ITEM:            VI                    PUBLIC HEARING

E.              CONSIDER ADOPTION OF APRIL THROUGH JUNE 2001 WATER SUPPLY STRATEGY AND BUDGET

SUMMARY:  The Board will accept public comment and take action on the Quarterly Water Supply Strategy and Budget for the California-American Water Company (Cal-Am) Water Distribution System.  The proposed budget, Exhibit 1, is based on "near normal" inflow  conditions.  The budget reflects inflow conditions thus far in Water Year 2001, which are judged to be slightly higher than the median flows that would be expected at San Clemente Dam. The proposed Water Supply Strategy and Budget is designed to maximize the long-term production potential and protect the environmental quality of the Seaside and Carmel Valley basins.

Exhibit 1 shows the anticipated Cal-Am production by source.  Exhibit 1 also shows actual production values for the water year to date.  Please note that the anticipated production values for the April through June 2001 period have been set to meet the goals established by the State Water Resources Control Board (SWRCB) in Orders No. WR 95-10 and 98-04. Accordingly, the anticipated annual Cal-Am production values in Exhibit 1 total 15,285 AF, including 4,000 AF from the Seaside Basin and 11,285 AF from the Carmel River Basin.

RECOMMENDATION:  The Board should receive public input, close the Public Hearing, and discuss the proposed water supply budget.  Staff recommends adoption of the proposed budget.  The budget is  described in greater detail in Exhibit 2, Quarterly Water Supply Strategy Report: April - June 2001.

BACKGROUND:  The Quarterly Water Supply Strategy and Budget pertains to production within the Cal-Am Water Distribution System for the three-month period of April, May and June 2001.  This strategy was developed cooperatively with staff from the District, Cal-Am, and the California Department of Fish and Game (CDFG) and the National Marine Fisheries Service (NMFS).  With continued high flows, the proposed budget allows Cal-Am to divert up to 12 cfs in April, via direct diversion from San Clemente Dam to the Carmel Valley Filter Plant, consistent with the anticipated completion of Cal-Am's Clearwell Project.  It was also agreed that Cal-Am would  divert no more than 5 cfs in May and 3 cfs in June.  During April and May 2001, the proposed budget would allow Cal-Am to operate Scarlett No. 8, and Laureles Wells Nos. 5 and 6, in lieu of diverting water from San Clemente Dam.   The operation of Cal-Am Wells in the upper Carmel Valley or direct diversion of 12 cfs is based on the assumption that inflows equal or exceed 140 cfs in April, 50 cfs in May, and 25 cfs in June.  If actual inflows are more or less than projected, the group will reconvene and adjust the diversion and release rates accordingly.  These adjustments will take into account flows needed for steelhead migration, spawning and egg incubation, smolt emigration, juvenile growth and maintenance and Cal-Am's goal of diverting a maximum of 16 cfs at San Clemente Dam for treatment at the Carmel Valley Filter Plant.

Rule 101, Section B of the District Rules and Regulations requires that a Public Hearing be held at the time of determination of the District water supply management strategy.  Notice of this Public Hearing has been published in The Herald.  Adoption of the quarterly water supply strategy and budget is categorically exempt from the California Environmental Quality Act (CEQA) requirements as per Article 19, Section 15301 (Class 1).  A notice of Exemption has been filed with the Monterey County Clerk's office.  

\quarbudg\2001\aprjun\vie03192001_dhd.wpd