M I N U TE S MONTEREY PENINSULA REGIONAL WATER AUTHORITY TECHNICAL ADVISORY COMMITTEE (TAC) Regular Meeting 10:30 AM, Monday, March

3, 2014 COUNCIL CHAMBER 580 PACIFIC STREET MONTEREY, CALIFORNIA Members Present Members Absent: Staff Present: CALL TO ORDER In Mayor Burnetts absence, TAC Member Stoldt called the meeting to order at 10:33.a.m. ROLL CALL PLEDGE OF ALLEGIANCE REPORTS FROM TAC MEMBERS Executive Director Cullem reminded the TAC that Fair Political Practices Commission (FPPC) Form 700s for all TAC members are due to the Clerk. PUBLIC COMMENTS Tom Rowley urged thanking the community for past and ongoing conservation efforts and spoke to the proposed regulation water tiers and to comments received regarding cost increases. David Lifland expressed concern regarding water storage capacity as well as requested an update on the release of the Deep Water Desal report regarding the proposed intake methods. APPROVAL OF MINUTES Mr. Rowley requested a correction on the minutes to a comment he made which should read: the report was lacking information about the waste lands predicted by the Hopkins researcher regarding Brine Disposal. On motion by TAC Member Huss and Seconded by TAC Member Reidl and approved by the following vote the Technical Advisory Committee approved the minutes of Feburary 3, 2014. AYES: NOES: ABSENT: ABSTAIN: RECUSED: 2. 7 0 2 0 0 MEMBERS: MEMBERS: MEMBERS: MEMBERS: MEMBERS: Huss, Israel, Riedl, Riley, Stoldt, None Narigi, Burnett None None Huss, Israel, Narigi, Riley, Riedl, Stoldt, Burnett None Executive Director, Legal Counsel, Clerk

Receive Report and Discuss Status of Monterey Peninsula Water Supply Project: Ian Crooks, Engineering Manager from Cal Am provided an update on the status of the

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borehole construction project noting the second bore hole drilling is about to begin and the results of the water analysis will be released once certified. He then spoke to the power purchase Agreement status and indicated the report regarding the capital costs of the engineering solution will be published by the end of march. Chair Burnett Arrived at 10:44 a.m. and indicated that the Authority, the City of Marina, and Cal Am representatives will meet to strategize on engagement with the City of Marina earlier with the slant wells to work to prevent delays in the future. Executive Director Cullem spoke to future efforts to obtain details on remaining necessary permits to prepare a detailed schedule and identify all possible barriers. Member Narigi Arrived at 10:47 a.m. Chair Burnett invited public comment and had no requests to speak. 3. Review Discuss and Provide Direction on Current CPUC Schedule and Administrative Law Judge Decision of Jan 27, 2014 (Cullem) Executive Director Cullem spoke to the item and the change in schedule for the CEQA and CPCN track. He expressed concern with the substantial delay for the project due to the newly revised report release dates and questioned opportunities to request reconsideration of the release dates. Ian Crooks from Cal Am provided an outline schedule regarding the draft EIR circulation date and indicated that the full analysis of each bore hole content will be complete 4 to 6 weeks after submission. Chair Burnett invited public comment on the item. David Lifland requested clarification regarding data needed from the Slant Wells and suggested switching to open water intakes to move more quickly. Tom Rowley expressed concern regarding previous efforts to obtain the CPCN before the EIR on the failed desalination project and the need to recognize any unnecessary delays.

Chair Burnett answered questions posed during public comment speaking to the purpose of the data collection as required and requested by the Salinas Valley Working Group. The TAC discussed the opportunities to speed up the draft EIR release date. On motion by Member Riley and seconded by Member Narigi and passed by the following vote the Technical Advisory Committee approved sending a letter to the California Public Utilities Commission urging expeditious decision regarding the schedule of the release of the Environmental Impact Report and the Administrative Law Judge review citing that the purpose of delay has been resolved and consideration of cooperative efforts should be given to put time back on the schedule.

AYES: NOES: ABSENT: ABSTAIN: RECUSED:

5 0 0 0 0

MEMBERS: MEMBERS: MEMBERS: MEMBERS: MEMBERS:

Huss, Israel, Narigi, Riedl, Riley, Stoldt, Burnett None None None None

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7.

