MPWMD BOARD MEETING--MAY 15, 2006--FINAL MINUTES

FINAL MINUTES

Regular Meeting

Board of Directors

Monterey Peninsula Water Management District

May 15, 2006

The meeting was called to order at 7 PM in the Boardroom of the Monterey Regional Water Pollution Control Agency offices.

Board members present:

Michelle Knight, Chair – Division 4

Judi Lehman, Vice Chair – Division 2

Alvin Edwards – Division 1

Kristi Markey – Division 3 (arrived approximately 7:15 PM)

Larry Foy – Division 5

David Pendergrass – Mayoral Representative

Board members absent:

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.

Chair Knight announced that at the request of Director Potter, item 12 would be deferred to the May 18, 2006 Special Meeting/Board Workshop.

The following comments were directed to the Board during Oral Communications. (1) David Dilworth had some complementary remarks to say about Lou Haddad, the recently deceased former member of the Board of Directors. He noted that Mr. Haddad was responsible for implementation of changes to the Ralph M. Brown Open Meeting Law, and focused on ensuring that public funds were spent wisely. (2) Robert Greenwood, representing the Carmel Valley Association, spoke to item 12 on the agenda. He stated that the study might duplicate work the Monterey Bay Regional Water Authority (MBRWA) has been tasked to complete. General Manager Berger stated that the MBRWA has not been formed. If in the future the group is organized, and if it decides to prepare an analysis of water supply projects, the District’s report could be a resource.

On a motion by Director Pendergrass and second by Director Edwards, the Consent Calendar items were approved with the exception of item 3 that was pulled for separate consideration. The motion was adopted on a vote of 5 – 0. Directors Markey and Potter were absent.

Approved.

Director Markey joined the meeting during discussion of item 3.

Director Pendergrass proposed a motion that was seconded by Director Edwards to authorize the expenditure of $26,400 for the purchase and shipping of eight insulated, fiberglass rearing troughs and the associated support structures, tank covers, plumbing and electrical components.

Director Pendergrass offered an amendment that was seconded by Director Edwards, to authorize the expenditure of $26,400 and direct staff to prepare letters to NOAA Fisheries and the California Department of Fish and Game requesting that in the future Federal and State agencies participate in funding mitigation projects, and urging them to improve cooperation with District staff on obtaining permits for Carmel River projects. The amended motion was approved on a vote of 5 to 1. Directors Edwards, Foy, Knight, Markey and Pendergrass voted in favor of the motion. Director Lehman was opposed. Director Potter was absent.

Approved.

The report was presented by Henrietta Stern, Project Manager. A summary of the report is on file at the District office and can be viewed on the District’s website. In response to questions from the Board, staff reported the following. Diversions from the Carmel River for the Aquifer Storage and Recovery Project were halted on May 4, 2006 per the request of California American Water Company (Cal Am). The excess flow was needed in the Cal Am system because well capacity was reduced due to mandatory well rehabilitation efforts; a temporary reduction in storage capacity occurred; and flushing of the golf courses served by the CAWD/PBCSD Wastewater Reclamation project was scheduled to begin.

In response to questions from the Board, Steven Leonard, General Manager of California American Water Company, stated that pumping had ceased temporarily from the Seaside Basin, so all production was derived from the Carmel River Basin. He noted that Cal Am has noticed a trend indicating that well capacity in the Carmel River Basin was dropping around 20 percent per year. He agreed to advise the jurisdictions by letter as to whether or not they should proceed with fire hydrant flushing.

David Dilworth, representing Helping Our Peninsula’s Environment (HOPE), requested that future Water Supply Project Alternatives Updates should include a report on progress of the 7.5 million-gallons-per-day Sand City Seawater Desalination Project proposed by the District in 2003.

The report was presented by Darby Fuerst, Senior Hydrologist. A summary of the report is on file at the District office and can be viewed on the District’s website. Mr. Fuerst reported that between October 1, 2005 and May 10, 2006, Cal Am production from the Carmel River was 539 acre-feet below the limit established by SWRCB Order 95-10. He stated that sufficient surface and groundwater storage is available to provide water to the community over the next 18 months.

