Professional Documents
Culture Documents
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11:34 AM
08/05/14
Accrual Basis
Monterey Peninsula Regional Water Authority
Budget vs. Actual FY 2013-14
July 2013 through June 2014
Amended
Budget
Approved
5/08/2014
Actual &
Proposed
Amended
Budget
Ordinary Income/Expense
Income
47200 Program Income
Fund Balance 7,268.00 7,268.00
47230 Membership Dues 424,563.00 424,562.00
47250 Reimbursement SPI Contract 18,562.00 9,281.00
47260 Reimburesment VE Contract 200,000.00 0.00
Total 47200 Program Income 650,393.00 441,111.00
Total Income 650,393.00 441,111.00
Expense
60900 Administration and Clerical
60901 Clerk of the Board 35,000.00 35,000.00
60902 Executive Director 90,680.00 59,141.16
Total 60900 Administration and Clerical 125,680.00 94,141.16
62100 Legal Fees
62110 Board Counsel 59,000.00 27,000.00
62140 Special Counsel 186,000.00 142,184.75
Total 62100 Legal Fees 245,000.00 169,184.75
62800 Contract Services
60801 Public Outreach 15,000.00 8,509.19
60806 Contract VE 200,000.00 0.00
62802 Audit Services 6,700.00 6,700.00
62803 Televised Meeting 10,000.00 5,100.00
62804 Contract Services & Studies 3,000.00 0.00
62805 Contract SPI 35,000.00 27,843.43
Total 62800 Contract Services 269,700.00 48,152.62
65000 Insurance 7,000.00 6,701.88
65100 Travel Expenses 1,000.00 828.74
68300 Contingency 2,000.00 734.78
Total Expense 650,380.00 319,743.93
Net Income 121,367.07
Page 1 of 1
MPRWA Meeting, 8/14/2014 , tem No. 4., tem Page 5, Packet Page 17
Monterey Peninsula Regional Water Authority
Agenda Report
Date: August 14, 2014
Item No: 5.
06/12
FROM: Executive Director Cullem
SUBJECT: Receive report, discuss, and provide direction with regards to expected
changes to the California Public Utilities Commission(CPUC) schedule for
the Monterey Peninsula Water Supply Project (MPWSP).
RECOMMENDATION:
It is recommended that the Water Authority Board receive a report on changes in the
CPUC schedule resulting from delays in the completion of the draft EIR (DEIR),
determine if any action is required at this time, and provide direction to staff.
DISCUSSION:
The CPUC schedule as revised July 3, 2014 is at Exhibit A. At Exhibit B is a letter from
the CPUC Energy Division dated Aug 11, 2014 advising the Administrative Law Judges
(ALJ) that completion of the DEIR has been delayed. At Exhibit C is the CPUC schedule
as revised August 13, 2014. Accordingly, the Administrative Law Judge (ALJ) hearings
scheduled in December 2014 have been delayed four months to April 2015.
Our Attorney of Record recommends the Authority authorize a Board member and staff
to coordinate with counsel for the Settling Parties in order to prepare a recommendation
to the CPUC for an extension of the commencement date of the CPUCs Phase II
proceedings for the Monterey Peninsula Water Supply Project, namely the Groundwater
Replenishment (GWR) Project. The purpose of that extension is to afford sufficient time
to complete the GWR Environmental Impact Report and to complete negotiations
concerning GWR source water.
EXHIBITS:
A-CPUC schedule as revised July 3, 2014
B-CPUC Energy Division letter dated August 11, 2014
C-CPUC schedule as revised August 13, 2014
MPRWA Meeting, 8/14/2014 , tem No. 5., tem Page 1, Packet Page 19
July 3, 2014
Schedule and Task List for MPWSP Post Settlement (REV July 3, 2014)
CPUC Calendar Dates
Task Due Date Responsible Party Notes
Comments on
Settlement Agreements
Due
August 30, 2013 Complete
Reply Comments on
Settlement Agreements
Due
September 13, 2013 Complete
Prehearing
Conference: Status of
Settlement Motion (if
any), of CEQA work
& other matters
September 16, 2013 Complete
Informational Hearing
on Settlement
Agreements
December 2-3, 2013 Complete
Quarterly Check-in Call
with Settling Parties
October 2014 MPRWA Quarterly Check-in Call
with Settling Parties
DEIR circulated for
Comment
3
rd
Qtr 2014
Cal-Am to file and serve
a common outline for
legal and policy briefs,
after consulting with
parties
15 days after issuance
of DEIR
Comments on DEIR
Due
45 days after issuance
of DEIR
Common Outline
Opening Briefs filed and
served on legal and
policy issues
60 Days after Issuance
of DEIR
Reply Briefs filed and
served on legal and
policy issues
75 days after issuance
of DEIR
FEIR published 1
st
Qtr 2015
Proposed
Decision addressing
certification of FEIR and
issuance of CPCN
1
st
Qtr 2015
Quarterly Check-in Call
with Settling Parties
July 2014 MPRWA
Target for Commission
Action on Phase I
1
st
Qtr 2015
Quarterly Check-in Call
with Settling Parties
October 2014 MPRWA
Quarterly Check-in Call
with Settling Parties
January 2015 MPRWA
MPRWA Meeting, 8/14/2014 , tem No. 5., tem Page 2, Packet Page 20
July 3, 2014
GWR
Task Due Date Responsible Party Notes
File Motion for
Bifurcation of the
GWR Decision
August 2013 MRWPCA Complete and Granted
Board Actions to
Approve Revised
Governance Committee
Agreement
October 2013
August/Sept 2013
MPWMD, MPRWA,
County, & Cal-Am
Completed
Executed Agreements
for GWR Source Water
and/or Declaratory
Relief
June 23, 2014
MRWPCA Meet & Confer in
Progress
Draft WPA
Mar 2014
MPWMD & MRWPCA
Agreement on Terms of
WPA
May 2014
Cal-Am, MRWPCA,
&MPWMD
Perform Assessment of
GWR Positive and
Negative Externalities
for Any Premium
Showing
June 2014
MRWPCA & MPWMD
Storage Agreement
with Seaside Basin
Watermaster
Jul 2014
MRWPCA & MPWMD
GWR Basis of Design
Complete with At Least
10% Design
Jul 2014
MRWPCA
Perform Revenue
Requirement Analysis
Including Any Debt
Equivalency Effect
Jul 2014
MRWPCA & MPWMD
DEIR Circulated July 2014 MRWPCA
GWR Financing Plan
Sufficient for SRF
Funding
Aug 2014
MRWPCA & MPWMD
Dilution Water
Requirements
July-October 2014 MRWPCA
Obtain Representations
from DPH re Use of
Extracted GWR Water
Oct 2014
MRWPCA
Obtain Representations
from RWQCB re Use of
Extracted GWR Water
Oct 2014
MRWPCA
Project Approved and
FEIR
October 2014 MRWPCA
All Permits for GWR
Construction Obtained
???
