ITEM:		PUBLIC HEARINGS
21.	CONSIDER ADOPTION OF OCTOBER THROUGH DECEMBER 2009 QUARTERLY WATER SUPPLY STRATEGY AND BUDGET
Meeting Date:			September 21, 2009	Budgeted:	N/A
From:			Darby Fuerst,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Darby Fuerst	Cost Estimate:	N/A
General Counsel Review: 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 2002-0002.

SUMMARY: The Board will accept public comment and take action on the October through December 2009 Quarterly Water Supply Strategy and Budget for California American Water’s (CAW or Cal-Am) Main and Laguna Seca Subarea Water Distribution Systems (WDS). The proposed budgets, which are included as Exhibit 21-A and 21-B, show monthly production by source of supply that is required to meet projected customer demand in CAW’s Main and Laguna Seca Subarea systems, i.e., Ryan Ranch, Bishop, and Hidden Hills, during the October through December 2009 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 21-A shows the anticipated production by CAW’s Main system for each production source and the actual production values for the water year to date through the end of August 2009. Please note that the anticipated production values assume that CAW annual Main system production will not exceed 14,474 acre-feet (AF), including 3,191 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 and recent action by the Seaside Watermaster Board to reduce the operating yield of the basin in Water Year (WY) 2009, consistent with the adjudication decision. For the purpose of this budget, it is conservatively assumed that below normal inflow conditions will occur.

Exhibit 21-B shows the anticipated production by CAW’s Laguna Seca Subarea system for each production source and the actual production values for the water year to date through the end of August 2009. Please note that the anticipated production values assume that CAW’s annual Laguna Seca Subarea systems’ production will not exceed 271 AF from the Laguna Seca Subarea of the Seaside Groundwater Basin. This total is also consistent with the Seaside Basin adjudication decision and recent action by the Seaside Watermaster Board to reduce the operating yield of the basin in WY 2009.

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 budgets are described in greater detail in Exhibit 21-C, Quarterly Water Supply Strategy Report: October – December 2009.

BACKGROUND: The Quarterly Water Supply Strategy and Budget pertains to production within CAW’s Main and Laguna Seca Subarea systems for the three-month period of October, November, and December 2009. Staff from the District, CAW, California Department of Fish and Game (CDFG), and NMFS cooperatively developed this strategy on September 8, 2009. Based on current reservoir conditions, it was agreed that “below normal” year inflows would be used to assess CAW’s operations and set monthly production targets for CAW’s systems.

To meet customer demand in its main system, CAW will produce approximately 860, 740, and 650 AF of groundwater from its wells in the Lower Carmel Valley during October, November, and December, respectively. Further, it was agreed that CAW will produce no water from its wells in the Upper Carmel Valley during October, November, and December 2009, respectively.

It was also agreed that CAW would produce 450 AF from its wells in the Coastal Subareas of the Seaside Basin in October and 300 AF in November and in December. In addition, it was agreed that CAW would produce 27, 18, and 15 AF of groundwater from its wells in the Laguna Seca Subarea for its customers in the Ryan Ranch, Bishop, and Hidden Hills systems during this period.

Lastly, it was agreed that CAW would not divert any water from San Clemente Reservoir through the Carmel Valley Filter Plant during this quarter. CAW will operate its wells in the Lower Carmel Valley in a downstream-to-upstream order. 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. The proposed budget does not include any diversions for injection during the quarter. However, if sufficient rainfall and runoff occur in the Carmel River Basin to allow diversions for injection in December, then the budget will be adjusted to reflect these diversions.

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

21-A Quarterly Water Supply Strategy and Budget for CAW Main System: Oct-Dec 2009

21-B Quarterly Water Supply Strategy and Budget for CAW Subsystems: Oct-Dec 2009

21-C Quarterly Water Supply Strategy and Budget Report: Oct-Dec 2009

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