This meeting has been noticed according to the Brown Act rules. The Board of Directors meets regularly on the third Monday of each month. The meetings begin

at 7:00 PM.

AGENDA

Regular Meeting

Board of Directors

Monterey Peninsula Water Management District

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Thursday, January 27, 2011

5:30 PM – Closed Session

Tarpy’s Roadhouse Restaurant, Tack Room

2999 Monterey Salinas Highway, Monterey, Ca

7:00 PM – Regular Board Meeting

Conference Room, Monterey Peninsula Water Management District

5 Harris Court, Bldg G, Monterey, CA

Staff notes for the 7 PM agenda items will be available on the District web site at http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2011/2011.htm

by 5 PM on Friday, January 21, 2011.

The 7 PM Meeting will be televised on Comcast Channel 25 & 28. Refer to broadcast schedule on page 4.

5:30 PM

Closed Session

As permitted by Government Code Section 54956 et seq., the Board may adjourn to closed or executive session to consider specific matters dealing with pending or threatened litigation, certain personnel matters, or certain property acquisition matters.

Public Comment – Members of the public may address the Board on the item or items listed on the Closed Session agenda.

Adjourn to Closed Session

Conference with Legal Counsel – Existing Litigation (Gov. Code 54956.9 (a))

Application of California American Water Company to the California Public Utilities Commission Application No. 04-09-019 – Coastal Water Project

Application of California American Water Company to CPUC Application No.10-01-012 –Mitigation Cost Reimbursement

Application of California American Water Company to CPUC Application No. 10-07- 007 – General Rate Case

Amended Application (U210W) of California American Water Company to CPUC Application No. 10-05-020 -- Order Authorizing Moratorium in Monterey District

Application of California American Water Company to CPUC Application No. 10-09-018 – San Clemente Dam Removal

Board of Directors

Robert S. Brower Sr., Chair – Division 5

David Potter, Vice Chair – Monterey County

Board of Supervisors

Vacant – Division 1

Judi Lehman – Division 2

Kristi Markey, Chair – Division 3

Regina Doyle – Division 4

David Pendergrass – Mayoral Representative

General Manager

Darby W. Fuerst

This agenda was posted at the District office at 5 Harris Court, Bldg. G Monterey on Friday, January 21, 2011. Staff reports regarding these agenda items will be available for public review on Monday, January 24 through Thursday, January 27 at the District office and at the Carmel, Carmel Valley, Monterey, Pacific Grove and Seaside libraries. After staff reports have been distributed, if additional documents are produced by the District and provided to a majority of the Board regarding any item on the agenda, they will be available at the District office during normal business hours, and posted on the District website at http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2011/2011.htm. Documents distributed at the meeting will be made available in the same manner. The next regular meeting of the Board of Directors is scheduled for Thursday, February 24, 2011.

MPWMD v. State Water Resources Control Board; Superior Court Case No. 1-10-CV-163328

California American Water v. State Water Resources Control Board, Superior Court Case No. M102097

California American Water v. MPWMD (Ryan Ranch) (Superior Court Case No. M 101255)

Sierra Club v. MPWMD, Security National Guaranty & California American Water, Real Parties (Superior Court Case No. M 108149)

Water Rights: SWRCB 7130-B

Water Rights: SWRCB Permit 20808

Conference with Real Property Negotiators (Gov Code 54956.8)

Property: 999 Coe Avenue, Seaside, CA 93955

Agency Negotiators: Darby W. Fuerst & David C. Laredo

Adjourn to 7 PM Session

7 PM -- Regular Board Meeting

CALL TO ORDER/ROLL CALL

PLEDGE OF ALLEGIANCE

ORAL COMMUNICATIONS: Anyone wishing to address the Board on Consent Calendar, Information Items or matters not listed on the agenda may do so only during Oral Communications. Please limit your comment to three (3) minutes. The public may comment on all other items at the time they are presented to the Board.

CONSENT CALENDAR: The Consent Calendar consists of routine items for which staff has prepared a recommendation. Approval of the Consent Calendar ratifies the staff recommendation. Consent Calendar items may be pulled for separate consideration at the request of a member of the public, or a member of the Board. Following adoption of the remaining Consent Calendar items, staff will give a brief presentation on the pulled item. Members of the public are requested to limit individual comment on pulled Consent Items to three (3) minutes.

