MINUTES

MONTEREY PENINSULA WATER AUTHORITY (MPRWA)

TECHNICAL ADVISORY COMMITTEE (TAC)
Regular Meeting
10:30 AM, Monday, March 2, 2015
COUNCIL CHAMBER
580 PACIFIC STREET
MONTEREY, CALIFORNIA
Members Present:

Cullem, Huss, Israel, Narigi, Riedl, Riley, Stoldt.

Members Absent:

None

Staff Present:

Executive Director, Clerk

CALL TO ORDER
Chair Cullem called the meeting to order at 10:36 AM.
ROLL CALL
Legal Counsel Freeman was absent.
PLEDGE OF ALLEGIANCE
REPORTS FROM TAC MEMBERS
Member Riley reported that Public Water Now has invited Keith Israel to their next meeting to
discuss the Pure Water Monterey Project.
Mr. Cullem noted an item was requested to be added after the agenda was published
requesting the TAC to discuss opportunities in which the water authority could participate in the
discussion regarding the CDO extension. Mr. Cullem requested the item to be added as a
discussion item.
On a motion by Committee Member Riley, seconded by Committee Member Narigi and carried
by the following vote, the MPRWA Technical Advisory Committee approved adding an agenda
item to discuss possible ways the Authority can participation in the discussion regarding the
Cease and Desist Order extension request.
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:

6
0
0
1
0

MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:

Cullem, Huss, Israel, Narigi, Riedl, Riley, Stoldt.

None
None
Stoldt
None

PUBLIC COMMENTS
Chair Cullem invited comments from the public for items not on the agenda.

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Monday, March 2, 2015

Tom Rowley updated the Authority regarding the lawsuit between Monterey Peninsula
Tax Payers Association vs Monterey Peninsula Water Management District regarding
the 152 water supply charge, reporting that the matter is under consideration. He
expressed concern the item does not seem to be discussed publically regarding what
the potential impacts could be.

APPROVAL OF MINUTES
1.

February 2, 2015
On a motion by Member Narigi, seconded by Member Stoldt and carried by the following vote,
the MPRWA Technical Advisory Committee approved the Minutes from February 2, 2015 as
amended:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:

7
0
0
0
0

MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:

Cullem, Huss, Israel, Narigi, Riedl, Riley, Stoldt.

None
None
None
None

AGENDA ITEMS
2.

Receive Report on the Status of The Definitive Agreement for the Groundwater Replenishment
/ Pure Water Monterey (GWR/PWM) Project -Stoldt/Israel
Member Israel spoke to the definitive legal agreements that are still pending and provided an
update on the status of the different agreements. He noted that progress is being made on all of
the agreements but not all will be signed by March 31st. He anticipated completion by the end of
May 2015. Mr. Israel answered questions from the TAC.
On question, Member Stoldt explained why the targeted cost was approximately $1700-1800
acre/ft and that the externality study would reveal the true costs. Member Narigi expressed
concern that the study will not define future source water quantities to which Member Stoldt
indicated source water will be addressed in the agreements with the Salinas, Monterey and
County Water Resources Agency.
Member Riedl questioned if there is any discussion with Marina Coast Water District regarding
source water to which Mr. Israel indicated that the key focus of discussion with MCWD is
pipeline, but that discussion is possible.
Chair Cullem invited public comment on the item.

Tom Rowley indicated that the externality study will be difficult to provide data to prove
that the water injected into the Seaside Basin will be in the targeted cost range, as it still
must be treated when withdrawn. Thinks it will be hard to convince ratepayers that there
will be great benefits to the environment but the costs will be increased.
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Monday, March 2, 2015

Member Riley responded to Mr. Rowley that the same notion could be applied to the costs
being expended for slant wells. We are all faced with the argument of the environmental
benefits vs the costs. Mr. Cullem reminded everyone that the reason the Authority exists is a
result of environmental issues.
3.

