M I N U TE S

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)

AND TECHNICAL ADVISORY COMMITTEE (TAC)
JOINT MEETING
7:00 PM, Thursday, August 11, 2016
COUNCIL CHAMBERS
580 PACIFIC STREET
MONTEREY, CALIFORNIA
Directors Present:

Director Dallas, Director Edelen, Director Pendergrass, Director Roberson,

Director Rubio, President Kampe

Directors Absent:

None

TAC Members Present:

Alternate Dick, Member Riedl, Member Riley, Member Sciuto, Member

Stoldt, Member VanDerMaaten, Executive Director Cullem

TAC Members Absent:

Member Huss, Member Narigi

Staff Present:

Legal Counsel Freeman, Authority Clerk Romero

CALL TO ORDER
President Kampe called the Directors meeting to order at 7:00pm.
Executive Director Cullem called the TAC meeting to order at 7:02pm.
ROLL CALL
PLEDGE OF ALLEGIANCE
REPORTS FROM BOARD DIRECTORS AND STAFF
None
PUBLIC COMMENTS

Charles Chech, Monterey resident, gave a short presentation on the Monterey

Peninsula pipeline. He said that California American Waters (Cal Am) Monterey
Pipeline is going to be extremely costly to rate payers and proposed an alternate route.

CONSENT AGENDA
Executive Director Cullem requested to remove items 2 and 3, which were not ready.
Director Roberson commented that the Monterey City Council is concerned about the Authority
budget and the approval process for legal expenses, and requested discussion on the matter at
a future meeting.
PUBLIC COMMENTS
None

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Thursday, August 11, 2016

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, with the exception of items 2 & 3 which were removed:
AYES:

DIRECTORS:

NOES:
ABSENT:
ABSTAIN:
RECUSED:

0
0
0
0

DIRECTORS:
DIRECTORS:
DIRECTORS:
DIRECTORS:

Dallas, Edelen, Pendergrass, Roberson, Rubio,

Kampe
None
None
None
None

1.

Approve Minutes of Director's Meeting of July 14, 2016

Action: Approved

2.

Approve and File Authority Checks Through July 31, 2016

Action: Removed

3.

Receive Report on FY 2015-2016 Year-End Financial Status

Action: Removed

4.

Receive Report and Copies of the Motion to Strike and Comment Letters on the Marina Coast
Water District Motion to Delay CPUC Hearings on the Return Water Agreement and the Brine
Disposal Agreement
Action: Approved

5.

Receive Report on Decision of the State Water Resources Control Board (SWRCB) on the
Cease and Desist Order (CDO) 2009-0060 Extension Application
Action: Approved

6.

Appoint Councilmember Bill Peake of Pacific Grove to the Technical Advisory Committee
Action: Approved
***End of Consent Agenda***
AGENDA ITEMS

7.

Receive a Report and Provide Direction on the Contract for the Executive Director
Action: Received Report and Discussed; Authority will negotiate a new Executive
Director Contract with Cullem Management Services, LLC
Executive Director Cullem stated that the City of Monterey has elected to not renew his
Executive Director Contract which expires August 15, 2016. He said that the Authority could
contract with him directly, through Cullem Management Services, LLC. He gave other options
for Executive Director (ED) services, including rotating ED duties between City Managers,
obtain ED on a pro bono basis, contract for part time ED, or competitively advertise and award
a contract for an ED.
PUBLIC COMMENTS

Michael Warburton, Public Trust Alliance, questioned if the Executive Director position
gives direction to the Authority to investigate alternate water supply projects besides Cal
Ams project.
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Director Roberson clarified that the City of Monterey wanted to extend the contract for Mr.
Cullem as Executive Director; however it is a California Public Employees Retirement System
(CalPERS) issue that they cannot renew his contract.
It was moved by Director Roberson, and seconded by Director Dallas, to negotiate a contract
for Executive Director services with Cullem Management Services, LLC.
Director Rubio suggested designating himself and President Kampe to negotiate a contract with
Cullem Management Services, LLC in closed session and then bring it to the Authority.
Director Roberson asked to amend his motion, seconded by Director Dallas, and carried by the
following vote, the Monterey Peninsula Regional Water Authority designees will negotiate a
contract for Executive Director Services for the Authority with Cullem Management Services,
LLC:
AYES:

DIRECTORS:

NOES:
ABSENT:
ABSTAIN:
RECUSED:

0
0
0
0

DIRECTORS:
DIRECTORS:
DIRECTORS:
DIRECTORS:

Dallas, Edelen, Pendergrass, Roberson, Rubio,

Kampe
None
None
None
None

President Kampe noted that in the past the Authority tried to rotate the position of the ED
between several people but it didn't work and there was a lack of continuity.
8.

