ITEM:

CONSENT CALENDAR

 

7.

CONSIDER APPROVAL OF 2014 ANNUAL MEMORANDUM OF AGREEMENT FOR RELEASES FROM SAN CLEMENTE RESERVOIR AMONG CALIFORNIA AMERICAN WATER, CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE, AND MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

 

Meeting Date:

May 19, 2014

Budgeted: 

N/A

 

From:

David J. Stoldt,

Program/

Aquatic Resources and

 

General Manager

Line Item No.:

Hydrologic Monitoring 2

 

Prepared By:

Kevan Urquhart

Cost Estimate:

N/A

 

General Counsel Review:  N/A

Committee Recommendation:  N/A

CEQA Compliance:  Consistent with SWRCB WR Order Nos. 95-10, 98-04, 2002-0002, and 2009-0060.

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.

 

SUMMARY:  Representatives from the Monterey Peninsula Water Management District (MPWMD), California American Water (Cal-Am), the California Department of Fish and Wildlife (CDFW), and National Marine Fisheries Service (NMFS) met on May 13, 2014 to negotiate the terms and conditions for the 2014 Memorandum of Agreement (MOA) for releases and diversions from San Clemente Reservoir to the Carmel River.  As has been the case annually since 2010, concurrence was provided only on the minimum low-flow targets for 2014.  CDFW and Cal-Am have not yet concurred on additional operational notification language to the existing MOA and are still in negotiation over it.  Based on current storage conditions and expected reservoir inflows, it was agreed that Cal-Am will maintain minimum flows in the Carmel River below San Clemente Dam at the District’s Sleepy Hollow Weir gaging station of 3.5 cubic feet per second (cfs) during June through November, and return to estimated natural river flows of at least 5.0 cfs in December 2014.  The “critically dry” stream-flow conditions are projected to be among the worst three on record for the remainder of the year, and Los Padres Reservoir has already stopped spilling on approximately May 11, 2014.  The agency representatives agreed that due to the exceptionally dry nature of this year, the MOA signatories are likely to have to reconvene monthly in June and July to reconfirm whether predicted natural streamflows actually materialize, and if not will then have to reduce the Low Flow MOA target by potentially as much as one third.  Cal-Am ceased diversions from most of its wells upstream of the Narrows in mid-April, when Carmel River flow at the District’s Don Juan Bridge gaging station in Garland Park dropped below 20 cfs for five consecutive days. No surface water diversions from San Clemente Reservoir are planned during the MOA period.  These actions conform to State Water Resources Control Board (SWRCB) Order 2002-0002 and the 2001 NMFS Conservation Agreement with Cal-Am.  The Draft 2014 MOA is included as Exhibit 7-A.

 

RECOMMENDATION:  Staff recommends that the Board approve the 2014 MOA and direct the General Manager to sign the agreement. 

 

BACKGROUND:  To determine minimum flow releases to the Carmel River below San Clemente Dam during the low-flow period (i.e., generally May through December), the District annually enters into an agreement with Cal-Am and CDFW.  In general, the MOA specifies the minimum release that must be maintained from San Clemente Reservoir to the Carmel River and the maximum diversion that is allowed from San Clemente Reservoir to Cal-Am’s Carmel Valley Filter Plant (CVFP). 

 

In addition to the requirements discussed above, Cal-Am’s ability to divert surface flow at San Clemente Dam is also constrained by implementation of the San Clemente Dam Drawdown Project (SCDDP), which is mandated by the California Department of Water Resources’ Division of Safety of Dams (DSOD). A primary requirement of the SCDDP is the lowering of the water surface elevation in the reservoir to reduce the risk of flooding during a seismic failure of the dam.  Under the drawdown plan, Cal-Am would normally have begun the initial drawdown after June 1, 2014.  However, it was begun early this year, due to the river not reaching the sea to allow any adult steelhead immigrants to enter the river.  Reservoir drawdown began on April 29, 2014, and is nearly completed as of May 13, 2014.  The reservoir water level is being drawn down by approximately 0.5 feet each day.

