ITEM:		PUBLIC HEARINGS
17.	CONSIDER ADOPTION OF OCTOBER THROUGH DECEMBER 2007 QUARTERLY WATER SUPPLY STRATEGY AND BUDGET
Meeting Date:			September 17, 2007	Budgeted:	N/A
From:			David A. Berger,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Darby Fuerst	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 and June 2006 Conservation Agreements between the National Marine Fisheries Service and California American Water to minimize take of listed steelhead in the Carmel River and Consistent with SWRCB WR Order Nos. 95-10, 98-04, and 2002-0002.

SUMMARY: The Board will accept public comment and take action on the October through December 2007 Quarterly Water Supply Strategy and Budget for the California American Water (CAW) main Water Distribution System (WDS). The proposed budget, Exhibit 17-A, is based on “critically-dry” inflow conditions for the first quarter of Water Year 2008 (WY 2008). Specifically, the budget utilizes monthly inflows that are based on the inflows that occurred in Water Year 1990 at the San Clemente Dam site. The proposed strategy and budget is designed to maximize the long-term production potential and protect the environmental quality of the Seaside Groundwater and Carmel River Basins.

Exhibit 17-A shows the anticipated production by CAW for each production source. Exhibit 17-A also shows actual production values for the water year to date. Please note that the anticipated production values assume that CAW annual system production will not exceed 14,789 acre-feet (AF), including 3,504 AF from the coastal subareas of the Seaside Groundwater Basin and 11,285 AF from the Carmel River Basin. The total from the Carmel River Basin is consistent with State Water Resources Control Board (SWRCB) Order No. 95-10 and the total from the Seaside Groundwater Basin is consistent with the Seaside Basin adjudication decision. For the purpose of this budget, it is assumed that no water from the Carmel River Basin will be diverted and injected into the Seaside Groundwater Basin during the October through December 2007 period.

RECOMMENDATION: The Board should receive public input, close the Public Hearing, and discuss the proposed quarterly water supply budget. District staff recommends adoption of the proposed budget. The budget is described in greater detail in Exhibit 17-B, Quarterly Water Supply Strategy Report: October – December 2007.

BACKGROUND: The Quarterly Water Supply Strategy and Budget pertains to production within CAW’s main WDS for the three-month period of October, November, and December 2007. This strategy was developed cooperatively by staff from the District, CAW, California Department of Fish and game (CDFG), and the National Marine Fisheries Service (NMFS) on September 7, 2007. Based primarily on the assumption that “critically-dry year” inflows will continue during the October through December 2007 period and that the “low-flow” restrictions on CAW’s operations in the Upper Carmel Valley (UCV) will be in effect, it was agreed that CAW would produce no more than 31, 30 and 31 AF in October, November, and December from its wells in the UCV, respectively. In addition, it was agreed that CAW would produce approximately 450, 400 and 350 AF in October, November, and December from its wells in the coastal subareas of the Seaside Basin during this period, respectively. The projected diversions from the UCV reflect the maximum production allowed during the low-flow period. The projected production from the coastal subareas of the Seaside Basin during the October is more than was produced in September and reflects the beginning of a new water year, i.e., accounting period. The projected amounts for November and December assume cooler periods and less customer demand.

It was also agreed that CAW would not divert any water from San Clemente Reservoir through the Carmel Valley Filter Plant during this quarter. The remainder of the water needed to meet projected customer demand would be provided by CAW’s wells in the Lower Carmel Valley (LCV). Specifically, it was agreed that Cal-Am would produce 842, 641, and 580 AF from its LCV wells in October, November, and December, respectively. CAW will operate its wells in the LCV in a downstream-to-upstream order. 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.

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

17-A Quarterly Water Supply Strategy and Budget: October - December 2007

17-B Quarterly Water Supply Strategy and Budget Report: October - December 2007

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