EXHIBIT 1-A
DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District March 15, 2010
The meeting was called to order at 7:03 PM in the District Conference Room.	CALL TO ORDER/ROLL CALL
Directors Present: Regina Doyle, Chair -- Division 4 Bob Brower, Vice Chair – Division 5 Alvin Edwards – Division 1 Judi Lehman – Division 2 Kristi Markey – Division 3 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. On a motion by Director Lehman and second by Director Edwards, the Board voted unanimously to convene in Closed Session upon adjournment of the 7 PM session. The topic of discussion would be Application No. 04-09-019 filed by California American Water Company (CAW) to the California Public Utilities Commission (PUC) for a Certificate of Public Convenience and Necessity to construct and operate the CAW Coastal Water Project and recover past, present and future costs in rates. The motion was adopted on a vote of 6 – 0. Directors Brower, Doyle, Edwards, Lehman, Markey and Pendergrass. Director Potter was absent.	PLEDGE OF ALLEGIANCE
The following comments were directed to the Board during Oral Communications. (1) Dr. Carol Reeb, Marine Biologist and Fisheries Geneticist with Stanford University and Hopkins Marine Station, expressed concern about the adverse environmental impacts of brine disposal that could result from operation of the desalination project proposed for Phase 1of the Monterey Regional Water Supply Project. She requested that the local scientific community be involved in investigating how desalination would affect the marine environment. (2) Colonel Darcy Brewer, Garrison Commander, Presidio of Monterey, stated that $164 million worth of projects were planned to be constructed at the Presidio. He urged the Board to support issuance of water permits needed to complete these projects.	ORAL COMMUNICATIONS
	CONSENT CALENDAR
On a motion by Director Markey and second of Director Edwards, the Board approved the Consent Calendar with the exception of item 2 that was continued to the March 25, 2010 Board Meeting, and item 6 that was pulled for separate consideration. The motion was adopted unanimously on a vote of 6 – 0. Director Potter was absent.	1.	Consider Adoption of Minutes of the February 25, 2010 Regular Board Meeting
Continued to the March 25, 2010 Special Board meeting.	2.	Consider Approval of Response Letter to 2009 Monterey County Grand Jury Report
Approved.	3.	Consider Adoption of Resolution 2010-02 Declaring March 15-21, 2010 to be Fix a Leak Week
Approved. Carol Reeb addressed the Board and suggested that the District should fund research into the effects of the marine environment on migrating steelhead.	4.	Consider Adoption of Resolution 2010-03 In Support of Filing Applications to the California Department of Fish and Game Fisheries Restoration Grant Program
Approved.	5.	Receive Phase 1 Aquifer Storage and Recovery Project Water Year 2009 Summary Report
On a motion by Director Brower and second of Director Edwards, the Board voted to continue this item for 30 days. The motion was adopted on a vote of 4 – 2. Directors Brower, Doyle, Edwards and Pendergrass voted in favor of the motion. Directors Lehman and Markey were opposed. Director Potter was absent.	6.	Consider Renewal of a $1.5 Million Line of Credit with Bank of America to Fund Development of Water Supply Projects
Approved.	7.	Consider Adoption of Budgeted Funds to Contract with Zone 24x7 for Water Demand Database Improvements and Maintenance
Approved.	8.	Consider Expenditure of Budgeted Funds to Sponsor Cistern Workshops by the American Rainwater Catchment Systems Association
Approved.	9.	Consider Expenditure of Budgeted Funds to Contract with Ventana Wildlife Society for Carmel River Avian Habitat Monitoring
Approved.	10.	Consider Expenditure of Budgeted Funds to Conduct a Test Installation of a Sonic Fish Counting Device in the Lower Carmel River to Enumerate the Steelhead Run
Approved.	11.	Consider Approval of Second Quarter Fiscal Year 2009-2010 Investment Report
Approved.	12.	Consider Adoption of Treasurer's Report for December 2009
Approved.	13.	Consider Adoption of Treasurer's Report for January 2010
	PRESENTATIONS
Craig Anthony presented a report that is on file at the District office and can be viewed at the District’s website. He reviewed water rates that became effective on February 1, 2010. He reported that in August 2009, 12 percent of water used within the CAW system was subject to Tier 5 rates. In February 2010, 10 percent of the water used was subject to Tier 5 rates. He also advised the Board that between March 2009 and February 2010, Non-Revenue Water comprised 9.7% of water used in the main CAW system. Mr. Anthony reported that by early April 2010, CAW should be delivering water from the Sand City Desalination project to its customers. In response to a question from the Board, Joe Oliver, Water Resources Manager, stated that CAW and the District were working diligently to ensure that a bypass pipeline is installed to prevent any halt in operation of the Aquifer Storage and Recovery Project during realignment of General Jim Moore Blvd.	14.	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.	15.	Update on Development of Water Supply Project Alternatives Including Recycled Water
