TAC MPRWA Agenda Packet 04-04-16

8/18/2019 TAC MPRWA Agenda Packet 04-04-16

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AgendaMonterey Peninsula Regional Water Authority (MPRWA)

Technical Advisory Committee (TAC)Regular Meeting

10:30 AM, Monday, April 4, 2016Council Chamber580 Pacific Street

Monterey, California

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM TAC MEMBERS

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

APPROVAL OF MINUTES

1. Approve Minutes from January 27, 2016 – Romero

CONSENT ITEMSCONSENT AGENDA consists of those items which are routine and for which a staffrecommendation has been prepared. A member of the public or a Councilmember may requestthat an item be placed on the regular agenda for further discussion.

2. Receive "Notice to Parties" Concerning the CPUC Schedule for the Monterey Peninsula Water Supply Project (MPWSP) – Cullem

AGENDA ITEMS

3. Receive Update on GWR Schedule and Financing - Sciuto/Stoldt

4. Receive Report, Discuss, and Make Recommendations as to Whether Cal Am Can

Receive and Utilize Ground Water Replenishment (GWR) Water Should the PWM/GWRProject Come on Line Before Cal Am's Desal Facility - Crooks

5. Receive Suggestions from Authority President Jason Burnett on Modifications to the Policy

Position Statement and Discuss Progress of the TAC Ad Hoc Committee Considering Changes to the Statement - Cullem

ADJOURNMENT

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Created date 04/01/2016 10:16 AM Monday, April 4, 2016

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The Monterey Peninsula Regional Water Authority is committed to including the disabled in allof its services, programs and activities. In compliance with the Americans with Disabilities Act,if you need special assistance to participate in this meeting, please contact the Monterey CityClerk’s Office at (831) 646-3935. Notification 30 hours prior to the meeting will enable the Cityto 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. Forcommunication-related assistance, dial 711 to use the California Relay Service (CRS) to speak toCity offices. CRS offers free text-to-speech, speech-to-speech, and Spanish-language services 24hours a day, 7 days a week. If you require a hearing amplification device to attend a meeting, dial

711 to use CRS to talk to the Monterey City Clerk's Office at (831) 646-3935 to coordinate use of adevice.

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


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M I N U T E SMONTEREY PENINSULA WATER AUTHORITY (MPRWA)

TECHNICAL ADVISORY COMMITTEE (TAC)

Special Meeting12:00 pm, Wednesday, January 27, 2016

COUNCIL CHAMBER

580 PACIFIC STREETMONTEREY, CALIFORNIA

Members Present: Huss, Narigi, Van Der Maatten, Stoldt, Scuito, Riley, Cullem Members Absent: Riedl

Staff Present: Legal Counsel, Clerk

CALL TO ORDER

Executive Director Jim Cullem called the meeting to order at 12:03pm.

ROLL CALL

TAC Members Riedl and Stoldt were absent.

PLEDGE OF ALLEGIANCE

PUBLIC COMMENTS

Executive Director Cullem opened public comments:

• Tom Rowley, representing Monterey Peninsula Taxpayer Association (MPTA) spokeabout California American Water’s (Cal Am) proposed 8% water rate increase. Headded that the citizens need help lobbying on water rates and it’s time for the TAC andMPRWA (Monterey Peninsula Regional Authority) to look into this.

• Gary Cursio, co-Chair of Monterey County Hospitality Government Affairs Committee(MCHA), supports the Collation of Peninsula Businesses and voiced concerns aboutbuilding proper size desal plant and said MCHA is worried that it will be undersized.

With no further requests to speak Executive Director Cullem closed public comments.

REPORTS FROM TAC MEMBERS

Executive Director Cullem stated the Authority has taken action to co-apply with Cal Am andthe Water Management District and extension on the Cease and Desist Order (CDO). Headded that many of the major players on board have agreed and the milestones seem

reasonable.

Member Stoldt arrived at 12:11pm.

