MPRWA Agenda Packet 03-13-14

Agenda Monterey Peninsula Regional Water Authority (MPRWA) Regular Meeting 7:00 PM, Thursday, March 13, 2014
Council Chamber 580 Pacific Street Monterey, California
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.
APPROVAL OF MINUTES 1. 2. January 30, 2014 Special Meeting - Milton February 13 2014 - Milton AGENDA ITEMS 3. 4. Approve and File Checks for the Period of February 2014. - Milton Authorize Staff to Send Letter Nominating the Salinas and Carmel River Basins Study for Funding Under the Bureau of Reclamation's FY14 Basin Study Program - Stoldt Adopt Resolution Approving Brownstein Hyatt Farber Schreck, LLP (Brownstein) as Special Counsel for the period January 1, 2014 through December 31, 2014, Authorize the Executive Director to sign a Consent and Waiver of Conflict of Interest, and Authorize the President to execute the agreement for legal services. - Cullem Authorize Extension of Contract with the City of Monterey For Executive Director Services - Milton Adopt Financial Policies and Procedures - Milton Receive Report, Discuss and Provide Direction Regarding Issues, Implications of Commissioning a Study Regarding a Public Take Over of Cal Am. - Cullem
5.
6.
7. 8.
9.
Receive Report, Discuss and Provide Recommendation on the Status of Monterey Peninsula Water Supply Project: a. Status of Borehole Construction b. Water Analysis c. Progress of Power Purchase Agreement with the MRWMD e. Revised CPUC Schedule - Cullem/Cal Am Representative 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 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 TE S MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) Special Meeting 7:00 PM, Thursday, January 30, 2014 COUNCIL CHAMBER 580 PACIFIC STREET MONTEREY, CALIFORNIA Directors Present: Directors Absent: Staff Present: ROLL CALL President Della Sala called the meeting to order at 7:17 p.m. and all members were present, including guests City of Marina Mayor Delgado and City Manager Long. PLEDGE OF ALLEGIANCE PUBLIC COMMENTS President Della Sala invited public comment for items not on the agenda. David Lifland expressed concern regarding the current drought emergency and encouraged requesting approval for use of the open water intake well option. Tom Rowley urged the Directors to thank the community for their past and continued conservation efforts. Nelson Vega expressed concern with the costs expended for the GWR project and the potential to trigger debt equivalency. Burnett, Edelen, Kampe, Pendergrass, Rubio, Della Sala None Executive Director, Legal Counsel, Clerk
Public Comment was closed and President Della Sala recognized that the region is doing a commendable job with conservation efforts. Director Burnett responded to Mr. Vega's question indicating the GWR project is less likely to trigger debt equivalency than originally thought. Director Kampe spoke to a presentation given by Cal Am regarding Cal Am billing practices and encouraged other member cities to request presentations during their City Council meetings. AGENDA ITEMS 1. Receive Report, Discuss and Provide Direction Regarding the Monterey Peninsula Water Supply Project Coastal Development Permit for Bore Holes in the City of Marina, California And Authorize Executive Director or Chair to Testify at Marina Public Meetings and to Submit a Letter of Support President Della Sala thanked City of Marina Mayor Bruce Delgado and City Manager Layne Long for attending the Special Meeting. Executive Director Cullem introduced the item explaining the critical elements needed to complete the environmental documents being prepared by the CPUC for the Monterey Peninsula Water Supply Project. This includes data derived from two bore holes to be drilled on City of Marina land. He further explained that Marina staffs municipal code interpretation regarding surface mining was a barrier and the scheduled meeting dates would delay the
MPRWA Minutes
Thursday, January 30, 2014
permit approval process passed the start of the snowy plover mating season, delaying the environmental impact report a minimum of 6 months and even further for the final project. The issue under discussion at this meeting was to determine the best course of action to be able to expedite the process within the City of Marina. Mayor Delgado and City Manager Long spoke in support of the efforts of Cal Am and the Authority but concluded that the Planning Commission acted as they did because they had incomplete information. They agreed to assist with expediting meeting scheduling. President Della Sala spoke to all the efforts to move the process forward in an expeditious manner and invited public comment on the item. Nelson Vega thanked Marina representatives for attending and spoke to the fact that many Marina citizens work on the Peninsula and would be severely impacted should the State impose the penalties of the cease and desist order and urged them to expedite the process for the benefit of their citizens. Rudy Rischer questioned if there is a program manager over seeing the numerous permits required for the project. John Narigi ,Chair of the Coalition of Peninsula Businesses and spoke to economic impacts of water rationing on vitality of the peninsula and the proportion of the Marina population employed by hospitality businesses. He urged any efforts to expedite the process to benefit both businesses and residents.
David Lifland spoke questioned why an already disturbed site should need CEQA mitigation.
The Directors thanked Mr. Delgado and Mr. Long for attending the meeting. They discussed the City of Marina meeting and appeals process, including appeal deadlines, specifically as it relates to the snowy plover mating season deadline and how long it takes to complete the bore holes. Rich Svinland from Cal am spoke to the nesting season that March 1st is the general guideline, but is dependent on the birds arrival. He noted that each bore hole takes 10 to 12 days to complete. The sample to be withdrawn is 7 liters of water. Director Kampe followed up and asked if Cal Am has a project manger shepherding the permits through to which Mr. Svinland responded since there is no approved project at this time, there is
no dedicated program manager for obtaining the numerous permits. Vice President Burnett spoke to the groups that are impacted by this project and the stakeholders in the settlement agreement and the desire to see it done right but that he does not understand
the current barrier as all of the local cities including the Salinas Valley, benefit from the gathering of this data, to inform the CPUC and the various interests. He noted the current, active state debate on how best to build desal facilities indicating it this project will affect statewide policy. He thanked the Marina representatives for agreeing to expedite the process, and encouraged the Planning Commission and the City Council to interpret the Ordinance 1755 in favor of the MPWSP and to continue to process the application for the coastal development permit.
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Thursday, January 30, 2014
Legal Counsel Freeman requested authorization to talk to City of Marina Attorneys to map out a timeline and any other alternatives that could be explored and other issues that could be clarified. The Directors came to a consensus to allow Legal Counsel Freeman to reach out to the City of Marina Legal Council to address the problem. Mayor Delgado indicated that the current challenge was due to a lack of information and informed representatives at previous meetings. He requested expert representatives to attend future meetings answer any necessary questions. On a motion by Director Rubio, seconded by Director Edelen and carried by the following vote, the Monterey Peninsula Regional Water Authority authorized a letter of support be submitted to the City of Marina, CA for approval of the Monterey Peninsula Water Supply Project Coastal Development Permit for Bore Holes in the City of Marina, California and authorize the Executive Director and Director Burnett to testify at marina public meetings.
AYES: NOES: ABSENT: ABSTAIN: RECUSED:
6 0 0 0 0
DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS:
Burnett, Edelen, Kampe, Pendergrass, Rubio, Della Sala None None None None
ADJOURNMENT The meeting was adjourned at 8:24 p.m.
ATTEST:
Lesley Milton, Authority Clerk
Chuck Della Sala, President
Monterey Peninsula Regional Water Authority Special Meeting Minutes - Thursday, January 30, 2014 3
M I N U TE S MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) Regular Meeting 7:00 PM, Thursday, February 13, 2014 COUNCIL CHAMBER 580 PACIFIC STREET MONTEREY, CALIFORNIA Directors Present: Alternate Director Carbone, Director Edelen, Director Kampe, Director Pendergrass, Director Rubio, Alternate Director Talmage, President Della Sala None Executive Director, Legal Council, Clerk
Directors Absent: Staff Present: ROLL CALL
The meeting was called to order at 7:00 p.m. PLEDGE OF ALLEGIANCE REPORTS FROM BOARD DIRECTORS AND STAFF PUBLIC COMMENTS Executive Director Cullem reported that the Authority presented the Certificate of Appreciation to Deanna Allen, former Finance Specialist during a Carmel By the Sea Council Meeting and that financial services are now under the administrative contract with the City of Seaside. He also reported that Authority interns and Public Outreach consultant Ashely Beleny participated at Whale Fest. He reported on additional activates of Ms. Beleny. Last, he reported that the County of Monterey has been invoiced for their fair share contribution due to their participation on the Governance Committee and when paid, will reduce all current member cities contribution rates. APPROVAL OF MINUTES On motion by Director Kampe and seconded by Director Rubio and passed by the following vote the Authority approved the minutes from January 14, 2014. AYES: NOES: ABSENT: ABSTAIN: RECUSED: 1. 4 0 0 2 0 DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: Edelen, Kampe, Rubio, Della Sala None None Carbone, Talmage None
January 9, 2014 AGENDA ITEMS
2.
Receive Annual Financial Report and a Full Opinion Audit for FY 2012-13 and 2012 from McGilloway, Ray, Brown and Kaufman (Kaufman) CPA; Approve a Modification to the Kaufman Contract to Complete the FY 2013-2014 Audit with a Completion Date of October 1, 2014 at an additional fee not-to-exceed $6,000; and Provide Direction to Staff.
MPRWA Minutes
Thursday, February 13, 2014
Executive Director Cullem introduced auditor Patricia Kaufman who presented the results of the financial audit. She informed the Directors she presented the findings listed in the Management letter in detail on January 23, 2014 to the Ad-hoc finance committee composed of Directors Rubio and Edelen. The Authority received an unqualified or "clean" opinion which means that the report is a fair representation of the Authoritys financial position and the current practices comply with Government Accounting Statements and Principles. She spoke to the management process, noting that as a new agency, it is understood there should be recommendations. They encountered no challenges performing the audit. She complimented the Director and staff for needing no adjustments, and being supportive and cooperative. Mrs. Kaufman answered questions from the Directors. President Della Sala invited public comment and had no requests to speak. On motion by Director Kampe and seconded by Director Rubio and passed by the following vote, the Authority approved the staff recommendation to receive the financial report and full opinion audit and approve the modification of the existing contract to extend services for two additional fiscal years. AYES: NOES: ABSENT: ABSTAIN: RECUSED: 3. 6 0 0 0 0 DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: Carbone, Edelen, Kampe, Rubio, Talmage, Della Sala None None None None
