EXHIBIT 11-A

MONTEREY PENINSULA

WATER MANAGEMENT DISTRICT

2006-2007 STRATEGIC PLAN

Adopted October 16, 2006

Updated January 12, 2007

MISSION STATEMENT

The mission of the Monterey Peninsula Water Management District (MPWMD) is to manage,

augment and protect water resources for the benefit of the community and the environment.

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.

THREE-YEAR GOALS

(2006-2009 * Not in priority order)

Establish respectful and effective relationships among the MPWMD, California American Water, jurisdictions and the Watermaster

Determine long-term water supply solution(s), including a quantity target

Build and complete Aquifer Storage and Recovery Phase I Project and complete Phase II planning

Enhance revenue from external resources

Enhance the protection of water resources of the Carmel River for the benefit of the environment

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT (MPWMD)

SIX-MONTH STRATEGIC OBJECTIVES

September 25, 2006 – March 15, 2007

B THREE-YEAR GOAL: Establish respectful and effective relationships among the MPWMD, California American Water, jurisdictions and the Watermaster

WHEN	WHO	WHAT	STATUS			COMMENTS
			DONE	ON TARGET	REVISED
1. By Oct. 31, 2006	Board Chair Michelle Knight and Boardmember Larry Foy, working with Monterey County officials	Discuss how to partner in cost-effectively providing service to the Watermaster to implement the Seaside Groundwater Basin Management and Monitoring Plan.	ü			On 11/15/06, Watermaster selected MPWMD and MCWRA to provide Project management services for Seaside Groundwater Basin Management and Monitoring Plan. A fservice contract is scheduled for 1/17/07 watermaster consideration.
2. By Mar. 15, 2007	General Manager, Board Chair Knight and Boardmembers Lehman, Markey and Foy	Make presentations to each jurisdiction (at City Council and Monterey County Board of Supervisors meetings) regarding water issues affecting the jurisdictions.		ü		1/25/07 Board will review draft PowerPoint presentation and review schedule for meeting with each jurisdiction.
3. By Nov. 2006	Public Outreach Committee (Boardmember Michelle Knight-lead), working with Cal-Am Senior Management	Identify steps toward a more respectful, effective relationship between California American Water (Cal Am) and the MPWMD.		ü		Public Outreach Committee met with Steve Leonard of Cal Am on 12/1/06. Recommendations developed at meeting will be presented to the Board on 2/22/07.

B THREE-YEAR GOAL: Determine long-term water supply solution(s), including a quantity target

WHEN	WHO	WHAT	STATUS			COMMENTS
			DONE	ON TARGET	REVISED
1. At appropriate Board meetings	General Manager	Present the California Public Utilities Commission’s (CPUC) Coastal Water Project proposed targets and alternatives to the Board for feedback.		ü		Staff continues to update the Board on CPUC activities in weekly letter and monthly review.
2. By Nov. 1, 2006 and ongoing thereafter	District Staff (General Manager-lead)	Actively participate in the CPUC Coastal Water Project environmental review.		ü		Commented on Notice of Preparation of a Draft EIR for the Coastal Water Project.
3. At the Nov. 2006 Board meeting	District Engineer	Present to the Board for consideration a resolution to support proposed Monterey Regional Water Pollution Control Agency replenishment projects for the Seaside Basin.	ü			Presented resolution to the MRWPCA Board on 11/27/06.
4. At the Nov. 2006 Board meeting	Public Outreach Committee and General Manager	Present to the Board a recommendation on establishment of an Ad Hoc Community Advisory Committee (CAC).	ü			12/11/07 Board approved establishment of committee and adopted committee charge. First CAC meeting planned for early February 2007.
5. At the Dec. 2006 Board meeting	Board (Chair Michelle Knight-lead)	Initially consider a yield target to satisfy existing and future MPWMD water needs and submit to the jurisdictions for feedback by March 15, 2007.		ü		11/20/06 Board reviewed yield targets. Targets to jurisdictions, county and airport district on 11/30/06. PAC/TAC reviewed targets on 1/9/07. TAC will meet on 1/23/07 to review existing needs estimate.
6. By Mar. 15, 2007	MPWMD Staff (General Manager-lead)	Refine the Matrix of Water Supply Alternatives, using the quantified supply target and adding the Seawater Conversion Vessels offshore desalination project for use by the Board to consider one or more preferred projects.		ü		B-E/GEI contract revision to be considered by Board on 2/22/07.

