MINUTES

MONTEREY PENINSULA REGIONAL WATER AUTHORITY TECHNICAL ADVISORY COMMITTEE (TAC)

Regular Meeting 10:30 AM, Monday, June 2, 2014

COUNCIL CHAMBER 580 PACIFIC STREET

MONTEREY, CALIFORNIA Members Present Israel, Narigi, Alternate Ottomar, Riley Stoldt, Burnett,

Members Absent: Huss Staff Present: Executive Director, Legal Counsel, Clerk CALL TO ORDER Member Stoldt called the meeting to order at 10:30 AM.

ROLL CALL PLEDGE OF ALLEGIANCE REPORTS FROM TAC MEMBERS Member Riley spoke to a quote in a published article by Mayor Burnett indicating that public ownership was necessary and requested clarification he questioned if that was just an element for negotiations. Member Stoldt said this was not an Authority question but would speak with Member Riley about it after the meeting. Chair Burnett arrived at 10:35 AM.

PUBLIC COMMENTS Member Stoldt Invited public comments for items not on the agenda.

David Lifland spoke to a report released from the Monterey Regional Water Pollution Control Agency regarding geological work which indicated the Seaside Basin was 40 feet below sea level, then he spoke to the storage capacities listed in the report. APPROVAL OF MINUTES 1. Receive Report and Discuss Selection of the Consultant for the Value Engineering (VE)

Study of the Monterey Peninsula Water Supply Project (MPWSP).- Cullem Executive Director Cullem reported regarding the Value Engineering RFP and selection process. He reported that the Governance Committee accepted the recommendation of the Selection Committee for VMS and left the Authority with the responsibility to award the contract and authorized negotiations with VMS to reduce costs. Mr. Cullem reported the specific negotiating areas to reduce costs. Mr. Cullem answered questions of the TAC. Chair Burnett invited comments from the public and had no requests to speak. Report was received and the TAC agreed to recommend the Authority to enter into a

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contract with VMS after negotiating specific reduced costs.

3. Receive Report on the Status of the Environmental Impact Report and the Hydrogeological Report for the Monterey Peninsula Water Supply Project Slant Wells-Crooks Ian Crooks, Cal Am presented a verbal update indicating the release date of the draft Environmental Impact Report (EIR) is still on schedule for release in the third quarter. He also indicated the Marina Mitigated Negative Declaration (MND) for the Cemex test well was released and is out for public review. He reported that all bore hole drilling and analysis has been completed and the bore hole technical memorandum, the findings of the borehole program, will be released next week as well as the ground water model for the Cemex test well. Ground water modeling for the entire test wells will be done in July and incorporated into the full EIR. Lastly, he reported that the 60% design schedule should be completed by September. Mr. Crooks answered questions from the TAC. Member Stoldt left the meting at 10:56 AM The TAC discussed the level of review that they desired to have over the documents speaking to where they could add to the process versus being informed of the process. Chair Burnett invited public comments on the item. David Lifland requested the information discussed to be posted on the internet and accessible to the public. The TAC and Mr. Crooks agreed to send links of the referenced documents when released to full distribution list.

4. Receive Report on the Term Sheet for Use of the Monterey Regional Water Pollution

Control Agency Outfall and Receive and Discuss the Technical Study on Landfill Power -Crooks Ian Crooks, Cal Am spoke to the term sheet developed for incorporation into an agreement for the use of the MRWPCA outfall indicating it has been sent to the MRWPCA for review and incorporation. He expects significant movement in June after source water negotiations are complete. He then spoke to the Technical Study on Landfill Power which showed favorable for feasibility. The next step with the District is the formulation of capital. He closed by saying it is not a critical path method at this time. Executive Director Cullem questioned if potential issues with the capacity for brine outfall has been resolved to which Mr. Crooks answered is being addressed. Chair Burnett invited comments from the public and had no requests to speak.

