EXHIBIT 1-A

DRAFT MINUTES

Ad Hoc Water Supply Planning Committee Meeting of the

Monterey Peninsula Water Management District

September 24, 2009

Call to Order

The meeting was called to order at 1:35 PM in the District conference room.

Committee members present: Bob Brower, Chair

Regina Doyle

Alvin Edwards

Staff present: Darby Fuerst, General Manager

Andy Bell, Planning & Engineering Manager/District Engineer

Arlene Tavani, Executive Assistant

Others present: Brad Hageman, Monterey Regional Water Pollution Control Agency

Comments from Public

No comments.

Action Items

1. Receive Minutes of July 21, 2009 Committee Meeting

On a motion by Director Edwards and second by Director Doyle, the minutes were received unanimously on a vote of 3 – 0.

Discussion Items

2. Update on Progress of Development of an MOU with Monterey Regional Water Pollution Control Agency on Water Supply Planning

Mr. Fuerst reported that he met with Keith Israel, General Manager of the Monterey Regional Water Pollution Control Agency who advised him that the agency continues to pursue planning for development of groundwater replenishment and the Regional Urban Water Augmentation Plan (RUWAP). However, there is no urgency to develop an MOU with MRWPCA because funding sources must be obtained before those projects can be fully analyzed. Also, the RUWAP may be included in Phase 2 of the proposed Regional Water Supply Project which is still in the planning process. Mr. Fuerst noted that the District and the MRWPCA are working with other area agencies to obtain funding to complete an analysis of groundwater replenishment through the Integrated Regional Water Management Plan (IRWMP) process. The cost to complete studies on groundwater replenishment could be $400,000. Mr. Hageman stated that $2 million could be required to complete water treatment facilities, and if a new transmission pipeline must be constructed, the cost for water from the project would be prohibitive. It’s possible that water from the groundwater replenishment project could be transmitted through pipelines constructed for the RUWAP.

3. Update on Progress on Development of an MOA with Marina Coast Water District on Water Supply Planning and Funding

General Manager Fuerst reported that the MOA was approved by the MPWMD Board on September 21, 2009.

4. Update on Response from Monterey Regional Water Pollution Control Agency to MPWMD Request to Participate in the Leadership/Management Framework for Development of the Regional Water Supply Project

Mr. Fuerst and Director Brower both reported that they have been told in separate conversations with members of the Leadership/Management Group, that the District will be asked to participate at some point in the future, but may not be allowed to be a signatory to any cooperative agreement the group would develop. Committee members will continue to lobby Leadership/Management Group members for the District to gain full participation in the group.

5. Update on Status of Hybrid Water Supply Project Proposal

Mr. Fuerst advised the committee that the project proponents had not contacted the District about the Hybrid Water Supply Project. The Public Utilities Commission (PUC) determined that the Hybrid project would not be analyzed in the Coastal Water Project EIR. However, the PUC did request more information on the alternative that could be considered during the rate setting process for a regional water supply project.

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

Mr. Fuerst reported that California American Water (Cal-Am) has agreed to fund studies that would analyze this project as an alternative to a new dam on the Carmel River. CAW has also agreed to fund studies to assess the risks associated with building the project, or with doing nothing. Cal-Am has approached the District about conducting downstream monitoring activities after the project is built.

7. Progress Report on 95-10 Desalination Project

Mr. Bell advised the committee that drilling of test wells has been completed to determine if a clay layer with low permeability exists that separates the Seaside Groundwater Basin from source water for the desalination project. A draft report on the findings will be presented to the Board of Directors in December.

8. Progress Report on Aquifer Storage and Recovery Project

Mr. Fuerst advised that Phase 1 of the ASR Project is near completion. The project has been in operation, but will reach its full injection potential of 3,000 gallons of water per minute or 13.3 acre-feet per day after Cal-Am installs a transmission pipeline through the City of Del Rey Oaks. Cal-Am plans to have the work completed by December 2009. The District is coordinating with the City of Seaside to obtain permits for construction of a water treatment facility.

Cal-Am had proposed development of additional ASR facilities as a component of the Coastal Water Project. However, progress has been slow. Consequently, Cal-Am is working with the District to facilitate development of the Phase 2 ASR project. Cal-Am has agreed to withdraw its protest to the District’s water rights application related to Phase 2, and expressed an interest in funding installation of additional production wells for Phase 2. The District has obtained permits to develop a new monitor well at Fitch Middle School that will provide hydrologic information for development of Phase 2.

Schedule Next Meeting Date

No meeting date was set.

Adjournment

The meeting was adjourned at approximately 2:40 PM.

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