Accept and File Checks for the Period of December 31, 2013 through January, 31 2014 On motion by Director Rubio and Seconded by Alternate Director Carbone and passed by the following vote, the Authority accepted and filed checks for the period of December 31, 2013 thru January 31, 2014. AYES: NOES: ABSENT: ABSTAIN: RECUSED: 6 0 0 0 0 DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: Carbone, Edelen, Kampe, Rubio, Talmage, Della Sala None None None None
Director Kampe spoke to the administrative process of modifying the budget to be sure it is very clear where changes are happening. Executive Director Cullem spoke to future reports that will incorporate expenses and obligations and will be articulated in the policies and procedures. 4. Receive Report, Discuss, Provide Direction and Approve Resolution 2014-XX and Letter of Support for Senate Bill 936, and Authorize the Executive Director to Forward a Sample Resolution and Sample Letter for Consideration by Member City Councils.
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MPRWA Minutes
Executive Director Cullem spoke to the securitization issue that is critical to the substantial savings for the construction costs for the MPSWP, noting legislated changes are needed to enact. This action would provide a resolution of support to be sent to the state to encourage passage of Senate Bill 936. President Della Sala invited public comment and we have no requests to speak On motion by Director Rubio and seconded by Director Kampe and passed by the following vote, the Authority approved Resolution 14-01 and authorized sending a letter of support of Senate Bill 935 and authorizing staff to circulate approval to member cities. AYES: NOES: ABSENT: ABSTAIN: RECUSED: 5. 6 0 0 0 0 DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: Carbone, Edelen, Kampe, Rubio, Talmage, Della Sala None None None None
Receive Verbal Report, Discuss and Provide Direction to Staff Regarding the Bore Hole Permitting Process Executive Director Cullem spoke to the recent barriers to obtaining permits through the City of Marina which almost delayed the project a minimum of six months. He spoke to the purpose of the bore holes and their necessity to complete the environmental review for the MPWSP. He reported that the Marina Planning Commission interpreted their municipal code in a way that disallowed the request to extract water for mineral content testing as it violated the mining ordinance. Director Burnett, acting as representative of the Authority, appealed the decision to the City Council which held a special meeting on February 12, 2014 and approved the interpretation that no permit would be required by MPWSP if the bore holes were drilled on the Cemex property. This decision is not appealable, but is threatened by litigation. The next step would be to request the Administrative Law Judge to rescind the decision to delay the release of the environmental review. Director Burnett, Legal Counsels McLaughlin and Freeman and Executive Director Cullem Worked diligently to provide all necessary support to ensure this passed and did not delay and provided a classic example of the purpose of the Authority, to provide support for the permitting processes. Legal Counsel Freeman noted that this incident allowed the Authority to involve the State Water Resources Control Board regarding the challenges this project faces and they will better understand a request for extension of the CDO. He requested that the Authority work to identify any additional potential barriers to keep work from being done in crisis mode. Present Della Sala requested sending thank you letters to all involved including the City of Marina City Council for their the due deliberation and careful consideration of this item and for recognizing the time sensitivity to the movement of the project. Director Kampe spoke to the situation and how this truly is a regional problem. Mr. Cullem noted he will work to figure out a way to have better working relationships with all the impacted agencies, including keeping them apprised of next steps. Director Rubio suggested incorporation of the Marina Coast Water District into the project to make it a regional solution. Monterey Peninsula Regional Water Authority Regular Meeting Minutes - Thursday, February 13, 2014 3
MPRWA Minutes
Ian Crooks, Engineering Manager from Cal Am thanked the Authority for their support and the efforts provided by Director Burnett, Legal Counsels McLaughlin and Freeman and Executive Director Cullem. He indicated that the next big milestone is the slant test well, which is also delayed and is schedule to begin in November. Mr. Crooks committed to keeping the Authority updated and developing a strategy and schedule through completion. President Della Sala invited public comment on the item. David Lifland questioned drilling the test wells in November, instead of October and requested the Authority to keep an eye on costs to be passed on to the rate payer.
Executive Director Cullem requested authorization to work with Cal Am and other portfolio projects to revisit some of the critical path issues that may not have been anticipated to be proactive rather than reactive. Mr. Crooks spoke to the schedule that the Coastal Commission meets in the Central Coast region in November 2014 and that is when they expect to approve the test well environmental permissions, even through the environmental review will be completed in late spring. Director Edelen suggested that an earlier meeting be requested due to the time sensitivity of the project and that we should be timing to meet our needs and if they don't help, it gives us more amunition to request a delay. Legal Counsel Freeman indicated that the Authority staff will help to facilitate that request. In closing, all present Directors expressed appreciation to Director Burnett for his efforts on this issue. 6. Discuss Governor Brown's Proclamation Declaring a Drought State of Emergency and the Potential Local Implications Executive Director Cullem explained the purpose of this item to identify any components within Governor Browns proclamation that would be applicable to the current water supply projects which could be expedited. However, recent interpretations have revealed that because of the long-range project status, nothing significant could be done with regards to this proclamation to move the process forward faster than scheduled. President Della Sala invited public comment on the item. David Lifland spoke to the CEQA exemptions listed in the proclamation that might be applicable for the projects.
Legal Counsel Freeman indicated there has been a review of each code section and at this time, it does not appear that they would apply to the local projects. ADJOURNMENT
MPRWA Minutes
President Della Sala thanked all Directors, Staff and Authority affiliates for their participation with the City of Marina appeal process. Executive Director Cullem spoke to the retirement of Royal Calkins from the Monterey Herald and thanked him for the objective and fair coverage of efforts made by governmental organizations. The meeting was adjourned at 8:14 p.m.
ATTEST:
Lesley Milton, Authority Clerk
Monterey Peninsula Regional Water Authority Agenda Report
Date: March 13, 2014 Item No: 3.
FROM:
Authority Clerk Milton
SUBJECT: Approve and File Checks Through March 7, 2014 RECOMMENDATION: It is recommended that the MPRWA approve and file the accounts payable payments made during the period of February 1, 2014 through March 7, 2014. Total Accounts Payable for the above referenced period is $40,936.06. It is recommended that the Authority approve and file the below checks. DISCUSSION: At its meeting on September 12, 2013, the Authority Board approved a staff recommendation to provide the Directors a listing of general checks issued since the last report so that it can inspect and confirm these checks. Each invoiced expense has been reviewed and approved by the Executive Director and Finance personnel 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. $2,250 to Perry and Freeman For Legal Services for March $460 to Jim Cullem Reimbursement for City of Marina Appeal Fee $1,980 to McGilloway, Ray, Brown & Kaufman for Financial Audit Services $700 to Environmental Relations for Public Outreach Services $1,350 to Access Monterey Peninsula $34,196.06 to City of Monterey for Reimbursement of Executive Director Services
FISCAL IMPACT The listed checks have been budgeted and paid from the various funds, as appropriate and the Budget to Actual is below and lists all checks issued to date. The line item for Consulting Services is still exceeded due to the outstanding invoices from the Monterey Peninsula Water Management District and the County of Monterey for their fair share of the Separation Processes Inc. Services. The Audit services line item was exceeded with approval from the Board, for the addition of the Management Discussion and Analysis portion of the 2012-13 financial audit.
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Budget to Actual (as of 3/7/2014)
ADOPTED Budget FY 2013-14 Adopted Budget 13-14 Professional Services Legal Counsel Attorney of Record Staff Executive Director Studies Project Evaluation Contract Assistance Travel Public Outreach Insurance Audit Contingency Total Budget FY 13-14 $63,000 $100,000 $35,000 $94,680 $10,000 $20,000 $15,000 $5,000 $49,000 $7,000 $5,000 $20,000 Paid Invoices $20,250 $76,532 $35,000 $45,860 $0 $34,610 $0 $0 $8,811 $6,702 $6,700 $1,657 Remaining Balance $42,750 $23,468 $0 $48,820 $10,000 -$14,610 $15,000 $5,000 $40,189 $298 -$1,700 $18,343 $187,559
$423,680 $236,121
FROM:
Executive Director Cullem
SUBJECT:
Authorize Staff to Send a Letter Nominating the Salinas and Carmel River Basins Study for Funding Under the Bureau of Reclamations FY 14 Basin Study Program
RECOMMENDATION: It is recommended that the Monterey Peninsula Regional Water Authority (MPRWA) authorize Staff to send a letter nominating the Salinas and Carmel River Basins Study for funding under the Bureau of Reclamations FY 14 Basin Study Program. DISCUSSION: The following e-mail was sent by Dave Stoldt on February 14, 2014 requesting for a letter of nomination for the Salinas and Carmel River Basins Study: Four non-Federal partners here on the Central Coast have proposed to participate with the US Bureau of Reclamation in the development of the Salinas and Carmel River Basins Study, as indicated in the attached nomination letter. These agencies include the San Luis Obispo County Department of Public Works, the Monterey County Water Resources Agency, the Monterey Regional Water Pollution Control Agency, and the Monterey Peninsula Water Management District. These agencies have authority to manage water resources in their respective jurisdictions and are eligible to cooperate with Reclamation in the proposed study. The intent of this study is to evaluate the effects of global climate change on sustainable water supplies. This would include such factors as changing precipitation patterns, surface water runoff and basin recharge and sea level rise. Further, the basin study would develop appropriate adaptation strategies to meet the long-term discrepancies of water supply and demand under the effects of climate change. The Reclamation grant application process is a competitive one. I am asking you for a letter of support from your office or organization. Please provide a letter of support by the morning of February 18th if possible, via email, for inclusion in the final proposal. I have included a sample stakeholder letter attached to this email. Alternatively, if you intend to send a letter of support, but it will take more time, please send a note stating such and we will indicate in the proposal such support is coming. Dave Stoldt indicated that nominations after February 18th would still be helpful. ATTACHMENTS: US Department of Interior, Bureau of Reclamation, letter dated 6 Feb 2014 Sample stakeholder letter
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United States Department of the Interior