Receive an Update on the Summary Project Schedule for the Monterey Peninsula Water
Supply Project (MPWSP)
Action: Received Update
Ian Crooks from California American Water (Cal Am) gave a presentation on the schedule for
the Monterey Peninsula Water Supply Project (MPWSP) and the milestones that need to be
reached:
o

The Environmental Impact Report (EIR/EIS) schedule has not changed since March
2016; it is still waiting for the California Public Utilities Commission (CPUC) final
approval which is anticipated to be ready in November, 2017.

The test slant wells have been pumping for 275 days, and are successful at 92%
salinity.

The Monterey Pipeline and Aquifer Storage Recovery (ASR) Pump Station are expected
to deliver water by 2018.

The Desal plant is expected to start up in 2019 or 2020.

PUBLIC COMMENTS

Ms. Rosenthal, a resident, questioned what 92% salinity refers to in Mr. Crooks update.

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Tom Rowley, Monterey Peninsula Taxpayers Association (MPTA), questioned if the

MPWSP schedule is temporary or long term.

Michael Warburton, Public Trust Alliance, questioned if the schedule allows the time to
investigate other alternatives to the MPWSP.

Chuck Cech, asked for clarification from Cal Am if their test slant wells will be
terminated.

Ian Crooks, Cal Am, addressed the public comments. He explained that 92% salinity refers to
the percentage of total dissolved solids (TDS) and the amount of the Monterey Bay ocean
water being captured by the test slant wells. He said the test wells will not be terminated, they
are still pumping it's just no longer on the schedule because it isnt pertinent to the overall
schedule.
Director Roberson asked how the excess river water stored in Aquifer Storage Recovery (ASR)
in the Seaside basin will be distributed. Mr. Crooks explained that the purpose of the new
pipeline would reverse the way the water supply is carried, which the current system doesnt
allow. Mr. Crooks said the new pipeline would allow water from Seaside to be carried and
distributed across the system.
9.

Receive Presentation, Discuss, and Provide Staff Direction on the People's Desal Project
Action: Received Presentation; Discussed (43 min)
David Balch gave a presentation on the People's Desal Project. He gave a handout which
outlined the following:

Project description: stand-alone desalination facility, capable of producing 13,404 acre

feet per year of reverse osmosis water with proposed screened ocean intake
Estimated costs: $2,260 per acre foot, plus facility and pipeline costs
Project advantages: Site has existing pipeline running under property, existing
infrastructure, zoned industrial, and was CPUC approved in 2002 for water desal
project,
Project schedule: desal plant estimated to be operational and deliver water by February,
2020

Mr. Balch answered the questions that were asked by the Authority regarding approval for the
project, overall project features, facilities layout, potential water purchasers, intake and outfall
strategy, Environmental Impact Report (EIR) timeline, potential hurdles, status of state permits,
financial status, and the overall schedule for delivery of water.
Mr. Balch stated that there are issues with Cal Am's return Water Purchase
Agreement (WPA) with Castroville because exporting groundwater is illegal and Cal Am will be
facing a lawsuit. He questioned whether the Authority is ready to stand by a project with
litigation risks. He explained that the People's Project already has a pipeline in place, but is
lacking political support and funding.

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PUBLIC COMMENTS

Michael Warburton, Public Trust Alliance, said that there are better projects for the
environment than the one Cal Am has proposed and other alternatives should be
considered.

Ian Crooks, Cal Am, questioned when the 85 page report regarding intakes from the
Peoples Project consultant would be made available to the public. He also said he
would like to see the public document that says the Marine Sanctuary is the lead
agency.

The Authority asked David Balch who is funding the Peoples Project, and questioned how the
funding fits into the timeline. Mr. Balch responded the local public agencies are waiting for the
draft EIR to become certified before discussing the formation of a Joint Powers Agreement
(JPA). He stating that financing would be obtained concurrently during the permitting period,
either privately or publicly, and have looked into 40 year bond financing at 4.3%.
Member Stoldt stated that a water purchasing agreement needs to be in place for financing.
Director Edelen suggested that it would be beneficial for the Peoples Project to find common
ground with other desal projects and work together instead of competing against each other.
Member Scuito questioned if design for the desal project has begun and if it has been funded.
Mr. Balch responded that the design is currently 15% complete pending the EIR, and
completed design still needs to be funded. Mr. Balch addressed Mr. Crooks saying that he
anticipates the Marine Sanctuary will be formally retained as the National Environment Policy
Act (NEPA) lead agency in the next couple months. He also said that the 85 page report is a
draft appendix to the EIR and it will be published for the public.
Director Roberson questioned if Cal Am purchases the water from the People's Project, what
the cost to the rate payers will be. Mr. Balch responded that Cal Am will charge the ratepayers
a surcharge for delivery of water. Director Roberson requested a cost comparison between the
cost to the rate payer between Cal Am and the Peoples Project.
President Kampe asked Don Freeman, Legal Counsel, to comment on the assertion that the
Castroville WPA is illegal. Mr. Freeman responded that the Authority is not part of the lawsuit
and should not comment or get involved.
Director Rubio questioned if the pipeline costs have been included in the project cost estimate.
Mr. Balch responded that the pipeline route is in the EIR, but the pipeline construction cost is an
unknown.
10.

