January 31, 2008

Call to Order

The meeting was called to order at 7 PM.

Committee Members Present

City of Carmel-by-the-Sea PAC: Paula Hazdovac, Vice Mayor TAC: Sean Conroy

City of Del Rey Oaks PAC: Joe Russell, Mayor TAC: Absent

City of Monterey PAC: Chuck Della Sala, Mayor TAC: Chip Rerig

City of Pacific Grove PAC: Dan Cort, Mayor TAC: Sarah Hardgrave

City of Sand City PAC: David Pendergrass, Mayor TAC: Steve Matarazzo

City of Seaside PAC: Tom Mancini, Councilmember TAC: Diana Ingersoll

County of Monterey PAC: Absent TAC: Luis Osorio

Monterey Peninsula PAC: Absent TAC: Benedict Stuth

Airport District

Monterey Peninsula Water PAC: Judi Lehman, Board Chair/PAC Chair

Management District

Committee Members Absent

County of Monterey PAC: David Potter

City of Del Rey Oaks TAC: Ron Langford

Monterey Peninsula PAC: Dick Searle

Airport District

District Staff Members Present:

Stephanie Pintar, Water Demand Manager

Arlene Tavani, Executive Assistant

District Counsel Present:

Heidi Quinn

Comments from the Public

No comments were directed to the committee.

Action Items

1. Discuss Proposed Draft Ordinance – Adding a Process for Sub-Potable Water Use Credits to the District’s Rules and Regulations

The committee discussed the issue and District staff responded to questions. Following the discussion, Chair Lehman referred the following items to TAC for further consideration. (1) Preparation of an environmental impact report (EIR) on potable and sub-potable water credits. (2) Cost sharing plan for payment of an EIR based on beneficial use. (3) Consider reducing water credit set aside from 25 percent to 15 percent. (4) Allow credit for retirement of landscaped areas. (5) Possible legal costs related to adoption of an ordinance. (6) Indemnification by jurisdictions. (7) Report from District staff on how the one-for-one provision in State Water Resources Control Board (SWRCB) Order 95-10 and the Draft Cease and Desist Order (CDO) issued against California American Water (CAW) will affect development of sub-potable water supplies and the designation/transfer of water credits.

During the discussion, the following comments were made by committee members. (1) The Board should consider expanding the scope of the EIR to focus on potable water transfers, and include a section on sub-potable water credits/transfers. (2) The EIR could be funded proportionately based on the benefit that each jurisdiction would receive from sub-potable water sources. Some jurisdictions would receive water from the 300 acre-feet planned to be developed by the Monterey Regional Water Pollution Control Agency (MRWPCA), but other jurisdictions would receive no benefit. (3) How would SWRCB Order 95-10 and the subsequent draft CDO affect opportunities to reuse water from the MRWPCA project? Would the one-for-one provision preclude any of that water from being allocated to new uses? (4) The conservation savings of 25 percent for sub-potable credits should be reduced to 15 percent, as is required for potable water credits.

The following comments were received during the public comment period on this item. (1) Tom Bunosky, representing CAW, asked if the process for allowing the transfer of water credit would be affected by adoption of the Draft CDO. (2) George Riley, Citizens for Public Water, suggested that the cost to develop recycled water projects may be more reasonable than projected costs for the seawater desalination project that is currently being studied by CAW.

Discussion Items

2. Discuss Notice of Draft Cease and Desist Order Regarding the Continued Unauthorized Diversion of Water from the Carmel River in Monterey County

District Counsel gave a brief update on the status of the Draft Cease and Desist Order, and responded to questions from the committee.

The following comments were received during the public comment period on this item. (1) Tom Bunosky, representing CAW, stated that the company will request that the SWRCB conduct a hearing on the Draft CDO. He reported that the Coastal Water Project pilot project should begin operation in January, and that CAW will aggressively pursue additional water conservation savings. (2) Dale Hekhuis, former MPWMD Boardmember, requested that the SWRCB hearing on the Draft CDO be conducted within the District boundaries. He asked that an estimate be developed of the amount of additional water conservation savings that could be achieved within the District. (3) George Riley, Citizens for Public Water, urged the jurisdictions to support the water supply project solution proposed by the Regional Plenary Oversight Group. (4) Bill Caruthers asked if water harvesting had been proposed as a water supply alternative.