EXHIBIT 1-A

DRAFT MINUTES

Regular Board Meeting

Board of Directors

Monterey Peninsula Water Management District

May 19, 2003

 

 

The meeting was called to order at 7:00 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

 

Board members absent: 

Dave Potter – Monterey County Board of Supervisors

 

Acting General Manager present:  Fran Farina

 

District Counsel present:  David C. Laredo

 

The assembly recited the Pledge of Allegiance.

 

The following comments were directed to the Board.  (1) Harry Rockey read a statement on file at the District office in which he commented that a desalination project might solve Monterey County’s water problems.  (2) Rick Heuer, representing the Monterey Peninsula Tax Payers Association Board of Directors, objected to the use of taxpayer funds to thwart the will of the people as evidenced by the vote on Measure B that called for the dissolution or change in governance of the District.   (3) Marc BJ§que, President of Water for Us, asked the Board to refrain from authorizing $25,000 to oppose Senate Bill 149.  (4) Jack Farmer objected to the proposal to authorize $25,000 to hire a consultant to lobby against SB149.  (5) Larry Foy, representing the Monterey County Hospitality Association, expressed support for Measure B and objected to any action the Board would take to fund activities in opposition to SB149.  He proposed that the Board take a no confidence vote and dissolve the District. (6) Nancy Isakson, representing Monterey Peninsula Citizens for a Water Solution, objected to the proposed expenditure of funds to hire a consultant to lobby against SB149.  She described it as a misappropriation of funds.   (7) Bob McKenzie, Co-Coordinator of the Measure B campaign, expressed opposition to the authorization of funds “to try and thwart and frustrate the intent” of citizens that voted in favor of Measure B.  (8) David Dilworth stated that the question of hiring a consultant to lobby against SB149 is “pure politics.”  According to Mr. Dilworth, those who support SB149 are proponents of a dam project. He further stated that SB149 is an anti-democratic effort.  (9) Sheryl McKenzie, Government Affairs Director for the Monterey County Board of Realtors, stated that SB149 does not mention construction of a dam; neither does it dissolve the District.  The bill does propose a change in leadership.  She charged that the proposal to hire a consultant to lobby against SB149 was a move to “keep your jobs” and “for your own self benefit.”   She asked that a public hearing be conducted on the question of hiring a consultant.  (10) Neal Gardner, a resident of Monterey, charged that the Board’s intent was to control growth and not to provide water.

 

Director Erickson offered a motion to pull items 2, 4 and 7 for separate consideration and to approve the remainder of the Consent Calendar.    Director Lehman seconded the motion.   The Board approved the motion on a vote of 6 – 0.   Directors Edwards, Erickson, Henson, Lehman, Lindstrom, and Pendergrass voted in favor of the motion.  Director Potter was absent.

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Adopted.

 

 

 

 

 

Director Lehman made a motion to approve the staff recommendation and authorize the expenditure of $30,000 to employ a consultant to promote Resolution 2003-01.  Director Erickson seconded the motion.

 

Director Erickson proposed an amendment to the motion.  The motion should state that the lobbyist will work to protect the voters’ rights to elect water directors directly and locally, to approve water supply projects, and to retain the right to referendum on bonds, and all other democratic rights currently held by the voters of this District.   Director Lehman seconded the amendment.  The motion was adopted on a vote of 4 – 2.  Directors Erickson, Henson, Lehman and Lindstrom voted in favor of the motion.  Directors Edwards and Pendergrass voted against the motion.  Director Potter was absent. 

 

Public comment on this item was received during Oral Communications.  In addition, the following public comments were presented during the Board’s consideration of this item.  (1) Lou Haddad, a resident of Monterey, expressed opposition to SB149 and to the proposal to hire a consultant to lobby against the bill.   He suggested that the Board members write letters to legislators and appear before legislative committees urging them to oppose the bill.  (2) Alan Samuels urged the Board to authorize funds to hire a consultant to lobby against SB149.  He stated that most public agencies retain lobbyists.

 

 Adopted.