BUREAU OF RECLAMATION Mid-Pacific Regional Office 2800 Cottage Way Sacramento, CA 95825-1898
IN REPLY REFER TO :
MP-720 PRJ-6.00
FEB 06 2014
MEMORANDUM To: Director, Policy and Administration Attn: 84-52000 David G. Murillo "~~ Q. Regional Director
~O~
From:
Subject: Mid-Pacific Region Nomination for Basin Study Funding in Fiscal Year (FY) 2014 The MP Region is pleased to nominate the Salinas and Carmel River Basins Study for funding under the Bureau of Reclamation's FY14 Basin Study Program as described below. The MP Region is proposing to work cooperatively with four non-Federal partner agencies in the development of this basin study for FY14. The Salinas and Carmel River Basins include portions of San Luis Obispo and Monterey counties, as well as the Monterey Peninsula in California. The Salinas and Carmel Basins have a long history of periodic and prolonged droughts punctuated by devastating floods. With reliance on annual rainfall and limited upstream reservoir capacity, the Salinas and Carmel Rivers experience wide fluctuations in runoff. Historical groundwater production trends are leading to seawater intrusion in the north and groundwater level declines in the Paso Robles area. These conditions make the Salinas and Carmel River Basins particularly susceptible to the effects of climate change. Four non-Federal partners have proposed to participate with Reclamation in the development of the Salinas and Carmel River Basins Study, as indicated in the attached letters of interest. These agencies include the San Luis Obispo County Department of Public Works, the Monterey County Water Resources Agency, the Monterey Regional Water Pollution Control Agency, and the Monterey Peninsula Water Management District. These agencies have authority to manage water resources in their respective jurisdictions and are eligible to cooperate with Reclamation in the proposed study.
2 If you have questions or need information regarding our FY14 nomination of the Salinas and Carmel River Basins Study, please contact Ms. Michelle H. Denning, Regional Planning Officer, at 916-978-5062 or mdenning@usbr.gov. Attachments - 3 cc: 84-51000 (AMorgan, AErath, JGerman) MP-700 (MDenning, JKabir, RGanzfried, ANickel, SMcGinnis) (wiatt to each)
MONTEREY PENINSULA REGIONAL WATER AUTHORITY
February 18, 2014 David G. Murillo, Regional Director U.S. Dept. of the Interior Bureau of Reclamation Mid-Pacific Regional Office 2800 Cottage Way Sacramento, CA 95825-1898 Subject: Letter of Support for the Salinas and Carmel River Basins Study Dear Director Murillo,
Directors: Chuck Della Sala, President Jason Burnett, Vice President Ralph Rubio, Secretary Jerry Edelen, Treasurer Bill Kampe, Director David Pendergrass, Director Executive Director: Jim Cullem, P.E.
On behalf of The Monterey Peninsula Regional Water Authority, I would like to express our support for the Salinas and Carmel River Basins Study. It is our understanding that the intent of this study is to evaluate the effects of global climate change on sustainable water supplies. This would include such factors as changing precipitation patterns, surface water runoff and basin recharge and sea level rise. Further, the basin study would develop appropriate adaptation strategies to meet the long-term discrepancies of water supply and demand under the effects of climate change. It is paramount that the Basin Study program reviews all of the water resources in each basin under investigation to help determine the availability of water and to develop a better understanding of the potential solutions for the long term sustainability of these resources. We also encourage and support the collaborative effort of the partner entities for submitting this proposal. These partner entities include: Monterey County Water Resource Agency, San Luis Obispo County Public Works, Monterey Peninsula Water Management District and the Monterey Regional Water Pollution Control Agency. The study partner agencies and other stakeholders that represent various interests in the respective service areas are acutely aware of need to balance water supplies and demands for the environment, municipal, industrial, and agriculture. The deliverables from the Basin Study would have contributions from these entities and would assist in developing robust strategies for future considerations. We strongly encourage the Bureau of Reclamation to consider funding this important Basin Study project. Please contact me at {email address} and/or {phone number} of you have any questions or comments surrounding our support of this proposal. Sincerely,
580 PACIFIC ST, ROOM 6 MONTEREY CALIFORNIA 93940 www.mprwa.org
FROM:
SUBJECT:
Adopt Resolution Approving Brownstein Hyatt Farber Schreck, LLP (Brownstein) as Special Counsel for the period January 1, 2014 through December 31, 2014, authorize the Executive Director to sign a Consent and Waiver of Conflict of Interest, and Authorize the President to execute an agreement for legal services.
RECOMMENDATION: It is recommended that the Monterey Peninsula Regional Water Authority (MPRWA) adopt Resolution 2014-01 approving Brownstein Hyatt Farber Schreck, LLP as Special Counsel for the period January 1, 2014 through December 31, 2014, authorize the Authority Executive Director to sign a Consent and Waiver of Conflict of Interest, and authorize the President to execute an agreement with Brownstein for legal services. DISCUSSION: In March 2012, The Authority negotiated an agreement for legal services with Brownstein. The firm provided special expertise in water law, at a reduced rate, in support of Water Authority formation and activities. On January 9, 2014, the Authority authorized preparation of a Resolution approving Brownstein as Special Counsel through December 31, 2014. The Authority also approved budget adjustments to cover the cost of Brownsteins services through FY 2013-2014. In order for the President to sign the agreement, the Authority needs to adopt the resolution and to authorize the Executive Director to sign a Consent and Waiver of Conflict of Interest. BUDGET CONSIDERATIONS: Budget issues were addressed by the Authority at its meeting of January 9, 2014. ATTACHMENTS: Resolution 2014-xx Agreement for Legal Services with Exhibits A and B Consent and Waiver of Conflict of Interest
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RESOLUTION NO. 2014-XX A RESOLUTION OF THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY ACKNOWLEDGING BROWNSTEIN HYATT FARBER SCHRECK LLP AS SPECIAL COUNSEL OF RECORD FOR THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY, AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A CONSENT AND WAIVER OF CONFLICT OF INTEREST, AND AUTHORIZING THE PRESIDENT TO EXECUTE AN AGREEMENT FOR LEGAL SERVICES WHEREAS, Brownstein Hyatt Farber Schreck LLP (Brownstein) has been requested to represent the Monterey Peninsula Regional Water Authority (MPRWA) as Special Counsel; and WHEREAS, Brownstein is currently acting as Special Counsel for the City of Carmelby-the-Sea and the City of Seaside; and WHEREAS, Brownstein and MPRWA recognize the potential conflict of interest which may arise as a result of Brownsteins legal representation of MPRWA, the City of Carmel-bythe-Sea, and the City of Seaside; and WHEREAS, MPRWA wishes to acknowledge Brownstein as Special Counsel for MPRWA; and WHEREAS, the President of MPRWA and members of the MPRWA Board of Directors have reviewed a letter from Brownstein indicating that Brownstein does not believe that its legal services for the Monterey Peninsula Regional Water Authority will have any impact on its full and effective representation of each party, and does not believe it has knowledge of any confidential information from any party which would be material or relevant to its representation of MPRWA, the City of Carmel-by-the-Sea, and the City of Seaside; and WHEREAS, Brownstein recognizes that by concurrently representing the MPRWA, the City of Carmel-by-the-Sea and the City of Seaside an issue of divided loyalty, such as in litigation, could possibly arise at some future date, and that at that time it could be necessary for it to make full disclosure to all parties, could be subject to disqualification from representing any party, and at such time it would be necessary for each party to seek independent legal counsel; and WHEREAS, the City of Carmel-by-the-Sea and the City of Seaside have passed their respective Resolutions and their respective representatives have executed the Consent and Waiver of Conflict of Interest; and WHEREAS, the President and Board of Directors have reviewed this request with independent legal counsel; and
WHEREAS, according to Rule 3-310 of the California Rules of Professional Conduct applicable to California lawyers which requires informed written consent of all represented parties because of concurrent representation, MPRWA recognizes that Brownstein is the Special Counsel for the City of Carmel-by-the-Sea, and for the City of Seaside; and WHEREAS, Board of Directors wishes to authorize the Executive Director to execute a Consent and Waiver of Conflict of Interest, and hereby acknowledges Brownstein as Special Counsel for the Monterey Peninsula Regional Water Authority. NOW, THEREFORE, BE IT RESOLVED, that the Executive Director of MPRWA is hereby authorized to execute on behalf of MPRWA a Consent and Waiver of Conflict of Interest thereby acknowledging Brownstein as Special Counsel for the Monterey Peninsula Regional Water Authority. NOW, THEREFORE, BE IT FURTHER RESOLVED, that the President of MPRWA is hereby authorized to execute on behalf of MPRWA an agreement with Brownstein for legal services for the Monterey Peninsula Regional Water Authority. PASSED AND ADOPTED BY THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY this ____day of ____ 2014, by the following vote:
AYES: NOES: ABSENT: ABSTAIN:
0 0 0 0
DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: APPROVED:
ATTEST: Chuck Della Sala, President
Lesley E. Milton, Clerk to the Authority
EMPLOYMENT AGREEMENT FOR LEGAL SERVICES
THIS AGREEMENT, made and entered into this ___ day of _____________, 2014, by and between the MONTEREY PENINSULA REGIONAL WATER AUTHORITY, hereinafter MPRWA, and the LAW OFFICES of BROWNSTEIN HYATT FARBER SCHRECK, LLP, hereinafter referred to as "Attorney", both of which understand as follows: A. Term: The term of this Agreement shall be for one (1) year commencing January 1, 2014, and shall terminate on December 31, 2014, unless terminated pursuant to paragraph H. of this Agreement. B. Compensation. Attorney will provide legal services to MPRWA at no more than $400/hour for partners and no more than $300/hour for associates, for an approximate average rate of no more than $350.00 per hour, unless special services are required and are pre-approved with the MPRWAs Executive Director. C. Billing and Reimbursement of Costs. An accounting of services and hours will be provided to MPRWA on a monthly basis. Attorney shall be reimbursed for actual out-of-pocket expenses and costs advanced or paid on behalf of the MPRWA, including court reporter fees and charges, court costs, and costs of outside investigators or experts pertaining to MPRWA litigation. Travel to conduct MPRWA related business expenses shall be billed as actual out-of-pocket costs unless otherwise negotiated. There will be no charge for actual travel time. D. Budget. Attorney will not accrue costs for legal services in excess of $59,000 between January 1, 2014 and March 31, 2014 and in excess of $62,000 between April 1, 2014 and June 30, 2014 without prior approval of the Authoritys Executive Director. Services after June 30, 2014 are subject to adoption of an Authority budget for FY 2014-2015. E. Ordinary Services. Legal advice and legal opinions to MPRWA as outlined in the Amendment to Agreement for Legal Services dated December 5, 2013 (Exhibit A to this Agreement) and Brownstein Hyatt Farber Schreck, LLP Standard Terms and Conditions (Exhibit B to this Agreement). F. Miscellaneous. MPRWA recognizes that Attorney is a private law practice currently located in Santa Barbara, California, and will retain that office as its principal place of business. In addition, MPRWA recognizes Attorney also represents and advises other public entities upon request. Attorney will submit conflict waivers to MPRWA whenever such potential arise during the term of this contract. G. Termination. Either party may terminate this Agreement without cause by providing written notice to the other party in the manner set forth in item I. of this Agreement at least 30 days prior to the effective date of termination. H. Notices. All notices herein provided to be given, or which may be given by either
party to the other, shall be considered fully received when made in writing and deposited in the United States mail, certified and postage prepaid, and addressed to the respective parties as follows: MPRWA: President, Board of Directors Monterey Peninsula Regional Water Authority 580 Pacific Street Monterey, CA 93940 ATTORNEY: Russell M. McGlothlin BROWNSTEIN HYATT FARBER SCHRECK, LLP 21 East Carrillo Street Santa Barbara, CA 93101
I. Immunity. As an authorized representative of MPRWA, Attorney shall be recognized as having rights to any immunity MPRWA is entitled to. In no event shall any duties contained in this Agreement, or otherwise herein, negate any legal protections or immunities available to the parties under local, state or federal law. IN WITNESS WHEREOF, MPRWA has caused this agreement to be signed and executed on its behalf by its President, and duly attested by its Clerk; and the Attorney has signed and executed this agreement in duplicate originals the day and year first hereinabove written. MPRWA: ____________________________ Chuck Della Sala, President ATTORNEY: ATTEST: _____________________ Russell M. McGlothlin _________________________ Clerk of the Board
March 5, 2014
Russell M. McGlothlin Attorney at Law 805.882.1418 tel 805.965.4333 fax RMcglothlin@bhfs.com
VIA EMAIL Daphne Hodgson Deputy City Manager of Administrative Services City of Seaside 440 Harcourt Avenue Seaside, CA 93955 dhodgson@ci.seaside.ca.us James Cullem Executive Director Monterey Peninsula Regional Water Authority 580 Pacific Street, Monterey Monterey, CA 93940 Cullem@monterey.org Jason Stilwell City Administrator City of Carmel-by-the-Sea P.O. Box 805 Carmel, CA 93921 cityatty@ix.netcom.com
RE:
Disclosure of Relationship, and Waiver of Potential Conflict of Interest
Dear Ms. Hodgson, Mr. Cullem, and Mr. Stilwell: The purpose of the letter is to disclose to the City of Seaside (Seaside), Monterey Peninsula Regional Water Authority (MPRWA) and City of Carmel-by-the-Sea (Carmel) potential conflicts of interest relating to our simultaneous representation of Seaside, MPRWA and Carmel (collectively Monterey Clients or you) which might involve similar issues over which we represent the Monterey Clients, and to obtain the Monterey Clients written acknowledgment of that disclosure and waiver of any current conflicts of interest, if any. This letter confirms and supplements prior discussions and documentation regarding this matter between you and representatives of Brownstein. The applicable California Rules of Professional Conduct (attached) require us to explain the extent of our client relationships, fully disclose any existing or potential conflicts of interest, and obtain your written consent to our ongoing concurrent representations of the Monterey Clients. It is important that you understand the nature of these potential conflicts before signing the attached Consent and Waiver of Conflict of Interest. Pursuant to the Rules of Professional Conduct (attached).