January 2015
MRWPCA
MPRWA Meeting, 8/14/2014 , tem No. 5., tem Page 3, Packet Page 21
July 3, 2014
Source Wells
Task Due Date Responsible Party Notes
Drill Exploratory
Boreholes
Sept. 2013 February
2014
Cal-Am Complete
Commence
Hydrogeologic Study
and Technical Report
August 2013 Cal-Am / SVWC Draft completed.
Permits for CEMEX
Site Test Well
January 2014 Cal-Am NOV 2014
Drill CEMEX Site Test
Well
February 2014 Cal-Am DELAYED
Results of Test Well
Operation Obtained
February 2014
February 2016
Cal-Am DELAYED
Hydrogeologic Study
and Technical Report
Complete and Results
Filed with CPUC
June 2015
Cal-Am DELAYED
Necessary Agreements
from CEMEX for
Source Wells
Nov. 2015, or sooner Cal-Am ?
All Necessary Permits
for Construction of
Source Wells Obtained
Nov. 2015, or sooner Cal-Am ?
MPRWA Meeting, 8/14/2014 , tem No. 5., tem Page 4, Packet Page 22
July 3, 2014
Securitization
Initial Revision and
Redline of Legislation
Early September 2013 MPWMD Complete
Obtain Cal-Am Input on
Draft Legislation
Late September 2013 MPWMD, MPRWA, &
Cal-Am
Complete
Retain Necessary
Additional
Financial/Legal
Consultants (Charles
Atkins)
October 2013
MPWMD Complete
Revise Financial
Comparison of
Securitization v. Cal-Am
Financing
October 2013 MPWMD & Cal-Am In Progress
Meeting with
Community/Interest
Groups and Cities
October-December
2013
MPWMD & MPRWA Complete
Further Revise
Legislation as
Necessary
October-November
2013
Complete
Draft Summary of
Legislation
December 2013 MPWMD Complete
Introduce Legislation January 2014 Complete
Lobbying Effort February-April 2014 MPWMD, MPRWA, &
Cal-Am
In Progress
Legislation Adopted
?
Passed Senate
Unanimously; Referred
to Assembly; In
Appropriations
Committeee
Initial Draft of Motion for
Financing Order
?
MPWMD
Perform Analysis to
Demonstrate Annual
Customer Benefits
Exceed 1.0% of Total
Annual Revenue
April 2014
?
MPWMD & Cal-Am
MPRWA Meeting, 8/14/2014 , tem No. 5., tem Page 5, Packet Page 23
July 3, 2014
Requirement
Motion for Financing
Order
?
MPWMD
Obtain CPUC Financing
Order
?
Order on securitization
financing on satisfaction
of remaining criteria
from Settlement K
Preliminary Discussions
with Bond Underwriters
September-December
2014
MPWMD
Drafting of
documentation for bond
requests
September 2014-April
2015
MPWMD & Cal-Am
Preliminary Discussions
with Rating Agencies
February-April 2015 MPWMD
MPRWA Meeting, 8/14/2014 , tem No. 5., tem Page 6, Packet Page 24
STATE OF CALIFORNIA EDMUND G. BROWN JR., Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN 5RANCISCQ, CA 94102-3258
August 11, 2014
AL's Weatherford and Minkin, and Commissioner Peavey
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
Re: Schedule Delays for the MPWSP DEIR
Dear ALJs Weatherford and Minkin, and Assigned Commissioner Peavey:
The CPUC Energy Division has encountered delays that we believe will make it impossible
for us to meet the scheduled 3rd quarter 2014 publication date for the Monterey Peninsula
Water Supply Project (MPWSP) Draft Environmental Impact Report (EIR). Energy Division
accordingly requests a four-month extension of the schedule to allow the MPWSP FIR team
to complete the necessary analyses and adequately address the technical issues
surrounding the project. With the extension, publication of the MPWSP Draft FIR would
occur in January 2015 and certification of the Final EIR in July 2015.
In response to the State Water Resources Control Board's (SWRCB) recommendation that
the CPUC's environmental review include information and analysis to determine whether
implementation of the proposed MPWSP could proceed without violating other users'
groundwater rights in the Salinas Valley Groundwater Basinl, a series of 13 boreholes
ranging from 250 to 350 feet below ground surface were drilled throughout the coastal
area of the Salinas Valley Groundwater Basin, from Marina in the south to Moss Landing in
the north. These boreholes provided critical information regarding stratigraphic
relationships, lithology, hydraulic conductivity, and water quality, and there appears to be
agreement among the Hydrogeology Working Group 2 members regarding the investigative
results of the borehole data and conceptual model of the Groundwater Basin. This reflects
substantial progress towards minimizing technical disagreements amongst the parties.
However, acquiring permits for the 13 boreholes and collaboration among the expert
hydrogeologists has taken more time than previously allotted. As a result, the groundwater
modeling results for the proposed project have been delayed and are still forthcoming.
This groundwater modeling is essential for preparation of the FIR, and is based upon the
SWRCB recommendations that: (1) further investigations be performed to determine the
extent of the Dune Sand Aquifer, the Salinas Valley Aquitard, and the 180-Foot Aquifer, and
assess the water quality and quantity of the Dune Sand Aquifer; (2) a series of boreholes
and aquifer tests be conducted to assess the underlying hydrogeology and establish
Final Review of California American Water Company's Monterey Peninsula Water Supply Project, July 31, 2013
2
The Hydrogeology Working Group was formed as a result of the August 2013 Large Settlement Agreement
MPRWA Meeting, 8/14/2014 , tem No. 5., tem Page 7, Packet Page 25
baseline conditions; and (3) groundwater modeling be used to predict changes in
groundwater levels, groundwater flow direction, and changes in the extent and boundary
of the seawater interface. The SWRCB also recommended that groundwater modeling be
used to assess the cumulative effects of the MPWSP on seawater intrusion in conjunction
with future operations of the Castroville Seawater Intrusion Project (CSIP) and the Salinas
Valley Water Project (SVIP).
In addition, on June 25, 2014, the Monterey County Water Resources Agency (MCWRA)
released a Notice of Preparation for an FIR on the proposed Salinas Valley Water Project
(SVWP) Phase II. The project description of the SVWP Phase II, which seeks to capture and
divert surface water from the Salinas River (consistent with MCWRA's Water Rights
Application #11043) and deliver the water to the East Side and Pressure Subareas to
enhance the management of water resources and combat seawater intrusion in Monterey
County, is very different from the previous Phase II concept. Populating the groundwater
model with the appropriate parameters to predict cumulative changes in groundwater
conditions with and without future operations of the revised SVWP has further contributed
to delays in the groundwater modeling.
Finally, we are also concerned that the delay in groundwater modeling could jeopardize the
ability of the Monterey Regional Water Pollution Control Agency (MRWPCA) to meet their
California Environmental Quality Act (CEQA) review schedule for the Groundwater
Replenishment (GWR) project EIR, as set forth in the August 2013 Settlement Agreement.
We would support a similar extension of time for the MRWPCA's GWR EIR.
