ITEM:		PUBLIC HEARINGS
11.	CONSIDER APPROVAL OF APPLICATION TO AMEND CALIFORNIA AMERICAN WATER DISTRIBUTION SYSTEM TO ANNEX SHOWE PARCEL -- APN 197-081-025, California American Water and Lombardo & Gilles, co-applicants
Meeting Date:			May 16, 2005	Budgeted:	N/A
From:			David A. Berger,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Henrietta Stern	Cost Estimate:	N/A
General Counsel Approval: Concurs
Committee Recommendation: N/A
CEQA Compliance: Categorical Exemption, Guidelines Section 15301

SUMMARY: The Board will consider approval of an application by co-applicants California American Water (Cal-Am) and Lombardo & Gilles (attorney for Mr. Jon Showe) to expand the Cal-Am water distribution system (WDS) boundary to annex the Showe parcel (APN 197-081-025) located at 32835 Carmel Valley Road, Carmel Valley. MPWMD Rule 22-E requires that a written permit be obtained from the District Board to amend a Water Distribution System service area.

The Showe parcel is not within the Cal-Am service area, but has had an active Cal-Am connection and meter to serve the residence for several decades (estimated since 1947). It is unknown why the Cal-Am service area does not include the Showe parcel. Mr. Showe is a relatively recent owner of the property, purchased in October 2004.

Application #20050209SHO to amend the Cal-Am WDS is provided as Exhibit 11-A. The entire package of application materials and related correspondence is available for review at the District office (see “Discussion” section below for a listing of application materials). This public hearing has been properly noticed via mailed notices, posting on the District website, onsite posting, and posting on the District office.

Pursuant to MPWMD Rule 181, Board members must disclose any oral or written ex parte communication on this quasi-judicial decision.  

RECOMMENDATIONS:

Staff recommends that the Board of Directors take the following actions:

‚ Adopt the MPWMD Findings of Approval for Application #20050209SHO provided as Exhibit 11-B. The Findings include and refer to CEQA compliance in the form of a Notice of Exemption (Exhibit 11-C) as described in the “Discussion” section below).

‚ Approve Application #20050209SHO and issue Permit #M05-03 with the Conditions of Approval specified in Exhibit 11-D. These conditions would not increase the Cal-Am production limit. MPWMD does not set a numerical connection limit on the main Cal-Am system. The Conditions ensure compliance with MPWMD Rules & Regulations, including conservation and retrofit requirements, signing a Permit Acceptance Form, and signing an Indemnification Agreement (see “Discussion” below.)

Rationale for Staff Recommendation

The Showe parcel is an example of a Cal-Am “remote meter” that has a long-standing metered service connection, but is not within the formal Cal-Am service area. District staff encourages action by Cal-Am to ensure consistency between properties that are actually served and the defined service area to enable more accurate system accounting and management.

DISCUSSION: The following paragraphs address various aspects of the application based on information known as of May 2, 2005. The full set of application materials in the file includes:

t MPWMD Form IG96-5, Application for Water Distribution System Permit, along with Supplemental Questionnaire and cover letter;

t Parcel map showing property location (Application Exhibit A);

t Parcel map showing property in relation to Cal-Am service area (Application Exhibit B and Exhibit E);

t Monterey County building inspection records (Application Exhibit C);

t Monterey County building permit records (Application Exhibit D); and

t Documentation of water service from Cal-Am since 1947 (Application Exhibit E).

Existing Setting

The Showe parcel APN 197-081-025 is 10.0 acres in size, and is located at 32835 Carmel Valley Road across Carmel Valley Road from the entrance to Sleepy Hollow. The property is not within the defined Cal-Am service area, but has received metered Cal-Am service since roughly 1947. For reference, the Showe parcel is immediately adjacent to and was pertinent to proceedings for MPWMD Permit #M04-02 (Sullivan parcel annexation to Cal-Am) approved by the MPWMD Board on December 13, 2004, Item 13.

An active, registered non-potable well exists on the Showe property. Water use was reported using the Land Use reporting method until a meter was installed in year 2003. The year 2004 metered water use was 0.82 acre-feet (AF).

Proposed System

The application proposes amending the Cal-Am service area to annex parcel APN 197-081-025 (Showe). No other changes would be made. A WDS permit is required from the District because the Cal-Am WDS service area boundary is proposed to be expanded.

Findings and Conditions of Approval

Unlike most WDS applications, technical issues relating to the ability of Cal-Am to serve the Showe parcel are not the controlling factors in this permit decision. Cal-Am has been adequately serving the Showe parcel for over 50 years. The Findings of Approval (Exhibit 11-B) are based on evidence provided in the application materials (Exhibit 11-A and supporting attachments on file at the District office). Staff believes the application meets the criteria and minimum standards required by District Rule 22. Pertinent information includes application materials, zoning and existing land use, as well as conditions to be imposed on the approved application.

Annexation of the Showe parcel does not change the Cal-Am production limit set by the MPWMD Water Allocation Program or supersede Carmel River diversion limits imposed by SWRCB Order 95-10. Annexing the Showe parcel would not change the actual number of Cal-Am connections.

Staff believes the following conditions found in Exhibit 11-D protect the community and environment as well as the integrity of MPWMD Rules & Regulations. Examples include:

Ø The Cal-Am production limit will not be increased by reason of this annexation.

Ø Low water using fixtures, if not already installed in the home, will be required. Drip irrigation, where reasonable (best management practices), and other means to conserve water will also be required.

Ø Any remodeling or expansion of the home will be subject to MPWMD rules.

Ø The applicant shall indemnify MPWMD against all third party claims and lawsuits, including MPWMD defense costs.

CEQA Compliance

The District Board must comply with the California Environmental Quality Act (CEQA) as well as MPWMD regulations. Staff recommends that the Board adopt a Categorical Exemption pursuant to CEQA Guidelines Section 15301. The Class 1 exemption, “Existing Facilities,” applies because the WDS would be appurtenant to allowed uses on an existing, developed residential parcel which was approved by Monterey County. A Draft Notice of Exemption is attached as Exhibit 11-C to be filed with the County Clerk upon Board approval.

EXHIBITS

11-A Application #20050209SHO dated February 9, 2005

11-B Draft Findings of Approval for Application #20050209SHO

11-C Draft Notice of Exemption from CEQA for Application #20050209SHO

11-D Draft Conditions of Approval for Application #20050209SHO, Permit #M05-03, including

Attachment 1 (service area) and Attachment 2 (Indemnity Agreement)

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