 

 

 

 

 

 

 

Director Erickson proposed a motion to authorize an expenditure of $3,000 to retain Central Coast Surveyors to perform tasks specified in the staff recommendation.  Director Lehman seconded the motion.   It was approved on a vote of 5 – 1.  Directors Edwards, Erickson, Henson, Lehman, and Lindstrom voted in favor of the motion.  Director Pendergrass voted in opposition to the motion.  Director Potter was absent.   No public comment was directed to the Board on this item.

 

Adopted.

 

 

 

 

 

 

 

 

Adopted.

 

 

 

 

 

Director Erickson offered a motion to approve the deed restriction templates with the following amendments to the templates that were distributed at the Board meeting titled Minor Revisions to Deed Restriction Templates (on file at the District office).  Delete the reference to NUMBER and TYPE OF DWELLING UNITS in paragraph 2, page 2 of the templates for Affordable Housing and Low-Income Housing.   Director Edwards seconded the motion.  It was approved on a vote of 6 – 0.   Directors Edwards, Erickson, Henson, Lehman, Lindstrom and Pendergrass voted in favor of the motion.   Director Potter was absent.  No public comment was presented to the Board on this item.

 

Adopted.

 

 

 

 

 

 

 

 

 

Adopted.

 

 

 

 

 

Adopted.

 

 

 

Acting General Manager Farina reported that on May 10, 2003, she attended a tour of the Santa Barbara desalination plant. She noted that the facility is not operational.   She circulated photographs of the facility.

 

 

District Counsel Laredo reported on the Closed Session of April 21, 2003.  He stated that status reports were provided to the Board on the items listed on the agenda.  No reportable action was taken.

 

Mr. Laredo reported on the May 14, 2003 hearing before the Public Utilities Commission (PUC) regarding California-American Water Company’s Application No. 97-03-052 dealing with rate aspects and lead agency status for Cal-Am’s proposed water supply project.  Mr. Laredo read portions of the hearing transcript, specifically, comments made by Cal-Am staff as to whether or not Cal-Am has withdrawn its application for the Carmel River Dam Project from the District, and if any formal communication has occurred between Cal-Am and the District regarding whether work related to the dam should continue.  Under questioning by the PUC, Cal-Am staff stated that the Carmel River Dam Project “clearly has not been abandoned.”  Mr. Laredo stated that Cal-Am was seeking ratemaking approval as if the dam project had been abandoned.   Mr. Laredo noted that Cal-Am has scheduled ex parte meetings with PUC Commissioners Kennedy, Lynch and Wood on May 23, 2003 regarding lead agency status. 

 

 

Acting General Manager Farina responded to questions raised by Director Edwards regarding the possibility of conducting a District-wide authorizing/binding election on November 4, 2003.  She stated that an item authorizing funding for an election will be considered at the May 29, 2003 Board meeting.   If the Board decides to place a measure on the ballot, it could be either advisory or binding.  The ballot measure language must be submitted to the Monterey County Elections Department by July 24, 2003.  The cost to the District to conduct the election would be increased, if the Board decided to conduct a polling place election instead of participating in the mail-ballot election.

 

 

Director Erickson offered a motion to continue this item to the June 16, 2003 Board meeting.   Director Lehman seconded the motion.

 

Director Erickson offered an amendment that was seconded by Director Lehman, that all Board comments be incorporated into the budget for Administrative Committee review.  Comments on the budget must be submitted to staff by Tuesday, June 3, 2003.  The motion was approved on a vote of 6 – 0.  Directors Edwards, Erickson, Henson, Lehman, Lindstrom and Pendergrass voted in favor of the motion.   Director Potter was absent.

 

The following comments were directed to the Board during the public hearing on this item.  (1) David Dilworth complimented staff on preparation of a budget that was presented in a clear and useful format.  He asked why the draft budget did not include revenue from Cal-Am to fund studies on the water supply project EIR.  (2) Harry Rockey stated that the District and the City of Santa Barbara experience similar water problems.  He noted that the District might consider public ownership of the water distribution system, instead of ownership by Cal-Am.

