MPRWA Final Agenda Packet 02-12-15

8/9/2019 MPRWA Final Agenda Packet 02-12-15

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1

Closed Session AgendaMonterey Peninsula Regional Water Authority (MPRWA)

6:30 PM, Thursday, February 12, 2015

SPECIAL MEETINGCouncil Chamber580 Pacific Street

Monterey, California

CALL TO ORDER

CLOSED SESSION AGENDA ITEMS

cs1. Pursuant to Government Code 54957 - Performance Evaluations Positions: Executive Director And Authority Legal Counsel

ADJOURNMENT

The Monterey Peninsula Regional Water Authority is committed to including the disabled in allof its services, programs and activities. In compliance with the Americans with Disabilities Act,if you need special assistance to participate in this meeting, please contact the Monterey CityClerk’s Office at (831) 646-3935. Notification 30 hours prior to the meeting will enable the Cityto make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II]. Later requests will be accommodated to the extent feasible. Forcommunication-related assistance, dial 711 to use the California Relay Service (CRS) to speak

to City offices. CRS offers free text-to-speech, speech-to-speech, and Spanish-languageservices 24 hours a day, 7 days a week. If you require a hearing amplification device to attenda meeting, dial 711 to use CRS to talk to the Monterey City Clerk's Office at (831) 646-3935 tocoordinate use of a device.

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

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AgendaMonterey Peninsula Regional Water Authority (MPRWA)

Regular Meeting

7:00 PM, Thursday, February 12, 2015

Council Chamber580 Pacific Street

Monterey, California

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

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

CONSENT AGENDA

1. January 8, 2015 Regular Meeting - Milton

2. Approval of Checks Through February 12, 2015 - Milton

AGENDA ITEMS

3. Adopt Resolution Authorizing The Authority President To Extend The Contract With The City Of Monterey For Executive Director Services And To Request The City Of MontereyTo Extend Its Contract With James M. Cullem For That Position - Milton

4. Discuss Accomplishments of The Water Authority Since Its Formation to the Present -

Burnett

5. Receive The 23 January 2015 Update to the CPUC Schedule and Discuss the Delay in the Release of the DEIR and Other Changes and Decide on a Course of Action if Needed - Cullem

6. Approve Invitation to New Interim General Manager of the Marina Coast Water District to Serve As A Member of The Water Authority Technical Advisory - Cullem

7. Receive Report On Monthly Reports To The Authority Board On Activities Of The Public

Outreach Consultant And Discussion Of Priorities. - Beleny

8. Designation of Alternate To Serve As A Representative of The Authority On The

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Thursday, February 12, 2015

2

Governance Committee. - Cullem

9. Receive Update, Discuss, And Provide Direction On Water Authority Participation In

Obtaining A Cease and Desist Order (CDO) Extension - Burnett

10. Receive And Discuss The Current "Summary" Monterey Peninsula Water Supply Project Schedule Including The Status Of The Test Slant Well Construction And An Evaluation Of The Technical, Economic, And Legal Feasibility Of Slant Wells After Data Is Available From The Test Well - Crooks

11. Receive Year End Budget Review for Fiscal Year 2014-15, Discuss, and Provide

Guidance To Staff. - Cullem

12. Discuss Implications Of An Earlier Start Time For Future Meetings - Milton

ADJOURNMENT

The City of Monterey is committed to including the disabled in all of its services, programs andactivities. In compliance with the Americans with Disabilities Act, if you need special assistanceto participate in this meeting, please contact the City Clerk’s Office at (831) 646-3935.Notification 30 hours prior to the meeting will enable the City to make reasonable arrangementsto ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II]. Later requests willbe accommodated to the extent feasible. For communication-related assistance, dial 711 to usethe California Relay Service (CRS) to speak to City offices. 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 hearingamplification device to attend a meeting, dial 711 to use CRS to talk to the City Clerk's Office at(831) 646-3935 to coordinate use of a device.

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

http://../agdocs.aspx?doctype=agenda&itemid=79872http://../agdocs.aspx?doctype=agenda&itemid=79873http://../agdocs.aspx?doctype=agenda&itemid=79873http://../agdocs.aspx?doctype=agenda&itemid=79874http://../agdocs.aspx?doctype=agenda&itemid=79874http://../agdocs.aspx?doctype=agenda&itemid=79874http://../agdocs.aspx?doctype=agenda&itemid=79874http://../agdocs.aspx?doctype=agenda&itemid=79875http://../agdocs.aspx?doctype=agenda&itemid=79875http://../agdocs.aspx?doctype=agenda&itemid=79876http://../agdocs.aspx?doctype=agenda&itemid=79876http://../agdocs.aspx?doctype=agenda&itemid=79876http://../agdocs.aspx?doctype=agenda&itemid=79875http://../agdocs.aspx?doctype=agenda&itemid=79875http://../agdocs.aspx?doctype=agenda&itemid=79874http://../agdocs.aspx?doctype=agenda&itemid=79874http://../agdocs.aspx?doctype=agenda&itemid=79874http://../agdocs.aspx?doctype=agenda&itemid=79874http://../agdocs.aspx?doctype=agenda&itemid=79873http://../agdocs.aspx?doctype=agenda&itemid=79873http://../agdocs.aspx?doctype=agenda&itemid=79872


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MINUTES

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)Regular Meeting

7:00 PM, Thursday, January 8, 2015COUNCIL CHAMBER580 PACIFIC STREET

MONTEREY, CALIFORNIA

Directors Present: Burnett, Edelen Kampe, Pendergrass, Roberson, Rubio

Directors Absent: None

Staff Present: Executive Director, Legal Counsel, Acting Clerk Lewis

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

PUBLIC COMMENTS

• George Riley with Public Water Now announced that his organization is holding a

presentation on January 19, 2015. The subject matter to be presented relates to slant

wells.

• Tom Rowley with MPTA welcomed Director Roberson, Mayor of the City of Monterey

and urged the Board to occupy the vacant seat on the Board from Monterey County. Mr.

Rowley stressed the importance of filling the vacancy.

• Doug Wilhelm spoke to the Huntington Beach Poseidon Plant construction and the

reasons for its eventual cessation.

President Burnett closed public comment.

CONSENT AGENDA

On motion by Director Pendergrass and seconded by Director Edelen and approved byunanimous vote, the Monterey Peninsula Regional Water Authority approved the consentcalendar as presented (M/S/P 6-0)

1. Approval of Minutes from the December 11, 2014 Regular Meeting

2. Approve and File Checks Through January 8, 2015

AGENDA ITEMS

3. Receive Annual Financial Report and a Full Opinion Audit for FY 2013-14 and 2012 fromMcGilloway, Ray, Brown and Kaufman (Kaufman) CPA

Patricia Kaufman presented the Annual Financial Report and Full Opinion Audit for FY 2013-14

and 2012 from McGilloway, Ray, Brown and Kaufman. No material weaknesses in controls.


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MPRWA Minutes Thursday, January 8, 2015

Monterey Peninsula Regional Water Authority

Regular Meeting Minutes - Thursday, January 8, 20152

The Board received an unmodified opinion. The Board was found to be in a favorable opinion

overall.

President Burnett opened the floor for Directors and the public.

Director Roberson asked about Mid-Year Budget Review in February and thanked the Board for

their service as it relates to the budget.

On motion by Director Rubio and seconded by Director Edelen and approved by unanimousvote, the Monterey Peninsula Regional Water Authority approved the consent calendar aspresented (M/S/P 6-0)

4. Receive Report, Discuss, And Provide Staff Direction On The Updated MPWSP Critical Path(CPM) Permits & Approvals Schedule (Summary Version) To Include The Status of the TestSlant Well, GWR, Pacific Grove Small Projects, And Aquifer Storage (ASR); And DiscussFuture Permits And Approvals Required Of Marina

Ian Crooks, Engineering Manager with California-American Water, spoke about the test slant

wells. Mr. Crooks cited healthy participation by the contractors and mobilization of the seconddrilling crew to continue monitoring wells. The pipeline from the beach to manhole is completed.

Received the discharge permit for the outfall. Electrical work has started and test well drilling

will start at the end of the year and is progressing. Mr. Crooks provided the construction

schedule for all of the pending projects that Cal-Am is currently working on.

