EXHIBIT 2
DRAFTCONDITIONS OF APPROVAL FOR
MONTEREY BAY SHORES WATER DISTRIBUTION SYSTEMMONTEREY PENINSULA WATER MANAGEMENT DISTRICT
October 26, 2000
[new text and substantive revisions in bold italic]
1. The Monterey Bay Shores Water Distribution System (WDS) serves the following Assessor's Parcels:
APN# 011-501-014, to be divided into multiple APNs in the future.2. The Monterey Bay Shores WDS is authorized by the Monterey Peninsula Water Management District (MPWMD) to provide potable water for residential, commercial and landscape use on the parcels identified in Condition No. 1.3. The system capacity limit for the Monterey Bay Shores WDS is set at 109.4 acre-feet production per year. The expansion capacity limit is set at 325 water connections in order to serve the proposed development project known as the Monterey Bay Shores Resort, a 495-unit mixed use (visitor-serving/residential) project approved by the City of Sand City on November 17, 1998 in compliance with the California Environmental Quality Act (CEQA).
4. This MPWMD permit is contingent upon approval of the Monterey Bay Shores Resort project by the California Department of Health Services and the California Coastal Commission. Any changes to the project size by these agencies during the course of project approval shall be reported to MPWMD by the applicant within 30 days of final approval by these agencies. Within 90 days of receipt of such report, the MPWMD General Manager shall recommend whether the limits for annual water production or the total number of connections described in Condition No. 3 should be amended, based on the approved project description and the MPWMD water use factors in existence at that time. The General Manager's recommendations will be considered by the MPWMD Board. Approved changes to this MPWMD permit shall be reported to other permitting agencies.
5. The applicant shall execute an indemnification agreement that holds the District harmless and promises to defend the District from any claims, demands, or expenses of any nature or kind arising from or in any way related to the adequacy of the water supply for the Monterey Bay Shores WDS.
6. The Monterey Bay Shores WDS shall comply with District rules relating to water well registration, and annual reporting of water production within the Monterey Bay Shores WDS (Rules 52 and 54).
7. All production wells within the Monterey Bay Shores WDS shall report production by the Water Meter Method (Rule 56).
8. The Monterey Bay Shores WDS shall comply with all District water conservation ordinances that pertain to residential, commercial and landscape use. Under existing ordinances, the District requires that each unit install water closets with a capacity of 1.6 gallons or less, and shower heads with a maximum flow rate of 2.5 gallons per minute for new construction and remodels. In addition, all new construction shall install on-demand hot-water systems, drought tolerant landscapes, and drip irrigation where appropriate.
9. No water meter connections to the Monterey Bay Shores WDS may be set until a water connection permit has been secured from the District for each connection in accordance with MPWMD regulations governing issuance of water connection permits. Connection charges shall be calculated based on water demand estimates using the District's water demand methodology.
10. There shall be no intertie between the Monterey Bay Shores WDS and the California-American Water Company (Cal-Am) system. This condition can be changed only if a cooperative agreement between Cal-Am and the applicant is approved by the MPWMD and State Water Resources Control Board (SWRCB) as described in Condition No. 12.
11. The applicant shall carry out the following mitigation measures on the project site to reduce total and seasonal extractions from the Paso Robles Formation:
(a) extract subpotable irrigation water from shallow dune sand aquifer underlying the site (estimated 4 AFY);(b) construct one-million gallon storage tank (or size consistent with final approved project description) to reduce peak summer demand and dampen seasonality of extractions from Paso Robles Formation;
(c) locate project production well as far away from coast as possible;
(d) reduce project water use via use of low-flow fixtures and other water-saving devices; (e) install drought-resistant landscaping pursuant to Condition No. 8;
(f) construct and maintain monitor wells on site; report quarterly water quality data to District hydrogeologist. The applicant and MPWMD shall develop a formal agreement within 120 days of final permit approval by MPWMD to govern future monitoring and reporting efforts; and
(g) Measures required in Condition No. 13 as specified by the District.
