AGENDA MONTEREY PENINSULA REGIONAL WATER AUTHORITY

6:00 p.m. Thursday, March 22, 2012 Chautauqua Hall th 16 Street and Central Avenue, Pacific Grove CA 93950

1. Call to Order 2. Roll call and introductions 3. Pledge of Allegiance 4. Reports from members of the Authority Board and staff 5. Receive report from the Technical Advisory Committee and provide direction, as needed 6. Public Comment for items not on the agenda 7. Approval of minutes (Action) 8. Discussion and consideration of scope and focus of the Authority as reviewed by the ad hoc committee (Action) 9. Items for future agendas (Information) 10. Discussion of future meetings 11. Adjournment
Chautauqua Hall is an ADA-accessible facility.

DRAFT MINUTES MONTEREY PENINSULA REGIONAL WATER AUTHORITY Thursday, March 8, 2012
1. CALL TO ORDER The meeting of the Monterey Peninsula Regional Water Authority was held in the City Council Chambers at Seaside City Hall, on the above stated date at the stated hour of 6:02 p.m. President Della Sala called the meeting to order. 2. ROLL CALL AND INTRODUCTIONS Present: Directors Bachofner; Della Sala; Edelen; Garcia, McCloud and Pendergrass. 3. PLEDGE OF ALLEGIANCE Director Bachofner led the Directors and public in the Pledge of Allegiance. 4. REPORT FROM BOARD MEMBERS AND STAFF Vice President McCloud thanked the City of Seaside for hosting tonights Authority meeting.

5. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA President Della Sala opened the meeting to public comment at 6:03 p.m. Ron Weitzman distributed a handout and urged the Authority members to consider all possible water options. President Della Sala closed the meeting to public comment at 6:07 p.m. 6. APPROVAL OF THE MINUTES President Della Sala opened and closed the meeting to public comment at 6:10 p.m. Director Edelen moved to approve the Minutes of the Regular Meeting of February 25, with amendments, seconded by Director Garcia, and approved unanimously. Director Bachofner moved to approve the Minutes of the Special Meeting of March 2, 2012, with amendments, seconded by Vice President McCloud, and passed unanimously.

7. DISCUSSION AND CONSIDERATION OF THE SCOPE AND FOCUS OF THE AUTHORITY Carmel City Administrator Jason Stilwell presented the staff report and read a document designed to provide a framework for the Authoritys proposed mission, long-term and short-term goals, and to delineate a range of issues facing the Authority. President Della Sala opened the meeting to public comment at 6:48 p.m. Harvey Billig; Nelson Vega; Roger Dolan; Ralph Rubio; Tom Rowley; George Riley; John Narigi and Ron Weitzman addressed the Authority. President Della Sala closed the meeting to public comment at 7:10 p.m. Director Garcia moved to approve the JPAs mission/vision/goals/focus as presented by staff and to ask the ad hoc committee to work on the language of the mission statement to (among other things) address legal lots of record and need for water for future growth and bring this back for adoption at the March 22 meeting, seconded by Director Pendergrass, and approved by a 4-2 vote (McCloud and Edelen dissenting).

8. AUTHORIZE PRESIDENT TO SPEAK ON BEHALF OF THE MPRWA AT THE MARCH 14, 2012 PUBLIC WATER MEETING President Della Sala opened and closed the meeting to public comment at 7:33 p.m. Director Bachofner moved to have President Della Sala speak on behalf of the Authority at the March 14 Public Water Forum, seconded by Director Edelen, and passed unanimously.

9. DISCUSSION AND CONSIDERATION OF AUTHORITY STAFF Carmel City Administrator Jason Stilwell presented the staff report. Vice President McCloud recused herself, citing a conflict with discussion of the Executive Director staff position, as she had sent the Authority members a letter of interest about this position after she is no longer Mayor of Carmel-by-the-Sea. President Della Sala opened the meeting to public comment at 7:42 p.m. George Riley, Ron Weitzman, Ralph Rubio, Libby Downey and Nelson Vega addressed the Authority. President Della Sala closed the meeting to public comment at 7:48 p.m.

Director Bachofner moved, at this time, to have neither an Executive Director nor a technical staff, recognizing that discussion of the Technical Advisory Committee is forthcoming, seconded by Director Garcia, and passed by a unanimous 5-0 vote (McCloud abstaining).

