MPRWA Agenda Packet 03-12-15

Agenda
Monterey Peninsula Regional Water Authority (MPRWA)

Regular Meeting
7:00 PM, Thursday, March 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.
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" Monterey
Peninsula Water Supply Project Schedule - Crooks/Cullem
Thursday, March 12, 2015
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 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, February 12, 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, 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 a
future meeting if discussions are too long. President Burnett then invited reports from Directors
and Staff.
Executive Director Cullem spoke to the Director's request to discuss the Dana Point test wells
reporting the TAC discussed the item in depth at their February 2, 2015 meeting and
questioned 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 a

member of the Governance Committee due to the settlement agreement regarding
county debts for the failed regional desal project, questioning if there is a conflict of
interest. He then requested agendizing an update of Cal Am costs, to discuss the
feasibility question of slant wells and a discussion for the sunset of the Authority.
Tom Rowley also questioned when the Authority would request Senator Monning to
modify the Water Management District to add all land use jurisdictions. Suggested that
the president appoint an ad hoc committee to study the possibility.
Michael Warburton, Public Trust Alliance requested a discussion of reasonable
alternatives to a desal plant.
Nelson Vega indicated that many water solution projects have been attempted in the
last 30 years. He suggested revisiting the history of failed attempts for public education
and benefit.
CONSENT AGENDA
On motion by Director Edelen and seconded by Director Kampe and approved by the following
vote the Authority Directors approved the Consent Calendar as presented, Roberson Abstained
from Item 2.
AYES:
5 DIRECTORS
Burnett, Edelen Kampe, Pendergrass, Rubio
MPRWA Minutes
NOES:
ABSENT:
ABSTAIN:
RECUSED:
0
1
0
0
Thursday, February 12, 2015

DIRECTORS
DIRECTORS
DIRECTORS
DIRECTORS
None
Roberson
None
None
1.
January 8, 2015 Regular Meeting

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

Action: Approved
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
Action: Approved and Passed Resolution 15-01
Clerk Milton-Rerig spoke to the item and the terms of the contract extension with the City of
Monterey for Executive Director services that are reimbursed by the Authority. Executive
Director Cullem noted that this contract was for an 18 month term to fall in line with the fiscal
year. 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 exceed
contract price. Director Roberson expressed concern regarding timing, that he wanted to
discuss 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 Directors returned to the discussion of Agenda Item 3 and Clerk Milton requested the
following 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 a
total 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 revised
language as noted above, 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:
AYES:
NOES:
DIRECTORS:
Burnett, Edelen Kampe, Pendergrass, Roberson,

Rubio
DIRECTORS:
None
Monterey Peninsula Regional Water Authority
Regular Meeting Minutes - Thursday, February 12, 2015
2
MPRWA Minutes
ABSENT:
ABSTAIN:
RECUSED:
4.
0
0
0

DIRECTORS:
DIRECTORS:
DIRECTORS:
None
None
None
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 history
of 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 of
communications and relationships between local parties as well as state and governmental
agencies. Finally the document outlines the cost benefit analysis of the efforts of the Authority
as compared to the cost of operation since inception. He spoke to the savings to the public as a
result of the value engineering the public financing efforts. President Burnett gave significant
credit 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 the
Authority have ensured that water solution projects have moved forward. He spoke in
support of the efforts of the Authority Past President Della Sala and current President
Burnett.
Tom Rolwey agreed with Mr. Vega and urged representation on the Authority for the
unincorporated Monterey County residents.
Michael Warburton spoke to the public right to water and that more investigation and
public discussion is needed regarding reasonable alternatives.
George Riley spoke to the leadership role that the Authority has taken that is not
reflected in this document. He also spoke to the publicity the Authority has brought
regarding water issues with their efforts to educate the community about progress being
made. He disagreed that an accomplishment was the defeat of Measure O.
Steve Thomas Public Outreach Consultant with the Water Management District spoke to
the leadership and organizational capability that Dave Stoldt has brought to the District
and to the involvement of the Authority supporting the Pure Water Monterey project. He
disagreed with Mr. Vegas comment that the WMD had not produced a water project in
30 years, citing the successful ASR project that when it rained, it produced over 200
acre/ft of water.
This was for discussion purposes and not for action. Mayor Rubio requested this be turned into
a 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 to
the settlement agreements being pivotal to the progress of the projects. He spoke to the need
to 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 are
not left out of a project again, and spoke in support of all of the land use jurisdictions being
represented on the Water Management District Board.

