The meeting was called to order at 4 PM in the District Conference Room.

Board members present:

David Potter, Board Chair - Monterey County Board of Supervisors

Alvin Edwards, Vice Chair - Division 1

Ron Chesshire - Division 2

Molly Erickson - Division 3

Kris Lindstrom - Division 4

Alexander "Zan" Henson - Division 5

David Pendergrass - Mayoral Representative

Board members absent: None

Staff members present:

Darby Fuerst, General Manager

Ray Millard, Administrative Services Manager

Dave Dettman, Senior Fishery Biologist

Larry Hampson, Water Resources Engineer

Cynthia Schmidlin, Human Resources Analyst

Joe Oliver, Water Resources Manager

Henrietta Stern, Project Mgr./Public Information Rep.

Arlene Tavani, Executive Assistant

District Counsel present: David C. Laredo

I. CALL TO ORDER/ROLL CALL

The assembly recited the Pledge of Allegiance.

II. PLEDGE OF ALLEGIANCE

District Counsel Laredo reported on the 2 PM Closed Session of the Board. He advised that the Directors conducted a performance appraisal of District Counsel but no action was taken. In addition, the Board discussed negotiations with the candidate for General Manager but no action was taken. The Board did decide to continue the Closed Session and meet following adjournment of the 7 PM workshop.

During Oral Communications, Keith Mackie, owner of a lot in Pebble Beach, asked if water from the Paralta well that had been allocated to Monterey County in 1993 was subsequently distributed to the cities. He asked where all the water allocated in 1993 to Monterey county has been distributed. Mr. Mackie advised that during the 30 years that he has owned the lot, no agency notified him that water might not be available to the property. Chair Potter noted that staff would respond to his question in writing.

III. ORAL COMMUNICATIONS

On a motion by Director Chesshire and second by Director Pendergrass, the Consent Calendar was unanimously approved with the exception of items C and K that were pulled for separate consideration.

IV. CONSENT CALENDAR

Approved.

A. Consider Approval of Minutes from the Regular Board Meetings of April 16 and April 26, 2001.

Approved.

B. Consider Ratification of Agreements

On a motion by Director Henson and second by Director Chesshire, the employment agreement was approved on a vote of 4 - 3 with the following amendments: (1) page 4 of the agreement, add the following words to the last sentence under paragraph 1 in section C, "including, but not limited to, each project for which he will perform professional services;" and (2) add the following words to the end of paragraph 2 in sentence C, "The consulting engineering practice shall not perform professional services for any project physically located within the District." Directors Lindstrom, Erickson and Edwards voted against the motion.

During the public hearing on this item, Jim Hughes, representing Water For Us, addressed the Board. He described the employment agreement as the "strangest contract" he had ever encountered. He expressed concern that District staff was not consulted during the hiring process. Mr. Hughes stated that the salary is too high for a person that will manage only 26 employees. He noted that the salary is similar to that of the Pacific Grove City Manager who is responsible for 130 employees.

C. Consider Approval of Employment Agreement with New General Manager

Approved.

D. Consider Authorization of Funds to Retain Ventana Wilderness Society for Carmel River Avian Habitat Monitoring

Approved.

E. Consider Authorization of Funds to Retain Graham Matthews and Associates to Prepare Preliminary Design of the Lower Carmel River Restoration Project

Approved.

F. Consider Authorization of Funds to Retain IDIAS Consulting to Assist Staff in Project Management for the Phase III Hydrogeologic Study of the Laguna Seca Subarea

Approved.

IV. CONSENT CALENDAR

G. Consider Approval of Resolution Endorsing a Grant Application to the California Department of Water Resources for Investigation of Fort Ord Depressions Groundwater Recharge Area

Approved.

H. Consider Approval of Grant from California Department of Fish and Game for Installation of Large Wood Habitat Structures in Carmel River

Approved.

I. Consider Approval of Third Quarter Investment Report

Approved.

J. Consider Approval of Treasurer's Report for April 2001

On a motion by Director Edwards and second by Director Pendergrass, the Board agreed on a vote of 5 - 2 to designate Directors Chesshire, Edwards and Lindstrom (members of the Administrative Committee) as labor negotiators. Directors Erickson and Henson voted against the motion.

