FINAL MINUTES OF THE MPWMD AUG 21, 2006 BOARD MEETING

FINAL MINUTES

Regular Meeting

Board of Directors

Monterey Peninsula Water Management District

August 21, 2006

The meeting was called to order at 7:00 PM in the Boardroom of the Monterey Regional Water Pollution Control Agency.

Directors present:

Michelle Knight, Chair – Division 4

Judi Lehman, Vice Chair – Division 2

Alvin Edwards – Division 1

Kristi Markey – Division 3

Larry Foy – Division 5

David Pendergrass – Mayoral Representative

David Potter – Monterey County Board of Supervisors

Directors absent: None

General Manager present: David A. Berger

District Counsel present: David Laredo

The assembly recited the Pledge of Allegiance.

Robert Greenwood, representing the Carmel Valley Association, asked if General Manager Berger would clarify the responsibilities of the California Public Utilities Commission (CPUC) and the proposed Monterey Bay Regional Water Authority on selection of a preferred water supply alternative. Chair Knight stated that District staff would respond to Mr. Greenwood in writing.

On a motion by Director Pendergrass and second by Director Edwards, the Consent Calendar was approved unanimously on a vote of 7 – 0.

Henrietta Stern, Project Manager, presented the report. A summary is available for review at the District office and on the District’s website. She reported that 411acre-feet of water were diverted and injected into the Seaside Basin between January and May 2006 as part of the Seaside Basin Test Injection Recovery Project. In addition, that evening the Board would consider certification of the Final Environmental Impact Report on the Phase 1 ASR Project.

Darby Fuerst, Senior Hydrologist, presented the report. A summary is available for review at the District office and on the District’s website. Mr. Fuerst reported that California American Water (Cal Am) production from the Carmel River between October 1, 2005 and August 17, 2006 was 506 acre-feet (AF) under the limit established as a result of State Water Resources Control Board Order 95-10. Production from the Coastal Subarea of the Seaside Groundwater Basin for the same time period was 409 acre-feet under the limit jointly established by the District, California Department of Fish and Game, NOAA Fisheries and Cal Am.

Mr. Berger announced that the District would conduct a presentation on Seawater Conversion Vessels to be given by representatives from PBS&J on August 31, 2006 at 7 PM in the MRWPCA Boardroom. Mr. Berger noted that the District has neither solicited this information nor analyzed the concept, the meeting is intended as an opportunity for the Board and public to be educated on a new seawater desalination technology. The presentation would be noticed as a special meeting of the Board, in the event that a majority of the Directors are in attendance. No Board discussion or action would be taken at the meeting. Joe Oliver, Water Resources Manager, introduced Kevan Urquhard the District’s recently hired Senior Fisheries Biologist.

District Counsel Laredo announced that on September 14, 2006, at 7 PM, the CPUC will conduct a continued public participation hearing on the Coastal Water Project at the Embassy Suites in Seaside. The hearing is continued from the July 18, 2006 public participation hearing on the same topic.

Mr. Laredo reported that at the 5:30 PM Closed Session he provided updates to the Board on items 3.A through 3.E, no reportable action was taken. Regarding item 4.A, on a motion by Director Pendergrass and second by Director Edwards, the Board authorized the General Manager to execute Memorandums of Agreement with the General and Management staff bargaining units. The motion was unanimously adopted on a vote of 6 – 0. Directors Edwards, Foy, Knight, Lehman, Markey and Pendergrass voted in favor of the motion. Director Potter was absent. Regarding item 4.B, direction was given to staff but no reportable action was taken.

Director Markey expressed appreciation for the efforts of District Counsels Laredo and Farina, General Manager Berger and other staff for their involvement with the recent CPUC proceedings regarding Cal Am’s request for a rate increase. She noted that the District worked hard to secure reductions in Cal Am’s rate proposal. Chair Knight reported that Dewey Evans was hired to serve as Chief Executive Officer of the Watermaster.

Director Edwards proposed a motion that was seconded by Director Potter to adopt the staff recommendation to: (a) address any oral or written comments received on the Final EIR/EA; (b) accept the Responses to Comments and the revised text in the Final EIR/EA; (c) adopt Resolution 2006-04 that certifies the Final EIR/EA, approves the Phase 1 ASR Project, adopts CEQA Findings and the Mitigation Monitoring Plan for the ASR Project; and (d) direct staff to file a Notice of Determination of approval of the Phase 1 ASR Project. The motion was approved on a unanimous vote of 7 – 0.

Robert Greenwood, representing the Carmel Valley Association, addressed the Board during the public hearing on this item. He expressed support for the Phase 1 ASR Project. He asked if cost estimates for the ASR project had been developed. General Manager Berger explained that the Board implemented a user fee adjustment of 1.2 percent to fund the capital project costs over a fifteen-year period. Operating cost estimates based on expected project yield have yet to be developed. He stated that District staff would provide the information to the Carmel Valley Association and post it on the District’s web site.

