Agenda 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,

ROLL CALL

PLEDGE OF ALLEGIANCE

OTHER BUSINESS

1. Accept Monterey County as Participatory Member of the Monterey Peninsula Regional Water Authority and Authorize Amendment to Bylaws -

REPORTS FROM BOARD DIRECTORS AND STAFF

2. Receive Report from Technical Advisory Committee (TAC) -

a. Summary of September 17, 2012 Technical Advisory Committee Meeting

b. Review of Consultant Schedule and Progress

PUBLIC COMMENTS

APPROVAL OF MINUTES

3. August 1, 2012

4. September 12, 2012 Special Meeting

AGENDA ITEMS

5. Direct the Selection of Legal Counsel and Authorize the President to Execute a Professional Services Contract with the Selected Firm/Attorney –

6. Review the Necessity/Desirability of Executive Director –

7. Discuss Agenda Items for Future Meetings -

8. Information -

***Adjourn to Closed Session (See additional agenda)***

ANNOUNCEMENTS FROM CLOSED SESSION

ADJOURNMENT

Thursday, September 27, 2012

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 Clerk’s 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 Clerk’s 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 Clerk’s 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.

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Monterey Peninsula Regional Water Authority Date: September 27, 2012

Agenda Report Item No: 1.

FROM: Christine Davi, Monterey City Attorney

SUBJECT: Adopt a Resolution to Join Monterey County as a New Member of the Monterey Peninsula Regional Water Authority; Determine the Cost for Monterey County to Join; and Authorize the President to Execute a New Member Agreement with Monterey County

RECOMMENDATION: That the Monterey Peninsula Regional Water Authority (“Water Authority”) adopt a resolution to join Monterey County as a new member of the Water Authority; determine the cost for Monterey County to join, and authorize the President execute a New Member Agreement with Monterey County.

POLICY IMPLICATIONS: Section 5.2 of the Joint Exercise of Powers Agreement authorizes the Water Authority to add public agency members such as Monterey County. Adding Monterey County as a member of the Water Authority would provide representation for ratepayers living in the unincorporated areas of Pebble Beach, Carmel, Carmel Valley, and Monterey.

FISCAL IMPLICATIONS: If admitted as a new member to the Water Authority, Section 5.2 of the Joint Exercise of Powers Agreement requires that Monterey County pay a pro rata share of all previously incurred costs that the Board of Directors determines have resulted in benefits to the public agency, and are appropriate for assessment on the public agency.

Costs previously incurred by the Water Authority from inception to June 30, 2012 total $16,357.82. These costs were incurred primarily for legal fees for forming the Water Authority ($15,000) and for insurance ( $863.70) . Monterey County’s pro rata share of these costs would be $5,561.66. The Water Authority has the discretion to modify or waive Monterey County’s pro rata share if it determines that the previous costs incurred did not result in benefits to Monterey County or are not appropriate for assessment on Monterey County.

The Fiscal Year 2012-2013 budget for the Water Authority is $245,000. The pro rata share of this cost for Monterey County for this fiscal year would be $83,300 based on a 34% consumption rate in the unincorporated areas of the County. Monterey County Board of Supervisors has approved this contribution to the Water Authority.

ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378,

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this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project.

ALTERNATIVES CONSIDERED: The Water Authority could choose not join Monterey County as a new member.

DISCUSSION: In a letter dated August 1, 2012, the Water Authority requested that Monterey County join as a member to represent ratepayers who do not reside within the existing Water Authority member cities’ limits. (Attachment 1). Approximately 34% of Cal Am’s customers’ water usage on the Monterey Peninsula is in the County unincorporated area and not in the cities.

On September 11, 2012, Monterey County voted unanimously to become a member of the Water Authority, authorized the Chair of the Board of supervisors to sign a New Member agreement under Section 5.2 of the Joint Exercise of Powers Agreement, appointed Supervisor Potter as the County’s representative on the Water Authority Board, and approved payment of $83,300, its share of Water Authority budget for Fiscal Year 2012-1013. (Attachment 2).

In order to approve Monterey County to join as a new member of the Water Authority, a supermajority vote of at least 70% of the votes held among all Directors is required (5 votes) pursuant to Section 5.2 of the Joint Exercise of Powers Agreement.

It is recommended that the Water Authority adopt the attached resolution and add Monterey County as a new member, determine the amount of the cost to join the Water Authority, if any, and authorize the President to sign a New Member Agreement with the County. (Attachment 3).

Attachments: 1. Monterey Peninsula Regional Water Authority Letter dated 8/1/12 2. Monterey County Board Orders 3. Draft Resolution c: Lew Bauman, County Administrator

MPRWA Meeting, 9/27/2012 , Item No. 1., Item Page 2, Packet Page 2

Date: September 27, 2012 MPRWA RESOLUTION NO. __- ___ Item No: 1.

A RESOLUTION OF THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY

TO JOIN MONTEREY COUNTY AS A NEW MEMBER OF THE MONTEREY PENDINSUAL REGIONAL WATER AUTHORITY, DETERMINING THE COST FOR MONTEREY COUNTY TO JOIN, AND AUTHORIZING THE PRESIDENT TO SIGN A NEW MEMBER AGREEMENT WITH MONTEREY COUNTY

WHEREAS, Section 5.2 of the Joint Exercise of Powers Agreement authorizes the Monterey Peninsula Regional Water Authority (“Water Authority”) to add public agency members;

WHEREAS, the unincorporated areas of Pebble Beach, Carmel, Carmel Valley, and Monterey are not represented on the Water Authority;

WHEREAS, on September 11, 2012, Monterey County authorized joining the Water Authority, approved payment of $83,300 for its share of the Water Authority’s budget for Fiscal Year 2012-2013, and appointed Supervisor Potter as its representative on the Board of Directors;

WHEREAS, the Water Authority has determined that payment of $ .00 is Monterey County’s pro rata share of previously incurred costs;

WHEREAS, the Water Authority has determined that the payment of pro rata costs is appropriate for Monterey County to join as a member.

WHEREAS, the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project.

NOW, THEREFORE, BE IT RESOLVED BY THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY that it hereby joins Monterey County as a member of the Water Authority; determines the pro rata cost for Monterey County to join is $ .00, and authorizes the President to sign a New Member Agreement with Monterey County.

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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

Recording Secretary

2 MPRWA Meeting, 9/27/2012 , Item No. 1., Item Page 4, Packet Page 4 ATTACHMENT MONTEREY PENINSULA REGIONAL W ATERALITHORITY 58-0 PACIFIC STREET moNTguY, cA 93940

7a;VI . THE. PPE,:S'ING NEED OF EAT,CURING 71113 RE ' ,Ltelii,a.0.637,yilE; A LEADETSHIP VOICE 70 uJ D DRESS ri TO RA YIE A Si! SUSTAINABLE, REA. LiAB :LE, 14:1.4 TT :I? SUIT -r • -

August 1, -2012

'Chairman and Members of the Board zPSOptyi.S.PE'S:

Box : 723.: Salinas, CA 93902.

'Dear, Chairman Pctter nd Members of th_0,'BoaN or$npeNdsors:

In early 20l2 the .'six Cities of the MOnterey-PeninstlaJhose. in:theCal A. ,.;•r.: . area„.-ereatet the Monterey PeninsulaaegionR1 Water Authrriry (M:I'lz..:WA).• • The :Authority: was c.leat:ed. as a •v-ehiele: to represent the resident,..; .of: :our six Cities in our IOJTIC::eft4it 1.6 tità.t.e a viable ftioVejrril .i..ww,,e17 . ...§.upply for the Monterey ppniiisura, our 3.PA .i&-r.s; forth .ou.r, 'purpose., With one the main goats 12 .0i:ttg the proper :r.esp:re•SerRatio.r.t.:Ofthe: citizens we serve.

We have :made progress. •in the •Tobri or•sp.o.:04•11:Ag an objetive proh±ssional cOnsultant .study of the three- phip.:0ed.desa.! :inizatj.00 projec.ts.,.which corArn,t will be executed shortly. • . One basic isst vhich rc.rnains 1.1nrQseiMA is':::113•4t •.ap.o.Wx.i.iAat..01:y.:34.1%0Teil: Alb-- customers' .water :usage, on the Monterey: Peitiosula, is in •,:lic• County unincorporated crea and not in the Cities. It IS for this ita5011, to :properly represent .these - ditielts in thi:s. most critical undertaking, that wC 6:4.k you to join •with. us in this Fp.00perat'NQ endeavor: _ If you Were 16- fully :join with us, vow pers,p.eelve...woUld be very va l uable •to:.• us: as we :.move forward. • • • • • ••• - - -

While Llik c;..:). major requesl...:01.7:ithe. C.,•;r hataver reason -chooses act to Join. .at In lime, then please eoiisid r parucipaLior es a 04mer in the sponsorship zIlid costs oi the three project won study. The A ulh olitts oentyazt With the seeoltd:!•:0.:!t'S•ti is schedaled for this Wednesd ay •evel:iing; August 1.

At our July 23.'6 n•420.01.- we. adapted a budget for the ;next fiscal Year,. Ogitifi.O.:tl.b.or policy d'ireetiOn and fay •00.0npiti've4;: for th (TUC workShops, :• We .:0•,-ro most hopeful tha".-.yolk_Will.j•dirr rts•::: in lau.r.:•••::::,frottS :t6.• effeetiyely .pUrsile and .obtain. a long-term waler • supply for the Monterey Peninsula. This :effort as yen filly appreciate, is critical to tile future of thov[oothcey PenitiSiilkand to the economy of 'Mor.to.i -e•Y•:':Q000.•.t.Y.; Thard< yo-„i fir ybUT ebbsideratior: of th.:s iaOst important re..eltmg•

Sincerely , •

Charles Della MPR \VP,.

Ce: Mr. Lew BO::01-1*kq0E4i:ity Administratm Mayors, Counoil :MeriZerk :Managers' of MliRWA Agemii

Chuolt.Da.a sIda, Ptc;s'icleilt Jaw :1 Bum nail 1)4c..,ctdr. Jerry 4161:0A:i Carraelita:Ciacii,), Secretary FON Rad:101er; Vice Presideni pE•Ni4 x, :Peldogyas:.5, Direc0:)r

MPRWA Meeting, 9/27/2012 , Item No. 1., Item Page 5, Packet Page 5 File ID 12-489 No. 16 i3N77...

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1850 . Monterey County 168 West Alisal Street, 1st Floor Salinas, CA 93901 Board Order 831.755.5066

Upon motion of Supervisor Calcagno, seconded by Supervisor Salinas, and carried by those members present, the Board of Supervisors hereby:

Responded to Board of Supervisors referral regarding the request of the Monterey Peninsula Mayors that the County become a member of the Monterey Peninsula Regional Water Authority.

Joined the Authority as a full voting member, and took the following additional actions: A. Authorized Chair to sign "new members" agreement under section code 5.2 of Joint Exercise of Powers Agreement B. Appointed Supervisor Potter, 5th District, as the County's representative on the Authority board C. Directed County Counsel to return to the Board with any amendments to the Authority enabling agreement deemed necessary or appropriate from the County's perspective D. Approved the Budget Committee recommendation for use of General Fund contingency funds to pay for first year costs to join the authority (see accompanying Board item) E. Provided other direction regarding the Monterey Peninsula Regional Water Authority

PASSED AND ADOPTED on this 11th day of September 2012, by the following vote, to-wit:

AYES: Supervisors Armenta, Calcagno, Salinas, Parker, and Potter NOES: None ABSENT: None

I, Gail T. Borkowski, Clerk of the Board of Supervisors of the County of Monterey, State of California, hereby certify that the foregoing is a true copy of an original order of said Board of Supervisors duly made and entered in the minutes thereof of Minute Book 76 for the meeting on September 11, 2012.

Dated: September 12, 2012 Gail T. Borkowski, Clerk of the Board of Supervisors File Number: 12-849 County of Monterey, State of California Revised 09-13-12 .. By a i A 1, 4 a, k. bbputy

MPRWA Meeting, 9/27/2012 , Item No. 1., Item Page 6, Packet Page 6 File ID 12436 NO. 17

. • • "" .7(

--,..- 4- Monterey County 168 West Alisal Street, 1st Floor Salinas, CA 93901 Board Order 881.755.5066

'Upon motion of Supervisor Potter.seeonded by Supervisor Salinas, and parried by those members present, the Board of Supervisors hereby:

Approved the transfer of General Fund Contingency funds; in the amount of $83,300, for Costs related to

FY '2012 - 2013 payment of the pro-rata share of the cost to allow. the County to become an ex-officio or full member of the Monterey Peninsula Regional Water Authority. (4/5th vote required)

PASSED _AND ADOPTED ori this 1 lth day of September 2012, by the following vote, to-wit: , AYES: Supervisors Armenta, CaleagnO, Salinas, Parker, and Potter NOES: None ABSENT: None

1, Gail T. Berkowski, Clerk, of the Board of Supervisors of the County of Monterey, State of California, hereby certify that the -foregoing is a true copy of an original order of said Board of Supervisors duly made and entered in the minutes thereof of Minute Book 76 for the meeting on Septethber 11, 2012.

Dated: September 17, 2012 Gail T. Borkowski, Clerk of the Board of Supervisors File-Number: 12-836 Cotmty of Monterey,, State of California ,- By _ A.2 411PitAli __, i" Deputy

MPRWA Meeting, 9/27/2012 , Item No. 1., Item Page 7, Packet Page 7

Date: September 27, 2012 Item No: 3. SPECIAL MEETING MINUTES MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) Wednesday, August 1, 2012

1. CALL TO ORDER

The MPRWA special meeting of Wednesday, August 1, 2012 was called to order at 7:00 p.m. by President Chuck Della Sala, at the Monterey City Council Chambers.

2. ROLL CALL AND INTRODUCTIONS

Roll call was taken and a quorum established with the following members in attendance:

PRESENT: President Chuck Della Sala, Monterey; Vice President Felix Bachofner, Seaside; Directors Jason Burnett, Carmel; Jerry Edelen, Del Rey Oaks; Carmelita Garcia, Pacific Grove; David Pendergrass, Sand City.

Others: Interim Executive Director, John Dunn; Interim Agency Attorney, Don Freeman; TAC Representative, Dave Stoldt; Acting Agency Clerk, Samantha Sakhrani.

3. PLEDGE OF ALLEGIANCE

Director Garcia led the attendees in the Pledge of Allegiance.

4. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA

President Della Sala opened the meeting to public comment.

• George Brehmer - Requested the Authority be objective when choosing a consultant. • George Riley - Spoke about an article regarding Cal Am and rate payers. • Nelson Vega – Asked the Authority to look into the Governor’s Water Master Plan. • Libby Downey - Urged the Authority to get a commitment on the offer the Water Management District made to assist with financial costs. • Harvey Billig – Asked Authority to hire a financial advisor to aid in the projects. • Unidentified member of the public – Spoke about an article referencing a workshop held in San Francisco, which stated CalAm would consider City of Pacific Grove as a fourth project.

President Della Sala closed public comment.

5. APPROVAL OF MINUTES

MPRWA Meeting, 9/27/2012 , Item No. 3., Item Page 1, Packet Page 9 MPRWA Special Meeting Minutes August 1, 2012 Page 2 of 7

None.

6. BUSINESS ITEMS

A. Consider awarding contract between MPRWA and Base Water Resources Consulting and Management LLC for consulting regarding comparison of cost estimates for the proposed desalination project alternatives and evaluation of schedule and alternative financing options and authorize MPRWA Chair or designee to execute agreement on behalf of MPRWA.

MPRWA TAC Committee Chair, Dave Stoldt, presented the contract and stated the contract had minor changes put forth by Attorney Christine Davi and Attorney Don Freeman. The estimated total costs of the firm to be approximately $58, 750.

Directors asked clarifying questions regarding additional proposals from other firms, the potential timeline implications and the overall quality of the submitting company.

Mr. Stoldt answered questions and stated an additional three (3) firms had expressed interest in the project; there is a major concern regarding public perception of the principal of Base Water Resources Consulting and Management as he had done business with the City of Oxnard where there were allegations of misused public funds and failure to report gifts from firms conducting business with the City.

Mr. Ortega’s experience with other projects was discussed and for the purpose of informing the public, a synopsis of an email by the Ventura County Investigation Department was shared.

President Della Sala opened the floor for public comment.

• Nelson Vega - Asked the Authority to seek another consulting firm and to make contracts more specific as the submitted contract contained flaws.

President Della Sala asked City Attorney Don Freeman to address Mr. Vega’s concern in regards to the Attorney clause in the contract.

Seaside City Attorney Freeman stated that the contract has been reviewed by himself and Monterey City Attorney Davi and the Attorney Provision is standard for some public agencies, the use is personal preference; the lack of use in this agreement has to do with the nature of

MPRWA Meeting, 9/27/2012 , Item No. 3., Item Page 2, Packet Page 10 MPRWA Special Meeting Minutes August 1, 2012 Page 3 of 7 the consultant agreement and the consideration of litigation fees. What is included in the agreement is standard and used in most jurisdictions as it outlines the performance requirements, along with provisions to terminate should the agreement lack fulfillment by the contracted party.

• Unidentified member of the public - Asked the Authority to act with prudence.

No further comments, public comment closed.

M/S/C (EDELEN/GARCIA) motion to not award the contract to BASE Water Resource Consulting and direct Mr. Stoldt to solicit other appropriate alternative consulting firms that the Board could evaluate in the future. MOTION CARRIED (6-0-0-0)

Directors Garcia and Burnett spoke to the importance of guarding the public trust and fully vetting future consultants.

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B. Update of California Public Utilities Commission workshop of July 26 and July 27 and provide a policy direction for future meetings.

President Della Sala thanked Director Burnett and his alternate and City of Seaside alternate, Steve Bloomer, for attending the workshop.

Director Burnett made available to the public the slide presentation presented at the workshop and pointed out that the PUC regulates only CalAm and does not and can not direct a public agency to take any action; PUC made clear that unless public agencies come forward and propose viable alternatives, the PUC will continue with current direction. Director Burnett identified: if Authority wishes to make a public announcement that public ownership is favored or partial ownership and that the Authority favors public governance for important decisions, then Authority needs to submit specific proposal/ plan to PUC as soon as possible with critical deadline of September 18; or alternatively, Authority needs to work with other agencies to encourage submission of a proposal that the PUC can evaluate and if chooses to, direct Cal Am to work with the public agency. Key point for Authority consideration is PUC can not legally direct the Board or any other public entity to take any action; the Authority needs to take that action.

City Attorney Freeman: Emphasized the September 18 deadline and reminded the Authority the tasks set forth for the evening is to provide policy direction achieving regard to the Authority and potentially public ownership, governance, and financing.

Director Burnett: Advocates public ownership and public financing in the interest of lower interest rates associated with debt and subsequent lower costs to rate payers; asked Authority to appoint an Ad Hoc Committee to work with Water Management District, to assist their efforts in submitting a proposal for PUC submission before the deadline.

Director Pendergrass: Does not support public own and operate; asked that public/private ownership and all options be explored. Director Edelen: Thanked Director Burnett and stated a definitive determination on whether to support public or private ownerships has not been made; two (2) out of the three (3) desal projects are private; supports whatever alternative can provide the most amount of water for the least possible cost.

President Della Sala opened the floor for public comment.

