|
ITEM: |
PUBLIC
HEARING |
||||
|
|
|||||
|
14. |
CONSIDER APPLICATION TO
AMEND CALIFORNIA-AMERICAN WATER COMPANY, RYAN RANCH UNIT, TO SERVE COMMUNITY
HOSPITAL PROPERTIES VIA D.B.O. DEVELOPMENT NO. 30 WATER RIGHTS IN SEASIDE
GROUNDWATER BASIN; MPWMD APPLICATION #WDS-20170227RYA (EXEMPT FROM
ENVIRONMENTAL REVIEW PER CEQA GUIDELINES SECTION 15378.) |
||||
|
|
|||||
|
Meeting
Date: |
April 19, 2017
|
Budgeted:
|
N/A
|
||
|
|
|||||
|
From: |
David J.
Stoldt |
Program/ |
N/A |
||
|
|
General
Manager |
Line Item No.: |
|
||
|
|
|||||
|
Prepared
By: |
Gabriela
Ayala |
Cost
Estimate: |
N/A |
||
|
|
|||||
General Counsel Review:
Yes
|
|||||
Committee Recommendation: N/A
|
|||||
|
CEQA Compliance: N/A. The Superior Court and Appellate Court found
that MPWMD has limited authority to make determinations under CEQA for usage
of adjudicated Seaside Groundwater Basin water. |
|||||
A.
CONSIDER
APPROVAL OF AMENDMENT TO RYAN RANCH UNIT WATER DISTRIBUTION SYSTEM (WDS) TO
ENABLE ADDITIONAL SERVICE TO CHOMP, PARCELS APN 259-221-004 AND 259-221-005,
CALIFORNIA-AMERICAN WATER COMPANY, APPLICANT
B.
CONSIDER
APPROVAL OF RYAN RANCH WDS SYSTEM CAPACITY AMENDMENT IN COMPLIANCE WITH MPWMD
DECISION ON INSUFFICIENT PHYSICAL SUPPLIES (JUNE 2009) AND STATEMENT OF
EXPANDED SUPPLY (APRIL 19, 2017)
SUMMARY: The Board will consider Application #WDS-20170227RYA (Exhibit 14-A) submitted on February 27, 2017 by co-applicants California-American Water Company (CAW) and DBO Development No. 30 (DBO). This application stems from the previous Board approval of Permit #M15-07-L3 (“CAW/DBO Amendment”) on November 16, 2015, which allowed CAW to increase its System Capacity (annual water production limit) in the Seaside Groundwater Basin Coastal Subareas by up to 15.0 Acre-Feet Annually (AFA) of production from transferred DBO water rights. This translates to 13.95 AFA metered sales delivered to future recipient parcels within the Seaside Groundwater Basin designated by DBO. In this case, the 2.00 AFA of metered sales is designated to serve additional water needs for the Community Hospital Properties (CHOMP) campus at Ryan Ranch on Assessor’s Parcel Numbers (APN) 259-221-004 and 259-221-005 (Exhibit 14-B), referred to herein as the “CHOMP Parcels.”
CAW’s Ryan Ranch Unit WDS has been under a moratorium for new
connections since June 15, 2009, when the District Board determined that supplies
were insufficient to serve customers and specified certain actions before new
customers could be served. However, the
Board on August 17, 2015, took action to approve WDS Permit #M15-06-L3 to
enable CAW delivery of 3.17 AFA metered sales to the CHOMP Parcels via the Ryan
Ranch Unit. Since then, CHOMP has found that additional water is needed to
complete its expansion of the new medical office building in Ryan Ranch. Thus, two
Board actions are under consideration:
1.
Amend
the Ryan Ranch Unit WDS to enable additional service of 2.0 AFA metered sales to
the CHOMP Parcels (referred to herein as the “CAW/Ryan Ranch-CHOMP Amendment
No. 2”), which entails several changes
to the current Conditions of Approval for the Ryan Ranch Unit. This results in
a total of 5.17 AFA metered sales to the CHOMP Parcels.
2.
