SEASIDE GROUNDWATER BASIN WATERMASTER REGULAR BOARD MEETING AGENDA WEDNESDAY, MAY 4, :00 P.M. MEETING LOCATION

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1 SEASIDE GROUNDWATER BASIN WATERMASTER REGULAR BOARD MEETING AGENDA WEDNESDAY, MAY 4, :00 P.M. MEETING LOCATION MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY BOARD ROOM, 5 HARRIS COURT, BUILDING D RYAN RANCH MONTEREY, CALIFORNIA WATERMASTER BOARD: (FOR CALENDAR YEAR 2014 & 2015) Coastal Subarea Landowner Director Paul Bruno, Chair City of Seaside Mayor Ralph Rubio, Vice Chair California American Water Director Eric Sabolsice City of Sand City Mayor David Pendergrass Monterey Peninsula Water Management District Director Bob Brower Laguna Seca Subarea Landowner Director Bob Costa City of Monterey Councilmember Libby Downey City of Del Rey Oaks Mayor Jerry Edelen Monterey County/Monterey County Water Resources Agency Supervisor Dave Potter, District 5 I. CALL TO ORDER II III. IV. ROLL CALL MINUTES The minutes of the Regular Board meeting of December 2, and the minutes of the Special Board meeting of February 17, are attached to this agenda. The Board is requested to consider approving both sets of minutes. REVIEW OF AGENDA If there are any items that arose after the 72-hour posting deadline, a vote may be taken to add the item to the agenda pursuant to the requirements of Government Code Section (b). (A 2/3-majority vote is required). V. PUBLIC COMMUNICATIONS Oral communications is on each meeting agenda in order to provide members of the public an opportunity to address the Watermaster on matters within its jurisdiction. Matters not appearing on the agenda will not receive action at this meeting but may be referred to the Watermaster Administrator or may be set for a future meeting. Presentations will be limited to three minutes or as otherwise established by the Watermaster. In order that the speaker may be identified in the minutes of the meeting, it is helpful if speakers would use the microphone and state their names. Oral communications are now open. VI. VII. CONSENT CALENDAR A. Consider Approval of Summary for Payments made during December, 2015 totaling $26, B. Consider Final Fiscal Year 2015 Financial Reports covering January 1 through December 31, INFORMATIONAL REPORTS (No action required) No Reports VIII. ADJOURNMENT OF FINAL MEETING OF THE WY 2014 AND 2015 WATERMASTER BOARD OF DIRECTORS This agenda was forwarded via to the City Clerks of Seaside, Monterey, Sand City and Del Rey Oaks; the Clerk of the Monterey Board of Supervisors, the Clerk to the Monterey Peninsula Water Management District; the Clerk at the Monterey County Water Resources Agency, Monterey Regional Water Pollution Control Agency and the California American Water Company for posting on April 1, 2016 per the Ralph M. Brown Act, Government Code Section (a).

2 ITEM NO. III. MINUTES 2

3 REGULAR MEETING MINUTES Seaside Groundwater Basin Watermaster (Watermaster) December 2, 2015 I. CALL TO ORDER Chair Bruno called the meeting to order at 2:00 p.m. II. ROLL CALL Coastal Subarea Landowner Director Paul Bruno, Chair California American Water (CAW) Director Eric Sabolsice City of Sand City Mayor David Pendergrass City of Del Rey Oaks Mayor Jerry Edelen Monterey Peninsula Water Management District (MPWMD) Director Robert Brower City of Seaside Mayor Ralph Rubio Absent: City of Monterey Councilmember Libby Downey Laguna Seca Subarea Landowner Director Bob Costa Monterey County/Monterey County Water Resources Agency Supervisor Dave Potter III. APPROVAL OF MINUTES It was moved by Director Sabolsice, seconded by Mayor Edelen, and unanimously carried to approve as presented the minutes of the Watermaster Special Meeting held October 21, IV. REVIEW OF AGENDA There were no requested changes to the agenda. V. PUBLIC COMMUNICATIONS There were no public communications. VI. CONSENT CALENDAR A. Consider Approval of Summary for Payments made during the month of October, 2015 totaling $27, B. Consider Approving Financial Reports through October 31, 2015 C. Consider Approving the 2015 Seawater Intrusion Analysis Report. The complete SIAR is posted on the Watermaster website at D. Consider Approval of Minor Revisions to the Work Plan and Budget for the Management and Monitoring Program for FY2016 Moved by Mayor Rubio, seconded by Mayor Pendergrass, and unanimously carried to approve the consent calendar as presented. VII. ORAL PRESENTATION: None VIII. OLD BUSINESS: Consider approval of Amendment No.1 to Request for Service (RFS) No to HydroMetrics WRI to perform modeling to determine where the flow divide in the vicinity of the Laguna Seca Subarea s eastern boundary is located. Mr. Jacques reviewed his memorandum, stating that the flow regime along the boundary is much more complex than expected. He did not anticipate 3

4 Seaside Groundwater Basin Watermaster Special Board Meeting 12/2/15 Page 2 of 3 any further modeling needed beyond that being proposed today for the foreseeable future. The proposed modeling would help collaboration with other agencies in determining how best to mitigate declining groundwater levels in the Laguna Seca Subarea. Moved by Director Brower, seconded by Mayor Rubio, and unanimously carried to approve Amendment No. 1 to Request for Service (RFS) No to HydroMetrics WRI to perform modeling to determine the location of the flow divide in the eastern boundary vicinity of the Laguna Seca Subarea. IX. NEW BUSINESS A. Discussion/Consider Adopting for Water Year 2016 a Declaration regarding the Unavailability of Artificial Replenishment Water. It was moved by Mayor Rubio, seconded by Mayor Edelen, and unanimously carried to adopt for Water Year 2016 a Declaration regarding the Unavailability of Artificial Replenishment Water and listed allocations. B. Discussion/consider approving Watermaster Annual Report for Water Year The complete draft version is posted on the Watermaster s website at Mr. Jaques reviewed the TAC approved draft report. Mayor Edelen requested that the title of Chair and Vice Chair be placed respectively next to Director Bruno and Mayor Rubio on the list of board members and alternates in the report. Director Sabolsice requested that the first sentence of the second paragraph under section E be corrected to correspond with the information in the paragraph above it. It was moved by Director Sabolsice, seconded by Mayor Rubio, and unanimously carried to approve the Watermaster Annual Report for Water Year 2015 with the noted changes made. C. Discussion/consider approving Professional Services Contracts for Fiscal Year Mr. Jaques reviewed the contracts noting changes from last year s work scopes. It was moved by Mayor Pendergrass, seconded by Director Brower, and unanimously carried to approve 1) two contracts with Monterey Peninsula Water Management District (MPWMD) one for $82,150 to cover their normal Management and Monitoring Program (M&MP) tasks as in preceding years and to conduct ongoing data entry/database maintenance, the second contract is for $4,788 is to perform water level and water quality data collection for specified wells in the Seaside Basin; and 2) two contracts with HydroMetrics Water Resources, Inc. one for $11,400 to cover their providing general hydrogeologic consulting services during the year, and the second contract for $20,390 is to prepare the Seawater Intrusion Analysis Report (SIAR) for D. Discussion/consider sending letter to Monterey County to initiate collaboration. 4

5 Seaside Groundwater Basin Watermaster Special Board Meeting 12/2/15 Page 3 of 3 It was moved by Mayor Edelen, seconded by Mayor Rubio, and unanimously carried to approve sending a letter to Monterey County to initiate collaboration to seek solution to the problem of declining water levels in the Laguna Seca Subarea. X. INFORMATIONAL REPORTS (No Action Required) A. Milestones B. Water Production Report for WY 2014/2015 XI. DIRECTORS REPORTS: Mayor Edelen requested that the Del Rey Oaks Shea Well be tested as part of the Watermaster monitoring network to benefit from another data point. Mr. Jaques and Mr. Oliver will follow up on the request. Director Bruno reminded of the Christmas party to be held on Wednesday, December 9 th at his home. XII. EXECUTIVE OFFICER COMMENTS: Mr. Evans noted that the TAC meeting on December 9, 2015 will be cancelled. The Watermaster 2015 Annual Report to court will be filed on or before December 15, 2015 by CAW legal counsel Lori Girard. In the early part of 2016 the Watermaster intends to file a noticed motion with the Court regarding several issues: (1) requesting a stay of the 2015 and 2018 Operating Yield reductions, (2) updating the Court concerning recent regional water supply developments pertinent to the Seaside Basin, and (3) updating the Court concerning the recent modeling results and findings concerning the LSSA and the Watermaster s intended work plan to address long-term water reliability for the subbasin. The filing may also include other requests related to direction on interpretation of the Decision. Mr. Evans proposed that the Regular Board Meeting scheduled for January 6, 2016 be a work session for the board, with Counsel Russ McGlothlin participating by telephone, to formulate the noticed motion items. XIII. NEXT MEETING DATE: The next meeting of the Watermaster board will be held January 6, 2016 at the Monterey Regional Water Pollution Control Agency (MRWPCA) Board meeting room at 5 Harris Court, Building "D" on Ryan Ranch in Monterey at 2:00 p.m. XIV. There being no further business, Chair Bruno adjourned the meeting at 2:40 p.m. 5

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7 SPECIAL MEETING MINUTES Seaside Groundwater Basin Watermaster (Watermaster) February 17, 2016 I. CALL TO ORDER Chair Bruno called the meeting to order at 2:00 p.m. II. ROLL CALL Coastal Subarea Landowner Director Paul Bruno, Chair California American Water (CAW) Director Eric Sabolsice City of Sand City Mayor David Pendergrass City of Del Rey Oaks Mayor Jerry Edelen Monterey Peninsula Water Management District (MPWMD) Director Robert Brower City of Seaside Mayor Ralph Rubio Monterey County/Monterey County Water Resources Agency Supervisor Dave Potter Absent: City of Monterey Director Libby Downey Laguna Seca Subarea Landowner Director Bob Costa III. REVIEW OF AGENDA There were no requested changes to the agenda. IV. PUBLIC COMMUNICATIONS There were no public communications. Chair Bruno appointed an ad hoc committee comprised of the members of the Watermaster Administrative Committee: Directors Sabolsice, Bruno, Pendergrass, and Rubio, to review Watermaster staffing. Mr. Evans will coordinate with members in scheduling a meeting. V. REPORT ON WATER FLOW DIVIDE STUDY AND SUPERIOR COURT UPDATE B. Discussion/Consider taking action on 2016 Update to the Superior Court by Mr. Russ McGlothlin as the basis for his preparation of an Appendix Report to be presented at a Superior Court Status Conference Hearing in April/May Mr. McGlothlin participated in the meeting via conference call, presenting slides of the subjects that will be covered in a Watermaster update to the court. A new judge has been assigned to the Decision as of January 29, 2016: Honorable Leslie Nichols (Ret.). No action would be requested from the new judge at the status conference hearing, only input and direction. The Board concurred to move forward with the update to court as presented by Mr. McGlothlin. Watermaster staff will support Mr. McGlothlin where appropriate with preparation of any non-legal documents. Mr. McGlothlin will draft within a week an outline of where Watermaster staff assistance would be most helpful. The Board accepted the report as informational and provided the noted direction to staff. A. Discussion/Consider taking action on Water Flow Divide Study in the vicinity of Laguna Seca Subarea (LSSA) Eastern Boundary prepared by HydroMetrics WRI. Mr. Derrick Williams of HydroMetrics participated in the meeting via conference call, noting that the results of the flow divide modeling are consistent with an update to the court in regard to the LSSA as suggested by Mr. McGlothlin. 7

