FINAL MINUTES

Regular Meeting

Board of Directors

Monterey Peninsula Water Management District

June 18, 2001





The meeting was called to order at 7:00 PM in the Monterey City Council Chambers.



Board members present:

David Potter, Chair - Monterey County Board of Supervisors

Alvin Edwards, Vice Chair - Division 1

Ron Chesshire - Division 2

Molly Erickson - Division 3

Kris Lindstrom - Division 4

David Pendergrass - Mayoral Representative



Board members absent:

Alexander Henson - Division 5



Staff members present:

Darby Fuerst, General Manager

Ray Millard, Administrative Services Manager

Stephanie Pintar, Water Demand Manager

Henrietta Stern, Project Mgr./Public Information Rep.

Cynthia Schmidlin, Human Resources Manager

Larry Hampson, Water Resources Engineer

Joe Oliver, Water Resources Manager

Arlene Tavani, Executive Assistant



District Counsel present: David C. Laredo

I. CALL TO ORDER/ROLL CALL

The assembly recited the Pledge of Allegiance.

II. PLEDGE OF ALLEGIANCE

Chair Potter introduced Ernesto A. Avila, the District's incoming General Manager, who will begin work on July 2, 2001. Mr. Avila thanked the Board for giving him the opportunity to serve the community. He assured the audience that he intended to provide excellent service to the staff, Board, organization and public and to give 100 percent of his effort to meet the needs of the District.



The following speakers addressed the Board during Oral Communications. (1) Edwin Lee, a resident of Carmel, commented on the May 24, 2001 letter to the District from the National Marine Fisheries Service (NMFS) that is on file at the District office. Mr. Lee stated that comments presented by the NMFS were premature because they were not based on facts presented in a certified EIR. He advised the Board that it would be inappropriate for them to consider the NMFS letter until an EIR is certified. Mr. Lee urged the Board to certify an EIR before accepting advice from any federal organization. (2) John Fischer, a resident of Pacific Grove, referred to item VIII.O, Production Report - CAWD/PBCSD Wastewater Reclamation Project. He noted that the amount of reclaimed water applied to benefitted properties had dropped from 72 percent to 68 percent over a twelve-month period. He charged that potable water use had increased each year among the reclaimed water customers. Mr. Fischer expressed hope that the District and the Pacific Grove Golf Course could clarify the terms of their original water credit agreement, so that the golf course is not criticized for using more water than it should. (3) Sue McCloud, Mayor of Carmel-by-the-Sea, read a letter on behalf of the Monterey County Mayors Association. The letter was undated. It is on file at the District office. She urged the Board to provide a water allocation that would meet affordable housing needs. (4) Keith Mackie, owner of a lot-of-record within the District and a resident of the Los Angeles area. He advised the Board that he had not received a written response to questions he asked at the May 31, 2001 Board meeting. Mr. Mackie suggested that the Board install above-ground reservoirs. He noted that an above-ground reservoir was recently constructed near his home after only one year of planning. (5) Fran Farina requested that an Informational Item be added to the monthly Board packet that would provide estimates of the amount of water produced in various areas throughout the District. Ms. Farina advised the Board that it took at least five minutes for a two page letter to download from the District's web site. She was unhappy with the inefficient operation of the web site. (6) Lou Haddad, former member of the Board of Directors, observed that the June 18, 2001 Board meeting agenda did not contain a report from District Counsel on action taken at the June 18, 2001 Closed Session. He asked how members of the public could comment on item XI.A, if they did not hear a report on action taken at the closed session. Chair Potter stated that District Counsel would report on the Closed Session that evening. (7) David Dilworth, representing Helping Our Peninsula's Environment (HOPE), requested that monthly Board packets be prepared at no cost for persons representing the public interest. He requested that this item be placed on the next Administrative Committee agenda. Mr. Dilworth alleged that the Board had not properly advised the public about agenda item VII.B. The agenda did not state that approval of the item would allow 17 acre-feet of water to be distributed to a project. He requested that the item be re-noticed. In addition, Mr. Dilworth requested that he be advised of any interagency meetings that District staff participates in.

III. ORAL COMMUNICATIONS

III. ORAL COMMUNICATIONS

On a motion by Director Edwards and second by Director Chesshire, the Consent Calendar was approved on a vote of 5 - 1, with the exception of item IV.E, that was deferred for separate consideration. Director Lindstrom voted against the motion. Director Henson was absent.



Approved.

