EXHIBIT 1-A

DRAFT MINUTES

Regular Meeting

Board of Directors

Monterey Peninsula Water Management District

July 21, 2003

The meeting was called to order at 7:15 PM in the Seaside City Council Chambers.

Directors present:

Alexander Henson, Chair – Division 5

Judi Lehman, Vice Chair – Division 2

Alvin Edwards – Division 1

Molly Erickson – Division 3

Kris Lindstrom – Division 4

David Potter – Monterey County Board of Supervisors

David Pendergrass – Mayoral Representative

Acting General Manager present: Fran Farina

District Counsel present: David Laredo

The assembly recited the Pledge of Allegiance

The following comments were directed to the Board during Oral Communications. (1) Edwin Lee expressed concerns regarding the District’s ex parte meetings with CPUC members. He also stated his opposition with the District hiring a lobbyist to assist with promotion of Resolution 2003-01 expressing opposition to SB149. (2) Nancy Isakson, referred to item 13 of the Consent Calendar. She disagreed with the categorization of Water Demand Committee as an ad-hoc committee, since it has been an ongoing and established committee that continues to meet regularly regarding certain matters. She encouraged the Board to categorize all committees as standing committees and notice them as subject to the Brown Act. (3) Richard Andrews, General Manager, Pebble Beach Community Services District (PBCSD), stated that on February 27, 2003 the MPWMD Board tabled a request from PBCSD that it be allowed to use some of the water entitlement from an adjoining 2.2 acre parcel on its existing property. He asked that the Board place an item on its agenda in the near future for action on this request. (4) David Dilworth, Helping Our Peninsula’s Environment (HOPE), expressed opposition to any use of Pebble Beach Company water entitlement and asked that CEQA review be a requirement of the contract. (5) Lou Haddad, stated he has not received a response to his letter sent to the Board in December 2002. He also questioned miscellaneous reimbursement payments to staff shown in the Transaction Listing, an exhibit to the monthly Treasurer’s Report. Mr. Haddad asked for a response letter explaining the reimbursements. (6) Bill Woodworth, stated that the document Water Is Life prepared by the Water Awareness Committee contains many false statements, makes no reference to cisterns, and should not be an official public document.

Chair Henson reported that he received a request to pull item 5. He also pulled items 12 and 13 because Acting General Manager Fran Farina reported that corrections needed to be presented to the Board. On a motion by Director Pendergrass and second by Director Lehman, the remainder of the Consent Calendar was approved unanimously on a vote of 7-0.

Approved.

Director Erickson made a motion to approve staff’s recommendation to approve the 2003 MOA with the resolution shown on page 25 of the Board packet; the revised Designation of Responsibilities shown on page 26 and 27 that District staff presented to the Board at the July 21, 2003 meeting (on file at the District office) but not designated as such; the revised resolution as handed to the Board at the dais on July 21, 2003 (on file at the District office); and Exhibit B, SWRCB Order WRO 2002-0002, shown on page 29. Director Lindstrom seconded the motion. The motion was approved unanimously on a vote of 7-0.

Approved.

Director Erickson made a motion to approve the amended language to the last paragraph of the draft resolution, as recommended by the Administrative Committee on July 15, 2003, shown as Exhibit 12-A on page 58 of the Board packet. Director Lehman seconded the motion. The motion was approved unanimously on a vote of 7-0.

Director Erickson made a motion to bring this item back to the full Board on September 15, 2003 as recommended by the Administrative Committee on July 15, 2003. Director Lehman seconded the motion. The motion was approved on a 6-0 vote. Directors Edwards, Pendergrass, Lehman, Henson, Erickson and Lindstrom voted in favor of the motion. Director Potter was not present.

Approved.

Acting General Manager Farina reported on several items. (1) Water Credit Transfer EIR Request for Proposal (RFP) – District staff communicated with three consulting firms who expressed interest in submitting an RFP. The District has extended its deadline for receipt of the RFPs. (2) Sleepy Hollow Steelhead Rearing Facility – The facility is operational with all pumps functioning. Steelheads are currently being housed at the facility. (3) Executive Assistant to the General Manager -- Arlene Tavani is recovering nicely from surgery. The temporary person who was hired to assist staff is working out well. (4) GIS/Graphics position – An offer for employment was accepted. The new employee will begin work on September 15, 2003. (5) Temporary HDD Testing -- The District has received its permit from the City of Sand City. (6) State Parks Department -- The District is expecting to receive its permit soon. (7) Water Demand Committee -- the meeting packets will be distributed on Tuesday, July 22, 2003. (8) California-American Water Company (Cal-Am) -- Steve Leonard, General Manager, provided an update to the Board on the San Clemente Dam retrofit project and the Ryan Ranch Water Distribution System wells that evening.

