POLICY ADVISORY COMMITTEE/TECHNICAL ADVISORY COMMITTEE
2.	DEVELOP RECOMMENDATION TO THE BOARD REGARDING FIRST READING OF ORDINANCE NO. 137 – AMENDING REGULATION XV, EXPANDED WATER CONSERVATION AND STANDBY RATIONING PLAN
Meeting Date:		November 4, 2008	Budgeted:	N/A
From:		Darby Fuerst,	Program/	N/A
		General Manager	Line Item No.:
Prepared By:		Stephanie Pintar	Cost Estimate:	N/A
General Counsel Approval: Reviewed and approved current draft
CEQA Compliance: Exempt

SUMMARY: As part of a Settlement Agreement between MPWMD and California American Water (CAW), MPWMD agreed to amend Regulation XV, the Expanded Water Conservation and Standby Rationing Plan, to address both regulatory rationing in the event of a significant legally compelled reduction in supply and the suspension of water banking until either MPWMD or CAW is able to operate a banking system, as well as to ensure consistency in noticing requirements and compliance triggers. The District also agreed to amend its definition of the Monterey Peninsula Water Resource System to include the Laguna Seca Subarea, in which the Ryan Ranch, Bishop and Hidden Hills subsystems of CAW operate. This latter action was taken at the September 22, 2008 Board meeting with the adoption of Ordinance No. 135. The remaining agreed-upon actions have been addressed in Ordinance No. 137 (Exhibit 2-A).

The Technical Advisory Committee reviewed the concept ordinance at its October 7, 2008 meeting. The TAC supported the ordinance for first reading by the Board at the October 20, 2008 meeting.

DISCUSSION: The Board reviewed draft Ordinance No. 137 at the October 20, 2008 Board meeting and referred the ordinance to the Water Demand Committee and to the Technical Advisory Committee and Policy Advisory Committee for review prior to first reading on November 17, 2008.

The following is a rule-by-rule overview of the significant changes to Regulation XV effected by Ordinance No. 137. In general, the language of Regulation XV has been cleaned up to remove redundancy and unnecessary language. In some cases, portions of a rule that have been deleted have been relocated to the findings (e.g. Rule 161-A). The full text of Regulation XV can be found in the draft ordinance (Exhibit 2-A).

Rule 11 – Definitions

1. The definition of CAW’s subsystems as “Satellite Systems” has been deleted in response to requests by representatives of customers in the Bishop and Hidden Hills systems to be defined as separate water distribution systems. In place of “Satellite Systems,” Ordinance No. 137 defines the individual subsystems, namely Bishop, Hidden Hills and Ryan Ranch.

2. A definition for the Seaside Watermaster has been added.

3. The following definitions were clarified: Large Residential Water User, Main California American Water System, Mixed Use and Mobile Water Distribution System.

Rule 160 – General Provisions

1. Rule 160 identifies an additional conservation response to comply with regulatory restrictions at Stage 4.

2. Rule 160 identifies a regulatory trigger in Stages 5-7.

3. Rule 160 eliminates the Unaccounted For Water Use exemption for the CAW subsystems, making the Board’s current standard of 7 percent apply to all CAW systems. Note that actual unaccounted for water use is used for purposes of determining Water Rations. This is necessary to ensure that Water Rations are based on actual average system-wide water losses.

Rule 161-163, Conservation Stages 1-3

1. Tables XV-1 and XV-2 have been amended to correct a rounding error adopted with Ordinance No. 135.

2. The Emergency Trigger for Stage 3 may apply to any Water Distribution System upon adoption of a Resolution of the Board.

3. CAW is required to notify its customers 30-days prior to implementation of emergency rates in keeping with California Public Utilities Commission (CPUC) requirements.

Rule 164 – Stage 4

1. A Stage 4 trigger has been added for non-compliance with known regulatory limits addressed through Stage 3. This Stage 4 trigger affects all water users that are in Stage 3 when production continues to exceed the targets set forth in Table XV-1. This provision of Stage 4 impacts any Water Distribution System that relies, in whole or in part, on production or production offsets from the Main California American Water System.

2. A Stage 4 trigger has been added for a final legal order that results in a reduction in supply of up to 15 percent. This trigger impacts any Water Distribution System that relies, in whole or in part, on production or production offsets from the Main California American Water System if that system is restricted, or this provision applies to any Water Distribution that is subject to this type of legal action.
3. When Stage 4 is triggered, the Water Distribution System Operator must notify all Large Residential Water Users, Dedicated Landscape Irrigation Meter customers, irrigators of three (3) or more acres, and customers who use more than twelve (12) units per month on average of the immediate need for them to reduce outdoor water use and irrigation to the greatest extent possible.

4. Sunset of Stage 4 may occur without Board action when regulatory compliance has been achieved.

5. Sunset of Stage 4 may result in implementation of a lower Stage as necessary for good cause.

6. Additional water waste enforcement efforts have been added to Stage 4.

Rule 165 -167, Rationing Stages 5-7

1. The most significant addition to Stages 5-7 is a trigger for rationing in response to a final court action forcing production cutbacks in any Water Distribution System that relies on production from the Main California American Water system in any way. For example: Reductions in the production levels of 16-34% would result in Stage 5; reductions of 35-49% would result in Stage 6; and reductions of 50% or more would result in Stage 7. Reduction ranges are carried through Stage 7.

