DRAFT

Annual Report of the

Monterey Peninsula

Water Management District

Year 2000

                                                Contents

                                                                        Overview............................................................... 2

                                                                        Increasing the Water Supply................................... 3

                                                                        Water Production Report for 2000......................... 6

                                                                        Water Conservation................................................ 9

                                                                        Environmental Protection...................................... 12

                                                                        Financial Report for Fiscal Year 1999-2000......... 17                                

2000 Board of Directors

Molly Erickson, Chair – Division 3

David Potter, Vice Chair – Monterey County Board of Supervisors

Alvin Edwards—Division 1

Ron Chesshire – Division 2

Kris Lindstrom – Division 4

Alexander “Zan” Henson – Division 5

David Pendergrass – Mayoral Representative

Overview

Amid continued state limits on water production and shrinking allocations, the Monterey Peninsula Water Management District focused its attention in 2000 on complying with state regulations, coordinating with the jurisdictions within its boundaries and protecting the environment.

State Limits on Water Production Remain in Effect

Water production within the Water Management District continued to be limited in 2000 by State Water Resources Control Board (SWRCB) Order 95-10, requiring California-American Water Company (Cal-Am) to reduce its historic pumping from the Carmel River by 20 percent now and up to 75 percent in the future.  The order was imposed in 1995 because Cal-Am’s water production exceeded its legal water rights and over pumping was damaging the Carmel River environment.  Despite legal challenges to Order 95-10 the District has brought against the SWRCB, limits on water production remain in effect.

District Rules Reviewed

Harry Schueller, Chief of the Water Rights Division of the SWRCB, spoke at a public meeting in January on Order 95-10 and the legality of water credit transfers. Following that meeting, the Board embarked on a comprehensive review of all District rules and regulations to ensure compliance with State Order 95-10. Several public hearings were conducted on proposed changes to rules regarding well permitting, issuance of water permits and water credit transfers.

Board Promotes Closer Ties With Member Jurisdictions

The District Board took steps to forge closer ties with the eight jurisdictions within its boundaries: the cities of Carmel, Del Rey Oaks, Monterey, Pacific Grove, Sand City and Seaside, plus the Monterey Peninsula Airport District and some unincorporated areas of the County of Monterey. The steps included organizing a community water forum in October, when city council, planning commission and other local agency representatives discussed water issues with the Board of Directors. In addition, the jurisdictions have a voice in District policy through their representation on District Policy and Technical Advisory Committees.

Priority Given to Environmental Protection

One District priority is to protect the Carmel River habitat and threatened species, such as the California red-legged frog and steelhead trout. District habitat and wildlife protection activities include monitoring streamflow and its effects, as well as measuring groundwater levels in the Seaside and Carmel River basins. The District also rescues fish, undertakes riverbank protection work and plants vegetation in degraded areas along the Carmel River banks.

No New Water Available

At the end of 2000, approximately 128 acre-feet of water remained for new construction and remodel projects within the Cal-Am service area. Most of that water had been set aside by the jurisdictions for projects that are awaiting final planning department approval. Presently, no new water source is available to serve Cal-Am customers within the District.

Increasing The Water Supply

The Monterey Peninsula Water Management District is seeking development of new water sources in a variety of ways: conducting the environmental studies for Cal-Am’s proposed Carmel River Dam and the Public Utility Commission’s “Plan B”; testing an injection/recovery project; and exploring wastewater recycling, storm water reuse and reservoir dredging.

Priority for Use of New Water Sources Set by State

The State Water Resources Control Board has ruled that any new water sources developed by California-American Water Company or distributed within its service area must first be used to make up for the 75 percent water supply shortfall identified in State Board Order 95-10. Once the shortfall is met, any additional water supplies can be allocated for new uses.

The Water Management District regulates the water resources of more than 30 water distribution systems and over 400 private wells. The largest system, operated by Cal-Am, provides water to 95 percent of the people and produces about 80 percent of the total supply. Most of Cal-Am's water production is regulated by the SWRCB. The other smaller water suppliers in the District have their own water rights and operate under varying rules and conditions.

The District is moving on several fronts to develop new water supplies to provide 10,730 acre-feet of water to meet the shortfall in State Order 95-10, plus additional water for future needs.

