EXHIBIT 1-A
DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District March 17, 2008
The meeting was called to order at 7:00 PM in the District Conference Room.	CALL TO ORDER/ROLL CALL
Directors Present: Judi Lehman, Chair – Division 2 Kristi Markey, Vice Chair -- Division 3 Alvin Edwards – Division 1 Regina Doyle – Division 4 Bob Brower – Division 5 David Pendergrass – Mayoral Representative David Potter – Monterey County Board of Supervisors Directors Absent: None General Manager present: David A. Berger District Counsel present: David C. Laredo
The assembly recited the Pledge of Allegiance.	PLEDGE OF ALLEGIANCE
The following comments were received during Oral Communications. (1) Lorin Letendre, representing Monica Hunter and the Carmel River Watershed Conservancy (CRWC) announced that the CRWC would conduct two informational meetings on the San Clemente Dam Removal Project and receive pubic comment on the project. The meetings are scheduled for March 26, 2008, at 1 PM in the Hidden Valley Music Seminars in Carmel Valley, and at 7 PM at Mission Ranch in Carmel.	ORAL COMMUNICATIONS
On a motion by Director Edwards and second by Director Potter, the Consent Calendar was unanimously approved with the exception of item 2, that was pulled for separate consideration. The motion was adopted on a vote of 7 – 0.	CONSENT CALENDAR
Approved.	1.	Consider Adoption of Minutes of the February 28, 2008 Regular Board Meeting
On a motion by Director Brower and second by Director Pendergrass, the Board requested that District Counsel modify the letter to state that the District would support a request from California American Water (CAW) for a change in the point of diversion from San Clement Dam, in order to maintain its water rights. The motion was approved unanimously on a vote of 7 – 0.	2.	Consider Approval of Letter to California Coastal Conservancy and Other Entities Expressing Support for the San Clemente Dam Bypass Alternative
Approved.	3.	Authorize Expenditure of Budgeted Reimbursable Funds to Contract for Consulting Services to Conduct Induction Data Logging at Seaside Basin Watermaster Sentinel Wells
Approved.	4.	Consider Expenditure of Budgeted Funds to Contract with Graham Matthews and Associates to Complete a Preliminary Design for the Lower Carmel River Restoration Project
Approved.	5.	Consider Reconvening Ad-Hoc Community Advisory Committee to Address State Water Resources Control Board Draft Cease and Desist Order
Approved.	6.	Consider Approval of Treasurer's Report for January 2008
Approved.	6X.	Consider Acceptance of Resignation of General Manager David Berger
	PRESENTATIONS
Lyndel Melton gave a presentation that is on file at the District office and can be viewed on the District’s web site. Following his presentation he responded to questions from the Board of Directors. Some of his comments are recorded here. An MOU to fund costs for engineering work related to the regional plan developed by the Regional Plenary Oversight Group (REPOG) has been signed by CAW and the Marina Coast Water District (MCWD). It will also be considered by the Monterey County Water Resources Agency and the Monterey Regional Water Pollution Control Agency. The cost to operate the 9,000 acre-foot desalination project proposed in the regional plan could be one-third less than the cost for other desalination alternatives because it would process brackish water and would utilize an existing outfall. The regional project would be funded by rate payers. Once the project is defined, it should be incorporated into the Integrated Regional Management Plan in order to take advantage of opportunities for state funding. Since the project is focused on environmental enhancement, other sources of funding may also be available. The desalination project could be owned by a private company or a public agency. CAW and MCWD have both indicated an interest in owning the project. Concern has been expressed about the transfer of water from the Salinas groundwater basin to other areas. The goal is to balance transfers of water from one basin to another, and to develop a clear description of the source for desalinated and reclaimed water and where the purified water will be transferred. For example, it is necessary to quantify the amount of source water for the Castroville Seawater Intrusion project that is derived from the Monterey Peninsula over a specified time period. RMC plans to complete the environmental studies on the regional option according to the same timeline specified for completion of the EIR on CAW’s Coastal Water Project. If the District were to construct an 8,400 acre-foot desalination project, the yield from the proposed regional project would be reduced.	7.	Presentation by Lyndel Melton, RMC Water and Environment, on “Sustainable Water Supply Program for Monterey County”
General Manager Berger announced that the District prepared a mailer describing the draft Cease and Desist Order issued by the SWRCB against CAW. On Friday, March 21, 2008, the mailer would be sent to all CAW customers in the District and subsequently published in local newspapers.	8.	Strategic Plan Update
Henrietta Stern, Project Manager, presented the report. An outline of the presentation is on file at the District office and can be viewed at the District’s website.	9.	Water Supply Project Alternatives Update
	GENERAL MANAGER’S REPORT
Darby Fuerst, Water Resources Division Manager, presented the report. An outline of the presentation is on file at the District office and can be viewed at the District’s website. Mr. Fuerst reported that for the period of October 1, 2007 through March 12, 2008, CAW production from the Carmel River was 208 acre-feet under the production limit established as a result of SWRCB Order 95-10. During the same time period, production from the Coastal Subareas of the Seaside Basin was 125 acre-feet under the production limit established as a result of the Seaside Groundwater Basin Adjudication. Production from the Laguna Seca Subarea was 65 acre-feet over the production limit. However, the adjudication decision allows CAW to combine its production from all subareas within the Seaside Groundwater Basin. Consequently, CAW’s production from that area was 60 acre-feet under the adjudication limit.	10.	Status Report on California American Water Compliance with State Water Resources Control Board Order 95-10 and Seaside Groundwater Basin Adjudication Decision
