Meeting Date:

June 22, 2006





David A. Berger,




General Manager

Line Item No.:


Prepared By:

Darby Fuerst/

Cost Estimate:



Dave Dettman




General Counsel Approval:  N/A

Committee Recommendation:  N/A

Committee Recommendation:  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 to minimize take of listed steelhead in the Carmel River, Consistent with SWRCB WR Order Nos. 95-10, 98-04, 2002-0002


SUMMARY: The Board will accept public comment and take action on the July through September 2006 Water Supply Strategy and Budget for the California American Water (Cal-Am) Water Distribution System (WDS).  The proposed budget, Exhibit 20-A, is based on “wet year” inflow conditions for the remainder of the Water Year 2006 (WY 2006).  Specifically, the budget utilizes monthly inflows that are exceeded about 12-25% percent of the time at San Clemente Dam. The proposed 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 20-A shows the anticipated production by Cal-Am for each production source.  Exhibit 20-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 not exceeding 14,789 AF, including 3,504 AF from the Seaside Basin and 11,285 AF from the Carmel River Basin.  The total from the Carmel River Basin is consistent with SWRCB Order Nos. 95-10 and 98-04. 


For the first eight months of Water Year 2006, Cal-Am’s production is well below the SWRCB-based overall production target by 863 acre-feet or 9.8 %.  In addition, with the proposed water production during this quarter, the total WY 2006 projected production from the Cal-Am Seaside wells is approximately 3,504 acre-feet, which is equivalent to Cal-Am’s annual allocation for adjudicated water rights from the Seaside Coastal Basin under Judge Randall’s Decision in Cal-Am vs. City of Seaside, etal. (Case No. M66343, Superior Court of the State of California in and for the County of Monterey).  This allotment is 87.6% of the annual maximum that Cal-Am has been allowed to produce from the coastal sub-areas of the basin (4,000 acre-feet) in previous quarterly budgets.


For the purpose of this budget it is assumed that no water from the Carmel River Basin will be injected into the Seaside Basin during the July through September 2006 period.

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 20-B, Quarterly Water Supply Strategy Report: July – September 2006.


BACKGROUND:  The Quarterly Water Supply Strategy and Budget pertains to production within the Cal-Am Water Distribution System for the three-month period of July, August and September 2006.  This strategy was developed cooperatively with staff from the District, Cal-Am, and the National Marine Fisheries Service (NMFS).[1]  Based on the fact that San Clemente and Los Padres Reservoirs are full, spilling and streamflow at the Don Juan gaging station is expected to remain above 20 cubic feet per second (cfs) until mid-July, it was agreed that Cal-Am could divert from its wells in Carmel Valley Aquifer Subunit 2 until July 15, or until streamflow declined below 20 cfs, whichever occurs sooner. For the remainder of July, August, and September 2006, Cal-Am would not divert any water from San Clemente Dam through the Carmel Valley Filter Plant, except in the case of emergency conditions.  This limitation is consistent with the 4d rules adopted by the NMFS to protect aquatic habitat and with the Conservation Agreement (CA) between NMFS and Cal-Am, which governs diversions during low-flow periods.[2]  For purposes of the CA, the low-flow periods are defined as times when streamflow in the Carmel River at the MPWMD gage at Don Juan Bridge in Garland Park is less than 20 cfs for five consecutive days.  Following mid-July, streamflow is expected to remain below the 20 cfs threshold for the remainder of WY 2006.  If actual inflows are more or less than projected for the budget period, the group will reconvene and adjust the diversion and release rates accordingly.  These adjustments will take into account flows needed for rearing juvenile steelhead.


The proposed budget allows Cal-Am to divert a maximum of 0.5 cfs/day (31 AF/month) from its sources upstream of and including Scarlett Well No. 8.  This operation takes into account limitations imposed by Cal-Am’s Interim Drawdown Project at San Clemente Dam and the 2001 Conservation Agreement with the NMFS. 


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.



20-A    Quarterly Water Supply Strategy and Budget: July-September 2006

20-B    Quarterly Water Supply Strategy and Budget Report



                [1] Normally, the California Department of Fish and Game participates in development of each quarterly water supply budget, but due to conflicting schedules they were unable to attend the meeting on June 6, 2006.


[2] Under the 4d rules adopted by the National Marine Fisheries Service on July 10, 2000, the Take Guidance Section, Item E. (page 42472 of the FR Vol. 65, No 132) prohibits removing water or altering streamflow when it significantly impairs spawning, migration, feeding or other essential behavioral patterns.