FINAL MINUTES

Regular Meeting

Board of Directors

Monterey Peninsula Water Management District

July 15, 2002

The meeting was called to order at 7:00 PM in the Seaside City Council Chambers. Directors present: Kris Lindstrom, Chair – Division 4 Alexander “Zan” Henson, Vice Chair – Division 5 Alvin Edwards – Division 1 Judi Lehman – Division 2 Molly Erickson – Division 3 David Pendergrass – Mayoral Representative Directors absent: David Potter – Monterey County Board of Supervisors District staff present: Ernesto A. Avila – General Manager Rick Dickhaut – Chief Financial Officer Stephanie Pintar – Water Demand Manager Joseph Oliver – Water Resources Manager Andy Bell – Planning and Engineering Manager Henrietta Stern – Project Manager Larry Hampson – District Engineer Cynthia Schmidlin – Human Resources Specialist Mark Bekker – River Maintenance Specialist Thomas Christensen – Riparian Projects Coordinator Jessica Wheeler – Field Biology Assistant Arlene Tavani – Executive Assistant District Counsel present: David C. Laredo The assembly recited the Pledge of Allegiance. The following comments were directed to the Board during the Oral Communications period. (1) Edwin Lee, representing Water for Us, urged the Board to include a full project-level study of the dam proposal in the Water Supply Project EIR so that an “apples to apples” comparison is available for public review. (2) David Dilworth, representing Helping Our Peninsula’s Environment (HOPE), requested that the District: (A) revisit the Water Allocation Plan; (B) develop and provide to the public a list of the 100 or 200 water users in the District that have the highest recorded water consumption; and (C) make Board packet staff notes available on the District’s web site as HTML files. (3) John Fischer, resident of Pacific Grove, asked if the Water Supply Project EIR will include an analysis of the Plan B recommended project, or will another EIR need to be prepared for that project. (4) Fran Farina requested that agenda items entitled Monthly Water Supply Status Report and Monthly Cal-Am Production Report be updated by segregating information into two categories, Carmel Valley and Seaside, to clarify how water production levels comply with State Water Resources Control Board Order 95-10. (5) Roy Thomas, Carmel River Steelhead Association (CRSA), expressed concern over the health of rescued steelhead, considering that the Sleepy Hollow Steelhead Rearing Facility was not yet operational. He proposed that the District purchase off-peak water from the State Water Project. That water could then be stored on Fort Ord and distributed to local water users when necessary. (6) Lou Haddad, resident of Monterey, observed that the American Flag was incorrectly displayed at the dais. He advised that it be moved to the extreme right of the podium. Director Pendergrass offered a motion that was seconded by Director Edwards to adopt the Consent Calendar, except for item No. 1 and item No. 3 that were pulled for separate consideration. The motion was approved on a vote of 5 – 1. Directors Edwards, Erickson, Henson, Lehman and Pendergrass voted in favor of the motion. Director Lindstrom voted in opposition to the motion. Director Potter was absent. Director Lindstrom offered a motion that was seconded by Director Henson to approve the minutes of the June 17, 2002 Board meeting. The motion was approved on a vote of 6 – 0. Director Potter was absent. Approved. On a motion by Director Erickson and second by Director Edwards, the resolution was approved with the following change: in paragraph 2 of the resolution, after the words “no charge” add the words “until June 2002.” In addition, in paragraph 4 of the resolution, delete the words “the development of local water policy and the establishment of a secure water supply” and add the words “assisting the District’s public meeting goals.” The motion was approved on a vote of 6 – 0. Director Potter was absent. The Chair directed that the signed resolution should be presented to the City of Monterey at a future City Council meeting. Approved. Approved. Approved. Approved. Approved. Approved. Approved. Approved. Approved. Approved. Approved. Approved. General Manager Avila gave a brief presentation. He estimated that preparation of an exhibit should cost about $250, and approximately 32 hours of staff time will be spent on participation in the event. The Directors agreed that the District should participate in the Oceans Fair. Notice of the Oceans Fair will be posted on the District’s web site. General Manager Avila referred to a letter from the