Meeting Date:

July 16, 2007





David A. Berger,




General Manager

Line Item No.:


Prepared By:

Larry Hampson

Cost Estimate:



General Counsel Review:  N/A

Committee Recommendation:  N/A

CEQA Compliance:  Exempt under CEQA Section 15262


SUMMARY:  The State is encouraging the development and implementation of Integrated Regional Water Management (IRWM) Plans and projects through grant programs authorized by Proposition 50 (Prop 50), Proposition 84 (Prop 84), and Proposition 1E (Prop 1E), which are bond acts passed by California voters in 2002 and 2006.  Prop 84 and 1E, which were passed in 2006, will provide more than $2 billion Statewide through a performance-based grant program (i.e., applicants qualify for funds by meeting standards set by the State) and through competitive grants (applications for funds are judged against each other and State standards).


Funding regions were established Statewide and, based on population, a minimum of $52 million is available from Prop 84 to the Central Coast funding region and funds are expected to be awarded by the Department of Water Resources (DWR) in 2008.  The funding region is comprised of coastal watersheds in the counties of Santa Cruz, Santa Clara, San Benito, Monterey, San Luis Obispo and Santa Barbara (see Exhibit 15-A).   Within this area, there are six planning regions, each with a lead agency for IRWM Plan development and implementation.  The Monterey Peninsula Water Management District (MPWMD) is the lead agency for IRWM planning for the Monterey Peninsula, Carmel Bay, and South Monterey Bay.  Representatives from each of the six lead agencies developed and agreed to a set of principles to guide the funding region in seeking Prop 84 funds (see Exhibit 15-B).  The six lead agencies in the Central Coast funding region have had preliminary discussions about allocating Prop 84 funds, but an agreement has not been developed.


A formally adopted IRWM Plan (IRWMP) is required by the State in order to be eligible to apply for funds to implement projects.  An IRWMP must address, at a minimum, water supply, groundwater management, ecosystem restoration, and water quality.  The State IRWM guidelines require efforts to maximize affected entities participation in drafting the plan and input from the community is also a part of the consideration process.


In 2005, MPWMD defined a geographic planning area, or Region, and began developing an IRWMP that  encompasses the groundwater basins and watersheds of the Monterey Peninsula, Carmel Bay and South Monterey Bay.  The Region includes the six Monterey Peninsula Cities, portions of the unincorporated area of Monterey County in the Carmel Highlands, Pebble Beach, and the inland areas of Carmel Valley and the Laguna Seca area (see Figure 3-1, Exhibit 15-C).  In 2006, the State, through the Department of Water Resources (DWR), awarded a grant of $497,000 to MPWMD to complete an IRWMP for the Region.    An Executive Summary of the “Draft Monterey Peninsula, Carmel Bay and South Monterey Bay Integrated Regional Water Management Plan” (IRWMP) is attached as Exhibit 15-C.  A full copy of the Draft IRWMP has been provided to each MPWMD Board Director under separate cover and is available on the District’s web site at


The IRWMP is not a detailed plan for solving water management issues and implementing projects.  Rather, the IRWMP provides a framework for agencies, non-profit groups, for-profit corporations and other stakeholders with missions and responsibilities to work together on common water management strategies, objectives, goals and projects.   As such, the IRWMP takes into consideration the many plans and policies currently being implemented for water resource management, analyzes how these are interrelated and shows how projects and programs can have multiple benefits when grouped together.  However, the IRWMP does not bind any agency or group to carry out particular actions, policies, or projects.




Audubon Society

Monterey Bay National Marine Sanctuary

Barnyard and Crossroads Business Centers

Monterey County Agriculture and

Historical Land Conservancy

California American Water (CAW or Cal-Am)

Monterey Bay Citizen Watershed Monitoring Network

California Coastal Commission

Monterey County Resources Conservation District

California Coastal Conservancy

Monterey County Service Area 50

California Department of Fish and Game

Monterey Peninsula Regional Park District

California Fire Safe Council

NOAA Fisheries

California State University Monterey Bay

Pebble Beach Community Service District

Carmel Area Wastewater District

Pebble Beach Company

Carmel River Steelhead Association

Regional Water Quality Control Board

Carmel River Watershed Conservancy

Rising Leaf Watershed Arts

Carmel Unified School District

Salmonid Restoration Federation

Carmel Valley Association

Santa Lucia Conservancy

City of Carmel-by-the-Sea

Seaside Basin Watermaster

City of Del Rey Oaks

State Department of Parks & Recreation

City of Pacific Grove

The Nature Conservancy

City of Sand City

The Watershed Institute at CSUMB

City of Seaside



During development of the plan,  MPWMD staff and others identified a number of stakeholders (see table above that could participate in or be affected by the planning process.  Many of these entities were actively involved in preparing the Draft IRWMP.


