WATER DEMAND COMMITTEE
ITEM:		ACTION ITEM
2.	REVIEW CONCEPTUAL ORDINANCE ADDRESSING STRATEGIC PLAN GOALS FOR PERMIT PROCESS REVISIONS
Meeting Date:			April 18, 2013	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Pintar	Cost Estimate:	N/A
General Counsel Review: To be completed prior to first reading
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: Two goals related to the Water Permit and Conservation Programs were adopted as part of the Board’s Strategic Plan. The goals are: (1) Work with Community to Protect Investment in Water Credits and “Smart” Development, and (2) Streamline Essential Services and Organization. These goals include actions that involve revisions to existing regulations, as well as changes to existing implementation guidelines and fees.

Staff has prepared a preliminary draft ordinance (Exhibit 2-A) for review by the Water Demand Committee to address improvements to customer service related to Water Permitting. The draft ordinance also makes needed rule amendments that have been identified by staff during the normal course of business. The proposed ordinance is discussed in detail in the “Discussion” section below.

In addition to an ordinance to modify certain rules, staff is also proposing changes to the Deed Restriction Guidelines adopted by the Board in 2005 (Exhibit 2-B). The deed restriction process serves a purpose by providing notice to current and future property owners of specific requirements for low water use plumbing fixtures. As deed restriction preparation is a mostly-automated step in the permit process that staff is familiar with, proposed changes would reduce legal review to only those deed restrictions that involve a complex ownership (i.e., trust or corporation). Deed restrictions that are prepared for properties held by individual owners would not require legal review, although they would continue to receive two reviews by staff prior to recording. This would reduce the fees by approximately $115 and would reduce the processing time by several days to a week.

Staff has several proposals for amendments to the Fees and Charges Table in Rule 60 for consideration by the Board during the Fiscal Year 2013-2014 budget approval process. Staff proposes that the charge be eliminated for amending a Water Permit to reflect a reduced number of water fixtures when there is no deed restriction involved. Staff is also suggests that the charge to document a Water Credit for removal of Residential water fixtures when a previous inspection is on file should be waived and that an expedited permit processing fee be established. Finally, discussion is needed regarding the Connection (capacity) Charge for users of single-connection Water Distribution Systems located beyond the boundaries of the Monterey Peninsula Water Resource System due to the limited benefit these projects will receive from a legal water supply.

DISCUSSION: The following amendments are proposed in the draft ordinance attached as Exhibit 2-A:

1. Definitions for Change of Use, Expansion of Use, Landscape Irrigation Auditor, Landscape Water Audit and Landscape Water Budget have been amended.

a. Amendments to Benefited Property, Change of Use and Expansion of Use have been made for clarification.

b. Amendments were made to the terms associated with Landscape Water Audits are recommended to recognize a second certification program (the California Landscape Contractors Association Certified Water Manager) that provides the knowledge, skills and abilities needed to complete a Landscape Water Audit and Landscape Water Budget.

2. A definition for “Meter Split” has been added. This term is used in Rule 23.

3. Rule 23 amendments were made to exempt replacement of a Standard Bathtub ith a Single Stall Shower and vice versa from a Water Permit requirement. Similarly, the removal of a Residential water fixture is exempted from the permit process, although it is recommended that a Water Use Credit be documented (but not required) when a fixture is removed.

4. Rule 23-A-i was amended to clarify the metering requirement for individual Users.

5. Deed restrictions allowing public access to water use were added as a condition of approval for all Water Permits (Rule 23-B-1-e). Staff envisions that a process can be developed whereby the property owner/agent agrees to this condition when they sign the Water Permit. The District would then be authorized to record the deed restriction, similar to recordation of Notices of Non-Compliance and Compliance. (Legal input is needed on this amendment.)

6. The location of the tee from the water meter to the fire suppression system and the domestic line was clarified in Rule 23-B-2-c.

7. Table 1, Residential Fixture Unit Count, was amended to retain the Ultra Low Flush Toilet (ULFT) and to increase the fixture unit value of the ULFT by 0.001 acre-foot (to 0.5 fixture unit) to accommodate the proposed High Efficiency Appliance Credit for High Efficiency Toilets (Rule 25.5, Table 4).

8. Table 1 was also amended to allow the Standard Bathtub or Single Stall Shower changes proposed in Rule 23 (discussed in #3, above).

9. Table 3, Connection Charge History, was updated through 2013. A further amendment by Resolution will occur in July 2013 and thereafter.

10. Rule 25.5-G-2 clarifies when a deed restriction is required for use of a Water Credit. It exempts installation of High Efficiency Toilets from the deed restriction requirement, as no higher flush toilet will be available for purchase or installation in California as of January 2014.

11. Table 4, High Efficiency Appliance Credits, was amended to reflect one-half a fixture unit credit for installation of a High Efficiency Toilet. The expiration of this credit was deleted in response to discussions related to adoption of Ordinance No. 151 in 2012. These amendments were requested by Director Byrne and staff was directed to return these changes for consideration in a future ordinance.

12. Rule 25.5 was amended to require a minimum of eight years of water records to establish a Water Use Credit, rather than ten. California American Water maintains eight, not ten, years of consumption data in its billing system.

13. A Rebate of up to $15 was added to the Rebate Program for replacement of worn flappers. Replacement after five years is recommended to maintain water savings and reduce water lost to leaks.

14. A Rebate of $50 is proposed for replacement of a ULF toilet with a High Efficiency Toilet due to the amount of savings achieved.

15. Mandatory inspections for prequalification of Lawn removal Rebates and verification of roof areas for Cistern Rebates was changed to “may” be needed. Staff has found that orthophotography often provides sufficient evidence or roof size and Lawn existence, in combination with required photographs of the Lawn area and water records that demonstrate regular seasonal irrigation.

16. Rule 172, Water Audits, was amended to recognize other Landscape Water Auditors that may be qualified to perform a Landscape Water Audit and Landscape Water Budget.

RECOMMENDATION: The Water Demand Committee should review the ordinance and attachments and the proposed fee and process changes and provide direction to staff. This ordinance will require CEQA review and a 30 day comment period. The ordinance will also require review by the Technical Advisory Committee, California American Water, and the Division of Ratepayer Advocates at the Public Utilities Commission.

EXHIBITS

2-A Preliminary Draft Ordinance

2-B Proposed Deed Restriction Guidelines

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