M I N U TE S

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)

Regular Alternate Meeting
7:00 PM, Thursday, September 24, 2015
COUNCIL CHAMBER
580 PACIFIC STREET
MONTEREY, CALIFORNIA

Directors Absent:

Edelen, Kampe, Pendergrass, Rubio, Alternate Directors Downey and

Talmage
None

Staff Present:

Executive Director, Legal Counsel, Clerk

Directors Present:

CALL TO ORDER
Vice President Kampe called the meeting to order to 7:00 PM.
REPORTS FROM BOARD DIRECTORS AND STAFF
Executive Director Cullem indicated that staff had started the financial audit for FY 14-15. He also
reported that the Authority is trying to coordinate a representative to attend the California Coastal
Commission meeting in October for the test well. Vice President Kampe indicated he is available
and encouraged other Directors to attend. Finally, Mr. Cullem appreciated that the Directors were
able to attend this alternate session because agendized items are time sensitive. He further
explained that the Authority made it clear that they wanted to see the letters prior to distribution
which are included in the packet. He additionally indicated that the CDO application will not be
ready for the Authority to consider the application and co-application, so we may or may not have
the October 8 meeting if there is no time sensitive actionable items. The goals is to give sufficient
time to review the draft and receive public comment or responses from Member City Councils. The
tentative date for is October 22nd at this time. Director Rubio informed the Board that he will be out
of town October 21-23rd.
ORAL COMMUNICATIONS
Vice President Kampe invited comments from the public.

Tom Rowley thanked the Board for having an independent letter and thinks that it's
important that the Authority retain its independence.
A resident spoke representing Mark Del Piero who submitted a written comment regarding,
water, desal, the slant well application and asked that no decision be made until the letter is
reviewed.

CONSENT AGENDA
1.
Approve and File Authority Checks Through September 24, 2015
Action: Approved
Director Kampe invited public comment and had no requests to speak.

On motion by Director Pendergrass, seconded by Director Rubio and passed by the following vote
the Authority Board approved the Minutes of September 24th as presented. 6-0
2.

Receive Letter from Cal Am President Rob Maclean in Response to Water Authority Letter
on Financial Guarantee for the MPWSP Slant Wells

Pulled for public comment.

Charles Chek spoke to the letter that states Cal Am denies responsibility for anything that
pertains to issues that the slant well does not perform to specifications, accept as a
functional slant well. If it is not meeting the criteria necessary to not damage aquifers, not
cause damage to Salinas Basin, it is not meeting its need and should be rejected.

On motion by Director Rubio and seconded by Director Edelen and passed unanimously, the
Authority Board received the letter. 6-0
BUSINESS ITEMS
3.

Receive, Discuss and Approve the Final Comment Letter to the California Public Utilities
Commission (CPUC) on the Monterey Peninsula Water Supply Project Draft
Environmental Impact Report - Cullem

Executive Director Cullem introduced the item explaining that a fourth paragraph was added by
Water Counsel and President Burnett that includes information on basic modeling and return water
alternatives. He further explained that because there will be a recirculation of the DEIR, it will
incorporate a maximum number of options for the public. This will likely be controversial, but it will
avail us of the return water alternatives and there should be a benefit to the rate payers. He
explained it is time sensitive because comments on the DEIR are due September 30th.
Vice President Kampe invited comments from the public

Norm Grut, intervenor, said it adequately addresses and details of the return of water to
satisfy the water rights issues, as well as the Water Resource Agency Act. He expressed
caution with statements that it will reduce the price of the water.
Tom Rowley spoke in support of the extended EIR comment period this this will assist with
making the document more bulletproof.
George Riley expressed concern regarding the cost of water, who would pay for it and who
would buy it. He then spoke to the chart on page 28 as misleading to the public as it may be
the design intent, but the slant well being used will not penetrated below the bay.
Charles Chek expressed frustration that the current rate payers will pay to build the facility
but that Cal Am can sell it later to those who never assisted with the production costs.
Michael Baer commented on previous comments made, expressed frustration there was no
data from the test well collected in the first week, and disagreed that the chart is misleading. He questioned the availability of the letter.

