Board of Directors

Monterey Peninsula Water Management District

March 17, 2003

The meeting was called to order at 7 PM in the Seaside City Council Chambers

Board members present:

Zan Henson, Chair – Division 5

Judi Lehman, Vice Chair – Division 2

Alvin Edwards – Division 1

Molly Erickson – Division 3

Kris Lindstrom – Division 4

David Pendergrass – Mayoral Representative

Dave Potter – Monterey County Board of Supervisors

Board members absent: None

District Counsel present: David C. Laredo

The assembly recited the Pledge of Allegiance.

The following comments were directed to the Board during Oral Communications. (1) David Caneer requested that the Board make a determination on the amount of water credit that should be received for removal of a darkroom sink. (2) John Fischer advised the Board that the Monterey Bay Marine Sanctuary has formed a Desalination Working Group that is developing guidelines on development of desalination projects for the Sanctuary Advisory Group. The recommendations will be submitted to the California Coastal Commission, and then be presented to the Department of Water Resources. (3) David Dilworth requested that all interagency meetings be open to the public. He also requested that the Board take a position on the issue of fluoridation of the municipal water supply. (4) Tex Irwin read a statement that is on file at the District office. In the letter he commented on the November 7, 1995 public vote on the New Los Padres Dam and Reservoir Project; the 2002 Monterey County Grand Jury Report; and the cost to produce potable water from desalination plants at sites in Sand City, Marina and Moss Landing.

On a motion by Director Erickson and second by Director Lehman, the Board approved the Consent Calendar items but deferred for separate consideration item 4, Consider Response to 2002 Monterey County Grand Jury Report. The motion was approved on a vote of 7 - 0. Directors Edwards, Erickson, Henson, Lehman, Lindstrom, Pendergrass and Potter voted in favor of the motion. Director Potter abstained from voting on item 1, Consider Approval of Minutes from the Regular Board Meeting of February 27, 2003.

Approved on a vote of 6 – 1. Directors Edwards, Erickson, Henson, Lehman, Lindstrom and Pendergrass voted in favor of adoption of the minutes with the following amendment: on page 4 of the minutes, paragraph 2, add a sentence stating that “no action was taken on this motion.” Director Potter abstained from voting on this item.

Approved.

Director Potter offered a motion to defer this item to the March 27, 2003 Board meeting and to include a section in the letter on fluoridation. The motion was approved on a motion of 6 to 1. Directors Edwards, Erickson, Henson, Lehman, Lindstrom and Potter. Director Pendergrass voted against the motion.

Approved.

General Manager Avila reported that sufficient flow was present in the Carmel River to allow the District to operate the Pilot Seaside Basin Injection/Recovery Project.

District General Counsel Laredo reported that the Board reviewed two items of existing litigation as listed on the agenda, and that no reportable action was taken. The Board also reviewed two items of anticipated litigation and provided direction to staff, but no reportable action was taken. The Board also considered employment of the General Manager. The Directors accepted the resignation of Ernesto A. Avila; requested that Mr. Avila be available as a District employee during regular office house (8 AM to 5 PM) for the remaining 30 days as required by his employment contract; and agreed that during this period the District will not pay for any of Mr. Avila’s non-salary compensation or expenses. The motion was approved on a vote of 6 – 0. Director Potter was absent. No other reportable action was taken at the meeting.

Director Erickson requested that District staff provide her with an update on the water permit issue raised by Mr. Caneer during Oral Communications. Director Potter commented on the resignation of General Manager Avila. He stated that the District lost a professional who has taken the agency through difficult times. Director Potter expressed hope that Mr. Avila would be more fortunate in his next business venture.

Director Edwards proposed a motion to delete finding No. 5 from the ordinance. Director Pendergrass seconded the motion. The motion failed on a vote of 4 – 3. Directors Erickson, Henson, Hughes and Lindstrom voted against the motion. Directors Pendergrass, Edwards and Potter voted in favor of the motion.

Director Potter offered a motion that was seconded by Director Edwards to adopt the first reading of Ordinance No. 107. The motion was approved unanimously on a vote of 7 – 0.

Director Erickson offered a motion that was seconded by Director Lindstrom to proceed in concept with preparation of an EIR that will be focused on water supply impacts. She proposed that a subcommittee made up of Directors Henson and Lindstrom negotiate a revised scope of work and cost estimate. The scope of work should be modified to reduce the reliance on work performed by District staff, and the definition of affordable or workforce housing should be defined. The subcommittee could approve the contract, and it would come back to the Board for ratification. The motion was approved on a vote of 4 to 3. Directors Erickson, Henson, Lehman and Lindstrom voted in favor of the motion. Directors Pendergrass, Potter and Edwards voted in opposition to the motion.