• George Riley - Spoke in favor of Director Burnett and City Attorney

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Freeman’s analysis; asked the Authority to point out to CalAm if they take risks and fail, they should not be awarded. • Nelson Vega – Asked Authority to focus on growth issue of more water at a higher cost for the higher usage consumers. • Tom Rowley - Shared that his monthly water charges have increased dramatically in a short period of time. • George Schroeder - Asked the Board define the meaning of partial ownership. • Harvey Billig - asked Authority to concentrate on developing a community consensus to use as a guide when making decisions. • Unidentified member of the public – Asked the Authority to consider individuals and families of lower income when making decisions.

President Della Sala asked Monterey Peninsula Water Management District General Manager, David Stoldt, to state his comments.

Mr. Stoldt shared: -Regarding Finance: District stands ready to be public partner if a public partner is needed if CalAm can not get state revolving fund loans because they are a private entity; District has discussed doing tax exempt financing with or without public ownership; District will be proposing a finance plan and identifying affiliated issues, a draft will be made available to view before submittal. -Regarding Governance: District is interested in working with the Mayors to find a workable governance structure.

• An unidentified member of the public - Commented on the number of tiers that are proposed into the projects and asked the Authority to focus on the highest tier.

No further comments, public comment closed.

A details discussion ensued regarding potential partnerships and structures.

President Della Sala asked for consensus to appoint an Ad Hoc Committee to work with the Water Management District or any public agency who would like to assist in reducing the costs of financing and looking at partial public ownership.

President Della Sala stated the Ad Hoc Committee will be meeting with Cal Am representatives and asked if there were any objections.

No objections.

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A details discussion ensued regarding finance, ownership and governance; the appropriate timing of discussions; the transparency and make-up of Ad Hoc Committee meetings; concerns around accuracy of news articles; accuracy of information disseminated to the public, and; possible areas to keep the public and press updated on the activities of the Authority.

C. Appointment of subcommittee to meet with CalAm to discuss governance and other issues.

President Della Sala asked that item 6 C be withdrawn.

M/S/C (DELLA SALA/EDELEN) motion to withdraw item 6 C from the agenda. MOTION CARRIED (6-0-0-0)

President Della Sala opened the floor for public comment.

• Tom Rowley – Spoke to personal observations and asked Authority to not limit conversations with existing water agencies, but rather be creative with options and partnerships. • Nelson Vega – Thanked Director Garcia; asked Authority for efficiency and transparency; asked that a Water Purchase Agreement be discussed right away. • Libby Downey - Recommended Ad Hoc Committee be created, vet processes and bring back to the Authority to make decisions; reminded Authority they have no control over the media and headlines. • Ralph Rubio – Concerned that the general public does not attend meetings and encouraged the Authority to find a way for better community outreach.

No further comments, public comment closed.

President Della Sala established that Authority consensus was for him to appoint an Ad Hoc Committee to meet with CalAm.

7. ADJOURNMENT The meeting was adjourned at 9:00 p.m.

Respectfully submitted,

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______Samantha Sakhrani Acting Agency Clerk ATTEST:

______Chuck Della Sala President

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MINUTES MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) Special Meeting 6:00 PM, Wednesday, September 12, 2012 COUNCIL CHAMBER FEW MEMORIAL HALL OF RECORDS

CALL TO ORDER

President Della Sala called the meeting to order at 6:00 p.m.

ROLL CALL

Dir ectors Della Sala, Bachofner, Burnett, Edelen, Garcia, Alternate Director Carbone Present: Absent: Director Pendergrass Staff Present:

PLEDGE OF ALLEGIANCE

PUBLIC COMMENTS

President Della Sala opened public comments on items not on the agenda. David Armanasco spoke in representation of Deep Water Desal presenting an update on the reporting progress and communication with the SPI Consultants. He indicated that on September 12, 2012 Deep Water Desal released a comprehensive preliminary study on the modeling of potential impacts from the operations of a desalination facility open intake, which was prepared by Tamara Environmental and will be moving forward with a validation study. Having no further requests to speak from the public, President Della Sala closed public comment.

REPORTS FROM BOARD DIRECTORS AND STAFF

President Della Sala reported that the County of Monterey voted unanimously to become a member of MPRWA and allocated $83,000 in funding to the MPRWA Joint Powers Authority, noting that at the September 27, 2012 meeting the MPRWA Board will vote on this item.

Director Garcia reported that a letter was received from the Farm Bureau of Monterey supporting the appointment and participation of the County of Monterey with the MPRWA.

1. Receive Report from Technical Advisory Committee (TAC) - Stoldt

a. Receive Preliminary Scoping and Constraints Evaluation Memorandum from SPI Consultants (Discussion) Action: Report Received and Discussed

TAC Chair Dave Stoldt presented the agenda report, recommending all projects remain in consideration for cost comparison. Chair Stoldt indicated that Consultant Kris Helm will be at the September 17th, 2012 TAC meeting to report on preliminary conclusions about CEQA and permitting processes as well as conduct site visits to evaluate the projects sites. Chair Stoldt noted that the extension of the CPUC schedule will result in a more comprehensive analysis.

Director Edelen requested that the consultant verify the information received from the various projects for accuracy.

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Director Garcia asked for an update on funding for SPI Consultants. On question, Director Edelen stated that funding had not been exhausted.

Director Burnett asked if documents, such as the Consultants reports, were available for the public and Chair Stoldt stated the website has been updated and documents like these and others have been be made available on the website.

President Della Sala opened the floor for public comment on the item. Tom Rowley representing the Monterey Peninsula Tax Payers Association expressed appreciation for the credible, unbiased work the consultants are doing and expressed concerns over the ruling of the Administrative Law Judge about the problems of California American Water (Cal Am) project's contingency plan, and thanked MPRWA members for their leadership.

Nelson Vega requested that the consultants conduct their comparison of projects uniformly, clearly expressing the differences between each project based on cost. Mr. Vega suggested taking all successful parts of each project to create a new project. He also requested the Board be less concerned about the deadline and more concerned about providing a project at a reasonable cost to the public.

Chair Stoldt stated he will request that SPI Consultants provide a matrix of major components, costs and a pro/con analysis of each project. Having no further requests to speak President Della Sala closed public comments. b. Consider Qualitative Risk Evaluation (Discussion) Action: Report Received and Discussed

Chair Stoldt presented the agenda report prepared by TAC, which emphasized key categories of risk edited by all members of the TAC and that the TAC satisfied the requests of all 5 agencies. President Della Sala opened the item for comments from the Board.

Director Garcia requested a description of ratings and results and Director Edelen questioned why risk factors were assigned differently to each project. Chair Stoldt responded with a brief description of key areas of concern. President Della Sala said these areas will be reviewed by TAC after the consultants have completed the final reports.

President Della Sala opened the floor for public comment on this item. TAC Member Riley commented that the purpose of this review by TAC was to establish a set of categories to work from as an early warning system, identify possible areas of risk, and to ensure these categories are addressed before the projects are too far along in the process.

Ralph Rubio asked if the two alternate projects under consideration clearly defined their desires for a governance structure. TAC Chair Stoldt responded that the two other projects have detailed their desires for a governance structure which would possibly entail a multi-jurisdictional Joint Powers Authority.

Nelson Vega expressed concerns about the objectivity of the analysis, as well as expressed the need to address a water purchase agreement. Chair Stoldt responded that a water purchase agreement would be required.

Monterey Peninsula Regional Water Authority MPRWA SpecialMeeting, Meeting 9/27/2012 Minutes , Item - Wednesday, No. 4., Item September Page 2, 12, Packet 2012 Page 18 2 MPRWA Minutes Wednesday, September 12, 2012

Tom Rowley spoke in support of the evaluation indicating TAC did a reasonable job with the information available. He encouraged the MPRWA to focus on three issues; technical feasibility, cost factors, and deliverability. Having no other requests to speak, President Della Sala closed public comment.

Director Garcia expressed concern that the information is dated and questioned if the SPI Consultants would be able update the risk assessment. Chair Stoldt noted that it was not part of the original agreement, but that they could discuss the addition to the scope of work. The MPRWA members indicated by general consensus to a disclaimer that this document was a snap shot in time to provide information and was not an adopted report.

Director Edelen expressed appreciation to TAC for their report and requested SPI Consultants to communicate with TAC to understand how they came to their conclusions, then continue with an independent analysis. Director Bachofner supported Director Edelen's comments about knowledge transfer.

2. Consider Public Governance, Finance and Ownership of California American Water (Cal Am) Project (Discussion/Action/Direction) Action: Report Received, Discussed and Direction Given

President Della Sala introduced the item and requested discussion, action and direction indicating there was a deadline for a written proposal to be received by the CPUC by October 1, 2012

TAC Chair Stoldt presented the agenda report specifying the opportunity to present to the CPUC a proposal addressing public governance of the Cal Am desalination project. A coordinated meeting between MPRWA, MPWMD, the County of Monterey, and Cal Am resulted in a draft framework for governance, acceptable to the Cal Am proposal but not to any parallel project or other public project that may be presented.

Director Burnet clarified that this is an opportunity to present a proposal for public participation for the Cal Am project only, and this project has not been endorsed by the MPRWA.

President Della Sala opened the floor for public comment on this item. TAC Member Riley encouraged the proposal be written to the needs of the MPRWA and the public and not be written for acceptance. Director Burnett agreed with Mr. Riley and suggested a re-ordering of the criteria listed in the draft proposal. Ralph Rubio spoke in support of George Riley's comments.

Doug Wilhelm expressed a desire to not reveal all strategic positions at the beginning to put the MPRWA in a better negotiating stance.

Nelson Vega voiced concerns about public governance over a private company. George Schroeder spoke to Mr. Vegas’ comments regarding representation of customers in the ownership and operation of the facility. President Della Sala reiterated the discussion today is due to the deadline for response to the CPUC and that the MPRWA has not endorsed one specific desalination project.

Tom Rowley suggested requesting an extension from the CPUC Administrative Law Judge. Having no more requests to speak, President Della Sala brought discussion back to the Board.

Monterey Peninsula Regional Water Authority MPRWA SpecialMeeting, Meeting 9/27/2012 Minutes , Item - Wednesday, No. 4., Item September Page 3, 12, Packet 2012 Page 19 3 MPRWA Minutes Wednesday, September 12, 2012

Director Edelen expressed concern over the timeline imposed by the CPUC and wants to ensure the MPRWA is giving proper weight to each project.

Chair Stoldt said there are three opportunities to be heard by the CPUC, however the testimony phase (the October 1, 2012 deadline) is the most effective. Mr. Stoldt also stated that the MPRWA has not supported the Cal Am project over any other project.

Director Burnett added that the MPRWA previously submitted correspondence to the CPUC. They responded by requesting a more solid proposal and provide details of the desired governance structure. Vice President Bachofner and Director Burnett discussed the level of risk that each jurisdiction was willing to invest.

Director Edelen expressed concern of potential decisions that could raise the total cost of the projects, and therefore subsequently the cost of water to the ratepayers, citing for example, the requirement for Leadership of Environmental Energy and Design (LEED) certification for buildings.

President Della Sala called a recess at 7:55 p.m. and reconvened the meeting at 8:05 p.m.

Director Bachofner suggested a reorganization of the draft proposal moving category B, items 1 and 6, having the most profound impact on the rate payers, be moved to category A. Also he stated moving category C, item 1, to category B. Listing categories A, B, & C in descending importance. The Board discussed the movement of items within the document.

Director Burnett stated for the record that the MPRWA is not going to take the strategic lead on this item but will support that of the MPWMD. Director Edelen agreed, but specified that the City of Del Rey Oaks will not pledge any financial funds at this time.

On a Motion by President Della Sala, seconded by Vice President Bachofner, and carried by the following vote, the MPRWA moved to direct Attorney Russ McLaughlin to submit the letter to the CPUC and Cal Am indicating that the MPRWA wishes to form a governance committee consisting of three public entities, MPRWA, MPRWD and Monterey County Water Resources Agency, which would be comprised of one elected member and one staff member from each agency; and to move forward with categories A, B and C, and the list of items under each of the respective categories with the exception of category B, item 1, which is the actual performance and adoption of value engineering recommendations and category B, item 6, which is the approval of major change orders over one million dollars; and that the MPRWA considers moving those to items from category B to category A subject to legal consideration of those items; and if after hearing the legal opinion, the ad hoc committee may decide to move the items.

AYES: 6 DIRECTORS: Della Sala, Bachofner, Burnett, Edelen, Garcia, Carbone (Sand City Alternate) NOES: 0 DIRECTORS: None ABSENT: 1 DIRECTORS: Pendergrass ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None

Monterey Peninsula Regional Water Authority MPRWA SpecialMeeting, Meeting 9/27/2012 Minutes , Item - Wednesday, No. 4., Item September Page 4, 12, Packet 2012 Page 20 4 MPRWA Minutes Wednesday, September 12, 2012

On a motion by Director Burnett, seconded by Vice President Bachofner and carried by the following vote, the MPRWA Board approved that the MPRWA work with the Monterey Peninsula Water Management District (the District) and assist in being a public partner in financial issues, and request that the CPUC direct Cal Am to accept the financing decisions of the District in terms of what will lead to the lowest cost financing. The decision would rest with the District and that they would go through the District and Cal Am would go through the 6 steps outlined in this memo. For example and not limiting to the item 3, change the “I.e.” to “for example, the Monterey Peninsula Water Management District”.

AYES: 6 DIRECTORS: Della Sala, Bachofner, Burnett, Edelen, Garcia, Carbone (Sand City Alternate) NOES: 0 DIRECTORS: None ABSENT: 1 DIRECTORS: Pendergrass ABSTAIN: 0 DIRECTORS: None RECUSED: 0 DIRECTORS: None

APPROVAL OF MINUTES

3. August 23, 2012

Vice President Bachofner requested item number 8, section B, be modified by the following; "Vice President Bachofner clarified Seaside was not urging the Authority to change its position immediately, but wants all other cities on the Monterey Peninsula to understand the City of Seaside advocates strongly for not just replacement of water in the future, but for growth water as well." Mr. Bachofner also requested under Public Comments, Bill Lude be changed to Bill Hood and requested the audio be reviewed to properly identify the public speaker listed as "Helm".

Motion to Approve August 23, 2012 minutes as amended

AYES: 5 DIRECTORS: Della Sala, Bachofner, Edelen, Garcia, Carbone (Sand City Alternate) NOES: 0 DIRECTORS: None ABSENT: 1 DIRECTORS: Pendergrass ABSTAIN: 1 DIRECTORS: Burnett RECUSED: 0 DIRECTORS: None

PUBLIC COMMENTS

President Della Sala opened public comments on items not on the agenda. Interim Executive Director Dunn presented a report that the Ad hoc committee gave direction on the selection of Legal Services and Executive Director position, but did not place the item on the agenda for approval because it was a special meeting and no action could be taken. Mr. Dunn requested the item be placed on the September 27th, 2012 agenda, however interviews would need to take place prior to that meeting and suggested the boards consider a special meeting to interview candidates. After discussion, the board agreed to agendize the selection of Legal Services by reviewing the top four recommended candidates from the ad hoc committee, in open session, as well as agendizing a discussion of the necessity of appointing an Executive Director. Director Edelen remarked Chair Stoldt is doing a fantastic job coordinating the TAC.

Monterey Peninsula Regional Water Authority MPRWA SpecialMeeting, Meeting 9/27/2012 Minutes , Item - Wednesday, No. 4., Item September Page 5, 12, Packet 2012 Page 21 5 MPRWA Minutes Wednesday, September 12, 2012

ADJOURNMENT

Having no further business to come before the board President Della Sala adjourned the meeting at 9:00 p.m.

ATTEST:

Lesley Milton, Authority Clerk President, MPRWA

Monterey Peninsula Regional Water Authority MPRWA SpecialMeeting, Meeting 9/27/2012 Minutes , Item - Wednesday, No. 4., Item September Page 6, 12, Packet 2012 Page 22 6 Monterey Peninsula Regional Water Authority Date: September 27, 2012

Agenda Report Item No: 5.

FROM: Christine Davi, Monterey City Attorney

SUBJECT: Consider the Selection of Legal Counsel and Authorize the President to Execute a Professional Services Contract with the Selected Firm/Attorney

RECOMMENDATION: That the Monterey Peninsula Regional Water Authority receive a report and select Legal Counsel, and authorize the President to execute a professional services contract with the selected firm/attorney.

POLICY IMPLICATIONS: Section 4.7 of the Joint Exercise of Powers Agreement authorizes the Monterey Peninsula Regional Water Authority to contract for attorney services.

FISCAL IMPLICATIONS: Fiscal impact will depend on the amount of attorney services utilized, and the hourly rate.

ENVIRONMENTAL DETERMINATION: The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project.

ALTERNATIVES CONSIDERED: The Monterey Peninsula Regional Water Authority could choose not to retain legal counsel. This alternative is not recommended. As a public entity, the Monterey Peninsula Regional Water Authority may bring lawsuits and be sued. Current issues surrounding the Peninsula’s water supply are highly charged and prone to litigation. As a public entity, the Water Authority must also comply with several laws including the Brown Act, the Public Records Act, and Fair Political Practices Commission regulations, requiring legal guidance.

DISCUSSION: The Request for Qualifications was issued on Friday, August 10, 2012, and 21 responsive proposals were received.

№06/12 MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 1, Packet Page 23

The ad hoc committee consisting of Mayor Garcia and Mayor Pendergrass reviewed the 21 proposals, and recommends for your consideration the following four firms:

1. Atchison, Barisone, Condotti & Kovacevich (Attachment 1) Hourly rate: $250 Principal Attorneys $200 Associates

2. L+G, LLP (Attachment 2) Hourly rate: $250 Principal Attorneys

3. Perry and Freeman (Attachment 3) Hourly rate: $250 Principal Attorney or, alternatively, $2,500 per month

4. The Thompson Law Office (Attachment 4) Hourly rate: $270 Principal Attorney

The foregoing firms are qualified and recommended by the subcommittee based on their knowledge and experience in advising public entities, familiarity with the Monterey Peninsula, familiarity with current water supply issues, and their hourly rates.

It is requested that the Monterey Peninsula Regional Water Authority review the attached proposals and select Legal Counsel. If Legal Counsel is selected, then it is requested that authority be given to the President to execute a professional services contract with the selected firm.

Attachments: 1. Proposal - Atchison, Barisone, Condotti & Kovacevich 2. Proposal - L+G, LLP 3. Proposal - Perry and Freeman 4. Proposal - The Thompson Law c: Atchison, Barisone, Condotti & Kovacevich L+G, LLP Perry and Freeman The Thompson Law

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 2, Packet Page 24 LAW OFFICES ATCHISON, BARISONE, CONDOTTI & KOVACEVICH A PROFESSIONAL CORPORATION

PO BOX 481

WIN G. BARISONE SANTA CRUZ, CALIFORNIA 95061-0481 TELEPHONE: (831) 423-8383 .NTIIONY P. CONDOTTI WEBS1TE: WWW.ABC-LAW.CONI FAX: (831) 576-2269

GEORGE J. KOVACEVICH EMAIL: [email protected] BARBARA H. CliOI SUSAN E. BARISONE CAI A. ARELLANO RECEIVED S. ADAIR PATERNO I CELESTIAL S.D. CASSMAN (1976-20I1) AUG 2 4 2012

CITY ATTORNEYS OFFICE August 23, 2012 I

Christine Davi City Attorney, City of Monterey City Hall 580 Pacific Street Monterey, CA 93940

Re: Monterey Peninsula Regional Water Authority Legal Services Proposal

Dear Ms. Davi:

I am pleased to submit the enclosed proposal to serve as Legal Counsel to the Monterey Peninsula Regional Water Authority. As further detailed in our proposal, Atchison, Barisone, Condotti & Kovacevich is a full-service law firm which has specialized in providing comprehensive legal services to public agency clients for over forty years. We believe that our experience and qualifications are well suited to the needs of the Monterey Peninsula Regional Water Authority.

am furnishing you, along with our proposal, detailed resumes for myself and my associates, Barbara H. Choi, Caio Alaimo and Adair Patemo, who would provide support and serve as back-up ifl am unavailable. If you have any questions or require additional information, please do not hesitate to contact me at (831) 423-8383.

