ATTACHMENT 1

DRAFT 4—May 14, 2003

EIR on Termination of MPWMD Water Credit Transfer Program

REVIEW OF EIR ISSUES

This memorandum provides additional information on the issues the EIR on termination of the MPWMD water credit transfer program (WCTP) should address and the potential activities the consultant will need to undertake to address the issues. This guidance will be organized by the tasks previously identified in the RFP, as follows:

Task 1- Prepare EIR Notice of Preparation and hold scoping meetings

Task 2- Prepare Scoping Report and recommended DEIR format/approach

Task 3- Compile background information from MPWMD staff and other sources

Task 4- Prepare analysis of physical impacts associated with economic effects

Task 5- Prepare administrative draft EIR for internal review

Task 6- Prepare Draft EIR and hold public hearing to receive oral comments

Task 7- Prepare summary of comments along with a work plan and approach for Final EIR, based on the comments received

Task 8- Prepare administrative Final EIR for internal review

Task 9- Prepare Final EIR and CEQA certification Findings

Task 10- Participate in meetings and phone consultations

Task 1: Prepare EIR Notice of Preparation and Hold Scoping Meetings

The consultant will prepare a draft Notice of Preparation (NOP) pursuant to CEQA Section 21080.4 for District review; the consultant will then finalize the NOP. The MPWMD will transmit the NOP to agencies and the public. District staff will arrange for the public scoping meetings. The consultant will prepare and present materials for an afternoon and evening session held on the same day. District and consultant staff will work together to facilitate receipt of oral comments; written comments provided during the 30-day public comment period will be provided to the consultant.

The NOP will describe the proposed project, alternatives, previously identified environmental issues, and issues identified as not likely to result in a significant adverse impact. The proposed project is termination of the existing WCTP as defined in MPWMD Rule 28-B. The three alternatives (with some potential refinement) are as follows:

Alt. 1 = WCTP as defined in Rule 28-B is in effect (assumed to be the No Project alternative pursuant to Ordinances No. 107 and 108, which will become effective as of June 18, 2003 if approved by the Board on May 19, 2003).

Alt. 2= Enact amended water credit transfer program as described in Ordinance 101.

Alt. 3= Enact water credit transfer program based on Ordinance 101 with the further restrictions to be defined by the MPWMD Board no later than June 16, 2003.

The proposed project is to be evaluated at the project level of detail and the alternatives are to be evaluated at a lesser level of detail, in compliance with CEQA.

Task 2: Prepare Scoping Report, and Recommended DEIR Outline and Approach

The consultant will prepare a Scoping Report that summarizes the issues raised by the oral and written comments. The consultant will prepare a draft outline and approach for the EIR for review by District staff, based on the results of the Initial Study and the scoping comments received. The consultant will then prepare a final outline to serve as a guide for the EIR.

The District believes the EIR should address several important questions that reflect concerns raised by the public in previous years as well as jurisdiction litigants in 2002. These include:

Ø Does the WCTP program as currently defined in Rule 28-B (No Project) save water or not?

Ø Would alternative versions of the current program result in an improved or worsened environmental situation?

Ø What are the direct beneficial and adverse environmental impacts to the Carmel River, and its alluvial aquifer, Seaside Groundwater Basin, and other water resources associated with the proposed project and the three alternatives?

Ø What other environmental effects would occur with or without a WCTP (alternatives)?

Ø Would lack of the WCTP as currently defined in Rule 28-B cause a direct adverse change to the environment or a reasonably foreseeable indirect physical change in the environment due to economic changes?

Ø Would redevelopment and urban infill be prevented or jeopardized without a WCTP, resulting in urban blight or deterioration of existing businesses?

Ø Without a WCTP, would existing businesses move elsewhere resulting in adverse impacts to other water supplies, including areas on the former Fort Ord?

