Council Adjourned Meeting

MINUTES CITY COUNCIL ADJOURNED MEETING CITY OF MONTEREY Wednesday, June 23, 2010 4:00 p.m. - 6:00 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Downey, Haferman, Selfridge, Sollecito, Della Sala Absent: None City Staff City Manager, Assistant City Manager, City Attorney, Assistant Director Present: Plans and Public Works Administration, Chief of Planning, Engineering, and Environmental Compliance, Assistant City Clerk CALL TO ORDER Mayor Della Sala called the meeting to order at 4:00 p.m. CONSENT ITEMS On a motion by Councilmember Sollecito, seconded by Councilmember Downey, and carried by the following vote, the City Council adopted Ordinance 3449. C.S.: AYES: 5 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Ordinances 1. Second Reading - Adopting Ordinance Amending Chapter 30 of the Monterey City Code, Section 30-14, Setting Sewer Fees and Repealing Section 30-15, Increased Sewer Fees (Plans and Public Works - 701-11) Action: adopted Ordinance No. 3449 C.S. ***End of Consent Agenda*** PUBLIC COMMENTS Mayor Della Sala opened public comments on items not on the agenda and seeing no requests to speak closed public comments.  City Council Minutes Wednesday, June 23, 2010 PUBLIC APPEARANCE 2. Update on the Proposed Monterey Regional Desalination Project and Provide Opportunity for Policy Direction (Plans and Public Works - 804-05) City Manager Meurer introduced the item explaining the reason for the delay of this meeting, noting that it was difficult to find a meeting date where all of the key players were able to participate. Mr. Meurer described Public Utilities Commission (PUC) process for this project as a difficult one, stressing that the peninsula is breaking ground with a project that is a public and private partnership and that is constrained by other agencies as well, citing Monterey County Health and Coastal Commission policies. Mr. Meurer noted that the e principals are the Marina Coast Water District, Monterey County Water Resources Agency, and California American Water Company. He stated there were 3 main concerns: some of the work done in private after having taken public feedback, concerns over costs, and control or governance. Mr. Meurer closed his introduction stating today's meeting speaks to where the project is, what the project is, the agreement, the costs associated with the project, and the project schedule. Lyndel Melton, a consultant for the Marina Coast Water District, provided Council with a project update on the Regional Desalination Project. Mr. Melton stated that the 2 primary reasons for this project are that water quantity has been diminished because of the State Water Board's cease and desist order, 95-10, and the Seaside Basin Overdraft. Mr. Melton indicated that because of these there is a 13,100 acre gap of water and listed other water projects that are contributing to reducing this gap and that the regional water project is earmarked to provide 10,500 acre feet of water per year. Mr. Melton depicted the facilities, pipelines, wells, plants, and noted which agency would own and operate the facilities. He indicated that the testing is still determining how many vertical and slants wells will be used, stressing that the ultimate objective is to have combination that achieves the highest level of ocean water that can be achieved in these wells. Mr. Melton went on to describe the desalination process, citing a 44% recovery rate, a partial second pass that removes Boron, Chloride, and Sodium, and post treatment measures. Mr. Melton gave a short update on the Landfill Cogeneration, which is an independent project. In regards to costs, Mr. Melton stated they have done an engineering cost analysis and stated that the regional project is the least capital cost alternative, noting that the financing that will be used for the regional project is the biggest factor making this project cheaper for the rate payer. He described the private activity bonds process, indicating sales are planned for December, and described potential grant opportunities and available loans. He indicated that the financing plan and the PUC decision to move forward are expected in November. Mr. Melton stated this could mean that a rate payer's bill could be double, for example from $40.00 to $80.00 for a family of 3 on a 1-acre during a summer consumption period. He stated this was an assumption, but the true costs will be determined by the PUC, California American Water and the rate payers' advocacy weighing in on what is the correct rate schedule. Mr. Melton closed by providing a snapshot of the project's schedule, indicating mid 2014 is the target date for the project to be online. City Manager Meurer and Council posed a variety of questions to Mr. Melton. Mayor Della Sala indicated he and other local mayors are involved in improving the governance aspect of the project. 2 City Council Minutes Wednesday, June 23, 2010 Mayor Della Sala opened public comment on this item. George Riley, from Citizens for Public Water, stated that California American Water has a history of making reimbursements on claims and that Marina Coast Water District should have an avenue for settling claims through them. Mr. Riley asked if operating costs were included in the cost estimates and if not it needs to be included. Roger Dolan asked peninsula cities to take appropriate action and would like Monterey to take the lead in the joint powers agency and several changes in the agreement. Janet Brennan, League of Women Voters, expressed concerns over uncertainty of water availability, costs, and environmental impacts. Manuel Fierro expressed concerns resolving the governance issue and wanted to know what the joint powers would do and hoped it would be involved with rate setting. Julie Engle urged Council move towards slant wells and away from vertical wells. Ken Nishi, President of the Marina Coast Water District, stressed the need to move forward with this project, citing how the peninsula would be financially impacted without this project. Keith Israel, Monterey Regional Water Pollution Control Agency, spoke in support of the project, offered his agency as a resource, and provided an update on the recycled water project. Mayor Della Sala had Mr. Melton provide responses to questions posed by Council and public speakers. Seeing no more requests to speak, Mayor Della Sala closed public comment. On a motion by Councilmember Downey, seconded by Councilmember Haferman, and carried by the following vote, the City Council strongly supported the Proposed Monterey Regional Desalination Project and mayors of the peninsula cities continuing to pursue an avenue that allows them to participate in the project: AYES: 5 COUNCILMEMBERS: Downey, Haferman, Selfridge, Sollecito, Della Sala NOES: 0 COUNCILMEMBERS: None ABSENT: 0 COUNCILMEMBERS: None ABSTAIN: 0 COUNCILMEMBERS: None RECUSED: 0 COUNCILMEMBERS: None Mayor Della Sala thanked the public their input on this project that is environmentally friendly and affordable. He closed by underscoring the importance of the mayors having a voice in governance. Councilmember Selfridge thanked the public for their input, stressing the City's concerns are for rater payers all over the district. COUNCIL COMMENTS None. 3 City Council Minutes Wednesday, June 23, 2010 CITY MANAGER REPORTS None. ADJOURNMENT Having no more business before the Council Mayor Della Sala adjourned the meeting at 5:56 p.m. Respectfully Submitted, Approved, Sandy Barajas Chuck Della Sala Assistant City Clerk Mayor 4