MPRWA Agenda Packet Updated 10-10-13

7/27/2019 MPRWA Agenda Packet Updated 10-10-13

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AgendaMonterey Peninsula Regional Water Authority (MPRWA)

Regular Meeting

7:00 PM, Thursday, October 10, 2013Council Chamber580 Pacific Street

Monterey, California

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

1. Introduction of Interns Providing Support to the Authority for 2013 - Cullem

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 contact

the sender concerning the details.

APPROVAL OF MINUTES

2 S t b 12 2013 th


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2 S t b 12 2013 th

Thursday, October 10, 2013

The Monterey Peninsula Regional Water Authority is committed to include the disabled in all ofits services, programs and activities. For disabled access, dial 711 to use the California RelayService (CRS) to speak to staff at the Monterey City Clerks Office, the Principal Office of theAuthority. CRS offers free text-to-speech, speech-to-speech, and Spanish-language services24 hours a day, 7 days a week. If you require a hearing amplification device to attend ameeting, dial 711 to use CRS to talk to staff at the Monterey City Clerks 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 publicinspection during the meeting or may be requested from the Monterey City Clerks 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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Monterey Peninsula Regional Water AuthorityAgenda Report

Date: October 10, 2013

Item No: 1.

FROM: Executive Director Cullem

SUBJECT: Introduction of Interns Providing Support to the Authority for 2013

RECOMMENDATION:

Staff recommends that Authority members welcome three student interns and their faculty

supervisor/ program manager who will be conducting research on topics of importance to the

Water Authority.

DISCUSSION:

Monterey Institute of International Studies (MIIS) students Nereyda (Rey) Esmeralda Montano

and Rainey Graeven will be serving as unpaid interns exploring the brine disposal issue

associated with coastal DESAL facilities.

California State University-Monterey Bay student David Lifland will be exploring the possibilities

of utilizing storm water from Peninsula cities for supplemental Seaside aquifer storage.

All three students will be supervised by MIIS faculty program manager, Monica Galligan.


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MINUTES

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)Regular Meeting

7:00 PM, Thursday, September 12, 2013

COUNCIL CHAMBER580 PACIFIC STREET

MONTEREY, CALIFORNIA

Directors Present: Burnett, Kampe, Pendergrass, Rubio, Della Sala

Directors Absent: Edelen

Staff Present: Executive Director, Legal Counsel, TAC Members Stoldt & Israel,Narigi, Clerk

ROLL CALL

President Della Sala called the meeting to order at 7:05 p.m.

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

Vice President Burnett reported on the upcoming pre-hearing conference for the newadministrative law judge from the California Public Utilities Commission which he and LegalCounsel McGlothlin will attend. He then reported regarding meetings with the State WaterBoard to continue conversations about the Cease and Desist Order and noted that the time isstill not ripe to request a modification.

Executive Director Cullem reported that the Public Outreach Request for Proposal deadline ison September 13, 2013 and that he wills agendize approval at a future meeting. He theninformed the Directors of a student volunteer from Monterey Institute of International Studiesthat will be conducting research for the Authority


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MPRWA Minutes Thursday, September 12, 2013

cities process their payment expeditiously.

4. Receive Opinion Editorial Dated August 17, 2013 (Information Only)Action: Received

This is for information only. The Opinion Editorial dated August 17, 2013 was submitted andpublished by the Monterey Herald.

PUBLIC COMMENTS

President Della Sala invited public comments for items not on the agenda. Nelson Vegaexpressed concerns with recent local meetings encouraging a buy-out of the Cal Am project.He thinks the timing is causing a major distraction and requested it be agendized fordiscussion.

David Lifland complimented Vice President Burnett on his recent editorial but indicated thepublic may have misinterpreted the benefit. He then questioned that if the public has 78%equity in the desal facility, why the public is not a majority partner. Lastly, he requested more

information about storage capacity and locations. Having no further requests to speak, publiccomment was closed.

APPROVAL OF MINUTESAction: Approved

5. August 8, 2013

On Motion by Director Pendergrass and Seconded by Director Rubio, and passed by thefollowing vote, the Monterey Peninsula Regional Water Authority approved the Minutesof August 8, 2013 as presented: 6-0-0-0


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Director Burnett explained the higher than expected cost of legal services indicating thatengaging in the settlement process allowed a substantial number of issues be resolved withoutthe need to engage in legal briefings. These costs were incurred at the beginning of the

process instead of throughout and for a prolonged period of time.

Director Kampe requested staff to provide projected numbers of budget increase as soon aspossible to allow member cities to prepare financially.

President Della Sala opened the item for public comment. Nelson Vega expressed appreciationfor the progress made over the last two years and indicated that the costs were necessary andthat it saves money in the long run. He indicated that the Directors have proven they areworking in the best interest of the Citizens. He then requested if there has been any responsefrom the Attorney General regarding the participation of the County of Monterey as a memberof the Authority. David Lifland requested an update on the test well project. Having no furtherrequests to speak, public comment was closed.

Vice President Burnett spoke to the timeline that was reported to him from Cal AmRepresentative Rich Svinland. He expressed concerned about the schedule due to the potentialslippage for the test well installation. Legal Counsel Freeman indicated there was no updateregarding the Attorney General response.

On Motion by Director Rubio and Seconded by Directors Kampe and Burnett, andpassed by the following vote, the Monterey Peninsula Regional Water Authorityapproved payment for legal counsel services and authorized extending the contract forlegal services to Brownstein, Hyatt, Farber and Schreck until December 31, 2013: 6-0-0-0

7. Discuss Policy Direction on Approving All Checks Paid by the Authority QuarterlyAction: Discussed and Provided Direction

Executive Director Cullem reported that this is an administrative policy to ensure transparencywith Authority processes. President Della Sala opened the item to public comment and had norequests to speak


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President Della Sala requested an update on the CEQA process for the GWR project and TACMember Israel indicated it will be released next Fall. The item was opened to public commend

and there were no requests to speak.

9. Receive Update, Discuss and Make Recommendations Regarding Progress of the GroundWater Replenishment ProjectAction: Received Update and Discussed

Keith Israel, General Manager of the Monterey Regional Water Pollution Control Agency andMember of the TAC provided an update on the Ground Water Replenishment project proposed

by the MRWPCA. He spoke to the progress of the project in terms of technical activities, CEQAfeasibility studies, outreach activities including source water tours, policy activities and otherupcoming activities. He listed and spoke to three potential sources of water and a potentialcollaborative effort with the Marina Coast Water District. Lastly, Mr. Israel said the proposedGWR schedule is on track but that he is concerned the CPUC schedule will slip noting the goalis to have an operation facility within 1.5 years after proposal is accepted.

President Della Sala opened the item for public comment. Rudy Fisher spoke to Mr. Israel's

project and to his experience on the tour to the Orange County Waste Water District. Heresponded to a comment from Director Burnett regarding the State Water Bond and the delaysit has had in the past encouraging the Authority to contact local representatives to ensurefunding will be available.

Nelson Vega expressed concern with Mr. Israels comments that the City of Salinas ispartnering with the GWR project because of contradictory comments he heard from SalinasCouncil members. He questioned if the legal right to take the ground water from the SalinasBasin for use on the Peninsula as been addressed. He then questioned what the cost mark up

would be if water is transferred between multiple different agencies before it is delivered to theratepayer.

