Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

Director's Meeting

7:00 PM, Thursday, May 11, 2017

Council Chambers
580 Pacific Street, Monterey
Monterey, California

CALL TO ORDER

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
CONSENT AGENDA consists of those items which are routine and for which a staff
recommendation has been prepared. A member of the public or MPRWA Director may request
that an item be placed on the regular agenda for further discussion

1. Approval of Minutes from April 13, 2017 - Romero

2. Approve and File Authority Checks Through April 30, 2017 - Romero/Cullem

***End of Consent Agenda***

AGENDA ITEMS

3. Receive Update Presentation on PWM/GWR Status and Schedule - Sciuto / Stoldt

4. Receive Update, Discuss, and Provide Staff Direction on the People's Moss Landing
Desal Project - PML Representative

5. Receive an Update on the Summary Project Schedule for the Monterey Peninsula Water
Supply Project (MPWSP) and the Status of Test Slant Well Operations - Crooks

6. Consider Options for Improving Public Information and Outreach and Provide Staff
Direction - Cullem
 Thursday, May 11, 2017
7. Adopt the Budget for FY 2017-2018, Authorize a Return of $65,000 of Year-end Surplus
Funds as Credit Against Member Contributions, and Authorize Addition of Any Remaining
Surplus Funds to the Reserve Account - 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, speech-
to-speech, and Spanish-language services 24 hours a day, 7 days a week. If you require a hearing
amplification device to attend a meeting, dial 711 to use CRS to talk to the 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.

2
 M I N U TE S
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
Director's Meeting
7:00 PM, Thursday, April 13, 2017
COUNCIL CHAMBERS
580 PACIFIC STREET, MONTEREY
MONTEREY, CALIFORNIA

Directors Present: Director Dallas, Director Pendergrass, Director Roberson, Director Rubio,
President Kampe
Directors Absent: Director Edelen

Staff Present: Executive Director Cullem, Legal Counsel Freeman, Clerk Romero

CALL TO ORDER

President Kampe called the meeting to order at 7:05pm. He opened public comment for the
closed session, and receiving none adjourned meeting to closed session.

Adjourned to Closed Session

Adjourn to Regular Meeting

President Kampe reconvened to the regular meeting at 7:24pm, and stated there is nothing
reportable from the closed session evaluation of MPRWA contract employees Don Freeman
and Jim Cullem.

ROLL CALL

Director Edelen was absent. Director Roberson arrived at 7:40 pm.

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

None.

PRESENTATIONS

1. Presentation of Certificate of Appreciation to David Pendergrass for Outstanding Service to the

Community as a Founding Member of the Water Authority Kampe
Action: Presented certificate

President Kampe read the certificate of appreciation and presented it to Director Pendergrass
for his many years of support of the MPRWA. President Kampe also acknowledged that Mayor
Pendergrass is the longest serving Mayor in California, serving Sand City for 39 years.

Director Pendergrass said that the MPWRA was formed when the previous water supply project
failed. He has seen MPRWA succeed in many areas, including postponing the Cease and
Desist Order (CDO), the start of Ground Water Replenishment (GWR), and progress toward the
Desal project. He said he is proud of MPRWA for keeping a small staff and low operating
MPRWA Minutes Thursday, April 13, 2017

budget, and that its been an interesting journey.

PUBLIC COMMENTS

David Beech, gave comment on water bills doubling for the Monterey taxpayers. He said
that he and many others in the community feel that the Authority should advocate for the
ratepayers. He suggested that the Mayors have their finance departments request
billing information from California American Water (Cal Am) to find out where the money
is going. He also questioned the Authoritys support of Cal Am and its project.

Vince Sooth, resident of Aguajito Oaks, said he is surprised to discover that the
Authoritys lack of involvement on behalf of the ratepayers. He said he and others
reduced water consumption as requested during drought, and yet his water bill has
doubled. He voiced frustrated that the Authority is supportive of Cal Am despite the
public outrage.