Director Rubio was glad to see the revisions as well as additional opportunity to weigh in. He
questioned the statement that it could result in operating savings, acknowledging the concerns of
the public. He supported the letter that it will clarify the Authority position on the EIR. Director
Talmage thinks that the paragraph four re-draft is reasonable and thorough.

Thursday, September 24, 2015 Regular Alternate Meeting

Monterey Peninsula Regional Water Authority

Page 2

Director Edelen moved to approve the final comment letter and authorize staff to send it to the
CPUC. Seconded by Director Rubio
Speaking on the second, Vice President Kampe responded to comments made by the public that
the differential of the cost paid vs the cost to produce and questioned why the facility would produce
enough water in excess of our needs. Executive Director Cullem spoke to the initial test well results
and the quantities of water delineated in the settlement agreement, including the additional water
necessary for the replenishment of the aquifers and the Seaside Basin.
Passed unanimously. 6-0

4. Discuss the Status of the Cal Am Request to Resume Test Slant Well Operations and
Authorize Sending a Letter of Support to the California Coastal Commission Prior to its
Consideration of The Request on October 6, 2015. -Crooks
Ian Crooks from Cal Am reported that there is confirmation that the item will be heard at the
California Coastal Commission in October and encouraged any support the community can
provide.
Vice President Kampe invited comments from the public and had no requests to speak.
Director Rubio moved that the letter be approved, and that the Authority Authorize staff to send the
letter of Support to the Coastal Commission. Seconded by Vice President Kampe. Speaking on the
second, Mr. Kampe requested that there be a wording change on paragraph 2, expressing concern
that when read, it implies a direct connection between the test well and the draw down, but it's not
an accurate connection. The drop could be completely independent of the test well, as the drop
continued after the test wells were shut off. Staff requested they be allowed the latitude to fix it or
replace with similar wording. As long as it does not change the intent of the letter, to support the
action, Director Rubio supported the motion change.
The motion was unanimously approved. 6-0
5. Approve Return of Excess Contributions for FY 14-15 and Approve a Reserve Fund for FY 15-16
of Approximately $179,000 from Year-end Balances -Cullem
Executive Director Cullem presented the item and explained that there was less money spent
during the Fiscal Year due to the stalled projects and delays imposed by the CPUC. Additionally,
the percent distributions have changed for fair share contributions and Mr. Cullem spoke to the
revised FY 15-16 contribution percentages to satisfy the new budget approved from the Board. He
indicated the potential credits from the remaining funds from the previous fiscal year will allow for an
"excess contribution" made by each of the Cities to cover the County of Monterey, and the funds
provided by the County will be refunded as a credit to each of the member cities. There are still
expenses, and he is leery about returning funds because there is a lot happening on the front for
the CDO extension. He requested a creation of a reserve fund in exchange of returning funds to
member cities. Mr. Cullem answered questions of the Board.
Ms. Downey questioned why Monterey County would get credit when they didn't pay all of it. Mr.
Cullem detailed all of the payments made by Monterey County, and the in-kind efforts made to the
Authority over the years. Mr. Cullem responded that he does not believe that we are going to
receive any additional funds from Monterey County.

Thursday, September 24, 2015 Regular Alternate Meeting

Monterey Peninsula Regional Water Authority

Page 3

Vice President Kampe invited comments from the public.

Tom Rowley retracted statements regarding the Countys non-participation and thanked the
staff and Directors for efforts that resulted in a partial contribution. He spoke to the efficiency
of the Authority to have a budget under $300,000 annually.

On motion by Alternate Director Talmage and seconded by Director Rubio and passed by
unanimous vote, the Authority Directors approved the return of excess contributions for FY 2014-15
as credits and approved the creation of a reserve fund for FY 15-16 to contain the year end
balances. 6-0
ADJOURNMENT
Having no further business, the meeting was adjourned at 7:49 PM.

Respectfully submitted,
______________________________
Lesley Milton-Rerig, City Clerk

______________________________
Bill Kampe, Authority Vice President

Thursday, September 24, 2015 Regular Alternate Meeting

Monterey Peninsula Regional Water Authority

Page 4