EXHIBIT 1-A
DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District October 20, 2008
The meeting was called to order at 7:05 PM in the District Conference Room.	CALL TO ORDER/ROLL CALL
Directors Present: Alvin Edwards – Division 1 Judi Lehman, Chair – Division 2 Kristi Markey, Vice Chair -- Division 3 Regina Doyle – Division 4 Bob Brower – Division 5 David Pendergrass – Mayoral Representative Directors Absent: David Potter – Monterey County Board of Supervisors General Manager present: Darby Fuerst District Counsel present: David C. Laredo
The assembly recited the Pledge of Allegiance.	PLEDGE OF ALLEGIANCE
No public comment was directed to the Board during Oral Communications.	ORAL COMMUNICATIONS
On a motion by Director Edwards and second of Director Markey, the Consent Calendar was approved, with the exception of items 1, 4 and 6 that were pulled for separate consideration. The motion was approved unanimously on a vote of 6 – 0 by Directors Brower, Doyle, Edwards, Lehman, Markey and Pendergrass. Director Potter was absent.	CONSENT CALENDAR
On a motion by Director Markey and second by Director Pendergrass, the minutes were adopted unanimously on a vote of 6 – 0. Director Potter was absent.	1.	Consider Adoption of Minutes of the September 22, 2008 Regular Board Meeting
Approved.	2.	Receive Notice of Appointment to the Carmel River Advisory Committee
Approved.	3.	Consider Adoption of Resolution No. 2008-14 -- Designate MPWMD Agent for California Disaster Assistance Act Program

On a motion by Director Markey and second by Director Pendergrass, the expenditure was approved unanimously on a vote of 6 – 0. Director Potter was absent. During the public comment period on this item, Craig Anthony, General Manager of the Monterey Division, California American Water (CAW), expressed support for the project.	4.	Consider Expenditure of Funds to Obtain a Current Estimate of the Storage Capacity of Los Padres Reservoir and Authorize the General Manager to Enter into Consultant Agreements for Obtaining Data
Approved.	5.	Consider Expenditure of Funds to Amend Contract with Zone 24X7 for WDD Database Software Development
Director Edwards made a motion that was seconded by Director Markey, to discuss this issue in Closed Session at the November 17, 2008 Board meeting. The motion was approved on a vote of 5 – 1. Directors Edwards, Doyle, Lehman, Markey and Pendergrass voted in favor of the motion. Director Brower was opposed. Director Potter was absent. The following persons addressed the Board during the public comment period on this item. (1) Andy Bell asked the Board to approve the item and refrain from taking the issue to closed session. (2) Larry Hampson stated that District staff should be involved in development of the parameters for any classification study that the Board would authorize.	6.	Consider Approval of Expenditure to Conduct Staff Classification and Compensation Study
Approved.	7.	Consider Expenditure of Budgeted Funds to Contract with DHDettman to Provide Emergency Repairs for the Sleepy Hollow Steelhead Rearing Facility, and other Facility Support Tasks
Approved.	8.	Consider Expenditure of Budgeted Funds for Sleepy Hollow Steelhead Rearing Facility Stand-By Generator Maintenance Service with Quinn Power Systems for Fiscal Year 2008-09
Approved.	9.	Consider Authorization for Expenditure of Budgeted Funds for Installation of Permanent Piping at Phase 1 Aquifer Storage and Recovery Facility
Approved.	10.	Receive and File Report on Fourth Quarter Financial Activity for Fiscal Year 2007-08
Approved.	11.	Consider Adoption of Treasurer's Report for June 2008
	PRESENTATIONS
Henrietta Stern, Project Manager, presented the report. Chair Lehman requested that at subsequent meetings, the report be limited to items that had been completed since the last update. An outline of Ms. Stern’s presentation is on file at the District office and can be viewed at the District’s website.	12.	Water Supply Project Alternatives Update
	GENERAL MANAGER’S REPORT
Darby Fuerst, General 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 on CAW’s compliance with SWRCB Order 95-10 and the Seaside Basin Decision in Water Year 2008. He reported that for the period of October 1, 2007 through September 30, 2008, CAW production from the Carmel River was 565 acre-feet under the production limit established as a result of State Water Resources Control Board (SWRCB) Order 95-10. The actual limit of 11,285 acre-feet per year was reduced to 11,225 acre-feet to reflect the 60 acre-feet that was recovered from the District’s Aquifer Storage and Recovery Project (ASR). During the same time period, production from the Coastal Subareas of the Seaside Basin was 235 acre-feet under the production limit established as a result of the Seaside Groundwater Basin Adjudication. Production from the Laguna Seca Subarea was 188 acre-feet over the production limit. The adjudication decision allows CAW to combine its production from all subareas within the Seaside Groundwater Basin. Consequently, CAW’s production from all subareas within the Seaside Groundwater Basin was 47 acre-feet under the adjudication limit.	13.	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
District Counsel Laredo reported that he updated the Board on items D, H, I and J, but no reportable action was taken. The Board also discussed item 5, but no reportable action was taken.	14.	Report on 5:30 PM 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.	Application of California American Water to the California Public Utilities Commission to Authorize Costs for the Long-Term Water Supply to be Transferred to a Balancing Account and a Requirement for Annual Review of that Account (Application No. 08-04-019).
		G.	Application of California-American Water Company to the California Public utilities Commission for an Authorized Cost of Capital for Utility Operations for 2009 (Application No. 08-05-003)
		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.	Conference with Legal Counsel – Threatened Litigation (Gov. Code 54956.9(b)) Sierra Club v California American Water (16 U.S.C §1538)
		5.	Public Employees Performance Evaluation (Gov. Code 54957) -- General Manager

	DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS)
Chair Lehman reported that she attended the October 1, 2008 meetings of the Water For Monterey County Coalition and the Seaside Basin Watermaster. She announced that she would also attend the October 21, 2008 meeting of the Monterey County Special Districts Association.	15.	Oral Report on Activities of County, Cities, Other Agencies/Committees/ Associations
	PUBLIC HEARINGS
On a motion by Director Brower and second of Director Edwards, draft Ordinance No. 137 was referred for first reading on November 17, 2008. The motion was adopted unanimously on a vote of 6 – 0. Directors Brower, Doyle, Edwards, Lehman, Markey and Pendergrass voted in favor of the motion. Director Potter was absent. The Board also requested that the Water Demand Committee review the ordinance prior to the next Board meeting. In addition, the Policy and Technical Advisory committees should conduct a joint meeting on November 4, 2008 to review the ordinance and develop a recommendation for the Board. The following persons addressed the Board during the public hearing on this item. (1) Lloyd Lowrey, of Noland Hamerly Etienne and Hoss, representing the Hidden Hills Homeowners Association, requested that the first reading be continued for one month so that he could confer with District Counsel on suggested changes outlined in his letter of September 29, 2008 (on file at the District office). (2) Sheri Damon of Lombardo and Gilles, representing the Bishop Water Company, requested that the first reading be continued to the November Board meeting. (3) Nelson Vega requested that the first reading be continued for one month, to allow the public additional time to review the ordinance. (4) Craig Anthony, CAW, responded to questions from the Board. He noted that it would be a disincentive for persons with outdoor irrigation meters, if outdoor watering were to be banned during Stage 4 of the Expanded Conservation and Standby Rationing Program.	16.	Consider First Reading of Ordinance No. 137 -- Amend Regulation XV, Expanded Water Conservation and Standby Rationing Plan
	ACTION ITEMS
Director Brower offered a motion to direct staff to work with the consultant on development of a scope of work, cost and timeline for the next phase of technical and environmental studies, with a focus on the Bunker and Stilwell sites, for presentation at the November 17, 2008 Board meeting. The motion was seconded by Director Lehman. Director Brower amended the motion to state that: (1) the scope of work should be presented at the December Board meeting, and (2) the Legislative Committee should meet and develop a plan to confer with agencies that have jurisdiction over land or resources that would be needed to accomplish the project. The amendment was seconded by Director Lehman. The amended motion was approved unanimously on a vote of 6 – 0. Directors Brower, Doyle, Edwards, Lehman, Markey and Pendergrass voted in support of the motion. Director Potter was absent. During the public comment period on this item, George Riley addressed the Board. He requested that the cost of the project be recovered through the Public Utilities Commission rate setting process.	17.	Receive Consultants' Report on MPWMD 95-10 Desalination Project
Director Brower offered a motion that was seconded by Director Edwards, to prioritize coordination with CAW on increasing storage capacity in Los Padres Reservoir with an emphasis on increasing the height of Los Padres Dam. The motion was approved unanimously on a vote of 6 – 0. Directors Brower, Doyle, Edwards, Lehman, Markey and Pendergrass voted in favor of the motion. Director Potter was absent. George Riley addressed the Board during the public comment period on this item. He noted that the Division of Ratepayer Advocates had criticized CAW for not addressing siltation at San Clemente Reservoir. He stated that it is time to fund efforts to remove silt from the Carmel River reservoirs.	18.	Consider Request from Director Brower to Prioritize Coordination with California American Water on Increasing the Height of the Los Padres Dam
There was no discussion of the Informational Items/Staff Reports.	INFORMATIONAL ITEMS/STAFF REPORTS
	19.	Letters Received
	20.	Committee Reports
	21.	Strategic Plan Update
	22.	Carmel River Fishery Report for September 2008
	23.	Water Conservation Program Report
	24.	Monthly Allocation Report
	25.	Monthly California American Water Production Report
	26.	Monthly Water Supply Status Report
	27.	Quarterly Water Supply Project Status Report
	28.	Quarterly Irrigation Program and Riparian Projects Report
	29.	Quarterly Carmel River Erosion Protection and Restoration Projects Report
	30.	Quarterly Water Use Credit Transfer Status Report

	31.	Semi-Annual Financial Report on the CAWD/PBCSD Wastewater Reclamation Project
The meeting was adjourned at 10:30 PM.	ADJOURNMENT

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Darby Fuerst, Secretary to the Board

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