ITEM:		ACTION ITEMS
16.	CONSIDER ADOPTION OF POSITION STATEMENT ON THE JANUARY 15, 2008 DRAFT CEASE AND DESIST ORDER ISSUED BY THE STATE WATER RESOURCES CONTROL BOARD, DIVISION OF WATER RIGHTS
Meeting Date:			May 19, 2008	Budgeted:	N/A
From:			Darby Fuerst,	Program/	N/A
			General Manager	Line Item No.:
Prepared by:			Darby Fuerst	Cost Estimate:	N/A
General Counsel Approval: Approved.
Committee Recommendation: The Ad Hoc Legislative Committee reviewed a draft resolution opposing the draft Cease and Desist Order on May 15, 2008, and recommended approval.
CEQA Compliance: N/A

Summary: On January 15, 2008, the State Water Resources Control Board’s (SWRCB) Division of Water Rights issued a draft cease and desist order (Cease and Desist Order WR 2008-00XX-DWR or CDO) against California American Water (CAW) for unauthorized diversion of water from the Carmel River. As drafted, the CDO requires CAW to cease and desist from diverting surface water from the Carmel River and groundwater from the underlying Carmel Valley Alluvial Aquifer that is in excess of its legal rights and provides a schedule for reducing CAW’s unlawful diversions from the Carmel River.

As drafted, the first reduction, which would be 15% of the current allowable diversion from the Carmel River, would begin on October 1, 2008, and would apply to Water Years (WY) 2009 and 2010. The second reduction would increase the required reduction to 20% and apply to WY 2011 and 2012. The third reduction would increase the required reduction to 35% and apply to WY 2013 and 2014. The fourth reduction would increase the required reduction to 50% and apply to WY 2015 and subsequent water years. The SWRCB has scheduled hearings in Sacramento for June 19-20 and July 23-25 to receive evidence to determine whether to adopt the CDO with or without revision.

To address the CDO, the District Board created an ad hoc Legislative Committee to develop and recommend a position on the CDO and reconvened the District’s Community Advisory Committee (CAC) to receive recommendations. The CAC met twice in April and provided a final report to the Board at the April 21, 2008 meeting. The Legislative Committee met on May 15 to review a draft position statement and recommended that the Board adopt Resolution 2008-08 opposing the CDO as drafted. The proposed resolution is attached as Exhibit 16-A and is based on concerns that that proposed schedule for reductions of existing water uses is unrealistic and could jeopardize public health and safety.

RECOMMENDATION: The Board should Resolution 2008-08 opposing the SWRCB Cease and Desist Order, as drafted.

EXHIBITS

16-A Resolution No. 2008-08, A Resolution of the Board of Directors of the Monterey Peninsula Water Management District Opposing Draft Cease and Desist Order WR 2008-00XX-DWR Issued by the State Water Resources Control Board against California American Water

U:\staff\word\boardpacket\2008\2008boardpackets\20080519\ActionItems\16\item16.doc