FINAL MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District April 18, 2005

The meeting was called to order at 7 PM in the Board Room of the Monterey Regional Water Pollution Control Agency office. Directors present: Larry Foy, Chair – Division 5 (participated by telephone) 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 Directors absent: None General Manager present: David A. Berger District Counsel present: David C. Laredo The assembly recited the Pledge of Allegiance. Bruce Moncrief, representing Etwater, addressed the Board. He spoke about the evapotransportation-based controllers and water measuring devices sold by his company. On a motion by Director Pendergrass and second by Director Edwards, the Consent Calendar was approved unanimously on a vote of 7 – 0. Approved. Approved. Approved. Approved. Approved. Approved. Approved. Henrietta Stern, Project Manager, presented the update. She stated that on April 15, 2005, the State Water Resources Control Board issued a Notice of Petition for Change on two District water rights permits. The changes are to enable diversion of Carmel River water for injection into the Seaside groundwater basin. A thirty-day protest period on the petitions for change has begun. Since January 4, 2005, 350 acre-feet of Carmel River water were injected into the Seaside groundwater basin through the District’s temporary Aquifer Storage and Recovery (ASR) project. Presently the District’s SWRCB permit limits the amount of Carmel River water that can be injected to 350 acre-feet per year. Studies are being conducted to check the chemical changes that may have occurred in the Seaside aquifer as a result of the ASR project. Darby Fuerst, Senior Hydrologist, reported that between October 1, 2004 and March 15, 2005 California American Water (Cal-Am) production from the Carmel River was 420 acre-feet below the year-to-date goal, which is based on the SWRCB annual limit of 11,285 acre-feet. An outline of Mr. Fuerst’s report is on file at the District office. A summary of General Manager Berger’s report is on file at the District office. The Directors asked when the Board could discuss the governance concept alternatives and provide direction to the General Manager. Mr. Berger stated that the proposed Water Summit, still to be scheduled, would provide a good opportunity to discuss the governance issues. Vice Chair Markey requested that the May 16, 2005 Board meeting agenda include a discussion of this item. The following comments were received on this item. (1) David Dilworth, Executive Director of Helping Our Peninsula’s Environment (HOPE), urged the Board to reject any proposed management structure. According to Mr. Dilworth, the plan was devised as a means to prevent the public from having the opportunity to vote on a future water supply project. (2) John Fischer, resident of Pacific Grove, stated that the plan should clearly define what is meant by “create a community leadership working group.” He noted that community involvement must be a component of the planning process. District Counsel Laredo reported that the Board discussed the five items of litigation listed on the agenda. A status report was given to the Board. No reportable action was taken. Mr. Laredo announced that the Public Utilities Commission (PUC) would conduct public participation hearings on Cal Am’s application No. 05-02-012 for a rate increase on May 12, 2005 at 2 PM and 7 PM at the Monterey Conference Center. On May 13, 2005 public participation hearings will be conducted at Felton Community Hall at 2 PM and 7 PM. Vice Chair Markey announced that the Administrative Committee met at 4:30 PM on May 18, 2005 and recommended that agenda item 14, Consideration of Proposed Memorandum of Agreement with California-American Water Regarding Management and Operation of Aquifer Storage and Recovery Facilities, be continued to a future Board meeting date. At the request of Director Edwards, Vice Chair Markey directed that the May 16, 2005 Board meeting agenda include a discussion regarding the possibility of placing a measure on the November 18, 2005 ballot asking the voters if they would support public ownership of California American Water Coastal Division facilities. Director Edwards proposed a motion, that was seconded by Director Potter, to amend the contract with Jones & Stokes Associates for preparation of the EIR, based on the revised Scope of Work, cost estimate and schedule provided in the staff report. In addition, the Board should conduct a special meeting on August 25, 2005 at 7 PM, to receive and discuss the Draft EIR. The motion was approved unanimously on a vote of 7 – 0. The following comments were received during the public comment period on this item. (1) David Dilworth, representing HOPE, expressed dissatisfaction with the qualifications of Jones and Stokes Associates. He asked why the project would undergo minimal review through preparation of an Environmental Assessment to meet Federal NEPA requirements, yet a complete EIR is planned to meet state requirements. District Counsel Laredo responded that the Environmental Assessment was being prepared in accordance with the requirements of the federal lead agency, the U.S. Army. (2) John Fischer, resident of Pacific Grove, requested that the EIR analyze how the ASR project would operate under drought conditions. This item was continued to a future meeting of the Board of Directors. Director Potter spoke on behalf of the Ad-Hoc Legislative Subcommittee on AB1421. He reported that in a telephone conversation that occurred between Assemblyman Laird, his staff and representatives from the District, the Assemblyman agreed to work with the District’s General Manager and District Counsel on amending the legislation to address the District’s concerns. Director Potter offered a motion that District staff continue to work with Assembly member Laird’s staff and the Ad-Hoc Legislative Committee on development of amendments to AB1421. As amended versions of the legislation are available, staff should report back to the Board with a recommendation as to whether the Board should concur with or disagree with those amendments. Staff could also offer suggestions for improvements to subsequent versions of the legislation. Director Edwards seconded the motion. Director Markey offered an amendment to the motion. She moved that Director Lehman be included on the Ad-Hoc Legislative Committee. Directors Potter and Edwards accepted the amendment. The amended 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) David Dilworth stated that the bill as written would prohibit any no-growth water supply project, including the District’s proposed Sand City Desalination project. (2) Robert Greenwood, representing the Carmel Valley Association, recommended that the Board should advise Assembly member Laird of its concerns about the legislation as soon as possible. There was no discussion of the Informational Items/Staff Reports. The meeting was adjourned at 8:45 PM.

CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Adoption of Minutes of the Regular Board Meeting of March 21, 2005 and Special Board Meeting of March 31, 2005 2. Consider Authorization of Funds to Contract with Ventana Wilderness Society for Carmel River Avian Habitat Monitoring 3. Consider Approval of Resolution 2005-02 in Support of Filing Proposition 50 Planning Grant Application 4. Receive Annual Monterra Ranch Hydrologic Monitoring Report for Water Year 2004 5. Receive 2003-2004 Annual Mitigation Program Report 6. Adopt Treasurer’s Report for the Month of December 2004 7. Adopt Treasurer’s Report for the Month of January 2005 PRESENTATIONS 8. Water Supply Project Alternatives Update GENERAL MANAGER’S REPORT 9. Status Report on California-American Water Compliance with State Water Resources Control Board Order 95-10 10. Oral Report on Regional Urban Water Supply Project Governance Concept Alternatives ATTORNEY’S REPORT 11. Report on 5:30 PM Closed Session DIRECTORS’ REPORTS 12. Oral Reports on Activities of County, Cities, Other Agencies/Committees/ Associations ACTION ITEMS 13. Confirm Scope of Work and Project Descriptions for EIR on MPWMD Aquifer Storage and Recovery Project 14. Consideration of Proposed Memorandum of Agreement with California American Water Regarding Management and Operation of Aquifer Storage and Recovery Facilities 15. Receive Recommendation from Ad-Hoc Legislative Subcommittee on AB1421 INFORMATIONAL ITEMS/STAFF REPORTS 16. Letters Received 17. Committee Reports 18. Strategic Planning Initiatives Progress Report 19. Carmel River Fishery Report 20. Water Conservation Program Report 21. Monthly Allocation Report 22. Monthly California American Water Company Production Report 23. Monthly Water Supply Status Report 24. Quarterly Water Supply Project Status Report 25. Quarterly Irrigation Program and Riparian Projects Report 26. Quarterly Carmel River Erosion Protection and Restoration Projects Report 27. Quarterly Water use Credit Transfer Status Report 28. Report of Fiscal Year 2004-05 Financial Activity for the Six-Month Period Ended December 31, 2004 ADJOURNMENT

__________________________________________

David A. Berger, Secretary to the Board

U:\Arlene\word\2005\BoardMeetings\Minutes\Final041805.doc