Monterey Peninsula Regional Water Authority

MINUTES MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) Director's Meeting 7:00 PM, Thursday, July 14, 2016 COUNCIL CHAMBERS 580 PACIFIC STREET MONTEREY, CALIFORNIA Directors Present: Director Dallas, Director Edelen, Director Pendergrass, Director Roberson, Director Rubio, President Kampe Directors Absent: None Staff Present: Legal Counsel Freeman, Executive Director Cullem, Clerk Romero ROLL CALL President Kampe called the meeting 7:00pm. PLEDGE OF ALLEGIANCE REPORTS FROM BOARD DIRECTORS AND STAFF President Kampe introduced Pacific Grove Councilmember Bill Peake, who will be an Alternate Representative on the Monterey Peninsula Regional Water Authority (MPRWA). He welcomed Director Roberson back to the Board, and the Board thanked Director Downey for her service. Don Freeman reported on an article in the paper regarding a lawsuit by the Water Ratepayers Association of the Monterey Peninsula against the County Board of Supervisors, California American Water (Cal Am), Monterey Water Resources Agency, and the California Coastal Commission. He gave a brief summary of the lawsuit, explaining that it wants to ensure that surcharges are being spent appropriately, that Cal Am ceases illegal pumping of water, states that the test well pumping violates the Local Coastal Plan, and that Monterey County and Coastal Commission are required to enforce the Local Coastal Plan. He clarified that the Authority is not involved in this lawsuit. Mr. Freeman also announced that the County sent a check to the Authority $88,160 for last year’s fiscal year payment. The Board voiced appreciation for the County's support. Executive Director Cullem announced that the County Board of Supervisors also wrote a letter in support of the request for the extension of the Cease and Desist Order (CDO) to the State Water Resources Control Board (SWRCB). He announced that the Authority’s end of the year financial report will be available at the next meeting. PUBLIC COMMENTS None CONSENT ITEMS 1. Approve and File Authority Checks Through June 30, 2016 Action: Approved Checks PUBLIC COMMENTS None  MPRWA Minutes Thursday, July 14, 2016 On a motion by Director Pendergrass, seconded by Director Rubio, and carried by the following vote, the Monterey Peninsula Regional Water Authority Approved the Authority Checks Through June 30, 2016: AYES: 6 DIRECTORS: Dallas, Edelen, Pendergrass, Roberson, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None APPROVAL OF MINUTES 2. Approval of Minutes from June 9, 2016 Action: Approved PUBLIC COMMENTS None On a motion by Director Rubio, seconded by Director Edelen, and carried by the following vote, the Monterey Peninsula Regional Water Authority Approved the Authority Checks Through June 30, 2016: AYES: 5 DIRECTORS: Dallas, Edelen, Pendergrass, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 1 DIRECTORS: Roberson RECUSED: 0 DIRECTORS: None AGENDA ITEMS 3. Receive Copy and Discuss Water Authority Response to the Preliminary SWRCB Staff Proposal on the Amended Application for Modification of CDO 2009-0060 Action: Received Report; Discussed Executive Director Cullem stated the Authority sent a letter with additional comments to the SWRCB in support of an amendment to the application for modification of the CDO. The letter emphasized the negative effects enforcing the current CDO would have on the economy, Military, and on the Peninsula. PUBLIC COMMENTS  Tom Rowley, representing Monterey Peninsula Taxpayers Association (MPTA), stated that MPTA also sent a letter to SWRCB in support of modifying the CDO, and in support of the comments submitted by the Authority.  John Narigi, representing the Coalition of Monterey Peninsula Businesses, said the Coalition has sent several letters to the SWRCB, and has hired lawyers to support the revision of the CDO. 4. Elect Water Authority Board Officers for FY 2016-2017 Action: Elected Officers for FY 2016-17 Executive Director Cullem stated that Article 3 of the adopted Bylaws requires an election be held for Board officers at the first meeting of each fiscal year. Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, July 14, 2016 2  MPRWA Minutes Thursday, July 14, 2016 PUBLIC COMMENTS None On a motion by Director Rubio, seconded by Director Edelen, and carried by the following vote, the Monterey Peninsula Regional Water Authority Elected Bill Kampe, Water Authority Board President for FY 2016-2017: AYES: 6 DIRECTORS: Dallas, Edelen, Pendergrass, Roberson, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None PUBLIC COMMENTS None On a motion by Director Edelen, seconded by Director Dallas, and carried by the following vote, the Monterey Peninsula Regional Water Authority Elected Ralph Rubio, Water Authority Vice President for FY 2016-2017: AYES: 6 DIRECTORS: Dallas, Edelen, Pendergrass, Roberson, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None PUBLIC COMMENTS None On a motion by Director Kampe, seconded by Director Rubio, and carried by the following vote, the Monterey Peninsula Regional Water Authority Elected David Pendergrass, Water Authority Secretary, and Jerry Edelen, Water Authority Treasurer, for FY 2016-2017: AYES: 6 DIRECTORS: Dallas, Edelen, Pendergrass, Roberson, Rubio, Kampe NOES: 0 DIRECTORS: None ABSENT: 0 DIRECTORS: None ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None 5. Review and Discuss Burnett's List of Remaining Issues and Provide Staff Direction Action: Reviewed and Discussed To-do List Executive Director Cullem introduced the list “To-do” items, and suggested that the Board go through the list and discuss the priorities and status of each item. The Board reviewed and received updates on the following items: 1. Extending the CDO (Cease and Desist Order on the Carmel River) – Amendment filed, hearing set for July 19th and a decision will be made Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, July 14, 2016 3 MPRWA Minutes Thursday, July 14, 2016 2. Finalize Water Purchase Agreement with Castroville – Currently being reviewed by the California Public Utilities Commission (CPUC) and may finalize by end of August 3. Extend National Oceanic and Atmospheric Administration (NOAA) mitigation agreement for Carmel River – Discussions in progress; NOAA delay 4. Complete Environment Impact Report/Study (EIR/EIS) for desal – Under CPUC review; estimated a 1 year delay (2018) 5. Advance Ground Water Replenishment/Pure Water Monterey – GWR is ready to proceed as soon as the CPUC makes a decision; Fall 2016 6. Legal Challenges from Marina Coast Water District/Ag Trust – Cal Am primarily involved in legal challenges with Marina Coast Water District 7. Certificate of Public Convenience and Necessity (CPCN) – Will be considered after EIR/EIS (sometime in early 2018) 8. Obtain Various City/County permits after CPCN – Will be required for pipelines after CPCN; The permits will be focused on by the Technical Advisory Committee (TAC) 9. Post Monterey Peninsula Water Supply Project (MPWSP) water allocation plan – Likely to require an EIR 10. Ongoing public agency collaboration – Contain costs; monitor water usage; focus on water supply; adapt to events Completed Tasks: 1. Finalize brine discharge agreement – Imminent completion 2. Finalize Return Water agreement – Imminent completion 3. Restart Test Well - Restarted PUBLIC COMMENTS  Libby Downey, MPRWA Alternate Director, said she spoke to Paul Scuito from Monterey Regional Water Pollution Control Agency (MRWPCA), and gave the following comments on the To-Do list regarding to Pure Water Monterey (PWM):  “CEQA Plus” is needed, not “NEPA”  The Cal Am pipeline is necessary for maximizing PWM  The signatures for the water rights are being obtained  George Riley, TAC Member, said he hopes the Authority will pay attention to potential litigation and implications. He said that the two major issues the Authority should focus on are the CDO and water rights. He opined that there should be plans for future transition.  Tom Rowley, MPTA, said that long term land use issues need to be addressed, as well as reorganization of the Water Management District. He added that the EIR has been delayed, and the Authority needs to be ready to go when it is. Director Edelen commented that Jason Burnett created this To-do list and had many political connections. He suggested that Supervisor Dave Potter be explored as a liaison for the Authority due to his connections in Sacramento. Director Pendergrass responded to Mr. Rowley has looked into the possibility of members of the Authority join the Water Management District in the past, and suggested it be revisited. Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, July 14, 2016 4 MPRWA Minutes Thursday, July 14, 2016 President Kampe responded to Mr. Riley, saying that any discussion on potential litigation must be done in public, and the Authority does not want to get involved if not necessary. He responded to Mr. Rowley saying that the role of the Authority is to remain until a water supply is available, and continue to be flexible in terms of future involvement with the Water Management District. He added that when the EIR/EIS is ready the Authority will review it. Executive Director Cullem announced that the next meeting of the Authority will be a joint meeting with the TAC, including presentations from Deep Water Desal and other agencies to provide information and address questions. ADJOURNMENT President Kampe adjourned the meeting at 7:58 pm. ATTEST: Nova Romero, Clerk of the Authority MPRWA President Monterey Peninsula Regional Water Authority Director's Meeting Minutes - Thursday, July 14, 2016 5