CITY COUNCIL: State Water Resources Control Board (SWRCB) Hearing on Cease and Desist Order (CDO)

Meeting Date: April 3, 2008
Prepared by: Rich Guillen

City Council
Agenda Item Summary

Name: Receive a report and provide policy direction on new information regarding the
City’s participation in the State Water Resources Control Board (SWRCB) hearing on the proposed cease and desist order (CDO) upon California-American (Cal-Am) Water’s diversions from the Carmel River.

Description: The City Council received a report at its March 4th meeting regarding the State Water Resources Control Board (SWRCB) Order 95-10 requiring CalAm to reduce pumping from the Carmel River by 75 %. Recognizing that an immediate 75 % reduction would significantly affect public health and safety, SWRCB imposed an interim 20 % reduction.

SWRCB has recently issued a draft Cease & Desist Order (CDO) against CalAm that will impose further reductions beyond the interim 20 % through the water year of 2014-2015.

Overall Cost:
City Funds: N/A
Grant Funds: N/A

Staff Recommendation: Consider any additional information and provide comment or
direction as the Council deems appropriate.

Important Considerations: The scheduled reduction of the water being pumped from the
Carmel River proposed by the SWRCB will have significant impacts to the public health and safety to people who reside in the Monterey Peninsula Water Management District.

Decision Record: The City Council approved a letter from the Monterey County Mayors’
Group opposing the CDO at its March 4, 2008 meeting.

Reviewed by City Attorney:


______________________________ _________________
Rich Guillen, City Administrator Date


CITY OF CARMEL-BY-THE-SEA
STAFF REPORT
TO: Mayor McCloud and Members of the City Council
THROUGH: Rich Guillen, City Administrator
FROM: Donald G. Freeman, City Attorney
DATE: April 3, 2008
SUBJECT: Receive report and provide policy direction on the proposed Cease and Desist Order upon California-American Water’s Diversions from the Carmel River.

PURPOSE
This item is has been scheduled to provide the City Council with any new information regarding the City’s participation in the State Water Resources Control Board (SWRCB) hearing on the proposed cease and desist order (CDO) upon California-American (Cal-Am) Water’s diversions from the Carmel River.

RECOMMENDATION
It is recommended that the City Council consider any additional information and provide comment or direction as it deems appropriate.

INTRODUCTION
On March 4, 2008, the City Council authorized the City Attorney to review materials for a hearing of the State Water Resources Control Board regarding a draft Cease and Desist Order (CDO) issued to Cal-Am Water. If implemented as currently written, the CDO would have significant negative impacts on Carmel-by-the-Sea.

BACKGROUND
On January 15, 2008, the State Water Resources Control Board issued a draft cease and desist order (CDO) to require Cal-Am to reduce its unauthorized diversions from the River over a seven-year schedule. An immediate 15 percent reduction would be required, along with a 50 percent reduction of diversions from the river (to 5,642 AFY) by 2014. In that event, Cal-Am would likely implement water rationing and a moratorium on new water connections. This would stop development of many pending projects within the City of Carmel-by-the-Sea, which would affect the City’s tax base and community health, safety, and welfare.

Cal-Am disagreed with the proposed corrective actions set forth in the CDO and requested a hearing before the SWRCB.

The SWRCB has scheduled a meeting to take public comments on the proposed CDO on April 1, 2008, and will conduct a formal hearing on the proposed CDO on June 19th and 20th.

COORDINATION
This item has been coordinated with the City Attorney.

FISCAL IMPACT
If the SWRCB cease and desist order is approved as drafted, the moratorium on new water connections would stop development of many pending projects within the City. This would cause unknown, but significant, fiscal impacts to the City

ATTACHMENTS
There are no attachments to this item.