3
MPRWA Minutes
Director Roberson questioned if the Authority has adgendized a discussion of merging with The
Water Management District to which President Burnet responded that the Board has drafted a
sunset plan of the Authority and that we should continue to discuss the productive partnership
that we have built and not do anything to distract or detract from the current efforts. The
Directors 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 the
Release of the DEIR and Other Changes and Decide on a Course of Action if Needed
Action: Tabled
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
Action: Tabled
7.
Receive Report On Monthly Reports To The Authority Board On Activities Of The Public
Outreach Consultant And Discussion Of Priorities.
Action: Tabled
8.
Designation of Alternate To Serve As A Representative of The Authority On The Governance

Committee.
Action: Tabled
9.
Receive Update, Discuss, And Provide Direction On Water Authority Participation In Obtaining
A 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 the
Board that the CDO, effective January 2017 requires Cal Am to cease pumping water from the
Carmel River and meeting that reduction without a new water supply would be disastrous for
our communities. The water available after the CDO would only be enough water to supply to
households and not businesses or other purposes. He reminded the Board that none of the
significant 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 successful
extension 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 additional
conservation efforts
4. Identification of consequences associated with missing milestones to keep motivated to
deliver a project.

4
MPRWA Minutes
President Burnett spoke to the documents provided at the meeting including a draft proposal
noting that the State is approximately six months way from taking action, therefore there is
significant opportunity for public discussion. He clarified that this document is a petition
between Cal Am and the State but the Authority we can vote to take a position of support of the
action and proposal. This proposal would not lead to water rationing as presented. President
Burnett and the Directors discussed the proposal.
Director Roberson questioned a herald article that the proposal was formal or informal to which
Eric Sabolcie, Cal Am General Manager agreed with President Burnett that the discussion was
not formal, it was a discussion of a solution, at a staff level. They have been working to get to a
point where there can be a future agreement. Legal Counsel Freeman reaffirmed that this is a
staff 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 would
impose consequences that would punish the rate payers instead of Cal Am.
Tom Rowley questioned the level of responsibility the PUC has for helping the
community to get a project on line, citing recently passed state legislation that requires
them to help the public.
John Narigi spoke representing the Coalition of Peninsula Businesses, spoke to the
need to vet the provided documents with the Board. He expressed the following
concerns:
o A 4 year extension is positive, but concerned that no new connections will freeze
our 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 us
support 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 the
possibility of penalties against the community and requested to see the options
regarding fines to compare rationing implications to fines. He also requested that ASR
be removed from the calculations as it is inconsistent.
Michael Warburton indicated the CDO was imposed for good reasons because the
environment was being damaged, but effort needs to be placed to find reasonable
solutions.

5
MPRWA Minutes
Closed public comment and answered questions from public comment.

Eric Sabolcie commented that the CDO does allow for the ability to negotiate alternate recovery
strategies, including the discretion to Bank ASR also that recently passed legislation may grant
the ability to not incur penalties if the CPUC caused project delays. . The Directors discussed
the draft proposal, the potential impacts as well as the critical path items that may impact the
successful completion of water solution projects.
Mayor Kamp encouraged the Directors to focus on ensuring our citizens have water to be able
to use, that we cannot let the CDO get in the way of finding a replacement source and that it is
hard to quantify reducing the investment now for the potential future impact later. This item was
for informational purposes and to gather direction.
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
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 reminded
the 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 of
pumping (aquifer test) can begin which provides immediate data. Once the hydrologist
approves 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 To
Staff.
Action: Report Received
Executive Director Cullem presented the report citing the Authority expenses of 28% of the
budget so far this fiscal year. He spoke to the current expected obligations through the
remainder 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 that
funding.
Director Rubio spoke to the need and importance for the Special Council, especially due to the
needed expertise regarding procedures of the CPUC. He spoke in support of Mr. McGlothlin's
experience. President Burnett and Executive Director Cullem also spoke in support of the
services provided by Mr. McGlothlin.
President Burnett invited public comment.
Tom Rowley spoke in support of the accomplishments of the Authority and with
disappointment of the slow payment of the County of Monterey and his disappointment
that Monterey County does not give much attention to Peninsula water issues.
Michael Warburton cited the Countys obligations that cover domestic use of water and
spoke to Mr. Rowleys agreement that they are responsible to all citizens in Monterey
County.
This was for information and direction.

