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ITEM: |
PUBLIC
HEARING |
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16. |
CONSIDER APPROVAL OF AMENDMENT TO CALIFORNIA
AMERICAN WATER DISTRIBUTION SYSTEM TO ADD AQUIFER STORAGE AND RECOVERY
FACILITIES, INCLUDING PHASE 1 AND PHASE 2 WELLS, THE PROPOSED HILBY AVENUE
PUMP STATION AND THE PROPOSED MONTEREY PIPELINE |
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Meeting Date: |
June 20, 2016 |
Budgeted: |
N/A |
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From: |
David J. Stoldt, |
Program/ |
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General Manager |
Line Item No.: |
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Prepared By: |
Henrietta Stern, Project Manager |
Cost Estimate: |
N/A |
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General Counsel Review:
Reviewed |
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Committee
Recommendation: N/A |
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CEQA Compliance: Addendum to Final EIR |
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SUMMARY: The Board will consider two items related to
issuing a Water Distribution System (WDS) Permit Amendment to the California
American Water Company (CalAm) to incorporate facilities into their WDS that
will increase the volume of water available for Aquifer Storage and Recovery
(ASR) as follows:
A. Addendum for the Hilby Avenue Pump Station (Exhibit 16-A),
which would serve as an Addendum to both the ASR Project Environmental Impact Report/Environmental
Assessment (EIR/EA) certified by MPWMD and the Pure Water Monterey/Groundwater
Replenishment Project (PWM/GWR) EIR approved by the Monterey Regional Water
Pollution Control Agency (MRWPCA). The Hilby
Avenue Pump Station Addendum (Hilby Addendum) and Mitigation Monitoring and
Reporting Program (MMRP attached as Exhibit 16-B)
includes construction of a pump station in the City of Seaside for the CalAm
distribution system and mitigation measures for any significant impacts. The Board will consider adopting Resolution
No. 2016-12 (Exhibit 16-C) that refers
to the Addendum and mitigation measures and includes a Statement of Overriding
Considerations related to nighttime noise from construction of the Monterey
Pipeline.
B.
Application submitted by California American
Water to Amend its Water Distribution System. The Board will consider approval of
CalAm application #WDS-20160602CAW (Exhibit 16-D)
to add the proposed Hilby Avenue Pump Station and the proposed Monterey
Pipeline and whether to authorize issuance of an amended WDS Permit that would
incorporate these proposed facilities and also add the previously approved ASR Wells
#1 through #4 as part of the WDS Permit Amendment (facilities shown as Exhibit 16-E).
RECOMMENDATION: District staff recommends that
the Board take the following actions:
1.
Approve the
Addendum for the Hilby Avenue Pump Station (Exhibit 16-A), adopt the Mitigation Monitoring and
Reporting Program (Exhibit 16-B), adopt Resolution
No. 2016-12 (Exhibit 16-C), and approve
the Monterey Pipeline.
2.
Approve
Application #WDS-20160602CAW and authorize issuance of WDS Permit Amendment #M16-01-L3,
based on adoption of the Findings of Approval, including CEQA Findings (Exhibit
16-F) and adoption of the Conditions of Approval (Exhibit 16-G).
This will also result in ASR Phase 1 and 2 wells being incorporated into
CalAm’s WDS Permit.
3.
Direct staff to
file a Notice of Determination with the County Clerk regarding the action to
amend the CalAm WDS.
