BOS Legislation Details (With Board Report) With Attachments a-D 09-30-14

8/11/2019 BOS Legislation Details (With Board Report) With Attachments a-D 09-30-14

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16Monterey County

Legislation Details (With Board Report)

File #: 14-1056 Name: MPRWA Presentation

Status:Type: General Agenda Item Scheduled PM

File created: In control:9/17/2014 Board of Supervisors

On agenda: Final action:9/30/2014

Title: a. Receive a report from the Monterey Peninsula Regional Water Authority (Authorit

Authoritys request for additional funding and participation by the County, and the Aplan, budget, and anticipated future expenses; andb. Provide direction regarding the Countys participation in and funding of the Autho

Sponsors:

Indexes:

Code sections:

Attachments: 1. Exhibit A, 2. Exhibit B, 3. Exhibit C, 4. Exhibit D

Action ByDate ActionVer.


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File #: 14-1056, Version: 1

Peninsula cities to ensure the timely development, financing, construction, operation, repair,of one or more water projects; and to ensure that the governance of such water projects includthat is directly accountable to water users.

The Authority was formed due to concerns regarding severe and increasing restrictions California Water Resources Control Board cease and desist order limiting pumping by the CaWater Company (Cal-Am) in the Carmel Valley Groundwater Basin, and a judicial order limthe Seaside Groundwater Basin. Cal-Am has been pursuing a regional desalination padditional water to its customers.

Since 34% of total water consumption in the Cal-Am Monterey Peninsula service area takesunincorporated areas of Pebble Beach and Carmel Valley, as well as unincorporated areas Monterey and Carmel, the Authority invited the County to become a member.

In recognition of the Authoritys efforts on behalf of County residents, the Board appcontribution of $83,300 to the Authority on September 11, 2012, based on the Authoritys FYof $245,245. On April 22, 2014, the Board approved the transfer of funds from General Fundmake this payment.

The Authority subsequently increased its FY 2012-13 budget to $476,726. The budget increahi i f i E i Di d f d d A f R d


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File #: 14-1056, Version: 1

Staff seeks direction regarding the Countys continued participation in the Authority, participation is directed staff seeks direction on future funding for Authority activities.

OTHER AGENCY INVOLVEMENT:Development of this report was coordinated with County Counsel. The Monterey PeninsulAuthority contributed information included in this report, and the Authoritys Executive Direwill be presenting the report.

FINANCING:The FY14-15 budget includes $153,000 for Authority membership, and the Authority is s

funding of $234,983 this fiscal year. If the Board selects to participate in the Authority, there to the General Fund of up to $234,983 and this action would require staff to acquire funprogram and return to the Board for approval at a later date. The Authority estimates the share in FY15-16 and FY16-17 to be $153,000 per year. Funding for future years costs willbudgets are formed.

Prepared by: Annette DAdamo, Management Analyst III; Ext. 3045

Approved by:


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MONTEREY PENINSULA REGIONAL WATER AUTHORITY

Previous Funds Committed / Paid

FY 12-13 83,300$ Paid - April 2014 from contingencies

Current Funds Requested with Monterey County @ 34%

SPI Contract (paid to Authority) 9,281$ Paid - August 2014 from FY14-15 budget allocati

FY 12-13 (additional funding) 78,700$

FY 13-14 144,051$

FY 14-15 155,951$

Total 387,983$

Amount included in County FY14-15 budget 153,000$

Shortfall in Requested Funding FY14-15 234,983$

Future funding requests - ESTIMATED

FY 15-16 153,000$ estimated

FY 16-17 153,000$ estimated


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September 12, 2014

Nicholas E. ChiulosAssistant County Administrative Officer

County of Monterey Administrative Office168 W. Alisal Street, 3rd FloorSalinas, CA 93901

Jason BurneBill Kampe, V

David PendergraJerry Edele

Chuck Della SRalph Ru

Execut

Jim

Re: Updated MPRWA Projected Budgets through FY 2017-2018

Dear Nick;

As requested, I am providing updated budget projections through FY 2017-20


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Septemb

We now expect legal expenses to remain at about $200,000 per year, and by istaff efforts to reduce other expenses, we hope to keep the total budget at $450,000 per fiscal year for the next 4 years. At 34%, the County fair-share

approximately $153,000 per year during that time period.

Please do not hesitate to contact me for discussion or additional information at8503 (cell) or [email protected].

Sincerely,

James M. Cullem P.E.Executive DirectorMPRWA

C: MPRWA Letter to the Board of Directors dated January 6, 2014
mailto:[email protected]:[email protected]


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January 6, 2014

Fernando Armenta, ChairMonterey County Board of Supervisors168 W. Alisal St.Salinas, CA 93901

Chuck Della SaJason Burnett, V

Ralph Rub

Jerry EdeleBill Kam

David Pendergr

ExecutJim

RE: Pro-Rata Share of Costs for Water Authority Representation and Invitation to Particip

Dear Supervisor Armenta:

As you know, the Monterey Peninsula Regional Water Authority (MPRWA) was cre


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Janu

Accordingly, the Water Authority hereby requests that the Board of Supervisorsrevision to its fair-share (pro-rata) contribution to the MPRWA budget for FY 2012-2013 in of an additional $78,700 and approve its pro-rata contribution to the MPRWA budget fo2014 in the amount of $144,000.