Mr. Israel responded to Mr. Vega's concerns assuring him there will be enough water with all


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ADJOURNMENT

Having no further business to conduct, the meeting was adjourned at 8:49 p.m.

ATTEST:

Lesley Milton, Clerk of the Authority Chuck Della Sala, President

1. Working through details of the GWR Project at the TAC and Board level2. Following through with direction previously agreed, and3. Continuing conversations with the State Water Board regarding the Cease and Desist

Order.

Mr. Burnett indicated that the TAC will begin to engage in substantive items that are identified inthe work plan as well as begin conducting an analysis of the GWR project. He clarified that theywill not be able to do a full evaluation due to lack of complete information.

The Directors did not request any additional changes to the proposed work program items andrequested the item to be brought back for approval at the next meeting.


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Monterey Peninsula Regional WaterAuthorityAgenda Report


Item No: 3.

FROM: Clerk to the Authority Milton

SUBJECT: Receive Report, Discuss and Authorize Signature to Amend the

Governance Committee Agreement

RECCOMENDATION:

There is no report for this item. An oral discussion will take place at the meeting.

ATTACHMENT:

Governance Committee Agreement -


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Execution Copy As Revised October 10, 2013

AGREEMENT TO FORM THEMONTEREY PENINSULA WATER SUPPLY PROJECT GOVERNANCE COMMITTEE

This AGREEMENT TO FORM THE MONTEREY PENINSULA WATER SUPPLY PROJECTGOVERNANCE COMMITTEE (Agreement) is made and entered into as of March 8, 2013, by andamong the MONTEREY PENINSULA REGIONAL WATERAUTHORITY (MPRWA), the MONTEREYPENINSULA WATER MANAGEMENT DISTRICT (MPWMD), the COUNTY OF MONTEREY(County), and the CALIFORNIA-AMERICAN WATER COMPANY (Cal-Am). The MPRWA, theMPWMD, the County, and Cal-Am are sometimes referred to individually herein as a Party, andcollectively as the Parties.

I. Formation of Governance Committee

Pursuant to the terms of this Agreement, the Parties hereby form the Monterey Peninsula Water SupplyProject Governance Committee (Governance Committee) comprised of representatives of theMPRWA, the MPWMD, the County, and Cal-Am to ensure efficient and effective public input into thedevelopment and operation of the Monterey Peninsula Water Supply Project (Project). Cal-Ams entryinto this Agreement is expressly conditioned upon its legal obligations to abide by the orders anddecisions of the California Public Utilities Commission (CPUC). Therefore, should the CPUC order Cal-Am not to participate in this Agreement, Cal-Am shall be relieved of all obligations set forth in thisAgreement and this Agreement may be terminated by Cal-Am upon such CPUC order. Further, if the

CPUC issues any order or decision that conflicts with any particular provision of this Agreement, Cal-Amshall be relieved of any and all obligations to abide by the conflicting provision of this Agreement.

II. Definitions

A. Application A.12-04-019. Application of California-American Water Company (U210W)for Approval of the Monterey Peninsula Water Supply Project and Authorization to Recover All Presentand Future Costs in Rates, filed with the CPUC on or about April 23, 2012.

B. ASR Infrastructure. The facilities used to inject into and extract potable water from theSeaside Groundwater Basin, as described in Application A.12-04-019. These facilities will include theAquifer Storage and Recovery (ASR) wells and related appurtenances, the backflush pipeline, therecirculation pipeline and the ASR pipeline.


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G. CPCN. The Certificate of Public Convenience and Necessity, if ordered by the CPUC,within Application A.12-04-019.

H. Desalination Infrastructure. Facilities located within the desalination plant site that areused to create potable water from either an ocean source water, brackish source water or a combinationthereof, and appurtenant facilities needed to dispose of brine to the Brine Discharge Infrastructure,dispose of wastewater (i.e. process water and sanitary discharge), and any needed facilities that may berequired to prevent export of native Salinas River Groundwater Basin water.

I. Desalination Project. The combination of the Desalination Infrastructure, the BrineDischarge Infrastructure, the Source Water Infrastructure, the Product Water Pipeline, the Raw WaterPipeline, and the Terminal Reservoir Infrastructure.

J. GWR Project. Groundwater replenishment project to be implemented by MRWPCAand/or MPWMD which involves advanced treatment of wastewater and the injection of productreplenishment water into the Seaside Groundwater Basin. This project includes facilities for the treatment,conveyance, and injection of the product replenishment water.

K. MRWPCA. The Monterey Regional Water Pollution Control Agency.

L. Product Water Pipeline. Facilities used to convey potable water from the Desalination

Infrastructure to the Terminal Reservoir Infrastructure and to Cal-Ams existing distribution system at theEardley Pump Station.

M. Project. The Monterey Peninsula Water Supply Project as proposed in ApplicationA.12-04-019, and as it may be modified by the CPCN issued in response to that Application .

N. Public Entity Members of the Governance Committee. The MPRWA, the MPWMD,and the County. Cal-Am is not a Public Entity Member of the Governance Committee.

O. Raw Water Pipeline. Facilities used to convey feedwater (i.e., raw water) from theSource Water Infrastructure to the Desalination Infrastructure.

P. Source Water Infrastructure. Wells and appurtenant facilities (or alternative contingentintake facilities) that are used to extract and convey feedwater (i e raw water) to the Raw Water Pipeline


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III. Membership and Voting

Each of the Public Entity Members of the Governance Committee shall be represented on theGovernance Committee by one elected official of such entity and one alternate who shall also be anelected official. No individual person may be appointed as the primary or alternate representative of morethan one Party. If MPRWA ceases to exists, then the cities that are members of the MPRWA at the timeof the MPRWAs termination shall collectively choose a city representative that will take the place of theMPRWA representative on the Governance Committee. Cal Am shall be represented by the President ofCal-Am or the Presidents alternate, whom the President may designate to act on his or her behalf atanytime. The Governance Committee shall appoint a Chair and Vice-Chair from the primary (non-alternate) elected officials appointed to the Governance Committee. Each of the Public Entity Members ofthe Governance Committee shall have a single equal vote in decision-making. Cal-Am shall not have a

vote for purposes of the issuance of decisions or recommendations by the Governance Committee.However, Cal-Am shall, unless it abstains from doing so, state its preference with respect to any decisionor recommendation made by the Governance Committee (the Cal-Am Preference) at the time that anydecision or recommendation is made by the Governance Committee and the Cal-Am Preference shall berecorded within the meeting minutes together with a summary of any explanation provided by Cal-Am forthe Cal-Am Preference.

IV. Powers

A. Purpose. The purpose and function of the Governance Committee shall be to: (i)consult with, advise and, in some circumstances, provide direction to, Cal-Am concerning the design,permitting, construction, operations, maintenance, repairs, and replacements of the components of theDesalination Project; and (ii) serve as the entity which Cal-Am regularly updates as to DesalinationProject status and issues. The members of the Governance Committee shall diligently consider allmatters and cause the Governance Committee to timely and promptly issue decisions orrecommendations brought before it as provided pursuant to the terms of this Agreement.

