EXHIBIT 1-A
DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District June 15, 2009
The meeting was called to order at 7:00 PM in the District Conference Room.	CALL TO ORDER/ROLL CALL
Directors Present: Kristi Markey, Chair -- Division 3 Regina Doyle, Vice Chair – Division 4 Judi Lehman – Division 2 Bob Brower – Division 5 David Pendergrass – Mayoral Representative David Potter – Monterey County Board of Supervisors (arrived at 7:35 PM) Directors Absent: Alvin Edwards – Division 1 General Manager present: Darby Fuerst District Counsel present: David C. Laredo
The assembly recited the Pledge of Allegiance.	PLEDGE OF ALLEGIANCE
No comments.	ORAL COMMUNICATIONS
Director Lehman made a motion that was seconded by Director Doyle, to pull item 2 for separate consideration and to approve the remainder of the Consent Calendar. The motion was approved unanimously on a vote of 5 – 0. Directors Brower, Doyle, Lehman, Markey and Pendergrass voted in favor of the motion. Directors Edwards and Potter were absent.	CONSENT CALENDAR
Approved.	1.	Consider Adoption of Minutes of the May 20, 2009 Special Board Meeting, May 21, 2009 Regular Board Meeting and June 1, 2009 Special Meeting/Board Workshop
On a motion by Director Lehman and second of Director Doyle, the Findings, Conclusions and Decision were adopted without modifications on a vote of 4 – 1. Directors Brower, Doyle, Lehman and Markey voted in favor of the motion. Director Pendergrass was opposed. Directors Edwards and Potter were absent.	2.	Adoption of Findings, Conclusions and Decision for the Hearing on Apparent Insufficient Physical Supplies to Serve Ryan Ranch Water Distribution System
Approved.	3.	Consider Designation of Method for Resolving Tie Votes for Elections in Voter Divisions 1 through 5

Approved.	4.	Consider Adoption of Resolution No 2009-05 Expressing Support for the Nomination of Judi Lehman to the ACWA Region 5 Board of Directors
Approved.	5.	Authorize Expenditure of Budgeted Funds to Contract for Limited-Term Positions
Approved.	6.	Consider Expenditure of Funds to Contract for Professional Services to Evaluate Economic and Cost Allocation Issues Associated with the Proposed Coastal Water and Regional Water Supply Projects
Approved.	7.	Consider Expenditure of Budgeted Funds to Amend Contract with Golden State Planning and Environmental Consulting to Assist with Water Distribution System Permit Program
Approved.	8.	Consider Expenditure of Budgeted Funds to Amend Contract with Pueblo Water Resources to Provide Hydrogeologic Review for Water Distribution System Permits
Approved.	9.	Consider Expenditure of Budgeted Funds for Purchase of Positive-Action Shut Off Nozzles
Approved.	10.	Authorize Expenditure of Contingency Funds for Amendment to Rebate Database Programming
Approved.	11.	Consider Approval of 2009 Annual Memorandum of Agreement for Releases from San Clemente Reservoir among California American Water, California Department of Fish and Game, and Monterey Peninsula Water Management District
Approved.	12.	Consider Adoption of Resolution 2009-06 Establishing Article XIII(B) Appropriations Limit for Fiscal Year 2009-10
Approved.	13.	Receive and File Third Quarter Financial Activity for Fiscal Year 2008-09

Approved.	14.	Consider Adoption of Treasurer's Report for April 2009
	PRESENTATIONS
No report. Mr. Anthony was not in attendance.	15.	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.	16.	Water Supply Project Alternatives Update
Stephanie Pintar, Water Demand Manager, presented the report. An outline of Ms. Pintar’s report is on file at the District office and can be viewed at the District’s website.	17.	Water Conservation Program Report
	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 June 10, 2009, California American Water (Cal-Am) production from the Carmel River was 329 acre-feet under the production target of 7,062 acre-feet established as a result of State Water Resources Control Board (SWRCB) Order 95-10. Production from the Coastal Subareas of the Seaside Basin was 364 acre-feet under the production target of 1,724 acre-feet established by the Seaside Groundwater Basin Adjudication. Production from the Laguna Seca Subarea was 146 acre-feet over the production target of 153 acre-feet established by the Seaside Groundwater Basin Adjudication. Therefore, total Cal-Am production from the Seaside Basin was 218 AF under the adjudication target of 1,877 AF. Mr. Fuerst noted that Laguna Seca Subarea and Monterey Peninsula Water Resource System production targets have been adjusted to account for the 10% reduction in Operating Yield from the Seaside Basin that was approved by the Watermaster on May 6, 2009. Mr. Fuerst reported that due to trace amounts of rain received in June, fish rescues in the Carmel River might be deferred until late June.	18.	Status Report on California American Water Compliance with State Water Resources Control Board Order 95-10 and Seaside Groundwater Basin Adjudication Decision
Director Potter arrived at 7:35 PM, prior to Board receipt of the Attorney’s Report.
	ATTORNEY’S REPORT
District Counsel Laredo introduced Eric Russell, who was working as an intern/law clerk in his office. Mr. Laredo proceeded to report that on June 1 and June 15, 2009 the Board considered item 4. The labor negotiators provided updates; no reportable action was taken by the Board. At the June 15, 2009 meeting, the Board discussed items A through D. No reportable action was taken. District Counsel provided a status report on item E. No reportable action was taken. On a vote of 5 – 0 (Directors Edwards and Potter were absent), the Board added Item 6 to the Closed Session discussion, concerning a letter dated June 15, 2009 from California American Water, threatening a Petition for Writ of Mandate in the Board’s decision concerning the Monterey Bay Shores Ecoresort. No reportable action was taken.	19.	Report on June 1, 2009 and June 15, 2009 Board Closed Sessions
		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. 09-04-015 – 2008 Coastal Water Project Construction Costs
		C.	Application of California –American Water Company for an Order Authorizing a Special Conservation Program and Modifications to its Rate Design in its Monterey District, and Authorization to Increase its Rates for Water Service in its Monterey District – Conservation Program (Applications No. 07-12-010, 08-02-018)
		D.	Application of California –American Water Company for Authorization to Increase its Revenues for Water Service in its Monterey District in years 2009; 2010; and 2011 General Rate Case (Application No. 08-01-027)
		E.	SWRCB Cease and Desist Order WR 2008-00XX-DWR
		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.	Conference with Legal Counsel – Existing Litigation (Gov. Code 54956.9 (a))
			California American Water v City of Seaside et al. (Case No.: M 66343)