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5. Receive Report on the Negotiations for PWM Source Water and Ground Water Replenishment Product Water-Israel

Member Israel spoke to the status of the source water agreements, the process of the Pure Water Monterey project ongoing activities, key factors for the Water Negotiations meetings and other activities that they are focusing on. Member Stoldt spoke in support of Mr. Israel’s comments and indicated there is room for agreement that can satisfy everyone. Member Riley questioned the state’s recent thrust with drought problems and recycled water efforts and asked if they are more supportive of this type of project, will more money become available and if PWM is optimistic about the necessary approvals. Member Stoldt responded that money has been extended at lower interest rates for longer periods to assist with projects and spoke to current efforts to apply for grant funding targeting drought specific projects. He then spoke to the legislative items currently under consideration that could impact local water projects and their status at the state level. Chair Burnett invited public comment on the source water project negotiations. David Lifland questioned which source water will be replacing the water that is going back to Salinas. It was understood there would be water in the pond for use, now that the ponds will be used, how will it be replaced? Mr. Israel responded by explaining the projected sources of water and their flows. Chair Burnett spoke to the schedule presented and expressed gratefulness that they were getting down to the business negotiations to make the project happen as it has been in the work for a long time. Member Israel indicated that the unfortunate drought has brought a level of awareness that an agreement needed to be made, it heightened the sense of emergency and pushed people to work together for solutions. Executive Director Cullem spoke to the meeting schedule and the upcoming deadlines imposed by the CPUC settlement agreement. The Authority will be providing testimony to the CPUC regarding the GWR project, if it should remain a viable part of the proposal, but information is still outstanding from the source water agreements to be able to prepare the testimony. Mr. Cullem requested the TAC identify what information is needed to continue the support of the project. The TAC determined the following information was critical: • Cost Comparison and the Economics of the project (With the understanding it won’t be

able to finalize until business terms are locked in) • Key questions outlined within the Settlement Agreement This was a discussion item only.

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6. Discussion of Request to Cal Am for a Detailed Critical Path Method (CPM) Schedule for all Permits and Approvals for the Monterey Peninsula Water Supply Project (MPWSP) - Cullem Executive Director Cullem spoke to the item and the continued questions regarding permitting authority and acquisition and suggested that the Authority formally request that Cal Am provide a detailed description of all the permits required and a timeline of their critical path method (cpm). This will help with the proposal with the State Water Resources Control Board extension request. Mr. Cullem described a CPM schedule typically includes all required activities, their timelines of approval and how they interact with each other. He specified that it is only requested for the desal plant project. Chair Burnett invited public comments. David Lifland indicated that Cal Am previously presented such a chart to which Mr. Cullem indicated the request is for a more detailed schedule than what was previously presented. The TAC concurred with the request that it is a needed element. Mr. Crooks agreed that there is a schedule but it would need to be compressed for public consumption and he could have the schedule available by the July 7th meeting. Chair Burnett requested Mr. Crooks to identify and focus on areas where the Authority could play a role and where they could be engaged, specifically as it relates to permits.

ADJOURNMENT Member Riley requested the Authority receive presentations from the other desalination projects to keep informed of progress and timetables so the Authority is equipped to respond to public questions. Chair Burnett indicated that the release of the draft EIR would be a good time to invite the other project proponents in to augment the record. Executive Director Cullem spoke to the proposed forum which would be an opportunity to receive reports from all projects. Chair Burnett then suggested agendizing a discussion following the campaign to clarify information that has been distributed. Having no further business to conduct, the meeting was adjourned at 11:46 AM.: ATTEST: Lesley Milton, Authority Clerk Jason Burnett, Vice President

Monterey Peninsula Regional Water Authority Agenda Report

Date: June 02, 2014

Item No: 2.

№06/12

FROM: Executive Director Cullem

SUBJECT: Receive Report and Discuss Selection of the Consultant for the Value Engineering (VE) Study of the Monterey Peninsula Water Supply Project (MPWSP).

RECOMMENDATION:

It is recommended that the TAC discuss the tentative contract for the VE Consultant recommended by the selection committee and approved by the Governance (GC) Committee on May 23.

DISCUSSION:

Section V., Category A.2 of the Governance Committee Agreement specifies that the Governance Committee shall make a recommendation to California American Water (Cal-Am) on selection of professional engineer to perform a value engineering (VE) study for the Desalination Project at the 30% design level.