President Burnett asked Mr. Crooks to provide updates to the public within the next six to eight

weeks. Mr. Crooks currently provides updates to regulatory agencies and will work to place the

information on their website.

Director Rubio asked if the schedule is on the project website. President Burnett asked Cal-Am

to provide materials in advance to put in the packet before meetings and to provide materials onthe website with regularity. President Burnett asked Mr. Crooks to speak about the lawsuit to

which we responded the paperwork is currently with the clerks to determine a court date.

President Burnett asked when the Board would receive data for financial feasibility. Mr. Crooks

stated that the data would be available as soon as the test well is activated. The estimate is

mid-March, after which they will update the data on a weekly basis. President Burnett invited

public to speak.

• Tom Rowley, MPTA, was not privy to updates on the slant well in the Monterey Herald.

Tom Rowley maintained that there was a lack of information about the important events.

Having a successful test of the slant well to see if source water is available for thedesalination project is paramount.

• George Riley shared concerns with MPWSP’s Anticipated Schedule, specifically the

period of time of collecting data between key deadlines. He spoke to the settlement

agreement.

• Doug Wilhelm continued his earlier comments and spoke to the subsurface panel. The

Huntington Beach Poseidon Plant dropped their project for the following reasons: No

slant well experience. Production capacity started at 95 percent and dropped to 52

percent. We need to know if there is going to be inherent fall off with slant wells. It’s


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expected that there will be high maintenance. CCC was an equal partner.

Director Roberson asked about slant well test from Marina Coast Water District and Director

Roberson also questioned feasibility or alternatives to the test well to see if the project is even

feasible.

President Burnett stated that the Board has been waiting a couple of years to get to this point.The test well will make every attempt to answer a lot of questions about feasibility. Construction

questions will inevitably arise. Production of gallons per minutes will affect the question of

feasibility. Salinity of the product water from the test well will determine whether the

hydrogeology is OK.

President Burnett asked about the fall off of production over time. Ian Crooks asked toagendize the Dana Point comparison for the next meeting. Executive Director Cullem informedthe Board that a $1,000,000.00 grant was awarded to Cal Am to be applied toward the cost ofthe test wells. President Burnett deemed report received.

5. Update And Provide Direction On Efforts To Request A Modification To The Cease and DesistOrder

President Burnett stated there are issues with the Cease and Desist Order which will stop

unpermitted pumping by 2016. The Board will seek to modify the Cease and Desist Order

(CDO) in order to meet Cal-Am’s production schedule. State Water Board is cognizant that the

Water Authority is working very diligently to create a new water source. Hopes to have a

modification to the CDO, either in late spring after a draft Environmental Impact Report (EIR) or

in the fall with a CPCN from CPUC. Both dates would fall within 2015. Water Years start in

October and run through September of the following year. For the following water year, the

drop-off would be less significant with the 1,000 Acre Feet. Modifying the CDO would resolve

impending issues and puts the relative amount of pressure to remain focused on deliveringthese projects on time.

Director Roberson asked the Board about the water schedule and about the 1,000 Acre Feet.

President Burnett maintained that the 1,000 Acre Feet came from previous conservation efforts.

Director Pendergrass spoke to importance of the project and offered his opinion in regards to

the State Water Board’s sentiment.

President Burnett invited the public to comment on the item.

• Tom Rowley, MPTA, spoke to his previous involvement in the original scoping of a desal

project. Mr Rowley was invited to participate in the discussion on developing a

consensus of a peninsula project. Proposal came up with the three parties and regional

desal plant. Requests for extension, CDO is against Cal-Am, spoke to no representation

of the County on the current board. Ratepayers and taxpayers not getting the fines

passed on. The underlying concern at the December meeting was apprehension about

ratepayers footing the bill.

• George Riley with Public Water Now spoke to two venture capitalists spending money to


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resolve issues. There needs to be a contingency factor that “if feasible” is a legitimate

question. The second choice ought to be a legitimate argument that the Board has a

backup plan. What is the alternative if the slant wells fail?

• John Narigi with The Coalition of Peninsula Businesses stressed that in the commercial

sector that if rationing occurs, there isn’t much water left to surrender. All retrofits and

pertinent options have been exhausted.

President Burnett and Director Edelen responded to public comment. Vice President Kampespoke to a received article on Los Angeles and their conservation efforts. Director Robersonspoke to possible litigation or take political action against the State Water Board. DirectorPendergrass would like to speak with the Governor’s office and provide them with thePeninsula’s conservation efforts. President Burnett spoke to the possibility to invite the StateWater Board to the Peninsula to show them conservation efforts as they relate to the CDO.Legal Counsel Don Freeman stated that the State Board is receptive to a controlled andeducated approach. President Burnett closed public comment and deemed report received anddiscussed.

6. Receive Report, Discuss, And Provide Staff Direction On Updated CPUC Schedule

Executive Director Cullem spoke to the purpose of the updated schedule and task list for

MPWSP Post Settlement, provided updates and invited questions from the Board. President

Burnett invited comments from the public.

• Tom Rowley, MPTA, saw General Manager Dave Stoldt’s presentation on the

agreements that were needed and stated that it wasn’t discussed in great detail. GWR

being run by PCA, transfer the water to Water Management District who would then sell

it to Cal-AM. Asked why GWR couldn’t directly transfer the water to Cal-Am?

• George Riley commented on potable water.

Vice President Kampe questioned Cal-Am about the CEMEX test well and production well.

President Burnett deemed the report received.

7. Establish Water Authority Meeting Schedule For Calendar Year 2015

Director Edelen asked about modifying the start time of the contingent meetings and asked

Executive Director Cullem about the possibility of moving the regular meeting time to 6:00 PM.

• President Burnett opened the item up to the public and Tom Rowley thanked the Boardfor their support.

Director Rubio stated that if there weren’t enough action items to warrant a meeting that ameeting shouldn’t be held.

No action was taken.

ADJOURNMENT


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ATTEST:

Michael Lewis, Acting Clerk, City of Seaside Jason Burnett, MPRWA President


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Monterey Peninsula Regional Water AuthorityAgenda Report

Date: December 11, 2014

Item No: 2

FROM: Authority Clerk Milton

SUBJECT: Approval and File Authority Checks Through February 12, 2015

RECOMMENDATION:

It is recommended that the Authority approve and file the accounts payable paymentsmade during the period January 8 to February 12, 2015 with total payments for theabove referenced period of $8,189.47 from the general fund account and authorize theDirectors to sign for such checks.

DISCUSSION:

At its meeting on September 12, 2013, the Authority Board approved a staffrecommendation to provide the Directors a listing of general checks issued since the lastreport so that it can inspect and confirm these checks. Each invoiced expense has beenreviewed and approved by the Executive Director and Finance personnel prior to paymentto insure that it conforms to the approved budget.

The following checks are hereby submitted to the Authority for inspection andconfirmation.

• $ 1,225.00 to Environmental Relations for public outreach and website updates

• $ 2,380.00 to McGilloway, Ray, Brown and Kaufman for Audit Services

• $ 4,584.47 to Brownstein Hyatt Farber and Schreck for Special Legal CounselServices.

The bank balance as of February 5, 2015 is sufficient cover the above check therefore,staff is recommending approval.

