EXHIBIT 1-B

DRAFT MINUTES

Special Board Meeting

Board of Directors

Monterey Peninsula Water Management District

May 29, 2003

The meeting was called to order at 7:10 PM 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 Dave Potter – Monterey County Board of Supervisors (arrived at approximately 7:30 PM) Board members absent: Alvin Edwards – Division 1 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) Edwin Lee spoke in opposition to the Board’s decision to hire a consultant to lobby against Senate Bill 149. (2) Marc BJVque, President of Water for Us, spoke in opposition to the Board’s decision to hire a consultant to lobby against SB149. (3) Branko Stojanovski expressed frustration and anger over customer service provided by the District. According to Mr. Stojanovski, it took five days to complete the processing of his water permit application. He stated that issuance of the water permit was held up due to the vacation of a District employee. He urged the Board to take action to remedy this situation. On a motion by Director Lehman and second by Director Erickson, the Board approved the Consent Calendar on a vote of 5 – 0. Directors Edwards and Potter were absent. Approved. Approved. Approved. Chair Henson announced that the order in which agenda items would be called had been modified. The Board would consider the items in the following order: 6, 7, 4 and 5. District staff members Joe Oliver, Water Resources Manager, and Darby Fuerst, Senior Hydrologist, gave the presentation. An outline of their presentation is on file at the District office. The following persons addressed the Board on this item. (1) Marc BJVque asked the following questions: (a) how does amplitude compare to depth of total aquifer; (b) how much information regarding the offshore fresh water zone could be derived from seismographic techniques such as three-dimensional seismography and at what cost; (c) what is the District’s best guess as to the percent of production reduction from aquifers relative to 4,400 acre-feet per year to stabilize aquifer levels; (d) how much of the required reduction in production will come from superior water rights, adjudicated rights, etc.; and (e) will the future reduction in natural water sources be reflected in any way in a new project? (2) Tex Irwin asked how the community would adhere to SWRCB Order 95-10 if an ordinance were adopted that required decreased production from the Seaside Groundwater basin. Would production from the Carmel River be increased? What would the solution be? On a motion by Director Pendergrass and second by Director Lehman, the Board approved the Water Supply Forecast on a vote of 4 – 0. Directors Henson, Lehman, Lindstrom and Pendergrass voted in favor of the motion. Directors Edwards, Erickson and Potter were absent. No comments were directed to the Board during the public comment period on this item. Director Potter proposed a motion to affirm Ordinance No. 87 as adopted, that the water allocation will continue in effect for use on site, and that on site water credits are available for use on site at the CHOMP campus. Future water credits are undetermined in certain areas and will be reviewed by District staff to determine applicability. This item should be brought back to the Board in 30 days. Director Pendergrass seconded the motion. Director Potter proposed an amendment to the ordinance that District staff review monitoring conditions related to a water consumption cap that have been imposed in the past, and incorporate monitoring conditions on the CHOMP project that allow for a regular review by the Board. Director Pendergrass seconded the motion. The amended motion was approved by the Board on a vote of 6 – 0. Directors Erickson, Henson, Lehman, Lindstrom, Pendergrass and Potter voted in favor of the motion. Director Edwards was absent. The following comments were received during the public comment period on this item. (1) Steven Packer, President and Chief Financial Officer for Community Hospital of the Monterey Peninsula (CHOMP), described how plans for the expansion of CHOMP had changed since 1997 when Ordinance No. 87 was adopted. In 1999, CHOMP recognized the need to modify its 1995 Master Plan due to increased inpatient occupancy rates and outpatient visits. In addition, patients seeking cardiovascular care were forced to travel out of the local area for treatment. The revised Master Plan includes the addition of the Forest Pavilion complex that provides for a net increase of 48 beds. With the expansion, total square footage decreased from 270,000 to 215,000 square feet. In response to a question from the Board, Mr. Packer stated that he could provide a letter to the District stating that the water allocation for CHOMP will be exhausted with completion of the acute care facility. No water from the allocation will be available for future development on other properties owned by CHOMP. He also stated that when the California Department of Forestry facility was demolished, the water meter was transferred to CHOMP and is included in the hospital’s record of total water consumption. (2) Thomas Jamison, legal counsel to CHOMP, urged the Board to retain Ordinance No. 87 as originally adopted and to guarantee the water allocation for the expansion at CHOMP. He noted that in October 2002, CHOMP submitted a peer review of its water use calculations, as requested by the Board, but the water situation is still unresolved. Mr. Jamison stated that according to Ordinance No. 87, water saved by retrofitting the walk-in refrigeration unit and cooling tower should be applied as water credit to the project. During Board discussion of this item, Mr. Jamison agreed that CHOMP could provide a letter clarifying that the water allocation would only be utilized on site. (3) Nancy Isakson encouraged the Board to authorize the continuation of Ordinance No. 87 and the water allocation for CHOMP so that health needs in the community will be met. Director Erickson proposed a motion that was seconded by Director Lehman to authorize an expenditure of $25,000, if a November 4, 2003 District-wide authorizing vote is conducted. The motion was adopted on a vote of 4 – 2. Directors Erickson, Henson, Lehman and Lindstrom voted in favor of the motion. Directors Pendergrass and Potter were opposed. Director Edwards was absent. Marc BJVque addressed the Board on this item. He asked the Board to provide more information on the proposed ballot measure before authorizing funds to conduct an election. The meeting recessed at 8:50 and reconvened at 9:00 PM for consideration of items 4 and 5. Directors Erickson and Potter departed from the meeting during the recess. The meeting was adjourned at 9:55 PM.

CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Adoption of Resolution Calling for a Mail Ballot Election on November 4, 2003 to Elect Directors in Voter Divisions 3, 4 and 5 2. Consider Adoption of Policy Regarding Access to Non-Public Areas of the MPWMD Office 3. Consider Adoption of Policy Regarding Identification of Public Records PRESENTATIONS 4. Progress Report on Development of Seaside Basin Groundwater Management Plan ACTION ITEMS 5. Receive Water Supply Forecast for Period of May 1, 2003 – September 30, 2004 6. Review Ordinance No. 87 – Allocation for Community Hospital of Monterey Peninsula 7. Consider Authorization of Funds for November 4, 2003 Vote ADJOURNMENT

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Fran Farina, Secretary to the Board

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