PUBLIC HEARING
13.	CONSIDER ADOPTION OF ORDINANCE NO. 135 WITH URGENT EFFECT --INCLUDE THE INLAND SUBAREAS OF THE SEASIDE GROUNDWATER BASIN INTO THE MONTEREY PENINSULA WATER RESOURCE SYSTEM
Meeting Date:		August 18, 2008		Budgeted:	N/A
From:		Darby Fuerst,		Program/	N/A
		General Manager		Line Item No.:
Prepared By:		Stephanie Pintar		Cost Estimate:	N/A
General Counsel Approval:			Yes
Committee Recommendation:			The Water Demand Committee reviewed the ordinance on August 5, 2008, and recommended that the full Board consider the ordinance on a 2-1 vote.
CEQA Compliance:			Negative Declaration. CEQA Initial Study and Notice of Intent to Adopt a Negative Declaration filed with County Clerk on April 18, 2008, as part of the evaluation for Ordinance No. 134. The comment period ended May 7, 2008. No comments were received.

SUMMARY: Draft Ordinance No. 135 (Exhibit 13-A) responds to current and projected California American Water (CAW) system supply conditions by expanding the District’s definition of the Monterey Peninsula Water Resource System (MPWRS) to include the entire Seaside Groundwater Basin. This change is needed to reflect the current understanding of hydrogeologic conditions in the Seaside Basin and conform with the Seaside Groundwater Basin Adjudication Decision that included the Laguna Seca Subarea as part of the Seaside Groundwater Basin. The ordinance includes specific triggers to move water users in the Laguna Seca Subarea to water conservation stages, when necessary, to respond to reductions in available supply. As proposed, water users in the Laguna Seca Subarea will be exempt from water rationing stages at this time. The ordinance affects properties within the jurisdiction of the Cities of Monterey and Del Rey Oaks, and Monterey County.

Ordinance No. 135 will facilitate reduced CAW water production to achieve the limits set by the Seaside Groundwater Basin Watermaster. The changes include amendment of the definition of the MPWRS to include the Northern Inland Subarea and the Laguna Seca Subarea in the Seaside Groundwater Basin, and a definition for CAW’s satellite systems (i.e., Bishop, Hidden Hills and Ryan Ranch). Other modifications to Regulation XV (Rules 160 through 175) have been made to implement these changes. Specifically, Stages 2 and 3 Water Conservation shall be enforced in the Satellite Systems when CAW’s production from the MPWRS for its Main and Satellite Systems has exceeded the year-to-date at month-end production as shown in amended Table XV-1 and CAW’s production from the MPWRS for its Satellite Systems has exceeded the year-to-date at month-end production as shown in Table XV-2. Stages 4 through 7 Water Rationing will not apply to the Satellite Systems at this time.

RECOMMENDATION: Staff recommends that the Board adopt Ordinance No. 135 with urgency effect to protect and manage the water resources of the Laguna Seca Subarea. If this ordinance is adopted as a matter of urgency, which requires a super majority vote of the Board (i.e., five votes), there would be no second reading, and Ordinance No. 135 would take effect on September 17, 2008.  If approved, staff should also be directed to file the Notice of Determination with the County Clerk that was included in the Initial Study and Notice of Intent to Adopt a Negative Declaration for Ordinance No. 134, dated April 16, 2008. This Negative Declaration is shown as Exhibit B in the staff report for the second reading and adoption of Ordinance No. 134, also on this agenda.

If the ordinance is approved, but not enacted as an urgency ordinance, a second reading would be required. In this case, Ordinance No. 135 would take effect thirty days following approval of the second reading, e.g., October 22, 2008.

DISCUSSION: The impetus for this amendment to Regulation XV is the 2006 Seaside Adjudication decision whereby CAW water production from the Laguna Seca Subarea to serve users within its satellite systems is restricted. Presently, CAW is limited to no more than 345 acre-feet per year (AFY) of production from its wells in the Laguna Seca Subarea for customers in its Ryan Ranch, Hidden Hills, and Bishop satellite systems by the adjudication decision. For WY 2008 to date, i.e., October 1, 2007 through August 4, 2008, CAW has produced approximately 425 AF from the Laguna Seca Subarea for customers in its satellite systems. By adding the Laguna Seca Subarea to the MPWRS, the area becomes subject to the District’s Expanded Water Conservation and Standby Rationing Plan.

On May 19, 2008, the Board considered the first reading of Ordinance No. 134 that would have modified the District’s Expanded Water Conservation and Standby Rationing Plan and incorporated the Inland Subareas of the Seaside Basin into the MPWRS. At that meeting, the Board requested that the ordinance be bifurcated so that Ordinance No. 134 would address modifications to the Expanded Water Conservation and Rationing Plan, and a new Ordinance No. 135 would include modification to the MPWRS. This action allowed time for District staff and Inland Subarea property owners to meet and discuss the proposed rules. Since then, District staff has conducted three meetings with Inland Subarea property owners.

EXHIBIT

13-A Draft Ordinance No. 135

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