Mprwa Regular Meeting Agenda Packet 10-25-12

Agenda
Monterey Peninsula Regional Water Authority (MPRWA)

Regular Meeting

7:00 PM, Thursday, October 25, 2012
Council Chamber
Few Memorial Hall of Records
Monterey, California

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

1. Reports from Technical Advisory Committee

2. Reports from Authority Directors

PUBLIC COMMENTS
PUBLIC COMMENTS allows you, the public, to speak for a maximum of three minutes on any
subject which is within the jurisdiction of the MPRWA and which is not on the agenda. Any person
or group desiring to bring an item to the attention of the Authority may do so by addressing the
Authority during Public Comments or by addressing a letter of explanation to: MPRWA, Attn:
Monterey City Clerk, 580 Pacific St, Monterey, CA 93940. The appropriate staff person will contact
the sender concerning the details.

APPROVAL OF MINUTES

3. September 27, 2012

AGENDA ITEMS

4. Consider Submission of a Letter to the Monterey Peninsula Water Pollution Control
Agency Supporting the Proposed Ground Water Replenishment Budget

5. Review and Approve MPRWA Letterhead Format and MPRWA Seal for Use on Authority
Correspondence and for Attesting Authority Records

6. Letters Sent to California Public Utilities Commission (Information Only)

a. October 1, 2012

b. October 24, 2012

ADJOURNMENT

Thursday, October 25, 2012
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The Monterey Peninsula Regional Water Authority is committed to include the disabled in all of
its services, programs and activities. For disabled access, dial 711 to use the California Relay
Service (CRS) to speak to staff at the Monterey City Clerks Office, the Principal Office of the
Authority. CRS offers free text-to-speech, speech-to-speech, and Spanish-language services
24 hours a day, 7 days a week. If you require a hearing amplification device to attend a
meeting, dial 711 to use CRS to talk to staff at the Monterey City Clerks Office at
(831) 646-3935 to coordinate use of a device or for information on an agenda.

Agenda related writings or documents provided to the MPRWA are available for public
inspection during the meeting or may be requested from the Monterey City Clerks Office at 580
Pacific St, Room 6, Monterey, CA 93940. This agenda is posted in compliance with California
Government Code Section 54954.2(a) or Section 54956.

MI NUTES
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
Regular Meeting
6:00 PM, Thursday, September 27, 2012
FEW MEMORIAL HALL
CITY COUNCIL CHAMBER
580 PACIFIC STREET
MONTEREY, CALIFORNIA

Directors Present: Bachofner, Burnett, Edelen, Garcia, Pendergrass, Potter, Della Sala
Directors Absent: None

Staff Present: Monterey City Manager Meurer, Legal Counsel Davi, Legal Counsel
Freeman, Clerk to the Authority Milton

ROLL CALL

President Della Sala called the meeting to order at 6:06 p.m.

PLEDGE OF ALLEGIANCE

OTHER BUSINESS

1. Accept Monterey County as Participatory Member of the Monterey Peninsula Regional Water
Authority and Authorize Amendment to Bylaws
Action: Approved (5-0-1; Garcia absent)

Legal Counsel Davi presented the agenda report, noting on August 1, 2012 the MPRWA sent a
letter to the County of Monterey inviting participation in the JPA that the County Board of
Supervisors unanimously voted on September 11, 2012 to join the JPA and appointed
Supervisor Dave Potter as their representative. She added that the County approved a
payment of $83,300 for Fiscal Year 2012/13 and requested that a pro ration share of $5,561.61
be waived. President Della Sala opened public comments and having no requests to speak
closed public comment.

