Closed Session Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

6:30 PM, Thursday, February 12, 2015
Council Chamber
580 Pacific Street
Monterey, California
CALL TO ORDER
CLOSED SESSION AGENDA ITEMS
cs1.

Pursuant to Government Code 54957 - Performance Evaluations

Positions: Executive Director And Authority Legal Counsel

ADJOURNMENT

The Monterey Peninsula Regional Water Authority is committed to including the disabled in all
of its services, programs and activities. In compliance with the Americans with Disabilities Act,
if you need special assistance to participate in this meeting, please contact the Monterey City
Clerks Office at (831) 646-3935. Notification 30 hours prior to the meeting will enable the City
to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.10235.104 ADA Title II]. Later requests will be accommodated to the extent feasible. For
communication-related assistance, dial 711 to use the California Relay Service (CRS) to speak
to City offices. CRS offers free text-to-speech, speech-to-speech, and Spanish-language
services 24 hours a day, 7 days a week. If you require a hearing amplification device to attend
a meeting, dial 711 to use CRS to talk to the Monterey City Clerk's Office at (831) 646-3935 to
coordinate use of a device.
Agenda related writings or documents provided to the MPRWA are available for 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.

Agenda
Monterey Peninsula Regional Water Authority (MPRWA)
Regular Meeting
7:00 PM, Thursday, February 12, 2015
Council Chamber
580 Pacific Street
Monterey, California

ROLL CALL
PLEDGE OF ALLEGIANCE
REPORTS FROM BOARD DIRECTORS AND STAFF
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 and which is not on the agenda. Any person
or group desiring to bring an item to the attention of the Authority may do so by addressing the
Authority 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.

CONSENT AGENDA
1.

January 8, 2014 Regular Meeting - Milton

2.

Approval of Checks Through February 12, 2015 - Milton

AGENDA ITEMS

3.

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

4.

Discuss Accomplishments of The Water Authority Since Its Formation to the Present Burnett

5.

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

6.

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

7.

Receive Report On Monthly Reports To The Authority Board On Activities Of The Public
Outreach Consultant And Discussion Of Priorities. - Beleny

8.

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

Thursday, February 12, 2015

Governance Committee. - Cullem

9.

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

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

10.

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

11.

Receive Year End Budget Review for Fiscal Year 2014-15, Discuss, and Provide
Guidance To Staff. - Cullem

12.

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

ADJOURNMENT

The City of Monterey is committed to including the disabled in all of its services, programs and
activities. In compliance with the Americans with Disabilities Act, if you need special assistance
to participate in this meeting, please contact the City Clerks Office at (831) 646-3935.
Notification 30 hours prior to the meeting will enable the City to make reasonable arrangements
to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II]. Later requests will
be accommodated to the extent feasible. For communication-related assistance, dial 711 to use
the California Relay Service (CRS) to speak to City offices. CRS offers free text-to-speech, speechto-speech, and Spanish-language services 24 hours a day, 7 days a week. If you require a hearing
amplification device to attend a meeting, dial 711 to use CRS to talk to the City Clerk's Office at
(831) 646-3935 to coordinate use of a device.
Agenda related writings or documents provided to the MPRWA are available for 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 TE S
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
Regular Meeting
7:00 PM, Thursday, January 8, 2015
COUNCIL CHAMBER
580 PACIFIC STREET
MONTEREY, CALIFORNIA
Directors Present:

Burnett, Edelen Kampe, Pendergrass, Roberson, Rubio

Directors Absent:

None

Staff Present:

Executive Director, Legal Counsel, Acting Clerk Lewis

ROLL CALL
PLEDGE OF ALLEGIANCE
REPORTS FROM BOARD DIRECTORS AND STAFF
PUBLIC COMMENTS

George Riley with Public Water Now announced that his organization is holding a
presentation on January 19, 2015. The subject matter to be presented relates to slant
wells.
Tom Rowley with MPTA welcomed Director Roberson, Mayor of the City of Monterey
and urged the Board to occupy the vacant seat on the Board from Monterey County. Mr.
Rowley stressed the importance of filling the vacancy.
Doug Wilhelm spoke to the Huntington Beach Poseidon Plant construction and the
reasons for its eventual cessation.

President Burnett closed public comment.

CONSENT AGENDA
On motion by Director Pendergrass and seconded by Director Edelen and approved by
unanimous vote, the Monterey Peninsula Regional Water Authority approved the consent
calendar as presented (M/S/P 6-0)
1.

Approval of Minutes from the December 11, 2014 Regular Meeting

2.

Approve and File Checks Through January 8, 2015

AGENDA ITEMS

3.

Receive Annual Financial Report and a Full Opinion Audit for FY 2013-14 and 2012 from
McGilloway, Ray, Brown and Kaufman (Kaufman) CPA
Patricia Kaufman presented the Annual Financial Report and Full Opinion Audit for FY 2013-14
and 2012 from McGilloway, Ray, Brown and Kaufman. No material weaknesses in controls.

MPRWA Minutes

Thursday, January 8, 2015

The Board received an unmodified opinion. The Board was found to be in a favorable opinion
overall.
President Burnett opened the floor for Directors and the public.
Director Roberson asked about Mid-Year Budget Review in February and thanked the Board for
their service as it relates to the budget.
On motion by Director Rubio and seconded by Director Edelen and approved by unanimous
vote, the Monterey Peninsula Regional Water Authority approved the consent calendar as
presented (M/S/P 6-0)
4.

Receive Report, Discuss, And Provide Staff Direction On The Updated MPWSP Critical Path
(CPM) Permits & Approvals Schedule (Summary Version) To Include The Status of the Test
Slant Well, GWR, Pacific Grove Small Projects, And Aquifer Storage (ASR); And Discuss
Future Permits And Approvals Required Of Marina
Ian Crooks, Engineering Manager with California-American Water, spoke about the test slant
wells. Mr. Crooks cited healthy participation by the contractors and mobilization of the second
drilling crew to continue monitoring wells. The pipeline from the beach to manhole is completed.
Received the discharge permit for the outfall. Electrical work has started and test well drilling
will start at the end of the year and is progressing. Mr. Crooks provided the construction
schedule for all of the pending projects that Cal-Am is currently working on.
President Burnett asked Mr. Crooks to provide updates to the public within the next six to eight
weeks. Mr. Crooks currently provides updates to regulatory agencies and will work to place the
information on their website.
Director Rubio asked if the schedule is on the project website. President Burnett asked Cal-Am
to provide materials in advance to put in the packet before meetings and to provide materials on
the website with regularity. President Burnett asked Mr. Crooks to speak about the lawsuit to
which we responded the paperwork is currently with the clerks to determine a court date.
President Burnett asked when the Board would receive data for financial feasibility. Mr. Crooks
stated that the data would be available as soon as the test well is activated. The estimate is
mid-March, after which they will update the data on a weekly basis. President Burnett invited
public to speak.

Tom Rowley, MPTA, was not privy to updates on the slant well in the Monterey Herald.
Tom Rowley maintained that there was a lack of information about the important events.
Having a successful test of the slant well to see if source water is available for the
desalination project is paramount.
George Riley shared concerns with MPWSPs Anticipated Schedule, specifically the
period of time of collecting data between key deadlines. He spoke to the settlement
agreement.
Doug Wilhelm continued his earlier comments and spoke to the subsurface panel. The
Huntington Beach Poseidon Plant dropped their project for the following reasons: No
slant well experience. Production capacity started at 95 percent and dropped to 52
percent. We need to know if there is going to be inherent fall off with slant wells. Its
Monterey Peninsula Regional Water Authority
Regular Meeting Minutes - Thursday, January 8, 2015
2

MPRWA Minutes

Thursday, January 8, 2015

expected that there will be high maintenance. CCC was an equal partner.
Director Roberson asked about slant well test from Marina Coast Water District and Director
Roberson also questioned feasibility or alternatives to the test well to see if the project is even
feasible.
President Burnett stated that the Board has been waiting a couple of years to get to this point.
The test well will make every attempt to answer a lot of questions about feasibility. Construction
questions will inevitably arise. Production of gallons per minutes will affect the question of
feasibility. Salinity of the product water from the test well will determine whether the
hydrogeology is OK.
President Burnett asked about the fall off of production over time. Ian Crooks asked to
agendize the Dana Point comparison for the next meeting. Executive Director Cullen informed
the Board that a $1,000,000.00 grant was awarded to Cal Am to be applied toward the cost of
the test wells. President Burnett deemed report received.
5.

