Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

Technical Advisory Committee (TAC)
Regular Meeting

10:30 AM, Monday, January 6, 2014
Council Chamber
580 Pacific Street
Monterey, California


CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM TAC MEMBERS

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

APPROVAL OF MINUTES

1. November 4, 2013 Regular Meeting

2. December 9, 2013 Special Meeting

AGENDA ITEMS

3. Review and Discuss Current Monterey Peninsula Water Supply Project Schedule (Burnett)

4. Receive Report and Discuss Status of Ground Water Replenishment Product Water
Negotiations and Status of SDPH Criteria for Groundwater Recharge of Waste Water
(Israel)

5. Receive Report and Discuss Water Project Status Reports Being Conducted by the
Monterey Peninsula Water Management District (Stoldt)

6. Receive Report, Discuss and Provide Direction Regarding Alternate Funding Scenarios as
It Related to Cost of Water (Cullem)

7. Receive Report, Discuss and Provide Direction Regarding Monterey Regional Water
Pollution Control Agency Responses to The Coalition of Peninsula Businesses (Narigi).

ADJOURNMENT

Created date 01/03/2014 10:38 AM Monday, January 6, 2014
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Agenda related writings or documents provided to the MPRWA are available for public
inspection during the meeting or may be requested from the Monterey City Clerks Office at 580
Pacific St, Room 6, Monterey, CA 93940. This agenda is posted in compliance with California
Government Code Section 54954.2(a) or Section 54956.




M I N U T E S
MONTEREY PENINSULA WATER AUTHORITY (MPRWA)
TECHNICAL ADVISORY COMMITTEE (TAC)
Regular Meeting
10:30 AM, Monday, November 4, 2013
MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY REGIONAL
TREATMENT PLANT
14811 DEL MONTE BLVD, MARINA 93933

Members Present: Israel, Narigi, Riedl, Stoldt, Burnett

Members Absent:

Riley

Staff Present: Executive Director, Legal Counsel, Clerk

CALL TO ORDER
The meeting was called to order at 10:30 a.m.

ROLL CALL

PLEDGE OF ALLEGIANCE

ADJOURN TO FIELD TRIP

1. Tour of the Monterey Regional Water Pollution Control Agency Regional Treatment Plant
at 14811 Del Monte Blvd, Marina 93933

The meeting reconvened at 11:17 a.m.

REPORTS FROM TAC MEMBERS

Member Stoldt reported on speaking engagements he has attended regarding securitization
funding for the Monterey Peninsula Water Supply Project. Chair Burnett reported about the
Directors Special Meeting where they authorized a representative to participate with the Cal Am
Design Build Firm interview process noting it was an unusual opportunity that a public agency
was invited to participate in the private process. The Authority authorized contracting with Alex
Wesner from Separation Process Incorporated to participate on behalf of the Governance
Committee.

PUBLIC COMMENTS

Chair Burnett invited public comments.
David Lifland questioned the status of the test well permit application with the City of
Marina. Chair Burnett responded that he will provide an update at the November 14,

2013 Director meeting.

APPROVAL OF MINUTES

2. August 19, 2013

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On Motion by TAC Member Stoldt and seconded by TAC Member Narigi and passed by the
following vote the TAC approved the minutes of August 19, 2013

AYES: 5 DIRECTORS:
Israel, Narigi, Riedl, Stoldt, Burnett
NOES: 0 DIRECTORS: None
ABSENT: 1 DIRECTORS: Riley
ABSTAIN: 0 DIRECTORS: None

AGENDA ITEMS

3. Receive Report, Discuss and Make Recommendations Regarding Ground Water
Replenishment Project Bifurcation, including timeline and process for cost comparison and
other project criteria (Burnett)

Chair Burnett reported on this item speaking to the approved settlement agreement granted by
the CPUC judge which includes project criteria for the Ground Water Replenishment (GWR)
project. He noted that the process laid out in the settlement agreement leaves some questions.
He requested the TAC to consider if there are particular criteria that could benefit from Authority
engagement.

The following items were determined to be considered for engagement:

1. Source water
2. Department of Health
3. On schedule delivery
4. Preliminary design completed to 10% level
5. Funding plan is in place
6. Water purchase agreement with just and reasonable terms
7. Comparison of the revenue requirement in compare to a larger desal without GWR

Member Israel spoke to conversations the Pollution Control Agency has been engaged in
regarding source water. Progress is being made so binding arbitration has been delayed but
anticipates to have the source water issue worked out on or before 2014.

