MPRWA Agenda Packet 03-12-15

8/9/2019 MPRWA Agenda Packet 03-12-15

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AgendaMonterey Peninsula Regional Water Authority (MPRWA)

Regular Meeting

7:00 PM, Thursday, March 12, 2015

Council Chamber580 Pacific Street

Monterey, California

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

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

CONSENT AGENDA

1. Approval of Minutes from February 12, 2015 Regular Meeting - Milton

2. Approve and File Checks from February 13, 2015 through March 11, 2015. - Milton

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

Outreach Consultant And Discussion Of Priorities. - Beleny

4. Receive Report and Staff Recommendation On An Earlier Start Time For Future Meetings - Milton

5. Authorize the Executive Director to Send a Letter to the Fort Ord Reuse Authority Board Requesting Staff Coordination on Marina Coast water District's Proposed Regional Urban Water Augmentation Project (Desal) and Cal Am's Monterey Peninsula Water Supply Project. - Cullem

AGENDA ITEMS

6. Receive Report, Discuss, and Provide Direction with Respect to the Proposed Extension of the State Water Resources Control Board Cease and Desist Order WR 2009-0060 (CDO) Deadline of 31 December 2016 - Cullem

7. Receive Report, Discuss, and Provide Staff Direction on the "Summary" MontereyPeninsula Water Supply Project Schedule - Crooks/Cullem

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Thursday, March 12, 2015

2

8. Designation of Alternate To Serve As A Representative of The Authority On The Governance Committee. - Cullem

9. Receive Report, Discuss, and Provide Direction on Water Authority Legal Expenses. -

Cullem

10. Receive a Report on Expected Credits to City Contributions for FY 2014-2015 Subject to Receipt of Monterey County Fair Share and Initial Budget Estimate for FY 2015-2016. - Cullem

ADJOURNMENT

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

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

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MINUTES

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)Regular Meeting

7:00 PM, Thursday, February 12, 2015COUNCIL CHAMBER580 PACIFIC STREET

MONTEREY, CALIFORNIA

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

Directors Absent: None

Staff Present: Executive Director, Legal Counsel, Authority Clerk

ROLL CALL

Meeting was called to order at 7:00 PM.

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

President Burnett noted the length of the agenda and any meetings may be continued to afuture meeting if discussions are too long. President Burnett then invited reports from Directorsand Staff.

Executive Director Cullem spoke to the Director's request to discuss the Dana Point test wellsreporting the TAC discussed the item in depth at their February 2, 2015 meeting andquestioned if the Board also wished to take up the item.

PUBLIC COMMENTS

President Burnett invited public comments

• George Riley expressed concern regarding the participation of Monterey County as amember of the Governance Committee due to the settlement agreement regardingcounty debts for the failed regional desal project, questioning if there is a conflict ofinterest. He then requested agendizing an update of Cal Am costs, to discuss thefeasibility question of slant wells and a discussion for the sunset of the Authority.

• Tom Rowley also questioned when the Authority would request Senator Monning tomodify the Water Management District to add all land use jurisdictions. Suggested thatthe president appoint an ad hoc committee to study the possibility.

• Michael Warburton, Public Trust Alliance requested a discussion of reasonablealternatives to a desal plant.

• Nelson Vega indicated that many water solution projects have been attempted in thelast 30 years. He suggested revisiting the history of failed attempts for public educationand benefit.

CONSENT AGENDA

On motion by Director Edelen and seconded by Director Kampe and approved by the followingvote the Authority Directors approved the Consent Calendar as presented, Roberson Abstainedfrom Item 2.AYES: 5 DIRECTORS Burnett, Edelen Kampe, Pendergrass, Rubio


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MPRWA Minutes Thursday, February 12, 2015

Monterey Peninsula Regional Water Authority

Regular Meeting Minutes - Thursday, February 12, 20152

NOES: 0 DIRECTORS NoneABSENT: 1 DIRECTORS RobersonABSTAIN: 0 DIRECTORS NoneRECUSED: 0 DIRECTORS None

1. January 8, 2015 Regular Meeting

Action: Approved

2. Approval of Checks Through February 12, 2015Action: Approved

AGENDA ITEMS

3. Adopt Resolution Authorizing The Authority President To Extend The Contract With The City OfMonterey For Executive Director Services And To Request The City Of Monterey To Extend ItsContract With James M. Cullem For That PositionAction: Approved and Passed Resolution 15-01

Clerk Milton-Rerig spoke to the item and the terms of the contract extension with the City ofMonterey for Executive Director services that are reimbursed by the Authority. ExecutiveDirector Cullem noted that this contract was for an 18 month term to fall in line with the fiscalyear. Ms. Milton-Rerig and Mr. Cullem answered questions from the Directors.

