EXHIBIT 1-A
DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District October 18, 2004
The meeting was called to order at 7 PM in the Monterey City Council Chambers. Board Members Present: Chair, Alvin Edwards – Division 1 Judi Lehman – Division 2 Kristi Markey – Division 3 Michelle Knight – Division 4 David Pendergrass – Mayoral Representative David Potter – Monterey County Board of Supervisors Board Members Absent; Vice Chair, Larry Foy – Division 5 General Manager Present: David A. Berger District Counsel Present: David C. Laredo The assembly recited the Pledge of Allegiance. No comments were directed to the Board during Oral Communications. On a motion by Director Pendergrass and second by Director Potter, the Consent Calendar was approved unanimously on a vote of 6 – 0. Director Foy was absent. Approved. Approved. Approved. Approved. Approved. Approved. Approved. Approved. Approved. Approved. Approved. Director Lehman presented the resolution to Rod Mills. She thanked him for his service to the community as a member of the Carmel River Advisory Committee and for his other volunteer activities. Mr. Mills stated that he was impressed by work that District staff has accomplished in the Carmel River watershed. He explained that when floodwaters threatened property, District staff were very helpful in sharing their knowledge of the river and surrounding terrain. Their assistance has been indispensable to property owners. Chair Edwards announced that staff would transmit Mr. McKay’s resolution to him since he could not attend the meeting. Chair Edwards presented the resolution to Ray von Dohren, General Manager of the Carmel Area Wastewater District (CAWD). He thanked Mr. von Dohren for how quickly CAWD coordinated with other agencies to provide treated wastewater to the Carmel River Lagoon when water levels were low and threatened the safety of wildlife. Mr. von Dohren noted that it took only four days to accomplish this project, and that included obtaining a permit to discharge water into the lagoon. He was grateful for the cooperation of many agencies, including the Pebble Beach Company and the Pebble Beach Community Services District. Larry Hampson, Water Resources Engineer, presented findings from an assessment of the Carmel River Watershed that the District contributed to. The Carmel River Watershed Conservancy (CRWC) funded preparation of the report. District staff developed one section of the report titled “Environmental and Biological Assessment of Portions of the Carmel River Watershed.” District staff concluded that the health of the river appears to have improved significantly since the mid-1980s, with the steelhead fishery and riparian vegetation showing fairly dramatic gains. However, the river environment remains at risk of degradation from flow diversions, sedimentation, and urbanization. District staff made several recommendations for the CRWC to consider for improving the long-term management and health of the riparian corridor along the main stem of the Carmel River. A copy of the report and Mr. Hampson’s presentation are on file at the District office. Darby Fuerst, Senior Hydrologist, reported that between October 1 and October 17, 2004, California-American Water (Cal-Am) production from the Carmel River Basin totaled 436 acre-feet, which is 19 acre-feet below the limit set by the State Water Resources Control Board (SWRCB). Mr. Fuerst stated that if Cal-Am production is in compliance through November 30, 2004, the community will move from State 3 to Stage 1of the District’s Water Conservation and Standby Rationing Plan. He announced that emergency water rates currently in effect, which doubled the cost of water for customers in tiers four and five, will expire on November 1, 2004. During the public comment period on this item, Steven Leonard, Vice President and Manager of Cal-Am, thanked his customers for their water conservation efforts. He announced that Cal-Am advised the Public Utilities Commission that the District should manage any future potential connection moratorium. He suggested that triggers in the District’s Water Conservation and Standby Rationing Plan could be improved by modifying the triggers that mandate movement from one stage of the program to another. Mr. Leonard thanked the District for providing water to the community from the Santa Margarita test injection well, during a period when some of Cal-Am’s wells were not operational. There was no report from District Counsel. There were no comments from the Directors. The Directors concurred with Chair Edwards’ recommendation that the December 20, 2004 Regular Board meeting be rescheduled to December 13, 2004. The location will be announced. Director Potter offered a motion that was seconded by Director Knight to adopt the staff recommendation and grant a transfer of 0.671 acre-feet of Water Use Credits from 784 Foam Street in Monterey to the City of Monterey. The motion was adopted on a vote of 4 – 2. Directors Edwards, Knight, Pendergrass and Potter voted in favor of the motion. Directors Lehman and Markey were opposed. Director Foy was absent. Frank Don Angelo, representing Foursome Development Company, addressed the Board during the public hearing on this item. He urged the Board to adopt the staff recommendation and approve the Water Use Credit transfer. He explained that Foursome Development Company completed the first phase of a two-phase project. They are working with the City of Monterey to hold the water credit in abeyance until planning for phase two of the project is complete. Director Knight offered a motion that was seconded by Director Potter, to adopt the staff recommendation to amend two existing contracts with Jones & Stokes Associates and Padre Associates to facilitate preparation of an Environmental Impact Report for the District’s long-term aquifer storage and recovery project. The total not-to-exceed amount would be $175,096. In addition, District staff was directed to reach out to other agencies regarding development of a cooperative venture. A letter will be written to the Monterey Regional Water Pollution Control Agency (MRWPCA) and signed by Chair Edwards, expressing the District’s interest in working with the MRWPCA on their proposal to develop a project involving replenishment of aquifer water with filtered recycled water. The motion was adopted unanimously on a vote of 6 – 0. Directors