ITEM:

INFORMATIONAL ITEMS/STAFF REPORTS    

 

21.

QUARTERLY WATER SUPPLY PROJECT STATUS REPORT

 

Meeting Date:

October 19, 2009

Budgeted:

N/A

 

 

 

 

From:

Darby Fuerst,

Program/

N/A

 

General Manager

Line Item No.:

 

 

Prepared By:

Henrietta Stern

Cost Estimate:

N/A

 

General Counsel Approval:  N/A

Committee Recommendation: N/A

CEQA Compliance: N/A

 

This is a quarterly report on Monterey Peninsula Water Management District water supply augmentation projects for the July through September 2009 period.  The next quarterly report will be written in January 2010.  Limited background information is provided herein.  A detailed historical overview of previous action may be found in previous years’ reports.  Detailed quarterly updates are typically prepared for the January, April, July and October regular Board meetings.  An abbreviated monthly report on Strategic Plan objectives is provided at each regular Board meeting.  This information can be found by clicking on the pertinent agenda item on the District website at:

http://www.mpwmd.dst.ca.us/asd/board/meetings/meeting.htm. 

Updated weekly information is also available in the General Manager’s letter to the Board at:

http://www.mpwmd.dst.ca.us/gmletters/gmletters.htm.  An MPWMD Board Special Workshop on water supply alternatives was held on March 27, 2008, which provides good background information.  Please refer to the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20080327/0327agenda_rev.htm 

 

For the past several years, the MPWMD Board has identified water supply goals and objectives at Strategic Planning Workshops.  The most recent goals and objectives were adopted at the February 28, 2008 meeting as follows (original due dates shown in italics):

 

Goal: Determine and participate in long-term water supply solution(s)

Ø      LS1: Present to the Legislative Committee a briefing paper on the draft Cease and Desist Order (Draft CDO) [issued by SWRCB] (02/15/08)

Ø      LS2: Recommend to the Board for action a MPWMD position on the Draft CDO (02/28/08).

Ø      LS3: Lobby local, state and federal legislators and boards regarding the MPWMD position on the Draft CDO (prior to hearings on the Draft CDO).

Ø      LS4: Prepare and coordinate testimony for the Draft CDO hearing based on Board policy and direction (prior to hearings on the Draft CDO).

Ø      LS5: Refine and present to the Board the matrix of water supply alternatives (using the quantified supply target) (03/17/08).

Ø      LS6: Ensure that CAW presents updated water supply proposals, alternatives and timeline (03/27/08).

Ø      LS7: Prioritize water supply alternatives (04/21/08).

Ø      LS8: Ensure the remaining entities adopt a Memorandum of Understanding (MOU) for participation in the Monterey Bay Regional Water Solutions Task Force to evaluate regional water supply solutions (4/21/08).

Ø      LS9: Provide technical support or guidance to the Monterey Regional Water Pollution Control Agency (MRWPCA) for its Groundwater Replenishment Project in the Seaside Basin (ongoing).

 

Goal: Complete ASR Phase 1 and Expanded ASR Project(s)

Ø      ASR1: Notify and make a presentation to the Watermaster, informing them of MPWMD’s water storage rights (06/30/08).

Ø      ASR2: Conduct a dual-well injection test and report results to the Board (06/30/08).  

Ø      ASR3: Achieve consensus with CAW on final MPWMD and CAW Phase 1 ASR facilities design, including a schedule (08/01/08).

Ø      ASR4: Achieve consensus with CAW on the yield and schedule for the next phase of ASR expansion (08/01/08).

Ø      ASR5: Complete negotiations with CAW for joint ownership of water rights to obtain future ASR and other water rights permit(s) (08/01/08).

 

The following paragraphs describe action on the water supply objectives identified above in the July-September 2009 period, with discussion about events in early October 2009, if needed. For clarity, background information is provided for certain objectives.  The following paragraphs are organized as follows as certain objectives are related to the same subject: 

Ø      Draft CDO

Ø      Water Supply Alternatives

Ø      Complete ASR Phase 1 and Expanded ASR Project(s)

 

GOAL: DETERMINE AND PARTICIPATE IN LONG-TERM WATER SUPPLY SOLUTION(S)

 

Objectives for Draft Cease and Desist Order

 

On January 15, 2008, the SWRCB issued a draft Cease and Desist Order (Draft CDO) against CAW. The Draft CDO refers to SWRCB Order 95-10, issued in July 1995, and notes that compliance with Order 95-10  – that is, to find a replacement water supply to offset unlawful diversions from the Carmel River Basin – has not yet been achieved after 12 years.  The Draft CDO notes that diversion to serve the community continue to have adverse impacts to fish, wildlife and their habitat, with particular reference to federally protected species such as the Carmel River steelhead run.   The draft CDO proposed a cutback in CAW water diversions that would be equivalent to another 15% reduction from current community use beginning October 1, 2008 to a 50% reduction in community water use by the year 2014.  Extensive fines could be levied against CAW, which potentially could pass them on to the community, if compliance was not achieved.  Given that the Monterey Peninsula already has one of the lowest water use rates in the state, concerns have been expressed about the feasibility of the cutbacks in the Draft CDO and/or the economic and quality of life impacts to the community.

 

CAW protested the Draft CDO and was granted a formal hearing before the SWRCB, similar to a court case.  The District and several other parties filed the requisite paperwork to be parties in this proceeding.  The hearings in Sacramento were split into two parts: 

Ø      Part 1:  June 19 and 20, 2008; focus on compliance with Order 95-10 and state water code.

Ø      Part 2:  July 23-25, 2008 and August 7-8, 2008; focus on content of Draft CDO, and rationale for suggested changes. 

 

The SWRCB held a public hearing to take policy statements in Monterey on April 1, 2008. The District’s Public Outreach Committee also prepared an informational flier about the Draft  CDO that was mailed to all District households prior to the April 1, 2008 hearing.  A total of 35 people made presentations to the SWRCB officials present on April 1, with many more in attendance.  That same morning, MPWMD staff gave a presentation to the SWRCB Board on the Integrated Regional Watershed Management Plan.  

 

On July 27, 2009, the SWRCB issued a second version of the Draft CDO that amended the cut-back amounts and schedule, and set a September 2, 2009 workshop to receive public comment, limited to three minutes.  Written comments were due on August 26, 2009.  On September 16, 2009, the SWRCB issued a third version of the Draft CDO and set September 30, 2009 as the deadline to receive comments.  The SWRCB held a closed session on October 6, 2009 on the Draft CDO.  A full SWRCB Board meeting to rule on the Draft CDO scheduled for October 20, 2009.

. 

Objective LS1: Present to the Legislative Committee a Briefing Paper on the Draft CDO

 

Action in July-September 2009: None. Task completed on February 15, 2008, as scheduled. 

 

Objective LS2: Recommend to the Board for Action a MPWMD Position on the Draft CDO

 

Action in July-September 2009:  The Board met in closed session in August and September 2009 to provide direction to staff regarding District comments and its continued position opposed to the Draft CDO, as written, to be transmitted in August and September 2009 letters, and articulated at the SWRCB public hearing on September 2, 2009.   In May 2008, the Board had adopted Resolution No. 2008-08 in opposition to the Draft CDO at its May 19, 2008 meeting.    

 

Discussion/Background:  The Legislative Committee was formed in February 2008; members are Directors Dave Potter, Bob Brower and Judi Lehman.  It met throughout the spring of 2008 regarding the first version of the Draft CDO, and continues to meet as needed.  Information on the Legislative Advocacy Committee may be viewed on the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20080228/03/item3.htm. 

Information about the adopted resolution opposed to the Draft CDO may be viewed at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20080519/16/item16.htm.

 

Objective LS3: Lobby Local, State and Federal Legislators and Boards Regarding the MPWMD Position on the Draft CDO

 

Action in July-September 2009:  Ongoing.  The Board approved a contract with a government relations consultant, JEA and Associates, at its September 21, 2009 meeting through June 30, 2010.    

