Meeting Date:           April 19, 2004                                     Budgeted: No

Program/Line Item No.: Services &

Staff Contact:             Rick Dickhaut                                    Supplies – Board Member Comp.

Cost Estimate:  $25,000 Year

General Counsel Approval: Yes

Committee Recommendation: The Administrative Committee reviewed this item on March 10, 2004 and recommended approval.

CEQA Compliance: N/A


SUMMARY:  At the March 15, 2004 Board meeting, the first reading of draft Ordinance No. 113 was approved by the Board.  The ordinance, as originally drafted, would have increased Board member compensation from $30 to $100 for each day of service, up to a maximum of ten days per month.  However, at first reading the maximum number of days of compensation per month was reduced from ten to five.  Exhibit 14-A is a draft of Ordinance No. 113, which would increase Board compensation from $30 to $100 per day, up to a maximum of five days per month.  If adopted at second reading, the ordinance would become effective on the 61st day after it is enacted.


RECOMMENDATION:  The Board should accept public comment, and then approve the second reading of Ordinance No. 113 – An Ordinance of the Board of Directors of the Monterey Peninsula Water Management District Setting Compensation for Board Members.


IMPACT ON STAFF RESOURCES:  The current year’s budget includes $12,000 for Board member compensation.  If approved, the increased compensation will not take effect until late June and will have virtually no effect on the current budget.  The budget for Fiscal Year 2004-2005 would include additional funds to cover the increased compensation.  It is estimated that this increase would bring the total annual cost of Board member compensation to approximately $25,000 per year.


BACKGROUND INFORMATION: The Board of Directors are presently compensated solely for Board meeting attendance, pursuant to Water Code Appendix Section 118-206, at the rate of $30 per meeting, to a maximum of three meetings per month.  This level of compensation has not changed since it took effect in 1978.  The law governing Water Management District Board Member compensation is now set by Water Code Section 20200, et seq.  These provisions of the Water Code were made applicable to the District in 1988, superseding prior law on this topic.  Water Code Section 20201 allows Board Member compensation to be at $100 per day for each day’s attendance at meetings of the Board, or for each day’s service rendered as a member of the Board by the request of the Board.  Director compensation cannot be paid for more than ten calendar days in any month.  An ordinance needs to be adopted by the District pursuant to the Water Code to invoke increased compensation provisions for Board Members.  The Administrative Committee reviewed this item at is March 10 meeting and recommended approval of draft Ordinance No. 113 which would have increased Board compensation to $100 per day, up to a maximum of ten days per month.  On March 15, 2004, the Board approved the first reading of the ordinance, but reduced the maximum number of calendar days per month that compensation can be paid from ten to five.  The staff note and related attachments for this item from the March 15, 2004 Board packet are attached as Exhibit 14-B.