MPWMD BOARD MEETING--JUNE 18, 2007--FINAL MINUTES

FINAL MINUTES

Regular Meeting

Board of Directors

Monterey Peninsula Water Management District

June 18, 2007

The meeting was called to order at 7:00 PM in the District Conference Room.

Board members present:

David Pendergrass, Chair – Mayoral Representative

Alvin Edwards, Vice Chair – Division 1

Judi Lehman – Division 2

Kristi Markey – Division 3

Larry Foy – Division 5 (Participated by telephone)

David Potter – Monterey County Board of Supervisors

Board members absent:

Michelle Knight – Division 4

General Manager present: David A. Berger

District Counsel present: David Laredo

The assembly recited the Pledge of Allegiance.

No comments from the public.

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

Approved.

General Manager Berger presented an update on progress made since May 21, 2007 towards completion of strategic planning objectives. A summary of his presentation is on file at the District office and available for review on the District’s web site. Director Lehman requested that General Manager Berger invite a representative from the Big Sur Land Trust to address the Board on the Carmel River Parkway Plan.

Henrietta Stern, Project Manager, presented the report. A summary of the presentation is on file at the District office and available for review on the District’s web site.

Darby Fuerst, Water Resources Manager, presented the report. He stated that between October 1, 2006 and June 13, 2007, California American Water (CAW) production from the Carmel River was 220 acre-feet under the limit established as a result of State Water Resources Control Board Order (SWRCB) 95-10. For the same time period, CAW production from the Seaside Groundwater Basin was 114 acre-feet below the limit established in the Seaside Basin Adjudication decision.

Stephanie Pintar, Water Demand Manager, provided a brief status report on coordination with CAW to promote water conservation in the community, and the Phase 2 conservation program regulations.

Director Markey requested that District staff contact the Monterey Regional Park District and propose that they erect signs advising visitors to Garland Park that wildlife in and around the river should not be harassed or captured.

Director Lehman expressed concern about the effect of dry weather conditions on tributaries to the Carmel River. She requested that District staff provide an update on current hydrologic conditions at the tributaries, including Garzas Creek.

The open session convened at 5:30 PM. Directors present were Edwards, Foy (by phone), Lehman, Markey, Pendergrass and Potter. No public comment was directed to the Board. The meeting was adjourned to Closed Session. District Counsel Laredo reported that the Board met with labor negotiators as listed under item 3. No reportable action was taken. The Board also received a status report on items 4.A through 4.F. No reportable action was taken.

Director Edwards thanked General Manager Berger and Stephanie Pintar for the excellent presentation about the MPWMD that they gave to the Seaside City Council on June 7, 2007. Chair Pendergrass announced that he and General Manager Berger and Ms. Pintar also gave a similar presentation to the Monterey Peninsula Airport District on June 13, 2007. Director Lehman requested that CAW staff make a presentation to the Board that would describe the water company’s funding structure, and the fees shown on monthly water bills. General Manager Berger noted that Steve Leonard, CAW Monterey District General Manager, will address the Board on that topic in a Special Meeting/Board Workshop scheduled for August 30, 2007, at 7 PM. The meeting will be televised. Ms. Lehman suggested that it would be good to provide this information twice: at a Board meeting prior to the August workshop, and at the workshop.

On a motion by Director Edwards and second by Director Potter, Ordinance No. 128 was adopted on a roll-call vote of 5 - 1. Directors Edwards, Foy, Markey, Pendergrass and Potter voted in favor of the motion. Director Lehman was opposed. Director Knight was absent from the meeting. No comments were directed to the Board during the public hearing on this item.

Director Markey proposed a motion to adopt the July through September 2007 Quarterly Water Supply Strategy and Budget. The motion was seconded by Director Lehman and approved on a unanimous vote of 6 – 0. Directors Edwards, Foy, Lehman, Markey, Pendergrass and Potter voted in favor of the motion. Director Knight was absent from the meeting. No comments were directed to the Board during the public hearing on this item.

On a motion by Director Potter and second by Director Edwards, the Fiscal Year 2007-2008 MPWMD Budget and Resolution 2007-11 were adopted by the Board on a unanimous vote of 6 – 0. Directors Edwards, Foy, Lehman, Markey, Pendergrass and Potter voted in favor of the motion. Director Knight was absent from the meeting. No comments were directed to the Board during the public hearing on this item.

Chair Pendergrass offered a motion that was seconded by Director Potter to: (1) adopt the Memorandum of Understanding as presented in Exhibit 25-A; and (2) authorize the General Manager to execute the final version of the MOU including minor or non-substantive changes requested by other jurisdictions, following review as to acceptable form and legality by General Counsel. The motion was adopted on a vote of 5 – 1. Directors Foy, Lehman, Markey, Pendergrass and Potter voted in favor of the motion. Director Edwards was opposed. Director Knight was absent from the meeting.

