ITEM:		PUBLIC HEARING
6.	CONSIDER FIRST READING OF ORDINANCE NO. 192 TO DEFINE MONTAGE HEALTH’S MAIN CAMPUS, CARMEL HILL PROFESSIONAL CENTER, AND RYAN RANCH CAMPUS AS A SITE FOR PURPOSES OF THE “HOSPITAL WATER USE LIMIT”
Meeting Date:			August 15, 2022	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Gabriela Bravo Stephanie Locke	Cost Estimate:	N/A
General Counsel Review: Yes
Committee Recommendation: The Water Demand Committee voted unanimously to recommend approval at its July 7, 2022, meeting.
CEQA Compliance: An Initial Study is being circulated and a Negative Declaration will be considered prior to adoption.

SUMMARY: Draft Ordinance No. 192 (Exhibit 6-A) responds to direction from the Board to prepare an ordinance to amend Rule 11, Definitions, to add a definition for “Community Hospital Site.” This action will allow Montage Health (“Montage”) to spread its under-utilized Water Use Capacity between its Monterey Holman Highway properties (aka “Main CHOMP Campus”) and its Ryan Ranch campus. Similar combined Sites were adopted for the Department of Defense in Ordinance No. 187 in July 2021, to primary and secondary public school district Sites with the adoption of Ordinance No. 162 in August 2014, and by adoption of Ordinance No. 176 in February 2017 which added definitions for “Accredited Institution of Higher Education Site” and “Jurisdiction Site.”

Ordinance No. 87, adopted in 1997, established an allocation of water specifically for Montage build-out at the Main Campus location. The Ordinance created a special community reserve allocation of 18.28 acre-feet ("AF") of water that was created exclusively for the benefit of Montage. This allocation was debited from the amount of water conserved to date at that time under the District's 1989 Water Conservation Plan.

Two later actions were taken by the District: (i) At the May 29, 2003 District Board meeting, Ordinance No. 87 was unanimously affirmed to remain in place, and (ii) at the July 21, 2003 meeting the Board approved Special Circumstances pursuant to MPWMD Rule 24-G and established an overall “water consumption cap” of 119.28 AF at the CHOMP Main Campus. Montage is required to annually provide water records to the District to ensure that usage remains below the “water consumption cap.” If usage exceeds the cap, Montage will be required to take immediate measures to reduce water use to comply. This requirement is permanent.

District staff has examined the most recent eight years and five months of actual consumption records for the Montage hospital parcel, and average use has been 82.606 AF per year. This means that Montage has “unused” Capacity under its “water consumption cap” equal to 36.674 AF. Bringing both campuses under the existing cap would add the Ryan Ranch usage to the historical Montage usage. The Ryan Ranch Campus usage is estimated to be approximately 13.5 AF based on permits or 14.5 AF based on limited recent billing data. That would still leave at least 22.2 AF available to Montage across their whole newly defined “Community Hospital Site.”

Montage has a present need to access some of the remaining Capacity from the “water consumption cap” to construct a building at the Ryan Ranch Campus. The new building will be used to relocate some of the services, such as the Cancer Center, from the Main Campus. By combining the campuses to create a “Site,” the remaining Capacity will be available to meet the community’s health care needs at both locations. The addition of a definition for “Community Hospital Site” and the amendment of the definition of “Parcel” and “Site” supports critical local hospital/health services and does not result in an increase in Water Use Capacity.

The proposed definition is:

COMMUNITY HOSPITAL SITE - “Community Hospital Site” shall mean all facilities and properties owned by Montage Health (related subsidiaries or entities) that are used for hospital and health care and the associated landscaping located on the following Parcels: Assessor’s Parcel Numbers 008-132-011, 008-132-006 (23625 Holman Highway, Monterey; APN 008-131-015 (23845 Holman Highway, Monterey); and APNs 259-221-003 (a Parcel with a building consisting of medical condominiums and common area), 259-221-001, 259-221-002, 259-221-004, 259-221-005, 259-031-055, and 259-031-056 located in the Ryan Ranch Business Park in Monterey.

An Initial Study has been prepared and will be filed and circulated to interested parties prior to consideration of second reading and adoption. A California Environmental Quality Act (“CEQA”) finding will be considered by the Board at second reading.

The Water Demand Committee supports and recommends the Board approve the proposed process to allow utilization of the existing “hospital water use limit” at the Ryan Ranch Campus owned by CHOMP.

RECOMMENDATION: Following a public hearing, the Board should approve the first reading of Ordinance No. 192.

EXHIBIT

6-A Draft Ordinance No. 192

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