EXHIBIT 1-B
DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District November 16, 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 Alvin Edwards – Division 1 Judi Lehman – Division 2 Bob Brower – Division 5 David Pendergrass – Mayoral Representative David Potter – Monterey County Board of Supervisors Directors Absent: None General Manager present: Darby Fuerst District Counsel present: David C. Laredo
The assembly recited the Pledge of Allegiance.	PLEDGE OF ALLEGIANCE
No comments were directed to the Board during Oral Communications.	ORAL COMMUNICATIONS
On a motion by Director Pendergrass and second of Director Potter, the Consent Calendar was adopted except for item 4 that was pulled for separate consideration. The motion was approved on a vote of 7 – 0.	CONSENT CALENDAR
Adopted	1.	Consider Adoption of Minutes of the October 19, 2009 Regular Board Meeting
Adopted	2.	Consider Adoption of Resolution Expressing Appreciation to Susan Rogers for Service on the Carmel River Advisory Committee
Adopted	3.	Consider Adoption of Resolution Expressing Appreciation to Richard H. Rosenthal for Service on the Carmel River Advisory Committee
Director Lehman offered a motion that was seconded by Director Edwards, to adopt the amended version of the Sick Leave Provisions of Influenza Pandemic Preparedness Policy that were submitted by staff at the meeting. The motion was adopted unanimously on a vote of 7 – 0.	4.	Consider Approval of Sick Leave Provisions of Influenza Pandemic Preparedness Policy
Adopted	5.	Consider Expenditure of Budgeted Funds to Amend Contract with Pueblo Water Resources for FY 2009-10 Aquifer Storage and Recovery Project Technical Assistance
Adopted	6.	Consider Expenditure of Funds for Amendment to Database Programming Contract to Accommodate Changes for Ordinance No. 140 & 141 Implementation, Functionality Improvements, and Database Support and Maintenance
Adopted	7.	Consider Expenditure of Budgeted Funds for Landscape Irrigation Audits/Budgets (Rule 172) and Authorize the General Manager to Amend Contract with Spot Water Management for Auditing Services
	PRESENTATIONS
Andy Bell presented a certificate of appreciation to Susan Rogers that was signed by members of the Carmel River Advisory Committee. Mr. Rosenthal was not present to receive his certificate. Chair Markey presented a resolution of appreciation to Susan Rogers that was signed by the Board of Directors. Mr. Rosenthal was not present to receive his resolution. Ms. Rogers thanked the Board and Committee for the recognition. She encouraged members of the public to attend the Committee meetings as a way to learn about the Carmel River and the District’s activities.	8.	Present Resolutions of Appreciation to Susan Rogers and Richard H. Rosenthal for Service on the Carmel River Advisory Committee
General Manager Fuerst announced that the following staff members were recognized for longevity, but were unable to attend the meeting: Tom Lindberg, Associate Hydrologist, 25 years of service; and Michael Boles, Conservation Representative 1, 5 years of service.	9.	Recognize MPWMD Employees for Length of Service to the District
Mr. Anthony reported that water use for the twelve hotels in the main California American Water system with the highest water consumption has dropped by 18 percent since September 30, 2008. Installation of a transmission pipeline through Del Rey Oaks to facilitate full implementation of the Phase 1Aquifer Storage and Recovery Project should be completed by December 6, 2009. Mr. Anthony advised that at the December 14, 2009 Board meeting, he will present a report on actions taken by California American Water (Cal-Am) to reduce unaccounted for water losses.	10.	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.	11.	Water Supply Project Alternatives Update
Stephanie Pintar, Water Demand Manager, presented the report. An outline of Ms. Pintar’s presentation is on file at the District office and can be viewed at the District’s website.	12.	Water Conservation Program Report
	GENERAL MANAGER’S REPORT
General Manager Fuerst reported that the Monterey County Board of Supervisors appointed Alvin Edwards to serve another term as representative to Division 1, as Mr. Edwards had filed unopposed for candidacy. Judi Lehman was elected to serve another term as representative to Division 2.	13.	Report on Outcome of November 3, 2009 Election
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 9, 2009, Cal-Am production from the Carmel River Basin was 65 acre-feet under the production target of 1,085 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 197 acre-feet under the production target of 540 acre-feet established by the Seaside Groundwater Basin Adjudication. Production from the Laguna Seca Subarea was 21 acre-feet over the production target of 32 acre-feet established by the Seaside Groundwater Basin Adjudication. Therefore, total Cal-Am production from the Seaside Basin was 176 AF under the adjudication target of 572 AF.	14.	Status Report on California American Water Compliance with State Water Resources Control Board Order 95-10 and Seaside Groundwater Basin Adjudication Decision
Mr. Fuerst reported that for the Water Year ending September 30, 2009, water production in the Hidden Hills Water Distribution System was 210 acre-feet, which was below the annual limit of 229 acre-feet. Due to conservation measures taken by residents in the Hidden Hills area, and improvements to the system made by Cal-Am, water production was below the previous year level of 227 acre-feet. If water production is maintained below 0.482 acre-feet per connection, the water permit moratorium in Hidden Hills could be lifted.	15.	Status Report on Hidden Hills Water Distribution System
	ATTORNEY’S REPORT
District Counsel Laredo reported that at the October 19, 2009 Closed Session of the Board, staff was directed to file a challenge to State Water Resources Control Board Order WR 2009-0060, specifically to file a petition for writ of mandate and declaratory relief within 24 hours of issuance of the Final Cease and Desist Order. The vote was 4 in favor (Edwards, Lehman, Brower and Pendergrass) and 1 opposed (Markey), with two Directors absent (Doyle and Potter). At the November 16, 2009 Closed Session, the Board discussed matters listed on the agenda and provided direction to staff, with no reportable action taken on items A, B, C, E, G, H, I and 4. In the matter of items D and F, the Board directed Counsel to oppose Cal-Am’s request for a moratorium. 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.	16.	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 PUC Application No. 09-XX-XXX –Mitigation Cost Reimbursement
