1. Monterey Peninsula Water Management District 1 Ordinance No. 123 (Second Reading) August 15, 2005 U:\rick\powerpoint\staffnotes\2005\081505\ord123

2. Monterey Peninsula Water Management District 2 Ordinance No. 123 Ordinance No. 123 would increase the user fee collected on the water bills of Cal-Am customers by 1.2% (from 7.125% to 8.325%) Increase was included in the 2005-06 Budget adopted by the Board of Directors on June 20, 2005. Increase will generate approximately $300,000 in additional revenue per year to provide funding for annual debt service for completion of Phase I ASR Project and related water supply expenses

3. Monterey Peninsula Water Management District 3 ASR Project Expansion Expansion of the ASR Project is needed to: Address & mitigate potential adverse effects that may result from overproduction from the Seaside Groundwater Basin and to promote the adequacy and integrity of the waters in the basin Expansion is also based upon the lack of legal Cal-Am water supplies resulting from SWRCB Order WR 95-10

4. Monterey Peninsula Water Management District 4 Phase I ASR Completion Costs FY 2005-06 [1]$ 345,000 FY 2006-07$2,460,000 FY 2007-08$ 200,000 Debt Issuance Costs$ 85,000 Debt Issuance Required$3,090,000 [1] Costs related to current facilities plus expansion costs including labor

5. Monterey Peninsula Water Management District 5 Debt Issuance Total Debt Issuance $3,090,000 Assumed Interest Rate 4.5% Term of Borrowing 15 Years Annual Debt Service $287,700

6. Monterey Peninsula Water Management District 6 CEQA Ordinance No. 123 is exempt from California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15273 (a) (1) – Rates, Tolls, Fares, Charges The water use fee is to meet District operating expenses including employee wage rates and fringe benefits, consulting services, legal services and direct costs including permit processing, enforcement and associated litigation expense The Notice of Exemption was approved at the July 18, 2005 Board meeting

7. Monterey Peninsula Water Management District 7 Recommendation 1)Approve second reading and adopt Ordinance No. 123 2)Direct staff to file the previously approved notice of exemption with the County Clerk of Monterey County