IV. CONSENT CALENDAR











A. Consider Approval of Minutes from the Regular Board Meeting of May 31, 2001

Approved

B. Consider Ratification of Agreements

Approved

C. Consider Approval of Annual Memorandum of Agreement Regarding Releases and Diversions from San Clemente Reservoir.

Approved

D. Consider Authorization of Funds to Renew Automotive Maintenance Agreement with the City of Monterey for Fiscal Year 2001-2002

Director Erickson made a motion that was seconded by Director Lindstrom to: (1) extend the present contract to July 16, 2001; (2) ensure Administrative Committee review of this item; (3) expand the survey prepared on legal fees paid by other local public agencies; (4) prepare an analysis of hours worked by District Counsel over the past 12 months; and (5) provide all the requested information to the entire Board. The motion was amended by Director Edwards to extend the contract for 90 days. The amended motion was approved on a vote of 6 - 0. Director Henson was absent.

E. Consider Authorization of Funds to Contract for Legal Services with De Lay & Laredo for Fiscal Year 2001-2002

Approved

F. Consider Authorization of Funds to Amend Contract with RAMLIT Associates to Provide Computer Modeling Services for Fiscal Year 2002

Approved

G. Consider Adoption of Resolution Calling for Board Member Elections on November 6, 2001 Within Voter Divisions 1 and 2

Approved

H. Consider Adoption of Article XIII (B) 2001-2002 Fiscal Year Appropriations Limit

Approved

I. Consider Adoption of Resolution Accounting for Transfers Between Funds





Approved

IV. CONSENT CALENDAR

J. Consider Authorization of Funds to Contract for Field Biology Assistant Positions

Approved

K. Consider Authorization of Funds to Contract for Water Resources Assistant Position

Approved

L. Consider Approval of Treasurer's Report for May 2001



General Manager Fuerst reported that staff has undertaken a comprehensive review of the various deed restriction formats utilized by the District in an effort to standardize the process. For example, one deed restriction will be developed to allow access to water rights, and another will limit water use on a specific property. In addition, policy guidelines will be developed that will define when it would be appropriate to deviate from the standard deed restriction format. The Board's Rules and Regulations subcommittee was scheduled to discuss the issue.

V. PRESENTATIONS

A. General Manager's Report

District Counsel Laredo reported that at the May 31, 2001 Closed Session, Directors Chesshire, Edwards and Lindstrom were appointed to serve as the Board's negotiating team for the purpose of negotiating staff salary and benefits.

B. Attorney's Report



Director Erickson requested that the Administrative Committee review performance of the District's web site, and that a new Informational Item be presented in the Board packet that reported on where water use is occurring within the District.



Director Chesshire suggested that the web site issue be discussed at the July 9, 2001 Board Strategic Planning Session.



Director Lindstrom requested that the Policy and Technical Advisory Committees discuss the issues related to a water set-aside for affordable housing projects that were raised by Mayor Sue McCloud of the Monterey County Mayors Association.



Director Edwards announced that he would not attend the July 16, 2001 Board meeting.



Chair Potter requested that the General Manager provide a report to the Board at the July 16, 2001 meeting on the feasibility of reporting monthly on where water use is occurring within the District. Chair Potter agreed that web site interactivity and development concerns could be discussed at the July 9, 2001 strategic planning session, but he directed that the Administrative Committee also take a serious look at the issue.

1. Board Comments and Referrals

1. Board Comments and Referrals



On a motion by Director Pendergrass and second by Director Chesshire, the Water Supply Strategy and Budget was approved on a vote of 6 - 0. Director Henson was absent.



During the public hearing on this item, the following persons addressed the Board. (1) Fran Farina, a resident of Carmel Valley, asked how long Cal-Am's Rancho Cañada Well would be non-operational. She expressed a concern that other areas of Aquifer No. 3 would be de-watered while the Rancho Cañada Well was out of service. Ms. Farina asked why reclaimed wastewater production was declining. General Manager Fuerst responded that the well was currently operational. Mr. Fuerst explained that a lack of influent was the cause for the decline in reclaimed wastewater production. (2) David Dilworth, representing HOPE, questioned the legality of the District's claim to a CEQA exemption for adoption of the Water Supply Strategy and Budget. He raised a concern about nitrate contamination in the Carmel River, due to pesticide runoff from golf courses that are adjacent to the river. General Manager Fuerst reported that District staff monitors ground water for the presence of nitrates on a semi-annual basis. Results of the monitoring effort indicate that nitrate levels are below state standards in the Carmel River and the Seaside groundwater basins and there is no upward trend.