		C.	Seaside v. California American Water (MBSE/Cal-Am Motion) (Appellate Court #HO34335; Superior Court Case No. M 66343)
		D.	MPWMD v. State Water Resources Control Board; Superior Court Case No. M102101
		E.	California American Water v. State Water Resources Control Board, Superior Court Case No. M102097
		F.	California American Water Advice Letter No. 809 (Request for Moratorium) Before the California Public Utilities Commission
		G.	Sierra Club, Carmel River Steelhead Association v. California American Water, Gary Locke, Department Of Commerce, Dr. Jane Lubchenko (NOAA), and Rodney McInnis (NMFS), (U.S. District Court, Northern District. Case No. 09 2870)
		H.	California American Water v. MPWMD (SWRCB/SNG) (Superior Court Case No. M 99622)
		I.	California American Water v. MPWMD (Ryan Ranch) (Superior Court Case No. M 101255)
	4.	Conference with Labor Negotiators (Gov. Code 54957.6)
		Agency Designated Representatives: Rick Dickhaut, Cynthia Schmidlin and Darby Fuerst
		Employee Organization: General Staff and Management Bargaining Unites Represented by United Public Employees of California/LIUNA, Local 792
	5.	Adjourn to 7 PM Session
	DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS)
Director Edwards thanked Susan Rogers for her service to the Carmel River Advisory Committee. He announced that he is searching for another appointee to the Committee. Director Lehman announced that she had viewed the movie, Blue Gold. She encouraged members of the public to see the film. She suggested that the District organize a public viewing of the film, possibly in cooperation with another special district or jurisdiction.	17.	Oral Report on Activities of County, Cities, Other Agencies/Committees/ Associations
	PUBLIC HEARINGS
Director Pendergrass made a motion to adopt Ordinance No. 140. The motion was seconded by Director Potter and adopted on a unanimous vote of 7 – 0. The following comments were received during the public hearing on this item. (1) Heidi Niggemeyer, Regional Program Manager for the Monterey Regional Water Pollution Control Agency Stormwater Program, expressed concern about the environmental damage caused by installation of impervious surfaces such as synthetic turf. She warned that stormwater quality regulations may be modified to prohibit the installation of impervious surfaces. She noted that an expert in the field, Eric Bernston, may be contacting the District regarding this issue. She recommended that the District should provide rebates for installation of natural landscapes, instead of synthetic turf. (2) George Riley stated that the cost of the program would be approximately $1,300 per acre foot, based on a savings of 230 acre-feet of water.	18.	Consider Second Reading and Adoption of Ordinance No. 140 Amending the Rebate Program Amounts, Deleting 1.6 Gallon Per Flush Toilets from the Rebate Program, and Adding Rebates for Lawn Removal, Synthetic Turf Installation, and Other Commercial/Industrial/Institutional Retrofits
Director Doyle offered a motion that was seconded by Director Brower, to adopt Ordinance No. 141. 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.	19.	Consider Second Reading and Adoption of Ordinance No. 141 Amending and Revising Regulation XIV -- Water Conservation--To Update and Clarify Language and Add Non-Residential and Landscape Water Efficiency Requirements
	ACTION ITEMS
On a motion by Director Lehman and second of Director Potter, Item 20 was deferred to the December 14, 2009 Board meeting. George Riley addressed the Board during the public comment period on this item. He stated that the cost to replace leaking pipes in the Cal-Am system should be compared with the cost of a desalination project, to determine which option for increasing the water supply is more cost effective for the rate payers.	20.	Discussion of California American Water Unaccounted For Water Losses
Director Pendergrass offered a motion that was seconded by Director Brower, that the Board take no action to modify District rules related to the Expanded Water Conservation and Standby Rationing Plan. The motion failed on a vote of 3 to 4. Directors Pendergrass, Brower and Edwards voted in favor of the motion. Directors Doyle, Lehman, Markey and Potter were opposed. Director Markey offered a motion that was seconded by Director Doyle to bring an ordinance forward for Board consideration that would modify the Expanded Water Conservation and Standby Rationing Plan to delay implementation of Stage 5 and instead, enable Stage 3 conservation regulations to be in effect. The motion was approved on a vote of 4 – 3. Directors Markey, Doyle, Lehman and Potter voted in favor of the motion. Directors Brower, Edwards and Pendergrass were opposed. The following comments were received during the public comment period on this item. (1) Craig Anthony, California American Water, expressed support for modification of the District’s rules to implement Stage 3 water conservation regulations. He explained that if Stage 3 is implemented, Cal-Am would assess a rate increase on residential water users in tiers 4 and 5 that have extraordinarily high water use (average use 32 units per month), that is most often attributed to landscape irrigation. (2) George Riley expressed support for implementation of Stage 3 as a means to reduce water consumption by the 20 percent of Cal-Am customers that consume 46 percent of the available water.	21.	Status Report/Overview of State Water Resources Control Board October 20, 2009 Cease and Desist Order WR 2009-0060
There was no discussion of the Informational Items/Staff Reports.	INFORMATIONAL ITEMS/STAFF REPORTS
	22.	Letters Received
	23.	Committee Reports
	24.	Carmel River Fishery Report for October 2009
	25.	Water Conservation Program Report
	26.	Monthly Allocation Report
	27.	Monthly California American Water Production Report
	28.	Monthly Water Supply Status Report
The meeting was adjourned at 9:10 PM.	ADJOURN

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Darby Fuerst, Secretary to the Board

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