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FINAL MINUTES Regular
Meeting Board of
Directors Monterey
Peninsula Water Management District May 19, 2008 |
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The meeting was called to
order at 7:05 PM in the District Conference Room. |
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CALL TO ORDER/ROLL CALL |
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Directors Present: Kristi Markey, Vice Chair
-- Division 3 Bob Brower – Division 5 David Pendergrass – Mayoral
Representative David Potter – Directors Absent: None General Manager present: District Counsel present: David C.
Laredo |
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The assembly recited the
Pledge of Allegiance. |
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PLEDGE OF ALLEGIANCE |
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The following comments were
directed to the Board. (1) Dr. Douglas Green, a resident in
the Highway 68 corridor, stated
that the District had not provided adequate notice to property owners about
the first reading of Ordinance No. 134.
He alleged that the District had intentionally planned to discourage
public comment on the ordinance. (2) |
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ORAL COMMUNICATIONS |
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On a motion by Director
Pendergrass and second by Director Edwards, the Consent Calendar was adopted
unanimously on a vote of 7 – 0. |
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CONSENT CALENDAR |
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Approved. |
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1. |
Consider
Approval of Minutes from March 27, 2008 Special Meeting/Board Workshop and
April 21, 2008 Regular Board Meeting |
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Approved. |
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2. |
Consider
Adoption of Resolution of Intention to Approve an Amendment to the District’s
Public Employees Retirement System Contract Providing One-Year Final
Compensation |
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Approved. |
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3. |
Consider
Authorization of Funds to Purchase Orthophotography Within the District
Boundary |
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Approved. |
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4. |
Consider
Expenditure of Budgeted Funds to Paint Exterior of |
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Approved. |
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5. |
Consider
Approval of 3rd Quarter FY 2007-08 Investment Report |
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Approved. |
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6. |
Consider
Adoption of Treasurer's Report for March 2008 |
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PRESENTATIONS |
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Chair Lehman announced the
names of the Community Advisory Committee Members and presented certificates
to those who were present: Paul Bruno,
Robert Greenwood, and |
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7. |
Present
Certificates of Appreciation to Community Advisory Committee Members |
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Henrietta Stern, Project
Manager, presented the report. An
outline of the presentation is on file at the District office and can be
viewed at the District’s website.
Director Potter reported that within two weeks time, a Memorandum of
Understanding (MOU) should be introduced as a simple and less complicated
replacement for the Monterey Bay Regional Water Solutions Leadership Task
Force MOU. |
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8. |
Water Supply Project Alternatives Update |
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GENERAL MANAGER’S REPORT |
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During the public comment
period on this item, Dr. Douglas Green addressed the Board. Dr. Green asked why the production limit
for the Laguna Seca Subarea had been set so low. Mr. Fuerst explained that CAW’s limit from
the Laguna Seca Subarea was set by the court as part of the |
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9. |
Status Report on |
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ATTORNEY’S REPORT |
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District Counsel Laredo
reported that during the closed session he provided status reports on all
items and received general direction.
No reportable action was taken. |
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10. |
Report
on 5:30 PM Closed Session of the Board |
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3. |
Conference with Legal Counsel – Existing Litigation
(Gov. Code 54945.9 (a)) |
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A. |
Application
of California American Water Company to the Public Utilities Commission
Application No. 04-09-019 – Coastal Water Project |
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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 |
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C. |
Application of
California-American Water Company to California Public Utilities Commission
for a Special Conservation Program and Design Modifications Rate in its
Monterey District (Application No. 07-12-010) – Conservation Program
Application |
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D. |
Application of California
-American Water Company to California Public Utilities Commission for
Authorization to Increase Revenues for Water Service in its Monterey District
in the years 2009; 2010; and 2011 (Application No. 08-01-027) – General Rate
Case |
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E. |
Application of
California-American Water Company to Authorize Support Services for its
Monterey District to the California Public Utilities Commission (Application
No. 08-01-024 ) – General Office Case |
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F. |
Application of California
American Water to the California Public Utilities Commission to Authorize
Costs for the Long-Term Water Supply to be Transferred to a Balancing Account
and a Requirement for Annual Review of that Account (Application No.