1020 State Street Santa Barbara, CA 93101-2711 main 805.963.7000 bhfs.com Brownstein Hyatt Farber Schreck, LLP
March 5, 2014 Page 2
As previously discussed, the Monterey Clients understand that Brownstein represents numerous private and public agency clients throughout California and the western states, as well as on a federal and international basis. We currently represent a number of cities and special districts as general and special counsel, and are engaged in numerous matters throughout California relating to water law and policy. Brownstein provides a variety of professional services for its clients, including general counsel services, transactions, litigation, legislative advocacy, regulatory compliance, political and strategic advice, coalition building and other services. We recognize that actual conflicts may arise in the future. Should we become aware that our representation of any current or future client may create an actual conflict of interest with our representation of the Monterey Clients, either among you or individually with other clients, it is our intent to promptly advise you so that you may decide whether you wish to obtain independent counsel concerning that matter or consent to Brownsteins continued representation of you. As of the date of this letter, we are aware of no actual legal conflicts involving the Monterey Clients. However, the attorney-client relationships discussed below may create the potential for a conflict of interest. As noted, we have already obtained a conflict waiver out of an abundance of caution even though the potential for a conflict of interest is so remote that no waiver may be necessary. Each of these circumstances has previously been disclosed to the Monterey Clients. (1) Brownstein represents Carmel in its efforts to acquire Table 13 water rights (as described in SWRCB D. 1632 and related subsequent SWRCB orders) from the Odello Ranch. Carmel is considering contracting for Table 13 water rights held by the Odello Ranch, and to obtain orders from the State Water Resources Control Board (SWRCB) and the California Public Utilities Commission (CPUC) to authorize a portion of the water rights to be used by California American Water Company (Cal-Am) to service new and expanded water use within Carmel. This requires agreement by the SWRCB and CPUC to allow an exception from the currently-applicable water service moratorium in effect pursuant to orders by the SWRCB and CPUC that are binding on CalAm. (2) Brownstein represents MPRWA with respect to issues relating to Cal-Ams proposed Monterey Peninsula Water Supply Project (MPWSP) for which Cal-Am is presently seeking approvals from the CPUC and other agencies, and efforts to obtain an extension of the Cease and Desist Order in SWRCB WR Order 2009-0060 to allow sufficient time for the completion of the MPWSP. This will likely include future proceedings before the SWRCB. We also generally represent the MPWSP concerning water supply by Cal-Am to the Monterey Peninsula, which may involve future proceedings before the SWRCB, CPUC, other regulatory agencies, or the California Courts. (3) Brownstein also represents Seaside with respect to matters concerning the Seaside Groundwater Basin (Seaside Basin) and Seasides use of groundwater from the Seaside Basin (4) Brownstein previously represented Cal-Am with respect to issues pertaining to the Carmel River, but no longer does so. (5) Brownstein also represented the cities of Sand City, Del Rey Oaks, Pacific Grove, Seaside, Monterey and Carmel before the California Public Utilities Commission (CPUC), and other judicial and administrative venues, with respect to the prior proposed water supply project referred to as the Regional Water Project that was proposed to provide replacement water to Cal-Am, and CalAms request to approve a moratorium within its Monterey District.
013849\9000\10996032.1
(6) Brownstein previously represented the City of Monterey with respect to water matters within the city but no longer does so. By signing this letter and returning it to us, Carmel, Seaside and MPRWA acknowledge that we have fully disclosed the foregoing matters to you. Although we do not presently perceive a likely conflict of interest and cannot predict with specificity the manner in which a conflict could arise, the interrelated nature of the Carmel River and the Seaside Basin, which are used by Cal-Am in an integrated manner to serve water demands on the Monterey Peninsula, could cause a conflict of interest to arise. At the same time, it is foreseeable that a conflict of interest may arise in the future. For example, if the MPRWA were to differ with Carmel or Seaside with respect to the strategy and proper approach for completion of the MPWSP or efforts to obtain an extension to the SWRCB Cease and Desist Order, Brownstein could not represent any party to that matter without proper informed written consent. Likewise, if the MPRWA were to object to efforts undertaken by Carmel with respect to the Odello water rights, or were to differ with Seaside with respect to future management of the Seaside Groundwater Basin, a conflict may arise. Should an actual conflict occur between the MPRWA, Seaside or Carmel regarding any matter in which Brownstein represents the Monterey Clients, we will attempt to resolve the conflict in a manner that protects our ability to continue our concurrent representation of you. However, that may not be possible or practical given the ethical rules presented below. Thus, we request that Seaside, the MPRWA and Carmel waive any potential conflict of interest with respect to our representations as disclosed above. Should a conflict or dispute arise that we cannot resolve informally among the Monterey Clients, we will not represent any of the Monterey Clients with respect to the disputed matter. We very much value our relationship with Carmel, Seaside and MPRWA, and recognize that you are free to terminate your engagement of Brownstein at any time. Should you have any questions regarding this letter, please contact me. We respectfully request that you sign and return the enclosed copy of this letter acknowledging that you have been advised of the California Rules of Professional Conduct and of the potential conflicts associated with your respective interests, and that you nevertheless agree to the concurrent representation and the waiver of conflicts regarding the Monterey Clients. We encourage you to seek the advice of independent counsel in reviewing this consent. Should you have any questions concerning this letter or the consent, please discuss them with your own, independent counsel before signing and returning the enclosed copy of this letter.
Best Regards,
Russell M. McGlothlin Brownstein Hyatt Farber Schreck, LLP Enclosures: California Rules of Professional Conduct
013849\9000\10996032.1
CONSENT AND WAIVER The undersigned acknowledge receipt of the above written disclosure pursuant to the California Rules of Professional Conduct and understand the matters discussed therein. Having all this information in mind, I consent and give approval to Brownsteins concurrent representation of Carmel, Seaside and MPRWA as described in this letter, and waive any actual or potential conflict of interest arising from such representation. In the event that an actual conflict of interest occurs, we will not represent any of the Monterey Clients with respect to the disputed matter. I acknowledge that I have had an opportunity to review this matter with independent legal counsel. In the event that I have not discussed the matter with a legal counselor of my choice before executing this consent/waiver, I freely and voluntarily waive such counsel, although I understand that I have the right to seek such independent counsel regarding this matter at any time.
CITY OF SEASIDE
By:
_______________________________ Daphne Hodgson Deputy City Manager, City of Seaside
Dated: _________________
MONTEREY PENINSULA REGIONAL WATER AUTHORITY
By:
_______________________________ James Cullem Executive Director
Dated: _________________
CITY OF CARMEL-BY-THE-SEA
By:
_______________________________ Jason Stillwell City Administrator, City of Carmel-by-the Sea
Dated: _________________
013849\9000\10996032.1
California Rules of Professional Conduct, Rule 3-310 (B) and (C)
"(B)
A member shall not accept or continue representation of a client without providing written disclosure to the client where: (1) The member has a legal, business, financial, professional, or personal relationship with a party or witness in the same matter; or The member knows or reasonably should know that: (a) the member previously had a legal, business, financial, professional, or personal relationship with a party or witness in the same matter; and (b) the previous relationship would substantially affect the members representation; or
(2)
(3)
The member has or had a legal, business, financial, professional, or personal relationship with another person or entity the member knows or reasonably should know would be affected substantially by resolution of the matter; or The member has or had a legal, business, financial, or professional interest in the subject matter of the representation.
(4)
(C) A member shall not, without the informed written consent of each client: (1) Accept representation of more than one client in a matter in which the interests of the clients potentially conflict; or Accept or continue representation of more than one client in a matter in which the interests of the clients actually conflict; or Represent a client in a matter and at the same time in a separate matter accept as a client a person or entity whose interest in the first matter is adverse to the client in the first matter.
(2)
(3)
013849\9000\10996032.1
FROM:
Clerk Milton
SUBJECT: Authorize Extension of Contract with the City of Monterey For Executive Director
Services.
RECOMMENDATION: It is recommended that the Monterey Peninsula Regional Water Authority (MPRWA) extend the contract for employment services with the City of Monterey, which with the approval of the Water Authority, has hired James M. Cullem as an employee and is willing to appoint him as Executive Director for the MPRWA. DISCUSSION: At its meeting of January 24, 2013, the Water Authority approved Resolution 2013-04 and entered into a contract with the City of Monterey for employment services. Other than changes in the annual budget approved by the Water Authority and the fact that James Cullem has since replaced Bill Reichmuth as Executive Director, the staff report, resolution, and scope of services from the January 24th meeting remain current and are attached herewith. BUDGET CONSIDERATIONS: Budget adjustments pertaining to the Executive Director position for FY 2013-2014 were approved by the Authority at its meeting of April 25, 2013. Funding of the position for FY 20142015 will be addressed at the Water Authority budget meeting in April 2014. ATTACHMENTS: Staff Report dated January 24, 2013 Resolution 2013-04 Scope of Services (Exhibit A to Resolution 2013-04)
06/12
FROM:
Interim Executive Director Meurer Prepared By: Clerk to the Authority Milton Adopt a Resolution Authorizing a Contract with the City of Monterey for Executive Director Services
SUBJECT:
RECOMMENDATION: That the Authority adopt a Resolution authorizing a contract for employment services with the City of Monterey who, with input from the Authority Directors, selected Bill Reichmuth as an employee and is willing to appoint him as Executive Director to the Monterey Peninsula Regional Water Authority (MPRWA). POLICY IMPLICATIONS: This recommendation, in part, supports the MPRWA Joint Powers agreement and mission to ensure the timely development, financing, construction, operation, repair, and maintenance of one or more water supply projects to replace pending lost water supplies and to ensure that the governance of such projects includes representation that is directly accountable to the Cities residents that are served by such projects and to undertake any additional related or ancillary actions. FISCAL IMPLICATIONS: The revised Fiscal Year 2012-13 budget approved on January 10, 2012 included a line item budget for the professional services of an Executive Director. This position will be an employee of the City of Monterey and the Authority will contract for services, not to exceed $72,588 for FY 2012-13. ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by the California Environmental Quality Act. ALTERNATIVES CONSIDERED: The Authority could chose not to execute this contract but the ability of member City Managers to act as Executive Director to facilitate the operations of the Authority has proven to be less efficient due to their current obligations and time capacity.
08/12
DISCUSSION:
The City of Monterey managed the recruitment process for the MPRWA Executive Director position. The City received 17 applications. The City transmitted the applications to an Ad Hoc committee of Mayor Garcia and Mayor Pendergrass for review. The Ad Hoc committee recommended three (3) applicants to be considered by the full Authority. The Authority interviewed the three (3) candidates on October 8, 2012. At that time, the Authority decided not to proceed with hiring an Executive Director. At the December 24, 2012 meeting, the Authority directed staff to again proceed with hiring an Executive Director and requested a member city to sponsor the position as an employee and to contract for services, similar to the current agreement with the City of Monterey for clerk services. The City of Monterey facilitated this request, approving an amendment to their Position Control List to add the Water Authority Executive Director position to their part-time salary schedule. As confirmed by both MPRWA and the City of Monterey, this position will be an employee of the City of Monterey and the Authority will contract with the City of Monterey for this service. At the January 10, 2013 meeting the Authority amended the Fiscal Year 2012-13 budget to include expenses for the position. The proposed budget of the Executive Director is provided below. Executive Director Cost Breakdown $105.20 600 $63,120 $9,468 $72,588 Benefited Wage Per Hour Hours Budgeted Through June 30, 2013 Total Wages Administrative, Travel and Meeting Expenses (15%)
The Authority will reimburse the City of Monterey for the expenses as listed above. The Executive Director compensation will be $100.00 per hour for actual hours worked. The purpose of this arrangement is to allow the individual to fall under the City of Monterey current policies and premiums. This will eliminate additional costs to the Authority for these same services. City Manager Meurer, fulfilling the position of Interim Executive Director for the Authority, has facilitated the recruitment process of the Executive Director position and, with input from the Authority Directors, has appointed Bill Reichmuth. It is recommended that the Authority approve a Resolution authorizing the Authority to enter into the contract with the City of Monterey for Executive Director services. Attachments: 1. c: Resolution
President Della Sala Legal Counsel Freeman Interim Executive Director and TAC Chair Burnett
RESOLUTION NO. 13-004 C.S. A RESOLUTION OF THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY
APPROVE AMENDED CONTRACT FOR EXECUTIVE DIRECTOR SERVICES L WITH THE CITY OF MONTEREY AND AUTHORIZE INCREASED LIMITS TO SPECIA M PREMIU LIABLITY INSURANCE
the WHEREAS, on January 24, 2013 the Authority adopted Resolution 13-04 authorizing and ; Services President to execute a contract with the City of Monterey for Executive Director WHEREAS, the individual that was selected for the position of Executive Director, William Reichmuth, is a licensed professional engineer; and WHEREAS, since selecting Mr. Reichmuth, it has been recommended that the MPRWA in the increase the current Special Liability Insurance Premium policy in order to protect the MPRWA event of litigation; and WHEREAS, the President and MPRWA Directors have reviewed the amended contract agrees to its terms and conditions. and
NOW, THEREFORE, BE IT RESOLVED that the President is hereby authorized to execute Executive an amended agreement on behalf of the MPRWA to contract with the City of Monterey for Director/Licensed Professional Engineer Services. BE IT ALSO RESOLVED that the MPRWA authorizes an increase in the Special Liability of Licensed Insurance Premium to cover the Executive Director position with a designation Professional Engineer and the costs incurred from such action. PASSED AND ADOPTED BY THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY this 14th day of February 2013, by the following vote: 6 DIRECTORS: 0 DIRECTORS: 0 DIRECTORS: 0 DIRECTORS: Edelen, Kampe, Pendergrass, Rubio, Alternate Talmage, Della Sala None None None APPROVED:
AYES: NOES: ABSENT: ABSTAIN'
ATTEST:
S
Chuck Della Sala, President A01 A A / 0. oritylerk to the
AGREEMENT FOR EXECUTIVE DIRECTOR SERVICES City of Monterey and Monterey Peninsula Regional Water Authority
THIS AGREEMENT for Executive Director Services is made and entered into this/flay of , 2013, by and between the City of Monterey (hereinafter "Monterey"), a municipal corporation, as the service provider, and the Monterey Peninsula Regional Water Authority, a Joint Powers Authority (hereinafter "MPRWA").
.
WHEREAS, MPRWA desires to utilize the City of Monterey for Executive Director services, as outlined in detail in the attached Exhibit A; and WHEREAS, Monterey is willing and qualified to provide such services to MPRWA upon the terms and conditions set forth herein; and WHEREAS, California Government Code section 54981 provides the City Council of the City of Monterey and the Board of Directors of MPRWA with the authority to contract for performance of services by one agency to another; and WHEREAS, the Monterey City Council authorized this agreement on February 5, 2013 by the passage of Resolution No. 13-021. WHEREAS, the MPRWA Board of Directors authorized this agreement on January 24, 2013. NOW, THEREFORE, in consideration of the recitals and the mutual obligations of the parties as herein expressed, Monterey and MPRWA agree as follows: SERVICES TO BE PROVIDED. The MPRWA hereby engages Monterey to perform, and 1. Monterey hereby agrees to perform, the services described in Exhibit A in conformity with the terms of this Agreement. 1.01. The City of Monterey appoints Bill Reichmuth to serve as Executive Director to the Monterey Peninsula Regional Water Authority (MPRWA) subject to MPRWA's approval. No substitution in the appointment shall be made without the express written consent of the Board of Directors for the MPRWA. 2. PAYMENTS BY MPRWA. MPRWA shall pay Monterey in accordance with the payment provisions set forth in Exhibit A, subject to the limitations set forth in this agreement. 3. TERM OF AGREEMENT.
3.01. INITIAL TERM. The term of this Agreement shall commence as of the date of execution of this Agreement and shall end one (1) year from said date, unless sooner terminated pursuant to the terms set forth in section 8 herein.
3.02. EXTENSIONS. This Agreement may be extended by consecutive one (1) year periods, or for shorter extension periods as agreed to by the parties, by written mutual agreement of the parties' City Manager and Board of Directors specifying the renewal and end dates. At the time of any extension, or at any other time as may be necessary during the term of the Agreement, the rates set forth in Exhibit A may be adjusted by written agreement between the Monterey City Manager and MPRWA Board of Directors. Should either party decide not to extend the Agreement beyond the initial one (1) year or subsequent one (1) year terms, notice of such decision shall be provided to the other party no later than thirty (30) days before the expiration date of the Agreement. ADDITIONAL PROVISIONS/EXHIBITS. The following attached exhibits are incorporated 4. herein by reference and constitute a part of this Agreement. Exhibit A 5. Scope of Services/Payment Provisions
PERFORMANCE STANDARDS.
5.01. Monterey's agents, employees, and subcontractors performing services under this Agreement are trained, experienced, competent, and appropriately licensed (if applicable) to perform the work and deliver the services required under this Agreement. 5.02. Monterey, its agents, employees and subcontractors will endeavor to perform all work in a safe and skillful manner and in compliance with all applicable laws and regulations. 5.03. Monterey shall furnish all materials, equipment, and personnel necessary to carry out the specific services set forth in Exhibit A herein, except as otherwise specified in this Agreement. Monterey shall not use MPRWA's premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement. 6. EXCLUSIONS. a. Monterey shall not be responsible for discretionary reviews including, but not limited to: California Environmental Quality Act; National Environmental Protection Act; Clean Water Act: National Pollutant Discharge Elimination System Storm Water Post-Construction or local codes and regulations regarding environmental review. 7. PAYMENT CONDITIONS. 7.01. Payment for Monterey's services under this Agreement shall be made by MPRWA monthly upon submission by Monterey of an invoice. Payment shall be made within thirty (30) days after receipt of such invoice. 8. TERMINATION. 8.01. During the term of this Agreement, either party may terminate the Agreement for any reason by giving written notice of termination to the other party at least thirty (30) days prior to the effective date of termination. Any termination notice shall set forth the effective date of termination. 2
9.
IMMUNITY.
As MPRWA's authorized representative, Monterey shall be recognized as having rights to any immunities it is entitled to. In no event shall any duties contained in Exhibit A, or otherwise herein, negate any legal protections or immunities available to the parties under local, state or federal law. 10. INDEMNIFICATION. Both parties explicitly acknowledge that Monterey is leasing services of the Executive Director to MPRWA as an accommodation to MPRWA and that full indemnification by MPRWA to Monterey is bargained-for consideration that is imperative to this Agreement. Accordingly, MPRWA hereby agrees to the following indemnification and hold harmless clause: 10.01 MPRWA shall indemnify, defend, and hold harmless Monterey, to the fullest extent allowed by law, from any liability, demand, claim, suit, cause of action, or other legal proceeding, including attorney's fees, which may be brought or claimed against Monterey, except for the sole negligence or willful misconduct of Monterey. 10.02 Except for any duties either Party owes to the other pursuant to the provisions of this Agreement, nothing in this Agreement shall be construed to waive any legal protections or immunities available to the Parties under state or federal law
11. INSURANCE.
11.01 MPRWA shall maintain in effect, at its own cost and expense, the following insurance coverage: a. General Liability, Special Liability, or Public Liability, inclusive of auto and professional services coverage, with minimum limits of $10,000,000 per occurrence and shall have its insurance policy endorsed to name the City of Monterey as additionally insured. 11.02 All insurance required by this Agreement shall: a. Be placed (1) with companies admitted to transact insurance business in the State of California and with a current A.M. Best rating of no less than A:VI or with carriers with a current A.M. Best rating of no less than A:VII; or (2) disclosed self-insurance with limits acceptable to the other party; b. Provide that each party's insurance is primary and non-contributing insurance to any insurance or self-insurance maintained by the other party and that the insurance of the other party shall not be called upon to contribute to a loss covered by a party's insurance; and c. Subsequent to execution of this Agreement, each party shall file certificates of insurance with the other party evidencing that the required insurance is in effect.
NON-DISCRIMINATION. During the performance of this Agreement, Monterey, and its 12. subcontractors, shall not unlawfully discriminate against any person because of race, religious creed,
color, sex, national origin, ancestry, physical disability, mental disability, medical condition, marital status, age (over 40), or sexual orientation, either in Monterey's employment practices or in the furnishing of services to recipients. Monterey shall ensure that the evaluation and treatment of its employees and applicants for employment and all persons receiving and requesting services are free of such discrimination. Monterey and any subcontractor shall, in the performance of this Agreement, fully comply with all federal, state, and local laws and regulations which prohibit discrimination. The provision of services primarily or exclusively to such target population as may be designated in this Agreement shall not be deemed to be prohibited discrimination. 13. INDEPENDENT CONTRACTOR. In the performance of work, duties, and obligations under this Agreement, Monterey is at all times acting and performing as a public entity and independent contractor and not as an employee of MPRWA. No offer or obligation of permanent employment with MPRWA or particular MPRWA department or agency is intended in any manner, and Monterey shall not become entitled by virtue of this Agreement to receive from MPRWA any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers' compensation coverage, insurance or disability benefits. NOTICES. Notices required under this Agreement shall be delivered personally or by 14. first-class, postage pre-paid mail to MPRWA's and Monterey's contract administrators at the addresses listed below: FOR MPRWA: Chuck Della Sala President of the Board City Hall Monterey, CA 93940 FOR MONTEREY: Fred Meurer City Manager City Hall Monterey, CA 93940
Ph: 831-646-3935 15. MISCELLANEOUS PROVISIONS.
Ph. (831) 646-3760
15.01. Conflict of Interest. Monterey represents that it presently has no interest and agrees not to acquire any interest during the term of this Agreement which would directly or indirectly conflict in any manner or to any degree with the full and complete performance of the professional services required to be rendered under this Agreement. 15.02. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by MPRWA and Monterey. 15.03. Waiver. Any waiver of any terms and conditions of this Agreement must be in writing and signed by MPRWA and Monterey. A waiver of any of the terms and conditions of this Agreement shall not be construed as a waiver of any other terms or conditions in this Agreement.
15.04. Contractor. The term "Monterey" as used in this Agreement includes Monterey's officers, agents, and employees acting on Monterey's behalf in the performance of this Agreement. 15.05. Disputes. Monterey shall continue to perform under this Agreement during any dispute. Monterey and MPRWA hereby agree to make good faith efforts to resolve disputes as quickly as possible. In the event any dispute arising from or related to this Agreement results in litigation or arbitration, the prevailing party shall be entitled to recover all reasonable costs incurred, including court costs, attorney fees, expenses for expert witnesses (whether or not called to testify), expenses for accountants or appraisers (whether or not called to testify), and other related expenses. Recovery of these expenses shall be as additional costs awarded to the prevailing party, and shall not require initiation of a separate legal proceeding. 15.06. Assignment and Subcontracting. Monterey shall not assign, sell, or otherwise transfer its interest or obligations in this Agreement without the prior written consent of MPRWA. None of the services covered by this Agreement shall be subcontracted without the prior written approval of MPRWA. Notwithstanding any such subcontract, Monterey shall continue to be liable for the performance of all requirements of this Agreement. 15.07. Successors and Assigns. This Agreement and the rights, privileges, duties, and obligations of MPRWA and Monterey under this Agreement, to the extent assignable or delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, and heirs. 15.08. Compliance with Applicable Law. The parties shall comply with all applicable federal, state, and local laws and regulations in performing this Agreement. 15.09. Headings. The headings are for convenience only and shall not be used to interpret the terms of this Agreement. 15.10. Time is of the Essence. Time is of the essence in each and all of the provisions of this Agreement. 15.11. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California. 15.12. Non-exclusive Agreement. This Agreement is non-exclusive and both MPRWA and Monterey expressly reserve the right to contract with other entities for the same or similar services. 15.13. Construction of Agreement. MPRWA and Monterey agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement. 15.14. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.
15.15. Authority. Any individual executing this Agreement on behalf of MPRWA or Monterey represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement. 15.16. Integration. This Agreement, including the exhibits and any documents incorporated by reference, represent the entire Agreement between MPRWA and Monterey with respect to the subject matter of this Agreement and shall supersede all prior negotiations, representations, or agreements, either written or oral, between MPRWA and Monterey as of the effective date of this Agreement, which is the date that MPRWA signs the Agreement. 15.17 Interpretation of Conflicting Provisions. In the event of any conflict or inconsistency between the provisions of this Agreement and the Provisions of any exhibit or other attachment to this Agreement, the provisions of this Agreement shall prevail and control. 15.18 Severability. If any of the provisions contained in the Agreement are held illegal, invalid, or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. Limitations of liability and indemnities shall survive termination of the Agreement for any cause. If a part of this Agreement is valid, all valid parts that are severable from the invalid part remain in effect. If a part of this Agreement is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications. IN WITNESS WHEREOF, MPRWA and Monterey have executed this Agreement as of the day and year written on the first page herein. CITY OF MONTEREY MONTEREY PENINSULA REGIONAL WATER AUTHORITY By: qt,t-o-ax Zes2-Ga stIL- 1 24_ President
Approved as to form: Approved as to form:
ez )
Money City Attorney
EXHIBIT A SCOPE OF SERVICES/PAYMENT PROVISIONS EXECUTIVE DIRECTOR SERVICES

