Professional Documents
Culture Documents
Chuck Della Sala, President
Monterey Peninsula Regional Water Authority
C: Charles McKee, County Counsel
Attachment:
Water Authority contract with SPI for Consultant Support Services dated Nov 5, 2013 including Scope of
Work
MPRWA Meeting, 1/9/2014 , tem No. 4., tem Page 3, Packet Page 19
580 PACIFIC ST, ROOM 6 MONTEREY CALIFORNIA 93940 www.mprwa.org
MONTEREY PENINSULA REGIONAL WATER AUTHORITY
J anuary 6, 2014
Fernando Armenta, Chair
Monterey County Board of Supervisors
168 W. Alisal St.
Salinas, CA 93901
Directors:
Chuck Della Sala, President
J ason Burnett, Vice President
Ralph Rubio, Secretary
J erry Edelen, Treasurer
Bill Kampe, Director
David Pendergrass, Director
Executive Director:
J im Cullem, P.E.
RE: Pro-Rata Share of Costs for Water Authority Representation and Invitation to Participate
Dear Supervisor Armenta:
As you know, the Monterey Peninsula Regional Water Authority (MPRWA) was created by a
J oint Exercise of Powers Agreement on February 12, 2012 and originally consisted of the six cities on
the Monterey Peninsula: Carmel-by-the-Sea, Del Rey Oaks, Monterey, Pacific Grove, Sand City and
Seaside. Since 34% of California American Water Company (Cal-Am) customers reside within non-
incorporated areas, a restatement of the Agreement was adopted by the Water Authority on February
14, 2013 to allow membership by Monterey County.
Although Supervisor Dave Potter represents the County on the Monterey Peninsula Water
Supply Project (MPWSP) Governance Committee, the Water Authority also separately considers
issues impacting residents of the unincorporated areas. Accordingly, we would again like to invite the
Board of Supervisors to name a representative to the MPRWA Board.
In recognition of Water Authority efforts on behalf of County residents, the Board of
Supervisors approved a pro-rata contribution of $83,300 on 11 September 2012, based on an initial
FY 2012-2013 MPRWA budget of $245,245. To date, the Authority has not yet invoiced the County for
those funds.
The FY 2012-2013 MPRWA budget was subsequently increased to $476,726 to cover the
costs of a part-time Executive Director and a contract for expanded Attorney of Record expenses in
support of Authority participation in the California Public Utilities Commission (CPUC) settlement
negotiations on Cal-Ams application A.12-04-019 for a Monterey Peninsula Water Supply Project
(MPWSP).
The Countys revised FY 2012-2013 pro-rata share at 34% would be $162,000 or an increase
of $78,700 over the previously approved contribution.
The FY 2013-2014 MPRWA budget of $423, 680 was adopted on April 25, 2013. The
Countys pro-rata share at 34% is $144,000.
MPRWA Meeting, 1/9/2014 , tem No. 4., tem Page 4, Packet Page 20
J anuary 6, 2014
2
Accordingly, the Water Authority hereby requests that the Board of Supervisors approve a
revision to its fair-share (pro-rata) contribution to the MPRWA budget for FY 2012-2013 in the amount
of an additional $78,700 and approve its pro-rata contribution to the MPRWA budget for FY 2013-
2014 in the amount of $144,000.
Sincerely,
Chuck Della Sala, President
Monterey Peninsula Regional Water Authority
C: Lew Bauman, County Administrative Officer
Charles McKee, County Counsel
MPRWA Meeting, 1/9/2014 , tem No. 4., tem Page 5, Packet Page 21
Monterey Peninsula Regional Water Authority
Agenda Report
Date: January 09, 2014
Item No: 5.
06/12
FROM: Executive Director Cullem, Prepared by Clerk Milton
SUBJECT: Approve and File Checks Through December 31, 2013
RECOMMENDATION:
It is recommended that the MPRWA approve and file the accounts payable payments
made during the period of July 1, 2013 through December 31, 2013. Total Accounts
Payable and Payroll for the above referenced period is $222,300.21. It is recommended
that the Authority approve and file the attached checks.
DISCUSSION:
At its meeting on September 12, 2013, the Authority Board approved a staff
recommendation to provide the Directors a listing of general checks issued since the last
report so that it can inspect and confirm these checks. Each invoiced expense has been
reviewed and approved by the Executive Director and Finance personnel and confirmed
by the President or Vice President prior to payment to insure that it conforms to the
approved budget.
The following checks are hereby submitted to the Authority for inspection and
confirmation.
