The meeting was called to order at 7:00 PM in the Monterey City Council Chambers.

Board members present:

David Potter, Chair - Monterey County Board of Supervisors

Alvin Edwards, Vice Chair - Division 1

Judi Lehman - Division 2

Molly Erickson - Division 3

Kris Lindstrom - Division 4

Alexander "Zan" Henson - Division 5

Board members absent:

David Pendergrass - Mayoral Representative

District staff present:

Ernesto A. Avila, General Manager

Stephanie Pintar, Water Demand Manager

Emily Whitfield, Conservation Representative I

Rick Dickhaut, Chief Financial Officer

Joe Oliver, Water Resources Manager

Andy Bell, Planning & Engineering Manager

Darby Fuerst, Senior Hydrologist

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

Arlene Tavani, Executive Assistant, administered the oath of office to Judi Lehman and Alvin Edwards.

III. ADMINISTER OATH OF OFFICE TO JUDI LEHMAN AND ALVIN EDWARDS

The following comments were directed to the Board of Directors during the Oral Communications period. (1) Fran Farina, a resident of Carmel Valley, asked that the Board conduct hearings as follows: staff presentation, questions of staff by Board, public presentations and deliberations. Ms. Farina made several requests: (a) all correspondence submitted on an agenda item be included in the Board packet; (b) District staff inform the public of the deadline for submitting correspondence for the Board packet; (c) the Board consider updating the Allocation Program EIR; and (d) consider amending the Districts' enabling legislation to eliminate two seats on the Board of Directors, specifically the mayoral and Board of Supervisors' appointees. (2) Michael Waxer, a resident of Carmel Valley, referred to a newspaper article published in the Monterey County Herald on December 9, 2001, that listed the names, addresses and amount of water used by some customers within the California-American Water Company service area. He reminded the Board that this information was considered confidential under MPWMD Ordinance No. 92. He expressed concern that other confidential information might be released to the public. Mr. Waxer suggested that the Board abandon use of the mandatory census forms, and instead offer financial incentives to customers who reduce water use by 20 percent. (3) Nancy Isakson requested that the Board adopt a policy that specifies what type of information is confidential and what type of information can be disclosed to the public. (4) John Fischer raised some questions about the Pebble Beach Company proposal for financing improvements to the CAWD/PBCSD Wastewater Reclamation Project. He also stated that the personal water use data published in the Monterey County Herald was contained in documents that were public information, available for review at local libraries. (5) Robert Greenwood, representing the Carmel Valley Property Owners Association (CVPOA), expressed support for agenda item VI.C.1, Request from Director Erickson to Discuss Continued Use of Commercial Water Factors and Residential Fixture Credit Methodology for On-Site Credits. He asked that water use credit be based on a five-year average or calculated credit, whichever is less. (6) Patricia Bernardi, resident of Carmel Valley, objected to minutes of the November 19, 2001 Board meeting because they incorrectly summarized her comments on proposed Ordinance No 101. Ms. Bernardi noted that she expressed concerns about CEQA compliance, existing facilities, transfer of water credits were originally based on assumption that desalination and dam projects would have been built, expansion of water use without guarantee of actual water savings, and other items. (7) Richard (unintelligible), a resident of Pebble Beach, asked if there was a reason that the Board of Directors needed to know the names of Cal-Am water users that were published in the Monterey County Herald. He asked who provided the information to the Herald reporter and why. He stated that he assumed the Herald reporter who wrote the article knew that the information was confidential. (8) David Dilworth congratulated the Monterey County Herald for publishing water use information that he has previously requested be made public. Mr. Dilworth asked District staff to advise him of the statute that prohibited publication of water-use information. Mr. Dilworth expressed his expectation that with a change on the Board of Directors, the public would be able to participate more fully in the District's business.

IV. ORAL COMMUNICATIONS

IV. ORAL COMMUNICATIONS

IV. ORAL COMMUNICATIONS

Director Erickson offered a motion that was seconded by Director Edwards to approve the Consent Calendar except for items A and B that would be considered separately. The motion was approved on a vote of 6 to 0. Director Pendergrass was absent.

V. CONSENT CALENDAR

A motion was offered by Director Erickson and seconded by Director Henson to approve the minutes with the following changes. (A) Page 16, paragraphs three and four should read "The motion failed on a vote of 3 to 4." (B) Page 17, paragraph one, last sentence, delete the words "recommended that the ordinance be referred to the Water Demand Committee," and replace them with the following, "objected to the ordinance for several reasons including lack of CEQA compliance and the original intent of the transfer rules." The motion was approved on a vote of 6 - 0. Director Pendergrass was absent.

