10:30 AM, Monday, October 7, 2013 Council Chamber 580 Pacific Street Monterey, California
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
REPORTS FROM TAC MEMBERS
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 TAC and which is not on the agenda. Any person or group desiring to bring an item to the attention of the Committee may do so by addressing 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 appropriate staff 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 Key Impediments to the Project and Provide Recommendations for a Strategy of Support for The Authority - (Cullem)
4. Consider and Provide Recommendations for Water Supply Projects Task List and Schedule - (Burnett)
ADJOURNMENT
The Monterey Peninsula Regional Water Authority is committed to include the disabled in all of its services, programs and activities. For disabled access, dial 711 to use the California Relay Service (CRS) to speak to staff at the Monterey City Clerks Office, the Principal Office of the Authority. 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 staff at the Monterey City Clerks 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 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 T E S MONTEREY PENINSULA WATER AUTHORITY (MPRWA) TECHNICAL ADVISORY COMMITTEE (TAC) Regular Meeting 2:00 PM, Monday, August 19, 2013 COUNCIL CHAMBER 580 PACIFIC STREET MONTEREY, CALIFORNIA
Members Present: Huss, Israel, Narigi, Riedl, Riley, Stoldt, Burnett,
CALL TO ORDER Chair 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 desalination facility in San Diego, CA and indicated future tours are possible if other members are interested. Member Israel indicated he would be attending a conference in Southern California and 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 to discuss water issues.
PUBLIC COMMENTS
Tom Rowley spoke expressing concern there were no written reports to coincide with the agenda and then spoke about the topic of public outreach discussed at the Directors meeting. He requested that the Authority improve efforts at communicating a complete background of why our community is in this situation, educating about the whole scope of the potential impacts if we dont have water and clarifying that there are no easy solutions.
APPROVAL OF MINUTES
1. July 15, 2013 Action: Approved
On motion, the TAC approved the Minutes of July 15, 2013 as presented. 6-0-0-1 Riley Abstained. MPRWA TAC Meeting, 10/7/2013 , tem No. 1., tem Page 1, Packet Page 1 MPRWA TAC Minutes Monday, August 19, 2013
2
AGENDA ITEMS
2. Discuss and Make Recommendations Regarding Public Funding Opportunities Action: Received Report and Discussed
TAC Member Stoldt presented the report noting this was an informational item. He walked the TAC members through a series of handouts detailed public funding opportunities for water projects. Opportunities included State Revolving Loans, Safe Drinking Water Revolving Fund and Proposition13 planning grants and loans. He indicated the projects that would be most beneficial 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 questions from the TAC.
The item was opened for public comment. Nelson Vega requested clarification for what projects are eligible for specific bond monies and if there were any for desal specifically. Having no further requests to speak, public comment was closed. Member Stoldt spoke to Mr. Vegas question, indicating the water is split for allocation for different types of water projects. Regional monies are supposed to be distributed to the region, which there will always be, and the designations are not known for the additional categories at this time.
The TAC discussed ways the Authority and local agencies could leverage efforts to communicate the community needs at the state level. The TAC agreed this item should be revisited, put on the priority list and recommended that the Authority assist with lobbying for state funds.
3. Discuss and Provide Recommendations Regarding Progress of the Ground Water Replenishment Project Action: Received Update and Discussed
TAC Member Israel reported as General Manager of the Monterey Regional Water Pollution Control Agency to provided an update on the Ground Water Replenishment project proposed by the MRWPCA. He spoke to the progress of the project in terms of technical activities, CEQA feasibility studies, outreach activities including source water tours, policy activities and other upcoming activities. He listed and spoke to three potential sources of water and a potential collaborative 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 GWR schedule and any potential slippage. Mr. Israel noted the goal is to have an operation facility within 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 Meeting, 10/7/2013 , tem No. 1., tem Page 2, Packet Page 2 MPRWA TAC Minutes Monday, August 19, 2013
3 The item was opened to public comment. Nelson Vega questioned if the peninsula had a right to use the water in the agricultural wash ponds. Mr. Israel indicated he has a meeting scheduled to determine that question but that Salinas Valley would likely have first right of the water and any extra water would be available for the Peninsula but in the future, it could be different. Sue McCloud spoke to the need to inform the public about proper disposal and practices 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 further requests to speak, public comment was closed.
The TAC then discussed the water rights and the changes in water usage demands due to produce operating facilities operating year round. This item was for information only and no action was taken.
4. Receive Update on Local Efforts for Storm Water Mitigation (Information Only) - Cullem Action: Received Update and Discussed
Executive Director Cullem spoke to the item and the significance of Areas of Biological Significance (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 the MPRPCA to process all storm water as waste water. Storm water is an issue all peninsula cities will need to address. Mr. Israel spoke to the flows and the facility capacity and is advocating for an integrated plan. If successful, it could be a model for other cities in the future. The item was opened to public comment and there were no requests to speak.