ATTACHMENTS:

• Budget to Actual Report through February 5, 2015


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2:18 PM

02/06/15

Accrual Basis


Profit & Loss Budget vs. Actual July 1, 2014 through February 6, 2015

Budget

Actual Jul 1,

'14 - Feb 6, 15 Balance % of Budget

Ordinary Income/Expense

Income

47200 · Program Income

47230 · Membership Dues 458,680.00 334,196.00 124,484.00 72.86%

47240 · Program Service Fees 0.00 0.00 0.00 0.0%

47250 · Reimbursement SPI Contract 0.00 18,562.14 -18,562.14 100.0%

47260 · Reimburesment VE Contract 0.00 0.00 0.00 0.0%

47200 · Program Income - Other 0.00 0.00 0.00 0.0%

Total Income 458,680.00 352,758.14 105,921.86 76.91%

Expense

60900 · Administration and Clerical

60901 · Clerk of the Board 24,000.00 24,000.00 0.00 100.0%

60902 · Executive Director 94,680.00 17,603.81 77,076.19 18.59%

60903 · Principal Offc of the Authority 5,000.00 0.00 5,000.00 0.0%

60904 · Financial Services 6,000.00 6,000.00 0.00 100.0%

60905 · Misc Admin Expenses 500.00 0.00 500.00 0.0%

60900 · Administration and Clerical - Other 0.00 0.00 0.00 0.0%

Total 60900 · Administration and Clerical 130,180.00 47,603.81 82,576.19 36.57%

62100 · Legal Fees

62110 · Board Counsel 63,000.00 20,000.00 43,000.00 31.75%

62140 · Special Counsel 152,000.00 21,900.38 130,099.62 14.41%

62100 · Legal Fees - Other 0.00 0.00 0.00 0.0%

Total 62100 · Legal Fees 215,000.00 41,900.38 173,099.62 19.49%

62800 · Contract Services

60801 · Public Outreach 35,000.00 2,408.33 32,591.67 6.88%

62802 · Audit Services 6,000.00 4,425.00 1,575.00 73.75%

62803 · Televised Meeting 10,000.00 2,537.50 7,462.50 25.38%

62804 · Contract Services & Studies 30,000.00 0.00 30,000.00 0.0%

62805 · Contract SPI 0.00 0.00 0.00 0.0%

62800 · Contract Services - Other 0.00 0.00 0.00 0.0%

Total 62800 · Contract Services 81,000.00 9,370.83 71,629.17 11.57%

65000 · Insurance 7,500.00 6,673.44 826.56 88.98%

65100 · Travel Expenses 5,000.00 325.00 4,675.00 6.5%

66000 · Payroll Expenses 0.00 0.00 0.00 0.0%

68300 · Contingency 20,000.00 0.00 20,000.00 0.0%

Total Expense 458,680.00 105,873.46 -352,806.54 23.08%

Net Ordinary Income 0.00 246,884.68 458,728.40 53.83%

Other Income/Expense

60806 · Contract VE 200,000.00 104,988.64 95,011.36 52.49%

Page 1 of 1


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Date: February 12, 2015

Item No: 3.

№06/12

FROM: Authority Clerk Lesley Milton

SUBJECT:Adopt Resolution Authorizing The Authority President ToExtend The Contract With The City Of Monterey For ExecutiveDirector Services, To Request The City Of Monterey To ExtendIts Contract With James M. Cullem For That Position

RECOMMENDATION:

It is recommended that the Monterey Peninsula Regional Water Authority(MPRWA) extend the contract with the City of Monterey for employmentservices for the Authority Executive Director position, to approve aResolution accordingly, and to request the City to extend its employmentcontract with James (Jim) M. Cullem to serve as the Executive Director forthe MPRWA.

DISCUSSION:

At its meeting of January 24, 2013, the Water Authority Board approved

Resolution 2013-04 and entered into an annual, renewable, contract with

the City of Monterey for Executive Director services. In May 2013, with the

approval of the Water Authority Board, the City hired Jim Cullem through

an annual, renewable contract to replace Bill Reichmuth as Executive

Director following Bill's resignation. At its meeting of March 13, 2014, that

contract with the City was extended to February 14, 2015. The City also

extended Jim Cullem's contract until Februrary 14, 2015.

At its meeting of February 12, 2015, the Water Authority Board will conduct

a performance review of the Executive Director and should therefore be in

a position to determine if Jim Cullem should, or should not, continue to

serve in that position.


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Should the Water Authority decide to extend the contract with the City for

Executive Director services and (or not) request the City to extend its

contract with Jim Cullem, staff requests the extension be effective for 18

months to allow consideration after the end of the fiscal year.

The Authority is also requested to authorize the President to sign the

necessary documents prior to the February 14, 2015 contract expiration

date.

BUDGET CONSIDERATIONS:

The Executive Director position for FY 2014-2015 was budgeted by theWater Authority at its meeting of April 10, 2014. Funding of the position for

FY 2015-2016 will be addressed at the Authority budget meeting in April

2015.

ATTACHMENTS:

A-Resolution 2015-XX

B-Contract with Monterey for Executive Director Services


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RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE MONTEREY PENINSULA

REGIONAL WATER AUTHORITY

APPROVE CONTRACT FOR EXECUTIVE DIRECTOR / LICENSED PROFESSIONAL

ENGINEER SERVICES

WITH THE CITY OF MONTEREY

WHEREAS, the City of Monterey is a member city of the Monterey Peninsula RegionalWater Authority; and

WHEREAS, the City of Monterey has agreed to provide the services of ExecutiveDirector/Licensed Professional Engineer to the MPRWA; and

WHEREAS, the President and MPRWA Directors have reviewed the contract and agrees toits terms and conditions; and

WHEREAS, the cost of retaining the Executive Director/Licensed Professional Engineerservices is not to exceed $94,680 for fiscal year 2014-15 and not to exceed $94,280 for Fiscal year2015-2016.

NOW, THEREFORE, BE IT RESOLVED that the President is hereby authorized to extendon behalf of the MPRWA a contract with the City of Monterey for Executive DirectorServices/Licensed Professional Engineer for the MPRWA for a period not-to-exceed 18 months.

PASSED AND ADOPTED BY THE MONTEREY PENINSULA REGIONAL WATERAUTHORITY this ___ day of ____ 201_, by the following vote:

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

APPROVED:

ATTEST:

Jason Burnett, President

Lesley E. Milton–Rerig, Clerk to theAuthority


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AGREEMENT

FOR PROFESSIONALSERVICES

James

M.

Cullem

WATER AUTHORITf DIRECTOR

f

THIS

AGREEMENT madeand

entered

into

this_^^__day of

^2^7

2014 byand

between the CFTY OF MONTEREY, a

municipal

corporation of the State of California,

City', and

James M. Cultem, Water Authority

Director,

h r in referred

to

as Employee.

WITNESSETH:

WHEREAS, City

requires certain administrative

and

professional services

in the

position

of

Water

Auttiority

Director; and

WHEREAS,

Employee

is qualified to furnish such

services

in

accordance

wrth the terms and

conditions hereinafter set forth;

NOW THEREFORE, in consideration of

the

mutual terms, covenants, and conditions

contained herein, the parties hereto agree as follows;

1.

Contract

Appointment

Employee is

hereby

retained in the

position

ot Water Authority

Director,

and as such shall perform

the duties and services ot that

position

as more particularly described in the City's

job

description for

this

position

attached as

(Exhibit

A).

It

is agreed that in fulfilling the duties and services of this ob,

Employee shall be employed on a

half-time

basis, working not more than 960 hours in any fiscal year.

Employee

agrees to

refrain from outside

emp. lpyment

that may conflict with these duties.

2. Status

Employee shall serve

at

the

pleasure of

the City

Manager, subject

to

the terms and conditions hereof,

and

shall not

acquire a property

interest

in

employment

or a

right to continuing

employment with the

City of

Monterey- The

terms, covenants,

and

conditions

of

Employee's

employment

with

the

City

are

expressly limited

by and

to

the

terms,

covenants and

conditions

o( this Agreement. Employee shall

be

considered

a Part-time Employee.

3. Compensation

(a) Rate

- Employee

shall

receive an hourly

rate of $100

per

hour for

the

performance of the above described services. Employee shall not be entitled

to

overtime.

Employee

shall

not receive

any

cost-of-living raises or

salary

adjustments during

the

term

of

this

agreement.

Agreement #-. Ag-4096 Page 1 of 6


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(b) Benefits - During the term of this agreement. Employee shall be entitled

to the

following

benefits:

1) Retirement

System: In

compliance

with

federal

regulations,

Employee will be

enrolled

in the

ICMA

457 Deferred

Compensation program for

City part-time

temporary Employees. The

City

will

make

a 3.

75% contribution (based

on

salary),

and Employee will

have a matching

3.

75%

salary

deduction into

the

retirement plan.

2) Medicare:

In

compliance with Federal regulations, Employee

will be

enrolled in Medicare The

City will

make

a

1. 45%

contribution

(based on salary) and Employee will

have

a

matching

1. 45% salary deduction into

Medicare.