10. DISCUSSION AND CONSIDERATION OF TECHNICAL ADVISORY COMMITTEE AND APPOINTEES Carmel City Administrator Jason Stilwell presented the staff report. President Della Sala opened the meeting to public comment at 8:02 p.m. Tom Rowley, Ron Weitzman, John Narigi, Skip Keysers, and Nelson Vega addressed the Authority. President Della Sala closed the meeting to public comment at 8:19 p.m. Director Garcia moved to appoint a seven-person Technical Advisory Committee, comprised of the following members: Roger Dolan; George Riley; a representative from the Monterey Business Coalition; a representative from the Monterey Regional Water Pollution Control Agency; a representative from the Monterey Water Management District; a representative from the City of Seaside; and Bill Reichmuth, seconded by Director Edelen, who added that the possibility of future membership expansion should be considered, and passed by a 5-1 vote (McCloud dissenting).

11. DESIGNATION OF OFFICERS Carmel City Administrator Jason Stilwell presented the staff report and said that there had been a request for Directors Garcia and Edelen to switch roles as officers. (At the February 9 meeting, Edelen was elected Secretary and Garcia was elected Treasurer). President Della Sala opened and closed the meeting to public comment at 8:48 p.m. Director Pendergrass moved to approve the reversal of roles between Directors Edelen and Garcia, with Edelen becoming Treasurer and Garcia becoming Secretary, seconded by Director Edelen, and passed unanimously.

12. ITEMS FOR FUTURE AGENDAS A suggested item for the next meeting was having a discussion of a representative for the unincorporated area of the County.

13. DISCUSSION OF FUTURE MEETINGS The next meeting of the Authority will be held in the City of Pacific Grove at 6:00 p.m. on Thursday, March 22. The location will be Chautauqua Hall, at the corner of 16th Street and Central Avenue. President Della Sala also reminded the Authority and public of the Water Forum scheduled for 6:00 p.m. on Wednesday, March 14, at the Oldemeyer Center in Seaside, and encouraged attendance at that event.

14. ADJOURNMENT The meeting was adjourned at 8:53 p.m.

_____________________________________ Carmelita Garcia, Secretary

Goals-based (long-range plan)

(Mission) The MPRWA exists to promote timely development of supplemental and replacement water projects, to cooperate with the Monterey Peninsula Water Management District, the Monterey Regional Water Pollution Control Agency, and California American Water while not duplicating or replacing their missions, and to provide a means for representation in the governance of the Authority that is directly accountable to the residents and businesses receiving a water supply from the supplemental and replacement water projects at a reasonable cost to sufficiently meet the water needs of city and county general plans. (Vision) The Monterey Peninsula will have a stable and reliable water supply as a result of new water supply projects (after which the MPRWA may sunset) to replace water supplies lost because of administrative and court orders. What goals will be achieved between now and December 31, 2016? Goal 1: Ensure the selection of supplemental and replacement water projects are the most cost effective possible that can be delivered to meet ordered deadlines while representing Monterey Peninsula ratepayers of California American Water. Goal 2: Present a unified political and public voice to the California Public Utilities Commission in support of the ultimate replacement water project. What specific objectives are needed to achieve each goal? Objectives for Goal 1: G1a: Maintain a transparent process for open deliberation and articulation of MPRWA preferences and concerns regarding any replacement water supplies for the Monterey Peninsula ratepayers; G1b: Maintain a working relationship on the supplemental and replacement water project with California American Water and other water supply agencies from permit entitlements through construction, and through full operation of all of the components of the supplemental and replacement water project; G1c: Assure financing project costs are as low as feasible including utilizing state revolving funds and other financial sources (for example, bonds, grants, loans, and federal or other state funds). Objectives for Goal 2: G2a: Serve a leadership role in the entitlement and approval process; G2b: Maintain cohesiveness among the members of the MPRWA and the project partners.

