MI NUTES

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)

Regular Meeting
7:00 PM, Thursday, April 10, 2014
580 PACIFIC STREET
MONTEREY, CALIFORNIA

Directors Present: Burnett, Edelen, Alt. Lucius, Pendergrass, Rubio, Della Sala

Directors Absent: None

Staff Present: Executive Director, Legal Counsel, Clerk

ROLL CALL

President Della Sala called the meeting to order at 7:00 p.m.

Alternate Director Casey Lucius was present representing the City of Pacific Grove.

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

No reports from Directors or staff.

PUBLIC COMMENTS

President Della Sala invited public comments for items not on the agenda.
Tom Rowley spoke representing the Monterey Peninsula Taxpayers Association regarding
Monterey Peninsula Water Management District use of Ordinance 152 funds, and is awaiting a
decision by the judge regarding a submitted referendum. He thanked the Directors for not
approving a study and for not supporting Measure O. Nelson Vega requested an update of the
projects that make up the portfolio and spoke to the potential to size the desalination facility at
over 12,000 acre/foot. David Lifland spoke to the proposed plan that the Seaside Basin would
be a mixture of water from all three water projects, but questioned the intentions to price that
water.

AGENDA ITEMS

1. Receive, Discuss, Revise, and Approve the Request for Proposal (RFP) and Scope of Work for
a Value Engineering (VE) Study of the Monterey Peninsula Water Supply Project (MPWSP)

Executive Director Cullem indicated that the Governance Committee voted for selecting and
contracting directly with the Value Engineering firm for the design build contract to ensure
public oversight and transparency. The purpose of the VE would be to look for fatal flaws and
identification of efficiencies and reduced costs through design improvements and is most
effectively done at 30% design build. The estimated costs is not to exceed $200,000 with all
costs reimbursable by Cal Am. The Authority would solicit and acquire the value engineer, but
the Governance Committee will select the firm. Vice President Burnett indicated the TAC
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reviewed and recommended the attached RFP, contract and scope of work for the RFP.
Director Rubio requested that the Authority incur any undue liability from the contract.

President Della Sala invited public comment.
Nelson Vega questioned the assurance of this project and if the timing was premature
expressing concern regarding stranded costs. David Lifland questioned if there was a
performance clause. Tom Rowley spoke to Director Rubio's concern regarding liability and in
support of advice from the Legal Counsel Freeman.

Director Burnett spoke to the schedule and the process by which Cal Am would or would not
incorporate suggestions from the VE. Legal Counsel Freeman indicated that because we are
involved in the PUC process we have to maintain the adopted schedule. The performance
clause must be handled between Cal Am and the VE firm. Mr. Freeman further clarified the
common local government practice for City projects to require the project to fund an EIR but the
City would contract for the services, to ensure the extra layer of transparency and public
oversight and control.
On a motion by Director Lucius and seconded by Director Edelen and carried by the following
vote, the Authority approved authorizing the Executive Director to advertise the Request for
Proposal (RFP) and Scope of Work for a Value Engineering (VE) Study of the Monterey
Peninsula Water Supply Project (MPWSP), if approved by the Governance Committee:

AYES: 6 DIRECTORS:
Burnett, Edelen, Alt. Lucius, Pendergrass, Rubio,
Della Sala
NOES: 0 DIRECTORS: None
ABSENT: 0 DIRECTORS: None
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

2. Receive Update, Discuss and Provide Recommendation on Update to the Monterey Peninsula
Regional Water Authority Work Plan

Executive Director Cullem spoke to the status of the items approved in the previously adopted
work plan. He requested direction for additions to the work plan.
He noted that Monterey Peninsula Water Pollution Control Agency General Manager Israel
requested to make a full presentation to the public regarding the Ground Water Replenishment
"Pure Water Monterey" project to provide an update regarding the status of the project, the
status of the water negotiations, the status of the settlement agreement meetings to bring the
Authority and the public up to date. The Directors agreed to agendize a presentation by the
MRWPCA. Executive Director Cullem encouraged the public to attend educational tours of the
GWR testing facility.
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Director Burnett requested direction on when the Authority would like to proceed to request an
official extension of the Cease and Desist Order (CDO) from the State Water Resources
Control Board and suggested timing for a petition be submitted in 2014.
Director Rubio spoke to the definition of when the projects can be considered viable. Director
Edelen indicated it must be after the election deciding Measure O.
With regard to the required permits, the City of Marina requested more effort to keep the staff
and the City more informed regarding the project. The directors discussed the permitting
schedule that the level of involvement and requested to remain informed of the timelines and
participate when necessary.
President Della Sala invited public comment.
Tom Rowley spoke to the CDO extension request timing and things that need to be done prior
to the request, including more participation from the County of Monterey. Nelson Vega
requested that the Authority not lose sight of the cost per acre foot of water and spoke to the
impacts of uncertainty of water is going to have with regard to economic development. Source
water is the issue and cost per acre foot is paramount to a viable project. Citizens are not
serviced by water too expensive to drink. David Lifland spoke in support of having a successful
test well prior to the petition and questioned the hydrogeological report results.

Alternate Director Lucius requested adding to the strategy of the CDO that if this body is not
necessarily submitting a request for the extension, but a statement of support, a coordinated
strategy is important to demonstrate process and impact, including all of the agencies and
associations voices into these different statements of support could be more powerful one
representative to pleased. Its not just the request, but the impact of statement of support. The
Directors agreed and requested that the Authority continue to pursue the work plan as written
with the above additional directions

3. Approve Mid-Year FY 2013-2014 Amended Budget and Approve the FY 2014-2015 Budget

Executive Director Cullem spoke to the item outlining the previously adopted budget for the
2013-14 fiscal year, which accounted for a carry over balance that was never realized due to
the increase of legal services expenses. He indicated that the Authority would not be required
to request additional contributions from member cities if funds outstanding from Monterey
County are approved. He called attention to the contract assistance line item for value
engineering services approved as fully reimbursable earlier in the meeting indicating that the
contract will not be issued until the fund have been received for reimbursement.
Mr. Cullem then outlined the anticipated expenditures for Fiscal year 2014-15 and noted that
the funds were from Monterey County have not been factored into this budget yet as it is not
guaranteed however if the county agrees to the fair share contribution, the budget would be
amended.
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President Della Sala invited public comment
Neslon vega indicated that the Authority should include more funding for public outreach to
promote the benefits and accomplishments of the agency. The public needs to understand what
would happen if the Authority was not created. Tom Rowley suggested re-extending the
request to the County to participate in this agency. He also spoke in support of Mr. Vega's
comments regarding the Authority efforts to date.

On motion by Director Pendergrass and seconded by Director Rubio and passed by the
following vote the Authority approved the staff recommendation for amending the FY 13-14
budget and approving the proposed FY 14-15 operating budget as presented.

AYES: 6 DIRECTORS:
Burnett, Edelen, Alt. Lucius, Pendergrass, Rubio,
Della Sala
NOES: 0 DIRECTORS: None
ABSENT: 0 DIRECTORS: None
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

ADJOURNMENT

Having no further business to conduct, the meeting was adjourned at 8:31 p.m.



ATTEST:





Lesley Milton, Authority Clerk Chuck Della Sala, President