ITEM:		PUBLIC HEARING
9.	CONSIDER FIRST READING OF ORDINANCE NO. 181 AMENDING RULE 11 AND ADDING RULE 23.10 TO ESTABLISH A WATER ENTITLEMENT FOR SNG EVARISTE, LLC, A DELAWARE LIMITED LIABILITY COMPANY
Meeting Date:			December 17, 2018	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: N/A
CEQA Compliance: MPWMD has determined that a Statutory Exemption applies as defined in CEQA Guidelines Section 15268 (Ministerial Projects), based on previous environmental determinations made by the Courts.

SUMMARY: Ordinance No. 181 (Exhibit 9-A) establishes a 5.07 Acre-Feet (AF) Water Entitlement for SNG EVARISTE, LLC, a Delaware Limited Liability Company (SNG).
SNG is an Alternate Producer under the Seaside Groundwater Adjudication Decision. SNG is requesting an Entitlement to convert 10.903 AF from Alternate to Standard Production so that the water can be used elsewhere in the Seaside Groundwater Basin. By making the conversion, the Production Limit is subject to the adjudication “ramp down,” reducing the amount of water from 10.903 AF to 5.07 AF. Montage Health will be the recipient of the Entitlement for construction of a new health care facility in Ryan Ranch.

A Water Entitlement is a discrete quantity of water established by District ordinance that specifies a Water Entitlement Holder for new or Intensified Water Use. A Water Entitlement Holder assigns water to its subscribers via Assignment Documents that the subscribers then use to obtain Water Use Permits from the District. The Water Use Permit can then be used to permit new or intensified water use up to the amount specified. Other Water Entitlement Holders include Malpaso Water and the City of Sand City.

Before water from the SNG Entitlement can be assigned to Montage, the Board must approve amendments to the California American Water Water Distribution System (WDS) and to the SNG WDS. The Public Hearing for that action is scheduled for the January 24, 2019, meeting. The first reading of Ordinance No. 180 is taking place at this meeting to facilitate second reading and adoption at the meeting where the WDS amendments are considered.

CEQA: MPWMD has followed those guidelines adopted by the State of California and published in the California Administrative Code, Title 14, Section 15000, et seq. Specifically, the MPWMD has determined that a Statutory Exemption applies as defined in CEQA Guidelines Section 15268 (Ministerial Projects), based on previous environmental determinations by the Courts. The Monterey County Superior Court concluded that its Adjudication Decision included environmental determinations related to the Seaside Basin and adjudication of the rights therein. The MPWMD action is also consistent with the May 11, 2009, Court Order as confirmed by the Sixth District Court of Appeal, which limits CEQA review of water-related issues to areas other than the Seaside Basin.

RECOMMENDATION: The Board should approve the first reading of Ordinance No. 181, establishing a Water Entitlement for SNG EVARISTE, LLC, a Delaware Limited Liability Company.

EXHIBIT

9-A Draft Ordinance No. 181

U:\staff\Boardpacket\2018\20181217\PublicHrngs\09\Item-9.docx

U:\demand\Work\Board Packet\2018\December\StaffNote_Ord181_SNG.docx