EXHIBIT 1-A DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District September 18, 2006

The meeting was called to order at 7:07 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 (arrived at 7:10 PM) Kristi Markey – Division 3 David Pendergrass – Mayoral Representative Board members absent: David Potter – Monterey County Board of Supervisors The assembly recited the Pledge of Allegiance. Robert Greenwood, representing the Carmel Valley Association addressed the Board during Oral Communications. He read a letter dated September 18, 2006 that is on file at the District office in which he asked the Board to require California American Water to repair a water leak on El Caminito Road. On a motion by Director Edwards and second by Director Foy, the Consent Calendar was approved on a vote of 6 – 0. Director Potter was absent. A summary of the report presented by Henrietta Stern is on file at the District office. Darby Fuerst, Senior Hydrologist, reported that between October 1, 2005 and September 14, 2006, Cal Am has produced 10,027 acre-feet of water from the Carmel River. Production from the Carmel River was 576 acre-feet below the limit established as a result of State Water Resources Control Board Order 95-10. In response to a question from the Board, Mr. Fuerst explained that the Watermaster is responsible for monitoring production in the Seaside Basin to ensure that it remains within limits established in the decision on the Seaside Groundwater Basin Adjudication. Independent of the Watermaster, the District compiles monthly reports on Cal Am production from the Seaside Basin based on information it receives on a daily basis. If Seaside Basin pumpers exceed pumping limits, they must pay a replenishment assessment. If a pumper does not utilize its full allocation in one year, a credit for the unused water can be carried over to the next year. General Manager Berger announced that the public is invited to attend the District’s Open House on Thursday, October 26, 2006. Mr. Berger encouraged the public to attend. District Counsel Laredo announced that he provided a report to the Board on items 3.A through F. No specific action was taken on those items. Regarding Item 4.A, Mr. Laredo reported that on a motion by Director Foy and second by Director Markey, the Board approved the staff recommendation to direct General Manager Berger to accept the ACWA criteria relating to the dental/vision benefits package for the General Bargaining Unit. That change eliminates employee co-pay obligations and reduces the District’s premium obligation. The motion was approved on a unanimous vote of Directors Foy, Knight, Lehman, Markey and Pendergrass. Directors Edwards and Potter were absent. The Board conducted a performance evaluation of General Manager Berger. No other reportable action was taken at the meeting. Judi Lehman requested that further investigation be completed on the Seawater Conversion Vessel technology that was presented to the Board at the September 31, 2006 meeting. In addition she asked District staff to respond to concerns expressed by Mr. Greenwood about a water leak on El Caminito Road. Chair Knight reported that David Berger and Larry Foy joined her at the September 15, 2006 dedication ceremony for the recently completed Forest Lake Reservoir. She noted that Director Foy spoke at the ceremony on behalf of the District. Chair Knight advised the Board that the Watermaster recommended that Martin Feeney be hired as a technical consultant, and also charged the Technical Committee to develop and distribute a request for proposals for planning and implementation of the Seaside Basin Management Plan. She noted that the Watermaster meetings convene at Soper Field in Seaside. Director Markey requested that Chair Knight inquire as to the possibility of conducting Watermaster meetings in a central location such as Seaside City Hall. Motion #1 -- Director Edwards offered a motion that was seconded by Director Foy to deny the staff recommendation and grant credit for exterior water use as requested by the applicant. No action was immediately taken on the motion. Motion #2 -- Director Markey proposed an amendment to the main motion. She proposed that this item be continued to the October 16, 2006 Board meeting so that District staff could work with the applicant to determine if additional evidence of historic irrigation on the property could be produced, such as water bills or photographs. Director Foy seconded the amendment. The motion failed on a vote of 4 to 2. Directors Edwards, Foy, Knight and Pendergrass were opposed to the motion. Directors Markey and Lehman voted in support of the motion. Director Potter was absent. On a vote of 4 – 2, Motion #1 was approved. Directors Edwards, Foy, Knight and Pendergrass voted in favor of the motion. Directors Markey and Lehman were opposed. Director Potter was absent. Staff was directed to submit Findings of Approval for Board consideration at the October 16, 2006 meeting. During the public hearing on this item the following comments were directed to the Board. (1) Jeanne Byrne, agent for the applicant, stated that the evidence submitted proves that the lot had been irrigated prior to the sale in November 2005. She noted that the only plants installed by the owners after purchase of the property were two palm trees, and no drip system was installed. Ms. Byrne maintained that the new project would reduce water use on the lot through the installation of low-flow appliances. She submitted to the Board a letter from the City of Pacific Grove, dated September 18, 2006, stating that the two lots owned by the applicant share one address. Ms. Byrne also submitted a letter from Craven Landscaping, dated September 18, 2006, briefly describing the landscaping services that were accomplished on the lot. (2) Paul Simpson, representing Jeanne Byrne Architects, confirmed that there is no fence dividing parcels B and C. On a motion by Director Foy and second by Director Edwards, the October through December 2006 Quarterly Water Supply Strategy and Budget was adopted unanimously on a vote of 6 – 0. Director Potter was absent. During the public hearing on this item, John Fisher, a resident of Pacific Grove, advised the Board that an El Nino weather pattern is expected in the coming year. Motion #1 -- Director Pendergrass made a motion to adopt Ordinance No. 125 with the following changes: (A) The definition of Public on page 164 of the ordinance shall read: Public shall mean a facility owned and operated by a public agency. (2) The definition of Parcel on page 164 of the ordinance is an existing definition and shall not appear in bold print. (3) The effective date of the ordinance shown on page 226 shall be amended to read “2007”. In addition staff should file a Notice of Determination and Certificate of Fee Exemption with the Monterey County Clerk. The motion was seconded by Director Edwards. Motion #2 – Director Lehman offered an amendment to the Motion #1. It was seconded by Director Markey. She proposed that Rule 11 be removed from Ordinance No. 125 until a complete analysis of all definitions in Rule 11 can be completed. Director Markey later withdrew her second. Motion #3 – Director Markey offered a friendly amendment to Motion #1. She proposed that definition Nos. 23, Governmental and No. 24, Governmental Use be removed from Ordinance No. 125, and that definition Nos. 41, Public and 42, Public Authority would not be amended as shown in the ordinance. Director Pendergrass did not accept the amendment. Motion #4 – Director Markey made an amended motion to adopt Ordinance No. 125 with the following changes: (A) The definition of Parcel on page 164 of the ordinance is an existing definition and shall not appear in bold print. (B) The effective date of the ordinance shown on page 226 shall be amended to read “2007.” (C) definition Nos. 23, Governmental and 24, Governmental Use shall be removed. (D) Definition Nos. 41, Public and 42, Public Authority Use should not be amended as proposed in the ordinance. The motion was seconded by Director Lehman. The motion failed on a roll-call vote of 4 to 2. Directors Lehman and Markey voted in favor of the motion. Directors Edwards, Foy, Knight and Pendergrass were opposed. Director Potter was absent. Motion #1 was adopted by roll-call on a vote of 5 – 1. Directors Edwards, Foy, Markey, Knight and Pendergrass voted in support of the motion. Director Lehman was opposed. Director Potter was absent. John Fischer, resident of Pacific Grove, addressed the Board during the public hearing on this item. He stated that the definitions of Governmental, Governmental Use, and Public should more clearly describe service districts as being included in those categories. Director Markey offered a motion to defer this item to a special meeting on October 26, 2006 at 7:30 PM in the Boardroom of the Monterey Regional Water Pollution Control Agency. The motion was seconded by Director Foy and approved on a unanimous vote of 6 – 0. Director Potter was absent. Director Edwards made a motion that was seconded by Director Markey to contract with Pueblo Water Resources, Inc. for a not to exceed amount of $171,529. The motion was adopted unanimously on a vote of 6 – 0. Director Potter was absent. There was no discussion of the Informational Items/Staff Reports. The meeting was adjourned at 10 PM.

