EXHIBIT 1-B

DRAFT MINUTES

Joint Meeting of the

Monterey Peninsula Water Management District

and

Monterey Regional Water Pollution Control Agency

Boards of Directors

October 29, 2008

1. Call to Order

The meeting was called to order at 7 PM in the Seaside Community Center.

2. Roll Call

MPWMD Board of 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

Absent: David Potter, Monterey County Board of Supervisors

Present: General Manager: Darby Fuerst

Present: District Counsel: David Laredo

Monterey Regional Water Pollution Control Agency Board of Directors

Present: Joe Russell, Chair – Del Rey Oaks

Mary Anne Cline-Carbone – Sand City

Ramiro Cortez -- Boronda County Sanitation District

Ron Stefani – Castroville Community Services District

Kenneth K. Nishi – Marina Coast Water District

Libby Downing -- Monterey

Louis Calcagno – Monterey County

Chris Orman – Moss Landing County Sanitation District

Dan Cort – Pacific Grove

Gloria De La Rosa – Salinas

Steven Bloomer – Seaside

Present: General Manager: Keith Israel

District Counsel: Robert Wellington

3. Pledge of Allegiance

The assembly recited the Pledge of Allegiance.

4. Introductions

5. Public Comment

No comments were directed to the Boards during the public comment period.

6. Presentation

A. Presentation by MPWMD General Manager, Darby Fuerst on water supply replacement requirements in the Monterey Peninsula area due to State Water Resources Control Board Order 95-10 and the Seaside Basin Adjudication Decision and MPWMD proposed water supply projects.

An outline of Mr. Fuerst’s presentation is on file at the District office and can be viewed on the District’s website. He stated that based on the District’s analysis, 12,500 acre-feet per year of replacement water is needed to meet existing water demands and comply with Order 95-10 and the Seaside Groundwater Basin Adjudication Decision. He described three projects the District is developing: Seaside Basin Phase 1 Aquifer Storage and Recovery that is in operation and is designed to yield of 920 AFY; Seaside Basin Phase 2 ASR Project that is in the planning stage and should yield 1,000 AFY by 2012; and the 95-10 Seawater Desalination Project in the planning stage that could yield 4,000 AFY by 2015.

B. Presentation by MRWPCA General Manager, Keith Israel, on the Seaside Basin Groundwater Replenishment Project and other proposed MRWPCA recycled water projects.

At outline of Mr. Israel’s presentation is on file at the District office and can be viewed on the District’s website. He reviewed the components of the Water For Monterey County regional water program, and identified projects that could be components of the first phase of that program, including the Groundwater Replenishment Project (GWR). He described the process and timeline for development of the GWR, and stated that it could be completed by 2013. Mr. Israel described the current status of funding for the GWR. He explained that the MPWMD and MRWPCA could consider collaboration on: (1) funding GWR engineering studies; (2) MPWMD use of an outfall for the proposed 95-10 Desalination Project that is owned by the MRWPCA; and (3) other roles and responsibilities.

7. Action

Alvin Edwards made a motion that staff of the MRWPCA and MPWMD place on their next Board meeting agendas, an item requesting that each Board of Directors consider appointing members to a joint committee that would cooperate on development of an MOU specifying agency roles and responsibilities on development of proposed water supply projects. That MOU would subsequently be presented to both Boards for consideration. The motion was seconded by Director Lehman and approved unanimously. It was suggested that each agency’s subcommittee members could develop components of an MOU, and the joint committee could collaborate on preparation of one MOU that would be presented to both Boards for consideration.

During the discussion, Mr. Fuerst and Mr. Israel responded to questions from the Directors. They were asked to explain a discrepancy between the two presentations. Slide 3 of Mr. Israel’s presentation listed ASR as providing 1,300 AF of water; and slide 9 of Mr. Fuerst’s presentation showed that ASR could provide 920 AFY for Phase 1 and 1,000 AFY for Phase 2. The response was that the 1,300 AF on slide 3 was submitted by MRWPCA for inclusion in California American Water’s EIR on the Coastal Water Project, and that the number could be modified to reflect the MPWMD estimates. The 920 AF shown on slide 9 is anticipated yield from the MPWMD Seaside Basin ASR Project currently in operation, and the 1,000 acre-feet is estimated yield from Phase 2 of the ASR Project that is currently in the planning stage. The 12,500 acre-feet of replenishment water could be satisfied by development of the MPWMD projects (including seawater desalination), the MRWPCA GRP, and/or other projects outlined in the Water for Monterey County regional plan.

The committee also discussed the importance of focusing efforts on projects that could be developed quickly for a minimum cost, such as enabling opportunities for establishment of greywater systems and installation of cisterns. An important step would be to work with the Monterey County Health Department on enactment of regulations that would allow the use of greywater for landscape irrigation. Mr. Fuerst noted that the MPWMD Board of Directors has established as a priority the development of alternative water supplies such as greywater systems and cisterns.

During the public comment period on this item, George Riley addressed the Directors. He encouraged the agencies represented to move forward on development of the MOU.

8. Board Member Comments

All comments were presented under Item 7.

9. Adjournment

The meeting was adjourned at 8:45 PM.

___________________________________

Darby Fuerst, Secretary to the Board

U:\staff\word\boardpacket\2008\2008boardpackets\20081117\ConsentCal\01\item1_exh1b.doc