Update And Provide Direction On Efforts To Request A Modification To The Cease and Desist
Order
President Burnett stated there are issues with the Cease and Desist Order which will stop
unpermitted pumping by 2016. The Board will seek to modify the Cease and Desist Order
(CDO) in order to meet Cal-Ams production schedule. State Water Board is cognizant that the
Water Authority is working very diligently to create a new water source. Hopes to have a
modification to the CDO, either in late spring after a draft Environmental Impact Report (EIR) or
in the fall with a CPCN from CPUC. Both dates would fall within 2015. Water Years start in
October and run through September of the following year. For the following water year, the
drop-off would be less significant with the 1,000 Acre Feet. Modifying the CDO would resolve
impending issues and puts the relative amount of pressure to remain focused on delivering
these projects on time.
Director Roberson asked the Board about the water schedule and about the 1,000 Acre Feet.
President Burnett maintained that the 1,000 Acre Feet came from previous conservation efforts.
Director Pendergrass spoke to importance of the project and offered his opinion in regards to
the State Water Boards sentiment.
President Burnett invited the public to comment on the item.

Tom Rowley, MPTA, spoke to his previous involvement in the original scoping of a desal
project. Mr Rowley was invited to participate in the discussion on developing a
consensus of a peninsula project. Proposal came up with the three parties and regional
desal plant. Requests for extension, CDO is against Cal-Am, spoke to no representation
of the County on the current board. Ratepayers and taxpayers not getting the fines
passed on. The underlying concern at the December meeting was apprehension about
ratepayers footing the bill.
George Riley with Public Water Now spoke to two venture capitalists spending money to
resolve issues. There needs to be a contingency factor that if feasible is a legitimate
Monterey Peninsula Regional Water Authority
Regular Meeting Minutes - Thursday, January 8, 2015
3

MPRWA Minutes

Thursday, January 8, 2015

question. The second choice ought to be a legitimate argument that the Board has a
backup plan. What is the alternative if the slant wells fail?
John Narigi with The Coalition of Peninsula Businesses stressed that in the commercial
sector that if rationing occurs, there isnt much water left to surrender. All retrofits and
pertinent options have been exhausted.

President Burnett and Director Edelen responded to public comment. Vice President Kampe
spoke to a received article on Los Angeles and their conservation efforts. Director Roberson
spoke to possible litigation or take political action against the State Water Board. Director
Pendergrass would like to speak with the Governors office and provide them with the
Peninsulas conservation efforts. President Burnett spoke to the possibility to invite the State
Water Board to the Peninsula to show them conservation efforts as they relate to the CDO.
Legal Counsel Don Freeman stated that the State Board is receptive to a controlled and
educated approach. President Burnett closed public comment and deemed report received and
discussed.
6.

Receive Report, Discuss, And Provide Staff Direction On Updated CPUC Schedule
Executive Director Cullem spoke to the purpose of the updated schedule and task list for
MPWSP Post Settlement, provided updates and invited questions from the Board. President
Burnett invited comments from the public.

Tom Rowley, MPTA, saw General Manager Dave Stoldts presentation on the
agreements that were needed and stated that it wasnt discussed in great detail. GWR
being run by PCA, transfer the water to Water Management District who would then sell
it to Cal-AM. Asked why GWR couldnt directly transfer the water to Cal-Am?
George Riley commented on potable water.

Vice President Kampe questioned Cal-Am about the CEMEX test well and production well.
President Burnett deemed the report received.
7.

Establish Water Authority Meeting Schedule For Calendar Year 2015

Director Edelen asked about modifying the start time of the contingent meetings and asked
Executive Director Cullem about the possibility of moving the regular meeting time to 6:00 PM.

President Burnett opened the item up to the public and Tom Rowley thanked the Board
for their support.

Director Rubio stated that if there werent enough action items to warrant a meeting that a
meeting shouldnt be held.
No action was taken.
ADJOURNMENT

Monterey Peninsula Regional Water Authority

Regular Meeting Minutes - Thursday, January 8, 2015
4

MPRWA Minutes

Thursday, January 8, 2015

ATTEST:

Michael Lewis, Acting Clerk, City of Seaside

Jason Burnett, MPRWA President

Monterey Peninsula Regional Water Authority

Regular Meeting Minutes - Thursday, January 8, 2015
5

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: December 11, 2014

Item No: 2

Authority Clerk Milton

SUBJECT: Approval and File Authority Checks Through February 12, 2015
RECOMMENDATION:
It is recommended that the Authority approve and file the accounts payable payments
made during the period January 8 to February 12, 2015 with total payments for the
above referenced period of $8,189.47 from the general fund account and authorize the
Directors to sign for such 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 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.

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

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

$ 4,584.47 to Brownstein Hyatt Farber and Schreck for Special Legal Counsel
Services.

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

Budget to Actual Report through February 5, 2015

2:18 PM
02/06/15
Accrual Basis

Monterey Peninsula Regional Water Authority

Profit & Loss Budget vs. Actual

July 1, 2014 through February 6, 2015

Budget

Actual Jul 1,
'14 - Feb 6, 15

Balance

% of Budget

Ordinary Income/Expense
Income
47200 Program Income
47230 Membership Dues

458,680.00

334,196.00

124,484.00

72.86%

47240 Program Service Fees

0.00

0.00

0.00

0.0%

47250 Reimbursement SPI Contract

0.00

18,562.14

-18,562.14

100.0%

47260 Reimburesment VE Contract

0.00

0.00

0.00

0.0%

47200 Program Income - Other

0.00

0.00

0.00

0.0%

458,680.00

352,758.14

105,921.86

76.91%

60901 Clerk of the Board

24,000.00

24,000.00

0.00

100.0%

60902 Executive Director

Total Income
Expense
60900 Administration and Clerical

94,680.00

17,603.81

77,076.19

18.59%

60903 Principal Offc of the Authority

5,000.00

0.00

5,000.00

0.0%

60904 Financial Services

6,000.00

6,000.00

0.00

100.0%

500.00

0.00

500.00

0.0%

0.00

0.00

0.00

0.0%

130,180.00

47,603.81

82,576.19

36.57%

60905 Misc Admin Expenses

60900 Administration and Clerical - Other
Total 60900 Administration and Clerical
62100 Legal Fees
62110 Board Counsel
62140 Special Counsel
62100 Legal Fees - Other
Total 62100 Legal Fees

63,000.00

20,000.00

43,000.00

31.75%

152,000.00

21,900.38

130,099.62

14.41%

0.00

0.00

0.00

0.0%

215,000.00

41,900.38

173,099.62

19.49%

35,000.00

2,408.33

32,591.67

6.88%

200,000.00

104,988.64

95,011.36

52.49%

62800 Contract Services

60801 Public Outreach
60806 Contract VE
62802 Audit Services

6,000.00

4,425.00

1,575.00

73.75%

62803 Televised Meeting

10,000.00

2,537.50

7,462.50

25.38%

62804 Contract Services & Studies

30,000.00

0.00

30,000.00

0.0%

62805 Contract SPI

0.00

0.00

0.00

0.0%

62800 Contract Services - Other

0.00

0.00

0.00

0.0%

281,000.00

114,359.47

166,640.53

40.7%

65000 Insurance

7,500.00

6,673.44

826.56

88.98%

65100 Travel Expenses

5,000.00

325.00

4,675.00

6.5%

0.00

0.00

0.00

0.0%

20,000.00

0.00

20,000.00

0.0%

658,680.00

210,862.10

-447,817.90

32.01%

Total 62800 Contract Services

66000 Payroll Expenses

68300 Contingency
Total Expense
Net Ordinary Income

#REF!

#REF!

#REF!

#REF!

Other Income/Expense
47220 Interest Earned

0.00

1.65

-1.65

100.0%

Page 1 of 1

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: February 12, 2015

Item No: 3.