B. Waiver of Action. Upon motion and affirmative vote of the Governance Committee(pursuant to Section VII of this Agreement), the Governance Committee may choose to waive its right toissue a decision or recommendation with respect to any matter for which the Governance Committee isafforded such right herein. The purpose of the Governance Committees right to waive its right to makeany specified decision or recommendation herein is to empower the Governance Committee to avoidissuing any decision or recommendation, which, in its determination, would violate any law, unreasonably


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and until such time as the action has been subject to review by an appropriate agency inaccordance with CEQA. The foregoing provision shall not be construed as an agreement ordetermination by or among any of the Parties that CEQA applies to any action of the Governance

Committee. This Agreement is itself not a project as defined by section 15378 of the CEQAGuidelines (California Code of Regulations, Title 14, Chapter 3) because it is an organizationalactivity that will not result in direct or indirect physical changes in the environment and thisAgreement makes no commitment to any project.

Category B: The Governance Committee makes a recommendation respecting the matterafter receipt of a written recommendation from Cal-Am. However, Cal-Am may determine, at itssole discretion, whether or not to follow the Governance Committees recommendation, providedthat if Cal-Am chooses not to follow the recommendation, Cal-Am shall provide a written

explanation of Cal-Ams reasons for its decision not to follow the recommendation within ten (10)calendar days following the issuance of the Governance Committees recommendation. Further,should Cal-Am choose not to follow the recommendation of the Governance Committee, then anyParty may raise the issue for review by the CPUC during Cal-Ams next general rate case.

Category C: Cal-Am makes the decision respecting the matter after receiving arecommendation from the Governance Committee. Cal-Am need not issue a written explanationfor its decision, although should Cal-Am choose not to follow the recommendation of theGovernance Committee, then any Party may raise the issue for review by the CPUC during Cal-

Ams next general rate case.

B. Procedure for Cal-Am Notification. Whenever Cal-Am is presented with, or becomesaware of, a matter that falls within any of the subjects identified herein for consideration, consultation,decision or recommendation by the Governance Committee that is ripe for presentation to theGovernance Committee, Cal-Am shall, in writing, promptly notify the Chair of the Governance Committee(Cal-Am Notification), who shall schedule the matter for consideration by the Governance Committee.For purposes of this Agreement, a matter shall be deemed ripe for presentation to the GovernanceCommittee at such time as either specified within the matters set forth below, or for any matter for whichno specification is provided, Cal-Am shall determine the time(s) at which the matter is appropriate for

presentation for consultation, decision, or recommendation by the Governance Committee consistent withthe purpose of this Agreement. Unless a different period is specified herein, for all matters for which adecision or recommendation is to be made by the Governance Committee, the Governance Committeeshall issue its decision or recommendation within ten (10) calendar days following receipt of the Cal-Am


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below, together with an explanation of any pending or soon-to-be-pending decisions or optionsconcerning the subject matter. The Governance Committee may issue, in writing, any recommendationconcerning a subject matter included within Cal-Ams presentation. Cal-Am may determine, at its sole

discretion, whether or not to follow the recommendation, provided that if Cal-Am chooses not to follow therecommendation and the subject matter is a matter covered by either Category A or Category B, Cal-Amshall, within ten (10) calendar days following issuance of the Governance Committees recommendation,provide a written explanation of the reason(s) for Cal-Ams decision not to follow the recommendation. Ifthe subject matter is a matter covered by Category C or is not set forth within any of the three categoriesset forth below, Cal-Am need not issue a written explanation of Cal-Ams reasons for its decision not tofollow the recommendation.

D. Categories for Matters Subject to Governance Committee Action. Matters for

consideration, consultation, decision, or recommendation by the Governance Committee shall be dividedamong the following three categories as follows:

Category A

.

1. The Governance Committee shall select a Value Engineer(s) to facilitate andreport on the proposed value engineering for the Desalination Project, with consideration given to any

recommended engineer submitted by any member of the Governance Committee. Cal-Am shall conductthe procurement for the Value Engineer and, consistent with the processes set forth in Categories B(1),B(2) and C(2) relating to Contracts, seek recommendations from the Governance Committee for thecontract between Cal-Am and the Value Engineer. After reviewing the results of the procurement process,the Governance Committee shall decide which engineer is to be retained by Cal-Am as the ValueEngineer for the Desalination Project. This matter shall be ripe for decision before Cal-Am accepts the30% Design from the contractor retained for the design of the Desalination Infrastructure, or at any othertime that Cal-Am intends to retain a Value Engineer for any other infrastructure constructed as acomponent of the Desalination Project.

2. Subsequent to the issuance of the CPCN and subsequent to the selection of anydesign-build contractor(s) for the Desalination Infrastructure, the Governance Committee may issuedecisions concerning architectural renderings for the Desalination Project. The Governance Committeeshall be presented with architectural renderings for decisions regarding the same when such architectural


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1. Prior to the issuance of a request for qualifications, request for proposals, orrequest for bids, as applicable, relating to the procurement of a Contract, the Governance Committee mayrecommend qualifications and selection criteria for such Contract.

2. Prior to the execution of any Contract not executed on or before the date that isthirty (30) calendar days after the effective date of this Agreement, and upon presentation andrecommendation by Cal-Am to the Governance Committee after Cal-Am has reviewed and evaluatedproposals or bids, as applicable, and negotiated with the contractor a Contract that, in the opinion of Cal-Am, is ready for execution by and between Cal-Am and the contractor, the Governance Committee mayrecommend which contractor should be retained under the Contract, and issue any recommendationsconcerning the terms of the final Contract. When presenting a Contract to the Governance Committee forits consideration and recommendation, Cal-Am shall provide to the Governance Committee a copy of all

responsive proposals or bids received for the pertinent work, except for any proprietary informationprovided by contractors submitting responsive proposals or bids, together with a written description of theprocess Cal-Am undertook to select a recommended Contractor, a summary of the considerations thatCal-Am deems pertinent to support its recommendation, and any other information that Cal-Am believeswill assist the Governance Committee in its review of the recommended Contract and contractor.

3. The Governance Committee may review and issue recommendations concerningmajor changes to the Desalination Project at key stages of the design process, including:

Basis of Design 30% Design 60% Design 90% Design, and Final Design

As used in this paragraph, major changes to the Project shall include changes causing an increase ordecrease in costs of the Desalination Project that exceed $1 million.

4. The Governance Committee may issue recommendations concerning theestablishment of a community outreach program.

5. The Governance Committee may recommend the Desalination Projectsaesthetic attributes and design consistent with community values if not covered by Category A(3) above;


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2. Prior to Cal-Ams commencement of negotiations with a selected contractorrelating to a Contract, the Governance Committee may review and issue recommendations concerningcontract terms relating to such Contract;

3. The Governance Committee may review and issue recommendations concerningthe preparation and quarterly update of an overall construction budget for the Desalination Project;

4. The Governance Committee may review and issue recommendations concerninga plan for acceptance testing, including follow-up reporting, for the Desalination Project;

5. The Governance Committee may annually review and issue recommendationsconcerning the Desalination Project operations and maintenance budget and rate impacts;

6. The Governance Committee may review and issue recommendations to Cal-Amwith respect to local and regional permit requirements; and

7. The Governance Committee may review and issue recommendations concerningthe preparation of quarterly progress reports during major design milestones (i.e., 30% design, 60%design, 90% design, and final design) and information on any material challenges to the Project design.

