A

genda

Monterey Peninsula Regional Water Authority (MPRWA)

Regular Meeting

7:00 PM, Thursday, August 14, 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.

CONSENT AGENDA

1.

Approve July 10, 2014 Joint Special Meeting Minutes - <name_author>

2.

Approve July 10, 2014 Regular Meeting Minutes - <name_author>

3.

Adoption of a Resolution to Approving the Revised Member Allocation (%) Distributions to

Include the County of Monterey and Downward Revisions to the Annual Member

Contributions for Fiscal Year 2014-15 - Milton

4.

Approval of Checks from May to July 2014 and Adoption of a Resolution Approving the

Final Budget Reconciliation for Fiscal Year 2013-14 - Milton

AGENDA ITEMS

5.

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) - Cullem

6.

Receive report, discuss, and provide direction with regards to the current status of

source

water negotiations for the Monterey Regional Water Pollution Control Agency (MRWPCA)

Ground Water Replenishment (GWR) Project - Stoldt

7.

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

Thursday, August 14, 2014

Peninsula Water Supply Project (MPWSP) Hydrogeologic Working Group - Burnett/Cullem

8.

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 - Cullem/Crooks

9.

Receive report, discuss, and provide direction on the power purchase agreement between

Cal Am and the Monterey Regional

Waste Management District (MRWMD) -

Cullem/Crooks

10.

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 -

Crooks

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

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 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

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.

MI NUTES

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)

Joint Special Meeting

7:00 PM, Thursday, July 10, 2014

COUNCIL CHAMBER

580 PACIFIC STREET

MONTEREY, CALIFORNIA

ROLL CALL

The Joint Special Meeting with the Governance Committee was called to order at 7:30 P.M.

Directors Present:

Burnett, Edelen, Kampe, Pendergrass, Rubio, Della Sala,

Directors Absent:

None

Governance Committee

Members Present:

Jason Burnett, Chair

Rich Svinland, California American Water

Dave Potter, County of Monterey

Governance Committee

Members Absent:

Jeanie Byrns, MRWPCA

Staff Present:

Executive Director, Legal Counsel, Clerk of the Authority,

PLEDGE OF ALLEGIANCE

PUBLIC COMMENTS

Tom Rowley thanked the Monterey County representative for attending the Authority

meeting and urged him to attend regularly to represent the County Cal Am rate payers.

Nelson Vega also thanked Mr. Potter for attending but then spoke to Mr. Della Sala's

efforts as President of the Authority as exemplary and commendable.

AGENDA ITEMS

1.

Receive Report from Value Management Strategies, Inc., Discuss, and Provide Direction on the

Draft Preliminary Value Engineering Study of CDM's 30% Design of the California American

Water Company Desalination Project.

Executive Director Cullem introduced Mark Watson from Value Management Strategies,

spokesperson for the Value Engineering study for the Monterey Peninsula Water Supply

Project (MPWSP). He presented a preliminary presentation noting a final presentation would be

made on July 15, 2014 to the Governance Committee. Mr. Cullem spoke to the opportunities

the public had to participate in the process including the TAC Meeting on July 7, 2014 and that

the final report would be released in 30 days.

Mr. Watson presented the preliminary results of the Value Engineering "VE" study of the

desalination plant, invited public comment and discussed next steps for the path forward for the

VE results. He spoke to the purpose of the study to identify a series of value enhancing options

to the current design of the project through an objective, not an independent review. Mr.

Watson further explained that the workshop consisted of a multi-discipline and stakeholder

attendees that helped develop the proposed options. The process included the following

MPRWA Minutes

Thursday, July 10, 2014

Monterey Peninsula Regional Water Authority

Joint Special Meeting Minutes - Thursday, July 10, 2014

elements; preparation information, functional analysis, speculation, evaluation, development

presentation and post study implementation. He reiterated that VE is not a cost reducing

exercise but an intersection of performance, cost, risk and time, all appropriately weighed that

increase the value of the project. He spoke to the 15 identified priorities and indicated if

implemented, could potentially decrease the total project cost by 9 million dollars and improve

the value of the project by up to 29 percent over the life of the project. Mr. Watson answered

questions from the Boards.

