Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

Director's Meeting

7:00 PM, Thursday, June 8, 2017

Council Chambers
580 Pacific Street, Monterey
Monterey, California
CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

PUBLIC COMMENTS
PUBLIC COMMENTS allows you, the public, to speak for a maximum of three minutes on any
subject which is within the jurisdiction of the MPRWA and which is not on the agenda. Any person
or group desiring to bring an item to the attention of the Authority may do so by addressing the
Authority during Public Comments or by addressing a letter of explanation to: MPRWA, Attn:
Monterey City Clerk, 580 Pacific St, Monterey, CA 93940. The appropriate staff person will contact
the sender concerning the details.

CONSENT AGENDA
CONSENT AGENDA consists of those items which are routine and for which a staff
recommendation has been prepared. A member of the public or MPRWA Director may request
that an item be placed on the regular agenda for further discussion

1. Approval of Minutes from May 11, 2017 - Romero

2. Approve and File Authority Checks through May 31, 2017 - Munoz/Cullem

3. Receive Update on SPI (Geosyntec) and Staff Review of Comments Received on the
MPWSP DEIR/DEIS - Cullem
4. Receive an Update on the Summary Project Schedule for the Monterey Peninsula Water
Supply Project (MPWSP) and the Status of Test Slant Well Operations - Crooks

***End of Consent Agenda***

AGENDA ITEMS
5. Receive Report on Current Water Authority Work Plan and Policy Statement, Discuss, and
Provide Staff Direction - Cullem
6. Receive Update, Discuss, and Provide Staff Direction on the People's Moss Landing Desal
Project - PML Representative
7. Elect Water Authority Board Officers for FY 2017-2018 - Cullem

ADJOURNMENT
 Thursday, June 8, 2017

The City of Monterey is committed to including the disabled in all of its services, programs and
activities. In compliance with the Americans with Disabilities Act, if you need special assistance
to participate in this meeting, please contact the City Clerks Office at (831) 646-3935.
Notification 30 hours prior to the meeting will enable the City to make reasonable arrangements
to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II]. Later requests will
be accommodated to the extent feasible. For communication-related assistance, dial 711 to use
the California Relay Service (CRS) to speak to City offices. CRS offers free text-to-speech, speech-
to-speech, and Spanish-language services 24 hours a day, 7 days a week. If you require a hearing
amplification device to attend a meeting, dial 711 to use CRS to talk to the City Clerk's Office at
(831) 646-3935 to coordinate use of a device.

Agenda related writings or documents provided to the MPRWA are available for public
inspection during the meeting or may be requested from the Monterey City Clerks Office at 580
Pacific St, Room 6, Monterey, CA 93940. This agenda is posted in compliance with California
Government Code Section 54954.2(a) or Section 54956.

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 M I N U TE S
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
Director's Meeting
7:00 PM, Thursday, May 11, 2017
COUNCIL CHAMBERS
580 PACIFIC STREET, MONTEREY
MONTEREY, CALIFORNIA

Directors Present: Director Dallas, Director Edelen, President Kampe, Director Roberson
Directors Absent: Director Rubio

Staff Present: Legal Counsel Freeman, Executive Director Cullem, Clerk Romero

CALL TO ORDER

President Kampe called the meeting to order at 7:00 pm.

ROLL CALL

Director Rubio was absent.

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

President Kampe introduced Maryann Carbone, the new Mayor of Sand City and announced
that while she is not a voting member yet she will be appointed by Sand City as Director at an
upcoming City Council meeting.

Executive Director Cullem said that the Separation Process Inc. (SPI) change order has begun
working on a new analysis of the draft environmental impact report (DEIR) comments. He
continued that the Technical Advisory Committee (TAC) will review SPIs analysis before it is
brought to the Directors. President Kampe said that he and George Riley of Public Water Now
(PWN) spoke and had an encouraging dialogue about the Monterey Peninsula Water Supply
Project (MPWSP).

PUBLIC COMMENTS

Tom Rowley, Monterey Peninsula Taxpayers Association (MPTA), said that the amount
of disinformation presented as facts during public comment is at an all time high. He
said that MPTA is concerned with the increased cost of water to the ratepayers, and that
the Monterey Peninsula Water Management District (MPWMD) is getting a cut of
California American Waters (Cal Am) fees.

Michael Baer, resident, commented that the Partisan blog had an article about the
Sustainable Groundwater Management Act (SGMA).