 

Discussion/Background:  Legislative Committee members have contacted elected representatives and SWRCB Board members, as allowed.  Notably, Assemblymember John Laird wrote the SWRCB on March 25, 2008, to request that the SWRCB defer action on the Draft CDO until after the California Public Utilities Commission (CPUC) issues the Environmental Impact Report (EIR) on the Coastal Water Project and evaluates alternatives to the Moss Landing desalination site.  Information on the most recent consultant contract with JEA and Associates may be viewed at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2009/20090921/09/item9.htm.

 

Objective LS4: Prepare and Coordinate Testimony for the Draft CDO Hearing Based on Board Policy and Direction

 

Action in July-September  2009:  The District transmitted letters dated August 26 and September 30, 2009 continuing to oppose  the Draft CDO, as written, due to factual errors and flawed assumptions as well as the potential to jeopardize the health, safety and welfare of the Monterey Peninsula.  This view was articulated at the SWRCB public hearing on September 2, 2009, and will be presented at any future hearing.   In addition, the District transmitted an August 12, 2009 news release about the potential effect of the Draft CDO on recently issued MPWMD Water Permits.  The District and community await the determination of the full SWRCB Board, on October 20, 2009.  It is noted that the SWRCB was scheduled to meet in closed session on October 6, 2009 to discuss the Draft CDO.

 

Discussion/Background:  Participation in the SWRCB hearing process in 2008 was an intensive effort led by District Counsel.  As directed by the Board, General Manager Darby Fuerst prepared written and oral testimony for the June 19-20, 2008 Part 1 hearings, accompanied by the District Engineer and District Counsel. A major effort by several members of District technical staff and Counsel in July and August 2008 included preparation of written testimony and many exhibits for the July 23-25 and August 8-9, 2008 hearings.  District staff members provided direct testimony and were cross examined at length at these hearings.  District Counsel and the General Manager, as directed by the Board, engaged in activities related to settlement negotiations and preparation of final briefs in October and November 2008, respectively.

 

Activities in 2009 did not include prepared testimony.  District Counsel, assisted by MPWMD staff, prepared letters commenting on the July 27 and September 16, 2009 versions of the Draft CDO.  The General Manager and General Counsel attended the September 2, 2009 public hearing in Sacramento. Copies of the MPWMD letters to the SWRCB may be viewed in the weekly reports for August 28 and October 2, 2009 as follows:

http://www.mpwmd.dst.ca.us/gmletters/2009/20090828/20090828.pdf 

http://www.mpwmd.dst.ca.us/gmletters/2009/20091002/20091002.pdf .

 

Objectives for Water Supply Alternatives

 

Objective LS5: Refine and Present to the Board the Matrix of Water Supply Alternatives, using the Quantified Supply Target

 

Action in July-September 2009: None. Task completed in March 2008.  

 

Discussion/Background:  The 2008 updated matrix was received by the Board at its March 17, 2008 meeting, as scheduled.  It incorporated the consultant information received in February 2008 and suggestions from an ad hoc Community Advisory Committee (CAC) received in September 2007, Minor refinements were made to the matrix for the March 27, 2008 special workshop on water supply alternatives.  Refer to the website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20080317/15/item15.htm  and

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20080327/0327agenda_rev.htm. 

Materials associated with each CAC meeting may be found at the District website at:

http://www.mpwmd.dst.ca.us/asd/board/committees/cac/2007/2007.htm.

For more information on the CAC itself, refer to the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2006/20061211/16/item16.htm.

 

Since Fall 2004, the District has prepared an annual Comparative Matrix of Water Supply Alternatives spreadsheet to compare various projects for subjects such as cost and financing, implementation timeline, water yield, environmental review, and others.  The current matrix includes three shore-based desalination projects as well as preliminary information on the ship-based Seawater Conversion Vessels (SCV) technology, now known as the “Offshore Desalination Project” (ODP).  The matrix also includes information on the MPWMD ASR Project and two projects featuring purified recycled water, one combined with desalination.  For background information on the 2004 and 2005 matrices, please refer to the District website at:

http://www.mpwmd.dst.ca.us/pae/matrix/matrix.htm.  To review the October 2006 matrix, visit:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2006/20061016/13/item13.htm.  

 

As part of development of the October 2006 matrix, in February 2006 the District Board approved retaining a team of water supply engineering design experts led by Bookman-Edmonston/GEI Consultants to conduct an independent technical evaluation of three proposed desalination projects previously reviewed in the 2004 and 2005 matrices: (1) Coastal Water Project (CWP) at Moss Landing proposed by CAW; (2) the Monterey Bay Regional Desalination Project at Moss Landing proposed by Pajaro/Sunny Mesa Community Services District; and (3) MPWMD 8,400 AFY desalination project proposed in the Sand City area.   This effort culminated in a report presented to the Board at its June 29, 2006 special workshop.  Copies of the full report are available at the District office, and presentation materials may be viewed at the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2006/20060629/0629agenda.htm . 

 

At the June 2006 workshop, a number of questions and comments were posed by the Board and public.  At its July 17, 2006 meeting, the Board determined it would defer action on amending the B-E/GEI contract and preparing a final report until after the September 25, 2006 Board Strategic Planning Workshop.  A summary of comments by the Board, the public, and project proponents, including copies of written comments received was provided to the Board in a memorandum from the District Engineer dated September 12, 2006.  At its October 16, 2006 meeting, the Board determined that it wished to add review of the ODP technology to the scope of work.  The Board approved a B-E/GEI contract amendment at its February 22, 2007 Board meeting to include formal responses to questions and more detailed information about the ODP technology.  For more information about the B/E-GEI contract review in January 2007, please refer to the District website at:  http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2007/20070222/17/item17.htm .

 

B/E-GEI prepared a draft report evaluating four desalination projects in the matrix, which was received by the Board on July 16, 2007.  Three sets of comments were received by the August 17, 2007 deadline. The consultant scope of work was amended by the Board on September 17, 2007 to address these comments, which included substantial new data from the ODP proponents.  The B/E-GEI final report was received at the Board’s February 28, 2008 meeting.  Consult the District website for more information at: 

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20080228/20/item20.htm .

 

Water Supply Target:  One Matrix component addresses how well various projects meet the water supply targets adopted by the Board in 2007, based on a series of meetings in 2006 and 2007.  A staff-recommended value of 12,500 AFY for existing needs was presented to the Board for its consideration at the November 20, 2006 meeting.  For more information, refer to the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2006/20061120/12/item12.htm .

 

A special workshop was held on May 18, 2006 to address future water needs, based primarily on projections made by the Technical Advisory Committee (TAC), comprised of jurisdiction planning staff.  The TAC evaluated water needs associated with various types of uses anticipated at “build-out,” based on current General Plans.  The TAC estimated that 4,545 AFY above existing needs would be required, as described in the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2006/20060518/01/item1.htm .

No changes to the May 2006 estimate were proposed in November 2006.

 

The staff recommendation of 12,500 AFY for existing needs and 4,545 AFY for future needs was accepted by the Board in November 2006 to submit to the jurisdictions for comment with requested written comment by March 15, 2007.  A special workshop of the jurisdictions’ TAC and Policy Advisory Committee (PAC) was held on January 9, 2007, where District staff reviewed the development of its assumptions in detail, with emphasis on existing needs.  The TAC at its January 23, 2007 meeting accepted the information on existing needs.  The jurisdictions provided feedback in February and March 2007.  Jurisdiction comments were reviewed and the Board approved the 12,500 AFY and 4,545 AFY yield targets at its meeting of April 16, 2007.  Refer to the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2007/20070416/14/item14.htm .    