Approve an amended April 2017 Statement of Expanded Supply
for the Ryan Ranch Unit WDS (Exhibit
14-C) that increases the System Capacity pursuant
to Order #5 of the June 15, 2009 Findings, Conclusions and Decision of the
Board, Hearing on Insufficient Physical Supplies in Accord with District Rule
40-B (“Ryan Ranch Decision” shown as Exhibit 14-D); and enable receipt
of a future application by CHOMP for a Water Permit to expand water use
pursuant to Order #4 of the Ryan Ranch Decision.
District compliance with the California Environmental Quality Act (CEQA) is addressed in the “Recommendations” section below. Additional information is provided in the “Background” and “Discussion” sections below. This public hearing has been properly noticed as described below. MPWMD files associated with this application by CAW and DBO are available for review at the District office, or other locations as applicable.
RECOMMENDATIONS: District staff recommends that the Board take the following actions:
1. Adopt the MPWMD Findings of Approval for Application #WDS-20170227RYA for the CAW/Ryan Ranch-CHOMP Amendment No. 2 (Exhibit 14-E).
2. Approve Application #WDS-20170227RYA; authorize issuance of MPWMD Permit #M17-01-L3 for the CAW/Ryan Ranch-CHOMP Amendment No. 2 with the Conditions of Approval specified in Exhibit 14-F. The Conditions of Approval include all the Mandatory Conditions of Approval specified in MPWMD Rule 22-D as well as several special conditions for this project, as described in the “Discussion” section below. Notably, they allow CAW to transfer an additional 2.00 AFA metered sales from its “main” system (derived from Seaside Basin Coastal Subareas) into the Ryan Ranch Unit via the existing emergency interconnection to serve only the two CHOMP Parcels.
3. Direct staff to file a Notice of Exemption with the County Clerk. As explained below, this would be a Statutory Exemption for a ministerial action pursuant to CEQA Guidelines section 15268.
4. Approve an April 2017 Statement of Expanded Supply for the Ryan
Ranch Unit (Exhibit 14-C) that confirms: (a) the System Capacity for the Ryan Ranch
Unit may be increased by another 2.00 AFA metered sales (resulting in 5.17 AFA
meter sales total) designated solely for the CHOMP Parcels; (b) “credible expert analysis” has
occurred in the form of the August 17, 2015 hearing materials that led to the
Board approval of the CAW/Ryan Ranch-CHOMP Amendment (Permit #M15-06-L3); and
(c) District staff may accept a future application by CHOMP for a Water Permit
to expand water use within Ryan Ranch. These actions comply with Orders
#4 and #5 of the 2009 Ryan Ranch Decision (Exhibit 14-D).
MPWMD
CEQA Compliance
A Monterey County Superior Court Order dated May 11, 2009, as confirmed by the Appellate Court (Cal-Am v. Seaside, and Sierra Club v. MPWMD; 6th Appellate District, H034335, April 1, 2010), determined that MPWMD can require a WDS Permit for water rights transfers in the Seaside Basin, but the Physical Solution governs the environmental aspects of Seaside Basin groundwater usage, and no party to the Basin Adjudication can require environmental review under CEQA with regard to such usage. District Counsel has confirmed that the MPWMD Board’s decision on the CAW/Ryan Ranch-CHOMP Amendment No. 2 is viewed as a CEQA ministerial action (CEQA Guidelines section 15268) due to the above Court Orders.
In his July 30, 2010 Order After Ex Parte Hearing, Case #M66343), Judge Roger Randall determined that MPWMD has the authority to require an accounting of water production to satisfy itself that no Carmel River water is being used, but cannot make environmental decisions based on mere co-mingling of Seaside and Carmel Basin waters in CAW storage tanks. Thus, the previous CAW/DBO Amendment Conditions of Approval (MPWMD Permit #M15-07-L3) included a “Front-Loading Agreement” (Exhibit 14-G) and specified a data collection protocol to ensure that only CAW Wells in the Coastal Subareas of the Seaside Basin are used to serve the DBO recipient Parcels, which are now designated as the two CHOMP Parcels in Ryan Ranch.
