WATER DEMAND COMMITTEE MEETING
3.	PROGRESS REPORT ON EVALUATION OF WATER DISTRIBUTION SYSTEMS IN FRACTURED ROCK FORMATIONS
Meeting Date:		March 26, 2010	Budgeted:	N/A
From:		Darby Fuerst,	Program/	N/A
		General Manager	Line Item No.:
Prepared By:		Henrietta Stern	Cost Estimate:	N/A
General Counsel Review: Counsel has not reviewed this staff note.
Committee Recommendation: N/A—This is a progress report only.
CEQA Compliance: N/A

SUMMARY: District staff will provide an update on tasks associated with the further review of wells in fractured rock formations, as well as coordination with other agencies, especially the Monterey County Health Department (MCHD). Staff’s understanding is that Director Markey would also like to revisit the concept of a MPWMD ordinance to suspend applications for wells in fractured rock in certain limited settings.

RECOMMENDATIONS: As described below, staff recommends that the Water Demand Committee not move forward on any specific action at this time until the following information is received:

1. Technical presentation by District staff on pilot study of wells in the Carmel Woods, Carmel Views, and Aguajito areas (estimated completion is late April 2010). This is the general area north of Carmel Valley Road, and adjacent to Highway One.

2. Draft ordinance prepared by MCHD is received and reviewed by MPWMD staff. If the MCHD ordinance includes a prohibition on new wells, then no action by MPWMD to suspend applications for new wells in fractured rock would be needed because the District does not accept a WDS Application or a Pre-Application/Exemption Request unless a valid MCHD Well Construction Permit is attached.

3. Draft MPWMD Ordinance No. XXX to be prepared by the Water Demand Division on enforcement issues, which will also include refinements to Rule 20-C (Exemptions) and Rule 22-D (Mandatory Conditions of Approval) associated with WDS permits.

To avoid duplication and inefficient use of staff resources, staff also recommends that only the Water Demand Committee address the fractured rock issue until a specific ordinance is ready for review by the Rules and Regulations Review Committee (RRC) and Technical Advisory Committee (TAC).

BACKGROUND: At its January 28, 2010 meeting, the MPWMD Board of Directors did not approve Urgency Ordinance No. 143 that would have temporarily suspended receipt and processing of Pre-Applications and Applications for a MPWMD Water Distribution System (WDS) permit that is supplied by a well drilled in “fractured rock.” The Board referred additional research and discussion back to the Water Demand, Rules and Regulations Review, and Technical Advisory Committees (WDC, RRC and TAC, respectively). Please refer to the District website for extensive background information:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2010/20100128/20/item20.htm

Monthly Update: Since late January 2010, as directed by Chairperson Doyle, District staff has provided an update on well applications in fractured rock as part of the General Manager’s report at Board meetings. Exhibit 3-A provides a summary of the Applications and Pre-Applications in progress for wells in fractured rock as of March 22, 2010.

February 1, 2010 Meeting of MPWMD Water Demand Committee: As directed by the Board on January 28, 2010, District staff met with the WDC on February 1, 2010. The WDC is focused on smaller lots in urban (Cal-Am) areas, but also wishes to obtain facts to support focus on other areas in fractured rock that have a risk of going dry. District staff determined it would research the following and report back to WDC on our progress in 60 days:

