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MPRWA Minutes 06-12-14

MPRWA Minutes 06-12-14

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Published by L. A. Paterson
Monterey Peninsula Regional Water Authority, California American Water Monterey Peninsula Water Supply Project
Monterey Peninsula Regional Water Authority, California American Water Monterey Peninsula Water Supply Project

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Published by: L. A. Paterson on Jul 09, 2014
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MI NUTES

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
Regular Meeting
7:00 PM, Thursday, June 12, 2014
COUNCIL CHAMBER
580 PACIFIC STREET
MONTEREY, CALIFORNIA

Directors Present: Burnett, Edelen, Kampe, Pendergrass, Rubio, Della Sala
Directors Absent: None
Staff Present: Executive Director, Legal Counsel, Clerk

ROLL CALL

The meeting was started at 7:00 PM and all members were present.

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

Executive Director Cullem indicated that he attended ACEC to give a presentation on the
Authority activities and also attended the County of Monterey budget briefing trying to obtain
member contributions for Fiscal Year 2014-15.

PUBLIC COMMENTS

President Della Sala invited public comments for items not on the agenda.
• Nelson Vega spoke to the progress made over the last two years and thanked the
Mayors for standing up for Cal Am and supporting the water project.
• Nina Beaty spoke to the impacts of the Japanese nuclear reactor disaster and
questioned if it radiation removal would be included in the plans for the the desalination
facility.
• John Narigi spoke on behalf of the Business Coalition and thanked the Directors for
using their political clout toward a no vote on Measure O.
• Tom Rowley thanked the Mayors on behalf of the Monterey Peninsula Tax Payers
Association for their efforts and leadership toward Measure O and that their leadership
will continue to be needed to neutralize the bad information that is being released.
• Jody Hansen, Monterey Peninsula Chamber of Commerce echoed the appreciation for
taking a stand against Measure O.

APPROVAL OF MINUTES

On a motion by Director Pendergrass, seconded by Director Rubio, and carried by the following
vote, the Monterey Peninsula Regional Water Authority approved the minutes of March 13,
2014 and May 8, 2014 as presented.
AYES: 6 DIRECTORS: Burnett, Edelen, Kampe, Pendergrass, Rubio, Della
Sala
NOES: 0 DIRECTORS: None
ABSENT: 0 DIRECTORS: None
MPRWA Minutes Thursday, June 12, 2014


Monterey Peninsula Regional Water Authority
Regular Meeting Minutes - Thursday, June 12, 2014
2
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

1. May 8, 2014 Regular Meeting
Action: Approved.

2. March 13, 2014 Regular Meeting
Action: Approved.

AGENDA ITEMS

3. Receive Update on the Pure Water Monterey and Ground Water Replenishment Projects
Action: Update Received.

Keith Israel, General Manager of the Monterey Regional Water Pollution Control Agency
(MRWPCA) provided an update regarding the progress made toward the Pure Water Monterey
and Ground Water Replenishment projects. He spoke to the independent advisory panel
reports, the pilot plant tours, environmental impact report work and other ongoing activities. Mr.
Israel outlined the key factors of the source water agreement negotiation meetings, speaking to
the series of critical negotiating sessions with the Salinas Valley Agricultural interest in an effort
to work out a compromise to allow the PWM/GWR to remain a viable water supply option for
the peninsula.

Mr. Israel also reported and provided a copy of the concept approval letter from the Department
of Public Health noting it is a significant step to move the project forward. He indicated good
traction has been made but staff continues to work through issues such as the source water
negotiations, the drought strategies including identification of other water sources, storage of
differential flows, improvement of water quality and salt mitigation strategies. Program staff is
also working to implement salt source control programs focusing on commercial users. Mr.
Israel answered questions from the Board.

