ITEM:		PUBLIC HEARINGS
8.	CONSIDER ADOPTION OF OCTOBER THROUGH DECEMBER 2005 QUARTERLY WATER SUPPLY STRATEGY AND BUDGET
Meeting Date:			September 19, 2005	Budgeted:	N/A
From:			David A. Berger,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Darby Fuerst/	Cost Estimate:	N/A
			Dave Dettman
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, Consistent with SWRCB WR Order Nos. 95-10, 98-04, 2002-0002

SUMMARY: The Board will accept public comment and take action on the October through December 2005 Water Supply Strategy and Budget for the California American Water (Cal-Am) Water Distribution System (WDS). The proposed budget, Exhibit 8-A, is based on “above-normal year” inflow conditions for the first three months of the Water Year 2006 (WY 2006). Specifically, the budget utilizes monthly inflows that are expected to be exceeded 25 to 38 percent of the time at San Clemente Dam. The proposed strategy and budget is designed to maximize the production potential and protect the environmental quality of the Carmel Valley basin.

Exhibit 8-A shows the anticipated production by Cal-Am for each production source. Exhibit 8-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 not exceeding 11,285 AF from the Carmel River Basin, which is consistent with SWRCB Order Nos. 95-10 and 98-04. The budget assumes a production goal of 1,268 AF from the Seaside Basin for the first three months of WY 2006. This is consistent with a strategy of gradually reducing production from the coastal portion of the Seaside Basin and represents a reduction of about 6 percent as compared to budgets for this period in previous years.

For the purpose of this budget it is assumed that no water from the Carmel River Basin will be injected into the Seaside Basin during the October through December 2005 period.

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 8-B, Quarterly Water Supply Strategy Report: October – December 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 October, November, and December 2005. This strategy was developed cooperatively with staff from the District, Cal-Am, National Marine Fisheries Service (NMFS), and the California Department of Fish and Game (CDFG). With continuance of the low-flow conditions, as defined in SWRCB Order No. 2002-0002, the proposed budget does not allow Cal-Am to divert any water, via direct diversion from San Clemente Dam to the Carmel Valley Filter Plant, except in the case of emergency conditions. This limitation is consistent with the 4d rules adopted by NMFS to protect steelhead rearing habitats and with the Conservation Agreement (Agreement) between NMFS and Cal-Am, which governs diversions during low-flow periods.^[1] For purposes of the Agreement, the low-flow periods are defined as times when streamflow in the Carmel River at the MPWMD gage at Don Juan Bridge in Garland Park is less than 20 cubic feet per second (cfs) for five consecutive days. This year, streamflow receded below 20 cfs at this location during the last week of July, and is projected to remain below the 20 cfs threshold until sometime in December 2005. When flows exceed the 20 cfs threshold in December, the group will reconvene and adjust the diversion and release rates accordingly.

The proposed budget allows Cal-Am to divert a maximum of 0.5 cfs/day (31 AF/month) from its sources upstream of, and including, Scarlett Well No. 8. This operation takes into account limitations imposed by Cal-Am’s Interim Drawdown Project at San Clemente Dam and the 2001 Conservation Agreement with the NMFS.

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

8-A Quarterly Water Supply Strategy and Budget: October-December 2005

8-B Quarterly Water Supply Strategy and Budget Report

U:\staff\word\boardpacket\2005\2005boardpackets\20050919\PubHrgs\08\item8.doc

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^[1] Under the 4d rules adopted by the National Marine Fisheries Service on July 10, 2000, the Take Guidance Section, Item E. (page 42472 of the FR Vol. 65, No 132) prohibits removing water or altering streamflow when it significantly impairs spawning, migration, feeding or other essential behavioral patterns.