President Burnett invited public comments on the item and had no requests to speak

Director Kampe moved to approve the recommendation, seconded by Director Rubio.

Speaking on the second, Director Rubio questioned the ability to include a not to exceedcontract price. Director Roberson expressed concern regarding timing, that he wanted todiscuss the item with this council and requested continuing this item to the March meeting.

This item was continued until the end of the meeting for further discussion.

The Director’s returned to the discussion of Agenda Item 3 and Clerk Milton requested thefollowing amendment be made to the resolution:

After 4th WHEREAS clause, add an additional clause to read:“WHEREAS the contract is to be extended for a period not to exceed 18 months for atotal cost not to exceed $141,420.00”

And modify NOW THEREFORE, by adding to the end:“With the total cost is not to exceed $141,420.00”

On a motion by Director Rubio seconded by Director Kampe, and carried by the following vote,the Monterey Peninsula Regional Water Authority adopted Resolution 15-01 with revisedlanguage as noted above, Authorizing The Authority President To Extend The Contract WithThe City Of Monterey For Executive Director Services And To Request The City Of MontereyTo Extend Its Contract With James M. Cullem For That Position:

AYES: 6 DIRECTORS: Burnett, Edelen Kampe, Pendergrass, Roberson,Rubio

NOES: 0 DIRECTORS: None


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ABSENT: 0 DIRECTORS: NoneABSTAIN: 0 DIRECTORS: NoneRECUSED: 0 DIRECTORS: None

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

President Burnett spoke to the item and discussed the document prepared for the meeting titled“Background on the Water Authority in its first three years”. This document spoke to the historyof the Authority, positions taken and the processes the Authority took to get to those positions,and accomplishments achieved. It outlined the efforts that the Authority has made in terms ofcommunications and relationships between local parties as well as state and governmentalagencies. Finally the document outlines the cost benefit analysis of the efforts of the Authorityas compared to the cost of operation since inception. He spoke to the savings to the public as aresult of the value engineering the public financing efforts. President Burnett gave significantcredit to the Water Management District and said these are a result of the partnerships.President Burnett answered questions of the public.

• Nelson Vega spoke to his initial criticism of the Authority but that the efforts of theAuthority have ensured that water solution projects have moved forward. He spoke insupport of the efforts of the Authority Past President Della Sala and current PresidentBurnett.

• Tom Rolwey agreed with Mr. Vega and urged representation on the Authority for theunincorporated Monterey County residents.

• Michael Warburton spoke to the public right to water and that more investigation andpublic discussion is needed regarding reasonable alternatives.

• George Riley spoke to the leadership role that the Authority has taken that is notreflected in this document. He also spoke to the publicity the Authority has broughtregarding water issues with their efforts to educate the community about progress beingmade. He disagreed that an accomplishment was the defeat of Measure O.

• Steve Thomas Public Outreach Consultant with the Water Management District spoke tothe leadership and organizational capability that Dave Stoldt has brought to the Districtand to the involvement of the Authority supporting the Pure Water Monterey project. Hedisagreed with Mr. Vega’s comment that the WMD had not produced a water project in30 years, citing the successful ASR project that when it rained, it produced over 200acre/ft of water.

This was for discussion purposes and not for action. Mayor Rubio requested this be turned intoa slide show to be shown at the City Council meetings. The Directors Agreed.

Vice President Kampe spoke to his presentation to the PG City Council Meeting and spoke tothe settlement agreements being pivotal to the progress of the projects. He spoke to the needto find venues to discuss what role the Authority needs to take to help secure future water.

Director Pendergrass spoke to purposeful creation of the Authority to ensure that local cities arenot left out of a project again, and spoke in support of all of the land use jurisdictions beingrepresented on the Water Management District Board.


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Director Roberson questioned if the Authority has adgendized a discussion of merging with TheWater Management District to which President Burnet responded that the Board has drafted asunset plan of the Authority and that we should continue to discuss the productive partnershipthat we have built and not do anything to distract or detract from the current efforts. TheDirectors agreed.

President Burnett requested to take up Item 9 next, to which all Directors approved.