George Riley, Public Water Now, commented that PWN is trying to educate the public
about alternate water supply options, such as public ownership of the Water Company,
and they are currently working on a initiative for the November ballot.
 MPRWA Minutes Thursday, May 11, 2017

CONSENT AGENDA

On a motion by Director Edelen, seconded by Director Dallas, and carried by the following vote,
the Monterey Peninsula Regional Water Authority Approved the consent agenda:

AYES: 4 DIRECTORS: Dallas, Edelen, Roberson, Kampe

NOES: 0 DIRECTORS: None
ABSENT: 1 DIRECTORS: Rubio
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

1. Approval of Minutes from April 13, 2017

Action: Approved

2. Approve and File Authority Checks Through April 30, 2017

Action: Approved

***End of Consent Agenda***

AGENDA ITEMS

3. Receive Update Presentation on PWM/GWR Status and Schedule

Action: Received update; discussed

Michael McCullough, Monterey Regional Water Pollution Control Agency (MRWPCA), gave an
update on the Pure Water Monterey/Ground Water Replenishment (PWM/GWR) status and
schedule. He summarized a few key points:

The notice to proceed has been issued on source water diversion structures, and
project construction should begin in June.

Currently working on phase 1 injection wells in the Seaside Basin.

The advance water treatment facility received a couple of bids, but will re-bid in an
attempt to lower costs.

Start construction of the Cal-Am components of the PWM project.

PUBLIC COMMENT:

Tom Rowley, MPTA, said that his organization believes that the cost of GWR has been
underestimated and resulted in increased water bills. He added that the MPTA is relying
on the Authority to continue to monitor the progress of GWR in light of the CDO
deadline.

George Riley, PWN, suggested that there should be meetings to let people talk about
their concerns about PWM/GWR, and there should be more public outreach about the
project.

Monterey Peninsula Regional Water Authority

Director's Meeting Minutes - Thursday, May 11, 2017
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 MPRWA Minutes Thursday, May 11, 2017

President Kampe asked Mr. McCullough how the extended bid period for the project will affect
the Cease and Desist Order (CDO) deadline. Mr. McCullough responded that regardless of the
bid process, water will be put into the basin before the CDO deadline is reached and some
construction will have been started by September of 2017.

Director Dallas asked what outreach is being done to educate the public regarding what testing
has been done on PWM water. Mr. McCullough said they have held tours and had tastings of
the PWM water to show the public the technology and give them the opportunity to taste the
finished product. He added that post test surveys showed that people were pleased with the
finished product. Director Dallas asked if there is a contingency plan if lower bids do not come
in within the time limit. Mr. McCullough said that they will come up with a strategy and bring it
up to the TAC and Directors in that scenario. President Kampe said that some of the criticisms
of PWM are the pesticides and water quality. Mr. McCullough responded that they continue to
address that issue but added that the amount of pesticides is negligible compared to current
drinking water levels. He said there have been misleading reports about pesticides in soil which
are not related to the water quality. President Kampe said that the public would be reassured by
a publicly available study showing that the PWM water quality levels are safe.

Director Edelen agreed with President Kampe that there needs to be scientific evidence to
show that the PWM water meets safety levels at an appropriate cost.

No action was taken on this item, update was received and discussed.

4. Receive Update, Discuss, and Provide Staff Direction on the People's Moss Landing Desal
Project
Action: Continued to June

Executive Director Cullem said that he received notice that David Balch from the People's Moss
Landing Project isn't ready to give an update and requested a continuance of this item to June.
The Authority agreed to continue the item until June.

5. 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, Cal Am, gave an update on the MPWSP and Monterey Pipeline:

CDO deadlines: the first two deadlines have been met, and the third is expected to be
approved next year in the Fall.

The desal project is on track to begin construction in September 2019.

GWR is expected to start delivering water by May 2018.

Aquifer Storage Recovery (ASR) will be ready by December 2017.

The Monterey Pipeline construction is currently in construction phase 3.

PUBLIC COMMENTS:

Monterey Peninsula Regional Water Authority

Director's Meeting Minutes - Thursday, May 11, 2017
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 MPRWA Minutes Thursday, May 11, 2017

Tom Rowley, MPTA, said many people have concerns about recycled water but dont
realize that Disneyland uses recycled water and it's safe. He voiced concern about the
cost of GWR and the Desal project, and questioned if there is going to be a cost cap for
these smaller water projects.

Michael Baer, resident, said that there are no safe levels established for certain
pesticides in drinking water. He commented that he has been trying to get a copy of the
application for the pipe bridge which is a public record.

George Riley, PWN, said that the Pine Cone published an article about GWR that was
spot on.

