ITEM:		CONSENT CALENDAR
4.	CONSIDER EXPENDITURE OF BUDGETED FUNDS FOR ASSISTANCE WITH IFIM TO ANALYZE INSTREAM FLOW REQUIREMENTS FOR THE CARMEL RIVER
Meeting Date:			June 17, 2013	Budgeted:	Yes
From:			David J. Stoldt,	Program/	Augment Water Supply
			General Manager	Line Item No.:	1-8-1 / 5-7860.19
Prepared By:			Larry Hampson	Cost Estimate:	$50,000
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on June 10, 2013 and recommended approval.
CEQA Compliance: N/A

SUMMARY: Staff proposes to retain Normandeau Environmental Consultants (Normandeau) to assist the District in developing a Scope of Work to apply the Instream Flow Incremental Methodology (IFIM) to address water rights issues in the Carmel River. IFIM is an accepted scientific approach to quantifying the effects to aquatic habitat from water diversions at various levels of instream flows. Results from this work can provide the basis for revising existing instream flow requirements necessary to protect steelhead and their habitat in the Carmel River. The National Marine Fisheries Service (NMFS), the California Department of Fish and Wildlife (CDFW), the District, and California American Water (Cal-Am) are interested in updating these instream flow requirements in order to best manage steelhead populations in the Carmel River.

Normandeau would provide services as described in Exhibit 4-A, including field visits to the Carmel River, assessment of data needs, assistance with a stakeholder workshop, and a draft Request for Proposals to carry out analyses required for developing a revised set of instream flow requirements.

RECOMMENDATION: Staff recommends approval of the expenditure of up to $50,000 in budgeted funds for assistance with developing an IFIM to revise instream flow requirements for the Carmel River. The Administrative Committee considered this matter at their June 10, 2013 meeting and voted to recommend approval. If this item is adopted with the Consent Calendar, the General Manager would be authorized to enter into an agreement for services with Normandeau Environmental Services for a not-to-exceed amount of $50,000.

IMPACTS TO STAFF/RESOURCES: Funds for this work are identified in the proposed FY 2013-14 Budget, Program Line Item 1-8-1, Other Water Supply Projects – Water Allocation/Water Rights. The original proposal from Normandeau anticipates expenses of $40,500. Staff is requesting an additional $9,500 for supplemental task work that may include budget development and assistance with review and/or interviews of prospective firms for completing an IFIM.

BACKGROUND: In addition to Carmel River water rights associated with the Aquifer Storage and Recovery (ASR) Water Projects 1 and 2, the District retains a permit from the State Water Resources Control Board (SWRCB) to divert up to 18,674 acre-feet per year (AFY) in direct diversions and diversion to storage. These rights were originally granted in October 1995 and were associated with the proposed New Los Padres Reservoir Project to build a new 24,000 acre-foot reservoir on the main stem of the Carmel River. Because a bond vote on this project failed in November 1995, MPWMD did not complete that project and has instead successfully petitioned SWRCB to split the original water right permit into three separate permits – two for ASR (Permits 20808A and 20808C) and a remainder permit (Permit 20808B). Water Projects 1 and 2 are operated under Permits 20808A and 20808C and are scheduled to be completed in 2014.

In the remainder Permit 20808B, SWRCB set a completion date for project work at December 1, 2020. Essentially, water must be put to use within the deadline set by the SWRCB. Failure to pursue a project diligently and in a timely fashion can result in revocation of part or the entire permit. Staff is considering submitting a change petition to SWRCB to allow additional points of injection/extraction in the Tularcitos Basin and in the Seaside Basin under this permit. In considering appropriate conditions for a new or revised permit, SWRCB must consider the effect of the District’s proposal on public trust resources where feasible (see the Mono Lake decision National Audubon Society v. Superior Court (1983) 33 Cal.3d 419 [CaI.Rptr. 346]). SWRCB currently relies on a modified set of instream flows developed by the National Marine Fisheries Service (NMFS) in 2002 to balance the public trust. Flow in the river must exceed the minimum instream flow requirement in order for diversions to occur.

For ASR permits, there is a relatively low long-term estimated yield (1,920 AFY) compared to the face amount of the water rights (5,326 AFY). One reason is the limit on the maximum instantaneous rate of diversion set by the SWRCB, which is based on averaging the face amount of the diversion over the diversion period. Another reason is that the current instream flow requirements reduce the time during which diversions can occur, and the final reason is that the season of diversion is limited to December 1 to the following May 31. In order to propose any changes to the current set of instream flow requirements, the District will need to submit information showing that the instream flow requirements can be modified to allow proposed new diversions and still protect public trust resources.

NMFS, CDFW, the District, and Cal-Am are all interested in updating these instream flow requirements in order to best manage steelhead populations in the Carmel River. Previous instream flow studies, which were based on field data gathered mostly in the 1970s and 1980s by MPWMD, concentrated on portions of the river upstream of the Narrows at River Mile 9.6 (measured from the ocean) and did not analyze habitat conditions downstream of the Narrows, where the channel was dewatered annually and both episodic and chronic erosion occurred. Habitat values and the form of the channel downstream of the Narrows have improved significantly since the early 1990s as a result of Cal-Am system operational changes, intensive river restoration work, and implementation of the ASR program. MPWMD data show that the lower river supports adult spawning in the winter and can support a large population of fish in the spring and early summer. In addition to evidence of increased use of habitat by steelhead downstream of the Narrows, ongoing channel monitoring in the lower river during the present diversion season (December 1 to May 31) indicate that adults and juveniles are able to migrate at lower flows than what are required by existing instream flow requirements.

While the SWRCB has limited the diversion season for ASR permits to December 1 to May 31, the diversions season for the remainder permit is currently November 1 through June 30 of the following year. Preliminary analysis of water availability indicates that there may be up to 25% of years when flow in June is in excess of current instream requirements.

In an IFIM process, the District would evaluate flow levels throughout the water year and for all life stages of steelhead. In addition, inflow to the lagoon during the June 1 to November 30 period would be evaluated. The primary goal of the study would be to develop instream flow recommendations acceptable to stakeholders that optimize steelhead habitat and maximize use of existing and future diversion infrastructure for municipal supply.

Normandeau Environmental Consultants Proposal

Thomas Payne, the principal involved with this project, has been a consulting fisheries biologist for more than 30 years and has conducted or reviewed over two hundred instream flow studies on proposed and existing hydroelectric and irrigation projects and other water rights issues. He brings a wealth of experience with water rights issues as well as technical expertise in steelhead biology.

District staff would work with Mr. Payne to determine an appropriate process to involve stakeholders, delineate stream reaches to model, assess existing and needed data sets, determine the type of analyses to be conducted and develop a Request for Proposals to model the Carmel River. A budget and schedule for completing an IFIM would be developed after an initial data assessment and selection of model approach.

EXHIBIT

4-A Normandeau Environmental Consultants Proposal for Technical Assistance with Carmel River IFIM Application

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