As required under State IRWM guidelines, a Water Management Group was formed (see table below) to guide the development and implementation of the IRWMP.  At least two agencies with statutory authority over water resources are required to be in the Water Management Group.  Of the four public agencies in the table below, all have statutory management authority over at least one water resource, e.g., potable water, storm water, or wastewater.  Management staff at each agency in the Water Management Group has tentatively agreed to assist with development and implementation of the IRWMP; however, a formal Memorandum of Understanding (MOU) (see attached Exhibit 15-D) must be finalized and executed and the IRWMP must be adopted by each participating agency according to State IRWM guidelines.


Water Management Group Participating Agency


Big Sur Land Trust


City of Monterey1


Monterey County Water Resources Agency[1]


Monterey Peninsula Water Management District1


Monterey Regional Water Pollution Control Agency1



In addition to adoption by each participating agency within the Water Management Group, project sponsors will be required to adopt the Final IRWMP in order to apply for and qualify for funds under the IRWM grant program.  It should be noted that MPWMD is the lead agency for development of the IRWMP and ensuring its execution.  However, the institutional structure of the Water Management Group allows for any agency to be a lead agency for a grant application if a specific funding source is identified and the Water Management Group designates another lead agency.


The focus of the IRWMP is to improve management of local water resources by proposing to implement and monitor a suite of projects that taken as a whole:


·        incorporate water management strategies required under State IRWM guidelines;

·        meet objectives and goals set by stakeholders;

·        accomplish regional priorities;

·        are technically and financially feasible; and

·        assist in meeting Statewide priorities.


These criteria are described in detail in Chapters 4 through 6 in the IRWMP.  While most of these criteria were established by the State to foster IRWM planning statewide, regional priorities are specific to each planning Region and IRWMP (see Chapter 6).  For this planning Region, stakeholders determined the following actions were priorities:


·        meet current replacement supply and future demand targets for water supply and support the Seaside Groundwater Basin Watermaster to implement the physical solution in the Basin

·        reduce the potential for flooding in Carmel Valley and at the Carmel River Lagoon

·        address storm water discharges into Areas of Special Biological Significance

·        promote the steelhead run

·        mitigate storm water runoff throughout the region


MPWMD facilitated and approved Monterey Peninsula targets for replacement supply and future demand for water supply.  However, MPWMD’s role in developing other regional priorities was as a support agency with a shared interest and/or responsibility in cooperating with other stakeholders to address each priority.  Thus, for the remaining priorities, setting short and long term goals was a collaborative process among affected stakeholders. 


MPWMD staff requested that stakeholders interested in participating in the IRWM grant program submit project descriptions for consideration and inclusion in the IRWMP.  A requirement for an IRWMP is to develop a method for prioritizing such projects and to rank projects.  MPWMD staff  organized a Technical Advisory Committee (TAC) from among IRWM stakeholder participants comprised of representatives from the Water Management Group and technical staff with expertise  in water resource management.  Over several meetings between December 2006 and July 2007, the TAC refined a system that was initially developed during a series of similar meetings in 2005 to compare and prioritize projects with the resulting projects shown in the table below in order of priority in the Region.  It should be noted that this is a preliminary ordering, which will be subject to change as the scope and financial feasibility of each project is further developed.