District Counsel Laredo reported on the Closed Session of June 16, 2003. District Counsel provided status reports but no action was taken by the Board. The Board also conferred with Counsel on one item of anticipated litigation but no action was taken.

Director Erickson stated that it is important for the District to have a system of tracking incoming letters and responses and would like to see such a system in place. She also requested that Acting General Manger Farina send a letter of response to Lou Haddad explaining the pre-tax employee savings plan that reimburses employees for medical and childcare expenses.

Director Potter asked that the Board discuss at the August meeting formulation of a policy statement stipulating that items pulled from the Consent Agenda be heard immediately following approval of the Consent Agenda so that the public is not forced to wait through the balance of the items that are on the agenda.

Director Potter proposed a motion to adopt the staff recommendation to approve Application #20021031CAN to amend the Cañada Woods Water Distribution System, and approve the associated Finding and Conditions. Director Edwards seconded the motion.

Director Henson proposed an amendment to the motion, to change the last sentence of Condition 19 on page 152 to read, “If this condition is not met, the Permit shall be subject to revocation.” Director Potter seconded the motion.

Director Erickson proposed an amendment to Director Henson’s motion that Condition No. 6 on Page 150 be amended to indicate that the two-way dual metering system is to be operational before the permit is valid. Director Potter seconded the motion.

The motion was adopted on a vote of 5 – 2. Directors Edwards, Pendergrass, Lehman, Henson and Potter voted in favor the motion. Directors Erickson and Lindstrom voted in opposition to the motion.

The following comments were directed to the Board during

the public hearing on this item. (1) Robert Greenwood, Carmel Valley Association, urged the Board to delay approval of the proposed permit until the applicant provides adequate engineering and logistical information about the two-way dual metering system. (2) David Dilworth, HOPE, stated the inadequacies in the report require that the projects should be combined and be put on hold to allow for updated CEQA review and that no free water be given to the applicant. (3) Bill Woodworth, asked why no consideration has been given to development of a dam on the Arroyo Seco river.

The meeting was recessed at 9:10 PM and reconvened at 9:25 PM

Director Erickson offered a motion to approve staff’s recommendation and find that special circumstances exist for CHOMP, and substantial uncertainty exists regarding the projected water use proposed by CHOMP. In addition, the Board shall find that the effort to save water on-site should work cooperatively with efforts to conserve water within the District as a whole. The Board shall also adopt the Conditions of Approval and the amendments to Condition 1 and 4 that District staff presented to the Board at the July 21, 2003 Public Hearing (on file at the District office). Director Erickson also proposed amendments to Condition No. 7-A and No. 9. Condition 7-A shall read, “Within 21 days of a March Special Circumstances Review Form that notes actual water use in excess of 119.28 acre-feet, CHOMP shall submit to the District a plan to maintain water use within the hospital water use limit. Condition 9 language shall be deleted with the following language substituted: “CHOMP shall make its best efforts to initiate water saving efforts that avoid, or keep to a negligible level, cross-media environmental impacts (e.g. going from silver to plastic-ware for food service)”. Director Lindstrom seconded the motion.

The motion was adopted unanimously on a vote of 7-0.

The following comments were directed to the Board during the public hearing on this item. (1) David Dilworth stated the Board needs to look at the totality of the impacts of water use related to the hospital and asked the Board to consider whether off-site transfers would be possible in this situation. (2) Tex Irwin suggested the District use records from the hospital to monitor its future water use but not for determining use now. He also stated that water for the project should come from the

community benefit allocation. (3) Marc Beique urged the

Board to consider the hospital’s request to delete Condition 9.

He stated the hospital protects the public health and that it should be encouraged and assisted.

