EXHIBIT 24-B

FINAL MINUTES

Ad Hoc Water Supply Planning Committee Meeting of the

Monterey Peninsula Water Management District

July 1, 2010

Call to Order

The meeting was called to order at 9:38 a.m. in the District conference room.

Committee members present: Bob Brower, Chair

Alvin Edwards

Kristi Markey

Staff present: Darby Fuerst, General Manager

Andy Bell, Planning & Engineering Manager/District Engineer

Arlene Tavani, Executive Assistant

Comments from Public

No comments.

Discussion Items

1. Update on Potential Water Projects Including Desalination

A. Staff Report on All Alternative Desal Sites and Feasibility of Each Site Located Within the District Boundaries

The committee discussed the progress report prepared by Mr. Bell that was provided in advance of the meeting and can be viewed at the District office or on the District’s website. Mr. Bell noted that Diana Brooks told him she did not have knowledge about an open ocean intake utilized in Australia that resulted in low rates of entrainment. Mr. Bell will conduct more research to determine if such an entrainment system does exist. He will also contact the City of Santa Cruz and Soquel Creek Water District to obtain more details on their discussions with the California Coastal Commission (CCC) regarding the open ocean intake proposed for a desalination project in Santa Cruz. It is understood that the California Coastal Commission does not prohibit open ocean intake, although it is discouraged. The committee members requested that Mr. Bell coordinate with the City of Sand City on development of an ocean water desalination plant that would operate in conjunction with Sand City’s brackish water desalination plant.

2. Update on Development of Recycled Wastewater Alternatives

Regional Urban Water Augmentation Project (RUWAP) – Mr. Fuerst reported that the Monterey Regional Water Pollution Control Agency (MRWPCA) and the Marina Coast Water District (MCWD) have slowed progress on this project due to the need to identify funding for construction of the distribution pipeline. It was suggested that Cal-Am or the District could take a lead in identifying grant opportunities. Mr. Fuerst stated that the District may want to become involved to re-energize the project. He noted that the RUWAP is a component of the Integrated Regional Water Management Plan, which increases eligibility for State grant funds. Mr. Fuerst stated that staff will contact MRWPCA, MCWD and Monterey County regarding the issues raised by Craig Anthony under public comment.

Groundwater Replenishment Project – Mr. Fuerst reported that the MRWPCA has put this project on hold until a decision is made on the Regional Water Project.

Public Comment: Craig Anthony, California American Water, suggested that the District convene a meeting with the County of Monterey, MCWD, MRWPCA and Cal-Am to discuss questions that have arisen about the RUWAP production capacity and cost. Some estimates show that the cost for recycled water (including pipelines) would be much higher than the cost of desalinated water. He advised that the City of Pacific Grove is interested in purchasing water from the project, but a pipeline needs to be constructed to facilitate reclaimed water delivery. The District should be involved in development of agreements between the participating agencies.

3. Update on Status of San Clemente Dam Removal/Reroute Proposal

Mr. Fuerst reported that Cal-Am is conducting a risk assessment of rerouting the dam versus removing it. There have been some discussions about a land swap. The District must ensure that its long-term lease for use of the Sleepy Hollow Steelhead Rearing Facility site is not jeopardized by a land swap, and that its mission is consistent with any agency that would take possession of that property.

4. Progress Report on Aquifer Storage and Recovery Project

Mr. Oliver reported that construction of the facility building for ASR Phase 1 should be completed by July 2011. Regarding ASR Phase 2, the Monterey Peninsula School District Board authorized the District to drill a well at the Fitch Middle School site if it can be accomplished over the summer holiday when school is not in session. Cal-Am and the school district are negotiating the amount of compensation that Cal-Am will pay for use of the property. The committee requested that District staff develop a presentation on ASR for use at Board meetings. The presentation would update the public on progress being made, including the amount of water that has been stored, the history of water projects not approved by the voters, and that Cal Am is our partner. Director Edwards offered to participate in meetings with the school district regarding compensation for use of school property.

Public comment: Craig Anthony stated that if Cal-Am and the school district cannot reach agreement on monetary compensation for use of the Fitch Middle School site, there are alternatives such as locations on the North of Eucalyptus Avenue. In addition, as wells need to be replaced Mr. Anthony proposes that they be drilled as dual-purpose injection/recovery wells.

Other Items

No discussion of other items to report.

Schedule Next Meeting Date

The committee members agreed to meet on August 2, 2010 at 8:30 a.m.

Adjournment

The meeting was adjourned at approximately 10:30 a.m.

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