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EXHIBIT 1-A |
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DRAFT MINUTES Regular
Meeting Board of
Directors Monterey
Peninsula Water Management District August 18, 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 Potter – Directors Absent: All present 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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No comments. |
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ORAL COMMUNICATIONS |
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On a motion by Director
Pendergrass and second by Director Markey, the Consent Calendar items were
approved unanimously on a vote of 7 – 0. |
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CONSENT CALENDAR |
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Approved. |
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1. |
Consider
Adoption of Minutes of the July 21, 2008 Regular Board Meeting |
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Approved. |
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2. |
Consider Expenditure of Budgeted Funds to Remove
Instream Concrete Slab and Participate in |
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Approved. |
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3. |
Consider Expenditure of Budgeted Funds to Contract
with the |
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Approved. |
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4. |
Consider Extension of Cooperative Agreement with the
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Approved. |
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5. |
Receive Report on a
Strategy for Distribution of Proposition 84 and 1E Bond Funds to the |
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Approved. |
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6. |
Receive Report on
Potential Sources for Federal and/or State Funding for |
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Approved. |
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7. |
Consider Approval of Fourth Quarter Investment
Report |
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PRESENTATIONS |
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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. |
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8. |
Water Supply Project Alternatives Update |
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GENERAL MANAGER’S REPORT |
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9. |
Status Report on |
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General Manager Fuerst
announced the change to the Board meeting schedule. |
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10. |
Announce
that September 15, 2008 Board Meeting has been Rescheduled to Monday,
September 22, 2008 at 7 PM |
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ATTORNEY’S REPORT |
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District Counsel Laredo
reported that he provided a status report on Item 3.C. and presented a
partial settlement agreement with California American Water (CAW) that if
adopted would be submitted to the Public Utilities Commission (PUC). On a motion by Edwards and second by
Markey, the Board ratified the settlement agreement unanimously on a vote of
7 – 0. The settlement agreement can be
viewed on the District’s website. It
specified that CAW would withdraw support for the Stand-Alone Water
Conservation Plan it had developed. In
addition, the District would amend Regulation XV of the Rules and Regulations
that pertains to the Expanded Water Conservation and Standby Rationing
Plan. Public Hearing item 13, on the
August 18, 2008 agenda complied with that requirement. Counsel Laredo also reported that he
provided a status report to the Board on item 3.H. |
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11. |
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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Vice Chair Markey reported
that she and Chair Lehman met with Commissioner Bohn of the PUC and members
of the Division of Ratepayer Advocates to discuss applications pending before
the PUC. The purpose of the meeting
was to impress upon the PUC that the community needed a timely solution to
the water supply situation.
Commissioner Bohn indicated that the EIR on CAW’s Coastal Water
Project should be completed by the end of 2008. Director Doyle reported that she met with
the Pacific Grove Property Owners on Water Equity and Conservation. She plans to monitor the progress of the
group’s activities related to the City of |
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12. |
Oral Report on Activities of County, Cities, Other
Agencies/Committees/ Associations |
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PUBLIC HEARINGS |
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Motion 1 – Director
Edwards offered a motion that was seconded by Director Markey, to adopt first
reading of the ordinance. Within 30
days, the Board should consider second reading and adoption of a modified ordinance
that would include the following. (1)
Add new text to Section Three. A, “Hidden Hills shall mean the California
American Waters (Cal-Am) Subunit as described in the purchase agreement
between Carmel Valley Mutual Water Company and Cal-Am recorded July 8, 1994,
Document # 49389 Reel 3125 Page 696.
MPWMD recognizes the validity of this agreement and this Ordinance
does not modify that contract (2) The
first sentence of Sections 5 C and 6 C shall be amended by adding the words
“and Hidden Hills” after the words “Satellite Systems.”(3) The reference to
“urgency effect” shall be deleted from Section Twelve, and the effective date
of the ordinance shall also be modified.
The motion was adopted on a roll-call vote of 5 – 2. Directors Doyle, Edwards, Lehman, Markey
and Pendergrass voted in favor of the motion.
