Monterey Peninsula Regional Water Authority

MINUTES MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) Director's Meeting 7:00 PM, Thursday, May 12, 2016 COUNCIL CHAMBERS 580 PACIFIC STREET MONTEREY, CALIFORNIA ROLL CALL Directors Present: Director Downey, Director Edelen, Director Pendergrass, Director Rubio, Director Dallas, Interim President Kampe Directors Absent: None Staff Present: Executive Director Cullem, Clerk Romero Staff Absent: Legal Counsel Don Freeman President Kampe called the meeting to order at 7:02pm. PLEDGE OF ALLEGIANCE REPORTS FROM BOARD DIRECTORS AND STAFF President Kampe announced that there is a transition in the Board, with Jason Burnett stepping down as the Authority President, and thanked everyone for their patience during this time. He also welcomed Carmel Mayor Steve Dallas as an interim Director for the Authority. President Kampe reported that he went to Sacramento to meet with the California Department of Fish and Wildlife to discuss the Cease and Desist Order (CDO) and the concerns of the Carmel River Steelhead Association about the health of the steelhead population. The outcome of the meeting was positive and the agencies are working together on the steelhead issue. Executive Director Cullem reported that he, Director Kampe and previous President Burnett recently met with the California Public Utilities Commission (CPUC) regarding the rebuttal process. He also reported that letters were sent to the National Oceanic and Atmospheric Administration (NOAA) and the Defense Base Closure and Realignment Commission (“BRAC”), in effort to gain support from these agencies on the Water Supply Project. A letter was sent to the County requesting they contribute their fair share to the Authority. He added that All settling parties are on board with extending the CDO deadline. Director Edelen questioned why the Steelhead Association hasn’t given support for the Authority. Executive Director Cullem responded that although the Steelhead Association has remained neutral on supporting the Authority’s mission, in the end they will likely be supportive. President Kampe said the Steelhead Association is afraid of losing the fish population, but realizes that the Authority wants to help save water and the fish population in the Carmel River. President Kampe noted that an article in the newspaper was published reporting that the CPUC admitted responsibility for the delay in the Environmental Impact Report (EIR). He also announced that he has spoken to Jason Burnett who has offered to make himself available on an on-call basis as a liaison to help with the Authority. Director Downey made a request that the Mayors go after the County for their fair share of the contribution to the Authority. She also said that Ground Water Replenishment (GWR) has been  MPRWA Minutes Thursday, May 12, 2016 successful in producing potable water. She requested more frequent updates in the future regarding public water and deep water. Director Dallas recommended that a letter be sent to all of the County Supervisors requesting the County pay their fair share. PUBLIC COMMENTS None APPROVAL OF MINUTES 1. March 24, 2016 and April 14, 2016 Action: Approved Minutes from March 24, 2016, continued Minutes from April 14, 2016 PUBLIC COMMENTS None DISCUSSION Executive Director Cullem requested that the Minutes from April 14 be pulled because they were not ready. Director Downey and Director Dallas both abstained from voting because they were not present at the March 24th meeting. On a motion by Director Pendergrass, seconded by Director Edelen, and carried by the following vote, the Monterey Peninsula Regional Water Authority Approved Minutes from March 24, 2016, and continued the Minutes from April 14, 2016: AYES: 4 DIRECTORS: Edelen, Pendergrass, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 2 DIRECTORS: Dallas, Downey RECUSED: 0 DIRECTORS: None CONSENT ITEMS The Board requested that Item #3 be removed from consent. PUBLIC COMMENTS None On a motion by Director Downey, seconded by Director Edelen, and carried by the following vote, the Monterey Peninsula Regional Water Authority Approved the Consent Agenda, except for Item #3: AYES: 6 DIRECTORS: Dallas, Downey, Edelen, Pendergrass, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, May 12, 2016 2  MPRWA Minutes Thursday, May 12, 2016 2. Approve and File Authority Checks Through May 12, 2016 Action: Approved Checks 3. Receive a Copy of the Final Amended Application for Order Modifying State Water Board Order SWB 2009-0060 (Cease and Desist Order) Action: Removed from Consent; Discussed; Received Amended Application Executive Director Cullem clarified that the amendment in the Final Amended Application for Order Modifying State Water Board Order SWB 2009-0060, reflects the change in the number of acre feet that California American Water can take from the Carmel Valley River to 8,310. All settling parties have agreed to this amendment in the application, which was submitted in time. The Board did not take any action on this item, the Amended Application was received. PUBLIC COMMENTS None AGENDA ITEMS 