MINUTES

MONTEREY PENINSULA WATER AUTHORITY (MPRWA)

TECHNICAL ADVISORY COMMITTEE (TAC)
Regular Meeting
10:30 AM, Monday, November 7, 2016
COUNCIL CHAMBERS
580 PACIFIC STREET
MONTEREY, CALIFORNIA

Members Present: Member Huss, Member Narigi, Member Reidl, Member Riley, Member
Stoldt, Member Van Der Maaten, Executive Director Cullem
Members Absent: Member Sciuto

Staff Present: Legal Counsel Freeman, Clerk Romero

CALL TO ORDER

Executive Director Cullem called the meeting to order at 10:30am.

ROLL CALL

Clerk Romero called the Roll.

PLEDGE OF ALLEGIANCE

REPORTS FROM TAC MEMBERS

Member Riley requested to agendize an item to talk about future items. He announced that
Public Water Now (PWN) has requested to remove itself as a settling party in the large
settlement agreement regarding the California American Water (Cal Am) Water Supply Project.
Member Riley explained that PWN wishes to withdraw due to Cal Ams data on test wells. He
also requested to agendize a discussion regarding the following issues:

o Cal Ams schedule for addressing water rights.

o Cal Ams test well data is stuck at 92% salinity
o The difference between Cal Ams test well data and production well projected volumes.
o Cal Am made a statement to the California Public Utilities Commission (CPUC) that Cal
Ams the non-revenue water is down to 2%. He would like to discuss where this data
comes from.

Director Cullem responded that Member Rileys concerns are all valid issues, however some
may not be appropriate for the Monterey Peninsula Regional Water Authority (the Authority) to
discuss if they not supportive of what the Authoritys overall mission and scope. Legal Counsel
Freeman confirmed that water rights are not in the scope of the Authoritys mission. Member
Riley opined that Cal Ams water rights schedule and the test well data are relevant issues for
the Authority to discuss at a future meeting.
 MPRWA TAC Minutes Monday, November 7, 2016

PUBLIC COMMENTS

Tom Rowley, Monterey Peninsula Taxpayers Association (MPTA), said that Public
Water Now gave misleading and false information during public comment at a recent
Monterey City Council meeting which is confusing to the public and to certain
Councilmembers. He added that Mr. Stoldts presentation given to the Monterey City
Council at the following meeting was very helpful to clarify questions about the water
supply project and provide facts.

Bill Caruthers, gave praise to Dave Stoldt for accurately representing Ground Water
Replenishment during his presentation.

CONSENT AGENDA

Approval of Minutes

1. Approve Minutes from September 19, 2016 - Romero

Action: Continued

Member Riedl arrived at 10:46am.

Members Van Der Maaten, Narigi, Stoldt, Riedl and Riley asked for amendments to the
September meeting minutes. Member Riley recommended continuing the minutes to the next
meeting after revisions are made and the committee agreed.

Member Narigi requested that the end cost of Ground Water Replenishment (GWR) to the
ratepayer be agendized at a future meeting. He also requested a future agenda item to review
the members of the TAC.

***End of Consent Agenda***

AGENDA ITEMS

2. Receive Report, and Discuss Draft Revisions to the Water Authority Policy Position Statement -
Cullem/Sciuto/Riley
Action: Received report; discussed; made recommended changes to Policy Position
Statement

Executive Director Cullem reported that per the Authoritys request the TAC subcommittee
reviewed and revised the Authoritys Policy Position Statement (the Policy). He referenced a
change the subcommittee made to the policy verbiage regarding the 8 criteria of Cal Ams
project, since it has already been approved and moving forward. Executive Director Cullem
requested that the policy statement be simplified and asked if the TAC had any other
recommendations for revisions.

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Member Riley said that he would like the subcommittees draft policy to get comments and
input from each TAC member. He said that the committee didn't have a lot of back and forth in
the policy changes. Member Riley suggested reviewing the length of the Authoritys
involvement in the water supply project, as well as considering having the Water Management
District define the process instead of Cal Am. He reasoned that the Water Management District
is an elected body with a wider jurisdiction for sustainability, long term use, conservation
whereas Cal Am is only responsible for water production and delivery.

Member Stoldt said that its a requirement the California Department of Water Resources that
each jurisdiction must allocate water through a planning process. Executive Director Cullem
said that the Authority has recognized that the process for allocation has to start before the first
drop of water is available and plans to remain involved until the portfolio project begins
production of water.

Member Riley expressed concern about the Authoritys creeping mission statement which has
changed over time due to the CDO (Cease and Desist Order) deadlines. Member Narigi stated
that the current Water Management Districts (WMD) mission is to handle the future water
needs of the Peninsula, and suggested changing the policy to say that after 2021 the Authority
will sunset and allow the WMD handle future water needs. Member Riedl recommended
changing the wording in the policy to say that the Authority recognizes the WMD will initiate a
process to address future water needs, or leave out the part that mentions the Authority being
involved in future water needs. The Committee consented to this change.

Member Stoldt said that the policy says that Cal Ams project earned Water Authority support
since they satisfied the criteria, but later says that not all criteria have been satisfied. He
recommended changing this because Cal Am hasn't met all 8 of the criteria and would be unfair
to hold another project to meet all the criteria. He suggested changing the verbiage to say
projects must make substantial progress to satisfy the intent of the criteria because different
criteria are needed for different projects. Member Narigi asked if Cal Am could provide
information at the next TAC meeting about PG&E (utility company) costs for the slant wells.