DISCUSSION: Exhibit 16-E provides a summary figure
that shows the four components that would be added to the CalAm WDS, including
the proposed Hilby Avenue Pump Station, proposed Monterey Pipeline, and ASR
Phase 1 and Phase 2 wells. Because of
existing CalAm diversion, treatment, and distribution system constraints, the
ASR project cannot take full advantage of existing water rights granted by the
State Water Resources Control Board (SWRCB) to divert excess winter Carmel
River flows. The Monterey Pipeline will
resolve a pumping trough problem in the vicinity of the Naval Post Graduate
School in Monterey and will increase the capacity of the Cal-Am distribution
system to move water from Carmel Valley through the City of Carmel, Pebble
Beach, and the City of Monterey and into the City of Seaside. The Hilby Avenue Pump Station will provide
the lift capacity to move water up from the Monterey Pipeline and deliver the
water to the ASR injection sites. It should be noted that the
Hilby Avenue Pump Station was referred to as the “Monterey Pump station” in
previous testimony before the California Public Utilities Commission (CPUC) and
as the “Alternative ASR Pump Station” in the PWM/GWR EIR. The proposed Monterey Pipeline was referred
to as the “Alternative Monterey Pipeline” in the PWM/GWR EIR. This pipeline project was previously approved
by the MRWPCA on October 8, 2015 under MRWPCA Resolution 2015-24 (a copy is
available in Volume 4 of the EIR at:
Additional information is provided below.
The Board should review the Draft and Final EIR/EA on the District website at:
http://www.mpwmd.net/wp-content/uploads/2015/08/MPWMD-Draft-EIR-EA-3-06.pdf and
http://www.mpwmd.net/wp-content/uploads/2015/08/FEIR_8-21-06.pdf.
The Board should also review its previous action on the Addendum No. 1 for the Phase 2 ASR facilities in April 2012 at:
http://www.mpwmd.net/asd/board/boardpacket/2012/20120416/16/item16.htm.
The Board should also
review the Pure Water Monterey consolidated Final EIR on that project’s website
at: http://purewatermonterey.org/reports-docs/cfeir/.
The printed Draft and Final EIR/EA for the ASR Project and
the EIR for the Pure Water Monterey Project are available at the District
office for public review. Hard copies or
CDs may be requested by the public for the price of reproduction.
ASR Project: In brief, the ASR Project is comprised
of previously approved Phase 1 and Phase 2 elements, including Wells #1 and #2 at
the Santa Margarita site and Wells #3 and #4 at the Seaside Middle School site. The project is jointly sponsored by MPWMD and
CalAm to divert excess flow from the Carmel River in the wet season, as
permitted, for injection into the Seaside Groundwater Basin via special wells
for later recovery during dry periods.
Use of the Seaside Basin water source during dry periods helps reduce
adverse impacts of pumping from the Carmel River environment when it is most
vulnerable. The SWRCB previously
approved water right permits 20808A and 20808C for Phase 1 and Phase 2 that allow
MPWMD and CalAm to divert a maximum of 5,326 acre-feet per year (AFY). But this nominal or “face value” of the water
rights is currently constrained both by the availability of excess river flow in
winter and Cal-Am operational limitations.
Full implementation of the
ASR Project (Phase 1 and 2 combined) as contemplated in the ASR
EIR and Addendum No. 1 is
estimated to yield an average injection of 1,920 AFY in the wet season
(December 1 through May 31), which would result in reductions in unauthorized diversions
by CalAm from the Carmel Valley Alluvial Aquifer during dry periods. Actual production amounts in any one year
depend on river conditions and annual multi-agency operational agreements. The
addition of the Hilby Avenue Pump Station and construction of the Monterey
Pipeline will enable additional transmission of Carmel River water to the Seaside
Basin when large amounts of water must be moved in a short period of time. The Pump Station and pipeline do not increase
the allowed diversion of Carmel River water previously approved by the SWRCB; the
facilities simply enable the District and CalAm to divert more excess winter
flows for injection than the current CalAm system provides.
Monterey Pipeline: The MRWPCA Board did not have permit authority over the proposed CalAm Monterey Pipeline. However, the MRWPCA Board Resolution for the GWR Project, in reference to the CalAm Monterey Pipeline facilities, states:
“The (PCA) Board hereby finds that the adopted
mitigation measures are changes or alterations that have been required in, or
incorporated into, the Project which mitigate or avoid significant effects on
the environment.
Some of the mitigation measures identified
in the EIR cannot be fully implemented by the Board because the measures apply
to a Project component that the Board does not control. The Alternative Monterey Pipeline would be
implemented by CalAm and is not subject to regulatory approvals by MRWPCA.