 

Based on current reservoir storage and projected “critically dry” inflow conditions for the remainder of Calendar Year 2014, it was agreed by all parties at the May 13, 2014 meeting that Cal-Am would follow the natural pattern of LPR inflow recession in May, then meet or exceed a minimum flow release of 3.5 cfs in June through November from San Clemente Reservoir to the Carmel River (as measured at the Sleepy Hollow Weir), returning to estimated natural river flows of 5.0 cfs or more in December 2014.  The projected monthly inflows, spills, releases, diversions and storage values for the May - December 2014 period are shown on Attachment A of Exhibit 7-A.  The parties will continue to monitor runoff throughout the year and will meet monthly in at least June and July to reconsider whether or not any further modifications are needed, if actual inflow and storage differ from the expectations.  Attachment A of Exhibit 7-A also includes actual values for the January - April 2014 period, which are shown in bold type.[1] 

 

To maximize the instream flow benefits from the proposed releases, the 2014 MOA also includes a condition that limits the amount of water pumped from Cal-Am's production wells in the Upper Carmel Valley (i.e., above the Narrows) to levels required for maintenance of the wells (Exhibit 7-B).  This limitation and schedule also applies to the former Water West wells that are now owned and operated by Cal-Am.  Similarly, the MOA includes a provision that Cal-Am will make all reasonable efforts to operate its Lower Carmel Valley production wells beginning with the most downstream well and moving to upstream wells as needed to meet system demand.  This provision is consistent with Condition No. 5 of SWRCB Order 95-10.

 

While all parties agreed to the minimum flow targets shown in Attachment A of Exhibit 7-A, CDFW and Cal-Am did not discuss or agree to additional language requiring faster notification of any operational changes to the Cal-Am system that could result in the need to accelerate or expand fish rescues.  CDFW provided draft language in 2010 that Cal-Am rejected, which resulted in the 2010 through 2013 Low Flow MOAs not being signed by CDFW.   Cal-Am complied with the Low-Flow MOA targets in 2010 through 2013.  District staff provided alternative draft language at a January 26, 2011 meeting which Cal-Am rejected as overly specific and unworkable.  Cal-Am’s current position is that CDFW must demonstrate the legal nexus requiring that such additional language be included in future Low Flow MOAs.  Even if the Low Flow MOA shown in Exhibit 7-A is only signed by the District and Cal-Am, and not CDFW, as was the case in 2010 - 2013, we expect Cal-Am will once again comply with the low-flow targets for 2014.

 

The proposed MOA may be modified by mutual consent of all the parties and will be monitored weekly by representatives of the three parties.  It should be noted that the releases and operations specified in the MOA are consistent with the releases and diversions that will likely be proposed in the Quarterly Water Supply Strategy and Budget for Cal-Am for the July-September 2014 period, on June 10, 2014.  If approved, the 2014 MOA becomes effective June 1, 2014, and extends through December 31, 2014.

 

IMPACT ON STAFF AND FISCAL RESOURCES:  Due to the current “critically dry” inflows that are likely to continue for the remainder of the year, the lower river began drying-up after the only significant storm of the year on March 1, 2014, and prompted steelhead rescue efforts to begin on March 3, 2014.  District staff have not begun the startup and operation of the District’s Sleepy Hollow Steelhead Rearing Facility (SHSRF), since minimum flows achievable before the March rainfall event were predicted to be as low as 2.2 cfs, and have only just been upgraded to 3.5 CFS.  The SHSRF cannot be reliably operated at flows below 4.0 cfs, which is what caused it to close earlier than planned in Fall 2013. This non-operation decision was supported by both CDFW and NMFS. 

 

EXHIBITS

7-A      Draft 2014 Memorandum of Agreement between the State of California Department of Fish and Wildlife, California American Water, and the Monterey Peninsula Water Management District to Release Water into the Carmel River from San Clemente Reservoir

7-B      Maintenance and Water Quality Pumping Schedule, 2014

 

 

 

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[1] Bold type indicates final estimates and italic type indicates preliminary estimates.