Member Van Der Maaten said that the policy goals mention a portfolio of projects but later on
mentions specific projects. He suggested that the policy either be specific to the project or leave
it open for different projects to come in. Executive Director Cullem said the Policy could be
changed to leave it open to different projects and the intent of portfolio is to keep it diversified.
Member Riedl suggested that there be a contingency plan if the system goes down.

PUBLIC COMMENT

Tom Rowley, MPTA, said that over the years the Authority Directors have discussed

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was the focus vs. the long term objective. He said the Authority was formed to give input
on several water projects and help get a water project started on the Peninsula. He said
that the true cost of GWR is still needed.

Member Stoldt addressed public comment by clarifying that the Authority was created to give a
voice on the regional desal plant at the time. He added that the Cities were concerned that they
did not have adequate representation so the Authority was formed as a Joint Powers Authority
(JPA) and served as an advisory body to get a seat at the table. He said that the Authority's role
was to look at what comes next after the regional desal plant project failed. He continued that
the cost of GWR has been publicly vetted and been through the Public Utilities Commission
(PUC) process and added that small projects can be more cost effective than big projects.

Executive Director Cullem stated that the recommended changes made by the TAC to the
Policy Position Statement will be presented at the next Authority meeting.

3. Receive Report, Discuss, and Make Recommendations on a Technical Review of the Pending
Re-circulated EIR/EIS for the MPWSP - Cullem
Action: Recommend that the Authority authorize Geosyntec to review the EIR

Executive Director Cullem reported that a request for Geosyntec to do an independent review
of the Environmental Impact Report (EIR) will cost $10,000. Member Riley voiced concern
about spending more money on consultants and there not being long enough time for
Geosyntec to thoroughly review it. Executive Director Cullem acknowledged that there is a time
crunch for the consultants to review the EIR.

Member Narigi said that the two main concerns about the EIR are to make sure it is as
bulletproof as possible and take care of any legal challenges. He suggested that the TAC vote
today on whether to recommend that Geosyntec reviewing the EIR.

PUBLIC COMMENT

Bill Caruthers, said the Authority should feel free to give California back to the Indians.

Tom Rowley, MPTA, said that at the joint meeting of the TAC and the Authority in
August, there was an objective review of the other water projects. He urged the board to
look at the other competing projects besides Cal Am. He suggested having the Authority
get an update from each project at every meeting and if they are not making progress to
consider that.

Executive Director Cullem summarized the TACs recommendation is that the Authority to be
prepared to authorize $10,000 for Geosyntec to review the EIR when it comes out in December

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2016.

4. Receive Report and Discuss Pure Water Monterey Project Production Levels - Sciuto
Action:

Member Stoldt, General Manager of the Monterey Peninsula Water Management District, gave
a presentation on source waters and water recycling. He showed a graph of various source
waters: unused wastewater, Lake El Estero, Blanco Drain, rec ditch, SVRP modifications, and
Salinas Facilities water. He showed a graph of source waters over the year and said that
certain months there will be a reserve. He then gave a presentation on Pure Water Monterey
(PWM) Project Production Levels. He gave an overview of PWM drought reserves, operating
reserve minimum, performance start date, and allotments under the water purchase agreement.

Riley asked about the minimum allotment, and if the default amount means that water would be
pulled from reserves if the PWM doesnt produce enough water. Member Stoldt responded that
the PWM plant will be able to meet the minimum allotment using drought or operating reserves
when necessary, and in times of excess there will be greater levels of reserves. Member Van
Der Maaten asked about the "take or pay" amount of water that Cal Am has to pay for. Member
Stoldt said that Cal Am only pays for the water they deliver. He also said that there is an
insurance policy for PWM to protect the plant from most but not all risks.

Member Narigi asked if there are any concerns about having enough source water available.
Member Stoldt said that there are some risks with agricultural wash water if new technology
comes out that decreases the amount of water used for farm operations. Member Narigi asked
if there is a contract with farmers for them to provide a certain amount of agricultural wash
water, and Member Stoldt said that there is not a specific amount promised. Member Huss said
that there should be enough source water available from the Blanco Drain.

Member Riedl asked if there is insurance to cover the default 2800 acre feet. Member Stoldt
said no, but the operating reserve is a form of insurance to cover a short term water outage.
Member Riedl asked if the graphs of the various source water amounts are the best case
scenario amounts, and Member Stoldt said that the amounts are averages.

PUBLIC COMMENT

None

No action was taken on this item. A report was received and discussed. Member Huss left the
meeting at 12:24 pm.

5. Receive Report and Discuss the Detailed MPWSP Schedule Including Upcoming Permit
Requirements and the Status of the Test Slant Well - Crooks
Action: Received report

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Ian Crooks, Cal Am, gave a presentation of the summary schedule for the Monterey Peninsula
Water Supply Project (MPWSP) and reported that the test slant well continues to pump at 92%
salinity. He reported that the dates for the EIR and California Public Necessity Certificate
(CPCN) dates are provided by the California Public Utilities Commission (CPUC). He added
that after the EIR and CPCN are certified the permit process with Coastal Development through
the City of Marina and the California Coastal Commission will begin.

Chair Cullem asked about the status of the test slant wells. Mr. Crooks responded that the test
wells continue to pump around 92% salinity for about a year. He said the Coastal Commission
permit for the test well expires in February but could be extended. Member Riley expressed
appreciation for the update.

PUBLIC COMMENT

None

ADJOURNMENT

Executive Director Cullem adjourned meeting at 12:31 pm.

Respectfully Submitted, Approved,

Nova Romero, Authority Clerk, Committee Clerk President MPRWA