EXHIBIT 1-A
DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District July 21, 2014
The meeting was called to order at 7:05 p.m. in the Water Management District conference room.		CALL TO ORDER/ROLL CALL
Directors Present: David Potter – Chair, Monterey County Board of Supervisors Representative Bill Thayer – Vice Chair, Division 2 (participated by telephone) Brenda Lewis –Division 1 Kristi Markey – Division 3 David Pendergrass – Mayoral Representative Directors Absent: Jeanne Byrne – Division 4 Robert S. Brower – Division 5 General Manager present: David J. Stoldt District Counsel present: David 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 Markey and second of Lewis, the Consent Calendar was approved with the exception of Items 3 and 5 that were pulled for separate consideration. The motion was approved on a unanimous roll-call vote of 5 – 0 by Markey, Lewis, Thayer, Pendergrass and Potter. Byrne and Brower were absent for the vote.		CONSENT CALENDAR
Approved.		1.	Consider Adoption of Minutes of the June 23, 2014 Regular Board Meeting
Approved.		2.	Consider Receipt of Final Los Padres Dam and Reservoir Long-Term Strategic and Short-Term Tactical Plan
Refer to Action Item 24.		3.	Consider Policy on Preparation of Committee Meeting Minutes
Approved.		4.	Consider Adoption of Resolution No 2014-13 to Obtain Credit Line with Rabobank, N.A.
Markey made a motion that was seconded by Pendergrass to adopt Resolution 2014-14, and authorize staff to update the Rules and Regulations so that any mention of a fee or charge conforms to the amended table. The motion was approved on a unanimous roll-call vote by Markey, Pendergrass, Lewis, Thayer and Potter. Brower and Byrne were absent for the vote.		5.	Consider Adoption of Resolution 2014-14 Amending Fees and Charges Table – Rule 60
Approved.		6.	Authorize Expenditure of Budgeted Funds for Software Maintenance Agreements
Approved.		7.	Consider Adoption of Amendments to Rule 24, Table 2: Non-Residential Water use Factors
Approved.		8.	Consider Approval of May 2014 Treasurer's Report
		GENERAL MANAGER’S REPORT
General Manager Stoldt presented the report. A summary is on file at the Water Management District office and website. His presentation included an overview of emergency water conservation regulations adopted by the State of California, that will be in effect on August 1, 2014. He also reviewed water conservation rules already in effect within the Water Management District boundaries, and the seven stages of the Water Management District’s Conservation and Standby Rationing Plan.		9.	Status Report on California American Water Compliance with State Water Resources Control Board Order 2009-0060 and Seaside Groundwater Basin Adjudication Decision
No report.		10.	Update on Development of Water Supply Projects
District Counsel Laredo reported that he provided the Board with a status report on agenda items 3.A and 3.B. The Board provided direction to Counsel. No reportable action was taken.		ATTORNEY’S REPORT
		11.	Report on 6:30 PM Closed Session
			3.	Conference with Legal Counsel – Existing Litigation (Gov. Code 54956.9 (a)
			A.	Monterey Peninsula Taxpayers Association v. MPWMD, Monterey County Superior Court Case #M123512
			B.	Application of California American Water to the California Public Utilities Commission (App. No. 13-07-002) 2013 General Rate Case
		DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS)
No reports were presented.		12.	Oral Reports on Activities of County, Cities, Other Agencies/Committees/ Associations
		PUBLIC HEARINGS
Pendergrass offered a motion that was seconded by Lewis, to approve the Negative Declaration for Ordinance No. 161 and adopt the ordinance. The motion was approved on a unanimous roll-call vote of 5 - 0 by Pendergrass, Lewis, Markey, Potter and Thayer. Brower and Byrne were absent for the vote. The following comments were received during the public comment period on this item. (1) Nelson Vega asked for clarification of the following: if a building does have documented water use, a sub-meter could be installed as long as estimated water use does not exceed previous use on the site. Mr. Stoldt encouraged Mr. Vega to discuss his building plans with Water Demand Division personnel. (2) Bob Massaro, representing the Monterey Commercial Property Owners Association, stated that the Association strongly supports the ordinance. (3) Anthony Davi, Sr., asked if installation of sub-meters could be used to improve a site that has an existing quantified water use. Stoldt responded that each request must be reviewed by Water Management District staff, before a determination on installation of sub-meters can be made.		13.	Consider Second Reading and Adoption of Ordinance No. 161 – An Ordinance of the Board of Directors of the Monterey Peninsula Water Management District Amending Rule 23-A-1-i Regarding Sub-Metering
On a motion by Markey and second of Pendergrass, the first reading of Ordinance No. 162 was approved on a unanimous vote of 5 – 0 by Markey, Pendergrass, Lewis, Thayer and Potter. Brower and Bryne were absent for the vote. Public Comment. Devon Lincoln, an attorney with Lozano Smith representing several school districts, spoke in support of the ordinance. She expressed appreciation to the Water Management District for developing the proposed regulations.		14.	Consider First Reading of Ordinance No. 162 -- Amending the Water Permit Process for Primary and Secondary Public School Districts
		ACTION ITEMS
On a motion by Pendergrass and second of Lewis, the Board agreed that the procedure for preparation of committee minutes should continue without modification. The motion was approved unanimously on a vote of 5 – 0 by Pendergrass, Lewis, Markey, Potter and Thayer. Brower and Byrne were absent for the vote. No comments were directed to the Board during the public comment period on this item.		15.	Consider Policy on Preparation of Committee Meeting Minutes
Pendergrass offered a motion that was seconded by Lewis, to authorize an expenditure of $75,000 for drought related outreach from the Flood and Drought Reserve. The motion was approved unanimously on a vote of 5 – 0 by Pendergrass, Lewis, Markey, Potter and Thayer. Brower and Byrne were absent for the vote. In response to a question from the Board of Directors, Eric Sabolsice, General Manager of California American Water, Coastal Division, stated that the source of an ongoing water leak in the City of Carmel appeared to be groundwater, and was likely not from the Cal-Am distribution system. Cal-Am continues to search for the source of the leak. He stated that the leak rate for the Monterey system was less than 5 percent.		24.	Consider Approval of Reserve Funding for Drought Response
There was no discussion of the Informational Items/Staff Reports.		INFORMATIONAL ITEMS/STAFF REPORTS
		16.	Letters Received
		17.	Committee Report
		18.	Carmel River Fishery for May 2014
		19.	Water Conservation Program Report
		20.	Monthly Allocation Report
		21.	Monthly Water Supply and California American Water Production Report
		22.	Quarterly Carmel River Riparian Corridor Management Program Report
		23.	Quarterly Water Use Credit Transfer Status Report
The meeting was adjourned at 7:55 pm.		ADJOURNMENT
U:\staff\Boardpacket\2014\20140818\ConsentClndr\01\item1_exh1a.docx	Arlene M. Tavani, Deputy District Secretary