EXHIBIT 1-B DRAFT MINUTES Adjourned Regular Meeting Board of Directors Monterey Peninsula Water Management District July 21, 2005

The meeting was called to order at 3:10 PM in the District Conference room. Board members present: Larry Foy, Chair – Division 5 Kristi Markey, Vice Chair – Division 3 Alvin Edwards – Division 1 Judi Lehman – Division 2 Michelle Knight – Division 4 David Pendergrass – Mayoral Representative David Potter – Monterey County Board of Supervisors Board members absent: None 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. Director Markey offered a motion to adopt Resolution 2005-07 with amendments to the ballot measure language so that it would read, “Shall the Monterey Peninsula Water Management District be directed to investigate the cost and process to publicly acquire the private water utility system presently owned and operated by the Monterey District of California American Water (Cal-Am), and be directed to recover up to $550,000 for costs of the investigation as a surcharge upon water bills of Cal-Am customers?” In addition, District Counsel would prepare the impartial ballot analysis. Directors would not participate in preparing arguments. Project proponents could prepare arguments in favor of the measure and the rebuttal to the rebuttal argument. Director Potter seconded the motion. It was adopted on a vote of 4 – 3. Directors Edwards, Lehman, Markey, and Potter voted in favor of the motion. Directors Foy, Knight and Pendergrass were opposed. The following comments were directed to the Board during the public comment period on this item. (1) Kevin Tilden, representing Cal Am, stated that Cal Am’s water distribution system is not for sale. The taking of property against Cal Am’s will is a threat to their business model and a threat to other privately owned businesses. He urged the Board to work with Cal Am on water quality, water rights or customer service issues instead of proceeding on the most expensive and litigious path. He stated that it would be best for Cal Am and the District to work together towards solving the water supply problem. (2) Paul Bruno, Chair of Water for Us, requested that the cost of the study be determined before this item is brought to the electorate.

CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ORAL COMMUNICATIONS ACTION ITEMS 1. Consider Approval of Resolution No. 2005-07 Calling for a District-Wide Election Regarding Investigation of Public Acquisition of the California American Water Distribution System, Coastal Division, Monterey District

____________________________________

David A. Berger, Secretary to the Board

U:\staff\word\boardpacket\2005\2005boardpackets\20050815\ConsentClndr\01\item1_exh1b.doc