1. Obtain copies of well ordinances from each city/county within MPWMD.
2. Develop mailing list of fractured rock well owners in process and other interested parties.
3. Use our well database to identify clusters of wells and production values for those wells to help assess whether there are areas with resource constraints, with emphasis on smaller lots (less than 2.5 acres).
4. Research reasons why people requested replacement wells (exemptions); was it mechanical failure or was the well going dry?
5. Follow-up on wells that had been replaced, but not destroyed, and became identified monitor wells instead; which have potential as promising monitoring sites?
6. What type of monitoring in the Carmel Valley Upland is needed to get a better handle on its hydrologic health? What would the cost be for such a program?
7. Prepare legal overview (summary) on water rights associated with these types of wells, and under what conditions could MPWMD constrain use.
8. Consider a near-term MPWMD ordinance to require that: (a) all new WDS permittees must allow their wells to be monitored by MPWMD for water levels and meter readings; (b) all owners of wells do not have access to Cal-Am water until there is full compliance with SWRCB Order 95-10 and the Seaside Basin adjudication, and a water allocation is available from the affected jurisdiction; and (c) exemption criteria would change to allow a well to be inactive for only 3 years (not 10) and/or any reactivated well must have a 72-hour pumping test and MPWMD hydrogeology assessment within 3 years.
9. Address concerns about cumulative effect on Carmel River and Carmel Valley Alluvial Aquifer (CVAA).
10. Potentially inquire whether Carmel Woods area property owners would be willing to fund a monitor well in their area to track trends.
11. Update the MPWMD website with a memorandum on wells in the Coastal Zone, similar to the existing memo on wells within the CVAA.

February 2, 2010 Meeting with Technical Advisory Committee: District staff met with the TAC on February 2, 2010, and briefed the committee on: (a) Board action to not approve Urgency Ordinance No. 143 on January 28, 2010; and (b) summarized topics discussed at the Water Demand Committee meeting of February 1, 2010. Future meetings with TAC are not anticipated unless an ordinance comes forward that could affect city/county planning processes.

February 2, 2010 Meeting with Monterey County Staff re: Wells in Fractured Rock: District staff met with staff from MCHD and Monterey County Water Resources Agency (MCWRA) on February 2, 2010 to continue interagency discussion on wells drilled into fractured rock, with particular emphasis on small parcels in urban areas. Both MCHD and MPWMD staff have been directed by their respective agencies to assess current ordinances relating to wells in fractured rock. At the meeting, MPWMD staff provided an update on Board action to not approve Urgency Ordinance No. 143 on January 28, 2010, and a summary of topics discussed at the Water Demand Committee meeting of February 1, 2010. MCHD staff described the General Plan Update process and how that affects certain well-related ordinances. We brainstormed ideas to better coordinate between our respective agencies and better educate the public, including applicants and well drillers, about the difference between MPWMD and MCHD permits, as well as extra steps needed for wells in certain areas, such as the Coastal Zone. It is noted that MCWRA will be the primary County entity responsible for assessing adequacy of water supply for future large subdivisions, but assessing small systems will likely remain as a MCHD responsibility. The group agreed to meet in March to provide updates on progress. Due to busy work schedules, and development of a potential ordinance by MCHD staff, a meeting is not likely until April 2010.

Monterey County Update: In late February 2010, the Monterey County Board of Supervisors (BOS) denied an appeal challenging an earlier Planning Commission approval of a residence and permanent well in the Carmel Woods area (Chopin project), which was a small lot on fractured rock. However, the BOS also directed MCHD to review situations with wells in fractured rock on small lots. In mid-March 2010, District staff was advised that MCHD had begun development of an interim urgency ordinance to address issues such as wells on small lots in fractured rock formations in urbanized areas. MCHD is still working on the scope of its ordinance and how much of the county to include.  Once a rough draft is made available after review by County Counsel, MPWMD technical staff will be asked to review the ordinance and provide comments as a courtesy. It unknown when the District will receive a copy of the draft ordinance for review, but receipt within the next 20-30 days seems probable.

