Special Meeting/Workshop

Board of Directors

Monterey Peninsula Water Management District

August 30, 2007




The meeting was called to order at 7:05 PM in the conference room of the Monterey Peninsula Water Management District office.


Directors Present:

David Pendergrass, Chair – Mayoral Representative

Alvin Edwards, Vice Chair – Division 1

Judi Lehman – Division 2

Kristi Markey – Division 3

Larry Foy – Division 5 (Arrived at 8 PM)

David Potter – Monterey County Board of Supervisors


Directors Absent:

Michelle Knight – Division 4


General Manager present:  David A. Berger


District Counsel present:  David Laredo



The assembly recited the Pledge of Allegiance



Mike Dawson, Monterey Alliance of Neighborhoods, addressed the Board during Oral Communications.  He read a list of questions regarding the draft report from the Community Advisory Committee (CAC) to the Board of Directors that were submitted by Greg Pickens a member of the CAC.  The list of questions is on file at the District office.  He requested that the list of questions be included in the draft CAC report. 



1.             Presentation by Monterey Division Manager of California American Water Company on Monterey Division Operations and Rates

                Interim General Manager for the Monterey Coastal Division of California American Water (CAW) and Director of Network for CAW Western Regions, Tom Bunosky, addressed the Board.  He described the water distribution facilities that serve customers within the District, and the regulatory constraints that impact water production, such as State Water Resources Control Board Order 95-10.  He documented water conservation savings achieved by CAW customers, and compared local water consumption levels to other areas in California.  Mr. Bunosky described how the Seaside Groundwater Basin adjudication has affected CAW production.  He also explained the block rate system utilized on the Monterey Peninsula and described the surcharges and fees listed on CAW monthly water bills.  In addition, he explained the procedure used to establish water rates. A summary of Mr. Bunosky’s presentation is on file at the District office and on the District’s website.  Mr. Bunosky and Kent Turner, President of CAW, responded to questions from the Board and members of the public.


                During the question and answer period, the Directors asked for additional information on the following.  Chair Pendergrass requested that the information be submitted to District staff for distribution to the Board and public. (1) CAW rates are higher for areas where water must be moved from low-laying areas to higher elevations.  Does Monterey Regional Water Pollution Control Agency also recover a similar charge?  (2) Requested a list of costs funded by ratepayers and those paid for by investors.  (3) Requested an estimate of costs to be incurred by CAW in the Monterey Division over the next 20 years to ensure compliance with existing and future regulations (see slide 25).


                The following questions and comments were directed to Mr. Bunosky during the public comment period on this item.  (1) Lance Monosoff asked if CAW has ever experienced a financial loss.   Mr. Bunosky replied that losses have occurred in the Monterey Division.  (2) Mike Dawson noted that the percentages shown on slide 19 (Residential Block Rate Quantity Charges) did not correlate with the rates. He expressed displeasure with the fees and surcharges that represent a significant percentage of the monthly CAW water bill.  Mr. Bunosky acknowledged that the percentages show on slide 19 were incorrect but the rates were accurate.  (3) George Riley, Citizens for Public Water, asked that CAW make a greater effort to meet the goal of reducing system losses to 7 percent of production.   He stated that the risk to CAW investors is low with regards to funding studies for a proposed desalination facility, because the rate payers have been ordered to pay for a portion of those costs.  He disagreed with the explanation provided by Mr. Bunosky of how the Public Utilities Commission determines the rate of return that CAW investors will recover.  Mr. Riley asked why the 3% Pension Surcharge was identified on each water bill.   Mr. Bunosky stated that the PUC requires that the information be listed.  (4) Jim Van Vorhis asked if the unaccounted for water use total includes water line leaks, and if there is a target pressure for main lines.  Mr. Bunosky replied that water line leaks are a component of unaccounted for water use and that pressure ranges from 40 lbs. to 150 lbs.



The meeting was adjourned at 9:30 PM.






                                                                                                                David A. Berger, Secretary to the Board