During the pubic comment period, Robert Greenwood of the Carmel Valley Association addressed the Board. He expressed support for the concept of regional cooperation addressed by the MOU. He urged the Board to give priority to the District’s immediate water needs by creating 12,000 acre-feet of new water supplies to satisfy the requirements of State Water Resources Control Board Order 95-10. He cautioned that the Board should not delay progress on development of new water supplies by “getting bogged down” in solving conflicting regional water needs.

There was no discussion of these items.

The meeting was adjourned at 9:20 PM.

CALL TO ORDER/ROLL CALL

PLEDGE OF ALLEGIANCE

ORAL COMMUNICATIONS

CONSENT CALENDAR

1. Consider Adoption of Minutes of the May 21, 2007 Regular Board Meeting and May 31, 2007 Board Special Meeting/Workshop

2. Consider Ratification of Appointments to the Carmel River Advisory Committee

3. Consider Expenditure of Budgeted Funds for Sleepy Hollow Steelhead Rearing Facility Stand-by Generator Maintenance Service with Quinn Power Systems

4. Consider Expenditure of Budgeted Funds to Purchase a Four Wheel Drive All-Terrain Vehicle (ATV) for Emergency Access to the Sleepy Hollow Steelhead Rearing Facility

5. Consider Expenditure of Budgeted Funds for Purchase of Computer Software and Hardware for District-wide Upgrades

6. Consider Expenditure of Funds and Authorization to Contract for Limited-Term Field Positions

7. Consider Expenditure of Funds and Authorization to Contract with Hayashi & Wayland to Conduct Annual Financial Audits for Fiscal Years 2006-07, 2007-08 and 2008-09

8. Consider Expenditure of Funds and Authorization to Amend Contract with Pueblo Water Resources to Provide Hydrologic Review for Water Distribution Systems in FY 2007-2008

9. Consider Expenditure of Funds and Authorization to Amend Contract with Golden State Planning and Environmental Consulting to Provide Water Distribution System Permit Processing Assistance for FY 2007-2008

10. Consider Authorization of Funds to Rent Irrigation Equipment to Mitigate for Impacts from the Lower Carmel Valley Wells

11. Consider Approval of Memorandum of Agreement between the Monterey Peninsula Water Management District and the Carmel River Steelhead Association for Limited Access and Use of the Sleepy Hollow Steelhead Rearing Facility

12. Consider Adoption of Resolution 2007-08 Establishing Article XIII (B) Appropriations Limit for Fiscal Year 2007-08

13. Consider Adoption of Resolution 2007-09 Authorizing the Execution and Delivery of an Installment Purchase Agreement, a Bond Purchase Agreement, an Official Statement and Continuing Disclosure Certificate and Authorizing Certain Related Matters for ASR Phase 1 Facilities; and Resolution 2007-10 Approving, Authorizing and Directing Execution of an Amended and Restated Joint Exercise of Powers Agreement Relating to the California Statewide Communities Development Authority

14. Receive and File Third Quarter Financial Activity Report for Fiscal Year 2006-07

15. Receive and File Annual Mitigation Program Report for Reporting Year 2005-2006

16. Consider Adoption of Treasurer’s Report for April 2007

PRESENTATIONS

17. Strategic Plan Update

18. Water Supply Project Alternatives Update

GENERAL MANAGER’S REPORT

19. Status Report on California American Water Compliance with State Water Resources Control Board Order 95-10 and Seaside Groundwater Basin Adjudication Decision

ATTORNEY’S REPORT

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

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

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

Employee Organization: General Staff and Management Staff Bargaining Unit Represented by Laborer’s International Union of North America, AFL CIO, (LIUNA/UPEC) Local 270

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

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

B. Application of California American Water Company to the California Public Utilities Commission -- Application No. 07-02-023 -- Allowance for Funds Used During Construction (AFUDC) for its San Clemente Dam Memorandum Account

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

D. State Water Resources Control Board Permit No. 20808

E. MPWMD v. Nick Marotta, Jr., Gerda Marotta, and Does 1-100 -- Monterey County Superior Court Case No. M83498

F. MPWMD v. Roy Woods, Woods 1995 Trust, and Does 1-100 -- Monterey County Superior Court Case No. M83499

DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS)

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

Associations

PUBLIC HEARINGS

22. Consider Second Reading and Adoption of Ordinance No. 128 – An Ordinance of the Board of Directors of the Monterey Peninsula Water Management District Clarifying Terms, Rules and Policies Related to Water Distribution Systems, Water Permits, Water Use Permits, Water Credits, Affordable Housing, Fees and the Expanded Water Conservation and Standby Rationing Plan

23. Consider Adoption of July through September 2007 Quarterly Water Supply Strategy and Budget

24. Consider Adoption of Proposed FY 2007-2008 MPWMD Budget and Resolution 2007-11

ACTION ITEMS

25. Consider Approval of Memorandum of Understanding to Form Monterey Bay Regional Water Solutions Leadership Task Force