EXHIBIT 14-F

 

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

 

DRAFT

FINDINGS of APPROVAL

 

CONSIDER APPLICATION TO CREATE

OCEAN VIEW CSD WATER DISTRIBUTION SYSTEM

Service Area: APN 001-021-010 through -020; 001-022-023 through -037

Application #20091209OCE, Permit #M10-05-L4

 

Adopted by MPWMD Board of Directors on April ___, 2010

 

Unless noted otherwise, all cited documents and materials are available for review at the MPWMD Office, 5 Harris Court, Building G, Monterey (Ryan Ranch).

 

It is hereby found and determined as follows:

 

1.         FINDING:            Cannery Row Marketplace, LLC, a California Limited Liability Company, is identified as the owner of property located at 457, 465, 470, 484, 565 and 570 Cannery Row in the City of Monterey, which is the proposed location of a mixed use development known as Ocean View Plaza Project (OVPP). The subject parcels (APNs 001-021-010 through -020; 001-022-023 through -037) comprise approximately 3.5 acres.  In 2005, the Ocean View Community Services District (OVCSD) was formed by the City of Monterey and approved by the Local Agency Formation Commission of Monterey County (LAFCO) for the purpose of providing water to the OVPP via the OVCSD Water Distribution System (designated herein as “OVWDS”), comprised of an onsite, reverse osmosis seawater desalination plant and related water production facilities. Once construction of the OVWDS is completed, Cannery Row Marketplace, LLC, shall dedicate the OVWDS facilities to the OVCSD.  California American Water (CAW) has formally recognized the OVWDS, and has temporarily waived its right to serve OVPP under Chapter 8.5 (Service Duplication) of the California Public Utilities Code, until CAW is able to fully supply OVPP, pursuant to a 2005 Agreement.

                                        

EVIDENCE:         MPWMD Permit Application #20091209OCE submitted December 9, 2009 (Permit Application); Grant Deed recorded June 17, 1996, Reel 3384, Pages 752-8; map with legal description of Ocean View Community Services District dated July 15, 2005; Agreement Concerning Ocean View Plaza Project dated December 1, 2005 (parties: City of Monterey, California American Water, and Cannery Row Marketplace, LLC); Resolution No. 05-27 of the Local Agency Formation Commission of Monterey County Making Determinations and Approving the Proposed Ocean View Community Services District Formation, adopted December 27, 2005; Certificate of Resolution of California American Water Company, adopted April 13, 2006; Judgment, Save Our Waterfront Committee v. City of Monterey, et al., Monterey County Superior Court Case No. M78054; Opinion, Save Our Waterfront Committee v. City of Monterey, et al., California Sixth District Appellate Court Case No. H031180.    

 

2.         FINDING:            The OVWDS is within the area served by CAW, but CAW does not currently have the ability to serve the OVPP due to current restrictions on its water supply.  A December 2005 Agreement between the City of Monterey, CAW and Cannery Row Marketplace, which was incorporated into the December 2005 creation of the OVCSD by LAFCO, requires the OVCSD to dissolve and the OVWDS to be dismantled when CAW formally notifies Cannery Row Marketplace that CAW is able to commence full water service to the OVPP.   It is noted that there is an existing CAW connection at the Stohan Building at 484 Cannery Row for 3,400 square feet of retail space, equivalent to 0.238 acre-feet per year (AFY), using MPWMD “Group I” factors.

 

            EVIDENCE:         Permit Application materials as specified in Finding #1.

 

3.         FINDING:            The desalination plant and related water system will be installed pursuant to well construction and water distribution system permits issued by the Monterey County Health Department (MCHD) and/or California Department of Public Health (CDPH) and other responsible agencies.  Extensive environmental review has been performed for the OVPP water supply system.

 

                                         The proposed OVWDS is comprised of onshore pumps, desalination equipment, water storage reservoirs, and offshore seawater intake and brine disposal pipelines and structures.  With the exception of the seawater intake and brine disposal elements, all other components of the project desalination facility will be located on the project site in the lower level of bayside Building B (APNs 001-021-016 through 020).