Sincerely,

Chuck Della Sala, PresidentMonterey Peninsula Regional Water Authority

C: Lew Bauman, County Administrative OfficerCharles McKee, County Counsel


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MONTEREY PENINSULA REGIOWATER AUTHORITY

Monterey Peninsula Water Supply


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MPRWA - The Mayors Authority

The Monterey Peninsula Regional Water Authority is a Joint Powers Authoriconsists of six peninsula cities: Carmel-by-the-Sea, Del Rey Oaks, Monterey

Grove, Sand City and Seaside, with Monterey County participating on the GoCommittee. Each city is represented by its Mayor.

Formed in January 2012 and amended in February 2013 to include Monterey

The purpose of the Authority is to ensure the timely construction of one or mprojects and to ensure governance that is accountable to water user


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The Water Issue35 years of searching for new water sources.

1995 Only entitled to 30% of current Carmel River use.

2003 Required to reduce Seaside basin withdraw.

2009 CDO for use of Carmel River water.

2010 Regional desal project approved by the state PUC.

2012 Application for new desal project

2017 January 1stCarmel River CDO goes into effect

2021 Restrict the use of Seaside Aquifer water


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Fair Share Contributions(based on metered water delivery per Cal Am)

Member Agency Contribution %

Carmel By the Sea 6.14%

Sand City .86%

City of Pacific Grove 12.40%

City of Seaside 14.50%City of Monterey 30.70%

City of Del Rey Oaks 1.40%

Monterey County 34.00%


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Budget of the Authority

FY 14-15 NOT INCLUDING $200,000 Reimbursable contract for ValueEngineering Services

Actual FY11-12

Actual FY12-13

Actual FY13-14

ProposFY 14-1

Operating Revenues 30,000 417,445 $441,529 45

Operating Expenses 17,994 422,183 319,744 45

Change in Net Position 12,006 -4,738 Pending


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$0

$100,000

$200,000

$300,000

$400,000$500,000

Actual FY 11-

12

Actual FY 12-

13

Actual FY 13-

14

Proposed FY

14-15

Total Annual Budgets By Fiscal Year


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Expenses: By Type, By YearExpenses By Type, By Year

$0

$50,000

$100,000

$150,000

$200,000

$250,000

Administra

tion

andClerical

Leg

al

Services

Contract

Services

Insura

nce

Trav

el

Expen

ses

Continge

ncy

Actual FY 11-12Actual FY 12-13Actual FY 13-14Proposed FY 14-15


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Expenses

$0

$50,000

$100,000

$150,000

$200,000

$250,000

Actual FY

11-12

Actual FY

12-13

Actual FY

13-14

Proposed

FY 14-15

Legal Expenses

Expenses: Special Legal Counsel


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Operating Revenues

OPERATING REVENUES ActualFY 11-12 ActualFY 12-13 Actual FY13-14 PF

Starting Balance from Previous FY $0 $12,006 $90,568

Contributions from Monterey County $0 $83,000 $0*

Fair Share Membership Fees $30,000 $417,445 $341,680

Reimbursements for ConsultantServices $0 $0 $9,281

Total Operating Revenue $30,000 $512,451 $441,529

*144,000 Requested for FY 13-14


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Operating Expenses, By Year

OPERATING EXPENSES

Actual

FY 11-12

Actual

FY 12-13

Pre-Final

FY 13-14

Pro

FYAdministration/Cler ical $264 $74,714 $94,141 $

Legal Services $17,700 $226,597 $169,184 $

Contract Services $0 $114,462 $481,52

Insurance $5,746 $6,702

Travel Expenses $30 $652 $828

Contingency

Pre-Final Expenses

$12 $734$121,785

$17,994 $422,183 $441,529 $


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Return on Investment (ROI) The most significant ROI was the participation and leadership prov

the Authority in the settlement agreements for MPWSP.

The Authority played a key role in development and pursuit of Stalegislation for securitization and public financing for desal, which cin excess of $50 million in savings to the ratepayers.

The Authority provided leadership in the formation of a GovernanCommittee which ensures public control of the desal project comp

The Authority continues to assist the MRWPCA with the GWR projwork with the City of Marina on the installation of source wells.


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July 2013 Settlement Agreement 16 Parties agree on:

Portfolio Approach Groundwater Replenishment Project Criteria

Financing Plan

Cost Caps for Desalination and Pipelines

Governance Committee for Desal

Hydrologic Studies, Environmental Factors,& Contingencies

9 Parties agree on desal plant size

Authority

Ca

County

District

MRWPCA

Key Local Parties to Settlem


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www.mprwa.org

Documents

BOS Legislation Details (With Board Report) With Attachments a-D 09-30-14