8 Seaside Groundwater Basin Watermaster Special Board Meeting 2/17/16 Page 2 of 2 The Groundwater Sustainability Agency (GSA) under the Sustainable Groundwater Management Act being formed for the Salinas Valley Corral de Tierra area will most likely undertake a more thorough geologic understanding of the area. A GSA basin management plan is required to be in place by Under current conditions, material injury to the Basin in the LSSA is not expected to occur until after at least the year Supervisor Potter urged the Watermaster to take a more active role in Monterey County Water Resources Agency (MCWRA) meetings and planning related to the Corral de Tierra area. Mr. Jaques reminded that Watermaster sent a letter to MCWRA requesting collaboration regarding basin management of the Corral de Tierra area; Supervisor Potter will follow up on the correspondence post haste. Rob Johnson, MCWRA Deputy General Manager, addressed the board noting that the County and MCWRA is part of a consortium that is facilitating the development of a GSA for the Salinas Valley Basin that currently includes the Seaside and Corral de Tierra basins. The GSA is to be established by June 30, A basin boundary modification/adjustment request formulated by the County, MCWRA, MPWMD, Marina Coast Water District, and Seaside Basin Watermaster staff will be submitted to the Department of Water Resources by March 30, If the modifications are accepted, the Salinas Valley basins will be better defined and the Seaside Groundwater Basin will be removed from inclusion as a Salinas Valley basin and would stand alone as an adjudicated basin. It was recommended that a Watermaster representative attend GSA development meetings; Mr. Johnson will notify Mr. Jaques of upcoming meetings. Mr. Oliver elaborated on the basin boundary modifications/adjustments being sought. The Board accepted the report with direction to staff as discussed. VI. DIRECTORS REPORTS: None. VII. EXECUTIVE OFFICER COMMENTS: Mr. Evans noted that the election of officers will be held at the March 2 nd regular board meeting if not cancelled. VIII. NEXT MEETING DATE: The next meeting of the Watermaster board will be held March 2, 2016 at the Monterey Regional Water Pollution Control Agency (MRWPCA) Board meeting room at 5 Harris Court, Building "D" on Ryan Ranch in Monterey at 2:00 p.m. IX. There being no further business, Chair Bruno adjourned the meeting at 3:13 p.m. 8

9 ITEM NO. VI. CONSENT CALENDAR 9

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11 SEASIDE GROUNDWATER BASIN WATERMASTER ITEM VI.A TO: FROM: Board of Directors Dewey D Evans, CEO DATE: May 4, 2016 SUBJECT: Summary of Payments Authorized and paid during the months of November and December, PURPOSE: To advise the Board of payments authorized and paid during the months of November and December, RECOMMENDATIONS: Consider approving the payment of bills submitted and paid during the months of November and December, COMMENTS and FISCAL IMPACT: NOVEMBER, 2015 DDEvans Consulting (Professional Services Agreement CEO) October 29, 2015 through November 27, 2015 worked on Watermaster business a total of 54.0 hours at $ per hour or $5, Responded to telephone inquiries, , and other correspondence as needed regarding the Seaside Basin. Received and reviewed water production and water level reports. Worked on Declaration of No Replenishment Water for WY 2016; sent out request for Board meeting agenda items for December 2, Worked on Board meeting agenda packet for December 2 nd ; Received and reviewed TAC meeting agenda packet; Worked on Annual Report to the Court. Spent time working on Watermaster holiday party preparation; Sent out Board meeting packet and posting notice. Robert Bob Jaques (Technical Program Manager) October 27, 2015 through November 25, 2015 worked on Watermaster business a total of 60.0 hours at $ per hour or $6, Responded to , telephone inquiries and other correspondence on a variety of Watermaster issues. Worked on TAC agenda packet and attended the November 18, 2015 TAC meeting; Worked on Annual Report to the Court; Prepared for and participated in SGMA webcast from SWRCB-DWR. Prepared model documentation materials to provide to MCWRA; Reviewed draft SIAR and draft Flow Divide Study from HydroMetrics; reviewed and approved HydroMetrics invoices. Set up and participated in conference call for November 24 th Flow Divide Study issues, revised discussion paper on LSSA groundwater issues. Prepare HydroMetrics Amendment No. 1 to RFS HydroMetrics Water Resources, Inc. Two invoices were submitted for payment totaling $5, The first invoice for $2, was for 14.0 hours of work preparing groundwater 11

12 elevation contour maps for the SIAR and for attending TAC meeting by telephone on November 18 th to present findings of the report. The second invoice for $2, spending hours of work reviewing and preparing and attending November 24 th telephone meeting with Bob Jaques, Gus Yates and Joe Oliver on Laguna Seca Groundwater Divide issues. Brownstein Hyatt Farber Schreck, LLP Two invoices were submitted for payment totaling $ for providing legal services for September and October, 2015 in response to telephone calls from D. Evans and B. Jaques regarding request from MCWRA for modeling data, reviewing DWR basin designation map and court strategy regarding LSSA and basin boundaries. TODD Groundwater Two invoices were submitted for payment totaling $1, for providing professional services in connection with On-Call hydrogeologic consulting services for October, $ and November, $ Total for November, 2015 $18, DECEMBER, 2015 DDEvans Consulting (Professional Services Agreement CEO) November 29, 2015 through December 31, 2015 worked on Watermaster business a total of 53.5 hours at $ per hour or $5, Responded to telephone inquiries, and other correspondence as needed regarding the Seaside Basin. Received and reviewed water production and water level reports. Worked on and prepared for December 2, 2015 Board of Director s meeting; sent to City of Monterey City Clerk s office regarding future Board packets; ed to Attorney David Sweigert regarding replenishment calculation report and attended and followed-up on Board of Director s December 2 nd Board meeting. Sent Annual Report to Lori Girard for filing. Worked on meeting calendar for FY2016; prepared billings for payment; sent out for Board member appointments. Worked on Paul Bruno s letter to Supervisor Salinas regarding Laguna Seca Subarea; Sent out notices to Water Producer s regarding reports due to WM office by January 15, 2016; Year end cleanup work. Discussion with Russ McGlothlin regarding work plan for Board meeting; Sent out January 6, 2016 Board meeting cancellation notice. Robert Bob Jaques (Technical Program Manager) November 26, 2015 through December 19, 2015 worked on Watermaster business a total of 11.0 hours at $ per hour or $1, Responded to , telephone inquiries and other correspondence on a variety of Watermaster issues. Worked on Annual Report; Had a discussion with Russ McGlothlin regarding work plan for Laguna Seca Subarea groundwater issues. Prepare and out RFS s for 2016 for HydroMetrics and MPWMD; Signed consultant RFS s, review and approve consultant invoice, and deliver these along with copies of the 2015 SIAR to WM office. Brownstein Hyatt Farber Schreck, LLP An invoice for $1, for professional services rendered by attorney Russ McGlothlin reviewing and responding to s and telephone calls to and from Bob Jaques regarding the work plan on the Laguna Seca Subarea water issues. Total for December, 2015 $7, Total for November and December, 2015 $26,

13 VI.B 5/4/2016 Seaside Groundwater Basin Watermaster Budget vs. Actual Administrative Fund Fiscal Year (January 1 - December 31, 2015) Balance through December 31, Adopted Budget Contract Amount Year to Date Revenue / Expenses Available Balances & Assessments Dedicated Reserve 12, , FY (Rollover) - 4, Admin Assessments 95, , Available 107, , Expenses Contract Staff 60, , , Legal Advisor 25, , AT&T Total Expenses 85, , , Total Available 22, Dedicated Reserve 22, , Net Available - 31,

14 Seaside Groundwater Basin Watermaster Budget vs. Actual Monitoring & Management - Operations Fund Fiscal Year (January 1 - December 31, 2015) Balance through December 31, 2015 VI.B. 5/4/ Adopted Budget Contract Encumbrance Year to Date Revenue/Expenses Available Balances & Assessments Operations Fund Assessment $ 233, $ - $ 233, Pass Through , FY 2014 Rollover 198, , Total Available $ 432, $ - $ 427, Appropriations & Expenses GENERAL Technical Project Manager $ 60, $ 60, $ 37, % (not including TPM ) 52, $ 12, Total General $ 112, $ 72, $ 37, CONSULTANTS (Hydrometrics; Todd Groundwater; Web Site Database) Program Administration $ 10, Production/Lvl/Qlty Monitoring 3, $ 23, $ 20, Basin Management Action Plan 85, Seawater Intrusion Analysis Report 25, , , Total Consultants $ 124, $ 49, $ 34, MPWMD Production/Lvl/Qlty Monitoring $ 73, , , Pass Through , Basin Management - - Seawater Intrusion 2, , Direct Costs , Total MPWMD $ 2, $ 2, $ 75, Reserve Transfer Out to Capital Fund - - Total Appropriations & Expenses $ 239, $ 124, $ 147, Total Available 192, ,

15 Seaside Groundwater Basin Watermaster Replenishment Fund Water Year 2015 (October 1 - September 30) / Fiscal Year (January 1 - December 31, 2015) Balance through December 31, 2015 ITEM VI.B. 5/4/2016 Totals WY Proposed 2006 Through Budget WY Replenishment Fund Assessments: WY 05/06 WY 06/07 WY 07/08 WY 08/09 WY 09/10 WY 10/11 WY 11/12 WY 12/13 WY 13/14 WY 14/15 WY 15/16 Unit Cost: $1,132 / $283 $1,132 / $283 $2,485 / $3,040 / $760 $2,780 / $695 $2,780 / $695 $2,780 / $695 $2,780 / $695 $2,702 / $ $2,702 / $ $2,702 / $ Projected Totals Through WY 2016 Cal-Am Water Balance Forward $ - $ 1,641,004 $ 4,226,710 $ (2,871,690) $ (2,839,939) $ (3,822,219) $ (6,060,164) $ (8,735,671) $ (6,173,771) $ (3,102,221) $ (676,704) Cal-Am Water Production AF AF AF AF AF AF AF AF AF Exceeding Natural Safe Yield Considering Alternative Producers 2,106,652 2,565,471 5,199,014 3,773,464 4,112,933 3,187,854 2,280,943 2,380,842 2,790,539 2,113,414 $ 30,511,126 2,100,000 $ 32,611,126 Operating Yield Overproduction Replenishment - 20,235 8, , , , , , ,000 1,257,881 Total California American $ 2,106,652 $ 2,585,706 $ 5,207,525 $ 3,773,464 $ 4,112,933 $ 3,187,854 $ 2,435,907 $ 2,561,899 $ 3,071,550 $ 2,425,516 $ 31,469,007 $ 2,400,000 $ 33,869,007 CAW Credit Against Assessment (465,648) (12,305,924) $ (3,741,714) (5,095,213) (5,425,799) (5,111,413) (32,145,711) (5,000,000) (37,145,711) CAW Unpaid Balance $ 1,641,004 $ 4,226,710 (2,871,690) $ (2,839,939) $ (3,822,219) $ (6,060,164) $ (8,735,671) $ (6,173,771) $ (3,102,221) $ (676,704) $ (676,704) $ (3,276,704) $ (3,276,704) City of Seaside Balance Forward $ - $ 243,294 $ 426,165 $ 1,024,272 $ 1,619,973 $ 891,509 $ (110,014) $ (773,813) $ (1,575,876) $ (2,889,325) $ (3,346,548) City of Seaside Municipal Production AF AF AF AF AF AF AF AF AF $ Exceeding Natural Safe Yield Considering Alternative Producers 219, , , , , , , , ,410 69,630 $ 2,329,996 70,000 $ 2,399,996 Operating Yield Overproduction Replenishment 12, ,225 16,522 20,690-1,689 27,007 3, ,099-86,099 Total Municipal 232, , , , , , , , ,631 69,667 2,416,095 70,000 2,486,095 City of Seaside - Golf Courses Exceeding Natural Safe Yield - Alternative Producer ,705 69, , ,406 Operating Yield Overproduction Replenishment ,926 17, ,353-50,353 Total Golf Courses ,631 87, , ,759 Total City of Seaside* $ 232,310 $ 174,167 $ 571,395 $ 568,951 $ 335,412 $ 141,335 $ 165,198 $ 263,788 $ 145,631 $ 69,667 $ 2,667,854 $ 70,000 $ 2,737,854 City of Seaside Late Payment 5% 10,984 8,704 26,712 26,750 15,737 88,887 88,887 In-lieu Credit Against Assessment - - $ - (1,079,613) (1,142,858) (828,996) (1,065,852) (1,459,080) (526,890) (6,103,289) (100,000) (6,203,289) City of Seaside Unpaid Balance $ 243,294 $ 426,165 $ 1,024,272 $ 1,619,973 $ 891,509 $ (110,014) $ (773,813) $ (1,575,876) $ (2,889,325) $ (3,346,548) $ (3,346,548) $ (3,376,548) $ (3,376,548) Total Replenishment Fund Balance $ 1,884,298 $ 4,652,874 $ (1,847,417) $ (1,219,966) $ (2,930,710) $ (6,170,178) $ (9,509,483) $ (7,749,648) $ (5,991,546) $ (4,023,252) $ (4,023,252) $ (6,653,252) $ (6,653,252) Replenishment Fund Balance Forward - $ 1,884,298 $ 4,652,874 $ (1,847,417) $ (1,219,966) $ (2,930,710) $ (6,170,178) $ (9,509,483) $ (7,749,648) $ (5,991,546) $ (4,023,252) Total Replenishment Assessments 2,349,946 2,768,576 5,805,632 4,369,165 4,464,082 3,329,189 2,601,104 2,825,688 3,217,182 2,495,183 34,225,748 2,470,000 36,695,748 Total Paid and/or Credited (465,648) - (12,305,924) (3,741,714) (6,174,826) (6,568,657) (5,940,409) (1,065,852) (1,459,080) (526,890) (38,249,000) (5,100,000) (43,349,000) Grand Total Fund Balance $ 1,884,298 $ 4,652,874 $ (1,847,417) $ (1,219,966) $ (2,930,710) $ (6,170,178) $ (9,509,483) $ (7,749,648) $ (5,991,546) $ (4,023,252) (4,023,252) $ (6,653,252) $ (6,653,252) 15

