WATER DEMAND COMMITTEE MEETING--OCTOBER 10, 2003--EXHIBIT 3A--DRAFT ORDINANCE NO 111

1. The Water Management District is charged under the Monterey Peninsula Water Management District Law with the integrated management of the ground and surface water resources in the Monterey Peninsula area.

2. The Water Management District is authorized to establish a written permit system for regulation of water distribution systems.

3. The board of directors finds that regulating all water distribution systems, including water distribution systems reliant upon desalination processes, is necessary to protect District water resources and to assure that sufficient water will be available for present and future beneficial use by all District inhabitants and lands.

4. The Water Management District has enacted, by ordinance, a set of Rules and Regulations to implement its statutory authority. District Rule 11 defines the term “Water Distribution System.”

5. The Water Management District has enacted a comprehensive scheme to review and regulate the creation and expansion of water distribution systems. That scheme was first enacted on February 11, 1980, by Ordinance No. 1, and has since been amended from time to time.

6. Several issues of concern have arisen respecting water distribution systems that rely on desalination processes. Concerns specific to each system vary by reasons of each system’s unique setting, its planned scope, and the technological processes it proposes to use.

7. The Water Management District is concerned that each proposed water distribution system that relies on desalination processes may affect or impede development of alternate desalination opportunities. The cumulative impact of multiple desalination projects has not been considered or addressed in a comprehensive manner.

8. The Water Management District is concerned with the potential cumulative impact upon water resources that may be caused by a multiple desalination systems. Regional impacts caused by water distribution systems that rely on desalination may include, but are not limited to, (i) impacts that different methods of salt water collection may have on ground and surface waters, (ii) impacts that different methods of brine discharge may have on ground and surface waters, (iii) competing electrical requirements and electrical grid limitations, (iv) potable water storage within and without the water distribution system, (v) potable water system inter-tie and back-up service, (vi) cross-contamination of water supplies and water systems, (vii) water system failure and the burden that may be placed upon other water distribution systems that may arise from such failure, (viii) the adequacy of the system to meet fire suppression requirements, (ix) duplication of potable water systems, and (x) rate impacts to existing water systems.

9. The State Water Resources Control Board (SWRCB) issued its Order No. WR 95-10 in 1995. This order, among other things, ruled that California-American Water Company (Cal-Am) did not have a legal right to take approximately sixty-nine (69) percent of the water currently supplied to Cal-Am users. The SWRCB set specific goals to reduce water diversions from the Carmel River Basin that, among other things, required Cal-Am to reduce its historical diversion from the Carmel River Basin to no more than 11,285 acre-feet per annum.

10. Since the issuance of SWRCB Order No. WR 95-10, an increasing number of proposals have been made to create water distribution systems that rely on desalination processes. Proposals range from single owner, single use systems to municipal owned systems.

11. This ordinance is adopted to clarify the District’s regulation of water distribution systems, including systems that rely on desalination processes for their source of supply. This ordinance defines the terms “saline water” and “non-saline water,” and also clarifies that the terms “water distribution system”, “water gathering facility”, and “Source of Supply” as used in the District Rules and Regulations specifically applies to water systems where a desalination process is used to convert ocean, brine or saline water to non-saline water.

12. This ordinance is adopted to clarify and enhance the District’s ability to protect water quality and quantity, to prevent diminution of or harm to waters within the District, to protect environmental values, is consistent with the District’s authority to reasonably regulate water supplies within District boundaries, and is consistent with the District’s authority to reasonably regulate all water distributions systems within the District.

13. This ordinance further clarifies the regulation of desalination projects by the Water Management District as described in MPWMD Ordinance No. 105, adopted on December 16, 2002.

14. This ordinance shall amend Rules 11 of the Rules and Regulations of the Water Management District.

NOW THEREFORE be it ordained as follows:

ORDINANCE

Section One: Short Title

This ordinance shall be known as the Desalination Definitions Ordinance of the Monterey Peninsula Water Management District.

Section Two: Purpose

This ordinance shall revise the permanent Rules and Regulations of the Water Management District to clarify definitions that affect water distribution systems that rely on desalination processes.

Section Three: Amendment of Rule 11 (Definitions)

District Rule 11 shall be amended by deleting the following provisions shown in strikeout text (~~strikeout~~), and by adding the following provisions set forth in italicized and bold face type (bold face).

NON-SALINE WATER - “Non-Saline Water” means water that has less than 1,000 parts of chlorides to 1,000,000 parts of water, both quantities measured by weight.

SALINE WATER - “Saline Water” means water that has 1,000 parts or more of chlorides to 1,000,000 parts of water, both quantities measured by weight.

SOURCE OF SUPPLY - “Source of Supply” means the groundwater, surface water, reclaimed water sources, or any other water resource where a person, owner or operator gains access by a water-gathering facility. “Source of Supply” shall include waters derived from any process that converts ocean, brine or other saline waters to non-saline water.

WATER DISTRIBUTION SYSTEM - “Water Distribution System” means all works within the District used for the collection, storage, transmission or distribution of water from the source of supply to the connection of a system providing water service to any connection, including all water-gathering facilities and water-measuring devices. In systems where a desalination process is used to convert ocean, brine or other saline waters to non-saline water, the water distribution system shall include all product water intake and brine or saline water disposal processes integral to the salt removal system. In systems where there is a water meter at the point of connection, the term “Water Distribution System” shall not refer to the user’s piping; in systems where there is no water meter at the point of connection, the term “Water Distribution System” shall refer to the user’s piping.

WATER-GATHERING FACILITY ‑ “Water-Gathering Facility” means any device or method, mechanical or otherwise, for the production of water from dams, groundwater, surface water, water courses, reclaimed water sources or any other source of supply within the Monterey Peninsula Water Management District, or a zone thereof, including any device or method that converts ocean, brine or other saline waters to non-saline water. Water-gathering facilities shall include any water-production facility as defined in the Monterey Peninsula Water Management District Law. This definition shall not apply to on-site cisterns that serve existing single-connection, residential situations where rainwater is captured for on-site landscape irrigation use.

Section Four: Publication and Application

The provisions of this ordinance shall cause the republication and amendment of the permanent Rules and Regulations of the Monterey Peninsula Water Management District.

Section titles and captions are provided for convenience and shall not be construed to limit the application of the text.

Section Five: Effective Date

This ordinance shall be given effect at 12:01 a.m. on the 30^th day following the date of its adoption on second reading.

Section Six: Severability

If any subdivision, paragraph, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity shall not affect the validity or enforcement of the remaining portions of this ordinance, or of any other provisions of the Monterey Peninsula Water Management District Rules and Regulations. It is the District's express intent that each remaining portion would have been adopted irrespective of the fact that one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.

On motion of Director , and second by Director ,

the foregoing ordinance is adopted upon this ____________ day of ____________ 2003, by the following vote:

AYES:

NAYS:

ABSENT:

I, Fran Farina, Secretary to the Board of Directors of the Monterey Peninsula Water Management District, hereby certify the foregoing is a full, true and correct copy of an ordinance duly adopted on the day of , 2003.

Witness my hand and seal of the Board of Directors this ________ day of ________ , 2003.

___________________________________________________

Fran Farina, Secretary to the Board

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