EXHIBIT 1-B

DRAFT MINUTES

Strategic Planning Workshop

Board of Directors

Monterey Peninsula Water Management District

February 13, 2008

Call to Order Strategic Planning Session

The meeting was called to order at 8:30 AM in Carpenter Hall at the Sunset Cultural center.

Board members present:

Chair, Judi Lehman – Division 2

Alvin Edwards – Division 1

Regina Doyle – Division 4

Bob Brower – Division 5

David Pendergrass – Mayoral Representative

David Potter – Monterey County Board of Supervisors (Left at 1:30 PM)

Board members absent:

Vice Chair, Kristi Markey – Division 3

Staff members present:

David Berger, General Manager

Rick Dickhaut, Administrative Services Manager/Chief Financial Officer

Inder Osahan, Chief Technology Officer

Andy Bell, Planning and Engineering Manager/District Engineer

Henrietta Stern, Project Manager/Public Information Representative

Darby Fuerst, Water Resources Manager

Joe Oliver, Senior Hydrogeologist

Stephanie Pintar, Water Demand Manager

Arlene Tavani, Executive Assistant

District Counsel present:

David Laredo

Heidi Quinn

Welcome, Purpose of the Workshop, Introduction of the Facilitator and Recorder – Judi Lehman, MPWMD Board Chair

Chair Lehman introduced the meeting facilitator, Marilyn Snider of Snider and Associates, and the meeting recorder, Julia Chambers.

Public Comment

Dale Hekhuis, a resident of Carmel and former Chair of the MPWMD Board of Directors, suggested several actions the District could take to address water production reductions described in the draft Cease and Desist Order issued by the staff of the State Water Resources Control Board (SWRCB). He urged the Board to focus on improving communication with the public on the District’s water conservation program including an estimate of water savings that have been achieved, and could be achieved over a 5 to 10 year period. The District should also ensure that the SWRCB staff is aware of water conservation programs and savings achieved within the MPWMD. Incentives for water conservation should be developed; and a feasible goal for water conservation over the next 10 years should be quantified. In addition, a citizens committee could be formed to discuss what a water conservation program can and cannot achieve.

Role of the Facilitator, Recorder, Group and Public; Strategic Planning Elements; Agenda – Marilyn Snider, Facilitator – Snider and Associates

Ms. Snider reviewed these items with the group.

Introductions of the Group

MPWMD

— Mission/Purpose Statement

— Vision Statement

— Core Values/Guiding Principles

— Three-Year Goals (2006-2009)

The group reviewed these items and decided to make no changes (refer to Attachment 2, page 1).

Accomplishments of the MPWMD since April 19, 2007 Strategic Planning Workshop

Discussion of this item is outlined on Attachment 1.

Review and Revise, if Needed, the Three-Year Goals (what needs to be accomplished)

— Impacts of SWRCB Draft Cease and Desist Order WR 2008-00XX-DWR

— Other External Factors/Trends

Discussion of this item is outlined on Attachment 1.

The following comments from the public were received. (1) Jeff Taylor, Carmel Valley property owner, asked what authority Jim Kassel had to issue the draft Cease and Desist Order. General Manager Berger stated that Mr. Kassel is Assistant Deputy Director of the Water Rights Division of the SWRCB, and is the assistant to Victoria Whitney, the Director of the Water Rights Division. Mr. Taylor also asked if California American Water (CAW) had requested that the SWRCB increase the amount of water that could be produced from the Carmel River. District Counsel Laredo responded that the District and CAW have petitioned for an increase but the requests have not been granted. (2) Dale Hekhuis asked if the public will have an opportunity to review any response the District may file, should the draft Cease and Desist Order be set for a hearing with the SWRCB. District Counsel Laredo replied that the usual procedure is for the Board to review the information before it is submitted to the SWRCB.

At 12:30 PM the meeting was adjourned for lunch. The meeting reconvened at 1:30 PM. Director Potter was not present for the afternoon session.

Next Steps/Follow-Up Process to Monitor Progress on the Goals and Objectives (including setting a date for a six-month follow-up)

Refer to Attachments 1 and 2. Two tentative dates for a meeting were discussed. A final date will be selected after conferring with all Directors on their schedules.

Summary of the Workshop and Closing Remarks – Marilyn Snider

Adjourn

The meeting was adjourned at approximately 3:30 PM.

_________________________________

David A. Berger,

Secretary to the Board

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