TAC MPRWA Agenda Packet 10-07-13

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AgendaMonterey Peninsula Regional Water Authority (MPRWA)

Technical Advisory Committee (TAC)Regular Meeting

10:30 AM, Monday, October 7, 2013Council 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. August 19, 2013

AGENDA ITEMS

2. Receive Report, Discuss and Provide Recommendations on Authority Work Plan - (Burnett)

3. Receive Update on the Status of the Ground Water Replenishment Project, Discuss KeyImpediments to the Project and Provide Recommendations for a Strategy of Support forThe Authority - (Cullem)

4. Consider and Provide Recommendations for Water Supply Projects Task List andSchedule - (Burnett)

ADJOURNMENT

The Monterey Peninsula Regional Water Authority is committed to include the disabled in all ofits services, programs and activities. For disabled access, dial 711 to use the California RelayService (CRS) to speak to staff at the Monterey City Clerk’s Office, the Principal Office of theAuthority. CRS offers free text-to-speech, speech-to-speech, and Spanish-language services24 hours a day, 7 days a week. If you require a hearing amplification device to attend ameeting, dial 711 to use CRS to talk to staff at the Monterey City Clerk’s Office at(831) 646-3935 to coordinate use of a device or for information on an agenda.

Agenda related writings or documents provided to the MPRWA are available for public



Created date 10/04/2013 1:05 PM Monday, October 7, 2013

2

inspection 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.



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

TECHNICAL ADVISORY COMMITTEE (TAC)Regular Meeting

2:00 PM, Monday, August 19, 2013COUNCIL CHAMBER

580 PACIFIC STREETMONTEREY, CALIFORNIA

Members Present: Huss, Israel, Narigi, Riedl, Riley, Stoldt, Burnett,

Members Absent: None

Staff Present: Legal Counsel, Executive Director, Clerk

CALL TO ORDERChair Burnett called the meeting to order at 2:03 p.m.

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM TAC MEMBERS

Executive Director Cullem reported on the Authority field trip to the Poseidon desalinationfacility in San Diego, CA and indicated future tours are possible if other members areinterested. Member Israel indicated he would be attending a conference in Southern Californiaand anticipates attending a presentation from Poseidon.

Chair Burnett reported on meetings with the Coastal Commission and thanked all parties

involved for their efforts during the California Public Utilities Commission settlement agreement.He then reported that commissioners from the CPUC were in Carmel and met with staff todiscuss water issues.

PUBLIC COMMENTS

Tom Rowley spoke expressing concern there were no written reports to coincide with theagenda and then spoke about the topic of public outreach discussed at the Director’s meeting.He requested that the Authority improve efforts at communicating a complete background ofwhy our community is in this situation, educating about the whole scope of the potential impactsif we don’t have water and clarifying that there are no easy solutions.

APPROVAL OF MINUTES

1. July 15, 2013Action: Approved

On motion, the TAC approved the Minutes of July 15, 2013 as presented. 6-0-0-1 Riley Abstained.



MPRWA TAC Minutes Monday, August 19, 2013

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AGENDA ITEMS

2. Discuss and Make Recommendations Regarding Public Funding OpportunitiesAction: Received Report and Discussed

TAC Member Stoldt presented the report noting this was an informational item. He walked theTAC members through a series of handouts detailed public funding opportunities for waterprojects. Opportunities included State Revolving Loans, Safe Drinking Water Revolving Fundand Proposition13 planning grants and loans. He indicated the projects that would be mostbeneficial would be the bi-annual state water bond, as well as Propositions 50 and 84 monies,some of which is awarded based on geographic region. Member Stoldt answered questionsfrom the TAC.

The item was opened for public comment. Nelson Vega requested clarification for what projectsare eligible for specific bond monies and if there were any for desal specifically. Having nofurther requests to speak, public comment was closed. Member Stoldt spoke to Mr. Vega’s

question, indicating the water is split for allocation for different types of water projects. Regionalmonies are supposed to be distributed to the region, which there will always be, and thedesignations are not known for the additional categories at this time.

