FINAL MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District October 17, 2005

The meeting was called to order at 7 PM in the Boardroom of the Monterey Regional Water Pollution Control Agency. Board members present: Larry Foy, Chair – Division 5 Kristi Markey, Vice Chair – Division 3 Alvin Edwards – Division 1 Judi Lehman – Division 2 Michelle Knight – Division 4 David Pendergrass – Mayoral Representative David Potter – Monterey County Board of Supervisors General Manager present: David A. Berger District Counsel present: David C. Laredo The assembly recited the Pledge of Allegiance. The following comments were received during Oral Communications. (1) Roy Thomas, President of the Carmel River Steelhead Association, urged the Board to work with the Carmel Area Wastewater District on a proposal to improve water levels at the Carmel River Lagoon by distributing treated wastewater into the Lagoon. (2) Paul Bruno, a resident of Monterey, stated that the Monterey Peninsula Taxpayers Association (MPTA) submitted a letter to District Counsel asking for clarification of Measure W that proposes implement of a surcharge on the California American Water Company (Cal-Am) bill to fund a study on the cost for public acquisition of Cal-Am. According to Mr. Bruno, the District did not respond to the request for information and the MPTA has filed a lawsuit against the District. He urged the Board to acknowledge that the proposed surcharge is a tax that requires approval by two-thirds of the electorate. (3) Roy Kaminski, a resident of Carmel Valley for 50 years, stated that according to his calculations there is no shortage of water in the Carmel River Aquifer. According to Mr. Kaminski, in the beginning of 2004 there were 27,094 acre-feet of water in the aquifer and by September of 2004, 26,394 acre-feet of water remained in the aquifer. Mr. Kaminski maintained that only 400 acre-feet of water were withdrawn from the aquifer in 2004. On a motion by Director Pendergrass and second by Director Potter, the Consent Calendar was approved unanimously, except for Item 3 that was pulled for separate consideration. Approved. Approved. On a motion by Director Edwards and second of Director Knight, the report on Fourth Quarter Financial Activity for Fiscal Year 2004-05 was received unanimously. Approved. Chair Foy and General Manager Berger acknowledged several District staff members present that evening for their service to the District. Five years of service: Cynthia Schmidlin. Ten years of service: Darby Fuerst, Andy Bell, Stephanie Pintar. Twenty years of service: Tom Lindberg, Joe Oliver, Henrietta Stern and Arlene Tavani. Mr. Berger reported that these and other service awards would be presented at the next District staff meeting. A summary of Henrietta Stern’s presentation is on file at the District office. In response to questions from the Board, Joe Oliver, Water Resources Manager, stated that no protests have been received on the District’s application to the State Water Resources Control Board for a temporary permit to conduct the 2006 Aquifer Storage and Recovery Test Project. He explained that the District began injecting water from the Carmel River into the Seaside Basin in 1998. Since then, approximately 1,450 acre-feet have been injected. Mr. Oliver reported that the October 2005 meeting of the Seaside Groundwater Management Plan Committee had been cancelled, but it would be rescheduled. Board Chair Foy announced that Action Item 12 had been continued to the November 21, 2005 Board meeting. Laborer’s International Union of North American Local 270 agreed to the continuance. A summary of Darby Fuerst’s presentation is on file at the District office. He reported that between October 1, 2004 and September 30, 2005 Cal-Am produced 10,679 acre-feet of water from the Carmel River, which was 606 acre-feet below the production limit established by SWRCB Order 95-10. In the same time period, production from the Seaside Groundwater Basin was 995 acre-feet below the target production of 4,000 acre-feet. General Manager Berger reviewed the outline with the Board of Directors. Director Knight requested that an additional bullet be added to the presentation that summarizes the amount of conservation savings achieved by water users in the District since SWRCB Order 95-10 was adopted. District Counsel Laredo reported that the Board reviewed the status of six pending matters of litigation listed on the meeting agenda, but no action was taken. Regarding the Conference with Labor Negotiators, item 4, District staff provided options to the bargaining team. The Board directed that the item be continued until November 21 so that negotiations could proceed in the labor dispute. Mr. Laredo reported that the General Manager’s performance evaluation will either be conducted after the Board meeting that evening, or continued to a future meeting date. In response to a question from the Board, District Counsel Laredo reported that he did receive a fax from