Clerk Milton

SUBJECT: Adopt Resolution Authorizing The Authority President To

Extend The Contract With The City Of Monterey For Executive
Director Services, To Request The City Of Monterey To Extend
Its Contract With James M. Cullem For That Position
RECOMMENDATION:
It is recommended that the Monterey Peninsula Regional Water Authority
(MPRWA) extend the contract with the City of Monterey for employment
services for the Authority Executive Director position, to approve Resolution
1015-XX accordingly, and to request the City to extend its employment
contract with James (Jim) M. Cullem to serve as the Executive Director for
the MPRWA.

DISCUSSION:
At its meeting of January 24, 2013, the Water Authority Board approved
Resolution 2013-04 and entered into an annual, renewable, contract with
the City of Monterey for Executive Director services. In May 2013, with the
approval of the Water Authority Board, the City hired Jim Cullem through
an annual, renewable contract to replace Bill Reichmuth as Executive
Director following Bill's resignation. At its meeting of March 13, 2014, that
contract with the City was extended to February 14, 2015. The City also
extended Jim Cullem's contract for a year.
At its meeting of February 12, 2015, the Water Authority Board will conduct
a performance review of the Executive Director and should therefore be in
a position to determine if Jim Cullem should, or should not, continue to
serve in that position.

06/12

Should the Water Authority decide to extend the contract with the City for
Executive Director services and (or not) request the City to extend its
contract with Jim Cullem, staff requests the extension be effective for 18
months to allow consideration after the end of the fiscal year.
The Authority is also requested to authorize the President to sign the
necessary documents prior to the February 14, 2015 contract expiration
date.

BUDGET CONSIDERATIONS:
The Executive Director position for FY 2014-2015 was budgeted by the
Water Authority at its meeting of April 10, 2014. Funding of the position for
FY 2015-2016 will be addressed at the Authority budget meeting in April
2015.

ATTACHMENTS:
A-Resolution 2015-XX
B-Contract with Monterey for Executive Director Services

RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE MONTEREY PENINSULA
REGIONAL WATER AUTHORITY
APPROVE CONTRACT FOR EXECUTIVE DIRECTOR/LICENSED PROFESSIONAL
ENGINEER SERVICES
WITH THE CITY OF MONTEREY
WHEREAS, the City of Monterey is a member city of the Monterey Peninsula Regional
Water Authority; and
WHEREAS, the City of Monterey has agreed to provide the services of Executive
Director/Licensed Professional Engineer to the MPRWA; and
WHEREAS, the President and MPRWA Directors have reviewed the contract and agrees to
its terms and conditions; and
WHEREAS, the cost of retaining the Executive Director/Licensed Professional Engineer
services is not to exceed $94,680 for fiscal year 2014-15 and not to exceed $92,680 for Fiscal year
2015-2016.
NOW, THEREFORE, BE IT RESOLVED that the President is hereby authorized to extend
on behalf of the MPRWA a contract with the City of Monterey for Executive Director
Services/Licensed Professional Engineer for the MPRWA for a period not-to-exceed 18 months.
PASSED AND ADOPTED BY THE MONTEREY PENINSULA REGIONAL WATER
AUTHORITY this ___ day of ____ 201_, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:

DIRECTORS:
DIRECTORS:
DIRECTORS:
DIRECTORS:
APPROVED:

ATTEST:
Jason Burnett, President

Lesley E. Milton Rerig Clerk to the

Authority

AGREEMENT FOR PROFESSIONAL SERVICES

James M. Cullem
WATER AUTHORITf DIRECTOR

If-

THISAGREEMENT, made andentered into this_^^__day of ^2^7 , 2014, by and

between the CFTY OF MONTEREY, a municipal corporation of the"State of California, "City', and
James M. Cultem, Water Authority Director, herein referred to as "Employee."
WITNESSETH:
WHEREAS, City requires certain administrative and professional services in the position of
Water Auttiority Director; and
WHEREAS, Employee is qualified to furnish such services in accordance wrth the terms and
conditions hereinafter set forth;
NOW THEREFORE, in consideration of the mutual terms, covenants, and conditions

contained herein, the parties hereto agree as follows;

1.

Contract Appointment

Employee is hereby retained in the position ot Water Authority Director, and as such shall perform
the duties and services ot that position as more particularly described in the City's job description for
this position attached as (Exhibit A). It is agreed that in fulfilling the duties and services of this job,
Employee shall be employed on a half-time basis, working not more than 960 hours in any fiscal year.
Employee agrees to refrain from outside emp.lpyment that may conflict with these duties.
2.

Status

Employee shall serve at the pleasure of the City Manager, subject to the terms and conditions hereof,
and shall not acquire a property interest in employment or a right to continuing employment with the
City of Monterey- The terms, covenants, and conditions of Employee's employment with the City are
expressly limited by and to the terms, covenants and conditions o( this Agreement. Employee shall
be considered a Part-time Employee.
3.

Compensation

(a)

Rate - Employee shall receive an hourly rate of $100 per hour for the

performance of the above described services. Employee shall not be entitled to overtime. Employee
shall not receive any cost-of-living raises or salary adjustments during the term of this agreement.

Agreement #-. Ag-4096 - Page 1 of 6

(b)

Benefits - During the term of this agreement. Employee shall be entitled to the

following benefits:
1) Retirement System: In compliance with federal regulations,
Employee will be enrolled in the ICMA 457 Deferred Compensation program for City part-time
temporary Employees. The City will make a 3. 75% contribution (based on salary), and Employee will
have a matching 3. 75% salary deduction into the retirement plan.
2) Medicare: In compliance with Federal regulations, Employee will be
enrolled in Medicare. The City will make a 1. 45% contribution (based on salary) and Employee will
have a matching 1. 45% salary deduction into Medicare.
(c)

Employee shall not receive any employee benefit not expressly set

forth in this paragraph, "3. Compensation".

4.

Transportation

Employee shall furnish their own transportation in the performance of the duties of this position.
Consistent with City poltey, as outlined in the City of Monterey "Reimbursement Policy", Employee
may receive mileage reimbursement, or utilize a City vehicle, for travel when mileage for any specific
trip is expected to exceed Twenty-Five (25) miles one-way.
5.

Term

The term of this agreement shallcommence on May 16, 2014, and shall continue for a period of nine
(9) months, until February 14, 2015, to coincide with the Moriterev Peninsula Regional Water
Authority's contract term with the City of Monterey, upon the mutual agreement of the parties upon the
terms stated herein, as may be amended from time to time,
6.

Termination

Either party may terminate this Agreement without cause upon giving the other party not less than
thirty (30) days prior written notice. Should the Monterey Peninsu.la Regional Water Authprrty Board
terminate the agreement wrth the City for provision of Executive Director services, this Agreement
shall terminate as of the dale of the Board's vote. Notwithstanding anything to the contrary, Employee
shall, upon Notice of Termination, deliver to City a written status report of all projects or matters in
which Empioyee is involved. In the event of such termination, all rights and obligations of the parties
hereto shall thereupon cease. The provisions of this paragraph shall riot be deemed a limitation upon
the respective rights or remedies of the parties hereto which may accrue to them.
7.

Standard of Performance

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

accordance with all applicable ordinances, policies, and rutes and regulations of the City.

Agreement. Ag-4096 - Page 2 of 6

8.

Non-assianability

Employee shall not sub-cqntract, assign, sell, mortgage, hypothecate, or otherwise transfer
Employee's interests, rights, duties or obligations hereunder in any manner, without the express prior
written consent of the City.

9.

Non-Discrimination

The City does not discriminate in the hiring and employment of persons for the work under this
Agreement or related to any City project Because of the race, religious creed, color, national origin,
ancestry, physical disability, mental disability, medical condition, genetic information, marital status,
sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status
of any person.

IN WITNESSWHEREOF, The parties hereto have executed this agreement the day and year
first hereinabove written.

City of Monterey, a
Municipal Corporation of the
State of California

B/M-ALL
fchael MfcCarthy,

BY:
les M. Cullem, Water Authority Director

S.'\70W.

l*>-Cff>^UP. P*tS*.AffT mdEWtOYEE

BSplN*-t<BTO<4<Bal-D(W7<>W&.