Thank you for your consideration.

Sincerely,

Anthony P. Condotti

Enclosures

ATTACHMENT

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 3, Packet Page 25 LAW OFFICES ATCHISON, BARISONE, CONDOTTI & KOVACEVICH A PROFESSIONAL CORPORATION

PO BOX 481 'N G. BARISONE SANTA CRUZ, CALIFORNIA 95061-0481 TELEPHONE: (831) 423-8383 .110NY P. CONDOTT1 WEBSITE: WWW.ABC-LAW.COM FAX: (831) 576 - 2269 GEORGE J. KOVACEV1C11 EMAIL: [email protected] BARBARA R. Cf101 SUSAN E. BARISONE CAIO A. ARELLANO S. ADAIR PATERNO CELESTIAL S.D. CASSMAN (1976-2011)

MONTEREY PENINSULA REGIONAL WATER AUTHORITY

LEGAL SERVICES PROPOSAL

August 24, 2012

(For additional information please contact Anthony P. Condotti)

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 4, Packet Page 26 INTRODUCTION

Atchison, Barisone, Condotti & Kovacevich is a full-service law firm dedicated to providing comprehensive legal services to public agencies. Our firm serves as City Attorney for Santa Cruz, Capitala, and Half Moon Bay, Legal Counsel to the Santa Cruz Redevelopment Agency, General Counsel to the Pajaro Valley Water Management Agency and Pajaro River Watershed Flood Prevention Authority, and legal counsel to several other special districts in Santa Cruz, Santa Clara and San Mateo Counties. We handle all necessary document drafting and review, attend meetings, and provide legal opinions and advice to board members, directors, managers and staff.

We have served as special counsel to a number of cities statewide, and are included by the City of Sacramento in its list of approved outside counsel for land use and environmental issues. We also handle all facets of public agency litigation, including: civil rights, tort liability, environmental, employment, contracts, personal injury, construction defects, disaster issues, Proposition 218 and other restrictions on taxes and fees, recreational accidents, real estate disputes, inverse condemnation, eminent domain, constitutional law, nuisance abatement and toxic pollution.

Atchison, Barisone, Condotti & Kovacevich is a local public agency law firm dedicated to providing the finest legal services at affordable rates.

I. STATEMENT OF QUALIFICATIONS

A. Attorney Experience and Qualifications.

1. Partners:

Anthony P. Condotti

Anthony Condotti serves as City Attorney for the City of Half Moon Bay, Assistant City Attorney for the Cities of Santa Cruz and Capitola, and as legal counsel to a number of special districts in and throughout the San Francisco and areas. He serves on a list of approved special counsel to the City of Sacramento for environmental, hazardous waste and land use matters, and as special counsel on real estate acquisition matters to the Santa Cruz Metropolitan Transit District.

Since his admission to the California Bar in 1990, Mr. Condotti's legal career has been dedicated to providing comprehensive legal services to public entities. He routinely handles a broad range of issues affecting public entities, including day to day advice concerning compliance with the Brown Act, Public Records Act and Political Reform Act. He has extensive experience in matters involving environmental and land use laws and regulations, such as the Coastal Act, Subdivision Map Act, Permit Streamlining Act, Endangered Species Act, CEQA and NEPA. He is also well-versed in election law, including initiatives, referenda, qualifications

ATCHISON, BARISONE, CONDOTTI & KOVACEVICH Legal Services Proposal - Monterey Peninsula Regional Water Authority Page 1 MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 5, Packet Page 27 for holding elective office, vacancies, etc. He regularly advises public agency clients on revenue and finance issues, including compliance with Propositions 13, 62 and 218. He has substantial experience in all aspects of labor and employment law, including collective bargaining and employment contract negotiations, grievance and disciplinary arbitration proceedings, preparing and implementing personnel policies, and compliance with applicable labor laws and regulations.

Mr. Condotti also has extensive experience with respect to resolutions and ordinances that formalize the actions and policies of public entities, from initial conception and drafting to adoption, implementation and, ultimately, defending their validity. He also routinely drafts and negotiates agreements on a broad range of issues, such as real estate, redevelopment, labor, solid waste franchises, procurement and public works construction, water supply, employment, consulting services, and joint powers authorities. He has handled numerous real property transactions, including those involving hazardous materials issues, negotiating and documenting the acquisition transaction to minimize and control the risk of environmental liability.

He is an experienced litigator at both the trial and appellate level, with substantial experience in land use, eminent domain and inverse condemnation litigation. He has handled a large variety of litigation matters for public entities, including, but not limited to: civil rights, dangerous conditions of public property, personal injury, employment, sexual harassment and discrimination, construction, environmental contamination, real estate, election issues and taxation. At the appellate level, he has handled several successful appeals resulting in a number of reported appellate decisions. (See detailed resume for listing of published decisions).

Mr. Condotti is a member of the League of California Cities City Attorneys Department and has served on the League's Municipal Law Handbook Committee. He has also served as a member of the ACWA Legal Affairs Committee, and the Attorneys Committee of the California Association of Sanitation Agencies (CASA). He was admitted to the California Bar in 1990 after graduating with honors from the UCLA School of Law. Before joining our firm in 1993 he was an associate with the Los Angeles law firm of Burke, Williams & Sorensen, where he served as Assistant City Attorney for the Cities of Mission Viejo and Dana Point.

John G. Barisone

John G. Barisone received his Bachelor's degree cum laude in 1975 and Juris Doctor with honors in 1979 from the University of San Francisco. He first practiced for five years in San Francisco with an emphasis in civil litigation. He next served as a trial deputy in the civil division of the San Mateo County Counsel's office for four years. While with San Mateo County, he served as attorney for the County Sheriffs Department, Building Inspector, Social Services Department and Agricultural Commissioner. In 1987 he joined the firm, serving as Assistant City Attorney for the City of Santa Cruz and representing the firm's other public agency and private sector clients in civil litigation matters. In 1990, the Santa Cruz City Council appointed Mr. Barisone to serve as the Santa Cruz City Attorney. He was also appointed to serve as City Attorney for the City of Capitola in 2001. Mr. Barisone is an active member of the League of California Cities City Attorneys Department. He has served on the League's Legal Advocacy Committee, Public Records Act Committee, Municipal Law Handbook Committee,

ATCHISON, BARISONE, CONDOTTI & KOVACEVICH Legal Services Proposal - Monterey Peninsula Regional Water Authority Page 2

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 6, Packet Page 28 Community Services Policy Committee, and has made several presentations at League conferences.

George J. Kovacevich

George J. Kovacevich received his Bachelor's degree from the University of Santa Clara in 1967 and his Juris Doctor in 1970 from the University of San Francisco. After law school, he practiced for one year as a research attorney for California's First District Court of Appeal in San Francisco. Thereafter, he served as an assistant and the chief deputy district attorney in the Santa Cruz County District Attorney's Office for a cumulative period of fifteen years. In that capacity he tried 180 jury trials, many of which involved major crimes. He also had supervisory duties over municipal and superior court operations as an assistant district attorney and was in charge of the entire office as the chief deputy. From 1994 to 1998, Mr. Kovacevich was an associate with the California law firm of Dooley and Herr located in the San Joaquin Valley. During that time, Mr. Kovacevich was engaged in state and federal civil and criminal trial litigation and appellate practice, business and commercial law, partnership and corporate law, employment law, environmental law, personal injury law, and land use law. He also provided mediation services for family, business, civil and organizational disputes. Mr. Kovacevich has been a judge of the Superior Court of Santa Cruz County, assigned to the civil calendar and appellate division. He joined our office in December 2000, and his practice currently emphasizes civil litigation in state and federal courts.

2. Associates:

Barbara H. Choi

Barbara Choi graduated in 1986 from the University of California at Berkeley with a Bachelor's degree in English Literature. She received her law degree in 1991 from the University of California at Los Angeles where she served as Articles Editor/Book Review Editor for the Journal of Environmental Law & Policy and served as Student Bar Association Treasurer. She was a litigation associate at the Los Angeles offices of Pepper, Hamilton & Scheetz, and then Graham & James, practicing in the areas of business, environmental and real estate law. In 1994 she joined the litigation department at the Office of the Santa Clara County Counsel where she specialized in employment, constitutional law, and premises liability matters. Ms. Choi joined the firm in May 2000. She advises many of our public entity clients, with a particular emphasis on labor and employment law. She provides estate planning services and also handles complex litigation, including land use, premises liability, writs of mandate, employment, eminent domain, environmental, and real estate matters.

Susan E. Barisone

Susan Barisone received her Bachelor's degree cum laude in 1976 from Gonzaga University. She graduated cum laude in 1982 from the University of Santa Clara School of Law, where she served as Comments Editor for the Santa Clara Law Review. She joined the Pacific Bell Corporate Legal Department in 1982 where she specialized in Federal Communications

ATCHISON, BARISONE, CONDOTTI & KOVACEVICH Legal Services Proposal - Monterey Peninsula Regional Water Authority Page 3 MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 7, Packet Page 29 Commission law, taxation, accounting, contracts, intellectual property and legislation. She served as Deputy City Attorney in the Santa Cruz City Attorney's office from 1987 to 1992 and rejoined the firm in January, 2002 where she serves as Deputy City Attorney for the Cities of Santa Cruz, Capitola, and Half Moon Bay and counsels the firm's other public agency clients.

Caio Arellano

Caio Arellano joined the firm in October 2008 and practices public and municipal law. He earned his Bachelor's degree in political science from the University of Michigan, Ann Arbor in 1999 and his Juris Doctor from the University of San Francisco School of Law in 2008. Prior to joining the firm, Mr. Arellano served as the law clerk for the City Attorney for the City of Livermore, where he worked on a broad range of municipal law issues including land use and development, public contracts, airport management, and revenue/finance. During law school, Mr. Arellano was a member of the Moot Court team and competed in the Thomas Tang National Moot Court Competition. He was also a Frank C. Newman Intern in the USF International Human Rights Clinic and attended the 7th session of the United Nations Human Rights Council in Geneva, Switzerland. There, he advocated for greater accountability for human rights abuses committed by transnational corporations. Mr. Arellano remains committed to advancing international human rights and corporate responsibility standards as a member of Human Rights Advocates, a non-governmental organization with consultative status to the United Nations.

S. Adair Paterno

S. Adair Paterno graduated from UC Davis School of Law (King Hall) and was admitted to the California State Bar in 2006. Ms. Paterno's practice emphasizes litigation in state and federal courts. Prior to joining Atchison, Barisone, Condotti & Kovacevich, Ms. Patent° practiced real estate litigation at Miller Starr Regalia where she represented clients in a wide range of real property disputes. Her practice focused on eminent domain, landlord/tenant issues, escrow liability, contract disputes, title insurance coverage, and general business litigation. While in law school, Ms. Paterno was an editor for the U.C. Davis Law Review and a Constitutional Law teaching assistant. She also worked as a research assistant to a law professor and completed the King Hall Public Service Program. Ms. Paterno received her undergraduate degree from UC Santa Cruz in 1999.

II. PROPOSED STAFFING

A. Legal Counsel.

We propose Anthony Condotti for appointment as Legal Counsel with support from associates Barbara H. Choi, Caio Arellano and Adair Paterno as needed. Detailed resumes for each listing their respective experience and qualifications are attached.

ATCHISON, BARISONE, CONDOTTI & KOVACEVICH Legal Services Proposal - Monterey Peninsula Regional Water Authority Page 4 MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 8, Packet Page 30 B. Our Philosophy Regarding the Practice of Public Law and Relationships with the Board and Staff.

Our firm's overall philosophy in providing counsel to, and representing, public agencies is rooted in a single fundamental principle. The Board makes policy, i.e. political decisions. As Legal Counsel, our job is to provide the legal framework within which those decisions, first of all, can be fully informed, and, once made, can be implemented efficiently and effectively. To do so, we constantly strive to remain abreast of new legal developments, and maintain a large law library with an extensive collection of materials pertaining to all aspects of public agency law accumulated over the 40-plus years the firm has been providing legal services to public agencies.

Other notable traits you have a right to expect in your Legal Counsel include those which we believe have characterized this office in the past and which our firm would strive to bring to the Water Authority. These include: integrity; the ability to communicate clearly and concisely; a mature, but not overly formal demeanor; a businesslike and professional appearance; a scholarly but practical approach to legal issues; the ability to listen and be sensitive to the concerns of others; creativity; courtesy; diplomacy; decisiveness; and diligence.

Legal Counsel should bring these traits to bear not only when dealing with issues of major importance, but also with respect to his or her more mundane duties which often go unnoticed by all but those directly affected. We are proud of this office's tradition of professional competence and the high level of legal expertise with which our firm serves public agencies in California. We feel we have the personal and professional qualifications and commitment to bring that tradition to the Water Authority. We would be honored by the opportunity and challenge to serve you.

C. Structure of Relationships with Directors and Other Agencies.

The Legal Counsel should be a policy implementer, not a policy maker. Accordingly, in addition to having the professional qualifications to provide the necessary legal services, the Legal Counsel should be apolitical yet politically sensitive. This, in turn, requires us to maintain a strong, but strictly impartial, working relationship with all Directors. Also of great significance is our ability to integrate and coordinate with other staff members, especially at the management level. Unless the Legal Counsel is cognizant of the manner in which the Water Authority operates, as well as the abilities and limitations of individual staff members, he or she cannot competently advise the Water Authority with regard to matters that presuppose the input of those individuals. In addition, unless Legal Counsel has a solid working relationship with staff, his or her ability to effectively provide counsel with regard to daily questions and concerns will be impaired. The key to ensuring that our working relationships with Directors and staff remain effective is to have clear, open lines of communication, to maintain an open-door policy for requests for legal assistance, and to provide frequent reports and updates on the status of projects and matters so that timely decisions can be made as circumstances change.

Our philosophy in providing legal services is to, as much as possible, be available to Directors and staff as would a typical "in-house" legal counsel. This philosophy has evolved

ATCHISON, BARISONE, CONDOTTI & KOVACEVICH Legal Services Proposal - Monterey Peninsula Regional Water Authority Page 5 MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 9, Packet Page 31 from our decades-old relationship with the City of Santa Cruz, in which Councilmembers and Staff routinely drop in from the City of Santa Cruz's administrative offices located directly across the street. To foster a similar relationship with our other public agency clients, we offer a discounted rate for travel time to and from meetings and office hours.

D. Style of Participation in Meetings and Workshops.

Our style of participation in meetings and workshops is largely guided by our philosophy in furnishing legal services to our public agency clients. We strive to identify potential legal issues and bring them to the Board's attention early on—preferably before the meeting at which the issue may be discussed or addressed. During meetings our participation is typically limited to identifying and advising Board and staff on legal matters, unless in response to a particular request for perspective on policy or other matters.

E. Keeping the Water Authority Informed/Reporting on status of projects, requests and litigation.

In addition to frequent email updates on the status of litigation and other pending matters, we would anticipate providing a regular "Legal Counsel's Report" at Board meetings, at which any pending items and other significant legal issues such as proposed legislation may be discussed. Additionally we would anticipate providing monthly status reports on any pending litigation item, as well as frequent updates in closed session when direction from, or consultation with, the Board is required.

F. Evaluating Costs/Benefits of Litigating or Settling Cases.

We strive to undertake a careful analysis of all legal and factual issues early on during any litigation to develop an estimate of the probability of success and the range of potential exposure. The decision whether to settle or litigate must involve balancing those factors and any other issues that may be of concern to the Board, such as whether settlement of litigation will encourage further litigation or create problems from a policy standpoint. At all times, our role must remain limited to providing the Board with information and analysis that will enable the Board to make an informed decision about how the litigation should be handled.

G. Evaluating Whether To Use Our Firm or Another Firm.

In evaluating whether our firm or another attorney or firm should handle a particular case or other matter, we are guided by a single criterion—who would best represent the interests of the Water Authority. We frequently assist our clients in engaging attorneys with specialized expertise in a certain area of the law when the need arises.

H. Role of Legal Counsel with the Public and the Media.

Given the nature of our practice, the issues we deal with are frequently subject to media attention. We strive to maintain cordial and cooperative relationships with members of the

ATCHISON, BARISONE, CONDOTTI & KOVACEVICH Legal Services Proposal - Monterey Peninsula Regional Water Authority Page 6 MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 10, Packet Page 32 public and the media, to the extent possible, and are comfortable responding to inquiries from either. That being said, the extent to which we interact with either the public or the media will be based on the Board's preference. Some agencies prefer that all communications be channeled through the Director or Board President. Others want their legal counsel to be the point-person. We are comfortable dealing with the media and the public in the manner that the Water Authority prefers.

I. Standard Response Times.

Our firm prides itself on providing prompt responses to inquiries both from elected officials and staff. For most day-to-day advice and services (matters involving less than an hour of research/preparation) we are typically able to respond the same day or the following day. Some routine advisory matters, such as Brown Act or Public Records Act compliance, are typically handled over the phone. With respect to other research or labor intensive tasks, we pride ourselves on tailoring our response times in accordance with the clients' needs. Coordination with Water Authority Staff and maintaining open lines of communication are also keys to ensuring that the Legal Counsel's desk does not become a bottleneck for Water Authority business.

J. Review of Background and Issues Currently Facing the Water Authority.

In addition to introductory meetings with Directors and Staff, we would review agendas and minutes to develop a checklist of pending matters or issues, and a time-frame for resolving them. We would anticipate that, for routine matters, such as day-to-day advice on compliance with the Brown Act and Public Records Act, we would receive requests for advice by telephone or email, or in person during regular office hours. To ensure that the Water Authority's legal resources are used efficiently, we propose that requests from staff involving a substantial time commitment be made in writing and be submitted through the Director. Similarly, we anticipate that routine requests for advice from Directors would be made by email or telephone. To ensure that legal resources are not monopolized by individual Directors, requests involving a substantial time commitment may require direction from the Board.

K. Office Staff.

In addition to the attorneys listed above, our office has two paralegals, Jennifer Pasquini and Angela Goble, one full-time receptionist, and a full-time office manager, Kadidia Wegener Cooper. Our office is fully staffed during regular business hours, which are from 8:00 a.m. to 5:00 p.m. Our receptionist answers the phones in person during business hours. Before/after hours, our automated voice mail system is activated enabling clients to reach attorneys' direct lines or voice mail.

