EXHIBIT 1-A DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District August 15, 2005

The meeting was called to order at 7 PM in the Boardroom of the Monterey Regional Water Pollution Control Agency offices. Board members present: Larry Foy, Chair – Division 5 Alvin Edwards – Division 1 Judi Lehman – Division 2 Michelle Knight – Division 4 David Pendergrass – Mayoral Representative David Potter – Monterey County Board of Supervisors (arrived at 7:07 PM) Board members absent: Kristi Markey – Division 3 General Manager present: David A. Berger District Counsel present: David C. Laredo The assembly recited the Pledge of Allegiance. The following comments were directed to the Board during Oral Communications. (1) Steven Leonard, California American Water, thanked the District for the gift of flowers that was sent to Charles Kemp of Cal-Am during his recent hospitalization. (2) Susan Kipping, resident of Felton in Santa Cruz County, announced that voters in Felton approved a ballot measure to purchase the Cal-Am water system in their area. She warned that “in-fighting” among community members over the public ownership issue could be used by Cal-Am to defeat a similar measure on the Monterey Peninsula. On a motion by Director Pendergrass and second by Director Lehman, the Consent Calendar was approved unanimously on a vote of 6 – 0. Director Markey was absent. Chair Foy announced that agenda items 6 and 11 would be continued to a future Board meeting date. Henrietta Stern, the District’s Project Manager, presented this report. A summary is on file at the District office. In response to a question from Director Edwards, Joe Oliver, Water Resources Manager, explained that water from the Aquifer Storage and Recovery project can only be recovered into the Cal Am water distribution system if the California Department of Health Services (CDHS) issues a permit for that purpose. The CDHS will only issue a permit if there is a long-term agreement between the District and Cal Am for the distribution of ASR water in the Cal Am system. However, the ASR testing program can proceed without a permit from the CDHS. Joe Oliver, Water Resources Manager, presented the report. A summary is on file at the District office. In response to a question from Director Edwards, Mr. Oliver stated that staff has plans to request Board approval of a modified schedule for monitoring wells in the Seaside basin. The proposed schedule would call for an increased incidence of monitoring selected wells Stephanie Pintar, Water Demand Manager, reported that District water conservation program staff worked with the Water Awareness Committee on selecting recipients of the Zeriscape Design awards from entries in the horticultural exhibit at the Monterey County Fair. The winners of the award were Tascha Ramos, Vincent Roth, and Kate Askew. District staff will also host a booth with the Water Awareness Committee featuring water wise landscaping information. A Water Wise Gardening software program will be featured at the booth. When the software program is fully developed it will provide photos of local drought tolerant landscapes with information on the plants utilized in the landscapes. District Counsel Laredo reported that the Board was updated on the status of all six items listed on the Closed Session agenda. Mr. Laredo noted that concerning Cal Am Water’s application No. 04-08-012 to the Public Utilities Commission, the Administrative Law Judge ruled in opposition to Cal Am’s request to consolidate rates for the Monterey and Felton districts. In the case of Cal Am’s application to the PUC to increase rates for construction of the Coastal Water Project, Application No. 04-09-019, the District and other parties filed protests to the application. Mr. Laredo reported that the District recently participated in evidentiary proceedings related to Cal Am’s application to the PUC, No. 05-02-012. Additional briefings will be scheduled before the end of the year. Regarding the lawsuit filed by Save Our Carmel River (SOCR), M72061, a notice of appeal has been filed by SOCR. Further action on Superior Court Case No. M72877, also filed by SOCR, is pending until the outcome of M72061 is determined. A trial date of December 12, 2005 has been set in Superior Court Case No. M66343. The Board provided general direction to District Counsel on these items. No reportable action was taken. Directors Knight and Edwards thanked the Monterey Regional Water Pollution Control Agency (MRWPCA) for organizing the tour of purified recycled water production facilities in Orange County that they attended. All Board members were encouraged to attend an upcoming tour in September. Director Lehman announced that she completed a ten-week class on water law. She noted that the course validated for her the direction the District is taking in groundwater management. She applauded the Water Conservation Program staff for their work with the Water Awareness Committee. Director Pendergrass announced that the MRWPCA has chosen a consultant to prepare a groundwater recharge feasibility study. This item was continued to an unspecified Board meeting date at the request of the applicant. On a motion by Director Pendergrass and second by Director Edwards, the Board unanimously approved the second reading and adoption of Ordinance No. 121. The motion was approved on a vote of 6 – 0. Directors Edwards, Foy, Knight, Lehman, Pendergrass and Potter voted in favor of the motion. Director Markey was absent. The following comments were directed to the Board during the public hearing on this item. (1) Louis Dell’Angela, Community Development Director for the City of Seaside, spoke in support of Ordinance No. 121. He stated that the redevelopment process could be lengthy due to the time it takes to negotiate agreements with property owners in the redevelopment area, and avoid eminent domain proceedings. (2) David Dilworth, Executive Director of Helping Our Peninsula’s Environment (HOPE), insisted that the ordinance should be subject to environmental analysis under CEQA before the Board of Directors considers it. On a motion by Director Edwards and second by Director Lehman, the Board adopted the second reading of Ordinance No. 122; directed staff to transmit a Notice of Determination to the Monterey County Clerk; and directed staff to complete the revised Water Distribution System Implementation Guidelines. The motion was unanimously approved on a vote of 6 – 0. Directors Edwards, Foy, Knight, Lehman, Pendergrass and Potter voted in favor of the motion. Director Markey was absent. During the public hearing on this item, David Dilworth, representing HOPE, asked for clarification as to the difference between an abandoned well and an inactive well. He also asked for a better explanation of the terms “well” and “water distribution system.” At the Chair’s request, Ms. stern responded to these questions. On a motion by Director Edwards and second by Director Lehman, the Board adopted the second reading of Ordinance No. 123 authorizing a 1.2% increase to the user fee thereby setting the user fee at 8.325%. Staff was also directed to file a Notice of Exemption with the Monterey County Clerk. The motion was unanimously approved on a vote of 6 – 0. Directors Edwards, Foy, Knight, Lehman, Pendergrass and Potter voted in favor of the motion. Director Markey was absent. During the public hearing on this item, John Fischer, a resident of Pacific Grove, said that he was not sure if he could support an ordinance that asks customers to pay more money for a project that would affect the Seaside aquifer, considering that the Seaside aquifer is overdrafted. On a motion by Director Edwards and a second by Director Foy, the Board authorized an expenditure of $3,825 for strategic planning and goal setting facilitation services by APEX Strategies. The motion was approved unanimously on a vote of 6 – 0. Directors Edwards, Foy, Knight, Lehman, Pendergrass and Potter voted in favor of the motion. Director Markey was absent. No public comment was directed to the Board during the public comment period on this item. Chair Foy continued this item to a future unspecified Board meeting date so that Director Markey can be present to participate in the discussion. There was no discussion of the Information Items/Staff Reports. The meeting was adjourned at 8:30 PM.

CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Adoption of Minutes of the Regular Board Meeting of July 18, 2005 and Adjourned Regular Meeting of July 21, 2005 PRESENTATIONS 2. Water Supply Project Alternatives Update GENERAL MANAGER’S REPORT 3. Status Report on California-American Water Compliance with State Water Resources Control Board Order 95-10 ATTORNEY’S REPORT 4. Report on 5:30 PM Closed Session DIRECTORS’ REPORTS 5. Oral Reports on Activities of County, Cities, Other Agencies/Committees/ Associations PUBLIC HEARINGS 6. Consider Appeal of District Staff’s Decision that Rule 24-G, Special Circumstances, do not Apply to Storage Pro Self Storage Facility (Mirabito), APNs: 169-131-002 & 003 7. Consider Second Reading and Adoption of Ordinance No. 121 – Extend Time Limit on Retention of Water Use Credits for Redevelopment Projects 8. Consider Second Reading and Adoption of Ordinance No. 122 – Revising MPWMD Rules and Regulations to Create Impact Based Permit System for Water Distribution Systems 9. Consider Second Reading and Adoption of Ordinance No. 123 – Implementation of 1.2% User Fee Increase to Fund Completion of Phase 1 ASR Project ACTION ITEMS 10. Authorize Expenditure of Budgeted Funds for Strategic Planning and Goal Setting Facilitation Services by APEX Strategies 11. Consider Proposed Agreement with California American Water Regarding Management and Operation of Seaside Basin Aquifer Storage and Recovery Facilities INFORMATIONAL ITEMS/STAFF REPORTS 12. Letters Received 13. Committee Reports 14. Strategic Planning Initiatives Progress Report 15. Carmel River Fishery Report 16. Water Conservation Program Report 17. Monthly Allocation Report 18. Monthly California-American Water Company Production Report 19. Monthly Water Supply Status Report 20. Semi-Annual Ground Water Quality Monitoring Report ADJOURNMENT

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David A. Berger, Secretary to the Board

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