MI NUTES

MONTEREY PENINSULA REGIONAL WATER AUTHORITY

TECHNICAL ADVISORY COMMITTEE (TAC)
Regular Meeting
10:30 AM, Monday, June 2, 2014
COUNCIL CHAMBER
580 PACIFIC STREET
MONTEREY, CALIFORNIA

Members Present Israel, Narigi, Alternate Ottomar, Riley Stoldt, Burnett,

Members Absent: Huss

Staff Present: Executive Director, Legal Counsel, Clerk

CALL TO ORDER

Member Stoldt called the meeting to order at 10:30 AM.

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM TAC MEMBERS

Member Riley spoke to a quote in a published article by Mayor Burnett indicating that public
ownership was necessary and requested clarification he questioned if that was just an element
for negotiations. Member Stoldt said this was not an Authority question but would speak with
Member Riley about it after the meeting.

Chair Burnett arrived at 10:35 AM.

PUBLIC COMMENTS

Member Stoldt Invited public comments for items not on the agenda.
David Lifland spoke to a report released from the Monterey Regional Water Pollution Control
Agency regarding geological work which indicated the Seaside Basin was 40 feet below sea
level, then he spoke to the storage capacities listed in the report.

APPROVAL OF MINUTES

1. Receive Report and Discuss Selection of the Consultant for the Value Engineering (VE)
Study of the Monterey Peninsula Water Supply Project (MPWSP).- Cullem

Executive Director Cullem reported regarding the Value Engineering RFP and selection
process. He reported that the Governance Committee accepted the recommendation of
the Selection Committee for VMS and left the Authority with the responsibility to award the
contract and authorized negotiations with VMS to reduce costs. Mr. Cullem reported the
specific negotiating areas to reduce costs. Mr. Cullem answered questions of the TAC.
Chair Burnett invited comments from the public and had no requests to speak.

Report was received and the TAC agreed to recommend the Authority to enter into a
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Regular Meeting Minutes - Monday, June 2, 2014
2
contract with VMS after negotiating specific reduced costs.

3. Receive Report on the Status of the Environmental Impact Report and the
Hydrogeological Report for the Monterey Peninsula Water Supply Project Slant Wells-
Crooks

Ian Crooks, Cal Am presented a verbal update indicating the release date of the draft
Environmental Impact Report (EIR) is still on schedule for release in the third quarter. He
also indicated the Marina Mitigated Negative Declaration (MND) for the Cemex test well
was released and is out for public review. He reported that all bore hole drilling and
analysis has been completed and the bore hole technical memorandum, the findings of
the borehole program, will be released next week as well as the ground water model for
the Cemex test well. Ground water modeling for the entire test wells will be done in July
and incorporated into the full EIR. Lastly, he reported that the 60% design schedule
should be completed by September. Mr. Crooks answered questions from the TAC.

Member Stoldt left the meting at 10:56 AM

The TAC discussed the level of review that they desired to have over the documents
speaking to where they could add to the process versus being informed of the process.

Chair Burnett invited public comments on the item.

David Lifland requested the information discussed to be posted on the internet and
accessible to the public.

The TAC and Mr. Crooks agreed to send links of the referenced documents when
released to full distribution list.

4. Receive Report on the Term Sheet for Use of the Monterey Regional Water Pollution
Control Agency Outfall and Receive and Discuss the Technical Study on Landfill Power -
Crooks

Ian Crooks, Cal Am spoke to the term sheet developed for incorporation into an agreement
for the use of the MRWPCA outfall indicating it has been sent to the MRWPCA for review
and incorporation. He expects significant movement in June after source water
negotiations are complete. He then spoke to the Technical Study on Landfill Power which
showed favorable for feasibility. The next step with the District is the formulation of capital.
He closed by saying it is not a critical path method at this time.

Executive Director Cullem questioned if potential issues with the capacity for brine outfall
has been resolved to which Mr. Crooks answered is being addressed.

Chair Burnett invited comments from the public and had no requests to speak.









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MPRWA TAC Meeting Minutes
Regular Meeting Minutes - Monday, June 2, 2014
3
5. Receive Report on the Negotiations for PWM Source Water and Ground Water
Replenishment Product Water-Israel

Member Israel spoke to the status of the source water agreements, the process of the
Pure Water Monterey project ongoing activities, key factors for the Water Negotiations
meetings and other activities that they are focusing on. Member Stoldt spoke in support of
Mr. Israels comments and indicated there is room for agreement that can satisfy
everyone.

