EXHIBIT 4-C

DIVISIONAL OBJECTIVES

ADMINISTRATIVE SERVICES DIVISION

OBJECTIVES FOR FISCAL YEAR 2003-2004

Objective: Maintain and Enhance the Financial Accounting Budgeting and Reporting Systems to Provide Concise, Timely and Accurate Information

Goals:

1. Continue restructuring the annual financial report for submission for consideration for “Certificate of Achievement for Excellence in Financial Reporting” by the Government Finance Officers Association.

2. Present the mid-year budget adjustment to the Administrative Committee and Board of Directors at the January Board meeting each year.

3. Present quarterly financial status reports to the Administrative Committee and Board of Directors.

4. Coordinate the development of the annual budget for presentation of a first draft to the Administrative Committee and Board of Directors in May of each year.

5. Coordinate the development of the annual budget for adoption by the Administrative Committee and Board of Directors in June of each year.

Objective: Assure that Internal Controls Protect the District’s Assets and Provide Financial Integrity

Goals:

1. Submit the annual financial audit to the Administrative Committee and Board of Directors by November 30 of each year.

2. Monitor the cash control process to assure maximum return and protect reserve levels.

3. Maintain centralized budget controls in support of Division Managers.

Objective: Prudently Manage Investments to Minimize Risk and Maximize Returns

Goals:

1. Review the District Investment Policy with the Administrative Committee and Board of Directors no later than February of each year.

2. Continue to provide a quarterly investment report to the Administrative Committee and Board of Directors.

Objective: Manage Labor Relations

Goals:

1. Continue initiatives to maintain satisfactory Labor/Management relations with

LIUNA/UPEC Local 270.

2. Negotiate annual Memorandum of Understanding with Confidential Group by June 30 of each year in which a contract expires.

Objective: Maintain a District Risk Management Program to Minimize Exposure to Loss while Striving to Maximize Operating Efficiency and Reduce Expenses

Goals:

1. Continue to evaluate and develop the risk management program and negotiate appropriate insurance coverage levels for property and liability exposures.

Objective: Provide for a Safe and Healthy Workplace

Goals:

1. Maintain the District health and safety program, including a safety-training program.

2. Identify and develop safety procedures for compliance with new and pending regulations.

3. Maintain a process for identifying and correcting workplace hazards.

PLANNING AND ENGINEERING DIVISION

OBJECTIVES FOR FISCAL YEAR 2003-2004

Objective: Increase Water Supply To Meet Community and Environmental Needs

Goals:

1. Prepare Draft Environmental Impact Report (EIR) with assistance from consultants, that evaluates a local desalination facility at the project level of detail, and alternatives at the program level of detail; California-American Water Company’s (Cal-Am) proposed Carmel River Dam and Reservoir Project, Cal-Am’s proposed Coastal Water Project (Moss Landing desalination project plus local ASR), and other project alternatives and components needed to meet a range of water production goals that reflect existing and future needs, by December 2003.

2. Prepare Final EIR based on public comments received on the Draft EIR, with assistance from consultants.

3. Continue pursuit of the District’s two Petitions for Change (for ASR and existing Carmel River Diversions) to permits from the State Water Resources Control Board.

Objective: Maintain Mitigation Program

Goals:

1. Prepare 2002-03 annual report for Mitigation Program by January 2004.

2. Complete design of large wood habitat structures at Garland Park (funded by a California Department of Fish and Game grant) by June 2004.

3. Provide regular technical assistance to Carmel River property owners for bank repairs and riparian habitat protection and enhancement.

4. Secure a multi-year U.S. Army Corps of Engineers permit for Carmel River restoration work by December 2003.

5. Continue process to secure long-term Memorandum of Understanding with California Department of Fish and Game for river maintenance activities.

6. Plan and design lower Carmel River erosion protection and restoration projects by June 2004.

7. Expand revegetation and irrigation systems at existing District restoration projects by June 2004.

8. Conduct annual soil, and avian (bird) monitoring to document quality of Carmel River riparian habitat (e.g. riparian trees and shrubs such a s cottonwood, willow, alder and sycamore.) Avian monitoring is conducted by a consultant.

Objective: Endangered Species Act Compliance

Goals:

1. Assure compliance with Endangered Species Act for District activities.

2. As a co-applicant, advise group preparing ESA Section 10 Habitat Conservation Plan for water diversions from Carmel River on a regular basis.

Objective: Complete Other Activities

Goals:

1. Assist in public information program on water issues and District actions.

2. Implement MPWMD Rules and Regulations and associated Implementation Guidelines for water distribution systems, including CEQA review and permit processing, with assistance from a consultant.

3. Comply with CEQA for District projects.

4. Participate in CEQA environmental review on non-District projects that could affect water resources within the District.

WATER RESOURCES DIVISION

OBJECTIVES FOR FISCAL YEAR 2003-2004

Objective: Support Long-Term Water Supply Environmental Review

Goals:

1. Coordinate with staff and consultants to provide technical assistance in preparing a Draft Environmental Impact Report that evaluates a local desalination facility at the project level of detail and alternative at the program level of detail by December 2003.