Chuck Check, resident, said he sent a letter to the editor of the newspaper about his
dismay in the increase in water rates. He said Cal Am recently submitted a request to
the CPUC to request an additional $15 million to collect from residents and businesses
for water they don't own and never delivered. He said he calculated that the cost of
water for Cal Am ratepayers will increase to $200 or more per month.

Michael Baer, resident, said that there is more outrage from the public about the high
cost of water in this area. He said that Monterey has some of the highest water bills in
the country.

Mary Kay Norsing, Aguajito Oaks Neighborhood President, said that she is speaking on
behalf of her neighborhood to say that everyone is very upset about the Cal Am water
bill increase and she would like to know what the MPRWA is going to do or not do about
it.

President Kampe explained that water rates are not in the jurisdiction of the MPRWA, but he
hears the concerns of the public. He said he recently met with the President of Cal Am as
public outrage started to erupt over water rate increases and discovered there are many factors
involved in the rate increase. He reported that residents can check their water bill and call Cal
Am if they are being billed for the wrong meter size and request to be billed based on the
residential rate. He continued that the California Public Utilities Commission (CPUC) is the
governing body that reviews public utility rates and those utilities whether owned publicly or
privately have the right to recover costs. He addressed public comment from Mr. Beech stating
that the Authority has had public discussions about the future role of the Authority, and clarified
that the Authority is not prohibited from speaking against Cal Am or other parties in the large
settlement agreement.

Director Roberson said that he will distribute the information for domestic use rates for
residents to all of the Monterey Neighborhood Associations. He concurred with President
Kampe that the CPUC makes the final decision on water rates.

CONSENT AGENDA

Monterey Peninsula Regional Water Authority

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 MPRWA Minutes Thursday, April 13, 2017

On a motion by Director Rubio, seconded by Director Dallas, and carried by the following vote,
the Monterey Peninsula Regional Water Authority Approved the Consent Agenda:

AYES: 5 DIRECTORS: Dallas, Pendergrass, Roberson, Rubio, Kampe

NOES: 0 DIRECTORS: None
ABSENT: 1 DIRECTORS: Edelen
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

2. Approval of Minutes from March 9, 2017 - Romero

Action: Approved

3. Approve and File Authority Checks Through March 31, 2017 - Romero
Action: Approved

4. Adoption of Resolution 2017- 01, Approving an Extension of the Contract for Executive
Director Services with Cullem Management Services LLC at a Price Not-to-Exceed $90,000 for
the Period July 1, 2017 to June 30, 2018 - Cullem
Action: Adopted Resolution 2017-01

5. Adoption of Resolution 2017- 02, Approving Donald G. Freeman as Legal Counsel through
June 30, 2018 and Authorizing the Authority President to Execute a Contract Extension with
Perry Freeman at a Price Not-to-Exceed $30,000 - Cullem
Action: Adopted Resolution 2017-02

6. Receive 3rd Quarter FY 2016-2017 Financial Status Report - Cullem

Action: Received report

***End of Consent Agenda***

AGENDA ITEMS

7. Receive an Update on the Summary Project Schedule for the Monterey Peninsula Water
Supply Project (MPWSP) and the Status of Test Slant Well Operations - Crooks
Action: Received update

Executive Director Cullem reported that since the Cal Am could not be present tonight the most
recent schedule from Cal Am will be provided. He said that the overall schedule is unchanged,
and Cal Am is waiting for the certification of the Environmental Impact Report (EIR) which they
estimate will be approved in about 6 months.

PUBLIC COMMENT

Michael Baer, commented that Cal Am isn't here because they are defending their rate
increase to the CPUC right now. He said that the Cal Am pipe bridge will be more
expensive than originally thought and doesn't think $50 million will cover the cost.

Monterey Peninsula Regional Water Authority

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David Beech, said he is concerned about the cost of the pipe bridge construction over
the highway and that during an earthquake the bridge is a safety hazard. He added that
Cal Trans said they won't have a public hearing regarding the bridge, and that Cal Am is
trying to cut corners.

Director Dallas said he would like another update from Cal Am and Cal Trans regarding the
status of the pipe bridge and to find out if there will be a public hearing.

President Kampe said that there is a governance committee that meets about the cost
implications for the MPWSP and he will request that the pipe bridge costs be agendized at the
next meeting.