L. Computer Resources.

Our office recently replaced our entire computer network and significantly upgraded both the security and reliability of our computer system. With respect to word processing software,

ATCHISON, BARISONE, CONDOTTI & KOVACEVICH Legal Services Proposal - Monterey Peninsula Regional Water Authority Page 7 MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 11, Packet Page 33 we operate Microsoft Word, Corel WordPerfect X3, Excel and PowerPoint. Our network is fully internet connected so files and mail are freely transferrable from the District to any of our work stations. We subscribe to the Lexis/Nexis legal research service and also have access to the full library of resources of the League of California Cities. In addition, we maintain our own office library with the most comprehensive listing of legal research materials for public entities in the County, including the County Law Library.

M. Tracking/Managing Legal Costs.

Legal costs incurred to-date, as well as anticipated future legal costs, will be included in regular reports discussed in Item E. We will also provide monthly statements indicating fees and costs incurred and their basis. Separate statements will be prepared for general legal services and special projects as requested by the Water Authority. We will also provide separate invoices for each separate item of litigation. Statements will identify the name of the person providing service, the date, the time expended, the nature of the work performed and the corresponding charge, and the current balance owed. If necessary to comply with audit requirements, we will happily furnish all supporting documentation to substantiate monthly invoices, including copies of daily timekeeping records and expenses incurred.

N. Professional Liability Insurance Coverage.

Our office carries professional liability insurance in the amount of $1 million per claim and $2 million in the aggregate. We also carry workers' compensation insurance as required by state law, and standard commercial general liability and automobile insurance coverage. If selected, we will work with the Water Authority to ensure mutually acceptable insurance/indemnity provisions are incorporated into the legal services agreement between the Water Authority and our firm.

0. Protecting Client Confidentiality While Benefiting From "In-House" Knowledge and Experience Gained From Representing Other Local Government Agencies.

Because we practice law in the communities in which we live, we are mindful of the fact that maintaining client confidentiality is of the utmost importance. Our associates and staff are trained to refrain from discussing client matters with other clients or outside of the office. We maintain file controls to ensure that only the attorneys or staff members that are actually working on a matter have access to confidential material in our clients' files. For other, non-confidential matters, such as agreement and ordinance templates, we maintain a document bank that we regularly utilize for the benefit of all of our clients.

III. COMPENSATION AND REIMBURSEMENT

A. Basic Legal Services.

We propose to provide legal services at the discounted hourly rates set forth below, in increments of 1/10 hour. Current rates will remain in effect until June 30, 2013:

ATCHISON, BARISONE, CONDOTTI & KOVACEVICH Legal Services Proposal - Monterey Peninsula Regional Water Authority Page 8 MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 12, Packet Page 34 Principals $250 per hour Anthony P. Condotti John G. Barisone George J. Kovacevich Associates $200 per hour Barbara H. Choi Susan E. Barisone Caio A. AreIlan° S. Adair Paterno Travel $145 per hour Paralegals $135 per hour

B. Expense Reimbursement.

We would also charge for costs reasonably and necessarily incurred in connection with the legal services we provide. Costs will normally be advanced and then billed to the Water Authority; however, for substantial cost items (such as expert witness fees), we may request that the Water Authority pay such costs directly. Costs include court filing fees, deposition costs, messenger and express delivery fees, process server fees, long distance telephone and facsimile charges, photocopying, etc. All out of pocket costs will be billed at cost, except as set forth below:

Photocopying: 25 cents per page Telecopying: $1 per page outbound no charge inbound Long Distance Telephone: at cost Mileage: IRS reimbursement rate

IV. TERMINATION OF AGREEMENT

As has been our relationship with the City of Santa Cruz since 1968, and as with all of our other public agency clients, we would serve at the pleasure of the Water Authority, who may terminate our relationship at any time by written notice effective when received by us. If we are the Water Authority's attorneys of record in any proceeding, we will execute and return a substitution of attorney form immediately on request from the Water Authority. We would propose that our agreement specify that we may terminate our agreement at any time upon forty- five (45) days notice, and withdraw from litigation as permitted under the Rules of Professional Conduct of the State Bar of California upon thirty (30) days written notice to the Water Authority. The circumstances under which the Rules permit such withdrawal include but are not limited to (a) the Water Authority consents, (b) the Water Authority's conduct renders it unreasonably difficult for us to carry out our legal representation effectively, or (c) the Water Authority fails to pay fees or costs as agreed.

ATCHISON, BAR1SONE, CONDOTTI & KOVACEV1CH Legal Services Proposal - Monterey Peninsula Regional Water Authority Page 9 MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 13, Packet Page 35 V. CURRENT PRACTICES/CONFLICTS OF INTEREST

A. Political Contributions of Money, In-kind Services or Loans Made To Any Member of the Water Authority Within the Last Three Years by the Firm or Any of Its Attorneys.

None.

B. Public Agency Clients for Which Our Firm Currently Provides Services or is Under Contract.

City of Santa Cruz City of Capitola City of Half Moon Bay City of Livermore City of Sacramento Ben Lomond Fire Protection District Boulder Creek Recreation & Parks District Central Fire Protection District Santa Cruz Redevelopment Agency Pajaro River Watershed Flood Prevention Authority Pajaro Valley Fire Protection District Pajaro Valley Public Cemetery District Pajaro Valley Water Management Agency Salsipuedes Sanitary District Santa Cruz Metropolitan Transit District Saratoga Cemetery District West Bay Sanitary District Zayante Fire Protection District

C. Statement Regarding Conflicts of Interest.

Atchison, Barisone, Condotti & Kovacevich has no conflicts of interest with the Monterey Peninsula Regional Water Authority. Atchison, Barisone, Condotti, & Kovacevich has not opposed the Water Authority in litigation nor does Atchison, Barisone, Condotti & Kovacevich currently represent any clients with matters pending before or involving the Water Authority.

Professional References

JOHN MULLER LAURA SNIDEMAN Councilmember City Manager City of Half Moon Bay City of Half Moon Bay 50 1 Main Street 501 Main Street Half Moon Bay, CA 94019 Half Moon Bay, CA 94019 (650) 726-8270 (650) 726-8270

ATCHISON, BARISONE, CONDOTTI & KOVACEVICH Legal Services Proposal - Monterey Peninsula Regional Water Authority Page 10 MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 14, Packet Page 36 RONALD W. SHEPHERD CHARLES MeNEISH Board President General Manager West Bay Sanitary District Scotts Valley Water District 1263 San Mateo Drive 2 Civic Center Drive Menlo Park, CA 94025-5524 Scotts Valley, CA 95067 (650) 323-2909 (831) 438-2363

MARY BANNISTER General Manager Pajaro Valley Water Management Agency 36 Brennan St. Watsonville, CA 95076 (831) 722-9292

Additional References Available Upon Request

VI. CONCLUSION

At Atchison, Barisone, Condotti & Kovacevich, we pride ourselves on our history and tradition of providing high quality and affordable legal services to public agencies. We would be honored to continue that tradition with service to the Monterey Peninsula Regional Water Authority. We will be happy to provide you with any additional information that may be of assistance to you in evaluating our experience and qualifications.

DETAILED RESUMES FOR ANTHONY P. CONDOTTI, BARBARA H. CHOI, CATO A. ARELLANO, AND S. ADAIR PATERNO

[See attached]

ATCHISON, BARISONE, CONDOTTI & KOVACEVICH Legal Services Proposal - Monterey Peninsula Regional Water Authority Page 11 MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 15, Packet Page 37 RESUMES

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 16, Packet Page 38 ANTHONY P. CONDOTTI EXPERIENCE (9/93-present) ATCHISON, BARISONE, CONDOTTI & KOVACEVICH, Santa Cruz, CA Shareholder Practice in all areas of local government law; Responsible for: Negotiating and Drafting Agreements, Real Property Transactions, Preparing Ordinances, Providing Legal Opinions, Attending City Council, District Board and Staff Meetings, Litigation at Trial and Appellate Level Involving: Contracts, Writs of Mandate and Administrative Mandamus, Inverse Condemnation, Land Use, Eminent Domain, Environmental, Civil Rights, Construction, Dangerous Condition, Debt Collection, Water and Natural Resources, Employment, Code Enforcement, Public Nuisance Abatement. City Attorney, Half Moon Bay (6/08-present) Assistant City Attorney, City of Santa Cruz (9/93-present) Assistant City Attorney, City of Capitola (9/01-present) General Counsel, Pajaro Valley Water Management Agency (5/2004-present) Legal Counsel to several other special districts in Santa Cruz, Santa Clara and San Mateo Counties

(10/90-9/93) BURKE, WILLIAMS & SORENSEN, Los Angeles/Costa Mesa, California Law Clerk (5/89-8/89) Practice in all areas of municipal law; Responsible for: Attendance at City Council and Planning Commission Meetings, Preparation of Ordinances and Resolutions, Contract Drafting and Negotiation, Legal Opinions and Advice Regarding Land Use and Environmental Law Compliance, Litigation at Trial and Appellate Level Involving Zoning, Land Use, Public Nuisance and Environmental Issues, Initiatives and Referenda, and Prosecution of Municipal Code Violations. Assistant City Attorney, City of Mission Viejo (6/91-8/93) Assistant City Attorney, City of Dana Point (10/91-8/93) (6/88-4/89) MULLEN & FILIPPI, Long Beach, San Francisco: Law Clerk (6/88-4/89) Legal research, discovery, pre-trial preparation. REPORTED Silva v. Crain (9th Cir. 1999) 169 F.3d 608 [statute of limitations on civil rights DECISIONS claim brought under 42 U.S.C. §1983 not tolled by state tort claims act] Langer v. Redevelopment Agency (1999) 71 Cal.App.4th 998 [agency not liable for inverse condemnation where no evidence that redevelopment project results in taking by actual condemnation or its substantial equivalent] City of Santa Cruz v. Superior Court (Bombay) (1995) 40 Cal.App.4th 1146 [legislative privilege and separation of powers doctrine prohibits civil discovery concerning councilmembers' motives and thought processes in land use decisions] Nelson v. Carlson (1993) 17 Cal.App.4th 732 [referendum on city general plan held invalid for failing to comply with Elections Code requirements] EDUCATION University of California, Los Angeles, J.D. May 1990 Member, Moot Court Board; Best Brief Award, UCLA Moot Court Competition (1989); Robert J. Traynor State Moot Court Competition (1990)

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 17, Packet Page 39 University of Colorado at Boulder, May 1987 Bachelor of Arts, English Literature Magna Cum Laude, Phi Beta Kappa, Boettcher Foundation Scholar MEMBERSHIPS State Bar of California (Member, Public Law and Litigation Sections) U.S. District Court, Central and Northern Districts Santa Cruz and Santa Clara County Bar Associations Board of Directors, Santa Cruz County Bar Association (Secretary) League of California Cities California Association of Sanitation Agency Attorneys Committee Association of California Water Agencies, Legal Affairs Committee Rotary Club of Santa Cruz (Board of Directors, 2002-2004) INTERESTS Music, Gardening, Bicycling, Cooking

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 18, Packet Page 40 BARBARA H. CHOI 307 Moore Street Santa Cruz, California 95060 Home (831) 454-9229; Work (831) 423-8383; Cell (831) 818-4986

JRK Atchison, Barisone, Condotti & Kovacevich, Santa Cruz, CA EXPERIENCE Associate (5/00-present) Interim Risk Manager for the City of Santa Cruz (1/06-1/07; 10/10-present) Deputy City Attorney for City of Santa Cruz, City of Capitola, City of Half Moon Bay. Provide legal advice on civil rights, takings, employment, breach of contract, public facility lease, premises liability, real estate, and estate planning issues. Attend City Council and other public agency meetings to advise on litigation matters. Advise and prepare memoranda. Provide risk analysis on public agency claims. Prepare pleadings and motions. Conduct discovery. Attend mediations and arbitrations. Advise private businesses and individuals on real estate contracts, prepare business contracts, leases, and estate plans.

Office of the County Counsel County of Santa Clara, San Jose, CA Deputy County Counsel (2/94-4/00) Advised Board of Supervisors and department heads on constitutional law, premises liability, employment, and personnel matters. Responsible for heavy caseload involving mediations, arbitrations, trials, preparation of pleadings and motions, conducting discovery and depositions. Represented County in Personnel Board hearings. Advised Department of Social Services on child dependency cases. Provided risk analysis for County self- insured claims assessment division.

Graham & James, Los Angeles, CA Associate (12/92-2/94) Represented international telecommunications corporation in multi-million dollar contract action involving distributorship royalties. Extensive client contact in developing and implementing litigation strategy. Prepared all pre-trial motions and trial-related papers. Represented international computer manufacturer in antitrust and patent infringement action. Worked closely with clients in developing case strategy. Advised corporate clients involving partnership agreement dispute. Negotiated and prepared settlement agreements. Worked on all aspects of commercial, real estate and environmental law matters.

Pepper, Hamilton & Scheetz, Los Angeles, CA Associate (10/91-11/92) Advised corporate clients on compliance with anti-competition clause in employment contract. Represented computer manufacturer in antitrust and patent infringement action. Represented clients in commercial lease negotiations. Prepared pleadings and legal memoranda on business, real estate, and environmental law matters.

United States Central District Court, Los Angeles, CA Extern to Honorable Edward Rafeedie, District Court Judge (8/90-12/90) Perfoimed legal research and drafted legal memoranda on law and motion matters.

National Health Law Center, Los Angeles, CA Law Clerk (6/89-8/89) Researched legal issues on lead poisoning and impact on children. Prepared legal brief in class action seeking medical care for indigent pregnant women in California.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 19, Packet Page 41 WORK Mid Peninsula Support Network for Battered Women, Mountain View, CA EXPERIENCE Counselor (1987-1988) (continued) Provided crisis counseling to victims of domestic violence; conducted weekly group counseling and 24 hour on-call counseling. Interfaced with other community organizations to provide resources for clients.

St. Joses Krankenhaus, Paderborn, Germany Nurses' Assistant (1984) Provided medical care to elderly German patients as part of a work exchange program promoting cultural understanding and language fluency.

EDUCATION University of California, Los Angeles, J.D. 1991 Articles Editor/Book Review Editor - Journal of Environmental Law & Policy; Student Bar Association (Treasurer), Faculty/Student Pro Bono Committee, Asian Pacific-Islander Student Bar Association (Academic Support Co-Chair) Asian/Pacific American Legal Center Volunteer

University of California, Berkeley, B.A. 1986 English Literature (Major), German (Minor), Biology (Minot) Health Sciences Cluster Program Leader; Counselor for Minority Student Summer Program

REPORTED CASES Kimes v. Stone, 84 F. 3d 1121 (9t1 Cir. 1996)

PROFESSIONAL State Bar of California (12/91), State Bar Pro Bono Volunteer Award (1992) MEMBERSHIPS Ninth Circuit Court of Appeals United States District Court (Northern and Central Districts) Santa Cruz County Bar Association Estate Planning Council Women Lawyers of Santa Cruz County Santa Clara County Bar Association (Past Member) Asian Pacific Bar Association of Silicon Valley (Past Board Member, Co-Chair of Mentor Committee and Scholarship Committee) Korean American Bar Association of the Bay Area (Past Member) Korean American Bar Association of Los Angeles (Past Member)

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 20, Packet Page 42 CAIO A. ARELLANO

EDUCATION

juris Doctor, University of San Francisco School of Law May 2008 • Advanced Moot Court, Thomas Tang National Competition • CALI Award for Excellence (highest grade) in Forensic Evidence Bachelor of Arts, Political Science, University of Michigan, Ann Arbor May 1999

EXPERIENCE

Atchison, Barisone, Condom & Kovacevich, Santa Cruz, CA Public Law and Litigation Associate October 2008-Present • Provide legal counsel to public agencies on a wide range of issues, including real property/land use, employment, contracts, constitutional rights, open government, and ethics. • Attend meetings of city councils, commissions, and special district boards. Advise public officials on meeting procedures and present legal opinions during closed sessions. • Represent public agencies in civil rights, public premises liability, inverse condemnation, environmental, and landlord-tenant litigation. Experience in all phases of litigation, e.g. discovery, law and motion, summary judgment proceedings, mediation/settlement negotiation. • Extensive research on Subdivision Map Act, revenue/finance, comprehensive code enforcement, and technology issues (e.g. electronic records, internet/social networking use policies, and teIecommuting). • Research and draft resolutions, ordinances, and ordinance amendments.

City Attorney's Office, City of Livermore, Livermore, CA Law Clerk June 2007-October 2008 • Provide advice and legal research on issues facing the Engineering, Planning, Municipal Airport, City Clerk, and Finance departments on various projects. • Prepared research memoranda on CEQA, development impact fees, density bonus law, public works, and public contracts issues. • Served as Administrative Heating Officer on code enforcement appeals. Presided over hearings and issued written findings and orders.

OTHER PROFESSIONAL EXPERIENCE

• Five years of sales and business development experience in internet infrastructure and telecommunications industries • Negotiated strategic alliances and revenue share agreements with software development and consulting firms

PROFESSIONAL MEMBERSHIPS

• State Bar of California, SBN 262168 • United States District Court, Northern District of California • Editorial Board, California Municipal Law Handbook (2012 edition) • Bay Area City Attorneys Association • Bar Associations of Santa Cruz and San Mateo Counties

PERSONAL INTERESTS

• Accomplished triathlete with five Top-20 age group finishes • Competitive Scrabble player

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 21, Packet Page 43 S. ADAIR PATERNO

EDUCATION University of California, Davis School of Law, Davis, CA J.D., 2006 Articles Editor, U.C. Davis Law Review King Hall Public Service Program Tutor, Constitutional Law Witkin Award, Federal Jurisdiction Clinic Participant, U.C. Davis Civil Rights Clinic

University of California, Santa Cruz, Santa Cruz, CA B.A., Sociology, 1999 Departmental Honors

EXPERIENCE Atchison, Barisone, Condotti & Kovacevich, Santa Cruz, CA 11/09-Present Associate Attorney. Advise and counsel public agency clients such as municipalities, water management agencies, and special districts on numerous areas of public law, including public and private land use, eminent domain and inverse condemnation, police policy, and constitutional law. Litigate public and private claims in state and federal courts from inception to trial or settlement. Participate in law and motion practice, discovery management, and case strategy and management for litigation matters.

Miller Starr Regalia, Walnut Creek, CA 06/ 05-08/05; 10/06-11/09 Associate Attorney. Extensive research and legal writing in real estate law, contract law, landlord- tenant, eminent domain, title insurance, and general business litigation. Prepared complaints, answers, mediation briefs, and motions, including motions for preliminary injunction, demurrers, anti-SLAPP motions, and motions to dismiss under Federal Rule of Civil Procedure 12(b)(6). Handled discovery matters, including taking depositions, propounding and responding to interrogatories and document requests, and drafting motions to compel. Performed pro-bono legal services for Bay Area Legal Aid.

ACLU, Drug Law Reform Project, Santa Cruz, CA 01/05-6/05 Legal Intern. Assisted staff attorneys in prosecution of national civil rights cases. Researched and analyzed procedural issues and substantive grounds for various pretrial motions. Prepared opposition to motion to pretrial motion to exclude witnesses.

Dickenson, Peatman, & Fogarty, Napa, CA 06/04-08/04 Summer Associate. Research and analysis regarding land use issues, including special uses for wineries in Napa County. Prepared extensive analysis of American Viticultural Area (AVA) requirements. Authored articles for land use newsletter.

