Exhibit 1-A

DRAFT MINUTES

Water Demand Committee of the

Monterey Peninsula Water Management District

August 14, 2007

Call to Order

The meeting was called to order at 3:35 p.m. in the library of the Monterey Peninsula Water Management District office.

Committee members present: Larry Foy, Chair

Kristi Markey

David Pendergrass

Staff members present: David A. Berger, General Manager

Stephanie Pintar, Water Demand Manager

District Counsel present: David Laredo, General Counsel

Comments from Public

No comments.

Action Items

1. Receive Minutes of June 26, 2007 Committee Meeting

On a motion by Director Markey and second by Director Pendergrass, the minutes were received on a vote of 3 – 0.

2. Review and Comment on Proposed Draft Ordinance No. 130—Adding a Process for Sub-Potable Water Use Credits to the District’s Rules and Regulations

Stephanie Pintar provided an oral overview of the policy purpose and key provisions of draft Ordinance 130, which are described in her staff report contained in the agenda packet for this committee meeting¹. She noted that although the draft ordinance was scheduled for first reading at the September 17, 2007 Board meeting, at the Technical Advisory Committee meeting held this morning several members expressed concern about the lack of a transfer provision in the draft ordinance. The TAC requested its consideration be delayed for further discussion at its next meeting. Committee members Foy and Pendergrass expressed a similar concern, and the members discussed this and various other aspects of the draft ordinance, including its derivation. Director Markey expressed a desire that the Board consider other types of incentives beside Water Use Credits for converting irrigation of parks, golf courses and other large open space to recycled water. At Director Markey’s urging, the committee consensus was that a) first reading of the draft ordinance not be scheduled for the September 17 Board meeting; b) Keith Israel be asked to make a presentation at that Board meeting regarding the recycled water component of his agency’s Regional Urban Water Augmentation Project (RUWAP); and c) that the Board should discuss other potential options to create RUWAP incentives for Monterey Peninsula potential end-users to participate in the project such as grants or subsidies to reduce its cost, in addition to the proposed Water Use Credits.

Other Items

No other items were discussed.

Adjournment

The meeting was adjourned at approximately 4:40 p.m.

^{1. Subsequent to this committee meeting the No. 130 was assigned to another ordinance scheduled for first reading consideration at the September 17, 2007 Board meeting.}

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