5. Approve Amendment to Meeting Schedule Action: Approved
Executive Director Cullem spoke to the need to adjust the meeting time to facilitate administrative 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
MPRWA TAC Meeting, 10/7/2013 , tem No. 1., tem Page 3, Packet Page 3
Monterey Peninsula Regional Water Authority Agenda 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
MPRWA TAC Meeting, 10/7/2013 , tem No. 2., tem Page 1, Packet Page 5
Monterey Peninsula Regional Water Authority Agenda Report
Date: October 07, 2013 Item No: 3.
08/12
FROM: Executive Director Cullem
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 PCAs GWR project. At its next meeting, the Water Authority will likely include active support of GWR as an item in its FY 2013-2014 work plan. The TAC considered the issue of net present value for cost comparisons between GWR and DESAL at its meeting of July 15, 2013. Additional issues as outlined by Jason Burnett now need to be considered by the TAC.
MPRWA TAC Meeting, 10/7/2013 , tem No. 3., tem Page 1, Packet Page 7 Page 1 of 1 From: "Jason Burnett" <jason.burnett@gmail.com > To: "Keith Israel" <keith@mrwpca.com>, "Dave Stoldt" <dstoldt@mpwmd.net > Cc: "Jim Cullem" <j.ecull@comcast.net >, "Lesley Milton" <lmilton@ci.seaside.ca.us > Sent: Friday, September 13, 2013 11:19:40 AM Subject: GWR for the TAC Keith and Dave, Thank you both for you excellent presentations last night. The Water Authority will be finalizing our work plan to include moving GWR forward as one of the top three priorities (along with following through on the settlement agreement and engaging on the CDO). The Water Authority board asked that, as chair of the TAC, I move quickly to develop a plan for how we will engage on GWR. Therefore, I would like to ask you both to give thought to how best the Water Authority and the TAC can engage with the PCA and the District on GWR. In particular, would you be able to come to the October 7th TAC meeting having identified a draft list of the key impediments to GWR combined with a timeline and general plan for how we are working through those impediments? My list would include: --- Source Water WPA --- Longevity of water supply --- Evaluation of externalities --- others? We might want to develop a Water Authority position statement for GWR similar to how we developed one for desal. I will be reaching out to Dennis Allion to have a similar conversation but wanted to give you both time to think about it before I do so. Thank you, Jason Jason K. Burnett 831.238.0009 (cell) jason.burnett@gmail.com file://C ADocuments and Settings\lmilton\Local Settings\Temp\XPgrpwise\524DEEE7COS... 10/4/2013 MPRWA TAC Meeting, 10/7/2013 , tem No. 3., tem Page 2, Packet Page 8 Monterey Peninsula Regional Water Authority Agenda Report
Date: October 07, 2013 Item No: 4.
08/12
FROM: Executive Director Cullem
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 of the 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.
MPRWA TAC Meeting, 10/7/2013 , tem No. 4., tem Page 1, Packet Page 9 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 Agreements Due August 30, 2013 Complete Reply Comments on Settlement Agreements Due September 13, 2013 Complete Prehearing Conference: Status of Settlement Motion (if any), of CEQA work & other matters September 16, 2013 Complete Quarterly Check-in Call with Settling Parties October 2013 MPRWA In Progress Informational Hearing on Settlement Agreements December 2-3, 2013 Quarterly Check-in Call with Settling Parties January 2014 MPRWA DEIR circulated for Comment February 28, 2014 Quarterly Check-in Call with Settling Parties April 2014 MPRWA Comments on DEIR Due April 14, 2014 Common Outline Opening Briefs due April 29, 2014 Reply Briefs due May 14, 2014 FEIR published June 17, 2014
Proposed Decision on Phase I Mailed July, 2014 Phase 1 Quarterly Check-in Call with Settling Parties July 2014 MPRWA Commission Action on Phase I August, 2014 Quarterly Check-in Call with Settling Parties October 2014 MPRWA GWR Phase -Testimony of Interested Parties (from Settlement K) December 2014 Quarterly Check-in Call with Settling Parties January 2015 MPRWA GWR Phase - Settlement discussion commencing (from Settlement K) January 2015 GWR Phase - Concurrent Rebuttal Testimony (from January 2015 MPRWA TAC Meeting, 10/7/2013 , tem No. 4., tem Page 2, Packet Page 10 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 Quarterly Check-in Call with Settling Parties April 2015 MPRWA GWR Phase - Proposed Decision (from Settlement K) June 2015 Quarterly Check-in Call with Settling Parties July 2015 MPRWA GWR Phase - Final Decision (from Settlement K) July 2015 Quarterly Check-in Call with Settling Parties October 2015 MPRWA MPRWA TAC Meeting, 10/7/2013 , tem No. 4., tem Page 3, Packet Page 11 October 7, 2013 015621\0002\10768534.1 Securitization Task/Item Due/Calendar Date Responsible Party(s) Notes Draft Timeline and Implementation Plan August 2013 MPWMD Complete Meet with Legislative Delegation re: Timeline and Implementation Plan August 2013 MPWMD & MPRWA Complete Initial Revision and Redline of Legislation Early September 2013 MPWMD Complete Obtain Cal-Am Input on Draft Legislation Late September 2013 MPWMD, MPRWA, & Cal-Am In Progress Retain Necessary Additional Financial/Legal Consultants (Charles Atkins) October 2013
