ITEM:		PUBLIC HEARING
21.	CONSIDER ADOPTION OF JANUARY THROUGH MARCH 2011 QUARTERLY WATER SUPPLY STRATEGY AND BUDGET
Meeting Date:			December 13, 2010	Budgeted:	N/A
From:			Darby Fuerst,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Kevan Urquhart	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: Notice of Exemption, CEQA, Article 19, Section 15301 (Class 1)
ESA Compliance: Consistent with the 2001 Conservation Agreement, 2009 Settlement Agreement between the National Marine Fisheries Service and California American Water to minimize take of listed steelhead in the Carmel River, and SWRCB WR Order Nos. 95-10, 98-04, 2002-0002, and 2009-0060.

SUMMARY: The Board will accept public comment and take action on the January through March 2011 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 21-A and 21-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 2011 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 21-A shows the anticipated production by CAW’s Main system for each production source and the actual production values for Water Year (WY) 2011 to date through the end of November 2010. The anticipated production values assume that CAW annual main system production will not exceed 13,631.5 acre-feet (AF), including 4,599.2 AF from the coastal subareas of the Seaside Groundwater Basin and 9,032.3 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 2009-0060. The total from the Seaside Groundwater Basin is consistent with the Seaside Basin adjudication decision, and includes 115.5 AF of “Carryover Credit” from WY 2010 that CAW was allowed to produce, but did not produce that year due to physical constraints within its existing delivery system. For the purpose of this budget, it is conservatively assumed that normal inflow conditions will occur for the rest of the water year.

Exhibit 21-B shows the anticipated production by CAW’s Laguna Seca Subarea systems for each production source and the actual production values for the WY to date through the end of November 2010. Please note that the budgeted production values assume that CAW’s annual Laguna Seca Subarea systems’ production for WY 2011 will not exceed 246 AF from the Laguna Seca Subarea of the Seaside Groundwater Basin. This total is consistent with the Seaside Basin adjudication decision.

If streamflow in the Carmel River exceeds the instream flow requirements specified by National Marine Fisheries Service (NMFS), a portion of the “excess” groundwater may be diverted from the Carmel River Alluvial Aquifer 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 Alluvial Aquifer that is treated and delivered for injection will also depend on customer demand and CAW production system availability 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 21-C, Quarterly Water Supply Strategy Report: January – March 2011.

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 2011. Staff from the District, CAW, and California Department of Fish and Game (CDFG), cooperatively developed this strategy on December 1, 2010. Based on current reservoir and Carmel River Alluvial Aquifer storage conditions, the higher than average base river flows in October and November 2010, it was agreed that “normal” year inflows would be used to conservatively assess CAW’s operations and set monthly production targets for CAW’s systems.

To meet customer demand in its main system, CAW intends to avoid producing any groundwater from its wells in the Upper Carmel Valley during January through March 2011, and will focus instead on producing approximately 1,071, 1,138, and 1,293 AF of groundwater from its wells in the Lower Carmel Valley during January, February, and March 2011, respectively. Of this production, it is assumed that 200, 342, and 378 AF would be diverted from the Carmel River Alluvial Aquifer and injected for storage into the Seaside Groundwater Basin during the January through March 2011 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, except from the Sand City Desalination Plant, and would allow the basin to naturally recharge. In addition, it was also agreed that CAW would plan to produce 11, 10, and 14 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

21-A Quarterly Water Supply Strategy and Budget for CAW Main System: January - March 2011

21-B Quarterly Water Supply Strategy and Budget for CAW Laguna Seca Subarea: January - March 2011

21-C Quarterly Water Supply Strategy and Budget Report: January – March 2011

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