ITEM:

PUBLIC HEARING

 

30.

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

 

Meeting Date:

June 21, 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:  Staff is recommending a Negative Declaration be approved before adoption of the ordinance.

 

SUMMARY:  Draft Ordinance No. 187 (Exhibit 30-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 up to twenty years to utilize Water Use Credits[1], to reinstate credits that have expired between ten and twenty years ago, and to recognize the Department of Defense as a Jurisdiction for future water Allocations.  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 twenty years.  This action will reinstate between 10-18 Acre-Feet of Water Use Credit at Department of Defense Sites. 

 

Unrelated to the Department of Defense action: The ordinance also authorizes the General Manager to extend a Water Use Credit for up to one year for justifiable cause.  An example would be a project that transferred ownership close to the expiration of the credit where there is an active project pending a Water Permit. 

 

An Initial Study was prepared and circulated prior to consideration of second reading and adoption.  In completing the Initial Study, staff found that a Negative Declaration would be appropriate, and that the Board should adopt findings prior to adoption.  As of the writing of this staff report, no comments had been received, but staff will provide an update at the Board’s meeting.

 

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 was included in the January 2021 staff report, and the Naval Support Activity Monterey supported the ordinance during consideration of first reading.

 

RECOMMENDATION:  Following a public hearing, the Board should:

 

1.      Adopt a Negative Declaration attached as Exhibit 30-B and direct staff to file the document with the County Clerk.

 

2.      Adopt Ordinance No. 187.

 

BACKGROUND:  Staff has long been aware of the significant amount of time it often takes for federally funded projects to receive appropriations to begin construction. Representatives of both the Presidio of Monterey (Army) and the Naval Support Activity Monterey (the two largest Department of Defense entities served by Cal-Am) have expressed the need to receive separate water Allocations from future water supplies. Currently, their water needs were included in the City of Monterey’s Allocation.  Both facilities are in Monterey, which has no water available.

 

In the interim, the Department of Defense facilities (including the Naval Postgraduate School at the Naval Support Activity Monterey, 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) 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 under the current ten-year limit.   

 

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.

 

The Board of Directors approved the first reading of Ordinance No. 187 at the January 25, 2021, meeting.  During the meeting, the Naval Support Activity Monterey requested additional time to work with staff to document permit and credit activity and to evaluate the proposed ordinance.  The Board approved the first reading and directed staff to work with the Navy (which was successful) and scheduled the second reading for four months later.  However, with the addition of one Board member in late January 2021, and the lapse of time, the Chair requested that a second first reading take place in May before consideration of adoption in June 2021.

 

EXHIBITS

30-A    Draft Ordinance No. 187

30-B    CEQA Negative Declaration

 

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