M I N U TE S MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) SPECIAL MEETING 10:00 AM, Thursday, October 31, 2013 MONTEREY

COUNCIL CHAMBER 580 PACIFIC STREET MONTEREY, CALIFORNIA Directors Present: Directors Absent: Staff Present: ROLL CALL President Della Sala called the meeting to order at 10:00 a.m. PLEDGE OF ALLEGIANCE PUBLIC COMMENTS President Della Salla opened the floor to public comment. David Lifland requested an update on the status of the test well permit and expressed concern about stranded costs, delays and dead ends. Nelson Vega requested releasing a schedule so the uninformed public would be able to understand the project status. Burnett, Edelen, Kampe, Pendergrass, Della Sala Rubio, Executive Director, Legal Counsel, Clerk

The Directors agreed to angendize a discussion on the slant test wells and to update the website to include a timeline for both Ground Water Replenishment and the Monterey Peninsula Water Supply Project. AGENDA ITEMS Discuss, Review, and Authorize a Contract with Separation Processes Incorporated(SPI) for Engineering Support Services on Behalf of the Governance Committee During Cal-Am's Selection Process for the Design-Build Firm for the Monterey Peninsula Water Supply Project, and Authorize the Executive Director to Negotiate, Prepare and Sign a Water Authority Contract with SPI, and/or Sign an Agreement for a Water Authority Cost Share with Another Public Agency Contracting with SPI for Said Services, at a Cost to the Water Authority Not-to-Exceed $12,000 and Determine Role of Authority Representative to the Governance Committee. Executive Director Cullem spoke to the item and explained the purpose for the special meeting. Cal am extended an invitation to participate in the review and selection process of the Design Build firm for the Monterey Peninsula Water Supply Project. The staff recommendation was to authorize a contract with Separation Processes Incorporated Consultants to participate on behalf of the Authority and Monterey Peninsula Water Management District. Ultimately, the costs of the consultant will be split between the three agencies associated with the Governance committee. He noted the time sensitive nature of the item, the fact It is rare that Cal Am has invited the opportunity allowing a public agency to participate in the private selection process due to proprietary information and the costs associated with this contract. Mr. Cullem answered questions from the Board.

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Thursday, October 31, 2013

President Della Sala clarified the intent would be to execute a contract with SPI without the approval of the two other Governance Committee members with the expectation that they would approve the action at their next meeting. Legal Council Freeman encouraged executing the agreement as not to exceed $12,000 of Authority Funds, and include phases which would allow time for approval from other participating agencies. President Della Sala Invited public comment on the item. Nelson Vega spoke in support of the action indicating it was a small financial cost to ensure the selection is consistent with Authority policy and in the best interest of the public. Tom Rowley spoke in support of requesting Monterey County to contribute funding for this project and spoke in support of SPI consultants. Lastly he requested continuing with seeking Monterey County support as a member of the Authority. David Lifland questioned the details of the non-disclosure agreement, the amount of time needed for review of the proposals and the size of the facility that was proposed.

Public comment was closed and Mr. Cullem and Vice President Burnett responded to public comments. Director Kamp spoke in support of hiring SPI to take on the complex project evaluation and expressed concern about the time line. Legal Counsel Freeman assured the Directors that action taken today could initiate the process with a not to exceed amount and if necessary further action could be taken at the next Authority meeting. Director Burnett clarified the importance of the action is not about cost but about being able to participate in the process and the fact the decision cannot be made in public, which is the fundamental purpose of this agency, due to proprietary information. This action would require three non-disclosure agreements and there will be a 1-month period that the information will be confidential before it could be released. On motion by Director Kampe and Seconded by Director Edelen and approved by the following vote the Authority approved the staff recommendation to authorize the President to approve the contract with SPI Consultants with a not to exceed amount of $12,000 with the assumption the other two Governance Committee members are willing to act in good faith and contribute after the services are rendered and to authorize Director Burnett to sign a non disclosure agreement to participate in the process Speaking on the Second, Director Edelen spoke to the offer from Cal Am shows a cooperative attitude and good will and bodes for a good partnership and for providing water to the peninsula. Director Kampe agreed. AYES: NOES: ABSENT: ABSTAIN: RECUSED: 5 0 1 0 0 DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: Burnett, Edelen, Kampe, Pendergrass, Della Sala None Rubio None None

ADJOURNMENT

Monterey Peninsula Regional Water Authority SPECIAL MEETING Minutes - Thursday, October 31, 2013 2

MPRWA Minutes ATTEST:

Thursday, October 31, 2013

Lesley Milton, Clerk of the Authority

Chuck Della Sala, President

Monterey Peninsula Regional Water Authority SPECIAL MEETING Minutes - Thursday, October 31, 2013 3