(c)

Employee

shall not

receive

any

employee benefit not expressly set

forth in this paragraph, 3.

Compensation .

4.

Transportation

Employee shall furnish their

own transportation

in the performance of the

duties of

this

position.

Consistent with

City

poltey,

as

outlined in the

City

of

Monterey Reimbursement Policy ,

Employee

may receive mileage reimbursement, or utilize a City

vehicle,

for travel when

mileage

for any specific

trip is

expected

to

exceed

Twenty-Five (25)

miles

one-way.

5. Term

The term

of

this

agreement

shallcommence on

May

16,

2014,

and shall continue

for

a period

of

nine

(9) months,

until February 14, 2015, to

coincidewith

the Moriterev

Peninsula

RegionalWater

Authority's contract term

with the City

of

Monterey,

upon

the

mutual agreement of

the

parties upon the

terms

stated

herein,

as may

be

amended from

time to

time,

6.

Termination

Either

party may terminate

this

Agreement without

cause

upon

giving

the

other

party not

less

than

thirty

(30) days prior written

notice. Should the

Monterey

Peninsu.la Regional

Water

Authprrty Board

terminate the

agreement wrth

the City for

provision

of Executive Director

services,

this Agreement

shall

terminate

as

of

the dale

of

the Board's

vote. Notwithstanding

anything

to

the contrary, Employee

shall, upon

Notice of Termination, deliver to City a written

status

report of

all

projects or

matters in

which Empioyee

is involved In the

event

of

such

termination, all rights

and obligations

of

the parties

hereto shall

thereupon

cease. The

provisions

of this paragraph shall riot be deemed a limitation upon

the

respective

rights or

remedies of

the parties hereto which may

accrue to

them.

7.

Standard

of Performance

All

services to

be

performed by Employee, pursuant to paragraph 1, hereof, shall be performed in

accordance

with all

applicable ordinances,

policies, and rutes and

regulations

of the City.

Agreement». Ag-4096 Page 2 of 6


17/69

8. Non-assianability

Employee

shall not

sub-cqntract,

assign, sell,

mortgage, hypothecate,

or otherwise transfer

Employee s interests, rights,

duties or obligations hereun der in anymanner,

without

the express

prior

written consent

of

the

City.

9. Non-Discrimination

The ity

does not

discriminate in the hiring and

employment

of persons

for

the work

under

this

Agreement or related to any City project Because

of

the race, religious creed, color, national origin,

ancestry, physical

disability,

mental disability, medical condition, genetic information,

marital

status,

sex, gender, gender identity, gender

expression,

age, sexual orientation,

or

military

and

veteran status

of

any

person.

INWITNESS

WHEREOF,

The

parties

hereto have

executed

this

agreement

the

day

and

year

first hereinabove

written.

City

of Monterey, a

Municipal Corporation of the

State of California

B/M-ALL

fchael MfcCarthy,

BY :

les M. Cullem,

Water

Authority Director

S.\70W.

BSp«lN*-t


18/69

EXHIBIT

WATER AUTHORITY

DIRECTOR

The

IVtonterev

Peninsula

Regional Water Authority

The Monterey Peninsula

Regional

Water

Authority

(MPRWA) was created

in

early

2012.

MPRWA

sa

Joint

Power

uthprity

(JPA) hatconsistsof

sixaties

the Cities

ofCarmel-by-the-Sea.

Del Rey

Oaks,

Monterey,

Pacific

Grove, Sand

City and SeaskJe;

The

purpose

is

to study,

plan develop,

finance acqu '^

construct., maintain, repair, manage, operate. control and govern

Water Projects

either alone or in

cooperation with

other public

or

private

non-member

entities

The Watef

Authority

Director willbe

a

part-time Cily ofMonterey employee,

to be

selected by and

reporting

to

the City

of

MontereyCity

Manager.

Examples of

Duties

The obduties

isted

below

are liustralive

butnot

exclusive

of

he

duties

and

responsibilities of the

position. .

Policy Related Functions:

1. Work with

the Chairperson of MPRWA to prepare the

agenda for

the

forthcoming meeting, and

maintain

a listof

candidate

tems orsubsequent

meetings.

2. Prepare

recoinmendations

on

policy

matters and

action items, as

requested by oragreed upon

by

he

Board.

3.

Respond to

Board member refluests for nformation,

requests

to add

tems

to

the

agenda

or

to

consider

certain

ssues.

4. Prepare

press

releases

to

nformpress/media,

to

keep

public

nformed

of

MPRWA s actions

and positions.

5.

Address

requests

for

information or statements

by public arid

media

representatives as appropriate, or refer

such

inquiries

to the

Ghairor (in

his

orher

absence) to

the

Vice

Chair

of he

MPRWA.

6 Coordinate and

work

effectively with the Chair of the Technical Advisory

Committee, particulartywith regard o Boarddetegatrons

and

placingTAG

matters

before

the

Board for

consideration/action.

7. Work with Board members to develop

improved

means of reporting the

actions/positionsof he

Board

back o he memberagencies.

Poljcy/Administrative

Functions:

1. Serve as liaison

to

theCity Managere of the member Cities, eliciting their

help

and

advice on

MPRWA ssues.

Agreement ffc Ag-4096

Page

4 of 6


19/69

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

refluests 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 serv»ces

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 nnember

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

o

MPRWA

3. Prepare budget necessary to support agency's abijity

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

detegated

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

property

maintained and easily

retrieved.

9.

Protect, maintain

and

keep inventory

o

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.

Agreement #: Ag-4096 Page 5 of 6


20/69

EXHIBIT B

MONTEREY PENINSULA REGIONAL

WATER

AUTHORTTY

April

14, 2014

Mike

Mccarthy

Interim

Cily Manager

City at Momerey

580

Pacific Street

Monterey,

CA

83940

Directors;

Chuck Ocib Szb.

Tncydcni

1awn Biimcit. Vice PICMCICDI

K.ilpl-t Ruhxi.S*


21/69

EXHIBIT A

SCOPE OF SERVICES PAYMENT PROVISIONS

EXECUTIVE DIRECTOR SERVICES

I

ity of Monterey to Provide the Following:

A. Executive Director Duties and Services Policy Functions

•

W ork to prepare agendas and packets for Board TA C meetings

•

Prepare recomm endations on policy matters and action items

• Respond to A uthority requests for information or agenda items

•

Keep press/media informed of MPR WA actions

•

Address requests for information or statements by public or m edia as appropriate

•

Coordinate with Chair of the Technical Advisory C omm ittee regarding board delegations

and placing TA C m atters before the Au thority for consideration/action

B Administrative Functions

•

Serve as liaison to the City M angers of the mem ber cities

•

Maintain listing of forthcoming CP UC workshops and hearings, assist Authority in

developing positions and instructing their representatives

•

Coordinate with legal services so board requests are met in a timely way

•

Work with agency proving clerk services for agenda management, recordation of

minutes, maintenance of records, comp lying with Public records act requests, and

related matters

• Coordinate with the designated fiscal agent, on financial matters, and coordinate with

the Authority Treasurer to maintain accounts of MPRWA

•

Prepare budget necessary to support agency s ability to perform functions

• Maintain list of contracts approved by the M PRW A

•

Develop policy binder of all board adopted policies

•

Develop program s as necessary to implement po licy direction of B oard

•

Maintain wo rking files as necessary to adm inister the core functions

•

Arrange for places for regular and special meetings of M PRW A, unless delegated to

another party

•

Protect, maintain and keep inventory of MPRW A property and equipment

•

Schedule meetings of such Com mittees (Regular and Ad HOC) as the MPRW A have

created, and coordinate with Chair to see that the work of M PRW A proceeds

•

Performs other duties as required to best ensure the smooth operation of MPR W A

C .

iscellaneous Services Performed by C ity of Mon terey:

•

Payroll Services for Monterey em ployee(s) providing these services (this emp loyee w ill

be allocated within the Office of the City Manager to be paid as part of the City s

regular payroll to the em ployee performing the services described in Exhibit A h erein)

7


22/69

•

Tracking of emp loyee hours and resultant costs of services provided

•

Invoices requesting paym ent for services are to be submitted on a m onthly basis by the

City of Mo nterey to the designated fiscal agency

II PRW A to Provide the Following:

•

Reimbu rsement to the City of Monterey shall be made within thirty 30) days after

receipt of invoice

III.

xecutive Director Rate and udget

Executive Director Services — Hourly Rate and Expenses

105.20

600

490

114,668

17,200

131,868

Benefited Wage Per Hour

Hours Budgeted Through July 30, 2013

Hours Budgeted July 1 through December 31, 2013

Total Wages

Administrative, Travel and Meeting Expenses (15%)

*Note -

MPRWA budget is based on a fiscal year. A new budget for Executive Director expenses

will be created for fiscal year 2014. This contract is contingent upon the MPRWA approving the

budget for the Executive Director position for Fiscal year 13-14.