CalAm has confirmed that it would implement all of the mitigation measures that
the EIR identifies for the Alternative Monterey Pipeline, including the
following: AE-2; AQ-1; BT-1a; BT-1k; BT-1m; CR-1; CR-2(a); CR-2(b); CR-2(c);
EN-1; HH-2(a); HH-2(b); HH-2(c); LU-2; NV-1(b); NV-1(c); PS-3; TR-2; TR-3; and
TR-4.
The Board hereby finds that these mitigation measures are within the jurisdiction of other public agencies issuing regulatory approvals to CalAm, and can and should be approved by those other agencies.” (Emphasis added)
It is noted that the
MRWPCA Board in approving the project included a Statement of Overriding Considerations related to nighttime noise
from construction of the Monterey Pipeline. The MWPMD Board would act as a
Responsible Agency under CEQA and adopt a similar statement of overriding
considerations regarding the construction of the pipeline. MPWMD has permitting authority over the Monterey
Pipeline and will incorporate the pipeline and required mitigation measures into
the CalAm WDS Permit Amendment.
Hilby Addendum: The public hearing for this Addendum has been properly noticed at least 10 days prior to the public hearing. Hearing notices have been posted at the offices of MPWMD, MRWPCA, CalAm and the cities of Monterey, Pacific Grove and Seaside. Notices have also been posted at the ASR Phase 1 and Phase 2 facility sites as well as the proposed Hilby Avenue Pump Station location. Hearing notices are also included on the District website and agendas distributed to numerous recipients.
The Hilby
Addendum (Exhibit 16-A) describes the site-specific
environmental effects of the proposed Hilby Avenue Pump Station in Seaside, and is intended to support
discretionary approvals for installation and operation of the pump station. In compliance with CEQA Guidelines
Sections 15162 and 15164, the Addendum evaluates whether construction and
operation of the Hilby Avenue Pump Station would result in a new significant
impact, or a significant impact that is substantially more severe than was
previously disclosed in the ASR Project EIR/EA that was certified by the
District in 2006 or in the PWM/GWR EIR certified by the MRWPCA in October
2015. The Addendum concludes that:
·
No new or previously unidentified adverse significant impacts would
result from the construction and operation of the Hilby Avenue Pump Station;
·
The Pump Station would not result in a substantial increase in the
severity of the significant impacts already identified in the ASR Project
EIR/EA or the PWM/GWR EIR.
Approval of the Addendum entails incorporating the Hilby Addendum into
the administrative record for the ASR Project EIR/EA previously certified by
MPWMD in 2006 as the CEQA Lead Agency. The
District’s action also amends the PWM/GWR Project previously approved by MRWPCA
in October 2015 to incorporate the Hilby Pump Station. The District relies on the PWM/GWR EIR for
information about the Monterey Pipeline. Approval of the Addendum and MMRP and
adoption of the accompanying Resolution complies with requirements of the
California Environmental Quality Act (CEQA).
Action by the District to approve the Addendum and approve the CalAm WDS Permit Amendment has been requested by the CPUC prior to issuing a decision on the PWM/GWR project, which is tentatively scheduled for July 2016. District staff understands that CalAm concurs with the Hilby Addendum and MMRP documents as well as the Conditions of Approval for WDS Permit Amendment #M16-01-L3.
It is noted that an Addendum is not required to be circulated for public review (CEQA Guidelines Section 15164).
Mitigation Monitoring and Reporting Program: Mitigation measures for construction of the Hilby Avenue Pump Station and the Monterey Pipeline are consolidated into a Mitigation Monitoring and Reporting Program (MMRP, attached as Exhibit 16-B). The Board must adopt the updated MMRP (Exhibit 16-B), based on the Hilby Addendum with site-specific mitigation measures applicable to the Hilby Avenue Pump Station and mitigation measures for the Monterey Pipeline contained in the PWM EIR. The original MMRP for the ASR Project is Chapter 4 of the Final Phase 1 EIR/EA referenced above, as amended by the Phase 2 Addendum accepted in April 2012. The measures contained in that MMRP have been amended for the Hilby Pump Station and included in Exhibit 16-B. The MMRP mitigation measures for construction of the Monterey Pipeline are contained in the MMRP for the PWM/GWR Project, which can be found in Section 5 of Volume IV of the Consolidated Final EIR found at http://purewatermonterey.org/reports-docs/cfeir/ (referred to as the Alternative Monterey Pipeline in the PWM/GWR MMRP). As a condition of the WDS Permit Amendment, CalAm will be required to carry out all measures described in the consolidated MMRP.