CALL TO ORDER/ROLL CALL PLEDGE OFALLEGIANCE ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Adoption of Minutes of the August 21, 2006 Regular Board Meeting 2. Consider Authorization for Expenditure of Budgeted Funds for Renewal of Vehicle Maintenance and Fuel Contract with City of Monterey 3. Consider Ratification of Memorandum of Understanding with Management Staff Bargaining Unit that was Adopted at August 21, 2006 Closed Session of the Board PRESENTATIONS 4. Water Supply Alternatives Update GENERAL MANAGER’S REPORT 5. Status Report on California-American Water Compliance with State Water Resources Control Board Order 95-10 6. Announcement of District Open House and Invitation to the Public – Event to be Held on Thursday, October 26, 2006 from 4 PM to 6:30 PM at the District Office ATTORNEY’S REPORT 7. Report on 5:30 PM Closed Session of the Board 3. Conference with Legal Counsel – Existing Litigation (Gov. Code 54956.9 (a)) A. Application of California American Water Company to the Public Utilities Commission Application No. 04-09-019 – Coastal Water Project B. Application of California American Water Company to the Public Utilities Commission Application No. 05-02-012 – General Rate Case C. Save Our Carmel River; Patricia Bernardi; The Open Monterey Project v. MPWMD; MPWMD Board; and the City of Seaside; Monterey County Superior Court Case No. M72877 D. Save Our Carmel River; Patricia Bernardi and The Open Monterey Project v MPWMD; MPWMD Board and the City of Monterey: Monterey County Superior Court Case No. M72061 E. State Water Resources Control Board Permit No. 7130B F. State Water Resources Control Board Permit No. 20808 4. Conference with Labor Negotiators (Gov. Code 54957.6) A. Agency Designated Representatives: Rick Dickhaut, Cynthia Schmidlin and David A. Berger Employee Organization: General Bargaining Unit Represented by Laborer’s International Union of North America, AFL-CIO, (LIUNA/UPEC) Local 270 B. Agency Designated Representative: David A. Berger Unrepresented Employees: Confidential Staff Unit 5. Public Employee Performance Evaluation (Gov. Code 54957) – General Manager DIRECTORS’ REPORTS 8. Oral Reports on Activities of County, Cities, Other Agencies/Committees/ Associations PUBLIC HEARINGS 9. Consider Appeal of General Manager’s Decision to Deny a Water Credit for Exterior Use – Patrick and Kathryn Craig, 802 17 Mile Drive, Pacific Grove – APN 006-611-035 10. Consider Adoption of October through December 2006 Quarterly Water Supply Strategy and Budget 11. Consider Second Reading and Adoption of Ordinance No. 125 – Clarifying Rules Related to Water Permits and Water Credits ACTION ITEMS 12. Receive Water Supply Alternatives Comparative Matrix Update for 2006 13. Consider Authorization for Expenditure of Budgeted Funds for Professional Services Agreement with Pueblo Water Resources, Inc., to Prepare Well Construction Bid Materials and Construction Management Services for Phase 1 Aquifer Storage and Recovery Project INFORMATIONAL ITEMS/STAFF REPORTS 14. Letters Received 15. Committee Reports 16. Strategic Planning Initiatives Progress Report 17. Carmel River Fishery Report 18. Water Conservation Program Report 19. Monthly Allocation Report 20. Monthly California American Water Production Report 21. Monthly Water Supply Status Report 22. Semi-Annual Financial Report on the CAWD/PBCSD Wastewater Reclamation Project ADJOURNMENT

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David A. Berger, Secretary to the Board

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