ITEM:		PUBLIC HEARINGS
14.	CONSIDER ADOPTION OF APRIL THROUGH JUNE 2005 QUARTERLY WATER SUPPLY STRATEGY AND BUDGET
Meeting Date:			March 21, 2005	Budgeted:	N/A
From:			David A. Berger,	Programs/	Aquatic Resources and Hydrologic Monitoring
			General Manager	Line Item Nos.: 2.4-7 and 2.6-3B
Prepared By:			David Dettman	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: Notice of Exemption, CEQA, Article 19, Section 15301 (Class 1)
ESA Compliance: Consistent with the September 2001 Conservation Agreement between the National Marine Fisheries Service and California American Water to minimize take of listed steelhead in the Carmel River
SWRCB Compliance: Consistent with SWRCB WR Order Nos. 95-10, 98-04, 2002-0002

SUMMARY: The Board will accept public comment and take action on the April through June 2005 Water Supply Strategy and Budget for the California American Water (Cal-Am) Water Distribution System (WDS). The proposed budget, Exhibit 14-A, is relatively conservative and assumes above normal inflow conditions. Specifically, the budget utilizes inflows that are averages of the normal and above normal monthly values and are expected to be equaled 50% and 38% of the time at San Clemente Dam. The proposed strategy and budget is designed to maximize the long-term production potential and protect the environmental quality of the Carmel River and Seaside Ground Water Basins.

Exhibit 14-A shows the anticipated production by Cal-Am for each production source. Exhibit 14-A also shows actual production values for the water year to date. Please note that the anticipated production values shown assume an annual Cal-Am production of 15,285 acre-feet (AF), with no more than 11,285 AF from the Carmel River Basin and no more than 4,000 AF from the coastal subareas of the Seaside Basin. The production from the Carmel River Basin is consistent with SWRCB Order Nos. 95-10, 98-04 and 2002-0002.

For the first five months of Water Year 2005 (October 2004 – February 2005), Cal-Am’s production from the Carmel River was less than the SWRCB-based production target by 633 AF or 12%. This does not include the injection of 264 AF of water from the Carmel River Basin into the Seaside Groundwater Basin as a result of the District’s Test Injection/Recovery Project in the Seaside area of former Fort Ord. The continuation of Cal-Am conservation rates, and wet weather conditions have reduced community water use and helped the community to comply with the annual SWRCB production limit.

RECOMMENDATION: The Board should receive public input, close the Public Hearing, and discuss the proposed water supply budget. District staff recommends adoption of the proposed budget. The budget is described in greater detail in Exhibit 14-B, Quarterly Water Supply Strategy Report: April – June 2005.

BACKGROUND: The Quarterly Water Supply Strategy and Budget pertains to production within the Cal-Am Water Distribution System for the three-month period of April, May, and June 2005. This strategy was developed cooperatively with staff from the District, Cal-Am, and the California Department of Fish and Game (CDFG) and the National Marine Fisheries Service (NOAA Fisheries). Based on the above normal meteorological and hydrologic conditions in the upper watershed for the year to date, it was decided to assume that inflow conditions during Spring 2005 would range between median and above normal levels.

Based on the fact that San Clemente and Los Padres Reservoirs were full and spilling and streamflow in the Carmel River at the Don Juan Bridge gaging station exceeded 500 cfs on March 1, 2005, it was agreed that for the remainder of March and in April 2005, Cal-Am's diversions from the upper Carmel Valley would be up to 4.0 cubic feet per second (cfs), including combined production from the Russell Wells Nos. 2 and 4 and other sources upstream of, and including Scarlett Well No. 8. In May 2005, the proposed budget allows Cal-Am to divert up to 1.5 cfs from its combined sources upstream of and including Scarlett Well No. 8. During June 2005, the proposed budget allows Cal-Am a net diversion of no more than 30 AF in June from the Russell Wells Nos. 2 and 4. This operation will facilitate production at minimal levels in recognition of Cal-Am’s Interim Drawdown Project at San Clemente Dam and the 2001 Conservation Agreement with NOAA Fisheries, and commencement of the “low flow” season in early June 2005. The operation of Cal-Am wells in the upper Carmel Valley is based on the assumption that daily inflows will average 110 cfs during April and 50 cfs during May 2005. If actual inflows are more or less than projected for the budget period, the group will reconvene and adjust the diversion and release rates accordingly. These adjustments will take into account flows needed for steelhead emigration and egg incubation.

In April and continuing through June 2005, Cal-Am will gradually shift its production from the Carmel River Basin to wells in the Seaside Basin, associated with anticipated declining rainfall and runoff in the Carmel Basin. Accordingly, more and more of the water needed to serve Cal-Am customers will be produced from the Seaside Basin as the dry season progresses. For the remainder of March 2005 there will be sufficient flow in the Carmel River to allow diversions to be made for the Seaside Injection/Recovery Project.

Rule 101, Section B of the District Rules and Regulations requires that a Public Hearing be held at the time of determination of the District water supply management strategy. Notice of this Public Hearing has been published in The Herald. Adoption of the quarterly water supply strategy and budget is categorically exempt from the California Environmental Quality Act (CEQA) requirements as per Article 19, Section 15301 (Class 1). A Notice of Exemption will be filed with the Monterey County Clerk's office, pending Board Action on this item.

EXHIBITS

14-A Cal-Am Water Distribution System: Quarterly Water Supply Strategy and Budget January-March 2005

14-B Quarterly Water Supply Strategy Report: January - March 2005

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