EXHIBIT 1-A DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District January 27, 2005
The meeting was called to order at 7:00 PM in the Board Room of the Monterey Regional Water Pollution Control Agency. Board members present: Larry Foy, Chair – Division 5 Kristi Markey, Vice Chair – Division 3 Alvin Edwards – Division 1 Judi Lehman – Division 2 Michelle Knight – Division 4 David Pendergrass – Mayoral Representative David Potter – Monterey County Board of Supervisors General Manager present: David A. Berger District Counsel present: David C. Laredo The assembly recited the Pledge of Allegiance. During Oral Communications, Lou Haddad addressed the Board. He suggested that the Board should contest the State Water Resources Control Board decision that groundwater in the Carmel River Basin is underflow. Director Lehman made a motion to approve the Consent Calendar with a correction to the minutes of December 13, 2004. The motion was seconded by Director Edwards and approved on a vote of 7 – 0. Approved with a correction to the minutes of December 13, 2004, page 4, item 13 – add the following text, “The motion was approved on a vote of 5 – 1. Directors Edwards, Foy, Knight, Markey and Potter voted in favor of the motion. Director Lehman was opposed. Director Pendergrass was absent.” Approved. Approved. Approved. Approved. Chair Foy presented the resolution to Director Edwards. Directors Knight, Lehman and Potter expressed appreciation for the leadership provided by Director Edwards. Director Edwards thanked the jurisdictions for their cooperation in the past year. He also thanked District staff, General Manager David A. Berger, former General Manager Fran Farina, and past Vice Chair Larry Foy for their assistance. Henrietta Stern, Project Manager, gave the presentation. An outline is on file at the District office. An outline of the presentation given by Darby Fuerst, Senior Hydrologist, is on file at the District office. He reported that California American Water (Cal Am) production from the Carmel River was 12 acre-feet under the year-to-date target established following adoption of Order 95-10 by the State Water Resources Control Board (SWRCB). Production from the Seaside Groundwater Basin was 500 acre-feet below the annual production target. Seaside Basin production is not counted against Cal Am’s annual production limit from the Carmel River basin of 11,285 acre-feet established by SWRCB Order 95-10. A summary of the presentation given by Stephanie Pintar, Water Demand Manager, is on file at the District office. The Board briefly discussed the proposed modifications. No action was taken. Ms. Pintar noted that page 47 of the Board packet should be corrected in paragraph 3, sentence 1 to read “December 17, 2005.” In addition, minutes of the March 9, 2004 Water Demand Committee meeting presented on page 51, should be replaced with minutes of the September 14, 2004 committee meeting. Copies were available at the Board meeting. A summary of the presentation given by Andy Bell, Planning and Engineering Manager, is on file at the District office. An outline of the presentation given by General Manager Berger is on file at the District office. He recommended that the Water Summit be deferred to April or May 2005, and that at the March 2005 Board meeting the Directors discuss the format and content for the Water Summit. He asked Curtis Weeks, General Manager of the Monterey County Water Resources Agency to report on the Regional Urban Water Supply (RUWS) planning process. Mr. Weeks stated that the goal of the planning group is to develop a specific set of issues for discussion and be “ as inclusive as we can” in the process and “allow everyone to participate in order to be successful.” He explained that the RUWS project might not be a single desalination facility, but a series of smaller projects in conjunction with a larger project. Mr. Weeks noted that eventually it would be necessary to bring the RUWS to the public for discussion. Presently the planning group must decide how to work with all the agencies involved and the public, and also develop a governance and management structure. District Counsel Laredo stated that the Board discussed all five items of existing litigation listed on the Closed Session agenda. No reportable action was taken. In addition, there was discussion but no reportable action on the topic listed on the agenda as Public Employee Performance Evaluation. Director Pendergrass urged the Directors to participate in the next tour of purified, reclaimed water facilities in Orange County (as yet unscheduled). He noted that the Monterey Regional Water Pollution Control Agency (MRWPCA) is working on plans to utilize purified water for aquifer recharge. He proposed that a formal agreement be developed between MRWPCA and the District on an aquifer storage and recovery project. Director Markey suggested that the aquifer storage