EXHIBIT 1-A DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District December 10, 2007

The meeting was called to order at 7 PM in the Conference Room of the Monterey Peninsula Water Management District office. Directors Present: David Pendergrass, Chair – Mayoral Representative Alvin Edwards, Vice Chair – Division 1 Judi Lehman – Division 2 Kristi Markey – Division 3 Regina Doyle – Division 4 Bob Brower – Division 5 David Potter – Monterey County Board of Supervisors (Outgoing directors Michelle Knight and Larry Foy were seated at the dais when the meeting was called to order. Upon taking the oath of office, directors Regina Doyle and Bob Brower took their places at the dais and the outgoing directors moved to the audience.) Directors Absent: None General Manager present: David A. Berger District Counsel present: David Laredo The assembly recited the Pledge of Allegiance Clerk to the Board, Arlene Tavani, administered the Oath of Office to Kristi Markey, Regina Doyle and Bob Brower. Mr. Foy acknowledged District staff, General Manager Berger, District Counsel Laredo and Board Clerk Arlene Tavani for their outstanding work during his term of office. He thanked the Board members for the cooperative manner in which they carried out their duties. Ms. Knight also thanked staff for their hard work during her term. She wished the new Board success in the future. Director Potter thanked the outgoing directors for their participation on the Board. He acknowledged the cooperation and professional attitude exhibited by all directors over the previous four-year period. During the Oral Communications period, David Dilworth asked if the Board planned to formally adopt the results of the November 6, 2007 MPWMD election. Chair Pendergrass noted that the election results were slated for adoption on the Consent Calendar. On a motion by Director Doyle and second by Director Lehman, the Consent Calendar was approved unanimously on a vote of 7 - 0. Directors Brower, Doyle, Edwards, Lehman, Markey, Pendergrass and Potter voted in favor of the motion. Chair Pendergrass presented the Resolutions of Appreciation to Michelle Knight and Larry Foy. Mr. Solak’s presentation is on file at the District office and can be viewed on the District’s website. Following the presentation, Mr. Solak responded to questions from the Board. He stated that members of the public have expressed concerns about air quality due to silver iodide used in operation of the cloud seeding process. However, federally funded studies have shown that silver concentration levels in the vicinity of the silver iodide flares are well below safety standards. Darby Fuerst, the District’s Water Resources Manager also answered Board member questions and some of his comments are recorded here. Due to low rainfall in recent years, the Carmel Valley aquifer has been depleted by approximately 7,500 acre-feet. If this trend continues (11 inches of rain in 2007) there would not be enough flow to fully recharge the aquifer. If cloud seeding resulted in normal rainfall levels through the winter and spring, the aquifer would recharge and water would flow to the ocean. Reservoirs on the Carmel River currently have limited storage capacity. Increased rainfall from cloud seeding would fill them more quickly. If cloud seeding resulted in recharge of the aquifer, instream flow might be sufficient to divert water from the Carmel River for injection into the Seaside Groundwater Basin via the Aquifer Storage and Recovery Project. On a motion by Director Pendergrass and second by Director Brower, staff was directed to develop additional information and bring the issue forward to the January 24, 2008 meeting at which time the Board may decide if a cloud seeding program should be implemented. The motion was adopted on a vote of 6 – 1. Directors Brower, Doyle, Edwards, Lehman, Pendergrass and Potter voted in favor of the motion. Director Markey was opposed. During the public comment period on this item, David Dilworth urged the Board to review this issue objectively. He believes that the success of a cloud seeding program cannot be measured scientifically. Director Potter exited the meeting following the discussion on item 10. Mr. Stilwell, Executive Vice President and General Counsel for the Pebble Beach Company, explained that the first phase of the project was completed in 1994 at a cost of $34 million. It was designed to provide 2 million gallons per-day of tertiary treated water to meet the irrigation needs of golf courses and some open space in Pebble Beach. This was a cooperative project in which MPWMD provided bond financing; Pebble Beach Company guaranteed payment of financing and operation costs; Carmel Area Wastewater District constructed and operated the tertiary treatment plant; and Pebble Beach Community District operated the distribution system. The project was intended to save 800 acre-feet of potable water per year. In exchange for the financing guarantee, the Pebble Beach Company received a potable water entitlement of 385 acre-feet. The project was designed to upgrade the Forest Lake Reservoir for use as a facility to store 100 million gallons of water. Also, tertiary treatment would be replaced by