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EXHIBIT 1-A |
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DRAFT MINUTES Regular
Meeting Board of
Directors Monterey
Peninsula Water Management District August 15, 2011 |
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The meeting was called to
order at 7:00 p.m. in the District Conference Room. |
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CALL TO ORDER/ROLL CALL |
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Directors Present: Robert S. Brower, Sr., Chair
-- Division 5 Dave Potter, Vice Chair –
Monterey County Board of Supervisors (arrived at 7:10 pm) Brenda Lewis – Division 1 Judi Lehman – Division 2 Kristi Markey – Division 3 David Pendergrass – Mayoral
Representative Directors Absent: None General Manager present: District Counsel present: David Laredo |
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The assembly recited the
Pledge of Allegiance. |
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PLEDGE OF ALLEGIANCE |
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Chair Brower announced that
the order in which agenda items would be considered would be modified. Agenda item 16 would be considered before
item 15. |
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(1)
The
following comments were directed to the Board during Oral Communications. (1)
Carlos Ramos, representing the Latino Water Coalition, read a letter
dated August 15, 2011, on file at the District office and available on the District’s
website. Mr. Ramos stated that the
Coalition would provide constructive input to the Board within the context of
social justice issues. He noted that
water is critical to the utilization of economic opportunities in an
environmentally and socially responsible manner. (2)
Helen Rucker, requested that Brenda Lewis, Division 1 Director, be
authorized to attend training for Board members in order to assume her
responsibilities in representing her constituents in Division 1. (3)
Nelson Vega, apartment owner, stated that employment opportunity for
persons living in the Seaside and Sand City areas is directly related to
water supply. (4) Mary Claypool, a resident of Seaside, requested that Director
Lewis’ representation on Board committees be increased so that the interests
of the Division 1 constituency will be fully represented. |
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ORAL COMMUNICATIONS |
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On a motion by Director
Pendergrass and second of Director Potter, the Consent Calendar was adopted
unanimously on a vote of 7 – 0. |
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CONSENT CALENDAR |
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Adopted. |
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1. |
Consider Adoption of Minutes of the July 18, 2011
Regular Board Meeting |
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Adopted. |
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2. |
Consider Approval of Fourth Quarter Fiscal Year
2010-11 Investment Report |
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Adopted. |
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3. |
Consider Expenditure of Budgeted Funds for Confined
Space Training |
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Adopted. |
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4. |
Consider Expenditure of Budgeted Funds to Contract
with the California Conservation Corps for Fall 2011 Vegetation Management Activities |
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Adopted. |
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5. |
Consider Expenditure of Budgeted Funds for Purchase
of Water Conservation Equipment |
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PRESENTATIONS |
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Chair Brower presented Mr.
Fuerst with a plaque and a gift from the Board of Directors. He thanked Mr. Fuerst for his exemplary
work on behalf of the Board and the community and stated that he was pleased
to call Mr. Fuerst a friend. Noelle White presented a framed certificate
of recognition to Mr. Fuerst on behalf of Assembly member Bill Monning. Mr. Fuerst thanked the current Board of
Directors, previous Boards, staff, District Counsel and the public for their
support over the years. He stated that
it was an honor and privilege to work for the District, and to live on the
Monterey Peninsula and work in the watershed. |
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6. |
Presentations to General Manager Darby Fuerst Upon
his Retirement after 25 Years of Service to the MPWMD |
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Chair Brower introduced
David J. Stoldt to the assembly and announced that he would begin work with
the District on September 1, 2011. |
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7. |
Introduce David Stoldt, Incoming General Manager |
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Stephanie Pintar, Water
Demand Manager, presented the report. A summary is on file at the District office
and can be viewed on the District’s website. |
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8. |
Water Conservation Program Report |
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Henrietta Stern, Project
Manager, presented the report. A
summary is on file at the District office and can be viewed on the District’s
website. In response to a question
from the Board, Ms. Stern advised that the moratorium on drilling of wells in
fractured rock formations established by the County of Monterey in
unincorporated areas of the County within the MPWMD boundaries has been
extended to May 2012. Completion of
the MPWMD study of fractured rock wells within the District boundaries may be delayed to September or October
2011. |
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9. |
Update on Development of Water Supply Project
Alternatives Including Recycled Water |
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GENERAL MANAGER’S REPORT |
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10. |
Status Report on |
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ATTORNEY’S REPORT |
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District Counsel, David
Laredo, stated that for items A through I listed on the Closed Session
agenda, he provided a status report to the Board and general direction was
given to him. No specific reportable
action was taken. Mr. Laredo
congratulated Mr. Fuerst on his retirement, and thanked him for all the
assistance he provided throughout the years they worked together. |
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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 54956.9 (a)) |
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A. |
Application
of California American Water Company to CPUC Application No.10-01-012 –Mitigation
Cost Reimbursement |
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B. |
MPWMD v. State Water Resources
Control Board; Superior Court Case No. 1-10-CV-163328 |
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C. |
Sierra Club v. MPWMD,
Security National Guaranty & California American Water, Real Parties
(Superior Court Case No. M 108149) |
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D. |
Application of California
American Water Company to CPUC, Application No. 10-07-007 – General Rate Case |
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E. |
Application of California
American Water Company to CPUC, Application No. 10-09-018-San Clemente Dam
Removal |
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F. |
Application of California
American Water Company to the CPUC (Application No. 10-09-018) – San Clemente
Dam Removal Project and Cost Recovery (SCD) |
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G. |
California-American Water
Company v. Monterey Peninsula Water Management District. Monterey County
Superior Court Case No: M113336 |
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H. |
Application of California American Water to the CPUC (Application No.