Director Rubio questioned if future expansion options were considered within the analysis,

Director Edelen questioned the environmental impacts and Director Kampe questioned if

pre-
treatment and pathogen removal was addressed and asked if the provided bore hole data was

sufficient to determine if we could do a better job at a cheaper cost. Mr. Watson indicated that

the highest risk identified is the raw water data. The report will indicate that there is a lack of

data on the water and assumptions were made according to different speculated results. That is

a key aspect to overall cost to the project.

Vice President Burnett requested clarification of the key drivers for the significant cost savings

to which Mr. Watson explained the largest savings would be related to the recovery rate

process. The current project assumes a 40% recovery in first pass and 90% in the second and

VMS believes that there is a possibility for a higher recovery rate which would impact the RO

membranes positively.

Director Pendergrass questioned if any energy savings were identified to which Mr. Watson

explained there were 33 suggestions as the group was very focused on the life cycle cost

savings and total carbon footprint for the alternatives. He identified that it was assessed as a

risk to obtain power from the Monterey Regional Waste Management District due to

uncertainties.

President Della Sala invited public comment on the presentation.

Nelson Vega questioned the potential impacts to the cost per acre foot of the project

and supported the larger facility size

Rick Riedl requested renegotiation with CDM Smith to recoup some of the cost savings

and questioned if there was an incentive to reduce costs within the contract.

Dale Heikaus requested clarification of the definitions of value comparison.

George Riley, questioned if the suggestions were implemented, would the quality or

components of the source water change.

David Lifland questioned the RO schematic expressing concern that the building was

not large enough and questioned if the public would be able to comment on the final

process.

Michael Warburton questioned how drought regulations would be enforced and spoke to

pending legislation as it relates to this project.

Mr. Watson answered questions posed during public comments.

MPRWA Minutes

Thursday, July 10, 2014

Monterey Peninsula Regional Water Authority

Joint Special Meeting Minutes - Thursday, July 10, 2014

Rich Svinland, Cal Am noted that many of the options submitted were already discussed and

will be recommended for implementation to CDM. He noted they may not get dollar for dollar

recovery, but will negotiate to get a decreased cost to the ratepayers. He explained that some

systems are not yet fully designed because of the outstanding results of the test wells. The

pipeline design is ready for the VE process, which will be included in the Environmental Impact

Report.

Executive Director Cullem spoke to the additional needed study for this project and expressed

caution that the proposed $9 million in savings may change as modifying one aspect may

impact other factors. He reported the public will be able to comment on the study during the

Governance Committee meeting when the final report is received.

ADJOURNMENT

Having no further business to conduct, the meeting was adjourned at 8:13 PM.

ATTEST:

Lesley Milton, Clerk

Chuck Della Sala, President

Monterey Peninsula Regional Water Authority

Agenda Report

Date:

August 14, 2014

Item No:

3.

№06/12

FROM:

Authority Clerk Milton

SUBJECT:

Adoption of a Resolution to Approving the Revised Member Allocation (%)

Distributions to Include the County of Monterey and Downward Revisions

to the Annual Member Contributions for Fiscal Year 2014-15

RECOMMENDATION:

Staff recommends that the Authority adopt the attached resolution revising the member

city contribution percentages for Fiscal Year 2014-15 due to the budgeted funding

allocation by the County of Monterey.

DISCUSSION:

When the authority was initially formed, it was anticipated that all Cal Am Rate payers

affected by the Cease and Desist order would be represented by the Authority. Due to a

challenge placed on certain supervisorial representatives, The County of Monterey has

never formally been seated as a member. However, through the participation of the

County of Monterey as a member of the Governance Committee and the fact that the

Authority has continued to work to provide a water supply regardless of membership of

all rate payers, it has been requested that that the County of Monterey, being

represented on the Governance Committee participate in the financial contributions for

the Authority budget.

The Authority has submitted requests for membership funding for Fiscal years, 2012-13,

2013-14 and 2014-15. Contributions were budgeted for 2012-13 and 2014-15. The

County of Monterey payment for fair share contribution for Fiscal Year 2012-2013 was

received

and a fair-share contribution request for the Fiscal Year 2013-2014 and for

Fiscal Year 2014-2015 have been made. Staff attended the Budget Committee meeting

on June 10, 2014 to answer questions about the current and next fiscal year fair-share

contribution requests and subsequently the contribution for Fiscal year 2014-15 has

been included within the County of Monterey budget and staff is confident that it can be

incorporated into our budgeted membership fees for FY 14-15.

