EXHIBIT 1-A
DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District September 15, 2014
The meeting was called to order at 7:00 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 Brenda Lewis –Division 1 Jeanne Byrne – Division 4 David Pendergrass – Mayoral Representative Directors Absent: Vacant – Division 2 Kristi Markey – Division 3 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
George Riley, representing Public Water Now, stated that the organization will raise questions about the feasibility criteria for slant wells proposed for the Monterey Peninsula Water Supply Project. His concern is that feasibility criteria such as cost, prior experience and timelines were not part of the established guidelines.		ORAL COMMUNICATIONS
On a motion by Pendergrass and second of Byrne, the Consent Calendar was adopted on a unanimous vote of 4 – 0 by Directors Pendergrass, Byrne, Lewis and Potter. Directors Markey and Brower were absent.		CONSENT CALENDAR
Approved.		1.	Consider Adoption of Minutes of the August 18, 2014 Regular Board Meeting
Approved amendments.		2.	Consider Recommendation to the Board to Amend Cost Sharing Agreement with DeepWater Desal
Approved not-to-exceed amount of $13,700.		3.	Consider Extension of Cooperative Agreement with the United States Geological Survey for Streamflow Gaging in Water Year 2015
Approved.		4.	Consider Approval of Fourth Quarter Fiscal Year 2013-2014 Investment Report
Approved.		5.	Consider Approval of Treasurer's Report for June 2014
		GENERAL MANAGER’S REPORT
A summary of General Manager Stoldt’s report is on file at the District office and can be viewed on the MPWMD website.		6.	Status Report on California American Water Compliance with State Water Resources Control Board Order 2009-0060 and Seaside Groundwater Basin Adjudication Decision
Stoldt reported the following. Monterey Peninsula Water Supply Project Desal – The deadline for a decision on the desalination project has been extended eleven months to the third quarter of 2015. California American Water (Cal Am) is expected to submit to the California Coastal Commission an appeal of the decision by the City of Marina to deny a permit to drill test wells. SB936, the ratepayer relief legislation, was approved unanimously by the California Assembly and Senate and is awaiting the Governor’s signature. The project Governance Committee will meet on September 17, 2014 to discuss bids for construction of desal project test wells and to review the Value Engineering Study. Pure Water Monterey groundwater replenishment project – A stakeholder meeting is set for September 19, 2014 to review a source water memorandum of understanding that will be submitted for consideration by the Monterey County Water Resources Agency on September 22, 2014. Aquifer Storage and Recovery (ASR) – staff is working with the City of Seaside on a lease agreement that will facilitate completion of site improvements at the Santa Margarita ASR location. Local Water Project Grant Funding – Applications are to be submitted to the Water Management District by October 1, 2014. No applications have been received. DeepWater Desal Project – a study on the project costs has been completed and will be reviewed by the Water Supply Planning Committee in September, and submitted for Board review in October. Cease and Desist Order - The working group will meet on November 7, 2014 with State Water Resources Control Board staff regarding a possible extension to the CDO deadlines.		7.	Update on Development of Water Supply Projects
A summary of Stephanie Locke’s report is on file at the Water Management District office and can be viewed on the District’s website.		8.	Report on Drought Response
		ATTORNEY’S REPORT
District Counsel Laredo reported that he provided an update to the Board on items of pending litigation listed on the agenda. The Board of Directors provided general direction to Counsel and staff. No reportable action was taken.		9.	Report on 5:30 pm Closed Session of the Board
			3.	Conference with Legal Counsel – Existing Litigation (Gov. Code 54956.9 (a))
			A.	MPWMD v. SWRCB; Santa Clara 1-10-CV-163328 – CDO (6th District Appellate Case #H039566
			B.	Water Plus v. MPWMD, Case No. M125274
			C.	Monterey Peninsula Taxpayers Association v. MPWMD; Case No. M123512
		DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS)
No reports were submitted by the Directors.		10.	Oral Reports on Activities of County, Cities, Other Agencies/Committees/ Associations
		PUBLIC HEARINGS
On a motion by Byrne and second of Pendergrass, the Board approved the staff recommendation to: (a) adopt the Findings of Approval for Application #20140206CYP; (b) approve Application #20140206CYP and issue MPWMD Permit M14-05-L4 with the Conditions of Approval; and (c) direct staff to file a Notice of Exemption. The motion was approved unanimously on a vote of 4 – 0 by Directors Byrne, Pendergrass, Lewis and Potter. Directors Brower and Markey were absent. The following comments were directed to the Board during the public hearing on this item. (1) Tony Lombardo, representing the applicant, expressed support for the staff recommendation and requested that the Board approve the application. (2) Eric Sabolsice of California American Water spoke in support of the staff recommendation.		11.	Consider Approval of Application to Amend California American Water Distribution System – Transfer of Cypress Pacific Water Rights in Seaside Basin, APN 011-011-020, 715 Tioga Avenue, Sand City (donor parcel)
Byrne offered a motion to approve Resolution 2014-15. The motion was seconded by Lewis and approved unanimously on a vote of 4 – 0 by Directors Byrne, Lewis, Pendergrass and Potter. Directors Brower and Markey were absent. No comments were directed to the Board during the public hearing on this item.		12.	Consider Adoption of Resolution 2014-15 Modifying Rule 162 -- Regulatory Water Production Targets for California American Water Systems
On a motion by Byrne and second of Pendergrass, this item was continued to the October 20, 2014 Board meeting. The motion was approved unanimously on a vote of 4 – 0 by Directors Byrne, Pendergrass, Lewis and Potter. Directors Brower and Markey were absent.		13.	Consider Adoption of October through December 2014 Quarterly Water Supply Strategy and Budget
		ACTION ITEMS
Byrne offered a motion that was seconded by Pendergrass, to select the Division 2 representative by appointment of the Board. The motion failed on a vote of 3 – 1 with Directors Byrne, Pendergrass and Potter voting in favor and Director Lewis opposed. Directors Brower and Markey were absent. Counsel Laredo noted that a motion is only approved by the affirmative vote of a majority of the Board. There was consensus among the four directors present that staff should post notice of the vacancy on the Board, and that a decision on whether to appoint or set an election will be made at the October 20, 2014, Board meeting. Until them, the Water Management District would continue to accept letters of interest and statements of qualifications from persons who would like to represent Voter Division 2. Directors could individually interview any persons that expressed an interest in the open position. No comments were directed to the Board during the public comment period on this item.		14.	Specify Method for Selection of Director to Fill Vacancy in Voter Division 2
On a motion of Byrne and second by Pendergrass, Director Markey was elected to the position of Vice Chair. The motion was approved on a unanimous vote of 4 – 0 by Directors Byrne, Pendergrass, Lewis and Potter. Directors Brower and Markey were absent. No comments were directed to the Board during the public comment period on this item.		15.	Specify Method for Selection of Director to Fill Vacancy in Office of Vice Chair and Make Selection
There was no discussion of the Informational Items/Staff Reports.		INFORMATIONAL ITEMS/STAFF REPORTS
		16.	Letters Received
		17.	Committee Report
		18.	Carmel River Fishery Report
		19.	Water Conservation Program Report
		20.	Monthly Allocation Report
		21.	Monthly Water Supply and California American Water Production Report
		22.	Semi-Annual Financial Report on the CAWD/PBCSD Wastewater Reclamation Project
		23.	Minutes of Monterey Peninsula Water Supply Project Governance Committee
The meeting was adjourned at 7:45 pm.		ADJOURNMENT
U:\staff\Boardpacket\2014\20141020\ConsentClndr\01\item1_exh1a.docx	Arlene M. Tavani, Deputy District Secretary