5. Receive The 23 January 2015 Update to the CPUC Schedule and Discuss the Delay in theRelease of the DEIR and Other Changes and Decide on a Course of Action if NeededAction: Tabled

6. Approve Invitation to New Interim General Manager of the Marina Coast Water District to ServeAs A Member of The Water Authority Technical AdvisoryAction: Tabled

7. Receive Report On Monthly Reports To The Authority Board On Activities Of The PublicOutreach Consultant And Discussion Of Priorities.

Action: Tabled

8. Designation of Alternate To Serve As A Representative of The Authority On The GovernanceCommittee.Action: Tabled

9. Receive Update, Discuss, And Provide Direction On Water Authority Participation In ObtainingA Cease and Desist Order (CDO) Extension

This item was discussed after Item 4.

President Burnett provided an update regarding discussions to request modification of the

Cease and Desist Order from the State Water Resources Control Board. He reminded theBoard that the CDO, effective January 2017 requires Cal Am to cease pumping water from theCarmel River and meeting that reduction without a new water supply would be disastrous forour communities. The water available after the CDO would only be enough water to supply tohouseholds and not businesses or other purposes. He reminded the Board that none of thesignificant projects under way will be online producing water by the January 2017 deadline.

President Burnett outlined the following criteria that he feels is needed to obtain a successfulextension or modification from the State:

1. The development of definitive milestones.2. The need for more mitigation of the Carmel River.

3. Additional water in the river, likely due to the community's continued and additionalconservation efforts

4. Identification of consequences associated with missing milestones to keep motivated todeliver a project.


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President Burnett spoke to the documents provided at the meeting including a draft proposalnoting that the State is approximately six months way from taking action, therefore there issignificant opportunity for public discussion. He clarified that this document is a petitionbetween Cal Am and the State but the Authority we can vote to take a position of support of theaction and proposal. This proposal would not lead to water rationing as presented. PresidentBurnett and the Directors discussed the proposal.

Director Roberson questioned a herald article that the proposal was formal or informal to whichEric Sabolcie, Cal Am General Manager agreed with President Burnett that the discussion wasnot formal, it was a discussion of a solution, at a staff level. They have been working to get to apoint where there can be a future agreement. Legal Counsel Freeman reaffirmed that this is astaff level, working draft document.

President Burnett spoke to the details of the proposal.

Director Pendergrass urged respectful interactions with the state and spoke to past

At the request of Director Roberson, President Burnett recessed the meeting for a short break.The meeting reconvened at 8:52 and President Burnett invited public comment on the item.

• Nelson Vega spoke in support of the action but expressed concern that the State wouldimpose consequences that would punish the rate payers instead of Cal Am.

• Tom Rowley questioned the level of responsibility the PUC has for helping thecommunity to get a project on line, citing recently passed state legislation that requiresthem to help the public.

• John Narigi spoke representing the Coalition of Peninsula Businesses, spoke to theneed to vet the provided documents with the Board. He expressed the followingconcerns:

o A 4 year extension is positive, but concerned that no new connections will freezeour community for economic engines and growth.

o Documents should attempt to negotiate supply. No mention of wet years for

surplus and could that benefit.o Concern with milestones, are they doable and executable? Can we handle

penalties without impacting fiscal health of the region?o Discouraged including local jurisdictions in legal proceedings filed - should not

be the fault of the community. Agreements should acknowledge it gives ussupport against litigation.

o The tying together of the GWR project for schedule needs to be addressed.o Confidence level check of Cal Am for potential litigation threats in the future.

Unintentional consequences need to be identified and addressed.

• George Riley expressed concern regarding the lack of focus on rationing and thepossibility of penalties against the community and requested to see the options

regarding fines to compare rationing implications to fines. He also requested that ASRbe removed from the calculations as it is inconsistent.

• Michael Warburton indicated the CDO was imposed for good reasons because theenvironment was being damaged, but effort needs to be placed to find reasonablesolutions.


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Closed public comment and answered questions from public comment.

Eric Sabolcie commented that the CDO does allow for the ability to negotiate alternate recoverystrategies, including the discretion to Bank ASR also that recently passed legislation may grantthe ability to not incur penalties if the CPUC caused project delays. . The Directors discussedthe draft proposal, the potential impacts as well as the critical path items that may impact thesuccessful completion of water solution projects.