While we recognize the need to complete CEQA review for this project as expeditiously as
possible, we believe that in the long run, a four-month extension of the deadline for the
Draft EIR would strengthen the EIR analysis and provide better information to the
Commission, the parties, and the community.
Sincerely,
Andrew Barnsdale
cc: Edward Randolph, Director
Meredith Sterkel, Program Manager
Jason Reiger, Supervisor - CEQA Legal
Peter Allen, CEQA Legal
431574
MPRWA Meeting, 8/14/2014 , tem No. 5., tem Page 8, Packet Page 26
1
E-RULING UPDATING SCHEDULE
A.12-04-019
08/13/14
Energy Division Letter and Updated Schedule
On August 11, 2014, the Commissions Energy Division informed
the assigned Commissioner and assigned Administrative Law Judges
(ALJ) that there are delays in preparing the Draft Environmental Impact
Report (DEIR) for the Monterey Peninsula Water Supply Project (MPWSP).
These delays will make it impossible to meet the 3
rd
quarter 2014
publication date for the DEIR. Energy Division therefore requests a four-
month delay in the publication of the DEIR, and states that publication of
the DEIR would occur in January 2015, with publication of the Final EIR
anticipated in July 2015.
After consultation with the assigned Commissioners office, I grant
Energy Divisions request. While a delay is very regrettable, we agree that
it is unavoidable for several reasons.
First, it is important that the DEIR and FEIR comply with the State
Water Resources Control Boards (SWRCB) recommendation that the
Commissions environmental review include information and analysis to
determine whether implementation of the proposed MPWSP can proceed
without violating other users groundwater rights. As set forth in the
Energy Division letter, acquiring the permits for the 13 boreholes, which
provide critical information regarding stratigraphic relationships,
hydraulic conductivity, and water quality, took longer than anticipated. In
addition, there appears to be agreement among members of the
Hydrogeology Working Group regarding the results of the borehole data
and the conceptual model of the groundwater basin. Such collaboration is
MPRWA Meeting, 8/14/2014 , tem No. 5., tem Page 9, Packet Page 27
2
encouraging, but has required additional time. Hence, the groundwater
modeling results for the proposed project have been significantly delayed.
Second, additional time is needed to assess cumulative effects of the
MPWSP on seawater intrusion in conjunction with future operations of the
Castroville Seawater Intrusion Project (CSIP) and the Salinas Valley Water
Project (SVWP). On June 25, 2014, the Monterey County Water Resources
Agency released a Notice of Preparation for an EIR on the SVWP, Phase II.
This project seeks to capture and divert surface water from the Salinas
River to enhance the management of water resources and combat seawater
intrusion in Monterey County. Because this project description is quite
different from that anticipated in the previous Phase II concept, additional
time is required to update the groundwater modeling to address this
foreseeable project.
Third, Energy Division is concerned that the delay in groundwater
modeling could adversely impact the ability of the Monterey Regional
Water Pollution Control Agency to meet their schedule for the
Groundwater Replenishment Project EIR. This project was described most
recently in the proposed Comprehensive Settlement Agreement, dated
July 31, 2013.
Given all of these factors, it is reasonable to grant Energy Divisions
requested delay for publication of the DEIR and FEIR. The updated
schedule is set forth below. Energy Divisions letter is attached.
CPCN Track CEQA Track
No later than
January 30, 2015
DEIR circulated
for comment
MPRWA Meeting, 8/14/2014 , tem No. 5., tem Page 10, Packet Page 28
3
15 days after
issuance of
DEIR (no later
than February
17, 2015)
Cal-Am to file and
serve a common
outline for legal and
policy briefs, after
consultation with
parties
45 days after
issuance of DEIR
(no later than
March 16, 2015)
Comments on
DEIR due
60 days after
issuance of
DEIR (no later
than April 1,
2015)
Common Outline
Opening Briefs filed
and served on legal
and policy issues
75 days after
issuance of
DEIR (no later
than April 16,
2015)
Reply Briefs filed
and served on legal
and policy issues
July 2015 Phase 1 of the
Proceeding
submitted with the
publication of the
FEIR
July, 2015 (no
later than July 30,
2015)
FEIR published
3
rd
Quarter 2015 Phase 1 Proposed
Decision addressing
certification of FEIR
and issuance of
CPCN
3
rd
Quarter 2015 Target for
Commission Action
on Phase 1 PD
Comments on Phase 2 Schedule
Given the anticipated delay in the environmental review of the
Groundwater Replenishment Project, it appears that the anticipated
schedule for Phase 2 of this proceeding should be modified. Parties should
MPRWA Meeting, 8/14/2014 , tem No. 5., tem Page 11, Packet Page 29
4
comment on whether the schedule for Phase 2 of this proceeding should be
revised and provide a proposed schedule. The current schedule was set
forth in the Assigned Commissioners Scoping Memo dated September 25,
2013, and is set forth below. Comments shall be filed and served on
September 15, 2014. No reply comments are necessary.
December 2014 Phase 2 (GWR
decision phase)
commences with
testimony of
interested parties
January 2015 Settlement
discussions
January 2015 Concurrent
Rebuttal
Testimony
February 2015 Evidentiary
Hearings
March 2015 Briefing
June 2015 Target for Phase 2
Proposed Decision
July 2015 Target for
Commission
action on Phase 2
Decision
MPRWA Meeting, 8/14/2014 , tem No. 5., tem Page 12, Packet Page 30
Monterey Peninsula Regional Water Authority
Agenda Report
Date: August 14, 2014
Item No: 6.
06/12
FROM: Executive Director Cullem
SUBJECT: Receive report, discuss, and provide direction with regards to the current
status of the source water negotiations for the Monterey Regional Water
Pollution Control Agency (MRWPCA) Ground Water Replenishment
(GWR) Project.
RECOMMENDATION:
It is recommended that the Water Authority Board receive a report on the current status
of negotiations on source water for the MRWPCA Pure Water Monterey (PWM) /
Ground Water Replenishment (GWR )project, determine if any action is required at this
time, and provide direction to staff.
DISCUSSION:
The latest GWR schedule as revised June 12, 2014 by the Monterey Regional Water
Pollution Control Agency (MRWPCA) is attached. A MOU for GWR source water was to
have been completed by June 30, 2014. On July 10th, the Water Authority Board
extended the deadline to July 31 to allow more time for negotiations between the
MRWPCA and Salinas Valley agricultural representatives. Unfortunately, as of August
8th, an MOU on source water has not been reached.
As shown on the attached schedule, the completion date of the draft water purchase
agreement (WPA) is critical, and is dependent on the MOU. The Monterey Peninsula
Water Management District (MPWMD) will need enough time to complete follow-on
studies required by the settlement agreements prior to the CPUC hearings.
Although the deadline for the draft WPA is currently August 2014, as discussed in an
earlier agenda item the CPUC hearing scheduled for December 2014 is now delayed to
April 2015 as a result of problems by the CPUC consultant in completing the EIR.
Dave Stoldt, General Manager of the MPWMD, will present the latest information on
that subject at today's meeting.
