Monterey Peninsula Regional Water Authority

MINUTES MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) Regular Meeting 6:00 PM, Thursday, September 27, 2012 FEW MEMORIAL HALL 580 PACIFIC STREET MONTEREY, CALIFORNIA Directors Present: Bachofner, Burnett, Edelen, Pendergrass, Della Sala Directors Absent: Director Garcia Staff Present: Monterey City Manager, Clerk of the Authority ROLL CALL President Della Sala called the meeting to order at 6:06 p.m. PLEDGE OF ALLEGIANCE OTHER BUSINESS 1. Accept Monterey County As Participatory Member of the Monterey Peninsula Regional Water Authority And Authorize Amendment to Bylaws Legal Council Davi presented the report. On August 1, 2012 the Board sent a letter to The County of Monterey inviting participation in the MPRWA. The County voted on September 11, 2012 unannimously to join the MPRWA and appointed Supervisor Dave Potter as their representative. In addition, they approved a payment of $83,300 for Fiscal Year 12/13. The board would have the discretion to request a pro ration cost for the County to join, determined $5,561.611. Staff answered questions from the board. President Della Sala opened the item to public comments. Having no requests to speak President Della Sala closed public comment. On a motion by Director Burnett, seconded by Vice President Bachofner, and carried by the following vote, the Monterey Penninsula Regional Water Authority Accepted The County of Monterey As A Participatory Member of the Monterey Peninsula Regional Water Authority Authorizing an Amendment to the Bylaws, and accepting the $83,300 cost share for FY 12/13 and waiving the pro-rated cost sharing amount of $5k. AYES: 5 DIRECTORS: Bachofner, Burnett, Edelen, Pendergrass, Della Sala NOES: 0 DIRECTORS: None ABSENT: 1 DIRECTORS: Garcia ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None  MPRWA Minutes Thursday, September 27, 2012 REPORTS FROM BOARD DIRECTORS AND STAFF President Della Sala opened the item for reports from the Board. President Burnett reported that the Monterey Penninsula Water Management District addressed the topic of gonvernance simlar to the discussion at the last MPRWA meeting, but differed on the condition the MPWMD proactivly be a public owner. The result will be submission of seperate organizational letters to the CPUC. The Monterey County Board of Supervisors will have a special meeting on September 28th, 2012 to review the same question of governance. Director Pendergrass reported that the MRWPCA voted on the budget for growndwater replenishment. The weighted vote results was 11 to 9 against that budget. Groundwater replenishment is being fought by the valley. Director Burnett requested a breakdown of the jurisdictions voting against the motion to be able discuss the dissention. Director Pendergrass indicated those dissenting were the Cities of Salinas, Marina Coast, Pacific Grove and The Moss Landing Harbor District. Monterey County abstained from the vote. Director Garcia arrived at the meeting at 6:26 p.m. expressing regret for being late and stated for the record that she supports the joining of Monterey County to the MPRWA. Vice President Bachofner clairfied the resulting impacts of the vote and stressed that timing was the issue. Director Burnett said his previous meetings with local Agricultural Representatives to understand water rights concerns were amiable conversations. Next week there will be another negotiating session with the farmers. Supervisor Potter arrived and was welcomed by the board at 6:27 p.m. 2. Receive Report from Technical Advisory Committee (TAC) TAC Chair Stoldt gave an update about the September 18, 2012 TAC Meeting. Item on the agenda included a presentation and discussion from Consultant Chris Helm regarding environmetnal and permitting issues and a response to his preliminary look at the three targeted desalination proposals. Mr. Helm's scope has been adjusted to reflect compliance activities. Stoldt indicated that two reports have been recieved to date. Responses were slower than anticipated and a final report should be available on or before October 31, 2012. Lastly, one invoice for consulting services has been recieved to date and forwarded on to the finance officer for payment. Monterey Peninsula Regional Water Authority Regular Meeting Minutes - Thursday, September 27, 2012 2  MPRWA Minutes Thursday, September 27, 2012 a. Summary of September 17, 2012 Technical Advisory Committee Meeting b. Review of Consultant Schedule and Progress PUBLIC COMMENTS President Della Sala opened public comment for items not on the agenda. George Riley speaking as a citizen, concerned about the scheduel the CPUC is on. There has been a fair amount of effort related to governance. Huge discussion of meeting deadline. FAIR amount of discussion regarding cost. Concern, the longer you wait to discuss, the longer it will take to have clear understanding of the paramaters. Concern of public financing. Proving advantage public financing is less expensive than cal am. 2) too much lip service, not enough discussion of the opportunites going forward. Expressed concern that there has been very little discussion on paramaters, opportunties of the costs of the projects, funding available and how to approach cost of public financing. Requested to agendize a discussion of costs. Competition breeds lower costs. Tom Rowley - representing MP Taxpayer association. Attending meetings that discussed many issues, but the cart before the horse. Spoke to Mr. Rileys concerns about "stranded Costs". Who is going to pay for stranded costs? They will wind up with the ratepayers. This board needs to be present when