The TAC discussed ways the Authority and local agencies could leverage efforts tocommunicate the community needs at the state level. The TAC agreed this item should berevisited, put on the priority list and recommended that the Authority assist with lobbying forstate funds.

3. Discuss and Provide Recommendations Regarding Progress of the Ground WaterReplenishment ProjectAction: Received Update and Discussed

TAC Member Israel reported as General Manager of the Monterey Regional Water PollutionControl Agency to provided an update on the Ground Water Replenishment project proposedby the MRWPCA. He spoke to the progress of the project in terms of technical activities, CEQAfeasibility studies, outreach activities including source water tours, policy activities and otherupcoming activities. He listed and spoke to three potential sources of water and a potentialcollaborative effort with the Marina Coast Water District. He reported that the feasibility study,is being finalized for release in the near future. The TAC discussed the proposed GWRschedule and any potential slippage. Mr. Israel noted the goal is to have an operation facilitywithin 1.5 years after proposal is accepted.

Mr. Israel outlined the following upcoming activities:

• Meet with CPUC environmental consultants to coordinate CEQA• Facilitate Additional source water meeting tours• Consider bids for leased equipment for pilot treatment testing

• Develop proposed project definition through ac opponent screening analysis.



MPRWA TAC Minutes Monday, August 19, 2013

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The item was opened to public comment. Nelson Vega questioned if the peninsula had a rightto use the water in the agricultural wash ponds. Mr. Israel indicated he has a meetingscheduled to determine that question but that Salinas Valley would likely have first right of thewater and any extra water would be available for the Peninsula but in the future, it could bedifferent. Sue McCloud spoke to the need to inform the public about proper disposal andpractices for things like pharmaceuticals. She then spoke to a documentary regarding the

Potomac that has parallels to local water issues and could be useful. Having no furtherrequests to speak, public comment was closed.

The TAC then discussed the water rights and the changes in water usage demands due toproduce operating facilities operating year round. This item was for information only and noaction was taken.

4. Receive Update on Local Efforts for Storm Water Mitigation (Information Only) - CullemAction: Received Update and Discussed

Executive Director Cullem spoke to the item and the significance of Areas of BiologicalSignificance (ASBS) in our area. Recent meetings have been about thinking of storm water as

feed water and determinations are underway to find out if there is enough capacity in theMPRPCA to process all storm water as waste water. Storm water is an issue all peninsula citieswill need to address. Mr. Israel spoke to the flows and the facility capacity and is advocating foran integrated plan. If successful, it could be a model for other cities in the future. The item wasopened to public comment and there were no requests to speak.

5. Approve Amendment to Meeting ScheduleAction: Approved

Executive Director Cullem spoke to the need to adjust the meeting time to facilitateadministrative changes and ensure efficient meeting schedules.

On motion by Member Narigi and Seconded by Member Riley and passed by the following vote, the TAC approved the changes to the meeting schedule as proposed, moving the meeting time to 10:30 a.m. on the first and third Monday of each month, with the second meeting as an optional meeting. 7-0-0-0

ADJOURNMENT

Respectfully Submitted, Approved,

Lesley Milton, Committee Clerk Jason Burnett, TAC Chair





Monterey Peninsula Regional Water AuthorityAgenda Report

Date: October 07, 2013

Item No: 2.

№08/12

FROM: Executive Director Cullem

SUBJECT: Water Authority Work Plan for FY 2013/2014

RECCOMENDATION:

Staff recommends that the TAC provide suggestions with respect to the proposed Water

Authority Work Plan for the balance of FY 2013/2014.

DISCUSSION:

Through September 1, 2013, the Monterey Peninsula Water Authority has focused its efforts on

securing a new peninsula water supply project and in endeavoring to keep the public informed

and involved in the process. Following the SPI studies, the April 2012 submission of a Cal Am

application to the CPUC for the MPWSP, a lengthy and tedious CPUC settlement process, and

close collaboration with the MPWMD amongst others, the Authority has accomplished the first

big step in obtaining a new water supply.