Member Riley questioned the states recent thrust with drought problems and recycled
water efforts and asked if they are more supportive of this type of project, will more money
become available and if PWM is optimistic about the necessary approvals. Member Stoldt
responded that money has been extended at lower interest rates for longer periods to
assist with projects and spoke to current efforts to apply for grant funding targeting drought
specific projects. He then spoke to the legislative items currently under consideration that
could impact local water projects and their status at the state level.

Chair Burnett invited public comment on the source water project negotiations.

David Lifland questioned which source water will be replacing the water that is going back
to Salinas. It was understood there would be water in the pond for use, now that the ponds
will be used, how will it be replaced? Mr. Israel responded by explaining the projected
sources of water and their flows.

Chair Burnett spoke to the schedule presented and expressed gratefulness that they were
getting down to the business negotiations to make the project happen as it has been in the
work for a long time. Member Israel indicated that the unfortunate drought has brought a
level of awareness that an agreement needed to be made, it heightened the sense of
emergency and pushed people to work together for solutions.

Executive Director Cullem spoke to the meeting schedule and the upcoming deadlines
imposed by the CPUC settlement agreement. The Authority will be providing testimony to
the CPUC regarding the GWR project, if it should remain a viable part of the proposal, but
information is still outstanding from the source water agreements to be able to prepare the
testimony. Mr. Cullem requested the TAC identify what information is needed to continue
the support of the project.

The TAC determined the following information was critical:
Cost Comparison and the Economics of the project (With the understanding it wont be
able to finalize until business terms are locked in)
Key questions outlined within the Settlement Agreement

This was a discussion item only.

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Regular Meeting Minutes - Monday, June 2, 2014
4
6. Discussion of Request to Cal Am for a Detailed Critical Path Method (CPM) Schedule for
all Permits and Approvals for the Monterey Peninsula Water Supply Project (MPWSP) -
Cullem

Executive Director Cullem spoke to the item and the continued questions regarding
permitting authority and acquisition and suggested that the Authority formally request that
Cal Am provide a detailed description of all the permits required and a timeline of their
critical path method (cpm). This will help with the proposal with the State Water Resources
Control Board extension request. Mr. Cullem described a CPM schedule typically includes
all required activities, their timelines of approval and how they interact with each other. He
specified that it is only requested for the desal plant project.

Chair Burnett invited public comments.

David Lifland indicated that Cal Am previously presented such a chart to which Mr. Cullem
indicated the request is for a more detailed schedule than what was previously presented.

The TAC concurred with the request that it is a needed element.

Mr. Crooks agreed that there is a schedule but it would need to be compressed for public
consumption and he could have the schedule available by the July 7
th
meeting. Chair
Burnett requested Mr. Crooks to identify and focus on areas where the Authority could play
a role and where they could be engaged, specifically as it relates to permits.

ADJOURNMENT

Member Riley requested the Authority receive presentations from the other desalination projects
to keep informed of progress and timetables so the Authority is equipped to respond to public
questions. Chair Burnett indicated that the release of the draft EIR would be a good time to
invite the other project proponents in to augment the record. Executive Director Cullem spoke to
the proposed forum which would be an opportunity to receive reports from all projects.

Chair Burnett then suggested agendizing a discussion following the campaign to clarify
information that has been distributed.

Having no further business to conduct, the meeting was adjourned at 11:46 AM.:



ATTEST:




Lesley Milton, Authority Clerk Jason Burnett, Vice President

Monterey Peninsula Regional Water Authority
Agenda Report

Date: June 02, 2014
Item No: 2.



06/12
FROM: Executive Director Cullem

SUBJECT: Receive Report and Discuss Selection of the Consultant for the Value
Engineering (VE) Study of the Monterey Peninsula Water Supply Project
(MPWSP).

RECOMMENDATION:
It is recommended that the TAC discuss the tentative contract for the VE Consultant
recommended by the selection committee and approved by the Governance (GC) Committee
on May 23.

