CHRONOLOGY OF SIGNIFICANT WATER EVENTS FO R TH E M O N TEREY PEN I N SU LA

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1 CHRONOLOGY OF SIGNIFICANT WATER EVENTS FO R TH E M O N TEREY PEN I N SU LA 1876 First recorded water rights: Laureles Rancho Pacific Improvement Company builds Carmel River dam (1,900' below San Clemente Dam) Many properties in Carmel Valley sell, subordinate or extinguish riparian rights in favor of Pacific Improvement Company 1907 Monterey County Water Works (a Del Monte Properties subsidiary) succeeds Pacific Improvement Company San Clemente Dam built - 85' high concrete arch dam; capacity 1,425 AF. Capacity now 147 AF due to sediment. (No appropriation permit; water right based on pre-1914 theory -- replacement of 1881 structure) 1935 Vote to create Peninsula utility district fails 2,106 to 1, California Water and Telephone Co. acquires all rights from Monterey County Water Works and Del Monte Properties Cal. Water & Tel. applies for right to build Los Padres Dam (completed 1949) - 150' high earthen dam with an original capacity of 3,030 AF, (reduced to 2,179 AF as of 1994), as of 2001 sedimentation reduces this to 1,569 AF Vote. Voters create Monterey Peninsula Municipal Water District (MPMWD) by 2 to 1; support by Citizens for a Water District and cities. Agency to negotiate acquisition of private water companies on Peninsula PUC appraises Cal. Water & Tel. at request of Monterey Peninsula Municipal Water District (MPMWD). Decision issued (10/24/64) Vote. Voters refuse to issue $17.5 million bond to purchase two Peninsula private water companies (10,766 to 3,053) California Water & Tel purchased by American Water Works Company (AWWC) for $42 million. California-American Water Company (Cal-Am) created to take over operation of properties Vote. Voters dissolve MPMWD PUC Case Peninsula water supply is inadequate for Cal-Am service area. Demand exceeds production capacity by 1000 afa. Cal-Am directed to build pipeline (Laguna de la Canada; new wells and long term solution.) 1975 Water Service Moratorium. PUC moratorium on new Cal-Am service. (6/10/1975). JPA formed to develop and administer water rationing (Monterey Peninsula Water Management Agency) at request of CPUC. 1

2 drought. PUC water rationing 50 gal. per day per person. Reduces Cal-Am production to 8,500 AF/year (47% of pre-rationing) Voters approve Coastal Act. MPWMA calls for formation of Peninsula-wide water district with taxing powers to resolve the area s water problems SWRCB Chair (Carla Bard) letter states that future Carmel Valley water groundwater development will require determination of State Board jurisdictional issues due to possible underflow Mandatory rationing ends (1/23/1978) Vote. Voters create MPWMD (6/6/1978). First management district; Cities and Coastal Com. ask MPWMD to allocate water. Board agrees to assume demand management role MPWMD Ordinance #1 allocates water demand and supply by city USACE presents proposed Army Corps Dam at San Clemente site 154,000 af 1982 Cal-Am transfers SWRCB Permit 7130B to MPWMD (15,970 AF), and retains Permit 7130A (3030 AF) - License Severe erosion damage on Carmel River. Reimers v. Cal-Am; Drummond v. MPWMD); enacted; River front owners enact 10-year Carmel River Management Plan benefit assessment for erosion. (1992 sunset provision) MPWMD files Application (12/16/1982) CDFG v. Cal-Am alleges damage to Carmel River due to Los Padres ailt release. Stipulated Judgment requires annual low-flow MOA process MPWMD Ordinance No. 19 changes Cal-Am surface diversion practices (pre - 55%; %; PUC 29%; today 1%); Quarterly water supply budget and forecast process started SWRCB Application amended to delete well references. (1/13/1986) Carmel River Steelhead Association (CRSA) files complaint with SWRCB against Cal-Am: "unauthorized diversion from Carmel River underflow destroys public trust resources, including steelhead fishery." 1987 Carmel questions its allocation. Out of court settlement agrees to prepare an Allocation EIR. (Allocation EIR certified in 1990) 1987 Vote. Advisory Vote on 29,000 af New San Clemente Dam (cost approximated at $45 million) 2 to 1 in favor drought. Water rationing by MPWMD (ends 5/1/1991); Cal-Am production down 5,700 AF (32%) 2

