Agenda

Monterey Peninsula Regional Water Authority (MPRWA)
Technical Advisory Committee (TAC)
Regular Meeting

10:30 AM, Monday, October 7, 2013
Council Chamber
580 Pacific Street
Monterey, California

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM TAC MEMBERS

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

APPROVAL OF MINUTES

1. August 19, 2013

AGENDA ITEMS

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

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

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

ADJOURNMENT



The Monterey Peninsula Regional Water Authority is committed to include the disabled in all of
its services, programs and activities. For disabled access, dial 711 to use the California Relay
Service (CRS) to speak to staff at the Monterey City Clerk’s Office, the Principal Office of the
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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 Clerk’s Office at
(831) 646-3935 to coordinate use of a device or for information on an agenda.

Agenda related writings or documents provided to the MPRWA are available for public
Created date 10/04/2013 1:05 PM Monday, October 7, 2013
2

inspection during the meeting or may be requested from the Monterey City Clerk’s Office at 580
Pacific St, Room 6, Monterey, CA 93940. This agenda is posted in compliance with California
Government Code Section 54954.2(a) or Section 54956.



M I N U T E S
MONTEREY PENINSULA WATER AUTHORITY (MPRWA)
TECHNICAL ADVISORY COMMITTEE (TAC)
Regular Meeting
2:00 PM, Monday, August 19, 2013
COUNCIL CHAMBER
580 PACIFIC STREET
MONTEREY, CALIFORNIA

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

Members Absent: None

Staff Present: Legal Counsel, Executive Director, Clerk

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

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM TAC MEMBERS

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

Chair Burnett reported on meetings with the Coastal Commission and thanked all parties
involved for their efforts during the California Public Utilities Commission settlement agreement.
He then reported that commissioners from the CPUC were in Carmel and met with staff to
discuss water issues.

PUBLIC COMMENTS

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

APPROVAL OF MINUTES

1. July 15, 2013
Action: Approved

On motion, the TAC approved the Minutes of July 15, 2013 as presented. 6-0-0-1 Riley
Abstained.
MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 1., Ìtem Page 1, Packet Page 1
MPRWA TAC Minutes Monday, August 19, 2013



2


AGENDA ITEMS

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

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

The item was opened for public comment. Nelson Vega requested clarification for what projects
are eligible for specific bond monies and if there were any for desal specifically. Having no
further requests to speak, public comment was closed. Member Stoldt spoke to Mr. Vega’s
question, indicating the water is split for allocation for different types of water projects. Regional
monies are supposed to be distributed to the region, which there will always be, and the
designations are not known for the additional categories at this time.

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

3. Discuss and Provide Recommendations Regarding Progress of the Ground Water
Replenishment Project
Action: Received Update and Discussed

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

Mr. Israel outlined the following upcoming activities:
• Meet with CPUC environmental consultants to coordinate CEQA
• Facilitate Additional source water meeting tours
• Consider bids for leased equipment for pilot treatment testing
• Develop proposed project definition through ac opponent screening analysis.

MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 1., Ìtem Page 2, Packet Page 2
MPRWA TAC Minutes Monday, August 19, 2013



3
The item was opened to public comment. Nelson Vega questioned if the peninsula had a right
to use the water in the agricultural wash ponds. Mr. Israel indicated he has a meeting
scheduled to determine that question but that Salinas Valley would likely have first right of the
water and any extra water would be available for the Peninsula but in the future, it could be
different. Sue McCloud spoke to the need to inform the public about proper disposal and
practices for things like pharmaceuticals. She then spoke to a documentary regarding the
Potomac that has parallels to local water issues and could be useful. Having no further
requests to speak, public comment was closed.

The TAC then discussed the water rights and the changes in water usage demands due to
produce operating facilities operating year round. This item was for information only and no
action was taken.

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

Executive Director Cullem spoke to the item and the significance of Areas of Biological
Significance (ASBS) in our area. Recent meetings have been about thinking of storm water as
feed water and determinations are underway to find out if there is enough capacity in the
MPRPCA to process all storm water as waste water. Storm water is an issue all peninsula cities
will need to address. Mr. Israel spoke to the flows and the facility capacity and is advocating for
an integrated plan. If successful, it could be a model for other cities in the future. The item was
opened to public comment and there were no requests to speak.

5. Approve Amendment to Meeting Schedule
Action: Approved

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

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


ADJOURNMENT

Respectfully Submitted, Approved,





Lesley Milton, Committee Clerk Jason Burnett, TAC Chair

MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 1., Ìtem Page 3, Packet Page 3

Monterey Peninsula Regional Water Authority
Agenda Report

Date: October 07, 2013
Item No: 2.