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17 SEASIDE GROUNDWATER BASIN WATERMASTER REGULAR BOARD MEETING AGENDA WEDNESDAY, MAY 4, :00 P.M. MEETING LOCATION MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY BOARD ROOM, 5 HARRIS COURT, BUILDING D RYAN RANCH MONTEREY, CALIFORNIA WATERMASTER BOARD (FOR CALENDAR YEARS ) Coastal Subarea Landowner Director Paul Bruno, Chair City of Seaside Mayor Ralph Rubio, Vice Chair California American Water Director Eric Sabolsice City of Sand City Mayor David Pendergrass Monterey Peninsula Water Management District Director Bob Brower Laguna Seca Subarea Landowner Director Bob Costa City of Monterey Councilmember Libby Downey City of Del Rey Oaks Mayor Jerry Edelen Monterey County/Monterey County Water Resources Agency Supervisor Dave Potter, District 5 I. CALL TO ORDER (NEW BOARD OF DIRECTORS FOR CALENDAR YEARS 2016 AND 2017) A. Schedule of Board Members and Alternate Board Members (Where Applicable) II III. IV. ROLL CALL ELECTION AND APPOINTMENT OF OFFICERS FOR CALENDAR YEARS 2016 AND A. Chairperson (Must be member of the Board of Directors) B. Vice Chairperson (Must be member of the Board of Directors) C. Secretary (Need not be a member of the Board of Directors) D. Treasurer (Need not be a member of the Board of Directors) REVIEW OF AGENDA If there are any items that arose after the 72-hour posting deadline, a vote may be taken to add the item to the agenda pursuant to the requirements of Government Code Section (b). (A 2/3-majority vote is required). V. PUBLIC COMMUNICATIONS Oral communications is on each meeting agenda in order to provide members of the public an opportunity to address the Watermaster on matters within its jurisdiction. Matters not appearing on the agenda will not receive action at this meeting but may be referred to the Watermaster Administrator or may be set for a future meeting. Presentations will be limited to three minutes or as otherwise established by the Watermaster. In order that the speaker may be identified in the minutes of the meeting, it is helpful if speakers would use the microphone and state their names. Oral communications are now open. VI. CONSENT CALENDAR A. Consider Approval of Summary for Payments made during January, February and March, 2016 totaling $74, B. Consider Approving Fiscal Year 2016 Financial Reports through March 31, VII. ORAL PRESENTATION None Scheduled 17

18 VIII. OLD BUSINESS None Scheduled IX. NEW BUSINESS A. Discussion/Consider Approving the Attached Draft Document Request for Status Conference, and Adjudication Background Report and Update prepared by Mr. Russell M. McGlothlin, Esq. with the firm of BROWNSTEIN HYATT FARBER SCHRECK.LLP B. Discussion/Consider State of California Department of Water Resources request for boundary modification for Adjudicated Seaside Groundwater Basin Watermaster...57 X. INFORMATIONAL REPORTS (No Action Required) A. Timeline Schedule of Milestone Dates (Critical date monitoring)...64 B. Technical Advisory Committee (TAC) minutes from meetings of January 13, and March 9, XI. XII. XIII. XIV. DIRECTOR S REPORTS EXECUTIVE OFFICER COMMENTS NEXT REGULAR MEETING DATE JUNE 1, 2016 (MRWPCA-Board Room) 2:00 P.M. ADJOURNMENT This agenda was forwarded via to the City Clerks of Seaside, Monterey, Sand City and Del Rey Oaks; the Clerk of the Monterey Board of Supervisors, the Clerk to the Monterey Peninsula Water Management District; the Clerk at the Monterey County Water Resources Agency, Monterey Regional Water Pollution Control Agency and the California American Water Company for posting on April 28, 2016 per the Ralph M. Brown Act, Government Code Section (a). 18

19 ITEM NO. I SEASIDE GROUNDWATER BASIN WATERMASTER TO: FROM: Board of Directors Dewey D Evans, CEO DATE: May 4, 2016 SUBJECT: Appointments of Voting Members and Alternates to Watermaster Board for Fiscal Years 2016 and 2017 PURPOSE: To inform the current Board members and interested parties as to the Watermaster Board members and Alternates appointments for the next two Fiscal Years: 2016 and 2017 (January through December) RECOMMENDATION: None-Informational only DISCUSSION: To comply with the Court Decision Sections L. 1 through 3and the Watermaster adopted Rules and Regulations Section 4.0, it is required that the Public Agency Parties, groups of Landowner Parties and California American shall each appoint or reappoint one Member in November of every second year, to sit on the Watermaster Board for a two (2) year term commencing with the first regular meeting of the Watermaster in the following year. In addition to appointing a Member, California American and the Public Agency Parties may also appoint an alternate Member in the same manner and for the same terms as provided for Members. Each Member representing a group of Landowner Parties may act as an alternate for the Member representing the other group of Landowner Parties. A duly appointed Alternate Member may exercise all of the rights of a Member at a meeting of the Watermaster Board where the Member for whom the Alternate Member sits, is absent. There are Special Rules for the Appointment of Members of Landowner Groups which are described in Section 4.5 of the Watermaster adopted Rules and Regulations. The following schedule shows the appointments and/or reappointments that have been made to Watermaster Board for the next two Fiscal Years beginning with the first regular meeting in Fiscal Year 2016: 19

20 MEMBER PARTY MEMBER ALTERNATE California American Water Eric Sabolsice Roger Hulbert City of Del Rey Oaks Jerry Edelen Kristin Clark City of Monterey Libby Downey Clyde Roberson City of Sand City Dave Pendergrass Todd Bodem City of Seaside Ralph Rubio Dennis Alexander County of Monterey (MCWRA) Dave Potter Jane Parker MPWMD Robert S. Brower Jeanne Byrne Coastal Sub Area Landowner Laguna Seca Sub Area Landowner Paul Bruno Bob Costa 20

21 ITEM NO. VI. CONSENT CALENDAR 21

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23 SEASIDE GROUNDWATER BASIN WATERMASTER ITEM VI.A TO: FROM: Board of Directors Dewey D Evans, CEO DATE: May 4, 2016 SUBJECT: Summary of Payments Authorized and paid during the months of January, February and March, PURPOSE: To advise the Board of payments authorized and paid during the months of January, February and March, RECOMMENDATIONS: Consider approving the payment of bills submitted and paid during the months of January, February and March, COMMENTS and FISCAL IMPACT: JANUARY, 2016 DDEvans Consulting (Professional Services Agreement CEO) January 1, 2016 through January 31, 2016 worked on Watermaster business a total of 39.0 hours at $ per hour or $3, Responded to telephone inquiries, s and other correspondence as needed regarding the Seaside Basin. Received and reviewed water production and water level reports. Worked on time log and monthly billings and took same to City of Seaside for payment. Prepared and sent out meetings schedule for FY2016 to Board and TAC for scheduling purposes; Work on yearend clean-up items. Sent out request for Board agenda items for February 3 rd Board meeting; Received correspondence from Chair Paul Bruno to add item on staff contracts. Sent s to Bob J. and Laura D. regarding Sustainable GMA; Discussions with Russ McGlothlin regarding work plan for Board meeting; Received and reviewed LSSA modeling report from HydroMetrics. Sent out Board meeting cancellation notice for February 3, 2016; Sent out request for information on Special Board meeting scheduled for February 17, Dadiw Associates (Laura Dadiw) December 26, 2016 through January 28, 2016 worked on Watermaster business a total of 13.5 hours at $55.00 an hour or $ Set up contract files, prepare invoices and statements, post items to watermaster website; post invoices to Quick book files. Review TAC minutes; review Bulletin 118 proposed boundary changes; Post production readins, send to MPWMD; review flow divide report. Robert Bob Jaques (Technical Program Manager) December 20, 2015 through January 23, 2016 worked on Watermaster business a total of 22.0 hours at $ per hour or $2, Responded to , telephone inquiries and other correspondence on a variety of Watermaster issues. Reviewed HydroMetrics Laguna Seca Subarea modeling report and provided edits and questions to 23

24 HydroMetrics. Prepared for and attended TAC meeting on January 16 th and posted TAC meeting discussions with Joe Oliver and R. Hulbert; compile TAC meeting comments on LSSA modeling report and to HydroMetrics. Review and approve HydroMetrics SIAR invoice; reviewed and edited final HydroMetrics LSSA modeling report and to HydroMetrics. HydroMetrics Water Resources, Inc. Two invoices were submitted for payment totaling $3, The first invoice for $ was for 2.5 hours of work preparing final SIAR reports and related reimburseable expenses including sending reports to Bob Jaques. The second invoice for $3, working on Laguna Seca Groundwater Divide studies totaling hours reviewing flow divide maps, generating model output, delineating additional groundwater flow divides and creating additional maps and adding new data to maps and editing report. Monterey Peninsula Water Management District Two invoices were submitted for payment totaling $39, The first invoice for $37, was for labor costs totaling 199 hours for database entry, collecting monthly water levels, collecting quarterly water quality samples, totaling $19, and also including direct costs of $18, doing water quality sample equipment, lab costs, induction logging, retrofit, etc.. The second invoice totaling $1, was for 19.0 hours performing water level and water quality data collection for specified wells within the Seaside Basin for the period from July through December, Brownstein Hyatt Farber Scheck, LLP An invoice was received for $92.25 for a telephone call on December 7, 2015 with D. Evans regarding preparation for report/motion to court. Paxton Imaging (Watermaster Web Site Coordinator) Hosting Unix Server for months November and December, 2015 for $ Total for January, 2016 $50, FEBRUARY, 2016 DDEvans Consulting (Professional Services Agreement CEO) February 1, 2016 through February 29, 2016 worked on Watermaster business a total of 44.5 hours at $ per hour or $4, Responded to telephone inquiries, , and other correspondence as needed regarding the Seaside Basin. Received and reviewed water production and water level reports. Participated in conference telephone call with Russ McGlothlin, Derrik Williams, Bob Jaques and Laura Dadiw regarding work plan and court filing. Worked on February 17, 2016 Board meeting agenda and agenda packet. Sent out posting notice and Board meeting agenda packet for February 17 th Special meeting. Prepared for and attended Board meeting and follow-ups to meeting. Sent out WM Administrative Committee meeting notice; sent out requests for agenda items for March 2 nd regular Board meeting; sent out Board meeting cancellation notice for March 2 nd. Dadiw Associates (Laura Dadiw) January 29, 2016 through February 25, 2016 worked on Watermaster business a total of 14.0 hours at $55.00 an hour or $ Participated in conference call with Russ McGlothlin, Derrik Williams, Bob Jaques and Dewey Evans regarding court filing information, etc.. Preparing the Board packet for the February 17 th Special Board meeting; prepare for and attend Board meeting; respond to s; post production numbers and prepare minutes of 2/17/2016 meeting. Robert Bob Jaques (Technical Program Manager) January 24, 2016 through March 2, 2016 worked on Watermaster business a total of 36.0 hours at $ per hour or $3, Responded to , telephone inquiries and other correspondence of a variety of Watermaster issues. Sent out TAC 24