Depending on information provided, some of the options available to the Water
Authority include:
MPRWA Meeting, 8/14/2014 , tem No. 6., tem Page 1, Packet Page 31
1. Determine that GWR will not be available in time for inclusion in the Peninsula
supply portfolio and decide in favor of the 9.6 mgd desal facility.
2. Agendize a decision on removal or retention of GWR for the September 11
meeting, or at a special meeting to be announced.
3. Authorize an extension of the deadlines for the GWR MOU and WPA given that the
December 2014 CPUC hearing has been delayed to April 2015.
4. Request the source water issue go to arbitration immediately as is permitted by
current agreements.
5. Take no action.
EXHIBIT:
A-GWR schedule as revised on June12, 2014
MPRWA Meeting, 8/14/2014 , tem No. 6., tem Page 2, Packet Page 32
Quarterly Check-in Call
October 2014
Qtr 2014
Comment
Cal-Am to file and serve
a common outline for
legal and policy briefs,
after consulting with
parties
15 days after issuance
of DEIR
Task Due Date Responsible Part Notes
Comments on August 30, 2013 Complete
Settlement Agreements
Due
Reply Comments on
Settlement Agreements
Due
Prehearing
Conference: Status of
Settlement Motion (if
any), of CEQA work
& other matters
September 13, 2013
September 16, 2013
Complete
Complete
Informational Hearing December 2-3, 2013 Complete
on Settlement
Agreements
Comments on DEIR
Due
Common Outline
Opening Briefs filed and
served on legal and
policy issues
45 days after issuance
of DEIR
60 Days after Issuance
of DEIR
Reply Briefs filed and 75 days after issuance
served on legal and of DEIR
policy issues
FEIR published 1 - Qtr 2015
Proposed
Decision addressing
certification of FEIR and
issuance of CPCN
Quarterly Check-in Call
with Settling Parties
Target for Commission
Action on Phase I
Quarterly Check-in Call
with Settling Parties
Quarterly Check-in Call
with Settling Parties
Qtr 2015
July 2014 MPRWA
1- Qtr 2015
October 2014 MPRWA
January 2015 MPRWA
MPRWA Meeting, 8/14/2014 , tem No. 6., tem Page 3, Packet Page 33
Monterey Peninsula Regional Water Authority
Agenda Report
Date: August 14, 2014
Item No: 7.
06/12
FROM: Executive Director Cullem
SUBJECT: Receive report, discuss, and vote on staff proposal to add the General
Manager, or District Engineer, of the Marina Coast Water District
(MCWD) as a member of the Authority Technical Advisory Committee
(TAC) and to add a MCWD hydrologist to the Monterey Peninsula Water
Supply Project (MPWSP) Hydrogeologic Working Group.
RECOMMENDATION:
Staff recommends that the Water Authority invite Marina Coast Water District (MCWD)
participation on the Technical Advisory Committee (TAC) and consider if it should make
a recommendation to the settling parties to add a MCWD hydrologist to the test slant
well Hydrogeologic Working Group (HWG).
DISCUSSION:
During January and July 2014, the City of Marina has been heavily involved in the
permitting of the bore hole construction and in consideration of a mitigated negative
declaration (MND) and coastal development permit (DP) for Cal Am's test slant well at
the CEMEX site.
During public hearings, the Marina Coast Water District (MCWD) raised a number of
concerns that suggest a lack of communication between MCWD and Cal Am, and with
the Water Authority as well. This situation has not only delayed progress on the desal
plant approval and construction, but has raised serious concerns on the part of the
MCWD and City of Marina that its water needs may be placed at risk as a result of the
desal plant slant wells.
To initiate a dialog on these issues, several informal MCWD/MPRWA management
level meetings were held during the week of August 4. Amongst other things, it was
concluded that participation by MCWD representatives on the TAC, and possibly on the
HWG, would provide early MCWD input on technical issues related to the Desal facility
and the slant wells, facilitate MCWD environmental review of the MPWSP EIR, insure
the concerns of Marina residents get timely consideration, and improve communication
between and amongst MCWD, Cal Am, and the Water Authority.
It should be noted that the TAC already has a member from the agricultural community
to articulate ag interests prior to Water Authority decisions and deliberations. Thus, the
Executive Director recommends the Authority extend an invitation to the MCWD District
Engineer (Interim General Manager) to join the TAC for the same purpose.
MPRWA Meeting, 8/14/2014 , tem No. 7., tem Page 1, Packet Page 35
Monterey Peninsula Regional Water Authority
Agenda Report
Date: August 14, 2014
Item No: 8.
06/12
FROM: Executive Director Cullem
SUBJECT: Receive report, discuss, and provide direction on the Value Engineering
(VE) Final Report for the Cal Am Desal facility, authorize forwarding of the
VE report to the Governance Committee for its action, and
authorize payment to the consultant (VMS) from funding provided by Cal
Am, not to-exceed the contract price of $109,035.70
RECOMMENDATION:
It is recommended that the Monterey Peninsula Regional Water Authority receive a
report on the Final Value Engineering ( VE) Study of the Monterey Peninsula Water
Supply Project (MPWSP), make recommendations, forward the report to the
Governance Committee for its action, and authorize contract closure and payment to
the consultant (VMS).
DISCUSSION:
The draft preliminary Value Engineering (VE) Study for 30% design of the desal facility
was briefed to a joint meeting of the Governance Committee and the MPRWA at a
special meeting on July 10 and to the TAC on Aug 4. The Final report is now complete
and the full text is available on the Water Authority web site http://www.mprwa.org/wp-
content/uploads/2012/03/MPWSP-Final-VE-Report.pdf and on the Cal Am MPWSP
project web site www.watersupplyproject.org .
It should be noted that the VE study focuses on value improvements, in particular
potential cost savings. Requirements mandated by the settlement agreements, as well
as directions from the Governance Committee on environmental and aesthetic issues,
should still be incorporated into the design.
Following review and comment by the MPRWA, the Final Report will be forwarded to
the Governance Committee for action in accordance with the Governance Agreement.
BUDGET CONSIDERATIONS:
The Water Authority awarded the VE contract on behalf of the Governance Committee
to VMS on June 12, 2014 at a price not-to-exceed $109,35.70. It also approved a
contingency of not-to-exceed $11,000.00. The contract was fully paid for by Cal Am.
The contract work is now complete and it has not been necessary to utilize the
MPRWA Meeting, 8/14/2014 , tem No. 8., tem Page 1, Packet Page 37
contingency funds. Thus, the contractor can be paid and the contract closed. Any
unused funds remaining in the deposit account will be returned to Cal Am.
EXHIBITS:
A-Executive Summary of the VE Study
MPRWA Meeting, 8/14/2014 , tem No. 8., tem Page 2, Packet Page 38
EXECUTIVESUMMARY
MPRWA Meeting, 8/14/2014 , tem No. 8., tem Page 3, Packet Page 39
MontereyPeninsulaWaterSupplyProjectDesalinationPlant ExecutiveSummary
EXECUTIVESUMMARY FINALREPORT
AValueEngineering(VE)study,sponsoredbytheMontereyPeninsulaRegionalWaterAuthorityand
facilitatedbyValueManagementStrategies,Inc.,wasconductedfortheDesalinationPlantportionof
theMontereyPeninsulaWaterSupplyProject.ThestudywasconductedattheofficesofCalifornia
AmericanWaterinMonterey,CaliforniaJuly7through11,2014.ThisExecutiveSummaryprovidesan
overviewofthesubjectproject,summaryresultsoftheVEteamsanalysis,andthealternatives
developedbytheVEteam.
