EXHIBIT 5-A

Proposition 218 Notification

NOTICE OF PUBLIC HEARING

FOR PROPOSED WATER USE FEES

Affecting California American Water Connections in the

Monterey Peninsula Water Management District

Overview of Public Hearing

Notice is hereby given that a public hearing will be conducted to discuss the District’s proposed annual water use fee. This notice has been sent to all property owners within the District’s boundaries who currently receive water service from California American Water (CAW), with the exception of certain sub-areas. This notice provides a description of how to file a protest against the proposed water use fee. This information is provided at the bottom of this page.

Hearing Location: Hyatt Regency Hotel, Grand Ballroom, 1 Old Golf Course Road, Monterey

Hearing Date and Time: June 12, 2012 at 7:00pm

Background on the District

The District holds authority to manage and regulate use, reuse and reclamation of surface and groundwater within its jurisdiction. It is charged with water augmentation and conservation responsibilities in addition to its responsibility to integrate management of ground and surface water resources. To this end, the District owns and jointly operates with CAW an Aquifer Storage and Recovery (ASR) project that diverts excess flows from the Carmel River through the CAW Water Distribution System for injection into the Seaside Groundwater Basin through the District’s ASR wells. Further, the District intends to enter into agreement with Monterey Regional Water Pollution Control Agency (“MRWPCA”) and CAW for a Groundwater Replenishment (GWR) project enabling the advanced treatment of wastewater from the MRWPCA regional facility for injection into the Seaside Groundwater Basin through MRWPCA wells to be developed. Both ASR and GWR, collectively the “Projects,” allow subsequent recovery of the injected water by CAW for delivery to its customers.

The District has determined that the Projects are needed to address and mitigate potential adverse effects that may result from overproduction from the Seaside Groundwater Basin and will increase water available to the CAW system and assist CAW in offsetting its reduction in production of water from the Carmel River as mandated by State Order No. 95-10. The Projects are necessary to protect District water resources, satisfy water quantity and water quality requirements, meet existing commitments for water demand, and provide sufficient water for present beneficial use.

Expenses to build, maintain, repair, and facilitate the Projects cannot be adequately funded without the proposed annual water use fee.

Proposed Water Use Fee

Based on reasonable and fair investigation, the District Board of Directors has determined that this annual water use fee is needed to fund District activities for water supply facilities and other related water supply expenditures. The District seeks to raise $3,700,000 for expenditures for fiscal year 2012-13.

An annual water use fee shall be determined by the District and allocated to each property owner receiving water from the CAW Water Distribution System. The annual water use fee will be due July 1 of each year, but may be collected periodically during the fiscal year.

The annual water use fee shall be applied to properties based on water use categories, as described in the table shown on the back of this page. A study to calculate the fees has been conducted by an independent consulting firm, a copy of which is available at the District offices or posted on the District’s website at www.MPWMD.net

The method of billing and collection of the water use fee shall be determined separately by the District and enacted through Resolution at the District’s June 12, 2012 meeting.

In addition to water supply Project activities, proceeds of the water use fee may also be allocated to meet other water supply related expenses that confer benefit and/or service to existing CAW Water Distribution System water users. These services include conservation, rationing, irrigation, erosion control, mitigation programs, water supply management, and water augmentation program expenses such as planning for, acquiring and/or reserving augmented water supply capacity, including engineering, hydrologic, legal, geologic, fishery, appraisal, financial, and property acquisition endeavors.

Protesting the Proposed Annual Water Use Fee

If you are the owner of record of a parcel within the District boundaries served by California American Water, you may submit a written protest against the proposed water use fee to the District at or before the closing of the public hearing. Protests will be accepted and tabulated pursuant to procedures adopted by the District on April 16, 2012 a copy of which are posted on the District’s website at www.MPWMD.net and which may be reviewed at the main District office. If written protests are received from a majority of the affected property owners, the water use fee will not be enacted. A protest must contain a description of the parcel or parcels in which the party signing the protest is an owner. If the party signing the protest is not shown on the last equalized assessment roll of Monterey County as the owner of the parcel(s), the protest must contain, or be accompanied by, written evidence that such party is the owner. Only one protest per property will be counted. A return form is included on the back of this notice.

You May Visit or Call the Monterey Peninsula Water Management District

Ryan Ranch, 5 Harris Court, Bldg. G; Monterey

Administrative Services Division Manager at 831-658-5600

PROTEST FORM

Respondents may use the form below. Your reason must state that you protest the fee. If you have received this notice in error and are not a Cal-Am water customer, please state so on your return form and the proposed fees and charges will not be applied to you. Protests may be mailed or personally delivered to:

District Clerk

Monterey Peninsula Water Management District

5 Harris Court, Building G

PO Box 85

Monterey, CA 93942-8500

Name of Parcel Owner: _________________________________________________________________________________________

Address of Parcel (Service Address): ______________________________________________________________________________

Assessors Parcel Number: ____________________________ Meter Number (from bill): ____________________________

Reason: _____________________________________________________________________________________________________

Signature: _________________________________________ Date: ________________________________________

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