As we move further into FY 2013/2014, staff suggests the Authority focus on several important

tasks which remain:

Completion of Post-settlement activities and follow-up with settling parties through Oct 2015

• Assist passage of legislation to implement securitization and work collaboratively

with MPWMD and Cal Am to obtain Water Rate Relief Bonding and other public

funding to minimize costs to the ratepayer

• Work collaboratively with MPWMD and MRWPCA to approve and complete the

GWR project

• Take the initiative and develop a record of effort to obtain a CDO time extension free

of a rationing requirement

• Actively pursue public outreach and education efforts through our WA consultant in

cooperation with MPWMD and its Public Outreach Committee

• Pursue opportunities to increase the use of storm water in future water supply

projects







Item No: 3.

№08/12


SUBJECT: Receive Update on the Status of the Ground Water Replenishment Project,

Discuss Key Impediments to the Project and Provide Recommendations for a

Strategy of Support for The Authority

RECOMMENDATION:

Staff recommends that the TAC consider recommendations to the Water Authority as to how

best to support the Ground Water Replenishment (GWR) project proposed by the Monterey

Regional Water Pollution Control Agency (MRWPCA).

DISCUSSION:

Attached is a memo from Water Authority Vice-President Burnett to PCA General Manager

Keith Isreal requesting direction as to how best the Water Authority can support the PCA’s GWR

project.

At its next meeting, the Water Authority will likely include active support of GWR as an item in itsFY 2013-2014 work plan.

The TAC considered the issue of “net present value” for cost comparisons between GWR and

DESAL at it’s meeting of July 15, 2013. Additional issues as outlined by Jason Burnett now

need to be considered by the TAC.



Page 1 of 1

From : "Jason Burnett" <[email protected] > To: "Keith Israel" <keith@ mrwpca.com >, "Dave Stoldt" <dstold t@ mpwmd.net >Cc: "Jim Cullem" <[email protected] >, "Lesley M ilton" <lm [email protected] s >Sent: Friday , September 13, 2013 11:19:40 AM Subject: GW R fo r the TAC

Keith and Dav e,Tha nk you both fo r you excellent prese ntations last night. The W ater Auth ority will be finalizing our work plan to include moving GW R fo rward as one of the top three priorities (along with followingth rough on the settlem ent agreem ent an d en gaging on the CDO). The W ater Authority board asked that ,as chai r of the TAC, I move quickly to dev elop a plan fo r how we will enga ge on GW R. The refore, Iwould like to ask you both to give tho ught to ho w best the W ater Authority an d the TAC ca n en gage with the PCA an d the District on GW R.

In part icular, would you be able to come to the October 7th TAC m eet ing having iden tified a draft list of the key im pe diments to GW R combined with a timeline an d general plan for how we are workingthro ug h those impedimen ts?

M y list would include:--- Source W ater

W PA--- Longevity of water supply--- Evaluation of externalities--- others?

W e mig ht wan t to develop a W ater Authority position statemen t fo r GW R similar to how we developedone for desal.

I will be reaching out to Den nis Allion to have a sim ilar conversation but wanted to give you both timeto think ab out it before I do so .

Thank you ,Jason

Jas on K. Burnett831.238.0009 (cell)jason.burnett@ gmail.com

file://C ADocu ments and Settings\lmilton\Local Settings\Tem p\X Pg rp wise\524DEEE7COS... 10/4/2013





Item No: 4.

№08/12


SUBJECT: Consider and Provide Recommendations for Water Supply Projects Task List

and Schedule - (Burnett)

RECCOMENDATION:

Staff recommends that the TAC review and provide comments to the Water Authority with

respect to the attached Schedule and Task List for the MPWSP Post Settlement activities.

