M I N U TE S

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)

Director's Meeting
7:00 PM, Thursday, February 9, 2017
COUNCIL CHAMBERS
580 PACIFIC STREET, MONTEREY
MONTEREY, CALIFORNIA

Directors Present: Director Dallas, Director Edelen, Director Pendergrass, Director Roberson,
Director Rubio, President Kampe
Directors Absent: None

Staff Present: Legal Counsel Damon, Legal Counsel Freeman (by telephone), Executive
Director Cullem, Clerk Romero
CALL TO ORDER

President Kampe called the meeting to order at 7:02pm.

ROLL CALL
Clerk Romero called the roll, all Directors were present.

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

Executive Director Cullem stated that a corrected letter to State Water Resources Control
Board (SWRCB) as an attachment to Item #3 was given to the Directors. He thanked Sheri
Damon for filling in for Don Freeman, and noted that Mr. Freeman is available on
speakerphone.

PUBLIC COMMENTS
George Riley said he thinks the Authority should consider its meeting schedule because
the Environmental Impact Report (EIR) for the water supply project will delay everything.
He also said that the Authority should think about a transition plan for the future.

Tom Rowley, Monterey Peninsula Taxpayers Association (MPTA), voiced concern

regarding Cemex stockpiling sand. He said that the Coastal Commission is pulling the
permit for stockpiling sand and this should be looked into since it affects coastal erosion
and the Peninsula water supply project.

CONSENT AGENDA
Director Roberson pulled item #3 from consent.

On a motion by Director Pendergrass, seconded by Director Edelen, and carried by the

following vote, the Monterey Peninsula Regional Water Authority Approved the Consent
Agenda item 1&2:

AYES: 6 DIRECTORS: Rubio, Edelen, Pendergrass, Kampe, Dallas, Roberson

NOES: 0 DIRECTORS: None
ABSENT: 0 DIRECTORS: None
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None
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1. Approve Minutes of January 12, 2017 - Romero

Action: Approved

2. Approve and File Authority Checks through January 31, 2017 Romero
Action: Approved

3. Receive Copy of Water Authority Executive Director Letter to the State Water Resources
Control Board Executive Director Concerning Local Control of Water Allocation Under Amended
CDO 2016-0060 - Cullem
Action: Received Report; discussed

Director Roberson asked if the State Water Resources Control Board (SWRCB) is expected to
make a decision regarding water allocation. Executive Director Cullem responded that he
expects that the SWRCB will either respond by agreeing with the Authoritys recommendation
to keep water allocation at the local level or the issue will go before the SWRCB for additional
review.

No action taken on this item, received report and discussed. The Authority skipped to item #5
regarding an update from the Peoples Moss Landing Desal Project.

***End of Consent Agenda***

AGENDA ITEMS

4. Receive Report, Discuss, and Provide Staff Direction on the Re-circulated DEIR/EIS for the
MPWSP and Authorize the Board President to Sign the Comment Letter on Behalf of the
Authority - Cullem
Action: Received report; discussed; authorized the President to sign a comment letter
on the EIR

President Kampe acknowledged Russ McGlothlin, Legal Counsel for the Authority, as well as
Gordon Thrupp, PhD, PG, CHG, and Al Preston, PhD, PE, from Geosyntec who called in on a
conference call to discuss Item #4.

Executive Director Cullem introduced the item saying that in 2015 the Authority sent a focused
review letter to the California Public Utilities Commission (CPUC) in response to the original
MPWSP EIR regarding greenhouse gas emissions, brine disposal, intake structures, and
potential growth with respect to land use. He stated that in 2015 the experts from Geosyntec
provided an analysis of the technical issues in the original EIR which were included in the 2015
response letter and were subsequently deliberated on by the CPUC. He added that the
Authority requested that the experts from Geosyntec do another review of the revised EIR, and
Al Preston and Gordon Thrupp are on the line to give a report on their findings. He said that the
Authority must then decide if they want to write another response letter to the CPUC with any
new findings, as well as approve the funding to cover the expense of composing the letter.

