ITEM:		PUBLIC HEARING
10.	Consider SECOND Reading AND ADOPTION of Ordinance No. 175 – AMENDING REGULATION OF THE SYSTEM CAPACITY OF WATER DISTRIBUTION SYSTEMS IN THE CARMEL VALLEY ALLUVIAL AQUIFER (RULES 11, 20, 20.4, 21, 22, 40 AND 60)
Meeting Date:			November 14, 2016	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: The Water Supply Planning Committee reviewed this item on September 20, 2016 and recommended approval.
CEQA Compliance: Exempt. This is not a “project” under CEQA.

SUMMARY: Draft Ordinance No. 175 (Exhibit 10-A) implements the amended District policy for setting production limits for certain new developments that depend on the Carmel Valley Alluvial Aquifer (CVAA) for a water supply that was approved by the Board on August 15, 2016. The District has a joint interest with Monterey County in reversing the trend of seasonal dewatering of the CVAA and in meeting the goal of Monterey County General Plan Policy PS-3.2 that requires proof of a long-term sustainable water supply for new development requiring a discretionary permit.

It is also noted that the 2006 District policy for setting a historical baseline for production limits from the CVAA, which is part of the Implementation Guidelines for issuing permits for WDS Permits, should be modified. The current definition of “actual historical use” is based solely on production records. In addition to an evaluation of a 10-year history of production (or other appropriate period), potential changes in consumptive use should also be considered. For proposals that fall outside of the August 15, 2016 policy, production limits should be set such that there is no net increase in either production or consumptive use in the CVAA.

RECOMMENDATION: Staff should be directed to revise the Implementation Guidelines and application forms for Water Distribution System Permits and Exemptions. Staff should also be directed to update the 2006 District policy for setting a historical baseline for production limits from the CVAA, which is part of the Implementation Guidelines. As discussed in the staff report from the First Reading of Ordinance No. 175, the current definition of “actual historical use” is based solely on production records. In addition to an evaluation of a 10-year history of production (or other appropriate period), potential changes in consumptive use should also be considered. For proposals that fall outside of the August 15, 2016 policy, production limits should be set such that there is no net increase in either production or consumptive use in the CVAA.

The Board should approve the second reading and adoption of Ordinance No. 175.

BACKGROUND: At its May 24, 2016 meeting, the Water Supply Planning committee reviewed both the District’s 2006 policy for setting production limits for WDS Permits that rely on the CVAA and the 2010 Monterey County General Plan Update Policy PS-3.2 for discretionary permits for new development. Subsequently, at its July 12, 2016 meeting the committee recommended the policy that the Board adopted on August 15, 2016.

With the enactment of State Water Resources Control Board Cease-and-Desist Order 2009-0060, Cal-Am production was significantly reduced, and a significant reversal of the trend in seasonal dewatering of the Carmel River began. Ordinance No. 175 supports a continued reversal of the trend in seasonal dewatering. A key goal is to demonstrate a long-term sustainable water supply using the Monterey County General Plan Policy PS-3.2 factors such as:

· Cumulative impacts of existing and projected future demand for water from the source, and the ability to reverse trends contributing to an overdraft condition or otherwise affecting supply; and

· Effects of additional extraction or diversion of water on the environment including on instream flows necessary to support riparian vegetation, wetlands, fish or other aquatic life, and the migration potential for steelhead, for the purpose of minimizing impacts on the environment and to those resources and species.

The ordinance text refers to the Implementation Guidelines for guidance on how the consumptive use and other calculations will be performed. Rule 11, Definitions, is amended to define “Consumptive Use” and other terms.

2006 Policy on Protocol for Applications Involving Wells in the CVAA

At its October 16, 2006 meeting, the Board approved a policy to address cumulative impacts from the combined effects of Cal-Am and non-Cal-Am extraction from the CVAA. Essentially, the Board adopted a policy of no net increase in production, as measured from data at the well head. However, in some cases, proposals to convert to other uses or add other uses should also consider what changes in consumptive use may occur. This is due to the effect of “return flow” to the CVAA that benefits river flow. This may result from both indoor (e.g., septic return flow) and outdoor use (e.g., from landscape irrigation). Therefore, for proposals that fall outside of the District’s August 15, 2016 policy, in addition to submitting historical well production data, applicants should be required to demonstrate that post-conversion consumptive use is equal to or less than pre-conversion levels. Such analysis should be carried out by qualified hydrologists or experts with similar qualifications.

EXHIBITS

10-A Draft Ordinance No. 175 Amending Regulation of the System Capacity of Water Distribution Systems in the Carmel Valley Alluvial Aquifer (Rules 11, 20, 20.4, 21, 22, 40 and 60)

U:\staff\Boardpacket\2016\20161114\PublicHrngs\10\Item-10.docx