25 meeting cancellation notice; participated in conference call regarding LSSA modeling issues and work plan to be submitted to the Court and did follow-up work from that conference call. Reviewed SGMA materials in preparation for Webinar on 2/2/2016; participated in SGMA Webinar on how to submit documentation for adjudicated basins, research methods of developing change in storage figure to be submitted under SGMA. Worked SGMA reporting materials telecon with Russ McGlothlin regarding his PowerPoint slides for Board Special meeting. Continue work on SGMA reporting materials; reviewed MPWMD CASGEM data. Conference call with Russ McGlothlin and Lori Girard regarding Court work plan issues; worked on data requested by Russ M. HydroMeetrics Water Resources, Inc. One invoice was received and processed for payment in the amount of $1, The invoice was for hours of work dealing with SGMA Documentation Preparation in developing the approach for storage calculations including calculating the change in storage for 2014 and Total for February, 2016 $10, MARCH, 2016 DDEvans Consulting (Professional Services Agreement CEO) March 1, 2016 through March 31, 2016 worked on Watermaster business a total of 39.5 hours at $ per hour or $3, Responded to telephone inquiries, and other correspondence as needed regarding the Seaside Basin. Received and reviewed water production and water level reports. Scheduled and met with Administrative Committee at Sand City City Hall on March 2, Prepared and delivered February billings to City of Seaside s Finance Department for payment; spent time cleaning up office papers and reports. Prepared time doing year end cleanup work; reviewing time sheets and reconciling same with Bob Jaques and Laura Dadiw. Sent out notice for agenda items for April 6 th regular Board meeting. Had several discussions with Russ McGlothlin and Bob Jaques regarding Court work plan; Received and reviewed Russ s transmittal report for Board meeting agenda; Worked on April 6 th regular Board meeting agenda and agenda packet. Prepared and sent out cancellation notice of April 6 th regular Board meeting notice. Dadiw Associates (Laura Dadiw) February 26, 2016 through March 25, 2016 worked Watermaster business a total of 8.0 hours at $55.00 an hour or $ Read over Peer review; Met with Chair Paul Bruno regarding staffing for the Watermaster after retirement of CEO Evans on May 31, Worked on financial preparation for FY 2015 year end reports; reconciled financial records to City of Seaside s reports on Watermaster activities. Returned Dave Sweigert telephone call; sent out s to boardmembers. Robert Bob Jaques (Technical Program Manager) March 3, 2016 through March 31, 2016 worked on Watermaster business a total of 33.0 hours at $ per hour or $3, Responded to , telephone inquiries and other correspondence on a variety of Watermaster issues. Prepared for and attended March 9 th TAC meeting and preparing follow-up meeting minutes. Research items for SGMA reporting; Begin work on items for Russ McGlothlin work plan outline. Work on inputting data into SGMA reporting template; Prepare and submit documents to DWR on SGMA reporting requirements. Review/respond to HydroMetrics RFS request for additional compensation of RFS No Review and comments on Russ McGlothlin draft work plan for court filing document. HydroMetrics Water Resources, Inc. Two invoices were received and processed for payments in amount of $ The first invoice for $ was for a conference call that Derrik Williams had with Russ McGlothlin and Bob Jaques and Dewey Evans on what approach to take with discussions with the Court. The second invoice for $48.75 was for creating and providing a PDF of groundwater contour maps for Bob Jaques. 25

26 Brownstein Hyatt Farber Schreck (Russ McGlothlin) An invoice for $5, was received and processed for payment for professional services rendered through February 29, The invoice was for 11.7 hours of work developing a draft work plan for presentation to the court. This included various telephone conference calls with Watermaster staff and other related individuals involved with the court filing. Total for March, 2016 $13, Grand Total for January 1 through March 31, 2016 $74,

27 VI.B 5/4/2016 Seaside Groundwater Basin Watermaster Budget vs. Actual Administrative Fund Fiscal Year (January 1 - December 31, 2015) Balance through March 31, Adopted Budget Contract Amount Year to Date Revenue / Expenses Available Balances & Assessments Dedicated Reserve - - FY (Rollover) 32, , Admin Assessments 58, , Available 90, , Expenses Contract Staff 65, , , Legal Advisor - 25, , Total Expenses 65, , , Total Available 25, Dedicated Reserve 25, , Net Available - 58,

28 Seaside Groundwater Basin Watermaster Budget vs. Actual Monitoring & Management - Operations Fund Fiscal Year (January 1 - December 31, 2015) Balance through March 31, 2016 VI.B. 5/4/ Adopted Budget Contract Encumbrance Year to Date Revenue/Expenses Available Balances & Assessments Operations Fund Assessment $ 127, $ - $ 127, Pass Through FY 2015 Rollover 279, , Total Available $ 407, $ - $ 407, Appropriations & Expenses GENERAL Technical Project Manager $ 60, $ 60, $ 9, % (not including TPM ) 36, $ - - Total General $ 96, $ 60, $ 9, CONSULTANTS (Hydrometrics; Todd Groundwater; Web Site Database) Program Administration $ 11, Production/Lvl/Qlty Monitoring - $ 11, $ 2, Basin Management Action Plan 67, Seawater Intrusion Analysis Report 20, , Total Consultants $ 99, $ 31, $ 2, MPWMD Production/Lvl/Qlty Monitoring $ 79, , Pass Through Basin Management - - Seawater Intrusion 2, , Direct Costs Total MPWMD $ 82, $ 82, $ - Reserve Transfer Out to Capital Fund - - Total Appropriations & Expenses $ 277, $ 173, $ 11, Total Available 129, ,

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31 ITEM IX.A 5/4/16 SEASIDE GROUNDWATER BASIN WATERMASTER TO: Board of Directors FROM: Robert S. Jaques, Technical Program Manager DATE: May 4, 2016 SUBJECT: Proposed order setting status conference, and adjudication background report and update RECOMMENDATIONS Authorize Mr. McGlothlin to file the attached Motion with the Court as-is, request revisions to it before it is filed, or provide other direction on this matter. BACKGROUND At its December 3, 2014 meeting the Board approved the retention of legal services by Mr. Russ McGlothlin of the law firm Brownstein, Hyatt, Farber, and Schreck to file a motion to update the Court on several issues. These issues are (1) Updating the Court concerning recent regional water supply developments pertinent to the Seaside Basin, (2) Potentially requesting a stay of the 2018 Operating Yield reduction, and (3) Updating the Court concerning the modeling results and findings concerning the Laguna Seca Subarea (LSSA) and the Watermaster s intended work plan to address long-term water reliability for the subbasin. DISCUSSION Mr. McGlothlin has completed drafting the motion and it is presented to the Board for its review and comment before he will file it with the Court. The motion contains background information on the Adjucication Decision (for the benefit of the new Judge that has been assigned this Case) as well as discussions of each of the three issues listed above. The attached version addresses comments provided to Mr. McGlothlin by Watermaster staff and Cal Am staff. The Board is requested to provide its comments and any requests for revisions to the Draft Motion so Mr. McGlothlin can finalize it and submit it to the Court. ATTACHMENTS Draft Motion Request for Status Conference, and Adjudication Background Report and Update 31

32 RUSSELL M. MCGLOTHLIN (State Bar No ) BROWNSTEIN HYATT FARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA Telephone: Facsimile: RmcGlothlin@bhfs.com Attorneys for Seaside Groundwater Basin Watermaster EXEMPT FROM FEES 8 9 SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF MONTEREY BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA CALIFORNIA AMERICAN WATER, v. Plaintiff, CITY OF SEASIDE, et al., Defendants. MONTEREY PENINSULA WATER MANAGEMENT DISTRICT, Intervenor. Case No. M66343 Assigned for All Purposes to the Honorable Leslie C. Nichols REQUEST FOR STATUS CONFERENCE, AND ADJUDICATION BACKGROUND REPORT AND UPDATE [Proposed] Order Setting Status Conference Filed Concurrently Action Filed: August 14, 2003 Trial Date: December 13, MONTEREY COUNTY WATER RESOURCES AGENCY, Intervenor. 23 AND RELATED CROSS-ACTIONS \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 32

33 1 TABLE OF CONTENTS TO BE POPULATED Page BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA \0001\ i ADJUDICATION BACKGROUND REPORT AND UPDATE 33

34 1 2 I. REQUEST FOR STATUS CONFERENCE The Seaside Groundwater Basin Watermaster ( Watermaster ), through its counsel, hereby respectfully requests that the Court convene a status conference in this post-judgment action to receive updates from, and provide instructions to, Watermaster concerning the status of management of the Seaside Groundwater Basin ( Seaside Basin or Basin ) pursuant to the amended decision ( Decision ), entered on February 9, 2007 in this matter. A true and correct copy of the Decision and all exhibits thereto is attached hereto as Attachment 1. A proposed order setting a status conference for at, which is a date and time confirmed as available by the Court s Clerk, is filed concurrently. A report explaining the BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA background of this action and current issues pertaining to the management of the Basin follows. II. REPORT TO COURT A. Introduction This case concerns the adjudication of groundwater rights within the Seaside Basin and the perpetual management of the Basin by the Watermaster pursuant to the Court s oversight through its continuing jurisdiction. A description of the Basin, the parties to this action, the complaint, defendants responses, and the Court s ruling on a stipulation and motion for entry of judgment is set forth in the Decision B. Description of the Seaside Groundwater Basin Location The Seaside Basin is located in northern Monterey County and it underlies the Cities of Seaside, Sand City, Del Rey Oaks, Monterey, and portions of unincorporated county areas, including the southern portions of the former Fort Ord and the Laguna Seca Area. The boundaries of the Basin are depicted in Exhibit B of the Decision. Generally, the Seaside Basin is bounded by the Pacific Ocean on the west, the Salinas Valley on the north, the Toro Park area on the east, and Highways 68 and 218 on the south At the request of the Court, Watermaster will elaborate upon and/or will file sworn declarations or provide witnesses to substantiate any factual statement contained in this report \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 34

35 Subareas The Seaside Basin consists of four subareas: (1) the Southern Coastal Subarea, (2) the Northern Coastal Subarea, (3) the Northern Inland Subarea, and (4) the Laguna Seca Subarea ( LSSA ). The Northern Inland Subarea is located east of the Northern Coastal Subarea and north of the LSSA. The LSSA is east and inland of the Southern Coastal Subarea and south of the Northern Inland Subarea. 3. Hydrogeology a. Watersheds An active dune system along the coast dominates the Basin s coastal topography, with BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA older, less active dunes found inland, mostly within the former Ford Ord open space. This hilly coastal plain slopes both northwards to the Salinas River Valley and westwards towards the Monterey Bay. Surface elevations overlying the Basin range from sea level at the coast to 950 feet above mean sea level inland. The Basin contains a number of watersheds defined by the California Department of Water Resources ( DWR ) that are part of the Salinas Hydrologic Unit. Pilarcitos Canyon and Corral de Tierra Valley watersheds drain northeast to the Salinas Valley, while the Laguna Seca and Monterey watersheds drain northwest to the Pacific Ocean. There are few flowing creeks overlying the Basin because of the permeable nature of the soils. The only creek with a defined channel is the Arroyo del Rey which flows intermittently in Canyon del Rey to the south of the Basin, roughly alongside Highways 68 and 218 (Canyon del Rey Blvd), and into Laguna Grande Lake, through Roberts Lake and eventually into Monterey Bay through a series of flow control structures. Flow in the creek responds rapidly to rainfall, but is usually dry in the summer months. There are no natural surface water bodies overlying the Basin. The coastal manmade lakes referred to as Laguna Grande and Roberts Lake are located just south of the Basin s boundary. Although these lakes do not fall directly within the Basin s boundaries, their catchments include part of the Basin. b. Stratigraphy and Hydrostratigrapy The Seaside Basin consists of a sequence of unconsolidated marine, fluvial and aeolian sediments that overlie the relatively impermeable Monterey Formation of Miocene age and older \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 35

36 crystalline rocks. Overlying the Monterey Formation is Santa Margarita Sandstone, which is also referred to as the Santa Margarita aquifer or deep aquifer. The Santa Margarita Sandstone consists primarily of marine-derived, sedimentary sandstone. Exploratory drilling associated with the Watermaster s sentinel wells suggests that parts of the deep aquifer previously assigned to the Santa Margarita Sandstone in and near the Northern Coastal and Northern Inland subareas consist of generally finer-grained sediments that should be assigned to the Purisima Formation. The Purisima Formation interfingers with the Santa Margarita Sandstone in the northern portion of the Basin. The location of the transition is poorly understood because there are very few wells in the area. Like the Santa Margarita Sandstone, the Purisima Formation is a marine deposit BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA consisting of poorly hardened gravels, sands, silts, and silty clay. The geologic unit overlying the Santa Margarita Sandstone and Purisima Formation is a Tertiary and Quaternary continental deposit locally called the Paso Robles or shallow aquifer. This unit consists of a mixture of continentally derived gravel, sand, silt and clay sedimentary deposits. It is an unconfined aquifer overlain by the Aromas Sands. The Aromas Sands and older dune deposits are quaternary surficial deposits representing the uppermost geologic units in the Basin. These deposits are a variety of continental deposits, including: fluvial and coastal terrace, flood-plain, stream alluvium, colluviums and basin deposits c. Groundwater Occurrence (1) Santa Margarita/Purisima Aquifer The majority of production wells in the Basin produce groundwater from the deep or Santa Margarita/Purisima aquifer. Groundwater levels in this aquifer have shown a decline since production quantities increased in the 1990s. The increased production levels in the 1990s was partially attributable to restrictions imposed by the State Water Resources Control Board on California-American Water Company s ( Cal-Am ) diversions from the Carmel River in 1995 (SWRCB WR Order 95-10). Due to overlying low conductivity sediments, the deeper Santa Margarita/ Purisima aquifer is confined. Based on observed groundwater level behavior in the Santa Margarita aquifer, there appears to be limited leakage from the overlying shallow aquifer and limited connection to \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 36