MPWMD In Progress Revise Financial Comparison of Securitization v. Cal-Am Financing October 2013 MPWMD & Cal-Am In Progress Meeting with Community/Interest Groups and Cities October-December 2013 MPWMD & MPRWA In Progress Further Revise Legislation as Necessary October-November 2013 In Progress Draft Summary of Legislation December 2013 MPWMD Introduce Legislation January 2014 Lobbying Effort February-April 2014 MPWMD, MPRWA, & Cal-Am
Legislation Adopted April-May 2014 Initial Draft of Motion for Financing Order April 2014 MPWMD Perform Analysis to Demonstrate Annual Customer Benefits Exceed 1.0% of Total Annual Revenue Requirement April 2014 MPWMD & Cal-Am Motion for Financing Order May 2014 MPWMD Obtain CPUC Financing Order August 2014 Order on securitization financing on satisfaction of remaining criteria from Settlement K Preliminary Discussions with Bond Underwriters September-December 2014 MPWMD Drafting of documentation for bond requests September 2014-April 2015 MPWMD & Cal-Am Preliminary Discussions with Rating Agencies February-April 2015 MPWMD MPRWA TAC Meeting, 10/7/2013 , tem No. 4., tem Page 4, Packet Page 12 October 7, 2013 015621\0002\10768534.1
Task/Item Due/Calendar Date Responsible Party(s) Notes Obtain Rating on Water Rate Relief Bonds July-August 2015 MPWMD Determine internal costs of Cal-Am and AW to comply with securitization structure to be included in rates to Monterey District customers July-August 2015 Cal-Am Obtain Letters From Ratings Agencies Demonstrating No Impact to American Water
July-August 2015 MPWMD Obtain Legal Opinion that Securitization Does Not Create a Taxable Event for Cal-Am July-August 2015 MPWMD Verification of Annual Customer Benefits Exceed 1.0% of Total Annual Revenue Requirement July-August 2015 (or prior to Issuance of Bonds) MPWMD & Cal-Am Cal-Am Creates SPE September 2015 MPWMD & Cal-Am Water Rate Relief Bonds Issued TBD (End of 2015?)
MPRWA TAC Meeting, 10/7/2013 , tem No. 4., tem Page 5, Packet Page 13 October 7, 2013 015621\0002\10768534.1
GWR Task/Item Due/Calendar Date Responsible Party(s) Notes File Motion for Bifurcation of the GWR Decision August 2013 MRWPCA Complete and Granted Board Actions to Approve Revised Governance Committee Agreement October 2013 MPWMD, MPRWA, County, & Cal-Am To be Completed in October Executed Agreements for GWR Source Water and/or Declaratory Relief September-December 2013 MRWPCA Meet & Confer in Progress Draft WPA December 2013 MPWMD & MRWPCA Obtain Representations from DPH re Use of Extracted GWR Water December 2013 MRWPCA Obtain Representations from RWQCB re Use of Extracted GWR Water December 2013 MRWPCA Storage Agreement with Seaside Basin Watermaster December 2013 MRWPCA & MPWMD GWR Basis of Design Complete with At Least 10% Design December 2013 MRWPCA GWR Financing Plan Sufficient for SRF Funding December 2013 MRWPCA & MPWMD Agreement on Terms of WPA January 2014 Cal-Am, MRWPCA, &MPWMD
Perform Revenue Requirement Analysis Including Any Debt Equivalency Effect January - March 2014 MRWPCA & MPWMD Perform Assessment of GWR Positive and Negative Externalities for Any Premium Showing January - March 2014 MRWPCA & MPWMD DEIR Circulated July 2014 MRWPCA Dilution Water Requirements July-October 2014 MRWPCA Needed for Cal-Am Design Project Approved and FEIR October 2014 MRWPCA All Permits for GWR Construction Obtained January 2015 MRWPCA
MPRWA TAC Meeting, 10/7/2013 , tem No. 4., tem Page 6, Packet Page 14 October 7, 2013 015621\0002\10768534.1 Source Wells Task/Item Due/Calendar Date Responsible Party(s) Notes Drill Exploratory Boreholes Sept. 2013 February 2014 Cal-Am Complete Commence Hydrogeologic Study and Technical Report August 2013 Cal-Am / SVWC Draft completed. Permits for CEMEX Site Test Well January 2014 Cal-Am Drill CEMEX Site Test Well February 2014 Cal-Am Results of Test Well Operation Obtained February 2014 February 2016 Cal-Am Hydrogeologic Study and Technical Report Complete and Results Filed with CPUC
June 2015 Cal-Am Necessary Agreements from CEMEX for Source Wells Nov. 2015, or sooner Cal-Am All Necessary Permits for Construction of Source Wells Obtained Nov. 2015, or sooner Cal-Am
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