MPWMD BOARD MEETING--MAY 16, 2005--FINAL MINUTES

FINAL MINUTES

Regular Meeting

Board of Directors

Monterey Peninsula Water Management District

May 16, 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

Board members absent:

David Potter – Monterey County Board of Supervisors

The assembly recited the Pledge of Allegiance.

The following comments were directed to the Board during Oral Communications. (1) Neil Gardner warned the Board that it should not wait for California American Water (Cal-Am) to build a water supply project. He urged the Board to take immediate action. (2) David Dilworth chided the Board for the absence of funds in the proposed FY 2005-2006 Budget to complete the EIR on the District’s proposed Sand City desalination project. He also observed that the District should measure water use by gallons consumed, instead of utilizing the fixture-unit method.

On a motion of Director Pendergrass and second by Director Knight, the Consent Calendar was approved unanimously, except for items 2 and 3 that were pulled for separate consideration. The motion was adopted on a vote of 6 – 0. Director Potter was absent.

Approved.

On a motion by Director Edwards and second by Director Knight, staff was directed to incorporate additional information into the report and distribute it by mail throughout the District. The motion was approved unanimously on a vote of 6 – 0. Director Potter was absent.

On a motion by Director Edwards and second by Director Knight, the MOA was approved on a vote of 6 – 0. Director Potter was absent.

Approved.

An outline of Henrietta Stern’s report is on file at the District office. In response to a question from Director Lehman, Ms. Stern said that she would provide to the Board an estimate of the cost to complete an EIR on the District’s proposed Sand City desalination project.

An outline of Darby Fuerst’s report is on file at the District office. He reported that Cal Am’s year-to-date production from the Carmel river was 408 acre-feet below the target established as a result of SWRCB Order 95-10. In response to a question from the Board, General Manager Berger advised that staff would contact Cal Am to determine why water production increased to 44 acre-feet in mid-May.

During the public comment period on this item, David Dilworth, representing Helping Our Peninsula’s Environment (HOPE), requested that the chart titled Status of Cal-Am Compliance with SWRCB Order 95-10 be amended to show that Order 95-10 identifies the amount of water that can be pumped from the Carmel River as 3,900 acre-feet. According to Mr. Dilworth, any amount of water over 3,900 acre-feet that is pumped from the Carmel River is illegal production. He also expressed alarm over Mr. Fuerst’s announcement that sustainable yield from the Seaside Basin is 2,900 acre-feet per year, and not 4,000 as previously believed.

Director Edwards thanked Larry Hampson, District Engineer, and Thomas Christensen, Riparian Projects Coordinator, for preparing the application for receipt of Proposition 50 grant funds.

Director Lehman reported that on May 7, 2005, she participated in a panel discussion on global water concerns that was conducted at the Monterey Institute of International Studies. She also attended the May 12, 2005 public hearing conducted by the California Public Utilities Commission on Cal Am’s request for a rate increase in the Monterey District.

Director Edwards offered a motion to deny the variance and adopt the Findings of Fact to Support Denial. The motion was seconded by Director Knight and adopted on a unanimous vote of 6 – 0. Director Potter was absent.

The following comments were directed to the Board during the public hearing on this item. (1) Debra Gramespacher maintained that the proposed shower installation should be approved because the instant access hot water system planned for the new shower will result in a reduction in water use, which will not be achieved if the existing shower is utilized. (2) Don Clark stated that 500 gallons of water per year could be saved through the installation of a new shower with the instant access hot water system. It would also be an undue hardship for Mr. Clark’s father to travel downstairs to the existing shower. He noted that the Board does allow the addition of a second bath in a residence without regard to fixture units, and this situation is similar. (3) Walter N. Clark spoke in support of the request for a variance.

Director Edwards made a motion to adopt the Findings of Approval for Application No. 20040209SHO; file a Notice of Exemption; approve Application No. 20050209SHO and issue Permit No. M05-03 with the Conditions of Approval. The motion was seconded by Director Knight

Director Knight offered an amendment that was seconded by Director Edwards, that staff contact Cal Am to determine the number of properties outside of the Cal Am boundary served by a remote connection. This information should be provided to the Water Demand Committee for a discussion on development of criteria for dealing with future annexation requests of this type. The amended motion was approved unanimously on a vote of 6 – 0. Director Potter was absent.