Directors Brower and Potter were opposed. Substitute Motion – Director
Potter proposed a motion that was seconded by Director Brower, to submit an
amended ordinance for first reading at the September 22, 2008 Board
meeting. The following changes should
be incorporated into the ordinance. (1) Add new text to Section Three. A,
“Hidden Hills shall mean the California American Waters (Cal-Am) Subunit as
described in the purchase agreement between Carmel Valley Mutual Water
Company and Cal-Am recorded July 8, 1994, Document # 49389 Reel 3125 Page
696. MPWMD recognizes the validity of
this agreement and this Ordinance does not modify that contract. (2) The first sentence of Sections 5 C and
6 C shall be amended by adding the words “and Hidden Hills” after the words
“Satellite Systems.”(3) The reference to “urgency effect” shall be deleted
from Section Twelve, and the effective date of the ordinance shall also be
modified. (4) The term “superior, unimpaired water rights” should be retained
in the ordinance and the following sentence should be added to the
description of the “trigger” for water rationing under stages 4 through 7 in
Rule 164.B.1, Rule 165. B.1, Rule 166.B.1, and Rule 167.B.1, “Alternative
Production Allocations resulting from the Amended Decision and Final Judgment
in California American Water Company v. City of Public Comment Received: (1)
Craig Anthony, General Manager of CAW, expressed support for adoption of
Ordinance No. 135. He stated that
water conservation measures should apply to all CAW customers. He noted that in 2008, 6.9 acre-feet of
water was transferred from the Hidden Hills system to the Toro system. CAW will pay the Watermaster a
replenishment fee for the water that was sent to the Toro system. (2)
Lloyd Lowrey of Noland Hamerly Etienne and Hoss, addressed the Board on
behalf of the Hidden Hills Subunit Ratepayers Association. A summary of his comments is on file at the
District office and can be viewed on the District’s website. He requested that the ordinance be modified
to include a definition of the Hidden Hills system. He stated that the Association would accept
Ordinance No. 135 if it was modified as suggested. (3) Robert Greenwood,
addressed the Board on behalf of the Carmel Valley Association. He asked if the entire |
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13. |
Consider
Adoption of Ordinance No. 135 with Urgent Effect – Include the Inland
Subareas of the |
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At 9 PM the Board recessed and then reconvened at
9:05 PM. |
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Director Edwards made a
motion that was seconded by Director Markey, to approve the staff recommendation
to adopt the Negative Declaration and Ordinance No. 134. The motion was approved on a unanimous
roll-call vote of 7 – 0. Public comment
received. (1) Anthony Lombardo of Lombardo and Gilles, representing Eric
Robinson, requested that Ordinance No. 134 be amended to specify that the
term “superior, unimpaired water rights” should be retained in the ordinance,
and that an additional sentence be added as outlined in his letter to the
Board dated August 15, 2008. (2) Robert Greenwood, representing the Carmel
Valley Association, asked for clarification of Finding 25 of Ordinance No.
134 which states the Board can rescind Stage 5 water rationing and above by
resolution. (3) George Riley, representing Citizens for Public Water,
suggested that if water rates were increased during a rationing period, the
increase should be in place for a minimum of six months. (4)
Craig Anthony, representing CAW, expressed support for adoption of
Ordinance No. 134. (5) Todd Evers, a member of the
Pasadera Homeowners Association Board of Directors, asked if a process was in
place to provide notification about the ordinance to property owners that
would be affected by its adoption. |
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14. |
Consider Second A.
Consider Adoption of Negative Declaration in
Compliance with B.
Consider Adoption of Ordinance No. 134 |
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Director Markey offered
a motion that was seconded by Director Edwards, to adopt Ordinance No. 136
with the following amendments and clarifications. (1) Rule 40.B.1, second sentence, add the
word “physical” in front of the words “water supplies.” (2) Rule 40.B.2, add the word “physical” in
front of the words “water supplies.” (3)
Rule 40.B.3. line 1, add the word “physical” in front of the words “water
supplies” (4) Rule 40.B.3, line 7, add the word “physical” in front of the
words “water supplies.” (5) Rule 40.