ACTIVITIES Board Member, Walnut Avenue Women's Center; Board Member, California Grey Bears; Member, Santa Cruz County Bar Association

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 22, Packet Page 44 Jeffer;,. R. rjiller. 318'Coyuw Street R. O. Box 2119 Dennis C. Beoughar SaHncc, CA 5Q9n2-2119 Patrick SA. TEL 831-754-2444 Reid TOLL FREE 888-757-2444

- S Reftemr FAX E31-7M-2011 , Rovelid 'BrOdleyt. Sulli'ean „lames W. SuIR..,:on • 530 San Penni" Street RECEIVED Suite 2IT2 E. Soren Diaz Froll[stcr, CA Y,5,0143 Of Caumel TEL 831- ..?0444/1 AUG 2 4 2012 ATTORNEYS AT LAW, LLP FAX 831-630-5935

CITY ATTORNEY'S OFFICE

August 24, 2012

Via Electronic Mail and U.S. Regular Mail

Ms. Christine Davi City Attorney City of Monterey City Hall Monterey, CA 93940

Re: Legal Services for the Monterey Peninsula Regional Water Authority

Dear Ms. Davi:

We are pleased to submit the attached proposal to provide legal services to the Monterey Peninsula Regional Water Authority ("Water Authority"). We are also enclosing a statement of insurance.

L+G, LLP ("L+G", formerly Lombardo & Gilles) has been practicing law in the and Monterey Peninsula for nearly fifteen years. L+G is a multi-service law firm that is widely recognized for its expertise in many areas of law, particularly agribusiness and environmental and land use law. L+G is comprised of a group of experienced attorneys, who have represented public and private entities.

Based on its long standing presence on the Central Coast, L+G is extremely familiar with the historical and current challenges facing the Monterey Peninsula in its quest to secure a safe, reliable, and affordable water supply. Because our attorneys have represented numerous residential, commercial, and hospitality interests throughout the jurisdictional boundaries of the Monterey Peninsula Water Management District ("MPWMD"), L+G is intimately familiar with the rules, regulations and policies of the MPWMD and the overall local and state regulatory framework relating to establishing and maintaining a safe and reliable water supply. In addition and based on its significant impact on many of our clients, L+G attorneys are familiar with the 2009 Cease and Desist Order and actively participated in the State Water Resources Board process in an effort to preserve and protect our clients water credits and allocations. L+G also has considerable experience advising property owners within the California Coastal zone and has successfully shepherded controversial projects through the often complicated Coastal Commission process. ATTACHMENT

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 23, Packet Page 45 Ms. Christine Davi. August 24, 2012 Page 2

We believe that our wealth of knowledge and experience dealing with challenging land use and water supply projects on the Monterey Peninsula combined with our experience representing public agencies in a general and special counsel capacity makes us the best candidate to provide legal services to the Water Authority. We look forward to an opportunity to meet with you and the Water Authority Board to answer any questions about our proposal and our experience.

Thank you for the opportunity to submit this proposal.

Very truly yours,

L+G, LLP

Jason S. Refterer

JSR

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 24, Packet Page 46 Proposal to Provide General Counsel Legal Services to the Monterey Peninsula Regional Water Authority

ATTORNEYS AT LAW, LLP

318 Cayuga Street Salinas, CA 93901 Phone #: (831)754-2444 Fax #: (831)754-2011

e-mail: infoglg-attorneys.com web: www.lg-attomeys.com

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 25, Packet Page 47 Table of Contents

I. Overview of Firm

IL Proposal

III. Public Entity Representation

IV. Real Estate/Land Use Experience

V. Attorney Résumés

VI. References

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 26, Packet Page 48 I. Overview of Firm

L+G, LLP ("L+G", formerly Lombardo & Gilles) is a full service law firm on the Central Coast with an outstanding reputation for providing comprehensive legal services on a wide range of private and public sector matters. Our firm has repeatedly obtained successful results for our public and private clients and has developed strong and positive relationships with local, state and federal public agencies and the officials who head those agencies.

We believe that our firm's local roots and ties to Monterey County gives us an unique ability to understand and address local public agency issues and needs, including those which relate to water supply issues facing our community.

Our attorneys have expertise in municipal and land use law. Our extensive public sector experience makes us uniquely qualified on the Central Coast to provide counsel regarding all issues faced by public entities, including conflicts of interest, Brown Act compliance, and the Public Records Act. Our business department provides insightful advice to all different kinds of corporate entities, and our real estate and land use team is renowned for its success in helping clients realize their dreams.

Our attorneys are known widely for their successful development and presentation of legal seminars offering practical and timely advice on cutting edge legal trends and issues. L+G attorneys have provided workshops and seminars on such topics as the Brown Act, as well as land use, construction, business, litigation and real estate matters. Further, our firm customarily provides news briefs and legislative law updates to our clients, which are done at no cost to the client. The firm is also proud to use the most updated technology in the legal arena to provide a maximum containment of costs, which savings are passed on to our clients.

In addition to offering exceptional legal services to our clients, L+G places a strong emphasis on community involvement and takes pride for its community philanthropy. Our attorneys have assumed leadership roles and are members of numerous community and civic organizations in the Central Coast, including for example, the Salinas Rotary, the Salinas Valley Chamber of Commerce, Partners for Peace, Meals-on-Wheels in Salinas, the National Steinbeck Center, the Salinas Valley Memorial Hospital Foundation, and the Salinas Community YMCA.

L+G also strongly believes in avoiding costly litigation via alternate dispute resolution such as mediation, when it is favorable to our clients. However, if a matter requires litigation, our firm provides aggressive and cost effective litigation services to protect and further our clients' interests.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 27, Packet Page 49 IL Proposal

Our legal services can be specifically tailored to meet the Monterey Peninsula Regional Water Authority ("Water Authority") needs. L+G proposes Jason S. Retterer to serve as General Counsel and Brad Sullivan to serve as Assistant General Counsel to the Water Authority. Mr. Retterer and Mr. Sullivan are partners at L+G and have extensive experience representing public agency clients on a variety of municipal and environmental law issues. Mr. Retterer and Mr. Sullivan's specific experience representing public agencies is set forth in Section III of this proposal.

Mr, Retterer and Mr. Sullivan will be supported by a team of experienced attorneys who can provide the full range of public agency legal needs, including attendance at board meetings and any other related activities. Our attorneys can also provide research, legal advice, and other recommended actions based on our team's extensive public agency experience. Preparation and review of contracts, resolutions, policies, and other public agency issues are within our experience and capabilities. We are also capable of providing quality legal representation in litigation on behalf of public districts and/or their officials, as well as providing a full range of other public agency law services. Additionally, our firm has a solid background in providing legal counsel on land use, real estate and construction law matters, should the Water Authority require these services.

Finally, L+G believes in providing superior legal services at cost effective and competitive rates. In this regard, our firm is happy to offer the Water Authority the full range of our legal services at the following discounted fixed rates:

Attorneys Prevailing Hourly Rate Water Authority' Rate Jeffery R. Gilles $475.00 $300.00 Bradley W. Sullivan $425.00 $250.00 Jason S. Retterer $395.00 $250.00 Dennis C. Beougher $350.00 $250.00 Patrick S.M. Casey $350.00 $250.00 E. Soren Diaz $350.00 $250.00 Amy Purchase Reid $350.00 $250.00 James W. Sullivan $350.00 $250.00 Paul A. Rovella $295.00 $225.00

Land Use Specialist Trinh Retterer $195.00 $150.00

Paralegals Anne Wells $115.00 $95.00 Danielle Quebec $115.00 = $95.00 Barbara Goulding $115.00 $95.00

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 28, Packet Page 50 II. Proposal

In addition to offering the stated discounted hourly rate and cost effective services, we would not bill for transitional time reviewing prior legal files that may be transferred to the firm. Nor will the Water Authority be billed for any research or "up to speed time" on areas of law where the firm cannot readily offer its expertise.

Any additional fees and charges, if applicable, would be assessed as follows:

1. Mileage will not be billed for the first ninety miles. Any mileage that exceeds ninety miles will be billed per the Internal Revenue Code. For out of town travel, the Water Authority would be responsible for actual lodging, meal and other travel costs at a not-to-exceed negotiated rate.

2. Mailing expenses will be billed at actual cost for overnight or special mail service only.

3. Prior approved fees for experts and consultants will be billed at actual cost.

4. Basic on-line legal research using Westlaw or any other legal research services would not be billed if we are accessing databases within our monthly subscription service. If, however, we require advanced and more specialized research services we would seek your approval before incurring that cost. Our experience is that those services are very expensive and we would need to bill the Water Authority at actual cost.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 29, Packet Page 51 III. Public Entity Representation

L+G has a team of experienced public sector law lawyers that have represented cities, districts, special districts and joint powers agencies throughout California. Our attorneys with public sector law experience include Jason Retterer, Brad Sullivan, Dennis Beougher, and Soren Diaz. Our lawyers have advised public agencies and elected officials on matters involving the following areas, among others:

• Annexations • Public contracts • Conflicts of interest • Land use regulation • Constitutional law • Taxes, fees, and governmental spending • Campaign/elections law • Code enforcement • Eminent domain/inverse condemnation • Brown Act compliance • Labor issues • Public Records Act compliance • Public bidding process • Gifts of public funds • Environmental law • Public employment • Telecommunications • Parliamentary procedure • California Voting Rights Act • Federal Voting Rights Act Redistricting

As noted in Section II, L+G proposes Jason Retterer to serve as General Counsel and Brad Sullivan to serve as Assistant General Counsel to the Water Authority. Below is a summary of their experience representing public entities.

A. JASON S. RETTERER

Jason has thirteen years of legal experience. Prior to joining L+G, Jason worked at one of the premiere and oldest municipal law firms in Orange County, Woodruff, Spradlin & Smart, where he represented a broad spectrum of municipal clients, including cities, special districts and joint powers agencies. Below is a snap shot of the various municipal clients he has represented and a description of his duties and responsibilities.

1. General Counsel Experience

Midway City Sanitary District

Jason served as General Counsel to the Midway City Sanitary District (the "District") from 2007 to 2009. The District provides refuse collection and sewer service to over 100,000 residents and 35,000 connections in the City of Westminster and the unincorporated County area known as Midway City. As General Counsel, he advised a five member elected Board of Directors on a variety of municipal law issues unique to sanitary agencies. In addition to attending and advising the Board at their regular and special public hearings, Jason routinely advised the Board on compliance with the Brown Act, Political Reform Act, Public Records Act, Public Contracts Code and legal issues relating to refuse collection and the provision of sanitary sewer service. He advised the Board on a contemplated increase in user fees and Proposition

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 30, Packet Page 52 III. Public Entity Representation

218 compliance. He also regularly drafted ordinances, resolutions, policies, employment agreements, construction agreements and other agreements and contracts for the Board's consideration and adoption.

Orange County Sanitation District

Jason served as Deputy General Counsel to the Orange County Sanitation District ("OCSD"), which operates the third largest wastewater agency west of the Mississippi River. OCSD is responsible for the collection, treatment and disposal of the wastewater generated by 2.5 million people living and working in central and northwestern Orange County. Jason was responsible for advising OCSD on general municipal law issues relating to Brown Act compliance and conflicts of interest laws, as well as environmental and land use issues. Jason also prepared contracts and agreements, resolutions, ordinances and agenda reports for the consideration of OCSD' s 25-member Board of Directors. Jason routinely reviewed and interpreted complex statutory and regulatory laws, including the California Environmental Quality Act, National Environmental Policy Act, state and federal Clean Water Acts, state and federal Clean Air Acts and other environmental laws affecting wastewater collection, treatment and disposal.

Orange County Transportation Authority

Jason served as Deputy General Counsel to the Orange County Transportation Authority ("OCTA"). OCTA is a multi-modal transportation agency serving Orange County, which is akin to the Transportation Agency for Monterey County. OCTA provides countywide bus and para- transit service, Metrolink rail service, operates the 91 Express Lanes toll facility, and oversees and constructs freeway, street and road improvement projects. As Deputy General Counsel, Jason advised the OCTA's management team on Brown Act compliance, conflict of interest laws, contractual rights and obligations, and environmental and land use issues relating to multi- million dollar major transportation infrastructure and improvement projects. Jason was an integral part of an OCTA taskforce to address the new climate change regulations set forth in AB 32 and SB 375 and he assisted OCTA's policy team in drafting proposed legislation amending SB 375.

East Riverside County Interoperable Communications Authority

In 2008, Jason helped create and advised East Riverside County Interoperable Communications Authority ("ERICA"), a joint powers authority responsible for the planning, construction, operation and maintenance of an $8 million regional public safety communications system in the Coachella Valley. For eight months, Jason advised and assisted the City Councils, City Managers, Police Chiefs and City Attorneys from the cities of Palm Springs, Indio, Desert Hot Springs and Cathedral City on the preparation of a joint powers authority agreement pursuant to the Joint Exercise of Powers Act. Jason was responsible for drafting and presenting multiple versions of the Joint Powers Agreement to the ERICA working group and ultimately the

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 31, Packet Page 53 III. Public Entity Representation inaugural members of the ERICA Board of Directors. Jason also advised the members on potential funding options, including Proposition 218 issues.

2. City Experience

Jason served as the Assistant City Attorney for San Juan Capistrano. In that capacity, he advised the Planning Commission at their regular and special public hearings. He also advised the City on compliance with Affordable Housing laws, state and federal land use laws, including the California Environmental Quality Act, Subdivision Map Act, the Planning and Zoning Law, Telecommunications Act, state and federal preemption issues and constitutional law issues relating to sign regulations, development impact fees and the imposition of conditions on land development projects. Jason also advised the City on compliance with the Brown Act and Conflict of Interest laws, including the Political Reform Act, Government Code section 1090 and issues relating to incompatibility of offices in conjunction with Housing Law compliance, Density Bonus Law compliance and he advised the City on its comprehensive overhaul of its zoning ordinance.

Jason has also provided similar city attorney services for the cities of Tustin, Placentia, Garden Grove, Laguna Hills, Rancho Santa Margarita, Indio and Palm Springs on a variety of matters. In addition to advising the San Juan Capistrano Planning Commission, Jason has advised the Cities of Tustin and Garden Grove Planning Commissions at their public hearings and regularly appeared before other hearing bodies in these cities on agendized matters.

3. Special Counsel Experience

Los Angeles Unified School District

Between 2001 and 2004, Jason served as special counsel to the Los Angeles Unified School District ("LAUSD") for their new school construction program. In this capacity, Jason advised LAUSD on compliance with the California Environmental Quality Act prior to the acquisition of property and ultimate construction of administrative facilities, new elementary, middle and high schools, or other district facilities. Jason also advised LAUSD on issues relating to compliance with City and County land use regulations and requirements and whether educational facilities were subject to such requirements.

4. Public Entity Litigation Experience

Jason has represented public agencies in litigation as either lead counsel or co-counsel in the following cases.

Save Our San Juan v. City of San Juan Capistrano (2008) [Orange County Superior Court, Case No.: 30-2008-00100936-CU-WM-CJC]: Jason successfully defended the City of San Juan Capistrano against a CEQA lawsuit challenging a Negative Declaration filed by a

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 32, Packet Page 54 III. Public Entity Representation

citizen group challenging the City's approval of sign program for an existing office complex at the gateway to the City.

City of San Juan Capistrano v. City of Laguna Niguel (2007) [Orange County Superior Court, Case No.: 07CC 12192]. On behalf of the City of San Juan Capistrano, Jason prepared and filed a Petitioner for Writ of Mandate against the neighboring City of Laguna Niguel. The Petition alleged that Laguna Niguel violated CEQA, the Subdivision Map Act, and its own ordinance when it approved a residential subdivision on a prominent and undeveloped hillside overlooking the City of San Juan Capistrano. Jason assisted the City Council and staff in brokering a settlement that provided significant concessions to reduce the significant aesthetic and visual impacts on the City of San Juan Capistrano.

Coachella Valley Water District v. City of Indio et. al. (2007) [Riverside County Superior Court, Indio Branch, Case No. Inc. 065049]. Mr. Retterer defended the City of Indio in this CEQA case. This CEQA action was filed by a regional water district challenging the adequacy of an EIR prepared for a 3,500 unit residential project in Indio. The lawsuit alleged that the EIR failed to adequately analyze and mitigate the project's impact on the local groundwater supply. The case ultimately settled.

Concerned Citizens for Intelligent Growth v. City of Indio (2007) [Riverside County Superior Court, Indio Branch, Case No: 1NC069075]. Mr. Retterer defended the City of Indio in this case. The lawsuit alleged that the City violated CEQA and the State Aeronautics Act when it approved a mixed-use specific plan that was located within an Airport Land Use Compatibility Planning area. The lawsuit alleged that the EIR failed to adequately analyze numerous environmental impacts and failed to adequately address project alternatives. The lawsuit also alleged that the City failed to comply with CEQA when it adopted findings to override the Riverside County Airport Land Use Commission's finding that the project was incompatible with its adopted plan. Petitioners agreed to dismiss the lawsuit with prejudice pursuant to a settlement agreement that imposed minimal requirements on the City.

Communities for a Better Environment v. South Coast Air Quality Management District (2004), [Los Angeles Superior Court, Case No. BS091275]. Mr. Retterer assisted in the successful defense of the South Coast Air Quality Management District ("SCAQMD") in a CEQA lawsuit brought by an environmental group and a labor union. The lawsuit challenged the SCAQMD's CEQA compliance in connection with issuance of permits to construct and operate equipment at a major oil refinery.

Sycamore Gardens Homeowners Association v. City of Tustin (2003) [Orange County Superior Court, Case No. 03CC07516]. Mr. Retterer assisted in the successful defense, at the trial court and Court of Appeal levels, of the City of Tustin in this CEQA case, in which a homeowners group filed a Petition for Writ of Mandate challenging the City's approval of an EIR prepared for a project involving a street widening project. The trial court and Court of Appeal denied the Petition, ruling for the City on all issues.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 33, Packet Page 55 III. Public Entity Representation

Mitchell v. Los Angeles Unified School District (2002) [Los Angeles Superior Court, Case No. 074424]. Mr. Retterer assisted in the successful defense of the Los Angeles Unified School District ("LAUSD") in this CEQA case. The Petitioner in the case challenged the District's preparation of two negative declarations for two separate new elementary school projects. The Petitioner dismissed the case with prejudice on the eve of trial in exchange for LAUSD's agreement to waive costs.

Published Appellate Decisions:

Native American Sacred Site Environmental Protection Association v. City of San Juan Capistrano (2004) 120 Cal.App.4th 961. Mr. Retterer successfully defended, at the trial court and Court of Appeal, the City of San Juan Capistrano in a CEQA lawsuit brought by a Native American Indian organization. In a published opinion, the• Fourth District Court of Appeal held that the City was not required to comply with CEQA prior to adopting, as is, a "voter-sponsored" initiative, which contemplated build-out of a high school campus in the City.

5. Other Recognition/Honors

In 2011, Jason was appointed by Tom Torlakson, California's Superintendent of Public Instruction, to serve on his advisory team for his "Schools of the Future Initiative." The advisory team was comprised of education, state, labor, and business leaders, who developed recommendations to the California Department of Education's (CDE) on school construction reform and the development of high performance schools. Specifically, Jason worked with a subcommittee to address performance issues relating to (1) funding and financing energy efficient projects, (2) integration of renewable energy, (3) the promotion of green and sustainable school construction and operational practices and (4) increasing the number of "grid-neutral" schools.

