EXHIBIT 19-D

ITEM: IX INFORMATIONAL ITEMS/STAFF REPORTS

MEETING DATE: NOVEMBER 16, 1998

P. STATUS REPORT ON PRODUCTION FROM THE SEASIDE GROUNDWATER BASIN

SUMMARY: In response to recent developments on former Fort Ord property that is within the City of Seaside’s jurisdiction, Director Ely prepared a letter that documents his concerns regarding groundwater production from the Seaside Basin (Exhibit P-1). These concerns center on the amount of pumping from the Seaside Basin that occurred in Reporting Years (RYs) 1996 and 1997, and the potential for long-term damage to the basin. More specifically, Director Ely’s concerns are focused on recent upgrades to the former Fort Ord golf courses, the Bayonet and Blackhorse courses, that are currently managed by the BSL Golf Group under contract with the City of Seaside. The questions raised in this regard refer to the potential for increased groundwater production from the Seaside Basin to support the observed landscaping modifications and changes in operating procedures at the golf courses, and the possible impacts this might have upon the Seaside Basin. The letter also notes that a new well has been installed to support the golf course operation. Information relevant to these concerns is provided in the discussion below.

DISCUSSION: In 1997, the Monterey Peninsula Water Management District (District) completed a comprehensive study update of groundwater conditions in the coastal subareas of the Seaside Basin, as documented in the report by the District’s consultant, Fugro West, Inc., entitled Seaside Coastal Groundwater Subareas Phase III Update, dated September 1997. This study developed a revised long-term or “safe” yield estimate of the coastal subareas of 4,375 acre-feet (AF) per year, and the report documented that recent groundwater extraction practices were exceeding this estimate. The recent increased extractions from the coastal subareas are primarily due to production from the Paralta well, which was put into full operation in April 1995. From July 1995 to June 1997, the Paralta well produced an average of 1,988 AF per year in this two-year period. This level of production can be attributed in part to California-American Water Company’s (Cal-Am) desire to test the well and its new ozone treatment facility capabilities, and also to the increased pressure that has been placed on Cal-Am to maximize production from the Seaside Basin, as per State Water Resources Control Board (SWRCB) Order 95-10. Intensive monitoring by the District during this period has allowed for a better basis upon which to develop our current understanding of the basin’s water resources capabilities and limitations.

A summary of production from the coastal subareas, including that from Cal-Am wells and from the former Fort Ord golf course well, is provided as Exhibit P-2. This table shows that total production from the coastal subareas exceeded the long-term yield estimate in RYs 1996 and 1997 by an average of approximately 20%. However, subsequent to the 1997 report the District, through the Quarterly Water Supply Budget Strategy process, has been focusing on reducing extractions to within the basin’s long-term yield estimate. As also shown in Exhibit P-2, the total production for Reporting Year 1998 of 4,216 AF was 159 AF less than the long-term yield estimate. In addition, District staff have been working with Cal-Am to develop ways to optimize municipal production to help reduce the recent observed water level declines, and to more efficiently utilizing the basin’s resources. Supplementary information regarding this work is provided in Exhibit P-3. Cal-Am is also considering options for developing new wells or rehabilitating existing wells to better optimize its ground water production from the basin.

The production data from the former Fort Ord golf course well (Exhibit P-2), indicates that this production has been generally about 10% or less of total coastal subarea production. However, because the present water supply circumstances within the District are resulting in pressures that are pushing production in the basin towards its allowable limit on a consistent basis, any potential for increased extractions must be closely monitored by the District. In this regard, the District submitted comments and concerns regarding the proposal for a new well to serve the golf courses in a letter to the City of Seaside dated May 28, 1998 (Exhibit P-4). Subsequently, District staff met with city representatives to clarify and resolve these concerns, and the city representatives have indicated that they will provide a follow up response and documentation. Accordingly, additional information from Seaside regarding this matter is anticipated.

The new golf course well has been constructed and is presently being equipped for operation. Thus far, no production has been reported for the new well. It is District staff’s understanding that once the new well is fully operational, it will become the primary supply source to the golf courses, and the old well will be used only as a back up supply in the event production problems are encountered at the new well.

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