EXHIBIT 1-A DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District July 16, 2007

The meeting was called to order at 7:00 PM in the District Conference Room. Board members present: David Pendergrass, Chair – Mayoral Representative Judi Lehman – Division 2 Michelle Knight – Division 4 Larry Foy – Division 5 David Potter – Monterey County Board of Supervisors (arrived at 7:10 PM and departed at 9:30 PM) Board members absent: Alvin Edwards, Vice Chair – Division 1 Kristi Markey – Division 3 General Manager present: David A. Berger District Counsel present: David Laredo The assembly recited the Pledge of Allegiance. Roy Thomas, representing the Carmel River Steelhead Association, opined that the 1990 Final Five Year Mitigation Program for Option V--16,700 AF Cal-Am Production Water Allocation Program requires the District to provide a water source to the Carmel River Lagoon. He urged the Board to take responsibility for salvaging fish that may die due to low flows into the lagoon. He warned that emergency conditions existed at the lagoon that must be acted upon immediately. On a motion by Director Foy and second by Director Knight the Consent Calendar was approved unanimously on a vote of 4 – 0. Directors Potter, Markey and Edwards were absent. Approved. Approved. Approved. Approved. Approved. Approved. General Manager Berger reviewed progress made on completion of the Three-Year Goals and Six-Month Strategic Objectives listed in the Strategic Plan. A summary of his comments are on file at the District office and available on the District website. The report was presented by Henrietta Stern, Project Manager. A summary is on file at the District office and is available on the District website. Water Demand Manager, Stephanie Pintar, presented the report. A summary is on file at the District office and is available on the District website. The report was presented by Darby Fuerst, Water Resources Division Manager. A summary of the report is on file at the District office and is available on the District website. Mr. Fuerst stated that between October 1, 2006 and July 12, 2007, California American Water (CAW) production from the Carmel River was 386 acre-feet under the limit established as a result of State Water Resources Control Board Order 95-10. During the same time period, CAW production from the Coastal Subareas of the Seaside Basin was 64 acre-feet under the limit established by the Seaside Basin Adjudication decision. Greg James, Hydrography Programs Coordinator, presented the report. A summary of the report is on file at the District office and is available on the District website. Mr. James reported on flow measured at eight tributaries to the Carmel River. He stated that Pine, San Clemente and Tularcitos Creek were still flowing, but the other tributaries had been dry for several months. He noted that Pine, San Clemente and Tularcitos Creeks usually run year-round, but they are expected to go dry this year. And that in most years, the remaining tributaries usually dry during the summer. During the public comment period on this item, Roy Thomas of the CRSA, reminded the Board that fish in the lagoon may die due to dry conditions. General Manager Berger introduced Tom Bunosky, Director of Network, American Water Western Region, who will be serving as Acting General Manager for the CAW Monterey Division while Steve Leonard is on a short leave of absence. Mr. Berger advised the Board that due to a change in the business arrangement between Monterey County and AMP, the District Board meetings will no longer be cablecast throughout Monterey County on Channel 28. The July 16, 2007 meeting would be cablecast in Carmel, Carmel Valley, Del Rey Oaks, Monterey, Sand City and Seaside on Channel 25. Mr. Berger thanked John Wilson and Steve Ortiz of Comcast; Paul Congo of AMP; Nick Chiulos of Monterey County; and Inder Osahan and Arlene Tavani of the District for their efforts in facilitating the live cablecast. Staff will continue its efforts to develop a long-term plan for future cablecasts throughout the District, including Pebble Beach and the City of Pacific Grove. The meeting was called to order at 5:30 PM. There were no comments from the public. The open session was adjourned to Closed Session at 5:35 PM. District Counsel Laredo reported that the following action was taken during the Closed Session. Item 3.A – On a motion by Director Edwards and second by Director Knight, the Board authorized execution of a