MI NUTES

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)

Regular Meeting
7:30 PM, Thursday, July 10, 2014
COUNCIL CHAMBER
580 PACIFIC STREET
MONTEREY, CALIFORNIA

Directors Present: Burnett, Edelen, Kampe, Pendergrass, Rubio, Della Sala
Directors Absent: None

Staff Present: Executive Director, Legal Counsel, Clerk

ROLL CALL
The meeting was called to order at 7:00 p.m.

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

Vice president Burnett reported that the Marina Planning Commission denied the permit for the
test well, therefore the item will be appealed to the City Council.
PUBLIC COMMENTS

President Della Sala invited public comment for items not on the agenda.
Michael Warburton expressed concern that there has not been adequate study of
reasonable project alternatives.
Dale Heikhaus requested a further explanation about the purpose of the Value
Engineering study and what kind of contribution it is making to the project.
APPROVAL OF MINUTES

1. June 12, 2014 Regular Meeting
Director Kampe requested a modification to the minutes. Regarding the presentation that the
Salinas Valley will receive water from the Peninsula and he requested that it be reflected in the
minutes that he asked for clarification of what the Peninsula will receive in return.
On a motion by Director Rubio seconded by Director Pendergrass, and carried by the following
vote, the Monterey Peninsula Regional Water Authority approved the minutes of June 12, 2014
as amended by Director Kampes request:

AYES: 6 DIRECTORS: Burnett, Edelen, Kampe, Pendergrass, Rubio, Della Sala
NOES: 0 DIRECTORS: None
ABSENT: 0 DIRECTORS: None

AGENDA ITEMS

2. Receive Status Report of the Final Negotiations on the Ground Water Replenishment
Project Source Water Agreements
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Mike McCullough from MRWPCA presented an update report regarding the Pure Water
Monterey Ground Water Replenishment project. He spoke to current testing results, and
continued coordination with the CPUC EIR team. He reported the Source water negotiations
have been ongoing but referred the Board to Dennis Allion, Chair of the Board on the
MPWPCA, Mayor Rubio and Dave Stoldt for specific details. .

Mr. Allion spoke to ongoing discussions and negotiations regarding source water agreements,
including creative and alternative sources of waters that are should provide adequate water at
affordable rates for the CSIP program. He reported that progress is being made but concerns
continue regarding securing enough water for everyone. He closed by affirming the project is
still on schedule for January 2017 implementation.

President Della Sala invited public comment on the time.
David Lifland expressed concern about data published regarding the withdrawal of water from
the aquifer when it is below sea level. Nelson Vega spoke against the report of progress being
made on the source water agreements and requested the consideration of building the larger
desalination facility. Tom Rowley encouraged keeping focused on the cost to the rate payer.
Director Rubio, as a participant to the negotiations reported that everyone has worked very
hard and he acknowledged Gary Peterson, Dennis Allion, Dave Stodlt and Keith Israel for all
their hard work. The report was received and comment was taken.
3. Receive Preliminary Cost Comparison Between the Ground Water Replenishment Project
and the Monterey Peninsula Water Supply Desal Project

Dave Stoldt, General Manager from the Monterey Peninsula Water Management District
provided a presentation regarding a cost analysis of comparing the small, the large desalination
facility with the small and large facility plus GWR. He reported that as revealed during the VE
presentation there are still a number of aspects that will affect the final cost of water and that
the projects are not yet at a point where a cost comparison can be accurately done.
He spoke to the cost assumptions, the current estimates of GWR, including treatment,
conveyance, injection and recovery. Mr. Stoldt agreed to report back in a few months with more
accurate, update information. Mr. Stoldt answered questions from the Directors.
Vice President Burnett, speaking to the upcoming CPUC testimony, questioned how the
Authority can accurately provide testimony regarding endorsement of the project if there is not
enough information to judge cost effectiveness. Mr. Stoldt indicated that by the end of August
the sources water agreements should be completed and the issues of risk protection and
quantity should be worked though to be able to provide sufficient cost information.
President Della Sala invited public comment on the item.
Tom Rowley expressed frustration that the source water is still undetermined for all projects
and that this will impact the decision from the Coastal Commission. Nelson Vega spoke to the
income disparity of Salinas residents versus the peninsula residents and urged the negotiators
to find a cost effective solution for all. Jan Schriner expressed concern regarding the water that
is intended to be used for the test wells. George Riley requested that the Authority re-evaluate
the different projects, now that the schedule has slipped according to the criteria established
from the SPI report. Mr. Warburton encouraged the Authority to being to talk about rational
sharing of publicly owned water.
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The report was received.
4. Election of Officers for Fiscal Year 2014-15