DISCUSSION:

Following the April 2012 submission of a Cal Am application to the CPUC for the MPWSP, a

lengthy and tedious CPUC settlement process was pursued leading to two multi-party

settlement agreements in August 2013. However, not all intervenors in the CPUC process

signed off. In addition, there still remains a legal and administrative process leading to a final

decision by the CPUC on the DESAL project in July 2014 and on the GWR project in June

2015.

Furthermore, the Water Authority will be actively involved with the securitization component ofthe MPWSP, including enabling legislation from Sacramento, and in obtaining public financing

for the project.

Lastly, the Water Authority will be actively supporting the efforts of the MRWPCA and the

MPWMD to bring the GWR project to a successful conclusion.

The current Schedule and Task List for the MPWSP Post Settlement activities is attached for

reference.

ATTACHMENTS:

Schedule and Task List for MPWSP Post Settlement, dated October 7, 2013.



October 7, 2013

015621\0002\10768534.1

Schedule and Task List for MPWSP Post Settlement

CPUC Calendar Dates

Task/Item Due/Calendar Date Action/Preparation Notes

Comments on

Settlement AgreementsDue

August 30, 2013 Complete

Reply Comments onSettlement Agreements

Due

September 13, 2013 Complete

PrehearingConference: Status ofSettlement Motion (ifany), of CEQA work

& other matters

September 16, 2013 Complete

Quarterly Check-in Callwith Settling Parties

October 2013 MPRWA In Progress

Informational Hearing

on SettlementAgreements December 2-3, 2013


January 2014 MPRWA

DEIR circulated forComment

February 28, 2014


April 2014 MPRWA

Comments on DEIRDue

April 14, 2014

Common OutlineOpening Briefs due

April 29, 2014

Reply Briefs due May 14, 2014

FEIR published June 17, 2014

ProposedDecision on Phase I

Mailed

July, 2014 Phase 1


July 2014 MPRWA

Commission Action onPhase I

August, 2014


October 2014 MPRWA

GWR Phase -Testimonyof Interested Parties

(from Settlement K)

December 2014


January 2015 MPRWA

GWR Phase -Settlement discussion

commencing (fromSettlement K)

January 2015

GWR Phase -Concurrent Rebuttal

Testimony (from

January 2015



October 7, 2013

015621\0002\10768534.1

Task/Item Due/Calendar Date Action/Preparation Notes

Settlement K)GWR Phase -

Evidentiary Hearings(from Settlement K)

February 2015

GWR Phase - Briefing

(from Settlement K)

March 2015


April 2015 MPRWA

GWR Phase - ProposedDecision (fromSettlement K)

June 2015


July 2015 MPRWA

GWR Phase - FinalDecision (fromSettlement K)

July 2015


October 2015 MPRWA



October 7, 2013

015621\0002\10768534.1

Securitization

Task/Item Due/Calendar Date Responsible Party(s) Notes

Draft Timeline andImplementation Plan

August 2013 MPWMD Complete

Meet with LegislativeDelegation re: Timelineand Implementation

Plan

August 2013 MPWMD & MPRWA Complete

Initial Revision andRedline of Legislation

Early September 2013 MPWMD Complete

Obtain Cal-Am Input onDraft Legislation

Late September 2013 MPWMD, MPRWA, &Cal-Am

In Progress

Retain NecessaryAdditional

Financial/LegalConsultants (Charles

Atkins)

