ITEM:		PUBLIC HEARINGS
11.	CONSIDER SECOND READING AND ADOPTION OF ORDINANCE NO. 124 -- water distribution system REGULATION AMENDMENT ORDINANCE (RULE 20-C)
Meeting Date:			July 17, 2006	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 Review: Yes; reviewed Ordinance
CEQA Review: Negative Declaration adopted by Board on June 22, 2006
Committee Review: None needed for second reading.

SUMMARY: Current MPWMD Rules & Regulations require a Water Distribution System (WDS) permit for any new or amended WDS within the District, unless specific criteria for an exemption are met. The Board will consider the second reading and adoption of Ordinance No. 124, Version 7 (Exhibit 11-A), that amends MPWMD Rule 20-C, Exemptions, as well as related Definitions found in Rule 11. The first reading of Ordinance No. 124 was approved by the Board at its June 22, 2006 meeting along with approval of a Negative Declaration, in compliance with the California Environmental Quality Act (CEQA).

Ordinance No. 124 creates a new exemption for areas of the Former Fort Ord within MPWMD boundaries that are not served by water sources from the Seaside Groundwater Basin or the Carmel River Basin, including the Carmel Valley Alluvial Aquifer. The ordinance was initially proposed to eliminate the apparent regulatory conflict that exists between MPWMD Rule 20 and certain provisions of a 1992 Amended Memorandum of Agreement (Amended MOA) signed in May 1993 between MPWMD, Monterey County Water Resources Agency (MCWRA), and the Pajaro Valley Water Management Agency (PVWMA). The proposed Ordinance No. 124 also removes a current exemption for new wells that are constructed but not yet activated due to confusion and enforcement issues associated with the current language. Related changes include revising Rule 11, Definitions, to better clarify the above changes to Rule 20-C.

RECOMMENDATIONS: Staff recommends that the Board take the following actions:

1. Approve the second reading and adopt Ordinance No. 124 (Version 7 dated July 7, 2006) as shown in Exhibit 11-A. If adopted, the ordinance will become effective on August 16, 2006.

2. Direct staff to prepare a Notice of Determination (and Certificate of Fee Exemption) for transmittal to the Monterey County Clerk in compliance with CEQA.

DISCUSSION: Concept Ordinance AA, approved by the Board on February 23, 2006, focused solely on the need to reconcile the MPWMD Rules & Regulations with the MOA and Addendum signed in May 1993 between MPWMD, MCWRA and PVWMA. The practical ramification of this change is that water system expansions for new construction in the Former Fort Ord area served by the Marina Coast Water District from Salinas Groundwater Basin water sources would not be subject to MPWMD water distribution system regulations.

When Concept Ordinance AA became Ordinance No. 124, it also deleted an old exemption for a well that was drilled but not immediately activated. Additional changes to definitions for clarity were made, and were reviewed by the Rules and Regulations Review Committee at its June 12, 2006 meeting. Ordinance No. 124, Version 6, was approved for first reading by the Board on June 22, 2006. A review of these changes may be found on the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2006/20060622/21/item21.htm.

Ordinance No. 124, Version 7, contains only non-substantive capitalization corrections made since first reading, and has been reviewed by District Counsel for accuracy. It is provided as Exhibit 11-A.

EXHIBITS

11-A Ordinance No. 124 (Version 7 dated July 7, 2006)

U:\staff\word\boardpacket\2006\2006boardpackets\20060717\PubHrgs\11\item11.doc

Reviewed by FF, revised 7/10/06