District Counsel Laredo reported that the Board discussed two items on the Closed Session agenda. (1) Application of California American Water Company to the Public Utilities Commission Application No. 04-09-019 – Coastal Water Project. (2) Conference with Labor Negotiators. As to both items, a report was presented to the Board and general direction was given to staff. No reportable action was taken.

Director Lehman reported that the Association of California Water Agencies (ACWA) held its Spring Conference in Monterey the week of May 8, 2006. It was gratifying to see that the District was nominated to receive the Clair A. Hill Award for the Pilot ASR Project. Ms. Lehman noted that three directors completed state-mandated ethics training during the ACWA Conference. Director Knight announced that the Watermaster was scheduled to meet on May 17, 2006 at 1:30 PM in the Oldemeyer Center. The Watermaster will consider approval of rules and regulations to govern the group, and a plan for development of a Basin Management Plan.

Director Foy made a motion that was seconded by Director Edwards to adopt the staff recommendation to edit the ordinance, initiate the CEQA process, and conduct first reading of the ordinance on June 22, 2006.

Director Foy moved that the motion be amended to delete from the draft ordinance proposed language regarding affordable housing found in Section 9, Amendment of Rule 24.5: Connections for Affordable Housing. Existing rules regarding affordable housing would remain in place. The Technical Advisory Committee should review the proposed language regarding affordable housing. In the future, another ordinance could be developed that outlines rules for permitting affordable housing projects. The motion was approved on a vote of 6 – 0. Directors Edwards, Foy, Knight, Lehman, Markey and Pendergrass voted in favor of the motion. Director Potter was absent. Following the vote on the motion, the Board confirmed that the Initial Study on Ordinance No. 124 should address the affordable housing issue. The Directors also requested that the staff note for the June 22, 2006 meeting include a list of all major policy changes including sections where the Board or General Manager’s responsibilities are adjusted. The list should include the justification for making the change.

The following persons addressed the Board during the public hearing on this item. (1) David Dilworth representing HOPE, asked for an example of the Maximum Applied Water Allowance (MAWA) calculation as applied to a golf course. Mr. Dilworth stressed the importance of developing a good monitoring plan in conjunction with rules related to outdoor landscaping calculations. He also requested that upcoming versions of the ordinance contain an explanation of why sections of the ordinance were changed. Mr. Dilworth suggested that proposed rule 28.B.1.8 that requires 15 percent of a water credit to be set aside for conservation, be changed to require a 35 or 40 percent set aside. He also asked staff to explain what happens when water use on a non-residential property exceeds the permitted amount.

The item was deferred to the May 18, 2006 Special Meeting/Board Workshop per the request of Director Potter.

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

At 9:30 PM, the meeting was adjourned to the May 18, 2006 Special Meeting/Board Workshop.

CALL TO ORDER/ROLL CALL

PLEDGE OF ALLEGIANCE

ORAL COMMUNICATIONS

CONSENT CALENDAR

1. Consider Adoption of Minutes of the March 20 and April 17, 2006 Regular Board Meetings

2. Consider Expenditure of Budgeted Funds for Regional Collaborative Water Conservation Effort Regarding Development and Purchase of Water-Wise Gardening Software: A Project of the Water Awareness Committee of Monterey County, Inc.

3. Consider Expenditure of Budgeted Funds for Purchase of Fish Rearing Troughs for Sleepy Hollow Steelhead Facility

4. Receive Water Supply Forecast for Period of May 1, 2006 – September 30, 2007

5. Consider Approval of Third Quarter Fiscal Year 2006-06 Investment Report

6. Adopt Treasurer’s Report for March 2006

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

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

ACTION ITEMS

11. Discuss Conceptual Ordinance Clarifying Rules Related to Water Permits and Credits (Continued from April 17, 2006)

12. Receive Report on Engineering Consulting Study to Evaluate Desalination Project Alternatives, and Consider Suggestion of Director Potter to Terminate Contract, if Appropriate