A. Consider Approval of Minutes from the Regular Meeting of November 19, 2001

A motion was offered by Director Erickson and seconded by Director Lindstrom to adopt the guidelines with the following changes. (A) District Counsel will approve each deed restriction as to form to ensure that the correct template is used and that the form is filled out correctly. (B) The cost will be passed on to the applicant. Based on information contained on page 21 of the Board packet, that cost should be approximately $35. (C) District staff will be the last to sign the document before it is submitted to Monterey County. The motion was approved on a vote of 4 to 2. Directors Edwards and Potter voted against the motion. Director Pendergrass was absent.

During the public comment period on this item, Sheryl McKenzie, Government Affairs Director for the Monterey County Association of Realtors, stated that representatives from the real estate industry met with District staff to review the deed restrictions, but had not had the opportunity to review some of the changes proposed that evening. She requested that the public be given time to review the proposed changes before the Board considered adoption of the new deed restriction forms.

B. Consider Approval of Standard Format and Implementation Guidelines for Deed Restrictions

Approved unanimously.

C. Consider Reception of Annual Mitigation Report

Approved unanimously.

D. Consider Approval of District Investment Policy

Approved unanimously.

E. Consider Adoption of Treasurer's Report for October 2001

General Manager Avila advised that the County of Monterey will make a decision on the level of aerial photography work by February 2002. Mr. Avila noted that he would update the Board in February.

VI. PRESENTATIONS

A. General Manager's Report

1. Report on Legal Lot Study

District Engineer, Andrew Bell, reported that District staff had not notified the Board that the terms of two Carmel River Advisory Committee (CRAC) appointees expired in June of 2001. Mr. Bell advised the Board that he would notify those Directors that are responsible for designating appointees to the committee. Director Lindstrom requested that at the January 16, 2001 Strategic Planning Session, the Board discuss the value of CRAC and whether or not it should continue to exist.

2. Report on Status of Appointments to Carmel River Advisory Committee

General Manager Avila reported that the electrical panel has been installed at the full-scale test injection well site. District staff is working with Pacific Gas and Electric Company to get power to the panel so that the project is fully operational by mid-January 2002. The pilot-project well is functional and could be utilized if completion of the full-scale test injection well is delayed.

3. Report on Status of Full-Scale Test Injection Well

Mr. Avila reported that the District received a water rights permit from the State Water Resources Control Board (SWRCB) to conduct the full-scale test injection/recovery project. Mr. Avila has scheduled a meeting with the SWRCB on January 29, 2002 to discuss other pending water rights applications.

4. Report on Recent SWRCB Actions and Reports Related to the District, Including the Change Petition for Cañada Woods

Andrew Bell, District Engineer, presented a brief summary of the application that is on file at the District office. He explained that the application for change did not request in increase in diversions from the Carmel River Basin. The applicants did request that the water be applied over a larger area and in locations that differ from those specified in the original application. Director Erickson requested that a map of the project area be provided to the Directors.

The following comments were directed to the Board during the public comment period on this item. (1) David Dilworth expressed concern about the expansion of water use proposed in the change petition. He noted that no information on the project was provided in the Board packet in advance of the December 17, 2001 meeting. He asked that more complete information be provided to the public before the Board considers the item again. (2) Fran Farina, representing Save Our Carmel River (SOCR), recommended that the District participate in the process with the SWRCB. She stated that the District did agree to certain terms related to this application in 1992. However, since then SWRCB Order 95-10 was enacted and the Carmel River steelhead and California red-legged frog have been listed as an endangered species. According to Ms. Farina, the District is required to "actively review and protect the resource." (3) Robert Greenwood, representing the CVPOA, advised that in 1996 the developer's original proposal was that Cañada Woods North would be served by on-site wells, and the golf course would be supplied by reclaimed water. At that time, the CVPOA issued a letter stating that the developer would eventually request use of Carmel River water for the project. (4) Patricia Bernardi, a Carmel Valley resident and member of SOCR, urged the Board to file a protest against the change petition. She explained that the Cañada Woods project includes property that was previously part of the Monterra project with a water supply that would require reverse osmosis treatment. The applicant now proposes to serve that area with Carmel River water. She asked the Board to investigate this issue because it has not been determined whether the Monterra property is on the Monterey or Carmel Valley side of the ridge. (5) Tony Lombardo representing "the applicant," submitted a map showing the proposed change of use and the original Carmel River watershed boundary. In addition, Mr. Lombardo provided copies of the settlement agreements that were entered into between the applicants and the District. He noted that the water rights appropriation was finalized after the issuance of SWRCB Order 95-10. He advised that the EIR on the Cañada Woods project fully disclosed all sources of water for the project, including Carmel River water.