Therefore, Staff is recommending that the Authority adopt the attached resolution

outlining the revised member city contribution percentages based on Cal Am rate

payers. The County of Monterey represents 34% of the rate payers and the resolution

adjusts the other members accordingly splitting the budget according to those

percentages.

EXHIBITS:

A- Draft Resolution Including Proposed Member City Distribution Percentatges for FY

2014-15

Monterey Peninsula Regional Water Authority

Agenda Report

Date:

August 14, 2014

Item No:

4.

FROM:

Authority Clerk Milton

SUBJECT:

Approval of Checks from May to July 2014 and Adoption of a Resolution

Approving the Final Budget Reconciliation for Fiscal Year 2013-14

RECOMMENDATION:

It

is

recommended

that

the

Authority

approve

and

file

the

accounts

payable

payments

made during the period of June 12, 2014 through August 14, 2014 with total payments

for

the

above

referenced

period

of

$17,835.82.

It

is

also

recommended

that

the

Authority Adopt a resolution amending the Fiscal Year 2013-14 Budget and authorizing

the remaining unspent funds to remain in fund balance for use during Fiscal year 2014-
15.

DISCUSSION:

At

its

meeting

on

September

12,

2013,

the

Authority

Board

approved

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.

412.50 to Access Monterey Peninsula for Video Production Services

1,558.33 to Environmental Relations for Public Outreach Services

5,497.75 to Brownstein, Hyatt, Farber and Schreck for Special Legal Counsel

$ 5,000.00 to Perry and Freeman for Legal Services/Attorney of Record

$5,367.24 to City of Monterey for Reimbursement of Executive Director Services.

The bank balance as of August 14
th
, 2014 is sufficient cover the above checks and the

remaining fiscal years encumbrances therefore, staff is recommending approval of the

above checks.

Fiscal Year 2013-14 Revenues:

Revenues for the final balance of the Fiscal Year 2013-14 budget appear to be off due

to

the

approval

of

contract

for

Value

Engineering

services,

approved

to

be

fully

reimbursable

by

Cal

Am.

Per

the

agreement,

Cal

Am

was

responsible

to

provide

the

Authority

up

to

$200,000 for

the

Value

Engineering

Study

prior

to

the

execution

of

the

contract. The funds

were

received

after

the close

of

the

Fiscal

Year

and

as previously

authorized,

will

be

carried

over

into

the

Fiscal

year

2014-15

Budget.

Also,

the

reimbursement

from

the

County

of

Monterey

for

portion

of

the

SPI

contract

is

still

outstanding

to

which

the

Executive

Director

attended

and

presented

to

the

Monterey

County

Budget

Committee

explaining

the

request

for

funds.

The

County

of

Monterey

has

requested

copies

of

the

invoice

on

several

occasions

but

the

payment

has

not

materialized. It is anticipated that the funds will be received during the FY 14-15.

The County of Monterey payment for fair share contribution for Fiscal Year 2012-2013

was received

and a fair-share contribution request for the Fiscal Year 2013-2014 and

for Fiscal Year 2014-2015 have been made. Staff attended the Budget Committee

meeting on June 10, 2014 to answer questions about the current and next fiscal year

fair-share contribution requests and subsequently the contribution for Fiscal year 2014-
15 has been included within the County of Monterey budget and staff is confident that it

can be incorporated into our budgeted membership fees for FY 14-15.

Expenses:

Staff and the Board remained fiscally conservative throughout the year and ended with

residual balances in all of the expenditure categories. Any remaining funding will be left

in fund balance for use as necessary during the next fiscal year and may work to offset

future

member

funding

requests.

detailed

report

of

the

financial

accounting

will

be

available once the Financial Audit is completed by October 2014.

Staff is recommending that the Authority approve and file the above checks and adopt

the

attached

resolution

amending

the

Fiscal

Year

2013-14

budget

and

authorizing

the

remaining unspent funds to remain in fund balance for use during Fiscal year 2014-15.

ATTACHMENTS:

Budget to Actual Report through June 30, 2014

Resolution amending the Fiscal Year 2013-14 budget and authorizing unspent

funds to stay in Fund Balance.