		6.	Conference with Legal Counsel – Anticipated Litigation Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: One case
	DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS)
Director Doyle reported that she attended the Monterey County Business Council’s May meeting of the Greywater Roundtable. Director Brower stated that he provided an update on the District’s activities to the Carmel Improvement Committee.	20.	Oral Report on Activities of County, Cities, Other Agencies/Committees/ Associations
	PUBLIC HEARINGS
Director Potter offered a motion, that was seconded by Director Brower, to approve the variance with conditions and findings presented in the staff report, including a condition presented at the meeting that requires installation of a Smart Irrigation System with rain sensor to irrigate landscaping. In addition, the applicant would be required to report on-site water use to the District annually, or more frequently if requested The motion was approved unanimously on a vote of 6 – 0. Director Edwards was absent. Linda Lee, Director of Development for the Carmel Foundation addressed the Board during the Public Hearing. She noted that the property is deed restricted to remain low-income housing for 50 years. She agreed to provide water use records annually to the District, and that high efficiency water fixtures would be installed.	21.	Consider Request for Variance from Individual Water Meter Requirements (District Rule 23) Carmel Foundation (APN 010-136-013)
On a motion by Director Pendergrass and second of Director Doyle, the July through September 2009 Quarterly Water Supply Strategy and Budget was adopted unanimously on a vote of 6 – 0. Director Edwards was absent. No comments were directed to the Board during the public hearing on this item.	22.	Consider Adoption of July through September 2009 Quarterly Water Supply Strategy and Budget
Director Lehman offered a motion that was seconded by Director Markey to continue the 1.2% water use fee during FY 2009-10 to fund ASR and related water supply projects. The motion was approved unanimously on a vote of 6 – 0. Director Edwards was absent. No comments were directed to the Board during the public hearing on this item.	23	Public Hearing to Review District Aquifer Storage Recovery (ASR) Fees
On a motion by Director Potter and second of Director Doyle, the Fiscal Year 2009-2010 MPWMD Budget and Resolution 2009-07 were adopted unanimously by the Board on a vote of 6 – 0. Director Edwards was absent. No comments were directed to the Board during the public hearing on this item.	24	Consider Adoption of Proposed Fiscal Year 2009-2010 MPWMD Budget and Resolution 2009-07
	ACTION ITEMS
Director Brower offered a motion that was seconded by Director Potter to adopt Resolution 2009-08, modifying Rule 162. The motion was approved unanimously on a vote of 6 – 0. Director Edwards was absent. No comments were directed to the Board during the public comment period on this item.	25.	Consider Adoption of Resolution 2009-08 Modifying Rule 162 -- Regulatory Water Production Targets for California American Water Systems
On a motion by Director Potter and second by Director Doyle, the Board voted unanimously to: (1) receive the report; and (2) send a letter to Cal-Am asking if the District would be allowed access to the Los Padres Dam in order to construct modifications to the dam. The motion was approved on a vote of 6 – 0. Director Edwards was absent. No comments were directed to the Board during the public comment period on this item.	26.	Receive Report on the Potential for Increasing the Storage Capacity of Los Padres Reservoir
There was no discussion of the Informational Items/Staff Reports.	INFORMATIONAL ITEMS/STAFF REPORTS
	27.	Letters Received
	28.	Committee Reports
	29.	Carmel River Fishery Report for May 2009
	30.	Water Conservation Program Report
	31.	Monthly Allocation Report
	32.	Monthly California American Water Production Report
	33.	Monthly Water Supply Status Report
The meeting was adjourned at 8:35 PM.	ADJOURNMENT

___________________________________

Darby Fuerst, Secretary to the Board

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