November 17, 2003

The meeting was called to order at 7:25 PM in the District conference room.

Directors present:

Alexander Henson, Chair – Division 5

Judi Lehman, Vice Chair – Division 2

Alvin Edwards, Division 1

Molly Erickson, Division 3 (arrived at 7:28 PM)

Kris Lindstrom, Division 4

David Pendergrass, Mayoral Representative

David Potter, Monterey County Board of Supervisors

Directors absent: None

General Manager: Fran Farina

District Counsel: David C. Laredo

The Assembly recited the Pledge of Allegiance.

David Dilworth, representing Helping Our Peninsula’s Environment (HOPE), thanked Directors Henson, Erickson and Lindstrom for their efforts over the past four years. He expressed appreciation for their actions on behalf of the public trust.

On a motion by Director Potter and second by Director Erickson, the Consent Calendar was unanimously approved on a vote of 7 – 0.

Approved.

General Manager Farina introduced Henrietta Stern, Project Manager, who presented an update on initial hydrologic evaluations for the proposed Seaside Desalination Project. This study will help determine the feasibility and capacity of a seawater desalination project. The information gained will also be useful to evaluate any potential use of the aquifer.

Director Erickson requested that the Water Demand Committee or the Board of Directors discuss issues regarding the proliferation of new wells being drilled in the Pebble Beach Area, that were raised in a September 9, 2003 letter signed by Janice O’Brien. Director Erickson noted that she shared the concerns expressed in the letter.

Action taken by the Board on this issue is listed in the order that motions were presented and voted upon. Please refer to Attachment 1 for a list of all changes proposed for Draft Ordinance No. 109 and the CEQA Findings.

Director Erickson proposed a motion to frame the language of the Findings based on the Errata Sheet (page 1, items I.A and B) and direction provided by the Board, District staff and Counsel during the discussion (refer to Attachment 1). Director Lehman seconded the motion. The motion was adopted on a vote of 6 – 1. Directors Edwards, Erickson, Henson, Lehman, Lindstrom and Potter voted in favor of the motion. Director Pendergrass voted in opposition to the motion.

Director Potter offered a substitute motion to continue adoption of the Findings to a subsequent meeting. District staff and Counsel could incorporate the suggested changes into the Findings, analyze the effects of those changes and bring the revised draft back to the Board for consideration. Director Potter agreed to defer action on the motion until later that evening when the Board completed its review of the Findings and Ordinance No. 109.

Director Lehman proposed a motion to frame the language of Section 2 of Ordinance No. 109 as presented on the Errata Sheet and as suggested by the Board, District staff and Special Counsel during the discussion (see Attachment 1). The motion was seconded by Director Erickson. The motion was approved unanimously on a vote of 7 – 0.

Director Lehman offered a motion to frame the language of Section Three of Ordinance No. 109 as outlined in the Errata Sheet and as suggested by the Board, District staff and Special Counsel. Director Erickson seconded the motion (see Attachment 1). The motion was adopted unanimously on a vote of 7 – 0.

Director Lehman proposed a motion to adopt the framework for Section Four of Ordinance No. 109 based on the Errata Sheet and suggestions by the Board, District staff and Special Counsel (see Attachment 1). Director Erickson seconded the motion. It was adopted unanimously on a vote of 7 – 0.

Director Lindstrom offered a motion to adopt the framework for changes to the definitions in Ordinance No. 109, as outlined in the Errata Sheet and suggested by the Board, District staff and Counsel (see Attachment 1). The motion was seconded by Director Lehman. The motion was approved unanimously on a vote of 7 – 0.

Director Lehman proposed a motion to adopt the framework for Section Five of Ordinance No. 109 including suggestions outlined in the Errata Sheet (see Attachment 1). The motion was seconded by Director Potter and adopted unanimously on a vote of 7 – 0.

Director Lindstrom proposed a motion that was seconded by Director Potter to adopt the framework for Section Six of Ordinance No. 109 proposed by Special Counsel (see Attachment 1). The motion was approved unanimously on a vote of 7 – 0.

Director Erickson proposed a motion that was seconded by Director Potter to approve the framework language related to Section Seven of Ordinance No. 109 that was outlined in the Errata Sheet. The motion was approved on a vote of 7 – 0.

