EXHIBIT 1-A

DRAFT MINUTES

Water Supply Planning Committee of the

Monterey Peninsula Water Management District

July 19, 2011

Call to Order

The meeting was called to order at 9 am in the District’s conference room.

Committee members present: Bob Brower, Chair

Regina Doyle

David Pendergrass

Staff members present: Darby Fuerst, General Manager

Larry Hampson, Senior Water Resources Engineer

Joe Oliver, Water Resources Manager

Arlene Tavani, Executive Assistant

District Counsel present: David Laredo

Comments from the Public

No comments.

Action Items

1. Receive Minutes of June 21, 2011 Committee Meeting

No action taken. Item deferred to next committee meeting.

Discussion Items

2. Develop Estimate of Potential Water Production and Conservation Savings to be Achieved from Existing Water Projects and those under Consideration for Development

There was consensus among the committee members that staff should develop a time-line that provides a summary of how conservation and proposed water projects will meet community water needs, taking into consideration the water production reductions required by the Cease and Desist Order. The time-line should list the dates that proposed water projects will be operational, the amount of water the community will need each year based on average rainfall conditions, water production reductions required by the Cease and Desist Order, and water savings that could be achieved through conservation. This information should be provided to the committee members within two weeks. The goal is to present the information at the August 25, 2011 Water Supply Alternatives Workshop.

3. Discuss Feasibility of Moving Additional Water from Carmel Valley to Water Projects 1 and 2

Mr. Hampson explained that the MPWMD has constructed 3 aquifer storage and recovery (ASR) wells, and has plans for a fourth well to be constructed by the summer of 2015. The California American Water (Cal-Am) distribution system is sufficient to deliver water from Carmel Valley to the four wells, but the fourth well would be underutilized. MPWMD is working to ensure that the Cal-Am system is modified to allow for full use of the fourth ASR well, and to plan for construction and utilization of two more wells. Cal-Am has prepared an alternatives analysis that proposes system improvements to enable full utilization of six ASR wells. One component of the Regional Water Project is construction of conveyance facilities that would meet the requirements for additional well production. MPWMD staff is working with Cal-Am to develop a plan for system improvements prior to commencement of the Regional Project. One option is to build a new pipeline from Carmel Valley and over a roadway owned by Tehama.

4. Progress Report on Water Projects 1 (Underground Storage) and 2 (Expanded Storage)

Mr. Oliver reported that electrical controls should be installed at the chemical/electrical building at the Water Project 1 site by December 1, 2011. Construction will begin soon on a well at the Seaside Middle School, the first of two wells at the Water Project 2 site. The well should come on-line for injection purposes by December 1, 2011. Eventually a backflush pond will be constructed there, but until that time, the backflush water will be transported to the Water Project 1 site. In the future, a permanent pipeline must be installed to allow the processing of water from several wells at the Water Project 1 site. The MPWMD will request an easement from the City of Seaside for use of about 1/3 acre of property for the pipeline installation. The State Water Resources Control Board permit for Water Project 2 should be issued by the end of July, 2011.

5. Update on Potential for Water Project 3 (Local Desal) within District Boundaries

Mr. Hampson reported that the District must develop an estimate of the size of the footprint for a desalination facility at the site under consideration: the abandoned City of Monterey wastewater treatment plant site owned by the U.S. Navy. There are size limitations due to the presence of two underground storage tanks at the site. District staff will work with the Navy and residents in neighborhoods nearby to ensure that any project constructed there will be aesthetically pleasing. The proposal is that the desal palnt would be served by direct ocean intake. There is no prohibition of direct ocean intake, but there are environmental concerns that must be resolved. District staff was encouraged to continue coordination with the U.S. Navy on development of a desalination project, so that a report could be given at the August 25, 2011 Water Supply Projects Alternatives Workshop.

6. Update on Development of Recycled Wastewater Alternatives

Mr. Fuerst reported that the Monterey Regional Water Pollution Control Agency (MRWPCA) is in the process of developing plans to form a Joint Powers Agency with the MPWMD and possibly the Marina Coast Water District on construction of a Groundwater Replenishment Project. The immediate need is to fund construction of a pilot project. Dennis Allion, member of the MRWPCA Board of Directors, and a Del Rey Oaks City Council Person, explained that Salinas Valley farmland is irrigated in the summer with highly purified wastewater from the MRWPCA regional treatment plant. There is potential to also provide reclaimed wastewater to the Monterey Peninsula five to eight months out of the year. The goal would be to produce and deliver the water for less than $2,000 per acre-foot. Chair Brower expressed support for development of a Joint Powers Agency with the MRWPCA, and offered to meet with agency representatives on the proposal.

George Riley addressed the committee during the public comment period. He asked how the public will be included in planning for this project, considering that public advocacy will be important, especially if a vote will be required to obtain financing for the project.

7. Update on Status of Carmel River Reroute/San Clemente Dam Removal Project

Mr. Fuerst reported that Larry Hampson, Acting Planning and Engineering Manager; and Kevan Urquhart, Senior Fisheries Biologist have been involved with sediment transport and fishery issues related to this project. A $10 million funding gap still remains for construction of the project, assuming Cal-Am receives approval to recover planning costs from the current rate case. If full funding is obtained, the current time-line calls for construction to begin in 2013.

Other Items

No discussion.

Set Date for Next Committee Meeting

The committee members agreed to meet on Thursday, August 11, 2011 at 11 am in the District office.

Adjournment

The meeting was adjourned at approximately 10:20 am.

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