Board of Directors
Monterey Peninsula Water Management
CALL TO ORDER/ROLL CALL
The meeting was called to
order at 7:05 PM in the conference room of the Monterey Peninsula Water
Management District office.
David Pendergrass, Chair – Mayoral
Alvin Edwards, Vice Chair – Division 1
Judi Lehman – Division 2
Kristi Markey – Division 3
Foy – Division 5 (Arrived at 8 PM)
Potter – Monterey County Board
Michelle Knight – Division 4
General Manager present: David A. Berger
District Counsel present: David Laredo
PLEDGE OF ALLEGIANCE
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
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
A. Berger, Secretary to the Board