California-American Water Company (Cal-Am) dated July 3, 2002 that reported a discrepancy between SCADA data from the Paralta and Ord Grove Wells and the actual production from those wells. He reported that District staff is working with the California-American Water Company on ways to rectify the situation. Mr. Charles Kemp, Operations Manager for Cal-Am, stated that the company hired a new SCADA Manager and is installing a new SCADA system that should ensure better accuracy of future data. More information will be presented at the August Board meeting. Other matters discussed during the General Manager’s Report are summarized under item No. 18, Comments and Referrals. District Counsel Laredo reported that all items listed on the Closed Session agenda for June 17, 2002 were discussed at the meeting. A status report was given, and a general discussion ensued with the General Manager and District Counsel. No specific action was taken. Director Erickson asked if District staff had determined why the District and the City of Monterey have developed different estimates of the MPWMDs cumulative expenditures. General Manager Avila explained that there could be a discrepancy in how revenues or Certificates of Participation for the CAWD/PBCSD Wastewater Reclamation Project were accounted for. He promised to report back to the Board within a week on that issue. Director Lindstrom requested that item No. 37 – Production Report – CAWD/PBCSD Wastewater Reclamation Project be updated to reflect production that occurred after January 2002. Director Henson proposed that the MPWMD Water Supply Project EIR be modified to emphasize, as a project, the construction of a local desalination plant that meets the needs of and can be controlled by residents on the Monterey Peninsula. He did not support construction of a regional desalination plant. Instead, he proposed construction of a desalination plant that will meet the requirements of Order 95-10 and could be expanded incrementally upon the vote of local rate payers. In response to a suggestion by Director Erickson, Chair Lindstrom agreed to refer the issue of completion of an Allocation Program EIR update to either the Water Demand or Environmental Review committee. Director Lindstrom explained that he voted in opposition to adoption of the Consent Calendar for the reasons expressed by Roy Thomas during Oral Communications. He stated that the District should take a more pro-active approach in working with the Sleepy Hollow Fish Rearing Facility, or transfer the responsibility for fishery programs to another entity. Director Edwards offered a motion to continue the item to the August 19, 2002 Board meeting. In addition, that staff conduct another inspection of the site and bring back to the Board on August 19, 2002 additional evidence of the existence or non-existence of a laundry sink or tray. There was no second to the motion. Director Henson offered a motion that was seconded by Director Lehman to deny the appeal. The motion was adopted on a vote of 5 – 1. Directors Erickson, Henson, Lindstrom, Lehman and Pendergrass voted in favor of the motion. Director Edwards voted in opposition to the motion. During the public hearing on this item, the following comments were directed to the Board. (1) John Schink, the applicant/appellant, recounted the events that led to his filing an application for appeal. Following the District’s inspection of his property, a laundry sink was discovered in the structure. Mr. Schink contacted the District to schedule another inspection, and was advised by staff to document the fixture with photographs. He offered to hire a professional photographer to document the existence of a sink, but staff assured him that was not necessary. Mr. Schink submitted the photographs to the District and within a few weeks was informed that his request to receive water credits for the laundry sink was denied. He asserted that although he complied with District staff’s requests for documentation, he was treated unfairly. According to District rules, staff must determine the existence of water fixtures. Mr. Schink stated that staff never conducted an inspection to determine the existence of the laundry sink, but relied on photographs. According to Mr. Schink, his contractor removed the laundry sink but the photographs clearly showed where the drain went through the floor. Mr. Schink requested that District staff inspect the property again, or acknowledge that he deserves the water credit. He presented additional photographs of the area where he contends the laundry sink was located. Director