DISCUSSION:
Section V., Category A.2 of the Governance Committee Agreement specifies that the
Governance Committee shall make a recommendation to California American Water (Cal-Am)
on selection of professional engineer to perform a value engineering (VE) study for the
Desalination Project at the 30% design level.
Since the GC had no way to award contracts, the Water Authority advertised the RFP. The TAC
reviewed the draft RFP and scope of work for the VE and its comments were incorporated into
the final versions. The RFP was advertised on April 17 and two (2) proposals were received on
May 8.
A selection committee reviewed the proposals and recommended a preferred firm to the GC.
Rick Riedl was approved by the TAC to serve as its representative on the selection committee.
On May 23 the GC approved the selection of Value Management Strategies (VMS) for a fee
not-to-exceed $124,000. At its meeting of June 12, the Water Authority will award the contract,
which will be administered by the Executive Director.
During the week of June 2, the Executive Director and the representative from Cal Am will meet
with VMS to negotiate some changes in the scope of work in an effort to reduce the costs. TAC
input on where and how to reduce costs (Exhibit A)will be solicited at the TAC meeting.
BUDGET CONSIDERATIONS:
The Water Authority FY 2013-2014 budget has been increased by not-to-exceed $200,000 to
pay for the VE study, with the actual final cost to be reimbursed by Cal-Am per the Governance
Agreement.




EXHIBITS:
VE Consultant Cost Proposal


COST PROPOSAL
Monterey Peninsula Desalination Plant - 5 Day VE Study
Monterey, CA
BIM
Name

&Hs
PRE WORKSHOP - Preparation and Coordination
Co6..t

TaI
Program Manager
VE Team Leader
Assistant Team Leader/Technical Writer
Project Coordinator
Civil/Structural Engineer
Architect & LEED Evaluator
Electrical, Instrumentation, and Controls Engineer
Operations and Maintenance
Envision Evaluator
WORKSHOP - VE Study
VE Team Leader
Assistant Team Leader/Technical Writer
Civil/Structural Engineer
Architect & LEED Evaluator
Electrical, Instrumentation, and Controls Engineer
Operations and Maintenance
Envision Evaluator
Stewart, Robert
Watson, Mark
Brink, Mariah
Kramer, Cheryl
Tavangar, Omid
Lambert, Michael
Ettlich, Bill
Close, Craig
Reardon, Dave
Watson, Mark
Brink, Mariah
Tavangar, Omid
Lambert, Michael
Ettlich, Bill
Close, Craig
Reardon, Dave
4

$290.22

$1,160.88
24

$220.32

$5,287.68
2

$92.53

$185.06
8

$158.61

$1,268.88
8

$238.00

$1,904.00
8

$169.00

$1,352.00
8

$258.00

$2,064.00
8

$354.00

$2,832.00
8

$358.00

$2,864.00
$18,918.50
50 $220.32 $11,016.00
50 $92.53 $4,626.50
40 $238.00 $9,520.00
40 $169.00 $6,760.00
40 $258.00 $10,320.00
40 $354.00 $14,160.00
40 $358.00 $14,320.00
Total WORKSHOP - VE Study: $70,722.50
$8,986.50
Total PRE WORKSHOP - Preparation and Coordination:
POSTWORKSHOP - VE Preliminary Report
VE Team Leader
Watson, Mark 24 $220.32 $5,287.68
Project Coordinator
Kramer, Cheryl 2 $158.61 $317.22
Assistant Team Leader/Technical Writer Brink, Mariah 24 $92.53 $2,220.72
QA/QC
Stewart, Robert 4 $290.22 $1,160.88
Total POSTWORKSHOP - VE Preliminary Report
POSTWORKSHOP - Implementation Meeting and Final VE Report
VE Team Leader
Watson, Mark 28 $220.32 $6,168.96
Project Coordinator
Kramer, Cheryl 2 $158.61 $317.22
Assistant Team Leader/Technical Writer Brink, Mariah 22 $92.53 $2,035.66
QA/QC Stewart, Robert 4 $290.22 $1,160.88

