EXHIBIT 1-A
DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District December 8, 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 – Participated by telephone from Detroit, Michigan 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
George Riley, representing Citizens for Public Water, addressed the Board. He asked that the Board review the record of its October 2000 denial of a request to issue a water distribution system permit for the Monterey Bay Shores Resort.	ORAL COMMUNICATIONS
On a motion by Director Pendergrass and second by Director Brower, the Consent Calendar items were approved unanimously on a roll-call vote of 6 – 1. Directors Brower, Doyle, Edwards, Lehman, Markey and Pendergrass voted in favor of the motion. Director Potter was absent	CONSENT CALENDAR
Approved.	1.	Consider Adoption of Minutes of the October 30, 2008 Special Meeting of the Board and the November 17, 2008 Regular Board Meet
Approved.	2.	Consider Appointment of Darby Fuerst to the Position of General Manager and Approval of Employment Agreement
Approved.	3.	Consider Expenditure of Budgeted Funds to Purchase Water Conservation Publications and Informational Handouts
Approved.	4.	Consider Approval of Human Resources Analyst Reclassification
Approved.	5.	Adopt Board Meeting Schedule for 2009
Approved.	6.	Consider Adoption of Treasurer's Report for July 2008
	PRESENTATIONS
Bruce Broderick of Being Water made a presentation to the Board on BRAC Systems Graywater Recycling Systems. He described the benefits of the BRAC graywater recycling system and how it operates. He responded to questions from the Board. An outline of Mr. Broderick’s presentation is on file at the District office and can be viewed at the District’s website.	7.	Presentation from Bruce Broderick and Terry Black of Being Water Regarding Greywater Technology for Flushing Toilets and Underground Irrigation
Mr. Anthony reported that California American Water (CAW) continues to replace existing water meters with new radio-read meters and that 6,000 should be installed by the end of December 2008. CAW is also checking on properties that have a water meter, but have registered zero consumption. They have found that these meters are either located on vacant lots, at buildings that are vacant, or the meter is not working correctly. Mr. Anthony noted that CAW continues to work on upgrading infrastructure to facilitate full implementation of the District’s Aquifer Storage and Recovery (ASR) Project. When the new pipeline is placed along General Jim Moore Blvd., injection should increase from between 3,000 to 6,000 gallons per minute. CAW continues to identify additional sites for installation of ASR wells in the future. Director Markey asked that CAW provide a written explanation as to why the company did not advise the District early in the design process that the CAW infrastructure would not support full implementation of the ASR Project.	8.	Monthly Report from California American Water General Manager, Craig Anthony
Henrietta Stern, Project Manager, presented the report. An outline of Ms. Stern’s 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, 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 that for the period of October 1, 2008 through November 30, 2008, CAW production from the Carmel River was 51 acre-feet under the production limit of 1,552 acre-feet established as a result of State Water Resources Control Board Order 95-10. During the same time period, production from the Coastal Subareas of the Seaside Basin was 112 acre-feet under the production limit of 907 acre-feet established as a result of the Seaside Groundwater Basin Adjudication. Production from the Coastal Subareas was 145 acre-feet under the adjudication limit of 850 acre-feet. Production from the Laguna Seca Subarea was 33 acre-feet over the production limit of 57 acre-feet.	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
District Counsel Laredo reported that the discussion focused on items 3.B and 3.C. In addition the Board met with labor negotiators regarding item 4 and completed the General Manager’s performance evaluation, as noted under item 5. No reportable action was taken at the closed session.	11.	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 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