E. Additional Matters. If agreed unanimously by all members of the Governance

Committee, including Cal-Am, additional matters not provided for herein may be added to Category A fordecision or recommendation by the Governance Committee or to Category B for recommendation fromthe Governance Committee. Additional matters may also be added to Category C for recommendationfrom the Governance Committee upon affirmative vote of the Governance Committee unless Cal-Amdetermines that the addition of the matter to Category C would unreasonably delay the Project orotherwise compromise the public interest. If Cal-Am determines that a matter affirmed by the GovernanceCommittee for addition to Category C should not be so added, Cal-Am shall issue a written explanation tothe Governance Committee within ten (10) calendar days following the Governance Committees vote toadd the matter to Category C that explains the reasons supporting Cal-Ams determination.

F. GWR Decision. This matter concerns the GWR Decision, which specifically iswhether Cal-Am shall: (i) pursue a water purchase agreement, acceptable to Cal-Am, for the purchase ofwater from the GWR Project, and consequently Cal-Am shall develop smaller Desalination Infrastructurewith a capacity of approximately 6 4 MGD (or as specified in the CPCN); or (ii) forgo the pursuit of a water


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by the Governance Committee to the Commission, and in no event later than ten (10) days after receipt ofnotice of the written statement from the Governance Committee.

VI. Meetings and Action of the Governance Committee; Agendas and Minutes

A. Meetings. Governance Committee meetings shall be conducted in compliance with theRalph M. Brown Act (Government Code sections 54950, et seq.). The first meeting of the GovernanceCommittee shall be scheduled by the primary representative of the MPWMD, and that representative shallpreside over the first meeting at which a Chair and Vice-Chair shall be selected. Thereafter, the Chair, orin his or her absence, the Vice-Chair, shall schedule and preside over all meetings of the Governance

Committee. During the pre-construction and construction phases of the Desalination Project, regularmeetings of the Governance Committee shall be scheduled by the Chair, or in his or her absence, theVice-Chair, and held on a monthly basis. During the operational phase of the Desalination Project, regularmeetings of the Governance Committee shall be scheduled by the Chair, or in his or her absence, theVice-Chair, and held on a quarterly basis for the first two years of the Desalination Projects operation andsemi-annually thereafter. Special meetings of the Governance Committee, including for purposes ofresponding to a Cal-Am Notification, may be called by the Chair, or in his or her absence, the Vice-Chair,or by any member of the Governance Committee upon request of the Chair, or in his or her absence, theVice-Chair.

B. Action by the Governance Committee. All decisions and recommendations of theGovernance Committee issued to Cal-Am shall be in writing, signed by the Chair or Vice-Chair. All otheractions of the Governance Committee shall be by motion recorded in written minutes.

C. Agendas, Correspondence, and Minutes. Agendas, correspondence, and minutes ofthe meetings of the Governance Committee shall be taken, maintained, and distributed by a designatedstaff member of the MPWMD.

VII. Quorum and Affirmative Action of the Governance Committee

To constitute a quorum at all meetings of the Governance Committee for the transaction of business, theprimary or alternate elected official representative of at least three of the Parties must be present, inperson Action by the Governance Committee shall require the affirmative vote of at least two of the three


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IX. Term and Termination of Agreement

This Agreement shall continue in effect until the earlier of (1) the date that is forty (40) years after the

effective date of this Agreement (March 8, 2053), or (2) the date that Cal-Am ceases to operate theDesalination Project, the earlier such date to be known as the Expiration Date. Further, this Agreementmay be terminated, prior to the Expiration Date, as follows: (1) by Cal-Am, following the issuance of anorder from the CPUC ordering Cal-Am not to participate in this Agreement, as provided for in Section Iabove; (2) by Cal-Am, if the CPUC denies or rescinds Application A.12-04-019 or denies Cal-Amsdevelopment of, or subsequently rescinds Cal-Ams authority to develop, the Desalination Project; or (3)by the written agreement of no less than three of the four members of the Governance Committee. If, onSeptember 8, 2052, the Desalination Project is still being operated by Cal-Am, the Parties shall, withinthirty days thereafter, meet and commence negotiations in good faith to seek a renewal of this

Agreement, upon mutually acceptable terms, to provide continued public oversight and input concerningthe operation, maintenance, repair, modification, and/or replacement of the Desalination Project after theExpiration Date. If this Agreement is terminated by Cal-Am as a result of a CPUC order denying orrescinding Application A.12-04-019 or Cal-Ams authority to develop the Desalination Project, but Cal-Amintends to seek CPUC approval to develop a substitute project to provide water supplies for its MontereyDistrict, then the Parties shall meet and negotiate in good faith to seek agreement, upon mutuallyacceptable terms, for a substitute agreement to provide public oversight and input concerning the design,permitting, construction, operation, maintenance, repair, modification, and/or replacement of suchsubstitute project.

X. Miscellaneous

A. Further Assurances. The Parties shall execute such further documents and do anyand all such further things as may be necessary to implement and carry out the intent of this Agreement.

B. Construction. The provisions of this Agreement shall be liberally construed toeffectuate its purposes. The language of this Agreement shall be construed simply according to its plainmeaning and shall not be construed for or against any Party, as each Party has participated in thedrafting of this Agreement and had the opportunity to have their counsel review it.

C. Choice of Law. This Agreement shall be governed and construed under the laws of theState of California, with venue proper only in Monterey County.


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Committee and, therefore, no Party shall be entitled to any reimbursement from another Party as a resultof any provision of this Agreement.

G. Notices and Communication. Any notice or communication hereunder shall be deemedsufficient if given by one Party to another Party or Parties, as appropriate, in writing and either (1)delivered in person, (2) transmitted by electronic mail and acknowledgment of receipt is made by thereceiving Party(ies), (3) deposited in the United States mail in a sealed envelope, certified and withpostage and postal charges prepaid, or (4) delivered by a nationally-recognized overnight delivery courierservice, and addressed as follows:

If to Cal-Am:

with a copy to:

California-American Water CompanyAttn: Robert MacLean

President1033 B Avenue, Suite 200Coronado, CA 92118Email: [email protected]

California-American Water CompanyAttn: Anthony CerasuoloVice President - Legal1033 B Avenue, Suite 200

Coronado, CA 92118Email: [email protected]

If to the MPRWA:

with copies to:

Monterey Peninsula Regional Water AuthorityAttn: Lesley MiltonClerkCity of Monterey351 Madison St. Monterey, CA [email protected]

Monterey Peninsula Regional Water AuthorityAttn: Donald FreemanGeneral CounselWest Side of San Carlos & 8th


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General Counsel5 Harris Court Bldg GMonterey, CA 93940

[email protected]

If to the County:

with a copy to:

County of Monterey Board of SupervisorsC/O Clerk of the Board of Supervisors168 West Alisal Street1

stFloor

Salinas, CA, 93901

[email protected]

Monterey County CounselAttn: Charles J. McKee168 West Alisal Street3

rdFloor

Salinas, CA [email protected]

or to such other address or to such other person as each Party shall have last designated forreceipt of notices pursuant to this Agreement. Where this Agreement provides for written notices orcommunication from Cal-Am to the Governance Committee, such written notice, explanation, orcommunication shall be directed to the Chair of the Governance Committee at the address set forthabove for notices to the public entity from which the Chair is appointed, and when provided shall bedeemed provided to all Public Entity Members of the Governance Committee. The effective date of anywritten notice, explanation, or communication shall be the earlier of the date of actual receipt,acknowledgment of receipt, or three days following deposit in the United States mail.