08-04-019). |
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G. |
Application of
California-American Water Company to the California Public utilities
Commission for an Authorized Cost of Capital for Utility Operations for 2009
(Application No. 08-05-003) |
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H. |
State Water Resources
Control Board Draft Cease and Desist Order WR 2008-00XX-DWR |
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I. |
MPWMD v. Nick Marotta, Jr.,
Gerda Marotta, and Does 1-100 -- |
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J. |
MPWMD v. Roy Woods, Woods
1995 Trust, and Does 1-100 -- |
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4. |
Conference with Legal Counsel – Threatened Litigation
(Gov. Code 54956.9(b)) Sierra Club v California
American Water (16 U.S.C §1538) |
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DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON
TRIPS, CONFERENCE ATTENDANCE AND MEETINGS) |
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Director Brower reported
that he participated in several sessions at the May 6 through May 9, 2008
conference of the Association of California Water Agencies (ACWA). He noted that there are 19 seawater
desalination projects under consideration along the |
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11. |
Oral Report on Activities of County, Cities, Other
Agencies/Committees/ Associations |
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PUBLIC HEARINGS |
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Director Markey offered
a motion that was seconded by Director Potter to continue the first reading
of Ordinance No. 134. The ordinance
could be bifurcated so that in June the Board would address amendments to the
Expanded Water Conservation and Standby Rationing Plan; and at a future
meeting the Board could consider another ordinance that would address the
issue of California American Water’s unaccounted for water use. Director Markey
offered an amended motion, requesting
that Ordinance No. 134 be bifurcated and the two new ordinances brought
forward for Board consideration in July or August 2008. One ordinance would address amendments to
the Expanded Water Conservation and Standby Rationing Plan. The second ordinance would address the issue
of incorporating the Inland Area of the |
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12. |
Consider First Reading of Ordinance
No. 134 -- Amend Regulation XV, Expanded Water Conservation and Standby
Rationing Plan and Subject the Inland Area of the Seaside Basin to the
Conservation and Rationing Regulations |
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No comments were directed
to the Board on this item. |
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A. |
Consider Setting New Goal for |
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The following comments were
received during the Public Hearing on this item: (1) Geoffrey de Sibert,
President of the York Hills Homeowners Association, stated that the proposal
to expand the Monterey Peninsula Water Resource System (MPWRS) is egregious
and unjustified, and that homeowners in the affected area were not given
adequate advance notice about the first reading of Ordinance No. 134. (2)
Mark Trevallio member of the Board of Directors of the Bay Ridge
Homeowners Association and resident of Hidden Hills, said the Association had
reduced water use over time. They had
been advised in the past that if water use remained below 229 acre-feet each
year, rationing would be avoided. He
requested that the District work with Hidden Hills residents to find a way to
avoid the need to adopt Ordinance No. 134.
(3) Ken Holbrook, president
of Pasadera Homeowners Association, stated that news of this proposed
ordinance was very disturbing. He
chided the District for not providing homeowners with sufficient, advance
notice of the hearing on Ordinance No. 134.
(4) Russ Hatch addressed
the Board. He represented a number of
homeowner associations that were served by Carmel Valley Mutual Water Company
before it was purchased by CAW. He
stated that at the time of purchase, CAW agreed that Carmel Valley Mutual
customers would be considered a separate entity from CAW’s main system that
received water from the MPWRS. He
asked why that agreement was not being followed. He requested that the first reading be
deferred to a future date, to allow time to study the issues. (5)
Hershel Herod, former President of
the Laguna Seca Ranch Estates No. 2 Homeowners Association before CAW
purchased the Bishop Water Company. He
noted that at the time of purchase, the Board had approved the sale
agreement. He requested that the Board
take the sale agreement into consideration when deliberating Ordinance No.
134. (6) Hans Pfeifer, President of Halcyon Hills Homeowners
Association in Hidden Hills, said that when he purchased property in that
area in 2002, he was assured that a special agreement existed that exempted
the region from water restrictions. He
requested that the Board refer this issue to a committee and work with Hidden
Hills homeowners to analyze the reason and justification for including the
area into the MPWRS. (7) Rebecca Tagg, representing Halcyon
Heights Homeowners Association, requested that the first reading of Ordinance
No. 134 be delayed until the cause for the proposed action could be
investigated further. (8) Steven Block, President of Hidden
Hills Homeowners Association, requested that action on Ordinance No. 134 be
delayed until homeowners could analyze the justification for proposing that
Hidden Hills be incorporated into the MPWRS.