B. 3, line 8, add the word “not” in front of the words “sufficient to
meet.” (6) Page 5 of the ordinance,
reference to Section C should be changed to Section “D.” (7) Rule 40.B.4.
should include Option A text shown on page 4 of the ordinance, “Where a Water
Distribution System has reached or exceeded its System Capacity or Expansion
Capacity limit, as modified, the General Manager shall not receive or process
any application for a permit to expand or extend that system until the
further amendment, based upon credible expert analysis, is made to the System
Capacity or Expansion Capacity, or both, for that Water Distribution System.” (8) Rule 40.D.4 shall be amended to include
Option B text shown on page 5 of the ordinance, “Suspend receipt of Expansion
or Extension applications for any system that exceeded its Pro Rata Expansion
Capacity within the preceding twelve (12) months.” The motion was adopted
unanimously on a roll-call vote of 7 – 0. Public comment
received. (1) Craig Anthony, representing CAW, asked where he could find a
list of the number of water distribution systems within the District. (2) Anthony Lombardo of Lombardo and
Gilles, representing Dennis Chambers, asked how adoption of Ordinance No. 136
would affect undeveloped lots in the Ryan Ranch Water Distribution System. If water use in that system were considered
separate from the larger CAW system, would a moratorium on processing of
water permits be implemented in Ryan Ranch?
(3) Sheri Damon of Lombardo
and Gilles, representing the Pasadera Homeowners Association, requested that
the Board defer consideration of this ordinance until after the Policy
Advisory Committee has met to develop a recommendation. (4) Christine Kemp of Noland Hamerly
Etienne and Hoss, representing Curtis Angton, requested that the Board
incorporate Rule 40.B.4 Option B into the ordinance. That would allow processing of water permit
applications received prior to a determination that the System or Expansion
Capacity has been exceeded. (5) Lloyd Lowrey of Noland Hamerly
Etienne and Hoss, representing John Anderson.
He requested that the Ordinance be modified as follows. (A) Rule 40.B.1, line eight, add the word
“physically” in front of the word “sufficient.” (B) Rule
40.B.2., line 2, add the word “physically” in front of the word “sufficient.”
(C) Rule 40.B.3., line 7, add the word “physically” in front
of the word “available.” (D) Add the words “of physical capacity” at the end
of Rule 40.B.3. (E) Rule 40.B.4,
Option A, second line, add the word “physically” in front of the words
“reached or exceeded.” (F) Rule
40.B.4, Option B, second line, add the word “physically” in front of the
words “reached or exceeded.” (G) Rule 40.D, first line, add the word “physically”
in front of the word “exceeds.” (6) Geoffrey
de Sibert, President of the York Hills Homeowners Association, expressed
agreement with comments made by Lloyd Lowrey. (7) Ernest Lostrom,
property owner in Ryan Ranch, stated that it would be unfair to prohibit
persons that own property in Ryan Ranch from developing their lots. (8) Henry Ruhnke, of Wald Ruhnke &
Dost Architects LLP, spoke on behalf of Sam Downing of Salinas Valley
Memorial Healthcare System. He
expressed opposition to imposition of a water permit moratorium in Ryan
Ranch. (9) George Riley stated that he
appreciated the Board’s effort to make a system-wide decision. He noted that the proposed rules will
result in a more fair distribution of the water resource. (10)
Roger Manley, a resident of Pasadera, urged the Board to provide leadership on
promoting water conservation. |
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15. |
Consider
Second |
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The meeting recessed at 10:05 and
reconvened at 10:10 PM. Director
Potter departed from the meeting prior to consideration of Action Item 16. |
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ACTION ITEMS |
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Director Brower offered
a motion that was seconded by Director Edwards, to amend the contract with Camp
Dresser & McKee Inc. and Jones & Stokes Associates and authorize
preparation of the next phase of studies (Complete Policy Review for
Projects) for a not-to-exceed cost of $19,000. The motion was approved on a unanimous 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. During the public comment
period on this item, George Riley asked if the Board should consider pursuit
of a smaller project, or if the 95-10 Desalination Project should be
developed in place of the desalination project proposed by the City of Sand
City. |
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16. |
Receive
Constraints Analysis Regarding MPWMD 95-10 Desalination Project |
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On a motion by Director
Brower and second by Director Markey, the Board voted to establish a $2.5
million line of credit with Bank of No comments were directed
to the Board during the public comment period on this item. |
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17. |
Consider Approval to
Secure a $2.5 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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18. |
Letters Received |
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19. |
Committee
Reports |
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20. |
Strategic
Plan Update |
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21. |
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22. |
Water
Conservation Program Report |
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23. |
Monthly
Allocation Report |
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24. |
Monthly
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25. |
Monthly
Water Supply Status Report |
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26. |
Semi-Annual
Ground Water Quality Monitoring Report |
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The meeting was adjourned
at 11 PM. |
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ADJOURNMENT |
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