EXHIBIT 1-C |
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DRAFT MINUTES Regular Meeting Board of DirectorsMonterey Peninsula Water
Management District May 27, 2004 |
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The meeting was called to order at 7:05 PM in the District conference room. Directors present: Alvin
Edwards, Chair – Division 1 Larry
Foy, Vice Chair – Division 5 Judi
Lehman – Division 2 Kristi
Markey – Division 3 Michelle
Knight – Division 4 David
Pendergrass – Mayoral Representative Directors absent: David
Potter – Monterey County Board of Supervisors General Manager present: Fran
Farina District Counsel present: David C.
Laredo Special Counsel present: Carl
Nelson The assembly recited the Pledge of Allegiance. The
following comments were directed to the Board during Oral
Communications. (1) Darby Fuerst,
MPWMD Senior Hydrologist, reported that on May 26, 2004, California American
Water production exceeded the month-end production target by 258
acre-feet. The month-end targets were
established in response to issuance of State Water Resources Control Board
(SWRCB) Order 95-10. It is projected
that by September 30, 2004, production could exceed the 11,285 acre-feet per
year limit specified in SWRCB Order 95-10 by approximately 75 acre-feet. General Manager Farina sent a letter to
Steven Leonard advising him that by June 2004, Stage 3 of the Expanded Water
Conservation and Standby Rationing Plan could be in place. Mr. Fuerst noted that sufficient water is
available in the water resources system to meet community needs. He explained that Stages 1 through 3 of
the Expanded Water Conservation and Standby Rationing Plan are related to
Cal-Am production levels. Stages 4
through 7 are triggered by a physical water shortage. (2) Steven Leonard, representing
Cal-Am, reported that water production problems have occurred in the Ryan
Ranch water distribution system.
Customers in the Ryan Ranch area have been advised to reduce water
consumption until the situation is resolved.
In response to Mr. Fuerst’s comments, Mr. Leonard stated that
postcards have been mailed to Cal-Am customers encouraging them to conserve
water. In addition, a conservation
message was recorded and transmitted by telephone to Cal-Am customers. He
stated that no plan has been developed for payment of fines that could be
assessed by the SWRCB should water production exceed the 11,285 acre-feet
annual limit (3) David Dilworth,
representing Helping Our Peninsula’s Environment (HOPE), requested that the
District transmit a letter to the Public Utilities Commission (PUC) and the
SWRCB stating that Cal-Am is not doing everything possible to properly manage
the water distribution system and reduce water use. He noted that if Cal-Am production were to exceed the limit
established by SWRCB Order 95-10, Cal-Am shareholders should be responsible
to pay any fines that could be assessed. Approved. On a motion by Director Pendergrass and second by Director Knight, the Findings were approved on a vote of 5 – 1. Directors Edwards, Foy, Knight, Lehman, and Pendergrass voted in favor of the motion. Director Markey was opposed. Director Potter was absent. Approved. On a
motion by Director Foy and second by Director Lehman, the resolution was
adopted unanimously on a vote of 6 – 0.
Director Potter was absent. A motion was offered by Director Foy to approve the staff recommendation to: (a) adopt the CEQA Findings in support of Ordinance No. 109; (b) adopt the second reading version of Ordinance No. 109; and (c) adopt the corrections outlined in the Errata Sheet presented at the May 27, 2004 Board meeting (on file at the District office). In addition, the Board should adopt corrections to the Errata Sheet presented orally by Special Counsel Nelson which are: (a) page 1, item II.E, line 3, delete the word “or” and replace it with the word “of”; and (b) add a new item to the Errata Sheet indicating that on page 20 of Ordinance No. 109, section F.3, line 2, the words “14 days” should be deleted and replaced with the words “15 days.” The motion was seconded by Director Knight and approved on a vote of 4 – 2. Directors Edwards, Foy, Knight, and Pendergrass voted in favor of the motion. Directors Lehman and Markey voted against the motion. Director Potter was absent. The
following comments were directed to the Board during the public hearing on
this item. (1) Thomas Jamison,
representing the Pebble Beach Company, expressed satisfaction with the second
reading version of Ordinance No. 109, including items enumerated in the
Errata Sheet and mentioned by Special Counsel Nelson. He urged the Board to adopt Ordinance No.
109 and the CEQA Findings. Mr.
Jamison noted that item H on page 5 of the Errata (showing full text of
provisions affected by post-agenda revisions and corrections, on file at the
District office) was presented incorrectly.
