WATER DEMAND COMMITTEE
ITEM:		ACTION ITEM
4.	CONSIDER RECOMMENDATION TO THE BOARD TO ADOPT FINAL REPORT “SUPPLY AND DEMAND FOR WATER ON THE MONTEREY PENINSULA”
Meeting Date:			April 2, 2020	Budgeted:	N/A
From:			David J. Stoldt	Program/
			General Manager	Line Item No.:	N/A
Prepared By:			David J. Stoldt	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: Action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.

SUMMARY:  At its September 16, 2019 meeting, the District Board accepted a report titled “Supply and Demand for Water on the Monterey Peninsula”, which was Exhibit 9-A of that Board packet. The report looked at the changing nature of demand on the Monterey Peninsula, the underlying assumptions in the sizing of the water supply portfolio, and indicators of the market’s ability to absorb new demand. The report was reviewed by members of the public, local organizations, and state agencies. Many comment letters argued that the findings in the report contradict those of the California Public Utilities Commission, but the letters did not provide any substantive alternate assumptions or facts.

Subsequent to the release of the initial report the 2019 water year was completed, providing an additional data point on current customer demand. The report was revised December 3, 2019 to address three items: (i) What is average current demand with the additional water year in the data? (ii) What water will be required to meet future housing needs? and (iii) What might be the market absorption of water based on an objective third-party growth forecast – the Association of Monterey Bay Area Governments (AMBAG) 2018 Growth Forecast? The revisions were presented to the District’s Water Demand Committee December 17, 2019 and a revised report was distributed to the Peninsula’s six city managers in January.

On January 22, 2020 Hazen & Sawyer, a consultant to Cal-Am, issued an analysis of the District’s report, to which the District responded on March 6, 2020. This FINAL version of the supply and demand report responds to comments made by the public, the city managers, Hazen & Sawyer, and incorporates an additional growth forecast.

RECOMMENDATION: The Committee should recommend the Board adopt the final report, but not until the May or earliest in-person Board meeting due to the public interest in the report.

EXHIBIT

4-A Supply and Demand for Water on the Monterey Peninsula – Final

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