Director Pendergrass made a motion to adopt the July through September 2003 Quarterly Water Supply Strategy and Budget. Director Edwards seconded the motion. The motion was adopted by the Board on a vote of 6-0. Director Potter was not present.

During the public hearing on this item, David Dilworth, HOPE, asked two questions: 1) where do leaks come into the equation, and 2) will we ever recover the 160 acre-feet that is going to be pulled out for the injection and recovery project.

Director Lindstrom proposed a motion to reject the report as unusable and deem it to have no value to CEQA determinations of special significance. Director Erickson seconded the motion. The motion was adopted by the Board on a 6-0 vote. Director Potter was absent.

During the public hearing on this item Robert Greenwood, Carmel Valley Association, stated that the National Marine Fisheries Service, California Department of Fish and Game and Carmel River Steelhead Association all agree with the Carmel Valley Association’s point of view in considering the Threshold Report to be a waste of time and money because it develops thresholds too low to be accepted in any viable water supply project. David Dilworth, HOPE, stated he hopes the Board does not choose option two and that the consultant be removed from any approved consultant list used in the future by the District.

Director Erickson proposed a motion to adopt the resolution presented on pages 199 and 200 of the Board packet, and insert the following ballot measure text under number 4, “Shall the Water Board continue to ban water profiteering and water credit transfers?” Director Lindstrom seconded the motion.

The motion failed on a vote of 4 to 3. Directors Edwards, Lehman, Pendergrass and Potter voted against the motion. Directors Erickson, Henson and Lindstrom voted in favor of the motion.

The following comments were presented during the public comment period. (1) John Fischer stated that the measures, as proposed, were straight-forward but did not address the issue of remodels. (2) David Dilworth thanked Director Edwards for his efforts to provide more public participation, democracy and input. He stated he would like to see the following question, “Shall the people of the water district require a vote on all water projects that affect the District.”

There was no discussion of these items.

The meeting was adjourned at approximately 10:30 PM.

U:\staff\word\boardpacket\2003\2003boardpacket\20030828\ConsentCalendar\1\item1_exh1a.doc

CALL TO ORDER/ROLL CALL

PLEDGE OF ALLEGIANCE

ORAL COMMUNICATIONS

CONSENT CALENDAR

Consider Approval of Minutes from the Special Board Meeting of May 29, 2003 and the Regular Board Meeting of June 16, 2003

2. Consider Adoption of Policy Regarding Disposal of Surplus Property

3. Receive Report of Counsel re: Status of Rule 33 (C) – (Former Water West Reserve)

4. Status Report on Monterra Ranch Annual Reports for Water Year 2001 and 2002

5. Consider Approval of Annual Memorandum of Agreement for Releases and Diversions from San Clemente Reservoir

6. Consider Extension of United States Geological Survey Cooperative Agreement for Water Year 2004

7. Consider Authorization of Funds to Rent Irrigation Equipment for San Carlos Irrigation Systems

8. Consider Authorization of Funds to Purchase Orthophotography within District Boundary

9. Approve Contract Amendment with RAMLIT Associates for Computer Modeling Assistance (CVSIM)

10. Consider Authorization of Funds to Purchase Realquest Product Package

11. Approve Amended Memorandum of Agreement Between the Monterey Peninsula Water Management District and the Carmel River Steelhead Association

12. Approval of Resolution Authorizing and Governing the Use of Volunteers

13. Review Status of Board Committees and Ratify Direction on Noticing Non-brown Act Subcommittee Meetings

14. Consider Adoption of Treasurer’s Report for May 2003

GENERAL MANAGER’S REPORT

ATTORNEY’S REPORT

15. Report on Closed Session of June 16, 2003

DIRECTORS’ REPORTS

16. Board Comments and Referrals

PUBLIC HEARINGS

17. Consider Application to Amend Cañada Woods Water Distribution System Permit

18. Consider Request of Special Circumstances, Rule 24-G, for CHOMP (Community Hospital of the Monterey Peninsula)

PUBLIC HEARINGS

19. Consider Adoption of July through September 2003 Quarterly Water Supply Strategy and Budget

ACTION ITEMS

20. Receive Comments on Draft Carmel River Threshold Report

21. Consider Adoption of Ballot Measure(s) Language, Review and Approve Text of Initiative Ordinance, and Approve Action to Set Election for November 4, 2003 All-Mail Ballot Election