Agreement ft Ag-4096 - Page 3 of 6

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EXHIBIT A
WATER AUTHORITY
DIRECTOR

The IVtonterev Peninsula Regional Water Authority

The Monterey Peninsula Regional Water Authority (MPRWA) was created in

early 2012. MPRWAis a Joint PowerA.uthprity (JPA)that consistsof sixaties

the Cities of Carmel-by-the-Sea. Del Rey Oaks, Monterey, Pacific Grove, Sand

City and SeaskJe; The purpose is to study, plan develop, finance acqu"'^
construct., maintain, repair, manage, operate. control and govern Water Projects

either alone or in cooperation with other public or private non-member entities

The'Watef Authority Director will be a part-time Cily of Monterey employee, to be
selected by and reporting to the City of Monterey City Manager.
Examples of Duties

Thejobdutieslistedbeloware iliustralivebutnotexclusiveofthedutiesand
responsibilities of the position. .

Policy Related Functions:

1. Work with the Chairperson of MPRWA to prepare the agenda for the

forthcoming meeting, and maintain a list of candidate itemsforsubsequent

meetings.

2. Prepare recoinmendations on policy matters and action items, as

requested by or agreed upon by the Board.

3. Respond to Board member refluests for information, requests to add items

to the agendaor to considercertain issues.

4. Prepare press releasesto inform press/media, to keep public informed of

MPRWA's actions and positions.

5. Address requests for 'information or statements by public arid media

representatives as appropriate, or refer such inquiries to the Ghair or (in
his or her absence) to the Vice Chair of the MPRWA.

6 Coordinate and work effectively with the Chair of the Technical Advisory

Committee, particularty with regardto Board detegatrons andplacingTAG

matters before the Board for consideration/action.

7. Work with Board members to develop improved means of reporting the

actions/positions ofthe Board backto the member agencies.

Poljcy/Administrative Functions:

1. Serve as liaison to theCity Managere of the member Cities, eliciting their

help and advice on MPRWA issues.

Agreement ffc Ag-4096 - Page 4 of 6

2. Maintain a listing of forthcoming California Public Utilities Commission

(PUC) workshops and hearings, and assist the Board in developing
positions and instructing their representatives.

3. Coordinate with person or firm providing legal services to see that Board
refluests are met in a timely way and that there's a unified approach to
presentations to the Board.
Administrative Functions;

1. Work with the person/agency providing Clerk servces on issues relating to

agenda preparation, recordation of minutes, review of minutes,
maintenance of MPRWA records, complying with Public Records Act
requests, use of technology to expedite MPRWA business, and related
matters.

Provide fiscal agency/banking services for MPRWA or, if a nnember

agency is the designated fiscal agent, coordinate with that agency on
financial matters, and coordinate with the Board member designated as
the MPRWA Treasurer to maintain accounts of MPRWA

3. Prepare budget necessary to support agency's abijity to perform functions

as determined by the Board of Directors.
4. Maintain a list of and administer contracts that have been approved by
MPRWA.
5. Maintain working files as necessary to administer the core functions.
6. Arrange for places for regular and special meetings of MPRWA. unless
detegated to another party.
7 Develop programs as necessary to implement policy direction of Board.
8. Develop a "policy binder" so that all adopted Board policies are property
maintained and easily retrieved.
9. Protect, maintain and keep inventory of MPRWA property and equipment.
10. Schedule meetings of such Committees (Regular and Ad Hoc) as the
MPRWA have created, and coordinate with Chair to see that the work of

MPRWA proceeds.
11. Performs other duties as required to best ensure the smooth operation of
MPRWA.

Agreement #: Ag-4096 - Page 5 of 6

EXHIBIT B
MONTEREY PENINSULA REGIONAL WATER AUTHORTTY

Directors;

April 14, 2014

Chuck Ocib Szb. Tncydcni

,

Mike Mccarthy
Interim Cily Manager
City at Momerey

1awn Biimcit. Vice PICMCICDI

K.ilpl-t Ruhxi.S<tfiL-!3iy
IC.TTV Eddcn. Ttcasuicr

Biii Ksmpc- DnrcttiT

D;iri(t Pcndrr^tss OirL-cinr

580 Pacific Street

Monterey, CA 83940

Executive DircctOT
jimOillum. P.R

Subject: Extension oi Cpntract for Executire Director Services with Ihe Monlerey Peninsula Regional
Water Authority

Dear Mr, McCarthy

The Monlerey Peninsula Regional Water Authority would like to extend its contract wilh the City ol
Monterey entered into on February 15, 2013 for an additional one (1) year. Saidextension would
commence on February 15, 2014 and would terminate February 14, 2015.

Al the Authority meeting of March 13, 2014, the Directors approved extending the contract with the Gity of
Monterey

U?r ExecLttive Director SBrvices.

If the City of Monlerey wishes lo aulfcrize extension of the contract as authorized in section 3. 02, please
sign and return this letter to the below address.

Foryoui reference I have enclosed the staff ;eport whichincludes the previous agreement and
documenlalion.

Respectfully,

Jim Ctlllem, P. E.

Exe&twe Direaoi, MPRWA

leltteCarthy
Monterey City Manag

Agreement #r Ag-77^^^^

g^lt yc^

Agreement ft Ag-M96 - Page 6 of 6

&-

|^)n^TER^:Y

cADi-'ws'tA

li3t>*<i .

-w.*nrww-.i (ice.

CAO) (FBSK!

EXHIBIT A
SCOPE OF SERVICES/PAYMENT PROVISIONS
EXECUTIVE DIRECTOR SERVICES
I.

City of Monterey to Provide the Following:

A. Executive Director Duties and Services- Policy Functions

Work to prepare agendas and packets for Board & TAC meetings
Prepare recommendations on policy matters and action items
Respond to Authority requests for information or agenda items
Keep press/media informed of MPRWA actions
Address requests for information or statements by public or media as appropriate
Coordinate with Chair of the Technical Advisory Committee regarding board delegations
and placing TAC matters before the Authority for consideration/action

B. Administrative Functions

C.

Serve as liaison to the City Mangers of the member cities

Maintain listing of forthcoming CPUC workshops and hearings, assist Authority in
developing positions and instructing their representatives
Coordinate with legal services so board requests are met in a timely way
Work with agency proving clerk services for agenda management, recordation of
minutes, maintenance of records, complying with Public records act requests, and
related matters
Coordinate with the designated fiscal agent, on financial matters, and coordinate with
the Authority Treasurer to maintain accounts of MPRWA
Prepare budget necessary to support agency's ability to perform functions
Maintain list of contracts approved by the MPRWA
Develop policy binder of all board adopted policies
Develop programs as necessary to implement policy direction of Board
Maintain working files as necessary to administer the core functions
Arrange for places for regular and special meetings of MPRWA, unless delegated to
another party
Protect, maintain and keep inventory of MPRWA property and equipment
Schedule meetings of such Committees (Regular and Ad HOC) as the MPRWA have
created, and coordinate with Chair to see that the work of MPRWA proceeds
Performs other duties as required to best ensure the smooth operation of MPRWA

Miscellaneous Services Performed by City of Monterey:

Payroll Services for Monterey employee(s) providing these services (this employee will
be allocated within the Office of the City Manager to be paid as part of the City's
regular payroll to the employee performing the services described in Exhibit A herein)
7

II.

Tracking of employee hours and resultant costs of services provided

Invoices requesting payment for services are to be submitted on a monthly basis by the
City of Monterey to the designated fiscal agency

MPRWA to Provide the Following:

Reimbursement to the City of Monterey shall be made within thirty (30) days after
receipt of invoice

III.

Executive Director Rate and Budget

Executive Director Services Hourly Rate and Expenses
$105.20
600
490
$114,668
$17,200

Benefited Wage Per Hour

Hours Budgeted Through July 30, 2013
Hours Budgeted July 1 through December 31, 2013
Total Wages
Administrative, Travel and Meeting Expenses (15%)

$131,868

*Note - MPRWA budget is based on a fiscal year. A new budget for Executive Director expenses
will be created for fiscal year 2014. This contract is contingent upon the MPRWA approving the
budget for the Executive Director position for Fiscal year 13-14.

Monterey Peninsula Regional Water Authority

Agenda Report

Date: February 12, 2015

Item No: 4.

FROM:

Executive Director Cullem

SUBJECT:

Discuss Accomplishments of the Water Authority Since its Formation to the Present.