11:34 AM

08/05/14

Accrual Basis

Monterey Peninsula Regional Water Authority

Profit & Loss Budget vs. Actual

July 2013 through June 2014
Budget Acutal

Difference
Ordinary Income/Expense
Income
47200 · Program Income
47230 · Membership Dues

424,562.00

424,562.00

0.00
47250 · Reimbursement SPI Contract

18,562.00

9,281.00

-9,281.00
47260 · Reimburesment VE Contract

200,000.00

0.00

-200,000.00
Total 47200 · Program Income

643,124.00

433,843.00

-209,281.00
Total Income

643,124.00

433,843.00

-209,281.00
Expense
60900 · Administration and Clerical
60901 · Clerk of the Board

35,000.00

35,000.00

0.00
60902 · Executive Director

90,680.00

59,141.16

-31,538.84
Total 60900 · Administration and Clerical

125,680.00

94,141.16

-31,538.84
62100 · Legal Fees
62110 · Board Counsel

59,000.00

27,000.00

-32,000.00
62140 · Special Counsel

186,000.00

142,184.75

-43,815.25
Total 62100 · Legal Fees

245,000.00

169,184.75

-75,815.25
62800 · Contract Services
60801 · Public Outreach

15,000.00

8,509.19

-6,490.81
60806 · Contract VE

200,000.00

0.00

-200,000.00
62802 · Audit Services

6,700.00

6,700.00

0.00
62803 · Televised Meeting

10,000.00

5,100.00

-4,900.00
62804 · Contract Services & Studies

3,000.00

0.00

-3,000.00
62805 · Contract SPI

35,000.00

27,843.43

-7,156.57 62805 · Contract SPI

35,000.00

27,843.43

-7,156.57
Total 62800 · Contract Services

269,700.00

48,152.62

-221,547.38
65000 · Insurance

7,000.00

6,701.88

-298.12
65100 · Travel Expenses

1,000.00

828.74

-171.26
68300 · Contingency

2,000.00

734.78

-1,265.22
Total Expense

650,380.00

319,743.93

-330,636.07
Net Ordinary Income

-7,256.00

114,099.07

121,355.07
Net Income -7,256.00 114,099.07 121,355.07

Page 4 of 4
Table 1
Budget FY 2013-14

Adopted

Budget

13-14
Amended

Budget

13-14
Legal Counsel

$63,000

$59,000
Attorney of Record

$100,000

$186,000
Staff

$35,000

$35,000
Executive Director

$94,680

$90,680
$10,000

$3,000
$20,000

$35,000
Contract Assistance

$15,000

$200,000
Travel

$5,000

$1,000
Public Outreach

$49,000

$25,000
$7,000

$7,000
$5,000

$6,700
$20,000

$2,000
Total Budget FY 13-14 $423,680 $650,380
Contingency
Professional Services
Studies
Project Evaluation
Insurance
Audit
Table 2
Statement of Net Position

2013-14

Amended

Funds

Funds

2014-15
Budgeted

Budget

Received

Outstanding

DRAFT
OPERATING EXPENSES
Carryover from FY 2012-2013

$7,268

$7,268

$0
County Contrib from FY 2012-2013

$83,300

$0

$83,300

$0
Membership Fees

$341,263

$341,263

$341,263

$458,680
Reimbursments for SPI Contract

$18,562

$0

$18,562

$0
Reimbursement for VE Contract

$200,000

$200,000

$0
Total Operating Revenue

$341,263

$650,393

$348,531

$301,862

$458,680
OPERATING REVENUES

Budgeted

Amended
Budget
Expended/
Encumbere
d thru 
6/30/14

Budget
Remaining
               
Draft 
Budget
2014‐2015
Administration and Clerical
Principal Office of the Authority

