MPWMD BOARD MEETING--AUG 20, 2001--EXHIBIT A1--FINAL MINUTES OF THE

FINAL MINUTES

Regular Meeting

Board of Directors

Monterey Peninsula Water Management District

July 16, 2001

The meeting was called to order at 7 PM in the Monterey City Council Chambers.

Board members present:

David Potter, Board Chair – Monterey County Board of Supervisors

Alvin Edwards, Vice Chair – Division 1– (Participated by telephone for consideration of item IV. Consent Calendar. Director Edwards called from Route 2 Box 3420, Rice Virginia 23966-9802)

Ron Chesshire – Division 2

Molly Erickson – Division 3

Kris Lindstrom – Division 4

Alexander “Zan” Henson – Division 5

David Pendergrass – Mayoral Representative

Staff members present:

Ernesto A. Avila, General Manager

Joe Oliver, Water Resources Manager

Andy Bell, Planning & Engineering Manager

Stephanie Pintar, Water Demand Manager

Darby Fuerst, Senior Hydrologist

Cynthia Schmidlin, Human Resources Analyst

Arlene Tavani, Executive Assistant

District Counsel present: David C. Laredo

I. CALL TO ORDER/ROLL CALL

The assembly recited the Pledge of Allegiance.

II. PLEDGE OF ALLEGIANCE

The following comments were presented to the Board during the Oral Communications period. (1) Clifford Bagwell, alleged that an illegal transfer of water from the California-American Water Company (Cal-Am) system to properties within the Carmel Riviera Mutual Water Company is occurring. Mr. Bagwell stated that the properties receiving Cal-Am water are located outside of the District’s boundary, south of McDougal Creek near Cal-Am’s southern boundary. According to Mr. Bagwell, those properties should be served exclusively by Carmel Riviera Mutual Water Company. (2) Tex Irwin, representing the Monterey Peninsula Airport District, read a section from an unidentified document written in 1978 which stated that the addition of four wells and an iron removal plant in the Cal-Am system would increase water deliveries to about 23,000 acre-feet per year and meet 100 percent of buildout within the District. (3) Fran Farina, representing Save Our Carmel River, urged the Board to fund an update of the Water Allocation Program EIR. (4) Fran Farina, resident of Carmel Valley, asked what information the District had gathered on development of Fort Ord depressions for water storage. Was the intent to utilize Fort Ord depressions for offstream storage of excess winter flows from the Carmel River or for storm water? She stated that Fort Ord depressions were not mentioned as a water supply alternative in the Plan B report. (5) Keith Maki, owner of an undeveloped lot in Pebble Beach, stated that there are opportunities for off-stream storage within the District. Construction of small off-stream storage facilities could be funded by the District without bond funding, and lengthy studies. (6) Dan Albert, Mayor of Monterey, speaking on behalf of the Monterey County Mayors Association, urged the Board to allocate water for affordable housing projects.

III. ORAL COMMUNICATIONS

On a motion by Director Chesshire and second by Director Pendergrass, the Consent Calendar was approved except for items G and H that were pulled for separate consideration. The motion was approved on a vote of 7 - 0.

IV. CONSENT CALENDAR

Approved.

A. Consider Approval of Minutes from the Regular Meeting of June 18, 2001

Approved.

B. Consider Ratification of Agreements

Approved.

C. Elect Ernesto Avila to the Offices of Secretary and Treasurer to the Board of Directors

Approved.

D. Consider Extension of United States Geological Survey Cooperative Agreement for Water Year 2001-2002

Approved.

E. Consider Authorization of Funds for Installation of PG&E Electric Service at the Seaside Basin Injection Well No. 1

Approved.

F. Consider Authorization of Mitigation Funds to Review Specifications, Continue Rental Agreement for Temporary Pumps and Purchase Replacement Pumps for the Sleepy Hollow Steelhead Rearing Facility

Approved.

