Monterey Peninsula Regional Water Authority

MINUTES MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) Director's Meeting 7:00 PM, Thursday, June 9, 2016 COUNCIL CHAMBERS 580 PACIFIC STREET MONTEREY, CALIFORNIA Directors Present: Director Dallas,Director Downey, Director Pendergrass, Director Rubio, President Kampe Directors Absent: Director Edelen Staff Present: Executive Director Cullem, Legal Counsel Freeman, Clerk Romero ROLL CALL President Kampe called the meeting to order at 7:00pm. PLEDGE OF ALLEGIANCE REPORTS FROM BOARD DIRECTORS AND STAFF Director Downey reported that she attended "Water Plus Now”, with Monterey Peninsula Water Pollution Control General Manager, Paul Scuito, and he spoke at the event and received positive feedback on ground water replenishment. She announced that Mr. Chech from Public Water Now will give a presentation during public comments. Executive Director Cullem reported that there have been some questions about the number of items on the agenda, and explained that the reason they are included is to maximize transparency and to give updates to the public. PUBLIC COMMENTS  Chuck Chech gave a short presentation on the route of the 36" Monterey Pipeline. He stated that in order to install the pipeline, trenches will need to be dug up removing 9000 cubic yards of soil to accommodate the pipe, and then repair the streets. He voiced his concern about the 21 elbow joints in the pipeline which will result in a negative effect on the water flow. He opined that the cost will end up being more than the amount Cal Am proposed.  Mr. Caruthers commented that Monterey has a new County Supervisor for District 5, and Mary Adams first proposal is to address water issues on the Peninsula. He expressed his hopefulness about this change.  Tom Rowley, representing Monterey Peninsula Tax Association (MPTA), questioned who is going to review the environmental impact report (EIR) when it finally comes out. He suggested the Technical Advisory Committee (TAC) review it and make sure it's as good as it can be. APPROVAL OF MINUTES 1. Minutes from April 14, April 26, and May 12, 2016 Action: Approved minute from April 14 and May 12, 2016; continued minutes from April 26, 2016  MPRWA Minutes Thursday, June 9, 2016 PUBLIC COMMENTS None On a motion by Director Pendergrass, seconded by Director Dallas, and carried by the following vote, the Monterey Peninsula Regional Water Authority Approved the Minutes from April 14 and May 12, 2016, and continued Minutes from April 26, 2016: AYES: 4 DIRECTORS: Dallas, Pendergrass, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 1 DIRECTORS: Edelen ABSTAIN: 1 DIRECTORS: Downey RECUSED: 0 DIRECTORS: None CONSENT ITEMS Pulled item On a motion by Director Rubio, seconded by Director Downey, and carried by the following vote, the Monterey Peninsula Regional Water Authority approved the Consent Agenda: AYES: 5 DIRECTORS: Dallas, Downey, Pendergrass, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 1 DIRECTORS: Edelen ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None 2. Approve and File Authority Checks Through June 9, 2016 Action: Approved 3. Receive Report on the CPUC Resolution to Advise the SWRCB of the One Year Delay in the MPWSP EIR/EIS Action: Received Report 4. Receive Report on the SWRCB Hearing on the Amended Application for Modification of CDO 2009-0060 Action: Received Report 5. Receive Report on the Submission of a Brine Disposal Agreement and a Return Water Agreement to the CPUC Action: Received Report 6. Approve Scheduling of Presentations by Deep Water Desal (DWD) and People's Desal at Joint Board/TAC Meetings on July 14 and Aug 11, 2016 Action: Approved 7. Receive Summary Report of Phone Meetings Attended as a Representative of the MPRWA Action: Received Report Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, June 9, 2016 2  MPRWA Minutes Thursday, June 9, 2016 AGENDA ITEMS 8. Receive Report on May 26, 2016 CPUC Hearings on the MPWSP Phase 2 (GWR) Including a Presentation by Cal Am on the Inclusion of the Monterey Transfer Pipeline and Water Tank Action: Received Report and Presentation; Discussed Executive Director gave a brief introduction on this item. He explained that due to a "hydraulic barrier (trough)" in Monterey the current Cal Am system is not capable of receiving and utilizing Ground Water Replenishment (GWR) water if Pure Water Monterey (PWM) and GWR project come on line before Cal Am's desal facility. The GWR EIR included the need for a Monterey transfer pipeline but it had anticipated that Cal Am's desal facility, inclusive of the transfer pipeline, would be in place before GWR was available. With the California Public Utilities Commission (CPUC) recent one-year delay in the desal EIR process, the situation is now reversed. Ian from Cal Am provided a visual presentation on the hydraulic barrier problem and the need for the transfer pipeline. He explained that GWR will be available in the first quarter of 2018 as long as the Monterey pipeline and the Aquifer Storage and Recovery (ASR) are completed. He showed the current water distribution system, the hydraulic constraints and low pressure zones. He then showed the water distribution system once the new pipeline and ASR pump station is built and explained how it will be effective with GWR and the desal plant to distribute water throughout the system. The new system will accommodate water moving in both directions, whereas the current system cannot handle the hydraulic pressure. Ian responded to Mr. Chechsaying that the new pipeline won't be affected by the bends and the material is the same as what is used in other pipelines in other Cities. PUBLIC COMMENTS None Director Rubio said that the hydraulics drive the product. President Kampe said that in terms of the construction costs, the project was divided into 7 areas and received low bidders for each area resulting in cost savings for the pipeline, and added that time is of the essence. No action taken, received report and discussed. 9. 