Mayor Kamp encouraged the Directors to focus on ensuring our citizens have water to be ableto use, that we cannot let the CDO get in the way of finding a replacement source and that it ishard to quantify reducing the investment now for the potential future impact later. This item wasfor informational purposes and to gather direction.

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

Ian Crooks from Cal Am outlined the current status of the construction of the test slant wells

reporting that the drilling is completed and the next stages are moving forward. He remindedthe Directors and the Public that staff is trying to do this under extreme schedule constraints.He expects construction to be completed by end of February after which the first stage ofpumping (aquifer test) can begin which provides immediate data. Once the hydrologistapproves the full pumping rate, data can become available as soon as march.

President Burnett invited public comment and had no requests to speak.

11. Receive Year End Budget Review for Fiscal Year 2014-15, Discuss, and Provide Guidance ToStaff.Action: Report Received

Executive Director Cullem presented the report citing the Authority expenses of 28% of thebudget so far this fiscal year. He spoke to the current expected obligations through theremainder of the fiscal year, with the primary expenditure still being Special Legal Counsel. Mr.Cullem also spoke to the Monterey County Fair Share contributions and efforts to obtain thatfunding.

Director Rubio spoke to the need and importance for the Special Council, especially due to theneeded expertise regarding procedures of the CPUC. He spoke in support of Mr. McGlothlin'sexperience. President Burnett and Executive Director Cullem also spoke in support of theservices provided by Mr. McGlothlin.

President Burnett invited public comment.

• Tom Rowley spoke in support of the accomplishments of the Authority and withdisappointment of the slow payment of the County of Monterey and his disappointmentthat Monterey County does not give much attention to Peninsula water issues.

• Michael Warburton cited the County’s obligations that cover domestic use of water andspoke to Mr. Rowleys agreement that they are responsible to all citizens in MontereyCounty.

This was for information and direction.


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12. Discuss Implications Of An Earlier Start Time For Future MeetingsAction: Tabled

ADJOURNMENT

ATTEST:

Lesley E. Milton-Rerig, Authority Clerk Jason Burnett, MPRWA President


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Monterey Peninsula Regional Water AuthorityAgenda Report

Date: December 11, 2014

Item No: 2

FROM: Authority Clerk Milton

SUBJECT: Approval and File Authority Checks Through March 11, 2015

RECOMMENDATION:

It is recommended that the Authority approve and file the accounts payable paymentsmade during the period February 12, 2015 through March 11, 2015 with total paymentsfor the above referenced period of $30,393.43 from the general fund account andauthorize the Directors to sign for such checks.

DISCUSSION:

At its meeting on September 12, 2013, the Authority Board approved a staffrecommendation to provide the Directors a listing of financial obligations since the lastreport for inspection and confirmation. Each invoiced expense has been reviewed andapproved by the Executive Director and Finance personnel prior to payment to insure thatit conforms to the approved budget.

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

• $ 17,656.43 to the City of Monterey for Executive Director Services For 4th quarter services.

• $ 1,125.00 to Access Monterey Peninsula

• $ 5,312.00 to Brownstein Hyatt Farber and Schreck for Special Legal CounselServices.

• $ 5,000.00 to Perry and Freeman for contracted monthly legal services (Marchand April 2015)

• $ 1,300.00To Environmental Relations for Public Outreach services

The bank balance as of March 1, 2015 is sufficient cover the above check therefore,staff is recommending approval.

ATTACHMENTS:

• Budget to Actual Report through March 1, 2015


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2:18 PM

02/06/15

Accrual Basis


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

Budget

Actual Jul 1,

'14 - Mar 1, 15 Balance % of Budget

Ordinary Income/Expense

Income

47200 · Program Income

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

47240 · Program Service Fees 0.00 0.00 0.00 0.0%

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

47260 · Reimburesment VE Contract 0.00 0.00 0.00 0.0%

47200 · Program Income - Other 0.00 0.00 0.00 0.0%

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

Expense

60900 · Administration and Clerical

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

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

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

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

60905 · Misc Admin Expenses 500.00 0.00 500.00 0.0%

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

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

62100 · Legal Fees

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

62140 · Special Counsel 152,000.00 26,484.85 125,515.15 17.42%

62100 · Legal Fees - Other 0.00 0.00 0.00 0.0%

Total 62100 · Legal Fees 215,000.00 46,484.85 168,515.15 21.62%

62800 · Contract Services

60801 · Public Outreach 35,000.00 3,633.33 31,366.67 10.38%

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

62802 · Audit Services 6,000.00 6,805.00 -805.00 113.42%

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

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

62805 · Contract SPI 0.00 0.00 0.00 0.0%

62800 · Contract Services - Other 0.00 0.00 0.00 0.0%

Total 62800 · Contract Services 281,000.00 117,964.47 163,035.53 41.98%

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

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

66000 · Payroll Expenses 0.00 0.00 0.00 0.0%

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

Total Expense 658,680.00 219,051.57 -439,628.43 33.26%

Other Income/Expense

47220 · Interest Earned 0.00 1.65 -1.65 100.0%

Page 1 of 1


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Date: March 12, 2015

Item No: 3.

№06/12

FROM: Executive Director Cullem

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

RECOMMENDATION:

Staff recommends the Water Authority receive the first of monthly reports

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

Outreach consultant.

DISCUSSION:

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

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

Authority awarded a contract to Environmental Relations PR for Public

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

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

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

of the current Scope of Work is at Exhibit A.

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

directed to meet with Vice President Kampe to establish clearer objectives

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

agreed that the Authority should receive a monthly report on outreach

activities and priorities.


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Ashley Belany from Environmental Relations PR has focused on

accomplishing the following activities through March 1, 2015:

1. WEB Site Reorganization and Update2. Draft Slant Well and Draft "DESAL Alphabet Soup" newspaper articles3. Coordination meeting with WA Vice-President Kampe4. Update Public Information handout5. Updated Facebook page and posting of news6. Attend Water Authority and selected TAC meetings

The Executive Director has directed Ashley to continue prioritizing theupdates of the web page and social media sites, and preparation ofperiodic newspaper articles to fill in the information void not covered by

reporters and other contributors such as Cal Am, the MRWPCA, and theMPWMD.

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 $15,000as well. Staff expects to further reduce expenditures under the current not-

to-exceed $10,000 consultant contract.

ATTACHMENTS:

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


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Public Outreach Services


Scope of Work: October 2014-2015

A. Update master plan for Public Outreach and Information

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

Development

C. Establish and maintain contacts with the media

D. Propose and prepare periodic op-eds as needed

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

F. Develop and update audience specific handout materials

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

H. Develop social media, including feedback opportunities

I. Maintain and update Water Authority website

J. Monitor Water Authority meetings and proceedings

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

MPWMD Public Outreach Committee


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Item No: 4.

№06/12

FROM: Authority Clerk Milton

SUBJECT:Receive Report and Staff Recommendation On An Earlier StartTime For Future Meetings

RECOMMENDATION:

It is recommended that the Water Authority Board retain the current timeand date schedule for its meetings.

DISCUSSION:

The issue of earlier start times for future Water Authority meetings wasraised at the meeting of January 8, 2015. Staff investigated the possibilityof doing so, and developed the following information:

1. The City of Monterey Historic Planning Commission uses theMonterey Council Chambers from 4:00 to 6:30 PM on the sameThursdays the Water Authority meets.

2. Due to prior scheduling commitments, AMP cannot provide us withlive meeting coverage earlier than 7:00 p.m.

Staff believes that since an earlier start time will require the Authority to finda different venue it could negatively impact the public's ability to participateand could cause confusion. Accordingly, the Executive Directorrecommends the Water Authority meeting dates and times remainunchanged at this time.

ATTACHMENTS:

None


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Item No: 5.

№


SUBJECT: Authorize the Executive Director to Send a Letter to the Fort Ord ReuseAuthority Board Requesting Staff Coordination on Marina Coast waterDistrict's Proposed Regional Urban Water Augmentation Project (Desal)and Cal Am's Monterey Peninsula Water Supply Project.

RECOMMENDATION:

It is Recommended that the Water Authority authorize the Executive Director to send aletter to the FORA board of directors requesting that any action related to Marina Coast

Water District's Proposed Regional Urban Water Augmentation Project (DESAL)include direction to FORA staff to work with the Water Authority and the MontereyPeninsula Water Management District in order to fully analyze the potential interactionsbetween Marina Coast’s plans and Cal Am's Monterey Peninsula Water Supply Project(MPWSP).

DISCUSSION:

FORA board agenda item 9e for its meeting of March 13, 2015 is to "Consider MarinaCoast Water District Proposed Regional Urban Water Augmentation Project". The

agenda calls for the item to be for information and for action.

