ITEM:		PUBLIC HEARING
18.	CONSIDER FIRST READING OF ORDINANCE NO. 155 – MODIFYING THE DEFINITION OF REDEVELOPMENT PROJECT SITE AND AMENDING RULE 25.5-D
Meeting Date:			February 27, 2013	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Pintar	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: Referred to Board by Water Demand Committee. Technical Advisory Committee (TAC) recommended approval on October 9, 2012
CEQA Compliance: Negative Declaration

SUMMARY: Ordinance No. 155 (Exhibit 18-A) amends the District’s definition of Redevelopment Project to recognize the effect of Assembly Bill x1 26 (AB 26) to abolish redevelopment agencies. The ordinance also amends MPWMD Rule 25.5-D to allow two extensions of Water Use Credit at former Redevelopment Project sites when the credit was documented prior to February 1, 2012 (i.e., prior to AB 26). There are three Jurisdictions within the MPWMD (the cities of Monterey, Sand City and Seaside) that had Redevelopment Agencies prior to AB 26. The very limited scope of this ordinance applies only to a Water Use Credit that was documented before February 1, 2012. The board considered a similar ordinance in October 2012.

District Rule 25.5 (Water Use Credits and On-Site Water Credits) was modified in August 2005 to extend the expiration of Water Use Credit when it was associated with a Redevelopment Project Site as defined by California’s Community Redevelopment Law. The modification allowed two additional extensions to a Water Use Credit at these Sites, providing up to twenty years to reuse a credit. On February 1, 2012, Assembly Bill (AB) 1X 26 abolished redevelopment agencies, essentially nullified the District’s definition of Redevelopment Project, along with the mechanism for extending Water Use Credits associated with Jurisdiction-identified redevelopment Sites.

Although the Redevelopment Agencies have been eliminated, redevelopment of former Redevelopment Project sites continues to be a high priority of the Jurisdictions. There exist areas that constitute physical and economic liabilities, requiring redevelopment in the interest of the health, safety, and general welfare of the people of these communities. In many cases, the structures from which the Water Use Credit originated were torn down in anticipation of new projects.

California Environmental Quality Act

The Initial Study and Notice of Intent to Adopt a Negative Declaration for this ordinance was circulated for 30 days between January and February 2013. One comment, from the legal representative of Save Our Carmel River and The Open Monterey Project, was received and is attached as Exhibit 18-B.

As part of the Initial Study, MPWMD reviewed its records to identify the amount of Water Use Credit that would be affected by Ordinance No. 155. The ordinance applies only to Water Use Credits that were documented (i.e., “on the books”) before February 1, 2012, in known Redevelopment Project areas. These areas are located in the City of Sand City, the City Center and West Broadway Urban Village Specific Plan areas in Seaside, and the Cannery Row, Custom House, and Greater Downtown Redevelopment Areas in the City of Monterey. This process identified approximately 40 acre-feet (AF) of Water Use Credit^[1] that could be extended by this project, mostly originating from former Non-Residential businesses. It should also be noted that projects/sites identified during this process were and continue to be priorities for the Jurisdictions, often moving slowly through the approval process for reasons that are not related to due diligence, including but not limited to site soil conditions and other environmental remediation and financing.

Water Use Credit originates from former legal uses that are permanently abandoned. A Water Use Credit documented by the District has to meet specific criteria (i.e., the use must have existed on March 1, 1985 or have received a Water Permit for the use after that date). The Water Permit quantifies the Water Use Capacity. Staff tied the former uses to two CEQA documents, the MPWMD Water Allocation Program Environmental Impact Report (EIR) adopted in 1990 and in the Mitigated Negative Declaration (December 18, 1990) reviewing the California-American Water Company’s (CAW) System Capacity Limit and Operation Strategies that occurred prior to release of water Allocations from the Paralta Well in Seaside. The latter document (State Clearinghouse Number SCH 90030919) tiered off of the District’s Water Allocation Program EIR and formed the basis for adoption of MPWMD Ordinance No. 70, repealing and ending the moratorium on Water Permits in 1993. Water Permits issued after that date required either water from the Jurisdiction’s Allocation or on-site Water Credit sufficient to offset the expanded capacity.

Adoption of a Negative Declaration (Exhibit 18-C) is required prior to adoption of the ordinance. Staff believes a Negative Declaration is suitable for this project given the limited quantity of credit that is affected by the action. Of the 40 acre-feet potential from the ordinance, it is unlikely that a significant portion would be reused within the time before the end of the Cease and Desist Order on Cal-Am.

RECOMMENDATION: The Board should receive public comment and consider adoption of the Negative Declaration and consider the first reading of Ordinance No. 155.

IMPACT ON STAFF/RESOURCES: None. The Cities of Monterey, Seaside and Sand City will be paying the cost of filing the CEQA notice.

EXHIBITS

18-A Draft Ordinance No. 155

18-B Comment Letter from Save Our Carmel River and The Open Monterey Project

18-C Negative Declaration

U:\staff\Boardpacket\2013\20130227\PubHearings\18\item18.docx

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[1] The investigation of documented Water Use Credit involved reviewing correspondence, property files, and information compiled from the current MPWMD database system.