37 1 the ocean (2) Paso Robles Aquifer The Paso Robles aquifer (the middle aquifer) is an unconfined aquifer that is tapped by a number of production wells. Many of the wells that are screened in the Paso Robles aquifer are also screened in the underlying Santa Margarita aquifer. The water-bearing characteristics of the Paso Robles aquifer are variable due to the flood plain depositional environment, which formed coarse-grained channel deposits cutting into fine-grained overbank deposits. The Paso Robles aquifer is hydraulically linked to the ocean, which increases its susceptibility to seawater intrusion. BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA (3) Aromas Sands The Aromas Sands (the shallowest aquifer) and other surficial deposits are unsaturated in many parts of the Basin, and are not extensively pumped for municipal use. Only near the coast are they partly saturated. These sediments are not significant sources of groundwater supply. d. Groundwater Flow (1) Horizontal Flow Directions Both the Santa Margarita/Purisima and Paso Robles aquifers have pumping depressions (i.e., areas of low groundwater caused by groundwater withdrawals) one in the Northern Coastal Subarea and one in the LSSA. In general, groundwater flows from the higher inland areas to the lower coastal areas. (2) Vertical Flow Gradients Monitoring well data shows that in the 1980 s and early 1990 s vertical gradients were upwards, or from the deep aquifer to the shallow aquifer. However, as groundwater pumping in the Basin increased, the gradients reversed to downwards, or from the shallow aquifer to the deep aquifer. In the area of Roberts Lake and Laguna Grande in the Southern Coastal subarea, there is likely an upwards vertical gradient due to the area being a groundwater discharge point. This assumption, however, cannot be confirmed with groundwater elevation data as there are no monitoring wells in this area \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 37

38 e. Risks to the Basin The Decision required the Watermaster to prepare a comprehensive Basin Monitoring and Management Program ( M&MP ) to ensure the Basin remains protected and managed as a perpetual source of water. The M&MP monitors current overdraft conditions and the threat of potential seawater intrusion into the coastal subareas of the Basin. Groundwater production, quality, and groundwater level monitoring is performed in coastal and inland production and monitoring wells. Over the last twelve years, the Basin s groundwater levels have declined. The downward trend in groundwater levels is not sustainable. Plans to remedy the overdraft through the BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA development of the Monterey Peninsula Water Supply Project are discussed below. Continued declines in groundwater levels put the Basin at risk of having one or more of the following conditions occur: Seawater intrusion Pumping groundwater levels falling below the top of a well screen that was previously submerged during pumping. Pumping groundwater levels falling below the pump intake. To date, no seawater intrusion or land subsidence has been detected in the Basin, and no 18 operational problems have been reported as a result of these lowering groundwater levels C. Relation of the Seaside Basin to Neighboring Groundwater Basins (Subbasins) and the 2014 Sustainable Groundwater management Act The Seaside Basin, while routinely referred to as a basin, is technically a subbasin of the broader Salinas Valley Groundwater Basin, which includes seven other subbasins in addition to the Seaside Basin. The Seaside Basin is bordered on the north by the 180/400 Foot Aquifer Subbasin and on the east by the Corral de Tierra Subbasin. As explained below, groundwater production in the Corral de Tierra Subbasin is contributing to declining groundwater levels in the eastern portion of the LSSA of the Seaside Basin. The Seaside Basin is one of approximately two dozen groundwater basins in California that have been adjudicated by the courts and are now subject to judicial management \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 38

39 Historically, the majority of non-adjudicated groundwater basins have not been managed to limit groundwater extractions to prevent overdraft. To address the lack of management in these basins, in 2014, the legislature adopted a new groundwater management law called the Sustainable Groundwater Management Act ( SGMA ). SGMA requires that all alluvial basins and subbasins that are deemed high and medium priority by DWR be comprehensively managed under the new law. (Wat. Code et seq.) The act requires that one or more local water and/or land use agencies establish a new Groundwater Sustainability Agency ( GSA ) by (Wat. Code and (a)(1).) The GSA must develop a Groundwater Sustainability Plan ( GSP ) for basin/subbasin by 2020 or 2022, the deadline depending on whether the basin/subbasin has BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA been identified as in a critical overdraft condition. (Wat. Code (a).) The GSP must be designed to avoid adverse basin conditions, including those resulting from sustained and unmitigated overdraft. (Wat. Code (t), (u), (w) and ) The GSP must be designed to achieve sustainability within 20 years and must be approved by DWR as satisfying the requirements of SGMA. (Wat. Code 10721(t), (u), (w), 10727, , and ) All of the subbasins within the Salinas Valley Groundwater Basin are either medium or high priority, including the Seaside Basin. However, SGMA exempts adjudicated groundwater basins from the Act s GSA/GSP requirements in recognition of the comprehensive groundwater management overseen by the courts within adjudicated basins. (Wat. Code ) For adjudicated basins, SGMA only requires annual information filings be made to DWR, including water use data, groundwater levels, changes in basin storage, copies of annual reports submitted to the court, and other standard information. (Id.) Watermaster is complying with this reporting requirement. All other subbasins within the Salinas Valley Groundwater Basin are subject to SGMA s requirements for establishment of a GSA and the development of a GSP. As discussed below, the application of this process to the Corral de Tierra Subbasin, which adjoins the eastern boundary of the Seaside Basin, will be important to efforts to address overdraft conditions within the LSSA of the Seaside Basin as well as within the Corral de Tierra Subbasin. DWR defines basins within California through the basin boundary descriptions set forth in \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 39

40 a DWR publication referred to as Bulletin 118. These basin boundaries are used pursuant to SGMA for basin management planning requirements. (Wat. Code ) Pursuant to SGMA, local agencies may petition DWR to adjust basin boundaries. (Wat. Code ) The Monterey Peninsula Water Management District ( MPWMD ), which is a local water management agency and a party to this action, is seeking a boundary modification for the Seaside Basin and the Corral de Tierra Subbasin. As presently described, the boundaries of the Seaside Basin described in Bulletin 118 are substantially different than the basin boundaries defined in the Decision. The boundaries of the adjudicated Seaside Basin are shown in Attachment _. The boundaries of the Seaside Basin as depicted in Bulletin 118 are shown in Attachment _. Both BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA attachments were prepared by MPWMD. The boundary modification request by MPWMD proposes to modify the Bulletin 118 boundaries of the Seaside Basin to be commensurate with the adjudicated basin boundaries. Such a change is logical and practical for managing the areas outside of the adjudicated boundaries pursuant to SGMA, while clearly delineating the adjudicated basin boundaries, which are exempted from the SGMA s GSA/GSP requirements. Watermaster supports MPWMD s petition to modify Bulletin 118 s boundaries for the Seaside Basin. Watermaster will update the Court on developments relating to this basin boundary modification request. 18 D. Summary of the Court s Decision and Basin Management Structure As a general overview, the Decision: Calculates the Basin s safe yield; Limits the quantity of groundwater available for cumulative production pursuant to a series of 10% rampdowns in allowed annual production until total Basin production is no more than the safe yield; Allocates the allowed annual production between the parties and establishes two classes of adjudicated production rights, referred to as Standard Production Allocation and Alternative Production Allocation; Allows for groundwater replenishment and storage Allows for carryover of unused Standard Production Allocation from year to \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 40

41 year; Allows for transfers of Standard Production Allocation; Establishes the Watermaster, as a special master to the Court, to assist in the implementation of the Decision and management of the Basin; Requires the Watermaster to assess administrative budget and replenishment assessments to finance its administrative activities and Basin replenishment; and Reserves continuing jurisdiction to the Court to modify the Decision as appropriate and to resolve any future disputes. 1. Natural Safe Yield BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA Consistent with California common law, the Decision defines the "Natural Safe Yield" as the quantity of groundwater existing in the Basin that occurs solely as a result of natural replenishment under existing conditions. (Section III.A; p.8.) The Natural Safe Yield of the Seaside Basin as a whole was determined to be between 2,581 to 2,913 acre-feet per year ( AFY ). Divided between the subareas, the Decision determined that Natural Safe Yield was between 1,973 to 2,305 AFY for the Coastal subareas and 608 AFY for the LSSA. (Section II.B; p.13.) 2. Operating Safe Yield The Decision defines the Operating Safe Yield of the Basin as the maximum amount of groundwater allowed to be produced from each subarea. (Section III.A; p. 13.) The Operating Safe Yield is designed to decrease over time to afford a gradual rampdown of historical production quantities until the Basin s Operating s Safe Yield equals its Natural Safe Yield. The Operating Safe Yield for the Basin as a whole was originally set at 5,600 acre-feet, divided among the subareas as 4,611 acre-feet for the Coastal Subareas and 989 acre-feet for the LSSA. (Id.) 3. Rampdown Under the Decision, the Basin s Operating Safe Yield is reduced by 10 percent every three years until it is equivalent to the Basin s Natural Safe Yield unless: a. The Watermaster has secured and is adding an equivalent amount of non-native \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 41

42 water to the Basin on an annual basis; or b. The Watermaster has secured reclaimed water in an equivalent amount and has contracted with one or more of the water producers to utilize this water in lieu of their production allocation; or c. Any combination of conditions (a) and (b), above, which results in the decrease in production of native water required by the Decision; or d. The Watermaster has determined that groundwater levels within the Basin are sufficient to ensure a positive offshore gradient to prevent seawater intrusion into the Basin. (Section III.B.2; pp ) BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA Further, if a Material Injury, as defined in the Decision, arises, Watermaster, with the concurrence of the Court, shall reduce the Basin's Operating Safe Yield as necessary to avoid the Material Injury. (Id.) 4. Production Allocations As noted above, the Decision establishes two forms of groundwater production allocations. The first is the Standard Production Allocation, which is akin to an appropriative groundwater right under California common law. It allows for municipal and other nonoverlying uses of Basin groundwater. (Section III.B.2; pp ) The second form is the Alternative Production Allocation, which is akin to an overlying groundwater right under California common law. It affords a first priority groundwater right to use Basin groundwater on identified overlying parcels. (Section III.B.3; pp ) Parties holding Alternative Production Allocation ( Alternative Producers ) are afforded a right to produce the quantity of their allocation specified in Table 2 of the Decision, which right is prior and paramount to the Standard Production Allocation and is not subject to future reductions for the benefit of Standard Producers. (Section III.B.3; pp ) However, the Alternative Production Allocation is limited to parcels identified in Exhibit C to the Decision and may not be transferred for use by others unless the Alternative Production Allocation is converted into a Standard Production Allocation, as discussed further below. (Section III.B.3(a); p.20.) Alternative Producers are also not afforded storage or carryover rights. Thus, any Alternative Production \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 42

43 Allocation not used in a given year is forfeited to the Standard Producers for that year. Parties holding Standard Production Allocation ( Standard Producers ) are afforded a right to produce the Basin's residual Operating Safe Yield that is surplus to the cumulative production by the Alternative Producers. (Section III.B.2; pp ) The Operating Safe Yield is divided amongst Standard Producers pursuant to the percentages set forth in Table 1 of the Decision. (Section III.B.2; p. 19.) The Standard Production Allocation may be used on any property overlying the Basin, but only Cal-Am may export water outside the Basin to its customers. (Section III.M.3.; pp ) Those parties possessing Standard Production Allocation may also store water and carry over their unused Standard Production Allocation from one year to BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA the next. (Section III.H; pp ) An Alternative Producer may make a one-time election to convert Alternative Production Allocation to Standard Production Allocation. (Section III.B.3; p.21.) By doing so, the allocation converted to Standard Production Allocation may then be transferred for use off of the overlying land. The beneficiary of the allocation also obtains comparable storage and carryover opportunities. However, upon conversion, the allocation then becomes subject to the rampdown in the Operating Safe Yield and liable for replenishment assessments imposed on the production of Standard Production Allocation. (Section III.B.2; pp ) Replenishment Assessments The Decision instructs Watermaster to levy "replenishment assessments" on each acrefoot of production by a producer in excess of their share of the Basin's Native Safe Yield and the Operating Safe Yield. (Section III. L.1.j.iii; pp ) Replenishment assessments are not imposed upon production under an Alternative Production Allocation so long as the production is within the fixed amount established for that producer. (Id.) The amount of the assessment must cover the cost of artificial replenishment in an amount necessary to off-set that producer's production in excess of their share of the Native Safe Yield and the Operating Safe Yield. ( Id.) The replenishment assessment is determined annually based upon Watermaster s estimate of the cost of providing non-native water to replenish the Basin. (Id.) Because non-native water is not presently available to replenish the Basin, Watermaster makes this calculation based on its best \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 43

