WATER SUPPLY PLANNING COMMITTEE
ITEM:		DISCUSSION ITEM
2.	DISCUSSION OF REPLENISHMENT FUND - SEASIDE GROUNDWATER BASIN
Meeting Date:			January 4, 2021	Budgeted:
From:			David J. Stoldt	Program/
			General Manager	Line Item:	N/A
Prepared By:			David Stoldt	Cost Estimate:
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.

SUMMARY: At its meeting of September 2, 2020 the Watermaster Board determined that beginning with WY 2021 the Natural Safe Yield Replenishment Assessment unit cost should be updated to $2,947 per acre-foot, and the Operating Yield Replenishment Assessment unit cost should be updated to $737 per acre-foot. The Agenda transmittal which explains the basis of calculation for these new unit costs is contained in Exhibit 2-A. Alternative and Standard Producers report their production amounts from the Basin to the Watermaster on a quarterly basis. Based upon the reported production for WY 2020, CAWC’s Replenishment Assessment for Overproduction in excess of its share of the Natural Safe Yield is $959,859, and for overproduction in excess of its share of the Operating Yield is $164,872. Based upon the reported production for WY 2020, the City of Seaside’s Replenishment Assessment for its Municipal System for Overproduction in excess of its share of the Natural Safe Yield is $92,089, and for overproduction in excess of its share of the Operating Yield is $24,886. The City of Seaside did not exceed its Alternative Production Allocation for its Golf Course System production. A summary of the calculations for 7 Replenishment Assessments for WY 2020 is contained in Exhibit 2-B.

According to the Court’s adjudication decision, "Replenishment Assessment" means an assessment levied by the Watermaster per each acre-foot of Over-Production against each party Over-Producing Groundwater in the previous Water Year. The amount of the assessment shall be sufficient to cover the cost of Artificial Replenishment in an amount necessary to off-set that Producer's Over-Production, and levied as provide in Section III.L.3.j.iii. The assessment must of necessity be initially determined based upon the estimated cost of providing Non-Native water to replenish the Basin, as determined by the Watermaster.

However, the decision also states: “Credit Toward Replenishment Assessment. California American's expenditures for water supply augmentation may also provide replenishment water for the Basin. Accordingly, on an annual basis, California American will provide the Watermaster with an accounting of all expenditures it has made for water supply augmentation that it contends has or will result in replenishment of the Basin. The Watermaster shall review these expenditures and if it concurs reduce California American's Replenishment Assessment obligation, for that year, by an amount equal to the amount claimed by California American.”

This process will be discussed at the Committee’s January 4, 2021 meeting.

EXHIBITS

2-A Updated Replenishment Assessment Unit Costs

2-B Replenishment Assessment Calculations for WY 2020

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