The instruction to delete the words “30th day” and replace
them with the words “15th day” was not transferred to the example
of revised text. (2) Lloyd
Lowrey, representing the Independent Reclaimed Water Users Group,
expressed appreciation for the time and effort expended to revise the
ordinance and develop a document that he described as “acceptable for
adoption.” (3) David Dilworth,
representing HOPE, objected to Ordinance No. 109 and the associated
Findings. He requested that the
District prepare an Initial Study on adoption of Ordinance No. 109. He submitted a letter dated May 27, 2004
outlining his comments, and attached a letter dated March 23, 2004 from the
Department of Fish and Game (on file at the District office). Director
Potter was not present for the meeting, so Chair Edwards continued this item
to the June 21, 2004 Board meeting when all Directors would be present to
vote on the issue. In addition,
Chair Edwards determined that public comment would be received on May 27, after
which the public comment period would be closed. The only public comment to be accepted at the June 21, 2004
Board meeting will be received during Oral Communications. The
following comments were directed to the Board during the public comment
period on this item. (1) Robert
Greenwood, representing the Carmel Valley Association, expressed
opposition to the detachment of Tehama and Monterra subdivisions from the
District boundaries. (2) Patricia
Bernardi, a resident of Carmel Valley, expressed opposition to the
detachment of Tehama and Monterra subdivisions from the District
boundaries. (3) Alan Williams
spoke in support of the detachment of Tehama and Monterra subdivisions from
the District boundaries. According to
Mr. Williams, the District over-regulates the water resource. He noted that it would take less time and
money to separate from the District than it would take to comply with the
District’s over-regulation of the Tehama/Monterra water supply. According to Mr. Williams, the amount of
water used represents only one percent of the 11,285 acre-feet of water
produced by Cal-Am each year. (4) Derinda Messenger, representing the
CaZada Woods Water
Distribution System, spoke in support of detachment of the Tehama and
Monterra subdivisions. She stated
that detachment would not set a precedent for future requests because the CaZada Woods system differs
from other water distribution system in that it is regulated by the PUC. Ms. Messenger noted that production from
the water distribution system is limited to 118 acre-feet, whether it is inside
or outside of the District boundaries.
(5) Michael Waxer, representing the Carmel Development Company,
spoke in support of detachment of the Tehama and Monterra subdivisions from
the District. According to Mr. Waxer,
the subdivisions are unique because their water supply is based on a water
right listed on Table 13 of SWRCB Order 95-10, which is senior to any other
water right. In addition,
distribution of that water has been analyzed in two environmental impact
reports. (6) David Dilworth,
representing HOPE, expressed opposition to detachment of the Tehama and
Monterra subdivisions. The
Board discussed the draft budget and suggested changes that could be
incorporated into the final budget for consideration at the June 21, 2004
meeting. No action was taken on this
item. The
following comments were directed to the Board during the public comment
period on this item. (1) Steven
Leonard, representing Cal Am, responded to a question from the Board as
to whether or not Cal-Am would participate in funding another well for the
aquifer storage and recovery (ASR) project.
Mr. Leonard stated that Cal-Am is very committed to ASR, and may be
able to commit $200,000 towards the project.
A higher level of funding must be calculated into the next PUC rate case
which will be developed in 2005.
Presently, Cal-Am engineers are analyzing what improvements need to be
made to the water distribution system in order to facilitate an expanded ASR
project. (2) Robert Greenwood
noted that funding was cut for preparation of an EIR on a desalination plant
in Sand City, and a second ASR well.
He asked what water project the District would be funding from the
Capital Projects Fund in FY 2004-2005.
(3) John Fischer, a resident of Pacific Grove, noted that
budgetary constraints are forcing the District to defer projects. He urged the Board to look at how those
deferred projects will be funded in future years. (4) Tex Irwin suggested that the Board borrow money from
the Mitigation Fund to balance the budget.
He proposed that the funding shortfall might also be met by combining
a User Fee increase with a loan from the Mitigation Fund. (5) David Dilworth advised the
Board to investigate options such as the issuance of bonds and borrowing
money. In addition, a long-term plan
should be developed that is based on funding the District’s core
functions. Projects outside of the
core functions could be funded if money were available. The
meeting was adjourned at 10:15 PM. |
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CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ORAL
COMMUNICATIONS CONSENT
CALENDAR
PUBLIC
HEARINGS
ACTION
ITEMS
ADJOURNMENT |
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________________________________________ Fran Farina, Secretary to the Board |
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