EXHIBIT 20-H

 

DRAFT – 10/09/07

 

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

 

CONDITIONS OF APPROVAL

for

AMEND CALIFORNIA AMERICAN

WATER DISTRIBUTION SYSTEM AND ANNEX PARCEL

APN 011-501-014, PERMIT #M07-03-L4

(Application #­­20070829CAW)

 

Permittee: California American Water (CAW) 

Permitted System:  “Main” California American Water System

 

Adopted by MPWMD Board of Directors on October ___, 2007

Pursuant to MPWMD Rule 22-D

 

Permitted System

 

1.      The “Main” California American Water (CAW) Water Distribution System (WDS) is authorized by the Monterey Peninsula Water Management District (MPWMD) under Permit #M07-03-L4 to serve all legal parcels within the city limits of Sand City (City) as shown in Attachment 1.  For reference, a listing of all Assessor’s Parcel Numbers (APN) within the City boundary was provided as Attachment 1 to the City’s August 3, 2007 Application package.   Service to one parcel, APN 011-501-014, is prohibited until adequate supply is available as described in Conditions #3 and 29.  The designation “Main CAW WDS” refers to the system supplied by the Monterey Peninsula Water Resource System and excludes separate, independent CAW units such as the Bishop, Hidden Hills and Ryan Ranch systems.  [Rule 22-D-1-a]

 

2.      This Permit authorizes the Permitted System to provide treated, potable water for residential, commercial, industrial and other uses in the service area identified in Condition #1 as well as the entire CAW service area as constrained by the Conditions of Approval of this Permit and Permit #M07-02-L4 issued to the City of Sand City.  [Rule 22-D-1-b]

 

3.      There shall be no change to the existing system capacity (water production) or expansion capacity (connection) limits of the CAW system prior to completion of the Sand City Water Supply Project (Project), including a 300 acre-feet per year (AFY) desalination facility.  When the Project is shown to be fully operational, CAW may receive an additional 300 AFY from the City via a new 8-inch main that connects to the CAW 14-inch main near Roberts and Olympia Avenues in Seaside.  Water from the Sand City Project is prohibited to be used by CAW to serve new or intensified uses outside of the Sand City limit as described in Condition #1.  CAW service for new or intensified uses within the Sand City boundary shall comply with the Conditions of Approval specified in MPWMD Permit #M07-02-L4 issued to the City of Sand City.  Existing municipal unit (jurisdiction) water allocations or credits are not changed by this Permit. [Rule 22-D-1] 

 

4.      The new water source for CAW is the City’s proposed Sand City Water Supply Project, which includes a desalination plant, located between Elder and Shasta Avenue west of Catalina Street in Sand City, which treats brackish water extracted from the Aromas Sands Formation in the Seaside Groundwater Basin.  [Rule 22-C-3]

 

5.         Four proposed wells at two locations on beach sands west of Highway One between Bay and Tioga Avenues shall serve as the means to extract brackish water from the Aromas Sands Formation for treatment by the desalination plant.  This Permit recognizes the right of the City to extract water from this aquifer pursuant to the Superior Court’s Final Decision on the Seaside Basin Adjudication in March 2006.  [Rule 22-C-3; Rules 52, 54 and 56]

 

Mandatory Conditions of Approval (MPWMD Rule 22)

 

6.         Precedent to use of this Permit, Permittee shall first obtain and comply with the requirements and conditions of permits issued by the California Public Utilities Commission (CPUC), State and/or County Health authorities and other agencies with jurisdiction, as applicable.  [Rule 22-D-1-c and Rule 22-D-3] 

 

7.         Permittee shall execute an Indemnification Agreement (Attachment 2), which holds MPWMD harmless, and promises to defend MPWMD from any claims, demands, or expenses of any nature or kind arising from, or in any way related to, the District approval of the Permitted System or the adequacy of the system water supply.   This Permit is not valid until the Indemnification Agreement is signed both by Permittee and MPWMD.  The Indemnification Agreement must be signed and executed within 60 days of the date of approval (see top of page 1 for date) for this Permit to remain valid. [Rule 22-D-1-d]

 

8.         Permittee shall comply with MPWMD Rules and Regulations relating to water well registration, metering and annual reporting of production for any well owned or operated by the Permittee that is located within the service area identified in Condition #1.  [Rule 22-D-1-e; Rules 52, 54 and 56]

 

9.         Permittee shall report annually in the form and manner prescribed by MPWMD the metered production of treated potable water delivered to the CAW system from the Sand City Project. The reporting year is October 1 through September 30 of the next year.  [Rule 22-D-2]

 


 

10.       Permittee shall comply with all pertinent MPWMD water conservation rules and regulations, including the desalination facility grounds.  Current ordinances specify maximum water use rates for fixtures and require new development to install drought resistant landscapes, and drip irrigation, where appropriate.  Contact with the District Permit and Conservation Office at 831/658-5601 is recommended.   [Rule 22-D-1-f]

 

11.       No new water meter connection within the Permitted System may be set until a Water Permit has been secured from MPWMD for each individual connection in accordance with MPWMD regulations governing issuance of Water Permits, including payment of applicable fees.  Any intensification or expansion within the Permitted System shall require a new application and permit pursuant to MPWMD Rules 23 and 24.  Connection charges shall be calculated based on water demand estimates using MPWMD’s water demand methodology at the time of each application.  [Rule 22-D-1-g; Rule 22-D-1-k]

 

12.       Any new facilities, expansion of service area boundaries, proposed modification, changed conditions regarding water service by other entities, increase in the production or connection limits set in Condition #3 of this Permit, or other changes described in MPWMD Rule 22-E shall require a Permit to amend the Permitted System.  [Rule 22-E]

