EXHIBIT 1-A
DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District February 28, 2008
The meeting was called to order at 7:00 PM in the District Conference Room.	CALL TO ORDER/ROLL CALL
Directors Present: Judi Lehman, Chair – Division 2 Kristi Markey, Vice Chair -- Division 3 Alvin Edwards – Division 1 Regina Doyle – Division 4 Bob Brower – Division 5 David Pendergrass – Mayoral Representative David Potter – Monterey County Board of Supervisors Directors Absent: None General Manager present: David A. Berger District Counsel present: David C. Laredo
The assembly recited the Pledge of Allegiance.	PLEDGE OF ALLEGIANCE
The following comments were received during Oral Communications. (1) George Riley, resident of Monterey, expressed support for the Board’s intent to discuss completion of studies on the District’s proposed 8,400 acre-feet seawater desalination project in Sand City. He stated that the January 15, 2008 draft Cease and Desist Order (CDO) issued by staff of the State Water Resources Control Board (SWRCB) against California American Water (CAW) could result in the need to increase water conservation efforts in the District. One of the ways to save additional water, would be to require CAW to complete audits of commercial water users as mandated by the Public Utilities Commission. (2) Dale Hekhuis, a resident of Carmel, stated that the draft CDO requires CAW to reduce pumping from the Carmel River by too large a percentage, in too short of a timeframe. The draft CDO of adopted, could damage the economy on the Monterey Peninsula. He opined that the District could construct a 5,000 AF per year seawater desalination plant within a 5-year period that would contribute to a solution for the water supply problem. (3) Roy Thomas, Carmel River Steelhead Association (CRSA), stated that District staff should have investigated a report that one-third of the surface flow in the Carmel River was being illegally diverted by a pumper in the Cachagua area. He requested that the District develop new triggers for establishment of water rationing that would be based on criteria other than projected storage and Order 9510 production limits. The triggers should also take into consideration low-flow periods in the Carmel River, when the health of the environment is threatened.	ORAL COMMUNICATIONS
On a motion by Director Pendergrass and second by Director Edwards, the Consent Calendar was unanimously approved on a vote of 7 – 0.	CONSENT CALENDAR
Approved.	1.	Consider Adoption of Minutes of the January 24, 2008 Regular Board Meeting and the February 13, 2008 Strategic Planning Session
Approved.	2.	Receive Notice of Director Doyle’s Appointment of Clive Sanders to the Carmel River Advisory Committee
Approved.	3.	Consider Formation of Ad Hoc Legislative Advocacy Committee and Confirm Appointments to the Committee
Approved.	4.	Authorize Expenditure of Budgeted Funds for Purchase of a Back-Up Backpack Electrofisher for Carmel River Juvenile Steelhead Rescues
Approved.	5.	Consider Adoption of Resolutions 2008-02 and 2008-03 that Would Amend MPWMD Rules and Regulations – Rule 24, Table 1 – Residential Fixture Unit Count Values and Rule 25.5, Table 4 – Ultra-Low Consumption Appliance Credits
Approved.	6.	Consider Expenditure of Budgeted Funds for Production of 2007 MPWMD Annual Report
Approved.	7.	Consider Approval of a Proposed Letter by Chair Lehman Requesting that the “Sustainable Water Supply Program for Monterey County” PowerPoint Presentation by Lyndel Melton, RMC Water and Environment, be Made to the MPWMD Board
Approved.	8.	Consider Approval of Second Quarter Fiscal Year 2007-2008 Investment Report
Approved.	9.	Review and Accept Independent Audit Report for Fiscal Year 2006-2007
Approved.	10.	Consider Approval of Treasurer’s Report for November 2007
Approved.	11.	Consider Adoption of Treasurer’s Report for December 2007

