MINUTES

Board of Directors

Monterey Peninsula Water Management District



January 25, 2001





The meeting was called to order at 7:14 PM at the Oldemeyer Center in Seaside, CA.



Board members present:

Molly Erickson, Chair -- Division 3

David Potter, Vice Chair -- Monterey County Board of Supervisors

Alvin Edwards, Division 1

Ron Chesshire, Division 2

Kris Lindstrom, Division 4

Alexander Henson, Division 5

David Pendergrass, Mayoral Representative



Board members absent:

None



Staff members present:

Darby Fuerst, General Manager

Joe Oliver, Water Resources Manager

Henrietta Stern, Project Mgr./Public Information Rep.

Andrew Bell, Planning & Engineering Mgr./Dist. Engineer

Ray Millard, Administrative Services Manager

Stephanie Locke Pintar, Water Demand Manager

Sara Ramos, Sr. Office Specialist



District Counsel present: Carmela Bowns



The assembly recited the Pledge of Allegiance.



On a motion by Director Edwards and second by Director Chesshire, the Board approved the nomination of Director Potter as the new Chairperson. The motion was approved on a 6-1 vote. Director Erickson voted against the motion.



On a motion by Director Chesshire and second by Director Pendergrass, the Board approved the nomination of Director Edwards as the new Vice Chairperson. The motion was approved on a 4-3 vote. Directors Erickson, Lindstrom and Henson voted against the motion.



On a motion by Director Erickson and second by Director Edwards, the Board unanimously approved the nomination of Darby Fuerst as the Secretary.



On a motion by Director Erickson and second by Director Edwards, the Board unanimously approved the nomination of Ray Millard as the Treasurer.





The following comments were directed to the Board during the public hearing on this item. (1) Patricia Bernardi, resident of Carmel Valley and former director and chair of the Monterey Peninsula Water Management District Board of Directors stated her concerns with an ex officio member serving as chair or vice chair on the Board due to their other duties they must perform for their city or jurisdiction. (2) David Dilworth, representing Responsible Consumers on the Monterey Peninsula, stated putting anyone of the three directors in favor of getting rid of the District in a position of either chair or vice chair would be a great way to bring discredit to this District and help it to dissolve. (3) John Fischer, resident of Pacific Grove, stated he hopes the future chair will let the public know what happens to an agenda item on 3-3 vote or when only 4 directors are present. He stated the public was not served very well at the last meeting due to this question not being asked of the District Counsel. (4) Nancy Isaakson, stated the Board can make the decision on electing their own chair and vice chair and that the individual who takes the position of chair or vice chair is willing to make the commitment to serve the District and the community.



The following comments were presented during Oral Communications. (1) Thomas Mancini, Mayor Pro Tem, City of Seaside, stated concerns with Ordinance No. 98 with relation to connection fees. He questioned why additional fees ranging from $800 to $4,000 should be charged in addition to administration fees. (2) Jim Hughes stated the District staff should be allowed to do what they are supposed to do for the District. He suggested moving the consent items towards the end of meeting and address the public hearing items first to expedite the length of the meetings and to address the public concerns first. (3) Bill Curry, a resident of Seaside stated he is waiting to hear the answer as to why a person with one residential bathroom who wants to expand would have to pay a connection fee when they are already connected. (4) Lou Haddad, a resident of Monterey, suggested Board members who believe that assertion of pueblo water rights by the City of Monterey will benefit the District and the public, should appear at the February 6, 2001 Monterey City Council meeting and voice their opinions. He showed an overhead displaying advantages for everyone and suggested an agenda item be placed on a future Board meeting addressing financial support towards the City of Monterey for this project. (5) Patricia Bernardi, stated her concerns with Plan B and how it is heavily dependent on large quantities of power which may cause the cost of any alternative project to sky rocket. She asked the Board to keep the concerns of power supply in



mind. (6) David Dilworth, Responsible Consumers on the Monterey Peninsula, stated the District should join in the lawsuit against the City of Pacific Grove to get back the water that rightfully belongs to the District and no longer should be in the hands of Pacific Grove. He suggested the Board consider his request and perhaps put this item on a future meeting agenda. (7) David Marian, a resident of Monterey asked for a definition of pueblo water rights.



Director Erickson requested item A be pulled for discussion. Director Edwards requested items D and J be pulled for discussion. Director Chesshire requested item E be pulled for discussion. Director Potter stated these items would be discussed at the end of the meeting.