VI. PUBLIC HEARINGS

  • Consider Adoption of July - September 2001 Water Supply Strategy and Budget


Director Edwards made a motion that was seconded by Director Chesshire to approve the request for a determination of special circumstances.



The motion was amended by Director Lindstrom to add a condition to the permit requiring that water use on the site be reviewed after one year. If the actual water use exceeds the projected amount, the City of Monterey will set aside a water reserve to make up for the project's water deficit. At the end of the first five-year period, the City of Monterey can transfer a portion of its allocation to the project, or the applicant will pay the cost of retrofitting toilets within the City of Monterey to establish a credit that will be applied towards the project's water deficit. The retrofitting could be accomplished after the first year at the time a deficit is first established, or at the end of the five-year period. If the City of Monterey does not have water in its allocation to set aside to meet the project's deficit, the applicant should take action immediately to retrofit facilities within the city.



The motion was further amended to require that the applicant install a separate water meter for the pool and spa. The amended motion was approved on a vote of 5 to 1. Director Erickson voted against the motion and Director Henson was absent.



The following comments were received during the public hearing on this item. (1) Edwin Lee, asked if the District had any proof that ultra-low flow toilets save water and if there were any calculations of the actual water savings. (2) Robert Greenwood, Carmel Valley Property Owners Association (CVPOA), read a statement dated June 18, 2001 that is on file at the District office. Mr. Greenwood requested that water use at the Monterey Hotel be closely monitored. If actual water use exceeded the 1.5 acre-feet of estimated capacity, the hotel should be required to reduce its water use. (3) Fran Farina, former member of the District's Board of Directors, noted that the list of water use calculations provided in the staff note was submitted by the applicant. She stated that the Board should review the staff's calculations of water use before making a decision on the application. (4) Fran Farina, proposed that if the request for a finding of special circumstances was granted by the Board, specific conditions should be required that would allow for payback of any water used in excess of the 1.5 acre-feet of projected capacity. (5) David Dilworth, representing HOPE, recommended that this item be deferred until: (a) the Board can review staff's water use calculations; and (b) a calculation of the actual water use at the site over the past five years is prepared. (6) Mark Beique stated that using water is not a crime. He asked the Board to stop focusing on the responsibilities of the water user, and to instead shoulder its own responsibility by providing the community with a water supply. (7) Paul Davis, representing the applicant, assured the Board that the water use figures he submitted were developed with the concurrence of District staff. He acknowledged that there was a disagreement with staff about whether ozone treatment would reduce water use by 53 percent or 70 percent. The projected water use remained within the water budget when the 53 percent savings figure was considered. During Board discussion of this item, Mr. Davis agreed that the swimming pool and spa could be separately metered. He also agreed to a condition that would require water use at the hotel to be monitored. If water use was above the projected capacity, an amount of water equal to the deficit would be set-aside for the project by the City of Monterey, or replaced by the applicant through a retrofit program.

VII. ACTION ITEMS

A. Consider Request for Consideration of Special Circumstances (Rule 24-G) - Monterey Hotel



















VII. ACTION ITEMS

A. Consider Request for Consideration of Special Circumstances (Rule 24-G) - Monterey Hotel































































































VII. ACTION ITEMS

A. Consider Request for Consideration of Special Circumstances (Rule 24-G) - Monterey Hotel

A motion was made by Director Pendergrass and seconded by Director Edwards to continue the item to a future Board meeting at the request of the applicant. The motion was approved on a vote of 6 - 0. Director Henson was absent.

B. Consider Request for Consideration of Special Circumstances (Rule 24-G) - Pebble Beach Company

The meeting adjourned for a brief recess from 9 P.M. to 9:05 P.M.



Motion 1 - Director Lindstrom made a motion and Director Erickson seconded to eliminate water use credit transfers. The motion failed on a vote of 4 - 2. Directors Erickson and Lindstrom voted in favor of the motion. Director Henson was absent.



Motion 2 - Director Potter made a motion that was seconded by Director Pendergrass to suspend receipt of water credit transfer applications for 60 days. During that time, staff should propose modifications to the water credit transfer process that would incorporate additional safeguards to prevent an increase of water use beyond the original projection at the receiving site, and safeguards that would ensure that accurate estimates of historical water use at the donor site are developed. The motion was approved on a vote of 4 - 2. Directors Erickson and Lindstrom voted against the motion. Director Henson was absent.



Motion 3 - Director Erickson made a motion that was seconded by Director Lindstrom, that would require all pending water credit applications to be brought before the Board for final determination. The motion failed on a vote of 4 - 2. Directors Erickson and Lindstrom voted in favor of the motion. Director Henson was absent.