Resolution 2016-12: The
Resolution (Exhibit 16-C) includes a
series of Findings that lead to statements in the Resolution that:
Ø
Demonstrate
continued District compliance with the CEQA as a Lead Agency and a Responsible
Agency;
Ø
Approve the June 2016 Hilby
Addendum (Exhibit 16-A) to the Phase 1
ASR Project Final EIR/EA, certified by MPWMD on August 21, 2006, and to the
PWM/GWR EIR certified by the MRWPCA on October 8,
2015;
Ø
Adopt the June
2016 Mitigation Monitoring and Reporting
Program (MMRP) that contains mitigation measures for the for the Hilby Avenue
Pump Station (Exhibit 16-B) as required
by CEQA; and
Ø
Approve application
WDS-20160602CAW by CalAm to add the Hilby Avenue Pump Station and the Monterey
Pipeline as components of the CalAm WDS, based on the Hilby Addendum and
previous certified environmental documents, and authorize the filing of a
Notice of Determination with the County Clerk for approval of the application and
CalAm WDS Amendment. It is noted that
ASR Phase 1 and Phase 2 project components (such as Wells #1 through #4) were
previously approved in 2006 and 2012, respectively, and that the Monterey
Pipeline was previously approved in 2015.
CalAm Application: CalAm submitted two applications for a WDS Permit Amendment – one for the Hilby Avenue Pump Station and one for the Monterey Pipeline – but they will be treated as one application with one fee. CalAm also submitted a CD with detailed engineering drawings of certain facilities. In addition to the two planned facilities, the previously approved Phase 1 and Phase 2 ASR wells that have been completed would also be recognized as additions to the CalAm WDS.
Amended CalAm WDS Permit/Findings and Conditions: Board approval of Items A and B described above would result in issuance of WDS Permit M16-01-L3 that would: (a) approve the future addition of the proposed Hilby Avenue Pump Station and Monterey Pipeline to the CalAm WDS; and (b) formally recognize previous MPWMD actions that approved the ASR Phase 1 and Phase 2 wells which are now part of the CalAm WDS.
The specific components of the amended
CalAm WDS would be:
1. Future Hilby Avenue Pump
Station, to be located at 1561 Hilby Avenue, based on the ASR Project EIR/EA
certified by MPWMD in 2006, and the June 2016 Hilby Addendum to the ASR Project
EIR/EA and the June 2016 Hilby Addendum to the PWM/GWR EIR;
2. Future Monterey Pipeline, to
be comprised of approximately 35,000 feet of 36-inch pipeline that would
traverse the cities of Seaside, Monterey and a portion of Pacific Grove, which
was previously analyzed in the PWM/GWR
EIR certified by the MRWPCA on October 8, 2015 under MRWPCA Resolution 2015-24;
3. Existing ASR Phase 1 Wells
#1 and #2 at the Santa Margarita site, located at 1910 General Jim Moore Blvd.
(previously approved by the District Board via a Notice of Determination for
MPWMD WDS Permit #M11-04-L4 adopted on August 21, 2006); and
4. Existing ASR Phase 2 Wells
#3 and #4 at the Seaside Middle School site, located at 2111 General Jim Moore
Blvd. (previously approved via a Notice of Determination adopted by the
District Board on April 16, 2012).