Receive Presentation, Discuss, and Provide Staff Direction on the Deep Water Desal Project
Action: Received Presentation; Discussed
Kim Adamson, Deep Water Desal General Manager, gave a presentation on the Deep Water
Desal Project (DWD). Ms. Adamson gave an overview stating the following:

Project overview: DWD is a seawater reverse osmosis desalination plant. The project
site location in Moss Landing includes an electrical substation and data center.
Deep water desalination benefits: low pre-treatment cost, cold water reduces energy
costs, less impact on the environment.
The need for water: is affected by the Sustainable Groundwater Management Act, and
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surface water cutbacks.

Partnership structure and estimated costs: DWD is a build, operate, transfer model. A
private company would fund the project and a JPA would purchase the water and plant
over 30 years and become owners.
Energy savings from the Data Center are passed on to water off-takers, resulting in
lower cost per acre foot.
Estimated project finish date: March, 2018
Estimated total cost of project: $320 million

PUBLIC COMMENTS

Luke Colletti, Pacific Grove resident, said the improved efficiency of DWD relies on the
inefficiency of the Data Center.

Andrew Bell, Monterey Peninsula resident, said he wants to know who would be the
project owner of DWD. He requested that the presentations to be made available to the
public.

Libby Downey, Monterey Councilmember, she suggested that the Authority evaluate
DWD and the People's Projects more than once a year, and not only look at Cal Am's
project.

Bill Peak, Pacific Grove Councilmember, asked what the cost per acre foot for the DWD
water is.

Mr. Whitesman, a resident, asked what the cost per acre foot DWD water is, once it
reaches Cal Am.

Tom Rowley, MPTA, said that the Authority has looked at all the different projects all
along and the taxpayers are looking to the Authority to find solutions.

Michael Warburton, Public Trust Alliance, commented that the need for water needs to
be presented and water use needs to be more efficient. He said these projects are very
expensive and there are other less expensive alternatives.

Paul Michelle from the Marine Sanctuary, said the DWD schedule was given to him
today, which says the earliest draft EIR for DWD will be available is in the Fall of 2017.
He requested that that be clarified.

Rudy Fisher, Pacific Grove Councilmember, said we have to use less water from the
Carmel River and Seaside Aquifer as the community continues to grow. He opined that
the water projects go forward because the Peninsula needs it.

David Balch, People's Project, questioned if the DWD project is possible without the
data center and if so what the cost of the project would be without it. He also asked if
the data center is included in the EIR, and what the timeline is.

Ian Crooks, Cal Am, asked for clarification on the DWD project regarding the amount of
coastline needed, the cost of project compared to others, and what happens if there is
no data center. He said that Cal Am has proven that slant wells are feasible.

Member Riley asked if Cal Ams desal project fails if the taxpayers will have stranded costs. He
stated that if other projects are funded privately ratepayers will not have stranded costs if they
fail.
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Director Rubio requested clarification on the cost per acre foot for delivery of water from DWD.
Ms. Adamson responded that that the cost per acre foot for water is under $2000, and DWD is
fine tuning the amount being offset by the data center. She clarified that DWD is able to be a
standalone project without the data center, but both are being included in the EIR. She said that
there would be a three way shared cost with Cal Am and Castroville for the Monterey Pipeline.
Member Riedl asked how much of DWD is in the coastal zone, and Mr. Adamson responded
that the entire project is in the coastal zone and requires Coastal Commission approval.
Ms. Adamson said in response to earlier questions about the cost of water to the ratepayer that
the CPUC controls the ratepayer cost of water regardless of the source. She stated that DWD
is a regional project and is moving forward regardless if slant wells are proven to be feasible.
President Kampe asked for clarification on the role of the JPA for DWD and what public
ownership would mean. Ms. Adamson responded that the JPA would be the water off-taker and
would be purchasing the plant, and it would be a public-private partnership.
Director Rubio requested clarification on the DWD project start and finish. Ms. Adamson
responded if permitting goes the way is it supposed to go, the project should start in about start
in about 18 months and finish is 2020, similar to Cal Am's timeline. She responded to an earlier
public comment that the need for water is not based on assumptions, it is based on science.
She added that there is no more water conservation that can be done, that Monterey already
has the lowest per capita rates of water consumption in the State.
ADJOURNMENT
Having no further discussion, President Kampe adjourned the Joint Meeting at 10:00pm.
ATTEST:

Nova Romero, Authority Clerk

MPRWA President

Monterey Peninsula Regional Water Authority

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