№08/12


FROM: Executive Director Cullem


SUBJECT: Water Authority Work Plan for FY 2013/2014

RECCOMENDATION:

Staff recommends that the TAC provide suggestions with respect to the proposed Water
Authority Work Plan for the balance of FY 2013/2014.

DISCUSSION:

Through September 1, 2013, the Monterey Peninsula Water Authority has focused its efforts on
securing a new peninsula water supply project and in endeavoring to keep the public informed
and involved in the process. Following the SPI studies, the April 2012 submission of a Cal Am
application to the CPUC for the MPWSP, a lengthy and tedious CPUC settlement process, and
close collaboration with the MPWMD amongst others, the Authority has accomplished the first
big step in obtaining a new water supply.
As we move further into FY 2013/2014, staff suggests the Authority focus on several important
tasks which remain:
Completion of Post-settlement activities and follow-up with settling parties through Oct 2015
• Assist passage of legislation to implement securitization and work collaboratively
with MPWMD and Cal Am to obtain Water Rate Relief Bonding and other public
funding to minimize costs to the ratepayer
• Work collaboratively with MPWMD and MRWPCA to approve and complete the
GWR project
• Take the initiative and develop a record of effort to obtain a CDO time extension free
of a rationing requirement
• Actively pursue public outreach and education efforts through our WA consultant in
cooperation with MPWMD and its Public Outreach Committee
• Pursue opportunities to increase the use of storm water in future water supply
projects

MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 2., Ìtem Page 1, Packet Page 5

Monterey Peninsula Regional Water Authority
Agenda Report

Date: October 07, 2013
Item No: 3.


№08/12


FROM: Executive Director Cullem


SUBJECT: Receive Update on the Status of the Ground Water Replenishment Project,
Discuss Key Impediments to the Project and Provide Recommendations for a
Strategy of Support for The Authority


RECOMMENDATION:

Staff recommends that the TAC consider recommendations to the Water Authority as to how
best to support the Ground Water Replenishment (GWR) project proposed by the Monterey
Regional Water Pollution Control Agency (MRWPCA).

DISCUSSION:

Attached is a memo from Water Authority Vice-President Burnett to PCA General Manager
Keith Isreal requesting direction as to how best the Water Authority can support the PCA’s GWR
project.
At its next meeting, the Water Authority will likely include active support of GWR as an item in its
FY 2013-2014 work plan.
The TAC considered the issue of “net present value” for cost comparisons between GWR and
DESAL at it’s meeting of July 15, 2013. Additional issues as outlined by Jason Burnett now
need to be considered by the TAC.

MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 3., Ìtem Page 1, Packet Page 7
Page 1 of 1
From: "Jason Burnett" <jason.burnett@gmail.com >
To: "Keith Israel" <keith@mrwpca.com>, "Dave Stoldt" <dstoldt@mpwmd.net >
Cc: "Jim Cullem" <j.ecull@comcast.net >, "Lesley Milton" <lmilton@ci.seaside.ca.us >
Sent: Friday, September 13, 2013 11:19:40 AM
Subject: GWR for the TAC
Keith and Dave,
Thank you both for you excellent presentations last night. The Water Authority will be finalizing our
work plan to include moving GWR forward as one of the top three priorities (along with following
through on the settlement agreement and engaging on the CDO). The Water Authority board asked that,
as chair of the TAC, I move quickly to develop a plan for how we will engage on GWR. Therefore, I
would like to ask you both to give thought to how best the Water Authority and the TAC can engage
with the PCA and the District on GWR.
In particular, would you be able to come to the October 7th TAC meeting having identified a draft list of
the key impediments to GWR combined with a timeline and general plan for how we are working
through those impediments?
My list would include:
--- Source Water
WPA
--- Longevity of water supply
--- Evaluation of externalities
--- others?
We might want to develop a Water Authority position statement for GWR similar to how we developed
one for desal.
I will be reaching out to Dennis Allion to have a similar conversation but wanted to give you both time
to think about it before I do so.
Thank you,
Jason
Jason K. Burnett
831.238.0009 (cell)
jason.burnett@gmail.com
file://C ADocuments and Settings\lmilton\Local Settings\Temp\XPgrpwise\524DEEE7COS... 10/4/2013
MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 3., Ìtem Page 2, Packet Page 8
Monterey Peninsula Regional Water Authority
Agenda Report

Date: October 07, 2013
Item No: 4.


№08/12


FROM: Executive Director Cullem


SUBJECT: Consider and Provide Recommendations for Water Supply Projects Task List
and Schedule - (Burnett)

RECCOMENDATION:

Staff recommends that the TAC review and provide comments to the Water Authority with
respect to the attached Schedule and Task List for the MPWSP Post Settlement activities.

