M I N U TE S

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)

Special Meeting
7:00 PM, Monday, September 18, 2017
MONTEREY

MONTEREY, CALIFORNIA

Directors Present: Director Carbone, Director Edelen, Alternate Director Smith, President
Kampe
Directors Absent: Director Dallas, Director Roberson, Director Rubio

Staff Present: Legal Counsel Freeman, Special Legal Counsel McGlothlin, Executive
Director Cullem

CALL TO ORDER

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

ROLL CALL

Directors Dallas and Rubio were absent, and Alternate Director Smith filled in for Director
Roberson.

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

None

PUBLIC COMMENTS

• David Armanesko gave an update on Deep Water Desal (DWD) and noted that DWD
was officially approved as the backup project for the Monterey Peninsula Water Supply
Project (MPWSP).

• Michael Warburton, Public Trust Alliance, said he was originally in favor of the desal
project but changed his mind due to a law which might allow water to be transported to
the Peninsula. He said businesses may be pursuing litigation now that alternatives are
becoming available.

• Tom Rowley, Monterey Peninsula Taxpayers Association (MPTA), commented on the

lack of County participation in MPRWA and that he is not happy with the Monterey
Peninsula Water Management District (MPWMD) budget.

• Michael Baer, resident, commented that the test well is only valid at 88% salinity and
fears that it could drop below 88% with a wet winter. He also commented on the
mounding at the Cemex mine pit.

CONSENT AGENDA
 MPRWA Minutes Monday, September 18, 2017

A request was made to remove items #2 and #3 from consent.

1. Approve and File Authority Checks Through August 31, 2017

Action: Approved (4-0-2, Dallas and Rubio absent)

On a motion by Director Edelen, seconded by Director Smith, and carried by the following vote,
the Monterey Peninsula Regional Water Authority Approved Consent Agenda item #1:
AYES: 4 DIRECTORS: Carbone, Edelen, Smith, Kampe
NOES: 0 DIRECTORS: None
ABSENT: 2 DIRECTORS: Dallas, Rubio
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

2. Receive Report and Approve a Joint Meeting in October with the Monterey Peninsula Water
Management District (MPWMD) and Provide Staff Direction
Action: Removed from consent; discussed; Approved a joint meeting with MPWMD in
October

Executive Director Cullem summarized the request by the MPWMD to have a joint meeting with
MPRWA to see if there are common concerns before the upcoming CPUC hearings.

PUBLIC COMMENT:

• Tom Rowley, MPTA, said he did not like Dave Stoldt’s response regarding the
joint meeting. He added that in the 1980’s the court had to intervene on
MPWMD’s water allocation decision and would like to see the MPRWA members
on the MPWMD board.

Director Smith commented that governance after MPWRA disbands is a worthy topic for future
discussions, but for now the focus should be on the water supply project. Director Edelen
voiced agreement with Director Smith and Mr. Rowley that there should be a plan for a follow
up role to avoid MPWMD no growth decisions in the future. President Kampe said these are all
valid requests but that the goal of the joint meeting with MPWMD will be a 90 minute
conversation to discuss mutual concerns for the water supply project. Director Smith suggested
that the joint meeting with MPWMD be a study session.

On a motion by Director Carbone, seconded by Director Edelen, and carried by the following
vote, the Monterey Peninsula Regional Water Authority Approved a Joint Meeeting with
MPWMD in October:
AYES: 4 DIRECTORS: Carbone, Edelen, Smith, Kampe
NOES: 0 DIRECTORS: None
ABSENT: 2 DIRECTORS: Dallas, Rubio
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

3. Authorize a Change Order to Separation Processes Inc. (SPI) and its Sub-consultant,
Geosyntec, in the Amount of $5000, to Analyze the MCWD Aerial Electromagnetic Method
(AEM) Electrical Resistivity Tomography Survey (ERT) and Advise of Possible Impact to
Models of the Desal Facility Slant Well Intakes
Action: Removed from consent; discussed; Approved change order of $5,000 to the SPI
contract for an analysis on AEM and ERT

Monterey Peninsula Regional Water Authority

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 MPRWA Minutes Monday, September 18, 2017

Executive Director Cullem gave a summary of the request for an additional $5,000 set aside if
an impartial analysis by Geosyntec on the Hopkin’s report regarding AEM and ERT models is
needed. He said it may be beneficial to have an impartial analysis by Geosyntec, in addition to
the studies by MCWD and Cal Am.

