"They had to be rescued by boat," he said.
A foolproof design was needed for the pond so that the levels stayed right, he said. The four ground floor apartments of Mr Morgan's 10-year-old complex were below street level.
Mr Dohnt said after the meeting that when the pond was built at least two years ago the levels at the top were lower but the lip had built up with sand drift and plantings.
The meeting was told all it took to fix the problem on Saturday was a shovel to lower the level on the dune side of the pond.
Adding to the problem was surface flooding along Marine Parade and the impact of monkey tails blocking stormwater grates.
Mr Stewart said an outlet pipe was needed where the washout happened on the pond so the water kept flowing in the right direction.
"You don't go picking a fight with Gareth Morgan."
The pond was a joint project with the Bay of Plenty Regional Council and Coastwatch.
Mr Dohnt said Mr Morgan's insurer was talking to the council's insurer.
The council will be looking at installing more open drainage systems in vulnerable areas.