President Kampe responded to the concern about the cost of GWR, and said what is unknown
is the cost of the desal project in relation to GWR. Director Edelen asked if an analysis of the
Carmel River water can be tested and compared with recycled water to show to the public.
President Kampe asked Mr. Crooks if he has any thoughts on horizontal directional drilling
(HDD) as an alternate to slant wells. Mr. Crooks responded that HDD on the coast would pop
up under the ocean floor, and requires entry into the bay and would create other complications.

No action was taken on this item, update was received and discussed.

6. Consider Options for Improving Public Information and Outreach and Provide Staff Direction
Action: Discussed

Executive Director Cullem said that MPRWA website is simple but has good information
available. He said there has been discussion regarding having articles written for the website to
expand public outreach. He said perhaps the Authority should reconsider hosting another water
forum as a form of public outreach.

PUBLIC COMMENT:

Tom Rowley, MPTA, he suggest that instead of trying to rebut articles the Authority
should focus on their mission and goals. He said community groups are better than blog
articles.

Director Edelen said that public forums are a good idea but the Authority must be careful.
Director Roberson said that Authority should focus on the water supply project and not
responding to negative press, and added that MRWPCA has the budget to do outreach on their
own project (PWM).

Director Dallas said that correct facts should be given and mentioned that many people believe
that the Authority advocates for water rates which is not correct. Executive Director Cullem said
that a public forum with all the various agencies will allow each agency to answer questions
about their own projects.

Monterey Peninsula Regional Water Authority

Director's Meeting Minutes - Thursday, May 11, 2017
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 MPRWA Minutes Thursday, May 11, 2017

Director Roberson said that the best water presentations have been given by Dave Stoldt and
Paul Sciuto, who already resources readily available for a forum. President Kampe said he
senses the board wishes to be more proactive in the public eye in collaboration with MPWMD
and MRWPCA.

No action taken at this time.

7. Adopt the Budget for FY 2017-2018, Authorize a Return of $65,000 of Year-end Surplus Funds
as Credit Against Member Contributions, and Authorize Addition of Any Remaining Surplus
Funds to the Reserve Account
Action: Adopted Budget for FY 2017-18 and gave direction for surplus funds

Executive Director Cullem said that there is a budget surplus and suggested that the Authority
some of the surplus funds towards next years contributions for the 2017-2018 FY budget, and
save some as a reserve.

PUBLIC COMMENT:

None.

Director Roberson voiced concerned about the County not making their fair share contribution
the past couple years, and asked what the benefit of having such a large surplus is. Executive
Director Cullem responded that the County has caught up with their contributions for the past
couple of years and added that the budget has been pared down as low as possible, so the
reserve fund would serve as a safety net. He said that the California Public Utilities Commission
(CPUC) issues require extra legal support and keeping a reserve is preferred to continually
asking Cities for more money. Director Roberson suggested the Authority re-evaluate the
budget in the event that the County does not pay their fair share again.

On a motion by Director Edelen, seconded by President Kampe, and carried by the following
vote, the Monterey Peninsula Regional Water Authority Adopted the Budget for FY 2017-2018,
Authorized a Return of $65,000 of Year-end Surplus Funds as Credit Against Member
Contributions, and Authorized Addition of Any Remaining Surplus Funds to the Reserve
Account:

AYES: 4 DIRECTORS: Dallas, Edelen, Roberson, Kampe

NOES: 0 DIRECTORS: None
ABSENT: 1 DIRECTORS: Rubio
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

ADJOURNMENT

President Kampe adjourned the meeting 8:16pm.

Monterey Peninsula Regional Water Authority

Director's Meeting Minutes - Thursday, May 11, 2017
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MPRWA Minutes Thursday, May 11, 2017

ATTEST:

Nova Romero, Clerk of the Authority MPRWA President

Monterey Peninsula Regional Water Authority

Director's Meeting Minutes - Thursday, May 11, 2017
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Monterey Peninsula Regional Water Authority Date: June 08, 2017
Agenda Report Item No: 2.

FROM: Executive Director Cullem

SUBJECT: Approve and File Authority Checks Through May 31, 2017

RECOMMENDATION:

It is recommended that the Authority approve and file the accounts payable payments
made during the period May 1, 2017 through May 31, 2017 with total payments for the
above referenced period of $5,290.00 from the general fund account and authorize the
Directors to sign for such checks.

DISCUSSION:

At its meeting on September 12, 2013, the Authority Board approved a staff
recommendation to provide the Directors a listing of financial obligations since the last
report for inspection and confirmation. Each invoiced expense has been reviewed and
approved by the Executive Director and Finance personnel, as well as by the Water
Authority Treasurer and/or President as appropriate, prior to payment to insure that it
conforms to the approved budget.
The following checks are hereby submitted to the Authority for inspection and
confirmation:
$4,810 Cullem Management Services, LLC, for April
$480 AMP Media, April
The bank balances as May 31, 2017 is sufficient cover the above checks, therefore staff
is recommending approval.