Henson offered a motion that was seconded by Director Lehman to approve Ordinance No. 104 with the addition of the following language, “Appeal fees should be waived when the issues raised in said appeal concern issues of public interest or environmental protection.” In addition, the ordinance would specify “This ordinance will sunset in six months.” Director Henson offered an amendment to the motion that was seconded by Director Lehman to include language in Rule 70, line 4 stating that the General Manager has discretion to determine whether or not the fee should be waived based on the criteria established in the original motion. In addition, Section 7.B shall state, "This ordinance shall not have a sunset date but shall be brought back to the Board of Directors for review in February 2003 and August 2003." The motion was approved on a vote of 4 – 2. Directors Erickson, Henson, Lehman and Lindstrom voted in favor of the motion. Directors Pendergrass and Edwards voted against the motion. Director Potter was absent. The Board discussed how to define “public interest.” There was general consensus that an applicant with no financial interest in the appeal could be considered as representing the pubic interest. During the public hearing on this item David Dilworth, representing HOPE, addressed the Board. He submitted a letter dated May 20, 2002 regarding the issue that is on file at the District office. He disagreed with the proposal that would grant a waiver of appeal fees only after the appeal was heard, if there is a significant benefit and only if the appeal were granted. He expressed concern that Directors would be pressured by potential applicants to bring forth appeals on their behalf. Mr. Dilworth proposed that for a test period of six months, an appeal fee waiver be established for groups that represent the public interest. He proposed specific language, “Appeal fees should be waived when the appeal raises a public interest or an environmental issue.” Director Erickson offered a motion that was seconded by Director Edwards to continue the Carmel River Advisory Committee, and that the committee would meet as needed only by: (1) direct referral of the Board or Administrative Committee; or (2) to address important issues identified by staff. Direct dialogue between Carmel River Advisory Committee representatives and the Board or relevant Board Committees will be encouraged. When the Carmel River Advisory Committee meets, District staff will provide updates on Carmel River issues. The motion was unanimously approved on a vote of 6 – 0. Director Potter was absent. On a motion by Director Henson and second by Director Erickson, the Board approved appointments to the Carmel River Advisory Committee listed here: Director Pendergrass – Thomas House; Director Erickson – Richard Rosenthal; Director Henson – Rod Mills; Director Lehman – John Delassio; Kris Lindstrom – David Dilworth. The motion was approved on a vote of 6 – 0. Director Potter was absent. During the public hearing on this item the following comments were directed to the Board. (1) John Fischer, resident of Pacific Grove, asked if the District’s interest in protecting riparian habitat included a concern for water quality when it reached the Monterey Bay Sanctuary. (2) Robert Greenwood, representing the Carmel Valley Association, read a letter dated July 15, 2002 that is on file at the District office. He expressed support for continuance of the Carmel River Advisory Committee and implementation of the Committee’s recommendation shown on page 114 of the Board packet. (3) Fran Farina proposed that the Carmel River Advisory Committee continue to function in its present form and that it be utilized more effectively by the Board of Directors. She stated that membership on the committee should be open to anyone in the District with an interest in the Carmel River. (4) Michael Waxer, resident of Carmel Valley and Chair of the Carmel River Advisory Committee, explained that one of the main functions of the committee is community education and outreach. Committee members describe the District’s functions and riverbank enhancement projects to their neighbors. The committee has sponsored public forums on the Endangered Species Act and other topics. In addition, the committee has worked with riverfront property owners to resolve violations of riverbank protection regulations. (5) David Dilworth spoke in support of the Carmel River Advisory Committee. He agreed with a suggestion by Director Erickson that the Committee’s activities be limited to the review of items brought to it