Meeting Date:†††††††††† December 15, 2003††††††††††††††††††††††††††††††††††††††† Budgeted:N/A

Program/Line Item No.:N/A

Staff Contact:             Darby Fuerst††††††††††††††††††††††††††††††††††††††††††††††††† Cost Estimate:N/A


General Counsel Approval:N/A

Committee Recommendation: N/A

CEQA Compliance: Notice of Exemption, CEQA, Article 19, Section 15301 (Class 1)

ESA Compliance: Consistent with the September 2001 Conservation Agreement between the National Marine Fisheries Service and California-American Water Company to minimize take of listed steelhead in the Carmel River

SWRCB Compliance: Consistent with SWRCB WR Order Nos. 95-10, 98-04, and 2002-0002


SUMMARY: The Board will accept public comment and take action on the January through March 2004 Water Supply Strategy and Budget for the California-American Water Company (Cal-Am) Water Distribution System (WDS).The proposed budget, Exhibit 12-A, is purposely conservative and assumes a continuation of below-normal inflow conditions.Specifically, the budget utilizes monthly inflows that are expected to be equaled or exceeded 62.5% of the time at San Clemente Dam.The proposed strategy and budget is designed to maximize the long-term production potential, protect the environmental quality of the Carmel River and Seaside Ground Water Basins, and allow injection of surplus water from the Carmel River Basin into the coastal subareas of the Seaside Basin.


Exhibit 12-A shows the anticipated production by Cal-Am for each production source.Exhibit 12-A also shows actual production values for the water year to date.Please note that the anticipated production values shown assume an annual Cal-Am production of 15,285 acre-feet (AF), with no more than 11,285 AF from the Carmel River Basin and no more than 4,000 AF from the Seaside Basin.The production from the Carmel River Basin is consistent with SWRCB Order Nos. 95-10, 98-04 and 2002-0002.


For the first two months of Water Year 2004 (October-November 2003), Cal-Amís production was less than the SWRCB-based system production target by 59 AF or 2.4%.Since April 2000, Cal-Am conservation rates have reduced community water use and helped the community to comply with the annual SWRCB production limit.


RECOMMENDATION: The Board should receive public input, close the Public Hearing, and discuss the proposed water supply budget.District staff recommends adoption of the proposed budget.The budget is described in greater detail in Exhibit 12-B, Quarterly Water Supply Strategy Report: January - March 2004.

BACKGROUND:The Quarterly Water Supply Strategy and Budget pertains to production within the Cal-Am Water Distribution System for the three-month period of January, February, and March 2004.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 (NOAA Fisheries).Based on the relatively low rainfall and runoff amounts in the upper watershed for the year to date (39% and 46% of average, respectively), it was decided to assume that below-normal inflow conditions would continue through the upcoming January-March 2004 period.


Assuming below-normal inflow, Cal-Am will continue to limit production from its sources in the Upper Carmel Valley to no more than 0.5 cubic feet per second (cfs) from the Russell wells during the January-March 2004 period.In addition, Cal-Am will continue to pump from its sources in the coastal subareas of the Seaside Ground Water Basin through January.During January, Cal-Am will shift its production in the Seaside Basin from wells that draw water from the deeper Santa Margarita aquifer to wells that draw water from the shallower Paso Robles aquifer. During this period, it was assumed that Cal-Am will not divert surface water from San Clemente Reservoir to the Carmel Valley Filter Plant because of water quality and operational constraints related to the San Clemente Reservoir Drawdown Project that has been directed by the Division of Safety of Dams. Accordingly, the remainder of the water needed to serve Cal-Am customers and provide water to the Districtís Injection/Recovery Project in the Seaside Basin during this quarter will be produced from the Lower Carmel Valley.


It is assumed that there will be sufficient flow in the Carmel River in February and March to allow diversions to be made for the Seaside Injection/Recovery Project.The projected production values are based on the assumption that daily inflows in the upper watershed will average 75 cfs in January, 105 cfs in February and 116 cfs in March.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 and Cal-Amís operational needs.


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 will be filed with the Monterey County Clerk's office, pending Board Action on this item.