04-09-019) Coastal Water Project |
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I. |
Application of California-American Water to the CPUC (Application No.
10-04-019) Sand City Desal Lease |
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DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON
TRIPS, CONFERENCE ATTENDANCE AND MEETINGS) |
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No reports. |
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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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Director Potter offered
a motion that was seconded by Director Brower, to grant the variance from
District Rule 23-B-2-a and adopt the Draft Findings of Approval submitted as
Exhibit 13-E with one amendment , that an in-line water meter be installed
for the caretaker unit and that the water use be monitored. At the request of
Director Markey, the motion was amended by Director Potter on a second by
Director Brower to request that the Rules and Regulations Review Committee
consider establishment of a rule that would specify a period of time in which
a variance can be filed. The amended
motion was adopted on a vote of 6-1.
Directors Potter, Brower, Markey, Doyle, Pendergrass and Lewis voted
in favor of the motion. Director
Lehman was opposed. Report of Ex Parte
Communications: Director Pendergrass
reported that the applicant contacted him about the application. Directors Brower and Potter reported that
they met with the applicant on the property at 10 Vista Ladera. The following comments were
directed to the Board during the public hearing on this item. (1) Elaine Rankin, the applicant, requested
that the Board favorably consider her request for a variance, as she is on a
fixed income and could not afford the $65,000 that would be required to meter
the caretaker unit. According to Ms.
Rankin, her husband (now deceased) made decisions related to construction of
the caretaker unit. At that time, she
was not aware that a water permit was needed for the unit. (2)
Claude Hutchison recommended that
the Board grant the variance request. (3) Todd Norgaard suggested that if
the variance were to be granted, the Board establish conditions that would
require installation of the water meter upon any future sale of the property.
(4) Carlos Ramos urged the Board to utilize “common sense” in their
deliberations on this matter. |
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13. |
Consider Request for
Variance from District Rule 23-B-2-a Requiring a Separate Water Meter for
Each Water User at 10 Vista Ladera, Carmel Valley (APN 187-111-027) –
Applicant: Elaine Rankin |
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Director Doyle offered a
motion that was seconded by Director Potter to adopt the first reading of
Ordinance No. 149. Director Markey offered
a friendly amendment to reduce the amount of lawn available for the rebate
from 5,000 square feet to 2,000 square feet.
Directors Doyle and Potter agreed to the amendment. The amended motion was adopted by the
Board unanimously on a vote of 7 – 0. During the public hearing
on this item, Dan Presser addressed the Board. He requested that a report on the status of
Cal-Am’s efforts to reduce the amount of non-revenue water use be presented. |
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14. |
Consider First Reading of Ordinance No. 149, An
Ordinance of the Board of Directors Amending the Rebate Program |
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The Board determined that item 16 would be
considered prior to item 15. However,
the report of the proceedings is recorded
as listed on the September 15, 2011 agenda. |
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ACTION ITEMS |
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On a motion by Director
Markey and second of Director Doyle, the Board voted to refrain from
establishment of a committee to assess the WaterPlus proposal for public
ownership of California-American Water.
The motion was adopted on a vote of 5 – 2. Directors Brower, Doyle, Markey, Potter and
Pendergrass voted in favor of the motion.
Directors Lehman and Lewis were opposed. The following comments were
directed to the Board during the public comment period on this item. (1)
Ron Weitzman, representing
WaterPlus, stated that it would be unwise for the Board to decide against
establishment of a committee to review the WaterPlus proposal. He reasoned that the Board’s focus on
solving the water supply situation should not outweigh the equally important
need for containment of water costs. (2)
Marc Beique asked why the Board had not demanded that the
desalination component of the Regional Water Supply Project be submitted to
the voters for approval. |
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15. |
Consider Formation of an Ad-Hoc Committee to Assess
WaterPlus Proposal for Public Ownership of California-American Water,
Monterey District |
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DISCUSSION ITEMS |
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The report was presented
Joe Conner, of Baker Donaldson, National Counsel for California American
Water, who presented slides 1 through 22 and 28. Kevin Tilden, Director of Communications and External
Affairs for California American Water, presented slides 24 through 27. The presentation focused on the eminent
domain process, timeline and the associated cost. A summary of the presentation is on file at
the District office, or can be viewed on the District’s website. The Board received public comment and
discussed the presentation. No action
was taken. The following comments were
directed to the Board during the public comment period on this item. (1)
Veronica Morales, owner of San
Pablo Bakery in the City of Seaside and
representing the Latino Business Owners Association, presented a statement in Spanish. She asked that the Board focus on the job
of managing the water supply and not undertake the purchase of Cal-Am. (2)
Harvey Billing, representing
WaterPlus, expressed disagreement with some of the statements made by
Cal-Am’s spokespersons. He urged the
Board to study this issue more thoroughly, and stated that the cost to the
ratepayer for continued Cal-Am ownership of water infrastructure will be
significant. (3) Brian LeNeve, President of the Carmel River Steelhead
Association, expressed opposition to public purchase of Cal-Am and described
the proposal as a distraction to solving the water problem. (4)
Lorin Letendra, President of the
Carmel River Watershed Conservancy, urged the Board to reject the WaterPlus
proposal. He expressed hope that the
Regional Water Project could move forward in order to prevent the potentially
disastrous effects of SWRCB Cease and Desist Order WR 2009-0060. (5) Nelson Vega, a resident of Monterey, stated that any effort to
purchase Cal Am will distract from efforts to develop a water supply. He urged the Board to focus on developing a
“real” water source. (6) George
Riley, representing Citizens for Public Water, challenged the Board to
decide when the appropriate time would be to begin a discussion of the
WaterPlus proposal in order to identify the issues related to public
ownership of the water system. (7) Dan Presser expressed support for
establishment of a committee to study the WaterPlus proposal. He stated that water rates must be
affordable for rate payers in Division 1.