8. Receive Copy of Public Water Now (PWN) Letter to the Water Authority and Approve Response
by the Board President Cullem
Action: Created subcommittee to revise and submit letter in response to Public Water
Now

Executive Director Cullem said that the Authority received a letter from Public Water Now
(PWN) and that the Authority should respond to the letter. He also noted that the Directors have
a copy of the letter that Cal Am wrote in response to PWNs letter.

PUBLIC COMMENT

None

Director Roberson suggested changes to the response letter to PWN to make it sound less like
political opinion and concentrate on the facts. President Kampe suggested revising the letter to
say that the slant wells have been operating for over a year instead of 2 years.

Executive Director Cullem pointed out that the issues regarding the DEIR brought up by PWN
would be more appropriate to be addressed the CPUC. President Kampe agreed, and said he
wants to make sure the response to PWN represents factual information in hopes of halting the
spread of misinformation.

Director Roberson made a motion to approve the letter with the revisions suggested.

Director Rubio said that from PWNs perspective they believe that their information is factual,
and suggested changing the wording to get the message across that any efforts, not only
PWNs efforts, to delay the project are detrimental for the community. President Kampe said it
is important to comment on the effort to delay the MPWSP and that it is appropriate for the
Authority to have a political opinion. He expressed concern that the CPUC may grow tired of
the continual delay in securing a water supply project and consequentially may implement
severe water rationing. He added this action may prompt people to stop obstructing the
MPWSP.

President Kampe suggested that he and Director Roberson create a subcommittee to revise
the response letter with the suggestions made and submit to PWN.

Monterey Peninsula Regional Water Authority

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On a motion by Director Roberson, seconded by Director Rubio, and carried by the following
vote, the Monterey Peninsula Regional Water Authority will create a Subcommittee of President
Kampe and Director Roberson to Revise and Submit a Letter in Response to Public Water
Now:

AYES: 5 DIRECTORS: Dallas, Pendergrass, Roberson, Rubio, Kampe

NOES: 0 DIRECTORS: None
ABSENT: 1 DIRECTORS: Edelen
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

9. Receive Report, Discuss, and Provide Staff Direction on Scope of Future Work for the Authority
Special Counsel, Adopt Resolution 2017-03, Approve Brownstein Hyatt Farber Schreck as
Special Legal Counsel through June 30, 2018, and Authorize the Authority President to Execute
a Contract Extension at a Price Not-to-Exceed $100,000 - Cullem
Action: Adopted Resolution 201-03

PUBLIC COMMENT

None

Executive Director Cullem reported that in the last 9 months Brownstein Hyatt Farber Schreck
(Russ McGlothlin) has only spent about 1/3 of the Special Legal Counsel (SLC) budget due to
their judicious use of time. He clarified that approving a not to exceed amount of $100, 000 per
year for SLC does not mean the Authority will spend that amount.

President Kampe said that Russ McGlothlin has had a great relationship with MPRWA and
continually goes above and beyond by looking ahead and giving advice on how to proactively
approach issues. He voiced appreciation for Mr. McGlothlins ability to collaborate and work
through the very complicated aspects of the MPWSP. Director Rubio added that Mr. McGlothlin
has navigated the MPRWA through the complex CPUC process.

Executive Director Cullem said that Mr. McGlothlin has been instrumental in steering the large
settling parties to a compromised agreement, from litigating against each other, and moving
forward together despite differences. Don agreed that Mr. McGlothlin is skilled in keeping all the
parties together and staying on track. He added that Mr. McGlothlins fees are a bargain for the
expertise he provides and his leadership role.

Director Roberson asked how the Authority decides when SLC is needed. Executive Director
Cullem responded that the decision is made between himself and the President when it is
important to have his expertise or SLC presence at certain meetings. He added that reviews the
invoices from SLC as they come in, then the amounts are approved by the Authority before
they are paid. Don affirmed that Mr. McGlothlin will be the first to let the Authority know when
his presence isnt needed at meetings and only goes when he and the President feel it's
absolutely necessary.