Motion 4 - Director Erickson made a motion that was seconded by Director Lindstrom to waive the fee for processing an appeal of staff's decision on a water credit transfer application. Director Erickson later withdrew her motion.





Motion 5 - Director Chesshire made a motion that was seconded by Director Edwards directing that all pending water credit transfer applications be processed administratively. The motion was approved on a vote of 4 - 2. Directors Erickson and Lindstrom voted against the motion. Director Henson was absent.



The following comments were directed to the Board during the public comment period on this item. (1) John Fischer advised the Board that he was unable to comment on the issue because he and many other members of the audience had not yet seen the study titled "Analysis of Water Savings Associated with Documented Water Use Transfers" that was referenced in the staff report on this item. (2) Robert Greenwood, representing the CVPOA, read a statement dated June 18, 2001 that is on file at the District office. Mr. Greenwood recommended that the water credit transfer program be abolished for the duration of the water supply emergency. (3) Robert McKenzie described the report on the analysis of water savings as "almost totally useless." He reminded the Board that water use in the Cal-Am system has been reduced in every category, except for Cal-Am's unaccounted for system losses. According to Mr. McKenzie, there is nothing wrong with the commercial water credit transfer program nor the amount of water used by the community. (4) Fran Farina, representing Save Our Carmel River (SOCR), requested that the water credit transfer program be discontinued. If the Board chose to continue the program, Ms. Farina proposed that the following changes be made: (a) eliminate commercial to jurisdiction transfers; (b) set aside 50 percent of water from the donor site as conservation savings; (c) the water credit to be transferred should be based on five years of historical water use, not on the District's commercial water use factors; (d) consequences must be established in case water use at the receiving site exceeds projections; and (e) water credit transfers should not be handled administratively, they should be considered by the Board in a public meeting. (5) David Dilworth, representing HOPE, expressed agreement with statements made by Fran Farina and Robert Greenwood. He urged the Board to eliminate the water credit transfer program.

C. Consider Continuation, Discontinuation, or Modification of District Water Use Credit Transfer Program - Rule 28

VII. ACTION ITEMS

C. Consider Continuation, Discontinuation, or Modification of District Water Use Credit Transfer Program - Rule 28

There was no discussion of the Informational Items or Staff Reports.

VIII. INFORMATIONAL ITEMS/STAFF REPORTS

The meeting was adjourned to Closed Session at 10:05 P.M.

IX. ADJOURN TO CLOSED SESSION

A. Conference with Labor Negotiators (Gov. Code 54957.8)

1. Discussion with Negotiators Regarding Staff Compensation and Benefits

Agency Representatives: Ron Chesshire, Alvin Edwards and Alexander Henson

Unrepresented Employees: MPWMD Employees



B. Adjourn to Regular Board Meeting

The meeting was reconvened at 10:20 P.M.

X. RECONVENE REGULAR BOARD MEETING



District Counsel Laredo reported that during the Closed Session, the Board received a report from the negotiators on the issues outlined in the staff note on item XI.A.



Motion 1 - Director Edwards made a motion that was seconded by Director Chesshire to approve the staff recommendation. No action was taken on the motion.



Motion 2 - A motion was made by Director Erickson and seconded by Director Potter to adopt Exhibit A-3, the resolution electing to cease to be subject to the Public Employee's Medical and Hospital Care Act. The motion was approved on a vote of 6 - 0. Director Henson was absent.





Motion 3 - A motion was made by Director Edwards and seconded by Director Chesshire to: (1) adopt Exhibit A-2, a resolution amending the Personnel Resolution increasing staff salaries by 5 percent effective July 1, 2001; and (2) adopt Exhibit A-4, a resolution of intent to amend the District's Public Employees Retirement System retirement contract providing retirement benefits of 2 percent at the age of 55. The motion was adopted on a vote of 4 - 2. Directors Erickson and Lindstrom voted against the motion. Director Henson was absent.

XI. ACTION ITEM

A. Consider Approval of Negotiated Staff Compensation Adjustments for FY 2001-2002

XI. ACTION ITEM

A. Consider Approval of Negotiated Staff Compensation Adjustments for FY 2001-2002

The meeting was adjourned at 10:25 P.M.

XII ADJOURNMENT







___________________________________

Ernesto A. Avila, Secretary to the Board





























































U:\Arlene\wp\yr2001\brdmtngs\minutes\final0618min.wpd

A. Tavani, 7/18/2001/, Minutes of 6/18/2001 Board meeting, 10 pages