other organizations make decisions that change the costs to the residents. Looking for more leadership from the board, when it is time appropriate. TAC Stoldt reminded there is CPUC workshop is on Dec 11,12 & 13 on Costs and Cost Impacts. Nelson Vega spoke to Mr. Rileys comments. He disagress that money should not be spent until a project is decided on. Public financing is not needed if it's not a public source. True competition is based only on costs and the scope requested would be much larger. Pigeonholed into a smaller project than is needed. Having no further comments to speak on Item #2, President Della Sala closed public comment. Director Burnett commented after public comments that if we have time, we may want to take on that issue in advance so we can work out our position and be prepared with a fully fleshed out proposal by December 11th. President Della Sala opened public commets -THEREALL PUBLIC COMMENTS Nelson vega : the tax on the parcel, not on how much water was used. commented on votes that were cast to put something on the ballot in regard to the tax on the bill. Why are duplicating process and creating buracracys that are not necessary. Here to day that we should not have Mr. Stoldt on the tac because he cannot serve two masters and it will be a conflict of interest. He had a no confidence vote a while ago and President Della Sala is serving at the pleasure of the Board and is donating his time to this process. There may be a time that ther eis a vote to disband this organization, which was formed to speak with one voice and move a project forward that the WMD was unable to do in Monterey Peninsula Regional Water Authority Regular Meeting Minutes - Thursday, September 27, 2012 3  MPRWA Minutes Thursday, September 27, 2012 the past. There may come a time we won't have both organizations serving, but this is not the time. Having no fruther comments to speak, he closed public comments. bachofner, not may havea time it will dispand, but WILL have a time it will disband. Edelen - just because we have water in our name does not mean we have authority to oversea or change all things water, jsut finding more water. Can't bring extraneious items that are not related to the mission into this meeting and that can take place after ward. APPROVAL OF MINUTES Mr. Potter Abstains Motion to Approve MINUTES for August 1, 2012 and September 12, 2012 AYES: 0 DIRECTORS: None NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None 3. August 1, 2012 4. September 12, 2012 Special Meeting AGENDA ITEMS 5. Direct the Selection of Legal Counsel and Authorize the President to Execute a Professional Services Contract with the Selected Firm/Attorney Legal Council Davi presented the report. Previously requested the City of Monterey to release an RFQ for legal council, August 10th it was received and 21 proposals were recieved. Ad Hoc reviewed and reccomends the following 4 firms. 1) 2) 3) 4) . All were qualified and recomended based on specific criteria. These be put before the firm, for discussion and selection in open session. Staff answered questions of the board. Bachofner stated that one firm resids in Santa Cruz and the costs and timliness and the likely savings on travel time would be benficial to limit and fram the discussion down to 3 firms. $600 Monterey Peninsula Regional Water Authority Regular Meeting Minutes - Thursday, September 27, 2012 4 MPRWA Minutes Thursday, September 27, 2012 a month per month Burnett: how many of the firms would be willing to accept a retainer. Davi responded as 1. Potter- none of the associate fees were included except for one. Work can always be done by associates. No specifics, only assumptions can be made. Della sala opened the item for public comments: Anthony Candovy, principal attorney at _____ & Kevonovich. Did put a reduced rate in their. principally been a practice not to charge for travel but since it is a further time. Don Freeman: Spoke in support of his submission and gave qualifications for his consideration of his firm. Jason Redder: Partner at L& G, submitted proposal, very well qualified for competent legal services. Question of partners vs associates. Each partner has 10 to 15 years. Rates are reflective of experience. Richard Glenn: Thompson Law office, it's the closest and uses no milage to get here. Did not recognize socliation for a fixed fee. Bundlin services is very doable. Paralegal rate at $110, very flexible to provide type of services a lawyer can get caught up in, which can save costs. Substantial experience in public agency work, and water supply issues. Having no further questions to speak on item 5, closed public comment on this item. Pendergrass: What we really need is someone that can get on the ship that has already been there, knows us, knows penninsula issues, knows the players. Reccomend Don Freeman's firm. Does not sees a bias in what he does. Needs someone that can jump on running and not have to get up to speed. Strongly reccomend Don Freeman and his office. Likes retainers instead of hourly rates. Edlenen: 4 firms represented were all well qualified, the fact that all four firms showed up was very professional. Agreed with Pendergrass due to the sucessful relationship and work that Don Freeman has provided, he would like to go with experience factor. Burnett moved to accpet firm of Don Freeman and the option of a retainer of $2500, Pendergrass seconds. There is a lot of history and it's not that the other firms can't get up to speed but don has been doing a good service at this time. bachofner spoke to the motion: Interested in hering fmore fromthe Thompson lawfirm, regarding the fixed