In the interests of addressing water supply projects from a regional perspective and tobest meet the needs of MCWD customers as well as those of Cal Am, construction ofDesal plants and or intake facilities which are likely to be in close proximity should beclosely coordinated.

Accordingly, it is recommended that the MPRWA board direct the Executive Director tosubmit a letter to FORA requesting it direct MCWD staff coordination with the MPRWAand MPWMD before taking any approval action on the MCWD Desal project. A draft ofthe letter is at Attachment A.

ATTACHMENTS:

A- Draft letter from the MPRWA Executive Director to the FORA Board of Directors (Tobe provided at or before the meeting)


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Item No: 6.

№06/12


SUBJECT:Receive Report, Discuss, and Provide Direction with Respect tothe Proposed Extension of the State Water Resources ControlBoard Cease and Desist Order WR 2009-0060 (CDO)Deadline of 31 December 2016.

RECOMMENDATION:

It is recommended that the Water Authority Board receive an update onefforts by the settling parties, including California American Water Co. (CalAm), the Monterey Peninsula Water Management District (MPWMD), andthe Monterey Peninsula Regional Water Authority (MPRWA) to obtain anextension of the CDO 2009-60 deadline date of December 31, 2016.

DISCUSSION:

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

Accordingly, representatives of the settling parties have been in discussionwith the SWRCB staff in an effort to develop proposals for a CDOextension that would be acceptable to the public and have a reasonableexpectation of obtaining State Board approval.

Last year, the Authority Board selected Mayor Burnett to represent theMPRWA in those discussions.


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Key principles under discussion 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 milestonesare satisfied.

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

• Suspension of the reduction would be triggered by a joint writtenstatement from Cal Am, the MPWMD, and the MPRWA that the

milestone was missed for reasons outside our control. It is ourposition that such a statement is to be assumed to be correct, and ifthe SWRCB staff disagrees, the issue would be referred to the StateBoard for a decision. In any case, the community retains its rights tolitigate the issue if necessary.

The Jan 14, 2015 Cal Am draft Proposal for an Extension was provided atthe February 12, 2015 Water Authority meeting and is available at theAuthority web site www.mprwa.org.

The Authority will report regularly on efforts and progress in helping Cal Amobtaining the extension, and will continue to gather public input before theAuthority takes a formal position on a final draft proposal.


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Item No: 7.

№06/12


SUBJECT: Receive Report, Discuss, and Provide Staff Direction on The "Summary"Monterey Peninsula Water Supply Project Schedule.

RECOMMENDATION:

It is recommended that the Water Authority Board receive a report from Cal Am on thestatus of the construction of the test slant well and on the summary MPWSP schedule.

DISCUSSION:

Cal Am will provide an update on the status of the slant test well including an update ofthe "Summary Permits and Approvals" schedule.

ATTACHMENTS:

Current Cal Am "Summary" Schedule for Permits and Approvals


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Item No: 8.

№06/12


SUBJECT:Designation of Alternate Water Authority Representative On theGovernance Committee

RECOMMENDATION:

Staff recommends that the Authority designate an alternate representative

to the Governance Committee (GC).

DISCUSSION:

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

ATTACHMENTS:None


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Item No: 9.

№06/12


SUBJECT: Receive Report, Discuss, and Provide Direction on Authority LegalExpenses

RECOMMENDATION:

It is recommended that the Water Authority Board review the budgeted and actualexpenditures for Special Counsel Services for CY 2013-2015/ FY 2013-2016.

DISCUSSION:

In March 2012, The Authority negotiated an agreement for Attorney of Record services

with Brownstein Hyatt Farber Schreck (Brownstein). The firm provided special expertise

in water law in support of Water Authority formation and activities.

At its meeting of Jan 9, 2014, the Authority extended the Brownstein agreement to

December 31, 2014, and at its meeting of November 13, 2014 the contract was

extended to December 31, 2015. In the budget, the line item for the legal services was

changed to read "Special Counsel" for FY 2013-2015.

Estimated expenditures Special Counsel services for CY 2014 and for CY 2015 wereprovided by Brownstein and are at Attachments A and B. These CY estimates were

used to develop FY 2013-2014 and FY 2014-2015 budget entries and the estimate for

FY 2015-2016.

BUDGET CONSIDERATIONS:

On January 9, 2014 the Authority Board approved an additional $86,000 to the FY2013-2014 Special Counsel budget for a total of $186,000. Actual expenditures at year-

end were $142,185.