RECOMMENDATION:
Staff recommends that the Water Authority Board review and discuss the mission and purpose of
MPRWA JPA, review its accomplishments since its formation, and provide direction to staff.
DISCUSSION:
MISSION:
Paragraph 2.2 of the Joint Exercise of Powers Agreement dated February 12, 2012 and unchanged in the
First Amended and Restated Joint Exercise of Powers Agreement dated February 14, 2013 reads in part
as follows: "The purpose of this Agreement is to establish a public entity separate from its Members to
jointly exercise some or all of the foregoing common powers, as deemed necessary by the Authority, to:
(1) ensure the timely development, financing, construction, operation, repair, and maintenance of one
or more Water Projects; and (2) ensure that the governance of such Water Projects includes
representation that is directly accountable to the Cities' water users."
ACCOMPLISHMENTS:
In general, the Water Authority has been successful in keeping the Peninsula Communities focused on
the goal of obtaining a new water source as close as possible to the CDO deadline of January 1, 2017. As
a part of that effort, the Authority has represented the community in critical meetings of the CPUC,
Coastal Commission, and State Water Resources Control Board (SWRCB).
At its meeting of December 11, 2014, the Water Authority briefly reviewed its accomplishments in light
of the adopted a Work Plan for FY 2013/2014 as follows:
-

Completion of post-settlement activities and follow-up with settling parties

Status: On-going with Jason Burnett, Russ Mcglothlin, and Authority staff continuing to engage
with the CPUC and the settling parties in conformance with the revised CPUC/CPCN schedule dated
January 23, 2015, with an expectation of participating in hearings before the CPUC's ALJ in July
2015.

Assist passage of legislation to implement securitization and work collaboratively with MPWMD
and Cal Am to obtain Water Rate Relief Bonding and other public funding to minimize costs to the
ratepayers

Monterey Peninsula Regional Water Authority

Agenda Report

Date: February 12, 2015

Item No: 4.

Status: With the active support of the Water Authority as well as others, SB 936 has been signed
into law. The Water Bond Proposal has been passed by the voters and the Water Authority
continues to provide whatever political support is required to insure that GWR and the Desal facility
receive a share of available public funds.
-

Work collaboratively with MPWMD and MRWPCA to move the GWR project forward
Status: GWR and the related PCA project Pure Water Monterey have made substantial progress
now that an MOU on source water has signed and bi-lateral agreements are being negotiated with
the goal of reaching a "Definitive Agreement" by March 2015. The TAC has been tasked to track the
GWR schedule and to track the cost of water for recommendation to the Authority Board as
appropriate.

Work with the MPWMD to develop a plan for engaging with the State Water Resources Control
Board regarding potential appropriate modifications to the Cease and Desist Order
Status: The settling parties, with the participation of the Jason Burnett, Russ McGlothlin, and
Authority staff have met several times with SWRCB staff in an effort to find an acceptable
compromise on measures that could meet Board requirements for a four-year CDO extension. This
effort is at a particularly sensitive and difficult stage at this time. A formal request to the SWRCB
will probably be made in 2015.

Where appropriate, support Cal-Am in efforts to secure permits related to the proposed source
wells (initially a test well)
Status: Jason Burnett, Russ McGlothlin, and Authority staff participated actively in seeking to
obtain support from the City of Marina for the test slant well, especially in light of the extreme time
sensitivity of initiating the well construction by December 15, 2014. Unfortunately, the City's denial
of a CDP for the test well had to be appealed to the Coastal Commission where the CDP was
approved on November 12, 2014. MCWD has filed a legal action, so far unsuccessful, to obtain a
restraining order to stop the test well construction.

Actively pursue public outreach and education efforts through our WA consultant in cooperation
with MPWMD and its Public Outreach Committee
Status: Environmental Relations PR has revamped the Authority power point and handout
materials, and has coordinated its public relations message with that of the PCA, Cal Am, and
WMD. In 2015, it will focus on revamping the Authority WEB page including improved links to the
activities of related projects and agencies.

Pursue opportunities to increase the use of storm water in future water supply projects

Monterey Peninsula Regional Water Authority

Agenda Report

Date: February 12, 2015

Item No: 4.

Status: Although the Executive Director has initiated discussions with the Seaside Basin Water
Master and with the Monterey Peninsula Storm Water Working Group on potential recycling of
storm water, this issue is getting included into GWR as a "new water" source likely processed
through the PCA.

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: February 12, 2015

Item No: 5.

Executive Director Cullem

SUBJECT: Receive the 23 January 2015 Update to the CPUC Schedule,

Discuss the Delay in the Release of the DEIR and Other
Changes, and Decide on a Course of Action if Needed
RECOMMENDATION:
Staff recommends that the Water Authority review and discuss the current
CPUC schedule for the Monterey Peninsula Water Supply Project
(MPWSP) as annotated by staff and decide if any action by the Water
Authority Board or staff is needed.
DISCUSSION:
At its meeting of January 8, 2015, the Water Authority received a January
5, 2015 staff revision of the October 7, 2013 CPUC schedule for the
MPWSP including the activities needed for the GWR project.
On January 23, 2015 CPUC Administrative Law Judge (ALJ) Weatherford
announced a decision making additional changes to the CPUC schedule
(attached).
Also attached is a January 23, 2015 update of the CPUC schedule, with
changes from the original October 7, 2013 schedule highlighted in red. The
highlighted schedule should facilitate discussion, identify deadline dates,
and suggest actions the Board may deem to be appropriate.
ATTACHMENTS:
A- CPUC ALJ Gary Weatherford Ruling dated 1/23/2015
B- Updated CPUC schedule for the MPWSP dated January 23, 2015.

06/12

GW2/sbf/avs 1/23/2015

FILED
1-23-15
01:36 PM

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of California-American Water

Company (U210W) for Approval of the
Monterey Peninsula Water Supply Project
and Authorization to Recover All Present
and Future Costs in Rates.

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

ADMINISTRATIVE LAW JUDGES RULING UPDATING SCHEDULE

In order to allow the Draft Environmental Impact Report (DEIR) for the
Monterey Peninsula Water Supply Project (MPWSP) to incorporate more
complete data, the procedural schedule for Phase 1 of this proceeding is
modified. The primary changes are that the DEIR may be issued later than
previously scheduled, and that there will be a comment period on the DEIR of
60 days, rather the previous 45 days.
In addition, given the large number of parties in this proceeding, a ban on
ex parte communications with decisionmakers is effective immediately. Two
all-party meetings will be added to the revised schedule to allow for parties to
present their views to the Commissioners in a fair and controlled manner.
In a previous ruling issued by Administrative Law Judge Minkin on
August 21, 2014, parties Opening Briefs on legal and policy issues were due
60 days after issuance of the DEIR. To accommodate the revised comment
period on the DEIR, Opening Briefs are now due 75 days after issuance of the
DEIR, with Reply Briefs due 15 days after Opening Briefs.

143858682

-1-

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

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

provide stratigraphic data that will be useful in performing hydrologic analysis
for the DEIR. In addition, Cal-Am is drilling a test well at the Cemex site. In the
process of drilling the test well, additional stratigraphic data will be obtained
that could be useful in the DEIRs hydrologic analysis.1 Incorporation and
analysis of this data, such as its use in modeling runs, is taking more time than
allowed for in the current schedule.
Our DEIR preparation process also needs to remain coordinated with the
DEIR being prepared by the Monterey Regional Water Pollution Control Agency
(MRWPCA) for their Groundwater Replenishment Project, and recent revisions
to the Groundwater Replenishment Project (such as the identification of new
source water) must also be analyzed and incorporated into the California Public
Utilities Commissions DEIR. In order to include this data and the related
analysis in the DEIR, more time is needed than is provided by the current
schedule. Because of the scope of the EIR, and its relationship to the
Groundwater Replenishment Project, we will be allowing for a 60-day, rather
than a 45-day, comment period on the DEIR.
Finally, it is important that the DEIR (and Final Environmental Impact
Report (FEIR)) provide adequate information and analysis of the possible effects
of the MPWSP on groundwater. The State Water Resources Control Board
(SWRCB) has indicated that this is a topic that is important for the Commission
to address, and has given us some guidance on how to do so. Commission staff

Because of the duration required for a pump test from the test well, it is unlikely that
significant pump test data from the test well will be available for the DEIR. In addition, the test
well is subject to litigation that could delay its drilling and operation.