and recovery project proposed by MRWPCA be included in the Water Supply Project Matrix at the upcoming Water Summit. General Manager Berger stated that he has asked Keith Israel, General Manager of the MRWPCA, to give a presentation on the project at the March 21, 2005 Board meeting. Chair Foy announced that he and General Manager Berger met with Curtis Weeks and Ritchie Morgantini, Chair of the MCWRA Board. Chair Foy and General Manager Berger plan to meet with the leadership of other local agencies. Directors Markey, Lehman, Knight, Pendergrass and Foy stated they received a telephone call or voice mail from Christine Gianascol Kemp requesting a meeting on the appeal. The Directors either declined to meet, or refused to respond to the voice mail message. In addition, each Board member received a letter dated January 19, 2005 from Christine Gianascol Kemp re the Bardis appeal. The letter is on file at the District office. Mr. Foy stated that he received calls from many persons regarding the Bardis appeal advising him that they would be speaking at the public hearing. Director Potter reported that he met with Ms. Kemp and Mr. Bardis on December 20, 2004 to discuss their request. He again spoke with Mr. Bardis by telephone on the afternoon of January 27, 2005 Director Markey made a motion that was seconded by Director Lehman to adopt the staff recommendation to deny the appeal and continue processing the permit as approved on November 24, 2004. The January 2005 deadlines for required signatures in the original November 2004 Conditions of Approval should be changed to March 2, 2005. The motion failed on a vote of 2 – 5. Directors Lehman and Markey voted in favor of the motion. Directors Edwards, Foy, Knight, Pendergrass and Potter were opposed. Director Edwards made a motion to adopt Option 2.B of the staff recommendation to continue the hearing until CEQA compliance is completed by the MPWMD to enable Board approval. There was no second to the motion. Director Potter offered a motion to continue the item until District staff has determined if CEQA review would be required in order to approve non-agricultural development water consumption above and beyond that described in the 1994 Grice report, as requested by Mr. Bardis. Director Edwards seconded the motion. The motion was approved on a vote of 5 – 2. Directors Edwards, Foy, Knight, Pendergrass and Potter voted in support of the motion. Directors Lehman and Markey were opposed. During the Board’s discussion of Mr. Potter’s motion, Mr. Bardis stated that he would pay for staff time to determine what type of CEQA review would be required, but he would not pay for preparation of a CEQA document such as an EIR. Director Markey proposed an amendment to the motion to continue the item until options for preparation of the CEQA review are explored including whether the County of Monterey or the District should prepare the CEQA review. There was no second to the motion. During the public hearing on this item, the following comments were directed to the Board. (1) Cristo Bardis, the applicant, took issue with Findings of Denial of Appeal Nos. 3, 5, 6, 8, 9, 10 and 11. He stated that to deny the appeal would be absurd, and it would be wrong to force him to obtain a court order that would result in a new water use factor. He refuted the District’s assertion that his request to increase the amount of water allocated to residential use could be challenged under CEQA. He offered to transfer to the County of Monterey 0.7 acre-feet of water from his entitlement, if the County would grant him 0.7 acre-feet of water for the project. Mr. Bardis stated that he would indemnify the District against a challenge to the court order, but not against a CEQA lawsuit. (2) Robert Greenwood, representing the Carmel Valley Association, spoke in support of the staff recommendation to deny the appeal. (3) Jenna Bradford, a resident of Carmel Valley, spoke in support of Mr. Bardis’ appeal request. (4) Patricia Bernardi, a resident of Carmel Valley, expressed support for the staff recommendation to deny the appeal. (5) Mike Thomas, Chairman of the Board of Trustees for All Saints Day School, said that the school is interested in providing adequate housing for the headmaster. He characterized the applicant’s request to change residential water use from 0.444 AFY to 0.50 AFY as “such a miniscule issue.” Director Knight made a motion to adopt the staff recommendation to make a finding of special circumstances with substantial uncertainty for the proposed Sunrise Assisted Living of Carmel Valley subject to conditions of approval outlined in the staff report, and the Conditions of Approval identified as Exhibit 15-B. In addition, the following modifications to the staff recommendation should be approved. (1) The District shall debit 4.8 acre-feet of water from the County of Monterey’s allocation for the project. (2) Condition No. 