The following comments were received during the public hearing on this item. (1) Derinda Messenger, representing the applicant Jonathan Showe, asked that the Board approve the request for annexation and legitimize the water connection. (2) David Dilworth, representing HOPE, suggested that the District ask Cal Am to provide a comprehensive list of properties outside of its service boundary that are served by remote Cal-Am connections. (3) Steve Leonard, General Manager of Cal Am’s Coastal Division, agreed to ask his staff if they could identify the number of remote connections served by Cal-Am. He stated that it would be difficult to locate that information.

Director Pendergrass offered a motion to approve the conceptual ordinance with the addition of language stating that the Board will be notified of the decision for applications processed under Exempt, Level 1 and Level 2 criteria. The motion was seconded by Director Knight and approved on a vote of 4 – 2. Directors Edwards, Foy, Knight and Pendergrass voted in favor of the motion. Directors Lehman and Markey were opposed. Director Potter was absent.

David Dilworth, representing HOPE, addressed the Board during the public hearing on this item. He expressed concern that ministerial decisions would be handed down on projects that had the potential to cause significant environmental impacts. According to Mr. Dilworth, the proposed regulation would establish an unacceptably low level of environmental review for new subdivisions in Carmel Valley. He also suggested that all applicants be required to report water meter readings.

Director Edwards offered a motion to convene a Special Meeting/Board Workshop on June 16, 2005 at 7 PM to plan a water summit. Director Knight seconded the motion. There was consensus among the six directors present to conduct the special meeting and to notify the parties involved with the Regional Urban Water Supply (RUWS) planning process about the June 16 meeting. Director Potter was absent.

The following comments were directed to the Board during the public comment period on this item. (1) Robert Greenwood, representing the Carmel Valley Association, urged all parties involved to move quickly on establishment of the Regional Urban Water Supply (RUWS) governing board. (2) Madeleine Clark, Director of the Elkhorn Slough Coalition, read a letter that is on file at the District office. Ms. Clark proposed formation of an elected regional water board that would encompass all of Monterey County. (3) Susan Goldbeck, a Pacific Grove councilmember speaking on her own behalf, expressed concern about establishment of a non-elected governing Board due to the potential for corruption. (4) David Dilworth, representing HOPE, stated that all RUWS governance proposals are inadequate because they are intended to deprive the electorate of the right to vote against a pro-growth water supply project. He expressed support for scheduling a Water Summit. (5) John Fischer, a resident of Pacific Grove, spoke in support of the effort to establish a governing board so that the Regional Urban Water Supply planning effort can move forward and a solution to the region’s water situation can be developed. (6) George Riley, a resident of Monterey, expressed support for the Elkhorn Slough Coalition’s proposal to form an elected regional water board that will encompass all of Monterey County. (7) Nadar Agha urged the Board to withhold support for the current RUWS governing board proposals. He stated that the Pajaro/Sunny Mesa Community Services District is qualified to build a water supply project. (8) Steven Leonard, General Manager of Cal Am’s Coastal Division, spoke in support of the effort to establish a governing body to plan a water supply project. He encouraged the Board of Directors and its other partners to take action on this effort. He noted that Cal-Am continues to move ahead on development of a water supply project and seeks public partners. (9) Curtis Weeks, General Manager of the Monterey County Water Resources Agency, expressed appreciation for General Manager Berger’s involvement in the planning process. He noted that collaboration with the public is important, and that information will be brought to the public at the appropriate time. Mr. Weeks said that he could not predict at this time whether a joint powers authority or another governance system would be the appropriate choice.

Director Edwards made a motion to continue the item to the June 20, 2005 Regular meeting of the Board when all Directors would be present. The motion was seconded by Director Lehman and approved on a vote of 5 - 1. Directors Edwards, Knight, Lehman, Markey and Pendergrass voted in favor of the motion. Director Foy was opposed. Director Potter was absent.

