ITEM:		PUBLIC HEARING
11.	CONSIDER SECOND READING AND ADOPTION OF ORDINANCE NO. 189, AN ORDINANCE OF THE MONTEREY PENINSULA WATER MANAGEMENT DISTRICT BOARD OF DIRECTORS CLARIFYING AND AMENDING RULES RELATED TO DEFINITIONS (RULE 11), WATER DISTRIBUTION SYSTEMS (RULE 21), WATER PERMITS (RULES 23 AND 24), WATER USE CREDITS (RULE 25.5), AND REBATES (RULE 141); DELETING RULE 91 (SHORT TERM VARIANCE); AND REVISING THE TITLE OF REGULATION XV
Meeting Date:			December 13, 2021	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.: N/A
Prepared By:			Stephanie Locke	Cost Estimate:	N/A
General Counsel Review: Completed.
Committee Review: Water Demand Committee unanimously supported the proposed ordinance following review on October 7, 2021.
CEQA Compliance: This ordinance does not constitute a Project as that term is defined by Section 15378 of the California Environmental Quality Act (CEQA) as it is an organizational or administrative activity of government that will not result in direct or indirect physical changes in the environment.

SUMMARY: Ordinance No. 189, attached as Exhibit 11-A, updates, amends, and revises several of the District’s Rules and Regulations. Revisions and edits were discussed by the Water Demand Committee on May 6 and November 7, 2021. The Water Demand Committee also reviewed the proposed rebates for High Efficiency Toilets (HET) and Smart Flowmeters at their December 3, 2021 meeting. The Committee recommendation on Smart Flowmeters has been incorporated into the ordinance for second reading. No change will be made to the HET rebate.

In addition to the ordinance, the Board will consider Resolution 2021-16 on the December 13 Consent Calendar to add the Smart Flowmeter rebate to Rule 141, Table XIV-1 Rebate Amounts.

Draft Ordinance No. 189 is summarized below:

· Ordinance No. 189 adds a definition of a “Public Water System” to Rule 11 as defined by the State Water Resources Control Board, Division of Drinking Water (DDW). This is to facilitate an added requirement to Rule 21 for DDW preliminary approval prior to District consideration of a Water Distribution System Permit. DDW has been critical of small WDS that may not have adequate long-term water supply.

· Ordinance No. 189 adds a definition for “Smart Flowmeters” to facilitate the addition of a rebate to Rule 141. Smart Flowmeters electronically monitor water use and report anomalies via a smartphone or web-based application. Cal-Am is supportive of this addition to the rebate program. Rebates for Cal-Am customers are funded by the ratepayers and are available on a first-come first-served basis as long as funding is available. Details about the rebate program can be found in Rule 141.

· Ordinance No. 189 amends the Water Factor for High Efficiency Clothes Washers and High Efficiency Dishwashers to be consistent with the factors used in the U.S. Environmental Protection Agency’s Energy Star program. The District requires Energy Star certification for these appliances when the appliance is required as a condition of a Water Permit and for rebate qualification.

· Ordinance No. 189 clarifies language related to the processing of Water Permits for Non-Residential tenant improvements. It also amends (for clarity) language related to submetering and reporting requirements.

· Ordinance No. 189 allows permanent submetering in Multi-Family Dwelling units or Residential Common Interest Developments of more than four units and the project’s common areas. Conditions of approval require reporting at the submeter level to the District upon request, and monthly or more frequently during water rationing. This action replaces previous variance consideration at the Board level under the definition of Special Circumstances, as submetering technology allows for individual User accountability, reporting, and billing, and does not undermine the intent of District law to promote conservation and User accountability. It should be noted that required submeters do not qualify for the new Smart Flowmeter rebate.

· Ordinance No. 189 codifies a process whereby the District issues a Water Permit waiver when requested by a Jurisdiction or Applicant.

· Ordinance No. 189 establishes criteria for use of a Mobile Water Distribution System for filling a Swimming Pool.

· Ordinance No. 189 codifies the practice that there is no change in Capacity when a High Efficiency Clothes Washer is installed in a Multi-Family Dwelling or Common Interest Development. High Efficiency Clothes Washers are required in Common Laundry Rooms at Multi-Family Residential and Common Interest Development Sites, and it is assumed that they are used by the tenants/occupants: For this reason, locating a High Efficiency Clothes Washer within an existing Dwelling Unit in a Multi-Family Dwelling does not increase Capacity.

· Ordinance No. 189 specifies that no credit or reduced Water Use Capacity shall be granted to a Non-Residential User who proposes to locate/relocate a component of that business to an out-of-District location or to another Water Distribution System. For example, no credit would be granted for a hotel use when laundry is washed at another location.

· Ordinance No. 189 deletes Rule 91, Short Term Variance, as the rule is obsolete.

· Ordinance No. 189 allows a rebate for the replacement of High Efficiency Dishwashers and Ultra-High Efficiency Toilets when they are replaced at least ten years after the initial Rebate.

RECOMMENDATION: The Board will consider adoption of Ordinance No. 189. If adopted, the ordinance will become effective January 1, 2022.

EXHIBIT

11-A Ordinance No. 189

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