(8) Moe Ammar, President of the Pacific Grove Chamber of Commerce,
spoke in support of private ownership of the water distribution system. He noted that private companies such as
Cal-Am provide financial support for community events. In addition, municipal
governments are increasingly looking to privatize functions previously
undertaken by city/county employees.
(9) Dale Ellis, Monterey
County Hospitality Association, read a letter signed by Janine M. Chicourrat,
President of the Association, that is on file at the District office and can
be viewed on the District’s website.
He encouraged the Board to refrain from moving forward on formation of
a committee to study the WaterPlus proposal.
(10) Marc Beique, resident of Monterey, submitted a statement dated
August 15, 2011 on file at the District office that can also be viewed on the District’s website. He asked why the Board would consider
taking a stance in opposition to Cal-Am. He asked why the District has not
worked on behalf of the ratepayers. (11) John Narigi, Co-Chair of the
Monterey County Hospitality Association’s Coalition of Peninsula Businesses, submitted a letter dated August 15,
2011. He expressed opposition to the
District spending time and money to form a citizen’s advisory committee to
investigate the purchase of Cal Am. (12)
Paul Bruno, representing the Monterey Peninsula Taxpayers Association,
questioned the accuracy of cost estimates submitted by WaterPlus. He urged the Board to stay focused on water
supply planning and SWRCB Cease and Desist Order WR 2009-0060. (13) Paul
Bruno, speaking as an individual, cautioned the Board to stay on course
and not be distracted by the WaterPlus proposal. (14) Andy Clark expressed
disagreement with the cost estimates submitted by WaterPlus. He noted that the substantial legal and
appraisal fees to purchase Cal-Am would ultimately be paid by the ratepayers. (15)
Marianne Leffel, Board President of the Monterey County Business Council,
stated that water availability is critical to increasing employment
opportunities. She urged the Board to
support the business community by increasing the water supply. (16) Kevin Stone, representing the
Monterey County Association of Realtors and the Monterey Peninsula Chamber of
Commerce, stated that the Board’s focus should be on developing a viable
water source. He requested that the
proposal to form a committee be tabled.
(17) Mary Claypool stated
that the Board must end its pattern of continual planning and analysis. A water source must be developed to
facilitate job growth. (18) Dick Rotter asked the audience
to consider that Cal-Am will build a $400 million pipeline from Marina to
Seaside to pump water into the Seaside Aquifer, but that costly effort will
provide no new water for the community.
(19) Claude Hutchison,
part-time resident of Carmel Valley, urged the Board to form a subcommittee
to obtain the facts related to the WaterPlus proposal and do what is best for
the ratepayers. (20) Ron Weitzman, representing WaterPlus, endorsed the proposal
to form a committee that would provide a forum to discuss all points of view
related to public ownership of the Cal-Am water distribution system. (21)
Carlos Ramos, representing the Latino Water Coalition, requested that the
Board refrain from moving forward on formation of a committee to study the
WaterPlus proposal. (22) Ron Chesshire, a resident of
Monterey, expressed concern over the increase in water rates that would
result from the purchase of Cal-Am. He
asked that the Board refrain from establishment of a committee to study the
WaterPlus proposal. |
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16. |
Presentation by California
American Water regarding WaterPlus
Proposal for Public Ownership of California American Water, Monterey District |
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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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17. |
Letters Received |
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18. |
Committee
Reports |
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19. |
Carmel River Fishery Report for June 2011 |
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20. |
Water Conservation Program Report |
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21. |
Monthly
Allocation Report |
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22. |
Monthly
California American Water Production Report |
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23. |
Monthly Water Supply Status Report |
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24. |
Quarterly Water Use Credit Transfer Status Report |
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The meeting was adjourned
at 10:25 pm. |
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ADJOURNMENT |
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David J. Stoldt, Secretary to the Board
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