$0

$0

$0

$0

$5,000
Clerk of the Board

$35,000

$35,000

$35,000

$0

$24,000
Financial Services

$0

$0

$0

$0

$6,000
Executive Director

$94,680

$90,680

$90,044

$636

$94,680
Misc Admin Expenses

$0

$0

$0

$500
Legal Services
Board Counsel

$63,000

$59,000

$27,000

$32,000

$63,000
Special Counsel

$100,000

$186,000

$186,000

$0

$152,000
Contract Services
Public Outreach

$35,000

$15,000

$15,000

$0

$35,000
Audit Services

$5,000

$6,700

$6,700

$0

$6,000
Televised Meetings

$14,000

$10,000

$4,663

$5,338

$10,000
Contract Services & Studies

$25,000

$3,000

$0

$3,000

$30,000
Contract SPI

$20,000

$35,000

$34,610

$390

$0
Contract VE

$0

$200,000

$200,000

$0

$0
Insurance

$7,000

$7,000

$6,702

$298

$7,500
Travel Expenses

$5,000

$1,000

$0

$1,000

$5,000
Contingency

$20,000

$2,000

$1,657

$343

$20,000
TOTAL OPERATING EXPENSES

$423,680

$650,380

$607,376

$43,005

$458,680
Table 3
Member City
Approved %

Distribution
Total
Contributions

FY 2014-15
Total
Contributions

FY 2013-14
Carmel By the Sea 9.30% $42,657 $31,771
Sand City 1.30% $5,963 $4,441
City of Pacific Grove 18.80% $86,232 $64,225
City of Seaside 22.00% $100,910 $75,157
City of Monterey 46.50% $213,286 $158,855
City of Del Rey Oaks 2.10% $9,632 $7,174
Total Income 100.00% $458,680 $341,263
* Contributions were lower in FY 13-14

due to carry over balance of $82,417
Member City Contributions
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 expected 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 latest CPUC schedule as revised July 3, 2014 is attached. That schedule indicated

that a number of legal filings and DEIR comments were to be completed between the

DEIR circulation in 3rd quarter 2014 (not later than Sept 30) and the Administrative Law

Judge (ALJ) hearings in December 2014.

However, on August 8, we received a telephonic notification from the CPUC consultant

preparing the EIR that the DEIR has been delayed several months and the ALJ hearing

in December is likely to be delayed as well, possibly as long a 3 months.

As of August 11, we have not received official notice of a hearing delay. None-the-less,

staff recommends the Authority Board accept the likelihood of a delay, consider its

implications, and provide staff direction accordingly.

EXHIBIT:

A-CPUC schedule as revised on July 3, 2014

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 that had

been scheduled for December 2014.

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 likely to be

delayed 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:

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 on the

assumption that the December 2014 CPUC hearing will be delayed.

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

October 7, 2013

015621\0002\11340073.1

8/11/14

“Revised” Schedule and Task List for MPWSP Post Settlement (REV 12 JUNE 2014)

Italics are changes.

Red are actions past due. Yellow are near term.

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

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

3
rd

Qtr 2014

DEIR out in June 2014

Quarterly Check-in Call

with Settling Parties

April 2014

MPRWA

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

DEIR to be published 1
st

Qtr 2015

Common Outline

Opening Briefs filed and

served on legal and

policy issues

60 Days after Issuance

of DEIR

15 days after Issuance

DEIR- Cal Am to

file/serve common

outline for legal & policy

briefs

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

October 2014

MPRWA

October 7, 2013

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Task

Due Date

Responsible Party

Notes

with Settling Parties

Quarterly Check-in Call

with Settling Parties

January 2015

MPRWA

October 7, 2013

015621\0002\11340073.1

8/11/14

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

To be Completed in

October

Executed Agreements

for GWR Source Water

and/or Declaratory

Relief

June 23, 2014

MRWPCA

Meet & Confer in

Progress

Draft WPA

Mar 2014

MPWMD & 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

Storage Agreement

with Seaside Basin

Watermaster

Jul 2014

MRWPCA & MPWMD

GWR Basis of Design

Complete with At Least

10% Design

Jul 2014

MRWPCA

GWR Financing Plan

Sufficient for SRF

Funding

Aug 2014

MRWPCA & MPWMD

Agreement on Terms of

WPA

May 2014

Cal-Am, MRWPCA,

&MPWMD

Perform Revenue

Requirement Analysis

Including Any Debt

Equivalency Effect

Jul 2014

MRWPCA & MPWMD

Perform Assessment of

GWR Positive and

Negative Externalities

for Any Premium

Showing

June 2014

MRWPCA & MPWMD

DEIR Circulated

July 2014

MRWPCA

Dilution Water

Requirements

July-October 2014

MRWPCA

Project Approved and

FEIR

October 2014

MRWPCA

All Permits for GWR

Construction Obtained

???

MRWPCA

October 7, 2013

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January 2015

October 7, 2013

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Source Wells

Task

Due Date

Responsible Party

Notes

Drill Exploratory

Boreholes

Sept. 2013 – February

2014

Cal-Am

PENDING

Commence

Hydrogeologic Study

and Technical Report

August 2013

Cal-Am / SVWC

Draft completed.