October 2013 MPWMD In Progress

Revise FinancialComparison ofSecuritization v. Cal-Am

Financing

October 2013 MPWMD & Cal-Am In Progress

Meeting withCommunity/InterestGroups and Cities

October-December2013

MPWMD & MPRWA In Progress

Further ReviseLegislation as

Necessary

October-November2013

In Progress

Draft Summary ofLegislation

December 2013 MPWMD

Introduce Legislation January 2014

Lobbying Effort February-April 2014 MPWMD, MPRWA, &Cal-Am

Legislation Adopted April-May 2014Initial Draft of Motion for

Financing OrderApril 2014 MPWMD

Perform Analysis toDemonstrate Annual

Customer BenefitsExceed 1.0% of Total

Annual RevenueRequirement

April 2014 MPWMD & Cal-Am

Motion for FinancingOrder

May 2014 MPWMD

Obtain CPUC FinancingOrder

August 2014 Order on securitizationfinancing on satisfaction

of remaining criteriafrom Settlement K

Preliminary Discussionswith Bond Underwriters

September-December2014

MPWMD

Drafting ofdocumentation for bond

requests

September 2014-April2015

MPWMD & Cal-Am

Preliminary Discussionswith Rating Agencies

February-April 2015 MPWMD



October 7, 2013

015621\0002\10768534.1


Obtain Rating on WaterRate Relief Bonds

July-August 2015 MPWMD

Determine internal costsof Cal-Am and AW tocomply with

securitization structureto be included in ratesto Monterey Districtcustomers

July-August 2015 Cal-Am

Obtain Letters FromRatings AgenciesDemonstrating No

Impact to AmericanWater


Obtain Legal Opinionthat Securitization DoesNot Create a Taxable

Event for Cal-Am


Verification of AnnualCustomer Benefits

Exceed 1.0% of TotalAnnual Revenue

Requirement

July-August 2015 (orprior to Issuance of

Bonds)

MPWMD & Cal-Am

Cal-Am Creates SPE September 2015 MPWMD & Cal-AmWater Rate Relief

Bonds IssuedTBD

(End of 2015?)



October 7, 2013

015621\0002\10768534.1

GWR


File Motion for

Bifurcation of theGWR Decision

August 2013 MRWPCA Complete and Granted

Board Actions toApprove Revised

Governance CommitteeAgreement

October 2013 MPWMD, MPRWA,County, & Cal-Am

To be Completed inOctober

Executed Agreementsfor GWR Source Water

and/or DeclaratoryRelief

September-December2013

MRWPCA Meet & Confer inProgress

Draft WPA December 2013 MPWMD & MRWPCA

Obtain Representationsfrom DPH re Use of

Extracted GWR Water

December 2013 MRWPCA

Obtain Representationsfrom RWQCB re Use ofExtracted GWR Water


Storage Agreementwith Seaside Basin

Watermaster

December 2013 MRWPCA & MPWMD

GWR Basis of DesignComplete with At Least

10% Design


GWR Financing PlanSufficient for SRF

Funding

December 2013 MRWPCA & MPWMD

Agreement on Terms ofWPA

January 2014 Cal-Am, MRWPCA,&MPWMD

Perform RevenueRequirement Analysis

Including Any DebtEquivalency Effect

January - March 2014 MRWPCA & MPWMD

Perform Assessment ofGWR Positive and

Negative Externalitiesfor Any Premium

Showing

January - March 2014 MRWPCA & MPWMD

DEIR Circulated July 2014 MRWPCADilution WaterRequirements

July-October 2014 MRWPCA Needed for Cal-AmDesign

Project Approved andFEIR

October 2014 MRWPCA

All Permits for GWRConstruction Obtained

January 2015 MRWPCA



October 7, 2013

015621\0002\10768534.1

Source Wells


Drill ExploratoryBoreholes

Sept. 2013 – February2014

Cal-Am Complete

Commence

Hydrogeologic Studyand Technical Report

August 2013 Cal-Am / SVWC Draft completed.

Permits for CEMEXSite Test Well

January 2014 Cal-Am

Drill CEMEX Site TestWell

February 2014 Cal-Am

Results of Test WellOperation Obtained

February 2014 – February 2016

Cal-Am

Hydrogeologic Studyand Technical ReportComplete and Results

Filed with CPUC

June 2015Cal-Am

Necessary Agreements

from CEMEX forSource Wells

Nov. 2015, or sooner Cal-Am

All Necessary Permitsfor Construction of

Source Wells Obtained

Nov. 2015, or sooner Cal-Am



Documents

TAC MPRWA Agenda Packet 10-07-13