DISCUSSION:

Following the April 2012 submission of a Cal Am application to the CPUC for the MPWSP, a
lengthy and tedious CPUC settlement process was pursued leading to two multi-party
settlement agreements in August 2013. However, not all intervenors in the CPUC process
signed off. In addition, there still remains a legal and administrative process leading to a final
decision by the CPUC on the DESAL project in July 2014 and on the GWR project in June
2015.
Furthermore, the Water Authority will be actively involved with the securitization component of
the MPWSP, including enabling legislation from Sacramento, and in obtaining public financing
for the project.
Lastly, the Water Authority will be actively supporting the efforts of the MRWPCA and the
MPWMD to bring the GWR project to a successful conclusion.
The current Schedule and Task List for the MPWSP Post Settlement activities is attached for
reference.

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

MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 4., Ìtem Page 1, Packet Page 9
October 7, 2013
015621\0002\10768534.1
Schedule and Task List for MPWSP Post Settlement
CPUC Calendar Dates
Task/Item Due/Calendar Date Action/Preparation Notes
Comments on
Settlement Agreements
Due
August 30, 2013 Complete
Reply Comments on
Settlement Agreements
Due
September 13, 2013 Complete
Prehearing
Conference: Status of
Settlement Motion (if
any), of CEQA work
& other matters
September 16, 2013 Complete
Quarterly Check-in Call
with Settling Parties
October 2013 MPRWA In Progress
Informational Hearing
on Settlement
Agreements
December 2-3, 2013
Quarterly Check-in Call
with Settling Parties
January 2014 MPRWA
DEIR circulated for
Comment
February 28, 2014
Quarterly Check-in Call
with Settling Parties
April 2014 MPRWA
Comments on DEIR
Due
April 14, 2014
Common Outline
Opening Briefs due
April 29, 2014
Reply Briefs due May 14, 2014
FEIR published June 17, 2014


Proposed
Decision on Phase I
Mailed
July, 2014 Phase 1
Quarterly Check-in Call
with Settling Parties
July 2014 MPRWA
Commission Action on
Phase I
August, 2014
Quarterly Check-in Call
with Settling Parties
October 2014 MPRWA
GWR Phase -Testimony
of Interested Parties
(from Settlement K)
December 2014
Quarterly Check-in Call
with Settling Parties
January 2015 MPRWA
GWR Phase -
Settlement discussion
commencing (from
Settlement K)
January 2015
GWR Phase -
Concurrent Rebuttal
Testimony (from
January 2015
MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 4., Ìtem Page 2, Packet Page 10
October 7, 2013
015621\0002\10768534.1
Task/Item Due/Calendar Date Action/Preparation Notes
Settlement K)
GWR Phase -
Evidentiary Hearings
(from Settlement K)
February 2015
GWR Phase - Briefing
(from Settlement K)
March 2015
Quarterly Check-in Call
with Settling Parties
April 2015 MPRWA
GWR Phase - Proposed
Decision (from
Settlement K)
June 2015
Quarterly Check-in Call
with Settling Parties
July 2015 MPRWA
GWR Phase - Final
Decision (from
Settlement K)
July 2015
Quarterly Check-in Call
with Settling Parties
October 2015 MPRWA
MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 4., Ìtem Page 3, Packet Page 11
October 7, 2013
015621\0002\10768534.1
Securitization
Task/Item Due/Calendar Date Responsible Party(s) Notes
Draft Timeline and
Implementation Plan
August 2013 MPWMD Complete
Meet with Legislative
Delegation re: Timeline
and Implementation
Plan
August 2013 MPWMD & MPRWA Complete
Initial Revision and
Redline of Legislation
Early September 2013 MPWMD Complete
Obtain Cal-Am Input on
Draft Legislation
Late September 2013 MPWMD, MPRWA, &
Cal-Am
In Progress
Retain Necessary
Additional
Financial/Legal
Consultants (Charles
Atkins)
October 2013

MPWMD In Progress
Revise Financial
Comparison of
Securitization v. Cal-Am
Financing
October 2013 MPWMD & Cal-Am In Progress
Meeting with
Community/Interest
Groups and Cities
October-December
2013
MPWMD & MPRWA In Progress
Further Revise
Legislation as
Necessary
October-November
2013
In Progress
Draft Summary of
Legislation
December 2013 MPWMD
Introduce Legislation January 2014
Lobbying Effort February-April 2014 MPWMD, MPRWA, &
Cal-Am