5. Report on Notice of Petition Requesting Changes to SWRCB Water Rights Application No. 30067-Roy Kaufman, and Application No. 30068-Leonard and Emily Williams Trust

VI. PRESENTATIONS

A. General Manager's Report

5. Report on Notice of Petition Requesting Changes to SWRCB Water Rights Application No. 30067-Roy Kaufman, and Application No. 30068-Leonard and Emily Williams Trust

District Counsel Laredo did not present a report.

B. Attorney's Report

A motion was proposed by Director Erickson and seconded by Director Henson to submit this item to the Water Demand Committee for review and bring it back to the Board for consideration at the January 31, 2001 meeting. The motion was approved on a vote of 6 - 0.

VI. PRESENTATIONS

C. Directors' Reports

1. Request from Director Erickson to Discuss Continued Use of Commercial Water Factors and Residential Fixture Credit Methodology for On-Site Credits

Director Erickson offered a motion that was seconded by Director Henson to submit this item to the Administrative Committee for review. The committee recommendation would be submitted to the full Board for consideration at the January 31, 2002 meeting. It is the Board's intent that the Policy and Technical Advisory committees meet to discuss this proposal prior to the January 31, 2002 meeting. The motion was approved on a vote of 5 - 1. Director Edwards voted against the motion.

2. Request from Director Erickson to Consider Appeal Fees

Director Lindstrom distributed a water augmentation work plan that he developed as a means to stimulate discussion in advance of the January 16, 2002 Strategic Planning Session. Director Lindstrom asked how staff planned to respond to the December 17, 2001 letter from the Carmel River Steelhead Association regarding action on reclaimed water for enhancement of the Carmel River Lagoon. General Manager Avila stated that the issue could be incorporated as a strategic initiative element to be discussed on January 16, 2002.

Director Edwards expressed concern about the release of confidential water-use information to the public. He requested that Ordinance No. 92 be referred back to the committee that originally worked to develop the plan. He asked that staff contact the committee members and ask them to participate on a review of the ordinance. He suggested that the meeting be scheduled in February 2002. Director Edwards also requested that the sign at the full-scale injection/recovery test well site be replaced with two, larger signs. One sign facing in each direction.

Director Erickson distributed copies of CEQA Statute 211726, Record of Proceedings. She asked for clarification of what documents constitute an administrative record and proposed that this could be discussed at the January 16, 2002 Strategic Planning Session, the January 22, 2002 Administrative Committee meeting, or at the January 31, 2002 Board meeting. Ms. Erickson made several requests: (a) the Administrative or Water Demand Committees review the question of whether a special circumstances request should come to the Board before or after it has been approved by the authorizing jurisdiction; (b) the Allocation EIR be referred to the Water Demand Committee; (c) the General Manager should report on the expected completion date for the Water Demand Division Customer Service Survey; and (d) staff should present an update on Administrative Committee review of improvements to posting the Board packet on the web site. Ms. Erickson also mentioned the issue of faxing staff notes to the public. General Manager Avila stated that he would present a report in February, after he has analyzed the capital costs associated with web page improvements.

Director Lehman noted that if Directors' Reports and the General Manager's Report were heard at the end of the agenda, the Board might make decisions on the public's business earlier in the evening.

3. Board Comments and Referrals

VI. PRESENTATIONS

C. Director's Reports

3. Board Comments and Referrals

Director Henson offered a motion that was seconded by Director Erickson to reconsider action taken on November 19, 2001 to adopt the second reading of Ordinance No. 101. The motion was approved on a vote of 4 to 2. Directors Potter and Edwards voted against the motion. Director Pendergrass was absent.

Director Henson offered a motion that Ordinance No. 101 be revoked consistent with the due process rights and any vested rights that may have been granted. There was no second to the motion.

Director Henson offered a motion that was seconded by Director Erickson, to modify Rule 28 and Ordinance No. 101 and to direct staff to come back with proposed language that would revoke the water credit transfer system in a manner consistent with due process and vested rights.