12. The applicant shall co-fund a pro-rata share of the regional efforts to reduce cumulative effects of extractions on the Seaside Groundwater Basin coastal subareas that are listed below. This permit shall not vest until the applicant and MPWMD General Manager develop a signed agreement to govern future pro rata funding. The agreement should include, at a minimum, define (a) how the pro-rata proportion will be determined, assuming the MBSR system capacity limit described in Condition No. 3 of this permit (unless amended as described in Condition No. 4); (b) the type of payment or bond; (c) when payment begins and the duration of payment; (d) how the quantity of funding shall be determined, including total capital and project operating expenses; (e) documentation requirements; and (f) other components as needed. The regional efforts include, but are not limited to:(a) move Cal-Am production wells farther inland;(b) implement artificial recharge projects to increase basin water levels; an example is the MPWMD injection/recovery project, where excess Carmel River flow is injected into the Seaside Basin coastal areas;
(c) construct Sand City or regional desalination project that would result in reduced extractions from the Seaside Basin coastal areas;
(d) coordinate with SWRCB to assess feasibility of amending Order WR 95-10 to allow Cal-Am to serve Monterey Bay Shores WDS from Cal-Am inland wells in exchange for the applicant to cease extractions from shoreline wells on the Monterey Bay Shores property. Implement this operational change if approval is gained from the SWRCB, pending a public hearing held by MPWMD.
(e) action by MPWMD to require reduced pumping by Seaside coastal area extractors to meet specified production targets as described in Condition No. 13.
13. If, following a public hearing, the District Board determines that an overall reduction in water production from the Seaside Basin coastal subareas is required to maintain the long-term reliable yield and/or address cumulative adverse environmental impacts to the basin, the applicant shall reduce extractions in proportion with other water users in the Seaside Basin, as specified by the District. The number of acre-feet to be reduced by the MBSR system shall be based on the system production limit of 109.4 AFY (or other value pursuant to Condition No. 4) and the percent reduction for the basin identified by the District. The required reduction in water use shall extend for no longer than such reductions are necessary to reduce environmental effects to a less than significant level, as determined by the District. Before this permit is vested and enjoyed, the applicant shall submit a Water Use Reduction Plan, to be approved by the MPWMD General Manager, that describes how a 10%, 20% and 30% reduction would be achieved during the specified emergency period.Further, the applicant shall prepare a preliminary engineering design, cost estimate and environmental summary (including assessment of desalination project impacts and mitigation measures) for an on-site desalination project sized to produce up to 109.4 AFY. The technical information must be prepared by qualified professionals and approved by the MPWMD General Manager before this water distribution system permit is vested. At the direction of the District, the applicant shall design, obtain permits for, and construct the desalination project if other measures defined in Conditions No. 11 and 12 above are determined to have failed to reduce the applicant's share of the cumulative impact.
14. Any intensification or expansion of the water distribution system shall require a new application and permit (MPWMD Rules 22 and 24).
15. Upon Board approval of this permit, the applicant shall pay to the District the invoiced cost for MPWMD staff time spent to process the permit subsequent to the November 4, 1999 application date. The applicant is not charged for the first 20 hours of staff time. The applicant will be provided documentation to support the invoiced amount. This permit is not valid until payment for the invoiced amount is received by MPWMD.
16. Upon finalization of these conditions, the applicant shall sign a form titled, "Acceptance of Permit Conditions for Creation of Monterey Bay Shores WDS." By signing the form, the applicant acknowledges that he/she understands and accepts these conditions as a binding part of the permit approval, and agrees to carry them out faithfully. This permit is not valid until the signed acceptance form has been received by MPWMD.
17. The permit granted herein is subject to revocation in the event applicant does not fully comply with the provisions set forth in each condition above.
U:\henri\wp\ceqa\2000\mbsfindcond091800.wpd
includes refinements by DF, 10/19/00
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