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Russ McGlothin said that the new draft EIR has addressed many of the issues brought up by
the Authority in the letter sent by previous President Burnett in 2015. He said that re-circulated
EIR has addressed many of the issues that were brought up to the CPUC from Geosyntecs
analysis from 2015. He introduced Mr. Preston and Mr. Thrupp who gave a summary of their
findings and recommendations.

Gordon Thrupp, Geosyntec, gave an outline and summary of the scope of work that was
reviewed:

Proposed subsurface seawater intakes (slant wells)

Overview of hydrogeologic setting and updated groundwater model of slant wells

Conclusions regarding intakes

Proposed brine discharge

Updated evaluation of brine discharge

Recommendations regarding brine discharge

Mr. Thrupp summarized that in the revised EIR the updated model provides improved
simulations of the pumping from the subsurface intakes. He added that the potential impact to
inland wells is not significant and the project pumping would decrease sea water intrusion to
inland aquifers. Further, he said that the contribution of inland fresh groundwater to the
proposed pumping beneath the coastal margin will be returned to the Salinas basin. He stated
that in conclusion there are no recommendations for additional model runs or revisions.

President Kampe said that Marina Coast is going to be using technology to image subsurface
structures, and Mr. Thrupp said this is called electrical resistivity tomography (ERT) and it is
also mentioned in the draft EIR. President Kampe said that since there is progress being made
in the water supply project this is not the time for the Authority to take a break.

Al Preston, Geosyntec, gave an outline and summary of the updated evaluation of the brine
discharge:

Near field dilution analysis of brine discharge has been strengthened and improved by
Philip Roberts

Updated results are in agreement with previous results by Flow Science, however the
temperature of the brine discharge was not updated

Estimate of regions with BMZ where 2.0 ppt salinity difference is exceeded

Mitigation strategies for insufficient dilution have been evaluated

Coanda attachment (that limits dilution) has been adequately analyzed

Plume merging (that limits dilution) has been adequately analyzed

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Shear and turbulence effects have been adequately analyzed

Dilution/salinity at edge of BMZ has been estimated by Philip Roberts

Analysis by Geosyntec (2015) to assess potential hypoxia has been referenced

Mr. Gordon summarized his recommendations regarding brine discharge saying that the
estimated temperatures of the brine discharge should be updated, because temperature affects
density, which effects mixing/dilution. He added that the EIR should also revise the analysis of
potential for hypoxia, as well as a few minor typos.

No questions from the board.

PUBLIC COMMENT

George Riley asked if Geosyntec has an expectation of what the impact their analysis
will have on the EIR once their comments are submitted.

President Kampe said that the expectation is that the comments from Geosyntec will prompt
the EIR to be further updated.

Russ McGlothlin said that his recommendation is for Mr. Thrupp, Mr. Preston, and himself to
draft EIR comments with recommendations from Geosyntec into a letter and submit it to the
CPUC. He recommended that the greenhouse gases and land use issue not be commented on
in the new letter.

Executive Director Cullem requested that the Authority approve an additional $3000 for the cost
of preparing a comment by Mr. McGlothlin, Mr. Thrupp, and Mr. Gordon. Mr. McGlothlin
suggested that President Kampe approve and sign the comment letter and submit to the CPUC
on behalf of the Authority. Mr. McGlothlin said that the comment period for the EIR ends
February 27, and the letter should be approved and submitted before that date as any
extension to the comment period is unknown.

On a motion by Director Rubio, seconded by Director Dallas, and carried by the following vote,
the Monterey Peninsula Regional Water Authority approved a budget adjustement of $3,000 for
Russ McGlothlin and Geosyntec to prepare a comment letter on the Re-circulated DEIR/EIS for
the MPWSP and authorized the Board President to sign the comment letter on behalf of the
Authority and submit to the CPUC:

AYES: 6 DIRECTORS: Rubio, Edelen, Pendergrass, Kampe, Dallas,

Roberson
NOES: 0 DIRECTORS: None
ABSENT: 0 DIRECTORS: None
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

5. Receive Update, Discuss, and Provide Staff Direction on the People's Moss Landing Desal
Project - Project Representatives
Action: Received update; discussed
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David Balch, People's Moss Landing Project (Peoples Project), gave a brief update on the
current status of the project. He stated they are meeting with the Sanctuary to come up with
schedule for completing the project EIR. He added that after the meetings take place there will
be a revised reimbursement agreement with the Moss Landing Harbor District and afterwards
he will be able to give another update and answer the six questions that the Authority had
asked the Peoples Project to address.