23/69


24/69



Item No: 4.

.

, , .

:

2.2 12, 2012

14, 2013

: "

, , :

(1) , , , , ,

; (2)

' ."

:

,

1, 2017.

, ,

, ().

11, 2014,

2013/2014 :

: , ,

/

23, 2015, '

2015.


25/69



Item No: 4.

: , 936

.

.

:

" " 2015.

.

: , , ,

.

.

2015.

,

( ) : , ,

,

15, 2014. , '

12, 2014. , ,

.

: , , ,

. 2015,

.


26/69



Item No: 4.

:

, " "

.


27/69


28/69



Item No: 5.

№06/12

FROM: Executive Director Cullem

SUBJECT: Receive the 23 January 2015 Update to the CPUC Schedule,Discuss the Delay in the Release of the DEIR and OtherChanges, and Decide on a Course of Action if Needed

RECOMMENDATION:

Staff recommends that the Water Authority review and discuss the currentCPUC schedule for the Monterey Peninsula Water Supply Project(MPWSP) as annotated by staff and decide if any action by the WaterAuthority Board or staff is needed.

DISCUSSION:

At its meeting of January 8, 2015, the Water Authority received a January5, 2015 staff revision of the October 7, 2013 CPUC schedule for the

MPWSP including the activities needed for the GWR project.

On January 23, 2015 CPUC Administrative Law Judge (ALJ) Weatherfordannounced a decision making additional changes to the CPUC schedule(attached).

Also attached is a January 23, 2015 update of the CPUC schedule, withchanges from the original October 7, 2013 schedule highlighted in red. Thehighlighted schedule should facilitate discussion, identify deadline dates,

and suggest actions the Board may deem to be appropriate.

ATTACHMENTS:

A- CPUC ALJ Gary Weatherford Ruling dated 1/23/2015B- Updated CPUC schedule for the MPWSP dated January 23, 2015.


29/69

143858682 - 1 -

GW2/sbf/avs 1/23/2015

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of California-American WaterCompany (U210W) for Approval of theMonterey Peninsula Water Supply Projectand Authorization to Recover All Presentand Future Costs in Rates.

Application 12-04-019(Filed April 23, 2012)

ADMINISTRATIVE LAW JUDGE’S RULING UPDATING SCHEDULE

In order to allow the Draft Environmental Impact Report (DEIR) for the

Monterey Peninsula Water Supply Project (MPWSP) to incorporate more

complete data, the procedural schedule for Phase 1 of this proceeding is

modified. The primary changes are that the DEIR may be issued later than

previously scheduled, and that there will be a comment period on the DEIR of

60 days, rather the previous 45 days.

In addition, given the large number of parties in this proceeding, a ban on

ex parte communications with decisionmakers is effective immediately. Two

all-party meetings will be added to the revised schedule to allow for parties to

present their views to the Commissioners in a fair and controlled manner.

In a previous ruling issued by Administrative Law Judge Minkin on

August 21, 2014, parties’ Opening Briefs on legal and policy issues were due

60 days after issuance of the DEIR. To accommodate the revised comment

period on the DEIR, Opening Briefs are now due 75 days after issuance of the

DEIR, with Reply Briefs due 15 days after Opening Briefs.

FILED1-23-15

01:36 PM


30/69

A.12-04-019 GW2/sbf/avs

- 2 -

California-American Water (Cal-Am) has drilled a number of boreholes to

provide stratigraphic data that will be useful in performing hydrologic analysis

for the DEIR. In addition, Cal-Am is drilling a test well at the Cemex site. In the

process of drilling the test well, additional stratigraphic data will be obtained

that could be useful in the DEIR’s hydrologic analysis.1 Incorporation and

analysis of this data, such as its use in modeling runs, is taking more time than

allowed for in the current schedule.

Our DEIR preparation process also needs to remain coordinated with the

DEIR being prepared by the Monterey Regional Water Pollution Control Agency

(MRWPCA) for their Groundwater Replenishment Project, and recent revisions

to the Groundwater Replenishment Project (such as the identification of new

source water) must also be analyzed and incorporated into the California Public

Utilities Commission’s DEIR. In order to include this data and the related

analysis in the DEIR, more time is needed than is provided by the current

schedule. Because of the scope of the EIR, and its relationship to the

Groundwater Replenishment Project, we will be allowing for a 60-day, rather

than a 45-day, comment period on the DEIR.

Finally, it is important that the DEIR (and Final Environmental Impact

Report (FEIR)) provide adequate information and analysis of the possible effects

of the MPWSP on groundwater. The State Water Resources Control Board

(SWRCB) has indicated that this is a topic that is important for the Commission

to address, and has given us some guidance on how to do so. Commission staff

1 Because of the duration required for a pump test from the test well, it is unlikely that

significant pump test data from the test well will be available for the DEIR. In addition, the testwell is subject to litigation that could delay its drilling and operation.


31/69

A.12-04-019 GW2/sbf/avs

- 3 -

has consulted with SWRCB on this issue, and it appears that the potential value

of the additional data and analysis that hopefully will become available

outweighs the cost of the minor delay that is contemplated.

Accordingly, the schedule is modified to be as follows:

April 2015 – DEIR issued for comment.

60 days from DEIR – Comments on DEIR.

75 days from DEIR – Opening Briefs filed and served.2

15 days from Opening Briefs – Reply Briefs filed and served.3

July 2015 – All-party meeting.

October 2015 – FEIR published.

December 2015 – Proposed Decision issued.

January 2016 – All-party meeting.

February 2016 – Proposed Decision on Commission Agenda.

The schedule for Phase 2 of this proceeding may also need to be modified,

but we will not modify it at this time. As the proceeding progresses, we will

evaluate the need to modify the Phase 2 schedule.

IT IS RULED that:

1. The schedule for this proceeding is modified as described above.

2 Briefs shall use a common outline. Cal-Am shall consult with parties to develop acommon outline, and shall serve the common outline no later than 15 days afterissuance of the DEIR.

3 Reply Briefs will follow the same common outline as the Opening Briefs.


32/69

A.12-04-019 GW2/sbf/avs

- 4 -

2. Ex parte communications with decisionmakers in this proceeding are

prohibited.

Dated January 23, 2015, at San Francisco, California.

/s/ GARY WEATHERFORD

Gary WeatherfordAdministrative Law Judge


33/69

23 January 2015

UPDATED Schedule and Task Lis t for MPWSP Post Settlement (REV 23 JAN 2015)

RED are changes from 7 Oct 13 Schedule.

