MPWMD BOARD MEETING--MAY 16, 2005--EXHIBIT 11B--DRAFT FINDINGS OF APPROVAL FOR APPLICATION #20050209SHO

EXHIBIT 11-B

DRAFT

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT (MPWMD)

FINDINGS of APPROVAL

CONSIDERATION OF APPLICATION TO AMEND CAL-AM WATER DISTRIBUTION SYSTEM TO ANNEX SHOWE PARCEL; APN 197-081-025

Adopted by MPWMD Board on May __, 2005

Unless otherwise noted, all evidence is on file and available for public review at the District office, 5 Harris Court, Bldg. G, Monterey (Ryan Ranch)

It is hereby found and determined as follows:

1. FINDING: Applicant California American Water (Cal-Am) is the owner of the Cal-Am water distribution system (WDS), a regulated public utility. Co-applicant Lombardo & Gilles is attorney for Mr. Jon Showe, owner of property located at 32835 Carmel Valley Road, Carmel Valley. The Showe parcel (APN 197-081-025) is 10.0 acres in size and currently includes a single-family residence, guest quarters, tennis court, handball court, pool, miscellaneous outbuildings and irrigated landscaping. The parcel is not within the Cal-Am service area, but since approximately 1947 has received Cal-Am water via an active water meter and connection. An active, registered non-potable well exists on the property and is used to irrigate vegetation on the parcel.

EVIDENCE: Application #20050209SHO received February 9, 2005, site map and supporting application materials and correspondence. Aerial photographs with GIS layer of parcel boundaries. Database of Monterey County Assessors parcels and ownership. MPWMD well reporting records.

2. FINDING: Construction and remodeling projects on the home occurred prior to 1978, the year MPWMD was created. Uses on the property appear to comply with applicable Monterey County land use regulations. No additional construction requiring an MPWMD permit via a Monterey County use permit is recorded after 1978.

EVIDENCE: Monterey County building inspection records contained in application materials. MPWMD water connection permit records and database.

3. FINDING: Applicants have applied for a permit to amend the Cal-Am WDS boundary to annex parcel APN 197-081-025 to ensure consistency between the Cal-Am service area boundary and parcels actually served. Cal-Am water service has been in place since approximately 1947.

EVIDENCE: Application #20050209SHO and supporting materials.

4. FINDING: Monterey County Health Department well construction permit #W-1370 was issued January 13, 1978 for the non-potable well on parcel APN 197-081-025. The well was first registered with MPWMD in 1981. Annual reporting has been spotty in recent years, requiring MPMWD staff to make water production estimates. An updated Well Registration Form is required to ensure compliance with MPWMD well regulations.

EVIDENCE: Monterey County Health Department permit #W-1370; State DWR Well Completion Report #______; MPWMD well reporting database and supporting files; e-mail memorandum dated May 3, 2005 from Tom Lindberg, MPWMD Associate Hydrologist.

5. FINDING: The application to amend the Cal-Am WDS, along with supporting materials, is in accordance with District Rules 21 and 22.

EVIDENCE: Application #20050209SHO received February 9, 2005, site map and supporting application materials and correspondence.

Required Findings (MPWMD Rule 22-B)

6. FINDING: The approval of the permit would not result duplication of water service as the subject property has been served by Cal-Am since approximately 1947. Approval of the permit, with the specified conditions, would result in a service area boundary that is consistent with the actual properties served by Cal-Am.

EVIDENCE: Map of Cal-Am service area with identified parcel locations submitted by applicant. MPWMD Conditions of Approval for Permit #M05-03, Condition #9.

7. FINDING: The approval of the permit would not result in water importation or exportation to or from the District, respectively.

EVIDENCE: The referenced parcel is located wholly within the MPWMD as shown on District boundary location maps on file at the District office.

8. FINDING: Approval of the application would not result in significant adverse impacts to the environment that cannot be mitigated by conditions attached to the permit. The Carmel River flows year-round in the reach nearest the subject parcel and has high quality fish habitat. Nearby Cal-Am wells (Russell Well Nos. 2 and 4) serve the parcel following treatment at Cal-Am’s Carmel Valley Filter Plant. No measurable effect on the environment would occur as the parcel already has a multi-decade history of Cal-Am use. No increase to the Cal-Am production limit occurs as a result of approval of the application. Approval enables consistency between the Cal-Am service area boundary and actual properties served, and facilitates more accurate water use tracking and management for the benefit of the environment.

EVIDENCE: MPWMD streamflow records for Carmel Valley Alluvial Aquifer (CVAA) Subunit 1; MPWMD fish habitat quality assessments; Cal-Am hydraulic map of service area as well as quarterly Memoranda of Agreement (MOA) governing water production. Application materials describing Cal-Am water service since 1947. MPWMD well reporting records. CEQA Notice of Exemption signed May __, 2005 citing CEQA Guidelines Section 15301. State Water Resources Control Board (SWRCB) Order 95-10 limiting Carmel River diversions. MPWMD Permit #M05-03, Condition #3, which does not increase existing Cal-Am water production limit, and Condition #8, which requires water conservation to reduce water use.

