EXHIBIT 1-B

DRAFT MINUTES

Legislative Advocacy Committee Meeting of the

Monterey Peninsula Water Management District

May 6, 2010

Call to Order

The meeting was called to order at 8:10 a.m. in the District conference room.

Committee members present: Dave Potter, Chair

Bob Brower

Judi Lehman

Staff present: Darby Fuerst, General Manager (arrived during discussion of agenda item 4)

Stephanie Pintar, Water Demand Manager

Arlene Tavani, Executive Assistant

District Counsel present: David C. Laredo

Comments from the Public

No comments were presented to the committee.

Action Items

1. Develop Recommendation to the Board Regarding Adoption of Resolution No. 2010-05 Expressing Support for the Safe, Clean and Reliable Drinking Water Supply Act of 2010

Director Brower offered a motion that was seconded by Director Potter, to recommend that the Board of Directors adopt the resolution of support for the Safe, Clean and Reliable Drinking Water Supply Act. The motion was approved on a vote of 2 – 1. Directors Brower and Potter voted in favor of the motion. Director Lehman was opposed. The committee also recommended that this be presented as an Action item on the May 17, 2010 Board meeting agenda.

Oral Reports

2. Report from District Counsel on Status of State Water Resources Control Board Proceedings Regarding Cease and Desist Order WR 2009-0060

Mr. Laredo reported that the stay of Cease and Desist Order WR 2009-0060 (CDO) was lifted on April 22, 2010. A case management conference will be conducted in June. It is likely that a hearing to make a determination on the challenge to the CDO will be conducted in the Fall of 2010. Although the community is now subject to the water restrictions mandated by the CDO, water production is expected to remain within the mandated limits and the community will continue to be subject to Phase 1 water conservation regulations. The water connection moratorium mandated by the CDO requires that California American Water (Cal-Am) cease from setting new water meters, but permission must be granted by the California Public Utilities Commission (CPUC) in order for Cal-Am to comply. The District continues to issue water permits. It is unclear how the CDO will affect plans to expand use at local military installations. There may be options to accommodate their water needs.

Discussion Items

3. Review Legislative Update Submitted by John Arriaga

The committee briefly discussed the report.

4. Discuss Transfer of Funds from California American Water, NOAA Fisheries and California Department of Fish and Game (CDFG) Settlement Agreement to MPWMD

Mr. Fuerst reported that John Arriaga was scheduling a meeting with CDFG and the Resources Agency to discuss the Fisheries Restoration Grant Program, and how to obtain funding for priority projects on the Carmel River.

5. Discuss Progress on Interaction with California-American Water and Agencies re San Clemente Dam Removal/Reroute Project

Mr. Fuerst reported that Cal-Am was in the process of comparing the risk of dam removal vs. strengthening the dam. Eventually a decision will be made as to which project is preferred. The next step will be final design, at a projected cost of $6 million.

6. Discuss Progress on Interaction with California American Water and Agencies Regarding District’s Role in Regional Water Supply Planning

Mr. Fuerst stated that the MPWMD Chair and Vice Chair were scheduled to meet with the Marina Coast Water District (MCWD) on May 17, 2010 as part of ongoing negotiations to develop a settlement agreement. Mr. Fuerst noted that MCWD would like to include in the Integrated Regional Water Management Plan (IRWMP) some components of the Regional Water Supply Project. Concerns have been expressed by members of the IRWMP that additional projects could reduce the amount of funding available for existing plan components. The Citizens for Public Water group has suggested that the pipeline needed for the proposed desalination project component of the Regional Water Supply Project could be owned by the District. The advantages would be that the pipeline would be publicly owned; the District could obtain lower cost financing; and ratepayers would not be responsible to pay Cal-Am a capital return on the pipeline expense.

7. Review Status of Coordination with Local Jurisdictions and the State Regarding Implementation of Regulations for Installation of Greywater Systems

Ms. Pintar reported that County of Monterey guidelines for installation of greywater systems are almost complete and will be posted on the District’s website upon receipt. The County of Monterey will issue permits for plumbing work needed to install a system for reuse of shower or bathroom sink water in the garden. No permit would be needed to install a laundry to landscape system. Training sessions on how to install laundry to landscape systems are being conducted locally. The County of Santa Cruz has developed a brochure on installation of rainwater catchment systems, which will be distributed to members of the Monterey County Business Council cluster group on greywater systems. The Water Awareness Committee of Monterey County will develop a website that includes information on how to install greywater systems, where to purchase the installation materials, and identify vendors that will install them. In order to determine potable water savings achieved by installation of these systems, the County of Monterey has agreed to make information from the permit applications available to the District. The greywater systems are not deed restricted.

Adjournment

The meeting was adjourned at 9:20 a.m.

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