Director Erickson offered an amendment to replace the words "Rule 28 and Ordinance No. 101" with the words "All applicable rules." The amendment was accepted by Director Henson.

Director Henson restated his motion, which was to direct staff to redraft Ordinance No. 101 to revoke all rules concerning water credit transfers consistent with due process and vested rights. The Board will not consider adoption of the ordinance until there has been full public review.

Director Erickson offered an amendment that the ordinance should be submitted to the Board for first reading at the January 31, 2002 Board meeting. Director Henson accepted the amendment. The motion was approved on a vote of 4 - 2. Directors Potter and Edwards voted against the motion. Director Pendergrass was absent.

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

VII. PUBLIC HEARINGS

A. 1. Request by Director Henson to Reconsider November 19, 2001 Action to Adopt the Second Reading Version of Ordinance No. 101 - Water Use Credit Transfers

VII. PUBLIC HEARINGS

A. 1. Request by Director Henson to Reconsider November 19, 2001 Action to Adopt the Second Reading Version of Ordinance No. 101 - Water Use Credit Transfers

Director Henson offered a motion that was seconded by Director Lindstrom to continue the suspension of receipt of water credit applications until March 31, 2002.

Director Erickson offered an amendment that all pending water use credit transfer applications would be considered by the full Board. Director Henson agreed to the amendment. The motion was approved on a vote of 5 - 1. Director Edwards voted against the motion. Director Pendergrass was absent.

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

A. 2. Request by Director Henson to Reconsider November 19, 2001 Action to Extend the Water Credit Transfer Application Suspension Until Ordinance No. 101 is in Effect

On a motion by Director Edwards and second by Director Henson, the Water Supply Strategy and Budget was approved on a vote o 6 - 0. Director Pendergrass was absent.

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

B. Consider Adoption of January through March 2002 Quarterly Water Supply Strategy and Budget

Director Edwards offered a motion that was seconded by Director Erickson to receive the report. The motion was approved on a vote of 6 - 0. Director Pendergrass was absent.

The following comments were received during the public comment period on this item. (1) David Dilworth, representing HOPE, requested to see copies of all maps, proposed redistricting plans, and criteria that were presented to the committee. (2) John Fischer, a member of the redistricting committee, explained that the committee reviewed the minority report and decided not to identify it as a recommended plan, but to incorporate it into the final report. Mr. Fischer stated that he supported the minority plan, but believed that the committee's final recommendation was preferable. (3) Helen Rucker, a member of the redistricting committee, stated that she listened carefully to all comments raised during the committee meetings and reviewed all proposed plans. She noted that the information David Dilworth requested concerning the minority report was included in the Final Report and Recommendations from the Public Advisory Committee. (4) Tom Rowley, a member of the redistricting committee, advised the Board that he also served on the 1992 redistricting committee representing the City of Monterey. He noted that the Final Report and Recommendations is quite comprehensive in its explanation of the process followed by the committee. Mr. Rowley expressed a preference for Plan 4. (5) Larry Hawkins, City of Seaside representative on the redistricting committee, reminded the Board that all the redistricting committee meetings were noticed and open to the public. He resented allegations by a member of the public that the committee's recommendation was developed without adequate information. (6) Nancy Isakson, an alternate from the City of Carmel, part of the group that developed the minority report. She advised the Board that during the committee meetings all participants were given the opportunity to comment and present ideas. She noted that the minority report was incorporated into the final report, and that the public will have the opportunity to comment on all plans presented in the final report. (7) Patricia Bernardi, resident of Carmel Valley, and a member of the 1992 redistricting committee. Ms. Bernardi stated that the proposed Plan 4 deviates very little from the redistricting plan that was adopted in 1993. She expressed support for Plan 4.

VIII. ACTION ITEMS

A. Receive Final Report and Recommendations from the Public Advisory Committee on Redistricting

VIII. ACTION ITEMS

A. Receive Final Report and Recommendations from the Public Advisory Committee on Redistricting

A motion was offered by Director Edwards to approve recommendation C, described on page 193 of the Board packet: amend Rule 33(C) by changing the subdivision reference from "after" the effective date of the ordinance to "before;" and change the "cutoff" date to the effective date of the new ordinance that would modify Rule 33(C). In addition, the Board should adopt recommendations outlined on page 192, paragraph 4 of the Board packet: (a) allocation of water from the reserve be limited to properties within the former Water West service area; (b) each allocation from the reserve be limited to a maximum of 0.44 acre-feet per year; and (c) that 20% of the existing reserve of 12.76 acre-feet per year be dedicated to conservation. The motion was approved on a vote of 5 - 1. Director Henson voted against the motion. Director Pendergrass was absent.