-2-

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

has consulted with SWRCB on this issue, and it appears that the potential value
of the additional data and analysis that hopefully will become available
outweighs the cost of the minor delay that is contemplated.
Accordingly, the schedule is modified to be as follows:
April 2015 DEIR issued for comment.
60 days from DEIR Comments on DEIR.
75 days from DEIR Opening Briefs filed and served.2
15 days from Opening Briefs Reply Briefs filed and served.3
July 2015 All-party meeting.
October 2015 FEIR published.
December 2015 Proposed Decision issued.
January 2016 All-party meeting.
February 2016 Proposed Decision on Commission Agenda.
The schedule for Phase 2 of this proceeding may also need to be modified,
but we will not modify it at this time. As the proceeding progresses, we will
evaluate the need to modify the Phase 2 schedule.

IT IS RULED that:
1. The schedule for this proceeding is modified as described above.

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

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

-3-

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

2. Ex parte communications with decisionmakers in this proceeding are

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

/s/ GARY WEATHERFORD

Gary Weatherford
Administrative Law Judge

-4-

23 January 2015
UPDATED Schedule and Task List for MPWSP Post Settlement (REV 23 JAN 2015)
RED are changes from 7 Oct 13 Schedule.
CPUC Calendar Dates
Task
Comments on
Settlement Agreements
Due
Reply Comments on
Settlement Agreements
Due
Prehearing
Conference: Status of
Settlement Motion (if
any), of CEQA work
& other matters
Quarterly Check-in Call
with Settling Parties
Informational Hearing
on Settlement
Agreements
Quarterly Check-in Call
with Settling Parties
DEIR circulated for
Comment
Quarterly Check-in Call
with Settling Parties
Cal-Am to file and serve
a common outline for
legal and policy briefs,
after consulting with
parties
Comments on DEIR
Due
Common Outline
Opening Briefs filed and
served on legal and
policy issues
Reply Briefs filed and
served on legal and
policy issues
All party meeting
FEIR published
Proposed
Decision addressing
certification of FEIR and
issuance of CPCN
Quarterly Check-in Call
with Settling Parties
Target for Commission
Action on Phase I
015621\0002\11340073.1
1/30/15

Due Date
August 30, 2013

Responsible Party

Notes
Complete

September 13, 2013

Complete

September 16, 2013

Complete

October 2014

MPRWA

December 2-3, 2013

Complete

January 2015

MPRWA

Feb 28, 2014

April 2015
April 2015

all
MPRWA

April 29, 2014 15 days

after issuance of DEIR

all

April 14, 2014

60 days from DEIR
April 29, 2014
75 days from DEIR

all

May 14, 2014

15 days from Opening
Briefs
July 2015
June 17, 2014
October 2015
July 2014 Phase 1
December 2015

all

CPUC
CPUC

July 2015

MPRWA

August 2014

Complete

all

CPUC

Complete

23 January 2015
Task
Quarterly Check-in Call
with Settling Parties
Quarterly Check-in Call
with Settling Parties
All party meeting

Due Date
October 2015

Responsible Party
MPRWA

January 2016

MPRWACPUC

Proposed Decision on
Commission Agenda

February 2016

CPUC

Testimony, settlement
discussions, hearings,
decisions from
Settlement K

December 2014-July
2015 November 2015June 2016

Cal-Am, MRWPCA,
MPWMD, CPUC

015621\0002\11340073.1
1/30/15

Notes

See GWR Schedule

23 January 2015
GWR (Rev 5 JAN 2015)
Task
File Motion for
Bifurcation of the
GWR Decision
Board Actions to
Approve Revised
Governance Committee
Agreement
Executed Agreements
for GWR Source Water
and/or Declaratory
Relief

Due Date
August 2013

Responsible Party
MRWPCA

Notes
Complete and Granted

August/Sept 2013

MPWMD, MPRWA,
County, & Cal-Am

To be Completed in
October

MRWPCA

Meet & Confer in

Progress for Definitive
Agreements (March
2015)

MPWMD & MRWPCA

Delayed per Oct 2014

CPUC Adjustment of
Phase 2 Schedule

MRWPCA

Dept Public Health

Concept Project
Approval received
June 2014
????

Sept-Nov 2013
6 Party Joint MOU
Approved mid-Oct 2014

Draft WPA
Oct-Dec 2013
April 2015
Obtain Representations
from DPH re Use of
Extracted GWR Water

Oct-Dec 2013
June 2014

Obtain Representations
from RWQCB re Use of
Extracted GWR Water

Oct-Dec 2013
June 2014

Storage Agreement
with Seaside Basin
Watermaster

Oct-Dec 2013
April 2015

GWR Basis of Design

Complete with At Least
10% Design

Oct-Dec 2013
October 2014

GWR Financing Plan

Sufficient for SRF
Funding

Oct-Dec 2013
May 2015

Agreement on Terms of
WPA

Perform Revenue
Requirement Analysis
Including Any Debt
Equivalency Effect
Perform Assessment of
GWR Positive and
Negative Externalities
for Any Premium
Showing
DEIR Circulated
015621\0002\11340073.1
1/30/15

MRWPCA

MRWPCA & MPWMD

MRWPCA

complete

MRWPCA & MPWMD

Jan 2014
June 2015

Cal-Am, MRWPCA,
&MPWMD

MRWPCA & MPWMD

Jan-Mar 2014
June 2015
Jan-Mar 2014
June 2015

MRWPCA & MPWMD

July 2014 March 2015

MRWPCA

Coord w/Cal Am DEIR

23 January 2015
Dilution Water
Requirements
Project Approved and
FEIR

July-October 2014
Not Required
October 2014
September 2015

MRWPCA

CPUC Testimony
Phase Commences

November 2015

Cal-Am, MRWPCA,
MPWMD, CPUC

CPUC Evidentiary
Hearings

January 2016

Cal-Am, MRWPCA,
MPWMD, CPUC

All Permits for GWR

Construction Obtained

Target for CPUC Action

on Phase 2 Decision

015621\0002\11340073.1
1/30/15

MRWPCA

MRWPCA
January 2015
February 2016
June 2016

Cal-Am, MRWPCA,
MPWMD, CPUC

For Major Permits

23 January 2015
Source Wells (Rev 5 JAN 2015)
Task
Drill Exploratory
Boreholes
Commence
Hydrogeologic Study
and Technical Report
Permits for CEMEX
Site Test Well

Due Date
Sept. 2013 February
2014
August 2013

Responsible Party
Cal-Am

Notes
Complete

Cal-Am / SVWC

Underway

January 2014 Nov 12,

2014

Cal-Am

Coastal Commission
Approved CDP.
CEQA lawsuit pending

Drill CEMEX Site Test

Well

February 2014 NovDec

14-FebMar 15 subject
to Coastal Commission

Cal-Am

Results of Test Well

Operation Obtained
Hydrogeologic Study
and Technical Report
Complete and Results
Filed with CPUC
Necessary Agreements
from CEMEX for
Source Wells
All Necessary Permits
for Construction of
Source Wells Obtained

February 2014 2015

February 2016 2017

Cal-Am

Delayed -see above

Cal-Am

Delayed -see above

015621\0002\11340073.1
1/30/15

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

Cal-Am

Nov. 2015, or sooner

?Nov 2016 or sooner

Cal-Am

23 January 2015
Securitization (Rev 5 JAN 2015)

Initial Revision and

Redline of Legislation

Early September 2013

MPWMD

Complete

Obtain Cal-Am Input on

Draft Legislation

Late September 2013

MPWMD, MPRWA, &

Cal-Am

Complete

Retain Necessary
Additional
Financial/Legal
Consultants (Charles
Atkins)

October 2013

MPWMD

In ProgressComplete

Revise Financial
Comparison of
Securitization v. Cal-Am
Financing

October 2013

MPWMD & Cal-Am

In ProgressOn-Going

Meeting with
Community/Interest
Groups and Cities

October-December
2013

MPWMD & MPRWA

In Progress Complete

Further Revise
Legislation as
Necessary

October-November
2013

Draft Summary of
Legislation

December 2013

Introduce Legislation

January 2014

Lobbying Effort

February-April 2014

Legislation Adopted
Governor Signed

April-May 2014 Sept 19,

2014

Initial Draft of Motion for

Financing Order

April 2014

In Progress Complete

MPWMD

Complete
MPWMD, MPRWA, &
Cal-Am

015621\0002\11340073.1
1/30/15

April 2014
March 2015

In Progress Complete

Passed Senate
Unanimously; Referred
to Assembly Complete
MPWMD

March 2015
Perform Analysis to
Demonstrate Annual
Customer Benefits
Exceed 1.0% of Total
Annual Revenue
Requirement

Complete

MPWMD & Cal-Am

23 January 2015
Motion Application for
Financing Order

May 2014

MPWMD

May 2015
Obtain CPUC Financing
Order

August 2014 November

2015

Preliminary Discussions
with Bond Underwriters

September-December
2014

MPWMD

Drafting of
documentation for bond
requestsDocuments

September
2014January-April 2015

MPWMD & Cal-Am

Preliminary Discussions
with Rating Agencies

February-April 2015

MPWMD

Issuance of Public Bond

Financing

End of 2015 Q2-Q3

2016

MPWMD

015621\0002\11340073.1
1/30/15

Order on securitization
financing on satisfaction
of remaining criteria
from Settlement K
Complete??