On a motion by Director Burnett, seconded by Vice President Bachofner, and carried by the
following vote, the Monterey Peninsula Regional Water Authority accepted Monterey County as
a participatory member of the Monterey Peninsula Regional Water Authority, authorized an
amendment to the bylaws, accepted the $83,300 cost share for FY 12/13 and waived the pro-
rated cost sharing amount of $5,561.61.
AYES: 5 DIRECTORS: Bachofner, Burnett, Edelen, Pendergrass, Della
Sala
NOES: 0 DIRECTORS: None
ABSENT: 1 DIRECTORS: Garcia
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

PUBLIC COMMENTS

President Della Sala requested public comments for items not on the agenda. Nelson Vega
expressed concerns on taxes that may be charged per parcel and not more fairly on how much
water was used. He stated it seems there is a lot of duplication of effort by multiple agencies
and multiple jurisdictions making decisions about water. President Della Sala spoke in support
MPRWA Meeting, 10/25/2012 , tem No. 3., tem Page 1, Packet Page 1
MPRWA Minutes Thursday, September 27, 2012

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of TAC Chair Stoldts efforts. He reconfirmed the purpose of MPRWA and confirmed that there
may not always be a need for both agencies to exist. Director Edelen responded to Mr. Vegas
comments, clarifying that the MPRWA does not have jurisdiction over all water related issues,
only those under its mission and purview. Having no further comments to speak, President
Della Sala closed public comments.

REPORTS FROM MPRWA DIRECTORS AND STAFF

Director Burnett reported that the Monterey Peninsula Water Management District (MPWMD)
also addressed the topic of governance as did the MPRWA, noting that MPWMD wants public
ownership at least in part and advocates for their inclusion in its governance. Director Burnett
noted that this resulted in two letters submitted to the CPUC, one from MPWMD and one from
MPRWA. He closed stating the Monterey County Board of Supervisors scheduled a special
meeting September 28th, 2012 to review the question of governance.
Director Pendergrass reported that the Monterey Regional Water Pollution Control Agency
(MRWPCA) voted 11 to 9 against the ground water replenishment budget. Director Burnett
requested a breakdown of the jurisdictions voting against the motion in order to discuss the
dissention and stated his meetings with local agricultural representatives to understand their
water rights concerns were amicable, adding there is another negotiating session with farmers
coming up. Director Pendergrass indicated the dissenting jurisdictions were the Cities of
Salinas, Marina Coast, Pacific Grove and the Moss Landing Harbor District. Vice President
Bachofner discussed the impacted scenarios by the vote and stressed that timing was an issue.
Director Garcia arrived at the meeting at 6:26 p.m. and stated for the record that she supported
the joining of Monterey County to the MPRWA. Director Potter arrived at 6:27 p.m. and was
welcomed by the board.

2. Receive Report from Technical Advisory Committee (TAC)

a. Summary of September 17, 2012 Technical Advisory Committee Meeting
Action: Report Received
TAC Chair Stoldt provided an update on the TAC September 18, 2012 meeting regarding
Consultant Chris Helms presentation about environmental and permitting issues. Mr. Helm
provided preliminary observations of the three targeted desalination proposals, noting the scope
was adjusted to reflect compliance activities.
b. Review of Consultant Schedule and Progress
Action: Report Received and Discussed

TAC Chair Stoldt indicated that responses to the SPI Consultants inquiries from the desalination
proposals were slower than anticipated and a final report should be available on or
before October 31, 2012. He noted one invoice for consulting services was received to date and
forwarded on to the finance officer for payment.
President Della Sala opened public comment. George Riley expressed concern that there has
not been enough discussion regarding project costs, funding available and public financing
opportunities. He requested MPRWA agendize a discussion of costs. Tom Rowley concurred
with Mr. Rileys concerns about "stranded costs and expressed concern it will end up with the
ratepayers. He asked that the MPRWA be concerned about the impact of cost on ratepayers. In
regards to Mr. Rileys comments Mr Vega disagreed that money should not be a consideration at
this point because it could result with an inadequate project. Instead, he said they should find the

3
right project parameters, then discuss cost. TAC Chair Stoldt announced CPUC workshops on
costs and cost impacts have been set for Dec 11, 12 & 13, 2012. Director Burnett requested the
discussion of costs to be taken up by MPRWA at a later date. Having no further requests to
speak on Item #2, President Della Sala closed public comment.
APPROVAL OF MINUTES

3. August 1, 2012
Action: Approved (5-0-2 Burnett, Potter abstain)

4. September 12, 2012 Special Meeting
Action: Approved (6-0-1 Potter abstain)

On a motion by Director Burnett and Seconded by Director Garcia the Monterey Peninsula
Regional Water Authority approved the minutes from the meetings of August 1, 2012 and
September 12, 2012 by the following vote:
AYES: 5 DIRECTORS: Bachofner, Edelen, Garcia, Pendergrass, Della Sala
ABSENT: 0 DIRECTORS: None
ABSTAIN: 2 DIRECTORS: Burnett, Potter

