Exhibit 18-C

FINAL MINUTES

Monterey Peninsula Water Management District

Water Demand Committee

May 2, 2002

I. Call to Order

The meeting was called to order at 8:35 AM in the District=s conference room.

Committee members present: Molly Erickson, Chair

Judi Lehman

Zan Henson

Committee members absent: None

Staff members present: Ernesto A. Avila, General Manager

Stephanie Pintar, Water Demand Manager

Arlene Tavani, Executive Assistant

II. Consider Approval of Minutes from the March 8, 2002 Committee Meeting

On a motion by Director Lehman and second by Director Henson, the committee approved the minutes of March 8, 2002 with one correction: on page 2, paragraph 5, the minutes should identify Ken and Sharene Virnig as the appellants, and Murray Smith as the water permit applicant. The motion was approved on a vote of 3 - 0.

III. Review of the Forest Hill Manor Special Circumstances Permit

Director Henson announced that he had been retained to represent the Pacific Grove Action Committee (a group that has raised objections to the Forest Hill Manor Project), therefore, he would not participate in the discussion on this item due to a possible conflict of interest.

Staff was directed to place on the June 2002 Water Demand Committee agenda a discussion of: (a) how to assure a reduction in water use on special circumstances projects that exceed their permitted water use; (b) how to address a situation in which a jurisdiction has depleted its water allocation, but must transfer water from its allocation to a special circumstances project that has exceeded its permitted water use; (c) proven water conservation methods such as grey water and ozone treatment systems. The Board of Directors might also discuss on June 17, 2002, ways to assure a reduction in water use on special circumstances projects that exceed their permitted water use.

Director Erickson suggested that the Water Demand Committee or the Board of Directors review annually water use records for all projects that have received special circumstances permits, to assure that actual consumption is within permitted water use limits.

IV. Report on Cal-Am Water Use at Monterey Sports Center

Stephanie Pintar responded to questions from the committee on water use at the Sports Center. Committee members discussed the need to develop more accurate commercial water use factors. In addition, the committee members expressed an interest in utilizing historical water use records to establish water use credit. District staff explained that applicants have encountered difficulty in obtaining more than two years worth of historical water use data from the California-American Water Company. A concern was also raised about the possibility that applicants would attempt to document a high historic water use, by increasing water use significantly at a site prior to requesting a water-use credit. Director Erickson requested that the committee review this item in the future and that the General Manager report on how the water-use factors are presently applied, and suggest ways to prevent abuse of the water-use credit system.

Director Henson offered a motion that was seconded by Director Erickson, to initiate a dialogue on the District=s data needs by inviting a representative from Cal-Am to address the committee on the water company=s record keeping practices.

The motion was amended by Director Erickson to request that the Cal-Am representative be an employee with decision making authority. The motion was approved on a vote of 3 - 0.

V. Concur with Approach Regarding Proposed Changes to Ordinance No. 96

The committee agreed to defer this item for discussion at a Water Demand Committee meeting set for May 6, 2002 at 4:30 PM.

Public Comment: Fran Farina asked for additional information on the amount of water that was being produced from upland formations, outside of the alluvium.

VI. Commercial Water Use Factors

The committee discussed the present commercial water use factor system. Director Henson noted that if the number of water use factor categories were increased, the system would be more accurate, but there would be much less flexibility for the applicants. District staff advised the Board that the Strategic Planning Initiative includes a plan to hire a consultant to prepare a comprehensive study of water use factors based on actual water use records. The committee suggested that District staff be more pro-active on suggesting innovative water savings methods. Staff should begin development of a list of water saving measures that are not currently required but could be utilized in commercial buildings, such as installation of shower timers. Director Erickson requested that the Board be provided: (a) an interpretation of how water use factors are applied; and (b) assurance that staff has the ability to impose conditions such as shower timers.

Public Comment: Fran Farina stated that during drought periods, members of health clubs often showered at the gym instead of at home. Under those circumstances, the use of timers on showers would help reduce water use.

VII. Provide Direction to Staff on Processing a Change from a Commercial to Residential Water Use

Stephanie Pintar explained that a local church planned to change the use of the church building to residential. She asked for direction on how to establish the water credit. The committee discussed the issue and asked that staff proceed to verify the original use of the building, and document the number of fixtures installed in the building. This item was deferred for further consideration at the May 22, 2002 Water Demand Committee meeting, with a goal of bringing it to the full Board for consideration on June 17, 2002.

VIII. Adournment

The meeting was adjourned at approximately 10:00 AM.

U:\staff\word\boardpacket\2003\2003boardpacket\20030421\InfoItems_Reports\18\item18_exh18c.doc

A Tavani, Water Demand Committee, Minutes, 3 pages