EXHIBIT 26-A

Monterey Peninsula Water Management District June 22, 2006 Progress Report 2005/2006 Strategic Plan
Vision Statement The MPWMD: (1) Will strive to serve as a catalyst in collaboration with public and private entities for environmentally responsible solutions that result in a reliable and legal water supply; and (2) Shall be a fiscally responsible, professionally and publicly respected leader in managing water resources.			Mission Statement The mission of the MPWMD is to manage, augment and protect water resources for the benefit of the community and the environment.
WATER SUPPLY
Objectives					GOAL	PROGRESS REPORT	COMPLETE
WS1	Determine Existing and Future Water Supply Needs
	Ø	Finalize a single accurate and agreed set of water demand numbers for existing and future needs (See Workshops #3A and #3B described below)			February 2006	Presented at 5/18/06 Board Workshop. PAC/TAC recommended future water need projection accepted by Board as a “working document.”	5/18/06
WS2	Evaluate Water Supply Options to Meet Community Needs
	Ø	Conduct workshops to assess supply alternative options, costs and timelines (see Workshops #2, #4 and #5 described below)			June 2006	Adopted meeting schedule on 11/21/05. Final workshop in series is set for 6/29/06.
WS3	Determine MPWMD Role in Governance of Regional Urban Water Supply (RUWS) Project
	Ø	MPWMD and Monterey County representatives provide update, initial public input and Board discussion (Oct 2005) followed by workshop and Board direction on decision-making process on Draft RUWS Policy Board Formation Agreement and alternative governance structures (see Workshop #1 described below).			October and November 2005	On 2/22/06 Board held workshop and directed staff to organize April meeting among governing board/leadership of all effected agencies. Conducted meeting on 4/10/06. Managers Working Group requested to develop MOU for next meeting within approximately 30 days.
WATER SUPPLY
Objectives				GOAL		PROGRESS REPORT	COMPLETE
WS4	Encourage Public Participation and Understanding
	Ø	Sponsor Town Hall Meeting annually			August 2006	4/6/06 Public Outreach Committee requested staff that select a date for the event.
WS5	Pursue MPWMD Water Supply Project(s)
	Ø	Complete EIR on MPWMD Phase 1 Aquifer Storage and Recovery (ASR) Project			March 2006	The report was released week of March 20, 2006. Public hearing conducted on April 17, 2006. Proposed EIR certification anticipated for July 17, 2006 Board meeting.
WS6	Create Board Water Supply Committee and Charge
	Ø	Create a Water Supply Committee and charge for Board consideration		December 2005		1/26/06 Board decided that a Water Supply Committee would not be established.	1/26/06
	Summary of MPWMD Board Workshops on Water Supply (See October 17, 2005, Item 11, Strategic Plan agenda item for detailed description.) Complete all workshops by next Budget cycle-June 2006.			GOAL		PROGRESS REPORT	COMPLETE
	1.	Governance Structure for Regional Urban Water Supply Policy Board		November 2005		Scheduled for 2/22/06	2/22/06
	2.	ASR: Current Projects, Future Opportunities and Constraints		December 2005 or early January 2006		Scheduled for 1/25/06	1/25/06
	3.	Part A – Water Needs Analysis, Existing Setting and Demand		January 2006		Scheduled for 3/23/06	3/23/06
		Part B – Water Needs Analysis, Future Demand at Buildout		February 2006		Scheduled for 5/18/06	5/18/06
	4.	Water Augmentation Alternatives		March 2006		Scheduled for 6/29/06
		Project Cost and Timeline Analysis		June 2006		Scheduled for 6/29/06

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COMMUNITY ISSUES

OBJECTIVES

GOAL

PROGRESS REPORT

COMPLETE

C1

Improve Image and Community Understanding of MPWMD

Ø

Help the community understand the complexity of the District’s Mission

Ongoing

On 11/19/05 G.M. Berger on Leadership Monterey Peninsula water panel. On 4/27/06 G.M. Berger interviewed on “Your Town” public access television program.

Ø

Shorter 2004 Annual Report format is a success.  Utilize format for 2005 Annual Report.

Mail Annual Report by August 2006.  Coordinate with annual Town Hall Meeting

Board reviewed draft 2005 Annual Report text on 3/20/06.  Board reviewed again on 4/17/06.  Referred to Public Outreach Committee.  5/4/06 Committee approved report for distribution.

Ø

Continue communication with Cities

On-going

Ø

Create a video for MPWMD use (include tour footage)

On-going

On 4/6/06 Public Outreach Committee requested staff move ahead on production of video.  Following 5/3/06 meeting with AMP, staff decided to develop one, 6-minute video with general info on District.  To be completed in FY 2006-07.

Ø

Hold Open House annually

2006 Open House to be held in February 2006

On 4/6/06 Public Outreach Committee requested staff select date for 2006 Open House.  Tentative date for Open House is October 26, 2006.