I.
City of Monterey to Provide the Following:

A. Executive Director Duties and Services- Policy Functions Work to prepare agendas and packets for Board & TAC meetings Prepare recommendations on policy matters and action items Respond to Authority requests for information or agenda items Keep press/media informed of MPRWA actions Address requests for information or statements by public or media as appropriate Coordinate with Chair of the Technical Advisory Committee regarding board delegations and placing TAC matters before the Authority for consideration/action
B. Administrative Functions Serve as liaison to the City Mangers of the member cities Maintain listing of forthcoming CPUC workshops and hearings, assist Authority in developing positions and instructing their representatives Coordinate with legal services so board requests are met in a timely way Work with agency proving clerk services for agenda management, recordation of minutes, maintenance of records, complying with Public records act requests, and related matters Coordinate with the designated fiscal agent, on financial matters, and coordinate with the Authority Treasurer to maintain accounts of MPRWA Prepare budget necessary to support agency's ability to perform functions Maintain list of contracts approved by the MPRWA Develop policy binder of all board adopted policies Develop programs as necessary to implement policy direction of Board Maintain working files as necessary to administer the core functions Arrange for places for regular and special meetings of MPRWA, unless delegated to another party Protect, maintain and keep inventory of MPRWA property and equipment Schedule meetings of such Committees (Regular and Ad HOC) as the MPRWA have created, and coordinate with Chair to see that the work of MPRWA proceeds Performs other duties as required to best ensure the smooth operation of MPRWA
C.
Miscellaneous Services Performed by City of Monterey: Payroll Services for Monterey employee(s) providing these services (this employee will be allocated within the Office of the City Manager to be paid as part of the City's regular payroll to the employee performing the services described in Exhibit A herein) 7
Tracking of employee hours and resultant costs of services provided Invoices requesting payment for services are to be submitted on a monthly basis by the City of Monterey to the designated fiscal agency
II.
MPRWA to Provide the Following: Reimbursement to the City of Monterey shall be made within thirty (30) days after receipt of invoice
III.
Executive Director Rate and Budget

