ITEM:		PUBLIC HEARINGS
15.	CONSIDER ADOPTION OF JANUARY THROUGH MARCH 2009 QUARTERLY WATER SUPPLY STRATEGY AND BUDGET
Meeting Date:			December 8, 2008	Budgeted:	N/A
From:			Darby Fuerst,	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 January through March 2009 Quarterly Water Supply Strategy and Budget for California American Water’s (CAW) Main and Laguna Seca Subarea Water Distribution Systems (WDS). The proposed budgets, which are included as Exhibit 15-A and 15-B, show monthly production by source of supply that is required to meet projected customer demand in CAW’s Main and Laguna Seca Subarea systems, i.e., Ryan Ranch, Bishop, and Hidden Hills, during the January through March 2009 period. The proposed strategy and budgets are designed to maximize the long-term production potential and protect the environmental quality of the Seaside Groundwater and Carmel River Basins.

Exhibit 15-A shows the anticipated production by CAW’s Main system for each production source and the actual production values for the water year to date through the end of November 2008. Please note that the anticipated production values assume that CAW annual main 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 conservatively assumed that dry inflow conditions will occur.

Exhibit 15-B shows the anticipated production by CAW’s Laguna Seca Subarea system for each production source and the actual production values for the water year to date through the end of November 2008. Please note that the anticipated production values assume that CAW’s annual Laguna Seca Subarea systems’ production will not exceed 345 AF from the Laguna Seca Subarea of the Seaside Groundwater Basin. This total is consistent with the Seaside Basin adjudication decision.

It should be noted that, because of the uncertainty associated with predicting rainfall and runoff for the upcoming winter quarter, the anticipated monthly production may change. Specifically, if the rainfall and runoff amounts in the Carmel River Basin are less than projected under the assumed dry conditions, then production from the Seaside Basin may need to be increased. Similarly, if rainfall and runoff amounts are greater than projected and streamflow in the Carmel River exceeds the instream flow requirements specified by National Marine Fisheries Service (NMFS), a portion of the “excess” water will be diverted by CAW for injection into the Seaside Groundwater Basin as part

of the Phase 1 ASR Project. The amount of water diverted from the Carmel River that is treated and delivered for injection will also depend on customer demand and the condition of CAW’s wells in the Carmel Valley at that time.

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 budgets are described in greater detail in Exhibit 15-C, Quarterly Water Supply Strategy Report: January – March 2009.

BACKGROUND: The Quarterly Water Supply Strategy and Budget pertains to production within CAW’s Main and Laguna Seca Subarea systems for the three-month period of January, February, and March 2009. Staff from the District, CAW, and California Department of Fish and Game (CDFG), cooperatively developed this strategy on December 2, 2008. Based on current reservoir conditions, the lack of significant rainfall since February 2008, and early season runoff projections, it was agreed that “dry” year inflows would be used to assess CAW’s operations and set monthly production targets for CAW’s systems.

To meet customer demand in its main system, CAW will produce approximately 50, 80, and 90 AF of groundwater from its wells in the Upper Carmel Valley during January, February, and March 2009, respectively. Similarly, CAW will produce approximately 990, 890, and 1,030 AF of groundwater from its wells in the Lower Carmel Valley during January, February, and March 2009, respectively. Of this production, it is assumed that 90, 110, and 125 AF would be diverted from the Carmel River and injected into the Seaside Groundwater Basin during the January through March 2009 period.

It was also agreed that, subject to rainfall and runoff conditions in the Carmel River basin, CAW would produce no water from the Coastal Subareas of the Seaside Basin during this period and would allow the basin to recharge. In addition, it was also agreed that CAW would produce 16, 14, and 19 AF of groundwater from its wells in the Laguna Seca Subarea for its customers in the Ryan Ranch, Bishop, and Hidden Hills systems during this period. Lastly, it was agreed that CAW would not divert any water from San Clemente Reservoir through the Carmel Valley Filter Plant during this quarter. CAW will operate its wells in the Lower Carmel Valley 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

15-A Quarterly Water Supply Strategy and Budget for CAW Main System: January - March 2009

15-B Quarterly Water Supply Strategy and Budget for CAW Subsystems: January - March 2009

15-C Quarterly Water Supply Strategy and Budget Report: January – March 2009

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