EXHIBIT 5-B

Note: These minutes were reviewed and approved by the Administrative Committee. To conform fully to action-only minute format, see the strikethrough text and the replacement text.

FINAL MINUTES

Monterey Peninsula Water Management District

Administrative Committee

January 21, 2014

Call to Order

The meeting was called to order at 3:36 PM in the District Conference Room.

Committee members present: Kristi Markey

David Pendergrass

Committee members absent: Brenda Lewis

Staff present: David Stoldt, General Manager

Suresh Prasad, Administrative Services Manager/Chief Financial Officer

Stevie Kister, Conservation Representative

Larry Hampson, District Engineer

Joe Oliver, Water Resources Manager

Sara Reyes, Office Services Supervisor

Oral Communications

None

Adopt Minutes of December 2, 2013 Committee Meeting

On a motion by Pendergrass and second by Markey, the minutes were approved on a vote of 2– 0. Director Lewis was absent for this item.

Items on Board Agenda for January 21, 2014

Consider Expenditure of Budgeted Reimbursable Funds to Contract with Waterwise Inc., to Conduct Required Landscape Water Audits and Prepare Budgets

On a motion by Markey and second by Pendergrass, the committee voted 2 – 0 to recommend the Board authorize the General Manager to contract with WaterWise for a not-to-exceed amount of $75,000 for the purpose of conducting required Landscape Water Audits and Landscape Water Budgets to comply with the requirements set forth in District Rule 172.

Consider Adoption of Resolution 2014-01 in Support of Entering into an Agreement with the California State Coastal Conservancy to Upgrade the Intake for the Sleepy Hollow Steelhead Rearing Facility

On a motion by Pendergrass and second by Markey, the committee voted 2 – 0 to recommend the Board adopt Resolution 2014-02, which authorizes the General Manager to enter into an agreement with the California State Coastal Conservancy (SCC) to receive up to $450,000 in grant funds to improve the Sleepy Hollow Steelhead Rearing Facility intake.

Hampson reported the California State Coastal Conservancy is proposing to disburse up to $450,000 as a grant from California American Water Settlement Agreement funds to the District to prepare engineering, permitting, and environmental review documents to improve the intake structure at the Sleepy Hollow Steelhead Rearing Facility located on the Carmel River. The intake is subject to catastrophic failure when fine sediment begins to move through the river after San Clemente Dam is removed.

Authorize Expenditure of Funds for Completion of Facilities Work at (A) Phase 1 and (B) Phase 2 Aquifer Storage and Recovery Sites

On a motion by Pendergrass and second by Markey, the committee voted 2 - 0 to recommend the Board authorize staff to amend the existing contract agreement with Pueblo Water Resources for technical services for: (A) the Phase 1 Project site for a not-to-exceed amount of $319,815 plus 10% Contingency, and (B) the Phase 2 Project site for a not-to-exceed amount of $223,645 plus 10% Contingency.

Oliver presented maps outlining the Phase 1 and 2 sites. Both wells and control buildings are in place, however one site needs expansion to the backflush pit to treat well water for Fitch Middle School, Phase 1 (Santa Margarita site) and Phase 2 (Seaside Middle School site) . Steve Tanner was also in attendance and presented an overview of the expansion needed at the site.

Consider Authorization to Increase Budget for Groundwater Replenishment Project (GWR)

On a motion by Pendergrass and second by Markey, the committee voted 2 - 0 to recommend this item be presented to the full Board for discussion.

Prasad reported based on new estimates from the Monterey Regional Water Pollution Control Agency (MRWPCA), there is a need to increase the Groundwater Replenishment Project FY 2013-14 budget by an additional $1,637,714. The District’s share would total $1,148,290, approximately 20% Fiscal Year 2013-14 budget increase.

Stoldt reported it would be in the District’s best interest to have an agreement between the District and MRWPCA due to the significant increase.

Keith Israel, General Manager, reported it is expected the District will get reimbursed once the project is underway. He noted several things have happened since the budget was approved in 2013.

Consider Approval of First Quarter Fiscal Year 2013-2014 Investment Report

On a motion by Pendergrass and second by Markey, the committee voted 2 - 0 to recommend the Board approve the First Quarter Fiscal Year 2013-2014 Investment Report.

Receive and File First Quarter Financial Activity Report for Fiscal Year 2013-2014

On a motion by Pendergrass and second by Markey, the committee voted 2 - 0 to recommend the Board accept and file the First Quarter Financial Activity Report for Fiscal Year 2013-2014.

Consider Approval of Annual Update of Investment Policy

On a motion by Markey and second by Pendergrass, the committee voted 2 - 0 to recommend the Board approve the District’s Investment Policy.

Semi-Annual Report on the CAWD/PBCSD Wastewater Reclamation Project

On a motion by Pendergrass and second by Markey, the committee voted 2 - 0 to recommend the Board receive the Semi-Annual Report.

Consider Adoption of Treasurer’s Report for July 2013

On a motion by Markey and second by Pendergrass, the committee voted 2 - 0 to recommend the Board adopt the July 2013 Treasurer’s Report and financial statements, and ratification of the disbursements made during the month.

Consider Adoption of Treasurer’s Report for August 2013

On a motion by Pendergrass and second by Markey, the committee voted 2 - 0 to recommend the Board adopt the August 2013 Treasurer’s Report and financial statements, and ratification of the disbursements made during the month.

Consider Adoption of Treasurer’s Report for September 2013

On a motion by Pendergrass and second by Markey, the committee voted 2 - 0 to recommend the Board adopt the September 2013 Treasurer’s Report and financial statements, and ratification of the disbursements made during the month.

Other Business

Receive First Quarter Legal Services Activity Report for Fiscal Year 2013-2014

Prasad presented information to the Committee. The Committee voted 2 – 0 to receive the report.

Review of 2014 Contracts for MPWMD Assistance to Seaside Basin Watermaster (Oral Report)

Oliver presented information to the Committee. No action was taken by the Committee.

Review Draft Agenda for January 29, 2014 Regular Board Meeting

The committee made no changes to the agenda.

Schedule February 2014 Meeting Date

The committee agreed to postpone scheduling the February meeting until the committees are discussed at the January 29, 2014 Board meeting.

Adjournment

The meeting was adjourned at 4:50 PM.

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