Director Roberson said he appreciates the estimated budget, and wants to know when legal
expertise is needed versus just planning, and why 90% of the SLC budget is spent on meetings
with the settling parties. Executive Director Cullem responded that legal counsel is needed in
decision making regarding the CPUC, and said that Mr. McGlothlin puts a substantial amount of
preparation into the settlement party meetings and is invaluable in keeping the parties on track.

Monterey Peninsula Regional Water Authority

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President Kampe responded with examples of matters that were settled with the 16 involved
parties with the guidance and expertise of SLC, such as desal plant sizing, federal
requirements for brine discharge, permits, and return water agreements.

On a motion by Director Rubio, seconded by Director Pendergrass, and carried by the following
vote, the Monterey Peninsula Regional Water Authority Adopted Resolution 2017-03, Approving
Brownstein Hyatt Farber Schreck as Special Legal Counsel through June 30, 2018, and
Authorized the Authority President to Execute a Contract Extension at a Price Not-to-Exceed
$100,000:

AYES: 5 DIRECTORS: Dallas, Pendergrass, Roberson, Rubio, Kampe

NOES: 0 DIRECTORS: None
ABSENT: 1 DIRECTORS: Edelen
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

10. Receive Report, Discuss, Approve a $10,000 Change Order for SPI, and Provide Staff Direction
on Comments Received on the MPWSP DEIR/DEIS- Cullem
Action: Approved $10,000 change order for SPI; (3-2-1, Dallas and Roberson voting no)

Executive Director Cullem recommended that the Authority approve a change order with SPI
(Separation Processes, Inc) and its sub-consultant Geosyntec to provide the Authority with its
analysis of key portions of the DEIR comments, in order to have an objective perspective from
an independent private consultant. He added that there is enough money in the existing budget
to approve the $10,000 change order for the independent review.

President Kampe asked for clarification that the ground water modeling issues are the most
important to have reviewed. Executive Director Cullem confirmed this and mentioned that SPI
may need to look at other aspects of the DEIR comments as well.

President Kampe explained that the Authority must decide what issues in the DEIR are the
most important to address, and also said he encourages the public to respond with their
concerns about the DEIR they want the Authority to address.

PUBLIC COMMENT

Michael Baer, says he encourages the Authority to keep open eyes and open ears to
the possibility of a different water project. He said that Cal Ams response letter to PWN
states that the slant wells are great and yet have only been operating and pumping
about 65% of the time over the past 2 years. He questioned the reliability of Cal Ams
claims. He said he feels the Authority did not get their money worth from the previous
SPI evaluation.

Monterey Peninsula Regional Water Authority

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MPRWA Minutes Thursday, April 13, 2017

David Beech, said that Cal Am isn't putting their own money into their project. He stated
that he submitted comments on the DEIR, and he gave the CPUC an alternate water
supply, which is Aquifer Storage Recovery (ASR) from the Salinas River. He opined that
the present Cal Am project should be terminated soon and taxpayer money will become
stranded costs.

Director Rubio responded to Mr. Beech saying that the suggestion of taking water from the
Salinas River and putting in Seaside Aquifer is prohibited, and the idea would not sit well with
the farmers in the community and it is prohibited, which is why the idea hasnt be considered.

Director Roberson questioned what advantage the Authority has to pay to analyze the
comments on the DEIR, and pointed out that the CPUC should be paying to analyze the DEIR
comments. Executive Director Cullem said the Authority must decide how much technical input
they want to have on the MPWSP. President Kampe reiterated that the CPUC will hire their
own experts to analyze all the comments, but emphasized that there is a need for the Authority
to engage Marina Coast Water District in dialogue regarding their objection to slant wells, as
well as to establish common ground. He added that analyzing the DEIR comments is important
in order to address the publics concern about the slant well feasibility, water quality, plant
sizing, as well as evaluating other sources of water aside from the desal plant. Further,
President Kampe stated that the Authority should evaluate the DEIR comments is to consider
whether the MPWSP should continue to be supported, if it is financeable, if there are potential
lawsuits over water rights, and to stay on top of the progress of the project.