BUDGET UPDATE:
None

ATTACHMENTS:
None
Monterey Peninsula Regional Water Authority Date: June 08, 2017

Agenda Report Item No: 3.

FROM: Executive Director Cullem

SUBJECT: Receive Update on SPI (Geosyntec) and Staff Review of Comments

Received on the MPWSP DEIR/DEIS

RECOMMENDATION:

It is recommended that the Authority Board receive an update on the status of the
review of Marina Coast Water District and City of Marina CEQA comments with respect
to the Monterey Peninsula Water Supply Project (MPWSP

DISCUSSION:

Comments on the MPWSP DEIR/DEIS have been received by the CPUC CEQA
Consultant, Engineering Science (ES). Among them is a rather detailed and technical
submission by the Marina Coast Water District and questions raised by the City of
Marina. A link to those comments (as well as all others) submitted to the CPUC is
available at the Water Authority web site www.mprwa.org.

Accordingly, to better inform the Authority and the public on those comments, the Board
approved a change order to SPI on May 13 to have Geosyntec expand its current
analysis to focus on the groundwater and modeling issues raised by MCWD (and
others). SPI and Geosyntec are already contracted to conduct a technical review of the
re-circulated DEIR/DEIS. The Geosyntec analysis is on-going and there has been
frequent communication between the consultant, the Executive Director, and Russ
McGlothlin, Authority Special Counsel.

In a related initiative, Water Authority representatives are conducting staff level

discussions with MCWD, the City of Marina, and other interested public agencies in an
effort to resolve MCWD concerns to the extent possible, consistent with the needs of
the Peninsula water users.

When the results of discussions and the analysis is ready for Board consideration, and
to give the public a better opportunity to weigh in on the DEIR/DEIS, the Authority can
agendize a more thorough discussion at a future Board meeting.

FISCAL IMPACT:

None

ATTACHMENTS:

None

06/12
Monterey Peninsula Regional Water Authority Date: June 08, 2017
Agenda Report Item No: 4.

FROM: Executive Director Cullem

SUBJECT: Receive an Update on the Summary Project Schedule for the Monterey
Peninsula Water Supply Project (MPWSP) and Status of Test Well
Operation and Pipeline Construction

RECOMMENDATION:

It is recommended that the Water Authority Board receive a report from Cal Am on the
latest "Summary" MPWSP schedule, the status of the test well operation, and progress
on the pipeline construction.

DISCUSSION:

Cal Am will provide the most recent Summary MPWSP schedule and discuss the status
of the test slant well and of the transfer pipeline construction.

Note that regular updates on the MPWSP are available at Cal Am's project web site:
www.watersupplyproject.org .

ATTACHMENTS:

None

06/12
Monterey Peninsula Regional Water Authority Date: June 08, 2017
Agenda Report Item No: 5.

FROM: Executive Director Cullem

SUBJECT: Receive Report on Current Water Authority Work Plan and Policy
Statement, Discuss, and Provide Staff Direction

RECOMMENDATION:

Staff recommends that the Water Authority Board review and discuss the MPRWA work
plan for 2016-2017, review and discuss the current Policy Position Statement, and
provide direction to staff if needed.

DISCUSSION:

At its meeting of Dec 10, 2015, the Water Authority Board reviewed the
accomplishments of the Authority since its inception, restated its intent to remain in
existence until the first MPWSP water is produced, and established the work plan for
calendar year (CY) 2016 -2017.

At its meeting of June 9, 2016, the Board incorporated the work plan elements into a
prioritized Work Plan as proposed by Board President Kampe (attachment A). At its
meeting of July 14, 2016, the Board also considered the status of remaining tasks on
Mayor Burnett's "To-Do" list. The Work Plan was last reviewed and updated by the
Board on December 8, 2016.

In light of questions from members of the public at recent Water Authority meetings,
staff recommends that the Board review the Water Authority work plan in June 2016
and the current Policy Position Statement (attachment B) which was adopted by the
Authority Board in December 2016.

Note that a substantial amount of information on the MPRWA mission, objectives,

policies, and related resources can be found at the Authority web site www.mprwa.org.