Consider Adoption of Minutes of the December 13, 2010 Regular Board Meeting

Consider Adoption of Resolution No. 2011-03 Suspending Receipt of Lawn Removal Rebate Applications until Rebate Program Funding is Renewed and Program Guidelines have been Revised

Consider Expenditure of Budgeted Funds to Contract for Temporary Clerical Help in the Water Demand Division

Consider Expenditure of Matching Funds for the Integrated Regional Water Management Plan Planning Grant

Review and Accept Independent Audit Report for Fiscal Year 2009-2010

Consider Approval of Annual Update of Investment Policy

Consider Adoption of Treasurer's Report for August 2010

PRESENTATIONS

Presentation to Outgoing Board Chair, Regina Doyle

Monthly Report from California American Water General Manager, Craig Anthony

10.

Water Conservation Program Report

11.

Update on Development of Water Supply Project Alternatives Including Recycled Water

GENERAL MANAGER’S REPORT

12.

Status Report on California American Water Compliance with State Water Resources Control Board Order 2009-0060 and Seaside Groundwater Basin Adjudication Decision

13.

Status Report on CPUC Proceedings Relating to the Regional Water Project

14.

Status Report on Cal-Am Application 10-01-102 – Collection of MPWMD User Fee to Fund Carmel River Mitigation Program and Aquifer Storage and Recovery Project

ATTORNEY’S REPORT

15.

Report on 5:30 PM Closed Session of the Board

DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS)

16.

Oral Reports on Activities of County, Cities, Other Agencies/Committees/Associations

Ø Document submitted by Director Lehman

PUBLIC HEARINGS – Public comment will be received on each of these items. Please limit your comment to three (3) minutes per item.

17.

Consider First Reading of Ordinance No. 147 – An Ordinance of the Monterey Peninsula Water Management District Amending Regulation XV, Expanded Water Conservation and Standby Rationing Plan, to Implement Water Banking in Stages 5 – 7 Water Rationing

Action: The Board will consider first reading of an ordinance that amends the Expanded Water Conservation and Standby Rationing Plan to reinstate Water Banking during Water Rationing. Water Banking was suspended while California American Water reprogrammed its billing system.

Ø MPWMD Presentation

ACTION ITEMS – Public comment will be received on each of these items. Please limit your comment to three (3) minutes per item.

18.

Consider Contract for Recruitment of General Manager

Action: The Board will consider contracting with one of the executive search firms who submitted proposals to conduct a recruitment for the General Manager position.

Ø MPWMD Presentation

19.

Consider Adoption of Resolution 2011-01 Modifying Rule 162 -- Regulatory Water Production Targets for California American Water Systems

Action: The Board will consider modifications to the Regulatory Water Production Targets in Tables XV-1 and XV-2 of Rule 162. The modifications are necessary to reflect the carryover credit that the Seaside Basin Watermaster determined is available in Water Year 2011.

Ø MPWMD Presentation

20.

Consider Adoption of Resolution 2011-02 -- Amending Resolution 2010-16 Calling for a May 3, 2011 Election in Voter Division 1

Action: The Board will consider adoption of a resolution that specifies an all-mail ballot for the May 3, 2011 election, and procedures for selection of a Division 1 representative should only one person file for candidacy.

Ø MPWMD Presentation

21.

Consider Reimbursement Agreement between Monterey Peninsula Water Management District and California American Water for Construction of Seaside Middle School Aquifer Storage and Recovery (ASR) Well #1

Action: The Board will consider approval of a reimbursement agreement between MPWMD and Cal-Am for construction of the first ASR well at the Seaside Middle School site. Consideration of this item is dependent on approval of a long-term easement to the Seaside Middle School site by the Monterey Peninsula Unified School District Board (MPUSD), which is scheduled for January 24, 2011.

Ø MPWMD Presentation

Ø Document submitted by MPWMD staff

INFORMATIONAL ITEMS/STAFF REPORTS The public may address the Board on Information Items and Staff Reports during the Oral Communications portion of the meeting. Please limit your comments to three minutes.

22.