Receive Report and Discuss the Latest Information on Public Funding, Including Bond
Financing, for the MPWSP and for GWR- Stoldt
Member Stoldt reported that the public financing order application will be before the CPUC in
June. He then reported progress is being made on the SRF financing for the PWM project
which is being coordinated by MRWPCA. The water purchase agreement must be done to file a
substantive application with the state. Mr. Stoldt noted that the 1% interest money will expire by
December 31st but conversations with the SRF staff to expedite the application have been
made and if 100% financing is not received, there will have to be public debt financing. The
financing plan should be secured in Summer of 2015.
Mr. Cullem questioned the implementation of Surcharge 1 and 2 to which Mr. Stoldt indicated
there will be a gap between the two. Member Riley questioned if the language in the law can be
applied to a successive project to which Mr. Stoldt indicated that it cannot be transferred from
project to project.
Chair Cullem invited comments on the item and had no requests to speak.

4.

Discuss Preparations for Review of the Desal DEIR Scheduled for Release in April 2015. Cullem
Chair Cullem introduced the item indicating the purpose was to discuss the impacts of the
schedule change made by the CPUC. He spoke to the revisions made as a result of delays with
regard to legal action, or extension requests. Mr. Cullem outlined the changes and the impacts
and posed the question to the TAC asking what action or preparations should be taken, if any
prior to the release of the DEIR.
The TAC discussed options including requesting consideration of mitigation measures in
advance, requesting an updated cost estimate from Cal Am, focusing on contingency plans if
the slant wells are unsuccessful, and focus on the amended CDO proposal.
Chair Cullem questioned if the TAC would support contracting with a consultant or schedule
special meetings to walk through the EIR to provide suggestions and input to the Directors on
the DEIR. The TAC discussed the possibility to review the DEIR versus contracting a
professional and it is an important enough topic to contract a professional and expend funds to
review the document. Chair Cullem agreed to research qualified firms to review and be
objective, and bring back to the TAC pricing and proposals within two months to which the TAC
agreed.
Mr. Cullem reported that in the next several months, he intends to agendize all three of the
desal projects to make presentations to the public and to provide status updates.
Member Riedl requested consideration to peer review the EIR for the PWN/GWR project. Chair
Cullem agreed to identify consultants to peer review both projects.

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Monday, March 2, 2015

Chair Cullem invited public comment on the item.

Tom Rowley expressed concern that events are moving at a faster pace and waiting two
months to bring a consultant on board is too long. He suggested having the Authority
consider approval of a contract at the March 12 Director meeting.

On a motion by Member Riedl, seconded by Member Narigi and carried by the following vote,
the MPRWA Technical Advisory Committee recommended that the Directors authorize the
Executive Director identify and contract with a consultant to conduct a peer review of the DEIR
and provide comments and suggestions to the Authority.
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:

5.

7
0
0
0
0

MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:

Cullem, Huss, Israel, Narigi, Riedl, Riley, Stoldt.

None
None
None
None

Receive and Discuss the Current "Detailed" MPWSP Critical Path Schedule for Permits &
Approvals - Crooks
Chair Cullem briefly spoke on a concern expressed during a Monterey City Council meeting
that the construction schedule of the pipeline extends through the entire project period which
would seem to be a critical path item. He indicated he would pose the question to Cal Am
asking if anything can be done to truncate the timeline for the pipeline construction, such as
obtaining permits sooner.
Chair Cullem invited the public to bring forth issues they have concerns about.

Tom Rowley expressed thanks to be moving away from generalities into specifics.

6 Discussion of possible ways the Authority can participate in the discussion regarding the Cease
. and Desist Order extension request
Member Narigi expressed a list of 18 concerns regarding the proposal and requested the TAC
review this item in detail and bring back to their respective organizations.
Member Riley said it was the wrong direction to use rationing as leverage with the State as
residents are already performing conservation of water and suggested negotiation regarding
the level of fines, not levels of water. He disagreed that negotiations be based on Cal Am's
performance or water production.
Mr. Narigi agreed with regard to the fine and since the fine is undefined it's difficult to analyze.
He questioned if any other legal rights are waived by the agreement and then requested
clarification on the process for requesting this extension.
Chair Cullem spoke to the Authority not being party to the agreement but is assisting to define
the agreement, is trying to mediate as well as make it a transparent process. Cal Am is the
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Monday, March 2, 2015

proposer and will sign the agreement.

Chair Cullem invited public comment and had no requests to speak.

ADJOURNMENT
Having no further business, the meeting was adjourned.

Respectfully Submitted,

Approved,

Lesley E. Milton-Rerig, Committee Clerk

Executive Director/Chair Jim Cullem