Future Water Needs Quantified

According to a preliminary report released in August, an estimated 1,166-acre feet of water will be needed for construction on existing, buildable, improved legal lots of record and anticipated remodels in the District through the year 2006.  The 1,166 acre-foot total does not include demand estimates for the unincorporated areas of the District. The final report of the residential and commercial study is pending completion of high-resolution aerial photography by the County of Monterey.

Progress on Water Supply Plans A and B

Preliminary Report on Plan B Proposal Completed

The California Public Utilities Commission (PUC) is developing a contingency water supply plan (Plan B) that could be developed in the event that Cal-Am’s proposed Dam and Reservoir (Plan A) is not approved or cannot be built.   Plan B, a non-dam alternative, is being prepared by the San Francisco-based consulting firm of EDAW, Inc., and will provide only enough water to make up for the 10,730 acre-foot shortfall identified in State Order 95-10.

In November, EDAW identified which of the non-dam components of the study met screening criteria and could be considered a viable Plan B option. A final report by EDAW should be completed by Summer 2001.

Plan B Option to be Included in EIR on Dam Project

The District will incorporate the Plan B option into its EIR on the Carmel River Dam and Reservoir Project. The EIR will compare the Plan B option to other non-dam alternatives, and analyze whether the Plan B option could be modified to provide water for future needs.

EIR Being Prepared for Major Project by Cal-Am

The District is the lead agency for preparation of an Environmental Impact Report (EIR) on the Carmel River Dam and Reservoir Project proposed by Cal-Am. The project would provide water to make up for the shortfall in State Order 95-10, provide drought protection for existing water users and maintain the environmental health of the Carmel River. Cal-Am intends that no water from the project will be used for new construction or remodeling projects.

Scope of EIR Expanded

The scope of the EIR has been expanded by the District to include an analysis of whether dam and non-dam alternatives could provide more water to meet future needs in the Cal-Am service area. The goal is to study both alternatives at the same level of detail so decision makers can decide which water supply project should be constructed to comply with State Order 95-10. The EIR will also provide information to help voters in a future election decide if additional water supplies should be developed for new construction and remodeling projects. The draft EIR should be completed by December 2001.

District staff and consultants worked throughout the year to assess how each alternative in the EIR would affect plants, fish, wildlife and cultural resources on the Carmel River. Plans are being developed to mitigate for any adverse environmental effects of the proposed alternatives.

Progress Towards Preservation of Native American Resources

Following a year of extensive consultation with the Esselen Tribe, the Esselen Nation and Cal-Am, three critical reports were completed that will be used to develop an agreement with the Esselen groups on measures that will avoid, minimize or mitigate potential impacts of Cal-Am's proposed dam on cultural resources.

Seaside Injection Recovery Project

Injection/Recovery Pilot-Scale Project Successful

From January to May, about 170 acre-feet of water were injected into the Seaside basin in the third year of the District's Injection/Recovery Pilot-Scale Test Project.  Current projections indicate that with additional injection wells and other improvements to the Cal-Am distribution system, 1,700 to 2,080 acre-feet of Camel River water stored in the Seaside basin could be delivered to Cal-Am customers during summer months each year.

Full-Scale Injection/Recovery Test Project Underway

All permits and other approvals were granted in 2000 to allow construction of a full-scale injection well on former Fort Ord property. The well will be much deeper than the pilot-scale test well, and will be the focus of a full-scale test of the injection/recovery process. The District should complete well construction by March 2001 and begin the injection process in April 2001, if there is adequate flow in the Carmel River to allow withdrawals. Once a water supply project is built to satisfy Order 95-10, production from a full-scale injection/recovery project could provide additional water for new construction and remodeling projects.

Wastewater Recycling to be Expanded

Plans are underway for expansion of the largest wastewater recycling project in the District. Negotiations between the District and proponents have focused on ways to fund the expansion of the Carmel Area Wastewater District/Pebble Beach Community Services District Wastewater Reclamation Project. The project was designed to provide 800 acre-feet of reclaimed water annually. Improvements could boost the yield to over 1,000 acre-feet per year. 

