EXHIBIT 9-D

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

DRAFT

FINDINGS of APPROVAL

CONSIDER APPLICATION TO AMEND

CALIFORNIA AMERICAN WATER DISTRIBUTION SYSTEM

TO ANNEX 12 RESIDENTIAL LOTS ASSOCIATED WITH CARMEL VALLEY RANCH

Service area: APN 416-522-020

MPWMD Application #20071212CVR-L4, Permit #M08-02-L4

Adopted by MPWMD District Board on September ___, 2008

Unless noted otherwise, all cited documents and materials are available for review at the MPWMD Office, 5 Harris Court, Building G, Monterey (Ryan Ranch).

It is hereby found and determined as follows:

1. FINDING: Carmel Valley Mortgage Borrower, LLC, a Delaware limited liability corporation, is identified as the owner of the 218-acre parcel identified as APN 416-522-020, located within Carmel Valley Ranch Subdivision in Carmel Valley. The County of Monterey approved a 12-lot subdivision in the parcel in December 19, 2006, including an 8.807 acre-feet per year (AFY) water allotment, which was confirmed by the Monterey County Superior Court. The water purveyor and applicant is California American Water (CAW), a regulated public utility.

EVIDENCE: Application #20071212CVR-L4, site map and application materials dated December 12, 2007. Additional application materials submitted January 29, 2008. Monterey County Resolution #06-366 and approval documentation associated with PLN020280 dated December 19, 2006. Responsible Planning Advocates v. County of Monterey, et al. Monterey County Superior Court Case #M71137, final judgment dated November 7, 2007 (available in County files).

2. FINDING: Roughly one-half of the subject parcel is presently within the CAW service boundary. The application requests approval to annex the portion of the parcel not already served by CAW within the boundaries of the proposed 12-lot subdivision to facilitate service to the 12 single-family residential lots that comprise 113.4 acres of the 218-acre parcel; remaining acreage is zoned as open space or roads, and will not be serviced by CAW.

EVIDENCE: Permit application materials as specified in Finding #1; map of CAW service area.

3. FINDING: No new wells or water supply facilities regulated by MPWMD are associated with this permit application. The County of Monterey has reserved 8.807 AFY of its CAW water allocation to serve the 12-lot subdivision. As of July 31, 2008, the County water allotment totals 12.812 AF.

EVIDENCE: Permit application as specified in Finding #1. Letter from Monterey County Water Resources Agency dated January 30, 2008. MPWMD Board Packet for August 18, 2008, Item 23, Exhibit 23-A.

4. FINDING: Applicant has applied for a permit to amend the CAW system to annex the portion of parcel APN 416-522-020 not already served by CAW to enable water service by CAW to 12 residential lots previously approved by Monterey County in 2006.

EVIDENCE: Permit application materials as specified in Finding #1.

5. FINDING: The application does not entail an increase in the total CAW production limit from the Carmel River or Seaside Basins, which are controlled by State Water Resources Control Board (SWRCB) Order WR 95-10 and the Seaside Basin adjudication decision. However, 8.807 AFY would be debited from Monterey County’s CAW allocation, and has been set as the combined annual production limit for the 12 new residential lots to be created from APN 416-522-020. Environmental documents prepared by the County of Monterey pursuant to the California Environmental Quality Act (CEQA) concluded that there would be no increase in allowed water use because water earmarked for previously approved, but undeveloped, residential lots within Carmel Valley Ranch was re-allocated to the proposed 12-lot project; also 11 lots previously zoned for residential development were re-zoned to open space.

EVIDENCE: Monterey County File PLN020280 and associated County Board Resolution 06-366; Initial Study/Mitigated Negative Declaration adopted by Monterey County on December 19, 2006. Monterey County Water Resources Agency letter dated January 30, 2008. MPWMD Permit #M08-02-L4, Condition of Approval #3. SWRCB Order WR 95-10 issued July 1995. Monterey County Superior Court Final Decision, Seaside Basin Adjudication, Case M66343, March 27, 2006.

6. FINDING: The application to amend the CAW water distribution system, along with supporting materials, is in accordance with District Rules 21 and 22.