		C.	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
		D.	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
		E.	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).
		F.	State Water Resources Control Board Draft Cease and Desist Order WR 2008-00XX-DWR
		G.	MPWMD v. Nick Marotta, Jr., Gerda Marotta, and Does 1-100 -- Monterey County Superior Court Case No. M83498
		H.	MPWMD v. Roy Woods, Woods 1995 Trust, and Does 1-100 -- Monterey County Superior Court Case No. M83499
		4.	Conference with Labor Negotiators (Gov. Code §54957.6)
			Agency Designated Representatives: Rick Dickhaut, Cynthia Schmidlin, Darby Fuerst
			Employee Organization: General Staff and Management Bargaining Units Represented by United Public Employees of California/LIUNA, Local 792
			Unrepresented Employees: Confidential Unit
		5.	Public Employees Performance Evaluation (Gov. Code 54957) – General Manager
	DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS)
Director Lehman reported that at her request, CAW conducted a water audit at her residence. The audit was completed in approximately 45 minutes. She encouraged members of the public to schedule a water audit. Director Edwards announced that General Manager Fuerst has agreed to contract with the District for another year. Director Edwards acknowledged Mr. Fuerst for doing a good job in the position of General Manager.	12.	Oral Report on Activities of County, Cities, Other Agencies/Committees/ Associations
	PUBLIC HEARINGS
On a motion by Director Edwards and second of Director Markey, the ordinance was adopted on second reading with changes suggested by staff. (1) Rule 163.B, the last sentence, the reference to Section E should be changed to Section D. (2) Rule 165,A.2.a, line 2 should read, “(35%) from pre-1995 production (16,208 AFA) in the main CAW system. This shall apply to any Water Distribution System……” (3) Rule 166.A.2.a, line 2 should read “(50%) from pre-1995 production (16,806AFA) in the Main California American Water System. This shall apply to any Water Distribution System …….” (4) Rule 167.A.2.a, line 2 should read, “AFA) in the Main California American Water System. This shall apply to any Water Distribution System….” The motion was approved on a vote of 5 – 1. Directors Doyle, Edwards, Lehman, Markey and Pendergrass voted in favor of the motion. Director Brower was opposed. Director Potter was absent. The following comments were directed to the Board during the public hearing on this item. (1) Ken Holbrook, President of the Pasadera Homeowners Association, asked for an explanation of why property owners in the Laguna Seca area could be facing a moratorium on issuance of water permits, but there is also a possibility that the Monterey Bay Ecoresort would qualify for receipt of a water distribution system permit to supply 90 acre-foot project. He also asked if the adoption of Ordinance No. 136 which preceded a water permit moratorium in Ryan Ranch, was related to proposed Ordinance No. 137. (2) Lloyd Lowrey, Noland Hamerly Etienne and Hoss, representing ratepayers in the Hidden Hills area. He stated that the proposed ordinance did not contain all changes he had requested, but it did represent a thoughtful process. He thanked the Board for allowing the public to participate fully during deliberations on the ordinance. (3) Karen Mack, Pasadera property owner, asked how to proceed with obtaining a water permit before a moratorium on water permits is implemented. (4) Kris Mack, Pasadera property owner, stated that it will be difficult for property owners to know if they should invest in development of plans for a project, because they have no assurance that an application for a water permit will be processed, due to the threat of an impending water permit moratorium.	13.	Consider Second Reading and Adoption of Ordinance No. 137 -- Amend Regulation XV, Expanded Water Conservation and Standby Rationing Plan
On a motion by Director Pendergrass and second of Director Markey, Ordinance No. 138 was adopted unanimously on a roll-call vote of 6 – 0. Directors Brower, Doyle, Edwards, Lehman, Markey and Pendergrass voted in favor of the motion. Director Potter was absent. No comments from the public were directed to the Board during the public hearing on this item.	14.	Consider Second Reading and Adoption of Ordinance 138 -- Re-Authorize a Water User Fee to Fund Aquifer Storage & Recovery Facilities and Related Water Supply Projects
On a motion by Director Markey and second of Director Brower, the January through March 2009 Quarterly Water Supply Strategy and Budget was approved unanimously on a roll–call vote of 6 – 0. Directors Brower, Doyle, Edwards, Lehman, Markey and Pendergrass voted in favor of the motion. Director Potter was absent. No comments from the pubic were directed to the Board during the public hearing on this item.	15.	Consider Adoption of January through March 2009 Quarterly Water Supply Strategy and Budget
	ACTION ITEMS
Director Markey offered a motion to proceed with Alternative 2, to solicit proposals for obtaining permits for and conducting hydrogeologic investigations to determine the potential for a supply of seawater from coastal wells for the 95-10 Project. The scope of work, costs, and schedule that will be presented in January 2009 shall include a list of tasks that could be completed by contractors and District staff. The motion was seconded by Director Lehman and adopted unanimously on a roll-call vote. Directors Brower, Doyle, Edwards, Lehman, Markey and Pendergrass voted in favor of the motion. Director Potter was absent. Dale Hekhuis, former Director and Chair of the MPWMD, recommended that the Board adopt Alternative 2, as outlined in the staff report.	16.	Consider Approval of Scope of Work and Expenditure of Funds for Phase 2 Studies Related to MPWMD 95-10 Desalination Project
Director Lehman offered a motion to elect 2009 Board officers as follows: Chair, Director Kristi Markey; Vice Chair, Director Regina Doyle; Secretary, General Manager Darby Fuerst; Treasurer, Administrative Services Manager Rick Dickhaut. The motion was seconded by Director Pendergrass and adopted unanimously on roll-call vote. Directors Brower, Doyle, Edwards, Lehman, Markey and Pendergrass voted in favor of the motion. Director Potter was absent. No comments were directed to the Board during the public comment period on this item.	17.	Conduct Elections for Board Officers for 2009
There was no discussion of the Informational Items/Staff Reports.	INFORMATIONAL ITEMS/STAFF REPORTS
	18.	Committee Reports
The meeting was adjourned at approximately 8:50 PM.	ADJOURNMENT

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Darby Fuerst, Secretary to the Board

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