3 should specify that the project must be completed within 36 months of District approval with a possible twelve-month extension upon proof of due diligence by the applicant. The extension would be approved at staff level. (3) The list of conservation measures shown in Condition No. 4 should include the cistern that was identified by Mr. Lombardo. (4) Condition Nos. 9 and 10 shall specify that District staff will have access to the water meter and reports on the water use recorded at the meter. The motion was seconded by Director Edwards and approved unanimously on a vote of 7 – 0. The following comments were directed to the Board during the public hearing on this item. (1) Anthony Lombardo, representing the Gamboa family, requested that the Board support the request for special circumstances and approve an allotment of 4.8 acre-feet of water for the project. He asked the Board to modify the Conditions of Approval to allow an extension of time for completion of the project from 36 to 42 months. (2) Margaret Robbins stated that the project as presented was superior to the plan submitted three years ago. However, she expressed concerns about the mitigations proposed should water use at the site exceed the 4.8 acre-foot allotment. (3) Patricia Bernardi, resident of Carmel Valley, stated that she did not support the project, but accepted the fact that it might be approved. She disagreed with the applicant’s request for an extension of time to complete the project. (4) Donna Johnson, resident of Carmel Valley, advised the Board that Carmel Valley and the greater Carmel area lost 51 residential care beds as the result of the recent closing of two residential care facilities. She urged the Board to approve the application because of the need for a new residential care facility in the Carmel area. (5) Steve Bradford, resident of Carmel Valley, urged the Board to allocate all water necessary for operation of the Sunrise Assisted Living facility. (6) Mark Wilson, resident of Pebble Beach, stated that the Board’s decision should be based solely on the amount of water needed and how that is determined. It should not be based on the merits of the project. (7) Denny Max, a resident of Carmel Valley, expressed support for the applicant’s request to extend the time needed to complete construction of the project from 36 to 48 months. (8) Janna Bradford, a resident of Carmel Valley, spoke in support of the applicant’s request for an extension of time for completion of construction. (9) Lucretia Butler, a resident of Carmel Valley, expressed support for the project. There was no discussion of these items. The meeting was adjourned at 10:10 PM.	CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Adoption of Minutes of the Regular Board Meeting of December 13, 2004 and the Special Board Meeting of December 27, 2004 2. Adopt Resolution of Appreciation to Alvin Edwards for Service as Chair to the Board of Directors 3. Ratify Board Committee Assignments for Calendar Year 2005 4. Approve Annual Update of Investment Policy 5. Adopt Treasurer’s Report for the Month of November 2004 PRESENTATIONS 6. Present Resolution of Appreciation to Alvin Edwards 7. Water Supply Project Alternatives Update GENERAL MANAGER’S REPORT 8. Status Report on California American Water Compliance with State Water Resources Control Board Order 95-10 9. Review and Discuss Potential Modifications to the Expanded Water Conservation and Standby Rationing Plan 10. Report on Carmel River Emergency Erosion Protection Work 11. Status Report Regarding District’s Proposed “Summit Meeting” on Long-Term Water Supply Solutions ATTORNEY’S REPORT 12. Report on 5:30 PM Closed Session of the Board DIRECTOR’S REPORTS 13. Oral Reports on Activities of County, Cities, Other Agencies/Committees/ Associations PUBLIC HEARINGS 14. Consider Appeal of Hearing Officer’s Determination – Bardis Water Distribution System – APN 169-181-051 PUBLIC HEARINGS 14. Consider Appeal of Hearing Officer’s Determination – Bardis Water Distribution System – APN 169-181-051 15. Consider Determination of Special Circumstances with Substantial Uncertainty (District Rule 24-G) for Sunrise Assisted Living of Carmel Valley (APN: 015-021-036), Val Verde drive, Carmel INFORMATIONAL ITEMS/STAFF REPORTS 16. Letters Received 17. Committee Reports 18. Strategic Planning Initiatives Progress Report 19. Carmel River Fishery Report 20. Water Conservation Program Report 21. Monthly Allocation Report 22. Monthly California-American Water Company Production Report 23. Monthly Water Supply Status Report 24. Quarterly Water Supply Project Status Report 25. Quarterly Carmel River Erosion Protection and Restoration Projects Report 26. Quarterly Irrigation Program and Riparian Projects Report 27. Quarterly Water Use Credit Transfer Status Report ADJOURNMENT
	David A. Berger, Secretary to the Board

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