H. Successors and Assigns. This Agreement shall be binding on and shall inure to thebenefit of the Parties and their respective legal representatives, successors, and assigns.


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California-American Water Company By:_______________________________Robert MacLean,President

Monterey Peninsula Regional Water Authority By:_______________________________Chuck Della Sala

President

Agreed as to form:

By:_______________________________Donald FreemanGeneral Counsel

Monterey Peninsula Water Management District By:_______________________________David PendergrassChair

Agreed as to form:

By:_______________________________David Laredo


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Item No: 4.


SUBJECT: Award of Contract for Public Outreach Services

RECOMMENDATION:

Staff recommends that the Authority approve the selection of Environmental Relations PR as

the Public Outreach consultant for the Water Authority and award of contract for Public

Outreach Services at a cost not-to-exceed $15,000.

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 Speakers Bureau Support.

At its meeting of July 25, 2013, the Authority approved requesting proposals (RFP) for Public

Outreach Services as the best approach to accomplishing the tasks outlined under the Speaker

Bureau Support budget item. The Scope of Work for the RFP was also approved by the

Authority and is at attachment A.

On September 4, 2013, the Executive Director sent out a Request for Proposals to a number of


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EXHIBIT A-Scope of Work

Public Outreach Services - Monterey Peninsula Regional Water Authority

The Scope of Work is:

- Develop a master plan for Public Outreach and Information

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

Development

- Establish and maintain contacts with the media and prepare periodic op-eds

- Prepare articles for the newsletters of each Authority member periodically

- Prepare and maintain power point presentations for use by staff & Board

members

- Prepare and maintain handout materials for use by staff & Board members

- Prepare and maintain a list of Frequently Asked Questions

- Assist in presentation of messaging on Water Authority Web site


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CONTRACT FOR PROFESSIONAL SERVICES

Public Outreach ServicesAgreement

THIS AGREEMENT is executed this ____ day of ___________, 201_, by and betweenthe Monterey Peninsula Regional Water Authority, a municipal corporation, hereinafter called"Authority", and Environmental Relations PR, hereinafter called "Consultant".

IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:

1. Scope. Consultant hereby agrees to provide to the Authority, as the scope of

services under this Agreement, the following services: Public Outreach Services, as furtherdescribed on the following attachments: the Scope of Work under this contract (attached heretoas Exhibit A), and the approved Consultants Proposal dated September 13, 2013 (attachedhereto as Exhibit B). In case of any conflict between these documents, the Scope of Servicesshall take first precedence over the Consultants proposal.

2. Timely Work. Consultant shall perform all tasks in a timely fashion, as set forthmore specifically in paragraph 3 below. Failure to so perform is hereby deemed a materialbreach of this Agreement, and Authority may terminate this Agreement with no further liabilityhereunder, or may agree in writing with Consultant to an extension of time.

3. Term. The work under this Agreement shall commence October 1, 2013 andshall be completed by September 30, 2014 unless Authority grants a written extension of timeas forth in paragraph 2 above.

4. Compensation. Authority agrees to pay and Consultant agrees to accept as fulland fair consideration for the performance of this Agreement, an hourly fee as set forth in

Consultants Proposal (Exhibit B), in a total amount not to exceed Fifteen Thousand Dollars($15,000.00). Compensation under this Agreement shall become due and payable 30 daysafter Authoritys approval of Consultants submission of monthly written invoices to the AuthorityExecutive Director. Written invoices shall clearly identify the work elements and shall include a


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7. Staffing Plan. Consultant shall provide Authority with the names of the keyprofessional personnel assigned to perform the services under this Agreement as well as ageneral description of the services they will be assigned to perform.

8. Subconsultant Plan. If Consultant intends to utilize the services of anysubconsultants to perform the services under this Agreement, the names of thosesubconsultants and a general description of the services they will be assigned to perform shallbe attached hereto as Exhibit C Subconsultant Plan.

9. Meet and Confer. Consultant agrees to meet and confer with Authority or itsagents or employees with regard to services as set forth herein as may be required by Authority

to insure timely and adequate performance of this Agreement.

10. Indemnification. Consultant hereby agrees to the following indemnificationclause:

To the fullest extent permitted by law (including, without limitation, California Civil CodeSections 2782 and 2782.6), Consultant shall defend (with legal counsel reasonablyacceptable to the Authority), indemnify and hold harmless the Authority and its officers,designated agents, departments, officials, representatives and employees (collectively"Indemnitees") from and against claims, loss, cost, damage, injury expense and liability(including incidental and consequential damages, court costs, reasonable attorneys' fees,litigation expenses and fees of expert consultants or expert witnesses incurred in connectiontherewith and costs of investigation) to the extent they arise out of, pertain to, or relate to, thenegligence, recklessness, or willful misconduct of Consultant, any Subconsultant, anyonedirectly or indirectly employed by them, or anyone that they control (collectively "Liabilities").Such obligations to defend, hold harmless and indemnify any Indemnitee shall not apply to theextent that such Liabilities are caused in part by the negligence, or willful misconduct of such

Indemnitee.

Notwithstanding the provisions of the above paragraph, Consultant agrees to indemnifyand hold harmless the Authority from and against any and all claims, demands, defense costs,


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Commercial general liability insurance including but not limited to premises, personalinjuries, bodily injuries, products, and completed operations, with acombined single limitof not less than $1,000,000 per occurrence and $1,000,000 in the aggregate.

Professional Liability Insurance. Consultant shall maintain in effect throughout the termof this Agreement professional liability insurance with limits of not less than $1,000,000per claim and $1,000,000 in the aggregate. Consultant will either maintain or cause to bemaintained professional liability coverage in full force or obtain extended reporting (tail)coverage (with the same liability limits) for at least three years following City'sacceptance of the work.

Commercial automobile liability insurance covering all automobiles, including owned,leased, non-owned, and hired automobiles, used in providing services under thisAgreement, with a combined single limit of not less than $1,000,000 per occurrence.

Workers' Compensation Insurance. If Consultant employs others in the performance ofthis Agreement, Consultant shall maintain workers' compensation insurance inaccordance with California Labor Code section 3700 and with a minimum of $100,000per occurrence for employer's liability.

Other Insurance Requirements

A. All insurance required under this Agreement must be written by an insurancecompany either:

admitted to do business in California with a current A.M. Best rating of noless than A:VI;

or

an insurance company with a current A.M. Best rating of no less than A:VII.


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Provide for a waiver of any subrogation rights against the Authority via anISO CG 24 01 10 93 or its equivalent.

D. Prior to the start of work under this Agreement, Consultant shall filecertificates of insurance and endorsements evidencing the coverage requiredby this agreement with the Authority. Consultant shall file a new or amendedcertificate of insurance promptly after any change is made in any insurancepolicy which would alter the information on the certificate then on file.