Projects were evaluated in four separate categories and individually scored.  These categories and associated weights were: Strategies (17%), Objectives (25%), Regional Priorities (33%), and Feasibility (25%).   It should be noted that regional priorities described above are strongly reflected in the scoring process, with nearly one-third of the score devoted to that category.  Projects that employ several State-mandated strategies and meet many objectives score higher than more narrowly focused projects.  For example, MPWMD’s Aquifer Storage and Recovery Project in the Seaside Groundwater Basin employs several strategies including ecosystem restoration (for relieving stress on the Carmel River), conjunctive use (using water beneficially more than once), water supply reliability, groundwater management, and water quality protection and improvement.  The expansion of MPWMD’s Water Conservation Retrofit program scores lower due to the limited number of strategies involved in such a program.


The suite of projects was scored on a 100-point basis, with 100 being a score associated with a suite of projects that meets all of the goals and objectives in the IRWMP, satisfies all regional priorities and is technically and financially feasible.  The current suite of projects was preliminarily scored at 76.2 out of 100 points.  However, most projects are still at a preliminary planning stage and a means to determine financial feasibility (10% of the evaluation) has not yet been developed as project costs and potential funding sources have not been determined.  Draft project descriptions are contained in Chapter 7 of the IRWMP.


In many cases, projects were evaluated based on their potential for satisfying the requirements of the IRWM Plan rather than on detailed information demonstrating strong fulfillment of Plan strategies, objectives, priorities, and feasibility requirements.  To be included in the Final IRWMP and future grant applications, each sponsor of a proposed project will need to provide additional information including a detailed scope of work, schedule, cost estimate, monitoring program, and financial commitment.


MPWMD-sponsored Projects


MPWMD staff is proposing to sponsor or co-sponsor three of the projects contained in the IRWM Plan (see Chapter 7):


·   Lower Carmel River Restoration and Floodplain Enhancement – Co-sponsors include the Big Sur Land Trust and the Monterey County Water Resources Agency.  This project was preliminarily ranked the highest of the projects submitted for consideration in the IRWM Plan.  MPWMD staff propose to continue efforts to develop the “Long Term Adaptive Management Plan for the Carmel River State Beach and Lagoon”.  This plan and resultant project components identified as part of an adaptive management plan would be coordinated with work proposed by the Big Sur Land Trust to improve flood conveyance under Highway 1 and restore natural river function to portions of the floodplain adjacent to Highway 1 and south of the Carmel River.  This work could beneficially affect homes and structures in the area along the north side of the Carmel River, where the Monterey County Water Resources Agency (MCWRA) determined that 69 properties in County Service Area 50 (CSA 50) were subject to flooding twice within a 10-year period.  MCWRA staff have also expressed support for investigating and implementing improvements along the north side of the river that would reduce the potential for flooding at the lagoon and in CSA 50.


·   Seaside Groundwater Basin (SGB) Aquifer Storage and Recovery (ASR) – A co-sponsor of this project is California American Water (CAW).  Phase 1 ASR facilities in the SGB would be augmented with:


à           a second dual-well site (four ASR wells total);

à           a new 400 horsepower (hp) pump at the existing CAW Del Rey Oaks regulating station; and

à           a new dedicated transmission pipeline (18- to 24-inch diameter) constructed along General Jim Moore Boulevard to the new well site. 


This phase would maximize utilization of “excess” capacity in existing CAW Carmel Valley diversion, treatment, and conveyance facilities to the Seaside/Del Rey Oaks area.  Up to 3,235 acre-feet (AF) would be diverted annually and injected into the Santa Margarita Sandstone aquifer in the SGB to serve the same purposes as Phase 1 facilities.  Maximum extraction would be approximately 4,057 AF annually.


The expansion of the ASR Project was ranked in the top one-third of projects.  This project focuses on one of the most significant regional priorities – to find a replacement water supply – and it has several benefits to the environment, but its readiness to proceed was ranked low because the project is still in the early planning stage.  In addition, a method to evaluate the financial feasibility of proposed projects (i.e., criteria for the local match and commitment of funds) has not yet been developed.  When a method is established and agreed upon and the final ranking of projects is completed later this year, there will be more known about the scope, cost, and timing of the ASR Project expansion, which may result in a higher ranking.


