EXHIBIT 1-D

DRAFT MINUTES

Special Meeting/Workshop

Board of Directors

Monterey Peninsula Water Management District

May 25, 2006

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.

Board members present:

Michelle Knight, Chair – Division 4

Judi Lehman, Vice Chair – Division 2

Alvin Edwards – Division 1

Kristi Markey – Division 3

Larry Foy – Division 5 (Participated by telephone from Surprise, Arizona)

David Pendergrass – Mayoral Representative

Board members 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 were directed to the Board.

WORKSHOP/DISCUSSION

1. Review Proposed MPWMD Budget for 2006-2007

Rick Dickhaut, Administrative Services Manager, reviewed the Budget with the Board and responded to Directors’ questions. During the discussion the Board requested that: (1) the all terrain vehicle proposed for purchase should be a clean-burning model; (2) staff should present at the June 22, 2006 Board meeting an estimate of the cost to compensate Directors for attendance at 10 meetings per month at a cost of $110 per meeting with the understanding that a change to Board compensation would require adoption of an ordinance; (3) staff should present a conceptual ordinance for modifying Board compensation at a future meeting; and (4) the budget should be presented for adoption at the June 22, 2006 Board meeting. No comments were directed to the Board during the public comment period on this item.

2. Discuss Timeline, Budget and Staffing Needed to Potentially Update Water Allocation Program

Henrietta Stern, Project Manager, reviewed this item with the Board and responded to questions. The Board discussed the issue. One Director commented that updating the Allocation EIR would cause the jurisdictions to consider now, how the new water would be allocated, who would pay for the water, and if any extra water would be available for needs other than lots-of-record. There was consensus among the Directors that it would not be appropriate to update the Water Allocation Program until a new water source has been identified and a plan for distribution of that water is required. No comments were directed to the Board during the public comment period on this item.

ADJOURNMENT

The meeting was adjourned at 8:30 PM.

__________________________________

David A. Berger, Secretary to the Board

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