EXHIBIT 19-B

FINAL MINUTES

Water Supply Planning Committee of the

Monterey Peninsula Water Management District

December 20, 2011

Call to Order

The meeting was called to order at 8:30 am in the District’s conference room.

Committee members present: Bob Brower, Chair

Kristi Markey

David Pendergrass

Staff members present: David Stoldt, General Manager

Larry Hampson, Senior Water Resources Engineer

Joe Oliver, Water Resources Manager

Rachel Martinez, Community Relations Liaison

Sara Reyes, Office Services Supervisor

District Counsel present: David Laredo

Comments from the Public

No comments.

Progress Reports

1. Discuss Governance of New Water Supply Alternatives

General Manager Stoldt reported that the mayors of the six cities within the District are continuing to work on an alternative form of governance for regional water supply projects or the Regional Desal Project, should it move forward. General Manager Stoldt will be participating in a meeting on December 23, 2011 at the office of Monterey County Counsel to discuss a regional project collaboration between Marina Coast Water District, Monterey County Water Resources Agency and the District. Mr. Stoldt distributed a copy of the data request sent to California American Water from the Division of Ratepayer Advocates. He also reported that the District received a letter from the Carmel Valley Association asking the District to form a collaborative coalition to develop a contingency plan should the Regional Water Supply Project not go forward.

2. Update on Water Projects 1 and 2, ASR – Status of Injection Operations

Joe Oliver, Water Resources Manager, reported that permanent power has been installed at the facility building at the Water Project 1 site (Santa Margarita). PG&E had to bring in a new transformer to connect power at the building. As of December 19, 2011, District staff has tested the wells in operation at the Water Project 1 and Water Project 2 (Seaside Middle School) sites and both are ready. Mr. Oliver reported that there is a maze of new pipelines on General Jim Boulevard in the vicinity between the project sites. In order to have these pipelines completely operable, they need to be flushed and disinfected. Due to the volume of these pipelines, California American Water (CAW) is concerned about the accounting of that water that would be needed for the flushing. Since all of this water will end up going to the Santa Margarita site, CAW is suggesting that as soon as the District gets the trigger set to begin injection, CAW would set the work in motion to flush the pipelines. This will likely take an extra day or two at the beginning of injection season and that water would be accounted for as part of the injection volume. Mr. Oliver also reported that the District’s consultant, Denise Duffy Associates, is moving forward with processing CEQA review for the second phase of work at the Water Project 2 site. It is anticipated that the appropriate document to obtain would be an addendum to the existing Phase 1 EIR completed in 2006. This information will likely be compiled between January and April then presented to the Board in April 2012.

George Riley addressed the committee during the public comment period. He asked Mr. Oliver to confirm that the last well for Phase 2 was not going to be in production this water year and that there are no plans to pump the maximum 2,900 acre-feet authorized for ASR. [JO1]

3. Update on Water Project 3, Local Desal within District Boundary

Larry Hampson, District Engineer, distributed a draft letter to Captain Gerral David, Commanding Officer of the Naval Post Graduate School. Mr. Hampson asked the committee to determine, which member(s) of the Board should accompany General Manager Stoldt to a meeting with the commanding officer to discuss: 1) the District’s interest in the property located near the Naval Support Activity, 2) the Navy’s process to enter into a long term lease, 3) requirements for the project, and 4) any constraints to project development. Director Markey suggested that Director Brower and General Manager Stoldt represent the District. The committee agreed that the goal is to determine if a project is feasible at the Navy site.

4. Update on Implementation Planning

General Manager Stoldt distributed a draft water supply implementation summary identifying key issues to consider for budget planning such as: capacity, start and completion dates, capital costs, annual costs, cost per acre-foot, source of funding and key hurdles.

5. Discuss Opinion from NMFS re Expansion of Los Padres Dam or construction of a new dam on the Carmel River

General Manager Stoldt distributed a letter from Dick Butler, North Central Coast Office Supervisor, NOAA Fisheries. The letter was in response to General Manager Stoldt’s October 20, 2011 letter requesting clarification of NOAA’s Fisheries’ position on the expansion of the Los Padres Dam and/or the construction of a new replacement dam on the Carmel River. The letter summarizes for the District that Water Project 5 – Expand Capacity of Los Padres Dam, will have no activity in Fiscal Year 2013 until other issues are addressed by the community and the regulators. Director Pendergrass requested that staff research how the District can declare an emergency situation with regards to the status of the dam and moving forward with a solution.

6. Update on Monterra Ranch Pipeline Right-of-Way

General Manager Stoldt presented a map outlining the Monterra Ranch proposed pipeline. Mr. Stoldt reported that three out-of-state owners need to be contacted to discuss this project and that internal engineering discussions among staff still need to occur.

Suggestions from the Public on Water Supply Project Alternatives

No discussion.

Other Items

No discussion.

Set Date for Next Committee Meeting

The committee members agreed to meet after the December 21, 2011 Chair/Vice Chair meeting.

Adjournment

The meeting was adjourned at approximately 9:55 am.

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[JO1]This appears correct per my recollection!