ATTACHMENT:

A- MPRWA Work Plan Priority Ranking 2016-2017

B- Policy Position Statement adopted Dec 2016
MPRWA Workplan Priority Ranking - Draft
December 8, 2016
Main Organizations Situation Priority
MPRWA Current Action Tasks
Extend NOAA mitigation agreement for Carmel
1 CalAm; NMS; NOAA Discussions in progress; NOAA delay 3
River
2 Complete EIR/EIS for Desal CPUC; CalAm Working to new schedule 1

3 Support GWR NEPA as basis for grants MRWPCA; CalAm; MPWMD; MPRWA Studies started?? 2
Act as needed to Legal Challenges from various Provide amicus support with selected "objective 3rd party"
4 CalAm; MPRWA 2
parties assessment as needed.
Contain costs; monitor water usage; focus on water supply;
5 Ongoing public agency collaboration MPRWA; MPWMD; MRWPCA; NOAA 2
adapt to events
6 Contribute to Settlement Agreement Update CalAm; MPWMD; MPRWA Discussions in progress 1

7 Obtain a cost of water estimate CalAm; MPRWA 2

MPRWA Future Action Tasks
8 CPCN CPUC; CalAm; MPWMD; MPRWA Will be considered after EIR/EIS 1

9 Obtain various city / county permits after CPCN CalAm; Cities; MPRWA Will be required for pipelines after CPCN 1

10 Post MPWSP water allocation plan MPWMD; MPRWA Likely to require an EIR, therefore a long lead task 1

MPRWA Completed Action Tasks

1 Finalize brine discharge agreement Surfrider; CalAm; MPRWA Completed 2

2 Finalize Return Water agreement CalAm; CSIP Completed 2

3 Restart Test Well CCC; CalAm; MPRWA Restarted 1

4 Extend Cease and Desist Order CalAm; MPRWA; WPWMD Extension granted 1

5 Finalize WPA with Castroville CCSD; MPWMD; MCWRA Agreement Complete 3

6 Gain CPUC approval for GWR pipeline, WPA MRWPCA; CalAm; MPWMD; MPRWA Approval issued on 09/115/2016 1
Priority classes
Direct support of mission; MPRWA brings core community perspective 1
Vital to success of project; other parties bring primarily expertise. MPRWA adds community values perspective 2
Of interest as part of the overall project; other parties bring higher engagement and expertise 3
Monterey Peninsula Regional Water Authority Date: June 08, 2017
Agenda Report Item No: 6.

FROM: Executive Director Cullem

SUBJECT: Receive Update, Discuss, and Provide Staff Direction on the People's
Moss Landing Desal Project

RECOMMENDATION:

It is recommended that the Board of the Monterey Peninsula Regional Water Authority
(MPRWA) receive an update on the proposed People's Moss Landing Desal (PML)
Project and provide staff direction.

DISCUSSION:

On August 11, 2016, Both DWD and PML provided full presentations on the status of
their respective projects. Since the Water Authority has requested more frequent
information on these two alternative desal projects, representatives of both project
management teams were requested to provide a 15 minute update at the Water
Authority meeting of January 12, 2017. DWD provided an update to the Authority on
that date, but since PML was unable to attend earlier meetings, an invitation was
extended for the June 8 meeting.

Both project teams were requested to respond to the following questions:

1. What is the status of public ownership or participation?

2. What is the status of support/approval for project source water
prior to exhausting all alternatives for sub surface intake as required by
the CCC, SWRCB and CPUC?
3. What is the CEQA/NEPA status and timeline?
4. What is status of discussions with state/local permitting agencies?
5. What is the overall schedule for delivery of water to end user?
6. New information/developments pertinent to the project?

Additional information about Deep Water Desal and People's Moss Landing can be
found on the project web sites at www.deepwaterdesal.com and
www.thepeopleswater.com, respectively.

ATTACHMENTS:
None

06/12
Monterey Peninsula Regional Water Authority Date: June 08, 2017
Agenda Report Item No: 7.

FROM: Executive Director Cullem

SUBJECT: Elect Water Authority Board Officers for FY 2017-2018

RECOMMENDATION:

It is recommended that the Authority elect the Board officers for FY 2017-2018 at its
meeting of June 8, 2017.

DISCUSSION:
Article 3 of the adopted Bylaws requires an election be held for Board officers at the first
meeting of each fiscal year. However, since the Secretary position has been vacant
since the departure of Mayor Pendergrass, staff recommends that the Board elect its
officers at the June 8, 2017 meeting.

The process requires nominations to be made and seconded by a Director. If more than
two (2) Directors are nominated for any one office, balloting occurs until a nominee
receives a majority of e votes cast; provided that after the first ballot the nominee
receiving the fewest votes will be dropped from the balloting.

ATTACHMENTS:
None