EXHIBIT 1-B

DRAFT MINUTES

Special Board Meeting

Board of Directors

Monterey Peninsula Water Management District

May 2, 2003

The meeting was called to order at 8 AM in the District Conference Room. Board members present: Zan Henson, Chair – Division 5 Judi Lehman, Vice Chair – Division 2 Molly Erickson – Division 3 Kris Lindstrom – Division 4 David Pendergrass – Mayoral Representative Board members absent: Alvin Edwards – Division 1 Dave Potter – Monterey County Board of Supervisors Acting General Manager present: Fran Farina was not present due to attendance at other District business outside of the office. Rick Dickhaut, Chief Financial Officer, was present. District Counsel present: David C. Laredo The assembly recited the Pledge of Allegiance. George Riley addressed the Board. He expressed support for Resolution No. 2003-01, and cited several reasons for his opposition to SB149. He described SB149 as “undemocratic.” He took issue with the weighted vote scenario proposed, because it would allow two well-populated cities and one smaller city to block any proposal. On a motion by Director Erickson and second by Director Lehman, the Board authorized the General Manager to carryover approximately $85,000 of remaining unspent funds to apply to the Phase 2 budget as outlined in the staff recommendation. The motion was approved on a vote of 4 – 1. Directors Erickson, Henson, Lehman and Lindstrom voted in favor of the motion. Director Pendergrass voted against the motion. Directors Edwards and Potter were absent. On a motion by Director Lehman and second by Director Lindstrom, the resolution was approved with the amendments listed below. The motion was approved on a vote of 4 – 1. Directors Erickson, Henson, Lehman and Lindstrom voted in favor of the motion. Director Pendergrass voted in opposition to the motion. Directors Edwards and Potter were absent. Amendments 1 through 3 – proposed by Director Erickson – insert after paragraph 6. Whereas the proposed change to the form of governance from direct election to appointment further deprives the voters of the District of the rights of initiative recall and referendum. Whereas SB149 proposes to change existing law to delete voter approval for any District proposed water supply project, and to specifically delete the right of the voters to petition for referendum. Whereas the language of SB149 further negatively affects current democratic process, the voters’ rights, the Board’s accountability, environmental protection, and other fundamental aspects of the Monterey Peninsula, the Water District, and the voters in the District. Amendment 4 – proposed by Director Henson – add as the final “Whereas” paragraph. Whereas the District has recently proposed a study of the environmental effects of a project to solve the current water shortfall confronting the Monterey Peninsula and provide opportunity for future expansion that would be approved by the voters. A motion was proposed by Director Erickson to include the following wording into the resolution, but there was no second to the motion: Whereas the majority of this Board was elected to provide a different viewpoint, to pursue a water supply project that is acceptable to the voters, and is pursuing such a project to present to the voters in 2002. David Dilworth addressed the Board during the public comment period on this item. He urged the Board to support Resolution 2003-01. He expressed his reasons for opposing the bill, such as wording that would deny the electorate a vote on any water supply project. He described SB149 as an outrage to the voters. The meeting was adjourned at 8:55 AM.

CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Approval of Carryover of Phase 1 Funds to Phase 2 Scope of Work for Water Supply Project EIR 2. Consider Resolution Opposing SB149; Authorize the Chair or his Designee to Take Appropriate Action in Opposition to SB149 3. Consider Resolution Opposing SB149; Authorize the Chair or his Designee to Take Appropriate Action in Opposition to SB149 ADJOURNMENT

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Fran Farina, Secretary to the Board

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