PROJECTSUMMARY
LedbyCaliforniaAmericanWaterCompany(CAW),theMontereyPeninsulaWaterSupplyProject
(MPWSP)isacomplex,multicomponentprogramthatisnecessarytoreplacealargepercentageof
thelocaldrinkingwatersupplythatcurrentlyoriginatesfromtheCarmelRiver.StateWater
ResourcesControlBoard(SWRCB)Order9510requiresCAWtoreducediversionsfromtheCarmel
Riverbyapproximately70%nolaterthanDecember31,2016.
InordertomeetthecutbackrequirementsandprovideadequatewatertotheMontereyPeninsula
communities,CAWplansincludethreeprojectstoaddressthisregionalwatercrisis:
DesalinationofseawaterfromwellsdrawingwaterfromMontereyBay
GroundwaterReplenishment(GWR)withadvancedtreatmentofwastewaterbytheMonterey
RegionalWaterPollutionControlAuthorityPlant
AquiferStorageandRecovery(ASR)
ThisVEstudyfocusedsolelyonthedesalinationplantportionofthewatersupplyproject.
Treatmentatthedesalinationplantwillconsistofoxidationwithsodiumhypochlorite,granular
mediafiltration,dechlorination,pHadjustmentwithsulfuricacid,cartridgefiltration,afirstpassof
seawaterreverseosmosis(SWRO),apartialsecondpassofbrackishwaterreverseosmosis(BWRO),
disinfectionwithultravioletlight,poststabilizationtreatmentwithcarbondioxideandhydratedlime,
pHadjustmentwithsodiumhydroxide,additionofanorthophosphatecorrosioninhibitorandpost
chlorinationwithsodiumhypochlorite.
CDMSmithwasselectedastheconsultantforthedesalinationplantdesignbuildproject.Theirwork
willincludethedesign,constructionandcommissioningoftheproposedseawaterdesalinationplant.
Theplannedfacilitiesincludethetreatmentplant,treatedwaterstorageandpumping,and
concentratestorageanddisposalfacilities.
Constructioncostsforallelementsofthedesalinationplantarecurrentlyestimatedat$74,029,943.
PROJECTPURPOSEANDNEED
TheprimarypurposeoftheoverallMPWSPistoreplaceexistingwatersuppliesthathavebeen
constrainedbylegaldecisionsaffectingtheCarmelRiverandSeasideGroundwaterBasinwater
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MPRWA Meeting, 8/14/2014 , tem No. 8., tem Page 4, Packet Page 40
MontereyPeninsulaWaterSupplyProjectDesalinationPlant ExecutiveSummary
resources.ThepurposeofthedesalinationplantportionoftheMPWSPistotreatthewatersupplied
bytheseawaterintakewellssufficienttomeettheapplicablewaterqualitystandards.
VESTUDYBASIS
TheVEstudywasbasedonthe30%DesignSubmittaldocumentspreparedbytheprojectsdesign
buildcontractor,CDMSmith,datedJune,2014.
VESTUDYOBJECTIVES
TheVEteamwastaskedwithexploringideastoimproveprojectvalueby:
Reducingprojectcostwithoutsacrificingfunctionality
Identifyingopportunitiestoimprovethedesalinationplantsoperationsandreliability
Identifyingrecommendationsforreducinglongtermoperationalcosts
Improvingtheoverallmaintainabilityofthefacility
EVALUATIONOFBASELINECONCEPT
ThefirstdayoftheVEstudyincludedmeetingswithCDMSmithand
otherprojectstakeholderrepresentatives.DuringtheVEteamsanalysis
ofthebaselineconcept,anumberofanalyticaltoolsandtechniques
wereusedtodevelopathoroughunderstandingofthefunctional
requirementsoftheprojectandhowwellthebaselineconceptwas
performingthefunctions.Amajorcomponentofthisanalysiswasthe
useofValueMetrics,whichseekstoassesstheelementsofcost,
performance,time,andriskastheyrelatetoprojectvalue.These
elementsrequiredadeeperlevelofanalysis,theresultsofwhichare
detailedintheProjectAnalysissectionofthisreport.Thekey
performanceattributesidentifiedfortheprojectarelistedinthetable
ontheright,PerformanceAttributes.
BelowisasummaryofthemajorobservationsandconclusionsidentifiedduringtheVEteamsinitial
analysisofthebaselineconceptwhichledtheVEteamtoidentifythealternativesresultingfromthis
studyandpresentedherein.
Buildingsarelocatedontheareaofthesitemostpronetosettlementduringaseismicevent.
Theprojectisassumingdeepdynamicsoilcompactiontoaddresscollapsiblesoils.
UVtreatmentappearstobeincludedtoaddresstemporaryuncertaintyregardingtreatment
processandconcernswithobtainingsufficientlogremovalforpathogenremoval.
Thecurrentdesignincludesdirectfeedfromintakestopressurefilterswhichcouldresultin
sandanddepositscloggingthesystem.
Thebaselineconceptassumesaportionoftheintakewatermustbereturnedaftertreatment
toagricultureproperties.
PerformanceAttributes
Maintainability
PlantOperations
FutureFlexibility
EnvironmentalImpacts
Sustainability
Aesthetics
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MPRWA Meeting, 8/14/2014 , tem No. 8., tem Page 5, Packet Page 41
MontereyPeninsulaWaterSupplyProjectDesalinationPlant ExecutiveSummary
TheprojectwillusegranularpressurefiltersforpretreatmentofseawaterpriortotheRO
membranestoremoveironandmanganese.
Thecurrentdesignisprovidingstoragetanksforfilteredwaterinordertomaintainconstant
pumpheadthroughtheROprocess.
Theprojectassumesabrinedisposalbasinwillbenecessarywhenwastewatertreatment
plant(WWTP)dischargeoutfallisnotavailable.
Thedesalinationplantmayhaveanissueremovinglargeequipmentformaintenancerelative
toaccessandequipmenttransport.
Thecurrentdesignshowspumpsinchemicalstoragesumps.Itisnotfullyunderstoodwhere
thepumpsdischarge.
Theprojectiscurrentlyplanningforrigorousacceptancetestproceduresandrequirements.
Theinstallationofpreengineeredmetalbuildingswillrequiretreatmenttopreventcorrosion
andwillrequiremaintenanceoverthelifeofthefacility.
Thecurrentprocessdesignisrecapturing45%ofthefirstpasstreatmentwaterand90%of
thesecondpasstreatmentwater(averageof43%totalrecoveryfortheplant).