Jason also sits on the Water Committee of the Grower-Shipper Association of and was recently appointed to the Board of Directors for the Salinas Old Town Association.

B. BRAD SULLIVAN

Brad was admitted to the California Bar in 1983 and has 27 years of legal experience. Brad manages the firm's Hollister office. Brad has advised public agencies on a variety of matters impacting local governments and decision-making, with a primary focus on conflicts of interest, open meeting laws, and land use/resource planning. While representing public clients, Brad has also been involved in real estate acquisition, eminent domain, personnel matters, and franchise negotiations. Brad is an experienced litigator with over fifty jury trials under his belt. He has appeared before all levels of state and federal court, as well as a variety of administrative and

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 34, Packet Page 56 III. Public Entity Representation regulatory agencies. Below is a snap shot of the various public agencies that Brad has represented and a description of his duties and responsibilities.

1. General/Special Counsel Experience

Brad was general or special counsel to River Pines Public Utility District, Union Public District, Mace Meadows Community Services District and Bear Valley Sewer and Water District. As general or special counsel to these districts, Brad drafted and reviewed ordinances, resolutions and bylaws for Special Districts. Whether drafting, or reviewing the work of others, Brad has nearly twenty years of experience in this area. He has drafted simple textual amendments, comprehensive bylaw revisions and municipal code revisions concerning development agreements, subdivision standards, employment/personnel, nuisance abatement, waste water and sanitary, code enforcement and hearing ordinances.

2. City Attorney Experience

Brad served as the City Attorney for Sutter Creek for 12 years between 1992 and 2004. As City Attorney, Brad advised the City Council and Planning Commission at public meetings, represented the City at County Technical Advisory Committee meetings, routinely met with project applicants and defended the City in lawsuits initiated by citizens' groups and applicants whose projects were denied. Brad prepared deeds, easements, licenses, covenants and other recorded instruments. Brad negotiated on behalf of the City and special district clients to acquire property rights in lieu of condemnation and has proceeded with eminent domain actions.

Brad assisted city staff with preparation of employee handbooks, police policy and procedure manual, miscellaneous employee policies, employment agreements, disciplinary proceedings under both the Negotiated Memorandum of Understanding and the Police Officers' Bill of Rights, represented the City in initial formation of employee associations under the Meyers Milias Brown Act and represented the City in mediation and arbitration.

Brad reviewed all claims presented to the City and provided similar services to Special Districts. The City of Sutter Creek was a member of a risk management pool and Brad worked closely with it and the adjustors utilized. In matters of litigation, Brad worked with retained counsel and investigators to minimize exposure. Also, Brad worked closely with the business community of Sutter Creek to minimize exposure of city and businesses to ADA litigation. Further, Brad's research in Sutter Creek revealed Cal Trans' responsibility for sidewalks along the main street (State Highway 49) corridor. Additionally, Brad has served as an arbitrator for other cities in the Central Sierra area, and served on the Labor Committee during his tenure on the Amador County Board of Education/Board of Trustees-Amador County Unified School District.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 35, Packet Page 57 III. Public Entity Representation

3. OTHER ATTORNEY EXPERIENCE

Other L+G attorneys have represented a wide range of public entities, including but not limited to:

• City of Brentwood, California • City of San Mateo, California • City of Pleasanton, California • City of Redwood City, California • City of Sutter Creek, California • City of Gilroy, California • Chualar Unified Elementary School District (Salinas, CA) • Santa Cruz County. Board of Education (Santa Cruz, CA) • Salinas City Elementary School District (Salinas, CA) • Santa Rita Union School School District (Salinas, CA) • San Benito County Office of Education (Hollister, CA) • Jefferson Union School District (Hollister, CA)

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 36, Packet Page 58 IV. Real Estate/Land Use

L+G's team of real estate experts has advised clients on a broad range of real estate issues involving commercial, residential, industrial and agricultural property. E Our real estate/land use team includes Jeff Gilles, Dennis Beougher, Patrick S. M. Casey, Brad Sullivan, Jason Retterer, Soren Diaz, Paul Rovella, and Trinh Retterer. Over the years, L+G has developed particular depth in real estate. Our real estate group is strategically situated to provide comprehensive legal services addressing all facets of real estate ownership, use, investment and financing. We have the experience and reach to manage the wide range of challenges faced by our clients, large and small. L+G attorneys also have experience advising clients on appropriative and riparian water rights, Carmel River water rights issues, groundwater rights in San Benito and Monterey Counties, and the formation and management of small water systems. Specifically, L+G attorneys handle or have handled the following types of transactions:

• All aspects of pre-acquisition due diligence; • Acquisition and disposition including ERNs, purchase and sale agreements, DDAs, property conveyance documents, common interest agreements, reciprocal easements and other joint use agreements; • Retail/office/industrial and ground leasing; and • Residential leasing.

L+G attorneys are recognized experts in the field of land use law, based on decades of experience advising clients on every aspect of the land use approval process. We are often involved in controversial, high-profile projects that generate close scrutiny from the press, community groups, local officials, and state legislators. We have advised and represented clients in connection with master planned commercial and residential development, industrial projects, redevelopment projects, military base reuse, schools and public infrastructure projects, including freeways, sewage treatment plants and pipelines. We have handled matters involving virtually every state and federal land use law including, among others, the following:

• Planning and Zoning Law; • Water Rights • Affordable Housing Laws, including Housing Element Law, Density Bonus Law, Anti- NIMBY law, Second Unit Law; • Subdivision Map Act; • California Environmental Quality Act ; • Community Redevelopment Law; • Permit Streamlining Act; • Cortese-Knox Local Government Reorganization Act; • California Coastal Act; • The Endangered Species Acts; • First Amendment/Sign Law; • The Religious Land Use and Institutionalized Persons Act; • Development Fee Law; and • Historic Preservation Laws.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 37, Packet Page 59 IV. Real Estate/Land Use

We have advised clients on the adoption and amendment of general plans and specific plans, the preparation of environmental impact reports and negative declarations, the issuance of variances and conditional use permits, the imposition of conditions and exactions, nonconforming uses, building regulations, the preparation and adoption of land use initiatives and referenda, nuisance abatement, and compliance with affordable housing requirements. We have negotiated land use matters with many federal, state, and local regulatory agencies, including, among others, the U.S. Army Corps of Engineers, the U.S. Fish & Wildlife Service, the California Office of Historic Preservation, the California Department of Fish & Game and many cities and counties.

We typically advise clients at every step of the land use process, including initial planning, internal staff review, public review, project approval and, where necessary, litigation. We have successfully defended many writ of mandate proceedings challenging land use approvals. Our attorneys have also litigated damage claims based on constitutional issues such as regulatory takings, due process, and equal protection.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 38, Packet Page 60 V. Attorney Résumés

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 39, Packet Page 61 ATTORNEYS AT LAW, LIP

Jeffery R. Giles

Jeff is a principal and the managing partner of L+ G, overseeing a legal staff and eight attorneys.

Jeff specializes in the areas of agriculture, land use and real estate for both local and international clients. His in-depth legal and practical knowledge of agricultural, land use and real estate matters, both in California and abroad, has led to his appointment as an advisor to companies assessing their political risks and business opportunities, a project advocate in land use matters, and an arbitrator or mediator in agriculture, land use and real estate matters.

Jeff started his legal career in 1979 as corporate counsel for Bruce Church, Incorporated, and affiliated companies, a grower, shipper and processor of fresh vegetables. In 1985, Jeff founded his own law firm, which specialized in agricultural and real estate matters, including liability issues related thereto. In 1998, Jeff merged his firm with the firm of Lombardo & Associates, creating Lombardo & Gilles. In 2012, Lombardo & Gilles was reorganized and became L+G, LLP.

Jeff graduated from the University of Santa Clara in 1976 with a Bachelor of Arts Degree, where he honored in history. Afterwards, he graduated from McGeorge School of Law, University of the Pacific, in 1979, and received his Juris Doctor Degree that year. Jeff also received a Certificate of International Jurisprudence in Salzburg, Austria, during his tenure at McGeorge School of Law, and in 1981, attended the Monterey Institute of International Studies, receiving a language certificate in Spanish for training for service abroad.

Jeff is active in community affairs and was the President and Chairman of the Board of Trustees of the National Steinbeck Center from 2005-2007. Jeff is a member of various agricultural associations such as Grower-Shipper Vegetable Association, Western Growers Association, Monterey Wine Country Associates and Monterey and San Benito Farm Bureaus. Ile is also a member of the Monterey County Bar Association.

Jeff enjoys snow skiing, playing golf and traveling.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 40, Packet Page 62 PROFILES

ATTORNEYS AT LAW, LLP

Dennis Beougher

Dennis is a member of the land use and public agency team at L+ G, where he specializes in California Environmental Quality Act and Subdivision Map Act questions and challenges, California's Coastal Act and urban development planning.

His land use background includes a variety of matters ranging from developing legal strategies to create urban limit lines to appearing successfully in the Ninth Circuit Court of Appeals on Johnson v. City of Pleasanton, 982 F.2d 350.

Since 1982, Dennis has worked throughout as both a private practitioner and a city attorney for Redwood City, Pleasanton, San Mateo and, most recently, the City•of Brentwood. Prior to his legal career, • Dennis spent six years working as an urban planner for Livingston County, Michigan

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 41, Packet Page 63 PROFILES ATTORNEYS AT LAW, LLP

Patrick S. M. Casey

Patrick manages the business and real estate team, where his knowledge of both accounting and business law makes him invaluable to clients in advising on various real estate and business transactions.

• As a licensed attorney and certified public accountant, his knowledge of both the legal and tax implications of client business operations allows him to effectively conduct complex negotiations for the sale, expansion or merger of businesses. Patrick also advises clients on the legal and tax implications of the Williamson Act statute, agricultural leases and easement matters, incorporating or dissolving their business, and Section 1031 tax- deferred exchanges.

Prior to joining L+G, Patrick started his career as a staff accountant for Ernst and Whinney in Los Angeles, conducting audits of both public companies and municipalities. After graduating from Loyola Law School in 1993, he worked for KPMG Peat Marwick on expatriate tax issues. He moved to Monterey County in 1994 and worked for law firms in both King City and Salinas. He has continually represented clients with respect to various corporate and real estate matters.

Patrick is a member of the Business Law Section of the State Bar of California and a member of the Monterey County Bar Association. He is on the Board of Managers for the Salinas YMCA and chaired the Board from 2009 — 2010. He has also been involved in the YMCA's community support campaign for the past fifteen years. Patrick is a graduate of Leadership Salinas Valley (Class 14) and also Monterey County AgKnowledge. Patrick has also taught paralegal courses in contract law and corporate law at the University of California, Santa Cruz.

In his spare time, he enjoys spending time outdoors, either surfing, hiking or cycling.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 42, Packet Page 64 PROFILES

ATTORNEYS AT LAW, LLP

E. Soren Diaz

Soren heads the public agency and education team at L+G, practicing mainly in public education as well as real estate, construction and product liability litigation and other related matters. Soren currently serves as general counsel for Chualar Union elementary School District. Additionally, Soren has provided special legal services to various school districts on matters such as redistricting services, inter-district transfer appeals, and teacher discipline.

Soren also has a strong background in litigation since 1991. He has handled litigation matters ranging from personal injury to wrongful death and medical malpractice. Soren has represented clients in numerous trials, arbitrations, mediations and appeals. While at L+G, Soren has expanded his litigation skills, successfully representing clients in extensive construction defect and product liability cases, as well as real property and commercial disputes.

Soren has worked throughout Southern and Northern California and has been admitted to practice in the Central, Eastern and Southern Districts of the United States Federal Court in California.

Soren studied law at the McGeorge School of Law, University of the Pacific, and was admitted to the California State Bar in 1991. Prior to attending law school, Soren graduated from Southwestern University, Georgetown, Texas, where he received degrees in foreign language and music.

Soren was born in Santa Cruz, Bolivia, and is fluent in Spanish, which allows him to translate legal documents from English into Spanish and from Spanish into English.

In his spare time, Soren enjoys traveling and playing the electric guitar.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 43, Packet Page 65 PROFILES

ATTORNEYS AT LAW, LLP

Jason S. Retterer

Jason has practiced law for ten years. He has substantial experience in advising public and private entities on a broad range of legal issues related to the following areas: compliance with environmental laws such as the California Environmental Quality Act, water quality laws, and federal and state hazardous waste laws; general plan and zoning matters; subdivision map act; annexations; Brown Act; Political Reform Act; and Public Records Act. As the Assistant City Attorney for the City of San Juan Capistrano, advised the Planning Commission at their public hearings. Jason has also advised the planning commissions for the cities of Garden Grove, Tustin, Placentia, and Paramount.

Jason has advised several regional districts. Jason served as General Counsel for the Midway City Sanitary District and has advised the Orange County Sanitation District, Orange County Transportation Authority, Orange County Fire Authority and Los Angeles Unified School District.

Prior to practicing law, Jason spent several years as a land use planning consultant with a land use planning firm in Santa Ma, California, working with builders, land developers, property owners and local agencies on land entitlement procedures that covered a variety of environmental discipline areas, including traffic and transportation planning, biological resource management, acoustics, geotechnical engineering, and air quality management,

Jason holds a J.D. degree from California Western School of Law (1997) and a B.A. degree from the University of Southern California (1993), where he majored in Political Science.

Jason is a member of the Rotary Club of Salinas and is on the Board of Directors of the Salinas Old Town Association.

When he is not practicing law, Jason enjoys golfing, skiing, USC football, and spending time with his wife, Trinh, and two daughters, S:ydney> and Morgan.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 44, Packet Page 66 PROFILES ATTORNEYS AT LAW, LLP

Paul A. Rovella

Paul is a member of the business team of L+G, where he has earned considerable experience in the fields of business entity formations, state and federal food safety standards, and public and private real estate transactions. Paul also advises property owners on establishing water rights, including appropriative, riparian, and overlying groundwater rights, and establishing and managing water systems.

Paul is also a member of the public agency team, where he has earned considerable experience in the fields of ground and facilities leasing, surplus property sales, Education Code waivers and interdistrict transfers.

Paul, a Hollister native, received his kris Doctor degree in 2006 from Rutgers University School of Law — Camden. During law school, Paul interned for United State Chief Magistrate Judge M. Faith Angell in the Eastern District of Pennsylvania and the City of Philadelphia's Law Department. Paul also earned valuable experience in insurance matters as a clerk for the Law Offices of George N. Styliades, and Liberty Mutual Insurance Company in their in-house Small Business, Home and Automobile Insurance Defense Department. Paul also participated in Rutgers' Pro Bono Mediation and Volunteer Income Tax Preparation programs. He is a member of the San Benito and Monterey County Bar Associations.

Prior to becoming an attorney, Paul received a Masters in Business Administration from National University and a Bachelor of Arts degree in History from Sonoma State University. Paul also held an emergency credential and served as a substitute teacher in Sonoma County. Additionally, Paul taught the U. S. Constitution seminar at National University.

Paul is licensed to practice in the State of California and has been admitted to practice in the United States District Courts in the Eastern and Northern Districts of California.

Outside of the legal landscape, Paul is an avid backpacker and enjoys playing golf.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 45, Packet Page 67 PROFILES

ATTORNEYS AT LAW, LLP

Bradley W. Sullivan

Brad is the Manager of L+G's Hollister office, overseeing a variety of education and business matters in San Benito County. In addition, Brad is a member of the litigation team at L+G, having been involved in more than fifty jury trials, successfully representing individuals, corporations and public agencies.

His civil trial experience includes food safety (product liability) issues, professional negligence, products liability, construction defect, writ of mandate, land use, environmental contamination and commercial litigation. He has also tried cases in state and federal courts relating to the California Environmental Quality Act, United States Clean Water Act and EPA-CERCLA Superfund matters. Brad's litigation successes include the case of Russell Evett v. City of Sutter Creek, where he successfully helped to define the scope of a citizen's action under the United States Clean Water Act in front of the 9 th Circuit Court of Appeals.

Prior to joining L+G, Brad spent more than twenty years in general civil practice

• and as the City Attorney for Sutter Creek. He has provided special and general counsel services to other public agencies such as River Pines Public Utility District, Union Public District, Mace Meadows Community Services District and the Bear Valley Sewer and Water Districts.

Brad received his Juris Doctor Degree from Santa Clara University School of Law and was admitted to the California State Bar in 1983. Prior to law school, Brad studied at Brigham Young University and subsequently graduated from Santa Clara University with a degree in Economics. In addition to his legal career, Brad conducts training session on the Brown Act and conflict of interest law for the California School Boards Association and local agency staff and is a frequent speaker at the League of California Cities.

A fifth-generation Central Californian, Brad began his education at the Monterey Peninsula College, where he was an All-Coast Conference football player. In his spare time, Brad continues his love of sports by assisting with youth sports programs

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 46, Packet Page 68 PROFILES ATTORNEYS AT LAW, LLP

James W. Sullivan

Jim, the manager of the L+G Labor Department, brings more than thirty years of experience as a civil litigator and specialist in labor relations.

Jim has handled numerous labor disputes, collective bargaining negotiations, unfair labor practices and other workplace related lawsuits.

Jim worked as a staff attorney for the California Agricultural Labor Relations Board prior to L+G. In 1984, he became vice-president and group general counsel of Castle & Cook Fresh Vegetables, Incorporated, where he was responsible for a full range of legal matters related to this agricultural company, including labor planning in acquisitions and divestitures. From 1988 through 1998, Jim headed the Labor Department for Gilles, Minor and Sullivan, representing employers before state and federal courts.

Jim received his Juris Doctorate in 1974 from Stanford Law School, where he received the Hilman Oehlmann, Jr. Award for excellence in legal writing. Jim graduated from Harvard University cum laude in Government in 1970.

Jim is a member of the Labor and Employment Section of the California State Bar and the Monterey County Bar Association. He is a widely respected lecturer on issues of employment and in his spare time enjoys cycling, hiking and scuba

• diving.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 47, Packet Page 69 VI. References

1. Ken Robbins, General Manager Midway City Sanitary District 14451 Cedarwood Avenue Westminster, CA 92683 (714) 893-3553

2. Roberto Rios, Superintendent Chualar Union Elementary School District 24285 Lincoln Street Chualar, CA 93925 (831) 679-2504

3. Douglas Holland, City Attorney City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 (760)-323-8299

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 48, Packet Page 70 AXIS PRO MID-SIZE LAWYERS PROFESSIONAL LIABILITY POLICY

DECLARATIONS

THIS POLICY IS WRITTEN ON A CLAIMS MADE AND REPORTED BASIS AND COVERS ONLY CLAIMS FIRST MADE AND REPORTED AGAINST THE INSUREDS DURING THE POLICY PERIOD OR THE EXTENDED REPORTING PERIOD, IF APPLICABLE. THE LIMIT OF LIABILITY AVAILABLE TO PAY JUDGMENTS OR SETTLEMENTS SHALL BE REDUCED AND MAY BE TOTALLY EXHAUSTED BY AMOUNTS INCURRED AS CLAIM EXPENSES. PLEASE READ THIS POLICY CAREFULLY.

