ITEM:		PUBLIC HEARING
22.	CONSIDER ADOPTION OF JULY THROUGH SEPTEMBER 2013 QUARTERLY WATER SUPPLY STRATEGY AND BUDGET
Meeting Date:			June 17, 2013	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Kevan Urquhart/	Cost Estimate:	N/A
			Jonathan Lear
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 September 2001 and February 2009 Conservation Agreements between the National Marine Fisheries Service and California American Water to minimize take of listed steelhead in the Carmel River and Consistent with 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 July through September 2013 Quarterly Water Supply Strategy and Budget for the California American Water (Cal-Am) Main and Laguna Seca Subarea Water Distribution Systems (WDS). The proposed budget, which will be presented at the meeting as Exhibits 22-A and 22-B, shows monthly production by source of supply that is required to meet projected customer demand in Cal-Am’s Main and Laguna Seca Subarea systems, i.e., Ryan Ranch, Bishop, and Hidden Hills, during the July through September 2013 period. The proposed strategy and budget is designed to maximize the long-term production potential and protect the environmental quality of the Seaside Groundwater and Carmel River Basins. The item exhibits were not available in advance due to tight scheduling for this month’s Board meeting, but are included with this revised report.

Exhibit 22-A shows the anticipated production by Cal-Am’s Main system for each production source and the actual production values for the Water Year (WY) 2013 to date through the end of May 2013. The anticipated production values assume that Cal-Am’s annual main system production will not exceed 12,856 acre-feet (AF), which includes 2,669 AF of native water from the coastal subareas of the Seaside Groundwater Basin, 300 AF from the Sand City Desalination Plant, 644 AF from Aquifer Storage and Recovery (ASR) projects (i.e., 131 AF from WY 2012 injection; 295 AF from WY 2013 injection; 218 AF remaining from pre-permanent water rights injection), and 9,243 AF from the Carmel River Basin. The 218 AF is the remaining amount to be recovered from injection during the 10-year injection testing period prior to issuance of permanent ASR water rights in WY 2008. The total from the Carmel River Basin is consistent with State Water Resources Control Board (SWRCB) Water Rights Order Nos. 95-10, 98-04, 2002-0002, and 2009-0060. In addition, Cal-Am has a native water allocation of 147 AF from production from its satellite systems in the Laguna Seca Subarea of the Seaside Basin, that when combined with the 2,669 AF from the coastal subareas, results in a total native water allocation of 2,816 AF. The combined total from the Seaside Basin is consistent with the Seaside Basin Adjudication Decision. For the purpose of this budget, it is assumed that “critically dry” inflow conditions will occur for the last quarter of WY 2013.

Exhibit 22-B shows the anticipated production by Cal-Am’s Laguna Seca Subarea systems for each production source and the actual production values for WY 2013 to date through the end of May 2013. Please note that the anticipated production values assume that Cal-Am’s annual Laguna Seca Subarea systems’ production will not exceed 147 AF from the Laguna Seca Subarea of the Seaside Groundwater Basin, whereas actual demand will exceed that amount.

RECOMMENDATION: The Board should receive public input, close the Public Hearing, and discuss the proposed quarterly water supply budget. District staff will recommend adoption of the proposed budget. The budget is described in greater detail in Exhibit 22-C, Quarterly Water Supply Strategy Report: July – September 2013.

BACKGROUND: The Quarterly Water Supply Strategy and Budget pertains to production within Cal-Am’s Main and Laguna Seca Subarea systems for the three-month period of July, August, and September 2013. Staff from the District, the California Department of Fish and Wildlife (CDFW), Cal-Am, and National Marine Fisheries Service (NMFS) met to cooperatively develop this strategy on June 11, 2013. Based on current river flow, reservoir and Carmel Valley Alluvial Aquifer storage conditions, and the rainfall that has occurred to date, it was determined that “critically dry” year inflows would be used to assess Cal-Am’s operations and set monthly production targets for Cal-Am’s systems for the next quarter. The water supply strategy for the coming quarter, Exhibits 22-A, 22-B, and 22-C have been prepared and posted as quickly as possible on the District’s web page, and are available at the Board Meeting. Minor changes in projected target values for the lower Carmel River Aquifer sources are due to incorporation of the most recent actual production data available from Cal-Am monthly reports.

The permitted diversion season for ASR ended May 31, and does not begin again until December 1 of this year, which will be during the following water year, WY 2014.

It is expected that Cal-Am will not divert any water from San Clemente Reservoir through the Carmel Valley Filter Plant during this quarter, based on past practice and their September 2001 and February 2009 Conservation Agreements with the NMFS. Cal-Am will operate its wells in the Lower Carmel Valley in a downstream-to-upstream order. If actual natural river inflows are less than projected for the budget period, the group will reconvene and adjust the Los Padres Dam 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

22-A Quarterly Water Supply Strategy and Budget for Cal-Am Main System: Jul - Sep 2013

22-B Quarterly Water Supply Strategy and Budget for Cal-Am Subsystems: Jul - Sep 2013

22-C Quarterly Water Supply Strategy and Budget Report: Jul - Sep 2013

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