 

                                         The reverse osmosis system will be manufactured as a complete, skid-mounted unit equipped with all necessary piping, instruments, housing, and pumps.  Potable water produced by the system will be pumped into two 75,000-gallon reservoirs located onsite adjacent to the desalination system, which will be capable of storing a three-day supply at maximum daily demand of 50,000 gallons per day (gpd) (or six days at average daily demand of 25,000 gallons gpd, 12 days at the demand expected during any emergency requiring water conservation).  The reservoirs will consist of rectangular poured-in-place concrete basins.  From the reservoirs, water will be pumped to a 1,000-gallon hydro-pneumatic tank, located adjacent to the desalination facility, which will deliver pressurized water to the project’s potable water delivery system.  The proposed desalination facility will be designed to meet the average demand of 25,000 gpd, which is equivalent to a project demand of approximately 27.89 AFY.  

 

                                         The seawater intake and discharge design will include two six-inch diameter intake pipes, to which one emergency intake line will be connected, and one six-inch diameter discharge pipe.  These pipelines will be installed by first directionally drilling a 20-inch bore hole from the inland side of the site to a location roughly 350 feet offshore where the bore will exit the underlying granite formation adjacent to a submarine sand channel on the ocean floor in about 25 feet of water.  The one discharge pipe and the two intake pipes will then be bundled together and pulled into the bore hole.  At the exit point of the bore, permanent collar anchors will be installed around the pipes and six-inch diameter pipe extensions extending further seaward will be attached to each of the three pipes.  These pipe extensions will be jetted two to three feet into the surficial sediment of the sandy bottom (by divers using air hoses) where they will be anchored in place using concrete weights, and they will be re-covered (buried) with sandy bottom sediments.  The one discharge pipe will be extended in this manner approximately 850 additional feet to a point roughly 1,200 feet offshore in about 50 feet of water, where it will daylight about one to two feet above the ocean floor and into the water column.  The two intake pipelines will also be extended in this manner approximately 450 beyond the bore exit point to a point roughly 800 feet offshore where they will extend into a concrete vault at a water depth of about 40 feet.  

 

                                         The concrete vault (approximately 15 feet in length, 6 feet wide, and 6 feet high and consisting of two chambers) will be assembled onshore, and jetted into the seabed floor and re-covered (buried) with sandy bottom sediments in a similar manner as the pipes.  The larger chamber of the vault will be filled with sand, and the smaller chamber will be open; the sand-filled chamber will be where seawater is pulled through the sand filter, and the smaller chamber will be fitted with a cover to allow for diver access to the vault and to allow for removal of pipeline inspection gauges (“pigs”) sent through the intake pipes for cleaning and maintenance purposes.

 

                                         The pipes will be reburied under two to three feet of sediment at the bore hole exit, and up to six to seven feet where the pipes enter the vault, and that the vault itself will be reburied under six inches to two feet of sediment.

 

                                         A six-inch emergency intake pipe riser will be attached to the two intake pipes through a Y-valve near the concrete vault, and it will be extended so that it will daylight about one to two feet above the ocean floor and into the water column.  This intake pipe will be fitted with a velocity cap to limit maximum intake to no more than 0.2 feet per second, and it will be perforated with 1-inch diameter, screened ports through which seawater will be drawn.

 

                                         All of the 27.89 AFY produced by the desalination plant will be used within the OVPP.

