ITEM:††††††††††††††††††††††† CONSENT CALENDAR




Meeting Date:†††††††††† May 19, 2003†††††††††††††††††††††††† Budgeted: NA

Program/Line Item No.: NA

Staff Contact: ††††††††††† Darby Fuerst††††††††††††††††††††††††† Cost Estimate: NA††††


General Counsel Approval: N/A

Committee Recommendation: NA

CEQA Compliance:†† N/A



SUMMARY: The District Board has requested additional analysis regarding several issues raised in the draft Annual District-Wide Water Production Summaries that were presented in February 2003. This report addresses the issue of the 14% unaccounted-for-water value that was calculated for the California-American Water Company (Cal-Am) system in Water Year 2002. Subsequent reports will address the other issues that were raised and are outlined below.


RECOMMENDATION: No action is required.


BACKGROUND:At the February 27, 2003 Board meeting, staff presented draft summaries of distribution system water production and total water production within the District for WY 2002. The first summary, District-Wide Annual Water Distribution System Production Summary, focused on the amount of water produced by each of the 44 registered water distribution systems within the District in WY 2002.In addition, the Water Distribution System Production Summary included the amount of water delivered, the percentage of unaccounted-for-water, and the number of active connections served for a number of systems in WY 2002.The second summary, District-Wide Annual Water Production Summary, focused on the water production from all registered production sources, including water distribution systems, within the District in WY 2002.These production sources included both surface water diversions and ground water withdrawals.In addition, the Water Production Summary provided a breakdown of production by producer, i.e., Cal-Am vs. non Cal-Am, by source area, i.e., within the Monterey Peninsula Water Resources System (MPWRS) vs. District, and by reporting method, i.e., land use vs. water meter, and a comparison with the production limits specified by the Districtís Water Allocation Program, i.e., 17,641 acre-feet per year (afy) for Cal-Am and 3,046 afy for non Cal-Am producers.


At the February 2003 meeting, the Board received the summary reports and requested that additional analysis be provided regarding a number of topics.Specifically, these topics included explanations for:




(1)               the 14% unaccounted-for-water value shown for Cal-Amís main system, as well as the high unaccounted-for-water percentages shown for Cal-Amís other systems, i.e., Bishop, Hidden Hills, and Ryan Ranch units,


(2)               the 7% increase in District-wide production in WY 2002 compared to the production reported in Reporting Year (RY) 2001, including the 7% increase in ground water withdrawals and the 36% increase in surface water diversions in WY 2002 relative to RY 2001 withdrawals and diversions,


(3)               the 10% increase in non Cal-Am production from Carmel Valley in WY 2002 compared to production reported in RY 2001,


(4)               the statement that non Cal-Am production from the Monterey Peninsula Water Resources System (MPWRS) was 6% greater than the non Cal-Am production limit specified in Ordinance No. 87, i.e., 3,046 afy, including the consequence of exceeding this limit.


The Board also requested additional information regarding the 8-year average for non Cal-Am production from the MPWRS and implications of any observed increase.Lastly, the Board requested a year-to-year comparison of the Water Production Summaries for WY 2002 and RY 2001 and that the Comparison of Reported Production to Production Limits Within the Monterey Peninsula Water Resources System Ė Water Year 2002 chart be amended to include production values for RY 2001.This analysis centers on the unaccounted-for-water in Cal-Amís main system.The other topics will be addressed in future staff notes.


Unaccounted-for-water††††††††† Unaccounted-for-water (UAW) is calculated as the difference between the quantity of water recorded at a systemís production meters and the quantity of water that is recorded at the systemís customersí meters or reported as non revenue use.Non revenue use includes both metered quantities and unmetered quantities of water.In the Cal-Am system, non revenue metered use includes water supplied for construction purposes and riparian irrigation along the Carmel River. Non revenue unmetered use includes main repair leaks, service repair leaks, treatment plant leaks, storage tank leaks, fire department use for fires and training, and water provided to the District for injection into the Seaside Groundwater Basin. All water that is produced but cannot be accounted for as metered sales, non revenue metered use, or non revenue unmetered use is considered unaccounted-for-water and is generally attributed to unknown leaks, stolen water, or customer meters that are Ďslowí or under register water use.


As originally reported in February 2003, Cal-Am produced 14,611 acre-feet (af) and delivered 12,634 af in WY 2002.The difference between this production and delivery was 1,977 af, which equated to 14% unaccounted-for-water in WY 2002 (Exhibit 9-A).In response to concerns raised regarding the magnitude of this loss, District staff has worked closely with Cal-Am staff to verify this value.In reviewing Cal-Amís reports and the Districtís worksheets, a number of omissions regarding ďdeliveredĒ water were found.Specifically, Cal-Am did not originally report their non revenue metered and unmetered use.In addition, District staff did not include the metered sales that were reported for the former Water West and Rancho Fiesta Mutual customers in the deliveries for the Cal-Am system. Also, District staff did not include water that Cal-Am produced and used for backwash purposes at its water treatment plants and water that Cal-Am produced and provided to the District for injection into the Seaside Groundwater basin in WY 2002.These corrections are shown in Exhibit 9-B. As shown, with all of the corrections for non revenue use included, Cal-Am delivered 13,413 af in WY 2002.This means that 1,198 af or 8% of Cal-Amís production in WY 2002 was unaccounted-for. A revised Water Distribution System Report for WY 2002 is included as Exhibit 9-C.