	PRESENTATIONS
A summary of Mr. Bunosky’s presentation is on file at the District office and available for review on the District’s website. During the public comment period on item 12, Roy Thomas, CRSA, inquired as to how CAW accounts for the water that is taken out the Carmel River and injected into the Seaside Groundwater Basin through the District’s Aquifer Storage and Recovery Project. General Manager Berger explained that water is taken from the Carmel River during the winter is when river flow is high, and is stored in the Seaside Basin for use in the dry summer months. If 300 acre-feet of water is taken from the Carmel River in the winter, production from the Carmel River in the summer will be reduced by 300 acre-feet.	12.	Presentation by Tom Bunosky, Vice President of Operations for California American Water Regarding CAW’s Preliminary General and Conservation Rate Cases for 2009-2011 Recently Filed with the California Public Utilities Commission
The presentations given by Paula Landis, Chief of the San Joaquin District of the California Department of Water Resources, and Trish Chapman, Project Manager for the California Coastal Conservancy, are on file at the District office and available for review on the District’s website. Ms. Chapman stated that public meetings on the Bypass Alternative will be conducted in Carmel Valley on March 26, 2008. The location and time will be announced. In response to Director Markey’s inquiry, she also stated that the Coastal Conservancy would appreciate receiving a letter from the District expressing support for the Bypass Project.	13.	Presentation on San Clemente Dam Seismic Retrofit Final EIR/EIS Including Bypass Alternative by Paula Landis, Department of Water Resources and Trish Chapman, California State Coastal Conservancy
No report was presented.	14.	Water Supply Project Alternatives Update
	GENERAL MANAGER’S REPORT
Darby Fuerst, Water Resources Division Manager, presented the report. An outline of the presentation is on file at the District office and can be viewed at the District’s website. Mr. Fuerst reported that for the period of October 1, 2007 through February 25, 2008, California American Water (CAW) production from the Carmel River was 189 acre-feet under the limit of 3,650 established for that time period as a result of SWRCB Order 95-10. CAW production from the Coastal Subareas of the Seaside Basin for the same time period was 119 AF under the 1,393 AF production limit established in the Seaside Basin adjudication decision. Mr. Fuerst explained that in February 2008, CAW reduced its estimates of water produced from the Carmel River between November 12, 2007 and February 11, 2008, by 211 acre-feet after it was discovered that one of CAW’s production meters had malfunctioned.	15.	Status Report on California American Water Compliance with State Water Resources Control Board Order 95-10 and Seaside Groundwater Basin Adjudication Decision

