ITEM:		ACTION ITEM
14.	CONSIDER ADOPTION OF LOCAL WATER PROJECT FUNDING PROGRAM
Meeting Date:			July 22, 2013	Budgeted:	Yes
From:			David J. Stoldt	Program/	1-10-1
			General Manager	Line Item No.: N/A
Prepared By:			David J. Stoldt	Cost Estimate:	Not to exceed $200,000
General Counsel Approval: N/A
Committee Recommendation: Water Supply Planning voted 3-0 to recommend approval; Ordinance 152 Citizen’s Oversight Panel also recommended creation of program
CEQA Compliance: N/A

SUMMARY: At its June meeting the District Board adopted a budget that included expenditure of up to $200,000 of the Water Supply Charge for development expenses for local water projects. The program requires matching by the local project sponsor. Each jurisdiction and other interested parties (potential Project Sponsors) will be solicited annually to submit an application. Applications will be due by September 1 of each year. They will be reviewed by staff and the Water Supply Planning Committee with funding recommendations brought back to the Board.

RECOMMENDATION: The Water Supply Planning Committee, in a 3-0 vote, recommends the Board approve and adopt the proposed Local Water Project Grant/Loan Application Form and direct the General Manager to enact the funding program. The Ordinance 152 Citizen’s Oversight Committee has also recommended creation of a local funding program.

DISCUSSION: Project eligibility, requirements, and rating is described in the draft form attached as Exhibit 14-A. Key elements are as follows:

Project Purpose: Direct water supply benefit includes the development of a new water supply that may be used to offset the existing unlawful diversions of the California American Water Company from the Carmel River, as affected by the 2009 Cease and Desist Order imposed by the State Water Resources Control Board (“SWRCB”), or may result in a new additional supply of water that may serve future needs of the Monterey Peninsula.

Ancillary benefits may include, but are not limited to, the following:

· Water supply reliability, conservation, and efficiency of use;

· Water quality improvement – river, ocean, groundwater;

· Recycling or reuse of wastewater consistent with SWRCB Recycled Water Policy;

· Reduction of non-point source pollution, or point source discharge consistent with SWRCB Ocean Plan;

· Reduction of carbon-based emissions consistent with California AB32 goals;

· Storm Water capture and reuse consistent with California ASBS policy goals;

· Groundwater recharge;

· Flood management and protection of property; and

· Environmental mitigation, fisheries protection, or habitat restoration;

District Goals: Does the proposed project provide water to meet additional District goals? District goals include the following four goals:

· Can the Project provide water supply to the District for drought/rationing reserve (i.e. water that is not supplied to a beneficial use immediately upon project completion) and if so, how much?

· Can the Project provide water supply to the District for potential future reallocation to the jurisdictions (i.e. water that is not supplied to a beneficial use immediately upon project completion) and if so, how much?

· Can the project be run in a manner that would provide surplus production that could be “banked” into the Seaside Groundwater Basin utilizing the District’s Aquifer Storage and Recovery project?

· Are there multiple benefits to the region or the State as described above?

Evaluation: Projects will be evaluated by staff and recommendations made to the Committee based upon the following “Merit Factors.”

· Application contains basic information requested

· Project produces new water supply

· Amount of new supply

· Ancillary benefits demonstrated and determined to be of value to community

· District goals identified above, are met by project.

· Feasibility of Project has been demonstrated.

· Project Schedule is well defined and feasible.

· Project Financing is well defined and contingencies examined and identified.

· Annual Cost of Water is well defined and determined by the District to be consistent with alternate water supply projects, with consideration for ancillary benefits.

· Project status with respect to permits, consultants, and land appear to be consistent with successful project completion.

EXHIBIT

14-A Draft Local Water Project Grant/Loan Application Form

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