EXHIBIT 9-B

Monterey Peninsula Water Management District

                       Quarterly Water Supply Strategy Report: October-December 2004

                                                              September 20, 2004

 

1.         Management Objectives

 

The District desires to maximize the long-term production potential, protect the environmental quality of the Seaside and Carmel Valley basins, and meet the regulations in the Section 4(d) Rule adopted by the National Marine Fisheries Service (NOAA Fisheries), which prohibits, “removing water or otherwise altering streamflow when it significantly impairs spawning, migration, feeding, or other essential behavioral patterns [of steelhead].”  To accomplish these goals, a water supply strategy and budget for production within the California American Water (Cal-Am) water distribution system is reviewed quarterly to determine the optimal strategy for operations, given the current hydrologic and system conditions. 

 

2.         Quarterly Water Supply Strategy: October - December 2004

 

On September 7, 2004, staff from the District, Cal-Am, and NOAA Fisheries met to discuss the proposed water supply strategy for the October-December 2004 period.  As noted previously, representatives from the District, Cal-Am, CDFG and NOAA Fisheries met on May 3, 2004, to negotiate the 2004 Memorandum of Agreement (2004 MOA) that governs the releases and diversions from Los Padres and San Clemente Reservoirs during the May-December 2004 period.  Accordingly, the diversion and release rates specified for the October-December 2004 Water Supply Strategy and Budget are consistent with the terms and assumed inflow conditions in the 2004 MOA.  Actual inflows may be significantly more or less than projected. If so, the group will reconvene and adjust the release rates accordingly.

 

Based on the runoff that has occurred since the beginning of WY 2004, the group agreed to set the projected unimpaired monthly flows at San Clemente Dam for October, November and December equal to 66% of the median historical (1958-2002) levels.   Subsequently, staff reviewed the likely inflow to date through September 2004, and decided that slightly lower inflow levels are justified.  Accordingly, Table 1 shows a monthly breakdown of the diversion and release schedule based on the assumption that unimpaired inflows at San Clemente Dam will equal 101 Acre-Feet (AF) in October, 414 AF in November and 1,325 AF in December. Table 1 shows expected inflows, outflows, and storage volumes at Los Padres and San Clemente Reservoirs for the October-December 2004 period.  For this analysis, it was assumed that Cal-Am would not directly divert water from San Clemente Reservoir to the Carmel Valley Filter Plant, consistent with the 4d rules adopted by the NOAA Fisheries to protect steelhead, State Water Resources Control Board Water Order WRO 2002-0002 and the Conservation Agreement between NOAA Fisheries and Cal-Am, which governs diversions during the low-flow period.[1]  

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[1] The low-flow period is defined as times when streamflow in the Carmel River at the MPWMD gage at Don Juan Bridge is less than 20 cfs for five consecutive days, which occurred on May 30, 2004.  Based on projected inflows, streamflow is expected to be less than the 20 cfs threshold in October and November. In December, inflows may increase above the threshold, but the timing of this event and the continuance of the 2004 San Clemente Interim Drawdown Project into December may preclude any significant change in operations.