Item deleted from July 20, 2015 Board meeting agenda on 7/17/2015
ITEM:		PUBLIC HEARING
13.	CONSIDER FIRST READING OF ORDINANCE NO. 166 AMENDING RULE 11 AND ADDING RULE 23.8 TO ESTABLISH A WATER ENTITLEMENT FOR THE CITY OF PACIFIC GROVE
Meeting Date:			July 20, 2015	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Locke	Cost Estimate:	N/A
General Counsel Review: Yes
Committee Recommendation: On March 17, 2015, the Water Supply Planning Committee recommended the Board conduct the first reading of a draft ordinance that would establish a Water Entitlement for the City of Pacific Grove.
CEQA Compliance: To be considered at second reading

SUMMARY: Ordinance No. 166 (Exhibit 13-A) establishes a Water Entitlement for the City of Pacific Grove (City) for the amount of water saved by replacing irrigation of the Pacific Grove Municipal Golf Links and the El Carmelo Cemetery with recycled Sub-potable water. The Water Entitlement will be available for new and intensified water uses by properties located within the City. A portion of the water saved will be temporarily dedicated to reducing the amount of water extracted from the Carmel River, and a portion will be dedicated to the District for future Allocation. The exact amount of the proposed Water Entitlement is not shown in the ordinance, but will be known before first reading after the District analyzes water records to be provided by the City prior to the Board’s meeting.

Currently the City irrigates its Municipal Golf Course, El Carmelo Cemetery, and other public landscaped areas with Potable water purchased from California American Water (Cal-Am). The 2014 Pacific Grove Local Water Project (PGLWP) Certified Environmental Impact Report (EIR) identified the Pacific Grove Golf Links, El Carmelo Cemetery, and other minor irrigated areas as areas that would benefit from a supply of Recycled Water for irrigation. This new supply of Recycled Water to be produced by the PGLWP would free up an equivalent volume of Potable water for alternate uses.

The City is seeking a Water Entitlement from the District for the saved Potable water created by the PGLWP, in order to serve a portion of the anticipated build-out water demand of the City, consistent with state requirements and MPWMD ordinances. The Water Entitlement includes a temporary dedication by the City of a portion of the savings to the environment to assist Cal-Am in meeting its obligations until it secures a replacement water supply to offset its use of water from the Carmel River without legal right, and to reduce pumping in the Seaside Groundwater Basin. This environmental dedication of Potable water would directly reduce the amount of water Cal-Am extracts from the Carmel River. This volume of Carmel River replacement water would revert to the City of Pacific Grove upon completion of the Monterey Peninsula Water Supply Project (MPWSP) by Cal-Am. Finally, a portion of potable water would be retained for use by the MPWMD in a manner to be determined by the MPWMD.

The SDEIR evaluates potential environmental effects of the City obtaining Water Entitlements from the MPWMD and use of water dedicated to the environment. Analysis of the portion of water retained by MPWMD was not included in the analysis as it is not a part of the City’s Water Entitlement. MPWMD staff has not had an opportunity to review the SEIR, and CEQA consideration for this ordinance will take place at second reading. MPWMD, in its comment letter on the Notice of Preparation for the SEIR and in conversations with the City’s consultant and City Attorney, suggested the City consider a permanent abandonment of a portion of the Potable water saved. However, the City has not analyzed that alternative.

RECOMMENDATION: The Board should consider approval of the first reading of Ordinance No. 166, establishing a Water Entitlement for the City of Pacific Grove.

EXHIBIT

13-A Draft Ordinance No. 166

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