9. FINDING: The application adequately identifies the claim of right for the source of water supply and provides supporting verification. The SWRCB has identified 3,376 AFY as the recognized Cal-Am right to divert water from the Carmel River, and identifies in-basin consumers as having a high priority.

EVIDENCE: Cal-Am water rights and state policies are described in detail in SWRCB Order WR 95-10 and Decision #1632, both issued in July 1995.

10. FINDING: The application demonstrates existence of a long-term reliable source of water supply for the proposed uses. Cal-Am is certified by the State Department of Health Services to deliver water to more than 39,000 customers. See Finding #9 above for Cal-Am recognized water rights for in-basin users within Carmel River Basin.

EVIDENCE: Cal-Am water service and water quality records and evaluations on file at the State Department of Health Services, Monterey office. SWRCB Order WR 95-10 and Decision #1632, both issued in July 1995.

11. FINDING: The source of Cal-Am supply for the subject parcel has been the Carmel River or the CVAA Subunit 1 since approximately 1947. Though other CVAA subunits farther downstream are impacted by Cal-Am and other water distribution systems, CVAA Subunit 1 is known to have high-quality fish habitat and year-round water flow. Thus, the cumulative effects of issuance of a permit to continue to serve the subject parcel would not be expected to result in significant adverse impacts to the species and habitat dependent on those sources of supply.

12. FINDING: The source of Cal-Am supply for the subject parcel is derived from the Monterey Peninsula Water Resources System. The subject parcel does not overlie the CVAA, but water delivered by Cal-Am is derived from the CVAA. A non-potable well draws water from non-alluvial upland sources to irrigate vegetation on the property.

EVIDENCE: MPWMD map showing boundaries of Carmel Valley Alluvial Aquifer; MPWMD well records for parcel APN 197-081-025.

13. FINDING: Approval of the application would bring the property into the Cal-Am service area, including use of Cal-Am water for emergency fire protection. Temporary water service could be provided by trucked-in water pursuant to MPWMD Rule 173 if the Cal-Am system experienced a failure or other non-fire emergency situation. An existing onsite non-potable well could continue to meet outdoor irrigation water needs. No permanent intertie between the Cal-Am WDS and any other system is allowed.

EVIDENCE: Map of Cal-Am service area; MPWMD well reporting records. MPWMD Permit #M05-03 Conditions of Approval, Condition #12.

14. FINDING: A back-flow protection device to prevent contamination of the Cal-Am system will be installed as a condition of this permit due to the existence of an active non-potable well on the parcel.

EVIDENCE: MPWMD Permit #M05-03 Conditions of Approval, Condition #13.

Minimum Standards for Granting a Permit (MPWMD Rule 22-C)

15. FINDING: The application adequately identifies the responsible party (system owner and operator) as California American Water.

EVIDENCE: Permit application #20050209SHO.

16. FINDING: The application meets the definition of a “multiple-parcel connection system” and therefore must comply with California Title 22 water quality standards. Cal-Am water meets Title 22 standards.

EVIDENCE: Permit application #20050209SHO; State Department of Health Services records on file at its Monterey office.

17. FINDING: The location of the source of supply for the water distribution system is known. The Cal-Am water source for customers in the area of the subject parcel is the CVAA, Subunit 1, drawn from nearby wells.

EVIDENCE: Description of Cal-Am system available at Cal-Am office. Quarterly MOA/water supply strategy and budget describing best management practices for sources of Cal-Am supply.

18. FINDING: The Carmel River has been determined to be “fully appropriated” from May 1 through December 31 from a water rights perspective, and environmental effects to federally listed species exist. However, the CVAA is not in a hydrologic state of overdraft, particularly in the area of the subject parcel (CVAA Subunit 1), where year-round flow of the Carmel River occurs every year. Thus, approval of the application would not create an overdraft or increase an existing overdraft of a groundwater basin. Also, conditions of approval do not increase allowed Cal-Am production to serve the subject parcel. See also Findings 11 and 12.

EVIDENCE: See citations in Findings 11 and 12. MPWMD Permit #M05-03, Condition #3. SWRCB Order 98-08, November 19, 1998.

19. FINDING: The approval of the application would not adversely affect the ability of existing systems to provide water to users due to conditions of approval that do not allow increased production to serve the subject parcel.

EVIDENCE: MPWMD Permit #M05-03, Condition #3.

Compliance with CEQA

20. FINDING: In the review of this application, MPWMD has followed those guidelines adopted by the State of California and published in the California Administrative Code, Title 14, Section 15000 et seq. The MPWMD, as a lead agency under CEQA for this action, determined that this action is Categorically Exempt under Category 1, Existing Facilities. The subject residence has received Cal-Am water since approximately 1947 and is a properly approved structure with appropriate permits from Monterey County.

EVIDENCE: CEQA and CEQA Guidelines, Section 15301. Notice of Exemption for Application to Amend Cal-Am WDS dated May __ , 2005.

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