On a motion by Director Erickson and second by Director Edwards Consent Calendar items B, C, F, G, H, I, K, L and M were approved unanimously.















































General Manager Fuerst reported that the consultant for the A & N Technical Water study was not able to complete this study in time for the January 25, 2001 meeting. Staff anticipates receiving the study and presenting it on the





February 22, 2001 agenda. The study is geared to looking

at the water savings associated with ultra-low flow toilet installations in the Monterey Peninsula area as well as determining if additional water is used when a second bathroom is installed. Mr. Fuerst advised that the District is continuing its exploration of the injection recovery project. The District received its permit from the State Water Resources Control Board (SWRCB) in mid-January. District staff has begun injecting water into the Seaside basin with the existing pilot-scale well. At the same time, staff is pursuing development of a large-scale well which was just approved as part of the consent calendar. Staff hopes to have that well drilled and on line by the end of February. Under the permit from the state the District is allowed to divert water up until May 31, 2001.



District Counsel Bown did not present a report.



The following comments were presented during the Directors' Report. Director Edwards thanked the Board for voting for him and Director Chesshire for nominating him. He told the audience that he is going to be the Vice Chair for all the people and all the Board members and reassured the public that he will work together as much as possible with Chairperson Potter. Director Chesshire stated that immediately following the strategic planning session that the Board should consider rules of conduct in business, how the Board is going to pursue business with the District staff and such. He stated it is long overdue and the Board needs to come up with some rules with regards to what the powers of the Board officers are and what they are not. Director Chesshire stated he would submit his request in writing immediately following the strategic planning session. Director Potter reported briefly on the Board workshop held in Cachagua. He stated it was a very productive use of the Boards' time. He is committed to conducting another workshop this year and praised the efforts of facilitator Richard Garcia. Director Potter also emphasized that based on the conversations held during the retreat that the Board stay focused on the commitments made and take them out to the public and continue to move forward.



Director Erickson reported on the closed sessions held on December 18, 2000 and January 22, 2001. The topic of discussion was the employment to fill the General Manager position that is available. No action was taken on either date.







Approved. A motion by Director Edwards and second by Director Chesshire to approve the transfer of water use credits from Robles Del Rio Lodge, LLC to Monterey County on a vote of 4 to 3. Directors Erickson, Lindstrom and Henson voted against the motion.



A motion was made by Director Henson to propose the following amendments: (a) to add a condition whereby the transferees would sign a waiver such that their Cal-Am water bills would be available to the District so that the District could monitor what kind of use was being made of the transferred water; (b) that the price of the water credits would be $18,000 per acre foot and not more. The first amending motion was seconded by Director Lindstrom and was approved unanimously on a vote of 7 to 0. The second amending motion was seconded by Director Lindstrom and failed on a vote of 4 to 3. Directors Potter, Edwards, Chesshire and Pendergrass voted against the second amending motion.



Director Chesshire reported that he received two Ex Parte communications from Glen Gurries and Fran Farina concerning the type of transfer of the Robles del Rio Lodge. Director Henson reported that he received one Ex Parte communication from Glen Gurries on Thursday, January 25 concerning the politics of the Board members and the vote. Director Potter reported that he received one Ex Parte communication from Tom Akeman, Monterey Herald.



The following comments were received during the public hearing on this item. (1) Winston Alstop, a resident of Pacific Grove acknowledged the newspaper article from the Monterey Herald. He emphasized the public should relax on water issues and commended Thomas Akeman on his research and his newspaper article. (2) Robin Tokmakian, President of the League of Women Voters of the Monterey Peninsula stated the League of Women Voters position on water issues is to support policies that create a hierarchy of customers having a priority claim to water service with existing customers to be served first. The League continues to oppose the transfer of water credits and in this case the Robles del Rio Lodge transfer for sale to private parties. The League supports the proposed Ordinance No. 100 and the Board adoption of Ordinance No. 97. (3) Gunter Riemers, a resident of Carmel Valley and past member of the Carmel River Advisory Board to the Water Management District, stated Robles del Rio's request to be allowed to sell water credits should be rejected out of hand. The whole concept of