About 714 acre-feet of reclaimed wastewater and 279 acre-feet of potable water were applied to golf courses and open spaces within the scope of this project. In 2000, the District collected about $1,235,000 from the sale of the reclaimed water, which was used to cover project operating expenses and interest on bonds sold to finance the project.

Storm Water Reuse

Storm Water Reuse and Reservoir Dredging Investigated

A Board subcommittee was established to address storm water reuse as one way to increase the District's limited water supply. As a result, staff developed an issue paper that summarized the status of storm water reuse efforts within the District boundaries, identified policy issues and recommended further actions. In addition, a draft issue paper on the potential for dredging existing reservoirs on the Carmel River was prepared by District staff. Both issue papers will be revised and updated in 2001.

State Board Order

State Declines to Modify State Order 95-10

The District has continually sought clarification of issues related to State Order 95-10, in order to achieve a relaxation of water production restrictions. Litigation initiated by the District in July 1998 was resolved in February 2000 when  Monterey County Superior Court ruled against the District and reaffirmed the validity of limits on water production from the Carmel River specified in the State Order. 

At the District's request, SWRCB Board members held a May public workshop in Monterey to discuss compliance with State Order 95-10 and ways to protect the Carmel River environment. Afterwards, the SWRCB issued a statement recognizing the benefits of relaxing certain elements of the State Order, but recommended that the Order be enforced.

Water Production Report for the Year 2000

District Water Production Up 12 Percent

Water production in the Water Management District  during the July 1999 through June 2000 reporting period totaled about 19,902 acre-feet, a 12 percent increase over the prior year.  Rainfall and runoff were below average in the upper Carmel River basin during the same reporting period.

Monterey Peninsula Water Resources System

During the 12-month 1999-2000 reporting period, production in the Monterey Peninsula Water Resources System (MPWRS) totaled 18,456 acre-feet of water, which was below the system's limit of 20,687 acre-feet per year. About 93 percent of the District's water comes from the system, which includes the Carmel River and its tributaries, Carmel Valley Alluvial Aquifer and Seaside Coastal Groundwater Basin. Production from wells and water distribution systems outside of the MPWRS was about 1,446 acre-feet of water.

California-American Water Company

Cal-Am, largest of the 14 water distribution systems in the Monterey Peninsula Water Resource System (MPWRS), produced 15,280 acre-feet of water within the system and 400 acre-feet outside the MPWRS during 1999-2000. The District's Water Allocation Program limits production by Cal-Am within the MPWRS to 17,641 acre-feet of water per year.

Well Meters Required

Because of strict regulations requiring water meters on all new wells and existing wells producing five or more acre-feet of water per year, about 99 percent of the groundwater produced within the District is metered.

Strict Rules to Regulate Wells Considered

The Board conducted public hearings on proposed Ordinance No. 96, requiring a District permit for operating a single well on a single parcel of land in certain areas within Carmel Valley and coastal Seaside.   Applicants would be required to show proof of a water right. The ordinance was developed in response to concerns that an increase in wells for single connections could cause environmental damage and over-pumping of the Carmel Valley Aquifer and Seaside basin.  The Board should take action on the ordinance in 2001.

The Monterey Peninsula Water Resources System (MPWRS), is the set of interconnected water resources that supply most of the water in the Monterey Peninsula area, The MPWRS is comprised of the Carmel River and its tributaries, the Carmel Valley Alluvial Aquifer and the Seaside Coastal Groundwater Basin.

The Carmel River supplies nearly 73 percent of the water used within the District. The remaining 37 percent is pumped from the Seaside basin and other areas within the District.

Water Conservation

Monterey Peninsula residents, with the assistance of Cal-Am and extensive District conservation programs, continue to be among the most water thrifty in the state.   Stringent conservation measures were needed last year, not because of drought, but to satisfy State Water Resources Control Board Order 95-10 that limits water production from the Carmel River basin.

Conservation Plan Supported By The Community

Community Complies with Expanded Conservation Plan

The Expanded Water Conservation and Standby Rationing Plan was implemented in 1999 to: (a) keep Cal-Am water production within limits set by State Order 95-10; (b) establish mandatory water reductions for all water users when a physical water shortage such as a drought occurs; and (c) mandate procedures to be followed in the event of a water supply emergency caused by a natural disaster or breakdown in the water distribution system.

