ITEM:		ACTION ITEM
16.	CONSIDER RESOLUTION NO. 2012-04 ApprovING FULL IMPLEMEnTATION OF AQUIFER STORGE AND RECOVERY wATER Project 2
Meeting Date:			April 16, 2012	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:	N/A
Prepared By:			Henrietta Stern, Project Manager	Cost Estimate:	N/A
General Counsel Review: Reviewed April 5, 2012
Committee Recommendation: N/A
CEQA Compliance: Addendum to Final EIR

SUMMARY: The Board will consider Resolution No. 2012-04 (Exhibit 16-A), which would encompass several needed actions to enable full implementation of “Water Project 2” (also known as Phase 2 Aquifer Storage and Recovery [ASR]). Water Project 2 is a continuation of cooperative efforts by the Monterey Peninsula Water Management District (MPWMD or District) and California American Water (CAW) to divert excess river flow from the Carmel River in the wet season, as permitted, for injection into the Seaside Groundwater Basin (SGB) via special wells for later extraction in the dry season. Use of the SGB water source in the dry season helps reduce adverse impacts of pumping from the Carmel River environment when it is most vulnerable.

The Resolution includes a series of 32 Findings that lead to seven resolution statements that:

Ø Demonstrate continued compliance with the California Environmental Quality Act (CEQA);

Ø Adopt an April 2012 Addendum (Exhibit 16-B) to the Phase 1 ASR Project Final Environmental Impact Report/Environmental Assessment (EIR/EA), certified by MPWMD on August 21, 2006;

Ø Adopt an April 2012 Mitigation Monitoring Plan for Water Project 2 (Exhibit 16-C) as required by CEQA; and

Ø Approve full implementation of Water Project 2 (the proposed project), including authorizing necessary follow-up actions such as filing of a Notice of Determination.

As described in Finding #30 of the Resolution, the District Board must consider the Addendum (Exhibit 16-B), along with the Phase 1 EIR/EA, prior to making a decision on the proposed project. However, the Addendum is not required to be circulated for standard EIR public review in accordance with CEQA Guidelines Section 15164.

The Board should review the Draft Phase 1 EIR/EA on the District website at:

http://www.mpwmd.dst.ca.us/eir/MPWMD%20Draft%20EIR-EA%20(3-06).pdf

The Board should review the Final Phase 1 EIR/EA on the District website at:

http://www.mpwmd.dst.ca.us/eir/FEIR_8-21-06.pdf.

The printed Draft and Final EIR/EA are available at the District office for review. Hard copies or CDs may be requested for the price of reproduction.

The Board must also adopt an updated Mitigation Monitoring Plan (MMP), provided as Exhibit 16-C, which draws heavily from the 2006 ASR EIR/EA MMP, with site specific refinements tailored to Water Project 2. It is noted that the original MMP is Chapter 4 of the Final Phase 1 EIR/EA referenced above.

RECOMMENDATION: District staff recommends that the Board adopt Resolution 2012-XX as provided as Exhibit 16-A, including the April 2012 Addendum (Exhibit 16-B) and MMP (Exhibit 16-C). The Resolution is effective immediately. The Board should direct staff to prepare a Notice of Determination for filing with the County Clerk and move forward on preparation of a contractor bid package for Water Project 2 well construction and related actions. The goal is to begin construction in early June, when the school year ends at Seaside Middle School. Time is of the essence as there is a narrow window of time for well and facility construction before school starts again in August 2012. Approval of construction bids would be a separate board action, likely in May or early June 2012.

It is noted that CAW engineering staff (John Kilpatrick) and others worked closely with District staff in the review of the Addendum and MMP. District staff’s understanding is that CAW concurs with these documents, but formal communication was not received at the printing date. It is possible that revised versions of Exhibits 16-B and 16-C will be provided at the April 16, 2012 meeting if CAW has substantive edits.

BACKGROUND: Detailed background information is provided in the Resolution and Addendum, which includes an Initial Study Checklist (see Attachment 1 to Exhibit 16-B). In brief, Water Project 2 (proposed project) includes the conversion of a full-scale test well to a permanent, operational well (the 3^rd ASR Well, or ASR-3), plus construction, testing and operation of a new ASR well (the 4^th ASR Well, or ASR-4), a new backflush percolation basin, new appurtenant pipelines and valves, and a new small building to house the well control equipment (replacing the current fenced area enclosing electrical equipment on the site) at the Seaside Middle School site. Exhibit 16-D provides a schematic of the Water Project 2 location. Exhibit 16-E provides a plan view of the Water Project 2 facilities at the Seaside Middle school site (formerly named Fitch Middle School).

Water Project 2 is facilitated by Amended Permit #20808C, authorized by the State Water Resources Control Board (SWRCB) on November 30, 2011, which allows MPWMD and CAW to divert an additional maximum of approximately 2,900 acre-feet per year (AFY), depending upon rainfall and operational limitations from the Carmel Valley Alluvial Aquifer for injection to the Seaside Basin via proposed Water Project 2 facilities if minimum instream flow requirements in the permit are met.

Full implementation of Water Project 2 is estimated to yield an average of 1,000 AFY, which is additive to the estimated average yield of 920 AFY currently with Water Project 1. Thus, successful implementation of Water Project 2 could result in an average reduction of 1,920 AFY in diversions from the Carmel Valley Alluvial Aquifer during the summer season (June 1 – November 30), as required by Amended Permit #20808C.

DISCUSSION: The Addendum provides a description of full implementation of ASR Water Project 2 at the Seaside Middle School site. The Addendum is intended to support any and all future discretionary approvals for installation and operation of permanent facilities at the site. The Addendum was prepared by District staff with assistance by Denise Duffy & Associates, Inc. (DDA).

The Addendum is supported by an Initial Study Checklist for full implementation of ASR Water Project 2, and concludes the following with regards to CEQA compliance:

· Implementation of the proposed project would not directly have any significant adverse effects on the environment,

· Future potential projects with components proposed at the project site have been described and previously evaluated in certified EIRs, most recently the EIR/EA, and the significant adverse effects of these projects have been identified.

· No new or previously unidentified adverse significant impacts would result from full implementation of ASR Water Project 2.

· No circumstances have changed and no new information of substantial importance has been presented since the consideration of the previous EIR/EA to trigger a new significant adverse impact.

IMPACT TO DISTRICT RESOURCES: Adoption of the Resolution itself has no resource or financial impacts. However, it will enable future actions to actually construct the project, which will have significant effects on District finances and staff resources.

EXHIBITS

16-A Resolution 2012-04

16-B Addendum to Phase 1 ASR EIR/EA

16-C Mitigation Monitoring Plan for Water Project 2

16-D Figure of Water Project 2 location

16-E Plan View of Water Project 2

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