	ATTORNEY’S REPORT
District Counsel Laredo stated that reports were provided to the Board on items 3.A through 3.J, and item 4, but no reportable action was taken.	16.	Report on 5:30 PM Closed Session of the Board
		3.	Conference with Legal Counsel – Existing Litigation (Gov. Code 54945.9 (a))
		A.	Application of California American Water Company to the Public Utilities Commission Application No. 04-09-019 – Coastal Water Project
		B.	Application of California American Water Company to the California Public Utilities Commission -- Application No. 07-02-023 -- Allowance for Funds Used During Construction (AFUDC) for its San Clemente Dam Memorandum Account
		C.	Application of California-American Water Company to California Public Utilities Commission for a Special Conservation Program and Design Modifications Rate in its Monterey District (Application No. 07-12-010) – Conservation Program Application
		D.	Application of California -American Water Company to California Public Utilities Commission for Authorization to Increase Revenues for Water Service in its Monterey District in the years 2009; 2010; and 2011 (Application No. 08-01-027) – General Rate Case
		E.	Application of California-American Water Company to Authorize Support Services for its Monterey District to the California Public Utilities Commission (Application No. 08-- - ) – General Rate Case
		F.	State Water Resources Control Board Permit No. 7130B
		G.	State Water Resources Control Board Permit No. 20808
		H.	State Water Resources Control Board Draft Cease and Desist Order WR 2008-00XX-DWR
		I.	MPWMD v. Nick Marotta, Jr., Gerda Marotta, and Does 1-100 -- Monterey County Superior Court Case No. M83498
		J.	MPWMD v. Roy Woods, Woods 1995 Trust, and Does 1-100 -- Monterey County Superior Court Case No. M83499
		4.	Public Employee Employment Agreement (Gov. Code 54957) – General Manager
	DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS)
Director Doyle reported that the Public Outreach Committee met on February 26, 2008. The committee would meet again on March 6, 2008 to complete their discussion of items that were deferred from the February 26 meeting. Director Potter announced that Governor Schwarzenegger appointed Ila Mettee-McCutchon to serve as the District 4 Supervisor. She will complete the term that was vacated upon the death of former Supervisor, Jerry Smith. He suggested that the District participate in the Ord Community Water Group meetings. Chair Lehman reported that the District conducted its annual Open House on February 7, 2008, and a Strategic Planning Session on February 13, 2008. She attended the Seaside Basin Watermaster meeting on February 6, 2008.	17.	Oral Report on Activities of County, Cities, Other Agencies/Committees/ Associations
	PUBLIC HEARINGS
Director Potter made a motion to adopt the Strategic Plan with the correction to the spelling of “Counsel” on page 2. In addition, the record of the Strategic Planning Session titled “Monterey Peninsula Water Management District Strategic Planning Retreat” should be amended on page 4 by deleting the word “Negative” from the heading “What Other External Impacts/Trends Might Have a Negative Impact On MPWMD?”. The motion was seconded by Director Pendergrass and adopted unanimously on a vote of 7 – 0. No comments were directed to the Board during the public hearing on item 18.	18.	Review and Consider Adoption of February 13, 2008 MPWMD Strategic Plan
Director Markey departed from the meeting at 9:10 PM prior to Board discussion and vote on item 19. On a motion by Director Edwards and second by Director Brower, the adjusted budget was approved unanimously on a vote of 6 – 0. Directors Brower, Doyle, Edwards, Lehman, Pendergrass and Potter voted in favor of the motion. Director Markey was not present for the vote. No comments were directed to the Board during the public hearing on item 19.	19.	Consider Adoption of Mid-Year Fiscal Year 2007-08 Budget Adjustment
	ACTION ITEMS
On a motion by Director Edwards, and second by Director Potter, the Board received the Final Report on Evaluation of Seawater Desalination Projects. The motion to receive was unanimously approved on a vote of 6- 0. Directors Brower, Doyle, Edwards, Lehman, Pendergrass and Potter voted in favor of the motion. Director Markey was not present for the vote. No comments were directed to the Board during the public comment period on item 20.	20.	Receive Final Report on Evaluation of Seawater Desalination Projects by Bookman-Edmonston/GEI Consultants
Director Doyle made a motion to request that the Board receive a report from District staff at the April 21, 2008 meeting on a preliminary scope and timeline for completion of a feasibility study on increasing the height or reconstructing the existing Los Padres Dam to increase its water storage capacity for environmental benefit purposes. The motion was approved unanimously on a vote of 6 – 0. Directors Brower, Doyle, Edwards, Lehman, Pendergrass and Potter voted in favor of the motion. Director Markey was not present for the vote. During the public comment period on item 21, Roy Thomas, CRSA, expressed support for the concept of maintaining Los Padres Dam or removing accumulated sediment to restore its original storage capacity. He also suggested that installation of a rubber dam on the spillway could increase safety and storage of the San Clemente Dam.	21.	Request of Director Bob Brower to Direct Staff to Prepare a Report on the Scope and Cost of a Feasibility Study Regarding Increasing the Height of, or Reconstructing, the Existing Los Padres Dam to Increase its Water Storage Capacity for Environmental Benefit Purposes
There was no discussion of the Informational Items/Staff Reports.	INFORMATIONAL ITEMS/STAFF REPORTS
	22.	Letters Received
	23.	Committee Reports
	24.	Carmel Fishery Report
	25.	Water Conservation Program Report
	26.	Monthly Allocation Report
	27.	Semi-Annual Groundwater Quality Monitoring Report
	28.	Monthly California American Water Production Report
	29.	Monthly Water Supply Status Repot
	30.	Semi-Annual Financial Report on the CAWD/PBCSD Wastewater Reclamation Project
The meeting was adjourned at approximately 9:45 PM.	ADJOURNMENT

______________________________

David A. Berger, Board Secretary

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