WATER DEMAND COMMITTEE
ITEM:	ACTION ITEMS
A.	DIRECT STAFF ON MODIFICATIONS TO RULE 25.5, WATER USE CREDITS, PERTAINING TO REDEVELOPMENT PROJECTS
Meeting Date:		June 8, 2004	Budgeted: N/A
Staff Contact:		Stephanie Pintar	Program/Line Item No.: N/A
			Cost Estimate: N/A
General Counsel Approval: Yes
Committee Recommendation:
CEQA Compliance: N/A

SUMMARY: At the May 17, 2004, Board meeting during the consideration of the second reading and adoption of Ordinance No. 115, Director Potter offered a motion to: (a) delete section Five C.2. of the ordinance that requires ownership of a site for 24 months; (b) adopt the amended ordinance; and (c) refer the ordinance to the Water Demand Committee and request that the committee develop language that addresses the reuse of saved water for redevelopment projects to ensure that redevelopment projects can move forward without the 24 month ownership requirement. The amended version of the ordinance would be presented for Board consideration. Director Knight seconded the motion and the motion passed 5-2.

District Counsel has attempted to address the circumstances discussed at the May 17, 2004 Board meeting in draft Ordinance No. 118, attached as Exhibit A-1. The following proposed language would be added as District Rule 25.5-C (3):

c. Notwithstanding any other provision of Rule 25.5, a Water Use Credit shall not support creation of a new single-family User unless or until an applicant has continuously owned the Site for a period of at least twenty-four (24) months before the date of application. This limitation, however, shall not apply to any Site that is owned, in whole or in part, by any Jurisdiction or by any Redevelopment Agency.

District Counsel recommends this amendment ordinance be reviewed in an Initial Study pursuant to CEQA, just as Ordinance No. 115 was. Ordinance No. 115 was adopted on May 17, 2004 and becomes effective on July 1, 2004. The proposed modification to Rule 25.5 could be presented to the Board for first reading at the July 19, 2004 meeting. If approved at first reading, second reading could be scheduled for the August 16, 2004 meeting, and if adopted, the ordinance would be effective 30 days later.

RECOMMENDATION: The Water Demand Committee should provide direction to staff on the proposed ordinance, including whether the language adequately addresses the concerns about redevelopment projects that was raised at the May 17, 2004 Board meeting. Staff should also be advised to pursue an Initial Study on the proposed ordinance if the language is acceptable.

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