G. Consider Adoption of Resolution Approving an Amendment to the District’s Public Employees Retirement System Retirement Contract Providing Retirement Benefits of 2 percent at 55

On a motion by Director Edwards and second by Director Chesshire, the resolution approving an amendment to the District’s Public Employee Retirement System contract was approved on a vote of 5 - 2. Directors Lindstrom and Erickson voted against the motion.

H. Consider Amendments to the District Personnel Resolution

On a motion by Director Pendergrass and second by Director Edwards, the staff recommendation to amend the Personnel Resolution was approved by the Board on a vote of 6 - 1. Director Lindstrom voted against the motion.

I. Consider Adoption of Treasurer’s Report for June 2001

Approved.

J. Consider Authorization of Funds for ALERT Gage Maintenance Agreement with Monterey County Water Resources Agency for Fiscal Year 2000-2001

General Manager Avila introduced Senior Hydrologist Darby Fuerst, who gave a presentation on a proposal to expand reporting on water well permits and production. An outline of Mr. Fuerst’s presentation is on file at the District office.

V. PRESENTATIONS

A. General Manager’s Report

1.Update on Proposal to Publish Expanded Monthly Report on Water Well Permits and Production

District Counsel Laredo reported on the June 18, 2001 Closed Session of the Board. He stated that the Board received a report from its employment contract negotiators Directors Chesshire, Henson and Edwards. No action was taken at the Closed Session. Chair Potter advised the assembly that the Closed Session scheduled to follow the July 16, 2001 Board meeting had been canceled.

B. Attorney’s Report

Director Erickson expressed concern that the MPWMD Budget for fiscal year 2001-2002 does not include projects the Directors have discussed informally, such as an update of the Allocation Program EIR. Ms. Erickson requested that the General Manager respond in writing prior to August 20, 2001 on the comments made by Clifford Bagwell under Oral Communications alleging that an illegal transfer of water is occurring between Cal-Am and properties within the Carmel Riviera Mutual water distribution system. She requested that the Administrative Committee discuss improvements to the District’s web site on August 14, 2001. Ms. Erickson also requested that staff provide an update on outside counsel litigation billing. Chair Potter thanked the Directors for participating in the July 9, 2001 Strategic Planning Session.

C. Directors’ Reports

1. Board Comments and Referrals

V. PRESENTATIONS

C. Directors’ Reports

1. Board Comments and Referrals

No public hearings were brought before the Board for consideration.

VI. PUBLIC HEARINGS

On a motion by Director Lindstrom and second by Director Henson, the resolution was approved with the following modifications to the resolution and Table 1. (1) The resolution was modified to amend item 3 by adding the following statement “prior water use credits deriving from fixtures noted in the footnote on Table 1 shall be used for completed applications submitted to governing jurisdictions on or before December 31, 2001, and thereafter those credits shall no longer have any force or effect.” (2) Table 1 was modified as follows: (a) the words “Water closet” shall be changed to “Toilet;” (b) the last sentence under the heading Total Fixture Unit Count will be amended by deleting the words “by the General Manager” and replacing them with the words “according to Rule 24;” and (c) add a new sentence number two under the heading Total Fixture Unit Count that states “Water use credits for multiple shower heads shall be limited to two per shower stall.” The motion was approved on a vote of 6 - 0. Director Edwards was absent.

The following comments were directed to the Board during the public comment period on this item. (1) Fran Farina, representing the Carmel Valley Property Owners Association, submitted a letter dated July 16, 2001, expressing support for the resolution. The letter is on

file at the District office. (2) Mark Beique stated that multiple shower heads may not conserve water, but they are legal plumbing fixtures and should not be “discounted” by the District. He disagreed with the proposed rule that would shorten the time that water credits could be retained from ten years to six months. Mr. Beique charged the District with criminalizing water use.

VII. ACTION ITEMS

A. Approve Resolution Disallowing Water Use Credit for Multiple Utility Sink Installations (Indoor and Outdoor)and Other Outdoor Water Fixtures and Modifying District Rule 24, Table 1, Residential Fixture Unit Count