1. Management Objectives

The Monterey Peninsula Water Management District (District) desires to maximize the long-term production potential and protect the environmental quality of the Carmel River and Seaside Groundwater Basins. In addition, the District desires to maximize the amount of water that can be diverted from the Carmel River Basin and injected into the Seaside Groundwater Basin while complying with the instream flow requirements recommended by the National Marine Fisheries Service (NMFS) to protect the Carmel River steelhead population. To accomplish these goals, a water supply strategy and budget for production within California American Water’s (Cal-Am) Main and Laguna Seca Subarea water distribution systems is reviewed quarterly to determine the optimal strategy for operations, given the current hydrologic and system conditions, and legal constraints on the sources and amounts of water to be produced.

2. Quarterly Water Supply Strategy: July - September 2012

On June 7, 2012, staff from the District, Cal-Am, the California Department of Fish and Game (CDFG), NMFS, and the United States Fish and Wildlife Service (USFWS) met and discussed the proposed water supply strategy and related topics for the period of July through September 2012. Currently, flow in the Carmel River is unregulated and Los Padres Reservoir (LPR) is still spilling. LPR is currently at ~103% of maximum effective storage capacity, i.e., 1,731 AF that occurs with the Los Padres Dam (LPD) spillway’s notch flashboard removed, or 101% of the 1,775 AF of storage capacity achieved when the notch’s flashboard is back in place. Normally the LPD notch would be open to hypothetically enhance steelhead smolt emigration, but since this is a dry water year, the flashboard was replaced into the notch on February 6, 2012. This was done in order to maximize any potential storage that can be gained this year, so that it can be allocated to sustaining minimum flows in the river over the summer and fall. Flow in the Carmel River is still continuous to the lagoon, and the lagoon mouth was mechanically closed for the year on May 18, 2012. Rainfall during Water Year (WY) 2012 to date at San Clemente Dam in the upper watershed has totaled 13.87 inches or 66% of the long-term average to date at this site, and 65% of the long-term annual average of 21.44 inches. Further, unimpaired runoff at San Clemente Dam for WY 2012 through May has totaled approximately 18,647 AF or about 28% of the long-term average to date for this site, and 27% of the long-term annual average of 69,199 AF, making this a “Dry” Water Year Type (WYT), to date.

Carmel River Basin Given these conditions, and rainfall and runoff to date, it was agreed that “Dry” year inflows would be used to assess Cal-Am’s operations during the July through September 2012 period. We specifically chose observed inflows during these three months from a Dry WYT of 1991, as the ones most likely to simulate pending conditions. To meet customer demand, Cal-Am would operate its wells in the Lower Carmel Valley in a downstream-to-upstream sequence, as needed. For the quarterly budget, it was agreed that Cal-Am would attempt to produce no groundwater from its wells in the Upper Carmel Valley during July through September 2012. If sufficient flow in the Carmel River at the District’s Don Juan Bridge gage in Garland Park, i.e., five consecutive days of 20 or more cubic feet per second (cfs), occurs to justify operations allowed under the less restrictive high-flow period, Cal-Am could operate these wells if needed. In addition, it is projected that Cal-Am would produce approximately 850, 826, and 752 AF of groundwater from its wells in the Lower Carmel Valley during July, August and September 2012, respectively, for customer service. Table 1 shows actual (bold type) and projected (italics) monthly releases and diversions from Los Padres and San Clemente Reservoirs for the October 2011 through December 2012 period. This table will be revised and updated by July 6 for the July 16, 2012 Board meeting as a formal part of the Annual Low Flow MOA, so values in italics should be considered preliminary at this time.

Lastly, it was assumed that no water would be diverted from the Carmel River Basin and injected into the Seaside Groundwater Basin during the last quarter of WY 2012, as the legal season for such diversions to Aquifer Storage and Recovery (ASR – Water Projects #1 and #2) does not resume until December 1, 2012, which is in the next WY 2013.

Seaside Groundwater Basin It was also agreed that Cal-Am would produce 520, 525, and 500 AF per month from their wells in the Coastal Subareas, for July, August and September 2012, respectively, in addition to the planned 25 AF per month of production from the Sand City Desalination Plant, so as to achieve maximum utilization of the native water available in the basin under the Seaside Basin Adjudication Decision and in compliance with SWRCB Orders 95-10 and 2002-0060. It was also agreed that only 18, 18, and 17 AF of groundwater would be budgeted from Cal-Am’s wells in the Laguna Seca Subarea of the Seaside Basin for customers in the Ryan Ranch, Bishop, and Hidden Hills systems during July, August and September 2012, respectively. It is recognized that, based on recent historical use, Cal-Am’s actual production from the Laguna Seca Subarea during this period will likely exceed the proposed monthly targets, which are based on Cal-Am’s allocation specified in the Seaside Basin Adjudication Decision. For example, in the July, August and September 2011 period, Cal-Am produced 42, 44, and 42 AF from the Laguna Seca Subarea to meet customer demand in the Ryan Ranch, Bishop, and Hidden Hills systems. In this context, the production targets represent the maximum monthly production that should occur so that Cal-Am remains within its adjudicated allocation for the Laguna Seca Subarea. Under the amended Seaside Basin Adjudication Decision, Cal-Am is allowed to use production savings in the Coastal Subareas to offset over-production in the Laguna Seca Subarea.

U:\staff\Boardpacket\2012\20120612\PubHrngs\07\item7_exh7c.docx