Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

Technical Advisory Committee (TAC)
Regular meeting

2:00 PM, Monday, February 25, 2013
580 Pacific Street
City Council Chambers
Monterey, California


CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM TAC MEMBERS

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 TAC and which is not on the agenda. Any
person or group desiring to bring an item to the attention of the Committee may do so by
addressing the Committee during Public Comments or by addressing a letter of explanation to:
MPRWA TAC, Attn: Monterey City Clerk, 580 Pacific St, Monterey, CA 93940. The appropriate
staff person will contact the sender concerning the details.

APPROVAL OF MINUTES

1. February 4, 2013

AGENDA ITEMS

2. Receive Report and Discuss Outside Agency Actions Regarding the Monterey Peninsula
Water Supply Project

a. Monterey County Board of Supervisors - (Burnett)

b. Monterey Peninsula Water Management District - (Stoldt)

c. Monterey Regional Water Pollution Control Agency - (Israel)

d. Monterey Regional Waste Management District Presentation of Availability of
Landfill Gas for Power Generation (W. Merry)

3. Report from Cal-Am Regarding Test Well Design, Development and Permitting

4. Receive and Discuss Update on Ground Water Recharge, Aquifer Storage and Recovery,
and Pacific Grove Small Water Projects

5. Receive Testimony Submitted to California Public Utilities Commission February 22, 2013
Deadline for Application (A- 12-04-019) Based on the MPRWA Approved Position
Created date 02/22/2013 2:10 PM Monday, February 25, 2013
2

Statement (Information Only)

ADJOURNMENT





The Monterey Peninsula Regional Water Authority is committed to include the disabled in all of
its services, programs and activities. For disabled access, dial 711 to use the California Relay
Service (CRS) to speak to staff at the Monterey City Clerks Office, the Principal Office of the
Authority. 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 staff at the Monterey City Clerks Office at
(831) 646-3935 to coordinate use of a device or for information on an agenda.

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.




M I N U T E S
MONTEREY PENINSULA WATER AUTHORITY (MPRWA)
TECHNICAL ADVISORY COMMITTEE (TAC)
Regular Meeting
2:00 PM, Monday, February 4, 2013
FEW MEMORIAL HALL OF RECORDS
COUNCIL CHAMBER
MONTEREY, CALIFORNIA

Members Present: Burnett, Riedl, Siegfried, Israel, Narigi, Riley

Members Absent:

Huss, Stoldt

Staff Present: Executive Director, Legal Counsel, Clerk


CALL TO ORDER


ROLL CALL

Chair Burnett called the meeting to order at 2:00 p.m. noting that all members are present
except Members Stoldt and Huss.

PLEDGE OF ALLEGIANCE


REPORTS FROM TAC MEMBERS

Member Siegfried questioned the MPRWA procedural rules of order and the process of
discussion and amendments to original motions. Legal Counsel Freeman responded that the
Authority follows Roberts Rules of Order, even though the bi-laws indicate Rosenbergs Rules
of Order and said the Bi-Laws are in process of being updated.
Member Riley requested to agendize a discussion about the Monterey Regional Water Pollution
Control Agency (MRWPCA) Ground Water Recharge project and what the Authority can do to
support it rather than having a portfolio approach. He also requested to agendize a formal
discussion about advantages and disadvantages of public versus private ownership of
desalination facilities and last he requested to discuss the Authority position of support of a
contingency project. Chair Burnett greed that all three items can be agendized for future
meetings.

PUBLIC COMMENTS

Chair Burnett invited public comment for items not on the agenda, having no requests to speak,
closed public comment.
APPROVAL OF MINUTES
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2

1. January 24, 2013 Special Meeting
Action: Approved

On a motion by Member Narigi, seconded by Member Siegfried, and carried by the following
vote, the Monterey Peninsula Regional Water Authority TAC approved the minutes of the
Special Meeting on January 24, 2013.

AYES: 7 DIRECTORS:
Burnett, Riedl, Siegfried, Israel, Narigi, Riley
NOES: 0 DIRECTORS: None
ABSENT: 2 DIRECTORS: Huss, Stoldt
ABSTAIN: 0 DIRECTORS: None


AGENDA ITEMS


2. Receive Presentation from California American Water Monterey Peninsula Water Supply
Project Status of Project Test Wells and Discuss Water Rights in the Salinas Valley Aquifer and
Provide Direction to Staff
Action: Received Presentation and Answered Questions

Richard Svindland, Director of Engineering for California American Water gave a presentation
regarding the status of the test wells, permitting and other processes. He indicated that the
largest hurdle with the schedule is still the snowy plover nesting area and Cal Am has revised
the project description to try to avoid disrupting their habitat. He also indicated that the City of
Marina application is not yet complete due to one last pending agreement from the Semex
operation who operates a sand mining plant, and is concerned that construction will impact the
amount of sand that they can harvest. Additionally, the costs for the project increased due to
modifications of the intake design. Mr. Svindland spoke to the benefits of the four primary
locations under advisement, the current contingency plans and the different technical strategies
that are being employed. Mr. Svindland answered questions of the TAC.

