EXHIBIT 8-B

Attachment 8

Monterey Peninsula Water Management District

Board Expense Reimbursement Policy

Adopted by the Board on April 17, 2006

SAMPLE POLICY HANDBOOK

The Monterey Peninsula Water Management District (the District) shall adhere to Government Code Sections 53232 through 53232.4 when dealing with issues of director remuneration and reimbursement. Directors shall be eligible to receive compensation for the following:

a) Attending a Board meeting of the legislative body;

b) Attending a Committee meeting of the legislative body;

c) Attending a meeting of an advisory body;

d) Attending a conference or organized activity conducted in compliance with Government Code Section 54952.2(c), including but not limited to ethics training required by Government Code Section 53234; or

e) Each day’s service rendered as a member of the Board by request of the Board.

Directors of the District are eligible to receive reimbursements for travel, meals, lodging, and other reasonable and necessary expenses for attending the above occurrences on behalf of the District. Reimbursement rates shall coincide with rates set by Internal Revenue Service Publication 463 or its successor publication(s).

If lodging is in connection with the above occurrences or other prior approved event, such lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor. If the published group rate is unavailable, directors shall be reimbursed for comparable lodging at government or IRS rates.

If travel is in connection with the above occurrences or other prior approved event, directors shall use government or group rates offered by the provider of transportation when available.

Any and all expenses that do not fall within the adopted travel reimbursement policy or the IRS reimbursable rates are required to be approved by the Board of Directors of the District in a public meeting prior to the expense(s) being incurred.

Expenses that do not adhere to the adopted travel reimbursement policy or the IRS reimbursable rates, and that do not receive prior approval from the Board of Directors in a public meeting prior to the expense being incurred, shall not be eligible for reimbursement.

The District shall provide expense reimbursement report forms to directors who attend the above functions on behalf of the district, which shall document that expenses adhere to this policy. Receipts are required to be submitted in conjunction with the expense report form. Failure to submit necessary receipts will result in denial of the reimbursement claim. Expense reports shall be submitted within a reasonable time, and at no time more than 30 days, after completion of the event.

Directors attending functions consistent with the above occurrences or other prior approved event shall provide a brief report on each meeting attended, other than Board and Committee meetings, at the next regularly scheduled Board Meeting.

It is against the law to falsify expense reports. Penalties for misuse of public resources or violating this policy may include, but are not limited to, the following:

a) The loss of reimbursement privileges;

b) Restitution to the local agency:

c) Civil penalties for misuse of public resources pursuant to Government Code Section 8314; and

d) Prosecution for misuse of public resources, pursuant to Section 424 of the Penal Code, penalties for which include 2,3 or 4 years in prison.

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