FINAL MINUTES

Special Meeting

Board of Directors

Monterey Peninsula Water Management District

November 24, 2003

The meeting was called to order at 7:30 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 Kris Lindstrom – Division 4 David Potter – Monterey County Board of Supervisors David Pendergrass – Mayoral Representative General Manager – Fran Farina District Counsel – David C. Laredo The Assembly recited the Pledge of Allegiance. The following persons directed comments to the Board during Oral Communications. (1) John Williams, former member of the District Board, stated that the water main leak he reported six weeks ago in a letter to California-American Water Company and the District has not been repaired, although Cal-Am has investigated the site of the leak (2) John Fischer, resident of Pacific Grove, thanked Directors Erickson, Henson and Lindstrom for taking time out of their busy lives to serve on the Board of Directors. (3) Gillian Taylor, Ventana Chapter of the Sierra Club, read a statement signed by Rita Delassio, acknowledging the hard work, dedication and integrity of Directors Erickson, Henson and Lindstrom. (4) Kristi Markey, recently elected representative to Division 3, expressed appreciation to Directors Erickson, Henson and Lindstrom for all of their hard work over the past four years. The Consent Calendar was approved on a vote of 7 – 0. Director Edwards cast a no vote on item 1. Approved on a vote of 6 – 1. Director Edwards voted in opposition. General Manager Farina advised that the staff note should be corrected to state that the recommendation to adopt the proposed guidelines was made by the Administrative Committee, not by District staff. Approved. Approved. Approved. Approved. Dr. Morel-Seytoux , Professor Emeritus of Civil Engineering at Colorado State University, presented his assessment of conclusions presented in two reports: (a) Camp, Dresser & McKee and others, March 1994.  Comprehensive Hydrological Study, prepared for Rancho San Carlos Combined Development Permit Application (including 3 supplements to main report); and (b) Fugro West, Inc., July 14, 2003.  Evaluation of Groundwater Pumping Impacts on Stream Base Flow at Santa Lucia Preserve. Dr. Morel-Seytoux initially reviewed the reports at the request of John McKeon, NOAA Fisheries. A copy of Dr. Morel-Seytoux’s review is on file at the District office. No report was presented. District Counsel Laredo stated that a report was made to the Board on one case of anticipated litigation. No reportable action was taken at the meeting No comments from the Directors. No action was taken on the item. Director Potter offered a motion to grant the appeal. Director Lindstrom seconded the motion. The motion failed on a vote of 3 to 4. Directors Lindstrom, Pendergrass and Potter voted in favor of the motion. Directors Edwards, Erickson, Henson and Lehman voted against the motion. Director Henson proposed a motion to adopt the findings of denial and deny the appeal. Director Lehman seconded the motion. The motion failed on a vote of 3 to 4. Directors Erickson, Henson and Lehman voted in favor of the motion. Directors Edwards, Lindstrom, Pendergrass and Potter voted against the motion. Director Potter offered a motion that the water credit should be awarded to Mr. Hanlon, based on findings that unique and special circumstances exist. The findings would state that an undue hardship would be placed upon the applicant if he were to remove the second showerhead and retile the shower. In addition, evidence in the record shows that the applicant did take out a permit for the illegally installed spa. Also, the act of granting an appeal would not result in increased water use at the site. Director Erickson seconded the motion and offered an amendment that was accepted by Director Potter, to delete the reference to an undue financial hardship due to removal of the second showerhead. Instead, findings of special circumstances would be based on evidence provided by the City of Monterey and the District that Mr. Hanlon obtained a water permit and paid for one fixture unit to legalize a spa on his property, and that the water permit was originally issued on September 27, 2000 to add a bathroom, a utility sink and a bar sink. In addition, the act of granting an appeal would not result in increased water use at the site. The motion was adopted on a vote of 5 – 2. Directors Edwards, Erickson, Lindstrom, Potter and Pendergrass voted in favor of the motion. Directors Henson and Lehman were opposed. During the public hearing on this item, Robert Hanlon stated that he did not receive a copy of the staff report on this item until the day of the public hearing, and therefore could not prepare thoroughly for the public hearing. He asked the Board to grant the appeal because he did not receive notice that water credit would no longer be allowed for his hot tub prior to expiration of the credit. According to Mr. Hanlon, his remodel plans were thwarted by lack of notification that the District’s rules had changed Special Counsel Carl Nelson reviewed a list of corrections that should be made to the ordinance. Please refer to Attachment 1. Director Edwards offered a motion to continue this item to the next Board meeting, or for 30 days. Director Pendergrass seconded the motion. The motion failed on a vote of 2 – 5. Directors Edwards and Pendergrass voted in favor of the motion. Directors Erickson, Henson, Lehman, Lindstrom and Potter voted against the motion. Director Potter proposed a motion to adopt the Finding of Approval. Director Henson seconded the motion. The motion failed on a vote of 2 – 5. Directors Potter and Henson voted in favor of the motion. Directors Edwards, Erickson, Lehman, Lindstrom and Pendergrass were opposed. Director Lindstrom offered a motion that the ordinance be addressed for CEQA compliance as part of Monterey County’s draft EIR on the current development that is forthcoming. Director Lehman seconded the motion. The motion failed on a vote of 2 – 5. Directors Lindstrom and Lehman voted in favor of the motion. Directors Edwards, Erickson, Henson, Pendergrass and Potter were opposed. Director Henson made a motion to direct staff to prepare an environmental impact report on the proposed Ordinance No. 109. Director Lindstrom seconded the motion. Director Henson later withdrew his motion. Director Henson proposed a motion that the Board find that there has been no change in circumstances sufficient to warrant further environmental analysis of Ordinance No. 109. Director Pendergrass seconded the motion. Director Pendergrass later withdrew his second. Director Henson restated the motion to require that the Board find that the adoption of Ordinance No. 109 does not involve any new or different environmental circumstances that would trigger a need for further environmental review under Public Resources Code Section 21166. Director Erickson seconded the motion. The motion was adopted on a vote of 5 – 2. Directors Erickson, Henson, Lehman, Lindstrom and Potter voted in favor of the motion. Directors Edwards and Pendergrass voted against the motion. Director Henson offered a motion to approve the second reading of Ordinance No. 109 as presented by District Counsel that evening, including the addition of section 23.5(4)(d) on page 51 of the Board Packet which states “Excepting for fixtures in a residential remodel, all new water using fixtures that use a portion of the water entitlement shall have the water entitlement separately metered.” Director Lindstrom seconded the motion. The motion was approved unanimously on a vote of 7 – 0. The following comments were directed to the Board during the public comment period on this item. (1) Mark Stilwell, Executive Vice President for Pebble Beach Company, requested that the Board defer action on adoption of Ordinance No. 109 so that the reclamation project participants have additional time to analyze the revised ordinance and work with District staff to resolve issues that were outlined in a letter dated November 21, 2003, (on file at the District office). He disagreed with the proposed requirement for monitoring water use at sites that utilize entitlement water. He suggested that the landscaping factor for large lots should be adjusted as a means to account for high water use on lots in the Del Monte Forest. (2) Alan Williams expressed a concern that the monitoring requirements could discourage people from purchasing the entitlement water, which would impede the collection of fees to fund expansion of the wastewater reclamation facilities. He suggested that the ordinance be modified to ensure that future actions of the Board could not negate the terms of a water permit purchased for use of the entitlement water. (3) Lloyd Lowrey, representing the Independent Reclaimed Water Users Group, requested that the Board continue consideration of Ordinance No. 109 to a future meeting date. He referenced a letter dated November 20, 2003 outlining his concerns. The letter is on file at the District office. (4) Rob Wellington, representing the Pebble Beach Community Services District and the Carmel Area Wastewater District, requested that consideration of Ordinance No. 109 be continued to a future meeting date. The ordinance must be amended further before all associated agreements can be signed. His concerns were outlined in a letter dated November 14, 2003 that is on file at the District office. (5) Jim Nero, President of the Del Monte Forest Property Owners Association, requested that consideration of Ordinance No. 109 be continued for 30 days, in order to allow time to review sections of the ordinance that have been revised, such as rules that restrict the rights of property owners by requiring perpetual access to water use records. Director Potter excused himself from the meeting at 10:20 PM, prior to the hearing on Item 11. The Directors made the following recommendations. (a) The Water Demand Committee could formulate a new committee such as the Technical Advisory Committee with an expanded membership that includes representatives from neighborhood organizations, the California Native Plant Society, or groups that represent natural habitats such as the Monarch butterfly. (b) Showcase xeriscapes. (c) Educate the Technical and Policy Advisory Committee members on conservation measures, and encourage the jurisdictions to conduct water audits and implement best management practices on municipal properties. Director Lindstrom stated that it had been a pleasure to serve on the Board. During his term of office water profiteering was ended, and progress was made on planning for a water supply project. Director Erickson expressed relief that construction of a dam on the Carmel River is no longer under consideration, so the public can move ahead on development of an environmentally sound water supply project. Director Henson extended accolades to District staff. He noted that the proposed Moss Landing desalination plant would not produce more water than the Sand City desalination plant proposed by the District. He announced that an EIR on the Sand City desalination plant would be presented at the December 15, 2003 Board meeting. He hoped the Board would continue to move forward on development of a water supply project, instead of waiting for Cal-Am or another entity to do so. The meeting was adjourned at 10:35 PM.

CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Guidelines for Noticing Ad Hoc Committee Meetings 2. Consider Adoption of Resolution of Appreciation for Molly Erickson, Division 3 3. Consider Adoption of Resolution of Appreciation for Kris Lindstrom, Division 4 4. Consider Adoption of Resolution of Appreciation for Zan Henson, Division 5 5. Consider Adoption of Resolution of Appreciation for David Pendergrass PRESENTATIONS 6. Hubert Morel-Seytoux Regarding Garzas Creek GENERAL MANAGER’S REPORT REPORT FROM DISTRICT COUNSEL ON NOVEMBER 24, 2003 CLOSED SESSION DIRECTOR’S REPORT 7. Board Comments and Referrals PUBLIC HEARINGS 8. Consider Water Use Credit Recommendation for Installation of SOMAT Disposal Systems and Waterless Urinals at the Presidio of Monterey – Continued to February 26, 2004 Board Meeting at Request of Applicant 9. Consider Appeal of General Manager’s Decision to Deny a Water Use Credit for an Outdoor Spa Pursuant to MPWMD Resolution 2001-09 – Gregory Hanlon, 672 Van Buren Circle, Monterey – APN 001-511-018 10. Continuation of 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 ACTION ITEMS 11. Provide Direction to Staff on Development of Baseline Conservation Requirements DIRECTORS’ CLOSING COMMENTS ADJOURNMENT

____________________________________ Fran Farina, Secretary to the Board

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