Permits for CEMEX

Site Test Well

January 2014

Aug 2014

Cal-Am

MND circulated in May

2014

Drill CEMEX Site Test

Well

February 2014

Nov 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

October 7, 2013

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8/11/14

Securitization

Initial Revision and

Redline of Legislation

Early September 2013

MPWMD

Complete

October 7, 2013

015621\0002\11340073.1

8/11/14

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

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

Complete

Introduce Legislation

January 2014

Complete

Lobbying Effort

February-April 2014

MPWMD, MPRWA, &

Cal-Am

In Progress

Legislation Adopted

April-May 2014

Passed Senate

Unanimously; Referred

to Assembly

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 on securitization

October 7, 2013

015621\0002\11340073.1

8/11/14

Order

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

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 on 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 in the TAC and in 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.

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

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

EXECUTIVE SUMMARY
Monterey Peninsula Water Supply Project – Desalination Plant  Executive Summary  
EXECUTIVE SUMMARY  FINAL REPORT
A Value Engineering (VE) study, sponsored by the Monterey Peninsula Regional Water Authority and 
facilitated by Value Management Strategies, Inc., was conducted for the Desalination Plant portion of 
the Monterey Peninsula Water Supply Project.  The study was conducted at the offices of California 
American Water in Monterey, California July 7 through 11, 2014.  This Executive Summary provides an 
overview of the subject project, summary results of the VE team’s analysis, and the alternatives 
developed by the VE team.   
PROJECT SUMMARY 
Led by California American Water Company (CAW), the Monterey Peninsula Water Supply Project 
(MPWSP) is a complex, multi‐component program that is necessary to replace a large percentage of 
the local drinking water supply that currently originates from the Carmel River. State Water 
Resources Control Board (SWRCB) Order 95‐10 requires CAW to reduce diversions from the Carmel 
River by approximately 70% no later than December 31, 2016.  
In order to meet the cutback requirements and provide adequate water to the Monterey Peninsula 
communities, CAW plans include three projects to address this regional water crisis: 

Desalination of seawater from wells drawing water from Monterey Bay

Groundwater Replenishment (GWR) with advanced treatment of wastewater by the Monterey
Regional Water Pollution Control Authority Plant

Aquifer Storage and Recovery (ASR)
This VE study focused solely on the desalination plant portion of the water supply project. 
Treatment at the desalination plant will consist of oxidation with sodium hypochlorite, granular 
media filtration, dechlorination, pH adjustment with sulfuric acid, cartridge filtration, a first pass of 
seawater reverse osmosis (SWRO), a partial second pass of brackish water reverse osmosis (BWRO), 
disinfection with ultraviolet light, post‐stabilization treatment with carbon dioxide and hydrated lime, 
pH adjustment with sodium hydroxide, addition of an orthophosphate corrosion inhibitor and post‐
chlorination with sodium hypochlorite. 
CDM Smith was selected as the consultant for the desalination plant design‐build project. Their work 
will include the design, construction and commissioning of the proposed seawater desalination plant. 
The planned facilities include the treatment plant, treated water storage and pumping, and 
concentrate storage and disposal facilities. 
Construction costs for all elements of the desalination plant are currently estimated at $74,029,943. 
PROJECT PURPOSE AND NEED 
The primary purpose of the overall MPWSP is to replace existing water supplies that have been 
constrained by legal decisions affecting the Carmel River and Seaside Groundwater Basin water 
- 1 -
Monterey Peninsula Water Supply Project – Desalination Plant  Executive Summary  
resources. The purpose of the desalination plant portion of the MPWSP is to treat the water supplied 
by the seawater intake wells sufficient to meet the applicable water quality standards. 
VE STUDY BASIS 
The VE study was based on the 30% Design Submittal documents prepared by the project’s design‐
build contractor, CDM Smith, dated June, 2014. 
VE STUDY OBJECTIVES 
The VE team was tasked with exploring ideas to improve project value by: 

Reducing project cost without sacrificing functionality

Identifying opportunities to improve the desalination plant’s operations and reliability

Identifying recommendations for reducing long‐term operational costs

Improving the overall maintainability of the facility
EVALUATION OF BASELINE CONCEPT 
The first day of the VE study included meetings with CDM Smith and 
other project stakeholder representatives. During the VE team’s analysis 
of the baseline concept, a number of analytical tools and techniques 
were used to develop a thorough understanding of the functional 
requirements of the project and how well the baseline concept was 
performing the functions.  A major component of this analysis was the 
use of Value Metrics, which seeks to assess the elements of cost, 
performance, time, and risk as they relate to project value.  These 
elements required a deeper level of analysis, the results of which are 
detailed in the Project Analysis section of this report.  The key 
performance attributes identified for the project are listed in the table 
on the right, “Performance Attributes.”  
Below is a summary of the major observations and conclusions identified during the VE team’s initial 
analysis of the baseline concept which led the VE team to identify the alternatives resulting from this 
study and presented herein.  