Stage I Declared by End of Year

In February 2000, the community moved into Stage 3 of the conservation plan because water production in the Cal-Am system exceeded year-to-date monthly targets twice in the previous four-month period. By December, water production was below the year-to-date targets for two consecutive months, so the community moved back to Stage 1.

New Water Rates in Effect

The PUC approved one important component of the conservation plan in March 2000, a new conservation rate schedule proposed by Cal-Am. The rate schedule established a base water allowance for each Cal-Am household and business. Household allowances are based on the number of full and part-time residents in a house, as well as lot size. During Stage 3 of the plan, if a water customer exceeds its water allowance by 150 percent, water rates increase. Stage 3 was designed to reduce Cal-Am water use by 15 percent.

Water Permits

All new construction or remodeling projects that include the installation of water-using fixtures must obtain a water permit from the District before construction. Water permit fees are based on the potential water use that each new fixture represents. The District maintains a record of the amount of water assigned to new uses and remodels, to ensure that the total remains within the amount of water allocated to the jurisdictions for construction projects.

Number of Permits Issued Increases

In 2000, a total of 1,077 water permits were issued for projects throughout the District, which was 23 percent more than the number of permits issued in 1999. Water permits issued for projects within the Cal-Am service area totaled 705, representing 16.9 acre-feet of projected annual water use. At the end of 2000, approximately 38 acre-feet of water from the 1993 Paralta well allocation remained  for new construction and remodel projects within the Cal-Am service area.   In addition, 54 acre-feet of water remained in the Pre-Paralta accounts and 36 acre-feet of public water credits were available. Most of this water has been reserved by the jurisdictions for projects that are awaiting final planning department approval. No additional water will be allocated to the jurisdictions for water permits until Cal-Am's water production shortfall identified in State Order 95-10 is satisfied.

Permits Issued for Projects Not Served by Cal-Am

New construction is occurring, especially in the hillsides of Carmel Valley, along Highway 68, and along the coastline in Seaside and Sand City. Water for these areas comes from sources outside of the Cal-Am system. Water companies whose source of water is not derived from the Carmel River are not subject to Order 95-10. A total of 167  water permits were issued for projects in these areas, representing approximately 57.8 acre-feet of projected annual water use.

Several Retrofit Programs in Effect

The District's three toilet retrofit programs are an integral part of its long-term conservation plan. Water saved by retrofitting toilets is set aside as permanent conservation savings to meet the Board's 1987 goal of achieving a 15 percent reduction in water use by the year 2020.

þ             Refunds Offered for Replacement of Inefficient Toilets

The Toilet Replacement Refund Program, jointly funded by the District and Cal-Am, offers up to $100 for each inefficient toilet replaced with an ultra low-flush model in a residential or commercial building. Commercial projects can receive the refund for up to 20 toilets per property. In 2000, refunds were issued for replacement of 926 toilets under this program. The District estimates that these retrofits represent about 21 acre-feet of water savings.

þ             Toilets Must be Retrofitted Upon Resale of Property

When a property is sold, staff inspects the building to make sure that inefficient plumbing fixtures have been replaced with ultra low-flush models. In 2000, about 1,962  properties transferred title within the District, and staff inspected over 998 of them for compliance with retrofit rules. The District estimates that about 43.8 acre-feet of water were saved through the replacement of about 1,904 toilets under this program in 2000.

þ     Visitor-Serving Businesses Must Replace Inefficient Toilets

District rules require that all visitor-serving facilities, such as hotels, restaurants, convention centers and service stations must have replaced inefficient toilets with ultra low-flush models by December 31, 2000.

Study to Determine Actual Savings Achieved by Toilet Retrofits

Each toilet replaced by an ultra-low flush model is believed to save about 0.0235 acre-feet (7,500 gallons) of water each year. A study begun in 2000 utilized water-use records of local Cal-Am customers that have retrofitted to determine how much water savings is actually achieved. The study should be completed in early 2001.