E. Neither the insurance requirements hereunder, nor acceptance or approval of

Consultants insurance, nor whether any claims are covered under anyinsurance, shall in any way modify or change Consultants obligations underthe indemnification clause in this Agreement, which shall continue in full forceand effect. Notwithstanding the insurance requirements contained herein,Consultant is financially liable for its indemnity obligations under thisAgreement.

F. Any deductibles or self-insured retentions must be declared to and approvedby the Authority. At the option of the Authority, either: the insured shallreduce or eliminate such deductibles or self-insured retentions as respectsthe Authority, its officers, officials, employees and volunteers; or Consultantshall provide a financial guarantee satisfactory to the Authority guaranteeingpayment of losses and related investigations, claim administration, anddefense expenses.

12. Ownership of Work and Copyrights. Upon completion of the work under thisAgreement, ownership, title and copyrights to all materials and deliverables produced as part of

this Agreement will automatically be vested in the Authority and no further agreement will benecessary to transfer ownership to Authority.

13 Licensing Standard of Care Consultant represents as follows: that it is


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17. Entire Agreement. This Agreement constitutes the entire Agreement between theparties hereto and supersedes any and all prior agreements, whether oral or written, relating tothe subject matter thereof. Any modification of this Agreement will be effective only if it is inwriting signed by both parties hereto.

18. Validity. If any provision in this Agreement is held by a court of competentjurisdiction to be invalid, void or unenforceable, the remaining provisions will continue in fullforce without being impaired or invalidated in any way.

19. Assignment of Interest. The duties under this Agreement shall not be assignable,delegable, or transferable without the prior written consent of Authority. Any such purported

assignment, delegation, or transfer shall constitute a material breach of this Agreement uponwhich Authoritymay terminate this Agreement and be entitled to damages.

20. Conflict of Interest. Consultant hereby certifies that it does not now have, norshall it acquire any financial or business interest that would conflict with the performance ofservices under this Agreement.

21. Counterparts. This Agreement may be executed in multiple originals, each ofwhich is deemed to be an original, and may be signed in counterparts.

22. Laws. Consultant agrees that in the performance of this Agreement it willreasonably comply with all applicable State, Federal and local laws and regulations. ThisAgreement shall be governed by and construed in accordance with the laws of the State ofCalifornia and the City of Monterey.

IN WITNESS WHEREOF, this Agreement is entered into by the parties hereto on theday and year first above written in Monterey, California.

AUTHORITY CONSULTANT


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Public Outreach Proposal for

Monterey Peninsula Regional Water Authority

Submitted to: Lesley Milton

September 13, 2013


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SUMMARY

The Monterey Peninsula Regional Water Authority (MPRWA) is interested in obtaining Public Outreach

Services as it seeks to find a solution to the Peninsulas water shortage. As a Joint Power Authorityconsisting of six peninsula cities, the MPRWA was formed to overcome the communitys struggle to reacha consensus on a water solution in the face of a State Cease and Desist to go into effect January 1, 2017.The MPRWA believes a portfolio approach is the best solution to address the transparency, financialinvestment, consumer cost, time and other issues important to Peninsula residents. After years of searchingfor a water solution, individuals throughout the Monterey Peninsula are unsure of the status and future ofour water situation. However, outside of fringe activists, the community has a positive opinion of andoverall support for the JPA and its efforts. Public outreach is crucially important to keep the messagemoving forward, to continue to enjoy the publics support and trust of the MPRWA, to counteractmisinformation that could further interrupt the process, and to receive support from Peninsula residents forthe MPRWAs solutions. Upon request by the MPRWA, Environmental Relations PR (ER), based inMonterey, has prepared the following proposal.

GOAL

Play a role in crafting the water message in the community Provide media with a resource to always have access to timely, accurate information, quotes, opinion

pieces, and so on

Demonstrate to the public and local business owners that there is progress in finding a solution to thewater shortage

Receive community buy-in for when the time comes for the MPRWA to make its final recommendations


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ABOUT ENVIRONMENTAL RELATIONS PR

Environmental Relations (ER) is a full-service public relations firm that offers public relations specificallytailored to individual client needs. Taking a business approach, the firm surveys existing tools and crafts

public relations strategies that support an organizations goals, rather than presenting a template checklistof to-dos. Founded in 2010 by Ashley Beleny, ER specializes in strategic planning, strategiccommunications, media relations, and social media.

ER was founded on the principle of offering quality, proactive, attentive public relations services. ER isdedicated to providing results and executing on deadline in a friendly, attentive client/consultantatmosphere.

ER is based in Monterey, California.

Ashley Beleny,PresidentAshley Beleny is President of Environmental Relations and is actively involved in all client accounts. Shehas extensive experience in public relations and marketing and has worked for companies ranging fromlocal start-ups to multinational corporations. Ashley has lived in Monterey since 2006, has worked in publicrelations in the Monterey area since 2008, and is knowledgeable on the water situation on the Peninsula aswell as the stakeholders involved. She also has close relationships with the media.

Ashley is on the Board of Directors for the Monterey County Sheriffs Advisory Council, the American RedCross-Monterey Bay Chapter and the Monterey Peninsula Sunrise Rotary Club. She is also a member ofthe Public Relations Society of America.

Ashley received a Bachelors Degree from The Ohio State University in International Relations andDiplomacy and a Masters of International Trade Policy and an International Masters of BusinessAdministration from the Monterey Institute of International Studies.


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SCOPE OF WORK

The following Scope of Work is proposed to address the Public Outreach Service needs of the MPRWA:

Strategic Master Plan for Public Outreach & Information Dissemination Issue Identification & Message Development Media Relations Newsletter Writing for Authority members Outreach Collateral Development & Maintenance

o Handoutso PowerPoint Presentationso Frequently Asked Questions

Website Messaging & Copy Updating Social Media Coordination Coordination of public outreach & messaging with MPWMD & MRWPCA Monitoring of Water Authority meetings & proceedings Monthly Reports & tracking

The scope of work with be conducted through close work with the MPRWA staff and Board Members toensure the issues and messaging of the organizations and each Authority members are appropriatelyaddressed and coordinated.

Issue Identification & Message DevelopmentER will survey the MPRWAs existing messaging and its use of communications tools, as well as themessaging and communications channels of significant supporting and disagreeing parties. ER will alsolook at the sentiment in recent media. Key issues will then be identified and messaging will be developedto addresses the specific issues of contention and general messaging, along with input from the Boardmembers and staff. This messaging, once approved by the Authority, will be integrated into all collateraland will be coordinated with MPWMD and MRWPCA. Messaging will evolve as needed to addresschanging issues.

Strategic Master Plan for Public Outreach & Information DisseminationUsing the information from the initial research and the agreed upon issues identified, ER will then craft apublic outreach & information strategy to strengthen existing communications and media relations examine


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Outreach Collateral Development & MaintenanceAll pieces of collateral will integrate the MPRWAs messaging and will evolve to address new issues andconcerns, updated messaging, specific goals, and other timely issues. All collateral will be approved by theAuthority, or a pre-determined representative thereof, prior to public use. They will, as appropriate and

determined by the Master Plan, also be added to the website or social media.

