M I N U TE S

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)

Director's Meeting
7:00 PM, Thursday, March 8, 2018
COUNCIL CHAMBERS
580 PACIFIC STREET, MONTEREY
MONTEREY, CALIFORNIA

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

Staff Present: Executive Director Cullem, Legal Counsel Freeman, Clerk Romero

CALL TO ORDER

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

ROLL CALL

All Directors present.

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

Executive Director Cullem said he would like to meet with each Director’s City Council to give
an update on the status of the water supply project.

PUBLIC COMMENTS
• Tom Rowley, Monterey Peninsula Taxpayers Association (MPTA), said that the news
article by Jim Johnson was very misleading about the Authority’s position and
suggested that the Authority make a statement or press release to clarify the false
information in the media.

• Michael Baer, resident, presented a picture of California American Water’s (Cal Am)
depictions of the Monterey Peninsula Water Supply Project (MPWSP) slant wells from
the Monterey Bay National Marine Sanctuary (MBNMS) Draft Environmental Impact
Report (DEIR), June 2014, versus the picture of the slant well as depicted in the DEIR,
March 2017, and showed the differences.

PUBLIC COMMENT:

None

On a motion by Director Rubio seconded by Director Carbone, and carried by the following
vote, the Monterey Peninsula Regional Water Authority Approved the Consent Agenda:

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

NOES: 0 DIRECTORS: None
ABSENT: 0 DIRECTORS: None
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None
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1. Approve Minutes from September 18, 2017

Action: Approved

2. Approve Minutes from December 14, 2017

Action: Approved

3. Approve Minutes from January 11, 2018

Action: Approved

4. Approve Minutes from February 15, 2018

Action: Approved

5. Approve and File Authority Checks Through February 28, 2018

Action: Approved

6. Receive Report and Adopt Resolution 2018-01 Approving a Conflict of Interest Code for the
Water Authority
Action: Received report, Adopted Resolution 2018-01

7. Receive an Update on the Summary Project Schedule for the Monterey Peninsula Water
Supply Project, Status of Test Well Operation and Pipeline Construction
Action: Received update

***End of Consent Agenda***

PUBLIC COMMENT ON CLOSED SESSION:

• Michael Baer said he hopes that after the closed session the public will know the
Authority’s stance on the MPWSP.

• Tom Rowley, MPTA, said that there was a hearing on the water supply charge which is
affecting all residents and property taxes, particularly the 8.2% user fee.

***Adjourn to Closed Session***

Adjourned to closed session at 7:15 pm.

8. Pursuant to Government Code 54956.9. Conference with Legal Counsel – Existing Litigation:
In the Matter of the Application of California-American Water Company (U210W) for Approval
of the Monterey Peninsula Water Supply Project and Authorization to Recover All Present and
Future Costs in Rates, California Public Utilities Commission No. A.12-04-019
Action: Received update on the status of negotiations, will receive direction for Staff
under item #9

Adjourned to open session at 8:30 pm.

Don Freeman announced that the Directors received an update regarding existing litigation
during closed session and will receive direction from Special Legal Counsel under item #9.

Monterey Peninsula Regional Water Authority

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AGENDA ITEMS

9. Receive Report on the Joint Case Management Statement Submitted to the CPUC and on the
Case Management Conference, and Provide Staff Direction on Supporting a CDO Modification
Incorporating a Potential Pure Water Monterey Expansion
Action: Received report; discussed; Approved support of a CDO modification
incorporating a potential Pure Water Monterey expansion and affirmed the Authority’s
position to have the CPCN issued between June and September 2018 as planned

Executive Director Cullem said there is a petition to request that the State Water Resources
Control Board (SWRCB) add to the milestones which would allow an expansion of Pure Water
Monterey (PWM). Staff’s position is that this expansion opens the possibility if there is a delay
in the desal plant start date, there would be water available to get out from under the Cease
and Desist Order (CDO). He explained that the Authority should decide if they support the
expansion of PWM and want to co-apply for the expansion, which is Staff’s recommendation.
The other option would be to not take any action, or comment after the petition is submitted. He
also clarified for the public that there is a willingness to delay the CPCN for the MPWSP under
the condition that the CDO is modified as proposed, to determine the feasibility of public
ownership of the water company and to negotiate an agreement between the settling parties,
and in no way implies that the Authority does not wish to move forward with the desal project.

PUBLIC COMMENT:

• Tom Rowley, MPTA, said that PWM hasn’t given an update on the project or given the
true cost, and it has been understated by the MPWMD.

• Fred Meuer suggested that the Authority’s position be very clear and that there is no
delay in getting water to the consumers. He said there should be a very clear “drop
dead” date for the SWRCB to act. He said both projects should be done to the
maximum extent that they can, any potential of water the portfolio should be pursued.

Director Edelen agreed with Mr. Meuer’s comments and said that the SWRCB needs to see
that the Authority is pursuing all options. Director Rubio said that there is a specific timeline in
the petition for deadlines that must be met, such as the CPCN and the CDO deadlines.

On a motion by Director Rubio, seconded by Director Carbone, and carried by the following
vote, the Monterey Peninsula Regional Water Authority Approved Supporting a CDO
Modification Incorporating a Potential Pure Water Monterey Expansion:

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

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

Monterey Peninsula Regional Water Authority

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Don Freeman asked for the Directors to affirm that they want the CPCN to be issued in the
timeframe of June and September 2018.

Motion by Rubio, seconded by Edelen, affirmed the Authority’s position to have the CPCN
issued in 2018, between June and September as planned:

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

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

Don Freeman asked the Directors to affirm that in the event the SWRCB accepts the
modifications to the milestones to allow for the expansion of PWM, the Authority would consider
at a future meeting date, the timing of the issuance of the CPCN, contingent on significant
progress being made towards a settling party agreement.

Director Roberson asked to clarify how “significant progress” would be measured on a

settlement agreement. Director Rubio said the Authority would re-evaluate the progress at a
later date. Director Roberson suggested holding off on making a motion on this issue for now.

No further discussion on this item, no further motions on the CPCN issuance were made.

10. Receive Report, Discuss, and Provide Staff Direction on Authority Work Plan for the Balance of
FY 2017-2018 and for FY 2018-2019
Action: Continued

PUBLIC COMMENT:

• Tom Rowley, MPTA, said that the main priority of the Authority Work Plan is still
securing a water supply. He said that the cost of water and the lack of water for housing
should be part of the Authority’s discussion.

ADJOURNMENT

Meeting adjourned at 8:55 pm.

ATTEST:

Nova Romero, Clerk of the Authority MPRWA President

Monterey Peninsula Regional Water Authority

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