3 1989 Residents Water Committee files SWRCB complaint against Cal-Am: "diversion of Carmel River underflow without an appropriative right" Congressman Panetta convenes Fed Agency Panel NSC Dam gets red light 1989 Cal-Am seeks PUC approval for proposed Canada Reservoir ( ) 25,000 af off-channel reservoir Paralta Well conceived by MPWMD; Cal-Am and District cooperate to acquire permits Water Service Moratorium. Allocation EIR certified (11/5/1990) based on overriding considerations. Mitigation program required. Assumed water available for use changes from 20,000 afa (pre-allocation EIR production) to 16,744 afa (production). Moratorium on new Cal-Am service ordered by MPWMD (1/1/1991); moratorium ends in Ventana Chapter of the Sierra Club files SWRCB complaint: "Cal-Am's diversions are unreasonable and unauthorized" California Department of Parks and Recreation files SWRCB complaint: "Cal- Am diverts underflow without any right" MPWMD further amends Application on March 30, 1992 (New Los Padres site) MPWMD joins Pebble Beach Co., Carmel Area Wastewater District & Pebble Beach Community Services District to issue $33,900,000 in COPs to finance the Reclamation Project SWRCB holds hearings on Cal-Am Complaints together with hearings on Application (New Los Padres Dam) and Permit 7130B. Hearing on complaints is closed; application hearing continued to Decisions on both issued in Paralta Well completed by Cal-Am. Allocation (due to Paralta Well and minor adjustments) increased from 16,744 afa to 17,619 (production). Later amendments bring this to 17, Vote. Desalination Project vote - 47% yes; 53% no 1994 SWRCB holds continued hearing on Application (New Los Padres Dam) and Permit 7130B USACE issues Section 404 Permit to MPWMD for NLP; Paralta Well comes on line SWRCB Decision No & Order Decision No. 1632: (SWRCB decision on NLP water rights): App approved; 7130B revoked (later restored) 3

4 42 cfs direct diversion 24,000 afa diversion to storage Table 13 Order No. WR (SWRCB decision on Cal-Am Complaints): Cal-Am's legal water right totals 3,376 afa Cal-Am does not have legal right to 10,730 afa Limits on Cal-Am river diversions: 1995: 14,106 afa 1996: 11,990 afa 1997: 11,285 afa 1996 (6) petitions to amend Decision No MPWMD, Cal-Am, Rancho San Carlos, Charity Crane, Ventana Ch Sierra Club, CSPA, and CRSA. (5) petitions to amend Order No. WR MPWMD, Cal-Am, Ventana Ch. Sierra Club, Cal Dept F&G, and David Keyston Vote (November). Vote on New Los Padres Dam 43% yes; 57% no Red Legged Frog listed as threatened by US F&W Service under ESA MPWMD Board states policy that WMD shall not independently undertake NLP, but that staff shall take necessary action to maintain and preserve SWRCB permit (Decision 1632) and USACE Corps permit Cal-Am completes voter survey; determines voters did not accept growth component of NLP; Cal-AM files applications with MPMWD and PUC ( ) for 24,000 af Carmel River Dam (NLP operated without water for growth). WMD role changes from project sponsor to regulator. WMD lead agency; PUC responsible agency Vote. Measure A, a voter initiative, proposes to prohibit transfer of permits or other authorizations for New Los Padres Dam without voter approval. 43% yes; 57% no Steelhead listed steelhead in the Carmel River watershed as threatened species by NMFS on August 18, Fed. Reg Legislation (AB 1182, Keeley) requires the PUC to prepare a long-term contingency plan (Plan B) describing the program or programs that Cal-Am would pursue if the dam does not go forward SW RCB settles cases challenging and (MPWMD & Cal-Am v. SWRCB; and Si erra Cl ub v. SWRCB/Cal -Am). Settlement allows the project to operate as planned; restores Permit 7130B; allows year-round diversions; and allows construction 4 years after EIR certification. Total water diverted by the project is 16,000 without further SWRCB order. SWRCB jurisdiction is set at RM17.2 (changed from RM15) Carmel River and tributaries are designated critical habitat for steelhead. 65 4