6
MPRWA Minutes
12.
Discuss Implications Of An Earlier Start Time For Future Meetings

Action: Tabled
ADJOURNMENT
ATTEST:
Lesley E. Milton-Rerig, Authority Clerk
Jason Burnett, MPRWA President

7

Agenda Report
FROM:
Date: December 11, 2014

Item No: 2
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 payments
made during the period February 12, 2015 through March 11, 2015 with total payments
for the above referenced period of $30,393.43 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 financial obligations since the last
report for inspection and confirmation. 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.
$ 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 Counsel
Services.
$ 5,000.00 to Perry and Freeman for contracted monthly legal services (March
and 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
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%
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
26,484.85
125,515.15
17.42%
0.00
0.00
0.00
0.0%
215,000.00
46,484.85
168,515.15
21.62%
35,000.00
3,633.33
31,366.67
10.38%
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
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%
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%
0.00
0.00
0.00
0.0%
20,000.00
0.00
20,000.00
0.0%
658,680.00
219,051.57
-439,628.43
33.26%
0.00
1.65
-1.65
100.0%
Total 62800 Contract Services
66000 Payroll Expenses

68300 Contingency
Total Expense
Other Income/Expense
47220 Interest Earned
Page 1 of 1

Agenda Report
FROM:
Date: March 12, 2015

Item No: 3.
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
Ashley Belany from Environmental Relations PR has focused on

accomplishing the following activities through March 1, 2015:
1. WEB Site Reorganization and Update
2. Draft Slant Well and Draft "DESAL Alphabet Soup" newspaper articles
3. Coordination meeting with WA Vice-President Kampe
4. Update Public Information handout
5. Updated Facebook page and posting of news
6. Attend Water Authority and selected TAC meetings
The Executive Director has directed Ashley to continue prioritizing the
updates of the web page and social media sites, and preparation of
periodic newspaper articles to fill in the information void not covered by
reporters and other contributors such as Cal Am, the MRWPCA, and the
MPWMD.
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

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

Agenda Report
FROM:

Item No: 4.
Authority Clerk Milton
SUBJECT: Receive Report and Staff Recommendation On An Earlier Start

Time For Future Meetings
RECOMMENDATION:
It is recommended that the Water Authority Board retain the current time
and date schedule for its meetings.
DISCUSSION:
The issue of earlier start times for future Water Authority meetings was
raised at the meeting of January 8, 2015. Staff investigated the possibility
of doing so, and developed the following information:
1. The City of Monterey Historic Planning Commission uses the
Monterey Council Chambers from 4:00 to 6:30 PM on the same
Thursdays the Water Authority meets.
2. Due to prior scheduling commitments, AMP cannot provide us with
live meeting coverage earlier than 7:00 p.m.
Staff believes that since an earlier start time will require the Authority to find
a different venue it could negatively impact the public's ability to participate
and could cause confusion. Accordingly, the Executive Director
recommends the Water Authority meeting dates and times remain
unchanged at this time.
ATTACHMENTS:
None
06/12

Agenda Report
FROM:

Item No: 5.
SUBJECT: 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.
RECOMMENDATION:
It is Recommended that the Water Authority authorize the Executive Director to send a
letter 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 Monterey
Peninsula Water Management District in order to fully analyze the potential interactions
between Marina Coasts 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 Marina
Coast 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 to
best meet the needs of MCWD customers as well as those of Cal Am, construction of
Desal plants and or intake facilities which are likely to be in close proximity should be
closely coordinated.
Accordingly, it is recommended that the MPRWA board direct the Executive Director to
submit a letter to FORA requesting it direct MCWD staff coordination with the MPRWA
and MPWMD before taking any approval action on the MCWD Desal project. A draft of
the letter is at Attachment A.
ATTACHMENTS:
A- Draft letter from the MPRWA Executive Director to the FORA Board of Directors (To
be provided at or before the meeting)
06/12

Agenda Report
FROM:

Item No: 6.
SUBJECT: 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.
RECOMMENDATION:
It is recommended that the Water Authority Board receive 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:
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 to
meet the State Water Resources Control Board (SWRCB) CDO 2009-60
deadline of December 31, 2016.
Accordingly, representatives of the settling parties have been in discussion
with the SWRCB staff in an effort to develop proposals for a CDO
extension that would be acceptable to the public and have a reasonable
expectation of obtaining State Board approval.
Last year, the Authority Board selected Mayor Burnett to represent the
MPRWA in those discussions.
06/12
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 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.
Suspension of the reduction would be triggered by a joint written
statement from Cal Am, the MPWMD, and the MPRWA that the
milestone was missed for reasons outside our control. It is our
position that such a statement is to be assumed to be correct, and if
the SWRCB staff disagrees, the issue would be referred to the State
Board for a decision. In any case, the community retains its rights to
litigate the issue if necessary.
The Jan 14, 2015 Cal Am draft Proposal for an Extension was provided at
the February 12, 2015 Water Authority meeting and is available at the
Authority web site www.mprwa.org.
The Authority will report regularly on efforts and progress in helping Cal Am
obtaining the extension, and will continue to gather public input before the
Authority takes a formal position on a final draft proposal.

Agenda Report
FROM:

Item No: 7.
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 the
status 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 of
the "Summary Permits and Approvals" schedule.
ATTACHMENTS:
Current Cal Am "Summary" Schedule for Permits and Approvals
06/12
MPWSP Anticipated
Schedule
MPWSP
Anticipated
Schedule
2015
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
April
FEIR
October
PG LWP
CPUC
Decision
Feb.
CCC
Decision
Mid 2016
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
J F M A M J
SWRCB Current
CDO Deadline
Dec. 31, 2016
Start-up
Construction
CCC
Permit
App.
Jan.
RFQ/RFP &
Approve
DB Contractor
March to May
RWQCB
Application
Aug.
November
Start-up
Window
GWR
Construction & Commissioning
Draft Water
Purchase
Agreement
Q2
Testimony CPUC Evid.

Nov-Dec Hearings &
Briefings
Jan-Feb
CPUC Proposed
Decision &
Action
May-June
Pipelines / Tanks / BPS
Q3 to Q4
Start
Q3/Q4
Design, Land, Permitting & Contracts
Test Well
Const.
Production Wells
Slant Wells
Phase 1
Test Well Operation

Snowy Plover Nesting Season
Limited Construction Activity
Desal Plant

Design & Permitting
Slant Wells
Phase 2
Slant Wells
Phase 3

90% Final Start Construction
Q3 Q4 Q4-2016
Note: The schedule is based on the information and assumptions available at time of update and is accurate to +/-6 months.
(if needed)
Start-up Window
Partial or Full
Late 2018
Q2-2019
Updated January 26, 2015

Agenda Report
FROM:

Item No: 8.
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

Agenda Report
FROM:

Item No: 9.
SUBJECT: Receive Report, Discuss, and Provide Direction on Authority Legal