 

Objective LS6: Ensure That CAW Presents Updated Water Supply Proposals, Alternatives and Timeline

 

Action in July-September 2009:  District staff continues to attend public meetings on CAW’s proposed Coastal Water Project and alternatives, including public participation hearings hosted by the CPUC in Monterey on July 13 and 14, 2009.  Based on an August 10, 2009 CPUC ruling, District staff is working to prepare testimony that addresses needed mitigation measures for the CWP and alternatives; testimony is due November 6, 2009.  The District also has retained an expert in financing to address specific cost-related issues as part of the CPUC proceedings.   In addition, at its regular monthly meetings, the Board receives an oral report by CAW’s General Manager on CAW’s activities, which provides an opportunity to pose questions about water supply issues

 

Discussion/Background:  The CWP is described above.  As scheduled, CAW Vice President Tom Bunosky made a presentation to the MPWMD Board at its March 27, 2008 Special Workshop on the current regulatory situation, CAW efforts on the CWP, and updated timelines.  Project completion is not envisioned until 2016, based on current progress on the EIR for the project.  The CAW presentation is on the MPWMD website at: 

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20080327/ppt/1_files/frame.htm. A special meeting was held on October 30, 2008 which focused on coordination with CAW regarding water supply issues.  Information is available on the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20081030/1030agenda.htm.  Please refer to the General Manager’s weekly summary of activities for other action associated with water supply alternatives at:  http://www.mpwmd.dst.ca.us/gmletters/gmletters.htm.

 

The CPUC released the Draft EIR on CAW’s proposed CWP in late January 2009.  The District Board held a special workshop on March 16, 2009 to hear a CPUC staff presentation on the DEIR, receive initial technical comments by MPWMD staff, and provide initial impressions by individual Board members.  Consolidated MPWMD comments were submitted to the CPUC by the April 15, 2009 deadline.  District staff also attended several public meetings on the CWP and alternatives.  In a March 26, 2009 joint ruling, the CPUC Administrative Law Judge and the Commissioner assigned to the CWP set a schedule that includes placing the final decision on the project on the CPUC’s March 2010 agenda.  For reference, the materials for the March 16, 2009 special meeting may be viewed at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2009/20090316/0316agenda.htm. The CPUC schedule was updated by Rulings and communications in August-September 2009.  The target date for the Final EIR is now October 30, 2009.   Evidentiary hearings are scheduled for November 30-December 4, 2009.  Certification of the Final EIR is planned for January 2010.  The CPUC hearing on the decision to approve the CWP is planned for May 2010.

 

In related action, Director Brower and District staff participated in a tour of CAW’s pilot desalination project at the Moss Landing Power Plant on April 16, 2009.  The pilot plant test period is nearing completion, and test results will be used to refine the proposed desalination project design for the CWP.  

 

District staff members and a Board member have also participated in monthly WFMCC meetings that led to development of the “Regional Project,” which is analyzed in detail as an alternative in the Coastal Water Project DEIR.  The Regional Project description has evolved over time, but consists of various project components including water conservation, City of Sand City Desalination Facility using brackish water, Regional Urban Water Augmentation Program (RUWAP) using recycled water, Aquifer Storage and Recovery (ASR) Project using Carmel River water, Salinas River Diversion Facility using Salinas River water, and a Regional Desalination Facility in the North Marina area using seawater-intruded groundwater from the Salinas Valley Groundwater Basin.  As currently proposed, the Phase 1 Regional Project is designed to produce 15,200 acre-feet per year of potable water supply; a Phase 2 project would meet regional growth needs.  At its February 26, 2009 meeting, the Board considered a request by WFMCC to formally express support for the Regional Project as the best solution, and urge the CPUC to encourage CAW to forgo the CWP and agree to purchase water from the Regional Project. The Board determined such a decision should await completion of the EIR.   

 

On March 18, 2009 CAW and Marina Coast Water District (MCWD) executed a MOU regarding data sharing for environmental review of the proposed CWP and Regional Project.  Under the MOU, CAW and MCWD agreed to work together to expedite the selection and implementation of a water supply project to address the Monterey Peninsula’s water needs and insure that the CPUC is provided with complete comments and information on which to make an informed decision. 

 

In a related matter, on April 1, 2009, Jim Heitzman, MCWD General Manager, made a presentation on the status of agreements in progress for the Regional Project.  These agreements between and among MCWD, Monterey Regional Water Pollution Control Agency (MRWPCA), Monterey County Water Resources Agency (MCWRA), Monterey County, and CAW are in various stages of completion.

Objective LS7: Prioritize Water Supply Alternatives (and Pursue Priority Project)

 

Action in July-September 2009:   After many weeks of delays, in early July 2009, the District obtained all permits needed for hydrogeologic field investigations at the most promising sites for the District’s “95-10 Project” (desalination project with intake facilities located  in Fort Ord Dunes State Park).  Due to previous commitments, field work was not able to begin until September 14, 2009, and was completed by September 22, 2009.  Laboratory testing of the samples obtained is currently in process, with a report to the MPWMD Board planned for December 14, 2009.  

 

Discussion/Background:  At its March 27, 2008 Special Workshop on water supply alternatives, the Board received: (1) an update from CAW on its Coastal Water Project (see Objective LS6 above); (2) information on the cost and timeline associated with completing a Final EIR on the 8,400 AFY MPWMD Seawater Desalination Project in the Sand City area; (3) a brief presentation by Water Standard Company on offshore ship-based desalination facilities; and (4) an overview by MPWMD staff on the major water supply alternatives evaluated to date.  The Board began initial discussions on which water supply alternatives should be pursued by the District in the near-term.  The Board directed staff to revive pursuit of the MPWMD desalination project, which had been tabled in 2004.  A new name, the “MPWMD 95-10 Project,” was suggested, as a key goal is compliance with SWRCB Order WR 95-10.  The Board also directed staff to develop a scope of work and cost estimate for engineering and environmental consultant contracts associated with the certifying a Final EIR for the Project, to be considered at the April 21, 2008 Board meeting.  Given uncertainties and disagreement about the feasibility of the project, the Board authorized retaining consultants to prepare a Phase 1 Constraints Analysis report before committing significant funds and resources towards evaluation of the project in an EIR.  The overview of the MPWMD 95-10 Project, initial discussion of setting priorities, and information for the April 21, 2008 meeting may be viewed at the MPWMD website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20080327/02/item2.htm;

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20080327/03/item3.htm; and

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20080421/23/item23.htm.

 

Pursuant to the contract authorized by the Board in April 2008, environmental and engineering consultants prepared and presented a Constraints Analysis for the MPWMD 95-10 Project (desalination) to the Board at its August 18, 2008 meeting.  This analysis identified significant impediments to the MPWMD desalination project feasibility, and ranked various seawater intake and brine disposal sites and technologies.  The Board directed that additional work be performed to address three specific policy issues related to the feasibility of implementing the project in the former Fort Ord coastal area, with a report due in October 2008.  District environmental and engineering consultants presented the report as scheduled.  The Board then directed the consultant to develop a scope of work, cost and timeline for the next phase of technical and environmental studies, with a focus on the Bunker and Stilwell sites, for presentation at the December 8, 2008 meeting.  Also the Board directed that its Legislative Committee should meet and develop a plan to confer with agencies that have jurisdiction over land or resources that would be needed to accomplish the project. Based on the scope and costs of the detailed plan presented on December 8, the Board directed staff to describe alternative approaches to investigating the project, including proceeding with the hydrogeologic investigation but not the engineering portion of the project until the hydrogeologic studies are completed.  Once the field studies are completed, the Board will determine the best course of action.  More information is available on the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20080818/16/item16.htm

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20081020/17/item17.htm

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20081208/16/item16.htm

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2009/20090129/20/item20.htm

 

Objective LS8:  Ensure the Remaining Entities Adopt an MOU for Participation in the Monterey Bay Regional Water Solutions Task Force to Evaluate Regional Water Supply Solutions

 

Action in July-September 2009:  MPWMD staff continues to coordinate with other entities on regional water supply solution opportunities in a variety of settings.  The original concept of the Monterey Bay Regional Water Solutions Task Force has evolved, but the consistent goal remains regional cooperation towards a sustainable water supply.   The District General Manager and Director Bob Brower continued to meet with sister agencies to further regional cooperation, specifically with the aim to increase District participation in an overarching regional water supply planning MOU.   