CPUC Calendar Dates

Task Due Date Responsible Party NotesComments onSettlement Agreements

Due

August 30, 2013 Complete

Reply Comments onSettlement Agreements

Due

September 13, 2013 Complete

PrehearingConference: Status ofSettlement Motion (ifany), of CEQA work

& other matters

September 16, 2013 Complete

Quarterly Check-in Call

with Settling Parties

October 2014 MPRWA Complete

Informational Hearingon Settlement Agreements

December 2-3, 2013 Complete

Quarterly Check-in Callwith Settling Parties

January 2015 MPRWA Complete

DEIR circulated forComment

Feb 28, 2014 April 2015

all


April 2015 MPRWA

Cal-Am to file and servea common outline for

legal and policy briefs,after consulting with

parties

April 29, 2014 15 daysafter issuance of DEIR

all

Comments on DEIRDue

April 14, 201460 days from DEIR

all

Common OutlineOpening Briefs filed and

served on legal andpolicy issues

April 29, 201475 days from DEIR

all

Reply Briefs filed andserved on legal and

policy issues

May 14, 201415 days from Opening

Briefs

all

All party meeting July 2015 CPUC

FEIR published June 17, 2014October 2015

CPUC

ProposedDecision addressing

certification of FEIR andissuance of CPCN

July 2014 Phase 1December 2015

CPUC


July 2015 MPRWA

Target for Commission Action on Phase I

August 2014

015621\0002\11340073.1 1/30/15


34/69

23 January 2015

Task Due Date Responsible Party Notes


October 2015 MPRWA

Quarterly Check-in Callwith Settling Parties All party meeting

January 2016 MPRWACPUC

Proposed Decision onCommission Agenda

February 2016 CPUC

Testimony, settlementdiscussions, hearings,

decisions fromSettlement K

December 2014-July2015 November 2015-

June 2016

Cal-Am, MRWPCA,MPWMD, CPUC

See GWR Schedule

015621\0002\11340073.1 1/30/15


35/69

23 January 2015

GWR (Rev 5 JAN 2015)


File Motion forBifurcation of theGWR Decision

August 2013 MRWPCA Complete and Granted

Board Actions to Approve RevisedGovernance Committee

Agreement

August/Sept 2013 MPWMD, MPRWA,County, & Cal-Am To be Completed inOctober

Executed Agreementsfor GWR Source Water

and/or DeclaratoryRelief

Sept-Nov 20136 Party Joint MOU

Approved mid-Oct 2014

MRWPCA Meet & Confer inProgress for Definitive Agreements (March

2015)

Draft WPAOct-Dec 2013 April 2015

MPWMD & MRWPCA Delayed per Oct 2014CPUC Adjustment ofPhase 2 Schedule

Obtain Representationsfrom DPH re Use ofExtracted GWR Water

Oct-Dec 2013June 2014

MRWPCA Dept Public HealthConcept Project Approval received

June 2014

Obtain Representationsfrom RWQCB re Use ofExtracted GWR Water

Oct-Dec 2013June 2014

MRWPCA ????

Storage Agreementwith Seaside Basin

WatermasterOct-Dec 2013 April 2015

MRWPCA & MPWMD

GWR Basis of DesignComplete with At Least

10% DesignOct-Dec 2013October 2014

MRWPCA complete

GWR Financing PlanSufficient for SRF

FundingOct-Dec 2013

May 2015

MRWPCA & MPWMD

Agreement on Terms ofWPA Jan 2014

June 2015

Cal-Am, MRWPCA,&MPWMD

Perform Revenue

Requirement AnalysisIncluding Any DebtEquivalency Effect

Jan-Mar 2014June 2015

MRWPCA & MPWMD

Perform Assessment ofGWR Positive and

Negative Externalitiesfor Any Premium

Showing

Jan-Mar 2014June 2015

MRWPCA & MPWMD

DEIR Circulated July 2014 March 2015 MRWPCA Coord w/Cal Am DEIR

015621\0002\11340073.1 1/30/15


36/69

23 January 2015

Dilution WaterRequirements

July-October 2014Not Required

MRWPCA

Project Approved andFEIR

October 2014September 2015

MRWPCA

CPUC TestimonyPhase Commences

November 2015 Cal-Am, MRWPCA,MPWMD, CPUC

CPUC EvidentiaryHearings

January 2016 Cal-Am, MRWPCA,MPWMD, CPUC

All Permits for GWRConstruction Obtained January 2015

February 2016

MRWPCA For Major Permits

Target for CPUC Actionon Phase 2 Decision

June 2016 Cal-Am, MRWPCA,MPWMD, CPUC

015621\0002\11340073.1 1/30/15


37/69

23 January 2015

Source Wells (Rev 5 JAN 2015)


Drill ExploratoryBoreholes

Sept. 2013 – February2014

Cal-Am Complete

Commence

Hydrogeologic Studyand Technical Report

August 2013 Cal-Am / SVWC Underway

Permits for CEMEXSite Test Well

January 2014 Nov 12,2014

Cal-Am Coastal Commission Approved CDP.

CEQA lawsuit pending

Drill CEMEX Site TestWell

February 2014 NovDec14-FebMar 15 subject

to Coastal Commission

Cal-Am

Results of Test WellOperation Obtained

February 2014 2015 –February 2016 2017

Cal-Am Delayed -see above

Hydrogeologic Studyand Technical Report

Complete and ResultsFiled with CPUC

June 2015

?

Cal-Am Delayed -see above

Necessary Agreementsfrom CEMEX for

Source Wells

Nov. 2015, or sooner?Nov 2016, or sooner

Cal-Am

All Necessary Permitsfor Construction of

Source Wells Obtained

Nov. 2015, or sooner?Nov 2016 or sooner

Cal-Am

015621\0002\11340073.1 1/30/15


38/69

23 January 2015

Securit ization (Rev 5 JAN 2015)

Initial Revision and

Redline of Legislation

Early September 2013 MPWMD Complete

Obtain Cal-Am Input onDraft Legislation

Late September 2013 MPWMD, MPRWA, &Cal-Am

Complete

Retain Necessary

Additional

Financial/Legal

Consultants (Charles

Atkins)

October 2013 MPWMD In ProgressComplete

Revise Financial

Comparison of

Securitization v. Cal-Am

Financing

October 2013 MPWMD & Cal-Am In ProgressOn-Going

Meeting with

Community/Interest

Groups and Cities

October-December

2013

MPWMD & MPRWA In Progress Complete

Further Revise

Legislation as

Necessary

October-November

2013

In Progress Complete

Draft Summary of

Legislation

December 2013 MPWMD Complete

Introduce Legislation January 2014 Complete

Lobbying Effort February-April 2014 MPWMD, MPRWA, &

Cal-Am

In Progress Complete

Legislation Adopted

Governor Signed

April-May 2014 Sept 19,

2014

Passed Senate

Unanimously; Referred

to Assembly Complete

Initial Draft of Motion for

Financing Order

April 2014

March 2015

MPWMD

Perform Analysis to

Demonstrate Annual

Customer Benefits

Exceed 1.0% of Total

Annual Revenue

Requirement

April 2014

March 2015

MPWMD & Cal-Am

015621\0002\11340073.1 1/30/15


39/69

23 January 2015

Motion Application for

Financing Order

May 2014

May 2015

MPWMD

Obtain CPUC Financing

Order

August 2014 November

2015

Order on securitization

financing on satisfaction

of remaining criteriafrom Settlement K

Preliminary Discussions

with Bond Underwriters

September-December

2014

MPWMD Complete??

Drafting of

documentation for bond

requestsDocuments

September

2014January-April 2015

MPWMD & Cal-Am

Preliminary Discussions

with Rating Agencies

February-April 2015 MPWMD

Issuance of Public BondFinancing

End of 2015 Q2-Q32016

MPWMD

015621\0002\11340073.1 1/30/15


40/69



Item No: 6.

№06/12


SUBJECT: Approve Invitation to New Interim General Manager of theMarina Coast Water District to Serve As A Member of TheWater Authority Technical Advisory Committee (TAC)

RECOMMENDATION:

It is recommended that the Water Authority Board extend an invitation toBill Koker, the new interim general manager of the Marina Coast WaterDistrict, to serve as a member of the Water Authority TAC.

DISCUSSION:

At Exhibit A is the staff report provided to the Water Authority on Aug 14,2014, recommending that Brian Lee be invited to join the TAC. Asdiscussed in the report, staff believes that participation on the TAC can onlyimprove communication between Marina and the Peninsula cities, and

could help us find "win-win" solutions to our regional water problems.

Brian Lee, the Interim General Manager last year, accepted the invitationand served as a member until his departure from MCWD in January 2015.

The TAC discussed inviting the current interim General Manager, BillKoker, to fill the MCWD seat on the TAC. Following discussion and publicinput, the TAC voted 5-2 to recommend to the Water Authority that weextend the invitation to Bill Koker.

EXHIBITS:

A- Staff report provided to the Water Authority on Aug 14, 2014


41/69


Date: August 14, 2014

Item No: 7.

