MINUTES MONTEREY PENINSULA WATER AUTHORITY (MPRWA) TECHNICAL ADVISORY COMMITTEE (TAC) Regular Meeting 10:30 AM, Monday,

November 4, 2013 MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY REGIONAL TREATMENT PLANT 14811 DEL MONTE BLVD, MARINA 93933 Members Present: Members Absent: Staff Present: Israel, Narigi, Riedl, Stoldt, Burnett Riley Executive Director, Legal Counsel, Clerk

CALL TO ORDER The meeting was called to order at 10:30 a.m. ROLL CALL PLEDGE OF ALLEGIANCE ADJOURN TO FIELD TRIP 1. Tour of the Monterey Regional Water Pollution Control Agency Regional Treatment Plant at 14811 Del Monte Blvd, Marina 93933 The meeting reconvened at 11:17 a.m. REPORTS FROM TAC MEMBERS Member Stoldt reported on speaking engagements he has attended regarding securitization funding for the Monterey Peninsula Water Supply Project. Chair Burnett reported about the Directors Special Meeting where they authorized a representative to participate with the Cal Am Design Build Firm interview process noting it was an unusual opportunity that a public agency was invited to participate in the private process. The Authority authorized contracting with Alex Wesner from Separation Process Incorporated to participate on behalf of the Governance Committee. PUBLIC COMMENTS Chair Burnett invited public comments. David Lifland questioned the status of the test well permit application with the City of Marina. Chair Burnett responded that he will provide an update at the November 14, 2013 Director meeting. APPROVAL OF MINUTES 2. August 19, 2013

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On Motion by TAC Member Stoldt and seconded by TAC Member Narigi and passed by the following vote the TAC approved the minutes of August 19, 2013 AYES: NOES: ABSENT: ABSTAIN: 5 0 1 0 DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: Israel, Narigi, Riedl, Stoldt, Burnett None Riley None

AGENDA ITEMS 3. Receive Report, Discuss and Make Recommendations Regarding Ground Water Replenishment Project Bifurcation, including timeline and process for cost comparison and other project criteria (Burnett) Chair Burnett reported on this item speaking to the approved settlement agreement granted by the CPUC judge which includes project criteria for the Ground Water Replenishment (GWR) project. He noted that the process laid out in the settlement agreement leaves some questions. He requested the TAC to consider if there are particular criteria that could benefit from Authority engagement. The following items were determined to be considered for engagement: 1. 2. 3. 4. 5. 6. 7. Source water Department of Health On schedule delivery Preliminary design completed to 10% level Funding plan is in place Water purchase agreement with just and reasonable terms Comparison of the revenue requirement in compare to a larger desal without GWR

Member Israel spoke to conversations the Pollution Control Agency has been engaged in regarding source water. Progress is being made so binding arbitration has been delayed but anticipates to have the source water issue worked out on or before 2014. Chair Burnett opened the item to public comment. Nelson Vega spoke to the need to have a confirmed source of water before any additional monies are spent to avoid stranded costs. David Lifland questioned the supporting evidence for regulations on the treatment and injection process and thinks it is in conflict with the 2011 basin plan. He is concerned that the Department of Health and the State Water Resources Control Board will not approve the process. Mr. Israel responded to concerns expressed during public comment. Mr. Stoldt left the meeting at 11:31 a.m. Member Narigi urged consideration for future water supply needs. He indicated he has a variety of concerns that he does not feel has been addressed. Member Narigi and Executive Director Cullem will meet and discuss concerns and present a plan of action to the TAC.

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The TAC agreed on the following action items: Monitor the schedule and how we are doing relative to that. Need staff recommendation to how we can provide answer to questions that Member Narigi raises. Want to see the scope of work on the externality study from Member Stoldt List of legal challenges or concerns that could come up and if they could be vetted through CEQA process 4. Receive Report, Discuss and Make Recommendations Regarding Ground Water Replenishment Project Schedule and Areas where the Water Authority Can Assist in Evaluating and Moving the Project Forward (Israel) TAC Member Israel spoke to the item indicating that the list has been updated with regards to public health. He questioned what the procedural mechanism is for asking the CPUC to engage. Legal Counsel Russ McGlothlin will be contacted to provide the best opportunities. The TAC spoke to the schedule included in the packet and the opportunities identified by the MRWPCA for the Authority to offer assistance which include the following: Source Water Agreements Participating in key discussions with regulator agencies Support of project funding via the 2014 Water Bond Assistance in the planning of the externalities study Mr. Israel outlined the numerous permits that were required on the Federal (6), State (10), regional/local permits (16) and private entities (3) level. He then spoke to current efforts to assess and identify all waters in Northern Monterey County citing the need for the development of a full-scale general plan to minimize short term solutions. Chair Burnett invited public comments. Tom Rowley spoke concerning the availability of source waters. He expressed concern about ASR not being reliable, the timeline for installation of the proposed pipeline and questioned opportunities to expedite the process. He questioned the GWR project quantity projections and how it was measured. Nelson Vega spoke to the draft Water Purchase Agreement (WPA) and expressed concern about liability if you cannot produce the amount of water that is committed. He spoke in support of bifurcating the two projects but thinks the projects will still be done in a lineal pattern instead of on parallel tracks. Lastly, he expressed concern regarding stranded costs from the projects.

Mr. Israel answered Mr. Rowleys questions that the quantity of water is measured at point of injection and that the deep wells are more expensive than the shallow wells. Chair Burnett agreed with concerns of liability if adequate water cannot be produced but noted the WPA has not been drafted yet and contingencies will be built into the projects to account for these concerns. The TAC discussed the need for an independent analysis to be done of the GWR project. Member Israel reported that the Independent Advisory Panel, funded by the Irvine Foundation is conducting an analysis of the project and has offered to provide an update to the Authority if requested.

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Discuss, Provide Staff Direction in Identifying Information Necessary to Evaluate the Ground Water Replenishment Project (Cullem) This item was discussed and taken up under previous items. There was no additional discussion. ADJOURNMENT The meeting adjourned at 12:53 p.m.

Respectfully Submitted,

Approved,

Lesley Milton, Committee Clerk

Jason Burnett, TAC Chair