	ATTORNEY’S REPORT
The Board met to discuss the letter of resignation submitted by General Manager, David A. Berger. The Board accepted the resignation with the effective date of March 21, 2008, and directed that action be taken to retain an interim general manager.	11.	Report on March 13, 2008 Special Closed Session of the Board
In regards to items A through E, general direction was provided to Counsel, but no reportable action was taken. Mr. Laredo reported that a pre-hearing conference on these issues is set for March 19, 2008 and public participation hearings will be conducted in Monterey on April 8 and 9, 2008. The Board also considered items F, G and H. Mr. Laredo reported that 15 parties had submitted notices of intent to appear at hearings before the SWRCB set for June 19, 2008 in Sacramento, and 84 witnesses were named. Counsel also provided status reports on items I and J, but no reportable action was taken. In regards to item 4.A, the Board authorized the employment of Darby Fuerst as Interim General Manager beginning March 22, 2008.		Report on March 17, 2008 Closed Session of the Board
		3.	Conference with Legal Counsel – Existing Litigation (Gov. Code 54945.9 (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 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 California Public Utilities Commission for a Special Conservation Program and Design Modifications Rate in its Monterey District (Application No. 07-12-010) – Conservation Program Application
		D.	Application of California -American Water Company to California Public Utilities Commission for Authorization to Increase Revenues for Water Service in its Monterey District in the years 2009; 2010; and 2011 (Application No. 08-01-027) – General Rate Case
		E.	Application of California-American Water Company to Authorize Support Services for its Monterey District to the California Public Utilities Commission (Application No. 08-01-024 ) – General Office Case
		F.	State Water Resources Control Board Permit No. 7130B
		G.	State Water Resources Control Board Permit No. 20808
		H.	State Water Resources Control Board Draft Cease and Desist Order WR 2008-00XX-DWR
		I.	MPWMD v. Nick Marotta, Jr., Gerda Marotta, and Does 1-100 -- Monterey County Superior Court Case No. M83498
		J.	MPWMD v. Roy Woods, Woods 1995 Trust, and Does 1-100 -- Monterey County Superior Court Case No. M83499
		4.	Personnel Matters – Interim Appointment and Employment of Replacement General Manager Pursuant of Government Code Sec. 4957.1 (a)
		A.	Discussion and Action Related to Appointment of Interim General Manager
	DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS)
No reports were given by the Directors.	12.	Oral Report on Activities of County, Cities, Other Agencies/Committees/ Associations
	PUBLIC HEARINGS
On a motion by Director Potter and second by Director Edwards, staff was directed to finalize the text and proceed with production and distribution of the final 2007 MPWMD Annual Report. The motion was adopted unanimously on a vote of 7 – 0. No comments were directed to the Board during the public hearing on this item.	13.	Consider Approval of Draft 2007 MPWMD Annual Report
On a motion by Director Pendergrass and second by Director Potter, the Board adopted the June 2008 Quarterly Water Supply Strategy and Budget. The motion was approved unanimously on a vote of 7 – 0. No comments were directed to the Board during the public hearing on this item.	14.	Consider Adoption of April through June 2008 Quarterly Water Supply Strategy and Budget
	ACTION ITEMS
A motion was offered by Director Brower and seconded by Director Potter to receive the Matrix of Water Supply Project Alternatives as presented in the staff report with one revision: row 9, column D should be amended to read, “7,909 AFY for compliance with Order 95-10. 500 AFY to address Seaside Basin overdraft.” The motion was approved unanimously on a vote of 7 – 0. No comments were directed to the Board during the public comment period on this item.	15.	Receive Update to Matrix of Water Supply Project Alternatives
On a motion by Director Edwards and second of Director Brower, the Board authorized expenditures of: (1) $299,920 for Zone24X7 to develop, deploy and maintain the new Water Demand Division database; and (2) $20,000 for an amendment to the professional service agreement with PM Connect to provide project management services related to software development and deployment phases of the project. The motion was approved unanimously on a vote of 7 – 0. No comments were directed to the Board during the public comment period on this item.	16.	Consider Expenditure of Budgeted Funds and Authorization to Enter into Professional Services Agreement with Zone24X7 for Water Demand Division Database Software Development
Director Pendergrass offered a motion that was seconded by Director Edwards to: (1) request from the jurisdictions estimates of the potential for the transfer of potable water credits; (2) obtain an estimate of the additional cost to prepare an EIR on the transfer of sub-potable and potable water credits; and (3) convene the Policy and Technical Advisory Committees to consider whether or not they would support preparation of an EIR on the transfer of sub-potable water credits only or sub-potable and potable water credits; and if they would support sharing the cost for preparation of the EIR. 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. No comments were directed to the Board during the public comment period on this item.	17.	Review and Consider Outcome of January 31, 2008 Joint Meeting of the Policy and Technical Advisory Committees Regarding Expansion of EIR Needed for the Subpotable Water Credit/Transfer Concept Ordinance to Include Potable Water Credits Transfer
There was no discussion of the Informational Items/Staff Reports.	INFORMATIONAL ITEMS/STAFF REPORTS
	18.	Letters Received
	19.	Committee Reports
	20.	Strategic Plan Update
	21.	Carmel River Fishery Report
	22.	Water Conservation Program Report
	23.	Monthly Allocation Report
	24.	Monthly California American Water Production Report
	25.	Monthly Water Supply Status Report
The meeting was adjourned 9:45 PM.	ADJOURNMENT

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Darby Fuerst, Secretary to the Board

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