Director Rubio said that Marina Coast Water District believes that the desal plant sizing is too
large, however he envisions a water supply solution that will last for future generations and so
far there are no other viable alternatives to the MPWSP. He added that the Authority should
take a technical look at the DEIR comments in order to remain informed on the MPWSP and
continue to respond to the public and to Cal Am. He said the analysis by SPI is needed to
understand the issues that Marina Coast has with the MPWSP, and if nothing else will provide
information to the public.

Director Dallas said he would like to hear Marina Coast Water Districts evaluation of the DEIR
instead of continuing to spend money to review the comments, and Director Roberson agreed.
Director Pendergrass said the mission of the Authority is to have a diversified portfolio
approach to the water supply, and already two out of three water projects have been
successful: Ground Water Replenishment and Aquifer Storage Recovery. He reiterated that it's
important to make sure the third project, the desal plant, is successful and not let it fail as
projects have in the past.

Director Roberson remarked that spending money on a SPI analysis will have no effect on the
CPUCs decision. He also commented that Peoples Moss Landing Project and Deep Water
Desal would need to use Cal Ams infrastructure for their projects to be successful.

Monterey Peninsula Regional Water Authority

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MPRWA Minutes Thursday, April 13, 2017

On a motion by Director Rubio, seconded by Director Pendergrass, and carried by the following
vote, the Monterey Peninsula Regional Water Authority Approved a $10,000 Change Order for
SPI to Provide Analysis of Comments Received on the MPWSP DEIR/DEIS:

AYES: 3 DIRECTORS: Pendergrass, Rubio, Kampe

NOES: 2 DIRECTORS: Dallas, Roberson
ABSENT: 1 DIRECTORS: Edelen
ABSTAIN: 0 DIRECTORS: None
RECUSED: 0 DIRECTORS: None

ADJOURNMENT

President Kampe adjourned the meeting at 9:17pm.

ATTEST:

Nova Romero, Clerk of the Authority MPRWA President

Monterey Peninsula Regional Water Authority

Director's Meeting Minutes - Thursday, April 13, 2017
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Monterey Peninsula Regional Water Authority Date: May 11, 2017
Agenda Report Item No: 2.

FROM: Executive Director Cullem

SUBJECT: Approve and File Authority Checks Through April 30, 2017

RECOMMENDATION:

It is recommended that the Authority approve and file the accounts payable payments
made during the period April 1, 2017 through April 30, 2017 with total payments for the
above referenced period of $33,930.41 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, as well as by the Water
Authority Treasurer and/or President as appropriate, 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:
$3,932.50 to Cullem Services, for March 2017
$8,750.00 to City of Monterey, for Quarterly Services: Clerk $7,250/Finance
$1,500
$4,496.26 to Brownstein Hyatt Farber Schrek, for Special Legal Counsel
$14,251.65 to Separation Process, Inc., for DEIR Review
$2,500 to Don Freeman, for May retainer

The bank balances as of April 30, 2017 is sufficient cover the above checks, therefore
staff is recommending approval.

BUDGET UPDATE:
None

ATTACHMENTS:
None
Monterey Peninsula Regional Water Authority Date: May 11, 2017
Agenda Report Item No: 3.

FROM: Executive Director Cullem

SUBJECT: Receive Update Presentation on PWM/GWR Status and Schedule.

RECOMMENDATION:

It is recommended that the Board of the Monterey Peninsula Regional Water Authority
(MPRWA) receive an update on the Pure Water Monterey/Groundwater Replenishment
(PWM/GWR) project.

DISCUSSION:

The Monterey Regional Water Pollution Control Agency (MRWPCA) has decided to re-
bid the contract for construction of the PWM/GWR project in an effort to get a lower
price. MPRWA representatives have offered to brief the Water Authority Board on the
implications for the schedule and impacts, if any, on the CDO milestones (Attach A).

