ITEM:		PUBLIC HEARING
15.	CONSIDER FIRST READING OF ORDINANCE NO. 177 – AMENDING RULES 11, 23, 23.5, 24, 25.5, 141, 142, 143, 144, AND 154 (CEQA SECTION 15063 INITIAL STUDY; NEGATIVE DECLARATION WILL BE PRESENTED AT SECOND READING PURSUANT TO CEQA SECTION 15070.)
Meeting Date:			August 21, 2017	Budgeted:	N/A
From:			David J. 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 concept ordinance on February 13, 2017.
CEQA Compliance: CEQA Section 15063 Initial Study; Negative Declaration will be presented at second reading pursuant to CEQA Section 15070.

SUMMARY: Attached as Exhibit 15-A is Ordinance No. 177, “2017 Rule Amendment Ordinance.” This ordinance amends and clarifies certain actions necessary to process, issue, and enforce requirements related to Water Permits, Water Use Permits, water efficiency requirements and Rebates. This ordinance also updates the calculation of capacity fees to include the full California American Water system and adds a Rebate for Meter Splits at Multi-Family Residential Sites.

The concepts in this ordinance were reviewed by the Water Demand Committee in February 2017. An Initial Study has been prepared and will be circulated for review prior to second reading. It is anticipated that a Negative Declaration will be appropriate for this ordinance.

DISCUSSION: Due to the light agenda for the August Board Meeting, staff recommends the ordinance be reviewed prior to the meeting with a copy of the Rules and Regulations available for reference. To keep the ordinance shorter, only pertinent portions of most rules are included.

The following summarizes the sections of Ordinance No. 177:

1. Rule 11 (Definitions) is amended to clarify definitions for “Expansion of Use,” “Irrigation Design Plan”, “Landscape Design Plan”, “Meter Split”, “Mixed Use”, “Site”, “Single-Parcel Connection System”, “Sub-Potable Water” and “System Limits and to delete the definitions for “On-Site” and “Permit.”

2. This ordinance amends Rule 23-A-1 to explain the procedure for removal of an unpermitted water fixture.

3. This ordinance clarifies Rule 23-B and adds a diagram showing how to plumb the fire and domestic service lines after the Water Meter. This methodology was agreed to between the local fire departments and California American Water in 2010.

4. Rule 23.5 is amended to remove/amend outdated language and to update the Rule to follow current agreements.

5. Rule 24 is amended to include the entire California American Water Service Area as all areas equally benefit from planning for, acquiring, reserving, and maintaining capacity in the water distribution facilities existing or to be constructed within the District.

6. Rule 25.5 is amended to clarify the date a Water Use Credit is established and to clarify that only lawfully installed water fixtures qualify for a Water Use Credit.

7. Rule 32 is amended to reflect current Production Limits for the California American Water system.

8. Rule 141 is amended to delete duplicative language, to reduce Rebates for toilets, to delete ice machines as efficient machines are a requirement, and to add a Rebate for Multi-Family Residential Meter Splits to encourage individual accountability for water use. This Rule is also amended to allow a second or subsequent Rebate for maintaining a High Efficiency Clothes Washer after the lifetime of the previously-Rebated machine in accordance with the recommendation of Consumer Reports.

9. This ordinance amends Rule 144 to allow an extension of six months after purchase or change in use to meet the requirements of Rule 142, and allows six month extensions until completion of the Remodel.

10. This ordinance deletes Rule 154 and moves the conservation message requirements to Rules 142 and 143.

RECOMMENDATION: Staff recommends approval of first reading of Ordinance No. 177.

EXHIBIT

15-A Draft Ordinance No. 177

U:\staff\Boardpacket\2017\20170821\PubHrngs\15\Item-15.docx