Attachment 1

FINAL DRAFT

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT (MPWMD)

STRATEGIC PLANNING RETREAT

April 19, 2007

MISSION STATEMENT

The mission of the Monterey Peninsula Water Management District (MPWMD) is to manage,

augment and protect water resources for the benefit of the community and the environment.

VISION STATEMENT

The MPWMD:

1) will strive to serve as a catalyst in collaboration with public and private entities for environmentally responsible solutions that result in a reliable and legal water supply; and

2) shall be a fiscally responsible, professionally and publicly respected leader in

managing water resources.

CORE VALUES

(Not in priority order)

MPWMD values…

Collaboration and teamwork

Ethical behavior

Environmental responsibility

Fiscal responsibility

Quality service internally and externally

Professionalism

Technical accuracy

A positive attitude

THREE-YEAR GOALS

(2006-2009 * Not in priority order)

Establish respectful and effective relationships among the District, public, CAW, jurisdictions and the Watermaster

Determine and participate in long-term water supply solution(s)

Complete ASR Phase 1 and expanded ASR Project(s)

Enhance revenue from external resources

Enhance and protect the water resources of the Carmel River and the Seaside Ground Water Basin for the benefit of the environment and the community

FINAL DRAFT

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT (MPWMD)

SIX-MONTH STRATEGIC OBJECTIVES

April 19, 2007 – September 30, 2007

B THREE-YEAR GOAL: Establish respectful and effective relationships among the District, CAW, public, jurisdictions and the Water Master

WHEN	WHO	WHAT	STATUS			COMMENTS
			DONE	ON TARGET	REVISED
1. On August 30, 2007	Board	Hold a special meeting with the CAW General Manager to learn about the operation and regulation of CAW Monterey Division (see suggestion #1 from attached document approved by the Board on 2/22/07).
2. By August 31, 2007	General Manager (lead) and the Public Information Coordinator	Develop and implement a procedure to implement suggestions #3 and #4 from the document approved on 2/22/07 for improving understanding and cooperation between CAW and MPWMD (see attachment at the end of this record).
3. By September 30, 2007	Public Outreach Committee (Board Member Michelle Knight-lead), the General Manager and the Water Demand Manager	Develop a Public Outreach Plan to educate the public on District activities and regulation changes.
4. By September 30, 2007	General Manager (lead) and Board Members	Make a presentation to each jurisdiction regarding water issues affecting the jurisdictions.
5. By September 30, 2007	Water Demand Manager (lead) and TAC	Document and implement a process for educating the jurisdictions and the public on changes to District permit regulations.
6. By September 30, 2007	Senior Hydrogeologist	Initiate work under the initial contract with the Seaside Basin Watermaster and determine, in conjunction with the Watermaster, the amount and type of District technical services required to complete and implement the Monitoring and Management Plan.

FINAL DRAFT

B THREE-YEAR GOAL: Determine and participate in long-term water supply solution(s)

WHEN	WHO	WHAT	STATUS			COMMENTS
			DONE	ON TARGET	REVISED
1. Ongoing	General Manager and District Counsel (co-leads)	Continue active participation in PUC Coastal Water Project (CWP) process, including environmental review and Department of Ratepayer Advocates processes.
2. Ongoing	Senior Hydrogeologist	Provide technical support or guidance to the MRWPCA for its Groundwater Replenishment Project in the Seaside Basin.
3. By June 30, 2007	General Manager	Present to the Board for consideration an MOU for participation in the Monterey Bay Regional Water Solutions Task Force to evaluate regional water solutions.
4. By September 30, 2007	General Manager	Present to the Board the Community Advisory Committee Report on projects listed in the matrix of water supply alternatives.
FUTURE: By the November 2007 Board meeting	District Engineer (lead) and Project Manager	Refine the matrix of water supply alternatives (using the quantified supply target) to incorporate results of the revised Bookman-Edmonston/GEI report evaluating desalination projects.

FINAL DRAFT

C THREE-YEAR GOAL: Complete ASR Phase 1 and expanded ASR Project(s)

ASR PHASE 1 OBJECTIVES:

WHEN	WHO	WHAT	STATUS			COMMENTS
			DONE	ON TARGET	REVISED
1. By May 31, 2007	District Engineer	Secure SWRCB water rights permit for Phase 1 ASR project (if not, ASR team will prepare for water rights hearing).
2. By September 30, 2007	Senior Hydrogeologist	Complete Well #2 for Phase 1 ASR, including final facilities design and contractor selection.
3. By September 30, 2007	Senior Hydrogeologist	Determine the feasibility of a dual-well injection test and report the results to the General Manager.
4. By September 30, 2007	Senior Hydrogeologist, in cooperation with CAW	Facilitate determination and schedule for completion of necessary infrastructure improvements to the CAW system to ensure they are in place to support Phase 1 ASR.
5. By September 30, 2007	District Counsel	Confirm water storage rights with the Watermaster.