AGENDA ITEMS

5. Direct the Selection of Legal Counsel and Authorize the President to Execute a Professional
Services Contract with the Selected Firm/Attorney
Action: Discussed and Approved (7-0-0)

Legal Counsel Davi presented the agenda report, stating the City of Monterey released a
Request for Qualifications for legal counsel on August 10, 2012 and that 21 proposals were
received. She stated MPRWA appointed members to an Ad Hoc committee, which reviewed
the proposals and recommended four firms be presented to the MPRWA, based on specific
criteria.

President Della Sala opened the item for public comments. Anthony Candotti, principal attorney
at Condotti & Kovacevich responded to Vice President Bachofners concerns about costs
associated with travel time to and from Santa Cruz indicating their proposal reflected a reduced
rate for travel. Don Freeman spoke in support of his submission and gave qualifications for
consideration of his firm, Perry and Freeman. Jason Redder, a partner at L+G, LLP, responded
to questions about rates of principals verses associate attorneys and indicated that in the
submitted proposal rates are reflective of experience. Richard Glenn from the Thompson Law
office advocated that his office is the closest generating no mileage costs and said that he has
a paralegal rate and other flexible, negotiable costs. He gave examples of substantial
experience in public agency work and water supply issues. Having no further requests to speak
President Della Sala closed public comment on this item.

Director Pendergrass said he prefers a firm who has familiarity with the MPRWA, the process
and the players, and therefore, recommended Perry and Freeman. Director Edelen concurred
and thanked the four firms represented at the meeting, stating they were all well qualified and
very professional. Vice President Bachofner said he prefers to give business to the most local
firm because it will have a net positive impact on the peninsula.


4
Director Burnett moved and Director Pendergrass seconded the motion for the Monterey
Peninsula Regional Water Authority to accept the firm of Perry and Freeman and the option of
a flat monthly fee of $2,500.
President Della Sala invited discussion on the motion. Director Garcia questioned the specifics
of the Perry and Freeman proposal. On question, Mr. Freeman explained the fee schedule
presented in the proposal and said his firm rarely charges the extraordinary fees unless they
are required to attend litigation.

Director Potter expressed concerned that Mr. Freeman serves at the pleasure of too many of
the local jurisdictions and there would be a concern with an element of influence which should
be subject to consideration of the board. He stated if the issue of conflict came up it would be
unreasonable to have to continuously retain outside counsel in times of conflict. Mr. Freeman
responded that he would be required to bring a letter to each of the jurisdictions for which he
participates to deal with any conflicts of interest. Mr. Freeman noted if there was a conflict, he
would suggest that MPRWA retain separate legal counsel. Vice President Bachofner spoke in
support of the Thompson Law firm citing no conflict of interest and previous positive
experiences. Director Garcia spoke in support of positive past experiences with Perry and
Freeman.

The motioner clarified his motion to state the following: the MPRWA Board approves the
selection of Perry and Freeman for legal counsel with the understanding any extraordinary
costs would be additional to the $2,500 flat fee and there would be a 90 day review period of
the contract and authorized the President to execute a professional services contract with the
selected firm Perry and Freeman. And the seconded agreed to the change and the motion was
carried by the following vote:
AYES: 7 DIRECTORS: Bachofner, Burnett, Edelen, Garcia, Pendergrass,
Potter, Della Sala

Legal Counsel Davi accepted responsibility to review the legal services contract prior to its
execution.

6. Review the Necessity/Desirability of Executive Director
Action: Discussed and Approved Necessity of Hiring Executive Director

Monterey City Manager Meurer introduced this item and reported that all six participating
agencies have formally requested the authority hire a dedicated Executive Director due to the
time constraints of current City Managers and the attention needed to efficiently coordinate the
efforts of the MPRWA.

President Della Sala opened public comment. Tom Rowley said the Board was very lucky to
have John Dunns involvement, but that the sooner the Executive Director is appointed the
more efficient the MPRWA can function. Having no further requests to speak, President Della
Sala closed public comment.