The following comments were received during the public comment period on this item. (1) Nancy Isakson, representing Chris and Mary Currier, stated that the Currier's agreed with the proposal to limit water use at each property to 0.44 acre-feet per year, that 20% of the existing reserve be dedicated to conservation, and that water from the reserve be used only within the former Water West service area. Ms. Isakson warned that if the Board did not approve the Currier's request, it could be considered a denial of the Currier's right to a water allocation and set the precedent for taking other jurisdictions' allocations. (2) Patricia Bernardi, a resident of Carmel Valley, spoke in support of the recommended rule changes. She reasoned that it was an issue of fairness for the 14 property owners that had maintained a water connection for 25 years with the understanding that water would be available to serve their parcels. (3) Fran Farina urged the Board to adopt a change to Rule 33(C) and: (a) limit the use of the water to the former Water West service area; (b) limit water use to 0.44 acre-feet per connection; and (c) reduce the total amount of water available by 20 percent.

B. Discussion and Information Regarding Appropriate Action to be Taken in Response to Request by Chris and Mary Currier for Service Within Former Water West Service Area - AP# 187-241-017, Country Club Drive, Carmel Valley

VIII. ACTION ITEMS

B. Discussion and Information Regarding Appropriate Action to be Taken in Response to Request by Chris and Mary Currier for Service Within Former Water West Service Area - AP# 187-241-017, Country Club Drive, Carmel Valley

On a motion by Director Lindstrom and second by Director Erickson, the Board agreed to discontinue ratification of agreements that have been previously approved by the Board and executed in accordance with the terms and conditions of said approval. The motion was approved on a vote of 6 - 0. Director Pendergrass was absent.

No public comment was presented on this item.

C. Receive Report and Recommendation Regarding Ratification of Agreements by the District

Director Potter announced that there was no need to take action on this item, considering the action taken under item VIII.C.

D. Consider Ratification of Agreement with De Lay & Laredo for Legal Services

Director Edwards offered a motion and Director Henson seconded to approve the staff recommendation: (a) District Meeting Rule 2 be amended to state that in the future, the election of Board officers occur at the December meeting; (b) the election of officers be listed as the last item for discussion on future December meetings; (c) that new officers take their position after the December Board meeting; and (d) that the rotation of Chair be encouraged. In addition, the Board should take nominations for officers from the full Board at the January 31, 2001 meeting. Also, appoint Kris Lindstrom to the Administrative Committee. The motion was approved on a vote of 6 - 0. Director Pendergrass was absent.

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

E. Review Rules and Process for Selection of Board Officers for Calendar Year 2002 and Consider a Temporary Director Appointment to the Administrative Committee by Chair Potter

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

IX. INFORMATIONAL ITEMS/STAFF REPORTS

A. Letters Received

B. Committee Reports

C. Strategic Plan Update

D. Water Use Supply Projects

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. Water Use Credit Transfer Status Report

J. Redistricting Committee Progress Report

K. Monthly Cal-Am Sales Report

L. Monthly Cal-AM Production Report

M. Monthly Allocation Report

N. Financial Report - CAWD/PBCSD Wastewater Reclamation Project

O. Production Report - CAWD/PBCSD Wastewater Reclamation Project

P. Monthly Water Supply Status Report

The meeting was adjourned to Closed Session at 10:05 PM.

X. ADJOURN TO CLOSED SESSION

A. Conference with Legal Counsel, Existing Litigation (Gov. Code § 54956.9(a))

1. Monterey Bay Shores v. MPWMD - Monterey Superior Court Case No. M53979

B. Conference with Legal (Gov. Code § 56956.9)

1. Notice of Petition Requesting Changes to SWRCB Water Rights Application No. 30067-Roy Kaufman (Cañada Woods, Cañada Woods North and Cañada Woods East)

2. Notice of Petition Requesting Changes to SWRCB Water Rights Application No. 30068-Leonard and Emily Williams Trust (Cañada Woods, Cañada Woods North and Cañada Woods East)

3. Notice of Petition Requesting Changes to SWRCB Water Rights Application Nos. 7130B and 20280-Monterey Peninsula Water Management District

The meeting was adjourned at approximately 10:20 PM.

XI ADJOURNMENT