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: February 12, 2015

Item No: 6.

Executive Director Cullem

SUBJECT: Approve Invitation to New Interim General Manager of the

Marina Coast Water District to Serve As A Member of The
Water Authority Technical Advisory Committee (TAC)
RECOMMENDATION:
It is recommended that the Water Authority Board extend an invitation to
Bill Koker, the new interim general manager of the Marina Coast Water
District, to serve as a member of the Water Authority TAC.
DISCUSSION:
At Exhibit A is the staff report provided to the Water Authority on Aug 14,
2014, recommending that Brian Lee be invited to join the TAC. As
discussed in the report, staff believes that participation on the TAC can only
improve communication between Marina and the Peninsula cities, and
could help us find "win-win" solutions to our regional water problems.
Brian Lee, the Interim General Manager last year, accepted the invitation
and served as a member until his departure from MCWD in January 2015.
The TAC discussed inviting the current interim General Manager, Bill
Koker, to fill the MCWD seat on the TAC. Following discussion and public
input, the TAC voted 5-2 to recommend to the Water Authority that we
extend the invitation to Bill Koker.
EXHIBITS:
A- Staff report provided to the Water Authority on Aug 14, 2014

06/12

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: August 14, 2014

Item No: 7.

Executive Director Cullem

SUBJECT: Receive report, discuss, and vote on staff proposal to add the General
Manager, or District Engineer, of the Marina Coast Water District
(MCWD) as a member of the Authority Technical Advisory Committee
(TAC) and to add a MCWD hydrologist to the Monterey Peninsula Water
Supply Project (MPWSP) Hydrogeologic Working Group.
RECOMMENDATION:
Staff recommends that the Water Authority invite Marina Coast Water District (MCWD)
participation on the Technical Advisory Committee (TAC) and consider if it should make
a recommendation to the settling parties to add a MCWD hydrologist to the test slant
well Hydrogeologic Working Group (HWG).
DISCUSSION:
During January and July 2014, the City of Marina has been heavily involved in the
permitting of the bore hole construction and in consideration of a mitigated negative
declaration (MND) and coastal development permit (DP) for Cal Am's test slant well at
the CEMEX site.
During public hearings, the Marina Coast Water District (MCWD) raised a number of
concerns that suggest a lack of communication between MCWD and Cal Am, and with
the Water Authority as well. This situation has not only delayed progress on the desal
plant approval and construction, but has raised serious concerns on the part of the
MCWD and City of Marina that its water needs may be placed at risk as a result of the
desal plant slant wells.
To initiate a dialog on these issues, several informal MCWD/MPRWA management
level meetings were held during the week of August 4. Amongst other things, it was
concluded that participation by MCWD representatives on the TAC, and possibly on the
HWG, would provide early MCWD input on technical issues related to the Desal facility
and the slant wells, facilitate MCWD environmental review of the MPWSP EIR, insure
the concerns of Marina residents get timely consideration, and improve communication
between and amongst MCWD, Cal Am, and the Water Authority.
It should be noted that the TAC already has a member from the agricultural community
to articulate ag interests prior to Water Authority decisions and deliberations. Thus, the
Executive Director recommends the Authority extend an invitation to the MCWD District
Engineer (Interim General Manager) to join the TAC for the same purpose.

06/12

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: February 12, 2015

Item No: 7.

Executive Director Cullem

SUBJECT: Receive Report on Monthly Reports to the Authority

Board on the Activities of the Public Outreach
Consultant and Discussions of Priorities

RECOMMENDATION:
Staff recommends the Water Authority receive the first of monthly reports
on the activities of Environmental Relations PR, the Water Authority Public
Outreach consultant.

DISCUSSION:
At its meeting on April 25, 2013, the Water Authority approved a Public
Outreach budget of $49,000 of which $20,000 was budgeted for Speakers
Bureau Support. Following an RFP process in September 2013, the Water
Authority awarded a contract to Environmental Relations PR for Public
Outreach Services for the FY 2013-2014 at a price not-to-exceed $15,000.
At its meeting of December 11, the Water Authority approved a extension
of the contract for FY 2014-2015 at a price not-to-exceed $10,000. A copy
of the current Scope of Work is at Exhibit A.
As a condition of contract approval this year, staff and the consultant were
directed to meet with Vice President Kampe to establish clearer objectives
and to document accomplishments. At a meeting on Jan 16, 2015, it was
agreed that the Authority should receive a monthly report on outreach
activities and priorities.

06/12

Accordingly, Ashley Belany from Environmental Relations PR will discuss

the following activities:
1. WEB Site Update
2. Draft Slant Well newspaper article
3. Coordination meeting with WA Vice-President Kampe
4. Update Public Information handout
5. Updated Facebook page and posting of news
FISCAL IMPACT:
At fiscal year end, the Authority had expended quite a bit less than $49,000
in FY 2013-2014 for Public Outreach, and actual contract expenditures for
the Public Outreach Services contract were substantially less than $15,000
as well. Staff expects to further reduce expenditures under the current notto-exceed $10,000 consultant contract.

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

Public Outreach Services

Monterey Peninsula Regional Water Authority
Scope of Work: October 2014-2015

A.

Update master plan for Public Outreach and Information

B.

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

C.

Establish and maintain contacts with the media

D.

Propose and prepare periodic op-eds as needed

E.

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

F.

Develop and update audience specific handout materials

G.

Update, expand Frequently Asked Questions for print and on website

H.

Develop social media, including feedback opportunities

I.

Maintain and update Water Authority website

J.

Monitor Water Authority meetings and proceedings

K.

Coordinate all public outreach & messaging with MPWMD and MRWPCA via the
MPWMD Public Outreach Committee

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: February 12, 2015

Item No: 8.

Executive Director Cullem

SUBJECT: Designation of Alternate Water Authority Representative On the

Governance Committee
RECOMMENDATION:
Staff recommends that the Authority designate an alternate representative
to the Governance Committee (GC).
DISCUSSION:
Mayor Burnett serves as the Water Authority representative to the GC. With
the departure of Chuck Della Sala from the Water Authority Board, the
position of alternate Authority representative is vacant. The Governance
Committee has requested the Board designate a replacement by name or
position.
ATTACHMENTS:
None

06/12

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: February 12, 2015

Item No: 9.

Executive Director Cullem

SUBJECT: Receive Update, Discuss, And Provide Direction On Water

Authority Participation In Obtaining A Cease and Desist Order
(CDO) Extension
RECOMMENDATION:
It is recommended that the Water Authority Board receive and discuss an
update on efforts by the settling parties, including California American
Water Co. (Cal Am), the Monterey Peninsula Water Management District
(MPWMD), and the Monterey Peninsula Regional Water Authority
(MPRWA) to obtain an extension of the CDO 2009-60 deadline date of
December 31, 2016.
DISCUSSION:
Due to a variety of reasons, many beyond the control of Cal Am, as well as
the community, the Monterey Peninsula Water Supply Project (MPWSP)
has been delayed to the point where it is virtually impossible for Cal Am to
meet the State Water Resources Control Board CDO 2009-60 deadline of
December 31, 2016.
The public has become increasing concerned as the CDO date approaches
and has expressed a desire to be better informed as to how Cal Am and
public officials are planning to deal with the problem. Accordingly, staff
recommends this issue be agendized for updates at all future meetings.
As discussed in previous Water Authority meetings, representatives of the
settling parties have been in discussion with the California State Water
Resources Control Board (SWRCB) staff in an effort to develop proposals
acceptable enough to secure staff concurrence with a formal request for a
CDO extension that will be made to the State Board in 2015.