 

Discussion/Background:  The District has consistently coordinated with MRWPCA, MCWRA, MCWD and other entities on regional water supply solution opportunities.  The District General Manager continues to participate in Monterey County-led meetings of a Managers Working Group comprised of water/wastewater districts and cities from the Monterey Peninsula and north Monterey County, including the northern Salinas Valley, regarding a potential governance structure for a regional water supply planning entity currently known as the Monterey Bay Regional Water Authority (MBRWA).  At its March 22, 2007 meeting, the District Board approved in concept a draft Memorandum of Understanding to Form the Monterey Bay Regional Water Solutions Task Force, and urged other entities to consider it as well and/or offer suggested changes.  The MOU proposes to form a committee comprised of a representative from the County Board of Supervisors, affected water district/agency governing boards, and city councils.  At its meeting of June 18, 2007, the MPWMD Board approved a revised Draft MOU to form the Task Force and a contribution of $5,000 towards technical analyses that the Task Force will require. Entities involved in the MBRWA met on July 23, 2007 and endorsed the Final Draft MOU, which was distributed to all member entities for final approval in Summer/Fall 2007.  Additional information may be found at the MPWMD website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2007/20070618/25/item25.htm.

 

At the February 13, 2008 Strategic Planning Session, Director Potter volunteered to ensure that all participating entities adopt the MOU by April 21, 2008.  However, he reported to the Board in May 2008 that Monterey County has identified concerns with the MOU as currently crafted, and a renewed effort in is progress to develop a new mutually acceptable agreement.  No timeline has been identified for this County effort, which continues to evolve. 

 

As noted above for Objective LS-6, the District continues to participate in efforts to define viable regional water supply solutions and to cooperate with other water agencies.  On June 16, 2009, the District General Manager testified at the Monterey County Board of Supervisors’ meeting in support of staff’s recommendation to approve the Cooperative Planning and Joint Analysis Memorandum of Understanding (Planning MOU) for a Monterey Regional Water Supply Program.  The purpose of the Planning MOU is to provide a common framework to conduct planning-level analyses for the proposed Regional Water Supply Project as an alternative to the Coastal Water Project.  A draft Planning MOU was approved with minor changes by the Board of Supervisors. 

In related action, on June 5, 2009, the District received a response to its May 14, 2009 request to be included in the planning process for the proposed Regional Water Supply Program.  The response suggested a joint meeting of the managers of MPWMD, MRWPCA, MCWD and MCWRA to discuss the request and consider options.  Since then, MPWMD General Manager Darby Fuerst has met individually with each General Manager from the sister agencies.  Mr. Fuerst and Director Bob Brower, Chair of MPWMD’s ad hoc Water Supply Planning Committee, also met with Supervisor Lou Calcagno to discuss District participation in regional cooperation.  Mr. Brower has also met with city officials on the District’s behalf.  Mr. Fuerst is currently working to set a joint meeting of all the signatory agencies with a goal to increase District participation in an overarching MOU.

 

Objective LS9: Provide Technical Support or Guidance to MRWPCA for its Groundwater Replenishment Project in the Seaside Basin  

 

Action in July-September 2009:  This objective is ongoing.  The MPWMD Board approved a Memorandum of Agreement (MOA) with MCWPCA on January 29, 2009, with a continuing effort to develop a more detailed MOU.  A similar MOA with Marina Coast Water District (MCWD) has also been developed.  MPWMD staff continues to meet and advise MRWPCA staff and consultants, and provides technical review of technical and planning documents prepared by MRWPCA, as requested. 

 

Discussion/Background:  The Groundwater Replenishment Project (GRP) entails potential injection or percolation of highly purified recycled water in to the Seaside Groundwater Basin.  It is modeled after a successful replenishment project in Orange County, California.  Studies are underway to determine whether a similar type of project is feasible in the Seaside Basin east of General Jim Moore Boulevard.   At its November 20, 2006 meeting, the MPWMD Board adopted Resolution No. 2006-05 expressing support for the MRWPCA replenishment efforts. The resolution text may be viewed at:  http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2006/20061120/04/item4.htm. Subsequently, MPWMD staff has participated in many GRP technical coordination meetings, and has provided technical assistance to the GRP consultant team.  

 

At its September 26, 2008 meeting, the District Board determined it would hold a joint meeting with the MRWPCA Board in October 2008 to discuss partnership opportunities on a joint project.  The MPWMD and MRWPCA boards held a special joint meeting on October 29, 2008 aimed at providing additional structure and incentive for moving forward on this project.  At its November 17, 2008 meeting, the District Board established a three-member ad hoc Water Supply Planning committee to develop an MOU with MRWPCA regarding roles and responsibilities related to water supply planning in the Monterey Peninsula area.  Directors Brower, Doyle and Edwards were appointed to the committee, with Director Markey as an alternate.  Ad Hoc Water Supply Planning Committee met on December 9, 2008, reviewed a draft charge, and requested that it be revised.  A revised charge was adopted at the January 29, 2009 meeting.

 

Also on January 29, 2009, the District Board approved adoption of an MOA with MRWPCA to cooperate in all matters in which a joint interest may exist.  The managers of the two agencies are to regularly meet to discuss matters of common interest, and the governing bodies of the two agencies are to hold joint meetings as needed.  It is anticipated that the two agencies will develop and approve a further Joint MOU that would outline key provisions needed for a more detailed agreement to better achieve their mutual needs.  This would include consideration of a funding assistance plan to help advance the MRWPCA Groundwater Replenishment Project.  More information is found at the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20081029/1029agenda.htm

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20081117/15/item15.htm

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2009/20090129/03/item3.htm

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2009/20090129/19/item19.htm

 

GOAL: COMPLETE ASR PHASE 1 AND EXPANDED ASR PROJECT(S)

 

Aquifer storage and recovery (ASR) entails diverting excess water flows, if available, in the winter season (December 1 through May 31) from the Carmel Valley Alluvial Aquifer through existing CAW facilities and injecting the water into the Seaside Groundwater Basin for later recovery in dry periods.  The primary ASR water supply efforts at this time focus on:  the permanent Phase 1 ASR Project at the Santa Margarita test site as well as future expanded ASR projects.   The primary goal of the MPWMD Phase 1 project is better management of existing water resources to help reduce current impacts to the Carmel River, especially during the dry season. The project is viewed as being complementary to other larger, long-term water augmentation projects that are currently being explored by various entities.  The project entails a maximum diversion of 2,426 AFY from the Carmel River for injection, a maximum extraction of 1,500 AFY from the ASR wells in the Seaside Basin, and an average yield of about 920 AFY.  The proposed operation of the Phase 1 ASR Project would result in reduced pumping of the Carmel River in the Summer/Fall and increased storage in the Seaside Basin, which are both considered to be environmentally beneficial. 

 

On March 23, 2006, the District issued the Draft Environmental Impact Report and Environmental Assessment (EIR/EA) on the MPWMD Phase 1 ASR Project, including information on a CAW temporary pipeline associated with the ASR Project.  On August 21, 2006, the MPWMD Board certified the Final EIR/EA, including responses to comments, adoption of formal Findings of Approval, and adoption of a Mitigation Monitoring Plan to address project impacts, with emphasis on comments submitted by California Department of Fish and Game (CDFG), and National Marine Fisheries Service (NMFS, also known as NOAA Fisheries).  Notably, both CDFG and NMFS had previously filed water rights protests (see ASR1 below), so the EIR/EA responses and refinements were made with the intent to also resolve water rights concerns. Additional information on the Final EIR/EA is available on the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2006/20060821/10/item10.htm 

 

In Fall 2006, the certified EIR/EA was used a primary decision-making tool by several permitting entities. On September 19, 2006, the U.S. Army transmitted a signed Right-of-Entry permit, a key approval needed to construct the Phase 1 ASR Project.  The City of Seaside Planning Commission approved a Conditional Use Permit for the Phase 1 ASR well on October 11, 2006.  The Monterey County Health Department issued a well construction permit on December 13, 2006.  Construction on Well #2 began in December 2006 and the well itself was completed in February 2007.  However, a few set-backs were encountered and several ancillary facilities are needed to enable production at maximum capacity, as described below in Objective ASR3.