$13,500 to Perry and Freeman For Legal Services
$800 for Opinion Editorial Editing
$300 to Sunset Center for CPUC meeting space
$1,312.5 to AMP for Video Recording and Broadcasting
157,090.19 for Special Legal Counsel of Brownstein, Hyatt, Farber and Schreck
$828.74 to The City of Monterey for Administrative Expenses Reimbursement
(Meeting space for CPUC meeting at Marriott, Website Renewal, etc)
$6,766.90 to Separation Processes for Project Evaluation/Consulting testimony
$6,701.88 for Insurance Expenses
$35,000 for Clerical and Administrative Services Contract (annual payment)
FISCAL IMPACT
The listed checks have been budgeted and paid from the various funds, as appropriate.
ATTACHMENT
Compiled list of general checks issued for the period described above.
MPRWA Meeting, 1/9/2014 , tem No. 5., tem Page 1, Packet Page 23
Type Date Name Item Account Paid Amount Original Amount
Bill Pmt -Check 8/8/2013 Don Freeman Wells Fargo Checking -4,500.00
Bill 7/1/2013 5110 Independent Legal Counsel Serv -2,250.00 2,250.00
Bill 8/1/2013 5110 Independent Legal Counsel Serv -2,250.00 2,250.00
TOTAL -4,500.00 4,500.00
Bill Pmt -Check 8/8/2013 Lewis A. Leader Wells Fargo Checking -800
Bill 8/1/2013 5500 OUTSIDE SERVICES -800 800
TOTAL -800 800
Bill Pmt -Check 8/8/2013 Sunset Cultural Center, Inc. Wells Fargo Checking -300
Bill 6/30/2013 5500 OUTSIDE SERVICES -300 300
TOTAL -300 300
Bill Pmt -Check 8/2/2013 Access Monterey Peninsula Wells Fargo Checking -900
Bill 8/2/2013 5500 OUTSIDE SERVICES -900 900
TOTAL -900 900
Bill Pmt -Check 9/10/2013 Brownstein Hyatt Farber Schreck Wells Fargo Checking -110,120.81
Bill 4/16/2013 5210 Attorney of Record(CPUC) -18,385.39 18,385.39
Bill 5/17/2013 5210 Attorney of Record(CPUC) -44,870.95 44,870.95
Bill 6/27/2013 5210 Attorney of Record(CPUC) -22,297.79 22,297.79
Bill 6/30/2013 5210 Attorney of Record(CPUC) -21,372.75 21,372.75
5860 Travel Expense -12.25 12.25
5210 Attorney of Record(CPUC) -3,181.68 3,181.68
TOTAL -110,120.81 110,120.81
Bill Pmt -Check 10/24/2013 Brownstein Hyatt Farber Schreck Wells Fargo Checking -23,842.99
Bill 9/4/2013 5210 Attorney of Record(CPUC) -19,600.00 19,600.00
Bill 9/10/2013 5210 Attorney of Record(CPUC) -4,242.99 4,242.99
TOTAL -23,842.99 23,842.99
Bill Pmt -Check 10/24/2013 City of Monterey Rev Division Wells Fargo Checking -828.74
Bill 8/27/2013 5300 STAFF SERVICES Admin/Clerical -828.74 828.74
TOTAL -828.74 828.74
Bill Pmt -Check 10/24/2013 Don Freeman Wells Fargo Checking -6,750.00
Bill 9/1/2013 5110 Independent Legal Counsel Serv -2,250.00 2,250.00
Bill 10/1/2013 5110 Independent Legal Counsel Serv -2,250.00 2,250.00
Bill 11/1/2013 5110 Independent Legal Counsel Serv -2,250.00 2,250.00
TOTAL -6,750.00 6,750.00
Bill Pmt -Check 10/24/2013 Separation Processes, Inc. Wells Fargo Checking -6,766.90
Bill 4/3/2013 5510 Project Evaluation Study -871.8 871.8
Bill 5/6/2013 5510 Project Evaluation Study -2,679.10 2,679.10
Bill 6/5/2013 5510 Project Evaluation Study -3,216.00 3,216.00
TOTAL -6,766.90 6,766.90
Bill Pmt -Check 12/3/2013 Access Monterey Peninsula Wells Fargo Checking -225
Bill 10/25/2013 5500 OUTSIDE SERVICES -225 225
TOTAL -225 225
Bill Pmt -Check 12/3/2013 Alliant Insurance Services Wells Fargo Checking -6,701.88
Bill 9/12/2013 5600 INSURANCE EXP -6,701.88 6,701.88
TOTAL -6,701.88 6,701.88
Bill Pmt -Check 12/3/2013 Brownstein Hyatt Farber Schreck Wells Fargo Checking -23,126.39
Bill 10/17/2013 5210 Attorney of Record(CPUC) -11,179.00 11,179.00
Monterey Peninsula Regional Water Authority
Check Detail
All Transactions J uly 1, 2013 to December 31, 2013
MPRWA Meeting, 1/9/2014 , tem No. 5., tem Page 2, Packet Page 24
Bill 10/31/2013 5210 Attorney of Record(CPUC) -3,710.00 3,710.00
Bill 10/31/2013 5210 Attorney of Record(CPUC) -105 105
Bill 11/21/2013 5210 Attorney of Record(CPUC) -8,132.39 8,132.39
TOTAL -23,126.39 23,126.39
Bill Pmt -Check 12/3/2013 City of Monterey Rev Division Wells Fargo Checking -35,000.00
Bill 11/26/2013 5300 STAFF SERVICES Admin/Clerical -35,000.00 35,000.00
TOTAL -35,000.00 35,000.00
Bill Pmt -Check 12/3/2013 Don Freeman Wells Fargo Checking -2,250.00
Bill 12/3/2013 5110 Independent Legal Counsel Serv -2,250.00 2,250.00
TOTAL -2,250.00 2,250.00
Bill Pmt -Check 12/3/2013 Access Monterey Peninsula Wells Fargo Checking -187.5
Bill 11/22/2013 5500 OUTSIDE SERVICES -187.5 187.5
TOTAL -187.5 187.5
Total Checks Paid -222,300.21
MPRWA Meeting, 1/9/2014 , tem No. 5., tem Page 3, Packet Page 25
Monterey Peninsula Regional Water Authority
Agenda Report
Date: January 09, 2014
Item No: 6.