 

EVIDENCE:                     Permit Application as specified in Finding #1 including all attachments (environmental and technical documents); Draft Environmental Impact Report (EIR) for Ocean View Plaza Project dated April 2001, State Clearinghouse (SCH) #2000041035; Final EIR for Ocean View Plaza Project dated August 2001; Supplement Addendum to Final EIR dated December 2001; Final Recirculated EIR dated March 2002; Draft Supplement EIR dated March 2004; Final Supplement EIR dated May 2004; Notice of Final Determination filed by the City of Monterey on June 2, 2004; City of Monterey Use Permit 00-019; Ocean View Plaza City Council Statement of Overriding Considerations approved June 1, 2004; Ocean View Plaza City Council Findings approved June 1, 2004; Mitigation Monitoring Table approved June 1, 2004; Ocean View Plaza City Council Conditions of Approval approved June 1, 2004; Resolution No. 04-116 of the City of Monterey Ratifying Statement of Overriding Considerations, Findings and Mitigation Monitoring Table for Ocean View Plaza, Mixed Use Project at 470, 565 and 580 Cannery Row adopted July 20, 2004; Judgment, Save Our Waterfront Committee v. City of Monterey, et al., Monterey County Superior Court Case No. M78054; Opinion, Save Our Waterfront Committee v. City of Monterey, et al., California Sixth District Appellate Court Case No. H031180; Map with legal description of Ocean View Community Service District, dated July 15, 2005; Ocean View Plaza Bay Level Plan, dated October 9, 2003; Agreement Concerning Ocean View Plaza Project dated December 1, 2005; Resolution No. 05-27 of the Local Agency Formation Commission of Monterey County Making Determinations and Approving the Proposed Ocean View Community Services District Formation, adopted December 27, 2005; Certificate of Resolution of California-American Water Company, adopted April 13, 2006. Regional Water Quality Control Board (RWQCB) Order No. R3-2007-0040; NPDES Permit No. CA0050016.

 

 

4.         FINDING:            Applicant has applied to MPWMD for a permit to create the OVWDS described in Finding #1. The desalination facility will provide water only for the OVPP, with an estimated water demand of 27.89 AFY. 

 

EVIDENCE:         Permit application as specified in Finding #1, including water demand estimates.

 

5.         FINDING:            Based on District staff analysis of the engineering, hydrogeologic and environmental data provided in the application, 27.89 AFY has been set as the annual production limit for the OVWDS specified in Finding #1. An additional loss factor for water conveyance or treatment was not applied due to onsite water delivery and characteristics of the desalination plant. 

 

EVIDENCE:         Permit application materials specified in Findings #1 and #3, including technical and environmental review documents; MPWMD Permit #M10-05-L4, Condition of Approval #3.

 

6.         FINDING:            The application to create the OVWDS, along with supporting materials, is in accordance with District Rules 21 and 22.

 

EVIDENCE:         Permit application materials specified in Findings #1 and #3.

 

Required Findings (MPWMD Rule 22-B)

 

7.         FINDING:            The approval of the permit would not cause unnecessary duplication of water service with any existing system.  The subject property is within the areas served by CAW, but CAW is not able to provide water to the subject property due to current limitations imposed by State Water Resources Control Board (SWRCB) Order WR 95-10 and the need to reduce CAW diversions from the Carmel River until a replacement source is developed. A December 2005 Agreement between the City of Monterey, CAW and Cannery Row Marketplace, which was incorporated into LAFCO’s approval of OVCSD, requires the OVCSD to dissolve and the OVWDS to be dismantled when CAW is able to commence full water service to the OVPP.   [Rule 22-B-1]

 

            EVIDENCE:         Permit Application materials specified in Finding #2. 

 

8.         FINDING:            The approval of the permit would not result in water importation or exportation to or from the MPWMD, respectively. The referenced OVWDS service area parcels are located wholly within the MPWMD [Rule 22-B-2]

 

EVIDENCE:         MPWMD boundary location maps.

 

9.         FINDING:            Approval of the application would not result in significant adverse impacts to Sensitive Environmental Receptors (SER) as defined by MPWMD Rule 11, including the Pacific Ocean.  Site-specific evaluations have demonstrated that the proposed desalination subsurface intake system and discharge system are not expected to have significant environmental impacts on SERs.  [Rule 22-B-3]

 

EVIDENCE:         Permit Application materials as specified in Findings #1 and #3, including all cited environmental, technical, legal and regulatory documents.  MPWMD Permit #M10-05-L4, Conditions of Approval; MPWMD Notice of Determination for OVWDS dated April ___, 2010.