Water Credit Transfer Rules in Question

A preliminary study of water credit transfers completed in March indicated that in many cases water  savings at the donor sites were less than anticipated.  This prompted the Board of Directors to approve Ordinance No. 95, which established a 90-day moratorium on water credit transfers except for those where water credits from a commercial property are transferred to the same type of commercial user. The moratorium was extended twice, while a study was prepared to quantify how much water is saved when water credits are transferred. The study should be completed in early 2001.

Prior to adoption of Ordinance No. 95, water credits could be transferred from one commercial building site to another. Water credits from a commercial site could also be transferred directly into a jurisdiction's allocation, where it could be applied to any use the jurisdiction deemed appropriate.

Environmental Protection

About one-half of the Monterey Peninsula Water Management District's budget is spent to comply with federal and state regulations  protecting threatened species such as the Carmel River steelhead and California red-legged frog, also to prevent erosion of Carmel River banks, and to monitor ground and surface water levels throughout the District.

Protecting Carmel River Steelhead a Priority

The Carmel River steelhead population has increased over the past 10 years. Despite progress locally, steelhead are listed as threatened species under the federal Endangered Species Act in many areas in California, including the Carmel River. Water Management District fishery programs focus on maintaining a healthy environment for steelhead spawning and rearing. District staff coordinate with Cal-Am and the California Department of Fish and Game to control the amount of water released from reservoirs and pumped from wells so that adequate river flow is maintained for fish throughout most of the year.

Steelhead Numbers on the Rise

The District's automatic fish counter at San Clemente Dam recorded 472 fish between December 1999 and May 2000, which is higher than the 405 fish counted the previous year. The adult steelhead population shows an increasing trend over the last 10 years, indicating that the population continues to recover from the impacts of the 1987-1991 drought.

In October 2000, District staff conducted a survey of juvenile steelhead below Los Padres Dam. Overall, population density in 2000 was significantly higher than levels recorded in 1999, averaging 195 fish per 100 feet of stream.

Improvements at Sleepy Hollow Steelhead Rearing Facility

A cooling tower was constructed at the Sleepy Hollow Steelhead Rearing Facility to maintain a safe water temperature in the rearing channel during hot summer months. In addition, a protective canopy of bird-net framing was built over the rearing channel to protect fish from predation. Since the rearing facility is not staffed 24 hours per day, an alarm system will be installed in 2001 to alert staff to any mechanical or electrical problems that occur at the facility.

Due to construction of the cooling tower, no fish could be held at the facility in 2000. The facility, designed to hold up to 64,000 juvenile steelhead, is intended to hold fish rescued from drying reaches of the river until streamflow improves and they can be released back into the river.

Fish Rescue Operations Continue

District staff conducted 35 rescue operations in 2000, capturing 7,518 steelhead from drying reaches of the Lower Carmel River. The rescued fish were transported to permanent habitat downstream of San Clemente Dam. Only about 0.4 percent of the rescued fish died during transport.

Federal and State Grant Funds Received

The District received grant funds of $54,660 for three projects to improve environmental conditions for Carmel River steelhead. The money will fund modifications to the Carmel River channel, improvements at Rancho San Clemente Pond and a project to remove gravel from San Clemente Reservoir and inject it elsewhere to improve spawning habitat. The funds came from the California Coastal Salmon Recovery Program.

Spawning Gravel Placed in River

In an ongoing effort to restore steelhead spawning habitat, District staff in March injected 225 tons of gravel into the spillway at Los Padres Dam. The gravel will move downstream and help to replenish gravel that was placed there in 1993 and 1996, but was displaced by high flows in 1998 and 1999. Funding was part of a grant received in 1992 from the California Department of Fish and Game that requires the District to inject gravel below the Los Padres and San Clemente dams each year.

Protecting the California Red-Legged Frog

Work continued on development of a Habitat Conservation Plan (HCP) to identify how water production is impacting the red-legged frog and other species, and to identify changes that could be made to alleviate or reduce impacts. Preparation of the HCP is being funded by Cal-Am and a group of 13 private water pumpers. District staff is providing technical assistance, including mapping riparian habitat types between San Clemente Dam and the Carmel River Lagoon.

Staff also worked with a consultant to survey areas of the Carmel River that will be used to characterize and monitor red-legged frog habitat as part of the biological assessment of impacts of the proposed Carmel River Dam and Reservoir Project and the Plan B alternative.