Chair Burnett opened the item to public comment.
Nelson Vega spoke to the need to have a confirmed source of water before any
additional monies are spent to avoid stranded costs.
David Lifland questioned the supporting evidence for regulations on the treatment and
injection process and thinks it is in conflict with the 2011 basin plan. He is concerned
that the Department of Health and the State Water Resources Control Board will not
approve the process.

Mr. Israel responded to concerns expressed during public comment.

Mr. Stoldt left the meeting at 11:31 a.m.

Member Narigi urged consideration for future water supply needs. He indicated he has a variety
of concerns that he does not feel has been addressed. Member Narigi and Executive Director
Cullem will meet and discuss concerns and present a plan of action to the TAC.

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The TAC agreed on the following action items:
Monitor the schedule and how we are doing relative to that. Need staff recommendation
to how we can provide answer to questions that Member Narigi raises.
Want to see the scope of work on the externality study from Member Stoldt
List of legal challenges or concerns that could come up and if they could be vetted
through CEQA process

4. Receive Report, Discuss and Make Recommendations Regarding Ground Water
Replenishment Project Schedule and Areas where the Water Authority Can Assist in Evaluating
and Moving the Project Forward (Israel)

TAC Member Israel spoke to the item indicating that the list has been updated with regards to
public health. He questioned what the procedural mechanism is for asking the CPUC to engage.
Legal Counsel Russ McGlothlin will be contacted to provide the best opportunities.

The TAC spoke to the schedule included in the packet and the opportunities identified by the
MRWPCA for the Authority to offer assistance which include the following:
Source Water Agreements
Participating in key discussions with regulator agencies
Support of project funding via the 2014 Water Bond
Assistance in the planning of the externalities study

Mr. Israel outlined the numerous permits that were required on the Federal (6), State (10),
regional/local permits (16) and private entities (3) level. He then spoke to current efforts to
assess and identify all waters in Northern Monterey County citing the need for the development
of a full-scale general plan to minimize short term solutions.

Chair Burnett invited public comments.

Tom Rowley spoke concerning the availability of source waters. He expressed concern
about ASR not being reliable, the timeline for installation of the proposed pipeline and
questioned opportunities to expedite the process. He questioned the GWR project
quantity projections and how it was measured.
Nelson Vega spoke to the draft Water Purchase Agreement (WPA) and expressed
concern about liability if you cannot produce the amount of water that is committed. He
spoke in support of bifurcating the two projects but thinks the projects will still be done in
a lineal pattern instead of on parallel tracks. Lastly, he expressed concern regarding
stranded costs from the projects.

Mr. Israel answered Mr. Rowleys questions that the quantity of water is measured at point of
injection and that the deep wells are more expensive than the shallow wells. Chair Burnett
agreed with concerns of liability if adequate water cannot be produced but noted the WPA has
not been drafted yet and contingencies will be built into the projects to account for these
concerns.
The TAC discussed the need for an independent analysis to be done of the GWR project.
Member Israel reported that the Independent Advisory Panel, funded by the Irvine Foundation is
conducting an analysis of the project and has offered to provide an update to the Authority if
requested.

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5. Discuss, Provide Staff Direction in Identifying Information Necessary to Evaluate the Ground
Water Replenishment Project (Cullem)

This item was discussed and taken up under previous items. There was no additional
discussion.

ADJOURNMENT

The meeting adjourned at 12:53 p.m.



Respectfully Submitted, Approved,





Lesley Milton, Committee Clerk Jason Burnett, TAC Chair
MPRWA TAC Meeting, 1/6/2014 , tem No. 1., tem Page 4, Packet Page 4

M I N U T E S
MONTEREY PENINSULA WATER AUTHORITY (MPRWA)
TECHNICAL ADVISORY COMMITTEE (TAC)
Special Meeting
10:30 AM, Monday, December 9, 2013
SEASIDE COUNCIL CHAMBER
440 HARCOURT AVE
SEASIDE, CA 93955

Members Present: Israel, Narigi, Riley, Riedl, Stoldt, Burnett

Members Absent: None

Staff Present: Legal Counsel, Executive Director, Clerk, SPI Consultant Alex Wesner

CALL TO ORDER

TAC Chair Burnett called the meeting to order at 10:30 a.m.

