uses

A. Rule 143-A is amended to make Showerhead and faucet flow rates consistent with New Construction, Change of Ownership, Change of Use, and Expansion of Use requirements. These flow rates will be required by December 31, 2013.

B. The Rule is amended to require replacement of toilets within the MPWMD with HET or more efficient models after the effective date of the ordinance. The State prohibits the sale or installation of higher flow toilets in California after January 1, 2014. However, by the implementation date (2013), at least 85 percent of toilets for sale in California must be HET, and approximately 95 percent of the toilets currently available for purchase on the Peninsula meet this requirement.

C. Retrofit requirements for Non-Residential uses scheduled for implementation on December 31, 2012, are extended for one year to December 31, 2013. This extension is due to the delay in approval of the Rebate Program funding by the California Public Utilities Commission (CPUC). Rebate funds will be available to accomplish these requirements before the deadline. Subsections E and F of Section 9 of the draft ordinance also extend the retrofit deadlines for High Efficiency Clothes Washers and car washes.

D. High Efficiency Urinals are included in the retrofit requirements for Non-Residential structures.

E. Non-Residential uses with ULFT installed prior to December 31, 2012 are exempt from the requirement to install HET unless the retrofit to HET was triggered by another activity, such as a Water Permit or in lieu compliance with District rules.

F. This ordinance waives the retrofit requirements for HECW if the existing Clothes Washer meets Energy Star specifications and was purchased after December 31, 2006. The requirement for HECW was added by Ordinance No. 141 in November 2009.

8. Section Ten: Amendment of Rule 161, Stage 1 Water Conservation

A. An obsolete date is deleted from Rule 161.

9. Section Eleven: Amendment of Rule 172, Landscape Water Audits^[1]

A. Irrigated public open space is added to the list of California American Water customers that are required to have a Landscape Water Audit and Landscape Water Budget and to comply with those budgets during Stages 2-4 of the Expanded Water Conservation and Standby Rationing Plan. This change is primarily to achieve Landscape Water Audits and Landscape Water Budgets for irrigated public parks and open space areas that do not meet the current definition of a Dedicated Irrigation Meter. In most cases, these Sites have been left out of the program because there is a public restroom on the same meter as the Irrigation System.

The rule is also amended to clarify that Landscape Water Budgets that are required for new Dedicated Irrigation Meters is based on the Estimated Applied Water Use as determined by the project’s Landscape and Irrigation System plans. Two other minor edits related to outdated information are made to Rule 172-B.

B. Rule 172-E, Landscape Irrigation Restrictions, is amended to clarify the location of a property in the City of Carmel-by-the-Sea.

DISCUSSION: Director Byrne asked for alternative language to Tables 1 and 2 that would extend the Water Use Credit for installation of HET beyond December 31, 2013. Staff has provided these amendments as Exhibit 9-B for consideration during second reading. As of January 1, 2014, state law will mandate the sale and installation of only HET. The proposed amendments to Table 1 and Table 4 would allow a property owner with ULFT (or higher flush toilets) to continue to receive a Water Use Credit for replacement of a non-HET. Staff has also rounded up the credit to one-half fixture unit from 0.4 fixture unit. Director Byrnes request would support modest remodels during the remainder of the Cease and Desist Order.

Between first and second reading, staff also identified a need to modify language in Rule 25.5 to accommodate increased conservation requirements for New Construction of New Structures. Specifically, High Efficiency Dishwashers and Clothes Washers were added to the requirements in place of Showerhead timers. However, by adding these appliances to Rule 142, they no longer qualify for a Water Use Credit. Although this does not affect construction on vacant lots, it does affect reconstruction of previously demolished homes. To mitigate this impact, staff added an exception for Table 4 retrofits to Rule 25.5-B. This amendment is shown in Section 6-A of the proposed ordinance.

California Environmental Quality Act

Adoption of a Negative Declaration (Exhibit 9-C) is required prior to adoption of the ordinance. An Initial Study for the April 2012 version of Ordinance No. 151 was prepared and distributed for comment. The comment period ended May 1, 2012, with no comments received. Staff does not believe that the current version of the ordinance has had substantial amendments that would effect the environment since it was reviewed in the Initial Study.

RECOMMENDATION: The Board should receive public comment, consider adoption of the Negative Declaration and approve the second reading of Ordinance No. 151. The effective date of the ordinance is December 31, 2012.

IMPACT ON STAFF/RESOURCES: The changes proposed in this ordinance have minimal impact on staff. Outreach with the Non-Residential users, plumbing suppliers, and others within our community will be necessary, but has already been contemplated. Communication is also needed with the local building industry and with the Jurisdictions. The ordinance may require minor modifications to database programming. Funding for database programming is in the Fiscal Year 2012-2013 budget.

BACKGROUND: A comparable ordinance to this version of Ordinance No. 151 was reviewed by various committees earlier this year. The Water Demand Committee reviewed draft Ordinance No. 151 on March 29, 2012 and July 23, 2012, and the ordinance was reviewed by the Policy and Technical Advisory Committees on April 3, 2012. The CPUC Division of Ratepayer Advocates (DRA) and California American Water were also provided with copies of the draft ordinance. DRA and California American Water staff supported the amendments. District staff also met with representatives of a number of local Non-Residential users (i.e. the Monterey County Hospitality Association and the Coalition of Monterey Peninsula Businesses which represents entities such as the Monterey Commercial Property Owners’ Association; Monterey County Association of Realtors; Chambers of Commerce of Carmel, Monterey Peninsula, and Pacific Grove, and Community Hospital of the Monterey Peninsula) to review and discuss the proposed amendments. The amendments to Rule 143 are acceptable to these groups.

EXHIBITS

9-A Draft Ordinance No. 151.

9-B Amendments to Tables 1 and 4

9-C CEQA Negative Declaration

U:\staff\Boardpacket\2012\20121119\PublicHrng\09\item9.docx

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^[1] These amendments are acceptable to the Public Utilities Commission’s (PUC) Division of Ratepayer Advocates.