 

Director Pendergrass offered a motion to approve the second reading of Ordinance No. 107, including the findings and a determination that the ordinance qualifies for a statutory exemption under Section 15270 of the California Environmental Quality Act (CEQA).   Director Edwards seconded the motion.   It was approved on a vote of 5 – 1.  Directors Edwards, Henson, Lehman, Lindstrom and Pendergrass voted in favor of the motion.  Director Erickson was opposed to the motion.  Director Potter was absent.    No comments were directed to the Board during the public hearing on this item.

 

Director Lehman offered a motion to approve the determination that Ordinance No. 108 is exempt from CEQA according to sections 15307 and 15308 of the CEQA Guidelines.    Director Erickson seconded the motion.    It was approved on a vote of 5 – 1.  Directors Edwards, Erickson, Henson, Lehman, and Lindstrom voted in favor of the motion.  Director Pendergrass voted in opposition to the motion.  Director Potter was absent.

 

Director Lehman offered a motion to approve the second reading of Ordinance No. 108 together with the findings and the determination that the ordinance is exempt from CEQA.   Director Erickson seconded the motion.   It was approved on a vote of 4 – 2.  Directors Erickson, Henson, Lehman and Lindstrom voted in favor of the motion.   Directors Edwards and Pendergrass voted in opposition to the motion.   Director Potter was absent.   No public comment was directed to the Board during the public hearing on this item.

 

The meeting recessed at 8:05 PM and reconvened at 8:10 PM.

 

Director Erickson proposed a motion to: (a) approve the request for proposal text; (b) change the date that proposals must be returned to the District from June 20, 2003 to any date between June 25th and July 7;  (c) direct that the EIR analyze Alternatives 1 and 2 described on page 102 of the Board packet; (d) the project description is defined as  “terminate the water credit program;” and (e) the mailing list is confirmed but any suggested changes and additions should be submitted to staff as soon as possible.  No names should be deleted.  Director Lehman seconded the motion.  The motion was approved on a vote of 6 – 0.  Directors Edwards, Erickson, Henson, Lehman, Lindstrom and Pendergrass voted in favor of the motion.  Director Potter was absent.

 

Director Pendergrass proposed a motion to amend the title of the study to the following, “Impacts of the Action on Ordinance No. 102 Which is Termination of the Water Credit Transfer Program.”   Director Edwards seconded the motion.  The motion failed on a vote of 2 to 4.   Directors Pendergrass and Edwards voted in favor of the motion.  Directors Erickson, Henson, Lehman and Lindstrom voted against the motion.  Director Potter was absent.

 

The following comments were directed to the Board during the public comment period on this item.  (1) Mark BJVque, a resident of Monterey, stated that approximately 200 acre-feet of water was transferred under the water credit transfer program.  He opined that it should not be illegal to change uses of water to suit the customer’s needs.  (2) David Dilworth spoke in support of preparation of an EIR on a water credit transfer program. He suggested that the Notice of Preparation be circulated before a consultant is selected to prepare the report.  He asked that a request for proposals not be sent to the consultant that prepared the Carmel River Flow Threshold Report.

 

Director Lindstrom proposed a motion to authorize an expenditure of $26,000 to contract with Shannon Executive Search to conduct a search for a general manager.   Director Erickson seconded the motion.    It was approved on a vote of 4 to 2.  Directors Erickson, Henson, Lehman and Lindstrom voted to approve the motion.   Directors Edwards and Pendergrass voted against the motion.   Director Potter was absent.   No public comment was directed to the Board during the public comment period on this item.

 

The meeting was recessed at 9:00 PM and reconvened at 9:05 PM so the Board could consider agenda items 2, 4 and 7.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The meeting was adjourned to Closed Session at 9:45 PM.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Closed Session adjourned at approximately 10:30 PM.