The Findings of Approval (Exhibit 16-F) supporting amendment of the CalAm WDS Permit are based on evidence provided in the application materials, including supporting environmental documents on file at the District office. Staff believes the application meets the criteria and minimum standards for approval set by District Rules 22-B (Findings) and 22-C (Minimum Standards for Granting a Permit). Pertinent information includes previously certified environmental documents, the June 2016 Hilby Addendum and MMRP, technical studies and reports, technical memoranda and maps, and previous approvals by other governmental entities. Based on the certified EIR and Addendum for the Phase 1 and Phase 2 ASR Projects, respectively, the certified EIR for the PWM/GWR Project, and water rights permits 20808A and 20808C issued by the SWRCB, MPWMD approval of Application WDS-20160602CAW is not anticipated to result in a significant adverse effect to the Carmel River or Seaside Groundwater Basins. Near-term beneficial effects are anticipated due to the improved ability to carry out the ASR Project.
The Conditions of Approval (Exhibit 16-G) proposed for Permit #M16-01-L3 to amend the CalAm WDS are consistent with MPWMD Rule 22-D (Mandatory Conditions of Approval) governing water distribution systems. Conditions #1 through #4 define the Permitted System, including an approved System Capacity (production limit) and an Expansion Capacity Limit (number of connections). The “municipal unit allocation” in Condition #3 refers to quantities of water associated with a jurisdiction’s defined CalAm water allocation, which would not change from current amounts in MPWMD records.
The previous System Capacity limit was 1,500 AFY for Permit #M11-04-L4 for Phase 1 ASR. This is now changed to 5,326 AFY to reflect the SWRCB water rights limits and includes MPWMD approval of Phase 2 facilities in 2012. This amount is consistent with previously approved environmental documents for the ASR Project. It is noted that actual maximum production would likely be less than the production limit in any one year due to variation in weather, plus physical and regulatory constraints to the CalAm system. The estimated project yield analysis for ASR Phase 2 envisioned an average of 1,920 AFY for Phase 1 and 2 combined. An Expansion Capacity Limit (connections) of one master connection was previously included in Permit #M11-04-L4 (Phase 1 ASR) and focuses on CalAm production (rather than the number of customer connections). An additional master connection for the Phase 2 ASR wells will be described in the permit amendment.
Mandatory Conditions #5 through #24 address a variety of subjects such as water quality, well metering, annual reporting, conservation, fee payments, timely notice of system changes, staff access for inspections, interties with other systems, future permits, and required Indemnification Agreement, Acceptance Form and Deed Restriction. Condition #24 states that the WDS Permit is subject to revocation if the Permittee does not fully comply with each and every Condition of Approval. Conditions #25 and #26 address basic water rights and recognition of the federal Endangered Species Act; these conditions are not required by District rules, but are included in all MPWMD WDS Permits and Amendments. Special Condition 27 states that CalAm shall comply with all mitigation measures required in the MMRP for construction of the Hilby Avenue Pump Station and Monterey Pipeline, along with operational requirements for ASR Phase 1 and 2. The conditions refer to attachments that will be similar to figures and the MMRP already provided above. Special Condition #28 requires CalAm to provide copies of reports to the SWRCB that are associated with water right Permits #20808A and #20808C.
There will be a series of follow-up actions between the District and CalAm staff, which will result in a final WDS Permit Amendment package recorded with the Monterey County Recorder.
IMPACT TO DISTRICT RESOURCES: Adoption of the Resolution and acceptance of the Hilby Addendum by itself has no resource or financial impacts. However, once CalAm actually constructs the Hilby Avenue Pump Station and Monterey Pipeline, MPWMD staff or consultant work may be needed to monitor construction and compliance with the permit, operations and/or review technical reports.
EXHIBITS
16-A Addendum for Hilby Avenue Pump Station
16-B Mitigation Monitoring and Reporting Program
16-C Resolution 2016-12
16-D Application #WDS-20160602CAW (without CD attachments)
16-E Figure of Amended CalAm WDS components
16-F Draft Findings of Approval for WDS Permit #M16-01-L3
16-G Draft Conditions of Approval for WDS Permit #M16-01-L3
U:\staff\Boardpacket\2016\20160620\PublicHrngs\16\Item-16.docx