EXHIBIT 1-C

DRAFT MINUTES

Continued Regular Meeting of May 15, 2006

and

Special Meeting/Board Workshop

May 18, 2006

Board of Directors

Monterey Peninsula Water Management District

CALL TO ORDER/ROLL CALL

The meeting was called to order at 7 PM in the Boardroom of the Monterey Regional Water Pollution Control Agency.

Directors Present

Michelle Knight, Chair – Division 4

Judi Lehman, Vice Chair – Division 2

Alvin Edwards – Division 1 (Arrived at approximately 7:10 PM)

Kristi Markey – Division 3

Larry Foy – Division 5

David Pendergrass – Mayoral Representative

Directors Absent

David Potter – Monterey County Board of Supervisors

General Manager present: David A. Berger

District Counsel present: David C. Laredo

PLEDGE OF ALLEGIANCE

The assembly recited the Pledge of Allegiance.

ORAL COMMUNICATIONS

No comments.

CONTINUED REGULAR MEETING OF MAY 15, 2006

Item 12: Receive Report on Engineering Consulting Study to Evaluate Desalination Project Alternatives, and Consider Suggestion of Director Potter to Terminate Contract, if Appropriate

The Board received a report from District Engineer, Andy Bell, and discussed the item but took no action in this issue.

The following comments were directed to the Board during the public comment period on this item. (1) Peter MacLaggen of Poseiden Resources Corporation, Management Consultant for Pajaro/Sunny Mesa Community Services District on development of the proposed Monterey Bay Regional Seawater Desalination Project. The proposal envisions a 20 million-gallon per day desalination plant at Moss Landing to serve Monterey County and surrounding regions. Poseiden and the District have agreed on a procedure for providing sensitive information directly to the District’s consultant. He expressed support for the staff recommendation to authorize completion of the desalination project alternatives evaluation. (2) George Riley, resident of Monterey, urged the Board to authorize completion of the report.

Director Edwards reminded the Board that at the May 15, 2006 Board meeting, Mr. Robert Greenwood had asked the District to explain how this study would relate to a similar analysis the Monterey Bay Regional Water Authority (MBRWA) was tasked to prepare. General Manager Berger explained that the MBRWA has not been formed. If it were to be organized and funded, the group could decide to prepare a similar analysis of proposed water supply projects. The District’s report could serve as a resource to the MBRWA.

May 18, 2006 Special Meeting/Workshop

WORKSHOP/DISCUSSION

1. Water Needs Analysis: Future Water Needs

Stephanie Pintar, Water Demand Manager, summarized the report for the Directors. The Board discussed the information presented. It was suggested that the Technical Advisory Committee should provide information on the amount of water needed for legal lots of record, to ensure that a project will meet the needs of legal lots of record. It was also suggested that a phased approach to future water needs should be explored, so the jurisdictions have a plan for funding each increment of water that is developed. The general consensus was that it would be premature at this time to refine the water needs estimates because the analysis was adequate for California American Water and Pajaro/Sunny Mesa CSD to determine the minimum and maximum amount of water a project should provide. There was also discussion about the 20 percent contingency established in the water needs analysis. One director opined that it should be reduced to 8 or 10 percent. The Directors complemented the Technical and Policy Advisory Committees on development of the water needs estimates.

PUBLIC COMMENT PERIOD

During the public comment period on this item, John Fischer, a resident of Pacific Grove, referred to articles in The Times of London and The Independent, both dated May 17, 2006 that described proposals for dealing with the possible onset of a 100-year drought in Europe.

ADJOURNMENT

The meeting was adjourned at 8:20 PM.

________________________________

David A. Berger, Secretary to the Board

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