Handouts: Handouts will be developed as needed for the staff and Board members. A partial listof handout materials to be created will be made during the development of the Master Plan.However, Board members and staff are welcome to request additional handouts for particular needsand audiences as arise.

PowerPoint Presentations: PowerPoint Presentations will be created for use by staff and Boardmembers to address the specific audience and purpose of the presentation.

Frequently Asked Questions (FAQ): FAQ will be developed from a range of sources, includedkey issues identified, correction of misinformation and misconceptions that have made their wayinto the public, questions arising from public comments, and so forth. FAQ will be updated on anongoing basis.

Website Messaging & UpdatingER will work with MPRWAs website person to integrate messaging, address issues, and maintain and

update information on MPRWAs website to reflect changes, media coverage, social media buttons andother information as needed.

Social Media CoordinationMPRWA currently has no social media presence. ER will incorporate recommendations for social mediainto the Master Plan, including best practices, platforms, goals, and types of posts. When functioningproperly, social media should serve as a platform for communicating messaging, reaching a broad localaudience, demonstrating engagement, and keeping the public updated with accurate information. In addition

to making strategic recommendations for any social media, ER can also manage the Authoritys mediaplatforms, providing timely updates as the situation requires, posting as needed to achieve theaforementioned roles of this platform, and building out the audience following these platforms.


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Any work outside the agreed upon Scope of Work will be billed at a fee to be determined with the AuthorityExecutive Director prior to execution of additional services.

Any outside expenses implicit to the Scope of Work will be included, along with receipt (such as printing).

No charge above $100 will be made without prior approval.

All invoices are due within 30 days of receipt.

REFERENCES AVAILABLE UPON REQUEST


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Item No: 5.


SUBJECT: Receive Update, Discuss and Provide Recommendation on Authority Work Plan

RECOMMENDATION:

Staff recommends that the Authority provide direction on a Work Plan for the balance of FY 2013/2014.

DISCUSSION:

Through September 1, 2013, the Monterey Peninsula Water Authority has focused its efforts on securing

a new peninsula water supply project and in endeavoring to keep the public informed and involved in

the process. Following the April 2012 submission of a Cal Am application to the CPUC for the Monterey

Peninsula Water Supply Project (MPWSP), the Water Authority hired SPI to do an apples-to-applescomparison of the three proposed desal projects and engaged in the CPUC hearing process by providing

both written and oral testimony. The Water Authority then joined with the Water Management District

to seek a settlement between as many parties as possible covering as many issues as possible. Following

a lengthy CPUC settlement process, and close collaboration with the MPWMD amongst others, the

Authority has accomplished the first big step in obtaining a new water supply with the signing of two

settlement agreements and a related document in late July, 2013.

As we move further into FY 2013/2014, staff suggests the Authority focus on several important tasks

which remain:


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Item No: 6.


SUBJECT: Consider and Approve Water Supply Projects Task List and Schedule

RECCOMENDATION:

Staff recommends that the Water Authority review, discuss, amend, and approve the attached

Schedule and Task List for the MPWSP Post Settlement activities, dated October 7, 2013.

DISCUSSION:

Following the April 2012 submission of a Cal Am application to the CPUC for the MPWSP, a

lengthy and tedious CPUC settlement process was pursued leading to two multi-party

settlement agreements in August 2013. However, not all intervenors in the CPUC process

signed off. In addition, there still remains a legal and administrative process leading to a final

decision by the CPUC on the DESAL project in July 2014 and on the GWR project in June

2015. As noted in the Water Authority Work Plan for 2013/2014, the Water Authority intends to

remain actively involved in that process.

The Water Authority will also be actively involved with the securitization component of the

MPWSP, including enabling legislation from Sacramento, and in obtaining public financing for


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October 7, 2013

Schedule and Task List for MPWSP Post Settlement

CPUC Calendar Dates

Task Due Date Responsible Party Notes

Comments onSettlement Agreements

Due

August 30, 2013 Complete

Reply Comments onSettlement Agreements

Due

September 13, 2013 Complete

Prehearing

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

& other matters

September 16, 2013 Complete

Quarterly Check-in Callwith Settling Parties

October 2013 MPRWA In Progress

Informational Hearingon SettlementAgreements

December 2-3, 2013

Quarterly Check-in Callwith Settling Parties January 2014 MPRWA

DEIR circulated forComment

February 28, 2014


April 2014 MPRWA

Comments on DEIRDue

April 14, 2014

Common Outline

Opening Briefs due

April 29, 2014

Reply Briefs due May 14, 2014FEIR published June 17, 2014

P d J l Ph


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October 7, 2013

GWR Phase -Concurrent Rebuttal

Testimony (from

Settlement K)

January 2015

GWR Phase -Evidentiary Hearings(from Settlement K)

February 2015

GWR Phase - Briefing(from Settlement K)

March 2015


April 2015 MPRWA

GWR Phase - Proposed

Decision (fromSettlement K)

June 2015


July 2015 MPRWA

GWR Phase - FinalDecision (fromSettlement K)

July 2015


October 2015 MPRWA


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October 7, 2013

Securitization

Task Due Date Responsible Party NotesDraft Timeline and

Implementation PlanAugust 2013 MPWMD Complete

Meet with LegislativeDelegation re: Timeline

and ImplementationPlan

August 2013 MPWMD & MPRWA Complete

Initial Revision andRedline of Legislation

Early September 2013 MPWMD Complete

Obtain Cal-Am Input onDraft Legislation

Late September 2013 MPWMD, MPRWA, &Cal-Am

In Progress

Retain NecessaryAdditional

Financial/LegalConsultants (Charles

Atkins)

October 2013 MPWMD In Progress

Revise FinancialComparison of

Securitization v. Cal-AmFinancing

October 2013 MPWMD & Cal-Am In Progress

Meeting withCommunity/InterestGroups and Cities

October-December2013

MPWMD & MPRWA In Progress

Further ReviseLegislation as

Necessary

October-November2013

In Progress

Draft Summary ofLegislation

December 2013 MPWMD

Introduce Legislation January 2014

Lobbying Effort February-April 2014 MPWMD, MPRWA, &Cal-Am

L i l i Ad d A il M 2014


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October 7, 2013


Obtain Rating on WaterRate Relief Bonds

July-August 2015 MPWMD

Determine internal costsof Cal-Am and AW tocomply withsecuritization structureto be included in ratesto Monterey Districtcustomers

July-August 2015 Cal-Am

Obtain Letters FromRatings Agencies

Demonstrating NoImpact to American

Water


Obtain Legal Opinionthat Securitization DoesNot Create a Taxable

Event for Cal-Am


Verification of Annual

Customer BenefitsExceed 1.0% of TotalAnnual Revenue

Requirement

July-August 2015 (or

prior to Issuance ofBonds)

MPWMD & Cal-Am

Cal-Am Creates SPE September 2015 MPWMD & Cal-AmWater Rate Relief

Bonds IssuedTBD

(End of 2015?)