cost rates as well. Decision is to the greatest degree possible go with the most local , has a net positive impact on the penninsula. Not be averse to coming back to a next meeting to get a presentation from the Thompson law firm. Garcia: Points out specifics of Don Freeman's proposal. Staff Davi spoke to her concern that the retainer rate would not be used up if extra services were billed at a higer rate. the $2500 flat rate would not be affected. Only used during litigation. Option for review after 90 days. Monterey Peninsula Regional Water Authority Regular Meeting Minutes - Thursday, September 27, 2012 5 MPRWA Minutes Thursday, September 27, 2012 Don Freeman came back in to discuss the fee schedule presented in the proposal. Rarely charge the extrordainary fees, unless must attend ligigation. Bachofner: How many hours were you spending on a monthly basis? REsponse: well more than 10 hours. Clarified the 90 day review peiord to be fair to both the board and personally. Potter - he expressed concerned that Mr. Freeman serves at the pleasure of too many of the local jurisdictions and there would be a concern with an element of influence. This should be subject to consideration of the board. If the issue of conflict came up it would most likely be at a critical time and ti would be unreasonable to have to continuously retain outside council in times of conflict. Freeman: Does represent other JPAs but he would be required to bring a letter to each of the jurisdictions for which he participates to deal with any conflicts of interest. If there was a conflict, he is conservative, and he would suggest to the Board retaining seperate legal council. Bachofner: Concerned about conflict of interest as well. Rich Glenn worked for th City of Seaside previously land the Thompson law firm would be a good selection, there is no conflict of interest and he has extensive public agency experience Garcia: Has had great experiences with Mr. Freeman and hsa been very professional and does not forsee that there would be a conflict of interest. Motion: To select Perry and freeman, the motion is the alternative fee of $2500 - All in favor - Passed unanimously. "Accept don freemans propsal of a fixed month contract of $2500 with teh undertsanding of the addiotnoal costs would bge above and beyond and there would be a 90 da yreview period. " Davi will review the contract Freeman would submit all costs for review and approval seperatly. Motion to Approve Direct the Selection of Legal Counsel and Authorize the President to Execute a Professional Services Contract with the Selected Firm/Attorney Don Freeman AYES: 6 DIRECTORS: Bachofner, Burnett, Edelen, Garcia, Pendergrass, Della Sala NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None Motion to Approve Direct the Selection of Legal Counsel and Authorize the President to Monterey Peninsula Regional Water Authority Regular Meeting Minutes - Thursday, September 27, 2012 6  MPRWA Minutes Thursday, September 27, 2012 Execute a Professional Services Contract with the Selected Firm/Attorney Don Freeman AYES: 6 DIRECTORS: Bachofner, Burnett, Edelen, Garcia, Pendergrass, Della Sala NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None 6. Review the Necessity/Desirability of Executive Director City Manager Meurer presented the report on this item. President Della Sala opened public comment on this item. Tom Rowley: Very lucky to have him involved, teh workshops. The sooner the ED is appointed, the more efficient the Agency can function. Della Sala Closed public comment. Bachofner - reccomends to adjourn to closed session and supports the hiring of an ED. Garcia: Agrees with Meurer that CMs are challenged to compelte their jobs with the limited resources, and thinks this is the right path to go down sooner or later. Burnett: Does not disagree with the need, but focus shoudl be getting the right person. Does not want to be forced into an arrangement that is not ideal. Concensus to move forward with an executive director. Is a motion necessary? Freemean: Appropriate. Garcia Makes motion, Burnet to indicate that the authrit board will hire an exeutive director. Motion to Approve Review the Necessity/Desirability of Executive Director AYES: 6 DIRECTORS: Bachofner, Burnett, Edelen, Garcia, Pendergrass, Della Sala NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None Monterey Peninsula Regional Water Authority Regular Meeting Minutes - Thursday, September 27, 2012 7  MPRWA Minutes Thursday, September 27, 2012 7. Discuss Agenda Items for Future Meetings President Della Sala introduced this item requesting additional agenda topics for future meetings. Director Burnett requested that a discussion over the surcharge take place in the future due to the fact the issue may come before the Board prior to the completion of the SPI Consulting report. Having no further requests to speak from the board, President Della Sala brought it out to the public. Having no requests to speak, he closed public comment on the item. 8. Information President Della Sala introduced the item and indicated that there are previous commitments in the Council Chamber at 6:00 p.m. through the end of 2012 and we can renegotiate the 6:00 hour for the 2013 meetings. President Della Sala adjorned the meeting to Closed Session at 7:38 p.m. ***Adjourn to Closed Session*** ANNOUNCEMENTS FROM CLOSED SESSION Legal Council Don Freeman announced that the Board gave confidential direction to staff. ADJOURNMENT ATTEST: Lesley Milton, Clerk to the Board, Authority Clerk MPRWA President Monterey Peninsula Regional Water Authority Regular Meeting Minutes - Thursday, September 27, 2012 8