Executive Director Services Hourly Rate and Expenses $105.20 600 490 $114,668 $17,200 $131,868 Benefited Wage Per Hour Hours Budgeted Through July 30, 2013 Hours Budgeted July 1 through December 31, 2013 Total Wages Administrative, Travel and Meeting Expenses (15%)
*Note - MPRWA budget is based on a fiscal year. A new budget for Executive Director expenses will be created for fiscal year 2014. This contract is contingent upon the MPRWA approving the budget for the Executive Director position for Fiscal year 13-14.
FROM:
SUBJECT: Adopt Financial Procedures Policy RECOMMENDATION:

It is also recommended that the Authority receive and adopt the attached Financial Procedures Policy. DISCUSSION: At the February 13, 2014 Authority meeting the Directors received the completed the Financial Annual Report and a Full Opinion Audit for FY 2012-13 completed by the contracted auditing firm McGilloway, Ray, Brown and Kaufman (Kaufman). As part of the audit, Kaufman prepared a management letter identifying areas that needed improvement in the Authoritys financial management systems. Both the audit and management letter were presented and briefed to the Ad Hoc Financial Committee on January 23, 2014. In response to the suggestions from Kaufman with respect to areas in need of improvement, staff has prepared the attached Authority Financial Procedures Policy for review and adoption.
ATTACHMENTS: 1. Fiscal Year 2012-2013 Audit and Letters 2. Draft Water Authority Financial Policies and Procedures
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Monterey Peninsula Regional Water Authority Financial Policies and Procedures Adopted:
GENERAL PURPOSE The purpose of this document is to establish guidelines for developing financial goals and objectives, not outlined in the Bylaws or the JPA Agreement, regarding making internal financial decisions, reporting the financial status of the Agency, and managing the Agencys funds. The adopted annual budget provides funding approval for the purchase and payment for services. The ultimate goal is to ensure the following: 1. The orderly and efficient receipt of funds 2. The safeguarding of cash and monetary assets. 3. The prevention or detection of errors and fraud. 4. The accuracy and completeness of the accounting records. 5. The timely preparation of reliable financial information. POWERS AS GRANTED IN THE JPA AGREEMENT AND BYLAWS
ARTICLE 12-JPA ACCOUNTING PRACTICES General. The Board of Directors shall establish and maintain such funds and accounts as 12.1 may be required by generally accepted public agency accounting practices. The Authority shall maintain strict accountability of all funds and report of all receipts and disbursements of the Authority. ARTICLE 13-JPA BUDGET AND EXPENSES 13.1 Budget. Within 90 days after the first meeting of the Board of Directors, and thereafter prior to the commencement of each fiscal year, the Board shall adopt a budget for the Authority for the ensuing fiscal year. In the event that a budget is not so approved, the prior years budget shall be deemed approved for the ensuing fiscal year, and any assessment(s) of contributions of Members approved by the Board during the prior fiscal year shall again be assessed on the Members in the same amount and terms for the ensuing fiscal year.
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13.2 Authority Funding and Contributions. For the purpose of funding the expenses and ongoing operations of the Authority, the Board of Directors shall maintain a funding account in connection with the annual budget process. The Board of Directors shall issue assessments for contributions by the Members to fund said account in the amount and frequency determined necessary by the Board. Assessments for Member contributions shall be made by each Member in proportion to the weighted vote of each member as determined pursuant to Section 8.2, and therefore no Member shall be required to make contributions to the Authority in excess of that portion of each assessment that is equivalent to the weighted vote possessed by its Director. Such contributions shall be paid by each Member to the Authority within sixty (60) days of assessment by the Board. 13.3 Return of Contributions. In accordance with Government Code section 6512.1, repayment or return to the Members of all or any part of any contributions made by Members and any revenues by the Authority may be directed by the Board of Directors at such time and upon such terms as the Board of Directors may decide; provided that (1) any distributions shall be made in proportion to the contributions paid by each Member to the Authority, and (2) any capital contribution paid by a Member voluntarily, and without obligation to make such capital contribution pursuant to Sections 13.2, shall be returned to the contributing Member, together with accrued interests at the annual rate published as the yield of the Local Agency Investment Fund administered by the California State Treasurer, before any other return of contributions to the Members is made. The Authority shall hold title to all funds and property acquired by the Authority during the term of this Agreement.
ARTICLE 6-BY-LAWS FINANCE POLICY 6.1 Deposit and Disbursement of Funds All funds of the Authority shall be deposited in one or more depository accounts as may be designated by the Board. Such accounts shall be independent of any account owned by or exclusively controlled by any of the Members. No disbursements of such funds shall be made unless the same shall have been approved in the annual operating budget, or otherwise specifically approved by the Board. All disbursements shall be by check. Disbursements of not more than five thousand dollars ($5,000) may be issued pursuant to the Treasurer's sole signature. Disbursements in excess of five thousand dollars ($5,000) may only be issued upon the signature of the Treasurer and President, or in the President's absence, the Vice-President.
FINANCIAL RESPONSIBILITIES AND PROCEDURES 1. RESPONSIBILITIES OF AUTHORITY STAFF It is the responsibility of the Board of Directors to formulate financial policies and review operations and activities on a periodic basis. It is the responsibility of the Executive Director to implement all financial policies and procedures and coordination of the following: Annual budget presentation, management of the contracts and expenditures, monitoring accounts receivables, and approving revenue and expenditure objectives in accordance with the Board approved expenditures and budget. Page 2
The Executive Director, Clerk and Finance Specialist have the day-to-day operations responsibility for managing agency funds, ensuring the accuracy of the accounting records, internal controls, financial objectives and policies, financial statement preparation, and bank reconciliation review and approval. The Finance Specialist, supervised by the Clerk, is responsible for the preparation of the accounts payable processing, cash receipts input, journal entries for general ledger, form 1099 reporting, as well as bank reconciliations. 1.a General Journal Entry Procedures, Expenditures and Disbursements The following procedure is to ensure timely and correct payments to vendors and contractors who provide the Authority with services; to assure that no disbursement of agency monies shall be made unless the obligation is supported by accounting evidence in proper form, and to ensure that sufficient money is available to make disbursements. All expenditures shall be approved by either Board Action, or by the Executive Director through the powers granted to him in the By-laws. All disbursements for the authority will be made by check outlined in the process below. Once an invoice is received, it is reviewed and approved by the Director, or staff member initiating the service contract or monitoring the contractor performance. Once approved, a written approval is submitted to the Clerk to verify it was an approved board action and the expenditure is recorded against the current adopted budget. The Clerk will forward the approved invoice to the Finance Specialist for check processing. Once the check is processed, it is provided to the Clerk, along with all supporting documentation who will then deliver to the directors for signature as required by the check signing policy as listed in the By-laws. Upon payment of a bill, a copy of the check shall be stapled onto the bill with supporting documentation and expenditure authority. The paid invoices shall be filed alphabetically according to vendor name and shall be kept on a fiscal year basis on file. 1.b Tracking of Maximum Funds Allowed per Contractual Agreements. The Executive Director is responsible to maintain a listing of existing contractual agreements, including the total allow able expenses and track all amounts paid per contractual agreements as part of the cash disbursement approval process to ensure contractual agreements are followed and the Authority has the sufficient funds to operate. 1.c Accounts Receivable Aging Report Review & Collection On a monthly basis, the Financial Specialist will complete an initial review of the aging report and then send it to the Executive Director for follow up. This continuous review of the accounts receivable ledger along with the implementation of a collection process will reduce the amount of delinquent receivables. 1.d Bank Reconciliations and Final Close Process Page 3
Bank reconciliations shall be completed monthly by the Finance Specialist and cross-referenced with the paid invoices. The monthly reconciliation shall be reviewed by either the Clerk of the Executive Director and cross-referenced with the adopted budget. A final year-end reconciliation will be done by July 15th for the previous fiscal year. 1.e Budget to Actual Review A budget to actual review will be reviewed by the Executive Director and presented to the Board quarterly to make sure the Authority has the flexibility to fulfill their mission statement with little to no financial constraints. 1.f Managerial Review of Accounting Reports The Executive Director is responsible to review all accounting reports for the Authority at least quarterly to ensure all invoices, disbursements, encumbrances and budget to actual reports are on track for the year and no budget line items have been exceeded without approval by the Directors. 2. ANNUAL BUDGET The structure of the annual budget will be formatted to resemble the format of the financial statements. This will allow for more useful comparisons between the budgeted and annual financial information as well as more meaningful and precise analysis of budget variances.
3. WHISTLEBLOWER POLICY This whistleblower policy is included to ensure no retaliation occurs if and when an individual makes a good-faith report of fraud or any other illegal action. It is the responsibility of all agency representatives to report violations or suspected violations in accordance with the Whistleblower Policy. All representatives of the Authority, including Directors, TAC Members and Staff are expected to observe high standards of business and personal ethics in the conduct of their duties and responsibilities. As representatives of the Authority, we must practice honesty and integrity in fulfilling our responsibilities as well as comply with all applicable laws and regulations. No representative, who in good faith reports a violation shall suffer harassment, retaliation or adverse employment consequence.
Page 4
FROM:
SUBJECT: Receive Report, Discuss and Provide Direction Regarding Issues and
Implications of Commissioning a Study Regarding a Public Take Over of Cal Am.
RECOMMENDATION: It is recommended that the Monterey Peninsula Regional Water Authority (MPRWA) consider the issues and implications of Commissioning a Study Regarding a Public Acquisition of Cal Am. DISCUSSION: In response to a number of public requests to have the Water Authority address the subject of the acquisition of Cal Am by a public agency, the Water Authority TAC discussed the subject at its meeting of February 3, 2014. After deliberation, the TAC recommended that the Water Authority first consider if the issue was appropriate for consideration in light of section 2.2 of the Joint Exercise of Powers Agreement dated February 14, 2013 which addresses the purpose of the Authority which is to (1) ensure the timely development, financing, construction, operation, repair, and maintenance of one or more Water Projects; and (2) ensure that the governance of such Water Projects includes representation that is directly accountable to the water users within the incorporated Cities and unincorporated portions of the County. In addition, the TAC raised the question of how any action, a study, might be interpreted by the CPUC and the State Water Resources Control Agency in light of their sensitivity to any implication that public or political support for the Monterey Peninsula Water Project might be fragmenting. The TAC also noted that the impact on future bond funding in the commercial markets, in case of future eminent domain with respect to ownership of Cal-Am facilities, is currently unknown. Should the Water Authority decide to consider a contract for a study of an acquisition of Cal-Am, staff can investigate firms capable of providing that analysis.
OPTIONS: Staff suggests that the Water Authority has four options:
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1. Commission a study of a public takeover of Cal-Am with the intent to provide information prior to a vote by the public. 2. Commission a study of a public takeover of Cal-Am with the intent to provide a Water Authority recommendation prior to a vote by the public. 3. Defer consideration of study until some undetermined time after a vote by the public. 4. Determine that commissioning a study of the subject is outside the purpose of the Water Authority. BUDGET CONSIDERATIONS: A study to analyze a public takeover of Cal-Am is estimated to cost approximately $50,000.
FROM:
SUBJECT: Receive Report and Discuss Status of Monterey Peninsula Water Supply Project: a. Status of Borehole Construction b. Water Analysis c. Progress of Power Purchase Agreement with the MRWMD d. Revised CPUC Schedule
DISCUSSION: There is no written Report for this item. A verbal report will be given at the meeting.
ATTACHMENT: CPUC Schedule Dated 3/3/2014
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ANG/ek4 1/27/2014
FILED
1-27-14 01:17 PM
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of California-American Water Company (U210W) for Approval of the Monterey Peninsula Water Supply Project and Authorization to Recover All Present and Future Costs in Rates.
Application 12-04-019 (Filed April 23, 2012)
RULING SETTING FORTH UPDATED SCHEDULE AND ADDRESSING OTHER MATTERS 1. Updated Schedule At the hearing held on December 2, 2013, Mr. Svindland of California-American Water Company (Cal-Am) provided additional information regarding the timing of the bore hole drilling and analysis, in response to my questions. (RT 2159:12 2161:2). I have consulted with Energy Division Staff working on the Draft Environmental Impact Report (DEIR) that will be issued in compliance with the California Environmental Quality Act (CEQA) regarding the schedule for publishing the DEIR. Staff informs me that Cal-Am has not yet received clearance from the City of Marina to drill additional bore holes at the Cemex site. Those bore holes would provide additional information on the hydrogeologic conditions in the area of the site. As set forth in the proposed Comprehensive Settlement Agreement, after the bore holes are drilled, the hydrogeology technical group will meet and prepare a technical memo that will be served on parties, and the available analysis will be incorporated into the models for the DEIR. The issuance of the
85973573
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A.12-04-019 ANG/ek4
DEIR will be delayed. The updated schedule is set forth below for Phase 1 (which considers the issuance of a Certificate for Public Convenience and Necessity (CPCN) for the project):1 CPCN Track
January 20, 2014 February 14, 2014 Opening Briefs on Settlement Proposals Closing Briefs on Settlement Proposals 3rd Quarter 2014 15 days after Cal-Am to file and serve a issuance of DEIR common outline for legal and policy briefs, after consultation with parties 45 days after issuance of DEIR 60 days after Common Outline Opening issuance of DEIR Briefs filed and served on legal and policy issues 75 days after Reply Briefs filed and issuance of DEIR served on legal and policy issues 1st Quarter 2015 1st Quarter 2015 Phase 1 Proposed Decision addressing certification of FEIR and issuance of CPCN Target for Commission Action on Phase 1 PD DEIR published Comments on DEIR due DEIR circulated for comment
CEQA Track
1st Quarter 2015
To the extent that these dates land on weekends or holidays, parties shall adhere to the computation of time requirements set forth in Rule 1.15.
1
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A.12-04-019 ANG/ek4
The schedule for Phase 2, which was set forth in President Peeveys Amended Scoping Memo Ruling, dated September 25, 2013, remains unchanged. 2. Declaration of Drought by Governor Brown On Friday, January 17, 2014, Governor Brown proclaimed a State of Emergency due to current drought conditions. I direct Cal-Am to file and serve a compliance filing no later than February 7, 2014 that describes the impacts, if any, of the emergency proclamation on this proceeding. Interested parties may file and serve comments on the compliance filing no later than February 21, 2014. 3. Communications from Stephen Collins and Motion filed by Public Trust Alliance As set forth in my e-mail of December 9, 2013, I received three e-mails from Stephen Collins, dated December 6, 2013, December 7, 2013, and December 9, 2013. I instructed Mr. Collins to remove my name from the mass e-mail list that he is using and have also instructed the Information Technology Department at the Commission to ensure that I do not receive communications from Mr. Collins. I briefly skimmed the e-mails and did not read the attachments. The e-mails and attachments are included in this Ruling so that parties are fully apprised. On December 5, 2013, Public Trust Alliance (PTA) filed and served a motion requesting the production of additional evidence as to whether the proposed Settlement Agreements would be consistent with the requirements of CEQA. As has been stated several times, most recently in the Amended Scoping Memo and Ruling dated September 25, 2013, evidentiary hearings on the environmental reporting track will not be convened. Parties to the Proposed Settlement Agreement represent that to the extent any of the measures in the
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A.12-04-019 ANG/ek4
Settlement Agreement are incompatible with those in the Final DEIR, only those in the Final DEIR will be pursued.2 At any rate, the Commission must evaluate the proposed Settlement Agreements in light of the environmental documents, as is clearly provided for in the schedule for this proceeding. PTAs motion is therefore denied. Therefore, IT IS RULED that: 1. The updated schedule for Phase 1 is set forth in this Ruling. 2. No later than February 7, 2014, California-American Water Company shall file and serve a compliance filing that details the impact, if any, on this proceeding of Governor Browns proclamation of a drought State of Emergency issued on January 17, 2014. Interested parties may file and serve comments on the compliance filing no later than February 21, 2014. 3. To the extent that the dates set forth in this ruling fall on a weekend or holiday, parties shall adhere to the computation of time requirements set forth in Rule 1.15. 4. The communications and attachments sent to me by Stephen Collins are attached to this Ruling.
Settling Parties Motion to Approve Settlement Agreement, dated July 31, 2013, at 9.
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A.12-04-019 ANG/ek4
5. The motion filed and served by Public Trust Alliance on December 5, 2013 is denied. Dated January 27, 2014, at San Francisco, California.
/s/ ANGELA K. MINKIN Angela K. Minkin Administrative Law Judge
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Agenda Monterey Peninsula Regional Water Authority (MPRWA) Regular Meeting 7:00 PM, Thursday, March 13, 2014