Chair Burnett questioned the reasons to not put forward a slant well outside of the zone 2 c of
the Salinas basin, given the concerns of the growers as well as the possibility of the sand
dunes off of Highway 1. Mr. Svindland responded that it was a geology issue where some
beach wells could work, but a large number would be needed that it would not be cost effective.
The Semex site is too far away and in Moss Landing there is a clay plug. For the Sand Dunes,
the geology is inadequate and is not likely to draw the necessary volume of water.
Executive Director Reichmuth questioned how Cal Am is facilitating the request for a contingency
plan done in parallel to the current plan rather than following. Mr. Svindland responded that the
current proposal has 23 different mutations of alternatives. The Rainey wells at Semex is the
priority plan, the second level contingency is slant well at the Semex site, third priority is Rainey
wells at Semex and the fourth level option would be slant wells at Protrero Road site. He spoke
to the request to facilitate a contingency in parallel and responded that it would pit different
permitting agencies against each application and would actually take longer. He presented the
example of having an open ocean intake permit out at the same time as a subsurface permit
would be conflicting. However he indicated he was open to discuss how to expedite the
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permitting.

Chair Burnett recapped the language that the Directors adopted at the January 31, 2013
meeting as conditions for support of the project and said the Authority is trying to prevent
having the this same conversion in the future, when it could be prevented. Items that must be
addressed include issues of sea level rise, coastal erosion and other potential issues. Mr.
Svindland responded that the Tim Durbin memo was submitted as part of the testimony and
CEQA staff is working to address the issues cited.
Chair Burnett opened the item for public comment. Libby Downey questioned the state
revolving funds indicating she has not seen anything in writing. Nelson Vega questioned the
legal rights of water if wells that will be slanted into the ocean are out of the footprint of the
Salinas Valley if it still belongs to the Salinas Valley. He also spoke to the idea of constructing
alternatives in parallel will increase costs, but reduce the total time and questioned the
importance of overall cost reduction compared to time until water production. Nancy Isakson of
the Salinas Valley Water Coalition thanked Cal Am for the presentation, explaining their project
intentions and expressed appreciation to them for looking into utilizing the shallow aquifer even
though it is limited in capacity. Bill Hood thanked Mr. Svindland for the presentation to clarify if
the intent was to utilize the 180 aquifer. With no further requests to speak, Chair Burnett closed
public comment.
Mr. Svindland responded to public comments and questions.

3. Receive Oral Report From Executive Director Regarding The Department of Water Resources
Funding Consideration, Discuss and Provide Direction to Staff
Action: Received Report and Provided Direction to Staff

Executive Director Reichmuth reported there has been a seat change in the Department of
Water Resources for utilization for State and Federal funding, especially State Resources
Funded projects investor funded utilities. He recently attended a workshop and collected
extensive materials for the benefit of the Authority and said the State appears to be considering
this more seriously. Staff will need to continue to work with Cal Am to see if they are eligible for
SRF funding, which he thinks they are. He then indicated that the largest cost factor is the cost
of money, and the key issue will be how to reduce the blended rate for borrowed capital.
Chair Burnett indicated that the seventh condition adopted by the Authority is that Cal Am has
to provide written proof for access to SRF fund and the Authority will work with the Monterey
Peninsula Water Management District to secure SRF financing and Cal am must accept a
public agency partnership if necessary.
Chair Burnett opened the item to public comment. Libby Downey questioned the $99 million
surcharge and how it will impact current residents. She also encouraged Cal Am to look at the
cost of energy with the Monterey Regional Waste Management District. Nelson Vega spoke to
Ms. Downeys comment about the cost of water. Tom Rowley spoke to recent ads published in
the Monterey Herald about other organizations claiming to represent the ratepayers and that
The Monterey Peninsula Tax Payers association has been actively pursuing the option of a
water project for the Peninsula since 1993 and expressed that the propaganda pieces in the
newspaper are inaccurate. He then applauded efforts to try to find a lowest cost, but urged the
TAC to request an update from Cal Am at every future meeting. Doug Wilhelm expressed
concern that the savings from using public funds for the surcharge would not benefit many of
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the current ratepayers because they will not live that long, some will be impacted more than
others and should be given consideration in all proposals. With no further requests to speak,
Chair Burnett closed public comment and proceeded to the fourth agenda item.

