Monterey Peninsula Regional Water Authority

MINUTES MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) Regular Meeting 7:00 PM, Thursday, February 28, 2013 City Hall, City of Carmel By the Sea Directors Present: Edelen, Burnett Kampe, Pendergrass, Rubio, Della Sala Directors Absent: None Staff Present: Executive Director, Legal Counsel, Clerk ROLL CALL President Della Sala Called the Meeting to order at 7:00 p.m. PLEDGE OF ALLEGIANCE REPORTS FROM BOARD DIRECTORS AND STAFF Vice President Burnett reported about a meeting with the Coastal Commission and Cal Am, and Executive Director Reichmuth last week discussing the permitting process for the Monterey Peninsula Water Supply Project test wells as well as for the entire facility. Expectation given by the Director indicated the permitting application does not have to wait until the CPUC decision is released. Vice President Burnett will schedule regular meetings with the Coastal Commission and Cal Am and report back to the Authority. Director Edelen expressed support for meetings with the Coastal Commission that if in the future there is a need to request a deadline extension for the Cease and Desist Order, Authority efforts will be noted. Vice President Burnett added that under the tolling agreement for the CDO litigation, there was a commitment to meet with the State Water Resources Control Board and that he and TAC Member Stoldt have initiated requests for regular meetings. Director Pendergrass reported that the Monterey Regional Water Pollution Control Authority (MRWPCA) unanimously voted to move forward with hiring an Environmental Consultant for the Ground Water Replenishment Project. He then wished City of Salinas good luck with the Deep Water Desal Project. Executive Director Reichmuth reported on attending a planning workshop/feasibility study hosted by MRWPCA and had a chance to reiterate the Authority policy for the portfolio approach and compliance with lots of record, economic bounce back, etc. He reported that water rights issues were given much attention and that Vice President Burnett attended and spoke to the timeline to pull off a successful water supply project. This meeting will lead to a scoping meeting for the environmental work for GWR. PUBLIC COMMENTS President Della Sala invited public comments for items not on the agenda. Tom Rowley questioned the status of the Environmental Impact Report (EIR) for the Deep Water Desal Project and requested routine updates on timeline the MPWSP as well as the project alternatives. He then congratulated the Authority on their 1 year anniversary. Ron Cohen posed the following questions regarding the deliberative document;  Asked if the CPUC does not allow the governance agreement does that mean the Authority is no longer going to support the project?  Questioned alternate intake strategies and asked if that included Moss Landing,  Questioned consideration of tapping the power plant as an interim solution, not necessarily permanent,  Questioned if the People’s Project could be defined as limited in size therefore would go through easier review process,  Questioned source water intake and why the authority is not more adamant about infiltration gallery and abandoning slant wells  Questioned discussions for bringing costs down, and asked if the same applied for the other two projects and could the costs be reduced Lastly, he said that ratepayers are currently paying Cal Am $4,500 per acre foot for water today, which is prior to desal and commented that Cal Am is the most inefficient water company in the State. Director Kamp arrived at 7:15 p.m. Director Burnett spoke to Mr. Cohen’s comments indicating that the Authority has not taken a position on where the contribution will go but the Authority and the Monterey Peninsula Water Management District are working through the details with the hired financial consultant. There are no restrictions on the public contribution at this time requiring it be applied to one part of the project, but some may come out of the process from the expert opinion. Regarding the governance agreement, if Cal Am rejects signing, then the issue will be brought back to the Authority for discussion and decision. Regarding alternative intake strategies, the Authority has only conditioned that Cal Am develop an alternate well outside of the Salinas basin concurrently, the type of well has not been dictated and could possibly include an infiltration gallery. Executive Director Reichmuth said that infiltration galleries were considered by Cal Am and is considered an option to the slant wells but slant wells are more economical. The backup includes many types of wells including slant, infiltration and open ocean intake. The People’s Project is a harbor intake but has significant challenges due to impingement, etc. He then said the permitting agencies prefer slant wells if they prove to be technically feasible.  