EXHIBIT 19-E

FINAL MINUTES

Water Demand Committee of the

Monterey Peninsula Water Management District

August 10, 2006

Call to Order

The meeting was called to order at 9:03 AM in the conference room of the Monterey Peninsula Water Management District office.

Committee members present: Larry Foy, Chair

David Pendergrass

Kristi Markey (arrived at 9:05 AM)

Staff members present: David A. Berger, General Manager

Stephanie Pintar, Water Demand Manager

Arlene Tavani, Executive Assistant

Comments from Public

Bill Reichmuth, representing the City of Monterey, stated that he would comment during discussion of item 2.

Action Items

1. Receive Minutes of January 23, 2006 Committee Meeting

On a motion by Director Pendergrass and second by Director Foy, the minutes were received on a vote of 2 – 0. Director Markey was absent for the vote.

2. Discuss Edits to Ordinance No. 125, Including Possible Addition of Public Water Credit Transfer Clarification Language to Rule 28

Director Markey made a motion to recommend to the Board that language of Rule 28 in draft Ordinance No. 125 be changed to include references to “commercial” and “industrial” uses to track the original language of Ordinance No. 71 and clarify the title of the rule. At a future meeting of an appropriate committee or the Board, a discussion should be scheduled on how to achieve the goal of allowing public agencies to transfer water credits into their own allocation between non-contiguous properties. The motion was seconded by Director Foy and approved unanimously on a vote of 3 - 0. The committee also requested that District Counsel Laredo provide a revised confidential opinion on the issues to the Directors prior to the August 21, 2006 Board meeting.

Director Markey made a motion to approve the staff recommendation that: (1) the words “Commercial Use or Industrial Use” be added to Rule 28-B.5 and the definitions section; and (2) the ordinance should be clarified to state that the 15 percent mandated conservation savings from retrofits is not available for transfer. The 15 percent is intended to be applied to the District’s goal of reducing water use by 15 percent by the year 2020. The motion was seconded by Director Foy and approved on a vote of 3 – 0.

During the public comment period, Bill Reichmuth stated that the City of Monterey is concerned about providing sufficient water to the Defense Language Institute to meet the requirements of an increasing student population due to the need for additional military translators. Water is also needed for the proposed public service center, for public restrooms along the Monterey Bay Sanctuary Scenic Trail, for an assisted living center, animal shelter and many other projects. Monterey also has 35 projects on its water waiting list. He explained that the entire Monterey Peninsula has worked hard to insure that the Naval Postgraduate School, Fleet Numerical, Presidio of Monterey, and the Ord Military Committee remain an integral part of the community. The more flexibility the District can grant the jurisdictions in how to earn and transfer water credits the better off the community will be. Mr. Reichmuth recommended that the Board allow all types of property to jurisdiction water credit transfers (residential, commercial, governmental), so that jurisdictions could disburse water credits within their communities as needed. He also proposed that inter-jurisdictional transfers be facilitated. He noted that the Fort Ord Reuse Authority (FORA) has established a committee to investigate the possibility of inter-jurisdictional transfers. FORA would like to transfer water no longer needed at the Ord Military Community to the Defense Language Institute. He expressed a concern that the District has not addressed new ways to facilitate construction of affordable housing.

3. Discussion of MRWPCA Groundwater Replenishment Project Public Outreach

Lois Humphreys of TRG Associates was retained by the Monterey Regional Water Pollution Control Agency (MRWPCA) to develop a public outreach program on the Groundwater Replenishment Project under development by the MRWPCA. Ms. Humphreys and the committee members discussed ways to effectively introduce the project to the community. General Manager Berger explained that the Water Demand Committee was authorized by the Board to serve as liaison to the MRWPCA on development of the Groundwater Replenishment Project.

4. Discuss Appropriate Water Use Factor and Provide Feedback for Day Spas – Table II: Commercial Water Use Factors

Director Pendergrass made a motion that was seconded by Director Markey to present a resolution to the Board that would authorize the addition of a footnote to Table 2: Non-Residential Water Use Factors indicating that Day Spas that offer “wet” services will be permitted under Rule 24-G, Special Circumstances with Substantial Uncertainty. The motion was approved unanimously on a vote of 3 – 0. No public comment was presented to the committee during consideration of this item.

5. Schedule Date for September 2006 Committee Meeting

The meeting was scheduled for September 21, 2006 at 9 AM.

Other Items

No discussion.

Adjournment

The meeting was adjourned at approximately 10:20 AM.

U:\staff\word\boardpacket\2007\2007boardpackets\20070521\InfoItems\19\item19_exh19e.doc

A Tavani/5-2-07/Final Minutes/2 pages