(9) Jerry Grady, President
of Mesa Hills West Mutual Homeowners Association, stated that he advised CAW
that his water meter was operating incorrectly but the problem has not been
addressed. He requested a
continuance of Ordinance No. 134 to allow time for property owners, CAW and
the District to resolve the disagreement on this proposal. (10) Paul Bruno a resident of the
Highway 68 corridor, agreed with previous speakers about the lack of notice
regarding the proposed ordinance. He
said that the Seaside Groundwater Basin Adjudication allows an exemption to
water reductions, if the coastal level of the aquifer rises above sea
level. He agreed that additional time
is needed to study the issues before the Board takes action on Ordinance No.
134. (11) Carl Outzen, who lives on York Road
and is a former Monterey City Councilmember, surmised that CAW provided its
Ryan Ranch Unit with water from its Bishop Unit wells, which misrepresents
the actual water use within the former Bishop Ranch service area. (12) Lloyd Lowrey, of Noland, Hamerly
Etienne and Hoss, representing many property owners within the Laguna Seca
Subarea addressed the Board. He
requested a continuance of the first reading of Ordinance No. 134 in order to
give property owners in affected areas time to understand the implications of
the proposed ordinance, and to explain their concerns to the District. |
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B. |
First |
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At 9 PM the meeting was recessed and then reconvened
at 9:10 PM. |
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13. |
Consider Second |
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On a motion by Director
Edwards and second of Director Markey, Ordinance No. 133 was adopted
unanimously on a roll-call vote of 7 – 0 with the following amendment: (1) the words “Any hearing officer who is skipped shall serve at the next earliest
opportunity” shall be added at the end of
Rule 112.5 A. |
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A. |
Adopt Second |
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On a motion by Director
Markey and second of Director Doyle, Resolution 2008-06 was adopted
unanimously on a vote of 7 – 0. No public comment was
directed to the Board on this item. |
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B. |
Adopt Resolution 2008-06 –
Establishing Rule 113.1, Schedule of Fines |
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ACTION ITEMS |
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On a motion by Director
Brower and second of Director Pendergrass, the Water Supply Forecast was
received and confirmed unanimously on a vote of 7 – 0. No comments were directed
to the Board during the public comment period on this item. |
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14. |
Receive and Confirm Water Supply Forecast for
Period of May 1, 2008 -- September 30, 2009 |
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On a motion by Director
Pendergrass and second of Director Edwards, the Annual Memorandum of
Agreement was adopted unanimously on a vote of 7- 0. No comments were directed
to the Board during the public comment period on this item. |
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15. |
Consider Approval of
Annual Memorandum of Agreement for Releases and Diversions from |
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Prior to the discussion of Item 16, Director Potter
excused himself from the meeting. |
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Director Pendergrass
offered a motion to adopt the resolution with the following changes: (1) the third Whereas should be amended to
read “District’s programs have successfully reduced water use (conservation),
and adverse environmental consequences”; and (2) the fourth Whereas should be
amended to read “Desist Order need to be realistic, and not jeopardize public
health…” The motion was adopted on a
vote of 6 – 0. Directors Brower,
Doyle, Edwards, Lehman, Markey and Pendergrass voted in favor of the
motion. Director Potter was absent for
the vote. No comments were directed
to the Board during the public comment period on this item. |
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16. |
Consider Adoption of
Position Statement on the January 15, 2008 Draft Cease and Desist Order
Issued by the State Water Resources Control Board, Division of Water Rights |
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Director Brower made a
motion that staff should proceed to gather information from a minimum of
three banks regarding a $2 Million Line of Credit. The motion was seconded by Director
Edwards and adopted on a vote of 6 – 0.
Directors Brower, Doyle, Edwards, Lehman, Markey and Pendergrass voted
in favor of the motion. Director
Potter was absent for the vote. No comments were directed
to the Board during the public comment period on this item. |
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17. |
Consider Request of Director Brower to
Secure a $2 Million Line of Credit to Fund Development of Water Supply
Projects |
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There was no discussion of
the Informational Items/Staff Reports. |
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INFORMATIONAL ITEMS/STAFF REPORTS |
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27. |
Letters Received |
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28. |
Committee
Reports |
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29. |
Strategic
Plan Update |
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30. |
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31. |
Water
Conservation Program Report |
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32. |
Monthly
Allocation Report |
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33. |
Monthly
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34. |
Monthly
Water Supply Status Report |
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The meeting was adjourned
at 9:50 PM. |
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ADJOURNMENT |
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