Member Narigi said the Coalition will be submitting a letter disputing the starting point of 8,310acre-feet per year(afy) as the acceptable Effective Diversion limit as proposed by theCommunity in the CDO extension apllication. Executive Director Cullem continued that theMonterey Peninsula Regional Water Authority (MPRWA) had a very significant meeting on Jan.10th. He reported that MPRWA gave support to Ground Water Replenishment (GWR), gave


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MPRWA TAC Minutes Wednesday, January 27,2016

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support to the Castroville Community Services District receipt of return water from the SalinasBasin, and gave support to the Surfrider’s memo regarding brine disposal. He said that what isfacing MPRWA now is the revised California Public Utilities Commission (CPUC) schedulewhich directs that rebuttal testimony be submitted by March 22nd and settlement discussionscommence, hopefully bringing Cal Am closer to the desalination (desal) project.

Member Narigi said that he is concerned that major decisions by the MPRWA were madewithout involvement from the TAC. He stated there are a lot of unanswered questions, such ascost, sustainability, environmental value of GWR, and the MPRWA did a disservice to theratepayers by pushing the GWR Water Purchase Agreement (WPA) forward.

Member Riley agreed with Member Narigi that he was surprised at the lack of involvement ofthe MPRWA with the TAC. He said he was concerned that the current lab composition of thetest well water was not posted and doesn’t think Cal Am is meeting the feasibility criteria.

Member Huss said he agrees with Riley’s concerns and wants to see the data from thehydrologist.


• Tom Rowley, representing Monterey Peninsula Taxpayers Association, said thepresentation given at the recent Director’s meeting gave a start date of July 1, 2019, forthe desal plant. He said he wants to know if we are going to have a small desal andGWR as backup.

• A member of the public said he wished to speak to Dave Stoldt after the meeting.

With no further requests to speak Executive Director Cullem closed public comments.

Member Sciuto responded to the question about the schedule for GWR, and said that GWRshould be ready in the 4th quarter of 2017, and Cal Am can start extracting and put it in thesystem in mid February, 2018.

Member Stoldt said that Water Purchase Agreement (WPA) has a performance start date andthe delivery start date for CalAm for immediate use.

Don Freeman directed the TAC back to the agenda items.

APPROVAL OF MINUTES

On a motion by Member Narigi, seconded by Member Riley, and carried by the following vote,the Technical Advisory Committee approved the November 16, 2015 minutes:

AYES: 4 MEMBERS: Narigi, Stoldt, Riley, Cullem

NOES: 0 MEMBERS: NoneABSENT: 1 MEMBERS: RiedlABSTAIN: 3 MEMBERS: Huss, Vandermaaten, SciutoRECUSED: 0 MEMBERS: None

1. Approve Minutes from November 16, 2015 – MiltonAction:Approved


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MPRWA TAC Minutes Wednesday, January 27,2016

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4. Receive Report, Discuss, and Make Recommendations on the Draft NPV Cost Comparisonsbetween a 6.4 Desal plus GWR vs 9.6 Desal Project, as Well as on the Draft ExternalitiesStudy – CullemAction: Received Report; Discussed

Member Stoldt gave a presentation on the Draft Net Present Value (NPV) comparisonsbetween a 6.4 desal plus GWR versus 9.6 desal project and the Draft Externalities Study. Hesaid there are realistic financial scenarios that benefit the ratepayer, and some do not. Headded that we have a Water Supply Project that could be economic and beneficial based on thecosts alone, and meets policy objectives. Mr. Stoldt continued that the Water Supply Projecthas received support from State Water Resources Control Board, Legislative Delegation, andAssembly Members. He stated there is a positive net present value to the social andenvironmental items and the externalities are favorable although the externalities are notincluded in the cost comparison.

Executive Director Cullem invited questions of the Board on Member Stoldt’s presentation.

Member Huss said that over the long term he favors the 9.6 desal facility plus GWR.

Member Narigi said on behalf of the Coalition, they favor the 3 prong approach to the WaterSupply Project but remain concerned about the cost to the ratepayer. He said that GWR is not aguarantee and it’s not a sustainable water source. He questioned if the Peninsula ratepayerswill be on the hook for paying for the unseen costs. He said the cost comparison numbers favorthe larger size desal facility with GWR as a backup and that is the direction the Authority shouldgo in.

Member Huss echoed his colleague’s concern about the cost of the project. Member Sciutosaid that his testimony will discuss sustainability.

Member Narigi said that Cal Am’s rate design is going to become an issue with residents, ontop of the additional costs of the Water Supply Project.

Member Riley questioned what is the 20 year cost replacement plan when the data showspump inefficiency over 18 months of testing.