EXPANDED ASR PROJECT(S) OBJECTIVES:

WHEN	WHO	WHAT	STATUS			COMMENTS
			DONE	ON TARGET	REVISED
1. By June 30, 2007	Team Water Rights (General Manager-lead, General Counsel, District Engineer, Water Resources Manager, Senior Hydrogeologist and Senior Fisheries Biologist)	Complete negotiations with CAW for joint ownership of water rights, to obtain future ASR and other water rights permit(s).
2. By August 31, 2007	Water Resources Manager, in cooperation with CAW	Develop a project description and yield estimate for expanded ASR and present to the Board.

FINAL DRAFT

DTHREE-YEAR GOAL: Enhance revenue from external resources

WHEN	WHO	WHAT	STATUS			COMMENTS
			DONE	ON TARGET	REVISED
1. By May 31, 2007	General Manager (lead) and Water Demand Manager	Complete reimbursement agreement for the Conservation Program with CAW.
2. By June 30, 2007	District Engineer	Complete and submit to the Board for action the IRWMP (Integrated Regional Water Management Plan) to compete for State grant funds.
3. By July 31, 2007	Water Resources Manager	Apply for 100% NMFS/CAW settlement agreement funding of the Water Intake Retrofit Project at the Sleepy Hollow Fish Rearing Facility.
4. By August 31, 2007	Chief Financial Officer (lead), Administrative Committee and the Board	Secure funding through a debt issuance for ASR Phase 1.
5. By September 30, 2007	Chief Financial Officer (lead), General Counsel and the Administrative Committee	Monitor the future CPUC rate increase requests and project potential impact on MPWMD.

FINAL DRAFT

ETHREE-YEAR GOAL: Enhance and protect the water resources of the Carmel River and the Seaside Ground Water Basin for the benefit of the environment and the community

WHEN	WHO	WHAT	STATUS			COMMENTS
			DONE	ON TARGET	REVISED
1. Beginning immediately and ongoing	Board Member David Potter (lead) and the District Engineer	Provide support data and participate in the Big Sur Land Trust Carmel River Parkway Project.
2. At the August 2007 Board meeting	Water Demand Manager	Present to the Board for direction the amendment of Rule 23 to reflect new metering technology.
3. At the August 2007 Board meeting	Water Resources Manager (lead) and the Water Demand Manager	Present to the Board for their discussion a possible environmental trigger related to stream flow that would require existing conservation measures during low-flow years.
4. At the August 2007 Board meeting	General Counsel	Present to the Board for direction an ordinance to amend the process by which the District enforces its rules and regulations.
5. By September 30, 2007	Water Demand Manager (lead) and Water Resources Manager	Present to the Board for its consideration an ordinance that will include all areas of the Seaside Basin so they are subject to the Expanded Conservation and Standby Rationing Plan.
6. By September 30, 2007	Water Demand Manager (lead) and Water Resources Manager, working with CAW and the Seaside Municipal Water System, and in consultation with the Watermaster	Present to the Water Demand Committee a draft contingency plan to implement Stages 5-7 of the Expanded Conservation and Standby Rationing Plan in case of drought.

List of Suggestions for Improving Understanding and Cooperation between California American Water and the MPWMD

Adopted February 22, 2007

1. Conduct a televised workshop on August 30, 2007 that would provide Steven Leonard, General Manager of the Monterey Division, California American Water (CAW), the opportunity to educate the Board and public about how a regulated utility is operated and funded. He could describe: (a) the physical system including the number of tanks, pumps and customers CAW serves locally; (b) the regulatory process; (c) operating costs and the interaction between capital and operations; (d) how capital budgets are developed and the associated priorities; and (e) how the Public Utility Commission regulates profits through a public process. Mr. Leonard would like to explain why customers pay higher rates for less water, and that rates pay for maintenance and operation of the entire water system, even if only 60 percent of the available water is utilized. Mr. Leonard suggested that another subsequent workshop could be focused on describing the tiered rate system. Mr. Leonard shall submit an outline of the presentation to the Public Outreach Committee for review prior to the August 30, 2007 workshop.

2. Mr. Leonard invited the District Board members to tour CAW facilities to increase their understanding of the complicated system they are regulating. The Board should make a visit to San Clemente Dam and view the siltation that has occurred. Directors should also see the Seaside Basin wells. These tours could be arranged without the participation of the press.

3. CAW could inform the District before it begins infrastructure improvements, such as replacement of a water main in a sensitive area. The District would then be prepared to make statements in support of the work when warranted. This would alleviate confusion among members of the public as to whether or not the District was in someway responsible for the project.

