ITEM:		PUBLIC HEARING
18.	CONSIDER FIRST READING OF ORDINANCE NO. 157, AN ORDINANCE AMENDING RULE 11 (DEFINITIONS), REVISING RULE 23-A-1-I REGARDING WATER MEASURING DEVICE REQUIREMENTS AND AMENDING THE TITLE OF RULE 144
Meeting Date:			November 18, 2013	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: Completed
Committee Recommendation: On November 6, 2013, the Water Demand Committee referred this ordinance to the Board.
CEQA Compliance: This ordinance does not meet the “project” definition according to CEQA Guideline §15378 (b) (5)

SUMMARY: Draft Ordinance No. 157 (Exhibit 18-A) adds a definition to Rule 11 for the term “Capacity Fee” and clarifies Rule 23-A-1-i, Action on Application for a Water Permit to Connect to or Modify an Existing Water Distribution System.

During consideration of the first reading of Ordinance No. 156 in October 2013, the Board discussed clarification of Rule 23-A-1-i, the paragraph in Rule 23 that references the District’s metering requirements. For reference, the current Rule 23 is attached as Exhibit 18-B and a list of definitions included in this ordinance is attached as Exhibit 18-C. Draft Ordinance No. 157 replaces the existing Rule 23-A-1-i with clearer policy and implements a specific variance process for unique metering situations.

Draft Ordinance No. 157 amends the definition of the term “Connection Charge” to provide a historical context. In addition, an identical definition is added for the term “Capacity Fee.” The ordinance then globally replaces the former with the latter to avoid confusion with the connection charge proposed by California American Water in its 2013 General Rate Case (A.13-07-002).

Finally, Ordinance No. 157 amends the title of Rule 144 - Retrofit Upon Change of Ownership or Use, to reflect that the rule also applies to Expansions of Use.

The proposed ordinance is not a project under CEQA and is therefore not subject to CEQA evaluation. CEQA Guideline §15378 (a) defines a “project” as an action that has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The proposed amendments to Rules 11 and 23 do not contemplate approval of any project, and therefore the ordinance does not meet the “project” definition according to CEQA Guideline §15378 (b) (5) which states: “Organizational or administrative activities of governments that will not result in direct or indirect physical changes to the environment.”

RECOMMENDATION: The Board should receive public comment and approve the first reading of Ordinance No. 157.

EXHIBITS

18-A Draft Ordinance No. 157

18-B Rule 23

18-C Definitions

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