Director Kampe expressed concern that Salinas Valley will not negotiate to which Mr. Israel
spoke to an agreement that which expires in 2037 allowing all water for the peninsula will come
back to the peninsula. He indicated that by modifying the term of the agreement and agreeing
to continue to supply portions of water, through interruptible flows, it will be a winning solution
for all. He also clarified comments regarding providing water at a different rate schedule and
explained a rate study would be done but water rates would differ because they will be
interruptible flows.

President Della Sala invited public comments on the item.
• Nelson Vega questioned the total cost of water to the rate payers and how it could be
determined if no water purchase agreement has been signed. He expressed concern
the negotiations would increase the water purchase agreement costs.
• David Lifland congratulated PWM on receipt of the letter from the Department of Public
Health and questioned why the Salinas River Lagoon was not considered as a water
source.
MPRWA Minutes Thursday, June 12, 2014


Monterey Peninsula Regional Water Authority
Regular Meeting Minutes - Thursday, June 12, 2014
3

Mr. Israel responded to public comments indicating the water purchase agreement was not
undertaken until more progress was made on source control. Regarding sources, Monterey
Peninsula water would be the primary source with Salinas Valley water to use if available. He
also spoke to arrangements for source water from the Marina Coast Water District. Recent cost
estimates will be $2,200 acre/ft.

4. Receive Update on the Status of the Peoples Desal and the Pacific Grove Water Recycling
Projects
Action: Update Received.

Director Kampe delivered a report on the item and provided a handout with a brief description
of the Pacific Grove water project. He thanked the Monterey Regional Water Management
District for a $100,000 planning grant to move forward on the project and updated the Authority
on the status reporting the project is on schedule for a pilot test in May 2016 and to be
operational by October 2016. This project would displace 125 acre/ft of potable water from Cal
Am.
Mr. Kampe indicated that there has been no recent work done with the City of P.G. for the
People's Project and expressed concern as to which agency will certify their work or who is
coordinating and reviewing their technical and environmental studies.

David Balch, attorney representing Nadar Aga and People's Moss Landing spoke during public
comment agreeing that not many substantive discussions have taken place with the City due to
the uncertainty of the change in the political structure at the City. He reported that over the last
year significant technical work was completed including a privately commissioned EIR, which is
almost complete. The Notice of Preparation will be released in the next week weeks and the
EIR will be complete after the public review period. Cost estimates have been completed as
well, and this project would provide water to north Monterey County and the project would move
forward with or without City support.
Mr. Blach extended an invitation to meet with any Mayor to discuss the draft EIR as well as give
a presentation at the next Authority meeting. Director Kampe requested for a full presentation
at a future meeting.

Mayor Della Sala invited further public comment and had no requests to speak. No action was
taken as this was an update on the status of the project.

5. Approval of Checks and Projected Year-End Financial Report
MPRWA Minutes Thursday, June 12, 2014


Monterey Peninsula Regional Water Authority
Regular Meeting Minutes - Thursday, June 12, 2014
4
Action: Update Received and checks were approved and filed.

Authority Clerk Milton spoke to the expenses incurred during the last month and how it reflects
to the end of the year budget balance. She indicated that it was not anticipated that expenses
would exceed current bank balance and that any money remaining will be carried over into next
year’s budget balance. She also reported a member contribution was received from the County
of Monterey for their fair share of Fiscal Year 2012-13. Executive Director Cullem spoke to a
request made by Monterey County Supervisor Potter to explain the budget and the work plan of
the Authority, the $153,000 that was include in the County of Monterey Fiscal Year 2014-15
budget.
The Directors questioned the Monterey County Contribution for FY 13-14 to which Mr. Cullem
explained that was never included in Monterey County budget last year and it is very unlikely
that it will be received, but he will continue to pursue it.

President Della Sala invited public comment on the item.
• Tom Rowley thanked the Directors for the effort and still requested that someone from
the County of Monterey be seated as part of the Authority and a regular report from
Monterey County should be provided.
• David Lifland requested clarification regarding the fiscal years that Monterey County
approved and paid.

