ITEM:		PUBLIC HEARING
13.	CONSIDER SECOND READING AND ADOPTION OF ORDINANCE NO. 177 – AMENDING RULES 11, 23, 23.5, 24, 25.5, 141, 142, 143, 144, AND 154, AND CONSIDER ADOPTION OF NEGATIVE DECLARATION (CEQA SECTION 15063 INITIAL STUDY; CEQA SECTION 15070 NEGATIVE DECLARATION)
Meeting Date:			September 18, 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; CEQA Section 15070 Negative Declaration

SUMMARY: Attached as Exhibit 13-A is Ordinance No. 177, “2017 Rule Amendment Ordinance.” Ordinance No. 177 is a “clean up” ordinance that clarifies MPWMD Rules and Regulations. Elements of the ordinance were discussed and supported by the Water Demand Committee in February 2017. The ordinance explains the procedure to remove unpermitted water fixtures; adds a diagram to demonstrate the split of the fire and domestic service on the customer side of the meter; permits non-residential Pebble Beach benefited properties after fulfilling bonds that limited use only to residential properties to qualify for tax exemption; clarifies that the capacity fee paid by the Cal-Am satellite systems is the same as the main system; updates the setting of the Cal-Am production limit to reflect the current process; updates the Rebate Program by deleting duplicative language, removing ice machines, adding a rebate for multi-family residential meter splits and adding a rebate for replacement of a high efficiency clothes washer after a minimum of eight years; relocates conservation messaging requirements; and increases the time allowed to retrofit after the sale of a property when the property is being remodeled from four to six months.

California Environmental Quality Act (CEQA) Review

An Initial Study and Notice of Intent to Adopt a Negative Declaration were circulated in compliance with CEQA for a 20-day period from August 28, 2017 through September 16, 2017. Should any significant comments be received, staff will provide this information to the Board for consideration at the September meeting. A copy of the Initial Study can be found on the District’s website under “Public Notices.”

Based on the Initial Study, staff believes that there is an absence of substantial evidence from which a fair argument can be made that adoption of Ordinance No. 177 has measurable and meaningful actual or potential adverse environmental consequences. The adoption of Ordinance No. 177 would have less than significant environmental impacts as it is amending existing rules to clarify processes and policy related to Water Permits and water conservation. CEQA requires preparation of a negative declaration if there is no substantial evidence that the project may cause a significant effect on the environment (CEQA Guidelines §15063(b)(2)).

RECOMMENDATION: The Board should adopt the following finding in compliance with CEQA. This finding will be forwarded to the Monterey County Clerk:

Based upon completion of an initial study, MPWMD finds that there is no substantial evidence that the project would have a significant effect on the environment.

The Board should also adopt the second reading of Ordinance No. 177. This ordinance will be effective 30 days after adoption.

EXHIBIT

13-A Draft Ordinance No. 177

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