06/12

Last year, the Authority Board selected Mayor Burnett to represent the
MPRWA at discussions with the SWRCB and other settling parties.
Of particular importance during these discussions is that the Water
Authority and other public officials are opposed to penalties or other
measures mandated by the SWRCB that result in unfair or punitive impacts
on ratepayers who have exceeded conservation goals and who have no
responsibility for the delay.
While the potential terms of an extension to any CDO remain under
discussion, key principles that might be included in an agreement to extend
the CDO include the following:
A four-year extension of the CDO deadline from December 31, 2016
to December 31, 2020.
A new reduction schedule in regular increments during the extension,
but suspension of the prescribed reductions if MPWSP milestones
are satisfied.
Authority for the SWRCB staff to suspend a reduction corresponding
to a missed milestone if staff determines that the milestone was
missed due to circumstances beyond the control of Cal-Am,
MPWMD, and the Water Authority.
Discussions continue under a tight timeline, since, for a variety of reasons,
we believe we need to have an agreement in draft early in 2015. In any
event, it is the intent of the Board to discuss any draft agreement at a future
Water Authority meeting and to gather public input.

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: February 12, 2015

Item No: 10.

Executive Director Cullem

SUBJECT: Receive And Discuss The Current "Summary" Monterey Peninsula Water
Supply Project Schedule Including The Status Of The Test Slant Well
Construction And An Evaluation Of The Technical, Economic, And Legal
Feasibility Of Slant Wells After Data Is Available From The Test Well
RECOMMENDATION:
It is recommended that the Water Authority Board receive a report from Cal Am on the
status of the construction of the test slant well and an evaluation of how slant well
feasibility will be determined after test well data has become available. In addition to
technical viability, feasibility will have to consider economic, legal, and possibly political
issues as well.
DISCUSSION:
At its meeting of November 7, 2014, the California Coastal Commission issued a
Coastal Development Permit (CDP) for Cal Am's test slant well at the CEMEX site. In
addition, Cal Am and CEMEX have reached agreement for access to the site.
To date, legal efforts by the Marina Coast Water District (MCWD) and the Ag Land Trust
to stop the construction and operation of the test slant well have been unsuccessful.
The test slant well has now been drilled to its design depth and Cal Am expects to begin
pumping by March 1 to provide the data needed by the Hydrogeologic Working Group.
Cal Am will provide an update on the status of the slant test well including an update of
the "Summary Permits and Approvals" schedule. Cal Am will also discuss how the issue
of feasibility for installation and operation of production wells will be addressed.
ATTACHMENTS:
Current Cal Am "Summary" Schedule for Permits and Approvals

06/12

MPWSP Anticipated
Schedule
MPWSP
Anticipated
Schedule
2015

2014
S O N D

2016

2017

J F M A M J J A S O N D J F M A M J J A S O N D

EIR / CPCN / CDP

!
DEIR
Jan 2015

FEIR
July 2015

PG LWP

CPUC
EIR/CPCN
Approval
Q3 2015

2018

2019

J F M A M J J A S O N DJ F M A M J J A S O N D

CCC
Approval
Feb-Mar. 2016

J F M A

SWRCB Current
CDO Deadline
Dec. 31, 2016

Start-up
Construction

FEIR

GWR

CCC
Permit
Application
Jan 2015

RFQ/RFP &
Approve
DB Contractor
March to May

Nov. 2015

RWQCB
Application
Aug. 2015

Start-up
Window
Construction & Commissioning

Draft Water
Purchase
Agreement
Q2 2015

Testimony CPUC Evid.

Nov-Dec 2015 Hearings &
Briefings
Jan-Feb 2016

Test Well
Permitting

Q3 to Q4
2017

CPUC Proposed
Decision &
Action
May-June 2016

Production Wells

Slant Wells
Phase 1

Construction Test Well Operation

Snowy Plover Nesting Season
Limited Construction Activity

Snowy Plover Nesting Season

Limited Construction Activity

Pipelines / Tanks / BPS

Slant Wells
Phase 3
Snowy Plover Nesting Season
Limited Construction Activity

(if needed)

Construction & Commissioning

Design, Land, Permitting & Contracts

Start Construction
04-2016

Desal Plant
Design & Permitting
60%
09-2014

Slant Wells
Phase 2

Start-up Window
Partial or Full
Construction & Commissioning

90%
03-2016

Final
06-2016

Start Construction
07-2016

Note: The schedule is based on the information and assumptions available at time of update and is accurate to +/-6 months.

Mid 2018

Q1 2019
Updated January 8, 2015

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: February 12, 2015

Item No: 11.

Executive Director Cullem

SUBJECT: Receive Year End Budget Review for Calendar Year 2014-15, Discuss,
and Provide Guidance To Staff.

RECOMMENDATION:
It is recommended that the MPRWA receive an update of the budget for FY 2014-2015
as of the end of calendar year 2014 and provide direction to staff.
DISCUSSION:
At its meeting of April 10, 2014, the Water Authority adopted a budget of $458,680 for
Fiscal Year 2014-2015. As of December 31, 2014, the Authority has expended
$210,862.10 (32.01%) of the budget funds.
The contribution from each City and Monterey County was calculated based upon a
"fair share" of the budget. The actual invoice to each entity was reduced by its fair-share
credit from a $121,000 surplus in FY 2013-2014. The surplus resulted from lower than
expected Special Counsel costs due to delays at the CPUC in the settlement
proceedings.
Special Counsel continues as a major budget item, but we are well within the budget as
of December 31, 2014, again largely due to additional delays in the CPUC proceedings.
In addition, the Authority has continued to be able to conduct business at one (1) Water
Authority meeting and one (1) TAC meeting per month. That reduced schedule
substantially lowers administrative costs.
As of December 31, 2014, staff projects that we should have savings in the Directors
pay, Special Counsel expenses, and Contract Services totaling about $100,000. Since
this projected savings is dependent upon future developments, including whether the
County will, in fact, pay its $153,000 fair share, staff recommends we refrain from
crediting funds back to the agencies until the end of the fiscal year.
FISCAL IMPACT:
Should the Water Authority expenditures benefit from the $100,000 savings as noted
above, the final budget or 2014-2015 will be approximately $358,680. That in turn
would allow a "fair-share" credit to agencies against the FY 2015-2016 contributions.

06/12

Distribution Percentages

Member City
Monterey County
Carmel By the Sea
Sand City
City of Pacific Grove
City of Seaside
City of Monterey
City of Del Rey Oaks
Total Income

Approved %
Distribution
W/Out MoCo

Proposed %
Redistribution
W/MoCo

0%
9.30%
1.30%
18.80%
22.00%
46.50%
2.10%
100.00%

34%
6.14%
0.86%
12.40%
14.50%
30.70%
1.40%
100.00%

Member Contributions - w/MoCo

PROPOSED

Member City
Carmel By the Sea
Sand City
City of Pacific Grove
City of Seaside
City of Monterey
City of Del Rey Oaks
County of Monterey
Total Income

Proposed %
Distribution
W/MoCo
6.14%
0.86%
12.40%
14.50%
30.70%
1.40%
34.00%
100.00%

REVISED
Contributions
Anticipated
FY 2014-15
$28,163
$3,945
$56,876
$66,509
$140,815
$6,422
$155,951
$458,680

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: February 12, 2015

Item No: 12.

Authority Clerk Milton

SUBJECT: Discuss Implications Of An Earlier Start Time For Future

Meetings
RECOMMENDATION:
It is recommended that the Water Authority Board discuss the implications
of an earlier start time and provide staff direction.
DISCUSSION:
The issue of earlier start times for future Water Authority meetings was
raised at the meeting of January 8, 2015. However there are some issues
related to facility conflicts and live television coverage if meetings are held
earlier than 7:00 p.m.
Any additional issues with the proposed time change.
ATTACHMENTS:
None

06/12