4. CAW and the District should jointly develop press releases on projects they are developing cooperatively.

5. For issues that have potential as publicly reported disagreements, CAW and the District commit to discussion in order to reach a common understanding of the facts, and mutual recognition of divergent perspectives.

WHAT ARE THE STRENGTHS AND THE ACCOMPLISHMENTS OF THE MPWMD SINCE THE SEPTEMBER 25, 2006 STRATEGIC PLANNING RETREAT?

Brainstormed Individual Perceptions:

• we have better public relations
• we’ve set our goals
• improved relationship with Watermaster participants
• we set a long-term water supply goal with our jurisdiction as partners (17,000 acre feet per year)
• initiated enforcement actions for improper Carmel River works
• coordination with California American Water (CAW) on Phase 1 and Phase 2 water rights
• strengthened relationship with California Public Utilities Commission, Division of Ratepayer Advocates (CPUC DRA) staff
• added the salt water vessel on the matrix
• completed our own District meeting space
• successful open house
• got the rules and regulations on the web
• agreed on 5 ways to improve CAW/District relationships
• in process of completing implementation guidelines for water distribution permits
• took all existing committees and clarified their reason for being (e.g., mission, charge, goals)
• expanded the Rebate Program
• we resolved the GASB concerns related to unfunded liabilities related to our retirement plan for employees
• Phase 1 ASR well is dug
• better relationship with the County
• completed Lagoon Plan
• better relationships with the jurisdictions
• dedicated staff
• established spending priority for steelhead
• CD for water wise gardening
• coordination with CAW on conservation
• budgeted to add to the financial reserves
• Watermaster approved service contract (yesterday)
• completed nearly all backlogged water distribution permits
• obtained temporary water rights for ASR
• in process of developing better tools for data access and sharing
• had a clean financial audit
• provided leadership in preparing Integrated Regional Water Management (IRWM) Plan—State grant
• actively participated in the Technical Committee for the Water Master
• passed a resolution supporting Reclamation Project by Monterey Regional Water Pollution Control Agency (MRWPCA)
• updated water supply matrix
• addressed all of the strategic objectives from the strategic plan
• completed 2006 Mitigation Report
• approved scripts for the PR video
• successfully reared steelhead in 2006
• cosponsored Water Awareness Committee of Monterey County’s successful Landscape Symposium
• gave numerous presentations to groups and organizations regarding District activities
• established a Community Advisory Committee
• developed presentation to bring to our jurisdictions
• simplified and clarified the water permit process
• simplified and clarified the fees and charges table
• completed 2006 Annual Report
• all active wells are in compliance with our water distribution permits
• Forest Lake Reservoir rededicated
• District’s GIS Plan and implementation is being used by various organizations all over the state
• complied with State Water Resources Control Board (SWRCB) Order 9510
• complied with Seaside adjudication production limits
• established working relationship with new CAW management
• we finished the research and development for the fish ladder video

WHAT’S NOT GOING AS WELL AS YOU WOULD LIKE INTERNALLY WITH MPWMD?

Brainstormed Individual Perceptions:

• not enough being done for river environment
• frustration with lack of classification study
• no new water supply
• outdated IT equipment and software
• ASR well #2 problem not solved
• constrained financial resources
• frustration by public at lengthy processing time for Water Distribution System (WDS) permits and pre-apps
• no water rights for ASR
• not enough emphasis on public information
• website difficult to navigate and not user friendly (e.g., length of web address)
• difficulty getting access remotely to our data collection equipment
• funding for ASR Phase 1 not completed
• did not make the presentations to the County, Cities and Airport
• didn’t complete the reimbursement agreement
• District’s comments on CAW’s water rate increases not fully accepted by CPUC
• ASR not operable in dry years
• salary/compensation concerns
• public’s perception of us is still that we are mean and dysfunctional
• public confusion with CAW’s and District’s functions
• not enough trained staff working on water distribution permits
• have not gotten an expanded ASR Plan
• not enough being done about time management response to public
• loss of experienced Board members anticipated
• have not convinced public that District fisheries staff is coordinating with agencies
• public misperception regarding basis of water conservation stages
• lack of completion of pipeline from Canyon del Rey to Hilby
• public’s confusion of different water agencies’ functions
• public’s perception of target yield goals and how they will be achieved financially
• the Database Project has not been completed

EXTERNAL FACTORS/TRENDS THAT WILL/MIGHT HAVE A POSITIVE IMPACT ON MPWMD IN 2007/2008

Brainstormed Individual Perceptions:

• desalination
• Desalination Pilot Project
• heightened awareness of the broad public of the environment and global warming
• Prop 50, 84 and 1E
• active PUC process on Coastal Water Project (CWP)
• lots of public education groups focusing on water
• a critically dry water year
• new technology
• use of our GIS Implementation Plan by other agencies (e.g., State Department of Water Resources (DWR) and SWRCB)
• implementation of 2006 Conservation Agreement between CAW and National Oceanographic and Atmospheric Administration (NOAA Fisheries)
• positive working relationship with the Water Master
• strong relationships with State legislators
• superb local CAW leadership
• approved increased rates
• improved regional collaborative management for water
• multi-pronged approach to solutions
• the Governor is talking about reservoir capacity
• increased public awareness of drought and water conservation
• growing acceptance of recycled water
• more cooperation within the cities
• getting a date from the State for a water rights hearing
• better public data access after the water demand database is completed

EXTERNAL FACTORS/TRENDS THAT WILL/MIGHT HAVE A NEGATIVE IMPACT ON MPWMD IN 2007/2008

Brainstormed Individual Perceptions:

• potential failure of the Water Master to meet the judicial mandate
• greater enforcement of SWRCB 95-10
• potential flood
• complete sedimentation at San Clemente Reservoir
• public vs. private water ownership
• not enough water for Phase 1 ASR
• sale of part of CAW’s holdings (spin off)
• CAW transition in its general counsel
• lack of publicly-held land, water and wells
• change in California Department of Health Services (CDHS) regulation of CAW wells treatment requirements
• multiple CAW filings with PUC
• litigation de-listing steelhead
• loss of storage capacity in Los Padres Reservoir
• pandemic flu
• public confusion regarding the different water agencies
• CPUC delay of EIR process for CAW Project
• SWRCB delays on water rights issues
• high rate of applications for water distribution permits
• competing and incompatible water projects
• potential drought
• permit failure—lack of ability to get needed permits
• greater regulations from National Marine Fisheries and the Marine Sanctuary
• coastal erosion issues affecting desal location
• sea rise
• potential failure of CAW infrastructure
• litigation
• threat of terrorism
• development
• catastrophic fire
• threats to IT security infrastructure, including telecommunications equipment, and District data
• seawater intrusion
• rising electric energy costs
• unfunded mandates impacting fish rearing facility
• threat to economy and affordability of water
• pending protests on District’s water rights

BRAINSTORMED CORE VALUES

• Openness
• Stubbornness
• Honesty
• Collaboration
• Teamwork/team player
• Quality control high standards
• Fairness
• Customer service
• Initiative
• Public orientation
• Problem solving
• Being respected
• Technical rigor
• Ethical
• Good data
• Passion for what we do
• Self-starters
• Speaking softly and carrying a big stick
• Knowledge
• Environmental responsibility
• Fiscal responsibility
• Realism
• Innovation
• Adaptability
• Integrity
• Creativity
• Respectfulness
• Accuracy
• Enthusiasm
• Positive attitude
• Family atmosphere
• Energetic
• Fun
• Independence
• Professionalism
• Courtesy
• Knowing what you can change and what you can’t
• Making a difference
• Not giving up
• Optimism
• Humility
• Sensitivity
• Perseverance

* * *

WHAT ARE THE PROS OF ESTABLISHING A CAMPAIGN FINANCE ORDINANCE?

Brainstormed List:

• fairness
• accountability
• transparency
• levels the playing field
• representation by the people
• representation for the people
• ethical

WHAT ARE THE CONS OF ESTABLISHING A CAMPAIGN FINANCE ORDINANCE?

Brainstormed List:

• breeds mistrust among the Board members
• limits a segment of the community from participating
• being labeled
• limits the potential ability to get funding for an election
• suggests there is a problem to begin with
• an excessive layer beyond the California Fair Political Practices Commission (FPPC) rules
• problems with enforcement
• inherently questions integrity
• presumes guilt upon candidates
• could put a financial burden on a candidate to have to use their own funds that’s limiting those who could afford to run

NEXT STEPS/FOLLOW-UP PROCESS

WHEN	WHO	WHAT
April 20, 2007	Arlene	Distribute the strategic plan to the Board and Administrative Team.
April 25, 2007	All	Read the strategic plan record.
April 26, 2007	General Manager	Present strategic plan update to staff.
May 3, 2007	Administrative Team (General Manager-lead)	Review the “What’s Not Going As Well As You’d Like” list for possible action items.
May 21, 2007	Board	Adopt the strategic plan.
May 21, 2007	Administrative Committee (Director Edwards – lead)	Make a recommendation to the full Board whether or not to pursue a Campaign Finance Ordinance.
June 1, 2007	Arlene	Post strategic plan to the District’s website
Monthly	Board (Chair and Vice Chair-co-leads)	Monitor progress on the goals and objectives and revise objectives (add, amend and/or delete), as needed.
Monthly	Arlene	Prepare and distribute the Strategic Plan Update
January 9, 2008	Board and Administrative Team	Strategic Planning Retreat for a more thorough assessment of progress on the goals and objectives. Develop objectives for the next six months.

U:\Arlene\word\2007\BoardMeetings\Minutes\Final041907attach1.doc