·   Water Conservation Retrofit Program – MPWMD staff propose to expand the existing Water Saving Appliance Rebate Program by implementing a Weather-Based “Smart” Irrigation Controller Program and a High Efficiency Commercial Clothes Washer Program.  These programs would include a public awareness and education campaign, site evaluations, inspections and reporting.  There are potential significant net reductions in water use from implementing these retrofit programs. The approximate cumulative water savings from installing weather-based irrigation controllers is estimated at 12,975 acre-feet over 20 years.  The approximate cumulative water savings of a High Efficiency Commercial Clothes Washer Program is estimated at 806 acre-feet over 20 years.


Similar to the ASR Project expansion, this project is at the preliminary planning stage and will benefit in the ranking system from a more detailed scope of work, cost estimate, and demonstrated financial commitment.


During the IRWMP development process, MPWMD provided progress reports to DWR and discussed strategies for outreach to stakeholders within the Region.  DWR requested that MPWMD conduct public workshops around the Region to present the Draft IRWMP and seek input from as yet unidentified stakeholders and the community.  MPWMD staff believe that most areas and groups with a stake in water resource management are represented in the IRWMP development process except the following: Canyon Del Rey watershed; Cachagua Creek watershed; Tularcitos Creek watershed; Santa Lucia Preserve.  Staff believes that an outreach program in these areas would satisfy DWR concerns and provide stakeholders and the community an additional opportunity to participate in the development of the IRWMP.


RECOMMENDATIONS:  Staff recommends that the Board:


1. Receive a presentation and take initial public comment on the Draft Monterey Peninsula, Carmel Bay and South Monterey Bay Integrated Regional Water Management Plan (Draft IRWMP).


2.  Direct the General Manager to: identify areas within the planning Region that may be affected by the Draft IRWMP and that have not been involved in the planning process; and conduct outreach in those areas that would consist of public notices, advertising, meetings, and public workshops.


3.  Direct the General Manager to address and consider in the proposed Final IRWMP the comments of the MPWMD Board, the public, other adopting agencies, and stakeholder input that may result from an outreach program  (note: it is intended that the Final IRWMP be submitted to the Board for adoption at a later date).


4. Direct the General Manager to request that the entities participating in the Water Management Group consisting of the Big Sur Land Trust, the City of Monterey, the Monterey County Water Resources Agency, the Monterey Regional Water Pollution Control Agency, and the Monterey Peninsula Water Management District consider a Memorandum of Understanding (MOU) that would formally establish these entities as the Water Management Group (WMG) for overseeing implementation of the Integrated Regional Water Management Plan in the Monterey Peninsula, Carmel Bay, and South Monterey Bay Region.


5.  Authorize the General Manager to make any minor or non-substantive modifications to the MOU presented to the Board (Exhibit 15-D, attached), in order to accommodate requests made by the Water Management Group entities prior to signing the MOU or to delete references to entities  that may decline to participate in overseeing the implementation of the IRWMP.


BACKGROUND:  Proposition 50, the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002, was passed by California voters in November 2002.  It amended the California Water Code (CWC) to add, among other articles, Section 79560 et seq., authorizing the Legislature to appropriate $500 million for Integrated Regional Water Management (IRWM) projects.   Propositions 84 and 1E, with more than $2 billion in IRWM funding, were approved by Statewide vote in November 2006 and provide additional funding for water resource related projects under the IRWM Grant Program.

The intent of the IRWM Grant Program is to encourage integrated regional strategies for management of water resources and to provide funding, through competitive grants, for projects that protect communities from drought, protect and improve water quality, and improve local water security by reducing dependence on imported water.  The IRWM Grant Program is administered jointly by DWR and SWRCB and is intended to promote a new model for water management.  One of the goals of the IRWM Grant Program is to encourage communities to work on synergistic approaches to solving regional water supply and environmental quality problems.


Applying for Prop 84 and 1E implementation grants.


The Department of Water Resources (DWR) is proposing to fund IRWM projects through “allocated” and “unallocated” funds from Prop 84 and Prop 1E.  Allocated funds represent the share of Prop 84 funds allocated to funding regions established by the State, based on population, as described above.  Approximately $100 million in unallocated funds are available Statewide from Prop 84.  Approximately $300 million is available Statewide from Prop 1E. DWR has not yet determined whether funds will be disbursed through a competitive grant program (i.e., competition among agencies for funds) or a performance based program (i.e., meet grant program requirements in order to qualify for funds).  However,  DWR staff have indicated that the allocated portion of Prop 84 may be disbursed through a “performance-based” grant program in which agencies would be eligible for implementation funds by meeting criteria set by DWR.  Once eligibility is established, such as by adopting an IRWMP that meets DWR standards, then DWR staff would work with a planning region to identify sources of funds to implement projects.


