Monterey Peninsula Regional Water Authority

MINUTES MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) Special Meeting 7:00 PM, Thursday, October 25, 2012 COUNCIL CHAMBER FEW MEMORIAL HALL OF RECORDS MONTEREY, CALIFORNIA Directors Present: Bachofner, Burnett, Edelen, Garcia, Pendergrass, Della Sala Directors Absent: Staff Present: Acting Executive Director, Legal Counsel Clerk of the Authority ROLL CALL Mayor Della Sala called the meeting to order at 7:08 p.m. PLEDGE OF ALLEGIANCE REPORTS FROM BOARD DIRECTORS AND STAFF 1. Reports from Technical Advisory Committee Action: No Reports Received There were no reports from the TAC staff due to the fact the TAC has not had a meeting since the last MPRWA Authority meeting. Director Burnett indicated that he will be new Chair of the TAC. 2. Reports from Authority Directors Action: Reports Received Director Burnett reported he meet with the President of Cal Am, discussing the October 1, 2012 letter sent by the MPRWA, and governance desires of the MPRWA, noting he thinks there is still an opportunity for optimal governance. He stated Cal Am expressed a preference that items included in category A of the letter be listed instead in Category B. President Della Sala informed the Authority that there was a public records request received from Mrs. Paterson that staff will be responding to and he also reminded the Directors that Authority meetings will be held at 7:00 p.m. through the end of 2012. PUBLIC COMMENTS President Della Sala opened the floor to comments from the public. Doug Wilhelm discussed an analysis of studies from the newly drafted Southern California Desalination Agreement for potential ideas for the MPRWA. Nelson Vega questioned why Director Burnett was meeting with the Cal Am President and expressed concerns about transparency. President Della Sala responded to Mr. Vega’s comments indicating Director Burnett was appointed as part of the ad hoc group tasked with governance and financing. Safwat Malek spoke in support of Mr. Wilhelm’s comments. George Riley presented a shortened version of the presentation he requested to be agendized at a future MPRWA meeting which is to coordinate rate paper interest into a single message that  MPRWA Minutes Thursday, October 25, 2012 the number one priority should be lowest cost. Mr. Riley also expressed concerns over current and future price increases and requested that the item be addressed now, so that the projects can move forward collectively and not independently. Libby Downey applauded Director Burnett for his efforts to work with Cal Am and his continued work with governance desires of the desalination project. She also expressed concern that there is a caveat listed in the NOP which allows for Cal Am to veto any suggestions presented during the comment period and requested that the Authority look toward MPRWMD to lend support to their desalination proposal. She asked when the consultant’s reports would be made available and President Della Sala responded that they should be available October 31st. Director Edelen thanked Mr. Vega for his comments on keeping the Authority transparent. APPROVAL OF MINUTES Action item: Amended and Approved On a motion by Director Burnett and seconded by Vice President Bachofner and passed by the following vote, the MPRWA voted to approve the minutes as amended by striking the vote of Supervisor Potter from the record of September 27, 2012 as Monterey County has not signed an agreement to join the MPRWA, therefore is not a voting member. 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 3. September 27, 2012 AGENDA ITEMS 4. Receive Presentation Regarding the Proposed City of Pacific Grove Small Water Supply Project And Provide Direction for Potential Inclusion Within The Draft Response Letter To The California Public Utilities Commission Notice of Preparation Action: Received Presentation, Discussed and Provided Direction to Staff Pacific Grove City Manager Tom Frutchey gave a presentation about the Small Water Projects developed as potential solutions to the water shortage. Pacific Grove has a unique situation being isolated geographically as well as being regulated as an area of biological significance (ASBS), stressing these projects are designed to convert the fully potable water utilized by the golf course to grey water freeing up potable water as source of water come the 2017 deadline imposed by the CPUC. Director Edelen questioned how the projects would be funded and City Manager Frutchey responded that it depends on the participation levels of other companies and jurisdictions that support the objectives. President Della Sala opened the item for public comments. Safwat Malek encouraged the cities that were agreeable to the projects to join with Pacific Grove to bring the costs down. With no Monterey Peninsula Regional Water Authority Special Meeting Minutes - Thursday, October 25, 2012 2  MPRWA Minutes Thursday, October 25, 2012 further requests to speak President Della Sala brought the discussion back to the board. Director Pendergrass expressed support that this project be requested to the CPUC to be evaluated further and Director Garcia agreed. Burnett expressed the need to keep an eye on cost effectiveness. President Della Sala expressed concern that the citizens do not see the collaboration that is occurring between the cities in relation to Areas of Biological Significance (ASBS) and water replenishment. He then closed discussion on the item. 5. Consider Submission of a Letter to the Monterey Peninsula Water Pollution Control Agency Supporting the