Since the GC had no way to award contracts, the Water Authority advertised the RFP. The TAC reviewed the draft RFP and scope of work for the VE and its comments were incorporated into the final versions. The RFP was advertised on April 17 and two (2) proposals were received on May 8.

A selection committee reviewed the proposals and recommended a preferred firm to the GC. Rick Riedl was approved by the TAC to serve as its representative on the selection committee.

On May 23 the GC approved the selection of Value Management Strategies (VMS) for a fee not-to-exceed $124,000. At its meeting of June 12, the Water Authority will award the contract, which will be administered by the Executive Director.

During the week of June 2, the Executive Director and the representative from Cal Am will meet with VMS to negotiate some changes in the scope of work in an effort to reduce the costs. TAC input on where and how to reduce costs (Exhibit A)will be solicited at the TAC meeting.

BUDGET CONSIDERATIONS:

The Water Authority FY 2013-2014 budget has been increased by not-to-exceed $200,000 to pay for the VE study, with the actual final cost to be reimbursed by Cal-Am per the Governance Agreement.

EXHIBITS:

VE Consultant Cost Proposal

COST PROPOSAL Monterey Peninsula Desalination Plant - 5 Day VE Study Monterey, CA

BIM Name &Hs PRE WORKSHOP - Preparation and Coordination

Co6..t

TaI

Program Manager

VE Team Leader

Assistant Team Leader/Technical Writer

Project Coordinator

Civil/Structural Engineer

Architect & LEED Evaluator

Electrical, Instrumentation, and Controls Engineer

Operations and Maintenance

Envision Evaluator

WORKSHOP - VE Study VE Team Leader

Assistant Team Leader/Technical Writer

Civil/Structural Engineer

Architect & LEED Evaluator

Electrical, Instrumentation, and Controls Engineer

Operations and Maintenance

Envision Evaluator

Stewart, Robert

Watson, Mark

Brink, Mariah

Kramer, Cheryl

Tavangar, Omid

Lambert, Michael

Ettlich, Bill

Close, Craig

Reardon, Dave

Watson, Mark

Brink, Mariah

Tavangar, Omid

Lambert, Michael

Ettlich, Bill

Close, Craig

Reardon, Dave

4

$290.22

$1,160.88 24

$220.32

$5,287.68 2

$92.53

$185.06

8

$158.61

$1,268.88 8

$238.00

$1,904.00 8

$169.00

$1,352.00 8

$258.00

$2,064.00 8

$354.00

$2,832.00 8

$358.00

$2,864.00

$18,918.50

50 $220.32 $11,016.00 50 $92.53 $4,626.50 40 $238.00 $9,520.00 40 $169.00 $6,760.00 40 $258.00 $10,320.00 40 $354.00 $14,160.00 40 $358.00 $14,320.00

Total WORKSHOP - VE Study: $70,722.50

$8,986.50

Total PRE WORKSHOP - Preparation and Coordination:

POSTWORKSHOP - VE Preliminary Report VE Team Leader Watson, Mark 24 $220.32 $5,287.68 Project Coordinator Kramer, Cheryl 2 $158.61 $317.22 Assistant Team Leader/Technical Writer Brink, Mariah 24 $92.53 $2,220.72 QA/QC Stewart, Robert 4 $290.22 $1,160.88

Total POSTWORKSHOP - VE Preliminary Report •

POSTWORKSHOP - Implementation Meeting and Final VE Report VE Team Leader Watson, Mark 28 $220.32 $6,168.96 Project Coordinator Kramer, Cheryl 2 $158.61 $317.22 Assistant Team Leader/Technical Writer Brink, Mariah 22 $92.53 $2,035.66 QA/QC Stewart, Robert 4 $290.22 $1,160.88

Total POSTWORKSHOP - Implementation Meeting and Final VE Report: $9,682.72

Labor SubTotal: $108.310.22 Other Direct Costs

Category

UM

Number

Cog

191.61 Watson, Mark Airfare Study and Implementation

Round trip transportation

Rental Car - 1 car

Meals and Incidentals

Lodging/Hotel

Parking-hotel

Baggage Fees

Brink, Mariah Airfare

Round trip transportation

Meals and Incidentals

Lodging/Hotel

Baggage Fees

each

each

Day

Day

Day

Day

each

each

each

Day

Day

each

2

2

8

7

8

7

4

1

1

6

5

2

$800.00

$100.00

$75.00

$71.00

$145.00

$15.00

$30.00

$700.00

$100.00

$71.00

$145.00

$30.00

$1,600.00

$200.00

$600.00

$497.00

$1,160.00

$105.00

$120.00

Total:

$700.00

$100.00

$426.00

$725.00

$60.00

Total:

$4,282.00

$2,011.00 Tavangar, Omid

Rental Car - 1 car

Meals and Incidentals

Lodging/Hotel

Parking-hotel

Day

Day

Day

Day

6

6

5

6

$75.00

$71.00

$145.00

$15.00

$450.00

$426.00

$725.00

$90.00

Total: $1,691.00

each

each

Day

Day

Day

Day

each

1

1

6

6

5

6

2

$700.00

$100.00

$75.00

$71.00

$145.00

$15.00

$30.00

$700.00

$100.00

$450.00

$426.00

$725.00

$90.00

$60.00

Total: $2,551.00

LS

3 $300.00 $900.00 EA

18 $100.00 $1,800.00 LS

1 $150.00 $150.00

Total Misc. ODC: $2,850.00

Other Direct Cost SubTotah $15.687.00

Lambert, Michael Meals and Incidentals

Day

6

$71.00

$426.00 Lodging/Hotel

Day

5

$145.00

$725.00

Total:

$1,151.00 Ettlich, Bill

Meals and Incidentals

Day

6

$71.00

$426.00 Lodging/Hotel

Day

5

$145.00

$725.00

Total:

$1,151.00 Close, Craig

Airfare

Round trip transportation

Rental Car - 1 car

Meals and Incidentals

Lodging/Hotel

Parking-hotel

Baggage Fees

Miscellaneous Direct Costs Shipping - Preliminary, Draft Final, Final Reports

Reproduction - Preliminary, Draft Final, Final Reports

Miscellaneous Supplies - CDs, Labels, Paper

TOTAL COST PROPOSAL $123997.22

Monterey Peninsula Regional Water Authority Agenda Report

Date: June 02, 2014

Item No: 3.

№06/12

FROM: Executive Director Cullem

SUBJECT: Receive Report on the Status of the Environmental Impact Report and the Hydrogeological Report for the Monterey Peninsula Water Supply Project Slant Wells-Crooks

DISCUSSION:

There is no written report for this Item. A verbal report will be provided at the meeting.

Monterey Peninsula Regional Water Authority Agenda Report

Date: June 02, 2014

Item No: 4.

№06/12

FROM: Executive Director Cullem

SUBJECT: Receive Report on the Term Sheet for Use of the Monterey Regional Water Pollution Control Agency Outfall and Receive and Discuss the Technical Study on Landfill Power -Crooks

DISCUSSION:

There is no written report for this Item. A verbal report will be provided at the meeting.

Monterey Peninsula Regional Water Authority Agenda Report

Date: June 02, 2014

Item No: 5.

№06/12

FROM: Executive Director Cullem

SUBJECT: Receive Report on the Negotiations for PWM Source Water and Ground Water Replenishment Product Water-Israel

DISCUSSION:

There is no written report for this Item. A verbal report will be provided at the meeting.

Monterey Peninsula Regional Water Authority Agenda Report

Date: June 02, 2014

Item No: 6.

№06/12

FROM: Executive Director Cullem

SUBJECT: Discussion of Request to Cal Am for a Detailed Critical Path Method (CPM) Schedule for all Permits and Approvals for the Monterey Peninsula Water Supply Project (MPWSP)

RECOMMENDATION:

It is recommended that the TAC discuss a request to Cal Am to provide a detailed CPM for all permits and approvals required to complete the MPWSP.

DISCUSSION:

At the Governance Committee (GC) meeting of May23, the Executive Director requested that the GC and the Water Authority request Cal Am provide a detailed CPM per the above recommendation. Requirements to provide a detailed CPM, if requested, are included in the approved Governance Agreement.

A TAC discussion of what should be included in the CPM, both in terms of content and detail, would be helpful in formulating a request letter to Cal Am.

Reviewing and tracking the CPM could become a work element for the TAC.