Timothy Morgan posing questions about Measure W. Mr. Laredo called Mr. Morgan’s office but was unable to reach him. A lawsuit was filed against the District by the MPTA before he could speak with Mr. Morgan. Mr. Laredo noted that he will not respond to the letter from Mr. Morgan since Measure W is now a litigated issue. He stated that a majority vote is sufficient for enactment of the user fee increase proposed by Measure W. Directors Foy and Potter announced that they attended a tour of Orange County recycled water projects in October. The tour was sponsored by the Monterey Regional Water Pollution Control Agency. They were impressed by the breadth of possibilities for recycled water. Director Lehman asked District staff to research the availability of a device that would store the water that remains when a water softener is flushed. She asked District staff to be on the lookout for an attractive container that could be placed underneath downspouts to collect rainwater for outdoor irrigation use. Ms. Lehman also advised the Board that she heard there was a telephone survey being conducted on Measure W, and that the callers were advising the public that the District funded the survey. She asked District staff could find out who was conducting the survey. General Manager Berger stated that the District had not funded a telephone survey and that he would investigate the situation. Director Knight proposed a motion to approve the staff recommendation and find that special circumstances exist for the proposed self-storage facility and that the appropriate water use factor is 0.0008 AFA/storage unit. In addition, water use at the site will be reported by the property owner and monitored for a period of ten years. Director Edwards seconded the motion and it was approved on a vote of 6 – 1. Directors Edwards, Foy, Knight, Lehman, Markey and Pendergrass voted in favor of the motion. Director Potter was opposed. The following comments were received during the public hearing on this item. (1) Anthony Lombardo, representing the applicant, stated that his client agreed with the staff recommendation. However, he believes actual on-site water use will be less than estimated by District staff. Mr. Lombardo advised the Board that there would be no washing of cars or boats at the facility. Outside storage will not be allowed at the facility. Mr. Lombardo gave his consent to the proposal that water use on the site be monitored for a period of ten years. (2) Roy Kaminski stated that over a 22-year period water use at a commercial property he owns has been lower than was projected by District staff when the project was permitted. Mr. Kaminski stated that water use on the applicant’s project will likely be lower than projected by District staff. (3) Paul Bruno recommended that the Board approve the staff recommendation and find that special circumstances exist. He noted that water use on a commercial project he built is less than was anticipated. (4) Robert Greenwood, representing the Carmel Valley Association, requested that the project be constructed in phases. The District could monitor the water use for Phase 1. If the water use is equal to 0.0008 per unit, the second phase could be constructed. Continued to the November 21, 2005 Board meeting. Motion #1 -- Director Foy proposed a motion that was seconded by Director Markey to adopt the 2005-2006 MPWMD Strategic Plan with the following changes: (1) amend the title of item WS6 to read “Create Board Water Supply Committee and Charge,” and (2) amend the title of item WD2 to read “Improve Communication with…” The motions was approved on a vote of 6 – 1. Directors Edwards, Foy, Knight, Lehman, Markey and Potter voted in favor of the motion. Director Pendergrass was opposed. The vote on Motion #1 was taken after consideration of Motion #2. Motion #2 -- Director Pendergrass proposed an amended motion to approve the strategic plan but delete item WR2, Assess Updating MPWMD Water Allocation Program EIR. Director Knight seconded the motion. The motion failed on a vote of 3 – 4. Directors Pendergrass, Foy and Knight voted in favor of the motion. Directors Edwards, Lehman, Markey and Potter were opposed. During the public comment period on this item John Fischer, a resident of Pacific Grove, requested that a community advisory group or public advisory group be formed to work with the Regional Urban Water Supply (RUWS) planning group. He opined that public input would improve the planning process. General Manager Berger’s presentation to the Board is on file at the District office. Curtis Weeks, General Manager of the Monterey County Water Resources Agency (MCWRA), also addressed the Board. The MCWRA, under Mr. Week’s direction, is leading the RUWS planning effort. His comments are shown below. The Board took no action on this item. However Chair Foy announced that judging from the Directors comments during the discussion, there was consensus on the Board that General Manager Berger should continue his