Monterey Peninsula Regional Water Authority

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) REGULAR MEETING MINUTES Thursday, May 31, 2012 1. CALL TO ORDER The MPRWA regular meeting of Thursday, May 31, 2012 was called to order at 6:00 p.m. by Secretary Carmelita Garcia. 2. ROLL CALL AND INTRODUCTIONS Roll call was taken and a quorum established with the following members in attendance: 1. Felix Bachofner, Seaside - Vice-President 2. Jason Burnett, Carmel 3. Alternate Libby Downey, Monterey 4. Jerry Edelen, Del Rey Oaks 5. Carmelita Garcia, Pacific Grove 6. David Pendergrass, Sand City 3. PLEDGE OF ALLEGIANCE Director Pendergrass led the attendees in the Pledge of Allegiance. 4. APPROVAL OF MINUTES - MAY 10, 2012 MEETING M/S/C (PENDERGRASS/BURNETT) to approve the minutes from May 10, 2012 meeting. The motion carried unanimously. 5. REPORT ON ERRORS & OMISSIONS INSURANCE Ms. Hodgson provided an update regarding Errors & Omissions Insurance. Vice-President Bachofner arrived at the meeting during discussion of item 5. Secretary Garcia stepped down from the meeting as of result of Ms. Hodgson's announcing that she is not covered under the City of Pacific Grove's insurance. Vice-President Bachofner opened public comments. Mr. Bill Reichmuth, chairman expressed concerns from TAC members about the lack of insurance coverage. Vice-President Bachofner closed public comments. 6. ESTABLISH POLICY FOR BOARD & TAC DEALING WITH MEDIA Mr. Freeman expressed concerns about this agenda item and requested it be removed from the agenda. Vice-President Bachofner opened public comments. Mr. Ralph Rubio recommended the Board provide training to TAC members in regard to media contact. Monterey Peninsula Regional Water Authority Vice-President Bachofner closed public comments. 7. BOARD ESTABLISH EXPECTATIONS FOR TAC EVALUATION/COMPARISON OF THREE WATER SUPPLY PROPOSALS Mr. Freeman recommended that an individual with the proper technical expertise be brought on board to assist the Board in this regard. Discussion ensued regarding establishing a budget to hire the right person to handle this task. Vice-President Bachofner opened public comments. Mr. Reichmuth reported that the T AC has prepared a scope of work and list of potential consultants for this process. Mr. Rubio expressed concerns about documents provided to the press. Mr. Vega expressed concerns about the Board incurring additional expenses. Mr. Reichmuth reported that the documents released to the press had already been made public. Alternate Downey arrived at the meeting during discussion of item 7. Vice-President Bachofner closed public comments. 8. CONCLUDE GWRIASR DISCUSSION IF INSURANCE IS OBTAINED FOR MPRWA Extensive discussion took place took place regarding GWRIASR. Vice-President Bachofner opened public comments. Mr. Vega encouraged the Board to support a larger desalination project. Mr. Torn Rowley, Taxpayers Association, expressed concerns about the costs related to GWR and ASR and encouraged support for a larger desalination project. Mr. Reichmuth reported that the TAC unanimously agreed on a project size of 15,270 af. but will review again if necessary. Mr. Doug Wilhalm stated that it's difficult for proponents to guarantee a desalination project due to litigation risks. Vice-President Bachofner closed public comments. M/S/C (BURNETT/PENDERGRASS) to send a letter of support to the GWR and ASR project proponents and to issue a press release expressing the strong support of the Mayors' lPA to both projects. The letter to state that the support is based on the information before the lP A and that the Board will continue to carefully monitor all projects. The motion carried unanimously. Monterey Peninsula Regional Water Authority 9. DEVELOP PRE-HEARING CONFERENCE STATEMENT REGARDING CALAM'S APPLICATION SCHEDULED Mr. Freeman presented information regarding this item. Vice-President Bachofner opened public comments. Mr. Reichmuth stated that TAC approved a recommendation for public participation In plant ownership. Mr. Dale Hekhuis questioned strengths and or abilities the MPWRA would bring to a public partner. Mr. Rubio expressed concerns about liabilities involved with the MPR W A engagement in a partial ownership. Vice-President Bachofner closed public comments. M/S/C (BURNETTIPENDERGRASS) to authorize Russ McGlothin to submit a pre-hearing brief as outlined in the document presented with the following modifications: Include other public agencies to paragraphs d. and e. and add paragraph f. Support development of alternative financing structures including public financing to lower cost to rate payers. The motion carried unanimously. 10. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA Mr. Rowley commended Mr. Reichmuth for his work as the new TAC chair. Mr. Reichmuth requested assistance from the Board in recommending a Monterey Peninsula resident with the required expertise to fill the current TAC vacancy. Ms. Sue McCloud reported that the order of today's agenda did not follow the previously approved order. Mr. Bill Hood urged the Board as individuals to consider contacting the PUC to express their opinion regarding the closure of the San Clemente Dam. 11. FUTURE AGENDA ITEMS June 14 meeting: 1. RFP for consultant study 2. Proposed budget for next fiscal year (study, operations, etc.) and each agencies' weighted obligation or contribution. 12. ADJOURNMENT The meeting was adjourned at 8:00 p.m. _____/s/________________ Carmelita Garcia, Secretary Monterey Peninsula Regional Water Authority