Clerk Milton noted that this is a business item and a requirement to elect officers annually.
Director Pendergrass expressed concern that the TAC operate without a Director to unbiasdly
lead discussions and provide information. President Della Sala reminded the Authority that the
By-Laws were amended to allow maximum flexibility. He then declared that since he will not be
seeking reelection for his Mayoral position in Monterey, he does not request to be president
again. He nominated Director Burnett to succeed him as President of the Authority. The
nomination was seconded by Director Pendergrass. Mr. Pendergrass spoke in support of the
efforts of President Della Sala during meetings for his facilitation and expressed appreciation.
The Board concurred.

President Della Sala invited public comment on the item.
Nelson Vega thanked President Della Sala for his efforts and spoke in support of the
nomination for Director Burnett. He disagreed that there was ever a conflict while
Director Burnett was the TAC Chair. He recommended that Mr. Rubio be the Vice
President due to his largest stake in the game as Mayor of Seaside.
On a motion by President Della Sala and seconded by Director Pendergrass and carried
unanimously, the Monterey Peninsula Regional Water Authority elected Director Burnett as
President for Fiscal Year 2014-15:

Director Pendergrass nominated Director Rubio as Vice Chair but motion fails for lack of a
second. Director Edelen questioned the incoming President as to his preference for a Vice Chair
to which President-Elect Burnett spoke to the work done by Director Kampe with regards to
finding a water solution. Mayor Rubio indicated that he will represent all Citizens fairly on all
boards that he sits on.
President Della Sala invited public comment on the item.
Tom Rowley encouraged all Directors, regardless of position to work toward finding a
solution.
Nelson Vega requested the Directors to recognize the votes that Director Rubio
represents and that the citizens of Seaside may take a great offense that their Mayor
was not elected.
On a motion by Director Edelen, seconded by Director Burnett, and carried by the following
vote, the Monterey Peninsula Regional Water Authority elected Director Kampe as Vice
President of the Authority for Fiscal Year 2014-15.
AYES: 4 DIRECTORS: Burnett, Edelen, Kampe, Della Sala
NOES: 2 DIRECTORS: Rubio, Pendergrass
ABSENT: 0 DIRECTORS: None
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None
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Public Comment was invited for the Treasurer and Secretary positions and there were no
requests to speak.

On a motion by Director Kampe seconded by Director Edelen and carried unanimously, the
Monterey Peninsula Regional Water Authority elected Director Kampe as Treasurer for Fiscal
Year 2014-15:

On a motion by President Della Sala, seconded by Director Edelen and carried unanimously,
the Monterey Peninsula Regional Water Authority Elected Director Pendergrass as Secretary
for Fiscal Year 2014-15:


5. Receive Report on Status of Mitigated Negative Declaration for the City of Marina Test
Wells and the Approval Process for the City of Marina and the California Coastal
Commission Coastal Development Permits

Executive Director Cullem reported that since the City of Marina rejected the test well permit
application it will be appealed to the City Council. There will be two opportunities to present to
the City Council and if not passed would appeal to the Coastal commission. Rich Svinland from
Cal Am presented a schedule of the critical path items for the MPWSP and indicated that as
decisions happen, the schedule will be updated and re-charted and is in response to the
Authoritys request to keep updated on the project.
President Della Sala invited public comment on the item.
Tom Rowley spoke to previous experience with the Coastal Commission and urged both Cal
Am and the Authority to attempt to be agendized by the CCC earlier rather than later. Nelson
Vega, Michael Warburton both spoke in support of Mr. Rowley's comments. Jan Schriner
encouraged the Authority to view the City of Marina as a community to be reasoned with and
not as a tool.

The report was received.
ADJOURNMENT

The meeting was adjourned at 9:50 PM

ATTEST:



Lesley Milton, Authority Clerk Chuck Della Sala, President