by the Board of Directors or a committee of the Board. (6) Roy Thomas, representing the CRSA, and a former member of the Carmel River Advisory Committee stated that the Committee could be eliminated. According to Mr. Thomas, the Carmel River Watershed Council might be able to provide valuable input to the Board of Directors once it becomes a fully functioning entity. On a motion by Director Edwards and second by Director Erickson, the Board authorized District staff to contract with the Watershed Institute of California State University at Monterey Bay to study large wood in the main stem of the Carmel River for a cost not-to-exceed $10,000. The motion was approved on a vote of 6 – 0. Director Potter was absent. During the public comment period on this item, the following comments were directed to the Board. (1) David Dilworth expressed appreciation for the presentation made by District staff on the issue. He proposed that District staff make a presentation at each Board meeting on a different facet of the Carmel River watershed. (2) Roy Thomas, representing the CRSA, urged the Board to proceed carefully with this project. He expressed concern that the intent of the study could be to inventory debris for eventual removal from the river. He cautioned that the District’s function is to preserve the environment, not to stabilize the riverbank. Director Erickson proposed a motion that was seconded by Director Henson to: (1) approve preparation of a conceptual ordinance that would incorporate the changes outlined in the staff report; (2) move ahead with the goal of presenting the ordinance for first reading on August 19, 2002; (3) make an effort to circulate the Negative Declaration prior to the August 19, 2002 meeting; and (4) Seaside Basin issues would be incorporated into a subsequent ordinance. The motion was approved on a vote of 6 – 0. Director Potter was absent. The following comments were directed to the Board during the public comment period on this item. (1) David Dilworth representing HOPE, suggested that: (A) the portion of the Carmel River Watershed that lies within the District boundaries be included in this ordinance; (B) that the Laguna Seca area be included in the ordinance; and (C) increase the scope of the ordinance beyond the proposed requirement of the riparian area plus 1,000 feet. (2) Robert Greenwood, representing the Carmel Valley Association, expressed support for the ordinance. He suggested that the list of amendments to the ordinance shown on page 133 of the staff report should be incorporated into Ordinance No. 96. However, those items on the list related to the Seaside Basin should be omitted. (3) Roy Thomas, representing the CRSA, stated that the scope of the ordinance is too narrowly defined. He asked why the ordinance did not apply to the entire District. Mr. Thomas stated that property owners should be allowed to drill wells on non-buildable lots in order to irrigate fruit trees. He noted that people should have full use of their land, but that the District should ensure the wise use of water resources. (4) John Fischer, a resident of Pacific Grove, congratulated District staff for acknowledging that there are weaknesses in the ordinance and proposing improvements. (5) Fran Farina, representing Save Our Carmel Valley, expressed support for the ordinance. She proposed the following changes to the ordinance: (A) page 135 of the staff note, definition of single-parcel connection system, line four, the phrase “multiple-connection system” should be changed to “multiple-parcel connection system;” (B) page 137, Section C, last line of the first paragraph, delete the reference to Seaside Coastal Subareas of the Seaside Groundwater Basin; and (C) page 141, section C, sentence two is misleading and should be clarified. Ms. Farina expressed other concerns related to Exhibit 23.B of the staff report. Director Lindstrom offered a motion that was seconded by Director Erickson to execute an agreement with the Rural Special District’s Insurance Fund for worker’s compensation insurance coverage, effective July 1, 2002. The motion was approved on a vote of 6 – 0. Director Potter was absent. During the public comment period on this item, Charles Kemp of Cal-Am addressed the Board. He recommended the services of the Joint Powers Insurance Agency for workers compensation insurance coverage. There was no discussion of these items. The meeting was adjourned to Closed Session at approximately 10:35 PM. ADJOURNMENT U:\Arlene\word\2002\boardmeetings\minutes\minutes\FINAL0715.DOC

CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Approval of Minutes from the Regular Board Meeting of June 17, 2002 2. Receive Water Supply Forecast for Period of May 1, 2002 through September 30, 2003 3. Consider Adoption of Resolution Expressing Appreciation to the City of Monterey 4. Authorize Exercise of Option to Extend Use Agreement with Mission Memorial Park for Pilot Injection Well 5. Consider Authorization of Funds for Replacement Fish Transport Truck for Fish Rescues CONSENT CALENDAR 6. Consider Authorization of Mitigation Funds to Purchase Bird Netting for the Rearing Channel at the Sleepy Hollow Steelhead Rearing Facility 7. Consider Authorization of Mitigation Funds to Contract for Two Seasonal Fish Rescue Workers 8. Consider Authorization of Mitigation Funds to Contract for One Water Resources Field Assistant Position 9. Consider Authorization of Mitigation Funds to Contract for Two Field Biology Assistant Positions 10. Consider Authorization of Funds for Sleepy Hollow Steelhead Rearing Facility Stand-by Generator Maintenance Agreement with Quinn Engine Systems for Fiscal Year 2002-2003 11. Consider Authorization of Mitigation Funds to Purchase a New Back Pack Electrofisher 12. Consider Authorization of Funds to Rent Irrigation Equipment for San Carlos Irrigation System 13. Consider Authorization of Repairs to the Schulte Irrigation Well 14. Consider Authorization of Contract Amendment with RAMLIT Associates for Computer Services in Fiscal Year 2002-2003 15. Consider Adoption of Treasurer’s Report for June 2002 GENERAL MANAGER’S REPORT 16. A. Concur with Participation on Monterey Bay National Marine Sanctuary’s 10^th Anniversary Oceans Fair, September 21, 2002 B. California-American Water Company Water Production Data Discrepancy ATTORNEY’S REPORT 17. Report on Action Taken at June 17, 2002 Closed Session of the Board DIRECTORS’ REPORTS 18. Board Comments and Referrals PUBLIC HEARINGS 19. Consider Appeal of Decision of the General Manager of the Monterey Peninsula Water Management District Regarding Denial of Water Use Credits for the South West Corner of 12^th and Carmelo, Carmel – Applicant/Appellant Jon Schink 20. Consider Second Reading and Adoption of Ordinance No. 104 – An Ordinance of the Monterey Peninsula Water Management District Modifying Administrative Appeal Processes ACTION ITEMS 21. Consider Current and Future Role of the Carmel River Advisory Committee 22. Consider Authorization of Contract with California State University Monterey Bay for Carmel River Large Woody Debris Assessment ACTION ITEMS 23. Concur with Approach Regarding Proposed Changes to Monterey Peninsula Water Management District Rules and Regulations Associated with Ordinance No. 96 24. Consider Authorization to Change Worker’s Compensation Carrier INFORMATIONAL ITEMS/STAFF REPORTS 24. Letters Received 25. Committee Reports 26. Strategic Planning Initiatives Progress Report 27. Quarterly Report on Water Supply Projects 28. Carmel River Fishery Report 29. Quarterly Irrigation Program and Riparian Projects Report 30. Quarterly Carmel River Erosion Protection and Restoration Program Report 31. Water Conservation Program Report 32. Water Use Credit Transfer Status Report 33. Monthly Allocation Report 34. Monthly Cal-Am Sales Report 35. Monthly Cal-Am Production Report 36. Production Report – CAWD/PBCSD Wastewater Reclamation Project 37. Semi-Annual Financial Report – CAWD/PBCSD Wastewater Reclamation Project 38. Quarterly Public Information Program Report 39. Monthly Water Supply Status Report ADJOURN TO CLOSED SESSION 40. Conference with Labor Negotiators (Gov. Code Section 54957) A. Agency Designated Representatives: Ernesto A. Avila, Rick Dickhaut, Cynthia Schmidlin Employee Organization: Laborers’ International Union of North America, AFL-CIO, (LIUNA/UPEC) Local 270 B. Agency Designated Representative: Ernesto A. Avila Unrepresented Employees: Confidential Staff Unit 41. Public Employee Performance Evaluation (Gov. Code Section 54957) A. General Manager 42. Conference with Legal Counsel (Gov. Code Section 54956.9) A. California-American Water Company Application No. 02-04-022 to the Public Utilities Commission for Authority to Increase Rates for Service for 2003, 2004 and 2005 43. Conference with Legal Counsel – Existing Litigation (Gov. Code Section 54956.9) A. Cities of Seaside, Carmel, Del Rey Oaks, Monterey, Pacific Grove and Sand City v. MPWMD Case No. M59441 B. Mary Currier, Chris Currier and Roy and Jeanelle Kaminske v MPWMD, Case No. M59299, Monterey County Superior Court The meeting was adjourned at approximately 11:30 PM. Ernesto A. Avila, Secretary to the Board