 

An extensive multi-year water rights effort resulted in the SWRCB issuing Orders WR 2007-0041-DWR and WR 2007-0042-DWR and Amended Permits 20808A and 20808B on November 30, 2007.  These Orders approve, in part, the District’s Petitions for Change to allow some of the water rights from the New Los Padres Dam and Reservoir Project in 1995 to be applied to the ASR Project. District staff continues to work on certain follow-up activities related to certain conditions of approval.  Please see Objective ASR5 below for more background on water rights.

 

Objective ASR1: Notify and Make a Presentation to the Watermaster, Informing Them of MPWMD’s Water Storage Rights

 

Action in July-September 2009:  None.  A presentation was made in 2008 to the Watermaster Technical Committee, and a legal opinion was prepared in 2007.    

 

Discussion and Background:  This objective relates to the fact that the Seaside Basin Watermaster is the Court-appointed entity with authority over storage and extraction rights of water in the Seaside Basin.  A legal opinion on MPWMD and CAW’s right to store water injected into the Seaside Basin via the Phase 1 ASR project and potential future projects was prepared by General Counsel in 2007.  See “Other Water Supply Activities” below for more information on the Watermaster and associated District staff efforts.

 

Objective ASR2: Conduct a Dual-Well Injection Test and Report Results to the Board 

 

Action in July-September 2009:  District staff and consultants analyzed data collected in the dual –well injection test conducted in January 2009. These results will be incorporated in to the WY 2009 ASR operations report, scheduled for completion later this year

 

Discussion/Background:  Typically, the Phase 1 ASR well testing would be based on waters from the Carmel River, as allowed by the water rights permits issued by the SWRCB, which consider the needs of the Carmel River steelhead.  Lack of flow in the Carmel River or access to flow during certain periods, combined with the current operational constraints in the CAW system, has resulted in the inability to test the Phase 1 ASR project at full capacity to date (i.e., Well #1 and #2 operating together).  Thus, District staff has been working with MCWD and MCWRA since 2007 to potentially use treated water from the MCWD distribution system to support a “dual-well” injection test for roughly two weeks at the ASR site.  As part of that effort, District Counsel clarified water storage rights and procedures contained in the Seaside Basin adjudication court decision, as they relate to this proposal (see Objective ASR1).  District Counsel drafted an agreement for consideration by participating entities in order to enable this proposal to proceed, which would define objectives and responsibilities regarding the planned injection testing using MCWD system water.  The MCWD Board approved this agreement at its November 14, 2007 meeting, and the MPWMD Board approved the agreement at its December 10, 2007 meeting.   A revised version of a three-party agreement was submitted to MCWRA on March 10, 2008, and was signed by MCWRA on March 14, 2008. 

 

The actual dual-well test was originally scheduled for completion by September 30, 2008, subject to completion of several required actions.  Assuming 3,000 gallons per minute of flow, these tasks included:  (1) make a temporary physical connection between the MCWD system and the ASR site; (2) complete the ASR Well #1 rehabilitation work and Well #2 development work; and (3) provide geochemical modeling results for review and approval by the Regional Water Quality Control Board (RWQCB).  These tasks took longer than expected due to additional review requested by the RWQCB,  a materials shortage associated with the motor for Well #2, MCWD information requests, and service interruptions associated with road grading and water pipeline installation for the General Jim Moore Boulevard realignment in the area of the test site.

 

In cooperation with MCWD and MCWRA, MPWMD successfully completed a test in late January 2009 to divert approximately 69 AF from the MCWD system for roughly two weeks to run  the ASR project at full capacity (i.e., use of Well #1 and the new Well #2 together).  This alternative source of supply was needed due to inadequate flow in the Carmel River and limitations in the CAW system as presently configured. 

  

Objective ASR3: Achieve Consensus with CAW on Final MPWMD and CAW Phase 1 ASR

 

Action in July-September 2009:  District staff and consultants had a series of productive meetings with  CAW representatives, including CAW’s new president, Robert MacLean, to coordinate on future ASR well sites, and to continue design work on CAW infrastructure to ensure delivery of adequate water volume to the Phase 1 ASR site.  The District helped mediate an apparent impasse between the City of Del Rey Oaks and CAW regarding permit conditions for a vital water pipeline needed to facilitate the design injection water delivery rate to the Phase 1 ASR Project site (i.e., up to 3,000 gallons per minute [gpm]).  Permits were issued by the City and construction began in September 2009, with a goal of completion in November 2009, before commencement of the Water Year 2010 injection season on December 1, 2009.  Water delivery capacity for injection is currently limited to approximately 1,000 gpm, so this pipeline could play an important role in capturing excess Carmel River flow in what may be a rainy El Niño year.    In a related matter, CAW, MPWMD and FORA met in late September 2009 to discuss infrastructure logistics relating to the impending realignment of General Jim Moore Boulevard.

 

Progress was made on a dedicated monitor well on the Fitch Middle School property in Seaside.  After receiving a license agreement from the Monterey Peninsula Unified School District in May 2009, MPWMD then received a permit from the City of Seaside in late September 2009. The District Board held a special meeting on October 5, 2009 to approve a drilling contract   to enable well construction during the October 12-16, 2009 school break.  This monitor well will serve the dual purpose of providing exploratory hydrogeologic data for potential future ASR project expansion and satisfying requirements for offsite “far-field” water-quality monitoring associated with the California Regional Water Quality Control Board’s oversight of the ASR project.  

 

Discussion/Background:  The Phase 1 ASR Project is comprised of the existing full-scale test well at the Santa Margarita site in addition to a new, second ASR well immediately adjacent to the site.  The two wells would be operated in tandem during the injection season.  The District began construction mobilization for the second well the week of December 4, 2006, as scheduled.  A temporary sound wall was constructed and drilling began in early January 2007.  The well was completed in early February 2007 and formal production testing subsequently occurred.  In early April, while preparations were being made for the final well inspection video, it was discovered that rock formation materials from the aquifer system had entered the well, indicating a continuing problem with the integrity of the well casing, apparently due to failure of pipe threads on the contractor’s drill bit that allowed the well development pump to drop to the bottom of the well.  Repair of the casing was completed in early May, and included a new bottom “swage” plate for the well, plus a concrete plug to ensure that the plate remains in place for the life of the well.  The District was not charged for the repair, which was conducted by the well drilling contractor, under supervision from the District’s construction management consultant.  A final acceptance video of the well construction was conducted in mid-May 2007.  The U.S. Army executed a Supplemental Agreement No. 1 to Department of Army Easement for Injection Test Well to enable the long-term Phase 1 ASR Project on September 21, 2007. 

 

In coordination with CAW, District staff and consultants continue design of Phase 1 ASR support facilities such as a new well pump and motor in addition to electrical conduits, percolation basin, pipes and valving.  Bids for initial facilities construction were received on November 13, 2007 to install permanent underground plumbing and electrical piping for ASR Well #2.   The goal date for installation of these ASR well facilities was delayed to March 31, 2008, due in part to delays stemming from ordnance removal requirements and water quality concerns conveyed in Fall 2007.  District staff coordinated with the Fort Ord Reuse Authority (FORA), U.S. Army and Regional Water Quality Control Board (RWQCB) to help address these issues.  As of April 15, 2008, all of the underground utilities to the second ASR well have been installed. 

 

Regarding water quality issues, in late November 2007, MPWMD and CAW staff met with RWQCB Executive Officer Roger Briggs to discuss questions about disinfection byproducts in CAW treated potable water, the injection source water for the Phase 1 ASR Project.  These questions were raised due to concerns about ASR projects in other regions of the state, which triggered the Central Coast RWQCB’s need for consistent review of such projects.  During the meeting, District technical staff presented the results of rigorous and detailed ASR water quality testing analyses we have conducted over the past several years.  The consensus conclusion among representatives of all three entities present in the meeting was that the District’s ASR project source water conditions, Seaside Basin water use considerations, and aquifer characteristics are significantly different, and in large part not directly comparable, to the other ASR projects that raised the issue.  It is anticipated that RWQCB staff will consider the Phase 1 Seaside Basin ASR project separately, and not require additional permit-related requirements that would adversely affect the project’s viability. 