Narigi requested that due to time constraints the TAC discuss item 7 out of order. The TAC Agreed. Receive Report, Discuss and Provide Direction Regarding Issues, Implications and Benefits of Commissioning a Study Regarding a Public Take Over of Cal Am. Chair Burnett introduced the item saying that the Authority was created to help deliver a water supply project to the Peninsula and has tried to avoid deviation from that core purpose. He requested the TAC to consider if the Authority would benefit from engagement with regard to ballot measure O, by commissioning a study on the impacts of the measure to provide information to the public that is not currently available, and not biased. The TAC discussed if the following opportunities before the Authority while keeping in mind the purpose of the Authority to obtain a reliable water supply as soon as possible. 1. Do nothing 2. Take a position but not be involved in providing analysis of pros and cons 3. Dont take a position and provide an analysis of pros and cons. Chair Burnett invited public comment on the item. Tom Rowley spoke to unsuccessful previous votes and lack of support for public water and spoke against doing a study that it is a diversion from obtaining a water supply. Bill Hood spoke in agreement to Mr. Rowley and said this is a policy issue, and should be taken up by the Directors. Chair Burnett agreed that it is a policy decision but that the TAC should determine the issues to study if a study was to be conducted. Member Stoldt indicated that the Water Management District will not participate in providing any direction due to their position of neutrality. He spoke to the intent of the ballot measure and what would be the resulting process if passed. The TAC discussed the timing for the completion of the study, the timeline for the election ballots, the perception of the community efforts at the state level, potential Authority involvement to provide an educational component, if there would be impacts on future water deliveries, the impacts to the settlement agreements and bond financing impacts. Chair Burnett Invited public comment on the discussion: Bill Hood spoke to the discussion, and indicated that the Authority has already provided policy direction on this topic already and disagrees with the approach. David Lifland spoke in support of public ownership of water and against the Authority taking a position on this issue. Tom Rowley spoke in support of letting the Citizens vote on the public ownership. On motion by Member Narigi and seconded by Member Huss and passed by the following vote, the Technical Advisory Committee approved making a recommendation to the Authority Directors to commission a factual analysis of Measure O, based on Article 2.2 of the JPA agreement, as it addresses the ballot initiative to include all of elements. AYES: NOES: ABSENT: 5 1 0 MEMBERS: MEMBERS: MEMBERS: Huss, Israel, Narigi, Riedl, Burnett Riley None

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MPRWA Minutes ABSTAIN: RECUSED: 4. 1 0 MEMBERS: MEMBERS: Stoldt None

Monday, March 3, 2014

Member Narigi left the meeting at 12:10 p.m. Receive Update Report, Discuss and Provide Direction Regarding Negotiations For GWR Product Water, Update On Availability of Source Water And Discuss Unresolved GWR Questions Posed By The Business Community (Israel) Member Israel gave a report regarding current status of the negotiations for product water and progress made on source water for the GWR project. Executive Director Cullem indicated there was no need to discuss questions posed by the Business Coalition as they have been answered by Mr. Israel previously. The TAC questioned and discussed the level of involvement with the Marina Coast Water District indicating a partnership could help keep the costs down, as well as discussed scenarios of changes in source water availability. Member Huss left the meeting at 12:27 p.m. Chair Burnett invited public comment on the item. Tom Rowley spoke to Member Narigis question regarding concerns about the schedule and costs. This item was for information only to keep the public and the other agencies informed of the progress. No action was taken.

5.

Receive Report, Discuss and Provide Direction On Emergency Funding For GWR And Affect On Cost Of Water (Israel) Member Israel spoke to the state emergency funding and other possibilities that could benefit the GWR project and the cost of water. Member Stoldt spoke to meetings with representatives regarding state revolving funds who are compiling a priority list for 0% financing for state recycled water projects and spoke to proposed legislation related to drought relief for California. Chair Burnett invited public comment on the item. David Lifland questioned if the current balance of the IRWM account. Tom Rowley spoke to the survey of willingness of people in CA willing to pay. Votes, rate payers and tax payers in the local area. The study says people are willing to pay more, but people in the local area are less willing. Dont be deceived.

6.

Report was received. Receive Report, Discuss and Provide Direction Regarding Monterey Peninsula Water Management District Consultant Selection for GWR Externalities Study (Stoldt) Member Stoldt spoke to the item and provided an update on the report commissioned by the Water Management District, as required by the settlement agreement to discuss the externalities as it relates to the GWR project. He reported the draft will be released to the MRWPCA next week for comments and thereafter released to the Authority for comment and review. Chair Burnett invited public comment and had no requests to speak.

ADJOURNMENT The meeting was adjourned at 12:45 p.m. MPRWA TAC Meeting Minutes Regular Meeting Minutes - Monday, March 3, 2014 4

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ATTEST:

Lesley Milton, Authority Clerk

Jason Burnett, TAC Chair

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