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.	16.	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, 2009 through March 7, 2010, Cal-Am production from the Carmel River Basin was 802 acre-feet under the production target of 4,388 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 130 acre-feet under the production target of 1,050 acre-feet established by the Seaside Groundwater Basin Adjudication. Production from the Laguna Seca Subarea was 71 acre-feet over the production target of 77 acre-feet established by the Seaside Groundwater Basin Adjudication. Therefore, total CAW production from the Seaside Basin was 59 AF under the adjudication target of 1,127 AF. Rainfall over the same time period was recorded as 22 inches, which is above the average of 18.9 inches.	17.	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
The Board did not conduct a 5 PM Closed Session. However, Mr. Laredo provided an overview of the motions that have been filed with the PUC related to the reimbursement agreement between CAW, Marina Coast Water District (MCWD), and Monterey County Water Resources Agency (MCWRA) for costs incurred for the Coastal Water Project. All three agencies requested that the PUC approve a reimbursement agreement, whereby CAW would advance funds to MCWD and MCWRA and record them as costs against the Coastal Water Project. The loan amount would later be collected from CAW rate payers. The District and other agencies filed as interveners in this lawsuit. The District’s position was to seek clarification on several issues. (1) Ask the PUC to describe what authority it has to grant financial relief to the parties. (2) Request that if the reimbursement order was approved, the PUC should assign an appropriate share of risk. If the project were not constructed, it would be clear whether CAW ratepayers or its shareholders would be liable for the costs. (3) What interest rate should be assigned the advanced costs? The interest rate should not be subject to future increases. (4) Request that the reimbursable expenses such as agency administrative, consultant and legal expenses be defined. The Department of Ratepayer Advocates expects that a decision will be handed down in June 2010. Director Markey requested that District staff provide a monthly report on this issue.	18.	Report on 5:PM Session of the Board
	DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS)
Chair Doyle reported that on February 27, 2010, she attended a workshop focused on the Laundry to Landscape method of greywater reuse. She mentioned that the Public Outreach Committee would discuss how to develop a demonstration project and to sponsor a workshop on the laundry to landscape methodology. Director Edwards congratulated Director Brower on his designation as 2009 Hospitality Professional of the Year by the Monterey County Hospitality Association.	19.	Oral Report on Activities of County, Cities, Other Agencies/Committees/ Associations
	PUBLIC HEARINGS
On a motion by Director Pendergrass and second of Director Markey, the Board voted unanimously to adopt the April through June 2010 Quarterly Water Supply Strategy and Budget. The motion was adopted on a vote of 6 – 0. Director Potter was absent. No comments were directed to the Board during the public hearing on this item.	20.	Consider Adoption of April through June 2010 Quarterly Water Supply Strategy and Budget
On a motion by Director Edwards and second by Director Brower, the Board agreed to approve the Draft 2009 MPWMD Annual Report as presented with one amendment: page 120, under the heading Future Water Requirements, state that the 4,500 acre-feet per year of new water supplies needed to meet future CAW requirements within the District is a number that will be updated in the 2010 report. The motion was approved unanimously on a vote of 6 – 0. Director Potter was absent.	21.	Consider Approval of Draft 2009 MPWMD Annual Report
No Action Items were submitted to the Board for consideration.	ACTION ITEMS
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 February 2010
	25.	Water Conservation Program Report for January 2010
	26.	Water Conservation Program Report for February 2010
	27.	Monthly Allocation Report
	28.	Monthly California American Water Production Report
	29.	Monthly Water Supply Status Report
The meeting was adjourned to closed session at 8:40 PM.	ADJOURN TO CLOSED SESSION

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Darby Fuerst, Secretary to the Board

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