water credits is ill conceived and idiotic and insults the

intelligence of all affected citizens. (4) Bob McKenzie, Government Affairs Director of the Monterey County Hospitality Association and the Monterey Peninsula Chamber of Commerce, stated the only fair conclusion is to approve these credits. As an individual resident of Monterey and of the Water Management District, Mr. McKenzie asked the Board to approve this credit tonight. (5) Michael Grove, a resident of Carmel Valley stated Mr. Gurries followed the rules of credits created by the Board and this District. This is simply a property to jurisdiction transfer under the District's rules and tonight it is the District's responsibility to approve the transfer to the county. (6) Bill Tarp a resident of Carmel Valley stated the Board should follow the action of the Board of Supervisors and keep the word that Mr. Gurries has relied on to rebuild the Robles del Rio Lodge. (7) Randy Randazzo, a resident of Carmel Valley, emphasized fairness and that Robles del Rio has followed the rules from the very start. He supports the transfer and hopes the District does the same. (8) Robert Greenwood, representing Carmel Valley Property Association, stated the association continues to oppose in principal all marketing of water credits during our continuing water supply emergency. In the case of Robles del Rio, the list of proposed recipients ignores the priorities on the county's waiting list and favors those applicants who are prepared to pay the most money. Mr. Greenwood asked the Board how do we ensure that the 13 recipients will stick to the 15% required reduction in use. For these reasons, the association urges denial of the application. (9) Jana Bradford, a resident of Carmel Valley, stated this is a legal matter and not a matter of what is fair. The applicant has followed all the rules presented before him. She stated she supports the project and hopes the District moves forward with this transfer. (10) Don Ask, a resident of Carmel Valley, stated a gentlemen trusted in the rules and regulations as they were written and followed them explicitly and that his trust in the rules and regulations as they are written now be upheld. If the District does not vote for this he wonders what other rules will not be honored by the District in the future. (11) John Dolasio, a resident of Carmel Valley, spoke for the Sierra Club, Ventana Chapter and raised the question of trust and fairness to whom and commitment to whom. He asked what is fair about selling water to rich guys in Texas when it has been promised to others. He asked the Board to be fair to the people on the list since they truly are the District's constituents. (12) John Church., a resident of Carmel Valley expressed his support on the Robles del Rio transfer. The transfer has already been considered and





encouraged to move forward by this body including an

exemption from Ordinance No. 95 and has been meticulously studied and reviewed by all agencies having jurisdiction including the SWRCB. Robles del Rio Lodge has already saved over 20 acre-feet of water for the river and will continue to save water. The recipients of the transfer will benefit and be able to move ahead with construction of a home, addition or bathroom. (13) Tom Misetta, a resident of Carmel Valley, stated his support of the transfer of water credits. (14) Bob Orner, a resident of Carmel Valley, expressed his support of the transfer. He stated Mr. Gurries application, his discussions with the county and all arrangements had been made before these restrictions came into force. It is a simple matter, Mr. Gurries should be approved. (15) Eric Vandike, a resident from Aromas, stated residents from Aromas are wondering what is being done to create new water from nowhere and thought the Carmel River was over drafted. He commented on fairness and said where he comes from fairness means standing in line waiting your turn and it does not mean fairness for people who have money and not for those who don't. (16) David Freed., a resident of north county, stated his concern about how we are able to argue that we are not increasing the use of water when we are. Putting a well in takes water out of the aquifer, it's not really a savings and there hasn't been 20 acre-feet of water saved by pulling water out of the well. (17) John a resident of Carmel Valley, stated his support for the transfer. He also stated that he doesn't appreciate the Monterey Herald's report. Mr. Gurries has followed all the rules and the District must follow the rules it has set. (18) Bill Parham, a resident of Carmel Valley, stated his support of the transfer. He said the rules are there and Mr. Gurries has played by them. The District hasn't changed the rules and the rules can change if desired once the transfer is passed. He asked the Board to remember that fixtures don't use water, people do, and that the Board needs to get out of the micro-managing business and into the managing business. (19) Mila Anoya, a resident of Carmel Valley, stated she was on the list for a water transfer for over five years and knows of other persons waiting for twenty years. She said Mr. Gurries is not doing anything to help rich people get water. The only fair thing is to have the Board approve this transfer so persons like herself can have a house. She stated she is not rich and that many residents of the valley are not either. (20) Sam Karas, former member of the Water Management Board, stated there are two things involved here tonight, fairness and integrity. It is up to the Board to have the integrity to uphold the fairness that is due to this gentleman. He stated you don't change the rules in the