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM TAC MEMBERS

TAC Member Riley spoke to a newspaper article discussing future water rates and requested an
opportunity to ask questions. TAC Member Narigi spoke to the December 2, 2013 California
Public Utilities Commission (CPUC) Workshop and reported meeting with Executive Director
Cullem regarding Ground Water Replenishment Project concerns. Chair Burnett also reported
regarding the CPUC workshop indicating the focus of questioning was regarding the size of the
desal facility and that he had the opportunity to speak to the Authority position of sizing and the
need to have water for lots of record and economic rebound. Member Stoldt indicated additional
topics of discussion included cost cap, procedure for GWR, and securitization financing.

PUBLIC COMMENTS

David Lifland requested an update on the Monterey Peninsula Water Supply Project test well
project. Cal Am Engineering Manager Ian Crooks responded that Cal Am is working with Marina
to provide six additional technical studies to the City of Marina by the end of December.

AGENDA ITEMS

1. Review, Discuss and Provide Recommendations on Draft SPI Report to the Monterey
Peninsula Water Supply Project (MPWSP) Design Build Consultant Selection Process
(Consultant Alex Wesner)
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A brief over view of the project was provided by TAC Chair Burnett. He recapped the
Governance Committee structure which provides a venue for the three public agencies to weigh
in on the different aspects of the planning and construction of Cal Ams Monterey Peninsula
Water Supply Project.

Mr. Alex Wesner, contracted consultant from Separation Processes Incorporated provided a
detailed presentation of his involvement in the selection process for the Design Build contract
for the MPWSP as members of the Governance Committee on behalf of the three public
agencies. His role was to review relevant documents, including statement of qualifications,
Request for Proposals, proposal responses, questionnaire response and evaluation reports. He
also attended meetings including interviews with the contractors, proposal scoring sessions and
negotiations with selected Design Build firm.

Mr. Wesner spoke to the technical specifications that were included in the contract negotiation
process and provided evidence of the justifications for selection of the firm CDM including price,
design ideas and site plan. He explained that the process was prescriptive to respond to specific
technical criteria yet allowed the bidders to submit voluntary alternate proposals for flexibility.

Mr. Wesner provided the following schedule highlights proposed by the selected contractor
CDM (*This time frame is contingent upon the success of the test wells.) then answered
questions from the TAC.:

GWR Capacity Decision: October 2015
Final Design/Construction Start Nov 2015
Initial Start up at for 6.4 MGD Sept 2017
Final Start up for 9.6 MGD March 2018

The TAC discussed the voluntary alternative proposals and requested the proposed rates be
included within the contract. Mr. Wesner noted that there were no immediate alternatives
presented that should automatically be adopted and included from other proposals. The TAC
discussed ways to speed up the process but Mr. Wesner responded that schedule acceleration
is linked to Cal Ams permitting schedule. Member Narigi spoke to the cost difference between
the different sized facilities, noting it was a small incremental cost. Mr. Wesner encouraged
looking at the total project cost including operating costs as this facility would be more energy
demanding to operate than the GWR project.

Mr. Crooks thanked the Authority for the effort Mr. Wesner provided to the process. The process
was very throughout and the product results were acceptable.

Chair Burnett opened the item to public comment

David Lifland questioned redundancy of the wells if there are unanticipated outages. Mr.
Crooks confirmed that that is adequately addressed. Cal am could start up some of the
other wells if those wells if there is an outage. He also spoke to the ability to pull water
from the Carmel River or other areas and run for a short period of time in an emergency.
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Member Riley requested anticipated completion dates of the EIR and the planned decision date
for the CPCN to be included in the Critical Path method schedule. Mr. Cooks responded that the
Draft EIR is anticipated to be released in February 2014, for approval in August. The TAC
discussed the schedules as laid out in the CPUC settlement agreements for both the MPWSP
and the GWR project, but noted they are all speculative and based on progress of the projects.

TAC Chair Burnett read an email from Legal Counsel McLaughlin into the record indicating
Attorney Wes Strickland reviewed the proposed contract and concluded that the agreement was
well drafted and fair. One further item is being explored regarding meeting coordination, but
feels it is ripe for approval by the Governance Committee.

Executive Director Cullem summarized the following concerns discussed by the TAC:
High cost spread of the bids
Pushing the design work schedule given the permitting
Brine disposal issues and how they could affect the design
Contract being increased due to the added
Lock in reduced rate if filters are eliminated
Contract ignores permitting schedule
Small difference in costs between both size facilities
Quality Assurance vs. Quality Control
Water Supply Sources and Redundancies

Executive Director Cullem spoke to the need to compile recommendations necessary to pass to
the Authority Directors and then to the Governance Committee.

