ITEM:		PUBLIC HEARING
10.	Consider Adoption of Proposed Operations Plans for Rule 19.8 Acquisition of Monterey Water System
Meeting Date:			October 19, 2020	Budgeted:
From:			David J. Stoldt,	Program/
			General Manager	Line Item No.:
Prepared By:			David J. Stoldt	Cost Estimate:
General Counsel Approval: N/A
Committee Recommendation: None
CEQA Compliance: Under Section 15262 of CEQA, Feasibility and Planning Studies, a project involving only feasibility or planning studies for possible future actions which the agency, board or commission has not approved, adopted, or funded does not require the preparation of an EIR or negative declaration.

SUMMARY: Similar to Agenda Item 9, in order to prepare the Board to consider in the future a Resolution of Public Necessity for the potential acquisition of California American Water (Cal-Am) Company’s Monterey Water System, the Monterey County Local Agency Formation Commission (LAFCO) must allow the District to activate certain latent powers authorized by its legislation, as well as consider annexation of approximately 56 parcels to the District. LAFCO will require, in the District’s application, a “Plan for Providing Services” which is a description of the services to be provided, financing, capacity of existing systems, and other related information, using the LAFCO “Plan for Providing Services” attachment shown in Exhibit 10-C as a basis for the submittal.

It is also well understood that, should the District Board elect to acquire the Cal-Am Monterey water system, it will need to demonstrate to the Court an understanding of the operations of the system and have a plan in place to fully staff all functions operational, regulatory, engineering, and other, and to continue the uninterrupted provision of safe, clean, reliable water service. An adopted operations plan or plans is also an important demonstration of that requirement.

As such, the District worked with industry experts to develop an Operations Plan (Exhibit 10-A) based on integration of the existing Cal-Am staff and methods, as well as a Contract Management Plan (Exhibit 10-B) which assumes a third-party contract operator is required. Both plans indicate a clear roadmap for the District to successfully comprehend and operate the Cal-Am system.

Adoption of the proposed operations plans does not commit the District Board to a hearing on a Resolution of Necessity or a condemnation proceeding.

RECOMMENDATION: Staff’s recommendation is that the Board adopt both plans and include them in the LAFCO application.

EXHIBITS

10-A MPWMD Monterey Peninsula Water System Operations Plan (Integrated Model)

10-B Contract Management Plan

10-C LAFCO’s “Plan for Providing Services” Requirements

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