ITEM:   

PUBLIC HEARINGS      

 

21.

CONSIDER LIFTING GENERAL MANAGER’S MARCH 20, 2009 DECISION REGARDING HIDDEN HILLS UNIT OF CALIFORNIA AMERICAN WATER DISTRIBUTION SYSTEM – NOTICE OF VIOLATION OF DISTRICT RULE 40-D AND SUSPENSION OF RECEIPT OF APPLICATIONS FOR NEW OR INTENSIFIED WATER USE

 

Meeting Date:

August 16, 2010

Budgeted: 

N/A

 

From:

Darby Fuerst,

Program/

N/A

 

General Manager

Line Item No.:

 

 

 

Prepared By:

 

Henrietta Stern  

Cost Estimate:

N/A

 

General Counsel Review:  No review to date

Committee Recommendation:  N/A

CEQA Compliance:  N/A

 

SUMMARY:  The Board will consider lifting a March 20, 2009 Notice of Violation to California American Water (CAW) for exceeding its Pro Rata Expansion Capacity (PREC) in the Hidden Hills Unit of the CAW Water Distribution System (Exhibit 21-A) that was issued by the General Manager pursuant to MPWMD Rule 40-D.  The March 2009 action resulted in a suspension of receipt of applications for new or intensified water use in Hidden Hills since March 20, 2009.  Pursuant to MPWMD Rule 40-D-3, the District may consider lifting the suspension due to data showing 12 sequential months (August 2009 through July 2010) of actual PREC values below the PREC limit (Exhibit 21-B).  The Hidden Hills community has used less water this past year than in previous years, and CAW has replaced leaky water mains, increased water rates, and taken other actions to conserve water.

 

For reference, the PREC is applied only to a water distribution system with ten or more connections and with 50 percent active connections.  The PREC may be viewed as the average amount of production per connection.  For example, if the System Capacity (annual production limit) for a water system is 10 acre-feet per year and the Expansion Capacity Limit is 20 connections, then the PREC for the system is 0.50 acre-feet per year per connection (AFYC).  The intent of the PREC is to serve as an early warning of a system that could become out of balance, resulting in inadequate water supplies for the remaining parcels that have yet to be developed.  The goal is to ensure that each parcel has its “fair share” of water. In the case of Hidden Hills, as of March 2009, the actual PREC was 0.521 AFYC as compared to the permitted PREC of 0.482 AFYC. 

 

RECOMMENDATION:   District staff recommends that the Board should rescind the March 20, 2009 Notice of Violation and direct District staff (Water Demand Division) to accept applications for new or intensified water use within the Hidden Hills Unit of the CAW system effective immediately (beginning August 17, 2010).  Staff believes the evidence provided in Exhibit 21-B complies with Rule 40-D-3.    

 

BACKGROUND:  When the District General Manager learns that the PREC for a qualifying water system has been exceeded, District Rule 40-D-1 requires the General Manager to initiate a number of steps, including suspending receipt of applications for new or intensified water use. A courtesy letter was sent to California American Water regarding this situation on July 29, 2008; a formal notice of violation and suspension of receiving applications was transmitted on March 20, 2009.  At that time, CAW was asked to prepare and implement a plan to bring the Hidden Hills system back into balance. Suggested plan measures included installation of low water-use fixtures, landscape audits, removal of turf and landscape acreage, and modification of rate structure.  Please refer to the District website for information in previous board action at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2009/20090521/15/item15.htm,

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2009/20090720/16/item16.htm and

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2009/20090817/02/item2.htm.

 

DISCUSSION:  Exhibit 21-B is a spreadsheet showing how the PREC value for Hidden Hills has remained below the limit of 0.482 AFYC since August 2009.  Exhibit 21-C is a May 27, 2010 letter from the District General Manager to Mark Tamagni of Hidden Hills explaining the process to rescind the violation.

 

EXHIBITS

21-A    March 20, 2009 Notice of Violation from Darby Fuerst to California American Water

21-B    MPWMD spreadsheet showing Hidden Hills PREC values

21-C    MPWMD letter to Mark Tamagni re: process to lift suspension

 

 

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