Additionally,sustainabilityevaluationswereconductedtoassessthebaselineconceptagainstthe
sustainabilityrequirementsofboththeU.S.GreenBuildingCouncil(LEED)andtheInstitutefor
SustainableInfrastructure(Envision).TheresultingsustainabilityassessmentisincludedintheProject
Analysissectionofthisreport.
RISKANALYSIS
AqualitativeriskanalysiswasperformedinconjunctionwiththeVEstudytoidentifyrisksrelatedto
projectcost,time(schedule),andabilitytoperformitsrequiredfunctions.TheVEteamalso
discussedandidentifiedpossibleriskmitigationstrategiesinanefforttoreducetheoverallrisk
profileoftheproject.RiskRegistersweredevelopedfortheprojectandareprovidedintheProject
Analysissectionofthisreport.TheseRiskRegistersprovidealloftheinformationforeachrisk
includingdescriptions,probabilities,impactsandpotentialriskresponsestrategies.
Thefollowingarethekeylessonslearnedidentifiedasaresultoftheriskanalysisexercise:
Thereiscurrentlynorawwaterqualitydataavailable.Waterqualitymayimpactthe
assumptionsrelativetotheplantstreatmentprocessesandcapacities.
Plantcapacityrequirementsaredependentontheimplementationandsuccessofthe
groundwaterreplenishmentprojectwhichiscurrentlybeingdeveloped.
Approvaloftheenvironmentaldocumentsandregulatorypermitsmayrequirerevisionsto
theprojectdesign.
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MPRWA Meeting, 8/14/2014 , tem No. 8., tem Page 6, Packet Page 42
MontereyPeninsulaWaterSupplyProjectDesalinationPlant ExecutiveSummary
Amajorityoftherisksidentifiedarebeingactivelymonitoredandmanagedbytheprojectdesign
teamandprojectmanagementteams.KeyriskmitigationstrategiesidentifiedbytheVEteam
includedmembranepretreatmenttomitigatetheriskassociatedwithunknownsourcewaterquality,
andrevisingtheconstructionscheduletoallowtherespectivefeaturestimetoberevisedwhen
informationbecomesavailable.
VESTUDYRESULTS
TheVEteamidentified33VEAlternativesand13DesignCommentstosupportoverallprojectvalue.
TheVEAlternativesareorganizedbytheprimarytopicorprojectaspecttowhichtheyrefer:
BuildingDesignandSiteAlternatives
WaterTreatmentEquipmentandEquipmentLayoutAlternatives
MaintainabilityAlternatives
RiskMitigationandScheduleAlternatives
TreatmentProcessAlternatives
Ofthesealternatives,16wereselectedandrecommendedbytheVEteamasacumulatively
implementablealternativestrategyfocusedonenhancingoverallvaluepotentialfortheproject.The
alternativeshavebeensummarizedinthefollowingsectionofthisreport.Thetotalnetpotential
costsavingsoftheVEStrategyisapproximately$9millionininitialcostsavingsand$23millioninlife
cyclecostsavings.Itshouldbenotedthatanumberofthesealternativeswouldincreasetheinitial
projectcosts;however,theyinturnprovidebenefitstoprojectperformanceorinthereductionof
maintenanceandenergyusage.
ToevaluatetheperformanceoftheVEStrategy,theVEteamconsideredthecombinedeffectofall
VEalternatives.Thetotalperformancescoresreflecttheperformanceratingforeachattribute
multipliedbyitsoverallpriority(weight)expressedusingaratioscale.Thefollowingchartcompares
thetotalperformancescoresforthebaselineconceptandtheEnhancedValueVEStrategy.
ComparisonofPerformance
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0
EnhancedValueCombination
BaselineConcept
Maintainability PlantOperations FutureFlexibility
EnvironmentalImpacts Sustainability Aesthetics
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MPRWA Meeting, 8/14/2014 , tem No. 8., tem Page 7, Packet Page 43
MontereyPeninsulaWaterSupplyProjectDesalinationPlant ExecutiveSummary
ThetablebelowsummarizesthesavingsassociatedwiththeEnhancedValueStrategy.The
performancescoresweredividedbythetotalcostscoresforthestrategytoderiveavalueindex.The
valueindexfortheVEStrategywasthencomparedagainstthevalueindexofthebaselineconcept
andthedifferenceisexpressedasapercentchange.
SummaryofVEStrategy
StrategyDescription InitialCostSavings
LCC
Savings
Performance
Change
Value
Change
EnhancedValueCombination $9,161,000 $23,204,000 +13% +29%
TheComparisonofValuechartbelowsummarizesthetotalimpacttoprojectvalueresultingfromthe
VEStudy.Thebluebarsrepresenttotalprojectperformanceandthegreenbarsrepresenttotalcost.
DetailsandadditionalanalysisofthebaselineconceptandVEStrategyperformanceratingsare
includedintheProjectAnalysissectionofthisreport.
ComparisonofValueBaselineConceptandVEStrategy
VEALTERNATIVEIMPLEMENTATION
VEstudiesareworkingsessionswiththepurposeofidentifyinganddevelopingalternative
approachestoagivenproject,thenpresentingthemtoallprojectstakeholdersforconsideration.
DuringtheVEStudy,aSpecialJointMeetingoftheMontereyPeninsulaWaterSupplyProject
GovernanceCommitteeandMontereyPeninsulaRegionalWaterAuthoritywasheldtopresentand
discussthepreliminaryresultsoftheVEStudy.Themeetingwasopentothepublicandattendees
hadtheopportunitytoquestionandcommentontheVEstudyresults.
0%
29%
0%
5%
10%
15%
20%
25%
30%
35%
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
Baseline EnhancedValue
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Performance Cost/TimeRating ChangeinValue
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MPRWA Meeting, 8/14/2014 , tem No. 8., tem Page 8, Packet Page 44
MontereyPeninsulaWaterSupplyProjectDesalinationPlant ExecutiveSummary
Detailedfeasibilityassessment,determinationoftheVEalternativesimplementation,andfinal
designdevelopmentwillbemadefollowingsubmittalofthisFinalVEStudyReport.
VETEAM
ParticipantsontheVEteamincludedindependenttechnicalexpertsfromHDREngineering,Inc.and
WaterGloberepresentingArchitecture,PlantOperations/Maintenance,Sustainability(LEEDand
Envision),Civil/StructuralEngineering,Electrical/Instrumentation&Controls,andWaterTreatment
Processes.RepresentativesfromCaliforniaAmericanWateralsoparticipatedtoprovideinsightinto
theirPlantOperationsandMaintenanceproceduresaswellastheirengineeringstandardsand
requirementsfortheproject.ThepublicinterestswererepresentedbyMontereyPeninsulaRegional
WaterAuthorityandMontereyPeninsulaWaterManagementDistrict.Afulllistofparticipantsinthe
VEstudyisincludedfollowingtheValueEngineeringProcesssectionofthisreport.
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MPRWA Meeting, 8/14/2014 , tem No. 8., tem Page 9, Packet Page 45
Monterey Peninsula Regional Water Authority
Agenda Report
Date: August 14, 2014
Item No: 9.
