ITEM:

PUBLIC HEARING

 

12.

CONSIDER FIRST READING OF ORDINANCE NO. 187 -- (1) ESTABLISHING THE DEPARTMENT OF DEFENSE AS A JURISDICTION AND ADDING A WATER USE CREDIT PROCESS SPECIFIC TO THE DEPARTMENT OF DEFENSE, AND (2) AUTHORIZING THE GENERAL MANAGER TO EXTEND WATER USE CREDITS FOR ONE YEAR FOR JUSTIFIABLE CAUSE

 

Meeting Date:

January 25, 2021

Budgeted: 

N/A

 

From:

David Stoldt

Program/

N/A

 

General Manager

Line Item No.:

 

 

 

 

Prepared By:

Stephanie Locke

Cost Estimate:

N/A

 

General Counsel Review:  Yes.

Committee Review:  The Water Demand Committee reviewed the draft ordinance on January 7, 2021, and recommended approval.

CEQA Compliance:  An initial study has been prepared and will be filed with the County Recorder’s office and distributed to interested parties for comment. 

 

SUMMARY:  Draft Ordinance No. 187 (Exhibit 12-A) responds to direction from the Water Demand Committee to prepare an ordinance that establishes a process for the Department of Defense properties (e.g. those properties owned by the Army, Navy, and Coast Guard) to have an extended length of time to utilize Water Use Credits[1], to reinstate credits that have expired during the newly extended period of time, and to recognize the Department of Defense as a Jurisdiction for future water Allocation.  A similar consideration was given to Redevelopment Agency Sites when the Board adopted Ordinance No. 121 on August 15, 2005, to extend credit for Redevelopment Projects for up to 20 years.  Staff’s estimate of an extension to the Department of Defense Sites would extend/reinstate approximately 25 acre-feet of Water Use Credits.  The ordinance also authorizes the General Manager to extend a Water Use Credit for up to one year for justifiable cause.

 

An Initial Study has been prepared and will be filed and circulated prior to consideration of second reading and adoption.  The California Environmental Quality Act (CEQA) certification will occur during the second reading and consideration of adoption of this ordinance.

 

The draft ordinance was reviewed by the Water Demand Committee who recommended the Board approve the ordinance.  A letter in support of the ordinance from the Presidio of Monterey is attached as Exhibit 12-B.

 

DISCUSSION:  Staff has long been aware of the significant amount of time it often takes for federally funded projects to receive appropriations to begin construction.  Conversations with representatives of both the Presidio of Monterey (Army) and the Naval Support Activity (the two largest Department of Defense entities served by Cal-Am) resulted in requests for future Allocation of water separate from the City of Monterey’s Allocation and an extension in the length of time a Water Use Credit is valid.  Both facilities are in Monterey, which has no water available.

 

The Department of Defense facilities (including the Naval Postgraduate School and the Naval Support Activity, the Defense Language Institute Foreign Language Center and the U.S. Army Garrison, Presidio of Monterey, the Fleet Numerical Meteorology and Oceanography Center, and the U.S. Coast Guard Station Monterey) may need Water Use Credits to permit projects in the next few years, many of which have been planned and approved, but have not received funding.  The Army (Presidio of Monterey) undertook a number of retrofit projects in the early 2000’s in anticipation of receiving federal construction funding, and when federal funding did not materialize the credits expired.  The shortage of space at the Presidio of Monterey often results in the untimely demolition of buildings before/after construction of new ones, resulting in a Water Use Credit that is not available to offset a project.  Staff, faculty, and students must wait for construction of the new building before vacating the old one for demolition.  The opposite is also true where buildings are demolished to make space for new construction that is dependent on federal funding that may not come through. 

 

The Presidio has 7.11 Acre-Feet of documented Water Use Credit that will expire under the current rules in 2021.  The success of the Presidio’s mission to train military linguists depends on its ability to modernize and expand its training facilities. In order to do this, the Presidio needs to have enough Water Use Credit available to offset its projects so that it can comply with District law when a project moves forward. 

 

Ordinance No. 187 amends Rule 25.5 to extend Water Use Credits at Department of Defense Sites for an additional ten years, making the credit available for a total of 20 years.  It is anticipated that the current lack of water for construction will be replaced with new Allocations in the next several years when the Peninsula’s water supply is legalized and expanded.  Allocations to each of the branches of the Department of Defense can be determined at that time.  In the meanwhile, the extension of credit to Department of Defense Sites will facilitate national security and the mission of these important facilities.

 

RECOMMENDATION:  Following a public hearing, the Board should approve the first reading of Ordinance No. 187.

 

EXHIBIT

12-A    Draft Ordinance No. 187

12-B    Letter of Support

 

 

 

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[1] Capitalized terms are defined in MPWMD Rule 11.