Ø

Develop a Best Practices Model for individual jurisdictions regarding permitting issues and their timing: —Outdoor Best Management Practices Ordinance —Indoor Best Management Practices Ordinance

To Board by Spring 2006 To Board by Fall 2006

Ø

Update and publicly disseminate Policies and Procedures Manual

On-going.  See WDD Objective WD2

Ø

Seek professional help as necessary and appropriate

On-going option

C2

Increase Community Partnerships

Ø

Find funding for community conservation programs: —MPWMD Conservation Representative position funded by Cal-Am.  Approved as part of MPWMD 2005/06 budget, and included in 2006/07 budget.

Expect funding by Jan.  06’. Due to CPUC delay in approving funding as component of Cal Am General Rate Case, anticipate hiring after 7/1/06.

COMMUNITY ISSUES

OBJECTIVES

GOAL

PROGRESS REPORT

COMPLETE

C2

Increase Community Partnerships

Ø

Define community connections

On-going

Ø

Participate in community events/service organizations: —Continue to seek opportunities and update Board                via monthly reports

On-going.

Water Demand Division staff partnered with Water Awareness Committee to organize Water-Wise Landscape Symposium and Vendor Expo in March 2006.  Spoke on water permit requirements on 5/10/06 at meeting of National Association of the Remodeling Industry.  Addressed Monterey High School civics class in May.

Ø

General Manager is the spokesperson for the District: —Update MPWMD Meeting Rule No. 6

November 2005

Amendments approved by Board on 11/21/05.

11/21/05

C3

Continue to Improve Board-member to Board-member Communication

Ø

Review and provide recommendations for improvement on communication

On-going through GM office

Ø

Conduct a Strategic Planning Workshop annually

September 2006

On 6/226/06 Board will consider approval of facilitator’s contract for 9/25/06 Strategic Planning Session.

C4

Create a Public Outreach Committee Charge

Ø

Create  a Public Outreach Committee charge for Board consideration

December 2005

Board approved charge on 3/20/06.

3/20/06

C5

Create a Technical Advisory Committee/Policy Advisory Committee Charge and Consider Committee Composition

Ø

Create a Technical Advisory Committee/Policy Advisory Committee (PAC/TAC) charge for Board consideration

December 2005

Adopted by Board on 12/12/05.

12/12/05

Ø

Consider whether or not the PAC/TAC composition should be changed to include non-jurisdiction representatives

December 2005

Considered by Board on 12/12/05.

12/12/05

COMMUNITY ISSUES

OBJECTIVES

GOAL

PROGRESS REPORT

COMPLETE

C6

Determine if Community Advisory Committee Should be Created

Ø

Hold meeting to determine if Community Advisory Committee (CAC) should be created, and determine its composition

December 2005

1/26/06 Board decided to create committee.  Interest letter/questionnaire sent to community-based organizations 4/7/06.  Second letter sent 5/5/06  Board will review response from community groups on 6/22/06.

1/26/06

Ø

Create a CAC charge for Board consideration

December 2005

1/26/06 Board discussed charge.  Scheduled to finalize charge on 6/22/06.

C7

Develop Face-To-Face Relationship between MPWMD Board Members and SWRCB Officials

Ø

Invite Board Chair/Board members to Monterey for tour

January 2006

Director Knight met SWRCB member Baggett at 10/26/05 workshop.

Ø

MPWMD Board to participate in some way in ACWA conference

Spring 2006

Director Lehman was voting delegate to Fall ACWA Conference.

11/30/05

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Office of the General Manager
Objectives			GOAL	PROGRESS REPORT	COMPLETE
GM1	Recognize Board Member and Community Member Service in a Positive Way
	Ø	Give certificates/plaques at end of service	On-going	Service awards presented at 10/17/05Board meeting.  Director Foy received 2005 Chair plaque (2/23/06).	10/17/05
GM2	Create a Chair/Vice-Chair Committee Charge
	Ø	Create a Chair/Vice-Chair Committee Charge for Board consideration (include discussion of third member and how best to give direction to General Manager)	December 2005	Board adopted charge on 12/12/05.	12/12/05
GM3	Continue Community Outreach Efforts
	Ø	Update web site: —Minor updates —Major updates	On-going March 2006 Begin Spring 2006
GM4	Clarify General Manager as Spokesperson
	Ø	Update MPWMD Meeting Rule No. 6 for Board Consideration	November 2005	Board approved change to Meeting Rule 6 on 11/21/05.	11/21/05