Edwards, Knight, Lehman, Markey, Pendergrass and Potter voted in favor of the motion. Director Foy was absent. John Fischer, a resident of Pacific Grove, addressed the Board during the public comment period on this item. He expressed support for local agencies working together on a water supply solution. He recommended development of a joint project with the MRWPCA involving storm water reuse. On a motion by Director Potter and second by Director Knight, the 2004/2005 Strategic Plan developed at the September 29, 2004 Board Workshop was adopted unanimously with the changes listed below. The motion was approved on a vote of 6 – 0. Directors Edwards, Knight, Lehman, Markey, Pendergrass and Potter voted in favor of the motion. Director Foy was absent. List of changes adopted by the Board. (1) Page 172, the section titled Community Issues, bulleted item titled Seek professional help as necessary and appropriate, amend first sub-bullet to read “…outreach services as may be needed to assist….” (2) Page 178 of Board packet, section titled Objective: Continue to Improve Board-member to Board-member Communication, move this section to page 173 under section entitled Community Issues. (3) Page 179, section titled Objective: Determine Long-Term Water Supply Options, third bullet, second sub-bullet should state “…MPWMD and/or other participants (on-going)….” (4) Page 179, section titled Objective: Determine Long-Term Water Supply Options, bulleted item titled Establish and make clear the District project goal, amend second sub-bullet to read “Work for broad regional participation.” (5) Page 179, section titled Objective: Determine Long-Term Water Supply Options, third bulleted item titled Establish and make clear the District project goal, amend third sub-bulled to read, “Show how such a regional program could distribute the cost and describe the potential financial burden to MPWMD constituents by March 2005.” (6) Page 179, section titled Objective: Determine Role for MPWMD in Water Supply Issue, first bulleted item titled Finalize the role of the District, delete the first sub-bullet On a motion by Director Pendergrass and second by Director Potter, Resolution No. 2004-17 was adopted on a vote of 5 – 1. Directors Edwards, Knight, Lehman, Pendergrass and Potter voted in favor of the motion. Director Markey was opposed. Director Foy was absent. No public comment was directed to the Board during the public comment period on this item. There was no discussion of the Informational Items/Staff Reports. The meeting was adjourned to Closed Session at 9:30 AM. The Closed Session convened at 9:40 AM. The meeting was adjourned at approximately 10:15 PM.	CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Adoption of Minutes of the September 20, 2004 Regular Board Meeting and September 29, 2004 Strategic Planning Session 2. Consider Adoption of Board Meeting Schedule for Calendar Year 2005 3. Adopt Resolutions of Appreciation for Chuck McKay and Rod Mills for Service on the Carmel River Advisory Committee 4. Adopt Resolution of Appreciation for the Carmel Area Wastewater District’s Efforts to Augment Carmel River Lagoon Water Levels During Summer 2004 5. Consider Approval of Vehicle Use Policy 6. Authorize Expenditure of Budgeted Funds for Geographic Information Systems Image Analysis Software 7. Authorize Expenditure of Budgeted Funds for Purchase of Vehicle for Water Demand Division 8. Authorize Expenditure of Budgeted Funds for Purchase of Vehicle for Water Resources Division 9. Consider Authorization of an Agreement to Provide Arbitrage Calculation Services for the Reclamation Project Certificates of Participation 10. Adopt Treasurer’s Report for June 2004 11. Adopt Treasurer’s Report for July 2004 PRESENTATIONS 12. Present Resolutions of Appreciation to Chuck McKay and Rod Mills 13. Present Resolution of Appreciation to Carmel Area Wastewater District 14. Presentation by Larry Hampson on the Carmel River Watershed Assessment GENERAL MANAGER’S REPORT 15. Status Report on California-American Compliance with State Water Resources Control Board Order 95-10 ATTORNEY’S REPORT DIRECTORS’ REPORTS 16. Board Comments and Referrals A. Consider Chair Edward’s Proposal to Reschedule December 20, 2004 Regular Board Meeting to December 13, 2004 Due to Holiday Week Conflict PUBLIC HEARINGS 17. Consider Commercial-to-Jurisdictional Water Use Credit Transfer (District Rule 28-B) from 784 Foam Street (001-016-015) to the City of Monterey ACTION ITEMS 18. Amend Contracts with Jones & Stokes Associates and Padre Associates to Prepare CEQA Documents for MPWMD Long-Term Aquifer Storage and Recovery (ASR) Project 19. Review and Consider Adoption of Strategic Plan Developed at September 29, 2004 Board Workshop 19A. Consider Adoption of Resolution No. 2004-17 Expressing Support for Proposition 1A on the November 2, 2004 State Wide General Election Ballot INFORMATIONAL ITEMS/STAFF REPORTS 20. Letters Received 21. Committee Reports 22. Carmel River Fishery Report 23. Monthly Allocation Report 24. Monthly California-American Water Production Report 25. Monthly Water Supply Status Report 26. Quarterly Geographic Information Systems Program Update 27. Quarterly Public Information Program Report 28. Quarterly Water Supply Project Status Report 29. Quarterly Irrigation Program and Riparian Projects Report 30. Quarterly Carmel River Erosion Protection and Restoration Projects Report ADJOURN TO CLOSED SESSION CLOSED SESSION 1. Conference with Legal Counsel – Existing Litigation (Gov. Code 54956.9 (a)) A. California State Water Resources Control Board Application (SWRCB) T031449; Temporary Permit 21163 B. Petition for Change to SWRCB Permit 11674B C. Petition for Change to SWRCB Permit 20808 D. California-American Water Company v City of Seaside et al., Monterey County Superior Court Case No. M66343 E. Application of California-American Water Company to the Public Utilities Commission, Application No. 04-08-012 2. Conference with Legal Counsel – Anticipated Litigation – Significant Exposure to Litigation Pursuant to Subdivision (b) of Section 54956.9: One Case 3. General Manager Performance Evaluation Objectives/Expectations (Gov. Code Section 54957) ADJOURNMENT

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David A. Berger, Secretary to the Board

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A. Tavani/10-18-04 Minutes/11-08-04/7 pages