2. Provide water resources simulation modeling analyses to support evaluation of an EIR for project alternatives. The District conducts water resources modeling in-house with its Carmel Valley Simulation (CVSIM) model. CVSIM is a family of computer-based operations models that simulate water resource system performance (i.e., municipal yield, streamflows, ground water storage) under varying hydrologic, management, facilities and demand conditions. This model was developed by District staff and has been in use since 1981.

3. Provide fisheries impacts analyses to support evaluation of project alternatives. These analyses will be based primarily on evaluation of CVSIM modeling results, and will focus on the availability of Carmel River flows under each project alternative considered, for each phase of the steelhead life cycle.

4. Provide technical assistance for evaluation of San Clemente Dam Drawdown and Safety Remediation Projects.

Objective: Manage the Seaside Basin Aquifer Storage and Recovery (ASR) Project

Goals:

1. Request State Water Resources Control Board (SWRCB) permit to conduct WY 2004 testing by August 2003.

2. Coordinate with California Department of Health Services and Cal-Am for approvals to utilize test well for recovery of injected water by August 2003.

3. Collect water quality and level data during recovery by October 2003.

4. If required, conduct updated environmental review for proposed WY 2004 injection testing program based upon latest available data and testing results by October 2003.

5. Develop plans for Water Year (WY) 2004 aquifer water injection testing by November 2003.

6. Complete analysis and reporting of WY 2003 aquifer water injection and recovery testing by January 2004.

7. Conduct WY 2004 aquifer water injection testing from December 2003 through May 2004, SWRCB permit allowing.

8. Continue process for securing additional Aquifer Storage and Recovery (ASR) sites with City of Seaside and U.S. Army.

9. Continue pursuit of long-term ASR project with SWRCB.

Objective: Manage Seaside Basin Ground Water Resources

Goals:

1. Coordinate with planning and technical consultants to conduct Seaside Basin management group meetings and public information workshops on Seaside Basin ground water management ordinances.

2. Coordinate with planning and technical consultants to prepare draft EIR on ground water management ordinances for receipt by September 2003.

3. Coordinate with planning consultants to complet the EIR public review by November 2004.

4. Finalize and certify EIR by February 2004.

5. Implement ground water management ordinances by April 2004.

6. Continue development of Seaside Basin Ground Water Management Plan with public involvement during FY 2003-2004.

Objective: Manage Water Allocation Mitigation Program – Fisheries

Goals:

1. Coordinate with consultants and contractors to implement appropriate course of action on Sleepy Hollow Steelhead Rearing Facility (SHSRF) intake retrofit by July 2003.

2. Conduct rescues of steelhead from drying reaches of the Carmel River by September 2003.

3. Operate SHSRF until adequate river flows resume in WY 2004.

4. Complete Fall 2003 steelhead population surveys by October 2003.

5. Complete Fall 2003 bioassessment sampling by November 2003.

6. Monitor Spawning Habitat Restoration Project.

7. Negotiate water supply strategy and budgets quarterly, and secure 2004 Memorandum of Agreement on Carmel River flows by May 2004.

Objective: Manage Water Allocation Mitigation Program – Hydrology

Goals:

1. Complete annual and long-term mitigation program reports during FY 2003-2004.

2. Complete WY 2003 District annual water production reporting by February 2004.

3. Publish Surface Water Resources Data Report by August 2003.

4. Conduct semi-annual ground water quality monitoring in October 2003 and April 2004.

5. Prepare 2004 water supply status and forecast report by May 2004.

6. Activate water level recording and telemetering equipment at Los Padres and Don Juan Bridge sites by November 2003.

7. Participate in environmental reviews of non-District water supply development projects.

WATER DEMAND DIVISION

OBJECTIVES FOR FISCAL YEAR 2003-2004

Objective: Manage and Allocate Available Water

Goals:

1. Provide staff support to Information Technology Officer to design and implement a standardized Windows-based property/permitting database. Completion of the permit process template is expected by May 2004.

2. Compile a comprehensive policies and procedures manual for the Water Demand Division by February 2004.

3. Complete an Environmental Impact Report on eliminating the Water Use Credit Transfer Program by May 2004.

4. Evaluate and issue water permits for projects within the District and ensure compliance with permit conditions.

5. Coordinate with jurisdictions regarding water credits and allocations.

6. Track jurisdiction’s water allocations and provide monthly report to Board.

7. Review environmental documents on large projects for completeness and accuracy.

8. Inspect properties for compliance with permit requirements.

9. Obtain and review water use records of projects that have benefited from Water Use Credit transfers, Ordinance No. 98, and other projects that have specific conditions allowing the District access to water records.

Objective: Promote Water Conservation

Goals:

1. Track changes of ownership and obtain certification of compliance with District rules.

2. Assess and document Water Use Credits and other permanent reductions in water use.

3. Expand the District’s toilet replacement rebate program to include rebates for washing machines, dishwashers and cisterns by January 2004.

4. Monitor Cal-Am consumption for compliance with Regulation 14, Water Conservation. Enforce as needed.

5. Upgrade and maintain Internet site to include current and useful information related to WDD policies and procedures, water saving appliances, water credits, and other related information.

6. Respond to complaints of water waste.

7. Actively participate as a member of the Water Awareness Committee of Monterey County.

8. Provide landscape water audits upon request.

9. Provide free showerheads, faucet aerators, and positive-action shut-off nozzles.

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