ITEM:

ACTION ITEM

 

19.

CONSIDER ADOPTION OF DRAFT RESOLUTION NO. 2022-06 IN SUPPORT OF ACTIVATION OF LATENT DISTRICT POWERS

 

Meeting Date:

February 24, 2022

Budgeted: 

No

 

From:

David J. Stoldt,

Program/

N/A

 

General Manager

Line Item No.

 

Prepared By:

David J. Stoldt

Cost Estimate:

N/A

 

General Counsel Review: 

Committee Recommendation:  N/A

CEQA Compliance:  This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

 

SUMMARY: The Local Agency Formation Commission (LAFCO) of Monterey County will meet February 28, 2022 to have a public hearing on the District’s Application for Reconsideration of Resolution No. 2022-01 of the Local Agency Formation Commission Disapproving the Monterey Peninsula Water Management District's Proposed Activation of Latent Powers, (LAFCO File #21-01).

 

In the District’s application for reconsideration, the District proposed it adopt a Resolution in support of activation of its latent powers, whereby the District will commit to:

 

(A) Engage in good faith dispute resolution efforts with local taxing agencies that are projected, as of the date of this Resolution, to lose more than $5,000 in annual property tax revenue due to Cal-Am assets becoming subject to public ownership and thus exempt from property taxes. The District shall use its best efforts to enter into legally permissible agreements which may include provisions to reduce the net impact of lost tax revenue over a five to seven-year transition period, or longer if warranted by unique facts, for each affected Local Taxing Agency.

 

(B) If the acquisition of the Monterey Water System is approved in Superior Court, act as an intervenor in any California Public Utilities Commission (CPUC) proceeding related to any Cal-Am Monterey County satellite water system or wastewater system.  In such a proceeding, the District will strongly encourage the CPUC to continue the rate structure presently in place for the Chualar division and to argue for the inclusion of such water and wastewater systems to be treated in the most economical manner for ratepayers, including annexing into the Cal-Am Northern Division and/or seeking operating subsidies from Cal-Am divisions statewide.

 

(C) Finalize an agreement to establish an initial framework for future discussions with Marina Coast Water District (MCWD) and the affected jurisdictions on how to address long-term water service needs in the areas where the District’s boundaries overlap with MCWD’s boundaries or future study areas, contingent on the acquisition of the Monterey Water System as approved in Superior Court.

(D) Secure a viable permanent water supply, without new commitments of Salinas Valley water, and to advance a desalination or other project when determined to be necessary for the water supply needs of the Peninsula.

 

All commitments are contingent on the acquisition of Cal-Am’s Monterey Water System proceeding.

 

RECOMMENDATION:  The General Manager recommends the Board adopt Resolution 2022-06 in support of activation of its latent powers.

 

EXHIBIT

19-A    Draft Resolution No. 2022-06

 

 

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