ITEM:		PUBLIC HEARINGS
19.	CONSIDER ADOPTION OF APRIL THROUGH JUNE 2011 QUARTERLY WATER SUPPLY STRATEGY AND BUDGET
Meeting Date:			March 21, 2011	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 April through June 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 19-A and 19-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 April through June 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 19-A shows the anticipated production by CAW’s Main system for each production source and the actual production values for the Water Year (WY) 2011 to date through the end of February 2011. The anticipated production values assume that CAW annual main system production for customer service will not exceed 13,631 acre-feet (AF), including 3,202 AF from CAW’s wells in the Coastal Subareas of the Seaside Groundwater Basin, 300 AF from Sand City Desalination Plant, 1,111 AF from Water Project 1 (formerly Phase 1 ASR), and 9,018 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 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 WY.

Exhibit 19-B shows the anticipated production by CAW’s Laguna Seca Subarea system for each production source and the actual production values for the WY to date through the end of February 2011. 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, whereas actual demand will exceed that amount. This total is consistent with the Seaside Basin adjudication decision.

If stream flow in the Carmel River exceeds the instream flow requirements specified by National Marine Fisheries Service (NMFS), a portion of the “excess” water may be diverted by CAW for injection into the Seaside Groundwater Basin as part of Water Project 1. The amount of water diverted from the Carmel River that is treated and delivered for injection will also depend on competing 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 19-C, Quarterly Water Supply Strategy Report: April – June 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 April, May, and June 2011. Staff from the District, CAW, and California Department of Fish and Game (CDFG), cooperatively developed this strategy on March 8, 2011. Based on current reservoir and Carmel Alluvial Aquifer storage conditions, river flows in October 2010 through February 2011, 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 try to avoid producing any groundwater from its wells in the Upper Carmel Valley during April through June 2011, and will focus instead on producing approximately 832, 769, and 855 AF of groundwater from its wells in the Lower Carmel Valley during April, May, and June 2011, respectively. Of this production, it is assumed that 281 AF would be diverted from the Carmel River and injected for storage into the Seaside Groundwater Basin during April 2011.

It was also agreed that, subject to rainfall and runoff conditions in the Carmel River Basin, CAW would produce 450, 500, and 500 AF of water in April, May and June 2011, respectively, from the Coastal Subareas of the Seaside Basin, in addition to 25 AF per month from the Sand City Desalination Plant during this period. It was also agreed that CAW would budget to produce 17, 24, and 28 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

19-A Quarterly Water Supply Strategy and Budget for CAW Main System: April - June 2011

19-B Quarterly Water Supply Strategy and Budget for CAW Laguna Seca Subarea: April - June 2011

19-C Quarterly Water Supply Strategy and Budget Report: April - June 2011

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