ATTACHMENTS:

A- Extraction from CDO 2016-0016 (2 pgs)

06/12
ii. Seaside Groundwater Basin Limitations: The Board may adjust the Effective
Diversion Limit if an unexpected reduction in Cal-Am's production allocation from the
Seaside Groundwater Basin, or access to water pumped makes the supply unavailable.
The Applicants 16 may request such relief whenever they can establish that access to water
in the Seaside Groundwater Basin is limited due to unexpected mitigation measures
imposed pursuant to the Seaside Basin Watermaster's Seawater Intrusion Response Plan, or
by the court pursuant to the Seaside Groundwater Basin Judgment in response to a detection
of seawater intrusion within the Seaside Groundwater Basin.

111. Carryover: After October 1, 2015 if Cal-Am's diversions from the Carmel River during a
given water year are less than the Effective Diversion Limit for that water year, Cal-Am will
accumulate credit for the difference between the Effective Diversion Limit and Cal-Am's actual
diversions_ Additionally, Cal-Am may generate credits through instream flow agreements, as
described in 3.b.xii, below. Any such credit may be carried over to offset an exceedance of the
Effective Diversion Limit prior to December 31 , 2021, subject to the restriction in Paragraph
3.b.iv below, and subject to the overall cap on diversions in Paragraph 3.a.i., above.

iv. Cap on Carryover: The amount of carryover water accumulated under Paragraph
3.b.iii that may be credited in any one water year shall not exceed 750 afa.

v. Milestones: For purposes of calculating a reduction to the Effective Diversion Limit,

the following Milestones and Deadlines will apply:

Water Year Milestone11 Deadline

2015-2016 CPUC approval of (1) the Water Purchase Agreement for December 31 , 2016*
Cal-Am's purchase of Pure Water Monterey water, and of
(2) construction of the Cal-Am components of the Pure
Water Monterey conveyance facilities,18 including the
Monterey Pipeline and pump station.
2016-2017 Start of construction of the Cal-Am components of the Pure September 30, 2017
Water Monterey project, meaning commencement of
physical work after issuance of required regulatory permits
and authorizations to begin work.

16
"Applicants" refers to the joint applicants for the request to modify State Water Board Order WR 2009-0060: Cal-
Am, the Monte rey Peninsula Regional Water Authority, the Monterey Peninsula Water Management District, the
Pebble Beach Company, and the City of Pacific Grove.
17
If at any point prior to completion of the facilities listed in these Milestones the CPUC authorizes Cal-Am to acquire
more than 1,000 afa of water from an alternative source, then the following shall occur. Cal-Am shall submit to the
Executive Director within 60 days a revised set of milestones taking this water supply source into account. If the
proponents of the alternative project are unable to reach concurrence with Cal-Am on revised milestones to propose,
the proponents may also submit revised milestones within that time period. The Executive Director shall determine
whether to bring forward a recommendation to the State Water Board regarding amendment of the milestones.
18
"Cal-Am components" of the Pure Water Monterey Project refers to the pump station and pipeline within or leading
to Cal-Am's Service Area needed to transmit water to Cal-Am's service area.

20
 Water Year Milestone11 Deadline

2017-2018 Issuance of a Certificate of Public Convenience and September 30, 2018

Necessity to Construct the Monterey Peninsula Water
Supply Project Desalination Plant ("MPWSP Desalination
Plant") by the California Public Utilities Commission.
2018-2019 Start of construction for any of the Cal-Am Components of September 30, 2019
9
the MSWSP Desalination Plant1 , meaning commencement
of physical work after issuance of required regulatory
permits and authorizations to begin work.20
2019-2020 (1) Drilling activity for at least one MPWSP Desalination Plant September 30, 2020
source water production well 21 complete; (2) foundation and
structural framing complete for MPWSP Desalination Plant
pretreatment seawater reverse osmosis, and administration
buildings at desalination plant; (3) excavation complete for
MPWSP Desalination Plant brine and backwash storage
basins; and (4) 25% of MPWSP Desalination Plant
transmission pipelines installed based on total length,
including 100% installation of the "Monterey Pipeline and other
lASR related improvements".
2020-2021 For MPWSP Desalination Plant: (1) 50% of drilling activity September 30, 2021
complete for source water production wells based on total
number of wells required; (2) mechanical systems for brine
and backwash storage basins complete; (3) construction of
!filtered water tanks and finished water tanks complete; (4)
50% of transmission pipelines installed based on total length.
2021-2022 Substantial completion of the Cal-Am Components of the December 31, 2021
and beyond MPWSP Desalination Plant, meaning the Cal-Am Components
are sufficiently complete and appropriately permitted to allow
kielivery of MPWSP Desalination Plant produced potable water
~o Cal-Am's Monterey Main system, eliminating further Cal-
Am diversions of Carmel River water without valid basis of
right
* It is anticipated that this milestone will be achieved during Water Year 2015-2016. T he deadline
provides a three-month extension in the event that it occurs soon after the end of the water year.