5 Fed. Reg NMFS published protective regulations prohibiting take of threatened steelhead in the Carmel River watershed by all persons, including federal, state and local agencies and private entities. 65 Fed. Reg N M FS di rects Cal-Am by Conservation Agreement to minimize potential take, cease surface diversions at San Clemente Dam and divert water from its most downstream wells to the maximum practicable extent Vote. Monterey City places advisory Measure B on ballot: Should the Mtry Peninsula Water Management District be dissolved? 66% yes; 33.9% no CPUC issues Plan B report. Plan B is identified as 9,400 afa desal plant at Moss Landing combined with a 1,300 afa ASR project Division of Safety of Dams tells Cal-Am to reduce San Clemente Reservoir spillway elevation to 515 feet (10 ft lower than prior level) due to flood safety Cal-Am breaches San Clemente Dam due to seismic concerns of Division of Safety of Dams MPWMD and PUC ( ) each dismiss Cal-Am applications for Carmel River Dam. PUC directs Cal-Am to file separate CPCN for CWP Legislation (SB 149, McPherson) proposed to modify elected board; changed to require EIR certification in 3 years; held in committee Cal-Am files action to adjudicate Seaside Groundwater Basin. (Cal-Am v. Cities of Seaside, Sand City, Del Rey Oaks, et al. (Case No. M66343); MPWMD and MCWRA intervene Cal-Am files application with CPUC to consolidate Felton & Monterey rates. (App. No ). CPUC denies in Cal-Am files application with CPUC for CWP CPCN. (App. No ) Legislation (SB 1529, McPherson) to dissolve MPWMD dies in Assembly Local Government Committee on 4-2 vote, one short of 5 Yes votes needed. Six peninsula mayors supported dissolution. AB 1300, Laird proposes to amend MPWMD law addressing development of a new water supply for the Monterey Peninsula; Sponsor later withdraws language affecting MPWMD Vote. MPWMD places Measure W on ballot: Shall the Monterey Peninsula Water Management District be directed to investigate the cost and process to publicly acquire the private water utility system presently owned and operated by the Monterey District of California American Water (Cal-Am), and be directed to recover up to $550,000 for costs of the investigation as a surcharge upon water bills of Cal-Am customers? 37.37% Yes; 62.63% No Cal-Am v. Seaside (Judge Randall) decision establishes Watermaster board imposing a physical solution for the Seaside Basin over-draft. Priority of rights to Basin production allocated among public and private entities. Perennial safe yield set at 3,000 afa; pumping to be reduced in 10% increments starting in 5

6 2009. Watermaster Board is Cal-Am (3 votes); Monterey County/MCRWA (2 votes); MPWMD (2 votes) Seaside (2 votes); Del Rey Oaks, Monterey and Sand City (1 vote each); and two property owner groups (1 vote, combined). Seaside and Sand City fund annual Watermaster administrative budget at an initial $100,000; Cal-Am, Seaside and two private entities fund initial monitoring and management budget at $200,000, plus a one-time budget of $1 million. Cal- Am, Seaside and other producers fund 2 separate funds for supplemental water to replenish the Basin based on proportionate share of production in excess of Safe Operating Yield. Decision states the Physical Solution and Watermaster not in conflict with District s statutory authority; District s has power to manage and augment Seaside groundwater. Court retains continuing jurisdiction to resolve potential conflict between the District and the Watermaster SWRCB approves MPWMD change petition granting water right for ASR Phase I (Water Project #1) SW RCB hearing on CDO re Cal-Am compliance with Order No. WR SWRCB Order imposes CDO on Cal-Am Cal-Am to reduce diversions from 11,285 afa to 10,429 afa. Diversion limit at no more than 3,376 afa on December 31, Connection moratorium MPWMD challenges CDO in MPWMD v. SWRCB (Santa Clara Case No.: CV ); Parties include MPWMD, Cal-Am, Quail Lodge, Inc., Baylaurel, L.L.C., and Carmel Valley Ranch (CVR HSGE, L.L.C.), SWRCB, Pebble Beach Company, and City of Seaside, City of Monterey, City of Carmel-by-the-Sea, City of Sand City, Sierra Club, and CRSA CPUC Issues FEIR on CWP Notice of Settlement for Regional Project by Cal-Am, MCWD, MCWRA, Surfrider Foundation, and Public Trust Advocates with CPUC. On 12/2/10 CPUC adopts Commissioner Bohn s revised Alternate Proposed Decision to authorize CPCN for Desalination Project 2011 CPUC Decision rejects all-party settlement between Cal-Am, DRA and MPWMD to reinstate the MPWMD user fee. Request for Reconsideration, Amended Application and Petition to Modify filed Monterey County D.A. files criminal charges (Gov. C. 1090) against Steve Collins (MCWRA board member) alleging improper payments and conflicts in Regional Project. FPPC also has pending investigation. Cal Am informs CPUC the CAW, MCWD and MCWRA are in mediation and Regional Desalination Project could be delayed, modified, or replaced with an alternate project. MCWRA GM Curtis Weeks resigns SWRCB approves MPWMD change petition granting water right for ASR Phase 2 (Water Project #2). 6