installing a small micro-filtration, reverse osmosis plant (MF/RO) at the CAWD facility that would remove most of the salts from the water and make it more suitable for application to the golf courses. In order to fund construction of the project, the Pebble Beach Company was authorized to sell a portion of its water entitlement, on the condition that the revenues would be placed in an escrow account for project construction. Approximately $23 million were raised and $12.6 million of that paid for construction of the Forest Lake Reservoir. It is expected that the cost to complete the MF/RO project will be approximately $21.5 million. The MF/RO project should be completed by May of 2008. The Forest Lake Reservoir should be filled with recycled water from the project by December 2008. Mr. Von Dohren’s presentation is on file at the District office and can be viewed on the District’s website. He presented photos that chronicled the project construction process. The following comments were directed to the Board during the public comment period on this item. (1) David Dilworth, representing Helping Our Peninsula’s Environment, stated that the water entitlement Pebble Beach Company received from the project was created “out of thin air.” He criticized the District for using public funds to facilitate development of the project. (2) Mark Stilwell, Pebble Beach Company, described the project as a “total success” because it has saved 2.6 billion gallons of potable water. In addition, the State Water Resources Control Board (SWRCB) recognized the Company’s separate water right in Order WR95-10. General Manager David Berger presented the report. It is on file at the District office and can be viewed on the District’s website. The report was presented by Henrietta Stern, Project Manager. It is on file at the District office and can be viewed on the District’s website. David Dilworth addressed the Board during the public comment period on this item. He noted that slide 6 of Ms. Stern’s presentation referred to negotiations for “joint ownership of water rights” with California American Water Company (CAW) for future ASR projects. He asked for an explanation. General Manager Berger explained that there is an agreement with CAW regarding the Phase 1 ASR Project that provides for good faith negotiations on potential sharing of future water rights beyond the shared water right for the Phase 1 Project. It is not a binding agreement to share water rights. The report was presented by Darby Fuerst, Water Resources Manager. It is on file at the District office and can be viewed on the District’s website. Mr. Fuerst reported that between October 1, 2007 and December 6, 2007, CAW production from the Carmel River for customer use was 1,745 acre-feet, which was 83 acre-feet over the limit established as a result of State Water Resources Control Board Order WR 95-10. During the same time period, CAW production from the Coastal Subareas of the Seaside Basin was 756 acre-feet, which was 162 acre-feet below the limit established in the Seaside Basin Adjudication. Mr. Fuerst stated that if sufficient rainfall is not received, there is a possibility that CAW could exceed production limits and the community would be subject to Phase 2 or 3 of the Expanded Conservation Program. He noted that year-to-date, the District has received 40 percent of normal rainfall for that time period. The report was presented by Stephanie Pintar, Water Resources Manager. It is on file at the District office and can be viewed on the District’s website. In response to a question from the Board, Ms. Pintar stated that the District may be contacting operators of open space and parks reminding them to turn off sprinklers. She encouraged the Board and public to contact the District office if water waste is observed. During the public comment period on this item, David Dilworth, representing HOPE, suggested that the District: (a) assess penalties for water waste at golf courses; (b) adopt a resolution encouraging the installation of grey water systems for irrigation of landscaping; and (c) publish the names of the 100 CAW customers that use the highest amount of water, and the 100 top water wasters. Director Lehman participated in the December 5, 2007 Seaside Basin Watermaster meeting. She reported that the Watermaster approved a contract for work to be done by the District in an amount of $115,000. Also the Watermaster approved a new contract with the Executive Director, which designates him as an independent contractor. In response to a question from the Board, Stephanie Pintar stated that the District has developed a draft ordinance regarding outside irrigation. The Technical Advisory Committee has reviewed the ordinance. It will be presented to the Board in 2008. Motion 1: Chair Pendergrass made a motion to continue the item to the January 24, 2008 meeting so that all seven directors could participate in the public hearing. The motion was seconded by Director Edwards. Motion 2: Director Markey offered a substitute motion to continue consideration of this item to the January 24, 2008 meeting. Prior to that hearing, District staff should apprise the State Water Resources Control Board (SWRCB) of the current