INSURER: AXIS Insurance Company POLICY NUMBER: MLN 762443/01/2011

Item 1. Named Insured: Item 2. Policy Period: Lombardo & Gilles, LLP (A) Inception Date September 1, 2011 318 Cayuga Street (B) Expiration Date September 1, 2012 Salinas, CA 93901 Both dates at 12:01 a.m. at the address listed in Item 1.

Item 3. Limits of Liability (Inclusive of Claim Expenses): $ 2,000,000 each and every Claim

$ 4,000,000 aggregate

Item 4. Retentions: $ 25 000 each and every Claim

Item 5. Extended Reporting Period: (A) Additional Premium: 125% (1 Year) or 250% (3 Year) of annualized premium for the Policy Period (B) Length of Extended Reporting Period: 1 Year or 3 Year

Item 6. Notices to Insurer:

Notice of Claim(s) To Be Sent To: All Other Notices To Be Sent To: AXIS Pro Claims AXIS Professional Insurance Address: 300 Connell Drive, Suite 2000 Address: One State Street P.O. Box 357 Suite 1700 Berkeley Heights, NJ 07922 Hartford, CT 06103

Facsimile: (908) 508-4389 Facsimile: (860) 707-1725 USCIairriNoticeBHaxiscapitat.com

Item 7. Terrorism Coverage: Coverage Purchased by Named Insured: Yes • No Ell If yes, Terrorism Coverage Premium: $ N/A

Item 8. Premium: $62,641 •

LM 0100 (Ed. 0707) Page 1 of 2 Printed in U.S.A. MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 49, Packet Page 71 Item 9. Endorsements Effective at Inception: No. 1 LM 0422 California Amendatory Endorsement; No. 2 LM 1707 Mutual Consent Endorsement;

The Insurer has caused this Policy to be signed and attested by its authorized officers, but it shall not be valid unless also signed by another duly authorized representative of the Insurer.

August 26, 2011 Authorized Representative Date

Gregory W. Springer Andrew Weissert President Secretary

LM 0100 (Ed. 0707) Page 2 of 2 Printed in U.S.A. MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 50, Packet Page 72 LAW OFFICES Perry and Freeman THOMAS K. PERRY (1904-1971) TELEPHONE ------DONALD G. FREEMAN SAN CARLOS BETWEEN Tr" AND Er , AREA CODE 831 POST OFFICE BOX 805 624-5339 Carrnel-Ly-the-Sea, California 93921 FAX (831) 624-5839

RECEIVED AUG 2 4 2012

August 23, 2012 CITY ATTORNEY'S 0 MOE

Monterey Peninsula Regional Water Authority Board of Directors ao Christine Davi, City Attorney City of Monterey City Hall Monterey, CA 93940

RE: Response to Requests for Proposals for Legal Services for the Monterey Peninsula Regional Water Authority

Dear Board Members:

Thank you for the opportunity to provide information in response to the request for proposals (Th for legal services for the Monterey Peninsula Regional Water Authority.

The law office of Perry & Freeman was established in 1971 as a general law, civil law, municipal law, special district law, and estate planning, trust and probate law office. I am the founder, principal attorney, sole proprietor and contact person for the office and am licensed in good standing in the state of California and also admitted to practice before the Supreme Court of the State of California, the United States District Court (Northern and Southern Districts) and the Supreme Court of the United States. Presently, I serve as a contract city attorney for the• cities of Carmel and Seaside, as legal counsel for the Association of Monterey Bay Area Governments, and maintain a private practice in estate and probate law.

I have considerable knowledge and direct experience in municipal law, advising public bodies on the Brown Act, Political Reform Act, and the Public Records Act. Importantly for purposes of applicability of legal services for the Monterey Peninsula Regional Water Authority, I am very familiar with the issues and interests related to water supply for the Monterey Peninsula and the purpose and formation of the Monterey Peninsula Regional Water Authority. My knowledge and direct experience include service as a city attorney for two of the cities on the Peninsula; attendance and conferring with other legal counsel regarding many meetings of the Authority to date; attendance at various meetings with, as well as conferences with staff and legal counsels of, California American Water, the California Public Utilities Commission, Seaside Basin Water Master, and the State Water Resources Control Board; and, full understanding of

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 51, Packet Page 73 the Cease and Desist Order driving replacement of water supply for the Cal-Am service area of the Monterey Peninsula.

I understand and will perform the duties requested in the scope of services for the period designated. Should the Board wish to consider contracting with me for services requested and required, I am also willing to perform such services for an initial period of three months with continuation subject to review and assessment by the Authority Board at the end of that period.

Thank you again for the opportunity to be considered for provision of legal services for the Monterey Peninsula Regional Water Authority. I look forward to hearing from you on this matter. Should you desire any further information, please contact me.

Sincerely,

Donald G. Freeman

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 52, Packet Page 74 RESPONSE TO REQUEST FOR LEGAL SERVICES FOR THE MONTERERY PENINSULA REGIONAL WATER AUTHORITY

Submitted by:

Donald G. Freeman, Lead Attorney Law Office of Perry & Freeman Post Office Box 805 Carmel-by-the-Sea CA 93921 Telephone: (831) 624-5339 Ext. 11

QUALIFICATIONS AND EXPERIENCE

The Law Office of Perry & Freeman was established in 1971 as a general law, civil law, municipal law, special district law, and estate planning, trust, and probate law office. I have maintained the office for over 40 years in both public and private practice. I currently serve as a contracted city attorney for the cities of Carmel and Seaside, as legal counsel for AMBAG, and maintain a private practice in estate and probate law. Additionally, I bring years of experience as legal counsel for several special districts and joint powers agencies in the Monterey Bay/Central Coast region. My experience and responsibilities include, but are not limited to, representation in a variety of matters including legal and policy matters pertaining to administration of full- service cities, zoning, ordinances and resolutions, housing, redevelopment, work with city councils/agency boards of directors, city managers/agency directors and management staff, coordination with consultants and the public, land use, planning, contracts, environmental law, personnel and labor relation matters, annexation, water, sanitation, and litigation matters. I have held a number of leadership and elected and appointed positions in service to the community within several local and regional jurisdictions, agencies and organizations including 20 years on the Board of Trustees for Monterey Peninsula College and am currently serving a second term on the Monterey College of Law Board of Trustees. I believe that I am respected for my legal acumen, common sense, problem-solving abilities, demeanor, and solution approaches to addressing and resolving issues, and that these qualities can have immeasurable benefit in helping to contain MPWRA costs and litigation expenses, assist in efficiency and conflict resolution, and assist in public perception of MPRWA and public entities.

understand the responsibilities of public sector officials and staff and regularly advise public officials and staff about local governmental administration, public agency law and emerging and adopted changes to law, ethics, the Brown Act, conflict of interest, public records requests, environmental law, land use, planning and zoning laws, water, transportation issues and planning, public sector funding, and effective intergovernmental relations. I have litigation experience and regularly represent the cities of Carmel and Seaside in court appearances related to many of these matters.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 53, Packet Page 75 I have worked with the Monterey Peninsula Mayors and respective city staffs and special water counsel Russ McGlothlin in the formation of the Monterey Peninsula Regional Water Authority for the past two years. I have also represented the City of Seaside in the Seaside Water Basin Water Adjudication litigation. At present, I assist the Water Master Board and staff, along with other attorneys, in providing legal representation. I have also appeared before the State Water Resources Control Board (SWRCB) representing the cities of Carmel and Seaside, and have participated in many mediation sessions regarding the SWRCB order commonly known as the Cease and Desist Order (CDO) along with attorneys and representatives of various interest groups as well as staff and legal counsel for the SWRCB.

Should I be unavailable for some reason, William Conners has indicated willingness to assist in the provision of services for the MPRWA as appropriate or necessary. Mr. Connors is currently serving as city attorney for the Town of Atherton and maintains an office on the Peninsula. He has over 20 years of experience as a city attorney in the Monterey Bay region. His responsibilities have been similar to those described in reference to my experience and responsibilities as a city attorney. Special litigation services, if and when appropriate and necessary, will be provided by Jon Giffen with the law firm of Kennedy, Archer & Harray. Mr. Giffen has experience in complex civil litigation involving public entities, contracts, real estate, labor/employment, insurance, and malpractice law. If the Law Office of Perry & Freeman is selected as General/Legal Counsel for the MPWRA, resumes for Mr. Connors and Mr. Giffen can be provided as needed or requested.

CLIENT REFERENCES

With respect to references, you are more than welcome to contact anyone whom you believe has knowledge of my experience and performance. Inasmuch as I currently provide services for the cities of Carmel and Seaside as well as AMBAG, please feel free to contact any current or past members of the councils, boards or staffs of these entities and to draw upon your own Board's and individual experiences with me and observations about my knowledge, abilities and performance. You may also wish to contact the following persons to obtain additional information with respect to my abilities and knowledge:

Robert R. Wellington, City Attorney City of Del Rey Oaks and City of Marina 857 Cass Street, Suite D Monterey, CA 93940 Telephone: (831) 373-8733 Fax: (831) 373-7106 [email protected]

James G. Heisinger, Jr., City Attorney City of Sand City P.O. Box 5427 Carmel, CA 93921

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 54, Packet Page 76 Telephone: (831) 624-3891 Fax: (831) 625-0145 [email protected]

David Laredo, City Attorney City of Pacific Grove Delay & Laredo 606 Forest Avenue Pacific Grove, CA 93950 Telephone: (831) 646-1502 Fax: (831) 646-0377 [email protected]

RATES AND BILLING POLICIES

General advisory services to be provided are proposed at the hourly rate of $250 per hour. General advisory services/ordinary services include legal advice and legal opinions to MPRWA on matters pertaining to procedures and Board actions, attendance at regular and special meetings of the Board or board committees as requested, and action responsive to items as noted in the requested scope of services. Should MPWRA desire to consider a flat monthly retainer rate, it is proposed that the retainer rate shall be $2,500 per month to include general advisory services and attendance at scheduled meetings, subject to review at the end of 90 days to ensure the rate is fair for both MPRWA and my firm.

Extraordinary legal services to be provided shall include preparation of complex legal documents, representing MPRWA in court appearances, litigation, or in proceedings before other public or administrative bodies, or legal services provided to any independent or separate agency or entity of government not operated as an integral part of MPRWA. Such extraordinary services are proposed at the rate of $350 per hour. General advisory services provided by Mr. Connors, if needed, are proposed at the same rates of $250 per hour for ordinary legal services and $350 per hour for extraordinary legal services. Special litigation services provided by Mr. Giffen, if needed, are proposed at $350 per hour.

If the Law Office of Perry & Freeman is selected as General/Legal Counsel for MPRWA, an employment agreement for legal services shall be developed to specify duties and responsibilities, as well as compensation rates, between the contractor and MPWRA. For billing purposes, an accounting of services and hours will provided by the Law Office of Perry & Freeman to MPRWA on a monthly basis. Billing for other expenses shall generally be on the basis of reimbursement for actual out-of-pocket expenses. Travel time within the region is not anticipated to be separately charged. When specifically required to travel out of the county to conduct MPR WA-related business, rates shall be billed at the hourly rate of $350 per hour and expenses shall be billed as actual out-of-pocket costs, unless otherwise negotiated. There will be no charge for actual travel time.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 55, Packet Page 77 In submitting this response to the MPRWA request for legal services, it is understood that the term of a proposed agreement shall be for two (2) years, with an option to extend the agreement for one additional year at the discretion of the MPRWA. As noted in my cover letter, I am also willing to perform services for an initial period of three months with continuation subject to review and assessment by the MPRWA Board at the end of that period.

CONFLICT OF INTEREST

It is my desire and the desire of the Law Office of Perry & Freeman, and any and all attorneys assisting me and the firm, to maintain an unbiased and legally and ethically appropriate representation for MPRWA. There are no known conflicts at this time. In the event a conflict should occur between the law firm of Perry & Freeman and MPRWA, or between me or other attorneys noted in this proposal and MPRWA, or in representing the interests of MPRWA, such conflict shall be noted, discussed, and alternate counsel may be retained by the MPRWA specific to the item in question. If selected to provide legal services for MPRWA, I will pursue obtaining waiver of conflict statements from each city I currently represent as well as from MPRWA similar to the waiver obtained by special water counsel Russ McGlothlin.

INSURANCE

I am insured by Lawyers' Mutual Insurance Company and maintain Professional Liability Insurance. A copy of my insurance policy/coverage will be provided if selected and as requested.

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 56, Packet Page 78 cihe 580 Calle Principal, First Floor A EL o r cy s- at Law ! Ralph W Thompson III THOMPSON Monterey, CA 93940-2812 [email protected] TEL 831-646-1224 LAW OFFICE FAX 831-646-1225 ' Richard G. Glenn In the Historic ?ifiller Adobe (circal874) WEB www.lawmonterey.com [email protected]

August 24, 2012

VIA E-MAIL AND HAND DELIVERED FirCm--70r-

Christine Davi 4116 2 4 2012 City Attorney CITY ATTORNEY'S OFFICE CITY OF MONTEREY City Hall Monterey, CA 93940

Re: Monterey Peninsula Regional Water Authority (MPRWA) Response to Request for Qualifications - Legal Services.

Dear Ms. Davi:

Attached please find materials submitted in response to MPRWA's Request for Qualifications for legal services. They include:

1. Description of Qualifications and Experience;

2. Client and Professional References;

3. List of Current Hourly Rates and Schedule of Costs;

4. Statements re: actual or potential conflicts of interest and insurance;

5. Attorney Profile: Richard G. Glenn;

6. Thompson Law Office Brochure.

I hope this information is satisfactory. Please let me know if you have questions.

Very truly yours,

THE THOMPSON LAW OFFICE

Richard G. Glenn RGG:kk Enclosures ATTACHIVENTa„

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 57, Packet Page 79 DESCRIPTION OF QUALIFICATIONS AND EXPERIENCE

The Thompson Law Office, Richard G. Glenn, Designated Attorney

My entire career has been essentially dedicated to community development, environmental and public agency law. A significant amount of this experience has specifically dealt with water supply, wastewater and storm water issues. I have had first-hand administrative experience under the greater community's existing water regime. Moreover, I have a thorough understanding of California water law and policy based upon many years of practical experience. I am familiar with all the legal, technical and environmental documents underlying our region's current water crisis.

The Thompson Law Office is a progressive law firm strongly committed to community service. Our office has been located directly across the street from Monterey City/Colton Hall for over forty years. Ralph W. Thompson III and I currently serve on the boards of several community service organizations. We both have had significant public agency experience, ranging from serving as prosecutors to sitting as school board trustees. Our practice is focused on the cost-effective delivery of quality legal services.

I have served as an attorney, project manager and city planner for several Northern California local jurisdictions since 1973. I am the product of Monterey public schools, Cal Poly and Santa Clara University School of Law. During and after law school, I worked in the Pleasanton/San Ramon/San Jose area specializing in public agency, land use and environmental matters. After retiring as Deputy City Attorney for the City of Roseville in 2001, I returned home to Monterey. This "retirement" evolved into a small public agency law practice, followed by engineering and project management positions with the Cities of Monterey and Seaside. At the end of 2011, I "retired" again and joined Ralph Thompson at the Thompson Law Office.

During this career, I have had extensive experience advising public agency boards, commissions and councils on the Ralph M. Brown Act (Government Code §54950 et seq.) at innumerable public meetings; the Political Reform Act of 1974 (Government Code §81000 et seq. and related statutes, i.e. Government Code 1090, etc.) through numerous consultations and conflict of interest memoranda; and in Public Records Act (Government Code §6250 et seq.) matters with respect to a wide range of public enquiry.

I was the principal deputy city attorney responsible for community development, environmental, public project construction and financing matters at the City of Roseville. This included a wide range of water-related public works projects involving the city, other public agencies and private interests. In Roseville, I was also the city's litigation manager.

As redevelopment project manager for the City of Seaside, I served on the city's Water Allocation Committee and worked with Russ McGlothlin of Brownstein Hyatt Farber and Schreck, LLP on various water-related matters, I have followed MPRWA activities since its inception, attending several Authority meetings. In the process, I have become quite attuned to its members' and the public's concerns for a timely resolution of our water crisis. I have carefully reviewed and assimilated the Authority's joint powers agreement and its bylaws.

On these bases, our office submits my qualifications to serve as legal counsel to the Monterey Peninsula Regional Water Authority.

1

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 58, Packet Page 80 ATTACHMENT TO DESCRIPTION OF QUALIFICATIONS

Client and Professional References: Donald Freeman City Attorney CITY OF SEASIDE CITY OF CARMEL-BY-THE-SEA Perry & Freeman PO Box 805 Carmel, CA 93921 (831) 624-5339

Brian McMinn, PE, LS City Engineer CITY OF SOUTH SAN FRANCISCO 315 Maple Ave. South San Francisco, CA 94080 (650) 829-6652 [formerly Principal Engineer, City of Monterey]

Stephen L. Vagnini Assessor-County Clerk-Recorder COUNTY OF MONTEREY 168 West Alisal Street Salinas, CA 93901 (831) 755-5035

Robert R. Schmitt Senior Deputy City Attorney CITY OF ROSE VILLE 311 Vernon Street Roseville, CA 95678 (916) 774-5325

Harbhajan S. "Harvey" Dadwal Board of Directors MONTEREY COUNTY CONVENTION AND VISITORS BUREAU 1534 Fremont Boulevard, Suite D Seaside, CA 93955 (831) 224-9191

Jeannie Goebel Executive Director HOUSING AUTHORITY OF THE COUNTY OF MONTEREY 123 Rico Street Salinas, CA 93907 (831) 775-5000

MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 59, Packet Page 81 ATTACHMENT TO DESCRIPTION OF QUALIFICATIONS

List of Current Hourly Rates and Schedule of Costs

Attorneys' Fees and Billing Practices: The Thompson Law Office's current hourly rates are $300.00 per hour for Richard G. Glenn and $350.00 per hour for Ralph W. Thompson III.

Services provided to MPRWA under a fee agreement based on this description of qualifications shall be subject to a 10% discount.

Richard G. Glenn shall be the primary attorney assigned to MPRWA matters. His billing rate shall be discounted to $270.00 per hour. Ralph W. Thompson III services are anticipated to be limited to specific litigation matters and special consultations, as approved in advance by the Authority. Mr. Thompson's billing rate shall be discounted to $315.00 per hour.

In the interest of cost-savings, $110.00 per hour shall be charged for specific legal support services such as case management, research and related tasks as provided by legal assistants, clerks or paralegals. Such services shall be specifically described in billing statements and shall be employed wherever practicable in lieu of attorney services to reduce costs to MPRWA.