On a motion by Director Garcia and seconded by Director Burnett and carried by the following

5
vote, the MPRWA Board approved the necessity of hiring an Executive Director.
AYES: 7 DIRECTORS: Bachofner, Burnett, Edelen, Garcia, Pendergrass
Potter, Della Sala

7. Discuss Agenda Items for Future Meetings
Action: Discussed

President Della Sala introduced this item requesting additional agenda topics for future
meetings. Director Burnett requested that a discussion over the surcharge take place at a future
date due to the fact the issue may come before MPRWA prior to the completion of the SPI
Consulting report. President Della Opened public comment on this item and seeing no requests
to speak closed public comment.

8. Information
Action: Discussed

President Della Sala indicated that there are previous commitments in the Monterey Council
Chamber at 6:00 p.m. through the end of 2012. Meetings for the remainder of 2012 will begin at
7:00 p.m. Having no further business to conduct before the MPRWA, President Della
Sala adjourned the meeting to Closed Session at 7:38 p.m.

***Adjourn to Closed Session***

ANNOUNCEMENTS FROM CLOSED SESSION

Legal Council Don Freeman announced that the Board gave confidential direction to staff
regarding the Closed Session item: Conference with Labor Negotiators Pursuant to
Government Code Section 54957.6 Agency Negotiators: Fred Meurer - Unrepresented
Employee: Executive Director

ADJOURNMENT

ATTEST:

Lesley Milton, Clerk to the Authority Chuck Della Sala, MPRWA President


Monterey Peninsula Regional Water Authority
Agenda Report

Date: October 25, 2012
Item No: 4.

08/12
FROM: Fred Meurer, Interim Executive Director of Monterey Peninsula Regional Water
Authority JPA

SUBJECT: Authorize the President to Sign the Attached Letter to MRWPCA Regarding
Ground Water Augmentation

RECOMMENDATION:
That the MPRWA receive public comment and authorize President Della Sala to sign the
attached letter.

POLICY IMPLICATIONS:
This recommendation is consistent with the Authoritys past position that the Aquifer
Augmentation project being developed by MRWPCA is a critical component of the portfolio of
projects needed to meet the Peninsula water needs.

FISCAL IMPLICATIONS:
None

ALTERNATIVES CONSIDERED:
None

DISCUSSION:
In recent meetings of the MRWPCA there have been discussions of the Groundwater
Augmentation Project that have led to split votes and calls for weighted votes. There
are concerns on the part of some members of MRWPCA regarding the appropriateness
of MRWPCA participating in the Groundwater Augmentation Project and the availability
of feed water for that project. The attached letter is sent to reinforce the JPAs previous
position stating their encouragement of MRWPCA to continue the Groundwater
Augmentation Project through planning and construction.

Attachments: Letter to MRWPCA


October 22, 2012

Monterey Regional Water Pollution Control Agency
Ron Stefani, Chair
5 Harris Court, Bldg. D
Monterey, CA 93940-5756

RE: Approval of Letter to MRWPCA Encouraging Forward Movement on the Ground Water
Augmentation Project
Dear Chair Stefani,
This letter is written on behalf of the members of the Water JPA to renew and re-emphasize our
support for MRWPCA continuing to move forward with the groundwater augmentation project.
The groundwater augmentation project is a critical part of the portfolio of projects that we feel
are essential to meet the long term water needs of the Peninsula. We very much appreciate all
the work that has been done by MRWPCA to date and look forward to the continuance of
project planning and ultimate execution of the project.

We certainly understand that your JPA membership and constituency is not totally congruent
with ours and at times members of your agency may have concerns about the augmentation
project moving forward. We look at the augmentation project and support from your agency not
unlike many of us as members of your agency viewed MRWPCAs original role in helping deal
with salt water that led to the Salinas Valley project where our recycled sewage is being used to
irrigate crops in Northern Monterey County. We know that the ultimate configuration of the
project will need to deal with the interests of all and we believe that an integration of interests is
achievable. We encourage you and your Board to continue budgeting and planning for the
groundwater augmentation project.