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 Ian Crooks gave a presentation of the MPWSP schedule and reported that not much has changed; we are waiting for the EIR. He added that that the test wells are at 92% salinity. PUBLIC COMMENTS  Tom Rowley, MPTA, questioned the true cost of GWR now that the 36" pipeline is required to make it happen. He requested a better explanation on the cost of the entire Water Supply Project, because taxpayers are going to end up paying for it. He asked when this information will be available. Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, June 9, 2016 3  MPRWA Minutes Thursday, June 9, 2016 Director Downey responded to Mr. Rowley saying that she has a complete breakdown of the cost of GWR and would be glad to share it. Executive Director Cullem added that the pipeline is not part of the cost of GWR, but is needed to transfer the water around the County. The Board agreed said that regardless of the where the source water comes from, the pipeline is necessary to distribute the water to residents throughout the County. The pipeline may be costly in the short term, but in the long term is necessary for the future of the community and the Peninsula. No action taken, received report and discussed. 10. Discuss and Set Priorities on the Major Tasks Ahead for the MPRWA Action: Discussed Priorities President Kampe briefly described the purpose of the discussing MPRWA workplan priority ranking for 2016 before voting on the budget. PUBLIC COMMENTS  Tom Rowley, MPTA, said in regard to the Water Supply Project the community would not be where it is today without the impact of the Authority. He said the lack of County involvement has been disappointing. President Kampe showed a presentation of the open action tasks before the Authority and ranked by priority, and shows which organizations are involved in each item. He explained how the priorities are ranked: first priority items are ones which the Authority is an independent voice for community values and a key part of the Authority mission to provide water for the Peninsula. Second and third priority items are ones which the Authority is not directly involved with, but are a part of the project process. Director Downey said that the priorities and ranking look appropriate, but would like to know which tasks require legal action or legal counsel involvement. President Kampe replied that through July 19th, Legal Counsel will need to be involved in some items, but involvement will taper down afterward President Kampe went over the number 1 priorities: o Extend Cease and Desist Order o Complete the Environmental Impact Study o Advance GWR/Pure Water Monterey o Certificate of Public Convenience and Necessity (CPCN) o Obtain various City/County permits after CPCN o Post Monterey Peninsula Water Supply Project (MPWSP) water allocation plan The Board discussed that finalizing the water purchase agreement with Castroville is a higher priority than a 3, because the MPRWA is a co-signer. Don Freeman said that agencies see the Authority as an independent party that serves the public. He stressed the importance of legal counsel being involved in setting priorities so that they can explain when legal counsel is necessary for each item. The Board voiced agreement Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, June 9, 2016 4  MPRWA Minutes Thursday, June 9, 2016 with this suggestion. Director Rubio expressed that the Authority priorities are fluid and can change as the project goes along. The Board agreed priorities can be updated and changed over time. Executive Director Cullem said that the Technical Advisory Committee (TAC) has been tasked with tracking the permit schedule and the critical path. No action taken, priorities were discussed. 11. Consider Budget Options, and Adopt the Budget for FY 2016-2017 Action: Adopted Budget for FY 2016-2017 Executive Director Cullem explained that due to a bare-bones budget of $290,000 for FY 2015- 2016 and substantial additional expenditures for Special Counsel and Technical Support services required during the year, staff has had to utilize most of the reserve fund. He added that it is prudent to request a higher budget in FY 2016-2017, and at the Authority meeting of May 12, 2016 a preliminary budget proposal of $350,000 was presented. PUBLIC COMMENTS  A member of the public said he is concerned about the budget and possible mission creep. He said that there are other agencies who can provide assistance in the project at a lower cost. He requested that the Authority keep the budget down and let the local agencies help carry the water issues.  Tom Rowley said that Authority is the lowest cost organization and the community is getting a bargain for all the hard work the Authority has done and kept legal expenses relatively low compared to other agencies and still remained successful. He encouraged the Board to keep up the good work.  Mr. Caruthers requested that in future the presentation slides be larger for the audience to see. Director Downey suggested ways to reduce legal fees, but Don said that Legal Counsel has already reduced his costs by allocating cost to lower billing partners Director Rubio said if the project is going to be done it should be done right. He expanded that the Authority uses its own independent consultants so that no one can accuse the Authority of collusion. The Board agreed that continuity with legal counsel is critical at this time. Director Downey made a motion to adopt a $290,000, and it was seconded by Director Rubio. President Kampe noted that amendments to the budget can be made as necessary. He also stated that Authority would not have accomplished what is has without the expertise of Russ McGlothin’s legal counsel. On a motion by Director Downey, seconded by Director Rubio, and carried by the following vote, the Monterey Peninsula Regional Water Authority Adopted a budget of $290,000 for FY 2016-2017: AYES: 5 DIRECTORS: Dallas, Downey, Pendergrass, Rubio, Kampe NOES: 0 DIRECTORS: None Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, June 9, 2016 5 MPRWA Minutes Thursday, June 9, 2016 ABSENT: 1 DIRECTORS: Edelen ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None ADJOURNMENT Meeting adjourned at 8:52pm ATTEST: Nova Romero, Clerk of the Authority MPRWA President Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, June 9, 2016 6