 

During the meeting Mr. Briggs assured District staff that their written waiver of discharge requirements, which was issued for the MPWMD Phase 1 Project in 2007, enables commencement of ASR operations in 2008.  RWQCB staff also indicated that they would be developing formal criteria and guidelines to ensure that all ASR and similar projects in the Central Coast Region are reviewed for consistency with RWQCB policy.  District staff intends to closely monitor this process to assist the RWQCB, and in order to ensure the long-term nature of RWQCB’s authorization or exemption determination for the Seaside Basin ASR operations. MPWMD continues to collect water chemistry samples of injected and native aquifer waters to address requests from the RWQCB.  A dedicated monitor well on the Fitch Middle School property in Seaside is planned for construction in October 2009.  It will serve the dual purpose of providing exploratory hydrogeologic data for potential future ASR project expansion and satisfying requirements for offsite “far-field” water-quality monitoring associated with the RWQCB’s oversight of the ASR project. 

 

Regarding unexploded ordnance, in late 2007, the District was advised by FORA that there are additional required ordnance investigation activities that affect the Phase 1 ASR Project site that must be completed prior to property transfer to the City of Seaside.  In December 2007, the U.S. Army indicated it would assist with these activities, which commenced in January 2008.  Accordingly, the underground facilities installation work was conducted with this support being provided by the U.S. Army.

 

Regarding ASR Project financing, on June 18, 2007, the Board adopted the required resolutions for participation in the California Statewide Communities Development Authority (CSCDA) Water/Wastewater pooled bond program to finance the District’s Phase 1 ASR Project.  Subsequently, a tax law attorney with the bond counsel firm that represents the CSCDA program determined that the ASR project is not eligible for regular tax-exempt financing because CAW, which is a private for-profit entity, will use water injected and recovered by the District-owned ASR wells in CAW’s distribution system.  With the assistance of a financial advisor, District staff also pursued a financing alternative that would involve issuance of tax-exempt “private activity” bonds.  However, due to two additional time-consuming and costly processes the District would have to complete in order to issue this type of debt, other alternatives were re-evaluated.  Staff determined that delays in completing the ASR project in 2007 meant that a significant portion of the required funding would not be required until Fiscal Year 2008-09, and that the project could be funded on a pay-as-you-go basis. That alternative was approved by the Board at its November 19, 2007 meeting.  On November 17, 2008, two actions were taken to re-authorize the 1.2% existing water use fee used to fund ASR facilities and related water supply projects, including passage of an Ordinance. More information is available on the District website at:

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20081117/12/item12.htm

http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2008/20081117/13/item13.htm.

 

CAW Infrastructure:  In 2006, District staff worked closely with CAW to help obtain permits and other approvals to construct a temporary pipeline along the west side of General Jim Moore Boulevard.  It was the District’s understanding that this pipeline was needed for existing CAW system operational flexibility as well as to provide water to enable full capacity of the Phase 1 ASR Project.  CAW mobilized the temporary pipeline segments in December 2006, and the pipeline assembly was completed as of late March 2007. However, the District was advised by CAW consultants on April 18, 2007 that additional CAW distribution facilities are needed to support water diversion to both Phase 1 ASR wells in addition to existing CAW wells.  An improved CAW pipeline from Carmel Valley (goal is December 2009) as well as a new pipeline into Monterey is needed for full use of the ASR facilities.  Since then, District and CAW staff and consultants continue to meet to address current and future demands on the CAW system from a hydraulic and engineering perspective.  A related task is to balance near-term operations and ASR needs with longer-term plans by CAW to construct the Coastal Water Project.  CAW submitted a basis-of-design report for needed facilities to the CPUC on November 30, 2007, but additional work is needed. 

 

In 2008 and 2009, MPWMD and CAW representatives continued to coordinate on future ASR well sites, and to continue design work on CAW infrastructure to ensure delivery of adequate water volume to the Phase 1 ASR site.  District staff met with CAW staff and consultants at the Phase 1 ASR site in late April 2009 to review progress on completion of facilities and to discuss potential design enhancements for compatibility with proposed Coastal Water Project ASR facilities.  On June 23, 2009, District staff participated in a meeting with representatives of CAW and the CPUC Division of Ratepayer Advocates in San Francisco.  The meeting was called by CAW to provide an update on its plans and activities for system improvements that will allow full use of the District’s Phase 1 Aquifer Storage and Recovery (ASR) Project wells.

 

Since May 2009, CAW’s new president, Robert MacLean, has helped energize a series of productive meetings between CAW and MPWMD regarding near-term and future ASR projects, and related CAW infrastructure necessary for operation at full capacity.  The District supported CAW’s application to the City of Del Rey Oaks for a vital pipeline to enable operation of the ASR wells at full injection capacity.  The District and CAW worked together to address an apparent impasse between CAW and the City of Del Rey Oaks regarding permit conditions, resulting in a permit for the pipeline project and initiation of construction in September 2009.   

 

Objective ASR4:  Achieve Consensus with CAW on the Yield and Schedule for the Next Phase of ASR Expansion

 

Action in July-September 2009:  As noted above, District staff continues to coordinate with CAW staff and consultants on necessary action and facilities to enable expanded ASR.  This includes assessing the best site(s) to pursue for Phase 2 ASR out of several choices previously identified in CAW and MPWMD technical reports.

 

Discussion/Background:  As described above, efforts to date have focused on the Phase 1 ASR Project.  However, meetings continue between District and CAW staff/consultants regarding future ASR phases.  District staff has provided computer simulations for CAW consultant, ASR Systems, for their investigation of the ASR element of the proposed Coastal Water Project and potential expanded ASR projects.   In mid-2007, District staff reviewed a CAW Technical Memorandum on a conceptual plan for expanded ASR.

 

In mid-May 2009, District staff submitted application materials seeking grant monies for expansion of the MPWMD’s ASR Project.  The application package included letters of support from NOAA Fisheries and the Carmel River Watershed Conservancy.  The grant program is funded through the federal government’s 2009 American Recovery and Reinvestment Act (i.e., economic stimulus package), and is administered by the U.S. Bureau of Reclamation.  Unfortunately, the District’s application was not selected as a potential recipient, and further consideration is not anticipated under this grant cycle.

 

Objective ASR5: Complete Negotiations with CAW for Joint Ownership of Water Rights to Obtain Future ASR and Other Water Rights Permits

 

Action in July-September 2009: As noted above, productive discussions with CAW have taken place this past quarter, resulting in CAW’s decision in September 2009 to withdraw its protest against the District’s Phase 2 ASR water rights application.   CAW also withdrew its protest to the District’s November 2006 petition for a time extension for the New Los Padres Project water rights permits.  Settlement meetings are just beginning with the National Marine Fisheries Service (NMFS ) and the Carmel River Steelhead Association regarding their protests to the District’s June 30, 2008 Petition to Change its existing Permit #20808B to serve Phase 2 of the ASR Project.

 

Discussion/Background:  In late March 2006, the District and CAW finalized a Management and Operations Agreement (MOA) regarding ASR testing, mutual aid, cost-sharing, water rights and other issues.  This agreement satisfied the State Department of Health Services requirement that the entities enter into a minimum 10-year agreement to operate the ASR facilities.  It also includes provisions for sharing rights for the Phase 1 ASR project and to negotiate additional agreements for acquiring and sharing ownership of water rights for present and future potable water supplies for the Monterey Peninsula area.  In 2007, efforts focused on securing water rights for the Phase 1 ASR Project; efforts in 2008 will focus on potential future expansion of ASR. 

 

Water rights for Phase 1 ASR are based on two Petitions for Change, originally submitted by the District to the SWRCB in October 2001 and revised in September 2003.  The SWRCB noticed the District’s Petitions on April 15, 2005.  The District prepared formal responses to NMFS and CDFG protests in mid-June and July 2005, respectively.  The District worked extensively with NOAA and CDFG through September 2007 to resolve water rights issues and also address CAW concerns (CAW and MPWMD had previously agreed to share water rights for the Phase 1 ASR Project).  A mutually satisfactory resolution of agency and CAW concerns finally occurred in mid-September 2007, just before the scheduled September 24, 2007 SWRCB hearing, which was cancelled when the protests by CDFG and NMFS were withdrawn.  This delay did not affect ASR water diversions in Water Year 2007 due to the critically dry streamflow conditions, which presented minimal opportunity to use the water rights permit, had it been issued.   

