1. Management Objectives

The Monterey Peninsula Water Management District (District) desires to maximize the long-term production potential and protect the environmental quality of the Carmel River and Seaside Groundwater Basins. In addition, the District desires to maximize the amount of water that can be diverted from the Carmel River Basin and injected into the Seaside Groundwater Basin while complying with the instream flow requirements recommended by the National Marine Fisheries Service (NMFS) to protect the Carmel River steelhead population. To accomplish these goals, a water supply strategy and budget for production within California American Water’s (Ca-Am’s) Main and Laguna Seca Subarea water distribution systems is reviewed quarterly to determine the optimal strategy for operations, given the current hydrologic and system conditions, and legal constraints on the sources and amounts of water to be produced.

2. Quarterly Water Supply Strategy: January - March 2012

On December 8, 2011, staff from the District, Cal-Am, the California Department of Fish and Game (CDFG), and the United States Fish and Wildlife Service (USFWS) met and discussed the proposed water supply strategy and related topics for the remainder of December 2011 and the January-March 2012 period. Staff from NMFS were unable to attend, but were consulted by phone for their approval. Currently, flow in the Carmel River is still partially regulated by releases from Los Padres Reservoir (LPR). Both San Clemente Reservoir (SCR) and LPR are not yet spilling, and LPR is at 65% of effective storage capacity, i.e., 1148.9 vs. 1774.5 AF at the end of November, with the notch’s flashboard in place. Flow in the Carmel River is continuous to the lagoon, and the lagoon mouth is closed, but has been opened once so far this winter by Monterey County to prevent the lagoon from inundating nearby homes. Rainfall during Water Year 2012 to date at San Clemente Dam in the upper watershed has totaled 3.30 inches or 115% of the long-term average to date at this site, and 15.0% of the long-term annual average of 21.45 inches. Further, unimpaired runoff at San Clemente Dam for WY 2012 through November has totaled approximately 1,863 AF or about 112 % of the long-term average to date for this site, and 3.0% of the long-term annual average of 69,199 AF.

Carmel River Basin Given these conditions, and early season runoff to date, it was agreed that “normal year” inflows would be initially assumed to assess Cal-Am’s operations during the January through March 2012 period. To meet customer demand, Cal-Am would operate its wells in the Lower Carmel Valley in a downstream-to-upstream sequence, as needed. For the quarterly budget, it was agreed that Cal-Am would produce no groundwater from its wells in the Upper Carmel Valley during January through March 2012. If sufficient flow in the Carmel River at the District’s Don Juan Bridge gage in Garland Park, i.e., five consecutive days of 20 or more cubic feet per second (cfs), occurs to justify operations allowed under the less restrictive high-flow period, Cal-Am could operate these wells if needed. In addition, it is projected that Cal-Am would produce approximately 1,020, 1,037, and 1,202 AF of groundwater from its wells in the Lower Carmel Valley during January, February, and March 2012, respectively.

It was also agreed that releases from Los Padres Reservoir would be increased by 5 cfs during December to a target of 23 cfs at the Sleepy Hollow Weir (Table 1), in order to enhance flow in the Carmel River that would potentially provide marginally adequate downstream passage flows for juvenile steelhead, and increase inflow into the lagoon to maximize its water quality and volume. This increase will also provide additional flow and habitat in the lower Carmel River for resident juvenile steelhead, as well as those that have been released from the District’s Sleepy Hollow Steelhead Rearing Facility into the Carmel River. District staff began releasing juveniles from the facility on November 1, 2011 and finished on November 8, 2011.

Lastly, it was assumed that 230, 300, and 340 AF of groundwater would be diverted from the Carmel River Basin and injected into the Seaside Groundwater Basin during the during January, February, and March 2012, respectively. Because of the uncertainty in predicting future rainfall and runoff amounts, this assumption is subject to change.

Seaside Groundwater Basin It was also agreed that, subject to rainfall and runoff conditions in the Carmel River, Cal-Am would cease production from the Coastal Subareas, except for production from the Sand City Desalination Plant, and allow the Seaside Basin to naturally recharge. It was also agreed that Cal-Am would attempt to produce only 7, 6, and 9 AF of groundwater from its wells in the Laguna Seca Subarea of the Seaside Basin for customers in the Ryan Ranch, Bishop, and Hidden Hills systems during January, February, and March 2012, respectively. It is recognized that, based on recent historical use, Cal-Am’s actual production from the Laguna Seca Subarea during this period will likely exceed the proposed monthly targets, which are based on Cal-Am’s allocation specified in the Seaside Basin Adjudication Decision. For example, in the January through March 2011 period, Cal-Am produced 21, 21, and 21 AF from the Laguna Seca Subarea to meet customer demand in the Ryan Ranch, Bishop, and Hidden Hills systems. In this context, the production targets represent the maximum monthly production that should occur so that Cal-Am remains within its adjudicated allocation for the Laguna Seca Subarea. Under the amended Seaside Basin Decision, Cal-Am is allowed to use production savings in the Coastal Subareas to offset over-production in the Laguna Seca Subarea. However, not much if any production savings are likely with the restrictions imposed on Carmel River diversions by the State Water Resources Control Board’s Water Rights Order No. 2009-0060.

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