EVIDENCE: Permit application materials as specified in Finding #1.

Required Findings (MPWMD Rule 22-B)

7. FINDING: The approval of the permit would not cause unnecessary duplication of water service with any existing system. The project would be served by CAW, the primary water purveyor in Carmel Valley. [Rule 22-B-1]

EVIDENCE: Map of CAW service area; MPWMD Permit #M08-02-L4, Conditions of Approval #1 through #4.

8. FINDING: The approval of the permit would not result in water importation or exportation to or from the District, respectively. [Rule 22-B-2]

EVIDENCE: The referenced property is located wholly within the MPWMD as shown on District boundary location maps.

9. FINDING: Approval of the application would not result in significant adverse impacts to “Sensitive Environmental Receptors” as defined by MPWMD Rule 11, including the Carmel Valley Alluvial Aquifer (CVAA). As noted in Finding #5, there would be no change to current CAW production limits, and no net increase in allowed water use associated with Carmel Valley Ranch because water earmarked for previously approved, but undeveloped, residential lots within Carmel Valley Ranch was re-allocated to the proposed 12-lot project in 2006; also 11 lots previously zoned for development were re-zoned to open space. MPWMD permit conditions require that water use for the 12 lots remain within the 8.807 AFY allotment. [Rule 22-B-3]

EVIDENCE: Permit application materials as specified in Finding #1, including Monterey County File PLN020280 and associated Resolution 06-366; MPWMD Permit #M08-02-L4, Condition of Approval #3.

10. FINDING: The water rights associated with the application are those of CAW. The SWRCB has identified 3,376 AFY as CAW’s recognized rights to divert water from the Carmel River with in-basin users as having a high priority. [Rule 22-B-4]

EVIDENCE: SWRCB Order 95-10 and Decision #1632, both issued in July 1995.

11. FINDING: The application demonstrates existence of a long-term reliable source of water supply for the proposed use of up to 8.807 AFY for domestic use. Water would be provided by CAW, a public utility certified by the State Department of Public Health, which has the physical ability to serve the parcel. The 8.807 AFY allotment from Monterey County stems from the unused water from 25 approved, but undeveloped, residential lots in Area F of the Carmel Valley Ranch Specific Plan, adjacent to the project site. Also, the 12 new lots are offset by termination of 11 connections for residential lots in the Oakshire subdivision that had been rezoned to open space. The reservation of 8.807 AFY for the 12-lot subdivision has been confirmed by the Superior Court and Monterey County Water Resources Agency. Therefore, there would not be an increase in water use from the total water use approved for the allowed development under the Carmel Valley Ranch Specific Plan. [Rule 22-B-5]

EVIDENCE: CAW service records and water quality evaluations on file at the State Department of Public Health, Monterey office. Permit Application materials as specified in Finding #1, including County File PLN020280 and associated County Board Resolution 06-366.

12. FINDING: CAW’s primary source of water supply to serve lots in Carmel Valley is the CVAA. CAW’s extraction from the CVAA is governed by SWRCB Order 95-10 and related Orders, as well as regulatory actions by federal and state resource agencies. As noted in Finding #11 above, no new water use above approved amounts is associated with this action. However, the cumulative effect of existing water extractions from the CVAA has resulted in significant adverse impacts to the CVAA and the species and habitats dependent on this source of supply. [Rule 22-B-6]

EVIDENCE: Permit Application materials as specified in Finding #1, including County File PLN020280 and associated County Board Resolution 06-366. MPWMD Permit #M08-02-L4, Condition of Approval #3. SWRCB Order 95-10 as amended by subsequent Orders. Annual interagency Memorandum of Agreements regarding CAW reservoir releases and flow rates; quarterly water supply strategy and budget for CAW operations in the Carmel River and Seaside Basins.

13. FINDING: The source of supply for the subject parcel is derived from the Carmel Valley Alluvial Aquifer and the Monterey Peninsula Water Resource System because the source of water is the CAW distribution system. The source of supply is also within the jurisdiction of the SWRCB, and has not been determined to be tributary to the source of supply for any other system. The subject parcel does not overlie the CVAA but water delivered by CAW is derived from the CVAA. [Rule 22-B-7]

EVIDENCE: MPWMD map showing boundaries of project site and jurisdiction of SWRCB superimposed on Monterey County parcels.