4. Receive, Discuss and Provide Direction To Staff Regarding Update from California American
Water On Compliance With MPRWA Conditions That Must Be Met Prior to Receiving MPRWA
Support for Desal Project
Action: Received Report and Discussed

Chair Burnett indicated that this item will be incorporated as a regular agenda item for future
TAC meetings. He reported to the TAC that the attached position statement was adopted on
January 31, 2013 by the Authority Directors and since adoption Cal Am is not expected to have
dramatic compliance changes at this time. He then requested that a Cal Am Representative
speak to the document.
Mr. Svindland summarized the current status of the below applicable points:
Contribution of Public Funds-Cal Am is waiting for the proposal from the Authority
and until they see it and are able to have an internal review and approval of the
conditions, cannot make a decision.
Governance Agreement Acknowledged staff is working on finalizing the agreement
and are working with definitions and final legal modifications.
Pursuing Lower Electricity Rates: The application explains electricity costs but the
processes and costs reported was based on information available at the time, which
was overestimated and has been updated. MPWSP will connect to PG&E regardless of
other available options due to the need for a reliable powers source. The facility will be
operating at 99% capacity at all times, therefore must build reliability into the project.
Staff is considering various forms of power. Their motivation is for reliability as well as to
get lowest cost for customers.
State Resources Funding Until the project has a certified EIR are not able to secure
anything in writing regarding the eligibility for SRF funds. Cal Am has been put on the
list of projects to be notified.
Chair Burnett opened the item for public comment. Bill hood spoke to the deliberation memo
asking if it could be amended and changed and indicated it is hard to quantify the impact of
public comment on the deliberations. He urged the Authority to consider the public comments
into the governance memo. Nelson Vega requested that the TAC keep eyes on the mission
given by the State Water Resources Control Board and indicated that if too many conditions are
placed upon Cal Am it will be unable to deliver the water needed. Doug Wilhelm indicated that
Deep Water Desal is anticipating purchasing electricity directly from Dynagy and recalled Cal
Am stating it was a possibility for their project also. Dennis Ing spoke to the fact Dynagy cannot
sell power directly but can sell wholesale to whole sale purchasers. DWD has memorandum of
understanding with City of Salinas to enter into a municipal energy system agreement. Libby
Downey questioned why Cal Am did not try to get help with the energy issue and why the
Authority did not assist. With no further requests to speak Chair Burnett closed public comment
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5

ADJOURNMENT

With no more business to come before the TAC, Chair Burnett adjourned the meeting at 3:30
p.m.

Respectfully Submitted, Approved,





Lesley Milton, Clerk to the Authority Jason Burnett, TAC Chair
MPRWA TAC Meeting, 2/25/2013 , tem No. 1., tem Page 5, Packet Page 5

Monterey Peninsula Regional Water Authority
Agenda Report

Date: February 25, 2013
Item No: 2.


08/12


FROM: Prepared By: Clerk to the Authority


SUBJECT: Receive Report and Discuss Outside Agency Actions Regarding the Monterey
Peninsula Water Supply Project

DISCUSSION:

There is no written report for this item. Oral updates and presentations will be presented at the
meeting regarding the following recent outside Agency actions:


a. Monterey County Board of Supervisors - (Burnett)

b. Monterey Peninsula Water Management District - (Stoldt)

c. Monterey Regional Water Pollution Control Agency - (Israel)

d. Monterey Regional Waste Management District Presentation of Availability of
Landfill Gas for Power Generation (W. Merry)


MPRWA TAC Meeting, 2/25/2013 , tem No. 2., tem Page 1, Packet Page 7

Monterey Peninsula Regional Water Authority
Agenda Report

Date: February 25, 2013
Item No: 3.


08/12


FROM: Prepared By: Clerk to the Authority


SUBJECT: Report from Cal-Am Regarding Test Well Design, Development and Permitting

DISCUSSION:

There is no written report for this item. Oral report will be presented at the meeting.


MPRWA TAC Meeting, 2/25/2013 , tem No. 3., tem Page 1, Packet Page 9

Monterey Peninsula Regional Water Authority
Agenda Report

Date: February 25, 2013
Item No: 4.


08/12


FROM: Prepared By: Clerk to the Authority


SUBJECT: Receive and Discuss Update on Ground Water Recharge, Aquifer Storage and
Recovery, and Pacific Grove Small Water Projects

DISCUSSION:

There is no written report for this item at this time. An oral will be provided at the meeting.

MPRWA TAC Meeting, 2/25/2013 , tem No. 4., tem Page 1, Packet Page 11

Monterey Peninsula Regional Water Authority
Agenda Report

Date: February 25, 2013
Item No: 5.


08/12


FROM: Prepared By: Clerk to the Authority


SUBJECT: Receive Testimony Submitted to California Public Utilities Commission February
22, 2013 Deadline for Application (A- 12-04-019) Based on the MPRWA
Approved Position Statement (Information Only)

DISCUSSION:

There is no written report for this item at this time. A copy of the testimony will be provided at or
before the meeting.

MPRWA TAC Meeting, 2/25/2013 , tem No. 5., tem Page 1, Packet Page 13