Proposed Ground Water Replenishment (GWR) Action: Discussed and Approved with Amendments Director Pendergrass gave a brief description and rationale for the letter, requesting the MPRWA sign the attached letter supporting the proposed Ground Water Replenishment. President Della Sala opened the item for public comment. Nelson Vega questioned the time line of this project versus the goal of the desalination facility and expressed the need for a large enough desalination facility. With no further requests to speak, President Della Sala closed public comments. Director Pendegrass spoke to Mr. Vega’s comments indicating that there is an issue with the farmers’ agreement and the GWR is not related to flows. President Della Sala spoke to Mr. Vega's comments, expressing the scenario that if we try to build a facility that is too large and it does not meet the deadline it would look better if there were other avenues the Authority was trying to pursue concurrently Director Edelen spoke of an example of a facility that was built larger than necessary and that 40% of the generated water was dumped back into the ocean to keep costs down, but the nature of the regulations in California will never allow that to happen therefore it is important to get it through the CPUC with the minimum number of lawsuits. On a motion by Director Pendergrass and seconded by Director Garcia, the MPRWA moved to approve sending the drafted letter to the MRWPCA in support of Ground Water Replenishment (GWR). President Della Sala opened the item to discussion on the motion and requested minor word choice edits for the Authority to consider. Director Pendergrass and Director Garcia amended the motion to include the edits. Director Burnett asked if the board would consider making an offer for assisting with public outreach. President Della Sala redirected the conversation back to the agenda item. On a motion by Director Pendergrass and seconded by Director Garcia, and carried by the following the MPRWA moved to approve sending the drafted letter to the MRWPCA in support of groundwater replenishment (GWR) as amended. 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 Special Meeting Minutes - Thursday, October 25, 2012 3  MPRWA Minutes Thursday, October 25, 2012 6. Review and Approve MPRWA Letterhead Format and MPRWA Seal for Use on Authority Correspondence and for Attesting Authority Records Action: Discussed and Approved as Amended Clerk to the Authority Milton presented the report indicating the MPRWA has no formally adopted letterhead for official correspondence and that the current document being used had not been approved. City of Monterey staff utilized in house resources to develop the attached letterhead, logo and draft seal for use on formalizing official documents. Vice President Bachofner expressed desired changes, discussed marketing and branding strategies and requested time to generate documents and graphics that were more graphically pleasing. Vice President Bachofner made a motion to officially adopt the old letterhead for interim use until other graphic designs could be provided. Motion died for lack of a second. On a motion by Director Garcia and seconded by Director Burnett and carried by the following vote, the MPRWA reviewed and approved the attached MPRWA format with edits and the MPRWA seal for use on authority correspondence and for attesting Authority records: AYES: 5 DIRECTORS: Burnett, Edelen, Garcia, Pendergrass, Della Sala NOES: 1 DIRECTORS: Bachofner ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None Vice President Bachofner disagreed with using the drafted documents and said that there is expertise available for a better product. 7. Response Letters Regarding California Public Utilities Commission Application 12-04-019 (Information Only) Action: Received a. October 1, 2012 The letter dated October 1, 2012 addressed to Cal Am was submitted for information only to ensure it was available to the public. Director Edelen commented that the two letters included in the packet were articulate and well written. President Della Sala opened the item for discussion from the public and with no requests to speak, closed public comment. b. Draft Letter November 9, 2012 Action: Received and Discussed and Direction Given to Staff Legal Counsel Freeman introduced the item and indicated the attached was a draft letter generated from the direction provided by the Authority at the October 22nd special meeting. Copies were provided to the public at the start of the meeting. Pacific Grove City Manager Tom Frutchey requested amendments regarding the City of Pacific Grove small water projects on page 3. Documents were provided with suggested wording to the Authority and Clerk. Mr. Freeman answered questions from Board. Director Burnett requested an edit to the implied reduction stating that .5% was less than significant. Mr. Frutchey agreed to the request. President Della Sala opened the floor for public comment and had no requests to speak. Vice Monterey Peninsula Regional Water Authority Special Meeting Minutes - Thursday, October 25, 2012 4 MPRWA Minutes Thursday, October 25, 2012 President Bachofner expressed appreciation for the well written, strong letter and hopes it receives traction. The Authority unanimously agreed to the requested edits. With no further business to come before the board President Della Sala adjourned the meeting at 9:00 p.m. ADJOURNMENT ATTEST: Lesley Milton, Clerk of the Authority MPRWA President Monterey Peninsula Regional Water Authority Special Meeting Minutes - Thursday, October 25, 2012 5