 

On June 30, 2008, the District submitted a petition to change its existing Permit #20808B to serve Phase 2 of the ASR Project.  This petition was noticed by the SWRCB in January 2009 with a protest deadline of February 19, 2009.  Three entities filed protests: CAW, NMFS, and Carmel River Steelhead Association (CRSA).  CRSA’s protest was initially not accepted by SWRCB, but was subsequently accepted on August 31, 2009 based on additional protest wording submitted by CRSA.  District staff responded to the CAW and NMFS protests in March 2009.  The multi-month effort to obtain a settlement agreement with CAW and NMFS began in mid-2009.  CAW withdrew its protest in letters dated September 29, 2009.

 

District staff continues to coordinate with CAW and SWRCB staff regarding water rights associated with the New Los Padres Reservoir Project (issued in 1995).   The reservoir water rights are relevant as they are the basis for the Petitions for Change described above.  The District submitted a July 2006 petition requesting an extension of time for the reservoir permits to maintain the water rights associated with them.  Five objections were filed from entities including: CAW, CDFG, Carmel River Steelhead Association, Esselen Tribe of Monterey County and NMFS.  Copies of the objections were provided to the District in December 2006, and the District responded.  CAW withdrew its protest in late September 2009, but the other protestants have not yet come to agreement on terms and conditions for approval to extend the permit; outstanding issues would become the subject of future SWRCB decisions. 

 

OTHER WATER SUPPLY ACTIVITIES

Though not formally a part of the Strategic Plan Water Supply objectives, the following relevant water supply activities continued in the July-September 2009 period:

 

Participation in CPUC Coastal Water Project Approval Process, Including CEQA Review

 

Action in July-September 2009:  Please refer to Objective LS6 for MPWMD activities related to the Coastal Water Project and Regional Project.

 

Discussion/Background:  District staff has met with and assisted CPUC staff and consultants since mid-2006 to help the CPUC better understand existing and future community needs, and how those needs may relate to the Coastal Water Project proposed by CAW as well as various potential alternatives.  The CPUC issued a Notice of Preparation (NOP) of a Draft Environmental Impact Report (EIR) for the CWP on September 29, 2006, which will include information on alternative desalination facilities to the plant proposed at Moss Landing.  Beginning in January 2007, the DRA began monthly meetings with a variety of agencies and public interest groups to review alternatives to the CWP to serve as a regional water supply project (or combination of projects) for northern Monterey County, including the Monterey Peninsula.  The MPWMD Board at its January 25, 2007 meeting directed District staff to participate in this process.  The MPWMD General Manager advises the Board of CPUC action in his weekly letters and monthly reviews.

 

The primary components of the CWP are a 10 million-gallon-per-day (mgd) desalination project at Moss Landing, a conveyance pipeline to the Peninsula (with associated structures), and ASR producing a minimum of 1,300 AFY. The NOP identified alternative desalination site locations, intake and discharge operations, desalinated water conveyance systems, and project sizes. The District submitted comments on the NOP in November 2006 (see January 2007 report for details). 

 

At its March 27, 2008 special workshop on water supply alternatives, the District Board heard a presentation on the “Sustainable Water Supply Program for Monterey County,” a conceptual regional plan that has been developed by the Regional Plenary Oversight Group (REPOG), sponsored by the CPUC/DRA.  The “Sustainable Water Supply Program for Monterey County” is also expected to be evaluated in the CPUC’s Draft EIR, now anticipated to be released in first quarter 2009.   The concept is evolving, and consists of incremental, multiple components, including: conservation, stormwater reuse, ASR, recycled water from the MRWPCA regional treatment plant for non-potable uses (agricultural and urban) and groundwater injection for potable use, brackish-water desalination project in North Marina area, diversion from the lower Salinas River ("rubber dam"), and pumping water from the Salinas Groundwater Basin.  The Marina Coast Water District and CAW co-funded needed engineering work to firm up the project description for the EIR, which was received in June 2008.  The District received technical reports providing a description of a regional alternative in June and July 2008. 

 

Conduct ASR Operations in 2009   

 

Action in July-September2009:  Diversions ended in early April 2009 due to inadequate streamflow, with a total of 182 AFY as of April 9, 2009.  District staff and consultants are preparing end-of-water year reports from the ASR operations for the current water year (October 1, 2008 through September 30, 2009). 

 

Discussion/Background:  Since 1996, the District has evaluated the feasibility of ASR at greater levels of detail, including obtaining annual temporary water rights to divert water from the Carmel River Basin water and inject it into the Seaside Basin.  Between Water Years 1998 and 2007, the District injected approximately 1,875 AF of excess winter flow from the Carmel River Basin into the Seaside Basin at two sites:  the MPWMD Paso Robles Test Injection Well (located at Mission Memorial Park in Seaside) and the SMTIW #1 (now called ASR Well No. 1), located on the former Fort Ord military base, just east of General Jim Moore Boulevard near Eucalyptus Avenue.  During this period, 1,139 AF was recovered and delivered to the community via the CAW system as part of the test program. 

 

It is notable that Carmel River diversions in Water Year (WY) 2008 (October 1, 2007 through September 30, 2008) are the first year where diversions are based on a long-term water rights permit rather than a temporary urgency permit.  With the 2008 diversions of 60 AF, a total of 1,936 AF were diverted and injected into the Seaside Basin from WY 1998 through WY 2008. 

 

With the extensive rains in February 2009, diversion of Carmel River streamflow to ASR Well #1 began on February 17, 2009 and continued until the week of March 30, 2009, when CAW system constraints and declining streamflow halted the program.  Diversions in the 2009 season through April 9, 2009, totaled 182 AFY, which is a significant increase as compared to the 60 AF injected in 2008.  The total amount diverted and injected is 2,117 AFY through WY 2009. When in operation, about 1,000-1,100 gallons per minute are injected (about 4.4-4.5 AF/day). MPWMD also continued monitoring as part of its ongoing ASR monitoring program. 

 

In late May and early June 2009, staff and consultants submitted application materials to the City of Seaside Board of Architectural Review (BAR) and met with city planning staff regarding the planned new “Chemical/Electrical” building that is to be constructed at the Phase 1 ASR site on the east side of General Jim Moore Boulevard.  The submittal included architectural sketches of two design options for the building and the entry gate to the facility.    The application was considered by the Seaside BAR on June 18, 2009. The BAR added several conditions to their selected Spanish-style design option in order to blend the design with the surrounding area.  The site’s water use for landscaping will be provided through an existing service connection with the Marina Coast Water District (the water service provider for the former Fort Ord).  This project was approved by the Seaside City Council in July 2009.  In October 2009, the District submitted the detailed construction plan set to the Seaside Building Services Department and these plans are currently being reviewed prior to issuance of the building permit.

 

 

 

 

Participate in Seaside Basin Management as Part of Watermaster Board and as Consultant to the Watermaster 

 

Action in July-September 2009:  District staff and consultants continue to carry out the many contractual tasks approved by the Watermaster in December 2008 for implementation of Seaside Basin Monitoring and Management Program (SBMMP). 

 

Discussion/Background:  The adjudication of the Seaside Basin also affects water project activities.  Litigation filed by CAW on August 14, 2003 asserted CAW’s water rights and requested a Court adjudication of the Seaside Basin.   The District intervened and participated in all litigation activities. Judge Roger Randall rendered a Final Decision on March 27, 2006.  The Decision was amended by the Court on February 9, 2007.  The complex and lengthy Decision determined that the Seaside Basin is in overdraft; set a reduced “natural safe yield” and a near-term “operating yield” allowed to be produced by the parties as they work toward a “physical solution” (including ASR and wastewater reclamation) to eliminate the overdraft.  