vi. Reductions to the Effective Diversion Limit Based on Missed Milestones: The
following reducti:ms to the Effective Diversion Limit shall appty if an appli::able Milestone
Deadline is not met:

19
For purposes of this proposal the Cal-Am Components of the MPWSP Desalination Plant include: source water
groduction wells; desalination plant; brine disposal system; and transmission pipelines
0
Such work may include, among other things, any of the following: desalination plant site grading and preparation;
electric utility installation; yard piping; subsurface excavation for structural foundations; and transmission pipeline
installation.
21
Not including construction of the MPWSP Desalination Plant Test Well completed in 2015.

21
Monterey Peninsula Regional Water Authority Date: May 11, 2017
Agenda Report Item No: 4.

FROM: Executive Director Cullem

SUBJECT: Receive Update, Discuss, and Provide Staff Direction on the People's
Moss Landing Desal Project

RECOMMENDATION:

It is recommended that the Board of the Monterey Peninsula Regional Water Authority
(MPRWA) receive an update on the proposed People's Moss Landing Desal (PML)
Project and provide staff direction.

DISCUSSION:

On August 11, 2016, Both DWD and PML provided full presentations on the status of
their respective projects. Since the Water Authority has requested more frequent
information on these two alternative desal projects, representatives of both project
management teams were requested to provide a 15 minute update at the Water
Authority meeting of January 12, 2017. DWD provided an update to the Authority on
that date, but since PML was unable to attend either the January or February meetings,
an invitation was extended for the May 12 meeting.

Both project teams were requested to respond to the following questions:

1. What is the status of public ownership or participation?

2. What is the status of support/approval for project source water
prior to exhausting all alternatives for sub surface intake as required by
the CCC, SWRCB and CPUC?
3. What is the CEQA/NEPA status and timeline?
4. What is status of discussions with state/local permitting agencies?
5. What is the overall schedule for delivery of water to end user?
6. New information/developments pertinent to the project?

Additional information about Deep Water Desal and People's Moss Landing can be
found on the project web sites at www.deepwaterdesal.com and
www.thepeopleswater.com, respectively.

ATTACHMENTS:
None

06/12
Monterey Peninsula Regional Water Authority Date: May 11, 2017
Agenda Report Item No: 5.

FROM: Executive Director Cullem

SUBJECT: Receive an Update on the Summary Project Schedule for the Monterey
Peninsula Water Supply Project (MPWSP) and Status of Test Well
Operation and Pipeline Construction

RECOMMENDATION:

It is recommended that the Water Authority Board receive a report from Cal Am on the
latest "Summary" MPWSP schedule and on the status of the test well operation and
progress on the pipeline construction.

DISCUSSION:

Cal Am will provide the most recent Summary MPWSP schedule and discuss the status
of the test slant well and of the transfer pipeline construction.

Note that regular updates on the MPWSP are available at Cal Am's project web site:
www.watersupplyproject.org.

ATTACHMENTS:

None

06/12
Monterey Peninsula Regional Water Authority Date: May 11, 2017
Agenda Report Item No: 6.

FROM: Executive Director Cullem

SUBJECT: Consider Options for Improving Public Information and

Outreach and Provide Staff Direction

RECOMMENDATION:

Staff recommends the Water Authority consider options for improving communication
and information.

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

As a condition of contract approval in FY 2015-2016, staff and the consultant were

directed to meet with then 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 including
the following:

1. WEB Site Update

2. Draft Slant Well newspaper article
3. Coordination meeting with then WA Vice-President Kampe
4. Update Public Information handout
5. Updated Facebook page and posting of news

Also discussed was the sponsoring of a public forum on all water supply projects being
considered by various public agencies on the Peninsula.