participation in the RUWS board planning process. The following comments were received during the public comment period on this item. (1) Curtis Weeks, General Manager of the Monterey County Water Resources Agency, stated that a draft agreement is being developed regarding formation of the water supply strategic planning entity (RUWS board); however, the draft agreement cannot be brought forward for approval until he has discussed it with all the cities and received their commitment to participate. The agencies must commit to a plan for funding the RUWS board planning efforts. He hopes to receive input from the cities and bring a draft agreement forward to the Board of Supervisors by November 2005. According to Mr. Weeks, the RUWS board will be charged to work together on project planning for a three-year period. He expects that voting by that board would be by the proportional method. However, it will be up to the managers working group to make that decision. He noted that some of the proposed members of the RUWS board such as representatives of Monterey Regional Water Pollution Control Agency, do also represent jurisdictions. According to Mr. Weeks, those representatives have different interests to consider in both roles, so there would be no danger of double representation on the RUWS board. He envisions the establishment of a public advisory group by December 2005. Mr. Weeks stated that his intent in formation of the RUWS board is not to dissolve the Water Management District or any other agency, but to bring agencies together as a joint powers authority to solve the water supply issues. He noted that the RUWS board structure currently under consideration could change. (2) John Fischer, a resident of Pacific Grove, proposed that a group of independent experts be formed that has no connection with the community. The group could provide a recommendation to the RUWS board on the preferred water supply solution. He stated that public input must be incorporated into the RUWS project planning process. (3) Robert Greenwood commented that the number of persons to sit on the RUWS board is an important consideration. He noted that as the size of the board increases, the time required to make decisions is protracted. (4) Roy Kaminski stated that there is no need for a new water supply project. He surmised that as long as 38 acre-feet of water are held in the Carmel River between Rosie’s Bridge and Highway 1, that will provide a continuous supply of 14,000 acre-feet of water for the Cal Am system. There was no discussion of these items. The meeting was adjourned at 9:45 PM.

CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Adoption of Minutes of the September 8, 2005 Strategic Planning Workshop and September 19, 2005 Regular Board Meeting 2. Consider Adoption of Resolution No. 2005-09 Electing to Participate in the California Public Employees’ Retirement System Pre-Tax Deduction Plan for Service Credit Purchases 3. Receive and File Report on Fourth Quarter Financial Activity for Fiscal Year 2004-05 4. Adopt Treasurer’s Report for the Month of June 2005 PRESENTATIONS 5. Present Service Awards to MPWMD Staff 6. Water Supply Project Alternatives Update GENERAL MANAGER’S REPORT 7. Status Report on California-American Water Compliance with State Water Resources Control Board Order 95-10 8. Outline of MPWMD Presentation for State Water Resources Control Board Workshop on Carmel, Pajaro and Salinas Rivers Water Rights and Water Supply Status, October 26, 2005, 10:00 AM, Salinas Community Center ATTORNEY’S REPORT 9. Report on 5:30 PM Closed Session of the Board DIRECTORS’ REPORTS 10. Oral Reports on Activities of County, Cities, Other Agencies/Committees/ Associations PUBLIC HEARINGS 11. Consider Appeal of District Staff’s Decision that Rule 24-G, Special Circumstances, Do Not Apply to Storage Pro Self Storage Facility (Mirabito), APNs: 169-131-002 & 003 ACTION ITEMS 12. Consider Hearing Officer’s Findings and Recommendations on Grievance Appeal of Laborer’s International Union of North America Local 270 13. Review and Consider Adoption of 2005-2006 MPWMD Strategic Plan A. Adopt 2005-2006 MPWMD Strategic Plan B. Review and Consider Approval of Timeline for Conducting Board Workshops 14. Update on Status of Discussion re Regional Urban Water Supply Governance Proposal INFORMATIONAL ITEMS/STAFF REPORTS 15. Letters Received 16. Committee Reports 17. Carmel River Fishery Report 18. Water Conservation Program Report 19. Monthly Allocation Report 20. Monthly California American Water Company Production Report 21. Monthly Water Supply Status Report 22. Quarterly Water Supply Project Status Report 23. Quarterly Irrigation Program and Riparian Projects Report 24. Quarterly Carmel River Erosion Protection and Restoration Projects Report 25. Quarterly Water Use Credit Transfer Status Report ADJOURNMENT

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David A. Berger, Secretary to the Board

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