ITEM:		PUBLIC HEARINGS
22.	CONSIDER ADOPTION OF JULY THROUGH SEPTEMBER 2009 QUARTERLY WATER SUPPLY STRATEGY AND BUDGET
Meeting Date:			June 15, 2009	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 July through September 2009 Quarterly Water Supply Strategy and Budget for California American Water’s (CAW or Cal-Am) Main and Laguna Seca Subarea Water Distribution Systems (WDS). The proposed budget, which is included as Exhibit 22-A and 22-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 July through September 2009 period. 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 22-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 May 2009. Please note that the anticipated production values assume that CAW annual Main system production will not exceed 14,474 acre-feet (AF), including 3,191 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 and recent action by the Seaside Watermaster Board to reduce the operating yield of the basin by 10 percent in Water Year (WY) 2009. For the purpose of this budget, it is conservatively assumed that below normal inflow conditions will occur.

Exhibit 22-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 May 2009. Please note that the anticipated production values assume that CAW’s annual Laguna Seca Subarea systems’ production will not exceed 271 AF from the Laguna Seca Subarea of the Seaside Groundwater Basin. This total is consistent with the Seaside Basin adjudication decision and recent action by the Seaside Watermaster Board to reduce the operating yield of the basin by 10 percent in WY 2009.

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 22-C, Quarterly Water Supply Strategy Report: July – September 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 July, August, and September 2009. Staff from the District, CAW, California Department of Fish and Game (CDFG), and NMFS cooperatively developed this strategy on June 8, 2009. Based on current reservoir conditions, it was agreed that “below normal” 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 31, 31, and 30 AF of groundwater from its wells in the Upper Carmel Valley during July, August, and September 2009, respectively. Similarly, CAW will produce approximately 970, 970, and 830 AF of groundwater from its wells in the Lower Carmel Valley during July, August, and September, respectively.

It was also agreed that, CAW would produce 500 AF each month from the Coastal Subareas of the Seaside Basin during this period. In addition, it was also agreed that CAW would produce 33, 33, and 31 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. The proposed budget also includes recovery of 182 AF of water that was injected into the Seaside Groundwater Basin during the December 2008 – May 2009 injection season. Approximately 60 AF per month will be recovered from the Seaside Basin and provided to CAW for customer service during the July through September 2009 period. This will allow CAW to reduce its diversions from the Carmel River during this period.

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

22-A Quarterly Water Supply Strategy and Budget for CAW Main System: July - September 2009

22-B Quarterly Water Supply Strategy and Budget for CAW Subsystems: July - September 2009

22-C Quarterly Water Supply Strategy and Budget Report: July - September 2009

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