description and status of the Sand City Desalination Project, including how the project has been modified since the Executive Director of the State Water Resources Control Board (SWRCB) issued a January 6, 2006 letter stating the project was not subject to SWRCB Order WR95-10. The District should seek direction from the SWRCB. The motion was seconded by Director Lehman. The motion failed on a vote of 3 - 3. Directors Doyle, Lehman and Markey voted in favor of the motion. Directors Brower, Edwards and Pendergrass were opposed. Director Potter was absent. Motion 1: The motion was adopted on a vote of 4 – 2. Directors Brower, Edwards, Lehman and Pendergrass voted in favor of the motion. Directors Doyle and Markey were opposed. Director Potter was absent. The following comments were directed to the Board during the public hearing on this item. (1) David Dilworth, representing HOPE, expressed support for the motion to continue the item to the January 24, 2008 meeting. He requested that prior to the January public hearing, the District update the SWRCB on the status of the Sand City Desalination Project and how the project description has changed since the SWRCB issued its January 31, 2006 letter regarding the project. (2) Jim Heisinger, Counsel for the City of Sand City, stated that the source of water for the Sand City Desalination Project is the Seaside Basin. Since the January 31, 2006 letter was written, there has been no change in the source of water for the project. There has been a modification to how the water will be delivered. Also, 94 acre-feet of CAW water production from the Seaside Basin or the Carmel River will be permanently set aside for conservation savings. He stated that the City of Sand City is concerned that if the full Board of the SWRCB were asked to make a determination on the project, adoption of the ordinance would be delayed. The January through March 2008 Quarterly Water Supply Strategy and Budget was adopted by the Board on a motion by Director Brower and second of Director Edwards. The motion was approved on a vote of 6 – 0. Director Potter was absent. David Dilworth, representing HOPE, addressed the Board during the public hearing on this item. He stated that two-thirds of the water produced by CAW is illegally pumped. He said that the water supply strategy and budget should have included minimum flow rates at specific locations on the Carmel River. He suggested that the U.S. Fish and Wildlife Service be included in development of the water supply strategy and budget. Mr. Fuerst stated that flow rates are not included in the Water Supply Strategy and Budget, they are incorporated into an annual MOU between the District, CAW and the California Department of Fish and Game. Mr. Fuerst also explained that the U.S. Fish and Wildlife Service is always invited to the Water Supply Strategy and Budget planning meetings, but chooses not participate in person or by phone. On a motion by Director Markey and second by Director Edwards, the item was referred to the Technical Advisory Committee for review, and continued to a future undetermined date for consideration by the Board of Directors. The motion was approved unanimously on a vote of 6 – 0. Director Potter was absent. David Dilworth, representing HOPE, addressed the Board during the public comment period on this item. According to Mr. Dilworth, the Board continues to delay implementation of Stage 3 of the Expanded Conservation and Standby Rationing Plan, even though the water supply situation deteriorates. Director Edwards made a motion to elect Director Lehman to the position of Chair. The motion was seconded by Director Markey and adopted unanimously on a vote of 6 – 0. Director Potter was absent. Director Edwards made a motion to elect Director Markey to the position of Vice Chair. The motion was seconded by Director Lehman and adopted unanimously on a vote of 6 – 0. Director Potter was absent. Director Markey made a motion to elect General Manager Berger to the position of Secretary to the Board. The motion was seconded by Director Doyle and adopted unanimously on a vote of 6 – 0. Director Potter was absent. Director Brower made a motion to elect Rick Dickhaut, Administrative Services Manager/Chief Financial Officer to the position of Treasurer to the Board. The motion was seconded by Director Lehman and adopted unanimously on a vote of 6 – 0. Director Potter was absent. On a motion by Director Markey and second by Director Edwards, Director Lehman was elected to serve as the representative to the Seaside Groundwater Basin Watermaster. The motion was approved unanimously on a vote of 6 – 0. Director Potter was absent. On a motion by Director Lehman and second by Director Edwards, Director Markey was elected to serve as the alternate to the Seaside Groundwater Basin Watermaster. The motion was approved unanimously on a vote of 6 – 0. Director Potter was absent. There was no discussion of the Information Items/Staff Reports. The meeting was adjourned to Closed Session at 9:55 PM. This item was deferred to the January 24, 2008 Board meeting, as no members of the public were present to receive District Counsel’s report. The meeting was adjourned at approximately 10:30 PM.

CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ADMINISTER OATH OF OFFICE TO KRISTI MARKEY, DIVISION 3; REGINA DOYLE, DIVISION 4 AND BOB BROWER, DIVISION 5 ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Adoption of Minutes of the November 19, 2007 Regular Board Meeting 2. Adopt Resolutions of Appreciation for Outgoing Board Members Michelle Knight, Division 4 and Larry Foy, Division 5 3. Consider Adoption of Resolution No. 2007-14 Certifying Official Results of November 6, 2007 MPWMD Election 4. Adopt Board Meeting Schedule for 2008 5. Consider Expenditure of Budgeted Funds to Contract with Pueblo Water Resources to Assist with Water Year 2008 Recharge Program at Phase 1 Aquifer Storage and Recovery Facilities 6. Consider Agreement with Marina Coast Water District and Monterey County Water Resources Agency Regarding Dual-Well Injection Testing at Phase 1 Aquifer Storage and Recovery Facilities 7. Consider Approval of MPWMD Professional Services Agreement with Seaside Groundwater Basin Watermaster 8. Consider Adoption of Treasurer’s Report for July 2007 PRESENTATIONS 9. Present Resolutions of Appreciation to Outgoing Board Members Michelle Knight, Division 4 and Larry Foy, Division 5 10. Presentation by Mark Solak, Vice President of North American Weather Consultants, on Cloud Seeding and Potential Board Direction 11. Presentation from Mark Stilwell of the Pebble Beach Company and Ray Von Dohren of the Carmel Area Wastewater District Regarding the Pebble Beach Recycled Water Project 12. Strategic Plan Update 13. Water Supply Project Alternatives Update GENERAL MANAGER’S REPORT 14. Status Report on California American Water Compliance with State Water Resources Control Board Order 95-10 and Seaside Groundwater Basin Adjudication Decision 15. Update on Conservation Program from Catherina Bowie of California American Water and Stephanie Pintar of MPWMD DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS) 16. Oral Reports on Activities of County, Cities, Other Agencies/Committees/Associations PUBLIC HEARINGS 17. Consider Second Reading and Adoption of Ordinance No. 132 – Add a New Rule 23.6 to Establish a Water Entitlement for Sand City and Amend Rules 11, 21 and 23.1 to Reflect the Process for Issuing Water Use Permits 18. Consider Adoption of January through March 2008 Quarterly Water Supply Strategy and Budget ACTION ITEMS 19. Consider Acceptance of Contingency Plan to Implement Stages 4 through 7 of the Expanded Conservation and Standby Rationing Plan in Case of Drought 20. Consider Nomination of Board Chair and Vice-Chair for 2008 and Conduct Elections for Board Officers 21. Appointment of Representative and Alternate to Seaside Basin Watermaster INFORMATIONAL ITEMS/STAFF REPORTS 22. Letters Received 23. Committee Reports 24. Water Conservation Program Report 25. Monthly Allocation Report 26. Monthly California American Water Production Report 27. Monthly Water Supply Status Report ADJOURN IN MEMORY OF FORMER MONTEREY COUNTY SUPERVISOR JERRY SMITH / RECONVENE TO CLOSED SESSION 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. Application of California American Water Company to the Public Utilities Commission Application No. 07-02- 010 -- General Rate Case D. State Water Resources Control Board Permit No. 7130B E. State Water Resources Control Board Permit No. 20808 F. MPWMD v. Nick Marotta, Jr., Gerda Marotta, and Does 1-100 -- Monterey County Superior Court Case No. M83498 G. MPWMD v. Roy Woods, Woods 1995 Trust, and Does 1-100 -- Monterey County Superior Court Case No. M83499 ATTORNEY’S REPORT ON CLOSED SESSION OF THE BOARD ADJOURNMENT

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David A. Berger, Secretary to the Board

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