Task 3: Compile Background Information

MPWMD staff will provide background information on the following subjects to the selected consultant as information is available:

Ø MPWMD Rules and Regulations,

Ø WCTP history references, including map of the affected area, list of affected jurisdictions, and pertinent ordinances, including Ordinance No. 101,

Ø Excerpts from litigation documents expressing litigants’ concerns,

Ø Existing water resources system and supply setting, including action by the State Water Resources Control Board and other agencies,

Ø Water use factors for different types of residential and commercial situations,

Ø Water credit transfers that have occurred in the past, including donor and recipient sites and number of acre-feet involved (use data up until one month prior to admin. Draft EIR)

Ø Copies of earlier reports evaluating the WCTP,

Ø Identified transfers that potentially could occur in the future,

Ø District and Cal-Am Water Co. conservation efforts and results (water use trends),

Ø Potential sources of water supply other than the WCTP,

Ø Agreements between MPWMD and other parties regarding management of water in the former Fort Ord and water related information associated with Fort Ord Reuse Plan.

The consultant is responsible for compiling land use information from General Plans and Redevelopment Plans from affected jurisdictions, as well as other regional planning documents or other information needed for the economic analysis.

Task 4: Prepare Analysis of Physical Impacts Associated with Economic Effects (Potential Blight or Business Relocation)

The consultant will prepare an analysis of the environmental impacts of terminating the WCTP if it would cause blight (economic deterioration), exacerbate existing blight or cause businesses or other uses to locate outside of the District's jurisdiction and utilize or develop other water supplies.  This will necessitate an economic analysis of the likelihood that terminating the WCTP would lead to blight or use of water supplies not under the control of the District.  The potential for businesses or other uses to locate at Ford Ord if the WCTP were terminated should be assessed.  From this economic analysis, the environmental impacts can be assessed.

Task 5: Prepare Administrative Draft EIR

Fifteen copies of the Administrative Draft EIR will be provided to the MPWMD for internal review and comment. The EIR should comply with CEQA in terms of content and level of detail. Specific chapters or subsections will be based on the results of the Scoping Report. The EIR should include a Summary suitable for the non-technical reader. It is assumed that the EIR will include detailed chapters/sections on the following topics in light of the questions posed under Task 2:

Ø Land Use: including population, housing, economic growth and redevelopment;

Ø Water Supply: including water savings, water from the WCTP and other sources;

Ø Issues Determined Not to Be Significant (from NOP and Scoping Report).

Task 6: Prepare Draft EIR; Hold Public Hearings

The consultant will revise the Administrative Draft EIR based on one set of consolidated comments from MPWMD staff and will prepare a Draft EIR for publication. A total of 100 copies of the Draft EIR will be provided, including 15 copies for the State Clearinghouse. The document will also be provided to the District in electronic format (CD). The District will prepare the State Clearinghouse Notice of Completion Form and will provide appropriate public notice of the availability of the Draft EIR and background documents.

The consultant will attend one formal public hearing on the Draft EIR, assuming the District’s practice of an afternoon and evening session on the same day.

Task 7: Prepare Summary of Comments, and Work Plan for Final EIR

The consultant will prepare a Summary of Comments that highlights the issues raised by the oral and written comments on the Draft EIR. The consultant will prepare a draft outline and approach for the Final EIR for review by the District Board, at which time there will likely be consideration of a contract amendment. Based on Board direction, the consultant will then prepare a final outline to serve as a guide for the EIR.

Task 8: Prepare Administrative Final EIR

Fifteen copies of the Administrative Final EIR will be provided to the MPWMD for internal review and comment.

Task 9: Prepare Final EIR and CEQA Certification Findings

The consultant will revise the Administrative Final EIR based on one set of consolidated comments from MPWMD staff and will prepare a Final EIR for publication and CEQA Certification Findings in cooperation with District staff and legal counsel. A total of 100 copies of the Final EIR will be provided. The document will also be provided to the District in electronic format (CD). The format of the Final EIR will be determined as part of the Board direction described in Task 7. The District will prepare the appropriate CEQA forms and public notices regarding any decision about the WCTP based on the Final EIR. The consultant will attend one formal public hearing in the evening on the Final EIR and Certification Findings.

Task 10: Participate in Meetings and Phone Consultations

The consultant will attend an all-day start-up meeting and up to four multi-hour meetings at MPWMD offices, and will participate in up to six telephone conference calls of about one half hour or more concerning the EIR, in addition to the public meetings and other tasks described above. It may be prudent to identify a contingency amount for unanticipated meetings and consultations.

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H.Stern, DRAFT 4, 5/14/03 4 pp