March 22, 2012

Issue-based (short-range plan)

Issue 1: Issue 2: California American Water recommending a project Vetting the recommended project

Identify ideas that address each issue (9-12 months) Ideas for Issue 1: It is our understanding that after many years of reviewing more than eleven proposals for a supplemental and replacement water project, with the assistance of the California Public Utilities Commission (CPUC) and the RBF Consulting report of 2011, California American Water will recommend a project to the CPUC by April 23, 2012; b) We believe the supplemental and replacement water project will be a portfolio approach, utilizing multiple sources of water to serve as the water supply to the Monterey Peninsula; c) The Authority should immediately utilize a Technical Advisory Committee to analyze the three proposed desalination projects to determine if any will meet the December 31, 2016 timeline, be cost effective, and provide the necessary volume of water supply. a) Ideas for Issue 2: a) After California American Water's selection is known, it will be the goal of the MPRWA to vet that choice by having the technical advisory committee review California American Waters decision-making in selecting the project and validating that choice in a public meeting or meetings of the MPRWA. b) Should the MPRWA technical advisory committee find that California American Waters choice of the water supply portfolio is lacking in any way, the MPRWA will coordinate and deliver that message to the California Public Utilities Commission and California American Water for further consideration by California American Water, resulting in appropriate adjustments to the supplemental and replacement water project or reasons those adjustments are not necessary. c) This short term goal should take no longer than three months from April 23, 2012, the date of the California American Water submission of the recommended project to the California Public Utilities Commission.

March 22, 2012

Goals-based (long-range plan)

(Mission) The MPRWA exists to promote timely development of supplemental and replacement water projects, to cooperate with the Monterey Peninsula Water Management District, the Monterey Regional Water Pollution Control Agency, and California American Water while not duplicating or replacing their missions, and to provide a means for representation in the governance of the Authority that is directly accountable to the residents and businesses receiving a water supply from the supplemental and replacement water projects at a reasonable cost to sufficiently meet the water needs of city and county general plans. (Vision) The Monterey Peninsula will have a stable and reliable water supply as a result of new water supply projects to replace water supplies lost because of administrative and court orders after which the MPRWA may sunset.

What goals will be achieved between now and December 31, 2016? Goal 1: Ensure the selection of supplemental and replacement water projects are the most-cost effective possible that can be delivered to meet ordered deadlines while representing Monterey Peninsula ratepayers of California American Water. Present a unified political and public voice to the California Public Utilities Commission in support of the ultimate replacement water project.

Goal 2:

What specific objectives are needed to achieve each goal? Objectives for Goal 1: G1a: Maintain a transparent process for open deliberation and articulation of MPRWA preferences and concerns regarding any replacement water supplies for the Monterey Peninsula ratepayers; G1b: Maintain a working relationship on the supplemental and replacement water project with California American Water and other water supply agencies from permit entitlements through construction, and through full operation of all of the components of the supplemental and replacement water project; Assure financing project costs are as low as feasible including utilizing state revolving funds and other financial sources (for example, bonds, grants, loans, and federal or other state funds).

G1c:

Objectives for Goal 2:

G2a: G2b:

Serve a leadership role in the entitlement and approval process; Maintain cohesiveness among the members of the MPRWA and the project partners.

Issue-based (short-range plan)

Issue 1: Issue 2: California American Water recommending a project Vetting the recommended project

Identify ideas that address each issue (9-12 months) Ideas for Issue 1: a) It is our understanding that after many years of reviewing more than eleven proposals for a supplemental and replacement water project, with the assistance of the California Public Utilities Commission (CPUC) and the RBF Consulting report of 2011, California American Water will recommend a project to the CPUC by April 23, 2012; b) We believe the supplemental and replacement water project will be a portfolio approach, utilizing multiple sources of water to serve as the water supply to the Monterey Peninsula; c) The Authority should immediately utilize a Technical Advisory Committee to conduct a survey of identified projects an analysis analyze the three proposed desalination projects to determine if any will meet the December 31, 2016 timeline, be cost effective, and provide the necessary volume of water supplyand a major milestone schedule of the four projects identified for further review in the October 26, 2011 BASE consulting report. Ideas for Issue 2: a) After California American Water's selection is known, it will be the goal of the MPRWA to vet that choice by having the technical advisory committee review California American Waters decision-making in selecting the project and validating that choice in a public meeting or meetings of the MPRWA. b) Should the MPRWA technical advisory committee find that California American Waters choice of the water supply portfolio is lacking in any way, the MPRWA will coordinate and deliver that message to the California Public Utilities Commission and California American Water for further consideration by California American Water, resulting in appropriate adjustments to the supplemental and replacement water project or reasons those adjustments are not necessary. c) This short term goal should take no longer than three months from April 23, 2012, the date of the California American Water submission of the recommended project to the California Public Utilities Commission.