The TAC requested the following changes to the contract include:
1) Request Cal Am to look into locking-in the price of reduction in the event the
filters are not needed if iron and manganese are not needed and any other areas
where voluntary alternatives could reduce costs that could be locked in
The TAC suggested further review of the following:
2) Looking at oversight of quality control and quality assurances
3) Clarification when the value engineering exercise begins
4) Identify the critical path schedule that the public agencies and the public can look
to ensure the project stays on schedule

On Motion by TAC Member Stoldt and seconded by TAC Member Narigi and passed by the
following vote the TAC endorse the selection of CDM Smith for the design build team and
directed this recommendation be passed to the Authority with the exception of the potential for
a credit for the pre filtration if not necessary based on water quality test, as well as to consider
inclusion into the contract for Quality Assurance to be conducted by Cal Am or its
representative.

AYES: 5 DIRECTORS:
Israel, Narigi, Riley, Riedl, Stoldt,
NOES: 0 DIRECTORS: None
ABSENT: 0 DIRECTORS: None
ABSTAIN: 1 DIRECTORS: Burnett
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Mr. Cullem noted that the discussion was longer than anticipated and due to time constraints
the remaining items will be tabled.

The TAC requested for a future agenda to discuss and determine how best to calculate and
communicate water rate increases to the ratepayers. It was additionally noted that this design
build selection resulted in substantial ratepayer savings over the original savings projected by
SPI in the previous report.

2. Review and Discuss Current Monterey Peninsula Water Supply Project Schedule (Burnett)
Action: Tabled

3. Receive Report and Discuss Status of Ground Water Replenishment Product Water
Negotiations and Status of SDPH Criteria for Groundwater Recharge of Waste Water (Israel)
Action: Tabled

4. Receive Report and Discuss Water Project Status Reports Being Conducted by the Monterey
Peninsula Water Management District (Stoldt)
Action: Tabled

5. Receive Report, Discuss and Provide Direction Regarding Monterey Regional Water Pollution
Control Agency Responses to The Coalition of Peninsula Businesses (Narigi).
Action: Tabled

6. Receive Report, Discuss and Provide Direction Regarding Alternate Funding Scenarios as It
Related to Cost of Water (Cullem)
Action: Tabled

ADJOURNMENT

The next scheduled meeting on December 16, 2013 was canceled. The next scheduled meeting
for the TAC will be on January 6, 2014. The meeting was adjourned at 12:13 p.m.


Respectfully Submitted, Approved,





Lesley Milton, Authority Clerk Jason Burnett, TAC Chair
MPRWA TAC Meeting, 1/6/2014 , tem No. 2., tem Page 4, Packet Page 8
Monterey Peninsula Regional Water Authority
Agenda Report

Date: January 06, 2014
Item No: 6.




FROM: Executive Director Cullem

SUBJECT:
Receive Report, Discuss and Provide Direction on Alternate Funding Scenarios as Related to
the Cost of Water.


RECOMMENDATION:
Staff recommends that the TAC review the alternative funding scenarios as outlined in the
attached Cal-Am attachment to better understand the impact that the various Desal project
funding scenarios have on the cost of water to the average customer as defined in footnote #4.
It is further recommended that the TAC provide suggestions and input to the Water Authority as
appropriate.

DISCUSSION:
The attached Monterey Peninsula Water Supply Project Financing Scenarios document was
presented and discussed at the CPUC pre-hearing on December 2, 2013. For purpose of
comparison, it refers only to the 9.6 MGD plant.

The columns in the table outline estimated costs caps that cannot be exceeded without CPUC
approval by means of a Tier 2 Advice Letter or a Petition for Modification. Refer to
paragraphs III C and III D of the Comprehensive (Large) settlement agreement for a detailed
discussion.

Go to the Water Authority web site at www.mprwa.org and click on Resource Central than
Documents to find the full text of the settlement agreement.

This item will be discussed at the Water Authority meeting this afternoon, so any TAC
suggestions or recommendations should be conveyed to the authority through the Executive
Director or during the public comments period at the Authority meeting.

ATTACHMENT:
Monterey Peninsula Water Supply Project Project & Financing Scenarios ( as of 2 Dec 2013)
MPRWA TAC Meeting, 1/6/2014 , tem No. 6., tem Page 1, Packet Page 9
MPRWA TAC Meeting, 1/6/2014 , tem No. 6., tem Page 2, Packet Page 10