C THREE-YEAR GOAL: Build and complete Aquifer Storage and Recovery Phase 1 Project and complete Phase 2 planning

WHEN	WHO	WHAT	STATUS			COMMENTS
			DONE	ON TARGET	REVISED
1. By Dec. 1, 2006 By Jan. 31, 2007 By Feb. 28, 2007	General Manager and Team Water Rights	Secure State Water Resources Control Board (SWRCB) approval for Phase 1 Aquifer Storage and Recovery (ASR).			ü	Negotiations to dismiss protests continue. Temporary permit issued 1/9/07. 2/05/07 meeting with SWRCB staff is scheduled. Propose new target of 2/28/07 for securing Phase 1 Long-term Permit from SWRCB.
2. By Jan. 31, 2007 By Feb. 28, 2007	General Counsel and General Manager	Complete ASR Phase 2 water rights negotiations between Cal Am and the MPWMD.			ü	Focus has been on Phase 1 water rights. Propose new target of 2/28/07.
3. By Feb. 1, 2007 By mid Feb. 2007	Senior Hydrogeologist	Oversee completion of the second ASR well for Phase 1 project.			ü	Construction began 12/4/06. Estimated date of completion adjusted.
4. By Feb. 1, 2007 By Feb 28, 2007	Senior Hydrogeologist	Monitor and facilitate the necessary infrastructure improvements to the Cal-Am system to ensure that they are in place to support Phase 1 ASR.			ü	Pipeline installation began in early December 2007. Revised completion date is late February 2007.
5. By Mar. 15, 2007	Water Resources Manager	Develop a project description and yield estimate for the Phase 2 ASR project.		ü		Meetings with Cal-Am continue. MPWMD is providing computer modeling to help determine Phase 2 project description.

DTHREE-YEAR GOAL: Enhance revenue from external resources

WHEN	WHO	WHAT	STATUS			COMMENTS
			DONE	ON TARGET	REVISED
1. By Jan. 15, 2007 By Feb. 22, 2007	Chief Financial Officer and the Administrative Committee	Identify the CPUC rate increase and determine additional revenues from user fees.			ü	To be accomplished in conjunction with mid-year budget review.
2. By Jan. 15, 2007 By Feb. 15, 2007	General Manager and Water Demand Manager	Complete reimbursement agreements for the Conservation Program with Cal-Am.		ü		Drafting reimbursement agreement.
3. By Jan. 31, 2007 By April 16, 2007	Chief Financial Officer (lead), Administrative Committee and the Board	Secure funding through participation in a debt pool for ASR Phase 1.		ü		In progress. Target date adjusted to reflect anticipated funding availability.

ETHREE-YEAR GOAL: Enhance the protection of water resources of the Carmel River for the benefit of the environment

WHEN	WHO	WHAT	STATUS			COMMENTS
			DONE	ON TARGET	REVISED
1. By Mar. 15, 2007	Senior Fisheries Biologist and the Water Resources Engineer	Work with the Interagency Carmel River Lagoon Technical Advisory Committee (CRLTAC) with input from stakeholders to finalize the CRLTAC’s Long Term Plan.		ü
2. At the March 2007 Board meeting, after review by the Carmel River Advisory Committee	Water Resources Manager	Merge and prioritize lists of restoration objectives from the National Oceanic and Atmospheric Administration/Cal-Am settlement and Carmel River Watershed Conservancy watershed plan so that the MPWMD has a position on spending priorities for restoration of the Carmel River watershed, and present to the Board for consideration.		ü

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