44 estimate of the future cost of obtaining non-native water for replenishment when it becomes available. 6. Storage and Carryover Rights The Decision established that underground storage within the Basin is a public resource. (Section III.H; pp 25.) Subject to supervision by the Watermaster and the Court, the Standard Producers are permitted to utilize available storage space for groundwater storage projects. (Section III.H; pp ) The Watermaster is to determine the total useable storage space in the Basin, and may adjust its determination as it deems appropriate. (Id.) Standard Producers are also granted the right to carry over unused Standard Production Allocation from year to year, subject a BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA percentage decrease consistent with percentage decreases in the Operating Safe Yield. (Section III.F; pp 23.) 7. Transferability of Water Rights Standard Producers may assign and transfer any portion of their Standard Production Allocation on an annual basis or in perpetuity to any person for use within the Basin. (Section III.M.2; p. 42.) The Parties may also assign and transfer the right to extract any quantity of water stored or carried over. (Id.) 8. Watermaster Section III.L of the Decision establishes the Watermaster to administer and enforce the provisions of the Decision and any subsequent instructions or orders of the Court. The Watermaster consists of thirteen voting positions held among nine representatives. Cal-Am, City of Seaside, City of Sand City, City of Monterey, and City of Del Rey Oaks each appoint a representative. The Landowner Group, representing the overlying landowners, appoints two representatives: one representative from the Coastal Subarea and one representative from the LSSA. The Monterey Peninsula Water Management District and the Monterey County Water Resources Agency also each appoint a representative. The Cal-Am representative possesses three voting positions; the Seaside, MPWMD, and MCWRA representatives each possess two voting positions; and every other representatives possesses one voting position. Each representative from the Landowner Group is to carry one-half of the Landowner representative vote. (Section III.L.1; \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 44

45 1 p 29.) Continuing Jurisdiction The Decision reserves full jurisdiction, power and authority to the Court to make such further or supplemental orders or directions as may be necessary or appropriate for interpretation, enforcement, or implementation of the Decision. (Section III.O.1; p. 44.) The Court may also modify, amend or amplify any of the Decision s provisions, except adjustments to water rights and production allocation unless necessary to accommodate the intervention of a new party. The Court may also join, through intervention, new parties that produce or propose to produce groundwater from the Basin. (Section III.O.1; p. 45.) Pursuant to the Court s continuing BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA jurisdiction, the Court also review a decision issued by Watermaster. (Section III.N; pp ) E. Overview of Monterey Peninsula Water Issues and Seaside Basin s Role 1. Carmel River and Seaside Basin The Monterey Peninsula has endured water supply challenges for decades stemming from the fact that, unlike many areas of California, the community relies exclusively on locallygenerated water supply. Cal-Am is the Monterey Peninsula s principal water supplier. Its principal source of supply has been, and presently continues to be, diversions from underflow of the Carmel River. Cal-Am also extracts groundwater from the Seaside Basin in both the Northern Coastal Subarea and the LSSA. Its largest well (the Peralta Well) was installed within the Coastal Subarea in 1993 to address deficiencies in supplies from the Carmel River Valley. 2. SWRCB Orders (WR Order and WR Order ) and Historical Replacement Water Supply Efforts Between 1987 and 1991, the State Water Resources Control Board ( SWRCB ) received four complaints one filed by the California Department of Parks and Recreation and three by local non-governmental entities regarding Cal-Am s groundwater extractions from the Carmel River Valley. In 1995, the SWRCB issued WR Order 95-10, ruling that: (1) groundwater extracted by Cal-Am from the Carmel River Valley is subterranean stream flow subject to the jurisdiction of the SWRCB; (2) extractions by Cal-Am dewater the river and jeopardize steelhead trout and sensitive riparian habitat; (3) Cal-Am s legal right (based on pre-1914 water \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 45

46 rights) was only 3,316 AFY; (4) Cal-Am did not possess a valid basis of right to appropriate groundwater from the valley s subterranean streamflow in excess of 3,316 AFY; and (5) Cal-Am had extracted a total of about 10,730 AFY (approximately 70 percent of its historical diversions) without a valid basis of right. The order required directed Cal-Am to diligently pursue efforts to develop a legal supply of water to replace its unlawful diversion. Cal-Am initially sought to obtain the necessary water from a proposed new dam on the Carmel River proposed by the MPWMD, which would have been called the New Los Padres Dam. However, MPWMD was unable to secure public support for funding and that dam was never constructed. Cal-Am then filed an application with the California Public Utilities BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA Commission ( CPUC ) for its own dam project, the "Carmel River Dam." which was never constructed. However, while that CPUC application was pending, the state legislature adopted legislation directing the CPUC to identify a long-term water supply contingency plan to replace Cal-Am s unauthorized water diversions from the Carmel River. This process ultimately led to a determination to pursue desalination as the principal replacement water supply instead of a new reservoir on the Carmel River. In 2009, the SWRCB issued a cease and desist order upon Cal-Am in relation to its ongoing unauthorized diversions from the Carmel River in WR Order (the CDO ) The CDO imposed an immediate reduction requirement on Cal-Am s diversions, a schedule of additional annual reductions through 2016, and a requirement that all unauthorized diversions by Cal-Am cease no later than December 31, The Monterey Peninsula Water Supply Project (MPWSP) In the face of the CDO, Cal-Am is now seeking to permit and construct the Monterey Peninsula Water Supply Project ( MPWSP ), which consists of three components: A large desalination plant; Aquifer Storage and Recovery ( ASR ), which will capture and inject surplus wetperiod diversions from the Carmel River, which are permitted by the SWRCB, for injection into and subsequent recovery from the Seaside Basin; and The Pure Water Monterey Project (commonly referred to as the Groundwater \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 46

47 Replenishment Project or GWRP ), which would use advanced water treatment procedures to treat effluent water and other degraded water supplies for injection into and subsequent recovery from the Seaside Basin. a. Desalination Plant The MPWSP's desalination plant is planned to be located just north of the City of Marina. The plant will be sized at either 9,750 AFY or 6,250 AFY, depending on the availability of water from the GWRP. The project is currently being evaluated by the CPUC. b. Expanded ASR Project The ASR project a partnership between Cal-Am and MPWMD captures excess winter BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA flows from the Carmel River for storage in the Basin and withdrawal during the dry, summer months. Winter flows are considered excess only when they exceed what is needed to protect the river s threatened population of steelhead trout. As part of the MPWSP, Cal-Am plans to construct two additional ASR wells that will increase capacity of the program and allow the desalination plant to be smaller than would be needed without the additional ASR wells. c. GWRP The GWRP will deliver up to 3,500 AFY of highly purified water that will be injected into the Basin for subsequent recovery by Cal-Am. The source water will undergo a four-step advanced water purification process to create a safe and sustainable supply of purified water. 4. The Basin s Role in Monterey Peninsula's Water Supply The Basin will provide a permanent supply of groundwater to Cal-Am, the City of Seaside, and various overlying land users indefinitely, but in a reduced amount consistent with the Basin s long-term safe yield. In addition to its supply of native groundwater, the Basin will provide an essential subterranean reservoir to store water produced from the GWRP and ASR project. Studies conducted by the Watermaster and others have concluded that the Basin can serve as a reliable long-term source of water to water purveyors and overlying landowners, but not at the historical rates of well pumping. The Natural Safe Yield of the Basin was established in the Decision as approximately 3,000 AFY. Historical pumping rates just prior to the Decision were \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 47

48 approximately 5,600 AFY. Due in part to conservation measures and compliance with the Decision s mandated triennial pumping reductions, annual pumping from the Basin dropped to less than 3,800 AF in Water Year Cal-Am s allocation of the Basin s Native Safe Yield is approximately 1,474 AFY, and Cal-Am intends to continue pumping indefinitely at this rate after its current pumping levels have ramped down to that level. Cal-Am is sizing the MPWSP to allow it to meet its water customer demands by augmenting its entitlement to 1,474 AFY of Basin groundwater. As part of the sizing of the MPWSP, Cal-Am has included capacity to produce an additional 700 AFY of desalinated water for a period of at least 25 years in order to replenish the BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA Basin in an amount equal to its historical overpumping dating back to the date of the Decision. This will enable Cal-Am to reduce its pumping of native groundwater from the Basin to 774 AFY (rather than its allowed 1,474 AFY) for a period of at least 25 years. 5. Schedule for MPWSP and GWRP Cal-Am has applied to the CPUC for a certificate of public convenience and necessity ( CPCN ) for the MPWSP. The matter is pending in Application A Unfortunately, due to delays in the CPUC s processing of the application, the startup date for the desalination project has been delayed. However, the majority of the parties to A have settled on the substantive issues relating to desalination and the GWRP. Cal-Am anticipates that the CPUC will release a recirculated Environmental Impact Report/Environmental Impact Statement for the desalination project in late The schedule anticipates action on the CPCN authorizing Cal- Am to construct the desalination plant in Following the issuance of a CPCN for the desalination project, a "Coastal Development Permit" will be required from the California Coastal Commission prior to the commencement of construction. The startup date for the desalination project is now scheduled for A separate CPCN from the CPUC will also be required for Cal-Am to enter into a Water Purchase Agreement ( WPA ) for the purchase of water from the GWRP. This approval is anticipated later in Once a WPA is executed, construction on the GWRP can commence shortly thereafter since the project has already been approved by the Monterey Regional Water \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 48

49 Pollution Control Agency and the MPWMD and an EIR has been certified for the project. The startup date for the GWRP is scheduled for Proposed CDO Extension Because of delays in the permitting and processing of the MPWSP, Cal-Am will not have a substitute water supply to allow it to cease all unauthorized diversions from the Carmel River Valley by the CDO s present deadline (at the end of 2016). Therefore, Cal-Am, the MPWMD, and the Monterey Peninsula Regional Water Authority ( MPRWA ) have filed an application for an extension of the CDO that would impose incremental further reductions to Carmel River Valley pumping in the near term, with full cessation of unauthorized diversions by the end of BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA The proposal was extensively negotiated with SWRCB staff. Cal-Am anticipates that a decision on the proposed modified CDO will be issued by the SWRCB during the second half of As proposed, the modified CDO would require an immediate additional reduction of more than 1,000 AFY, followed by further reductions annually of 1,000 AFY, if specified milestones for progress on the desalination and GWRP are not met. Thus, whether Cal-Am can satisfy Monterey Peninsula water demands without extreme rationing, which would be injurious to the regional economy and social welfare, will depend on both the extent of water demand during this 18 interim period and whether the specified project milestones for project advancement are satisfied. 19 F. Potential Request for Relief From the Triennial Rampdown Pursuant to terms of the proposed CDO extension, the most challenging years for the Monterey Peninsula will be Depending on the SWRCB s actions on the proposed CDO extension, demand projections, and developments concerning the MPWSP, Watermaster and its members may seek the Court s permission to postpone the rampdown to the Operating Safe Yield of 560 AFY. Such relief from the Operating Safe Yield may be justified, principally because Watermaster, through an arrangement with the City of Seaside, has already replenished 2,500 acre-feet of non-native water into the Basin. This has occurred through the City of Seaside s acquisition of 2,500 acre-feet of imported water, which it has used in-lieu of producing the Alternative Production Allocation to which it is entitled for irrigation of two golf \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 49

50 courses owned by the city. Watermaster, with the Court s concurrence, entered into an agreement with the City to grant it a credit against the replenishment assessment liability that it incurred in relation to the City s production of Standard Production Allocation for its small municipal water system. Thus, effectively, Watermaster has purchased this 2,500 acre-feet of replenishment supply for the Basin s benefit. The Decision allows relief from applicable rampdown if Watermaster has secured and is adding an equivalent amount of Non-Native water to the Basin on an annual basis (Cite.) Watermaster s in-lieu replenishment program with the City of Seaside does not meet the express criteria of replenishing equivalent Non-Native water on an annual basis. However, there may be BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA a reasonable basis to forego the rampdown for the following reasons: The three-year rampdown total is 1,680 AF (560 AF x 3 years) and 2,500 acre-feet of replenishment has occurred. Thus, the quantity of replenishment water is 149% of the quantity of rampdown relief that may be requested. Watermaster has implemented a robust monitoring and seawater intrusion response program, and there is no evidence of seawater intrusion or any other imminent adverse impact to the Basin. Relief from the rampdown may be critical to Cal-Am s ability to comply with the CDO (if modified) in and to avoid deleterious economic and social consequences to the region. The MPWSP will assist in remediating the Basin s groundwater levels once the project is online. Cal-Am has not determined whether relief from the rampdown will be necessary. Cal-Am and the community will be better able to make this determination in Watermaster apprises the Court of this issue now to afford the Court advanced notice of this potential future matter and to seek any early direction from the Court concerning the issue \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 50

