EXHIBIT 18-B

Final

MINUTES

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

REGULAR MEETING OF THE CARMEL RIVER ADVISORY COMMITTEE

December 16, 2004, 10:00 A.M. Mid-Carmel Valley Fire Station Community Room

1. CALL TO ORDER/ROLL CALL

MEMBERS PRESENT: Susan Rogers, John Dalessio, David Dilworth, Richard H. Rosenthal, Tom House, and Larry Levine

MEMBERS ABSENT: Clive Sanders

PUBLIC PRESENT: Darby Worth, Tom Moss (MCWRA)

STAFF PRESENT: Andy Bell, Thomas Christensen, and Larry Hampson

2. PUBLIC COMMENT – Darby Worth, a former member of the Carmel River Watch (CREW), had three comments including: 1.) she encouraged the Committee to “think globally and act locally” and said she was concerned about the privatization of water around the world; 2.) she requested information on wells drilled at the Santa Lucia Preserve (formerly Rancho San Carlos); and 3.) she said the community should buy the California-American Water system.

3. CONSENT CALENDAR – Mr. House made a motion to approve the minutes of the October 14, 2004 Regular Meeting. Seconded by Mr. Levine. Approval was unanimous.

4. CONSIDER PRESENTATION OF A RESOLUTION OF APPRECIATION TO CHUCK MCKAY AND ROD MILLS FOR SERVICE ON THE CARMEL RIVER ADVISORY COMMITTEE –

MPWMD staff to finalize a certificate for Committee members to sign.

5. PRESENTATION BY MONTEREY COUNTY WATER RESOURCES AGENCY ON CARMEL RIVER FLOOD ELEVATION STUDY – Tom Moss, Senior Hydrologist with the Monterey County Water Resources Agency (MCWRA), described an update of the Carmel Valley Flood Insurance Study (FIS). The current FIS was based on 1980 river topography that has changed significantly since adoption of the study in 1984. Floods in 1995 and 1998 caused extensive damage in Monterey County and resulted in 108 repetitive losses (i.e., flood damage of $1,000, or more, twice within a 10-year period). Of these, 94 were located in the Carmel Valley.

The new study will extend from the Carmel River lagoon to San Clemente Dam and is estimated to cost $600,000. MCWRA is contributing $100,000 toward the study and Community Services Area 50 (near the mouth of the river) is contributing $25,000. The new study is expected to be adopted by the Monterey County Board of Supervisors in mid-2006.

[Note: at this point, several members announced that they had to leave the meeting, so the agenda was changed to discuss Item 9 while there was a quorum of the Committee. However, the following information items was presented by staff to Tom House, David Dilworth, and Larry Levine.]

6. UPDATE ON THE SAN CLEMENTE DAM SEISMIC RETROFIT PROJECT – Larry Hampson reported that five alternatives were under consideration including: 1.) No Project; 2.) dam thickening with no sediment removal; 3.) removal of 19 feet of the dam 750 acre-feet (AF) of associated sediment; 4.) complete dam removal with re-routing the main stem into the San Clemente arm of the reservoir (limited sediment removal); and 5.) complete removal of the dam and 1,500 AF of associated stored sediment. A combined Environmental Impact Report and Environmental Impact Statement (EIR/EIS) was being prepared for Cal-Am under the joint direction of the California Department of Water Resources and the U.S. Army Corps of Engineers. Key issues under study include potential impacts from trucking of sediment and construction traffic and impacts to sensitive aquatic resources. The EIR/EIS was not expected to be completed until mid-2006.

7. UPDATE ON CARMEL RIVER WATERSHED COUNCIL ACTIVITIES – This item was postponed to the next regular meeting of the Committee, as Mr. Sanders was unable to attend the meeting due to a conflict.

8. STAFF REPORTS – Thomas Christensen reported that selected vegetation removal had been carried out at four sites in the bottom of the river between approximately 1,000 feet upstream of Boronda Road to a private bridge just downstream of Garland Park. MPWMD anticipates carrying out additional work in the bottom of the channel during the summer and fall of 2005.

9. ITEMS TO BE PLACED ON FUTURE AGENDAS

The following items were requested for the next meeting:

a.) discussion/presentation of information on Garzas Creek flow and wells at the Santa Lucia Preserve.

b.) invite a representative from Cal-Am to update the Committee on their rate case application tot he California Public Utilities Commission; and

c.) invite a representative from the Federal Emergency Management Agency to explain the Federal flood insurance program

The next meeting was scheduled for February 10, 2005.

10. ADJOURNMENT

The meeting was adjourned at approximately 11:50 p.m.

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