06/12
FROM: Executive Director Cullem
SUBJECT: Receive report, discuss, and provide direction on the power purchase
agreement between Cal Am and the Monterey Regional Waste
Management District (MRWMD).
RECOMMENDATION:
It is recommended that the Water Authority Board receive a report on the status of
negotiations between Cal Am and the Monterey Regional Waste Management District
(MRWMD) for renewable electrical power for the Desalination (Desal) facility.
DISCUSSION:
With support from the Water Authority, Cal Am and the staff of the MRWMD have
diligently worked on a term sheet and power purchase agreement to allow Cal Am to
acquire between 3.5 and 4.5 megawatts of renewable electrical power for the Desal
facility from the landfill. An electrical power study, funded by Cal Am, determined how
best to provide power "over the fence" and what equipment would be required.
The power purchase agreement that the MRWMD currently has with PG&E expires his
fall, and the District needs to obtain new customers for that power now. Unfortunately,
the current schedule for a CPCN decision by the CPUC prevents Cal Am from entering
into a purchase agreement at this time.
However, an agreement was reached by which MRWMD will seek short-term (3-5 year)
customers for its power allowing Cal Am to be considered as a longer term customer in
the 2017-2019 time frame. That will provide sufficient time for the Desal permitting
process to be completed, the CPCN issued, and for construction to advance far enough
along for Cal Am to be able to enter into a power purchase agreement and actually
utilize the renewable power. The attached staff report to the MRWMD board seeking
approval to advertise for power sales provides a good summary of the situation.
EXHIBIT:
A-MRWMD Staff Report on RFP for Renewable Power dated July 11, 2014
MPRWA Meeting, 8/14/2014 , tem No. 9., tem Page 1, Packet Page 47
neral Manager
Memorandum
DATE:
TO:
FROM:
SUBJECT:
Reviewed by:
July 11, 2014
General Manager
Assistant General Manager
Issuance of a Request for Proposals for the Sale of Renewable Power
RECOMMENDATION: That the Board authorize issuance of a Request for Proposals for the sale of 8.2
megawatts of Renewable Power generated from the Landfill Gas to Energy Facility.
BACKGROUND
The District presently produces bundled renewable electricity and renewable energy credits (RECs) from the 5-
megawatt (MW) Landfill Gas (LFG) Power Plant located on site in Marina, CA. The current Power Sales
Agreement (PSA) for this is set to expire on February 28, 2015. In a parallel effort, the District is the process
of obtaining a new interconnection agreement with local utility PG&E for the ability to produce an additional up
to 3.2 MWs of LFG power in subsequent years. This would bring the District's total LFG power production up
to 8.2 MWs in future years. In order to finalize this new interconnection agreement, the District must make a
decision regarding anticipated power sale strategy for this new generation by September 2014.
DISCUSSION
District consultant Brennen Jensen has been working with staff to explore options for sale of the District's
renewable power produced from LFG, to include the existing 5 MWs (minus what the District uses on-site) plus
an additional 3.2 MW of new power to be produced from LFG. The District's current PSA (for 5 MWs) expires
early in 2015. The additional 3.2 MWs is anticipated to be phased in over time in two subsequent phases, based
on actual availability of LFG following the full installation of the permanent flare already underway. The first
phase anticipates the installation of 1.6 MWs within 18-24 months. The second phase anticipates an additional
1.6 MW within five years. At this time, the District is exploring options for a multi-year agreement for the sale
of this power, associated Renewable Energy Credits (RECs), and associated green attributes as summarized
below:
1. Marina LFG Facility (Up to 5 MWs, available beginning March 1, 2015)
o Bundled Renewable Electricity and Renewable Energy Credits (Bucket 1)
o Associated Green Attributes
2. Marina LFG Facility (Additional up to 3.2 MWs; installed in two phases, planned availability beginning in
2016)
o Bundled Renewable Electricity and Renewable Energy Credits (Bucket 1)
o Associated Green Attributes
14201 DEL MONTE BLVD
k BOX 1670 MARINA, CA 93933-1670 831/384-5313, FAX 831/384-3567 * www.mrwmd.org
PRINTED ON RECYCLED PAPER USING SOY-BASED INK
12
MPRWA Meeting, 8/14/2014 , tem No. 9., tem Page 2, Packet Page 48
Issuance of RFP for Sale of LFG Renewable Energy
July 11, 2014
Page 2
One of the options for selling the District's power in the future, is to sell 5 MWs (more or less) "over the
fence" to the proposed CalAm Desalination Plant. On June 23', staff met with CalAm representative Ian
Crooks, and with Monterey Peninsula Regional Water Authority Executive Director Jim Cullem to allow each
to provide a status update. CalAm has continued interest to purchase the District's renewable power. Mr.
Crooks reported that their draft EIR will be released in August 2014, and final EIR approval is anticipated for
February 2015. CalAm would consider discussing a PPA in November or so of 2014 and could possibly
finalize a PPA by March 2015, if there are no delays in the EIR approval process. CalAm would not be
prepared to accept power from the District for at least three to five years, or more. This timing does not
integrate well with the District's need to respond to ongoing PG&E requirements to add additional generating
capacity and to replace the soon to expire PPA. The CalAm representative has indicated that CalAm is
supportive of this approach by the District and they plan to attend the Board meeting to voice that support.
Issuance of a RFP for the sale of 8.2 MWs of renewable power generated from the LFG to Energy Facility will
help to ascertain what opportunities are currently present within the marketplace for the existing and anticipated
LFG to energy power production, following the expiration of the current PSA.
FINANCIAL IMPACT
There is no financial impact to this request. Following the completion of the RFP process, staff will
recommend actions based on the responses provided. The RFP does not commit the District to entering into
any agreement with any responding party.
STRATEGIC PLAN
This item is in line with the Renewable Energy Production Policy within the strategic plan.
CONCLUSION
It is recommended that the Board authorize the issuance of a RFP for the sale of 8.2 MWs of renewable power
generated from the LFG to Energy Facility. Proposals will be due on August 15, 2014 and a staff report and
recommendation is anticipated for the August or September Board meeting.
o: \ If\ Ifg\ Ifg rfp board memo 714.docx
MPRWA Meeting, 8/14/2014 , tem No. 9., tem Page 3, Packet Page 49
LFG PSA REP DRAFT
Monterey Regional Waste Management District
Request for Proposals for the Purchase of Renewable Electricity, Renewable Energy
Credits and Related Green Attributes at
Monterey Regional Waste Management District
(Marina, CA)
BACKGROUND
The Monterey Regional Waste Management District (District) is an award - winning 62- year - old
Special District and Joint Powers Authority (JPA), covering 853 square miles, representing eight member
agencies and comprising seventeen communities on the Monterey Peninsula from Moss Landing to Big
Sur. The District provides services to populations across the four counties of Monterey, Santa Cruz, San
Benito and Santa Clara. The District's mission is to provide the highest quality, cost- efficient, integrated
waste management services to the greater Monterey Peninsula, while preserving the environment and
protecting the public health through the reduction, reuse, recycling, and safe disposal of the region's
waste stream. The award winning agency has adopted and implemented a multitude of innovative and
integrated programs and policies over its extensive history, resulting in such prestigious recognitions as:
A Best Solid Waste System in North America by Solid Waste Association of North America
(SVVANA), 1998
Gold Excellence Award for Landfill Gas Utilization by SWANA, 2007
A pioneer in Landfill Gas (LFG) to Renewable Energy, the District established one of the first such plants
in the nation in 1983. For over 30 years, the District has practiced continued innovation in LFG capture
and beneficial utilization. The District currently generates 5MW of LFG renewable energy, and is in the
process of expanding the current plant to increase generation an additional 3.2 MW over the next several
years. The District further has a long- standing Renewable Energy Production Policy as a core objective
within their current strategic plan. As part of this continued commitment, the District also launched the
first in California dry fermentation anaerobic digester (AD) in 2013, using SmartFerm technology to
convert food scrap organics into Renewable Energy and high- quality soil amendment.