BACKGROUND: An extensive history and litigation is associated with water rights in the Seaside Groundwater Basin, which affect the Findings, Conditions and CEQA compliance for water right transfers in the Seaside Basin. In brief, the Seaside Groundwater Basin Adjudication Decision by the Monterey County Superior Court allows parties to combine pumping facilities and delivery for maximum benefit and management of the Basin, with Watermaster approval. Thus, DBO water rights may be physically produced from another Seaside Basin Well owned by CAW and delivered to recipient parcels within the Seaside Basin. The SWRCB previously determined that the one-for-one replacement in Order WR 95-10 for new CAW supplies does not apply to transferred water rights within the Seaside Basin.
CAW/Ryan Ranch-CHOMP Amendment
The Board approved Permit #M15-06-L3 (“CAW/Ryan Ranch-CHOMP Amendment”)
on August 17, 2015 which allowed
CAW to deliver 3.17 AFA metered sales to the CHOMP Parcels via its Ryan Ranch
Unit water system. This quantity
stemmed from an earlier approval of the CAW/Cypress Amendment (WDS Permit M14-05-L4)
on September 15, 2014, which allowed 3.41 AFA additional production from CAW
Wells in the Seaside Groundwater Basin
Coastal Subareas, equivalent to 3.17 AFA metered sales, to future recipient
Parcels. The CAW/Ryan Ranch-CHOMP Amendment transferred the entire 3.17 AFA
amount to the CHOMP Parcels.
CAW/DBO
Amendment
The Board approved Permit #M15-07-L3
(“CAW/DBO Amendment”) on November 16, 2015, which allowed CAW to increase its
System Capacity (annual water production limit) in the Seaside Groundwater
Basin Coastal Subareas by up to 15.0 AFA of production from transferred DBO water
rights. This translates to 13.95 AFA metered
sales delivered to future recipient parcels within the Seaside Basin designated
by DBO. In this case, DBO is
transferring 2.00 AFA of metered sales for the CHOMP Parcels. Thus, there will be 11.95 AFA remaining in
the DBO “account” for future metered sales.
Determinations on Ryan Ranch Unit System
Capacity
In November 1989, the District approved the annexation of the Ryan Ranch Unit into the CAW system, to be operated as a separate unit. The 1989 Conditions of Approval included a System Capacity of 175 AFA and the Expansion Capacity Limit of 190 connections, assuming five Wells and certain capacity requirements. This approval also allowed an emergency intertie between the main CAW system and the Ryan Ranch Unit, which was metered and reported, when used.
Based on repeated annual use of the emergency intertie and the fact that only two Wells were in service, in September 2008 the District General Manager formally advised CAW that the Ryan Ranch water supplies were insufficient, which triggered a series of MPWMD public hearings to determine changes that should be made to the System Limits. These efforts culminated in June 15, 2009 Board action that reduced the production limit to 72 AFA. Because the previous Water Year production was 82 AFA, a moratorium on any new Water Permits was imposed. The MPWMD Board directed that no Water Permit applications would be received until CAW “develops additional Well capacity to sustain a higher System Capacity and has its System Capacity modified” in a future public hearing. These actions were formalized in the June 15, 2009 Findings, Conclusions and Decision of the Board, Hearing on Insufficient Physical Supplies in Accord with District Rule 40-B (Exhibit 14-D).
As part of the August 2015 CAW/Ryan Ranch-CHOMP Amendment, the Ryan Ranch Unit System Capacity was increased by 3.17 AFA metered sales to 75.17 AFA, and a Statement of Expanded Supply was approved by the Board. It is noted that because production increases were allowed only for CAW Wells in the Seaside Basin Coastal Subareas, the System Capacity increase in the Ryan Ranch Unit reflects only metered sales.
CAW funded hydrogeologic studies and test Well explorations in Ryan Ranch, but no new supplies have been developed to date. The emergency intertie from the main CAW system was used in 13 out of the past 14 Water Years (WY 2003 through WY 2016), but the trend is toward much lower amounts in recent years due to infrastructure improvements.