51 1 2 3 G. Summary of Historical Basin Production, Basin Conditions, Seawater Intrusion Monitoring and Management Plan, and Other Watermaster Actions Historical production from the Basin is summarized in the following table: BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA Water Year (Annual Report Year) SEASIDE BASIN WATER USAGE Decision-Allowed v. Actual Decision-Allowed Operational Yield, in AF , , , , , , , , , , , , , , , , , , , ,762.0 Total 49, , \0001\ Actual Total Basin Production in AF As this table shows, actual production has been continuously below the cumulative Operating Safe Yields since the entry of the Decision. Total production has been 5,121 acre-feet less than the total Operating Safe Yield. Nonetheless, groundwater levels have continued to decline in the areas of pumping depressions in the Northern Coastal Subarea and the LSSA. For example, summertime static (non-pumping) groundwater levels within a key well in the Northern Coastal Subarea fell from to feet below mean sea level between 2009 and 2015, and summertime static groundwater levels within a key well in the LSSA fell from to feet above mean sea level over that same period. The most recent groundwater elevation maps for the Basin developed by Hydrometrics LLC are attached as Attachment. These groundwater declines must be addressed over the long term. 1. Preventing Seawater Intrusion As part of implementing the M&MP, Watermaster installed a series of sentinel monitoring wells along the coast within the Coastal Subarea to monitor a number of indicators that will provide advance notice of potential seawater intrusion into the Basin. Data collected from these sentinel wells, as well as many other wells located within the Basin, are analyzed in ADJUDICATION BACKGROUND REPORT AND UPDATE 51

52 the Seawater Intrusion Analysis Reports ( SIAR ) prepared for the Watermaster by its consultant, HydroMetrics LLC. These reports have been prepared annually since The geochemical analyses contained in the reports have consistently shown that no seawater intrusion has been detected in either of the Basin s principal aquifers the Paso Robles Formation (shallow) or Santa Margarita Sandstone (deep). Although seawater intrusion into the Basin has not been detected, the potential for it to occur exists as long as groundwater levels within the Basin are below mean sea level. 2 Groundwater levels in the Northern Coastal Subarea must be returned to above sea level to achieve a positive offshore gradient, which will preclude seawater intrusion into the Basin. BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA Alternatively, recharge along the coast must be augmented to establish a positive offshore gradient through a seawater intrusion barrier, similar to seawater intrusion barriers established elsewhere in California. In February 2009, as mandated by the Decision and as part of the Watermaster s implementation of the M&MP, HydroMetrics LLC prepared a Seawater Intrusion Response Plan ( SIRP ). The SIRP is the Watermaster s contingency plan for responding to seawater intrusion in the Basin, if and when it occurs. Section 3 of the SIRP establishes indicators of seawater intrusion. These indicators are used in preparing the SIARs each year. Section 4 of the SIRP lists response measures that will be implemented if seawater intrusion is observed in the Basin. These actions consist of the following steps: Immediate sample verification (resampling) if any of the seawater intrusion indicators is detected. 2 In the Northern Coastal Subarea's shallow aquifer (Paso Robles), groundwater levels have stabilized over the past several years and are above sea level, except within a pumping depression centered around the main production wells in this subarea where levels are in some locations more than 25 feet below sea level. In the deep aquifer (Santa Margarita) of the Northern Coastal Subarea, groundwater levels continue to be well below sea level. Within a pumping depression centered around the main production wells in this subarea, levels in some locations are up to 50 feet below sea level. The trend shows an overall long-term decline in groundwater levels since the Decision was entered. In the Southern Coastal Subarea groundwater levels have always been above sea level and have continued to remain stable over time \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 52

53 Issuance by the Watermaster of a Declaration of Seawater Intrusion if verification confirms the occurrence of seawater intrusion. Notification to groundwater producers in the Basin that the contingency actions contained in the SIRP have been triggered. Implementation of a pumping redistribution plan to contain the area where intrusion has been detected and to protect production wells against intrusion Initiation of efforts to strategically use supplemental water supplies to protect the Basin and to restore it to pre-seawater intrusion conditions. BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA No sources of supplemental water are identified in the SIRP, but potential sources are listed in the Basin Management Action Plan ( BMAP ) prepared for the Watermaster by HydroMetrics LLC in February That document describes supplemental water supplies and management actions that may be implemented to help prevent seawater intrusion by allowing groundwater levels to recover in the Basin. Of the supplemental sources described in the BMAP, the principal one currently being pursued is the MPWSP, described above. 2. Stabilizing Groundwater Levels in the LSSA Groundwater levels in the LSSA have gradually declined since the Decision was entered The declines are attributable to production occurring both within the Basin and outside of the adjudicated boundaries within the Corral de Tierra Subbasin, which adjoins the LSSA to the east. Recent groundwater modeling studies prepared for the Watermaster by HydroMetrics indicate that the eastern side of the LSSA (adjacent to the neighboring Corral de Tierra Subbasin) will suffer the most severe and persistent declines. Pumping in the Corral de Tierra Subbasin reduces the amount of groundwater that flows from that area into the LSSA. This results in a reduced amount of naturally occurring recharge of the LSSA, which contributes to the decline of groundwater levels within the LSSA. The modeling results showed that, without further management, groundwater elevations will gradually decline and that levels will fall below the top of the well screens in several of the wells in the LSSA prior to One hypothetical scenario modeled the effect of completely discontinuing all pumping in \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 53

54 the LSSA and allowing unrestrained pumping in the Corral de Tierra Subbasin consistent with current production quantities in that subbasin. Under that scenario, the groundwater flow direction in the easterly portion of the LSSA would shift northeasterly by 2041, resulting in groundwater flowing out of the LSSA and into the Corral de Tierra Subbasin. In this hypothetical scenario the model showed that groundwater levels in the eastern portion of the LSSA would continue to decline, in spite of there being no further pumping in the LSSA. Because the Watermaster has no control or influence over pumping outside the Seaside Basin boundaries, it is unable to prevent declining groundwater elevations in a portion of the LSSA without assistance from the County of Monterey, which has groundwater management BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA jurisdiction over the area to the east of the LSSA. Watermaster has contacted the County of Monterey to develop mutually acceptable solutions to the declining groundwater levels in both areas. Watermaster anticipates that a robust collaborative effort will develop in relation to the GSP planning process for the Corral de Tierra Subbasin under SGMA. Under SGMA, the GSA for the Corral de Tierra Subbasin must coordinate with the Watermaster for the Seaside Basin to avoid undesirable results, as defined in SGMA, in both areas. (Water Code.) Through the SGMA process, excessive pumping in the Corral de Tierra area must be curtailed. (Water Code.) Watermaster intends to coordinate with the emerging GSA for the Corral de Tierra Subbasin to achieve sustainable groundwater management in both areas. Watermaster will routinely update the Court on these efforts. 20 H. Next Steps and Proposed 2017 Status Conference Watermaster will monitor and, to the extent possible, participate in the GSA formation process for the Corral de Tierra Subbasin and begin coordination efforts once the GSA is established. Cal-Am and the MPWMD will continue to update Watermaster on progress for the MPWSP and GWRP. Watermaster will report on the status the sissues described in this report in its 2016 Annual Report to the Court. Watermaster proposes that the Court set a further status conference hearing for the first quarter of At that status conference, Watermaster will update the Court on the development of the MPWSP and the requested CDO extension from the SWRCB, report \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 54

55 1 2 on the strategy to address groundwater level declines in the LSSA, and discuss whether a motion for relief from the rampdown is anticipated in Dated:, 2016 BROWNSTEIN HYATT FARBER SCHRECK, LLP By: RUSSELL M. McGLOTHLIN Attorneys for Seaside Groundwater Basin Watermaster BROWNSTEIN H YATT F ARBER SCHRECK, LLP 1020 State Street Santa Barbara, CA \0001\ ADJUDICATION BACKGROUND REPORT AND UPDATE 55

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57 ITEM NO.IX.B 5/4/16 SEASIDE GROUNDWATER BASIN WATERMASTER TO: Board of Directors FROM: Robert S. Jaques, Technical Program Manager REVIEWED AND APPROVED BY: Dewey D Evans CEO DATE: May 4, 2016 SUBJECT: Sustainable Groundwater Management Act (SGMA) Update RECOMMENDATIONS: Send a letter signed by each Watermaster board member to Monterey Peninsula Water Management District (MPWMD) stating the Watermaster s support of MPWMD s planned approach to seek boundary revisions to the Department of Water Resources (DWR) Bulletin 118 for the Seaside Basin. BACKGROUND DWR publishes a document titled Bulletin 118 which identifies groundwater basin and subbasin boundaries throughout California. In conjunction with implementation of the SGMA, DWR solicited requests for revisions to those boundaries from parties believing that the previously shown boundaries were not accurate or not correct. This is an update on the planned submission of a basin boundary modification request to recognize the adjudicated Seaside Basin and to more accurately show the relationship of this Basin to the subbasins and subareas shown in Bulletin 118 for the Salinas Valley Basin. DISCUSSION In late 2015 MPWMD convened a meeting of stakeholders including Monterey County, Monterey County Water Resources Agency, Marina Coast Water District, California American Water, and the Watermaster to discuss the issue of seeking revisions to the boundaries of subbasins within the Salinas Valley Basin in the vicinity of the Seaside area, as defined by the Salinas Valley Basin map contained in Bulletin 118. There was consensus at that meeting to have MPWMD take the lead in preparing and submitting a boundary modification request, as further described below. One of the required elements of the basin boundary modification process set forth by DWR is for the requesting agency to adopt a resolution formally initiating the boundary modification request process. Accordingly, MPWMD adopted such a resolution at the MPWMD Board meeting on January 27, According to the DWR basin boundary regulations, within 15 days of this resolution adoption, the DWR must be provided with an initial notification of the proposed boundary modification. This initial notification is first required to be filed and posted by DWR prior to the filing of the actual request for boundary modification. The language that MPWMD plans to submit to serve as the required brief description to go with the DWR s initial notification is as follows: 57

58 The proposed boundary modification is to recognize the adjudicated Seaside Groundwater Basin as a distinct basin boundary, per the adjudication decision ( decision ) filed with the California Superior Court on March 27, 2006 (Case No. M66343). The adjudicated Seaside Groundwater Basin boundary as defined in the decision more accurately reflects the understanding of hydrogeologic conditions in the basin than that depicted in the existing Bulletin 118 and the decision sets forth the physical solution needed for the basin s sustainable groundwater management. It is proposed that a new Bulletin 118 basin ID number of be used to recognize the adjudicated Seaside Basin as a distinct basin boundary. Recognition of the adjudicated Seaside Basin would include both internal and external boundary modifications to two existing Bulletin 118 basins: (1) , Salinas Valley, Seaside Area, and (2) , Salinas Valley, Corral de Tierra Area. The basis for these modifications will be further described in the boundary modification request to be submitted to DWR. This information was presented to and discussed by the TAC at its January 13, 2016 meeting, and the TAC supported MPWMD s proposed approach. One of DWR s requirements is that stakeholders and other affected parties be informed of proposed modifications so they can provide their input prior to submittal of the request to DWR. Informing the TAC and the Watermaster Board about the proposed approach will assist in complying with the intent of DWR s requirements. ATTACHMENTS Two maps: (1) The existing Bulletin 118 map showing basin boundaries in the northern portion of the Salinas Valley and adjacent areas, and (2) The proposed basin boundary revision that recognizes the adjudicated Seaside Basin (Plate 1). 58

59 Attachment 1 59

60 Attachment 2 60

61 SEASIDE GROUNDWATER BASIN WATERMASTER 2600 Garden Road, Suite 228, Monterey, CA (831) May 4, 2016 Monterey Peninsula Water Management District Attention: Joseph Oliver 5 Harris Court, Building G Monterey, CA Subject: California Department of Water Resources Groundwater Basin Boundary Modification Request to Recognize the Adjudicated Seaside Groundwater Basin Dear Mr. Oliver: It is our understanding that the Department of Water Resources (DWR) is in the process of reviewing the basin boundary modification request that was submitted by MPWMD (requesting agency) to formally recognize the adjudicated Seaside Basin boundary in DWR s Bulletin 118. As part of the boundary modification request process, any affected agency or affected system can elect to support or oppose the proposed boundary modification. Accordingly, this letter is intended to provide documentation of support for the adjudicated Seaside Basin boundary modification request on behalf of the Seaside Basin Watermaster. The Seaside Basin Watermaster is comprised of nine (9) Parties representing, the following Public Agency Parties -- cities of Seaside, Sand City, Del Rey Oaks, and Monterey, the County of Monterey, the Monterey County Water Resources Agency, and the Monterey Peninsula Water Management District; a Public Water System Party -- California American Water (CalAm); and a Landowner Parties group which is not a Public Agency Party or a Public Water System Party. Collectively, these members represent more than three-quarters of the affected local agencies and public water systems in the basin, and the signatures below represent the support from Watermaster Parties. If any additional information or explanation is required, please do not hesitate to contact Dewey Evans, Chief Executive Officer for the Seaside Basin Watermaster at the above address. Mayor Ralph Rubio City of Seaside Councilmember Libby Downey City of Monterey Mayor David Pendergrass City of Sand City Mayor Jerry Edelen City of Del Rey Oaks 61