Buildings are located on the area of the site most prone to settlement during a seismic event.
The project is assuming deep dynamic soil compaction to address collapsible soils.

UV treatment appears to be included to address temporary uncertainty regarding treatment
process and concerns with obtaining sufficient log removal for pathogen removal.

The current design includes direct feed from intakes to pressure filters which could result in
sand and deposits clogging the system.

The baseline concept assumes a portion of the intake water must be returned after treatment
to agriculture properties.
Performance Attributes 
Maintainability 
Plant Operations 
Future Flexibility 
Environmental Impacts 
Sustainability 
Aesthetics 
- 2 -
Monterey Peninsula Water Supply Project – Desalination Plant  Executive Summary  

The project will use granular pressure filters for pre‐treatment of seawater prior to the RO
membranes to remove iron and manganese.

The current design is providing storage tanks for filtered water in order to maintain constant
pump head through the RO process.

The project assumes a brine disposal basin will be necessary when wastewater treatment
plant (WWTP) discharge outfall is not available.

The desalination plant may have an issue removing large equipment for maintenance relative
to access and equipment transport.

The current design shows pumps in chemical storage sumps.  It is not fully understood where
the pumps discharge.

The project is currently planning for rigorous acceptance test procedures and requirements.

The installation of pre‐engineered metal buildings will require treatment to prevent corrosion
and will require maintenance over the life of the facility.

The current process design is recapturing 45% of the first pass treatment water and 90% of
the second pass treatment water (average of 43% total recovery for the plant).
Additionally, sustainability evaluations were conducted to assess the baseline concept against the 
sustainability requirements of both the U.S. Green Building Council (LEED) and the Institute for 
Sustainable Infrastructure (Envision). The resulting sustainability assessment is included in the Project 
Analysis section of this report. 
RISK ANALYSIS 
A qualitative risk analysis was performed in conjunction with the VE study to identify risks related to 
project cost, time (schedule), and ability to perform its required functions.  The VE team also 
discussed and identified possible risk mitigation strategies in an effort to reduce the overall risk 
profile of the project.  Risk Registers were developed for the project and are provided in the Project 
Analysis section of this report.  These Risk Registers provide all of the information for each risk 
including descriptions, probabilities, impacts and potential risk response strategies.  
The following are the key lessons learned identified as a result of the risk analysis exercise: 

There is currently no raw water quality data available.  Water quality may impact the
assumptions relative to the plant’s treatment processes and capacities.

Plant capacity requirements are dependent on the implementation and success of the
groundwater replenishment project which is currently being developed.

Approval of the environmental documents and regulatory permits may require revisions to
the project design.
- 3 -
Monterey Peninsula Water Supply Project – Desalination Plant  Executive Summary  
A majority of the risks identified are being actively monitored and managed by the project design 
team and project management teams.  Key risk mitigation strategies identified by the VE team 
included membrane pretreatment to mitigate the risk associated with unknown source water quality, 
and revising the construction schedule to allow the respective features time to be revised when 
information becomes available.   
VE STUDY RESULTS 
The VE team identified 33 VE Alternatives and 13 Design Comments to support overall project value.  
The VE Alternatives are organized by the primary topic or project aspect to which they refer: 

Building Design and Site Alternatives

Water Treatment Equipment and Equipment Layout Alternatives

Maintainability Alternatives

Risk Mitigation and Schedule Alternatives

Treatment Process Alternatives
Of these alternatives, 16 were selected and recommended by the VE team as a cumulatively‐
implementable alternative strategy focused on enhancing overall value potential for the project.  The 
alternatives have been summarized in the following section of this report.  The total net potential 
cost savings of the VE Strategy is approximately $9 million in initial cost savings and $23 million in life‐
cycle cost savings.  It should be noted that a number of these alternatives would increase the initial 
project costs; however, they in turn provide benefits to project performance or in the reduction of 
maintenance and energy usage.  
To evaluate the performance of the VE Strategy, the VE team considered the combined effect of all 
VE alternatives.  The total performance scores reflect the performance rating for each attribute 
multiplied by its overall priority (weight) expressed using a ratio scale.  The following chart compares 
the total performance scores for the baseline concept and the “Enhanced Value” VE Strategy.   
Comparison of Performance 
0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0
Enhanced Value Combination
Baseline Concept
Maintainability

