MINUTES MONTEREY PENINSULA WATER AUTHORITY (MPRWA) TECHNICAL ADVISORY COMMITTEE (TAC) Regular Meeting 2:00 PM, Monday,

June 3, 2013 COUNCIL CHAMBER 580 PACIFIC STREET MONTEREY, CALIFORNIA Members Present: Members Absent: Staff Present: CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE REPORTS FROM TAC MEMBERS Chair Burnett invited reports from TAC members and staff. Member Huss reported that he had an opportunity to tour the Orange County Waste Water Production Facility and was very impressed. He believes it to be part of the solution to water shortages throughout California. Member Israel indicated the Notice to Proceed (NOP) for the Environmental Impact Report has been released for the Groundwater Replenishment project (GWR). A scoping session to receive comments on the NOP will take place June 18th, 2013 at the Oldemeyer Center from 6:00 p.m. to 8:00 p.m. Written comments will also be accepted. Chair Burnett reported about a modification to the schedule for the release of the Environmentla Impact Report (EIR) for the Monterey Peninsula Water Supply Project (MPWSP). Judge Weatherford released a revised schedule for the MPWSP EIR in order to provide more time for development of hydrogeological evaluations for inclusion. Chair Burnett indicated that having a strong EIR will benefit both the GWR and the MPWSP. Also, to understand how this impacts the timing of the project he will request Cal Am to present a revised schedule. He then reported that settlement discussions are ongoing and the final settlement agreement is due by June 14, 2013. June 12, 2013 the Public Utilities Commission (PUC) will host a workshop on GWR in San Francisco and will be open to the public. The GWR component of the settlement agreement is due by June 28th, 2013. Chair Burnett next reported that staff from the State Water Resources Control Board will be in Monterey On June 4, 2013, at which the Authority will make a presentation about our progress, and the level of local consensus for the proposed solutions and will not raise the issue of an extension at this time. Finally, Chair Burnett welcomed the new Executive Director Jim Cullem to the Authority, taking the place of Bill Reichmuth. Mr. Cullem responded that he appreciated the opportunity to serve and collectively get a solution to the water issue. Huss, Israel, Riedl, Burnett, Narigi, Stoldt, Riley, Legal Counsel, Executive Director, Clerk

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PUBLIC COMMENTS Chair Burnett opened the agenda for public comment and Sue McCloud requested information regarding the State Water Resources Control Board meeting. APPROVAL OF MINUTES 1. May 6, 2013 Action: Approved May 23, 2013 Special Meeting Action: Approved as Amended AGENDA ITEMS 3. Review and Provide Direction Regarding Term Sheet for Power Sales Agreement from the Monterey Regional Waste Management District to Cal Am for Powering Desalination Facilities Action: Received Presentation and Discussed William Merry, General Manager from the Monterey Regional Waste Management District presented the report and indicated that meetings have been ongoing for development of a term sheet for power sales for the desalination facility. He noted that the Districts interest is to develop a term sheet in good faith to discuss the purchase of the District's power. At this point, it is premature to discuss the technical aspects, however no fatal flaws have been identified, but matching up the supply and demand and determining a fair price will be key. Mr. Merry laid out the schedule for the possible next steps and indicated a next draft should be available by the end of this week. Mr. Merry answered questions from the TAC. Executive Director Cullem indicated he will facilitate a meeting later this week, with the Authority acting as a mediator/facilitator for the sale and purchase of power between MRWMD and Cal Am. Mr. Cullem requested one representative from each the Authority and Cal Am to meet with the District to be able to develop a true working draft before it is presented for approval. Member Reidl agreed to participate. Chair Burnett questioned the Districts ability at this time to deliver the quality and quantity of power to meet the demands of the project. Mr. Merry indicated they are not adequate at this time, but as soon as the true needs are determined, the District can begin to address. Chair Burnett then questioned what the priority would be, price or purchase of renewable power. Chair Burnett responded that Cal Am has previously indicated that the alternative sources of power cannot be more expensive than non-environmental power and that the Authority has not taken a position on it, but the idea for paying even more for renewable power was not been met with enthusiasm. Member Israel indicated it is not strictly who can provide the cheapest rates, but depends on the index to which it is adjusted.

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Chair Burnett opened the item to public comment and had no requests to speak. Member Israel spoke to Mr. Merry's expertise and questioned if there was a need to hire a specialist. Chair Burnett requested the Executive Director to provide advice to the TAC at a future meeting if a specialist is needed for either legal or technical expertise. 4. Discuss and Make Recommendations Regarding Revised Ground Water Replenishment Draft Criteria (Stoldt/Israel) Action: Received Presentation, Discussed and Made Recommendations Chair Burnet spoke to the item and indicated no action is needed, but requested feedback and opportunity for comments. He indicated that the proposed criteria is indented for use during the June 12, 2013 GWR workshop. The previously developed criteria was forwarded to the CPUC, but returned because it was not appropriate for a tier two advice letter. Trying to honor the criteria already approved, the proposed criteria was the result after a Governance Committee meeting, and includes more objectivity and less subjectivity. He requested the revised draft GWR criteria distributed at this meeting be available on the Authority website www.mprwa.org. Chair Burnett spoke to revisions made from the previously discussed version and the TAC discussed. Chair Burnett opened the item to public comment and had no requests to speak. Member Huss indicated that having the growers involved is of key importance and there is good opportunity for a successful water supply from the GWR project. He things the agricultural community will be satisfied with the language included to secure the source water. Chair Burnett indicated he will incorporate any additional information which comes from the workshop. 5. Receive Update and Discuss the Draft Request for Proposal for Design Build Services for the Monterey Peninsula Water Supply Project Action: Received Presentation and Discussed Chair Burnett reported on this item and indicated that the recommendations provided by the TAC were approved by the Directors and the Governance Committee and forwarded to Cal Am requesting incorporation. He confirmed that Cal Am has verbally agreed to incorporate all the recommendations into the final Request for Proposal. He noted that is unclear if the RFP will still stay on the current schedule with the CPUC ruling delaying the EIR release date. Member Riedl questioned the early completion bonus and expressed concern for the risk of having a bidder propose a longer schedule, in order to capture a bonus. He also recommended considering a bonus if the firm could bring a portion of the wells online in advance of the full completion as a way to make progress toward the Cease and Desist Order. Chair Burnett and the TAC agreed that would be a good recommendation and would pass along the request even though it is past the formal deadline. Chair Burnett opened item to public comment and had no requests to speak. Executive Director Cullem requested support for reproducing the article The Path To Your Tap published June 2, 2013 in the Monterey Herald. He indicated the Authority could benefit from 3

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already produced materials to be utilized as a resource for public outreach. The TAC agreed with the request. ADJOURNMENT With no other business to come before the authority, Chair Burnett adjourned the meeting at 3:14 p.m.

Respectfully Submitted,

Approved,

Lesley Milton, Authority Clerk

Jason Burnet, TAC Chair