M I N U TE S MONTEREY PENINSULA REGIONAL WATER AUTHORITY TECHNICAL ADVISORY COMMITTEE (TAC) Regular Meeting 2:00 PM, Monday, September

17, 2012 COUNCIL CHAMBERS FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Members Present: Absent: Staff Present: CALL TO ORDER Chair Stoldt called the meeting to order at 2:06 p.m. ROLL CALL PLEDGE OF ALLEGIANCE PUBLIC COMMENTS Chair Stoldt invited public comments for items not listed on the agenda. David Armanasco gave an update on the reporting progress and communication with SPI Consultants indicating Deep Water Desal released a comprehensive preliminary study on the modeling of potential impacts from the operations of a desalination facility open intake prepared by Tamara Environmental on September 12, 2012 and will be moving forward with a validation study. Having no further requests to speak, Chair Stoldt closed Public Comment. REPORTS FROM TAC MEMBERS 1. Receive Report From MPRWA Board Meeting of September 13, 2012 Chair Stoldt reported on items presented at the MPRWA Authority meeting on September 12, 2012 including receiving the qualitative risk evaluation, but indicated that the primary discussion of the Authority meeting was related to governance and finance. He also recommended that future meeting arrangement include a less formal structure with TAC members sitting at tables in a discussion format. 2. Receive Other Reports from TAC Members Member Riedl spoke about attending a water quality protection program meeting from the State Water Resources Agency Board which gave progress reports on desalination regulations. He commented that he received a voice message from Nadar Aga and did not return the call. Member Israel reported that his agency is conducting meetings on groundwater replenishment and crafting discussions with the growing community and anticipates a 6-month time frame and expects positive results. Member Riley expressed concern that there is too much concern and discussion about governance and time tables and not enough attention being paid to the cost of water. Stoldt, Israel, Narigi, Riedl, Riley None Clerk of the Board Milton

MPRWA Minutes AGENDA ITEMS 3. Discuss Kris Helm Preliminary Findings and Next Steps

Monday, September 17, 2012

Chair Stoldt introduced the item indicating the memorandum provided by Kris Helm had great preliminary observations and was encouraged that in the near future data would be available to give the Mayors enough time to make informed decisions for upcoming deadlines and not just for February filing testimony. He then introduced Kris Helm, the contracted independent consultant hired by the MPRWA with development analysis and interagency experience with regards to water resources. Mr. Helm discussed his preliminary findings with regards to compliance with environmental laws, permitting and financing implications. He indicated that the focus of his review will be scheduling and determining if the project can be implemented in an acceptable time frame to achieve the deadline. However, he needs to understand the processes which lead to the critical path for accomplishing projects. Mr. Helm discussed the analysis he is strategizing and requested direction for other areas of concern. He also discussed his plan for an independent assessment for each project as well as their development schedule. Observations which are relevant presented in the memo, made independently about the administrative process and the facts which may be significant to the Authority with regard to deadlines and the opportunities to influence the process at specific steps. Discussed the areas that could lead to a longer process and litigation. Presumptive way to take water with the least impact was with a subsurface set of wells. Found to have minimal environmental effects, but other significant issues related to development, not including legal challenges to water rights, quantities of water extracted, questions about specific system, cost and design which led to an inadequate review of the environmental review. Prior environmental review included no analysis of taking water of the ocean , but from existing diversions, discharges as a source water. 19:38 Observations and Concerns expressed: CPUC is only reviewing the proposed Cal Am project and not all of the projects. All projects will have problems reaching the deadline of 2017, and each has the substantial risk of not achieving environmental compliance. Determination of the permits and compliance levels that would need to adhere to: EIR, CEQA, NEPA, Etc. A new intake or discharge system to Monterey Bay would included Federal Discretionary Approval. Concern in the record for brine disposal, water intake. The Authority should examine this question more fully including possible ways the JPA could influence the path for environmental compliance. Environmental regulations need to address the cumulative impacts of intake and if there is a unified approach to handling with a regional Limited scope versus regional scope Careful consideration to seek public private partnerships but does not replace CPUCs advantage.

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MPRWA Minutes

Monday, September 17, 2012

Chair Stoldt recommended pushing item number 5 to next meeting. Tom Rowley spoke representing the Tax Payer Association urging the MPRWA not to let the CPUC relationship with Cal Am interfere with the objective analysis of the two other projects and he expressed anticipation for the consultants results. David Armanasco spoke Deep Water Desal indicating he attended a meeting in Sacramento that clarified NEPA/CQUA would be combined project/document which will help with time schedule to a degree. Nader Aga spoke in support of the Peoples Project that it can meet the deadlines and can obtain necessary permits and requested three things of the Authority; honesty, commitment and firmness Paul Hart an attorney with the Peoples Project in Moss Landing spoke in support of Kris Helms insights and encouraged the Authority to push for an evaluation of all three projects saying it is in the publics best interest to consider alternatives. He also expressed concern about support from the farming community. Chair Stoldt responded that the Farm Bureau submitted a letter of support for the project echoing that they would support the project as long as it did not take water from their water supply. Libby Downey spoke in support of Kris Helm and acknowledged him for his independent analysis. Safwat Malek expressed appreciation for reviewing multiple projects. Linda McCallam spoke in support of proceeding with a project with a company other than Cal Am. With no further requests to speak, Chair Stoldt closed public comment. 4. Discuss SPI Preliminary Scoping and Constraints Evaluation Memorandum and Next Steps (Stoldt) Chair Stoldt deferred item number 4 to a later meeting. 5. Plan October TAC Meeting Schedule and Agendas Chair Stoldt recommended returning to the standard schedule of meetings for the month of October, the first and third Monday and the TAC agreed. He also indicated he will send out an email with requested topics for the next meetings. Member Riely commented that he was disappointed that the TAC did not receive a copy of the risk assessment or an opportunity to analyze and give input prior to distribution to the Authority. He also requested to agendize a discussion regarding methods to get GWR strategy, as an alternate plan, on the fast track to approval to ensure some kind of supply availability that will meet the schedule and deadline. Member Israel responded that the Monterey Regional Water Pollution Control Agency could put together an analysis of how much impact/assistance GWR would make to the overall project. ADJOURNMENT With no further business to conduct Chair Stoldt adjourned the meeting at 4:08 p.m.

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MPRWA Minutes

Monday, September 17, 2012

Lesley Milton, Clerk to the Board, Secretary

MPRWA TAC Meeting Minutes Regular Meeting Minutes - Monday, September 17, 2012 4