The following comments were received during the public hearing on this item. (1) Robert Greenwood, representing the Carmel Valley Association, stated that the cost to produce the EIR might have been lower if the project had been open to the public bid process. He noted that the delay caused by sending out a request for proposals on preparation of the EIR might have been offset by a reduction in the cost for preparation of the EIR. (2) Larry Seaman, speaking for the City of Seaside, advised the Board that a city can only award a sole source contract in order to respond to a public health or safety emergency, or if only one consultant is qualified to complete a project. He suggested that District Counsel could be directed to address this issue. (3) Tex Irwin expressed support for preparation of the EIR. He advised the Board that the Monterey County General Plan contains five classifications for the term “affordable housing.” He urged the Board to amend the District’s definition of affordable housing so that it is in keeping with the County of Monterey’s definitions. (4) David Dilworth expressed support for preparation of an EIR. He stated a preference for the definition of affordable housing that is contained in Rule 11 of the District’s Rules and Regulations. (5) Lou Haddad suggested that this item be deferred to the April 21, 2003 Board meeting. According to Mr. Haddad, if Ordinance No. 107 were to be adopted upon second reading in April, there would be no need to prepare the proposed EIR.

On a motion by Director Pendergrass and second by Director Edwards, the April through June 2003 Quarterly Water Supply Strategy and Budget was approved unanimously, on a vote of 7 – 0.

During the public hearing on this item, Robert Greenwood asked staff to identify the undesirable constituent found in water produced from the San Carlos Well that caused Cal-Am to shut down the well. Darby Forest, Senior Hydrologist, identified the constituent as a diatom.

Director Erickson offered a motion that was seconded by Director Lindstrom to request that JSA identify another party to review the report. Director Erickson later withdrew the motion.

Director Erickson offered a motion that was seconded by Director Lindstrom that the Board: (a) is opposed to the joint representation agreement with Ellison, Schneider and Harris and does not have confidence in the attorney chosen to review the ordinances; (b) that JSA proceed with completion of the groundwater basin management tasks it has contracted for; and (c) review of the interim ordinances may be undertaken by another, as yet, unidentified attorney. The motion was adopted unanimously on a vote of 7 – 0.

During the public comment period on this item, David Dilworth stated that a potential conflict of interest could exist, based on Ellison, Schneider and Harris’ involvement with Rancho San Carlos.

Director Potter offered a motion that was seconded by Director Edwards to approve the staff recommendation to contract with IDias Consulting for a not-to-exceed amount of $51,000. The motion was approved on a vote of 5 – 2. Directors Erickson, Edwards, Henson, Lehman and Potter voted in favor of the motion. Directors Lindstrom and Pendergrass voted in opposition to the motion.

No public comment was directed to the Board on this item.

No action was taken on this item.

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

The meeting was adjourned at 9:00 PM.

CALL TO ORDER/ROLL CALL

PLEDGE OF ALLEGIANCE

ORAL COMMUNICTIONS

CONSENT CALENDAR

1. Consider Approval of Minutes from the Regular Board Meeting of February 27, 2003

2. Consider Authorization to Purchase Replacement Vehicle

3. Approve Expenditure of Mitigation Funds to Purchase a Standby Replacement Coldwell Pump (P3/4) for the Sleepy Hollow Steelhead Rearing Facility

4. Consider Response to 2002 Monterey County Grand Jury Report

5. Consider Adoption of Treasurer’s Report for January 2003

GENERAL MANAGER’S REPORT

ATTORNEY’S REPORT

6. Report on 5 PM Closed Session of March 17, 2003

DIRECTORS’ REPORTS

7. Board Comments and Referrals

PUBLIC HEARINGS

8. Consider First Reading of Ordinance No. 107 – Rescinding Ordinance No. 102 and Reinstating Rule 28, Water Use Credit Transfers – and Discussion of Process and Substance Relating to Subsequent Ordinances Concerning Water Use Credit Transfers

9. Approve Scope of Work and Authorize Contract with Sole Source Preparer for Completion of an EIR on a Water Credit Transfer Program

10. Consider Adoption of April through June 2003 Quarterly Water Supply Strategy and Budget

11. Consider Execution of Representation Agreement with Ellison, Schneider and Harris for Development of Seaside Basin Management Ordinances

12. Consider Authorization of Contract with Consultant to Assist with Water Distribution System Permit Processing Associated with Ordinance No. 105