 

A nine-member Watermaster Board was created to implement the Decision with continued oversight by the Court.  The MPWMD holds one seat on the Watermaster with two out of 13 votes.  MPWMD Director Judi Lehman is the MPWMD representative to the Watermaster Board.  The Watermaster has held monthly meetings since its formal commencement on April 5, 2006.  District staff have also participated on the Watermaster Technical Committee and contributed significantly to the Seaside Basin Monitoring and Management Program Plan that was submitted to the Court in late May 2006.  District staff continued to contribute data and analysis as a Technical Committee member through 2006.  

 

On May 6, 2009, the Watermaster approved a declaration that no replenishment water is available to offset over-production in excess of the operating yield for the Seaside Basin for Water Year 2009.  Importantly, the declaration included a 10% reduction in the operating yield as required by the Seaside Basin adjudication decision.  This reduction means that CAW and the Seaside Municipal Water System must decrease their production from the Seaside Basin by 387 and 25 AFY, respectively, in Water Year 2009.  For additional details regarding the Watermaster’s declaration and the specific pumping reductions required in Water Year 2009, refer to the Watermaster website at:

 http://www.seasidebasinwatermaster.org/Agenda.pdf/5-6-09%20WM%20Board%20Pkt..pdf

 

Seaside Basin Management Program. On November 15, 2006, the Watermaster selected the MPWMD/MCWRA team to carry out the project management function for the Seaside Basin Monitoring and Management Program.  The firm of RBF Consulting was selected to implement the program (i.e., data collection, test well drilling, etc.).  At its April 18, 2007 special meeting, the Watermaster approved agreements with MPWMD, MCWRA and RBF Consulting Engineers for Phase 1 of technical work needed to complete and implement the SBMMP required by the Basin adjudication court decision.  The MPWMD agreement includes various SBMMP program management oversight tasks that are performed on an interim basis.  Some of these tasks have been taken over by the Watermaster’s part-time Technical Program Manager, hired in June 2007, to facilitate completion of SBMMP tasks, among other assigned duties. The Watermaster also approved staff recommendations to increase its Administrative Fund Budget due to a higher-than-anticipated level of work in 2007 by its part-time Chief Executive Officer, as well as an adjustment in its SBMMP Budget to cover anticipated Phase 1 work by contract service providers and the Technical Program Manager.

 

In June 2007, District staff delivered several database products to the Watermaster and its consultants under the District’s Phase 1 contract on the Watermaster’s Seaside Basin Monitoring and Management Program (SBMMP).  This work is part of an effort to build a comprehensive groundwater resources database to support various Watermaster uses.  The next major element of work for the District under this contract included assistance in preparing analyses, based on data that have been collected by the District and others, of the current status of seawater intrusion potential and tracking in the Seaside Basin

 

Beginning in July 2007, District staff worked with the consulting team headed by RBF Consulting to gather various sources of well data to facilitate development of the Watermaster’s groundwater resources database.  District staff also assisted with the implementation of the seawater detection and tracking portion of the Seaside Basin Monitoring and Management Plan (SBMMP).

 

A specific budget for MPWMD professional services for Phase 2 of the SBMMP was approved by the Watermaster Technical Advisory Committee on November 14, 2007, and by the full Watermaster Board on December 5, 2007.  The MPWMD Board approved the agreement on December 10, 2007, which includes a budget of $83,800 for MPWMD staff and consultants to provide a variety of technical hydrologic services during the 2008 calendar year related to groundwater monitoring, prevention of seawater intrusion and action plan development. The work to be performed includes:

  • Conduct ongoing data entry / database maintenance for the Watermaster’s water resource database that was developed in 2007 for the Watermaster by RBF Consulting in consultation with the MPWMD,
  •  Provide an update to the monitor well network enhancement report that was prepared in 2007 for the Watermaster by MPWMD,
  • Continue to collect monthly water levels for selected monitor wells under the Watermaster monitor program,
  • Continue to collect quarterly water quality samples under the Watermaster monitor program,
  • Expand monitoring to include the four new coastal “sentinel” monitor wells that were installed for the Watermaster in 2007,
  • Participate with Watermaster consultants and TAC members in preparation of the Watermaster’s Basin Management and Action Plan,
  • Participate with Watermaster consultants and TAC members in preparation of the Watermaster’s updated seawater intrusion analysis,
  • Prepare an Interim Seawater Intrusion Response Plan, consistent with the Court Decision, in coordination with Watermaster consultants and TAC members. 

 

Integrated Regional Water Management (IRWM) Planning 

 

Action in July-September 2009:  District staff continues to work with IRWM partners to obtain state funding for local programs.  The Monterey Bay area has been recognized as a formal IRWM region, and the District has requested that the California Department of Water Resources recognize that the plan itself was properly adopted by participating local agencies.   

 

Discussion/Background:  District staff led the effort to obtain $497,000 of Proposition 50 grant funds to prepare an Integrated Regional Water Management Plan (IRWMP) for the Monterey Peninsula, Carmel Bay, and South Monterey Bay Area.  Final approval of State Department of Water Resources (DWR) funding for preparation of the regional plan was made in early January 2006.  Since then, District staff has worked closely with local public and non-profit partners to complete the IRWMP, including retaining specialized consultants for this type of work.    The Final Plan was presented to the Board, which adopted it at the November 19, 2007 meeting. Completion of the IRWMP is a requirement for receiving Proposition 84 and/or 1E funds.

 

In June 2009, District staff traveled to Fresno for an interview with staff from the California Department of Water Resources (DWR), which is administering the IRWM grant program.  The purpose of the interview was to describe the rationale for forming the Monterey Peninsula, Carmel Bay, and South Monterey Bay Integrated Regional Water Management planning region and answer questions about the region from DWR.  This was the second formal step in the Regional Acceptance Process (RAP) set up by DWR to qualify regions to be in the IRWM program funded from the sale of bonds authorized under Propositions 84 and 1E.  In September 2009, DWR announced the results of the RAP and resume the process of soliciting grant applications for IRWM grant funds.  The District is appealing the decision not to include the Monterey Bay IRWMP in the group of plans eligible for the current round of funding.    

 

Other Related Action 

The following table summarizes other related District efforts relevant to overall water supply: 

 

 

ACTIVITY

ACTION

 

Seismic Retrofit and Sediment Removal from San Clemente Reservoir.

District staff participated fully in the EIR/EIS process on the seismic retrofit of San Clemente Dam, including submittal of extensive technical comments on the Draft EIR/EIS issued in April 2006. The Final EIR/EIS was certified by DWR on December 31, 2007.  District staff also participates in technical meetings and provides technical expertise upon request. District staff efforts in 2008-2009 continued to focus on concepts to address sedimentation and fish passage issues, including removal of the current dam in an effort led by the California Coastal Conservancy.  On February 20, 2009, CAW announced its decision to withdraw from cooperative efforts to remove San Clemente Dam. At its March 26, 2009 meeting, the District Board directed staff to write a letter supporting further pursuit of the dam removal alternative.  Discussions to reconsider the dam removal began again in Summer 2009.

 

Implement and Refine Water Distribution System (WDS) Rules and Regulations.

Ordinance No. 122 refining the Water Distribution System (WDS) process became effective on September 14, 2005.  The ordinance created a Pre-Application process for all new wells in the District along with an impact-based, multi-level permit process, based on the size, location and water use of affected parcels.  Staff and consultants continue to refine Implementation Guidelines to accompany the ordinance and improve public outreach, especially via the District website.  A total of 26 Applications and 36 Pre-Applications are currently at various stages in the permit process.  In October 2006, the Board confirmed the environmental review and permit protocol for applications that include wells located in the Carmel Valley Alluvial Aquifer.  This entails more rigorous review based on letters received from NMFS and CDFG on the cumulative impacts on water extractions from the Carmel River.   For expanded well information, please refer to the Water Wells section on at the District website homepage at:

http://www.mpwmd.dst.ca.us/pae/wds/wds.htm   

 

Review CEQA Documents for Other Projects

The District logs incoming CEQA notices and comments on selected documents prepared by other agencies for substantive projects within the District boundary that could potentially affect water supply, water quality or environmental resources managed by the District.  Major projects of interest this quarter include:  September Ranch Subdivision.

 

 

 

 

U:\staff\word\boardpacket\2009\20091019\InfoItems\21\item21.doc