06/12
FROM: Executive Director Cullem
SUBJECT: Receive Update on Status of Financial Report and Full Opinion Audit for FY
2012-2013 and 2012,
RECOMMENDATION:
It is recommended that the MPRWA receive an update on the Full Opinion Audit for Fiscal Year
2012-2013 and for 2012 (partial FY 2011-2012)
DISCUSSION:
At its meeting on June 13, 2013, the Water Authority Board approved a staff recommendation to
allow completion of the Financial Annual Report and a Full Opinion Audit for FY 2012-13, as
required by Water Authority Bylaws sections 6.3 and 6.4.1, concurrently with that of the Member
City conducting the Authority audit. However, staff subsequently determined it would create less
of a potential conflict of interest to select a firm not currently auditing member cities.
Following an informal proposal process, the Executive Director selected McGilloway, Ray,
Brown and Kaufman (Kaufman) for the audit and a contract was executed on October 31, 2013.
A time extension for report completion to Dec 31, 2013 and, an extension of the contract
completion date to March 31, 2014 were approved by the Water Authority on November 14,
2013 in order to provide additional time for any unanticipated audit follow-up after the report was
completed.
The draft audit was completed on 27 December and reviewed by the Authority Treasurer on 29
December. Since no errors were found or corrections made, the audit is considered complete.
However, Kaufman has requested an opportunity to brief the Treasurer and the Executive
Director on a Management Letter which should accompany the audit. Since that briefing has
not yet taken place, the Executive Director will submit the final audit report to the Authority at the
next meeting.
MPRWA Meeting, 1/9/2014 , tem No. 6., tem Page 1, Packet Page 27
Monterey Peninsula Regional Water Authority
Agenda Report
Date: January 09, 2014
Item No: 7.
06/12
FROM: Executive Director Cullem
SUBJECT: Year End Budget Review for Calendar Year 2013
RECOMMENDATION:
It is recommended that the MPRWA receive an update the budget for FY 2013-2014 as
of the end of the calendar year (December 31, 2013).
DISCUSSION:
At its meeting of April 25, 2013, the Water Authority adopted a budget of $423,680 for
Fiscal Year 2013-2014. As of December 31, 2013, the Authority has expended
approximately $222,000 (52%) of the budget funds.
The contribution from each City was calculated based upon a lesser amount of
$341,263 in anticipation of a FY 2012-2013 $82,417 surplus. Unfortunately, that surplus
failed to materialize as a consequence of higher than expected Attorney of Record costs
associated with the CPUC settlement proceedings in the spring of 2013.
In addition, Attorney of Record billings continue as a major expense, but are within the
budget as of December 31, 2013. However, as noted in the staff report for the
Brownstein Contract extension, an increase for the Attorney of record in the order of
$86,000 will be needed for calendar year 2014. Distribution of Attorney of Record
expenses between FY 2013-2014 and FY 2014-2015 is yet to be finalized.
As a result of the reduced City assessments discussed above there will be a shortfall in
funding for the current fiscal year. However, the Authority has requested a fair-share
contribution from Monterey County in the amount of $306,000. Of that amount, $83,300
has already been approved by the Board of Supervisors. If the County provides its fair
share in the near term, the shortfall would be eliminated.
FISCAL IMPACT:
Accordingly, the Executive Director recommends the Authority defer a revision to the
City assessments until the Authority has received a response from the County to the
fair-share funding requests.
MPRWA Meeting, 1/9/2014 , tem No. 7., tem Page 1, Packet Page 29