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Fiscal Issues and Administrative Services Division
Objectives			GOAL	PROGRESS REPORT	COMPLETE
F1	Make Annual Budget More User Friendly for Board and Public
	Ø	Develop multi-year capital budget format (use ASR as example)	Spring 2006 for Board consideration during 2006/2007 Budget cycle	Board Workshop to reviewed draft budget on May 25, 2006.  Budget scheduled for adoption on June 22, 2006, including multi-year capital needs projection.
F2	Determine Permit Fees and User Fees
	Ø	Determine fiscal needs and potential shortfalls —Update Board on existing Needs Report status —Fully describe current allocation of permit fees and user fees —Final update with mid-year budget review	January 2007 January 2007 February 2007
F3	Establish Appropriate Staffing Levels
	Ø	Review staffing levels, supplies, outside services, current work assignments and other implications of cuts made to 2005/2006 budget	February 2006 for Board consideration during mid-year Budget review	Included in mid-year Budget report.	2/23/06

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Water Demand Division
Objectives			GOAL	PROGRESS REPORT	COMPLETE
WD1	Create a Rules and Regulations Committee Charge
	Ø	Create a Rules and Regulations Committee charge for Board consideration	December 2005	Board adopted charge on 12/12/05.	12/12/05
WD2	Improve Communications with Local Jurisdictions and the Public Regarding MPWMD Policies
	Ø	Provide ordinance explanations with each Board update made at local Council meetings and County Board of Supervisor’s meetings	On-going
	Ø	Update and publicly disseminate Policies and Procedures Manual —Submit for Board review and action on implementation ordinance —Complete a draft Policies and Procedures Manual —Ensure that any changes are widely disseminated in a timely manner	April 2006 October 2006 Beginning December 2006	Rules 11 through 23  of concept ordinance were presented on 4/17/06.  Rules 24 through 30 will be presented on 5/15/06.
WD3	Determine Agency Role in Conservation
	Ø	Increase staffing to facilitate conservation outreach	July 2006
	Ø	Coordinate with Cal-Am on conservation programs	May 2006

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Water  Resources Division
Objectives			GOAL	PROGRESS REPORT	COMPLETE
WR1	Clarify ASR Program
	Ø	Consider options for moving ahead with ASR (see Water Supply section)	On-going	Conducted study session on 1/25/06.  Requested Phase 1 ASR acceleration report.	1/25/06
	Ø	Determine whether to expand MPWMD partnership with Cal-Am on Seaside Basin ASR project	On-going	2/23/06 Board approved Management & Operations Agreement and directed it be transmitted to Cal Am.  Agreement was fully executed in March 2006.	2/23/06
	Ø	Determine whether or not MPWMD should pursue becoming a Water Distribution System if an MOA with Cal-Am cannot be reached	November 2005 Board meeting	Board received a report from staff on 11/21/05.  No action taken.	11/21/05
WR2	Assess Updating MPWMD Water Allocation Program EIR
	Ø	Board to consider staffing, timeline and budget in conjunction with preliminary workshop on 2006-2007 budget, if Seaside Basin adjudication is decided.  (Note: this was not agreed to by Directors Foy and Pendergrass.)	Spring 2006	Board reviewed issue at May 26, 2006 Workshop and concluded no further action needed at this time.	5/26/06
WR3	Develop Seaside Basin Groundwater Management Plan
	Ø	Board to monitor Seaside Basin Groundwater Management Plan	Plan to be Completed by March 2006	Work suspended.  Seaside Basin Adjudication Decision requires Basin Management and Monitoring Plan to be submitted to court by Watermaster within 60 days of Final Decision.  Watermaster board approved draft Plan and authorized submittal to Court within 60-day deadline.	5/25/06 (Watermaster)
	Ø	Develop Implementation Plan	March 2006 Board meeting

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Planning and Engineering Division
Objectives			GOAL	PROGRESS REPORT	COMPLETE
PE1	Explore Opportunities for MPWMD Involvement in Reclamation Projects
	Ø	Board consideration of reclamation alternatives (See Water Supply section)	Ongoing exploration.  Augmentation update June 29, 2006 (Workshop #4) scheduled	Board assigned Water Demand Committee 1/26/06 to coordinate with MRWPCA on Groundwater Replenishment Project.
PE2	Create a Carmel River Advisory Committee (CRAC) Charge
	Ø	Create a CRAC Committee charge for Board consideration	December 2005	Board adopted charge on 12/12/05.	12/12/05
PE3	Place More Emphasis on Community Outreach
	Ø	Do timely media outreach	On-going
	Ø	Proactively educate public regarding Carmel River erosion issues	On-going	Presentation by staff on emergency streambank work at 4/17/06 Board meeting.
PE4	Coordinate the Development and Adoption of the Carmel Bay, Monterey Peninsula, and Southern Monterey Bay Integrated Regional Water Management Plan
	Ø	Coordinate MPWMD staff input to Plan	Draft Plan anticipated by June 2006	February 2006 received final agreement from State.  Document was signed and mailed back to State to be fully executed. On 3/20/06 Board approved agreements with Sub-Grantees and consultant.
	Ø	Coordinate stakeholder input
	Ø	Contract with appropriate Consultant groups for Plan completion
	Ø	Coordinate adoption of Final Plan by stakeholder group	December 2006

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