4. Consider and Decide Board Officer Assignments Following the Departure of Board President Jason Burnett Action: Approved the Assignment of Vice President Kampe as the President of the Authority until the Election in July Executive Director Cullem said that since Jason Burnett is no longer the Authority President, it is recommended that Vice President Kampe be assigned the role of Acting President until the Board has an election in July. PUBLIC COMMENTS None DISCUSSION The Board agreed that the recommendation is appropriate and covered by the Authority’s bylaws. On a motion by Director Downey, seconded by Director Edelen, and carried by the following vote, the Monterey Peninsula Regional Water Authority Approved the Assignment of Director Kampe as Board President until the Election in July: AYES: 6 DIRECTORS: Dallas, Downey, Edelen, Pendergrass, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, May 12, 2016 3  MPRWA Minutes Thursday, May 12, 2016 5. Review the Brine Discharge Agreement and Authorize Authority Executive Director, President/Vice President, and/or Special Counsel to Negotiate Final Terms and Sign the Agreement Action: Approved the Brine Discharge Agreement with the Condition that the Monterey Peninsula Water Pollution Control Agency Accept Mitigation and Authorized Authority Executive Director, President/Vice President, and/or Special Counsel to Negotiate Final Terms and Sign the Agreement President Kampe gave a brief explanation of the Brine Discharge Agreement. He stated that discussions between representatives of Cal Am, the Monterey Peninsula Water Management District (MPWMD), the Monterey Peninsula Water Pollution Control Agency (MPWPCA), the Surfriders Association, and the MPRWA, were conducted to address brine disposal, monitoring, and permits. The Authority President, Special Counsel, and other interested parties have sought to develop an acceptable brine discharge monitoring solution. President Kampe requested Legal Counsel’s input on this item, and Russ McGlothlin was called and put on speakerphone during the meeting. Mr. McGlothlin agreed with President Kampe’s explanation added that the issue of monitoring brine discharge in two locations will be resolved. Mr. McGlothlin continued that the recommendation is that the Board authorize the Executive Director, President/Vice President, and/or Special Counsel to negotiate the minor remaining issues and sign the agreement. Director Rubio voiced concerns about any mitigations of the diffuser, and questioned if this was brought up at the last MPWPCA meeting. Mr. McGlothlin responded that if this item is approved tonight, the Board should add a condition in the motion that MPWPCA is comfortable with the mitigation. PUBLIC COMMENTS None DISCUSSION Director Rubio suggested that the Authority approve the Brine Discharge Agreement and add the condition regarding MPWPCA acceptance of mitigation. On a motion by Director Rubio, seconded by Director Downey, and carried by the following vote, the Monterey Peninsula Regional Water Authority Approved the Brine Discharge Agreement with the Condition that the Monterey Peninsula Water Pollution Control Agency Accept Mitigation and Authorize Authority Executive Director, President/Vice President, and/or Special Counsel to Negotiate Final Terms and Sign the Agreement: AYES: 6 DIRECTORS: Dallas, Downey, Edelen, Pendergrass, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, May 12, 2016 4  MPRWA Minutes Thursday, May 12, 2016 6. Receive Report, Discuss, and Approve an Increase in the FY 2015-2016 Budget to Provide for Additional Special Counsel Services and Authorize Utilization of $50,000 from the Reserve Account Action: Approved moving $50,000 from Reserve Account for Special Counsel Services Executive Director Cullem said that $25,000 is required for special counsel expenditures, including bills from last year that need to be paid. He requests that the board approve an extra $50,000 for legal counsel. This request $50,000 to be reallocated for special counsel is based on the projections from last year, and the bills from last year that need to brought up to date. PUBLIC COMMENTS None DISCUSSION The Board expressed that the expenditures on legal counsel are an important investment at this critical stage. The Board recognized that legal counsel has been vital throughout the process with the CPUC. On a motion by Director Edelen, seconded by Director Rubio, and carried by the following vote, the Monterey Peninsula Regional Water Authority Approved an Increase in the FY 2015-2016 Budget to Provide for Additional Special Counsel Services and Authorize Utilization of $50,000 from the Reserve Account: AYES: 6 DIRECTORS: Dallas, Downey, Edelen, Pendergrass, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None 7. Receive a Report on the Preliminary Budget for FY 2016-2017 and Provide Staff Direction Action: Received Report Executive Director Cullem reported that he has kept this year’s budget relatively the same, with the addition of the projected cost of extra legal counsel. The proposed budget amounts to $350,000 for fiscal year 2016-2017. PUBLIC COMMENTS  George Riley, MPRWA Technical Advisory Committee Member, said that instead of funding a full year of legal services, a higher priority should be on political input from the Authority. He questioned if the benefits of legal counsel are worth the cost and suggested that political pressure at this stage is more valuable.  