62 Seaside Groundwater Basin Watermaster Support of Basin boundary modification request by MPWMD May 4, 2016 Page 2 Director Paul Bruno Coastal Subarea Landowners Director Bob Costa Laguna Seca Subarea Landowners Director Eric Sabolsice California American Water Director Bob Brower Monterey Peninsula Water Management District Supervisor Dave Potter, District 5 Monterey County/Monterey County Water Resources Agency 62

63 ITEM X. INFORMATIONAL REPORTS (NO ACTION REQUIRED) 63

64 SEASIDE GROUNDWATER BASIN WATERMASTER CRITICAL MILESTONE DATES ANNUAL MILESTONES Water Years Alternative Producers may change to Standard Production by March 27, 2009 (see amendment at right) by filing a declaraton with the Court and with the other parties. 27-Mar Sep-07 Commencing with the fourth Water Year and Triennially thereafter, the Operating Yield for both Subareas will be decreased by 10% until the Operating Yield is equivalent to the Natural Safe Yield unless by recharge or reclaimed water use results in a decrease in production of Native Water as required by the decision. After the close of each Water Year, the Watermaster will determine and levy a Replenishment Assessment against all Producers that incurred Operating Yield Over Production during the Water Year, with payment due from Producer 40 days after the mailing of a statement for the assessment by Watermaster. 15-Nov 30-Nov 30-Nov 23-Jan 30-Nov 30-Nov California American Water to submit annually to Watermaster any augmentation to water supply for possible credit toward Repl Assessment Annually 15-Nov APA to SPA election amended to in-perpetuity 12/12/2009 CAW Credit Request Granted (signed MOU) January 15, % of the Operating Yield of 5,600 decreased 10% Jan 1, 2009; and 100% of 5,600 acre feet decreased 10/1/09 CAW Credit Req Granted 2/3/10 CAW Credit Req Granted 2/2/11 Cypress converted 8 of its 14 AF APA to SPA 1/21/15 100% of the Operating Yield of 5,040 decreased another 10% of 5,600 on Oct 1, 2011; again on October 1, Oct Revised calculation method adopted 30-Nov 1-Oct CAW Credit Req Granted 2/1/12 15-Nov 15-Nov 15-Nov 15-Nov Reported Water level monitoring - monthly data collection from all members for inclusion in the consolidated database. Annually Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Water quality yearly data collection from all members for entry in consolidated database Reported Annually 15-Nov 28-Feb & 15-Nov 15-Nov 15-Nov 15-Nov 31-Aug 15-Nov 15-Nov 15-Nov 15-Nov Summary report of water resources data to all Jan, Apr, Jul, Jan, Apr, Jul, Jan, Apr, Jul, Jan, Apr, Jul, Jan, Apr, Jul, Jan, Apr, Jul, Jan, Apr, Jul, Jan, Apr, Jul, Jan, Apr, Jul, Quarterly members/parties the 15th each quarter month: Oct 15th Oct 15th Oct 15th Oct 15th Oct 15th Oct 15th Oct 15th Oct 15th Oct 15th Annual Report to Court 15-Jan 15-Nov 15-Nov 15-Nov 23-Dec 8-Dec 15-Dec 15-Dec 15-Dec 15-Dec 15-Dec ADMINISTRATIVE MILESTONES Calendar Years Adjudicaton ordered by Court and filed 27-Mar-06 Board Directors Terms 7-Nov 1-Feb-12 1-Feb-12 1-Feb-14 1-Feb-14 May Budget (Administrative) Adopted / distributed 15-Jan Jan 15-Jan 15-Jan 15-Jan 15-Jan 15-Jan-16 Budget (Operations) Adopted/distributed 15-Jan Jan 15-Jan 15-Jan 15-Jan 15-Jan 15-Jan-16 Budget (Replenishment) Adopted / distributed 15-Jan Jan 15-Jan 15-Jan 15-Jan 15-Jan 15-Jan-16 Administrative Assessments 15-Jan Jan Jan Jan Jan Jan-11 NONE 15-Jan Jan 15-Jan Jan-16 Operations Assessments 15-Jan Jan Jan Jan Jan Jan-11 NONE NONE NONE 15-Jan Jan-16 Capital Assessments 15-Jan Jan-07 NONE 15-Jan-09 NONE NONE NONE NONE NONE NONE NONE Replenishment Assessments CAW credit CAW credit CAW credit CAW credit CAW credit CAW credit CAW credit 15-Jan Jul Jan Jan-17 Annual Report to Court 15-Nov Nov Nov Nov Dec-10 8-Dec Dec 15-Dec 15-Dec Dec Dec-16 Answers to Judge's Questions re: Annual Report 30-Jan Feb-08 1-Feb-09 5-Feb-10 1-Aug-12 None None None None Declaration of Replenishment Water Availability Feb-06 Dec-06 Dec Mar 2-Dec-09 1-Dec Nov-11 4-Dec-13 3-Dec Dec Dec-16 ITEM X.A. 5/4/2016 MONTHLY MILESTONES Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Tentative budgets distribution to all parties (Operating Yield 5,600 decreased 10% end of 2014 WY) Declaration of Repl Water Available 1-Oct-15 5-Oct-16 Administrative Assessments 15-Jan-16 Operations Assessments 15-Jan-16 Capital Assessments None Replenishment Assessments 15-Jan-16 Recalculated Develop Repl Assessment Unit Cost $2, Oct-15 SPECIAL ISSUES Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Cal-Am CWP / Alt. Projects EIR / Basin Repl MOU MOU amend 2/5/14 SWRCB Cease Desist Order Cal-Am In Effect Storage and Recovery Application and Agreement Complete Amendment pending MPWMD Basin Boundary Modification Request to DWR May Annoouncement Watermaster Board Regular Meeting Schedule Jan-cncld 17-Feb 2-Mar-cncld 6-Apr-cncld 4-May 1-Jun 6-Jul 3-Aug 7-Sep 5-Oct 2-Nov 7-Dec SUMMARY PROJECT SCHEDULE (See detailed project schedule for more information) Monitoring and Management Program 2016 Program Administration, Database Management (MPWMD) 1/1/16-12/31/16 Complete or deferred = Status Conference and Report to Court Enhanced Groundwater Model; LSSA Modeling (Hydrometrics, Todd GW) May Initital work complete Yet to be completed = Scheduled for Board meeting = Seawater Intrusion Detection & Tracking/ Analysis & SIAR (Hydrometrics & MPWMD) 1/1/16-12/31/16 Imminent Critical Deadline = 64 Refine and/or Update Basin Management Action Plan (Hydrometrics & MPWMD) 1/1/16-12/31/16 Revised April 20, 2016

65 D-R-A-F-T MINUTES Seaside Groundwater Basin Watermaster Technical Advisory Committee Meeting January 13, 2016 Attendees: TAC Members City of Seaside Rick Riedl (via telephone) California American Water Roger Hulbert City of Monterey Norm Green (via telephone) Laguna Seca Property Owners Bob Costa MPWMD Joe Oliver MCWRA Peter Kwiek City of Del Rey Oaks No Representative City of Sand City Leon Gomez (via telephone) Coastal Subarea Landowners No Representative Watermaster Technical Program Manager - Robert Jaques Consultants HydroMetrics Georgina King (via telephone) Others None The meeting was convened at 1:35 p.m. after a quorum had been established. 1. Public Comments There were no public comments. 2. Administrative Matters: A. Approve Minutes from the November 18, 2015 Meeting On a motion by Mr. Oliver, seconded by Mr. Hulbert the minutes from this meeting were unanimously approved as presented, with Mr. Kwiek abstaining. B. Progress Report on Salinas River Groundwater Basin Investigation Model TAC Mr. Jaques summarized the agenda packet materials for this item, also reporting that the planned January 2016 meeting of this TAC had been cancelled. Mr. Kwiek reported that a decision had not yet been made as to when the next TAC meeting will be held, but a notice in this regard will be sent out soon. C. Sustainable Groundwater Management Act (SGMA) Update Mr. Jaques summarized the agenda packet materials for this item. Mr. Oliver reported that DWR last updated Bulletin 118 in 2003, but the Salinas Valley Basin boundaries have been as currently shown since long before then. It is important that the Seaside 65

66 Basin be recognized as adjudicated, since adjudicated basins are exempt from most of the requirements of the SGMA. MPWMD will carry out DWR s required steps in pursuing the boundary revision request. Mr. Hulbert asked what changes were being requested regarding the adjudicated basin. Mr. Jaques described those changes which are along the southwestern, eastern, and northern boundaries of the Seaside Basin. Mr. Oliver explained the justification for deleting the area along the southwest boundary of the Basin and reported that MPWMD will include the justifications for each of these requested revisions in its submittal to DWR. Mr. Green asked if there is a hydrogeologic divide between the Seaside and Salinas Valley Basins. Mr. Oliver and Mr. Jaques responded that there is what appears to be a flow divide rather than a structural divide along the northern boundary of the Seaside Basin. Mr. King reported that HydroMetrics is assisting two of its other clients in preparing boundary revision requests, and offered to serve as a resource for questions if MPWMD has any as it prepares its request. Mr. Oliver thanked her for this offer. A motion was made by Mr. Oliver, seconded by Mr. Kwiek, to accept MPWMD s proposed approach as described in the agenda packet, and the motion passed unanimously. 3. Report on Expanded Analysis by HydroMetrics on Groundwater Flow Divides within and East of the Laguna Seca Subarea (LSSA) Mr. Jaques introduced this item and Ms. King provided a PowerPoint presentation (see attached slides) describing it. T he Model goes to the year This analysis evaluated the 3 scenarios described on page 20 of the agenda packet (Historic, Baseline, and No Standard or Alternative Producer Pumping). There was some Q&A during the presentation. She reported that recharge occurs largely to the east of the LSSA. Flow through the LSSA goes partly in a westerly direction to the Southern Coastal Subarea and partly in a northerly direction to the Northern Inland Subarea. The previously prepared Safe Yield Study aggregated data from all 5 layers of the Model whereas this analysis focused only on Layer 5. Layer 5 did not show flow going out of the LSSA to the east, whereas the aggregated data did show flowing going out of the LSSA to the east. Ms. King offered to add a new figure to the analysis to supplement Figure 14, showing inflows and outflows from just Layer 5. Ms. King noted that there has been little geologic study of the area to the east of the LSSA. This lack of data affects how accurately the Model can perform evaluations in that area. Mr. Oliver concurred with Ms. King s comments on this. Mr. Oliver requested that the term Alternate be replaced with Alternative Producer to be consistent with the language in the Adjudication Decision. He also asked if this expanded analysis Technical Memorandum would be included in the 2016 Annual Report, indicating some concern about the Memorandum s highlighting of the geologic uncertainty in the area to the east of the LSSA. Ms. King asked if the work being performed to update the Salinas Valley Basin model goes as far as the Corral de Tierra subbasin. Mr. Jaques said he understood from Mr. Franklin that it does not, but 66

67 Mr. Kwiek said that it was still being determined whether that area would be covered in the model update, which is limited to Zone 2C. There was consensus that it would not be worthwhile to do any further modeling of the area to the east of the LSSA at this time. It would be better to wait until more geologic data in that area is available. Mr. Jaques recommended making some revisions to the Conclusions in the Technical Memorandum as well as expanding some of them. A motion was made by Mr. Costa, seconded by Mr. Green, to approve the Technical Memorandum with the revisions recommended by Mr. Jaques, and other revisions requested by TAC members at today s meeting. The motion passed unanimously. 4. Schedule Mr. Jaques reported that there were no significant items to discuss in the Schedule. There was no other discussion of this item. 5. Other Business There was no Other Business to discuss. 6. Set Next Meeting Date The next TAC meeting will be on February 10, 2016 at 1:30 p.m. at the MRWPCA Board Room. The meeting adjourned at 2:50 p.m. Attachments: PowerPoint slides used during presentations of Agenda Item No

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