Director Erickson offered a motion that was seconded by Director Lindstrom to amend the framework language related to Section Eight of Ordinance No. 109 as suggested by the Board and Special Counsel (see Attachment 1). The motion was adopted unanimously on a vote of 7 – 0.

Director Potter offered a motion to approve the framework wording related to the CEQA Findings that was suggested by the Board and District Counsel (see Attachment 1). The motion was seconded by Director Lindstrom and adopted unanimously on a vote of 7 – 0.

Director Potter proposed a motion that was seconded by Director Erickson to continue this item to the November 24, 2003 Board meeting. The motion was adopted unanimously on a vote of 7 – 0.

The following comments were presented to the Board during the pubic hearing on this item. At the close of the public comment period, Chair Henson closed the Public Hearing on the Second Reading of Ordinance No. 109. (1) Thomas Jamison, representing Pebble Beach Company, expressed appreciation for work accomplished by Special Counsel Carl Nelson on incorporating revisions into Ordinance No. 109 following the first reading. Mr. Jamison stated that changes to Ordinance No. 109 proposed in the Errata Sheet are appropriate and necessary, and suggested that the Board adopt those changes. Mr. Jamison submitted an additional Errata Sheet for Board consideration that evening (on file at the District office). He expressed dissatisfaction with proposed rules that would require properties that access entitlement water to submit to special enforcement provisions and deed restrictions. He noted that use of the entitlement water on properties within the Del Monte Forest cannot be classified as a water transfer, and that the original water entitlement was validated in Monterey County Superior Court. (2) Lloyd Lowrey, an attorney with the firm of Noland, Hamerly, Etienne and Hoss, representing the Independent Reclaimed Water Users Group (IRWUG). Mr. Lowrey requested that Ordinance No. 109 be amended based on objections and proposed modifications outlined in his letter to the District dated November 11, 2003 (on file at the District office). (3) Robert Wellington, representing the Carmel Area Wastewater District and the Pebble Beach Community Services District, submitted a letter dated November 14, 2003 (on file at the District office). The letter proposed modifications to the ordinance. He noted that the details of the ordinance must be worked out before the associated financing agreements can be executed. (4) David Dilworth, HOPE, requested that an EIR be prepared on Ordinance No. 109. He described the sale of entitlement water as “the biggest water transfer” in the history of the Monterey Peninsula. (5) Jim Nero, President of the Del Monte Forest Property Owners Association, expressed support for the proposed expansion to the wastewater reclamation project. According to Mr. Nero, the expansion project will be completely funded by the sale of entitlement water. Pebble Beach Company will not profit from the entitlement water sales. (6) Joyce Stevens, President of the Carmel Area Wastewater District (CAWD) Board of Directors, expressed support for comments made by Robert Wellington. She explained that construction of the expansion project would result in the elimination of virtually all discharges from the CAWD facility into Monterey Bay.

No Action Items were presented for Board consideration.

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

The meeting was adjourned at 11:00 PM.

CALL TO ORDER/ROLL CALL

PLEDGE OF ALLEGIANCE

ORAL COMMUNICATIONS

CONSENT CALENDAR

1. Consider Approval of Minutes from the Regular Board Meeting of October 20, 2003 and the Special Board Meeting of October 30, 2003

2. Consider Approval of Funds for Production of 2003 MPWMD Annual Report

3. Consider Expenditure of Personnel Contingency Funds to Hire Temporary Employee for Water Demand Division

4. Consider an Amendment of the Memorandum of Understanding Between the Monterey Peninsula Water Management District and the General Staff Bargaining Unit

5. Consider Adoption of Treasurer’s Report for August and September 2003

GENERAL MANAGER’S REPORT

DIRECTORS’ REPORTS

6. Board Comments and Referrals

PUBLIC HEARINGS

7. Consider Second Reading of Ordinance No. 109 – Revising Rule 23.5 and Adopting Additional Provisions to Facilitate the Financing and Expansion of the Carmel Area Wastewater District (CAWD)/Pebble Beach Community Services District (PBCSD) Recycled Water Project, Approval of Related CEQA Findings