TECHNICAL ADVISORY COMMITTEE
ITEM:		ACTION ITEMS
3.	review and discuss proposed Draft Ordinance No. 134, an ordinance modifying the definition of the monterey peninsula water resources system and the districts expanded water conservation and standby rationing plan
Meeting Date:			May 6, 2008
From:			Darby Fuerst,
			Interim General Manager
Prepared by:			Stephanie Pintar

SUMMARY: Proposed Ordinance No. 134 (Attachment 3 to Exhibit 3-A) would amend the District rules and regulations to change the definition of the Monterey Peninsula Water Resource System (MPWRS) to include the Northern Inland Subarea and the Laguna Seca Subarea of the Seaside Groundwater Basin. Amending the definition of the MPWRS is necessary to respond to present and threatened water emergencies that will occur when consumption forces production to exceed the legal limits set by the Seaside Basin adjudication decision.

Proposed Ordinance No. 134 would also amend District Regulation XV, the District’s Expanded Water Conservation and Standby Rationing Plan. Specifically, as a result of amending the definition of the MPWRS, all water distribution systems, private wells, or water users who derive their source of supply from the Laguna Seca Subarea would be subject to the District’s water conservation and rationing regulations. This change impacts property within the unincorporated County area along Highway 68 to Los Laureles Grade Road and property in the City of Monterey located in Ryan Ranch.

Other changes proposed in draft Ordinance No. 134 include:

· Requirements for all Non-Residential New Structures receiving a Water Permit after August 1, 2008, to install separate water meters to measure exterior water uses and for fire suppression systems.

· The triggers for Stages 2 and 3, Water Conservation have been modified to be more responsive to increased consumption later in the Water Year. These modified triggers have been coordinated with California American Water (CAW) to match the triggers in CAW’s Rule 14.1.

· Water rationing exemptions are available for superior, unimpaired water rights.

· California Public Utilities Commission (CPUC) approved water rationing rates (currently under consideration) are implemented in Stages 5-7.

· The procedure for Landscape Water Audits and Landscape Water Budgets required in Stage 1 has been amended to reflect the procedure used by MPWMD in its current contracts with the irrigation system auditors. These procedures are modeled after those used by the Irrigation Association.

· The enforcement section has been modified to track with the Administrative Enforcement Ordinance (Ordinance No. 133) currently being considered by the Board of Directors.

DISCUSSION: The impetus for this amendment to Regulation XV is the March 2006 Seaside Adjudication decision whereby CAW water use within its satellite systems within the District (i.e., Bishop, Hidden Hills, and Ryan Ranch) is restricted. Under the decision, CAW’s current production allocation for the Laguna Seca Subarea is 345 acre-feet per year (AFY). This production allocation will be reduced to zero AFY by 2017. Current production for the satellite systems within the District averages approximately 480 AF per year and exceeds the limit specified in the decision. Presently, the satellite systems must reduce demand by almost 30% to remain within the production limit. In Water Year (WY) 2009, the satellite systems will need to reduce demand by more than 40%. By including the Laguna Seca Subarea in the MPWRS, the area becomes subject to the District’s Expanded Water Conservation and Standby Rationing Plan; a plan designed to keep water user within the limits set by the SWRCB and now the Seaside Adjudication.

CAW and MPWMD have been working together to adopt regulations that mirror each other’s rules related to the Expanded Water Conservation and Standby Rationing Plan. CAW submitted amendments to its conservation and rationing rule, i.e., Rule 14.1, to the CPUC as part of Proceeding A.07-12-010. These amendments were coordinated with the District and considered during the drafting of draft Ordinance No. 134. MPWMD and CAW are continuing to work together, along with the CPUC’s Division of Ratepayer Advocates (DRA), to reach agreement on the provisions of these rules.

Draft Ordinance No. 134 is scheduled for first reading at the regular MPWMD Board meeting on May 19, 2008. The Water Demand Committee reviewed this item on April 29, 2008. A public information meeting for water users within the Ryan Ranch, Bishop and Hidden Hills systems is scheduled for May 7, 2008.

BACKGROUND: MPWMD’s Regulation XV, Expanded Water Conservation and Standby Rationing Program, in combination with an extensive public awareness campaign and comprehensive water rate structure for conservation, emergency and rationing rates, has enabled compliance with State Water Resources Control Board (SWRCB) Order WR 95-10 since WY1998. Expansion of Regulation XV is required to include CAW customers receiving water from the Laguna Seca Subarea of the Seaside Groundwater Basin.

RECOMMENDATION: The Technical Advisory Committee should review the amendments to the definition of the Monterey Peninsula Water Resource System and Regulation XV, as shown in draft Ordinance No. 134. The committee should consider a recommendation to the Board.

IMPACT ON STAFF/RESOURCES: The cost impact of amending the Expanded Water Conservation and Standby Rationing Plan is contemplated in the proposed Water Demand Division 2008/09 budget subject to CPUC approval of the conservation proceeding (A.07-12-010).

EXHIBIT

3-A Initial Study and Notice of Intent to Adopt a Negative Declaration for Ordinance No. 134

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