CAW/Ryan Ranch-Bishop Interconnection
At its June 15, 2015 meeting, the Board approved Permit #M15-03-L3 for the “CAW/Ryan Ranch-Bishop Interconnection” for Emergency Use, which entails use of the Bishop Unit WDS (rather than the main CAW system) as the source of emergency supply when Ryan Ranch Unit supplies are insufficient. This included updating and revising the Conditions of Approval for both the Ryan Ranch and Bishop WDS. Notably, Permit #M15-03-L3 Condition #13 prohibits use of the intertie between the main CAW system and the Ryan Ranch Unit unless written authorization is provided by the MPWMD General Manager in an emergency event, based on documentation that neither the Ryan Ranch nor Bishop Units can provide adequate supply. Special Condition #27 allowed modification of the Ryan Ranch Unit limit under specific circumstances.
CAW/Ryan Ranch-CHOMP Amendment No. 2
The current action before the Board is to combine the 3.17 AFA from the 2014 CAW/Cypress Amendment and 2.0 AFA metered sales from the 2015 CAW/DBO Amendment for a total of 5.17 AFA for the CHOMP Parcels. CHOMP will need to demonstrate that the 5.17 AFA limit will not be exceeded.
DISCUSSION: The following paragraphs describe the proposed Findings and Conditions of Approval, and the April 2017 Statement of Expanded Supply.
Findings of Approval
The Findings of Approval for Application #WDS-20170227RYA (Exhibit 14-E) are based on evidence provided in the application materials, including supporting documents received through April 12, 2017, on file at the District office. With the Conditions of Approval for the previous CAW/DBO Amendment, CAW/Ryan Ranch Bishop Interconnection, and the current WDS Permit #M17-01-L3, and previous action by the Monterey County Superior Court and Seaside Basin Watermaster, District staff believes a Finding can be made that 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). Specifically, this action should “not create an Overdraft or increase an existing Overdraft….” (Rule 22-C-4).
Conditions
of Approval
The Conditions of Approval (Exhibit 14-F) proposed for Permit #M17-01-L3 are consistent with MPWMD Rule 22-D (Mandatory Conditions) governing approval of Water Distribution Systems. Conditions #1 through #4 define the Permitted System, including an additional 2.00 AFA metered sales from DBO to serve the two CHOMP Parcels in Ryan Ranch, for a total of 5.17 AFA for these Parcels. This would increase the total System Capacity (production limit) in the Ryan Ranch Unit from 75.17 AFA to 77.17 AFA.
Mandatory Conditions #5 through #24 include a variety of subjects such as water quality, metering, annual reporting, conservation, fee payments, timely notice of system changes, staff access, and required Indemnification Agreement, Acceptance Form and Deed Restriction. Condition #24 states that the WDS Permit is subject to revocation if CAW (or CHOMP) does not fully comply with each and every Condition of Approval for Permit #M17-01-L3. Conditions #25 and #26 address basic water rights and the Endangered Species Act; these conditions are not required by District rules, but are included in all MPWMD WDS Permits.
CAW/Ryan Ranch-CHOMP Amendment No. 2 Special Conditions of Approval
The current Special Conditions for the Ryan Ranch Unit reflect the Board’s August 17, 2015 approval of the CAW/Ryan Ranch-CHOMP Amendment. Approval of application #WDS-20170227RYA and Permit #M17-01-L3 would amend the current Special Conditions in the following ways:
Ø Condition #27 describing the current moratorium on Water Permits is amended to specify that only the two CHOMP Parcels may receive an additional 2.00 AFA metered sales (resulting in 5.17 AFA total) for future expansion of the hospital facilities; no other Parcels may be served with that water unless written authorization by MPWMD is granted. The new text is in bold italic as follows:
27.
Except for service of up to 3.17 AFA 5.17
AFA metered sales designated solely for the two CHOMP Parcels specified
in Conditions #1 through #4, the District shall not accept an application for a
Water Permit to expand water use in the Ryan Ranch Unit Service Area until its
System Capacity is further modified pursuant to the Findings, Conclusions and Decisions Regarding Insufficient Supply in
the Ryan Ranch Unit adopted by the MPWMD Board of Directors on June 15,
2009. Permittee may apply for, and the
District may further amend, the Ryan Ranch Unit System Capacity based upon
credible expert analysis in accordance with Rule 40-B-4.
