ITEM:		PUBLIC HEARING
14.	CONSIDER FIRST READING OF ORDINANCE NO. 169, AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA WATER MANAGEMENT DISTRICT REPEALING REGULATION XV, THE EXPANDED WATER CONSERVATION AND STANDBY RATIONING PLAN, AND REPLACING IT WITH REGULATION XV, THE MONTEREY PENINSULA WATER CONSERVATION AND RATIONING PLAN
Meeting Date:			January 27, 2016	Budgeted:	N/A
From:			Dave Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Locke	Cost Estimate:	N/A
General Counsel Review: Yes
Committee Recommendation: The Water Demand Committee reviewed the draft ordinance on January 24, 2016.
CEQA Compliance: This ordinance is exempt from the California Environmental Quality Act (CEQA) under Water Code §10652. This ordinance is also exempt from the requirements of CEQA under the provisions of CEQA Guideline 15269 (c) and 15282 (w).

SUMMARY: Ordinance No. 169 (Exhibit 14-A) repeals the existing Regulation XV and replaces it with a streamlined conservation and rationing plan. The Monterey Peninsula Water Conservation and Rationing Plan (Plan) consists of four stages, the first stage always being in effect with a focus on water waste and conservation. The second stage is a “call for action” or voluntary rationing whereby a target percentage reduction is determined and the community is asked to do their share to reduce use to meet the target. The third stage implements “conservation rates” in the California American Water Company (Cal-Am) system. The conservation rates are two-level increases in the rates for all users other than Tier 1 residential users. The first level increases rates by 25 percent; the second level increases them by 40 percent. Finally, Stage 4 implements mandatory restrictions on non-essential water use and rations households as the first water rationing measure (residential use is approximately 70 percent of total consumption). If household rationing does not work, non-residential rationing would be implemented along with additional restrictions on non-essential uses. There are variances available for hardship situations and for large households.

The Plan is part of an application currently being considered by the California Public Utilities Commission (CPUC) in application A.15-07-019. MPWMD, as a regulatory agency over California American Water, will direct the company to adopt the District’s plan as their conservation and rationing plan (Rule 14.1.1). The Plan was the subject of two MPWMD public workshops on December 1, 2015 and was a component of the recent Cal-Am workshop on its rate proposal held in Monterey on January 14, 2016. CPUC Public Participation Hearings on Cal-Am’s application are scheduled for January 27, 2015, at Oldemeyer Center in Seaside.

Ordinance No. 169 has been reviewed by the Water Demand Committee.

RECOMMENDATION: Staff recommends the Board approve the first reading of Ordinance No. 169.

EXHIBITS

14-A Draft Ordinance No. 169

Revised Ordinance Presented at the 1/27/2016 Board Meeting

U:\staff\Boardpacket\2016\20160127\PublicHrngs\14\Item-14.docx