On a motion by Director Burnett, seconded by Director Rubio, and carried by the following vote,
the Monterey Peninsula Regional Water Authority approved and filed the checks through June
12, 2014.
AYES: 6 DIRECTORS: Burnett, Edelen, Kampe, Pendergrass, Rubio, Della
Sala
NOES: 0 DIRECTORS: None
ABSENT: 0 DIRECTORS: None
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

6. Receive Report, Award a Contract for a Value Engineering (VE) Study for the Monterey
Peninsula Water Supply Project to Value Management Strategies, Inc (VMS), Reimbursable by
Cal Am With a Not-To-Exceed Cost of $109,035.70, Approve a Contingency of $11,000.00, and
Authorize the President to Execute The Contract for Professional Services
Action: Update Received.

Executive Director Cullem spoke to the facilitation for the RFP and selection of the consultant
for a Value Engineering Study for the Monterey Peninsula Water Supply Project. He reported
that the selection committee recommended awarding the contract to VMS, which was approved
by the Governance Committee. This item is requesting approval of execution of the contract
with costs to be fully reimbursement by Cal Am. He spoke to negotiations completed that
resulted in a reduction of costs resulting in a total contract price of $109K. Mr. Cullem answered
questions from the Board.
President Della Sala invited public comments on the item.

• David Lifland questioned when the contract would start, and how to provided comments.
MPRWA Minutes Thursday, June 12, 2014


Monterey Peninsula Regional Water Authority
Regular Meeting Minutes - Thursday, June 12, 2014
5

On a motion by Director Rubio, seconded by Director Kampe, and carried by the following vote,
the Monterey Peninsula Regional Water Authority approved execution of a contract for a Value
Engineering (VE) Study for the Monterey Peninsula Water Supply Project to Value
Management Strategies, Inc (VMS), reimbursable by Cal Am with a Not-To-Exceed cost of
$109,035.70, approved a contingency of $11,000.00, and Authorized the President to execute
the contract for professional services:
AYES: 6 DIRECTORS: Burnett, Edelen, Kampe, Pendergrass, Rubio, Della
Sala
NOES: 0 DIRECTORS: None
ABSENT: 0 DIRECTORS: None
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

7. Receive Report on Progress of Securitization Bills in the State Legislature and the Status of
Settling Parties Joint Comments on Ruling Requesting Comments on Surcharge Options and
Proposals
Action: Update Received.

Vice President Burnett spoke to the progress of legislation which would provide for a
securitization structure resulting in $79-90 million in ratepayer savings. He reported that the
proposed legislation moved through the Senate successfully, and will go to the Assembly this
month. The first session will be on Monday, September 23, 2014 where Mr. Burnett, TAC
Member Stoldt and Assembly Member Stone will provide witnesses testimony. Vice President
Burnett anticipated that it would proceed smoothly. He clarified that having this legislation
signed into law is not the final step the MRWMD will need to make to meet the terms of the
settlement agreement.
President Della Sala invited public comments and had no requests to speak.
Executive Director Cullem recommended that prior to Surcharge 2 taking affect, that Cal Am or
MRWMD begin public education prior to the jump in water bills to reduce confusion and
complaints.

8. Receive Report and Discuss Latest California Public Utilities Commission Schedule for the
Monterey Peninsula Water Supply Project
Action: Discussed

Executive Director Cullem spoke to the schedule as it relates to the different water supply
projects and the CPUC schedule. He spoke to changes made since the initial introduction and
spoke to dates that have been changed for the release of the EIR. Mr. Cullem answered
questions regarding the schedule.
President Della Sala Invited public comments.
• Tom Rowley said the time table is overoptimistic and premature to say that were are in
an position to evaluate an EIR. He expressed concern that the slant test well must be
proven to be workable to have a desal project and an EIR cannot be completed
accurately until then.
MPRWA Minutes Thursday, June 12, 2014