Legislation Adopted April-May 2014
Initial Draft of Motion for
Financing Order
April 2014 MPWMD
Perform Analysis to
Demonstrate Annual
Customer Benefits
Exceed 1.0% of Total
Annual Revenue
Requirement
April 2014 MPWMD & Cal-Am
Motion for Financing
Order
May 2014 MPWMD
Obtain CPUC Financing
Order
August 2014 Order on securitization
financing on satisfaction
of remaining criteria
from Settlement K
Preliminary Discussions
with Bond Underwriters
September-December
2014
MPWMD
Drafting of
documentation for bond
requests
September 2014-April
2015
MPWMD & Cal-Am
Preliminary Discussions
with Rating Agencies
February-April 2015 MPWMD
MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 4., Ìtem Page 4, Packet Page 12
October 7, 2013
015621\0002\10768534.1

Task/Item Due/Calendar Date Responsible Party(s) Notes
Obtain Rating on Water
Rate Relief Bonds
July-August 2015 MPWMD
Determine internal costs
of Cal-Am and AW to
comply with
securitization structure
to be included in rates
to Monterey District
customers
July-August 2015 Cal-Am
Obtain Letters From
Ratings Agencies
Demonstrating No
Impact to American
Water

July-August 2015 MPWMD
Obtain Legal Opinion
that Securitization Does
Not Create a Taxable
Event for Cal-Am
July-August 2015 MPWMD
Verification of Annual
Customer Benefits
Exceed 1.0% of Total
Annual Revenue
Requirement
July-August 2015 (or
prior to Issuance of
Bonds)
MPWMD & Cal-Am
Cal-Am Creates SPE September 2015 MPWMD & Cal-Am
Water Rate Relief
Bonds Issued
TBD
(End of 2015?)

MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 4., Ìtem Page 5, Packet Page 13
October 7, 2013
015621\0002\10768534.1

GWR
Task/Item Due/Calendar Date Responsible Party(s) Notes
File Motion for
Bifurcation of the
GWR Decision
August 2013 MRWPCA Complete and Granted
Board Actions to
Approve Revised
Governance Committee
Agreement
October 2013 MPWMD, MPRWA,
County, & Cal-Am
To be Completed in
October
Executed Agreements
for GWR Source Water
and/or Declaratory
Relief
September-December
2013
MRWPCA Meet & Confer in
Progress
Draft WPA December 2013 MPWMD & MRWPCA
Obtain Representations
from DPH re Use of
Extracted GWR Water
December 2013 MRWPCA
Obtain Representations
from RWQCB re Use of
Extracted GWR Water
December 2013 MRWPCA
Storage Agreement
with Seaside Basin
Watermaster
December 2013 MRWPCA & MPWMD
GWR Basis of Design
Complete with At Least
10% Design
December 2013 MRWPCA
GWR Financing Plan
Sufficient for SRF
Funding
December 2013 MRWPCA & MPWMD
Agreement on Terms of
WPA
January 2014 Cal-Am, MRWPCA,
&MPWMD

Perform Revenue
Requirement Analysis
Including Any Debt
Equivalency Effect
January - March 2014 MRWPCA & MPWMD
Perform Assessment of
GWR Positive and
Negative Externalities
for Any Premium
Showing
January - March 2014 MRWPCA & MPWMD
DEIR Circulated July 2014 MRWPCA
Dilution Water
Requirements
July-October 2014 MRWPCA Needed for Cal-Am
Design
Project Approved and
FEIR
October 2014 MRWPCA
All Permits for GWR
Construction Obtained
January 2015 MRWPCA

MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 4., Ìtem Page 6, Packet Page 14
October 7, 2013
015621\0002\10768534.1
Source Wells
Task/Item Due/Calendar Date Responsible Party(s) Notes
Drill Exploratory
Boreholes
Sept. 2013 – February
2014
Cal-Am Complete
Commence
Hydrogeologic Study
and Technical Report
August 2013 Cal-Am / SVWC Draft completed.
Permits for CEMEX
Site Test Well
January 2014 Cal-Am
Drill CEMEX Site Test
Well
February 2014 Cal-Am
Results of Test Well
Operation Obtained
February 2014 –
February 2016
Cal-Am
Hydrogeologic Study
and Technical Report
Complete and Results
Filed with CPUC

June 2015
Cal-Am
Necessary Agreements
from CEMEX for
Source Wells
Nov. 2015, or sooner Cal-Am
All Necessary Permits
for Construction of
Source Wells Obtained
Nov. 2015, or sooner Cal-Am

MPRWA TAC Meeting, 10/7/2013 , Ìtem No. 4., Ìtem Page 7, Packet Page 15

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