WATER DEMAND COMMITTEE
ITEM:		ACTION ITEMS
2.	Discuss and Provide Feedback on Policy Issues Related to Water Permits and Water Credits
Meeting Date:			June 14, 2005
From:			David A. Berger,
			General Manager
Prepared by:			Stephanie Pintar

SUMMARY: District Counsel is in the process of reviewing a draft ordinance to amend, revise and update District Rules and Regulations related to water permits and water credits. These changes are recommended by the Water Demand Division to facilitate its Policies and Procedures Manual. Before the manual can be completed, staff is requesting a number of policies, procedures, and practices be incorporated into the rules and regulations to allow consistency in application. Currently, there are two staff members who have institutional knowledge of these policies, procedures, and practices. The institutional knowledge should be captured in the rules to reduce the amount of disparity resulting from varied interpretations and dissimilar situations. Clarification and inclusion of these policies, procedures, and practices in the rules will also facilitate the accuracy of the Water Demand Division database project.

In addition to, and complimenting, the proposed edits that are currently under review by District counsel, staff has identified a number of policy issues that need direction for inclusion in the draft ordinance. Staff is requesting the Water Demand Committee review the following policy issues and provide direction. The Water Demand Committee will have the opportunity to review and provide input on the proposed ordinance and CEQA findings at its August meeting.

1. When is a water permit waiver appropriate? A waiver is a water permit with no fee. Staff believes that waivers should be issued for reinstatement of meters, meter splits, upgrading meters and where water fixtures are being relocated.
2. Posting policy. The Water Demand Division currently posts notices of public hearings for a period of ten days prior to the hearing. There is presently no written posting requirement for public hearings within the rules and regulations. The current practice is to post at various locations around the property that are visible from the street for ten days prior to the hearing.
3. Staff requests a policy statement on grandfathering uses that can be verified as pre-dating the District’s 1985 permit requirements. This would exempt from current permit standards properties where a water permit was not issued for uses that can be proven to pre-date the District’s current permit requirements. Similarly, this policy would acknowledge the existence of uses that are proven to pre-date the District’s current permit process.

4. Policy for properties located in District but served by a water distribution system located outside of District. This occurs on Los Laureles Grade where Toro Water Company supplies water to Laureles Estates. Staff recommends the District enforce its requirements on all properties located within the District boundary. The use of water from systems located outside the boundary but accessing the same aquifer has an impact on District supplies.
5. Policy for annexing properties outside the Cal-Am service area boundaries that have been historically served by Cal-Am. This issue has recently been raised by the Sullivan and the Showe annexations. Staff recommends support of annexation and making it a requirement for properties in these circumstances to annex once they are identified.
6. There is a need for discussion about the grouped factors, particularly as people are starting to apply for Water Use Credits for installing ultra-low consumption appliances to obtain water credit.

1. Should we “un-group” the non-residential uses? The current groups were created to allow tenant flexibility. Ungrouping would result in a significantly higher number of water permits, increased difficulty in permitting tenant improvements and changes in use, and would place a burden on the commercial sector of the community.
2. Should we create a new commercial category (Modified Commercial Uses) for properties that have been granted a “credit” for installing ultra-low consumption technology? It’s conceivable that credits established by retrofitting would be used to increase the square-footage, seating, or other factors that normally would result in intensification in use. It is also conceivable that the water credit would be transferred to another non-residential use. Either of these scenarios would result in a change in the capacity of the building to accommodate a change in use within the existing grouped uses.
3. There have been instances of proposed new construction of non-residential uses that are also proposing unique retrofits. Should retrofits allow a project to fall into a new category of use or should the type of use determine the factor, regardless of the type of water fixtures within the facility? Specific retrofits may result in reduced water use in one type of non-residential use, but the same retrofit may not have the same savings in another type of non-residential use.

d. What does the provision about “manufacturing process” mean? Should this be deleted?

7. Policy on exterior water credit. Should credit be granted for building over existing landscaped areas? How does a potential increase in landscaping elsewhere on the site impact this policy? If credit is granted, under what circumstances? How should staff make a determination about the quantity of credit that may be available? There is little ability to enforce the permanent removal of landscaping if there are other areas on the property that have the potential to be landscaped. Staff recommends a strong position against credit for landscaping unless it was an area that was permitted by the District and the property owner paid a connection charge and a jurisdiction’s allocation was debited.

RECOMMENDATION: The Water Demand Committee should discuss the proposed policy issues and provide feedback to staff. Staff proposes to proceed with development of an ordinance and Initial Study for consideration by the Water Demand Committee in August.

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