Monterey Peninsula Regional Water Authority
Regular Meeting Minutes - Thursday, June 12, 2014
6

Mr. Israel provided an updated sheet for the GWR status. Mayor Burnett thanked Mr. Israel for
updating the schedule as it relates to GWR.
Director Kampe responded to Mr. Rowley's comments regarding evaluation of a project without
a clear source of water. Director Burnett responded first by saying that an EIR requires the best
judgment based on the information at hand. He indicating that the CPUC EIR Team, as a
lesson learned from previous project, reached out to the State Water Resources Control Board,
and asked for what questions need to be answered with regard to ground water rights. The
result was the request for the studies that were provided to the hydrogeological working group.
They have a report that they are refining and will be made public before the draft EIR is
released. The EIR will assess any impacts to the groundwater. The current judgment is that
they don't need to have a slant test well for the EIR to be completed.
In this case, the best information available is the modeling and the bore holes and associated
water tests. Cal Am, as a business decision, has deemed it necessary before investing the $75
million in a full bank of production wells.
This was an information item that will be amended and reviewed as necessary.

9. Discuss the Marina Mitigated Negative Declaration (MND) for the Monterey Peninsula Water
Supply Project Slant Test Well
Action: Update Received and Discussed

Ian Crooks from Cal Am spoke to the item indicating the mitigated negative declaration has
been released for public review and the comment period closes on Tuesday July 17, 2014 and
to date no comments have been received. The proposal will be completed in two to three
weeks and is scheduled for Marina Planning Commission on July 10, 2014. If the Planning
Commission is not appealed, it goes directly to Marina City Council. He also noted that nothing
in the MND causes concern and none of the proposed mitigation strategies cannot be handled.
Mr. Cullem and Mr. Crooks have been working with Marina to ensure that the item is approved
in time for the coastal development permit.

President Della Sala invited public comments on the item.
• Tom Rolwey said he was encouraged by Mr. Crooks comments but there will be
engineering support to review and vet the document to ensure all issues are mitigated.
He thanked Cal Am for scheduling for success.
• David LIfalnd spoke to concerns regarding SWCA listed, thinks that SWCA shoudl not
be allowed to quote anything on any project in the future.
• Jan Schriener, a Director from the Marina Coast Water District Board of Directors
requested that Authority members as well as members of the public should maintain
professionalism at all times. The process needs to stay transparent and professional.
She expressed concern regarding a plan to truck water to the Cemex site (millions of
gallons) as well as bore hole data being lower in total results. She indicated more than a
verbal report needs to be given to explain these details. A letter will be discussed at the
MCWD Board meeting on June 16, 2014.

Update was received and no action was taken.
MPRWA Minutes Thursday, June 12, 2014


Monterey Peninsula Regional Water Authority
Regular Meeting Minutes - Thursday, June 12, 2014
7

10. Discuss and Provide Direction Regarding The Detailed Critical Path Method (CPM) Schedule
for all Permits and Approvals for the Monterey Peninsula Water Supply Project
Action: Update Received and Direction was Provided.

Executive Director Cullem requested direction to track the critical path method to determine all
of the critical activities for the MPWSP and where the Authority may be able to assist. He also
proposed tracking cost comparison between projects. He requested this as an opportunity to
involve the TAC and requested direction from the Board.
Director Rubio welcomed and requested the opportunity to see a Gant Chart with appropriate
milestones, and that it be synced with the budget to get a sense of where it is with the timeline
as well as with the financial scope of the process.
President Della Sala invited public comment.
• Nelson Vega spoke in support of Mayor Rubio's comments to track project progress as
well as costs.
Direction provided by Director Rubio was approved unanimously.

ADJOURNMENT

Having no further business to conduct, the meeting was adjourned at 8:53 pm



ATTEST:





Lesley Milton, Authority Clerk Chuck Della Sala, President

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