K. Designate Administrative Committee as Labor Negotiator

A motion was made by Director Erickson and seconded by Director Lindstrom to approve the Fiscal Year 2001-2002 budget and defer for discussion in closed session the following items: (1) Classification/Compensation Study; (2) resolution authorizing the 6.3 salary adjustment; and (3) resolution of intent regarding the PERS retirement contract. The motion failed on a vote of 4 - 3. Directors Erickson, Lindstrom and Henson voted in favor of the motion.

A motion was made by Director Edwards and seconded by Director Chesshire to: (1) approve the staff's recommendation regarding the Classification/Compensation Study and the FY 2001-2002 budget; and (2) to defer for discussion in closed session the resolution authorizing a 6.3 percent salary adjustment and the resolution of intent regarding the PERS retirement contract. The motion was approved on a vote of 4 - 3. Directors Erickson, Lindstrom and Henson voted against the motion.

During the public hearing on this item, Lou Haddad, a resident of the City of Monterey, read a letter dated May 31, 2001 that is on file at the District office. Mr. Haddad recommended that the consumer price index used by staff to estimate the requested cost of living increase be replaced with a consumer price index based on cities in the western United States with populations of under 1.5 million.

V. PUBLIC HEARINGS

A. Consider Adoption of Fiscal Year 2001-2002 MPWMD Budget

1. Consider Implementation of the 2001 Classification/Compensation Study

2. Consider Staff Compensation Request

3. Consider Adoption of MPWMD Budget

V. PUBLIC HEARINGS

A. Consider Adoption of Fiscal Year 2001-2002 MPWMD Budget

1. Consider Implementation of the 2001 Classification/Compensation Study

2. Consider Staff Compensation Request

3. Consider Adoption of MPWMD Budget

The meeting was recessed between 5 PM and 5:05 PM.

A motion was made by Director Erickson and seconded by Director Henson to: (1) designate Arlene Tavani as project coordinator and David Laredo as legal counsel to the public advisory committee; (2) authorize staff to select a facilitator; and (3) adopt the proposed schedule for completion of the redistricting process. The motion was approved on a vote of 7 - 0.

A motion was made by Director Erickson and seconded by Director Chesshire to form the public advisory committee as outlined in Exhibit A-2 with the following changes: (1) each jurisdiction would select two voting committee members and one alternate; (2) the U.S. Army and Navy would each appoint one representative to the committee; and (3) one of the committee members representing the Fifth Supervisorial District must reside within the Carmel Valley watershed. The motion was approved on a vote of 7 - 0.

No public comment was presented to the Board on this item.

VI. ACTION ITEMS

A. Consider Approval of Process to Redraw Water Management District Voter Divisions Based on Census 2000 Data

On a motion by Director Chesshire and second by Director Lindstrom, the Water Supply Forecast was approved on a vote of 7 - 0.

No public comment was presented to the Board on this item.

B. Receive Water Supply Forecast for Period of May 1, 2001 - September 30, 2002

There was no discussion of the Informational Items/Staff Reports.

VII. INFORMATIONAL ITEMS/STAFF REPORTS

A. Letters Received

B. Committee Reports

C. Strategic Plan Update

D. Water Supply Projects

VII. INFORMATIONAL ITEMS/STAFF REPORTS

E. Carmel River Fishery Report

F. Carmel River Erosion Protection and Restoration Report

G. Irrigation Program and Riparian projects Report

H. Water Conservation Program Report

I. Public Information Program

J. Monthly Cal-Am Sales Report

K. Monthly Cal-Am Production Report

L. Monthly Allocation Report

M. Financial Report - CAWD/PBCSD Wastewater Reclamation Project

N. Production Report - CAWD/PBCSD Wastewater Reclamation Project

O. Receive Report on Third Quarter Financial Activity

P. May 2001 Water Supply Status Report

The Board did not meet immediately, but chose to defer the Closed Session until after the 7 PM Board Workshop.

VIII. ADJOURN TO CONTINUED CLOSED SESSION

At 5:50 PM the meeting was adjourned to the 7 PM workshop.

IX. ADJOURN TO 7 PM WORKSHOP ON PLAN B AT THE MONTEREY CITY COUNCIL CHAMBERS