• Tom Rowley, representing MPTA, said the community has a different set ofcircumstances now than in 2013. He voiced his concern about the ratepayers being onthe hook for the cost Water Supply Project and Monterey County should not becompared to Orange County. He urged the Authority and the TAC to lobby for State

bond money to pay for the project and not the ratepayers.

Receiving no further requests to speak Executive Director Cullem closed public comments.

5. Receive, Discuss, and Make Recommendations as Necessary on a CPM Schedule forPermits and Approvals for the Monterey Peninsula Water Supply Project (MPWSP) –CullemAction: Received Report; Discussed


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ATTACHMENT B

580 PACIFIC ST, ROOM 6 · MONTEREY · CALIFORNIA · 93940 · www.mprwa.org·

MONTEREY PENINSULA REGIONAL WATER AUTHORITY

March 31, 2016

Mr. Timothy SullivanExecutive DirectorCPUC505 Van Ness AvenueSan Francisco, CA 94102

Directors:Jason Burnett, President

Bill Kampe, Vice PresidentDavid Pendergrass, Secretary

Jerry Edelen, Treasurer

Ralph Rubio, DirectorClyde Roberson, Director

Executive Director:

Jim Cullem, P.E.

Re: Delay of the Release of the Revised and Re-circulated Draft Environmental ImpactReport and Environmental Impact Statement - Application A.12-04-019

Dear Mr. Sullivan:

On March 17, 2016, the California Public Utilities Commission’s Energy Division sent a Noticeto All Parties concerning an anticipated delay in the schedule for issuance of a re-circulated DraftEnvironmental Impact Report (DEIR) and Draft Environmental Impact Statement (DEIS) forApplication A.12-04-019, California American Water Company’s (Cal-Am) Monterey Peninsula WaterSupply Project (MPWSP). Under the new schedule, the re-circulated DEIR/DEIS is not anticipateduntil December 21, 2016, a final EIR/EIS will not be available until 10 months later (September 25,

2017), and certification of the EIR/EIS will not occur until November 8, 2017.

This extended delay is unacceptable. The original DEIR in this proceeding was published onApril 30, 2015. In September 2015, the Commission decided to revise and recirculate the DEIR as a

joint state/federal DEIR/DEIS in coordination with the Monterey Bay National Marine Sanctuary.Additional groundwater modeling is allegedly being undertaken in relation to anticipated groundwatereffects from the desalination plant’s source water slant wells. In addition, minor revisions to theproject description were recently submitted by Cal-Am to address aspects of the project that havechanged slightly. None-the-less, the extent of the delay appears excessive and the Notice providesno explanation for the delay. The MPWSP application has been pending for almost four years andthe predecessor project (the Regional Desalination Project from which much of the environmentalanalysis is copied) was filed more than eleven years ago.

The process must be expedited. The delay threatens the Monterey Peninsula’s water supply,which is in great jeopardy because of the California State Water Resources Control Board’s(SWRCB) pending cease-and-desist order (CDO) concerning Cal-Am’s diversions from the CarmelRiver. The CDO imposes an on-going water moratorium and the community faces a serious risk ofwater rationing because of the CDO’s diversion restrictions. The community’s social and economicwelfare is threatened as a result. The CDO presently requires that Cal-Am terminate allunauthorized diversions from the Carmel River by the end of 2016. Following negotiations with the


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SWRCB’s staff, Cal-Am, together with community leaders, recently submitted a proposal to extendthe CDO’s deadline until 2020.

The extension would allow for tight, but practical limits on river diversions during theextension period provided that specified project milestones are met. The first of these milestones isthe issuance by the Commission of a Certificate of Public Convenience and Necessity (CPCN) forthe MPWSP no later than September 30, 2017. The delay in the issuance of the EIR/EIS would

cause the community to miss the first milestone, a goal previously anticipated to be achievable.

The delay also prolongs the impact of Cal-Am’s ongoing diversions from the Carmel River tothe river’s riparian condition and its threatened Central Coast Steelhead population. Meanwhile,expenses associated with the MPWSP’s environmental review are climbing. Cal-Am has fundedmore than $6.3 million, which will be reimbursed by Monterey Peninsula ratepayers, for theenvironmental analysis to date. The importance of the MPWSP and the extensive efforts alreadyundertaken demand that the Commission employ all reasonable efforts to expedite the project.