 

13.       A permanent intertie between the Permitted System and the Sand City Water Supply Project is allowed pursuant to the limits set in Condition #3 of this Permit.  [Rule 22-D-1-h]

 

14.       Appropriate devices and treatment to prevent contamination or harm to the CAW system shall be installed as deemed necessary by CAW.  A copy of documents associated with proof of CAW backflow protection shall be provided to MPWMD, if applicable.   [Rule 22-D-1-h]

 

15.       Compliance with California Title 22 drinking water standards as administered by State and/or County Health authorities is required.   The District shall not approve any future application to serve parcels within Sand City with CAW water service from Monterey Peninsula Water Resource System sources due to inadequate water quality or quantity of the Sand City Water Supply Project, until full compliance with SWRCB Order 95-10 is achieved.  [Rule 22-C-2]

 

16.       No additional mitigation measures to offset adverse environmental impacts are required by this Permit above and beyond those already specified in approvals by the City and California Coastal Commission, and other regulatory agencies with authority.  [Rule 22-D-1-i]

 

17.       A copy of an Agreement between the City and CAW for water service from the SCWDS shall be provided to MPWMD within 60 days of the date of approval (see date at top of page 1) for this Permit to remain valid.  A draft agreement is acceptable.  [Rule 22-D-1-j]

 

18.       Upon MPWMD Board approval of this Permit, the Permittee shall pay to MPWMD the invoiced cost for MPWMD staff, attorney and consultant time spent to process the Application, as well as direct costs, pursuant to Rule 60.  The Permittee shall be provided documentation to support the invoiced amount. This Permit is not valid until payment for the invoiced amount is received by MPWMD.  Payment must be received within 60 days of the date of approval (see date at top of page 1) for this Permit to remain valid. [Rule 22-D-1-l]

 

19.       Upon finalization of these conditions, Permittee shall sign (and notarize) a form regarding acceptance of Permit conditions for the approval of the Permitted System.  By signing the form, Permittee acknowledges that Permittee understands and accepts these conditions as a binding part of the Permit approval, and agrees to carry them out faithfully.  The Acceptance Form must be received within 60 days of the date of approval (see top of page 1) for this Permit to remain valid.   [Rule 22-D-1-m]

 

20.       Permittee shall disclose to any future owner, successors and assigns of CAW the requirements for the Permitted System associated with this Permit.  Permittee shall advise MPWMD in a timely manner of any changes in system ownership, system name or other substantive changes to the system to facilitate accurate record-keeping. [Rule 22-D-2]

 

21.       Construction tasks for facilities authorized by this Permit shall be initiated within one year from the date this Permit is issued.  This Permit shall expire if no action is taken within that year.  Permitted construction tasks shall be completed and water distribution system operation shall commence within two years from the date this Permit is issued (i.e., delivery of water to the Goodrich pipeline).  The Permittee may apply in writing to the MPWMD General Manager for a 180-day extension to the project initiation deadline and/or the system operations commencement deadline, to be approved at the discretion of the General Manager upon a finding of due diligence by the Permittee to complete construction and commence operation of the system. [Rule 22-D-4]

 

22.       Permittee is not required to execute a Notice and Deed Restriction regarding limits to water use as set forth in these Conditions on the title of specific parcels where water production facilities are located due to the unique nature of this application.  [Rule 22-D-1-n]

 

23.       The Permit granted herein is subject to revocation in the event the Permittee does not fully comply with each and every condition set forth in this document. [Rule 22-D-1-o]

 

Other Standard Conditions of Approval

 

24.       Nothing in this Permit shall be construed to grant or confirm any water right.

 

25.       This permit does not authorize any act that results in the taking of a threatened or endangered species or any act which is now prohibited, or becomes prohibited in the future, under either the California Endangered Species Act (Fish and Game Code Sections 2050 to 2097) or the federal Endangered Species Act (16 U.S.C.A. Sections 1531 to 1544).  If a “take” will result from any act authorized under this permit, the Permittee shall obtain authorization for an incidental take prior to construction or operation of the project.  Permittee shall be responsible for meeting all requirements of the applicable Endangered Species Act for the project authorized under this permit.

 

26.       Upon notice to the Permittee in writing or by telephone, the Permittee shall allow reasonable access by MPWMD or its designated representative to property within the Permitted System to inspect and photograph water production facilities and water measuring devices, and take readings from water measuring devices.

 

Special Conditions of Approval for CAW WDS

 

27.       Permittee shall provide to MPWMD at no charge copies of all future hydrologic, water production and water quality reports submitted to local and state regulators, pursuant to agency permit conditions, associated with service from the Sand City Water Supply Project.

 

28.       Any new Desalination Project Water Entitlement of 206 acre-feet of CAW water to parcels within the Sand City boundary shall remain valid so long as the Sand City Project desalination plant is properly maintained and continues to be able to reliably produce 300 AFY of potable water acceptable for use by the CAW WDS. 

 

29.       Water service by CAW to parcel APN 011-501-014 shall be prohibited until either the Sand City Water Supply Project, including the 300 AFY desalination plant, is shown to be fully operational.

 

 

Attachments

Attachment 1:      Map of CAW Service Area in City of Sand City

Attachment 2:      Indemnity Agreement to be signed by Permittee and MPWMD

 

 

 

 

 

U:\staff\word\boardpacket\2007\2007boardpackets\20071015\PubHrgs\20\item20_exh20h.doc

Prepared 10/09/07 by H. Stern