DISCUSSION: The following paragraphs describe MPWMD staff progress on the 11 tasks enumerated above:

TASK	ACTION TO DATE (3/22/2010)
Task 1: Obtain copies of well ordinances from each jurisdiction within MPWMD.	In progress. Certain ordinances are already on file; need to update file and assess if changes have occurred in recent years. MCHD is currently preparing a new ordinance, which has not been seen to date.
Task 2: Develop mailing list of fractured rock well owners and interested parties.	In progress; completion expected by March 31, 2010.
Task 3: Data research of MPWMD well database and related documentation to help assess potential resource constraint areas.	An extensive data mining effort in the past month has focused on a specific pilot project that encompasses wells in the Aguajito, Carmel Woods and Carmel Views areas. This includes geographic information, geology, physical characteristics of the wells, individual and cumulative production capacities, etc. Staff plans to generate a series of charts and 3-D graphics (goal is late-April) for presentations of the initial findings to pertinent Board committee(s), to be followed by a detailed technical memorandum in summer 2010. Based on the results of the focused pilot project, the Board will need to determine if funding for a broader study is desired, and consider this possibility in the FY 2010-2011budget.
Task 4: Research reasons why people requested replacement wells (exemptions).	This task is just beginning.
Task 5: Assess whether replaced wells have potential as monitoring sites.	This task is just beginning.
Task 6: What type of monitoring program (and costs) in the Carmel Valley Upland areas is needed to assess its hydrologic health?	A decision on this task is pending the outcome of the pilot study (see Task 3).
Task 7: Prepare legal overview (summary) on water rights associated with these types of wells, and under what conditions could MPWMD constrain use.	Due to higher priorities for District Counsel, this task has not been requested to date. In general, property owners with overlying water rights to percolating groundwater have correlative (shared) water rights, and may use water for a “reasonable and beneficial use.”
Task 8: Consider MPWMD ordinance to require access for well monitoring, prohibit Cal-Am bailout, and allow exemption for an inactive well for only 3 years, with proof of adequate 72-hour pumping test.	Planning & Engineering staff is working with Water Demand Division (WDD) staff to add WDS-related changes to Rule 20-A (exemptions) and Rule 22-D (mandatory conditions of approval) into planned ordinances to be submitted by WDD to come before the Board in May-June 2010 timeframe.
Task 9: Address concerns about cumulative effects on Carmel River and Carmel Valley Alluvial Aquifer (CVAA).	This is a longer-term task that is pending Board decisions about the budget and priorities. Level of effort and cost depends on level of detail, comprehensiveness and reliability of conclusions desired. See also Task 3.
Task 10: Assess whether Carmel Woods property owners would fund a monitor well in their area to track trends.	This task depends on the results of pilot study, and whether a suitable existing monitor well is already available. See also Task 3.
Task 11: Update the MPWMD website with a memorandum on wells in the Coastal Zone.	Coordination with County Planning staff has begun. Goal for a new WDS Memorandum and the website update is May-June 2010.

Regarding Exhibit 3-A, in the nine years since Ordinance No. 96 was adopted in March 2001, more than 70 WDS permits have been issued, primarily for residential use. Roughly seventy five percent (75%) of these permitted WDS (55 approvals) are served by wells extracting water from “fractured rock” formations. An estimated 30 Pre-Applications, Exemption Requests or full WDS Applications in progress could potentially be approved. The Water Year 2008 production report lists more than 400 existing non-CAW wells in fractured rock formations, including 292 in the Carmel Valley Upland area, 96 in the “Miscellaneous” area (primarily Jack’s Peak, Carmel Highlands and Highway 68 near the Monterey Airport), and 20 in the Seaside Groundwater Basin. These figures do not include wells owned and operated by CAW.

Exhibit 3-A provides an overview of Applications and Pre-Applications four categories:

Ø Applications deemed complete; permit documents in preparation for approval by District Engineer (1 project);

Ø Applications that are incomplete or are suspended for some other reason, such as County well status for Coastal Zone parcels (6 projects, though Chopin is expected to submit formal County approval documents very shortly);

Ø Pre-Applications/Exemption Requests received but not completed (11 projects);

Ø Pre-Applications that need review to provide guidance before applicant submits a full Application package (13 projects)

EXHIBITS

3-A Pending WDS Applications for Fractured Rock Wells as of March 22, 2010

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