Memorandum of Understanding with the General Staff Unit for a two-year period, from July 1, 2007 through June 2009. The motion was approved unanimously on a vote of 5 – 0. Directors Edwards, Foy, Lehman, Knight and Pendergrass voted in favor of the motion. Directors Potter and Markey were absent. On a motion by Director Edwards and second by Director Knight, the Board authorized execution of a Memorandum of Understanding with the Management Staff Bargaining Unit for a two-year period, from July 1, 2007 through June 2009. The motion was adopted unanimously on a vote of 5 – 0. Directors Edwards, Foy, Lehman, Knight and Pendergrass voted in favor of the motion. Directors Potter and Markey were absent. Item 3.B – On a motion by Director Foy and second by Director Edwards, the Board authorized execution of a Memorandum of Understanding with the Confidential Staff unit for a two-year period, from July 1, 2007 through June 2009. The motion was adopted unanimously on a vote of 5 – 0. Directors Edwards, Foy, Lehman, Knight and Pendergrass voted in favor of the motion. Directors Potter and Markey were absent. Regarding items 4. A through 4.F, District Counsel provided status reports to the Board. No reportable action was taken. Director Knight reported that the July 4, 2007 Watermaster meeting was cancelled. The committee would meet again on August 1, 2007. She noted that the California Coastal Commission had issued a waiver to allow drilling of monitoring wells required in the adjudication decision. Also, the Watermaster had entered into a contract with Bob Jaques to fill the position of Project Manager. Director Lehman asked that CAW present to the Board a report describing each line item on the monthly water bill and explaining the tiered rate structure. She asked if District staff could provide at the August 20, 2007 meeting a report on the issue of Carmel River Lagoon mitigations that was raised by Roy Thomas during Oral Communications. Director Pendergrass reported that the next meeting of the Department of Ratepayer Advocates’ sponsored group on development of a regional water supply solution would be held on June 27, 2007. He also noted that July 23, 2007 was the date for the last meeting to develop an MOU on formation of the Monterey Bay Regional Water Solutions Leadership Taskforce. Director Foy offered a motion to adopt the first reading version of Ordinance No. 129 and schedule the item for second reading and adoption at the August 20, 2007 Board meeting. The motion was seconded by Director Knight and approved unanimously on a vote of 5 – 0. Directors Foy, Lehman, Knight, Potter and Pendergrass voted in favor of the motion. Directors Edwards and Markey were absent. No public comment was presented during the public hearing on this item. On a motion by Director Potter and second by Director Knight, the Board voted unanimously to adopt the recommendation outlined in the staff report: (1) conduct public outreach in areas that may be affected by the Draft IRWMP but have not been involved in the process; (2) address and consider in the Final IRWMP the comments and input that may be received as a result of the outreach; (3) request that the Water Management Group be formally established for overseeing implementation of the IRWMP; (4) authorize the General Manager to make minor or non-substantive modifications to the MOU as requested by other Water Management Group entities. The motion was adopted on a vote of 5 – 0. Directors Foy, Lehman, Knight, Potter and Pendergrass voted in favor of the motion. Directors Edwards and Markey were absent. Robert Greenwood representing the Carmel Valley Association, addressed the Board during the public hearing on this item. He requested that the northeast boundary of the planning area be clarified. He recommended that the goal of the planning effort should be to develop an adequate water supply. Director Potter departed from the meeting at approximately 9:30 PM. On a motion by Director Knight and second by Director Lehman, the Board unanimously approved the staff recommendation to establish a 30-day comment period. The motion was approved on a vote of 4 – 0. Directors Foy, Lehman, Knight and Pendergrass voted in favor of the motion. Directors Edwards, Markey and Potter were absent. No comments were directed to the Board during the public comment period on this item. There was no discussion of the Informational Items/Staff Reports. The meeting was adjourned at approximately 10:05 PM.

CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Adoption of Minutes of the May 31, 2007 Special Meeting/Board Workshop and the June 18, 2007 Regular Board Meeting 2. Consider Expenditure of Budgeted Funds for geographical Information System Enterprise Edition and Image processing Software Upgrade 3. Consider Expenditure of Budgeted Funds to Install Window in the District’s Office Building 4. Consider Expenditure of Budgeted Funds for Sleepy Hollow Steelhead Rearing Facility Stand-by Generator Maintenance Service with Quinn Power Systems for Fiscal Year 2007-08 5. Consider Expenditure of Budgeted Funds for Fabrication of Replacement Protective Debris Screen for the Cooling Tower at the Sleepy Hollow Steelhead Rearing Facility 6. Consider Adoption of Treasurer’s Report for May 2007 PRESENTATIONS 7. Strategic Plan Update 8. Water Supply Project Alternatives Update 9. Update on Conservation Program from Catherine Bowie of California American Water and Stephanie Pintar of MPWMD GENERAL MANAGER’S REPORT 10. Status Report on California American Water Compliance with State Water Resources Control Board Order 95-10 and Seaside Groundwater Basin Adjudication Decision 11. Oral Report on Flow Measured at Tributaries to the Carmel River ATTORNEY’S REPORT 12. Report on 5:30 PM Closed Session of the Board 3. Conference with Labor Negotiators (Gov. Code 54957.6) A. Agency Designated Representatives: Rick Dickhaut, Cynthia Schmidlin, David A. Berger and Ellen Aldrich Employee Organization: General Staff and Management Staff 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 4. Conference with Legal Counsel – Existing Litigation (Gov. Code 54956.9 (a)) A. Application of California American Water Company to the California Public Utilities Commission Application No. 04-09-019 – Coastal Water Project B. Application of California American Water Company to the California Public Utilities Commission -- Application No. 07-02-023 -- Allowance for Funds Used During Construction (AFUDC) for its San Clemente Dam Memorandum Account C. State Water Resources Control Board Permit No. 7130B D. State Water Resources Control Board Permit No. 20808 E. MPWMD v. Nick Marotta, Jr., Gerda Marotta, and Does 1-100 -- Monterey County Superior Court Case No. M83498 F. MPWMD v. Roy Woods, Woods 1995 Trust, and Does 1-100 -- Monterey County Superior Court Case No. M83499 DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS) 13. Oral Reports on Activities of County, Cities, Other Agencies/Committees/Associations PUBLIC HEARINGS 14. Consider First Reading of Ordinance No. 129 – An Ordinance of the Monterey Peninsula Water Management District Adding the Rebate Program to the Rules and Regulations of the District, Amending the Rebate Amounts, Excluding Areas within the District that Receive Water from Water Distribution Systems Not Regulated by the District from the Rebate Program, and Adding Rebates for Certain Water Saving Irrigation System Retrofits 15. Integrated Regional Water Management A. Receive Report and Take Public Comment on Monterey Peninsula, Carmel Bay and South Monterey Bay Draft Plan B. Consider Approval of Memorandum of Understanding to Form a Water Management Group to Implement Integrated Regional Water Management for the Monterey Peninsula, Carmel Bay and South Monterey Bay Plan ACTION ITEMS 16. Receive Draft Report from Bookman-Edmonston/GEI Consultants on Evaluation of Seawater Desalination Projects Proposed for the Monterey Peninsula INFORMTIONAL ITEMS/STAFF REPORTS 17. Letters Received 18. Committee Reports 19. Carmel River Fishery Report 20. Water Conservation Program Report 21. Monthly Allocation Report 22. Monthly California American Water Production Report 23. Monthly Water Supply Status Report 24. Quarterly Water Supply Project Status Report 25. Quarterly Irrigation Program and Riparian Projects Report 26. Quarterly Carmel River Erosion Protection and Restoration Projects Report 27. Quarterly Water Use Credit Transfer Status Report ADJOURNMENT

____________________________________ David A. Berger, Secretary to the Board

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