EXHIBIT 16-A
RESOLUTION NO. 2004-11
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE MONTEREY PENINSULA WATER MANAGEMENT DISTRICT
OPPOSING AN ANTICIPATED REQUEST BY
CALIFORNIA-AMERICAN WATER THAT THE
CALIFORNIA PUBLIC UTILITIES COMMISSION ESTABLISH A
TEMPORARY MORATORIUM ON NEW WATER CONNECTIONS
IN THE SHORTAGE-AFFECTED AREAS OF ITS MONTEREY DISTRICT
WHEREAS, California-American Water (Cal-Am) has filed an application on June 16, 2004, with the California Public Utilities Commission (CPUC) indicating that it would seek a temporary moratorium on all new and expanded water service connections in its Monterey District; and
WHEREAS, the CPUC on July 8, 2004 directed Cal-Am to file said application within ninety days; and
WHEREAS, Cal-Am has already held a public hearing pursuant to Water Code Section 351 to receive public protest against its anticipated declaration of a water shortage emergency condition within its Monterey District; and
WHEREAS, imposition of a moratorium has significant economic consequences to the many projects currently in the development process for which jurisdictional allocations have been committed; and
WHEREAS, unaccounted-for water lost through leaks in an aging Cal-Am infrastructure more than offsets any water available for allocation, thereby obviating the need for a moratorium; and
WHEREAS, the alleged water shortage emergency condition is created because of a regulatory condition established by the State Water Resources Control Board (SWRCB) in Order No. WR 95-10 (Order 95-10) when it determined that 69 percent of Cal-Am’s water extractions from the Carmel River system were without benefit of legal right; and
WHEREAS, there has been no recognition by either Cal-Am nor the CPUC of the authority granted to the SWRCB Chief, Division of Water Rights, to modify the regulatory constraint of a 20 percent conservation goal which could avoid the need for a moratorium on all new and expanded water service connections; and
WHEREAS, the Monterey Peninsula Water Management District (MPWMD or District) has previously implemented a water allocation program, set standards for the issuance of water connection permits, and established an annual production limit for the Cal-Am water distribution system; and
WHEREAS, paragraph 3(b) of Order 95-10 specifically states that to the extent the conservation requirement conflicts with prior commitments (allocations) by the District, the Chief, Division of Water Rights, shall have the authority to modify the conservation requirement; and
WHEREAS, the Paralta Well came on line in the Seaside Coastal Ground Water Basin in 1993 which ended a moratorium and expanded the supply of water available for allocation by 385 AF; and
WHEREAS, paragraph 4 of Order 95-10 directed that water production from the Seaside Basin should be maximized for the purpose of serving existing connections, honoring existing commitments (allocations), and to reduce diversions from the Carmel River; and
WHEREAS, the District also recognizes pre-Paralta credits and public credits, all of which would be affected by a moratorium; and
WHEREAS, the District has the authority under District law at Section 332 to restrict the use of water during any emergency caused by an existing water shortage should the SWRCB Chief, Division of Water Rights, determine that the existing allocations will not be honored or must be modified to conform to Order 95-10; and
WHEREAS, the use of Water Code section 350 by Cal-Am is inappropriate under the existing circumstances because the current situation does not result in depleting Cal-Am’s water supply to the extent there would be insufficient water for human consumption, sanitation, and fire protection.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA WATER MANAGEMENT DISTRICT that the District hereby expresses its strong opposition to Cal-Am’s anticipated CPUC request for a temporary moratorium on new water connections and expansion of existing water connections in the shortage-affected areas of Cal-Am’s Monterey District.
RESOLVED FURTHER that the Board recognizes the severe economic consequences which result from a moratorium and the disruption to the jurisdictions’ planning process whereby allocations have been committed and projects pursued in reliance on the availability of water.
RESOLVED FURTHER that the Board directs its Chair, General Manager, staff and legal counsel to pursue all actions necessary for this matter to be promptly reviewed by the SWRCB Chief, Division of Water Rights and, if necessary, by the State Water Resources Control Board itself.
RESOLVED FURTHER that the Board directs its Chair, General Manager, staff and legal counsel to vigorously oppose any application for a moratorium, temporary or permanent, filed by Cal-Am with the CPUC and to aggressively seek a reduction in unaccounted-for water losses in the aging infrastructure serving Cal-Am’s Monterey District.
RESOLVED FURTHER that the Board Secretary is hereby directed to send a copy of this resolution to: Victoria Whitney, SWRCB Chief, Division of Water Rights; Izetta Jackson Director CPUC Water Division; all CPUC Commissioners; Administrative Law Judge James C. McVicar and to all members of the State Water Resources Control Board.
On motion by Director _______ and seconded by Director _____, the foregoing resolution is duly adopted on this 19th day of July 2004 by the following votes:
AYES:
NOES:
ABSENT:
I, David A. Berger, Secretary to the Board of Directors of the Monterey Peninsula Water Management District, hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted this 19th day of July, 2004.
Witness my hand and seal of the Board of Directors this ___ day of _____, 2004.
________________________________
David A. Berger, Secretary to the Board
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