2. Regulatory rationing as a result of a final legal order that restricts production would apply to the Laguna Seca Subarea water systems as long as those systems rely on the main system to offset their use to avoid replenishment fees or to provide emergency water supply. At this time, the CAW subsystems (i.e., Bishop, Hidden Hills and Ryan Ranch) are limited to 345 acre-feet annually (AFA). During Water Year 2008, the subsystems produced 533 AF. There are options for CAW to eliminate the subsystems’ reliance on the main system, such as purchasing water rights from other users, developing new supply, or paying replenishment fees.

3. Regulatory rationing triggered by a final legal order would continue until the triggering order has been lifted or no longer applies to an affected Water Distribution System.

4. Sunset of Stage 5 could result in implementation of any lower Stage for good cause.

5. Notification of Non-CAW Water Distribution Systems will occur by published notice rather than by individual letters. During Stage 4, MPWMD collects necessary information from other Water Distribution Systems in preparation for Stage 5 and above.

6. Unaccounted For Water Use for rationing is calculated using the actual average for the preceding 12 months, rather than by using the Board’s Unaccounted For Water Use standard of seven percent. This is necessary to accurately account for water use and to fairly determine water rations. This action was agreed to in the August 11, 2008 Settlement Agreement.
7. Water Distribution Systems with 10 or more connections have a “ration” for Unaccounted For Water Use. There are 11 systems that meet this standard in the MPWMD.

8. The methodology for setting Non-Residential Water Rations has been expanded to include Landscape Water Budgets and BMP audits by MPWMD and CAW.

9. The ration for mixed use customers was clarified to include an increment of water for each Residential Water User in the Mixed Use.

10. Golf course rations are set using the Landscape Water Budget. Recycled Water User’s rations are calculated using the methodology approved in previous contracts.

11. The Stage 5 Moratorium (Rule 165-F) adds language to recognize Water Entitlements issued by the District in keeping with the contractual agreements.

12. A minimum per person ration of 35 gallons per day has been set for each of the three rationing Stages. This standard is listed in the 2008 Drought Urban Guidebook published by the State of California, Department of Water Resources, Office of Water Use Efficiency and Transfers and applies to “inside residential use”. The data are from the Tampa (Florida) Water Department Residential Water Conservation Study: The Impacts of High Efficiency Plumbing Fixture Retrofits in Single-Family Homes, January 8, 2004. In the event that the minimum standard is set in any rationing stage, customers unable to meet the health and safety targets will receive information or a home water audit that helps them to find and repair leaks.

13. Board adoption of additional water use restrictions by Resolution has been added to each of the three rationing Stages. The language in the ordinance includes a number of suggested conservation measures that the Board may consider.

Rule 168 – Water Banks

1. In compliance with the August 11, 2008 Settlement Agreement, Water Banks are suspended until (a) CAW completes the installation of its new computer system and completes the programming needed to calculate Water Banking credits; or (b) MPWMD completes computer programming needed to calculate Water Banking credits; or (c) December 31, 2010, whichever occurs first.

2. During the suspension of Water Banking, Water Users shall be excused the first time a Water Ration is exceeded in a Ration Year. Second and subsequent offenses are enforced.

Rule 169 – Water Rationing Variance

Mandatory Conditions of Approval have been added to the rationing variance section. These include installation of low water consumption technology and drip irrigation when an irrigation system is installed. The toilet standard is 1.6 gpf.

Rule 172 – Landscape Water Audits

1. A requirement that Landscape Water Audits and Budgets be completed when a Dedicated Irrigation Meter is installed has been added to Rule 172.

2. A clear procedure for CAW to review and identify customers that require Landscape Water Audits and Landscape Water Budgets has been added.

3. A response time for customers to contact CAW to arrange for an audit has also been added.

4. The water schedule for properties that have a professional gardener has been clarified so that sprinkler irrigation overseen by a professional gardener or landscaper who is available on Site may occur between 9 a.m. and 5 p.m., but is not to exceed two watering days per week. Currently, there is no restriction on the number of days a property can use sprinklers during the day if a gardener is present.

Rule 175 – Water Rationing Enforcement

A flow restrictor exemption has been added for Mixed Use meters to avoid conflicts with the minimum Residential Water Ration.

Rule 23-B-2 – Mandatory Conditions for Action on an Application for a Water Permit to Connect to or Modify an Existing Water Distribution System

Requirements adopted in Ordinance No. 135 (August 18, 2008) requiring separate water meters for outdoor irrigation and fire protection are relocated to Rule 23-B-2 from Rule 161-F and Rule 161-G.

RECOMMENDATION: The Policy Advisory Committee and Technical Advisory Committee should discuss the revised ordinance. The committee should also make a recommendation to the Board regarding consideration of first reading of the ordinance at the November Board meeting.

IMPACT ON STAFF/RESOURCES: Staff has not identified any impacts to staff or resources related to the proposed revisions.

EXHIBITS

2-A Revised Draft Ordinance No. 137

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