President Kampe asked who the public owners of the Peoples Project will be. Mr. Balch
responded that public ownership is still up for discussion but said there would probably be
owned through a Joint Power Authority (JPA).

PUBLIC COMMENT:

None

No action taken, received report.

6. Receive an Update on the Summary Project Schedule for the Monterey Peninsula Water
Supply Project (MPWSP) and Status of Test Well Operation and Pipeline Construction - Crooks
Action: Received update

Chris Cook, California American Water (Cal Am), gave a brief summary of the Monterey
Peninsula Water Supply Project (MPWSP) timeline. He said that construction on the desal is
estimated to being in 2018 and water delivery is expected in delivery in 2020. He added that
Cal Am is currently installing the 36" pipeline and is on track to finish the pipeline and ASR
before the end of 2017 and prior to when Ground Water Replenishment (GWR) comes online.
He stated that the permits are being coordinated with the finalization of the EIR. He announced
that the test wells are running well at 92-93%.

PUBLIC COMMENT

None

No action was taken, received report.

7. Receive Mid-year Budget Status Report, and Provide Staff Direction on the Preliminary
Projection on the FY 2017-2018 Budget - Cullem
Action: Received report; approved preliminary budget and will re-evaluate semiannually

PUBLIC COMMENT

None

Director Roberson voiced concern that the City of Monterey pays most of the Authority budget
and would like to have the County represented on the board and pay their fair share. He asked

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that the Authority consider a formal invitation to the 5th District County Supervisor to join the
board. President Kampe said that all Cities involved share the same financial concern and
added that Supervisor Adams has been formally invited to the join the JPA. He suggested that
perhaps the Cities and County be invoiced for their contribution on a semi-annual basis.

Director Rubio said that he realizes the Authority is winding down, but there is no water project
yet and they need to be ready when it is.

Director Edelen said that a lot of the Authoritys clout comes from political influence and
retaining credibility is a must. He suggested that it may help to cut back on the costs to lower
the contributions needed from the larger Cities such as Monterey and could go a long way to
earn the trust of the City Councils.

Due to a scheduled conference call, the Authority put the budget item on hold and continued
after Item #4. The Authority continued the budget item at 8:50pm.

Director Rubio said in regard to the budget estimate that the conference call with Mr. McGlothlin
proves that his knowledge on water subjects is very valuable. He proposed that the Authority
approve the preliminary budget estimate but to re-evaluate it in 6 months to see if its still
appropriate. Director Edelen voiced agreement with Rubio and added that in interest in keeping
the costs lower for the Cities that Mr. McGlothlin be involved only when legal issues are
presented and leave the engineering topics to the engineers such as Mr. Cullem. Director
Roberson agreed that Mr. McGlothlins expertise is needed only when it's a legal issue.
President Kampe said that it is likely that Mr. McGlothlins legal expertise will be needed
throughout the process of getting the water supply project approved. He added that his
preference would be to bill the Cities every 6 months instead of annually to reduce financial
impact and allow for the budget to be adjusted as necessary.

Don Freeman commented that the City of Seaside went through a very expensive EIR, and
legal counsel was important. He added that if the Authority can help tighten up the MPWSP EIR
to prevent legal challenges down the road it can save money, especially during this critical time.
President Kampe noted that Mr. McGlothlins expertise has heightened the credibility of the
Authority and brought people together.

On a motion by Director Edelen, seconded by Director Roberson, and carried by the following
vote, the Monterey Peninsula Regional Water Authority approved the proposed budget and will
revisit the budget on a semiannual basis and adjust semiannual billings accordingly:

AYES: 6 DIRECTORS: Rubio, Edelen, Pendergrass, Kampe, Dallas,

Roberson
NOES: 0 DIRECTORS: None
ABSENT: 0 DIRECTORS: None
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

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ADJOURNMENT

Meeting adjourned at 9:04pm.

ATTEST:

Nova Romero, Clerk of the Authority MPRWA President

Monterey Peninsula Regional Water Authority

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