On a motion by Director Edwards and second by Director Potter, the Board directed that the ordinance be presented for second reading at the September 18, 2006 meeting with the following changes. (A) The amendments proposed in Section 11, Rule 28.B, Water Use Credit Transfers, (shown in strike-out bold, italicized text) will be removed from the draft ordinance so that Rule 28.B will reflect water use credit transfer language currently in effect. (B) All references in the draft ordinance to the proposed amendments to Section 11, Rule 28.B will be removed from the ordinance. (C) Many of the definitions listed in Section Three, Amendment of Rule 11, should be changed from bold text to bold italics. The motion was adopted unanimously on a vote of 7 – 0.

The following comments were directed to the Board during the public hearing on this item. (1) Chip Rerig, City of Monterey, expressed support for District Counsel’s recommendation that proposed changes to Rules 28.B should be deleted from the draft ordinance. He stated the City would like to be involved in future efforts to revise language related to water credit transfers. (2) Dan Albert, Mayor City of Monterey, spoke in support of District Counsel’s recommendation to amend the draft ordinance.

On a motion by Director Edwards and second by Director Foy, Ordinance No. 126 was adopted on a role call vote of 5 – 2. Directors Edwards, Foy, Knight, Markey and Pendergrass voted in favor of the motion. Directors Lehman and Potter were opposed. No comments were directed to the Board during the public hearing on this item.

On a motion by Director Edwards and second by Director Potter, discussion on this item was deferred to the September 25, 2006 Board Strategic Planning Retreat. The motion was approved on a vote of 6 – 1. Directors Edwards, Foy, Knight, Markey, Pendergrass and Potter voted in favor of the motion. Director Lehman was opposed.

Robert Greenwood, representing the Carmel Valley Association, addressed the Board during the public comment period on this item. He recommended the Board establish option 1.A – a standing committee with a narrowly defined focus that could be expanded if the committee works well together.

There was no discussion of these items.

The meeting was adjourned at 9 PM.

CALL TO ORDER/ROLL CALL

PLEDGE OF ALLEGIANCE

ORAL COMMUNICATIONS

CONSENT CALENDAR

1. Consider Adoption of Minutes of the July 17, 2006 Regular Board Meeting

2. Consider Expenditure of Budgeted Funds for Contract Amendment with RMC Water and Environment Consultants for Services to Complete Portions of a Proposition 50 Grant-Funded Integrated Regional Water Management Plan for the Monterey Peninsula, Carmel Bay and Southern Monterey Bay

3. Consider Expenditure of Budgeted Funds to Contract with the California Conservation Corps for Fall 2006 Vegetation Management Activities

4. Consider Approval of Fourth Quarter Investment Report

PRESENTATIONS

5. Water Supply Project Alternatives Report

GENERAL MANAGER’S REPORT

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

7. Announcement of August 31, 2006 Special Board Meeting/Public Presentation on Seawater Conversion Vessels by Post, Buckley, Schuh & Jernigan, Inc. (PBS&J)

ATTORNEY’S REPORT

8. Report on 5:30 PM Closed Session of the Board

1. Public Comment

2. Adjourn to Closed Session

3. Conference with Legal Counsel – Existing Litigation (Gov. Code 54956.9 (a))

A. Application of California American Water Company to the Public Utilities Commission Application No. 04-09-019 – Coastal Water Project

B. Application of California American Water Company to the Public Utilities Commission Application No. 05-02-012 – General Rate Case

C. Save Our Carmel River; Patricia Bernardi; and The Open Monterey Project v. MPWMD; MPWMD Board; and the City of Seaside; Monterey County Superior Court Case No. M72877

D. State Water Resources Control Board Permit No. 7130B

E. State Water Resources Control Board Permit No. 20808

4. Conference with Labor Negotiators (Gov. Code 54957.6)

A. Agency Designated Representatives: Rick Dickhaut, Cynthia Schmidlin, Ellen Aldrich, David Berger

General Staff Bargaining Unit: Laborer’s International Union of North America, AFL-CIO, (LIUNA/UPEC) Local 270

B. Agency Designated Representative : David Berger

Unrepresented Employees: Confidential Staff Unit

DIRECTORS’ REPORTS

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

PUBLIC HEARINGS

10. Consider Certification of Final EIR on Phase 1 Aquifer Storage and Recovery Project, Including Adoption of CEQA Findings and Mitigation Monitoring Plan

11. Consider Second Reading and Adoption of Ordinance No. 125 – Clarifying Rules Related to Water Permits and Water Credits

12. Consider Second Reading and Adoption of Ordinance No. 126 – Setting Compensation for Board Members

ACTION ITEMS

13. Consider Formation of a Community Advisory Committee and Adoption of a Charge for the Committee