Therefore, it is requested that the Commission withdraw the extended schedule and propose

a new schedule consistent with the critical importance of the MPWSP. If the Water Authority can

assist in efforts to hasten the process, please contact me at [email protected] or our

Executive Director, Jim Cullem, at [email protected] , phone 831-241-8503.

Sincerely,

Jason BurnettPresidentMonterey Peninsula Regional Water Authority


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Monterey Peninsula Regional Water AuthorityAgenda Report

Date: April 04, 2016

Item No: 3.

№06/12

FROM: Executive Director Cullem

SUBJECT: Receive Update on GWR Schedule and Financing

RECOMMENDATION:

It is recommended that the Water Authority TAC receive an update on thecurrent schedule and financing for the Pure Water Monterey (PWM) /

Ground Water Replenishment (GWR) project.

DISCUSSION:

At the Water Authority TAC meeting of April 4, 2016, the General Managersof the MPWMD and MRWPCA will provide an verbal update onPWM/GWR.

ATTACHMENTS:

None


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Item No: 4.

№06/12


SUBJECT: Receive Report, Discuss, and Make Recommendations as toWhether Cal Am Can Receive and Utilize Ground WaterReplenishment (GWR) Water Should the PWM/GWR ProjectCome on Line Before Cal Am's Desal Facility

RECOMMENDATION:

It is recommended that the Water Authority TAC receive a report, discuss,and make recommendations as to whether the Cal Am system is capableof receiving and utilizing Ground Water Replenishment (GWR) watershould the PWM/GWR project come on line before Cal Am's desal facility.

DISCUSSION:

If GWR comes on Line Before Cal Am's Desal facility does, there exists aquestion as to whether existing pipeline capacity can enable GWR water to

be delivered to Peninsula customers balancing demand with supply.

The TAC should discuss whether Cal Am's Hydrologic Barrier in OldMonterey will continue to constrain moving water north-to-south.

It also remains to be determined if there is sufficient demand north of thebarrier to utilize both GWR and Seaside Basin production.

ATTACHMENTS:

None


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Item No: 5.

№06/12


SUBJECT: Receive Suggestions from Authority President Jason Burnett onModifications to the Policy Position Statement and Discuss Progress of theTAC Ad Hoc Committee Considering Changes to the Statement

RECOMMENDATION:

Staff recommends that the Water Authority TAC consider recommendations from the

Water Authority President, Jason Burnett, on additions and changes to the WaterAuthority Policy Position Statement, and review the current efforts of the Ad Hoccommittee currently considering changes to the Statement.

DISCUSSION:

At its meeting of Mar 7, 2016, the TAC formed an Ad Hoc committee to developrecommendations for changes to the Policy Position Statement initially adopted by theWater Authority on July 11, 2013. Since then, Authority President Jason Burnett hasprovided some suggestions for incorporation into the Statement, or in whatever format

the TAC ultimately recommends to the Authority Board. These are at Attachment A.

ATTACHMENTS:

A- Jason Burnett's Suggested Edits for Policy Position Statement


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ATTACHMENT A

Jason Burnett's Suggested Edits for Policy Position Statement

SWRCB Cease and Desist Order (CDO) needs to be modified

• Effective Diversion Limit (EDL)

o Proposed 8310 acre feet per year (AFY)o PCL and Sierra Club proposed about 7700 AFY

• First proposed milestone re CPCN (September 30, 2017) may need to bemodified

• Community focus on meeting milestones over time

NOAA mitigation agreement needs to be modified

• Currently runs through early 2017• Needs to be extended by four years

• $1.1 million per year for river mitigation• Dr. Sullivan and Representative Farr

California Coastal Commission authorization to restart test well

• Data desired by farming community• We are told more data is not necessary for EIR• Continue to monitor salinity.

CPUC EIR/EIS needs to be proposed and finalized

• Proposed delay through end of 2017• Community is proposing workshop with CPUC• Letters from elected officials and groups

CPUC CPCN• Hopefully will follow settlements and subsequent decisions• May need to weigh in if not

City of Marina / CCC Coastal Development Permit

Permits from county and other cities

Ongoing legal challenges from Marina Coast / Ag Land Trust

Public Agency Coordination and Cooperation

• Provide support to the District re securitization and ensure debt

equivalency is not triggered


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ATTACHMENT A

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Documents

TAC MPRWA Agenda Packet 04-04-16