The Central Coast funding region is comprised of coastal watersheds in the counties of Santa Cruz, Santa Clara, San Benito, Monterey, San Luis Obispo and Santa Barbara (see Exhibit 15-A).  Within this area, there are six IRWM Plans covering the funding region, with the exception of portions of Monterey County along the Big Sur coast and portions of the Salinas River watershed that are outside of the geographical limits of the Salinas Valley Groundwater Basin.


Within each planning area, a lead agency has been identified.  MPWMD is the lead agency for the Monterey Peninsula, Carmel Bay, and Southern Monterey Bay area.  Representatives from the lead agencies met and agreed that their long term interests are best met by working together to develop a coherent approach to benefit all planning sub-regions within the funding area.  The staffs of lead agencies for each of these planning regions developed and agreed to a set of principles to guide the funding region in seeking Prop 84 funds (see Exhibit 15-B).  A minimum of $52 million has been allocated from Prop 84 to the Central Coast funding region.  These funds are anticipated to be awarded in 2008.  However, an agreement among the six lead agencies to allocate funds to each of the six planning regions has not been developed.


Projects proposed in an adopted IRWMP may be eligible to receive grant funding through either or both  Prop 84 and Prop 1E.   If awarded a grant from the allocated portion of Prop 84, there is no minimum local match required, while the minimum local match for Prop 1E projects is 50% of the proposed project costs.  It is clear that the allocated funds from Prop 84 that may be made available to the Monterey Peninsula planning Region will not adequately fund the cost of all projects proposed in the IRWMP.




DWR’s proposed timeline for implementing the IRWM Grant Program is shown below.  Applications for grants are likely to taken by DWR as early as the beginning of 2008.  Based on the process for awarding previous IRWM grants, it is possible that funds could be made available in mid- to late 2008 depending on the review and qualification process set up by DWR. 





Steps to complete the IRWMP


The following items need to be completed, revised and/or amplified on prior to the adoption of a Final IRWMP:


·   Stakeholder outreach

·   Project descriptions, cost estimates, financing, proposed schedule for implementation, project performance measures, and monitoring program

·   Final project prioritization, including financial feasibility

·   Description of how each project in the final project package is integrated

·   Monitoring plan

·   Water Management Group Memorandum of Understanding (MOU) – the MOU needs to be finalized and executed either  before or at the time of adoption of the Final IRWMP.

·   California Environmental Quality Act (CEQA) compliance – as lead agency in the Water Management Group, MPWMD will review the IRWMP for compliance with provision of CEQA.  Currently, the development of feasibility or planning studies is exempt under Section 15262 of CEQA.  Staff anticipates that it will be able to propose a finding that is consistent with this section.  Prior to adoption of the Final IRWMP, MPWMD General Counsel will review CEQA requirements to determine the appropriateness of this action.




Staff anticipates additional effort through Fiscal Year (FY) 2007-2008 to conduct public outreach,  complete an MOU to form the Water Management Group and to coordinate the completion and adoption of  the Final IRWMP.  The District’s budget for FY 2007-08 adopted by the Board on June 16, 2007 includes $145,000 for IRWMP development under Objective 2-7 “Develop Integrated Regional Water Management Plan.”  In addition, it is anticipated that negotiations will continue concerning allocation of Prop 84 funds among the six Central Coast planning regions.  District staff is currently fully engaged in both of these processes.



15-A    Central Coast Funding Region Map

15-B    Central Coast Funding Region Statement of Principles

15-C    Executive Summary, “Draft Monterey Peninsula, Carmel Bay and South Monterey Bay Integrated Regional Water Management Plan”

15-D    Draft Memorandum of Understanding for Integrated Regional Water Management in the Monterey Peninsula, Carmel Bay, and South Monterey Bay Area



[1]. Agency with statutory management authority over water resources in the planning Region.