Total POSTWORKSHOP - Implementation Meeting and Final VE Report: $9,682.72

Labor SubTotal: $108.310.22

Other Direct Costs
Category

UM

Number

Cog

191.61
Watson, Mark
Airfare Study and Implementation
Round trip transportation
Rental Car - 1 car
Meals and Incidentals
Lodging/Hotel
Parking-hotel
Baggage Fees
Brink, Mariah
Airfare
Round trip transportation
Meals and Incidentals
Lodging/Hotel
Baggage Fees
each
each
Day
Day
Day
Day
each
each
each
Day
Day
each
2
2
8
7
8
7
4
1
1
6
5
2
$800.00
$100.00
$75.00
$71.00
$145.00
$15.00
$30.00
$700.00
$100.00
$71.00
$145.00
$30.00
$1,600.00
$200.00
$600.00
$497.00
$1,160.00
$105.00
$120.00
Total:
$700.00
$100.00
$426.00
$725.00
$60.00
Total:
$4,282.00
$2,011.00
Tavangar, Omid
Rental Car - 1 car
Meals and Incidentals
Lodging/Hotel
Parking-hotel
Day
Day
Day
Day
6
6
5
6
$75.00
$71.00
$145.00
$15.00
$450.00
$426.00
$725.00
$90.00
Total: $1,691.00
each
each
Day
Day
Day
Day
each
1
1
6
6
5
6
2
$700.00
$100.00
$75.00
$71.00
$145.00
$15.00
$30.00
$700.00
$100.00
$450.00
$426.00
$725.00
$90.00
$60.00
Total: $2,551.00
LS

3 $300.00 $900.00
EA

18 $100.00 $1,800.00
LS

1 $150.00 $150.00

Total Misc. ODC: $2,850.00

Other Direct Cost SubTotah $15.687.00

Lambert, Michael
Meals and Incidentals

Day

$71.00

$426.00
Lodging/Hotel

Day

$145.00

$725.00

Total:

$1,151.00
Ettlich, Bill
Meals and Incidentals

Day

$71.00

$426.00
Lodging/Hotel

Day

$145.00

$725.00

Total:

$1,151.00
Close, Craig
Airfare
Round trip transportation
Rental Car - 1 car
Meals and Incidentals
Lodging/Hotel
Parking-hotel
Baggage Fees
Miscellaneous Direct Costs
Shipping - Preliminary, Draft Final, Final Reports
Reproduction - Preliminary, Draft Final, Final Reports
Miscellaneous Supplies - CDs, Labels, Paper
TOTAL COST PROPOSAL $123997.22
Monterey Peninsula Regional Water Authority
Agenda Report

Date: June 02, 2014
Item No: 3.



06/12
FROM: Executive Director Cullem

SUBJECT: Receive Report on the Status of the Environmental Impact Report and the
Hydrogeological Report for the Monterey Peninsula Water Supply Project Slant
Wells-Crooks

DISCUSSION:
There is no written report for this Item. A verbal report will be provided at the meeting.

Monterey Peninsula Regional Water Authority
Agenda Report

Date: June 02, 2014
Item No: 4.



06/12
FROM: Executive Director Cullem

SUBJECT: Receive Report on the Term Sheet for Use of the Monterey Regional Water
Pollution Control Agency Outfall and Receive and Discuss the Technical Study
on Landfill Power -Crooks

DISCUSSION:
There is no written report for this Item. A verbal report will be provided at the meeting.

Monterey Peninsula Regional Water Authority
Agenda Report

Date: June 02, 2014
Item No: 5.



06/12
FROM: Executive Director Cullem

SUBJECT: Receive Report on the Negotiations for PWM Source Water and Ground Water
Replenishment Product Water-Israel

DISCUSSION:
There is no written report for this Item. A verbal report will be provided at the meeting.

Monterey Peninsula Regional Water Authority
Agenda Report

Date: June 02, 2014
Item No: 6.



06/12
FROM: Executive Director Cullem

SUBJECT: Discussion of Request to Cal Am for a Detailed Critical Path Method (CPM)
Schedule for all Permits and Approvals for the Monterey Peninsula Water Supply
Project (MPWSP)

RECOMMENDATION:
It is recommended that the TAC discuss a request to Cal Am to provide a detailed CPM for all
permits and approvals required to complete the MPWSP.

DISCUSSION:
At the Governance Committee (GC) meeting of May23, the Executive Director requested that
the GC and the Water Authority request Cal Am provide a detailed CPM per the above
recommendation. Requirements to provide a detailed CPM, if requested, are included in the
approved Governance Agreement.
A TAC discussion of what should be included in the CPM, both in terms of content and detail,
would be helpful in formulating a request letter to Cal Am.
Reviewing and tracking the CPM could become a work element for the TAC.