On November 13, 2014 the Authority approved a total contract price not-to-exceed$152,000, with no change to the FY 2014-2015 Special Counsel budget of $152,000.Expenditures as of March 1, 2015 total $26,484 and are projected to remain well withinbudget.

For FY 2015-2016 the budget for Special Counsel is estimated to be $150,000.


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ATTACHMENTS:

A- Brownstein Hyatt Farber Schreck Estimated Budget for CY 2014B- Brownstein Hyatt Farber Schreck Estimated Budget for CY 2015


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015621\0002\10889833.1

Memorandum

DATE: December 5, 2013

TO: Monterey Peninsula Regional Water Authority

FROM: Russell M. McGlothlin

RE: Estimated 2014 Budget for Legal Services from Brownstein Hyatt Farber Schreck

You have requested that we estimate the budget for legal services from our firm for calendar year 2014.The attached table estimates the 2014 budget for our anticipated representation of the MontereyPeninsula Regional Water Authority (Authority) with respect to: (1) the pending application by CaliforniaAmerican Water for issuance of a Certificate of Public Convenience and Necessity from the CaliforniaPublic Utilities Commission for the proposed Monterey Peninsula Water Project (Application 12.04.012);and (2) discussions and negotiations with the State Water Resources Control Board concerningoperation of the Cease and Desist Order (SWRCB Order 2009-0060).

The table estimates the budget for the principal categories of work that we anticipate in 2014 and issegregated by quarter. Additional work, either for these proceedings, but beyond the matters listed, orwork unrelated to these proceedings, may necessitate expenditures beyond those estimated below.

The variance between the low and high estimates reflects the inherent uncertainty concerning thescope of necessary work. Where possible and appropriate we will seek to coordinate with other entities(e.g., MPWMD) to ensure efficient and cost-effective representation.


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2015621\0002\10889833.1

Estimated Budget for CPUC A.12.04.019 and SWRCB CDO (2014)

Task/Matter Quarter Low High

Briefing on Settlement Agreement, Including JurisdictionalIssues Pertaining to Governance Committee

1 $6,000 $9,000

Prepare and Submit Comments on Draft EIR 1 $8,000 $12,000

Securitization Legislation 1 $3,000 $5,000Prepare for and Attend Quarterly Check-in Call with SettlingParties

1 $500 $2,000

Efforts re Modification of CDO 1 $6,000 $9,000

General Case/Matter Management Issues 1 $8,000 $12,000

Subtotal Q1 $31,500 $49,000

Opening and Reply Briefing 2 $10,000 $15,000

Review and Correspondence re Final EIR 2 $3,000 $5,000

Comments on Proposed Decision $10,000 $15,000

Securitization Legislation 2 $3,000 $5,000

Ex Parte Meeting(s) (Not Certain) 2 $6,000 $9,000

Prepare for and Attend Quarterly Check-in Call with SettlingParties

2 $500 $2,000



Subtotal Q2 $46,500 $72,000


Review and Correspondence re CPCN Phase I 3 $4,000 $6,000


3 $500 $2,000



Subtotal Q3 $21,500 $35,000

GWR Phase - Testimony 4 $10,000 $15,000


4 $500 $2,000


General Case/Matter Management Issues 4 $8,000 $12,000Subtotal Q4 $24,500 $38,000

Total 2014 $124,000 $194,000


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3015621\0002\10889833.1


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015621\0002\11886765.1

Russell M. McGlothlinAttorney at Law

805.882.1418 tel805.965.4333 [email protected]

Memorandum

DATE: February 5, 2015

TO: Monterey Peninsula Regional Water Authority

FROM: Russell M. McGlothlin

RE: Estimated 2015 Budget for Legal Services from Brownstein Hyatt Farber Schreck

You have requested that we estimate the budget for legal services from our firm for calendar year 2015.The attached table estimates the 2015 budget for our anticipated representation of the Monterey PeninsulaRegional Water Authority (Authority) with respect to: (1) the pending application by California AmericanWater for issuance of a Certificate of Public Convenience and Necessity from the California Public UtilitiesCommission for the proposed Monterey Peninsula Water Project (Application 12.04.012); and (2)discussions and negotiations with the State Water Resources Control Board concerning extension ofdeadlines set forth in the Cease and Desist Order (SWRCB Order 2009-0060).

