EXHIBIT 1-A DRAFT MINUTES Special Meeting – Board Workshop Board of Directors Monterey Peninsula Water Management District February 2, 2004

The meeting was called to order at 2 PM in the District Conference Room. Directors present: Alvin Edwards, Chair – Division 1 Larry Foy, Vice Chair – Division 5 Judi Lehman, Division 2 Kristi Markey, Division 3 (arrived at 2:05 PM) Michelle Knight, Division 4 David Pendergrass, Mayoral Representative David Potter, Monterey County Board of Supervisors (arrived at 2:05 PM) Directors absent: None General Manager present: Fran Farina District Counsel present: David C. Laredo The assembly recited the Pledge of Allegiance. No comments were directed to the Board during Oral Communications. Rick Dickhaut, Chief Financial Officer, gave a presentation to the Board that is on file at the District office. The Board reviewed the goals outlined in the staff report and asked questions of staff. Chair Edwards noted that a decision had been made by the Chair and Vice Chair to first proceed with development of the Seaside Basin Management Plan, and then to develop ordinances regulating management of the Seaside basin. Henrietta Stern, Project Manager, explained that at the December 15, 2003 Board meeting, staff was directed to halt work on development of the Final Water Supply Project EIR until reports on geotechnical and geophysical testing on the proposed Sand City desalination project site were completed. The Board is scheduled to review results of the geotechnical and geophysical testing at the March 31, 2004 study session. In the future, the Board will direct staff as to whether or not to move into Phase 3 of EIR development, and if project level or program level studies should be pursued. Stephanie Pintar, Water Demand Manager, reported that the priorities in her division were to upgrade the filing and data management systems and development of a policy and procedures manual. If the Board decides to revise the commercial water use factors, funding will need to be identified for that project. Mr. Dickhaut stated that the draft 2004-2005 budget would be presented to the Board for consideration in May, and again in June 2004 for final adoption. Stephanie Pintar gave a presentation on this item that is on file at the District office. The Board discussed issues enumerated in the staff note. Chair Edwards stated that the consensus of the Board is that a new ordinance should allow the reassignment of water credits in the examples identified as scenarios 1 and 2 in the staff note and presentation. General Manager Farina stated that the Water Demand Committee would meet to develop a recommendation to the Board on the definition of “site” and “in process,” and how to handle scenarios 3 and 4. Director Markey requested that District Counsel prepare a legal opinion for the Board regarding the legal rights of property owners considered “in process.” This item would be considered by the Board at the February 19, 2004 meeting. The following comments were directed to the Board during the public comment period on this item. (1) Mitzi Dallas expressed concern regarding application of the rules for scenario 3. She asked how many applications for water credit transfers were pending. (2) Christine Gianoscol Kemp speaking on behalf of the Koppert application. She requested that her client’s project be considered in progress. (3) Craig Wilson asked staff if his application was one that would be considered “in process.” (4) Patricia Bernardi, a resident of Carmel Valley, asked Director Foy to restate his comment regarding a time period for ownership of a property prior to it being eligible for a water credit reassignment. (5) Tex Irwin reminded the Board that there are many persons that maintain gardens on contiguous lots. The Board should not eliminate the opportunity for those property owners to reassign water credits to those lots. (6) Robert Carver, an architect who has a client that would like to reassign water credits from one house to a contiguous lot. He stated that reassignments are based on the fixture-unit methodology so they will not increase water use. Staff was directed to place a Consent Calendar item on the February 19, 2004 Board meeting agenda, asking for Board authorization to request that the Technical Advisory Committee provide a recommendation on a methodology for projecting future water needs within 90 days. Henrietta Stern gave a presentation on this item that is on file at the District office. General Manager Farina stated that any changes to the rules regarding water distribution systems could not occur until June or July of 2004. Other priorities will take precedence. District Counsel Laredo briefly reviewed a document entitled History of the MPWMD Connection Charge that was distributed at the meeting and is on file at the District office. Director Potter excused himself from the meeting at 4 PM. Director Markey exited the meeting at 4:05 PM. Discussion of this item was deferred to a future meeting. General Manager Farina asked each Director to advise District staff as to his/her preference for receipt of District documents. No comments were directed to the Board during the public comment period. The meeting was adjourned at approximately 4:15 PM.

1. Call to Order/Roll Call 2. Pledge of Allegiance 3. Oral Communications 4. Identify Goals for Fiscal Year 2004-2005 5. Discuss Permits for Water Connections and Water Distribution Systems as Well as Methodology to Estimate Future Water Needs A. Provide Direction on Development of Water Credit Reassignment Rules B. Discuss Methodology Used to Project Jurisdictions’ Future Water Needs C. Review Rules and Regulations Governing Water Distribution Systems, and Discuss Potential Changes 6. Discuss Scope of Authority of Board, Committee Chair and General Manager 7. Direct Staff on Distribution of Documents to Directors 8. Comments from the Public 9. Adjournment

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Fran Farina, Secretary to the Board

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