Plant Operations

Future Flexibility
Environmental Impacts

Sustainability

Aesthetics
- 4 -
Monterey Peninsula Water Supply Project – Desalination Plant  Executive Summary  
The table below summarizes the savings associated with the Enhanced Value Strategy.  The 
performance scores were divided by the total cost scores for the strategy to derive a value index.  The 
value index for the VE Strategy was then compared against the value index of the baseline concept 
and the difference is expressed as a percent change. 
Summary of VE Strategy 
Strategy Description  Initial Cost Savings 
LCC  
Savings 
Performance 
Change 
Value 
Change 
Enhanced Value Combination  $9,161,000  $23,204,000  +13 %  +29 % 
The Comparison of Value chart below summarizes the total impact to project value resulting from the 
VE Study.  The blue bars represent total project performance and the green bars represent total cost.  
Details and additional analysis of the baseline concept and VE Strategy performance ratings are 
included in the Project Analysis section of this report. 
Comparison of Value – Baseline Concept and VE Strategy 
VE ALTERNATIVE IMPLEMENTATION 
VE studies are working sessions with the purpose of identifying and developing alternative 
approaches to a given project, then presenting them to all project stakeholders for consideration.  
During the VE Study, a Special Joint Meeting of the Monterey Peninsula Water Supply Project 
Governance Committee and Monterey Peninsula Regional Water Authority was held to present and 
discuss the preliminary results of the VE Study.  The meeting was open to the public and attendees 
had the opportunity to question and comment on the VE study results.

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

Enhanced Value
C
h
a
n
g
e
 
i
n
 
V
a
l
u
e
R
e
l
a
t
i
v
e
 
S
c
o
r
e
s
Performance

Cost/Time Rating

Change in Value
- 5 -
Monterey Peninsula Water Supply Project – Desalination Plant  Executive Summary  
Detailed feasibility assessment, determination of the VE alternatives’ implementation, and final 
design development will be made following submittal of this Final VE Study Report.  
VE TEAM 
Participants on the VE team included independent technical experts from HDR Engineering, Inc. and 
Water Globe representing Architecture, Plant Operations/Maintenance, Sustainability (LEED and 
Envision), Civil/Structural Engineering, Electrical/Instrumentation & Controls, and Water Treatment 
Processes.  Representatives from California American Water also participated to provide insight into 
their Plant Operations and Maintenance procedures as well as their engineering standards and 
requirements for the project.  The public interests were represented by Monterey Peninsula Regional 
Water Authority and Monterey Peninsula Water Management District.  A full list of participants in the 
VE study is included following the Value Engineering Process section of this report.  
- 6 -
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

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)

Bundled Renewable Electricity and Renewable Energy Credits (Bucket 1)

Associated Green Attributes

2. Marina LFG Facility (Additional up to 3.2 MWs; installed in two phases, planned availability beginning in

2016)

Bundled Renewable Electricity and Renewable Energy Credits (Bucket 1)

Associated Green Attributes

14201 DEL MONTE BLVD

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

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

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)

Bundled Renewable Electricity and Renewable Energy Credits (Bucket 1)

Associated Green Attributes

Marina LFG Facility (Additional up to 3.2MW; installed in two phases, planned availability

beginning in 2016

Bundled Renewable Electricity and Renewable Energy Credits (Bucket 1)

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

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

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

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

FULL SCALE EIR & CCC/LCP SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]

Exported on July 6, 2014 8:34:55 PM MST
CEMEX TEST WELL SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]

Exported on July 6, 2014 9:06:15 PM MST

Exported on July 6, 2014 9:06:15 PM MST
FULL SCALE PLANT & PIPELINES SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]

Exported on July 6, 2014 9:12:23 PM MST
POTRERO CONTINGENCY PERMITTING SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]

Exported on July 6, 2014 9:10:38 PM MST

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