№06/12


SUBJECT: Receive report, discuss, and vote on staff proposal to add the GeneralManager, or District Engineer, of the Marina Coast Water District(MCWD) as a member of the Authority Technical Advisory Committee(TAC) and to add a MCWD hydrologist to the Monterey Peninsula WaterSupply Project (MPWSP) Hydrogeologic Working Group.

RECOMMENDATION:

Staff recommends that the Water Authority invite Marina Coast Water District (MCWD)

participation on the Technical Advisory Committee (TAC) and consider if it should makea recommendation to the settling parties to add a MCWD hydrologist to the test slantwell Hydrogeologic Working Group (HWG).

DISCUSSION:

During January and July 2014, the City of Marina has been heavily involved in thepermitting of the bore hole construction and in consideration of a mitigated negativedeclaration (MND) and coastal development permit (DP) for Cal Am's test slant well atthe CEMEX site.

During public hearings, the Marina Coast Water District (MCWD) raised a number ofconcerns that suggest a lack of communication between MCWD and Cal Am, and withthe Water Authority as well. This situation has not only delayed progress on the desalplant approval and construction, but has raised serious concerns on the part of theMCWD and City of Marina that its water needs may be placed at risk as a result of thedesal plant slant wells.

To initiate a dialog on these issues, several informal MCWD/MPRWA managementlevel meetings were held during the week of August 4. Amongst other things, it wasconcluded that participation by MCWD representatives on the TAC, and possibly on theHWG, would provide early MCWD input on technical issues related to the Desal facility

and the slant wells, facilitate MCWD environmental review of the MPWSP EIR, insurethe concerns of Marina residents get timely consideration, and improve communicationbetween and amongst MCWD, Cal Am, and the Water Authority.

It should be noted that the TAC already has a member from the agricultural communityto articulate ag interests prior to Water Authority decisions and deliberations. Thus, theExecutive Director recommends the Authority extend an invitation to the MCWD DistrictEngineer (Interim General Manager) to join the TAC for the same purpose.


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Item No: 7.

№06/12


SUBJECT: Receive Report on Monthly Reports to the AuthorityBoard on the Activities of the Public OutreachConsultant and Discussions of Priorities

RECOMMENDATION:

Staff recommends the Water Authority receive the first of monthly reports

on the activities of Environmental Relations PR, the Water Authority Public

Outreach consultant.

DISCUSSION:

At its meeting on April 25, 2013, the Water Authority approved a Public

Outreach budget of $49,000 of which $20,000 was budgeted for Speaker’sBureau Support. Following an RFP process in September 2013, the Water

Authority awarded a contract to Environmental Relations PR for Public

Outreach Services for the FY 2013-2014 at a price not-to-exceed $15,000.

At its meeting of December 11, the Water Authority approved a extension

of the contract for FY 2014-2015 at a price not-to-exceed $10,000. A copy

of the current Scope of Work is at Exhibit A.

As a condition of contract approval this year, staff and the consultant were

directed to meet with Vice President Kampe to establish clearer objectives

and to document accomplishments. At a meeting on Jan 16, 2015, it was

agreed that the Authority should receive a monthly report on outreach

activities and priorities.


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Accordingly, Ashley Belany from Environmental Relations PR will discuss

the following activities:

1. WEB Site Update2. Draft Slant Well newspaper article3. Coordination meeting with WA Vice-President Kampe4. Update Public Information handout5. Updated Facebook page and posting of news

FISCAL IMPACT:

At fiscal year end, the Authority had expended quite a bit less than $49,000in FY 2013-2014 for Public Outreach, and actual contract expenditures for

the Public Outreach Services contract were substantially less than $15,000

as well. Staff expects to further reduce expenditures under the current not-

to-exceed $10,000 consultant contract.

ATTACHMENTS:

A - Public Outreach Scope of Work for FY 14-15


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Public Outreach Services


Scope of Work: October 2014-2015

A. Update master plan for Public Outreach and Information

B. Work with Board members and staff on identification of issues & Message

Development

C. Establish and maintain contacts with the media

D. Propose and prepare periodic op-eds as needed

E. Maintain and update all presentation materials for use by staff & Board members

F. Develop and update audience specific handout materials

G. Update, expand Frequently Asked Questions for print and on website

H. Develop social media, including feedback opportunities

I. Maintain and update Water Authority website

J. Monitor Water Authority meetings and proceedings

K. Coordinate all public outreach & messaging with MPWMD and MRWPCA via the

MPWMD Public Outreach Committee


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Item No: 8.

№06/12


SUBJECT:Designation of Alternate Water Authority Representative On theGovernance Committee

RECOMMENDATION:

Staff recommends that the Authority designate an alternate representative

to the Governance Committee (GC).

DISCUSSION:

Mayor Burnett serves as the Water Authority representative to the GC. Withthe departure of Chuck Della Sala from the Water Authority Board, theposition of alternate Authority representative is vacant. The GovernanceCommittee has requested the Board designate a replacement by name orposition.

ATTACHMENTS:None


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Item No: 9.

№06/12


SUBJECT:Receive Update, Discuss, And Provide Direction On WaterAuthority Participation In Obtaining A Cease and Desist Order(CDO) Extension

RECOMMENDATION:

It is recommended that the Water Authority Board receive and discuss an

update on efforts by the settling parties, including California AmericanWater Co. (Cal Am), the Monterey Peninsula Water Management District(MPWMD), and the Monterey Peninsula Regional Water Authority(MPRWA) to obtain an extension of the CDO 2009-60 deadline date ofDecember 31, 2016.

DISCUSSION:

Due to a variety of reasons, many beyond the control of Cal Am, as well as

the community, the Monterey Peninsula Water Supply Project (MPWSP)has been delayed to the point where it is virtually impossible for Cal Am tomeet the State Water Resources Control Board CDO 2009-60 deadline ofDecember 31, 2016.

The public has become increasing concerned as the CDO date approachesand has expressed a desire to be better informed as to how Cal Am andpublic officials are planning to deal with the problem. Accordingly, staffrecommends this issue be agendized for updates at all future meetings.

As discussed in previous Water Authority meetings, representatives of thesettling parties have been in discussion with the California State WaterResources Control Board (SWRCB) staff in an effort to develop proposalsacceptable enough to secure staff concurrence with a formal request for aCDO extension that will be made to the State Board in 2015.


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Last year, the Authority Board selected Mayor Burnett to represent theMPRWA at discussions with the SWRCB and other settling parties.

Of particular importance during these discussions is that the WaterAuthority and other public officials are opposed to penalties or othermeasures mandated by the SWRCB that result in unfair or punitive impactson ratepayers who have exceeded conservation goals and who have noresponsibility for the delay.

While the potential terms of an extension to any CDO remain underdiscussion, key principles that might be included in an agreement to extendthe CDO include the following:

• A four-year extension of the CDO deadline from December 31, 2016to December 31, 2020.

• A new reduction schedule in regular increments during the extension,but suspension of the prescribed reductions if MPWSP milestonesare satisfied.

• Authority for the SWRCB staff to suspend a reduction correspondingto a missed milestone if staff determines that the milestone wasmissed due to circumstances beyond the control of Cal-Am,

MPWMD, and the Water Authority.

Discussions continue under a tight timeline, since, for a variety of reasons,we believe we need to have an agreement in draft early in 2015. In anyevent, it is the intent of the Board to discuss any draft agreement at a futureWater Authority meeting and to gather public input.

Attachments:

• Draft Proposal to Amend SWRCB Order (Carmel River CDO)• Proposed Modifications Table - Best Case Scenario

• Proposed Modifications Table - Worst Case Scenario


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DRAFT 1/14/2015 2:10 PM

Proposal to Amend

SWRCB Order WR 2009-0060 (Carmel River CDO)

A. Good Cause Exists to Modify WRO 2009-0060: California American Water (“CAW”) and other

Parties have diligently and aggressively implemented measures to comply with WRO 2009-0060(“CDO”). CAW and other Parties have: (1) implemented efficiency and conservation measures

to control and reduce customer demand and system losses within CAW’s Monterey district; (2)

diligently pursued the Monterey Peninsula Water Supply Project (“MPWSP”), which will supply

the replacement water supply necessary to eliminate all unauthorized diversions from the

Carmel River; (3) developed, permitted and implemented projects to replace and supplement

Carmel River diversions subject to the CDO1; and (4) permitted and implemented measures to

enhance and improve conditions for fish and wildlife resources in the Carmel River watershed,

and to minimize or avoid impacts to fish and wildlife that could result from extension of WRO

2009-0060 timelines. In consideration of these activities and the further commitments

described below, CAW and other Parties support the State Water Resources Control Board’s

(“SWRCB’s”) finding of good cause to modify the CDO as requested.