Ø Condition #28 regarding copies of Watermaster approvals, if applicable, is amended to add the CAW/Ryan Ranch-CHOMP Amendment No. 2.
Ø Condition #29 regarding Well production reporting is not changed.
Ø Condition #30 regarding Well water level reporting is not changed.
Ø
Condition
#31 regarding reporting of metered sales is amended to require CAW to meter
the pipelines that deliver water to the two CHOMP Parcels and report cumulative
water use on a quarterly basis to MPWMD.
This is to ascertain whether or not the two CHOMP Parcels are staying
within the 5.17 AFA limit (3.17 + 2.0 AFA).
If metered sales on the two CHOMP Parcels exceed 5.17 AFA, then CHOMP
will be subject to the procedures specified in District Rule 20.4, Permit Rule
Non-Compliance. The old text is in strikeout
and new text is in bold italic as follows:
31.
By November 30 of each year, Permittee shall continue
to provide an annual report to the District of metered sales (customer
consumption) that identifies consumption during the previous Water Year. Permittee shall meter the pipelines that
deliver water to the two CHOMP Parcels and report cumulative water use on a
quarterly basis to MPWMD to ascertain that water deliveries to the two CHOMP
Parcels remain within the 3.17 AFA 5.17 AFA limit. If metered sales on the two CHOMP Parcels
exceed 3.17 AFA 5.17 AFA, then CHOMP will be subject
to the procedures specified in District Rule 20.4, Permit Rule Non-Compliance.
Ø Condition #32 is amended to state that final construction plans will need to demonstrate that projected water use will not exceed 5.17 AFA, using District methodology at that time, in order to receive a Water Permit for the project.
Ø
Condition
#33 is unchanged; all Water
Permits require a Deed Restriction that entails release of consumption
information upon request by the District.
Ø
New
Condition #34 refers to and attaches the September 24, 2015 Agreement Regarding Front Loading Delivery
of Water between CAW and DBO (Exhibit
14-G).
It specifies the steps that must be taken by CAW to ensure that only
Seaside Basin water is delivered by CAW.
April 2017 Statement
of Expanded Supply
The April 2017 Statement of Expanded Supply for the Ryan Ranch Unit (Exhibit 14-C) formally determines compliance with Order #4 and #5 of the June 2009 Ryan Ranch Decision (Exhibit 14-D). It formalizes the additional 2.00 AFA metered sales increase to the System Capacity for the Ryan Ranch Unit (for a total of 5.17 AFA metered sales); determines that “credible expert analysis” to justify this increase has occurred in the form of the November 16, 2015 hearing materials that led to the Board approval of the CAW/DBO Amendment (Permit #M15-07-L3); and allows District staff to accept a future application by CHOMP for a Water Permit to expand water use within Ryan Ranch.
Public notice has been provided
no later than 10 days prior to this public hearing in several ways, including:
(1) mailed notices to property owners within 300 feet of Parcels APNs 259-221-004
and -005; (2) posted notices onsite and in public areas closest to the subject
Parcels; (3) posted notices at the District office, CAW office, Watermaster
office, and Monterey City Hall; (4) notice of the public hearing to recipients
of District agendas for the April 19, 2017 meeting; and (5) posting of the April
19, 2017 public hearing notice and agenda materials on the District
website.
EXHIBITS
14-A Application #WDS-20170227RYA
dated February 27, 2017
14–B Location of CHOMP Parcels, APNs 259-221-004 and 259-221-005
14–C MPWMD April 2017 Statement of Expanded Supply
for the Ryan Ranch Unit
14–D MPWMD Ryan Ranch Decision on Insufficient Supplies (June 2009)
14-E MPWMD Draft Findings
of Approval dated April 2017
14–F MPWMD Draft Conditions
of Approval dated April 2017
14-G Front Loading Agreement between CAW and DBO (September 2015)
file:///U:\staff\Boardpacket\2017\20170419\PubHrng\14\Item-14.docx