Expenses
RECOMMENDATION:
It is recommended that the Water Authority Board review the budgeted and actual
expenditures 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 were
provided 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 FY
2013-2014 Special Counsel budget for a total of $186,000. Actual expenditures at yearend 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 within
budget.
For FY 2015-2016 the budget for Special Counsel is estimated to be $150,000.
06/12
ATTACHMENTS:
A- Brownstein Hyatt Farber Schreck Estimated Budget for CY 2014
B- Brownstein Hyatt Farber Schreck Estimated Budget for CY 2015
Memorandum
DATE:
December 5, 2013
TO:
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 Monterey
Peninsula Regional Water Authority (Authority) with respect to: (1) the pending application by California
American Water for issuance of a Certificate of Public Convenience and Necessity from the California
Public 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 concerning
operation 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 is
segregated by quarter. Additional work, either for these proceedings, but beyond the matters listed, or
work unrelated to these proceedings, may necessitate expenditures beyond those estimated below.
The variance between the low and high estimates reflects the inherent uncertainty concerning the
scope 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.
015621\0002\10889833.1
Estimated Budget for CPUC A.12.04.019 and SWRCB CDO (2014)
Task/Matter
Quarter
Low
High
$6,000
$9,000
1
1
$8,000
$3,000
$12,000
$5,000
$500
$2,000
1
1
$6,000
$8,000
$31,500
$9,000
$12,000
$49,000
Opening and Reply Briefing

Review and Correspondence re Final EIR
Comments on Proposed Decision
Securitization Legislation
2
2
2
$10,000
$3,000
$10,000
$3,000
$15,000
$5,000
$15,000
$5,000
Ex Parte Meeting(s) (Not Certain)

Prepare for and Attend Quarterly Check-in Call with Settling
Parties
Efforts re Modification of CDO
General Case/Matter Management Issues
Subtotal Q2
$6,000
$9,000
$500
$2,000
2
2
$6,000
$8,000
$46,500
$9,000
$12,000
$72,000
$3,000
$6,000
Review and Correspondence re CPCN Phase I

Parties
Subtotal Q3
$4,000
$6,000
$500
$2,000
3
3
$6,000
$8,000
$21,500
$9,000
$12,000
$35,000
$10,000
$15,000
$500
$2,000
4
4
$6,000
$8,000
$24,500
$9,000
$12,000
$38,000
$124,000
$194,000
Briefing on Settlement Agreement, Including Jurisdictional

Issues Pertaining to Governance Committee
Prepare and Submit Comments on Draft EIR
Securitization Legislation
Parties
Subtotal Q1
GWR Phase - Testimony

Parties
Subtotal Q4
Total 2014
2
015621\0002\10889833.1
3
015621\0002\10889833.1
Memorandum
Attorney at Law
805.882.1418 tel
805.965.4333 fax
RMcglothlin@bhfs.com
DATE:
February 5, 2015
TO:
FROM:
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 Peninsula
Regional Water Authority (Authority) with respect to: (1) the pending application by California American
Water for issuance of a Certificate of Public Convenience and Necessity from the California Public 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 concerning extension of
deadlines 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 work
performed in 2014 was $86,496. The lower than anticipated expense was, in part, the fact that many of the
projected 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 is
segregated by quarter. Additional work, either for these proceedings, but beyond the matters listed, or work
unrelated to these proceedings, may necessitate expenditures beyond those estimated below. The
variance between the low and high estimates reflects the inherent uncertainty concerning the scope of
necessary work. Where possible and appropriate we will seek to coordinate with other entities (e.g., CalAm and MPWMD) to ensure efficient and cost-effective representation.
1020 State Street

Santa Barbara, CA 93101-2711
main 805.963.7000
015621\0002\11886765.1
bhfs.com
Brownstein Hyatt Farber Schreck, LLP
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
Securitization
Subtotal Q1
1
2
1
1
$1,000
$1,000
$4,000
$6,000
$12,000
$2,000
$3,000
$7,000
$10,000
$22,000
Review, Correspondence, and Comments re Draft EIR for MPWSP