B. Modifications to WRO 2009-0060: CAW is currently meeting or has met all of the conditions of

the CDO, but factors beyond CAW’s control make it unlikely that several future conditions can

be met. Therefore, in coordination with other Parties, CAW will submit a request for the

following modifications to the CDO:

1. A four-year extension of the deadline set forth in ordering Condition no. 1, from December

31, 2016 to December 31, 2020.

2. Add a process to Condition no. 1 delegating to the Executive Director, the Chief Deputy

Director and the Deputy Director of the Division of Water Rights, authority to

administratively extend the time for compliance with Condition no. 1, for good causeshown.

3. Amend Condition no 3.a.(2) to state that, effective Water Year 2015-2016, CAW shall further

reduce unlawful diversions from the river by an additional 1,000 acre feet annually (“afa”)

from the existing cumulative reduction level in place under Table 1 of the CDO. See

Attachment 1.

4.

Replace Attachment 1 to the CDO with Attachment 1 to this Proposal to Amend.

1These projects include: Seaside Middle School ASR Well #3 (completed up to an additional 500 acre feet per

annum); Acquisition of additional rights to legally appropriate Carmel River water via Permit 21330 (up to 1488

acre feet per annum); Seaside Middle School ASR Well #4 (in process, up to 500 acre feet per annum).

1


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DRAFT 1/14/2015 2:10 PM5. Add a Condition no. 3.a.(2)(i) stating that the reduced diversion level set forth in amended

Condition no 3.a.(2) will be maintained, i.e., no additional annual reduction in diversions will

be required under the CDO, if CAW meets the following milestones as they accrue:

Milestone Deadline

a. Construction of downstream fish passage facilities at

the Los Padres Dam2

September 30, 2016

b. Commencement of construction activity for the CAW

desalination components3 of the MPWSP

September 30, 2017

c. Construction activity for the CAW desalination

components of the MPWSP is substantially on schedule

September 30, 2018

d. Construction activity for the CAW desalination

components of the MPWSP is substantially on schedule

September 30, 2019

e. Substantial completion of the CAW desalination

components of the MPWSP

September 30, 2020

6. Add a Condition no. 3.a.(2)(ii) stating that, should CAW fail to meet any milestone described

in new Condition no. 3.a.(2)(i) by its corresponding deadline, the reduced diversion level setforth in amended Condition no 3.a.(2) shall be further reduced by 1,000 afa. Any further

reduction(s) required under this new Condition no. 3.a.(2)(ii) shall remain in force until the

corresponding milestone is achieved. If a milestone is not achieved by its original deadline,

but is subsequently achieved, the further reduction required in the water year in which the

milestone is achieved shall be prorated and assessed at the end of that water year, and shall

no longer be required for subsequent water years.4

7. Add a Condition no. 3.a.(2)(iii) stating that, if CAW fails to meet any milestone described in

Condition no. 3.a.(2)(i), the Executive Director, the Chief Deputy Director and/or the Deputy

Director of the Division of Water Rights may suspend the corresponding further reduction

described in new Condition no. 3.a.(2)(ii) if CAW, the Monterey Peninsula Regional WaterAuthority (“MPRWA”) and the Monterey Peninsula Water Management District

(“MPWMD”):

a. Make a written joint request, no later than 60 days after the associated milestone

deadline; and

2CAW owns and operates Los Padres Dam at approximately River Mile 24.8 on the Carmel River. CAW has made

various improvements to accommodate upstream fish passage over Los Padres Dam. Currently, when the lake

elevation falls below the dam’s spillway crest, no downstream fish passage corridor exists. To improve

downstream fish passage opportunity, CAW and various stakeholders have agreed that the following downstream

fish passage facilities should be constructed: behavioral guidance system; floating weir surface collector; fish

bypass conduit; bypass access portals; and bypass outfall. 3 The CAW desalination components of the MPWSP include source water production wells, the desalination plant

and a brine disposal system.4 For example, if CAW failed to complete construction of downstream fish passage facilities at the Los Padres Dam

by September 30, 2016, but completed these facilities by June, 2017, 75% (9/12ths

) of the corresponding 1,000 afa

reduction (i.e., 750 afa) would be required as a reduction for water year 2016-2017. No reduction based on missing

this milestone would be required for water year 2017-2018 or any future water years.

2


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DRAFT 1/14/2015 2:10 PMb. Provide information to the Executive Director demonstrating that CAW has exercised all

reasonable care, and the MPRWA and MPWMD have provided all reasonable

cooperation and support, to meet the milestone, and the milestone deadline was

missed due to circumstances beyond the control of CAW, MPRWA and MPWMD.

The Executive Director, the Chief Deputy Director and/or the Deputy Director of the Division

of Water Rights shall make a determination on any request submitted under this new

Condition 3.a.(2)(iii) no later than 60 days after receiving a written joint request as described

above. CAW, MPRWA and/or MPWMD shall have the right to request the full SWRCB to

reconsider any determination by the Executive Director, the Chief Deputy Director and/or

the Deputy Director of the Division of Water Rights pursuant to this new Condition

3.a.(2)(iii).

8. Amend Condition 3.a.(5) to state: “Water produced from new sources developed pursuant

to Condition 5 of this order shall be subtracted from the base” (currently includes incorrect

cross –reference to Condition no. 4 rather than Condition no. 5).

9.

Amend the last sentence of Condition no. 3.a.(6) to state as follows: “After December 31,2020, CAW shall divert water from the river to supply the holders of PBC’s water

entitlement only from CAW’s legal water rights.”

10. Add a Condition 3.a.(7) stating that, should CAW be able to identify suitable and willing

transacting parties, CAW will use reasonable additional efforts to acquire supplemental

water rights at acceptable costs, and/or will pursue other water acquisition and water right

changes in order to increase flows in the Carmel River, and/or to decrease CAW’s

unauthorized diversions. Such acquisitions or water right changes may include leases and

purchases of water rights along the Carmel River on a temporary or permanent basis,

and/or water right change approvals or permits (permanent or temporary) from the SWRCB

to increase opportunities to increase lawful diversions in order to reduce unauthorizeddiversions during periods of lower flow on the Carmel River. CAW shall quantify

supplemental water supplies and increased flows developed pursuant to this Condition and

such supplemental water and/or increased flows will be credited towards any further

reduction required under new Condition no. 3.a.(2)(ii) (excepting supplies developed to

satisfy Conditions 5 and 3.a.(5)).

11.

Amend Condition no. 3.c. to add the following sentence after the last sentence: “Any ASR

water stored in and recovered from the Seaside Groundwater Basin in excess of the (a)

Estimated ASR Project Operational Yield and (b) the Estimated Small Project Output, as set

forth in Table 1, shall be credited towards any further reduction required under new

Condition no. 3.a.(2)(ii). In addition, Condition no. 3.c. should be modified to extend the

deadline for written submissions to recover ASR water to “not later than May 31 of each

year”, to allow CAW and the fisheries agencies appropriate time to consider information

made available at agency meetings that occur after May 1 of each year.

C. Requests for Assistance by SWRCB. Additionally, CAW and other Parties request that the

SWRCB commit to use reasonable efforts to assist with the following items:

3


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DRAFT 1/14/2015 2:10 PM1. Upon issuances of a Certificate of Public Convenience and Necessity (“CPCN”) from the

CPUC, provision of support for CAW’s request(s) to the California Coastal Commission and

other agencies with permitting jurisdiction for expedited permit issuance for the “Monterey

Pipeline and other ASR related improvements,” which will facilitate increased ASR diversion

during high flows and other improved operations that will increase the amount of water in

the Carmel River during dry months;

2.�

MPRWA Final Agenda Packet 02-12-15

Documents

Transcript of MPRWA Final Agenda Packet 02-12-15