The Public Outreach item was subsequently deleted from the FY 2015-2016 budget in
an economy move to reduce overall Authority expenditures.

06/12
Several Directors and members of the public requested the Authority consider options
for new public outreach and information initiatives during the FY 2017-2018 budget
deliberations.

FISCAL IMPACT:

This item is not currently included in the draft of the FY 2017-2018 budget.

ATTACHMENTS:

None
Monterey Peninsula Regional Water Authority Date: May 11, 2017

Agenda Report Item No: 7.

FROM: Executive Director Cullem

SUBJECT: Adopt the Budget for FY 2017-2018, Authorize a Return of $65,000 of

Year-end Surplus Funds as Credit Against Member Contributions, and
Authorize Addition of Any Remaining Surplus Funds to the Reserve
Account.

RECOMMENDATION:
It is recommended that the MPRWA Board Adopt the Budget for FY 2017-2018,
authorize a return of $65,000 of year-end funds as credit against contributions, and
authorize remaining surplus funds for the reserve account.

DISCUSSION:

At the April 13, 2017 Board meeting, the Executive Director provided the 3rd Quarter
2016-2017 Financial Status Report and noted that expenditures were well within budget
due primarily to delays in the CPUC EIR/EIS process which reduced the level of Special
Counsel support needed this year. As of this date, staff projects expenditures for 2016-
2017 to total approximately $225,000 vs a budget of $290,000.

Although involvement in the MPWSP approval process will likely pick up by mid-FY
2017-2018, including additional special counsel support from Brownstein and technical
support from SPI (Geosyntec), the Executive Director recommends adoption of a
budget identical to that for FY 2016-2017.

As suggested at the Board meeting on April 13, a major portion of this year's surplus
should be returned to the member jurisdictions as a credit against next year's
contributions.

Accordingly, the Director recommends that the Authority adopt the draft FY 2017-2018
budget at Attachment A, and rebate $65,000 to contributing jurisdictions as outlined at
Attachment B.

FISCAL IMPACT:

If the Authority votes to rebate $65,000, any additional year-end balance could be
added to the reserve account bring it to a total of approximately $100,000.

ATTACHMENTS:
A- Draft Budget for FY 2017-2018
B- Estimated Contributions for FY 2017-2018

06/12
 ATTACHMENT A

PROPOSED BUDGET for FY 2017-2018

EST. OPERATING EXPENSES $290,000

Administration and Clerical Services

Principal Office of Authority (Monterey) 0

Clerk of Board (Monterey) 29,000

Financial Services (Monterey) 6,000

Executive Director (Monterey) 90,000

Miscel Admin Expenses 500

Legal Services

Board Counsel (Freeman) 30,000

Special Counsel (Brownstein) 100,000

Contract Services

Public Outreach 0

Audit Services (Kaufman) 8,000

Televised Meetings (AMP) 3,000

Contract Services and Studies 10,000

Insurance 7,500

Travel Expenses 1000

Contingency 5000
 Requested Jurisdiction Contributions BUDGET REBATE REQUESTED CONTRIBUTION
FY 17-18
Distribution with
Member Jurisdiction County * $290,000
County of Monterey 30.40% $88,160 $19,750 $68,410.00
Carmel By the Sea 6.50% $18,850 $4,230 $14,620.00
Sand City 0.80% $2,320 $520 $1,800.00
City of Pacific Grove 13.10% $37,990 $8,520 $29,470.00
City of Seaside 14.80% $42,920 $9,620 $33,300.00
City of Monterey 33.00% $95,700 $21,450 $74,250.00
City of Del Rey Oaks 1.40% $4,060 $910 $3,150.00

Total Income/Budget 100% $290,000 $65,000 $225,000.00

* Computed from water years 2012-2014

Based on Year-end Surplus of $65,000 in FY 2016-2017

2016-2017which
whichreduced
reducedFY
FY2017-2018
2017-2018contributionsw
contributions