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October 7, 2013

GWR


File Motion forBifurcation of theGWR Decision

August 2013 MRWPCA Complete and Granted

Board Actions toApprove Revised

Governance CommitteeAgreement

October 2013 MPWMD, MPRWA,County, & Cal-Am

To be Completed inOctober

Executed Agreementsfor GWR Source Water

and/or DeclaratoryRelief

June 2014MRWPCA Meet & Confer in

Progress

Draft WPAMar 2014

MPWMD & MRWPCA

Obtain Representationsfrom DPH re Use of

Extracted GWR Water

Oct 2014MRWPCA

Obtain Representationsfrom RWQCB re Use ofExtracted GWR Water

Oct 2014MRWPCA

Storage Agreementwith Seaside Basin

WatermasterJul 2014

MRWPCA & MPWMD

GWR Basis of DesignComplete with At Least

10% DesignJul 2014

MRWPCA

GWR Financing PlanSufficient for SRF

FundingAug 2014

MRWPCA & MPWMD

A t T f C l A MRWPCA


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October 7, 2013

Source Wells


Drill ExploratoryBoreholes

Sept. 2013 February2014

Cal-Am Complete

CommenceHydrogeologic Studyand Technical Report

August 2013 Cal-Am / SVWC Draft completed.

Permits for CEMEXSite Test Well

January 2014 Cal-Am

Drill CEMEX Site TestWell

February 2014 Cal-Am

Results of Test WellOperation Obtained

February 2014 February 2016

Cal-Am

Hydrogeologic Studyand Technical ReportComplete and Results

Filed with CPUC

June 2015Cal-Am

Necessary Agreementsfrom CEMEX for

Source Wells

Nov. 2015, or sooner Cal-Am

All Necessary Permitsfor Construction ofSource Wells Obtained

Nov. 2015, or sooner Cal-Am


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Item No: 7.


SUBJECT: Receive Update on the Status of the Ground Water Replenishment Project,

Discuss, and Approve a Support Strategy

RECOMMENDATION:

Staff recommends that the Directors adopt a strategy of support for the Ground Water

Replenishment (GWR) project proposed by the Monterey Regional Water Pollution Control

Agency (MRWPCA).

DISCUSSION/:

Attached is a MRWPCA update on the status of the GWR project as of October 7, 2013.

Also attached is a memo from Water Authority Vice-President Burnett to PCA General ManagerKeith Isreal requesting direction as to how best the Water Authority can support the PCAs GWR

project. Issues outlined by Jason Burnett now need to be considered by the TAC.

Page 1 of1


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From : "Jason Burnett" To: "Keith Israel" , "Dave Stoldt" Cc: "Jim Cullem", "Lesley M ilton" Sent: Friday , September 13, 2013 11:19:40 AM Subject: GW R fo r the TACKeith and Dav e,Tha nk you both fo r you excellent prese ntations last night. The W ater Auth ority will be finalizing ourwork plan to include moving GW R fo rward as one of the top three priorities (along with followingth rough on the settlem ent agreem ent an d en gaging on the CDO). The W ater Authority board asked that ,as chai r of the TAC, I move quickly to dev elop a plan fo r how we will enga ge on GW R. The refore, Iwould like to ask you both to give tho ught to ho w best the W ater Authority an d the TAC ca n en gagewith the PCA an d the District on GW R.In part icular, would you be able to come to the October 7th TAC m eet ing having iden tified a draft list ofthe key im pe diments to GW R combined with a timeline an d general plan for how we are workingthro ug h those impedimen ts?M y list would include:--- Source W aterW PA--- Longevity of water supply--- Evaluation of externalities--- others?W e mig ht wan t to develop a W ater Authority position statemen t fo r GW R similar to how we developedone for desal.I will be reaching out to Den nis Allion to have a sim ilar conversation but wanted to give you both timeto think ab out it before I do so .


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MRWPCA GroundwaterMRWPCA Groundwater

Replenishment ProjectReplenishment Project

Monterey Peninsula Regional Water AuthorityTechnical Advisory Committee (TAC)

October 7, 2013

Keith Israel, MRWPCA General Manager


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Technical Activities

CEQA/Feasibility Studies

Outreach Activities source

PROGRESS FOR GWR

water tour

Policy Activities

2


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Working with City of Seaside on usepermit, encroachment permit andeasements

Conducting bench testing of combined

TECHNICAL ACTIVITIES

Preparing facilities forpilot plan testing

Initial hydrogeologicalmodel runs of SeasideGroundwater Basin

3


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Refined project description

Met with CPUC staff / consultants

for CEQA coordination

CEQA / FEASIBILITY STUDIES

EIR preparation contract

considered (Oct)

4


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Secondary wastewater

Salinas ag wash water

REFINED FOUR SOURCE WATER

PROJECT DESCRIPTION

a nas ur an runo

Monterey Peninsula

urban runoff(Lake El Estero)


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Reclamation Ditch

Blanco Ditch

Storage of ag wash water and

ALTERNATIVE SOURCE WATER*

ponds

* Included in alternative section of EIR due totime constraints and regulatory other obstacles


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Seaside monitor well drilling (Nov) Finish pilot plant installation (through

early Nov)

First meeting of Independent Advisory

UPCOMING EVENTS

ane a e c

Continue source water negotiation with

MCWRACity of Salinas

MCWD


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Joint outreach planning meeting (late Oct)

Received update on new Silicon Valley

Advanced Water Puri ication Center

OUTREACH ACTIVITIES

8

Attended WateReuseSymposium (mid Sept) and

noted high interest in D/Ipotable reuse


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GWR TASKS DATESRESPONSIBLE

PARTYNOTES

Source wateragreements June 2014 MRWPCA

In progress

Financial/capacity studiesneeded

Draft WPA Mar 2014MRWPCA and

MPWMD Priority to source water

negotiations

DPH input on use of

extracted GWR Oct 2014 MRWPCA

Interim IAP Report May

2014

RWQCB input on useof extracted GWRwater

Oct 2014 MRWPCA Same as above

Storage agreement

with Seaside WMJuly 2014

MRWPCA and

MPWMD

Priority to source water

negotiationsGWR basis of design(10%)

July 2014 MRWPCA Need source water MOUs

and pilot work completed

GWR financing planfor SRF funding

Aug 2014MRWPCA and

MPWMD Need source water MOUs

and 10% design first


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GWR TASKS DATESRESPONSIBLE

PARTYNOTES

Agreement on WPA

terms May 2014

Cal Am, MRWPCA

and MPWMD

Priority to source

water negotiations

Revenue requirementsanalysis

July 2014MRWPCA and

MPWMD Need 10% design first

GWR ExternalitiesStudy

June 2014MRWPCA and

MPWMD Good to have 10%

design first

DEIR circulated July 2014 MRWPCA

Cal Am dilution waterrequirement

July Oct2014

MRWPCA

Project and FEIRapprovals

Oct 2014 MRWPCA

GWR constructionpermits

? MRWPCA

Confirm as part ofGWR design/build

GWR testimony Dec 2014 Parties

GWR proposeddecision

June 2015 CPUC Allows only 18 months

for GWR design/build


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WATER RESOURCES

UTILITY OF THE FUTURE(UOTF)

13

Transformation

Handlers of

Wastewater

Managers of

SustainableResources


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14

or more n ormat on contact:Keith Israel, General Manager

Monterey Regional WaterPollution Control Agency

(831) 645-4603

www.mrwpca.orgwww.mpwaterreplenishment.org

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