middle of the game. (21) Fran Farina, legal

representative for Save Our Carmel River, stated a deal was done, representations may have been made, they were not made by this District and if county staff people or members of the Board of Supervisors led Mr. Gurries to believe certain things then let them clean up the mess. They can pay the money and they can take care of the problem. The Board is double dipping into the Carmel River watershed and it is doing nothing to help the problem. This project was approved saying there would be a water reduction. The Board has no proof that the 15% is even being met. (22) Michael Alba, representing a purchaser of water, stated he is troubled by the idea that who people are determines which rules apply to them. He is also troubled by the comment that if you don't have an agreement in writing with both parties signing it, that it doesn't count. Fundamental fairness is the issue, not a person's race, origin, ethnicity or financial circumstances. Profit is not an illegal thing. Mr. Alba asked the Board to bring this sad and divisive chapter to conclusion tonight. (23) Jim Hughes, resident of Pacific Grove re-addressed the issue of micro managing by the Board. The District is a resource agency and its job is to supply water for this area. The land use decisions go to the jurisdictions and under the present rules they have the right to do whatever they want with the water that you have "allocated" to them. Who the water goes to is not a matter of concern to this Board. It is a matter of concern to the jurisdictions involved. The Board needs to get back to being a resource agency and let the land use decisions reside with the jurisdictions. (24) Roy Kaminske, a resident of Carmel Valley, stated it is wrong when a majority of people in a democracy have a right and they deny the right to somebody else. Mr. Kaminske presented an overhead to the Board displaying that 99 1/2% of the people on the Monterey Peninsula have water and of 1% do not. He finds this situation reprehensible and inexplicable. (25) Patricia Bernardi, a resident of Carmel Valley, stated

selling water at $150,000 an acre foot is an obscenity. We need to supply this community with an adequate supply. We end up being part of the financing package for someone to build a project. This is not right and it is not the way to do business. It is not the job of the Board to make sure that Glen can sell his water at the highest price so that he can help in financing his project. She stated approval of this transfer would be a poor decision. (26) David Dilworth, representing both HOPE and Responsible Consumers on the Monterey Peninsula, requested that the Board deny this item. The transfer is legally and ethically wrong because it is black marketing of water and harms the public's interest by improperly





allowing the wealthy to get water before those

who have properly and patiently waited in line. Mr. Dilworth referred to the deed restriction listed in the packet. This project will increase the pumping of the Carmel River. (27) Joseph Hertline, a resident of Carmel Valley, stated he encourages the Board to support this transfer. He asked for a show of hands from the audience who are in favor of this transfer who have not gotten up to speak.



The meeting was recessed at 9:17 PM and reconvened at 9:26 PM.



Approved. A motion by Director Erickson and second by Director Lindstrom to approve First Reading of Ordinance No. 100. The motion was adopted on a vote of 4 to 3. Directors Chesshire, Pendergrass and Edwards voted against the motion.



The following comments were received during the public hearing on this item. (1) Robert Greenwood, Carmel Valley Property Owners, urged the Board to adopt Ordinance No. 100. We should at least wait until March to when the consultant's report is in to take action. (2) Patricia Bernardi, stated her support of this ordinance and said the like to like limit especially with commercial, is essential for the livelihood of the community. (3) Brian Finnegan, suggested to the Board that language be included in the ordinance regarding transfers from school district to school district with regards to like for like, commercial to commercial and industrial to industrial transfer credits. (4) Bob McKenzie, stated both the Monterey County Hospitality Association and the Monterey Peninsula Chamber of Commerce opposed the adoption of Ordinance No. 95 and Ordinance No. 100. The data that have been prepared so far are incomplete, and constantly mis-characterized by several people on this Board and the Monterey Herald and it's about time we bring an end to this. (5) Jason Retterer, Lombardo & Gilles, requested that the Board reject Ordinance No. 100 based on its temporary prohibition on jurisdictional transfers and its detrimental effect on the community. However, if the Board does decide to adopt this ordinance it seems that basic principles of fairness and equity demand that any pending water credit transfer applications be exempt from this moratorium. (6) Ralph Rubio, stated that if no compelling reason has been found in 210 days to not to allow the transfers then perhaps the data should be collected outside of the ordinance. Let transfers continue that will not prohibit the staff from collecting the data. Right now the District is taking the jurisdictions power of