Our budget for 2014 was for a low of $124,000 and high of $194,000. Our actual billings for workperformed in 2014 was $86,496. The lower than anticipated expense was, in part, the fact that many of theprojected work items for 2014 were postponed by delays in the MPWSP project (e.g., CPUC extensions).

Many of those items are now scheduled for 2015.

The table below estimates the budget for the principal categories of work that we anticipate in 2015 and issegregated by quarter. Additional work, either for these proceedings, but beyond the matters listed, or workunrelated to these proceedings, may necessitate expenditures beyond those estimated below. Thevariance between the low and high estimates reflects the inherent uncertainty concerning the scope ofnecessary work. Where possible and appropriate we will seek to coordinate with other entities (e.g., Cal-Am and MPWMD) to ensure efficient and cost-effective representation.


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2015621\0002\11886765.1

Estimated Budget for CPUC A.12.04.019 and SWRCB CDO (2015)

Task/Matter Quarter Low High

Prepare for and Attend Quarterly Check-in Call with Settling Parties 1 $1,000 $2,000

Securitization 2 $1,000 $3,000



Subtotal Q1 $12,000 $22,000

Review, Correspondence, and Comments re Draft EIR for MPWSP 2 $6,000 $9,000

Opening Brief 2 $8,000 $14,000Review, Correspondence, and Comments re Draft EIR, Draft WPA,Draft Financing Plan, and Source Water Agreement for GWR

2 $8,000 $14,000






Subtotal Q2 $42,000 $70,000

Reply Brief 3 $6,000 $9,000

Review, Correspondence, and Comments re Final EIR for GWR 3 $3,000 $6,000




General Case/Matter Management Issues 3 $8,000 $12,000Subtotal Q3 $28,000 $46,000

Review, Correspondence, and Comments re Final EIR for MPWSP 4 $4,000 $7,000

Review, Correspondence, and Comments re Proposed Decision onPhase I

4 $6,000 $9,000

Prepare CPUC Testimony for GWR (Phase II) 4 $8,000 $12,000





Subtotal Q4 $35,000 $55,000

Total 2015 $117,000 $193,000


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Item No: 10.

№06/12


SUBJECT: Receive a Report, Discuss, and Provide Direction on Expected Creditsto City Contributions for FY 2014-2015 Subject to Receipt of MontereyCounty Fair Share, and on an Initial Budget Estimate and EstimatedMember Contributions for FY 2015-2016.

RECOMMENDATION:

It is recommended that the Water Authority receive an update, discuss, and provide

staff direction on credits due to the Cities for FY 2014-2015 contributions if MontereyCounty does, in fact, forward its $155,951 fair-share contribution for FY 2014-2015, onthe draft preliminary budget for FY 2015-2016, and on projected member contributions.

DISCUSSION:

Contributions invoiced and paid by the six Cities of the MPRWA for FY 2014-2015totaled $337,312. Those contributions, plus the $121,368 carryover from FY 2013-2014,total the $458,680 approved budget. See attachment A.

These contributions could have been lower if the County agreed to pay its fair-sharecontribution of $ $155,951. However, although the Board of Supervisors approved acontribution of $153,000 in its budget for FY 2014-2015, the Board has indicated it willnot authorize disbursement until the Water Authority provides additional justificationbeyond that provided by the Executive Director in testimony before the Board onSeptember 30, 2014.

Should the County make its contribution before the close of the fiscal year, the Citieswill be due a refund for the difference of contributions paid "Without CountyContribution" and that due "With County Contribution" as shown on the table at

Attachment A.

The draft budget will be presented to the Water Authority for a detailed review anddiscussion in April or May, however, Authority members have expressed a desire tohave a preliminary budget estimate to allow the member jurisdictions sufficient time toconsider contributions to the MPRWA as part of their budget process.


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A preliminary estimate of the FY 2015-2016 is at Attachment B. It is based on anassumption that expenditures will be close to those we have experienced in FY 2014-2015. Note, however, that the slowdown in the CPUC process has constrained theutilization of Special Counsel this year and that situation is unlikely to reoccur next FY.

The preliminary contributions to be requested from each jurisdiction are at Attachment Cand were computed by subtracting the projected FY 2014-2015 year-end balance($100,000) from the estimated FY 2015-2016 budget of $390,000.

ATTACHMENTS:

A- Member Contributions for FY 2014-2015

B-Preliminary budget estimate for FY 2015-2016C-Projected Member Contribution for FY 2015-2016 with County Participation


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