Opening Brief
Review, Correspondence, and Comments re Draft EIR, Draft WPA,
Draft Financing Plan, and Source Water Agreement for GWR
Securitization
2
2
$6,000
$8,000
$9,000
$14,000
$8,000
$14,000
$1,000
$3,000
$3,000
$6,000
Subtotal Q2
2
2
2
$1,000
$7,000
$8,000
$42,000
$2,000
$10,000
$12,000
$70,000
Reply Brief
Review, Correspondence, and Comments re Final EIR for GWR
Securitization
Subtotal Q3
3
3
3
3
3
3
$6,000
$3,000
$3,000
$1,000
$7,000
$8,000
$28,000
$9,000
$6,000
$6,000
$3,000
$10,000
$12,000
$46,000
Review, Correspondence, and Comments re Final EIR for MPWSP

Review, Correspondence, and Comments re Proposed Decision on
Phase I
Prepare CPUC Testimony for GWR (Phase II)
Securitization
Subtotal Q4
$4,000
$7,000
$6,000
$9,000
4
4
4
4
4
$8,000
$1,000
$1,000
$7,000
$8,000
$35,000
$12,000
$3,000
$2,000
$10,000
$12,000
$55,000
$117,000
$193,000
Total 2015
2
015621\0002\11886765.1

Agenda Report
FROM:

Item No: 10.
SUBJECT: Receive a Report, Discuss, and Provide Direction on Expected Credits

to City Contributions for FY 2014-2015 Subject to Receipt of Monterey
County Fair Share, and on an Initial Budget Estimate and Estimated
Member 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 Monterey
County does, in fact, forward its $155,951 fair-share contribution for FY 2014-2015, on
the 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 2014-2015
totaled $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-share
contribution of $ $155,951. However, although the Board of Supervisors approved a
contribution of $153,000 in its budget for FY 2014-2015, the Board has indicated it will
not authorize disbursement until the Water Authority provides additional justification
beyond that provided by the Executive Director in testimony before the Board on
September 30, 2014.
Should the County make its contribution before the close of the fiscal year, the Cities
will be due a refund for the difference of contributions paid "Without County
Contribution" 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 and
discussion in April or May, however, Authority members have expressed a desire to
have a preliminary budget estimate to allow the member jurisdictions sufficient time to
consider contributions to the MPRWA as part of their budget process.
06/12
A preliminary estimate of the FY 2015-2016 is at Attachment B. It is based on an

assumption that expenditures will be close to those we have experienced in FY 20142015. Note, however, that the slowdown in the CPUC process has constrained the
utilization 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 C
and 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 2015-2016
C-Projected Member Contribution for FY 2015-2016 with County Participation
100%
Total Income = Budget
34.00%
6.14%
0.86%
12.40%
14.50%
30.70%
1.40%
100%
Member Jurisdiction
County of Monterey
Carmel By the Sea
Sand City
City of Pacific Grove
City of Seaside
City of Monterey
City of Del Rey Oaks
Total Income + Budget
Approved %
Distribution
With County
0%
9.30%
1.30%
18.80%
22.00%
46.50%
2.10%
Member Jurisdiction
Monterey County
Carmel By the Sea
Sand City
City of Seaside
City of Monterey
Approved %
Distribution
Without County
MEMBER CONTRIBUTIONS for FY 2014-2015
$123,381
$335,299
$458,680
$123,381
$335,299
Adjusted Contributions
Contributions With
Carryover from after Rebate With
Monterey County
FY 13-14
County Contribution
$155,951
$0
$155,951
$28,163
$11,474
$16,689
$3,945
$1,604
$2,341
$56,876
$23,196
$33,681
$66,509
$27,144
$39,365
$140,815
$57,372
$83,443
$6,422
$2,591
$3,831
note #1- Slight difference from actual invoices
$458,680
Adjusted Contributions
Contributions Without Carryover from after Rebate Without
Monterey County
FY 13-14
County Contribution (1)
$0
$0
$0
$42,657
$11,474
$31,183
$5,963
$1,604
$4,359
$86,232
$23,196
$63,036
$100,910
$27,144
$73,766
$213,286
$57,372
$155,914
$9,632
$2,591
$7,041
BUDGET BALANCE FY 13-14

$458,680
$123,381
ATTACHMENT B- DRAFT PRELIMINARY BUDGET for FY 2015-2016

EST. OPERATING REVENUES
Membership Fees ( 6 Cities + County)
290,000
Other
( est carryover)
100,000
EST. TOTAL OPERATING REVENUES
$ 390,000
EST. OPERATING EXPENSES