 

10.       FINDING:            The application adequately identifies the right of the OVPP property owner to the source of water supply for the OVPP, and provides supporting verification. [Rule 22-B-4]

 

EVIDENCE:         Permit Application materials as specified in Findings #1 and #3.

 

11.       FINDING:            The application demonstrates existence of a long-term reliable source of water supply for the proposed use of up to 27.89 AFY; the desalination plant includes numerous redundancies in design to ensure reliability.  [Rule 22-B-5]

 

            EVIDENCE:         Hydrogeologic assessments and engineering analyses included in Permit Application materials specified in Findings #1 and #3.

 

12.       FINDING:            The source of supply is the Pacific Ocean.  The cumulative effects of issuance of a Permit for the OVWDS would not be expected to result in significant adverse impacts to the source of supply or the species and habitats dependent on the source of supply.   [Rule 22-B-6]

 

EVIDENCE:         Hydrogeologic assessment and environmental review documents included in Permit Application materials as specified in Findings #1 and #3.

 

13.       FINDING:            The source of supply for the subject parcel is not derived from the Carmel Valley Alluvial Aquifer or the Monterey Peninsula Water Resource System.  The source of supply (Pacific Ocean) is not within the jurisdiction of the SWRCB in the context of water rights.  The seawater supply source is not tributary to the source of supply for any other system, though the Pacific Ocean is the source of supply for other desalination projects in the region.    [Rule 22-B-7] 

 

EVIDENCE:         MPWMD map showing boundaries of project site and jurisdiction of SWRCB superimposed on Monterey County parcels; technical and environmental review documents submitted with Permit Application as specified in Findings #1 and #3.

 

14.       FINDING:            MPWMD Permit #M10-05-L4 does not allow a permanent intertie to any other water distribution system. The proposed OVWDS will be limited to a physically and legally separate system, and may not be connected to the CAW system at any time unless written permission from MPWMD is obtained.  Temporary water service may be provided through a mobile provider in a non-fire emergency such as system failure pursuant to MPWMD regulations.  Fire-suppression within the OVWDS service area will be provided by CAW.  A separate standby CAW meter solely for emergency fire sprinklers in the OVPP buildings is allowed because OVPP is within the CAW service area.  [Rule 22-B-8]

 

            EVIDENCE:         Map of CAW service area; MPWMD Permit #M10-05-L4, Condition of Approval #13; MPWMD Rules & Regulations.   

 

15.       FINDING:            A back-flow protection device to prevent contamination of the CAW system is required, only if deemed necessary by CAW.  [Rule 22-B-9]

 

            EVIDENCE:         Map of CAW service area; MPWMD Permit #M10-05-L4, Condition of Approval #14. 

 

Minimum Standards for Granting a Permit (MPWMD Rule 22-C)

 

16.       FINDING:            The application adequately identifies the Responsible Party as the owners listed in Finding #1.   [Rule 22-C-1]

 

EVIDENCE:         Permit Application Form and Grant Deed specified in Finding #1.

 

17.       FINDING:            The application meets the definition of a “Multiple-Parcel Connection System” and will provide water for numerous uses; the water quality is expected to comply with California Title 22 water quality standards as administered by County and State health authorities.  [Rule 22-C-2]

 

EVIDENCE:         Permit Application materials as specified in Findings #1 and #3.  MPWMD Permit #M10-05-L4, Conditions of Approval #1 through #4, and #15; California Administrative Code, Title 22.

 

18.       FINDING:            The application identifies the location of the source of supply for the water distribution system (water source and source site).  [Rule 22-C-3]

 

EVIDENCE:         Permit Application as specified in Finding #1, including location map.  MPWMD Permit #M10-05-L4, Condition of Approval #4.

