M I N U TE S MONTEREY PENINSULA REGIONAL WATER AUTHORITY TECHNICAL ADVISORY COMMITTEE (TAC) Regular Meeting 10:30 AM, Monday, February

3, 2014 COUNCIL CHAMBER 580 PACIFIC STREET MONTEREY, CALIFORNIA Members Present Members Absent: Staff Present: CALL TO ORDER TAC Member Stoldt called the meeting was called to order at 10:35.a.m. ROLL CALL PLEDGE OF ALLEGIANCE Chair Burnett arrived. REPORTS FROM TAC MEMBERS There were no reports from TAC Members PUBLIC COMMENTS Dale Heikhaus spoke to the schedule for the Ground Water Replenishment project, and requested a timeline be distributed for the Monterey Peninsula Water Supply project as well. Tom Rowley requested that the Authority Directors and TAC Members compliment the community on past and on going conservation efforts. David Lifland spoke to money spent to study Los Padres Dam and questioned when the Tenera Environmental report for the Deep Water Desal project would be available. Member Narigi arrived at 10:39 a.m. APPROVAL OF MINUTES 1. January 6, 2014 Minutes were not included in the packet but were provided for the TAC and the public at the meeting. On a motion by Committee Member Stoldt seconded by Committee Member Israel and carried by the following vote, the MPRWA Technical Advisory Committee approved the minutes of January 6, 2014: Huss, Israel, Narigi, Riedl, Riley, Stoldt, Burnett None Executive Director, Legal Counsel, Clerk

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Monday, February 3, 2014

AYES: NOES: ABSENT: ABSTAIN: RECUSED:

8 0 0 0 0

MEMBERS: MEMBERS: MEMBERS: MEMBERS: MEMBERS:

Huss, Israel, Narigi, Riedl, Riley, Stoldt, Burnett None None Huss, Riley None

AGENDA ITEMS 2. Receive Report, Discuss and Provide Direction on the Ground Water Replenishment (GWR) Schedule, Response to Business Coalition Questions, and Product Water Negotiations Member Israel gave the presentation speaking to the current project progress, schedule and the status of source water negotiations. Member Huss reported that with current drought conditions, source water negotiations will become more challenging. He then provided an update from the agricultural community, responding to the questions posed by the Business Coalition. He noted that having a decision regarding ownership in the next few months is unlikely. Legal Counsel Freeman spoke to meetings with involved attorneys who anticipate an agreement on source water should be achieved as early as three to for weeks but could be June at the latest. The TAC discussed the arbitration process and the necessary quantities of source water needed and expressed concern there is not enough to supply the peninsula in the summer months. The TAC also discussed all of the water sources under discussion and the possible claims to water rights for each. The quantity of waters are known, the rights to uses are what is being negotiated. Chair Burnett invited public comment on this item.

Tom Rowley expressed concern that the source water issue has not been resolved and can potentially delay or destroy the project. Dale Heikhaus urged the Directors to present a plan of action to earn creditability. David Lifland requested clarification about the Water Resources Control Agency 2009 basin report.

Member Riley left the meeting at 11:23 a.m. Member Narigi requested Cal Am and the Monterey Regional Water Pollution control Agency to provide a range of estimates of costs to the end user for this project. Chair Burnett requested to agendize a status update for the results or status of the negotiation at the March 3, 2014 meeting. Member Riedl requested to agendize a discussion regarding the externalities. Dave Stoldt indicated that the Monterey Peninsula Water Management District is commissioning a consultant to address this issue and once received, it will be circulated to the TAC for review and comment.

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MPRWA Minutes 3.

Monday, February 3, 2014

Receive Report, Discuss and Provide Direction on the Cost Comparison Between the Ground Water Replenishment Project and the Monterey Peninsula Water Supply Desalination Project. Chair Burnett introduced the item an listed the purpose to develop a framework for a cost comparison to determine if the costs are comparable or prohibitive. He noted Cal Am was not able to provide the comparable details due to permitting priorities. Member Stoldt spoke to the elements necessary to compare adequate elements. He expressed concern that brine discharge has not been addressed thoroughly and potentially may not be able to be discharged without additional help and that the issue needs to be resolved before a true comparison can be done. Member Israel indicated that the best capital costs and recovery estimates for the GWR project will be available when the source water agreements are finalized. The TAC discussed the potential future funding including grants and the state water bond ballot measure which could bring down the costs of the projects. The TAC discussed the different elements that affect costs including operations and maintenance, energy and other contributions. Chair Burnett invited public comments. David Lifland questioned Member Stoldts comment that the GWR project could be used for brine disposal considering the quality of the water and seems a high cost to pay. He also requested consideration of alternative energy ideas to generate more power instead of purchasing from another agency, or development of a municipal power district. Mike McCall from PCA clarified how the GWR process would assist with brine discharge. Member Riedl questioned if municipal power districts should be explored as an option to which Executive Director Cullem spoke to the current plan to purchase over the fence power which does not require a MPD, which is the best price and most reliable power source. Member Stoldt indicated that the Deep Water Desal project is planning to start a MPD. Chair Burnett spoke to efforts exploring a community choice aggregation.

4.

Receive Report, Discuss and Provide Direction on Status of Construction Permits for the Monterey Peninsula Water Supply Project Test Slant Well, Bore Holes, and Hydrogeological Analysis

No Cal Am representative was in attendance, Chair Burnett spoke to the item giving an update on the status of the project and the recent permitting challenges with the City of Marina. He
spoke to the upcoming Planning Commission meeting to request interpretation of their municipal code that allows for an exploratory assessment of mineral content of water without needing to go through a coastal development permit. The results are necessary to understand the impacts to the Salinas Valley aquifer. He emphasized that if the request is denied, the project would be delayed up to a year and the peninsula will face the cease and desist order.

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MPRWA Minutes Chair Burnett invited public comments on the item.

Monday, February 3, 2014

Tom Rowley thanked the Authority for becoming involved to move the project forward. Dale Heikhaus requested exploring which aspects of CEQA could be expedited. David Lifland requested an update about when slant wells will be permitted.

Burnett responded to questions posed during public comment. He noted that the earliest that the construction can begin is in November 2014 as it stands with the permitting schedule. 5. Receive and Discuss a Brine Disposal Report Prepared for the Authority by Interns from the Monterey Institute of International Studies (Information Only) This item is for information only. Chair Burnett invited public comments on the item. Tom Rowley thought it was an interesting report and thought it was lacking on information about the waste lands created by brine disposal.

Executive Director Cullem spoke to the direction of the report to be introductory rather than in depth. The report was received. ADJOURNMENT

ATTEST:

Lesley Milton, Committee Clerk

Jason Burnett, TAC Chair

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