EXHIBIT 1-C

DRAFT MINUTES

Joint Meeting of the

Policy Advisory (PAC) and Technical Advisory (TAC) Committees

of the Monterey Peninsula Water Management District

June 1, 2004

Committee members present:

PAC TAC

Carmel-by-the-Sea Paula Hazdovac Sean Conroy

County of Monterey Dave Potter Al Mulholland

Del Rey Oaks Joe Russell Ron Langford

City of Monterey Dan Albert Tod Bennett

Monterey Peninsula

Airport District Tex Irwin Thomas Greer

Pacific Grove Morris Fisher John Biggs

Sand City Kelly Morgan Steven Matarazzo

Seaside Darryl Choates Diana Ingersoll

District staff present:

Stephanie Pintar, Water Demand Manager

Arlene Tavani, Executive Assistant

District Counsel present:

David C. Laredo

MPWMD Board Members present:

Larry Foy, Vice Chair, Division 5

Call to Order

The meeting was called to order at 9:05 AM in the District conference room.

Comments from the Public

None

Action Items

1. Continue Discussion of Development of Common Methodology to Estimate Future Water Needs

The following discussion items were raised at the meeting.

1. Does the PAC agree that the General Plan Build-Out should be used as a basis for long-term water needs projections?

2. Should this number be adjusted with a trend analysis of past permits issued?

3. Do the PAC and TAC want to establish a set of assumptions that will be applied to every jurisdictions’ water needs estimates (i.e. should w use only 30 percent of underdeveloped lots versus 100 percent at build-our?).

4. Should the TAC provide intervals (of 2-3 years) of water toward the projected build-out?

Consensus among the PAC members was that the methodology should be based on general plan build-out projections and the District’s water use factors. The PAC agreed to submit this recommendation to their governing bodies for consideration and then provide direction to the TAC members. A meeting of the TAC would be scheduled to receive the final recommendation.

The following comments were made during the discussion. Pacific Grove – Support #1 and #4. Do not support #2 or #3. Del Rey Oaks – Support #1 and #4. Do not support #2 or #3. Must take this issue to city counsel. Seaside – Support #1 and #4. Do not support #2 or #3. MPAD – Support #1 and #4. We have provided those numbers to the District previously. Carmel-by-the-Sea – It would be helpful if all PAC members present option #1 option to their city counsels. Monterey – Suggested #4 at last meeting. Chances are that the 20-year build-out growth projections will not occur. The growth projections are not realistic. Must take this issue to city counsel. Sand City – What will methodology be based on for jurisdictions like Monterey County if they cannot complete their general plan? Suggest submit your reasonable calculations to the EIR consultant and the desalination plant will be sized accordingly. Would the District be willing to take the production calculations from each agency and add another 20 to 30 percent just to be safe? Monterey County – You need to make a decision on the amount of water needed from the desalination project quickly. The biggest argument against the project will be growth inducement. If the water needs estimate is based on general plans, then it is based on the needs of the public and not the private sector.

During the public comment period on this item, Larry Seeman stated that the consultants will develop peak daily use estimates of the desalination project based on information the jurisdictions provide. Breaking the project down into small increments would be unwise, and would introduce error into the calculations. The jurisdictions should let the District know what factors they are using in their calculations, and the District should provide info to the cities on their water use factors.

2. Discuss Role and Responsibilities of PAC and TAC

TAC Chair Ingersoll explained that the District’s Rules and Regulations Committee asked her to attend its June 3, 2004 meeting and explain the role and responsibilities of the Policy and Technical Advisory committees. She asked the committee members to give her their opinions so that she could present their views at the June 3 meeting.

The following comments were presented on the topic of the roles and responsibilities of the PAC and TAC. (1) The committees are key to getting information to the Board members. If the committees were not active, the Board would not receive input from the jurisdictions. (2) The city counsel appreciates information provided by the PAC members. The TAC members work directly with the public. The District could use to its advantage the information provided to it by both these committees. There has been negativity expressed towards the Board by the jurisdictions because a previous Board would not utilize the committees. The Board should keep the committees informed. (3) This is the best conduit for the Board to hear from the jurisdictions. It allows for discussion instead of combat. (4) Committee meetings should not be conducted on Board meeting days. It is important to allow the PAC and TAC members time to meet and then confer with their decision-making bodies on issues prior to the Board taking action.

Comments by Technical and Policy Advisory Committee Members

No further comments.

Adjournment

The meeting was adjourned at 10:05 AM.

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