President Della Sala responded to the size of the People’s Project and indicated that the CEQA process does need to be defined, and the People’s could be easier because of the smaller size and going through a process as a regional facility will be easier than a finite region. President Della Sala then spoke to Mr. Rowley’s comments and said that both alternative projects have been reporting to the MPWMD and TAC Member Stoldt has been asked to report on the progress to the TAC. Bill Hood spoke to conflicts of interest from sitting on multiple water related agencies. He indicated that he does not interpret there to be an exemption. He urged the Authority to consider waiting until receiving an opinion letter from the Attorney General. It is not unexpected that the conflicts arise with three other water agencies in the county, but the conflict must be dealt with when it arises. With no further requests to speak, President Della Sala closed public comment. AGENDA ITEMS 1. Approve Final Agreement to Form the Monterey Peninsula Water Supply Project Governance Committee Action: Approved Don Freeman presented the report indicating that he indicated changes should have been insignificant or another non-substantial. However, Cal Am did make material changes and therefore to be in full disclosure, it should be re-approved and a resolution be adopted to amend resolution 13-005. Mr. Freemen addressed the major changes in the document and then answered questions of the board.  Change orders over $1 million  Go-No go criteria  Brown act and meetings. The Governance Committee will be bound by the brown act, and some others are up to the discretion of the committee.  Because there are four parties, a quorum is defined as three. For clarification –Cal Am is not entitled to a vote, therefore all three jurisdictions must be present for any decision to be made. Director Burnett clarified these changes were reflected in his testimony to the CPUC on February 22, 2013. President Della Sala invited public comment on the item. George Riley spoke representing Citizens for Public Water and expressed concern about the GWR Word changes that it removes the discretion the Authority had originally intended. He then spoke concerning the flexibility and authority of the MPRWA with the current language indicating it could lead to a problem down the road. He hoped GWR is rapid and ahead of the Cal Am schedule. Ronald Cohen questioned if the Authority was concerned about the $1 million contract limit that there is no language against the cumulative issuing of contracts to the same vendor that totals over $1million. Bill Hood spoke to changes to category A, and questioned that for Cal Am to  proceed if the EIR must be completed and all necessary permits in place. With no further requests to speak, President Della Sala closed public comment and the Directors responded to questions. Legal Counsel Freeman affirmed Mr. Hood’s question that Cal Am does have to have a completed EIR and have all regulatory permits in place to be in compliance with category A. Vice President Burnett spoke to Mr. Riley’s comments affirming that the Authority wants the GWR process to move forward and does not want to provide uncertainty to the lead agencies in that project. The Governance Committee will make a recommendation based on negotiations and will work through criteria in the coming months to provide the MRWPCA a guide. President Della Sala requested that this item be taken up by the TAC and brought back to the Authority as it becomes ripe. On Motion by Director Pendergrass and Seconded by Director Rubio, the Monterey Peninsula Regional Water Authority Approved the Final Agreement to Form The Monterey Peninsula Water Supply Project Governance Committee and passed Resolution 13-007. AYES: 7 DIRECTORS: Edelen, Burnett, Kampe, Pendergrass, Rubio, Della Sala NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None 2. Receive and Discuss Testimony Submitted to California Public Utilities Commission February 22, 2013 Deadline for Application (A- 12-04-019) Based on the MPRWA Approved Position Statement (Burnett) Action: Received and Discussed Director Burnett reported on the submissions made by the MPRWA to the California Public Utilities Commission by deadline on February 22, 2013 and expressed appreciation to staff members who helped with the packet preparation. He noted that Fred Keely’s letter of support for endorsing our position could be important because he was the Assemblymember when the original legislation AB 1182 was signed into law giving the Public Utilities Commission their authority. The testimony and letters of support are all included on the website www.mprwa.org Director Rubio thanked Director Burnett for his efforts and contributions and thanked the Authority for inclusion of requesting a full scale EIR consideration. President Della Sala opened the item for public comments and had no requests to speak. The MPRWA received the report and thanked Director Burnett for the efforts that he contributed to the project. 3. Discuss Opportunity for Video Transmission Services through Access Monterey Peninsula Action: Discussed and Provided Direction to Staff Clerk Milton provided the report and presented options for continuation of televising MPRWA meetings. The Authority discussed different costs and public relations needs and provided direction to staff. With no more business to bring before the authority, President Della Sala adjourned the meeting at 8:15 p.m. ADJOURNMENT ATTEST: Lesley Milton, Clerk to the Authority Chuck Della Sala, MPRWA President