The following comments were received during the public comment period on this item. (1) David Dilworth, representing HOPE and Responsible Consumers of the Monterey Peninsula, expressed support for placement of a measure on the November 8, 2005 ballot regarding public acquisition of Cal Am. (2) Darby Worth spoke in support of the proposal for a vote on public acquisition of Cal-Am. (3) Ruth Smith expressed support for a ballot measure regarding public acquisition of Cal-Am. She also submitted a letter dated May 16, 2005 that is on file at the District office. (4) Robert Greenwood, representing the Carmel Valley Association, expressed support for an advisory ballot measure on public acquisition of Cal-Am. He asked if an estimate of the cost to acquire Cal Am could be developed and provided to the voters before the July 28, 2005 deadline. (5) George Riley, a resident of Monterey, submitted a petition containing 129 signatures titled “Petition for Public Ownership of the Cal Am Water Distribution System.” The petition is on file at the District office. (6) Manuel Fiero, a resident of Monterey, spoke in support of the proposal to conduct an election on public acquisition of Cal-Am. He proposed that Cal-Am be acquired through eminent domain proceedings. (7) Susan Goldbeck stated that the public would benefit from the acquisition of Cal Am. (8) John Fischer, a resident of Pacific Grove, said that the cost to acquire Cal Am must be determined before he could decide if public ownership of the water company would be an advantage to the community. (9) Nadar Agha recommended that an advisory vote be conducted on public ownership of Cal Am. He organized a group of persons that, within two days, collected 375 signatures in support of acquiring Cal Am through public domain proceedings. (10) Steven Leonard, General Manager of Cal Am’s Coastal Division, urged the Board to refrain from conducting an election on public ownership of Cal-Am. He asked the Board to focus on its responsibility to develop a water supply, and to continue to work with Cal Am on that goal. (11) Neil Gardner expressed support for the proposal to conduct an election on public ownership of Cal Am.

On a motion by Director Lehman and second by Director Knight, the item was continued to the June 16, 2005 Special Meeting/Board Workshop. The motion was approved unanimously on a vote of 6 – 0. Director Potter was absent.

There was no discussion of these items.

The meeting was adjourned at approximately 9:30 PM in memory of former Board Chair Nick Lombardo.

The Closed Session was adjourned at approximately 10 AM.

CALL TO ORDER/ROLL CALL

PLEDGE OF ALLEGIANCE

ORAL COMMUNICATIONS

CONSENT CALENDAR

1. Consider Adoption of Minutes of the Regular Board Meeting of April 18, 2005

2. Review and Approve Revised Draft MPWMD 2004 Annual Report

3. Consider Approval of Annual Memorandum of Agreement for Releases and Diversions from San Clemente Reservoir between California American Water, California Department of Fish and Game and MPWMD

4. Approve Amendment to PM Connect Contract to Expand Scope of Work for Water Demand Division Database Project Outline to Include Modules for the Use of Recycled Water Entitlements, Time Tracking and Water Credit Transfer Process

5. Receive Water Supply Forecast for Period of May 1, 2005 through September 30, 2006

6. Adopt Treasurer’s Report for February 2005

PRESENTATIONS

7. Water Supply Project Alternatives Update

GENERAL MANAGER’S REPORT

8. Status Report on California-American Water Compliance with State Water Resources Control Board Order 95-10

DIRECTORS’ REPORTS

9. Oral Reports on Activities of County, Cities, Other Agencies/Committees/ Associations

PUBLIC HEARINGS

10. Consider Request for Variance from District Rule 24 – Water Permit Process – 8 Mescal Place, Seaside, CA – APN 012-673-018

11. Consider Approval of Application to Amend California American Water Distribution System to Annex Showe Parcel – APN 197-081-025, California American Water and Lombardo & Gilles, Co-Applicants

12. Consider Approval of Conceptual Ordinance No. 122 to Amend MPWMD Rules and Regulations to Create an Impact-Based System for Water Distribution System Permits

ACTION ITEMS

13. Discussion and Direction on Regional Urban Water Supply Project Governance Alternatives and District’s Proposed District “Water Summit” Meeting

14. Consider Request for Placement of Advisory Measure on the November 8, 2005 Election Regarding Public Acquisition of the California American Water Distribution System, Coastal Division, Monterey District

15. Discuss Proposed Agreement with California American Water Regarding Management and Operation of Seaside Basin Aquifer Storage and Recovery Facilities