Administration and Clerical Services
Principal Office of Authority (Monterey)
Clerk of Board (Seaside)
Financial Services (Seaside)
Executive Director
Miscel Admin Expenses
5,000
24,000
6,000
85,000
500
Legal Services
Board Counsel (Freeman)
Special Counsel (Brownstein)
36,000
150,000
Contract Services
Public Outreach (Environmental Relations)
10,000
Audit Services (Kaufman)
6,000
Televised Meetings (AMP)
5,000
Contract Services and Studies
30,000
Insurance
7,500
Travel Expenses
5,000
Contingency
20000
EST. TOTAL OPERATING EXPENSES
$ 390,000
ATTACHMENT B
Estimated Jurisdiction Contribution Assuming Coun
Member Jurisdiction
County of Monterey
Carmel By the Sea
Sand City
City of Seaside
City of Monterey
Total Income/Budget
Approved %
Estimated
Distribution
Contributions With
With County Monterey County
34.00%
$132,600
6.14%
$23,946
0.86%
$3,354
12.40%
$48,360
14.50%
$56,550
30.70%
$119,730
1.40%
$5,460
100%
$390,000
n Assuming County Participation

Estimated
Est Adjusted
Carryover from Contributions
FY 14-15
with County
$34,000
$98,600
$6,140
$17,806
$860
$2,494
$12,400
$35,960
$14,500
$42,050
$30,700
$89,030
$1,400
$4,060
$100,000
$290,000

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Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

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

Thursday, March 12, 2015

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

Receive a Report on Expected Credits to City Contributions for FY 2014-2015 Subject to

Burnett, Edelen Kampe, Pendergrass, Roberson, Rubio

Executive Director, Legal Counsel, Authority Clerk

George Riley expressed concern regarding the participation of Monterey County as a

Thursday, February 12, 2015

January 8, 2015 Regular Meeting

Approval of Checks Through February 12, 2015

Burnett, Edelen Kampe, Pendergrass, Roberson,

Thursday, February 12, 2015

Monterey Peninsula Regional Water Authority

Thursday, February 12, 2015

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

Monterey Peninsula Regional Water Authority

Thursday, February 12, 2015

Monterey Peninsula Regional Water Authority

Thursday, February 12, 2015

Closed public comment and answered questions from public comment.

Monterey Peninsula Regional Water Authority

Thursday, February 12, 2015

Discuss Implications Of An Earlier Start Time For Future Meetings

Lesley E. Milton-Rerig, Authority Clerk

Jason Burnett, MPRWA President

Monterey Peninsula Regional Water Authority

Monterey Peninsula Regional Water Authority

Date: December 11, 2014

Authority Clerk Milton

$ 1,125.00 to Access Monterey Peninsula

$ 1,300.00To Environmental Relations for Public Outreach services

Budget to Actual Report through March 1, 2015

Monterey Peninsula Regional Water Authority

Profit & Loss Budget vs. Actual

47240 Program Service Fees

47250 Reimbursement SPI Contract

47260 Reimburesment VE Contract

47200 Program Income - Other

60901 Clerk of the Board

60902 Executive Director

60903 Principal Offc of the Authority

60904 Financial Services

60905 Misc Admin Expenses

62800 Contract Services

62803 Televised Meeting

62804 Contract Services & Studies

62805 Contract SPI

62800 Contract Services - Other

65100 Travel Expenses

Total 62800 Contract Services

66000 Payroll Expenses

Monterey Peninsula Regional Water Authority

Date: March 12, 2015

Executive Director Cullem

SUBJECT: Receive Report on Monthly Reports to the Authority

Ashley Belany from Environmental Relations PR has focused on

Public Outreach Services

Update master plan for Public Outreach and Information

Establish and maintain contacts with the media

Propose and prepare periodic op-eds as needed

Develop and update audience specific handout materials

Update, expand Frequently Asked Questions for print and on website