The District presently produces bundled renewable electricity and renewable energy credits (RECs) from
the 5MW LFG Power Plant located on site in Marina, CA. The current Power Sales Agreement for this
set to expire on February 28, 2015. The District is exploring options for a multi- year agreement for
the sale of the following products:
1. Marina LFG Facility (Up to 5MW, available beginning March 1, 2015)
o Bundled Renewable Electricity and Renewable Energy Credits (Bucket 1)
o Associated Green Attributes
Marina LFG Facility (Additional up to 3.2MW; installed in two phases, planned availability
beginning in 2016
o Bundled Renewable Electricity and Renewable Energy Credits (Bucket 1)
o Associated Green Attributes
The District is seeking Proposals for the purchase of any or all of these products for any duration of time.
Interested parties should express their interest including additional buyer requirements in their response.
Version: 7/11/14
MPRWA Meeting, 8/14/2014 , tem No. 9., tem Page 4, Packet Page 50
LFG PSA RFP DRAFT
Responses that include creative options to maximize District revenue will also be considered. Reponses to
this Request for Proposals shall be used as the basis to enter into negotiations with selected respondents.
TENTATIVE SCHEDULE:
Supply Available:
Term of Agreement:
Product Available:
RFP Release Date
Proposals Due
Complete Proposal Review, Select Best Candidate(s), Begin Interviews
and/or Negotiations
Finalize Agreement(s) for Renewable Power Sales with selected
Candidate(s)
New PSA brought before MRWMD Board for final approval Jan 2015
Existing PSA Expires
New PSA Effective Date
LFG Renewable Energy
Monterey Regional Waste Management District
Reliable supplier of LFG renewable energy for over 30 years
Up to 8.2 MW-
5 MW, available immediately upon start date March 1, 2015;
Additional up to 3.2 MW available shortly thereafter in two phases:
(1.6 MW by 2016 + 1.6 MW anticipated circa 2020).
3-5 year term desirable, with option to extend (March 1-2015 to February
28, 2018/2020); Proposers may submit terms of any length as terms of
shorter or longer duration will be considered based on responses received.
Bundled Renewable Power & Renewable Energy Credits (Bucket 1) and
Associated Green Attributes
July 18, 2014
August 15, 2014
September 12, 2015
December 22, 2014
January 16(23), 2015
February 28, 2015
March 1, 2015
SUMMARY OF REQUEST:
Power:
Supplier:
Agreement Start Date: March 1, 2015
INTERESTED PARTIES
Interested parties should respond to this notice with a brief proposal providing the following minimum
information, including any additional buyer requirements:
1. Company Name and Primary Contact Information including: Name, Address, Phone, and Email.
2. Company Qualifications
3. Products of Interest
4. Desired Term
5. Breakdown Price Offering
6. Identify All Other Terms requested in PSA (Especially those which may affect Price Paid)
Version: 7111/14
MPRWA Meeting, 8/14/2014 , tem No. 9., tem Page 5, Packet Page 51
LFG PSA REP DRAFT
7. Other Considerations, or Creative Offerings
SUBMISSION INSTRUCTIONS:
Proposals are due Friday August 15, 2014 @ 4pm PST. Proposals can be mailed, emailed or hand-
delivered.
Submit proposals to:
Mail Delivery:
Email Delivery:
Hand-Delivery:
Monterey Regional Waste Management District
Attn: Becky Aguilar, Administrative Support Supervisor
PO Box 1670
Marina, CA 93933
Please email submissions to both:
Becky Aguilar, Administrative Support Supervisor
baguilar@mrwmd.org
Tim Flanagan, Assistant General Manager
tflanagan@mrwmd.or2
Monterey Regional Waste Management District
Attn: Becky Aguilar, Administrative Support Supervisor
14201 Del Monte Blvd
Marina, CA 93933
[Note, site gates close at 4pm; proposals due by 4pm]
ADDITIONAL INFORMATION:
Additional facility information is available upon request. Please contact Brennen Jensen at
bjensen emergingecologies.com
or (831) 917-3720. Site visits can be arranged if requested.
Version: 7/1 1 /14
MPRWA Meeting, 8/14/2014 , tem No. 9., tem Page 6, Packet Page 52
Monterey Peninsula Regional Water Authority
Agenda Report
Date: August 14, 2014
Item No: 10.
06/12
FROM: Executive Director Cullem
SUBJECT: Receive report, discuss, and provide direction on the City of Marina test
slant well Coastal Development Permit (CDP) and the current schedule for
Coastal Commission CDP.
RECOMMENDATION:
Staff recommends that the Water Authority receive an update from Cal Am on the
Marina Mitigated Negative Declaration (MND) for the Test Slant Well and discuss the
approval process and schedule to be followed in obtaining a City of Marina CDP and a
Coastal Commission CDP. The Authority should also receive an update on the National
Ocean and Atmospheric Administration (NOAA) Monterey Bay National Marine
Sanctuary (MBNMS) Environmental Assessment (EA).
DISCUSSION:
The City of Marina Planning Commission considered the MND and Marina CDP at its
meeting of July 10, 2014 but was unable to come to a decision. Accordingly, Cal Am
appealed the failure to act to the Marina City Council. The Council is scheduled to hear
the appeal at a special meeting on August 26.
In parallel with the Marina processing, Monterey Bay National Marine Sanctuary
(MBNMS) has circulated its draft federal Environmental Assessment (EA). The
Executive Director commented to the MBNMS in favor of the EA on behalf of the Water
Authority.
To keep the schedule on track and to conduct as much work as possible concurrently,
Cal Am brought the Request for Proposal (RFP) for the test slant well construction to
the Governance Committee on July 16, 2014.
The current Marina schedule for approval and construction of the test well and for the
hearing at the Coastal Commission is at Exhibit A.
Cal Am has been requested to brief the Water Authority on the status of the schedule.
EXHIBITS:
A- Cal Am schedule for approval and construction of the test slant well
MPRWA Meeting, 8/14/2014 , tem No. 10., tem Page 1, Packet Page 53
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