Council Chamber 580 Pacific Street Monterey, California

Thursday, January 30, 2014

Thursday, January 30, 2014

AYES: NOES: ABSENT: ABSTAIN: RECUSED:

DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS:

ADJOURNMENT The meeting was adjourned at 8:24 p.m.

Lesley Milton, Authority Clerk

Chuck Della Sala, President

Directors Absent: Staff Present: ROLL CALL

January 9, 2014 AGENDA ITEMS

Thursday, February 13, 2014

Thursday, February 13, 2014

Thursday, February 13, 2014

Thursday, February 13, 2014

Lesley Milton, Authority Clerk

Chuck Della Sala, President

Monterey Peninsula Regional Water Authority Agenda Report

Date: March 13, 2014 Item No: 3.

Authority Clerk Milton

Budget to Actual (as of 3/7/2014)

Monterey Peninsula Regional Water Authority Agenda Report

Date: March 13, 2014 Item No: 4.

Executive Director Cullem

United States Department of the Interior

MONTEREY PENINSULA REGIONAL WATER AUTHORITY

Chuck Della Sala, President

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

Monterey Peninsula Regional Water Authority Agenda Report

Date: March 13, 2014 Item No: 5.

Executive Director Cullem

AYES: NOES: ABSENT: ABSTAIN:

DIRECTORS: DIRECTORS: DIRECTORS: DIRECTORS: APPROVED:

ATTEST: Chuck Della Sala, President

Lesley E. Milton, Clerk to the Authority

EMPLOYMENT AGREEMENT FOR LEGAL SERVICES

Russell M. McGlothlin Attorney at Law 805.882.1418 tel 805.965.4333 fax RMcglothlin@bhfs.com

Disclosure of Relationship, and Waiver of Potential Conflict of Interest

March 5, 2014 Page 2

March 5, 2014 Page 3

March 5, 2014 Page 4

_______________________________ Daphne Hodgson Deputy City Manager, City of Seaside

MONTEREY PENINSULA REGIONAL WATER AUTHORITY

_______________________________ James Cullem Executive Director

_______________________________ Jason Stillwell City Administrator, City of Carmel-by-the Sea

March 5, 2014 Page 5

California Rules of Professional Conduct, Rule 3-310 (B) and (C)

Monterey Peninsula Regional Water Authority Agenda Report

Date: March 13, 2014 Item No: 6.

Monterey Peninsula Regional Water Authority Agenda Report

Date: March 13, 2014 Item No: 6.

AYES: NOES: ABSENT: ABSTAIN'

Chuck Della Sala, President A01 A A / 0. oritylerk to the

Ph: 831-646-3935 15. MISCELLANEOUS PROVISIONS.

Ph. (831) 646-3760

EXHIBIT A SCOPE OF SERVICES/PAYMENT PROVISIONS EXECUTIVE DIRECTOR SERVICES

City of Monterey to Provide the Following:

Executive Director Rate and Budget

Monterey Peninsula Regional Water Authority Agenda Report

Date: March 13, 2014 Item No: 7.

Authority Clerk Milton

SUBJECT: Adopt Financial Procedures Policy RECOMMENDATION:

Monterey Peninsula Regional Water Authority Agenda Report

Date: March 13, 2014 Item No: 8.