EXHIBIT 13-C

 

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.  Similarly, during the low-flow season, the District desires to recover most or all of the water that was previously injected into the Seaside Groundwater Basin, as well as a seasonally balanced amount of California American Water’s (Cal-Am) full allocation of Seaside native groundwater.  By meeting customer demand with as much as feasible of these two groundwater sources, Cal-Am will be able to maximally reduce its diversion from its Carmel River sources during the low-flow season.  To accomplish these goals, a water supply strategy and budget for production within the 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. 

 

2.         Quarterly Water Supply Strategy: October - December 2014

 

On September 09, 2014, staff from the District, Cal-Am, the California Department of Fish and Wildlife (CDFW), and National Marine Fisheries Service (NMFS), and State Water Resources Control Board’s – Division of Water Rights (SWRB-DWR) met and discussed the proposed water supply strategy and related topics for the remainder of September 2014, and the October through December 2014 period.  Currently, flow in the Carmel River is regulated by releases from storage at Los Padres Reservoir, which are no longer supplemented by any measurable surface flow coming into the reservoir.  The intent under the original 2014 CDFW/Cal-Am/District Low Flow MOA was to to sustain 3.5 or more cubic feet per second (cfs) of flow to the Sleepy Hollow Weir at River Mile (RM) 17.64 through November, 2014and in December 2014, return to un-supplemented flows, i.e.  run-of-the- river conditions, estimated then to potentially be as much as 5.0 CFS. 

 

Due major construction field dewatering and river re-route activities at the San Clemente Dam Reroute Project (SCDRRP), the interagency signatories to the 2014 Low Flow MOA agreed to switch the flow target compliance point from its historic location at the MPWMD Sleepy Hollow Weir Gage (SHW) to the MPWMD Below Los Padres Gage (BLP) at RM 24.70. Because of the widely varying rates of supplemental flows being pumped out of the construction dewatering zone of the SCDRRP, it was not possible for CalAm to maintain a steady flow target at the SHW Gage.  Additionally, the current lack of Los Padres Reservoir (LPR) inflow, higher than historic levels of flow depletion between reservoirs, and depleted LPR storage conditions required the District to recommend a decreased target at BLP to 3.2 cfs for September.  Pending ongoing flow and storage trends this may be followed by reductions to targets of 2.7 CFS/day for October, 2.2 CFS/day for November, and 2.0 CFS/day for December, for the rest of 2014. Each of these potential successive reductions will be re-reviewed by the interagency Low Flow MOA Group at the beginning of each month through December 2014.  Flow in the Carmel River is continuous from the headwaters only to the vicinity of the Esquiline Road Bridge, in east Carmel Valley Village (RM 14.45).  Flow goes subsurface for almost two miles until it reemerges in the vicinity of Boronda Road Bridge (RM 12.69), with approximately 1.4 cfs measured at the MPWMD Don Juan Gage in Garland Park (RM 10.8) on September 7, 2014, after which the wetted river front ends once again above Robinson Canyon Road Bridge (RM 8.46).  The river is becoming intermittent in the vicinity of Boronda Road Bridge, and we expect gradual dewatering to continue through at least September.  Rainfall during Water Year (WY) 2014 to date through the end of August at San Clemente Dam in the upper watershed has totaled 10.42 inches or 49% of the long-term average at this site.  Further, unimpaired runoff at San Clemente Dam for WY 2014 to date through the end of August has totaled approximately 6,970 acre-feet (AF) or about 10% of the long-term average for this site.  WY 2014 represents the third year in the eighth hydrologic drought since 1902, with two consecutive “Dry” or “Critically Dry” years, and the second one with three consecutive “Dry” or “Critically Dry” years.  The January to August 2014 flow conditions categorize well below median for “Critically Dry” and are similar to conditions seen in 1976, which was the second worst drought year on record.       

 

Carmel River Basin:  Given these conditions, it was agreed that it would be appropriate to use worst case historic “Critically Dry” inflow conditions to assess Cal-Am’s operations during the October through December 2014 period.  Thereafter, the rainfall-to-date through November 2014 will be used to select a Water Year Type for the following quarter, so as to more accurately assess Cal-Am’s operations and set monthly production targets for Cal-Am’s systems from January through September 2015.

 

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 produce approximately 0 AF of groundwater for the months of October and November and 35 AF for the month of December 2014.  These amounts are consistent with the interagency Low Flow Season MOA and Cal-Am management’s intent to minimize production in the Upper Carmel Valley at all times.  However, production could legally be higher under Cal-Am’s existing State water rights, and the interagency Low Flow Season MOA, if the requisite minimum flow triggers are exceeded for five consecutive days.

 

 In addition, it was agreed that Cal-Am would produce approximately 667, 593, and 795 AF of groundwater from its wells in the Lower Carmel Valley during October, November, and December 2014, respectively. 

 

Lastly, it was assumed that 145 AF of the total of 795 AF water planned to be diverted from the Carmel River Basin in December would be injected into the Seaside Groundwater, if flows are sufficient to allow diversions, since the diversion season for the Aquifer Storage and Recovery (ASR) projects ended May 31, and resumes on December 1, 2014.  The remainder of the long-term averages of 920 AF and 1050 AF per WY for ASR Phases 1 and 2 respectively, will be addressed in the Quarterly Water Budget for January to May, 2015.  If the minimum bypass flows defined in the joint MPWMD/Cal-Am Water Right for ASR Phase 1 and 2 are sufficient for any significant length of time after December 1, diversion to storage may begin.

 

Table 1 will be provided when updated data becomes available, and will show actual and projected monthly releases below Los Padres and San Clemente Reservoirs for the October through December 2014 period.

    

Seaside Groundwater Basin:  It was also agreed that Cal-Am would produce 400, 300, and 100  AF of Seaside native groundwater in October, November, and December 2014, respectively, in order to better avoid having any unutilized carry-over water at the end of WY 2015.  There was no water diverted to storage in WY 2014, so none will be recovered in WY 2015. Any ASR storage recovered in WY 2015 will depend on the ability to divert to storage for ASR in WY 2015.  There is also a goal of producing an additional 25 AF of treated brackish groundwater from the Sand City Desalination Plant in each of these three months.  If the Sand City Desalination Plant cannot make its monthly production targets, any of that amount of water that is needed to meet customer demand will be produced from a combination of Cal-Am wells in Seaside or the Lower Subunits of the Carmel Valley Aquifer.

 

It was also agreed that Cal-Am should produce only 5, 3, and 3 AF per month of groundwater from its wells in the Laguna Seca Subarea of the Seaside Basin for customers in the Ryan Ranch, Bishop, and Hidden Hills systems during October, November, and December 2014, 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 October, November, and December 2013 period, Cal-Am actually produced 35, 28, and 27 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 Decision, Cal-Am is allowed to use production savings in the Coastal Subareas to offset production over the operational yield as defined by the Seaside Watermaster  in the Laguna Seca Subarea, if any remains after maximizing production in order to minimize pumping of the Carmel Valley Aquifer, in compliance with SWRCB Order WR 95-10, and 2009-0060.      

 

U:\staff\Boardpacket\2014\20140915\PublicHrngs\13\item13_exh13c.docx                                                                           September 15, 2014