Riverbank Restoration and Revegetation Projects

District staff manage the Carmel River, working to establish a stable river channel flanked by native riparian vegetation that will provide habitat for wildlife and a barrier against erosion. In 2000, staff assisted private property owners with riverbank restoration projects, and improvements were made at District restoration sites. A representative from the National Marine Fisheries Service expressed support for restoration methods applied at District project sites, which improved habitat conditions for steelhead.

School Children Participate in Revegetation Project

A section of the All Saints Restoration Project was revegetated with the help of eighth grade science students from the All Saints Day School. District staff conducted a series of in-class and field presentations focused on Carmel River hydrology, revegetation methods and plant monitoring. Students later helped District staff to install native riparian plants in the project area next to the school.

District staff installed drip irrigation lines and completed revegetation work on remaining portions of the restoration project, which covers 2,000 feet of the Carmel River along 15 privately owned properties. Graded slopes were covered with a seed mix of native grasses, and lower slopes with willow and cottonwood cuttings taken from other areas of the Carmel River.

At the All Saints Restoration Project site, large logs were installed along the streambanks to increase protective cover for aquatic habitat. Four Western pond turtles and several steelhead were later observed in areas where the logs had been installed

Assisted Property Owners with Riverbank Repairs

District staff prepared post-construction reports on 16 streambank repair projects completed in 1999 by private property owners. Staff inspected the project sites and met with property owners to assess whether permit conditions had been met and if additional work was needed. The reports were submitted to the U.S. Army Corps of Engineers (Corps), which has authorized the District to oversee the permitting process for property owners along the Carmel River.

Throughout the year, the District supplied about 511 willow, cottonwood and sycamore cuttings to property owners engaged in bank restoration projects.

Carmel River Erosion Hotline In Operation

The Hotline is a telephone messaging system that is updated daily, providing information about flow in the Carmel River. During high flow periods, callers hear current assessments of the bank erosion potential, and learn where to obtain sandbags.

Submitted Application for Long-Term U.S. Army Corps Permit

Local, state and federal agencies commented on the District's application to the Corps for a long-term permit allowing maintenance, repair and restoration activities along the Carmel River.   At the Corps’ request, the District provided additional information and analysis.  If approved, the permit would allow the District to carry out several activities, including vegetation management, riparian habitat restoration, streambank stabilization and fisheries enhancement between the Pacific Ocean and San Clemente Dam.

Propagated Plants from Seeds Collected in Carmel River Area

To diversify river restoration projects, District staff collect seed from native streamside trees and shrubs for propagation by a local nursery. When seedlings are large enough, they are transplanted to the District's restoration sites. In 2000, about 111 native riparian seedlings such as dogwood, current, sycamore, box elder and elderberry  were planted.

Monitored Growth of Streamside Vegetation

The District monitors the long-term effects of groundwater pumping on vegetation in the Carmel River basin. During the dry season, District staff took weekly measurements of leaf moisture stress and soil moisture, and conducted annual surveys to document height, growth rate and survival of plants at District restoration project sites.

Expanded Avian Monitoring Program

The avian monitoring program was expanded in Spring 2000 by initiation of an annual mist-netting campaign at six locations along the riparian corridor. This program will document the number and type of breeding birds utilizing Carmel River riparian habitat for nesting, foraging and cover. The information collected demonstrates how wildlife is benefiting from the Districts' restoration projects.

Monitored Water Levels and Water Quality

Maintained Twelve Streamflow Monitoring Sites

District staff maintained three streamflow monitoring stations on the Carmel River and nine stations on the major tributary streams that flow into it.

Monitoring Surface Water Quality in the Carmel River

In 2000, District staff maintained nine water temperature recording stations and measured water quality parameters at three sites along the Carmel River. This information is used to assess the suitability of habitats for steelhead and other aquatic organisms.

Monitoring Conditions at Carmel River Lagoon

The District has monitored surface water levels in the Carmel River Lagoon since 1987.   In addition, water quality at the Lagoon is assessed twice a month.