 

19.       FINDING:            The approval of the application would not create an overdraft or increase an existing overdraft of a groundwater basin.  In the event of system failure, emergency back-up supplies will not be drawn from the Carmel River, Carmel River Alluvial Aquifer, and/or the Seaside Groundwater Basin.  [Rule 22-C-4] 

EVIDENCE:         Hydrogeologic assessment and environmental review documents included in Permit Application materials as specified in Findings #1 and #3. MPWMD Permit #M10-05-L4, Conditions of Approval #13 and #15.

 

20.       FINDING:            The approval of the application would not adversely affect the ability of existing systems to provide water to users due to conditions of approval by MPWMD and other entities, based on certified environmental review documents.  Within approximately eight feet of discharge, the water salinity returns to within about 2 percent (0.6 ppt) of ambient seawater concentrations.  [Rule 22-C-5]

 

EVIDENCE:         Hydrogeologic assessment and environmental review documents included in Permit Application materials as specified in Findings #1 and #3. MPWMD Permit #M10-05-L4, Conditions of Approval.

 

Compliance with California Environmental Quality Act (CEQA)

 

21.       FINDING:            In the review of this application, MPWMD has followed those guidelines adopted by the State of California and published in the California Administrative Code, Title 14, Section 15000 et seq.  Specifically, the MPWMD as a Responsible Agency under CEQA for this action has complied with Guidelines Section 15096, and relies on actions by the CEQA Lead Agency; in this case the City of Monterey.  The MPWMD, as a Responsible Agency for this project, has considered the City of Monterey’s Notice of Final Determination filed on June 2, 2004; City of Monterey Use Permit 00-019 (As amended); Ocean View Plaza City Council Statement of Overriding Considerations approved June 1, 2004; Ocean View Plaza City Council Findings approved June 1, 2004; Mitigation Monitoring Table approved June 1, 2004; Ocean View Plaza City Council Conditions of Approval approved June 1, 2004; Resolution No. 04-116 of the City of Monterey Ratifying Statement of Overriding Considerations, Findings and Mitigation Monitoring Table for Ocean View Plaza, Mixed Use Project at 470, 565 and 580 Cannery Row adopted July 20, 2004; Judgment, Save Our Waterfront Committee v. City of Monterey, et al., Monterey County Superior Court Case No. M78054; Opinion, Save Our Waterfront Committee v. City of Monterey, et al., California Sixth District Appellate Court Case No. H031180.

 

                                         MPWMD Board members have been provided copies of pertinent sections of environmental documents related to water for review prior to the public hearing on the OVWDS.  The documents include portions of: Draft EIR for OVPP dated April 2001, SCH #2000041035 (Summary, Project Description, Water Supply, and Water Quality); Final EIR for OVPP dated August 2001 (text amendments to water-related sections). The MPWMD Board has reviewed the environmental information and relied on the information as part of its decision-making on this matter.  The MPWMD was provided copies of the 2002 and 2004 Supplements to the 2001 Final EIR, but they did not include water-related issues.  They focused on traffic and alternative OVPP configurations (density and design).  Thus, to the MPWMD Board was not provided excerpts from:  Supplement Addendum to Final EIR dated December 2001; Final Recirculated EIR dated March 2002; Draft Supplement EIR dated March 2004; and the Final Supplement EIR dated May 2004.

 

EVIDENCE:         CEQA and CEQA Guidelines, Section 15096.  Permit Application materials as specified in Findings #1 and #3, including all cited environmental, technical, legal and regulatory documents.  MPWMD Notice of Determination for OVWDS dated April ___, 2010, as directed by the MPWMD Board at a public hearing on April __, 2010.   

 

22.       FINDING:            Pursuant to CEQA Section 15091, the MPWMD Board finds that the project will not have a significant effect on the environment, based on the documentation cited in Finding #21.  Mitigation measures are not made as conditions of approval by MPWMD for this action. The full record for the “Ocean View Plaza Project” can be reviewed at the offices of the City of Monterey, Pacific and Madison Streets, Monterey.  

 

EVIDENCE:         Findings and Evidence provided in Finding #21 above. MPWMD Notice of Determination dated April ___, 2010 as described in Finding #21.

 

 

 

 

 

 

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