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8 THE EVOLUTION OF PLAN B Plan A 1981 USACE 154,000 af Dam & Reservoir Plan B 1986 New San Clemente Dam & Reservoir Plan C 1992 New Los Padres Dam & Reservoir Plan D 1997 Carmel River Dam Dam & Reservoir Plan E 2004 Coastal Water Project Moss Landing Desal & ASR Plan F 2010 Regional Desal Project & ASR 8

9 W H AT TH E VO TERS D I D 1935 Vote to create Peninsula utility district fails 2,106 to 1, Voters create Monterey Peninsula Municipal Water District (MPMWD) Voters refuse to issue $17.5 million bond to purchase two Peninsula private water companies (10,766 to 3,053) Voters dissolve Monterey Peninsula Municipal Water District (MPMWD) Voter refuse to approve Zone 11 Advisory Committee proposal for taxing power to fund study of possible water supply alternatives (5,093 to 10,436) 1977 Voter refuse to create a water management district (5,612.to 9,870) 1978 Voters create Monterey Peninsula Water Management District (14,010 to 11,026) 1987 Advisory Vote favors 29,000 af New San Clemente Dam & Reservoir (13,749 to 7,936) 1993 Voters Reject 3 MGD Seawater Desalination Plant in Sand City (14,658 to 12,847) 1995 Voters Reject New 24,000 af Los Padres Dam & Reservoir (NLP) (10,359 to 13,929) 1997 Voters Reject Limitation on Transfer of NLP Permits to Cal-Am. Protect Our Water Resources (POWR) Initiative would declare a water shortage, prevent water allocations until illegal diversions end, and prohibited transfer of SWRCB and USACE permits for NLP held by the District. (12,027 to 16,971) 2002 Advisory Vote (City of Monterey only) Favors Dissolution of MPWMD (20,671 to 10,621) 2005 Reject Surcharge to Explore Cost & Process for Public Acquisition of Cal Am (11,514 to 19,296) 9

10 WHAT THE LEGI SLATU RE D ID 1959 Establishes Monterey Peninsula Municipal Water District (MPMWD) 1966 Dissolves Monterey Peninsula Municipal Water District (MPMWD) 1978 Establishes Monterey Peninsula Water Management District (MPWMD) (AB 1329) 1981 Allows MPWMD to Conduct All-Mail Ballot Elections 1982 Allows MPWMD to Generate Hydro-Electric Power 1983 Allows MPWMD to Protect Carmel River by Limiting Access 1989 Allows MPWMD to hold an election to authorize emergency improvements 1996 SB 1951 (Mello) proposes transfer of powers, duties & assets to unspecified successor agency governed by 8-member board of 6 city mayors and 2 supervisors. Amended bill passes both houses by is vetoed by Governor Pete Wilson on September Requires CPUC to Prepare Plan B if Dam does not proceed (AB 1182) 2003 Considers Legislation to Modify Process by which MPWMD elects Directors (AB 149 held in Committee; not enacted) 2004 Considers dissolution of MPWMD (SB McPherson) - held in Committee not enacted 2004 Considers revocation of MPWMD water supply planning authority. AB 1300 Laird) held in Committee not enacted 2005 Considers limit on funding unless 750 afa available for affordable housing (AB 1421 Laird) bill gutted and used for another purpose 10