land use authority. (7) Dan Albert, Mayor, City of Monterey referred to the Temporary Amendment of Rule 28B and stated that when projects include a transfer from like to like that the determination of water use should be done by the jurisdiction itself or that agency. (8) David Dilworth, Responsible Consumers of the Monterey Peninsula, stated his group supports the ordinance in concept and is a good temporary solution. He stated what little data we have shows that every water transfer doesn't save water and may actually increase water use. Water transfers should be stopped entirely. (9) Lou Haddad, a resident of Monterey, stated that the District is allowing water transfers for businesses but not allowing for residents. He agrees that whatever is transferred that the jurisdictions involved should determine where that water goes. He asked the Board to ensure that this ordinance includes both residential to residential transfer and commercial to commercial or eliminate both. (10) Tom Rawley, a resident of Monterey, stated it behoves the Board to wait until they receive all the facts and not base a decision on partial statements that are made based on incomplete data. He asked that when the Board makes its decision on this ordinance that they not listen to the facts that are unproven or unstated. (11) Jerry Smith, Mayor, City of Seaside, stated the City of Seaside strongly opposes Ordinance No. 100. He said that this ordinance may be appropriate for other cities and jurisdictions but it is not appropriate for the cities that are going through a transitional period. Mayor Smith reiterated that the District should not dictate land use and development for local jurisdictions. (12) David Freed, a resident of north county, commented that the use of the water goes on much longer than the amount of time for the study and is zero time in comparison. (13) Fran Farina, stated that we need to buckle down on the issues of transfers and water credits. We have had a water supply deficiency articulated by this District since 1990, but we keep giving it away.



Due to the 11:00 PM hour, the Board unanimously agreed to move this item to the February Board meeting.











No action taken due to the 11:00 PM hour.



Director Potter stated no public comments would be received and that only a staff presentation would be given to the Board.







Due to the 11:00 PM hour, the Board unanimously agreed to move this item to a future Board meeting.













Due to the 11:00 PM hour, the Board unanimously agreed to move this item to a future Board meeting.









The Board did not discuss Information Items/Staff Reports.













































The meeting was adjourned at 11:09 PM.



















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III. ELECTION OF BOARD OFFICERS







III. ELECTION OF BOARD OFFICERS

IV. ORAL COMMUNICATIONS



























































IV. ORAL COMMUNICATIONS





















K. Receive Report on Second Quarter Financial Activity

L. Consider Approval of Second Quarter Investment Report

M. Consider Approval of Treasurer's Report for the Month of December 2000



VI. PRESENTATIONS

A. General Manager's Report

VI. PRESENTATIONS

A. General Manager's Report

B. Attorney's Report



C. Directors' Report





























































VII. PUBLIC HEARINGS

VII. PUBLIC HEARINGS

A. Consider Request to Transfer Water Use Credits from Robles Del Rio Lodge, LLC to Monterey County



































































































VII. PUBLIC HEARINGS

A. Consider Request to Transfer Water Use Credits from Robles Del Rio Lodge, LLC to Monterey County



































































































VII. PUBLIC HEARINGS

A. Consider Request to Transfer Water Use Credits from Robles Del Rio Lodge, LLC to Monterey County



































































































VII. PUBLIC HEARINGS

A. Consider Request to Transfer Water Use Credits from Robles Del Rio Lodge, LLC to Monterey County



















B. Consider First Reading of Ordinance No. 100 - An Ordinance of the Board of Directors of the Monterey Peninsula Water Management District Temporarily Suspending Receipt of Applications for Water Credit Transfers





































































VIII. ACTION ITEMS

A. Review Policy Regarding Issuance of New and Extension of Existing Conditional Water Permits During Declared Water Supply Emergencies



IX. INFORMATIONAL ITEMS/STAFF REPORTS

  • Letters Received
  • Committee Reports
  • Strategic Plan Update
  • Water Supply Projects
  • Carmel River Fishery Report
  • Carmel River Erosion Protection and Restoration Report
  • Irrigation Program and Riparian Projects Report
  • Water Conservation Program Report
  • Public Information Program
  • Monthly Cal-Am Sales Report
  • Monthly Cal-Am Production Report
  • Monthly Allocation Report
  • Financial Report - CAWD/PBCSD Wastewater Reclamation Project
  • Production Report - CAWD/PBCSD Wastewater Reclamation Project
  • January 2001 Water Supply Status Report


  • Adjournment














_________________________________________

Darby W. Fuerst, Secretary to the Board