A resident commented that the legal issues facing the Authority have been interesting to him. Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, May 12, 2016 5 MPRWA Minutes Thursday, May 12, 2016  John Narigi, representing the Coalition of Peninsula Businesses, said that now is not the time to cut back on the budget. He added that the Authority has tremendous credibility and requested that the Authority no pull back. He said that the County needs to pay their fair share, and it's wrong that they haven’t contributed. Receiving no further requests to speak, public comments was closed. DISCUSSION President Kampe inquired if the Cities could make quarterly payments, instead of one lump sum. Director Rubio questioned what the increased cost would be per each City. Director Cullem responded that he will provide an updated contribution summary for each City, stating what the contribution amount will be if the County does pay or doesn’t pay their fair share. Director Edelen said he agreed with Director Downey's suggestion to meet with the County and apply pressure for them to make their fair fair contribution. President Kampe reported that 6 weeks ago the Authority received pushback from the County about contributing. Director Downey suggested putting pressure on the County through the media. Executive Director Cullem suggested that the Mayors make public comment during the next Board of Supervisors meeting, when the press is present. The Board agreed with this suggestion. President Kampe voiced support of the $350,000 budget. Director Dallas said that letters should be sent to the County and that press should be notified, and then again at the meeting. Director Pendergrass observed that the representative of the County stopped attending the MPRWA meetings, and stated that the County Board of Supervisors have been irresponsible by not contributing. Director Downey made a motion to approve budget, to write a letter to the County, and go to the next County Board of Supervisors meeting. Director Edelen amended motion to include that the letter be sent to the County in advance and state that the Authority will be attending the County meeting. President Kampe recommended that the letter come from the Authority Chair, and not mention the Authority attending the meeting. Director Edelen withdrew his amendment to the motion. On a motion by Director Downey, seconded by Director Dallas, and carried by the following vote, the Monterey Peninsula Regional Water Authority Approved the Preliminary Budget for FY 2016-2017, and Authorized the Chair to Write a Letter to the County, and Attend the next Board of Supervisors Meeting: AYES: 6 DIRECTORS: Dallas, Downey, Edelen, Pendergrass, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None Director Dallas recommended that a press release be made regarding the County not making their fair share contribution, and make a point that water is a high priority. Executive Director Cullem suggested that the press release be addressed after giving the County another chance to make their contribution. The Board discussed ideas regarding an Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, May 12, 2016 6  MPRWA Minutes Thursday, May 12, 2016 editorial in the paper, and getting media coverage on this topic. 8. Receive an Update on the Summary Project Schedule for the Monterey Peninsula Water Supply Project (MPWSP) and the Status of Test Slant Well Operations Action: Received Update; Discussed Ian Crooks with Cal am presented an update on the MPWSP schedule, including the projected schedule for GWR being available for use in 2018. He reported that pipeline construction will begin in 2017. Executive Director Cullem stated in regard to the MPWSP schedule, once the Certificate of Public Convenience and Necessity (CPCN) is obtained, approval from the City of Marina for coastal development permits could be a lengthy process, especially if Marina appeals to Coastal Commission for resolution and ends up in litigation. Mr. Crooks said that there is a 6 month schedule for this process. Director Rubio inquired if the permit application for the wells is ready. Mr. Crooks responded that Marina could start preparing the permit application now, or ideally as soon as the EIR is completed. PUBLIC COMMENTS  Mr. Caruthers said that he would like to see a website that gives information to the public on the water supply project. Receiving no further requests to speak, public comments was closed. President Kampe responded to Mr. Caruthers that the MPRWA does have a website, mprwa.org, that is simple but good information is available there. ADJOURNMENT Meeting adjourned at 8:42pm. ATTEST: Nova Romero, Clerk of the Authority MPRWA President Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, May 12, 2016 7