 

CALL TO ORDER/ROLL CALL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PLEDGE OF ALLEGIANCE

 

ORAL COMMUNICATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSENT CALENDAR

 

 

 

 

 

 

1.                   Consider Approval of Minutes from the Regular Board Meetings of April 21, 2003 and May 2, 2003

 

2.                   Consider Authorization of Funds to Employ Consultant to Promote Resolution 2003-01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.                   Consider Authorization to Hire Consultants for Firewall Configuration, Setup, Exchange and Back Up Maintenance

 

4.                   Consider Authorization of Funds to Prepare Maps for Implementation of Revised Water Distribution System Regulations

 

5.                   Consider Authorization of Funds for ALERT Gage Maintenance Agreement with Monterey County Water Resources Agency for Fiscal Year 2002-2003

 

6.                   Consider Authorization to Purchase Equipment for Information Systems Support

 

7.                   Consider Approval of Deed Restriction Templates

 

 

 

 

 

 

 

 

 

8.                   Status Report on Assessment of Feasibility of Brine Discharge Via Monterey Regional Water Pollution Control Agency Outfall

 

 

9.                   Receive Additional Analysis on Water Year 2002 Annual Water Production Reporting Summary

 

10.                Consider Adoption of Treasurer’s Report for March 2003

 

GENERAL MANAGERS REPORT

 

 

 

 

 

ATTORNEY’S REPORT

Report on Closed Session of April 21, 2003

 

Report on May 14, 2003 California Public Utilities Commission Hearing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTORS’ REPORTS

11.                Board Comments and Referrals

 

 

 

 

 

 

 

 

 

 

PUBLIC HEARINGS

12.    Consider Draft Fiscal Year 2003-2004 MPWMD Budget

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13.    Consider Second Reading and Adoption of Ordinance No. 107 – Rescinding Ordinance No. 102 and Reinstating Rule 28, Water Use Credit Transfers

 

 

 

 

14.    Consider Second Reading and Adoption of Ordinance No. 108 – An Ordinance of the Monterey Peninsula Water Management District Amending Rule 28-B to Clarify the Discretionary Review of Water Credit Transfer Applications by Board of Directors

 

 

 

 

 

 

 

 

ACTION ITEMS

15.    Consider Approval of Request for Proposals for Preparation of EIR on Termination of Water Credit Transfer Program

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INFORMATIONAL ITEMS/STAFF REPORTS

  1. Letters Received
  2. Committee Reports
  3. Strategic Planning Initiatives Progress Report
  4. Monthly Water Supply Project Status Report
  5. Carmel River Fishery Report
  6. Water Conservation Program Report

 

  1. Water Use Credit Transfer Status Report
  2. Monthly Allocation Report
  3. Monthly Cal-Am Sales Report
  4. Monthly Cal-Am Production Report
  5. Production Report – CAWD/PBCSD Wastewater Reclamation Project
  6. Monthly Water Supply Status Report

 

ADJOURN TO CLOSED SESSION

  1. Conference with Legal Counsel – Anticipated Litigation – Significant Exposure to Litigation Exists Pursuant to Subdivision (b) (3) (D) of Gov. Code Section 54956.9 (One Case)
  2. Conference with Legal Counsel – Existing Litigation (Gov. Code Section 54956.9)

a.        California-American Water Company Application 97-03-052 to the Public Utilities Commission for a Certificate of Public Convenience and Necessity to Construct and Operate a 24,000 Acre-Foot Carmel River Dam and Reservoir and to Recover All Costs in Connection Therewith in Rates

b.       Mary Currier, Chris Currier and Roy and Jeanell Kaminske v MPWMD, Case No. M59299, Monterey County Superior Court

c.        Cities of Seaside, Carmel, Del Rey Oaks, Monterey, Pacific Grove and Sand City v MPWMD, Case No. M59441, Monterey County Superior Court

 

ADJOURNMENT

 

 

 

                                                                                                                                ___________________________________

                                                                                                                                Fran Farina, Secretary to the Board

 

U:\staff\word\boardpacket\2003\2003boardpacket\20030616\ConsentCalendar\1\item1_exh1a.doc

A Tavani/6-11-03/Board meeting minutes/8 pages