No Nitrate Contamination Detected in Carmel Valley Aquifer

Monitoring data indicated that storage in the Carmel Valley Aquifer remained relatively full during most of 2000. Results from water quality monitoring samples indicate that water quality in the aquifer continues to be well within the State drinking water standard for nitrate. No indications of seawater intrusion were found at the coastal monitor well network.

No Signs of Seawater Intrusion in Coastal Area of Seaside Basin

Because of State Board limits on pumping from the Carmel River basin, Cal-Am has increased pumping from the Seaside basin. While there are indications that pumping is approaching the safe yield of the basin, water quality samples from the District's 30 monitoring wells in the coastal area of the Seaside Groundwater basin show that no seawater intrusion has occurred in the two principal aquifer zones within the basin.

Financial Report - Fiscal Year 1999-2000

REVENUES................................ $3,591,712

User Fees........................................ 1,582,140

Property Taxes................................... 698,352

Other Fees/Reimbursements .............. 429,745

Investments....................................... 375,177

Connection Charges........................... 504,508

Grants.................................................... 1,790

User Fees - Paid by California-American and Seaside Municipal water system customers appear on water bills as "MPWMD Fee." Currently, 7.125% of the water bill.

Connection Charge - A capacity charge paid when a water permit is obtained.

About $18,492 per acre-foot of water.

Property Taxes - The District receives 0.023926% of the $1.00 parcel tax assessed to support special districts.

Other Fees/Reimbursements - Includes water and well permit processing charges, fees for staff research and photocopying, reimbursements for Carmel River Dam Project Supplemental Environmental Impact Report and the Toilet Replacement Refund Program.

Investments - Earnings on assets paid by banks and investment firms.

Grants - Reimbursements to the District from outside agencies.

EXPENDITURES....................... $5,429,498

Carmel River Mitigations................. 2,756,231

Water Augmentation....................... 2,292,771

Water Conservation........................... 380,496

Carmel River Mitigations - Fishery, vegetative, erosion control, water resources monitoring and other projects to offset damage resulting from water extractions along the Carmel River.

Water Augmentation - Includes research, environmental studies and other activities related to development of water supply projects.

Water Conservation - Supports conservation education, toilet retrofit program and water permit compliance activities.

Plans for Future Capital Improvements and for Maintenance and Operation of  Those Improvements

The District is not a potable water purveyor. Water supplies are provided by public utilities, mutual water companies and privately owned wells. The District began selling reclaimed water in 1994 from the CAWD/PBCSD Wastewater Reclamation Project. Negotiations are underway to expand project storage by utilization of the Forest Lake Reservoir in Del Monte Forest. This expansion and other possible future reclamation plant improvements could be funded by issuance of public bonds by the District as was done in 1992 to fund initial construction of the reclamation facility, or by a Mello-Roos financing mechanism.

An Operation and Maintenance Reserve Fund exists to help pay for routine as well as extraordinary repairs and replacement. The reserve was $215,110 on June 30, 2000. The reclamation project also has a Replacement and Renovation Fund that contained $167,972 on June 30, 2000. The annual accrual in this fund of $5,300 is sized to achieve a fund balance of $1,000,000 in 2022, assuming 6 percent annual interest.

Aside from the wastewater reclamation project, the District continues to plan for a range of capital improvements.

Methods for Financing Capital Improvements

The District continues to evaluate various means of financing water supply projects. At such time as the District Board defines specific projects for the agency to pursue, staff will consider which of the various funding mechanisms permitted in its authorizing legislation (State of California Water Code Section 118 et seq.) is most appropriate.

Financial Analysis of the Water Utility Systems Operated by the District

The District currently does not operate any water utility systems for which a financial analysis could be conducted. The only financial involvement of the District in water utility systems centers on the reclamation project that is operated by the Carmel Area Wastewater District (CAWD). The audited financial statements for the CAWD/PBCSD Wastewater Reclamation Project for the year ending June 30, 2000  are available for inspection at the District office.

Ground Water Zones

In January 1980, the District Board initiated the formation of a District wide groundwater charge zone by adopting Resolution No. 80-2. The District found in the resolution that it was not the intent of the District to use the groundwater charge zone to raise revenues, but as a mechanism to trigger the powers in the District law regarding well registration, metering and reporting.