Additional costs and expenses may include, but are not limited to, the following:

1. Extraordinary long distance telephone calls and facsimile charges (telephone charges plus $1.00 per page);

2. Extraordinary postage, courier, messenger and other delivery fees;

3. Extraordinary in-house copying and scanning charges at 250 per page (500 per page for color copies), and actual copying charges by third parties;

4. Lexis, Westlaw or other online research charged at the firm's discounted rate based on the percentage of use in relation to total use by all firm clients;

5. Automobile mileage at the IRS approved rate (currently 550 per mile - and all other necessary travel-related costs and expenses such as air fare, parking fees, and meals and lodging ("per diem"). Per diem travel allowance charges for meals and lodging shall be based on actual charges or federal General Services Administration (GSA) rates, whichever is less - see www.gsa.gov )

6. Investigation and related expenses;

7. Court filing and service of process fees;

8. Deposition fees and Witness fees; and

9. Arbitration, Mediation and Jury fees.

MPRWA Meeting, 9/27/2012 , Item 3No. 5., Item Page 60, Packet Page 82 ATTACHMENT TO DESCRIPTION OF QUALIFICATIONS

Statement re: Actual or Potential Conflicts of Interest

Richard G. Glenn and the Thompson Law Office have recently been selected to serve as counsel to the Oversight Board for the City of Monterey Successor Agency (Board). This will entail advising the Board in its role as the review and mediating authority overseeing the dissolution of the former City of Monterey Redevelopment Agency. The Board consists of elected and appointed officials representing the County of Monterey, Monterey Peninsula Regional Park District, Monterey County Office of Education, Monterey Peninsula College and the City of Monterey.

The Thompson Law Office is aware of no actual or potential conflicts of interest between any member agency or official of MPRWA, nor is it aware of any such conflict of interest on the part of any person or entity it represents. However, The Thompson Law Office shall request and secure appropriate waivers from appropriate agencies with respect to any perceived conflict of interest to the satisfaction of MPRWA.

Statement re: Insurance

The Thompson Law Office carries professional liability insurance under Carolina Casualty Insurance Company Policy No. 91077672 in the amounts of $1,000,000/each claim; $1,000,000/aggregate.

The Thompson Law Office carries general liability/business owner's package insurance under Allied Insurance Policy No. ACP 7810680387 in the amounts of $1,000,000/each claim; $2,000,000 general aggregate.

MPRWA shall be issued a general liability certificate of insurance and copy of the specific endorsement naming it as an additional insured.

4 MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 61, Packet Page 83 Past Positions

Redevelopment Project Manager, 2008-11, Member, Water Allocation Committee City of Seaside

Private Law Practice, 2001-08 Engineering Division, City of Monterey

Deputy City Attorney/Special Deputy District Attorney, 1996-2001 City of Roseville and County of Placer

Attorney - Private Law Practice, 1988 - 96 Hallgrimson, McNichols & McCann (now Berliner Cohen), San Jose, Pleasanton and San Ramon

Land Planning Consultant, 1984 - 88 Alexander and Associates, Pleasanton

Town Planner, Town of Danville

City Planner, 1973 -84 City of Pleasanton

Notable Accomplishments and Cases

General Plan, City of Pleasanton Project Area Amendment re: Eminent Domain, Comprehensive Municipal Code Revision, City of Seaside City of Pleasanton Real Estate Asset Management, City of Seaside Zoning Administration and Code Enforcement, Administrative Citations and Remedies Ordinance, City of Pleasanton City of Seaside ...irowth Management Program, City of Pleasanton Affordable Housing Program, City of Seaside Hillside Development Ordinance, City of Pleasanton Corporate Counsel, Patmont Motor Werks (Go-Pede) Affordable Housing Program, City of Pleasanton General Counsel, Preferred Capital Investment General Plan, Town of Danville Company Zoning Administration, Town of Danville General Counsel, Jones Fresno Real Estate and Litigation Manager, City of Roseville Property Management Group Comprehensive Charter Revision, City of Roseville Campaign Expenditures Ordinance, City of Howard Jarvis Taxpayers Association v. City of Roseville Roseville, 106 Cal.App.4th 1178 (2003), interpreting Administrative Citations and Remedies Ordinance, the provisions of California Proposition 218 regarding City of Roseville in lieu utilities franchise fees. Street Excavation and Repair Ordinance, City of Roseville People v. Ostrander, Placer County Superior Court Comprehensive Zoning Ordinance Revision, (1998) first conviction in nation against bar owner City of Roseville allowing smoking in a place of employment under Chairman, Board of Hearing Examiners, California Labor Code section 6404.5. City of Roseville

Personal Information riard grew up in and around Monterey, is a product of local public schools, Cal Poly, San Luis Obispo and the Santa Clara University School of Law. He and his wife Lori live in Monterey where they are active community volunteers. They enjoy golf and spending time with family, friends and their dog Allie. Richard is also active in the Monterey Bay MathCoants program, sponsored by the California Society of Professional Engineers, Monterey Bay Chapter, which holds an annual math skills competition for regional middle-school students. MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 62, Packet Page 84 Past Positions

Redevelopment Project Manager, 2008-11, Member, Water Allocation Committee City of Seaside

Private Law Practice, 2001-08 Engineering Division, City of Monterey

Deputy City Attorney/Special Deputy District Attorney, 1996-2001 City of Roseville and County of Placer

Attorney - Private Law Practice, 1988 - 96 Hallgrimson, McNichols & McCann (now Berliner Cohen), San Jose, Pleasanton and San Ramon

Land Planning Consultant, 1984 - 88 Alexander and Associates, Pleasanton

Town Planner, Town of Danville

City Planner, 1973 - 84 City of Pleasanton

Notable Accomplishments and Cases

General Plan, City of Pleasanton Project Area Amendment re: Eminent Domain, Comprehensive Municipal Code Revision, City of Seaside City of Pleasanton Real Estate Asset Management, City of Seaside Zoning Administration and Code Enforcement, Administrative Citations and Remedies Ordinance, City of Pleasanton City of Seaside rowth Management Program, City of Pleasanton Affordable Housing Program, City of Seaside Hillside Development Ordinance, City of Pleasanton Corporate Counsel, Patmont Motor Werks (Go-Ped0) Affordable Housing Prop-am, City of Pleasanton General Counsel, Preferred Capital Investment General Plan, Town of Danville Company Zoning Administration, Town of Danville General Counsel, Jones Fresno Real Estate and Litigation Manager, City of Roseville Property Management Group Comprehensive Charter Revision, City of Roseville Campaign Expenditures Ordinance, City of Howard Jarvis Taxpayers Association v. City of Roseville Roseville, 106 Cal.App.4th 1178 (2003), interpreting Administrative Citations and Remedies Ordinance, the provisions of California Proposition 218 regarding City of Roseville in lieu utilities franchise fees. Street Excavation and Repair Ordinance, City of Roseville People v. Ostrander, Placer County Superior Court Comprehensive Zoning Ordinance Revision, (1998) first conviction in nation against bar owner City of Roseville allowing smoking in a place of employment under Chairman, Board of Hearing Examiners, California Labor Code section 6404.5. City of Roseville

Personal Information

:lard grew up in and around Monterey, is a product of local public schools, Cal Poly, San Luis Obispo and the Santa Clara University School of Law. He and his wife Lori live in Monterey where they are active community volunteers. They enjoy golf and spending time with family, friends and their dog Allie. Richard is also active in the Monterey Bay MathCounts program, sponsored by the California Society of Professional Engineers, Monterey Bay Chapter, which holds an annual math skills competition for regional middle-school students. MPRWA Meeting, 9/27/2012 , Item No. 5., Item Page 63, Packet Page 85

Monterey Peninsula Regional Water Authority Date: September 27, 2012

Agenda Report Item No: 6.

Date: September 24, 2012

To: MPRWA Board of Directors

From: John Dunn, Interim Executive Director

Subject: MPRWA Executive Director Position ______

At the September 12 th Special meeting of the Authority, it was requested that the Board’s earlier decision to authorize the recruitment/selection of an Executive Director be re-visited. The implication was that between the contract with the City of Monterey for the provision of Clerical Services and the assistance of the Executive Director of the MPWMD who serves as Chairman of the Technical Advisory Committee, the Executive Director position may not be needed.

For background information, the Authority Board Authorized, at your August 16 th meeting, the preparation of a job announcement, including a description of duties and responsibilities and, with the assistance of the City of Monterey Human Resources office, the advertisement of the position and the solicitation of proposals. Sixteen candidates submitted proposals which were examined by the President – designated Ad Hoc Committee, who recommended to the President and Board that two candidates be interviewed, and a selection be made by the Board. That matter could not be scheduled for the September 12 th meeting because of a change in the meeting time which made it a Special meeting.

The choices before the Authority are:

(a) to confirm your earlier decision, to proceed with the selection of an Executive Director, or (b) to determine that, under current circumstances, the position is not necessary.

If (a) above is selected then it would be necessary for the Authority to consider the recommendation of the Ad Hoc Committee, or some variant of the Committees recommendation as desired, interview the candidates in open or closed session, as the Board may choose, and make, in open session, a selection of Executive Director.

In either decision, that the position is not necessary or that a new Executive Director is selected, I will be ending my responsibilities as Interim Executive Director no later than September 30 th in order to devote more time to the affairs of the City of Seaside. I express my deep gratitude to the Board for the important work you are doing on behalf of the larger Monterey Peninsula community.

If further assistance is needed on this matter I will be happy to provide it.

MPRWA Meeting, 9/27/2012 , Item No. 6., Item Page 1, Packet Page 87 Mayor Della Sala Chair Mayor Bachofner, Vice-Chair June 5, 2012 Page 2

MPRWA Meeting, 9/27/2012 , Item No. 6., Item Page 2, Packet Page 88 TO MPRWA Board of Directors

FROM: Fred Meurer, City Manager on behalf of John Dunn, Interim Executive Director

DATE: September 24, 2012

SUBJECT: Recommendation Regarding MPRWA Executive Director Position

Attached to this memo is a memorandum regarding appointing an Executive Director for the JPA sent to you by Mr. Dunn on September 18 m . His memo highlighted the options before the Board of MPRWA as a result of Board discussions at the meeting of September 12th . Since Mr. Dunn developed that memo, the City Managers have had an opportunity to review and develop their recommendations. Mr. Dunn will be out of town on the night of the Board meeting. He has asked that I present the information to the Board in his absence.

The six City Managers of the Peninsula cities unanimously agree that their recommendation is that the Board of Directors move forward with the selection of an Executive Director that is dedicated in his/her support of the Board objectives. Our concern is that the authority will fall short of its potential without a dedicated Executive Director. While each of the City Managers has contributed to the efforts of forming the JPA and helping administer it in this interim period, we all have a shared concern that there has been inadequate focus and professional management support being provided to the Board. We believe that a Board decision to go without an Executive Director in the future would severely undermine the Agency's ability to achieve its objectives. Therefore, we unanimously recommend that you move forward with the selection of an Executive Director. If you are not satisfied with the recommendations of the subcommittee, the Board should invite additional applicants for interview to find the right individual that will be dedicated to your collective success.

MPRWA Meeting, 9/27/2012 , Item No. 6., Item Page 3, Packet Page 89 MONTEREY PENINSULA REGIONAL WATER AUTHORITY 580 PACIFIC STREET MONTEREY, CA 93940

A LEADERSHIP VOICE TO ADDRESS THE PRESSING NEED OF ENSURING THE REGION CONTINUES TO HAVE A SAFE, SUSTAINABLE, AND REALIABLF WATER SUPPLY

August 30, 2012 Date: September 12, 2012

Item No: 2. Mr. Chuck Della Sala President, MPRWA Monterey City Hall 580 Pacific Street Monterey, CA 93940

Dear President Della Sala, You earlier designated the undersigned as the Ad Hoc Committee of the Board to examine the responses received from the Executive Director and the Legal Services Requests for Proposals. This letter will only deal with the Executive Director position; we will deal separately with the Legal Services contract. The Authority received sixteen applications for the position of Executive Director. We thoroughly reviewed these applications, and are recoinmending that the Board interview the top two candidates, whom we believe to be Sue McCloud and Bill Hood. Our primary criteria that we applied to the candidates for this position were: 1. Familiarity and knowledge about the Monterey Peninsula, particularly its government structure and operations. 2. Familiarity and knowledge about the water issue (Cal Am service area) on the Monterey Peninsula. Given the impending issue facing the Authority, and the issues soon going before the CPUC, and the CPUC deadline of December 31, 2016, we believe we do not have the time luxury or a longer employee orientation period. 3. Demonstrated ability to get the job done. 4. The ultimate criteria is what person can best help the Authority achieve the goal of gaining a long-term water supply prior to the PUC-established deadline. 5. A compensation package that is affordable to the Authority. We also considered the advantages/disadvantages of a consultant contract vs. an employment agreement and recommend that the Authority pursue a consultant contract with the selected person. We would leave to you and the Board whether we should use a closed session or an open session interview/selection process. We hope that the selection/contract negotiation can be completed by no later than the Board meeting of September 13, 2012. Thank you for giving us the opportunity to serve the Authority Board in this cap &-kc Carmelita Garcia 'David Pendergrass Mayor Mayor City of Pacific Grove City of Sand City

MPRWA Meeting, 9/27/2012 , Item No. 6., Item Page 4, Packet Page 90 Job Bulletin Page 1 of 3

CITY OF MONTEREY invites applications for the position of: EXECUTIVE DIRECTOR Monterey Peninsula

Regional Water Authority

An Equal Opportunity Employer

Salary: Under Review SALARY:

OPENING DATE: 08/13/12

CLOSING DATE: 08/24/12 05:00 PM

DESCRIPTION:

The Monterey Peninsula Regional Water Authority

The Monterey Peninsula Regional Water Authority (MPRWA) was created in early 2012. MPRWA is a Joint Power Authority (JPA) that consists of six cities, the Cities of Carmel-by-the-Sea, Del Rey Oaks, Monterey, Pacific Grove, Sand City and Seaside. The purpose is to study, plan, develop, finance acquire, construct, maintain, repair, manage, operate, control and govern Water Projects either alone or in cooperation with other public or private non-member entities. The Executive Director shall be appointed by the Board of Directors and shall serve as the Chief Administrative Officer of the Authority.

Application Process

Applicants are required to submit a cover letter of interest, resume, list of references, and compensation requirements to include base salary by August 24, 2012 at 5:00 p.m.

The cover letter of interest shall be a one-page statement about your desire to serve in this position and an overall statement of your suitability/capability for this position. A no-more-than- 2 page resume shall include relevant job experience, education and special qualifications. An additional one page list of references and compensation requirements is to be submitted as well and should include your preferred salary. It is not anticipated that there will be any benefits associated with this position.

Please e-mail your interest material to [email protected] by the August 24th deadline of 5:00 p.m. Any questions about MPRWA or the position please call Fred Meurer, City Manager of the City of Monterey (831-646-3760) or John Dunn, Interim City Manager of the City of Seaside (831-899-6701 or 831-394-7849).

EXAMPLES OF DUTIES:

The job duties listed below are illustrative but not exclusive of the duties and responsibilities of the position.

Policy Related Functions:

MPRWA Meeting, 9/27/2012 , Item No. 6., Item Page 5, Packet Page 91 http://agency.governmentjobs.com/montereyca/job_bulletin.cfm?JobID=510676 9/19/2012 Job Bulletin Page 2 of 3

1. Work with the Chairperson of MPRWA to prepare the agenda for the forthcoming meeting, and maintain a list of candidate items for subsequent meetings. 2. Prepare recommendations on policy matters and action items, as requested by or agreed upon by the Board. 3. Respond to Board member requests for information, requests to add items to the agenda or to consider certain issues. 4. Prepare press releases to inform press/media, to keep public informed of MPRWA’s actions and positions. 5. Address requests for information or statements by public and media representatives as appropriate, or refer such inquiries to the Chair or (in his or her absence) to the Vice Chair of the MPRWA. 6. Coordinate and work effectively with the Chair of the Technical Advisory Committee, particularly with regard to Board delegations and placing TAC matters before the Board for consideration/action. 7. Work with Board members to develop improved means of reporting the actions/positions of the Board back to the member agencies.

Policy/Administrative Functions:

1. Serve as liaison to the City Managers of the member Cities, eliciting their help and advice on MPRWA issues. 2. Maintain a listing of forthcoming California Public Utilities Commission (PUC) workshops and hearings, and assist the Board in developing positions and instructing their representatives. 3. Coordinate with person or firm providing legal services to see that Board requests are met in a timely way and that there’s a unified approach to presentations to the Board.

Administrative Functions:

1. Work with the person/agency providing Clerk services on issues relating to agenda preparation, recordation of minutes, review of minutes, maintenance of MPRWA records, complying with Public Records Act requests, use of technology to expedite MPRWA business, and related matters. 2. Provide fiscal agency/banking services for MPRWA or, if a member agency is the designated fiscal agent, coordinate with that agency on financial matters, and coordinate with the Board member designated as the MPRWA Treasurer to maintain accounts of MPRWA. 3. Prepare budget necessary to support agency’s ability to perform functions as determined by the Board of Directors. 4. Maintain a list of and administer contracts that have been approved by MPRWA. 5. Maintain working files as necessary to administer the core functions. 6. Arrange for places for regular and special meetings of MPRWA, unless delegated to another party. 7. Develop programs as necessary to implement policy direction of Board. 8. Develop a “policy binder” so that all adopted Board policies are properly maintained and easily retrieved. 9. Protect, maintain and keep inventory of MPRWA property and equipment. 10. Schedule meetings of such Committees (Regular and Ad Hoc) as the MPRWA have created, and coordinate with Chair to see that the work of MPRWA proceeds. 11. Performs other duties as required to best ensure the smooth operation of MPRWA.

TYPICAL QUALIFICATIONS:

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MPRWA is seeking a well-qualified Administrator who has experience with a Public Agency Board of Directors on matters of public policy. The person should have general knowledge of California law governing public agencies and their governance including the Brown Act and the Public Records Act. The person must have an ethical commitment to fair, open and accessible and honest government. The Executive Director should be an effective manager, capable of working with people of diverse backgrounds and different perspectives, and be fully explanatory and articulate in the written and spoken word.

The Executive Director must have a positive record of experience of working with public agency legislative bodies, and be sensitive to the needs of Board members as they deal with their fellow City Council members and constituents.

It is helpful and desirable that the Executive Director have some familiarity with the governmental structure of the Monterey Peninsula and the water supply issues of the Peninsula; however, it is important that the person not be identified with or locked into a position which would prevent fair and objective treatment of the issues and projects before the Authority.

The position of Executive Director will be approximately a half-time position, so the person holding this position should have 20 hours a week available for this task, with the realization that some weeks may require more hours and less for other weeks. This would include MPRWA meetings which are scheduled for the second and fourth Thursday evenings from 6-9 p.m. (approximately), and occasional special meetings. There will be a need for occasional meetings with the Board Chair, Board Committees (usually Ad Hoc) including the Chair of the Technical Advisory Committee, legal counsel and the clerical services provider.

APPLICATIONS MAY BE FILED ONLINE AT: Job # http://www.monterey.org EXECUTIVE DIRECTOR MONTEREY PENINSULA REGIONAL WATER AUTHORITY OUR OFFICE IS LOCATED AT: GR 735 Pacific Street; Suite B Monterey, CA 93940 831-646-3765 831-646-3765 [email protected]

An Equal Opportunity Employer

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Monterey Peninsula Regional Water Authority Date: September 27, 2012

Agenda Report Item No: 8.

FROM: President Della Sala Prepared By: Secretary to the Board

SUBJECT: Information

Regularly scheduled meetings for the MPRWA through the end of year 2012 are as follows:

1. October 11, 2012 at 7:00 p.m. 2. October 25, 2012 at 7:00 p.m. 3. November 8, 2012 at 7:00 p.m. 4. December 13, 2012 at 7:00 p.m. 5. December 27, 2012 at 7:00 p.m.

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