MPWMD BOARD MEETING--MAR 17, 2008--ITEM 14--CONSIDER ADOPTION OF APRIL THROUGH JUNE 2008 QUARTERLY WATER SUPPLY STRATEGY AND BUDGET

ITEM:		PUBLIC HEARINGS

14.	CONSIDER ADOPTION OF APRIL THROUGH JUNE 2008 QUARTERLY WATER SUPPLY STRATEGY AND BUDGET

Meeting Date:			March 17, 2008	Budgeted:	N/A

From:			David A. Berger,	Program/	N/A
			General Manager	Line Item No.:

Prepared By:			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 and June 2006 Conservation Agreements between the National Marine Fisheries Service and California American Water to minimize take of listed steelhead in the Carmel River and Consistent with SWRCB WR Order Nos. 95-10, 98-04, and 2002-02.

SUMMARY: The Board will accept public comment and take action on the April through June 2008 Quarterly Water Supply Strategy and Budget for the California American Water (CAW) main Water Distribution System (WDS). The proposed budget, which is included as Exhibit 14-A, shows the monthly production, by source of supply, that is required to meet projected customer demand in CAW’s main system during the April through June 2008 period. The proposed strategy and budget is designed to maximize the long-term production potential and protect the environmental quality of the Seaside Groundwater and Carmel River Basins.

Exhibit 14-A shows the anticipated production by CAW for each production source and the actual production values for the water year to date through the end of February 2008. Please note that the anticipated production values assume that CAW annual main system production will not exceed 14,789 acre-feet (AF), including 3,504 AF from the Coastal Subareas of the Seaside Groundwater Basin and 11,285 AF from the Carmel River Basin. The total from the Carmel River Basin is consistent with State Water Resources Control Board (SWRCB) Order No. 95-10 and the total from the Seaside Groundwater Basin is consistent with the Seaside Basin adjudication decision. For the purpose of this budget, it is assumed that near-normal inflow conditions will occur and water from the Carmel River Basin will be diverted and injected into the Seaside Groundwater Basin during the April through May 2008 period.

It should be noted that, because of the uncertainty associated with predicting rainfall and runoff for the upcoming quarter, the anticipated monthly production may change. For example, if the rainfall and runoff amounts in the Carmel River Basin are greater than projected and streamflow in the Carmel River exceeds the instream flow requirements specified by National Marine Fisheries Service (NMFS), a greater portion of the “excess” water will be diverted by CAW for injection into the Seaside Groundwater Basin as part of the Phase 1 ASR Project. The amount of water diverted from the Carmel River that is treated and delivered for injection will also depend on customer demand and the condition of CAW’s wells in the Carmel Valley at that time.

RECOMMENDATION: The Board should receive public input, close the Public Hearing, and discuss the proposed quarterly water supply budget. District staff recommends adoption of the proposed budget. The budget is described in greater detail in Exhibit 14-B, Quarterly Water Supply Strategy Report: April – June 2008.

BACKGROUND: The Quarterly Water Supply Strategy and Budget pertains to production within CAW’s main WDS for the three-month period of April, May, and June 2008. Staff from the District, CAW, California Department of Fish and Game (CDFG), and NMFS cooperatively developed this strategy on March 5, 2008. Based on the assumption that near-normal inflows will continue during the April through June 2008 period and that the “low-flow” restrictions on CAW’s operations in the Upper Carmel Valley (UCV) will be in effect in June 2008, it was agreed that CAW would produce no more than 60, 60, and 30 AF in April, May, and June from its wells in the UCV, respectively. In addition, it was agreed that CAW would produce approximately 0, 445, and 445 AF in April, May, and June from its wells in the Coastal Subareas of the Seaside Groundwater Basin during this period, respectively.

It was also agreed that CAW would not divert any water from San Clemente Reservoir through the Carmel Valley Filter Plant during this quarter. The remainder of the water needed to meet projected customer demand would be provided by CAW’s wells in the LCV. Specifically, it was agreed that CAW would produce 1,184, 933, and 1,016 AF from its LCV wells in April, May, and June, respectively. CAW will operate its wells in the LCV in a downstream-to-upstream order to meet customer and ASR demand. 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.

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.

EXHIBITS

14-A Quarterly Water Supply Strategy and Budget: April - June 2008

14-B Quarterly Water Supply Strategy and Budget Report: April - June 2008

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