# ITEM:            PUBLIC HEARINGS

17.       CONSIDER APPLICATION TO AMEND CAÑADA WOODS WATER DISTRIBUTION SYSTEM PERMIT

## Meeting Date:July 21, 2003Budgeted: N/A

Program/Line Item:  N/A

Staff Contacts:           Andrew Bell, Henrietta Stern            Cost Estimate: N/A

General Counsel Approval:  Reviewed staff note, findings and conditions

Committee Recommendation:  Changes to the draft Findings of Approval and Conditions of Approval were discussed on June 24, 2003 by the Water Demand Committee and are  incorporated herein for consideration by the full Board.

CEQA Compliance: EIRs certified by Monterey County in 1994, 1995, and 1996

SUMMARY:  The Board will consider whether or not to approve Application #20021031CAN by the Carmel Development Company to amend the existing Cañada Woods Water Distribution System (CWWDS) permit approved in 1995 by annexing new territory into the system, adding a new production well in the Carmel Valley alluvial aquifer, and adding distribution pipelines, pump stations, and storage tanks to the potable water system.

A Public Hearing was held on this application at the June 16, 2003 Board meeting.  Public comment was received, the Public Hearing was closed, and the Board asked questions of District staff and the applicant’s representative.  Following discussion by the Board, the Board voted to continue this item to the July 21, 2003 meeting and to refer review of the Draft Findings of Approval and Draft Conditions of Approval (Draft Findings and Conditions) to the Water Demand Committee.  The Board stated that at the July 21, 2003 Public Hearing, public comment will be received on any changes to the Draft Findings and Conditions that are presented, but not on other information or issues that were in the record for the June 16, 2003 Public Hearing.

On June 17, 2003, Director Erickson met with District staff to discuss changes to the Draft Findings and Conditions.  Director Erickson’s recommended changes were presented for review by the Water Demand Committee at its June 24, 2003 meeting.  Additional changes were made at the committee meeting, and are incorporated herein for consideration of amended Draft Findings and Conditions by the full Board on July 21, 2003.

Exhibit 17-A is the full staff note presented for this item in the June 16, 2003 Board packet (Item 20, including Exhibits 20-A through 20-J).  Exhibit 17-B is amended draft Findings of Approval for Application #20021031CAN, with changes from the Water Demand Committee.  Exhibit 17-C is amended draft Conditions of Approval for Application #20021031CAN, with changes from the Water Demand Committee.

RECOMMENDATIONS:  District staff recommends that the Board take the following actions:

Ø      Adopt the MPWMD Findings of Approval for Application #20021031CAN shown as Exhibit 17-B with specific reference to District compliance with the California Environmental Quality Act (CEQA). As a responsible agency, the District relies upon Environmental Impact Reports (EIRs) and other environmental documents prepared for and certified by Monterey County.

Ø      Approve Application #20021031CAN with the Conditions of Approval specified in Exhibit 17-C.  These include required conditions as specified in MPWMD Rule 22-D as well as several special conditions for the CWWDS.  For example, Condition #20 requires the applicant to submit a future permit application to consolidate the CWWDS with the adjacent Monterra Ranch WDS, consistent with water system permits previously issued by the CPUC, in order for MPWMD to consider any increase in the number of residential connections allowed by the permit.

BACKGROUND:  Substantive changes to the versions of the Draft Findings of Approval and Draft Conditions of Approval presented in the packet for the June 16, 2003 Public Hearing are described below.

#### Draft Findings of Approval(Exhibit 17-B)

Two draft Findings of Approval have been added.  Finding #20 describes current production and use of sub-potable water from non-alluvial wells not authorized by the current CWWDS and Monterra Ranch Water Distribution System (MRWDS) permits. It also describes the use of reclaimed water originating from the CWWDS and MRWDS service areas for golf course and other open space purposes within the MRWDS service area, but not authorized by the current MRWDS permit.  This new Finding provides background for Condition #19, which requires the Permittee to file with MPWMD one or more complete applications for new or amended water distribution system permits to authorize these water uses.  These applications must be filed by September 30, 2003 or the permit to amend the Cañada Woods WDS shall be revoked.

Finding #21 states as follows:  “But for compliance with each and every condition listed in the July 2003 MPWMD Conditions of Approval for Amendment to CWWDS Permit, the amended permit would be subject to revocation.”

#### Draft Conditions of Approval (Exhibit 17-C)

A number of changes to the draft Conditions of Approval have been made.  Several of the conditions have been re-ordered and re-numbered.  The first group of conditions, which define the service area, system capacity (production) limit, the expansion capacity (connection) limit, and the sources and authorized uses of the water produced by the CWWDS, has been placed in a new section titled “Permitted System.”  Former Condition #18, which describes the sources of water for the CWWDS from the Carmel Valley alluvial aquifer, is now Condition #4 and is part of the “Permitted System” section.   Associated with the new Condition #4 is a new attachment to the Conditions of Approval showing the location of the four permitted production wells (Attachment 2, titled “Location Map, Wells in Carmel Valley Alluvial Aquifer, Cañada Woods Water Distribution System”).

Condition #10 (formerly #9) has been expanded to include reference to MPWMD and Monterey County rules regarding irrigation of landscape and other open spaces, including golf courses.

Condition #19 has been amended to change the non-alluvial well and reclaimed water permit application deadline from August 29 to September 30, 2003, and indicate that the permit “shall be revoked” if the applications are not submitted in a timely manner.

Condition #21j, which specifies annual fees for MPWMD’s costs of reviewing water use reporting and other information provided by the Permittee and for enforcement of the permit conditions, has been revised.  In place of a flat fee of $1,000 per year, the revised condition specifies an annual fee of$1,400 for up to 20 hours of MPWMD staff time, and if more than 20 hours are required, the additional time will be charged at the rate of \$70 per hour.

Condition #22, which requires the Permittee to maintain Carmel River riparian vegetation on the Permittee’s property in a satisfactory condition, has been changed to recognize a condition of the amended water rights permit recently issued to the Permittee by the State Water Resources Control Board (SWRCB).  The new text refers to the SWRCB condition that water used for maintenance of riparian vegetation is to be separately metered, and the amount is to be added to the annual water production limit (currently 118.44 acre-feet under the SWRCB permit).

Condition #26 has been added, as follows:  “The Permittee shall provide timely notice to MPWMD of any change to CWWDS ownership and any changes to the names of CWWDS facilities.”

U:\staff\word\boardpacket\2003\2003boardpacket\20030721\PublicHearings\17\item17.doc

A. Bell, prepared 7/10/2003, 3 pages