Thank you in advance for your assistance.

Regards,

Chuck Della Sala
JPA President

c: Keith Israel

Agenda Report

Item No: 5.

08/12
FROM: Catherine Raynor, City of Monterey, Senior Assistant City Clerk

SUBJECT: Review and Approve MPRWA Letterhead Format and MPRWA Seal for Use on
Authority Correspondence and for Attesting Authority Records

RECOMMENDATION:
Authority reviews and approves the attached resolution approving the format of the letterhead
design and logo included as Exhibits A and B to the draft resolution.

POLICY IMPLICATIONS:
MPRWA Bylaws Section 2.2.2 states that actions by the MPRWA, including resolutions and
minutes, shall be in written format. It also states that once Authority documents are executed
they must be signed by the President and attested. At this time there is no officially adopted
letterhead and an attest seal has not been purchased for the Authority.
FISCAL IMPLICATIONS:
The fiscal implications are minimal. A special order imprint seal that includes the graphic shown
in Exhibit B are under $300 (three hundred dollars). Letterhead has no fiscal implications as the
intent is to use the letterhead as a Word template print documents directly to the printer using
this template as each Authority document is finalized and signed by the President.
ALTERNATIVES CONSIDERED:
None.

DISCUSSION:
This office created the logo and letterhead displayed in Exhibits A and B. The logo is quite
simple, yet it reflects the composition of the Authority. The advantage of a fairly simple logo is
that it can easily be turned into an attest seal used on Authority documents. The Authority could
decide to use another logo or letterhead format, but funds are not available to hire a contractor
to create a logo or letterhead. It is recommended that the Authority approve the letterhead and
logo formats in order to use these as soon as possible on Authority records and
correspondence.

Attachments: 1. Resolution
2. Resolution Exhibit A Letterhead draft
3. Resolution Exhibit B Logo draft


MPRWA RESOLUTION NO. __- ___

Item No: 5.
A RESOLUTION OF THE MONTEREY PENINSULA
REGIONAL WATER AUTHORITY

08/12
REVIEW AND APPROVE MPRWA LETTERHEAD FORMAT AND MPRWA SEAL FOR USE
ON AUTHORITY CORRESPONDENCE AND FOR ATTESTING AUTHORITY RECORDS

WHEREAS, the Monterey Peninsula Regional Water Authority does not have an official
letterhead format at this time; and

WHEREAS, the Monterey Peninsula Regional Water Authority does not have an attest
seal for attesting the signature of the President on Authority records at this time; and

WHEREAS, the Monterey Peninsula Regional Water Authority requires both an official
letterhead format and seal for use on official correspondence and Authority records;

NOW, THEREFORE, BE IT RESOLVED BY THE MONTEREY PENINSULA REGIONAL
WATER AUTHORITY that it hereby authorizes the letterhead format as included in Exhibit A of
this resolution and the Seal as included in Exhibit B as the official letterhead of the Authority

PASSED AND ADOPTED BY THE MONTEREY PENINSULA REGIONAL WATER
AUTHORITY _____ day of _______, 201_, by the following vote:

AYES: DIRECTORS:
NOES: DIRECTORS:
ABSENT: DIRECTORS:
ABSTAIN: DIRECTORS:
APPROVED:

ATTEST:

President

Clerk to the Authority


580 PACIFIC ST, ROOM 6 MONTEREY CALIFORNIA 93940 www.mprwa.org

MONTEREY PENINSULA REGIONAL WATER AUTHORITY

Directors:
Chuck Della Sala, President
Felix Bachofner, Vice President
Carmelita Garcia, Secretary
Jerry Edelen, Treasurer
Jason Burnett
David Potter
David Pendergrass

Executive Director:
John Dunn (Interim)

MPRWA Meeting, 10/25/2012 , tem No. a., tem Page 1, Packet Page 13
Agenda Report

Item No: b.

06/12
FROM: Monterey City Clerks Office

SUBJECT: October 24, 2012 Letter Sent to California Public Utilities Commission
(Information Only)

DISCUSSION:
A copy of the letter will be distributed at the meeting.

MPRWA Meeting, 10/25/2012 , tem No. b., tem Page 1, Packet Page 19

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