PUBLIC COMMENT:

• Micheal Baer opined that hydrogeologists are not needed to analyze the Hopkins
study. He said that the AEM study is only preliminary and suggested that the
Geosyntec review be delayed until the final report is ready.

• George Riley, Public Water Now (PWN), praised Marina Coast Water District
(MCWD) on cooperation on pipelines and GWR.

• Tom Rowley, MPTA, said he is concerned about potential delays and likes the
independent analysis by the Authority. He said there is always new data used as
a reason to delay the project.

The board discussed the benefits to having an impartial analysis to help move the project
forward.

On a motion by Director Smith, seconded by Director Carbone, and carried by the following
vote, the Monterey Peninsula Regional Water Authority Approved a Change Order of $5,000 for
SPI for an Independent Consultant Analysis:

AYES: 4 DIRECTORS: Carbone, Edelen, Smith, Kampe

NOES: 0 DIRECTORS: None
ABSENT: 2 DIRECTORS: Dallas, Rubio
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

***End of Consent Agenda***

AGENDA ITEMS

4. Receive Report, Consider Proposed Water Authority Testimony and Rebuttal Testimony
concerning the Monterey Peninsula Water Supply Project (MPWSP) to be Presented to the
CPUC by September 29, 2017, and Provide Staff Direction
Action: Authorized testimony be given to the CPUC on behalf of the MPRWA

Russ McGlothlin, Special Legal Counsel, gave a presentation to the Board on the following:
Ø Overview the schedule for the CPUC hearings.
Ø Outline of MPRWA testimony scheduled for September 29.
Ø Cal Am’s water demand estimates for the Peninsula and how the desal plant will meet
those demands.
Ø The need for the larger size desal plant and conditional support for expansion of PWM
and renewable energy for the project.
Ø MPRWA’s continued support for securitization.

Monterey Peninsula Regional Water Authority

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MPRWA Minutes Monday, September 18, 2017

Director Smith asked what gives the CPUC the authority to decide what size the desal plant can
be and how many acre feet of water is enough for the Peninsula, and Mr. McGlothlin responded
that the CPUC has jurisdiction over Cal Am and it’s service to regulate water supply. He added
that CPUC will be issuing the CPCN they need to determine that what is being applied for is in
the public interest and whether or not the project applied for is in the scale and capacity that is
necessary to meet the needs of the Peninsula.

Director Edelen requested that CPUC be made aware of Monterey’s conservation, and Mr.
McGlothlin said that this is well known and will be brought up again.

PUBLIC COMMENT

• Tom Rowley, MPTA, questioned the cost of GWR for the ratepayers and would like to
hear an analysis of the cost.

• George Riley, PWN, said that the CPUC is supposed to take the cost of the project into
consideration when making their decision. He said he would hope that during the joint
meeting with the Water District to discuss alternatives if the Cal Am project is put on the
shelf due to litigation.

• Michael Warburton, said alternative projects should be considered.

• Michael Baer, said that for every thousand acre feet of water the cost of the project goes
up exponentially.

• John Narigi, Coalition of Peninsula Businesses, said that the coalition supports the
larger size desal plant as there is nothing left that the businesses can conserve. He said
the testimony should include that the project is for a long term solution.

• Julie Engall, resident, said she hopes that there is water set aside for affordable housing
and residents as opposed to tourism.

• Resident of Pacific Grove, said it seems the CPUC is trying to mitigate the impacts of a
desal plant but there is nothing that can be done about the impacts.

Director Smith said that it should be emphasized that the demand estimates are conservative
and that there is no time left to wait for another project; the MPWSP is the most viable project in
the 11th hour. Director Carbone concurred that a buffer is necessary in the drought years and
when the desal plant has mechanical failures. The Board thanked Mr. McGlothlin for his
presentation. President Kampe said that Cal Am will factor in an operating margin in their
testimony. He also said that there is no other alternative to MPWSP and GWR to meet the
needs and growth of the community.

On a motion by Director Edelen, seconded by Director Smith, and carried by the following vote,
the Monterey Peninsula Regional Water Authority Authorized Testimony on Behalf of the
MPRWA:
AYES: 4 DIRECTORS: Carbone, Edelen, Smith, Kampe
NOES: 0 DIRECTORS: None
ABSENT: 2 DIRECTORS: Dallas, Rubio
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None
Monterey Peninsula Regional Water Authority
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MPRWA Minutes Monday, September 18, 2017

ADJOURNMENT

President Kampe adjourned the meeting at 8:35 pm.

ATTEST:

Nova Romero, Authority Clerk MPRWA President

Monterey Peninsula Regional Water Authority

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