ITEM:		PUBLIC HEARING
16.	CONSIDER SECOND READING AND ADOPTION OF ORDINANCE NO. 192 TO DEFINE MONTAGE HEALTH’S MAIN CAMPUS, CARMEL HILLS PROFESSIONAL CENTER, AND RYAN RANCH CAMPUS AS THE “COMMUNITY HOSPITAL SITE” AND AMEND DEFINITIONS OF “SITE” AND “PARCEL”
Meeting Date:			September 19, 2022	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Locke	Cost Estimate:	N/A
General Counsel Review: Yes
Committee Recommendation: The Water Demand Committee voted unanimously to recommend approval at its July 7, 2022, meeting.
CEQA Compliance: An Initial Study and Notice of Intent to Adopt a Negative Declaration was circulated for 20 days. No comments were received. The Board should adopt the Negative Declaration as part of its consideration of adoption.

SUMMARY: Draft Ordinance No. 192 (Exhibit 16-A) responds to direction from the Board of Directors to prepare an ordinance that amends Rule 11, Definitions, to define the Ryan Ranch Campus as a “Community Hospital Site” for future expansions and establish a process for the Montage Health properties (Community Hospital of the Monterey Peninsula [CHOMP] and Ryan Ranch Campus) to utilize their existing unused “hospital water use limit” of 119.28 Acre-Feet Annually (AFA) of water that is approved on Assessor’s Parcel Number 008-132-011.

The following summarizes the sections of Ordinance No. 192:

1. Rule 11 (Definitions) is amended to add a new definition for “Community Hospital Site.”

COMMUNITY HOSPITAL SITE - “Hospital Site” shall mean all facilities and properties owned by Montage Health that are patient care facilities located at the following parcels (Assessor’s Parcel Numbers: 008-132-011, 259-221-002, 259-221-004, and 008-132-005) within the MPWMD and that are supplied water by California American Water.

2. Rule 11 (Definitions) is amended to add “Community Hospital Site” to the definition of “Site.”

SITE - “Site” shall mean any unit of land which qualifies as a Parcel under the Subdivision Map Act, and shall include all units of land: (1) which are contiguous to any other Parcel (or are separated only by a road or easement), and (2) which have identical owners, or (3) are an Accredited Institution of Higher Education Site, a Department of Defense Site, a Jurisdiction Site, or a Public School District Site, or Community Hospital Site. The term “Site” shall be given the same meaning as the term “Parcel.”

3. Rule 11 (Definitions) is amended to add “Community Hospital Site” to the definition of “Parcel.”

PARCEL - “Parcel” shall mean any unit of land which qualifies as a Parcel under the Subdivision Map Act, and shall include all units of land: (1) which are contiguous to any other Parcel (or are separated only by a road or easement), and (2) which have identical owners, or (3) are an Accredited Institution of Higher Education Site, a Department of Defense Site, a Jurisdiction Site, or a Public School District Site, or Community Hospital Site. The term “Parcel” shall be given the same meaning as the term “Site.”

A similar consideration was given to Primary and Secondary Public School District Sites when the Board adopted Ordinance No. 162 on August 18, 2014, to amend Rule 11 and add definition for “Public School District Site.” Similarly, the Board adopted Ordinance No. 176 on February 6, 2017, to amend Rule 11 and added definitions for “Accredited Institution of Higher Education Site” and “Jurisdiction Site”.

The Water Demand Committee supports and recommends the Board approve the proposed process to allow utilization of the existing “hospital water use limit” at the Ryan Ranch Campus owned by Montage Health.

An Initial Study and Notice of Intent to Adopt a Negative Declaration (Exhibit 16-B) was filed with the County Clerk on August 18, 2022. The review period was from August 18 through September 8, 2022. No comments were received, and the Board should consider adoption of the following Negative Declaration before adoption of the ordinance:

FINDING: Based on the Initial Study and the analysis, documents and record supporting the Initial Study, the Monterey Peninsula Water Management District Board of Directors finds that adoption of Ordinance No. 187 does not have a significant effect on the environment.

RECOMMENDATION: Following a public hearing, the Board should approve the CEQA finding and approve adoption of Ordinance No. 192. Staff will file the appropriate Notice of Determination following adoption.

BACKGROUND: Montage Health in the Ryan Ranch Campus must obtain a Water Permit for a 50,000 square-foot cancer treatment building, which has been planned and pre-approved by the City of Monterey. Using Rule 24, Table 2, Non-Residential Water Use Factors, the proposed medical building has an anticipated Water Use Capacity of 3.5 AFA. However, the Ryan Ranch System is under a moratorium on new Connections and Intensification of Use. Due to the shortage of land at the CHOMP Site, medical buildings were constructed in Ryan Ranch in the City of Monterey. The Ryan Ranch Campus currently consists of four medical buildings, including the breast care center. These buildings obtained Water Permits by obtaining Seaside Basin water rights from private entities at a high purchase cost. CHOMP is clearly a unique water user in the community and its facilities are beneficial to residents of Monterey County. Montage Health must have the facilities to provide treatment and services to its patients.

On July 21, 2003, the Board approved Special Circumstances, pursuant to Rule 24-G, setting a “hospital water use limit” of 119.28 AFA for CHOMP. The hospital water use limit is restricted to hospital related uses on Assessor’s Parcel Number: 008-132-011, which is the Site of the main hospital building on Holman Highway. CHOMP’s actual consumption usage has an average use of 82.606 AF per year, resulting 36.674 AF of water under the “hospital water use limit” of 119.28 AF.

Montage Health’s mission and commitment is to deliver exceptional value-based care for all people in Monterey County. To do this, Montage Health needs to have the water for its projects so that it can comply with District law when a project moves forward.

Ordinance No. 192 amends Rule 11, Definitions, to clarify definitions of “Site”, “Parcel” and introduces a new definition of “Community Hospital Site,” making the Carmel Hills Professional Center and the Ryan Ranch Campus part of the “Community Hospital Site” that was recognized when the Board approved CHOMP’s “hospital water use limit” of 119.28 Acre-Feet (AF). This approval will allow the issuance of a Water Permit for the important cancer treatment building.

EXHIBITS

16-A Draft Ordinance No. 192

16-B Initial Study and Notice of Intent to Adopt Negative Declaration

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