14. FINDING: MPWMD Permit #M08-02-L4 does not allow a permanent intertie to any other water distribution system. The subject parcel and future lots will be connected to and served by the integrated CAW system, including water for emergency fire protection. Temporary water service via trucked-in water pursuant to MPWMD Rule 173 could occur if the CAW system experienced a fire or other non-fire emergency situation. [Rule 22-B-8]

EVIDENCE: Map of CAW service area available at District office; MPWMD Permit # M08-02-L4, Condition of Approval #13. MPWMD Rules and Regulations.

15. FINDING: A back-flow protection device to prevent contamination of the CAW system is not determined to be necessary as CAW is the supplier. [Rule 22-B-9]

EVIDENCE: Map of CAW service area; MPWMD Permit # M08-02-L4, Condition of Approval #14.

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

16. FINDING: The application adequately identifies the responsible parties as California American Water, the water system owner and Carmel Valley Mortgage Borrower, LLC, a Delaware limited liability corporation, the property owner. [Rule 22-C-1]

EVIDENCE: Permit application specified in Finding #1, and Grant Deed for parcel.

17. FINDING: The application meets the definition of a “multiple-parcel connection system” and must therefore comply with California Title 22 water quality standards; CAW is a regulated public utility. [Rule 22-C-2]

EVIDENCE: Permit application as specified in Finding #1. MPWMD Permit #M08-02-L4, Conditions of Approval #1, #2, #3, and #15; California Administrative Code, Title 22.

18. FINDING: The application identifies the location of the source of supply for water distribution system (integrated CAW system, primarily from wells in Carmel Valley). [Rule 22-C-3]

EVIDENCE: Permit application as specified in Finding #1, including location map. MPWMD Permit #M08-02-L4, Condition of Approval #4.

19. FINDING: The Carmel River has been determined by the SWRCB as being “fully appropriated” from May 1 through December 31 from a water rights perspective, and environmental effects to federally listed species exist. However, no hydrologically-based overdraft has been declared. Thus, approval of the application would not create an overdraft or increase an existing overdraft of a groundwater basin. CAW extractions of water from the CVAA is governed by SWRCB Order 95-10 and related actions by federal and state agencies. CAW service to the proposed 12-lot subdivision will be limited and monitored by MPWMD. [Rule 22-C-4]

EVIDENCE: MPWMD hydrologic monitoring data and annual reports; MPWMD Permit #M08-02-L4, Condition of Approval #3. SWRCB Order 95-10 as amended by subsequent Orders, including Order 98-08 issued November 19, 1998.

20. 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 CAW production to serve the subject parcel. CAW water rights in relation to other CVAA users have been assessed by the SWRCB and limited by that agency. [Rule 22-C-5]

EVIDENCE: SWRCB Order 95-10 as amended by subsequent Orders. MPWMD Permit #M08-02-L4, Condition of Approval #3. California Water Code.

Compliance with California Environmental Quality Act (CEQA)

21. 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. Specifically, the MPWMD, as a Responsible Agency under CEQA for this action, has complied with Guidelines Section 15096. The MPWMD, as a Responsible Agency for this project, has considered the Mitigated Negative Declaration dated September 27, 2006, which was adopted by Monterey County on December 19, 2006 for the approval of the Carmel Valley Ranch Vesting Tentative Standard subdivision, Resolution #06-366 and related combined development permit approvals for the 12-lot subdivision of parcel APN 416-522-020 (PLN020280).

Copies of the Monterey County CEQA documents adopted on December 19, 2006 have been provided to MPWMD Board members for review prior to the public hearing on this matter. The MPWMD Board has considered the Initial Study and Mitigated Negative Declaration previously prepared and approved by the County of Monterey, and relied on the County information as part of its decision-making on this matter.

EVIDENCE: CEQA and CEQA Guidelines, Section 15096. County File PLN020280 and associated County Board Resolution 06-366. MPWMD Notice of Determination dated September __, 2008.

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