WATER DEMAND COMMITTEE
ITEM:	ACTION ITEMS
B.	CONSIDER POTENTIAL MODIFICATIONS TO WATER USE CREDIT TRANSFER PROGRAM -- CONTINUED FROM APRIL 13, 2004
Meeting Date:		May 11, 2004	Budgeted: N/A
Staff Contact:		Stephanie Pintar	Program/Line Item No.: N/A
			Cost Estimate: N/A
General Counsel Approval: N/A
Committee Recommendation:
CEQA Compliance: N/A

SUMMARY: Draft Ordinance No. 117 was discussed at the April 13, 2004 Water Demand Committee meeting. The item was returned to staff for further analysis before a recommendation could be considered on May 11, 2004. The Water Demand Committee should continue the previous discussion, using the staff report from the April 13, 2004 meeting (Exhibit B-1).

RECOMMENDATION: In response to concerns raised by staff at the April 13 meeting, an optional version of the draft ordinance is shown at (Exhibit B-2). This version contains a minor change at Section 3, B-9, Calculation of Transferable Water Credit. In the revised version of the ordinance, the use of average annual water use to calculate transferable water credit applies only to sites where the water credit originates from a demolition. Staff is concerned that the process of calculating transferable water credit using water use records vs. factor, with only the lowest number being transferable, will discourage state of the art conservation retrofits and instead will encourage businesses to increase their water use.

Staff recommends the Committee consider making a recommendation to the Board on modifications to the Water Use Credit Transfer process.

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