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Agenda

Monterey Peninsula Regional Water Authority (MPRWA)


Director's Meeting
7:00 PM, Thursday, November 10, 2016
Council Chambers
580 Pacific Street
Monterey, California
CALL TO ORDER
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
CONSENT AGENDA consists of those items which are routine and for which a staff
recommendation has been prepared. A member of the public or MPRWA Director may request
that an item be placed on the regular agenda for further discussion

1.

Approve Minutes of Director's Meeting of September 8, 2016 - Romero

2.

Approve and File Authority Checks Through October 31, 2016 - Munoz

3.

Receive Report on Notice from Public Water Now to Withdraw from the Settling Parties Cullem

4.

Receive Report on the Marina Coast Water District Motion to Delay CPUC Hearings on the
Return Water Agreement and the Brine Disposal Agreement - Cullem

5.

Receive Report on SWRCB Decision on Motion to Reconsider the CDO Extension (WR
2016-0016) - Cullem
***End of Consent Agenda***
AGENDA ITEMS

6.

Receive Report and Discuss the Overall Status of Water Supply on the Monterey
Peninsula - Stoldt

Thursday, November 10, 2016

7.

Receive Report, Discuss, and Provide Direction Concerning Proposed Amendments to the
Large Settlement Agreement - Cullem

8.

Receive an Update on the Summary Project Schedule for the Monterey Peninsula Water
Supply Project (MPWSP) - Crooks
ADJOURNMENT

The City of Monterey is committed to including the disabled in all of its services, programs and
activities. In compliance with the Americans with Disabilities Act, if you need special assistance
to participate in this meeting, please contact the City Clerks Office at (831) 646-3935.
Notification 30 hours prior to the meeting will enable the City to make reasonable arrangements
to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II]. Later requests will
be accommodated to the extent feasible. For communication-related assistance, dial 711 to use
the California Relay Service (CRS) to speak to City offices. CRS offers free text-to-speech, speechto-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 the City Clerk's Office at
(831) 646-3935 to coordinate use of a device.
Agenda related writings or documents provided to the MPRWA are available for public
inspection during the meeting or may be requested from the Monterey City Clerks Office at 580
Pacific St, Room 6, Monterey, CA 93940. This agenda is posted in compliance with California
Government Code Section 54954.2(a) or Section 54956.

M I N U TE S
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
Director's Meeting
7:00 PM, Thursday, September 8, 2016
COUNCIL CHAMBERS
580 PACIFIC STREET
MONTEREY, CALIFORNIA
Directors Present:

Director Dallas, Director Edelen, Director Pendergrass, Director Roberson,


Director Rubio, President Kampe

Directors Absent:

None

Staff Present:

Executive Director Cullem, Legal Counsel Freeman, Clerk Romero

CALL TO ORDER
President Kampe called the meeting to order at 7:02pm.
ROLL CALL
PLEDGE OF ALLEGIANCE
REPORTS FROM BOARD DIRECTORS AND STAFF
None
PUBLIC COMMENTS

Tom Rowley, Monterey Peninsula Taxpayers Association, commented that Jim Cullem
has done a fantastic job as Executive Director and should have his contract with the
Authority extended.

Receiving no other requests to speak, the Authority adjourned to Closed Session at 7:04pm.
The regular meeting of the Authority reconvened at 8:00 pm.
REPORTS FROM CLOSED SESSION
President Kampe stated that a report from closed session will be addressed during item #7 on
the agenda.
CONSENT AGENDA
President Kampe requested that item #5 be removed from consent and discussed.
On a motion by Director Pendergrass, seconded by Director Edelen, and carried by the
following vote, the Monterey Peninsula Regional Water Authority Approved the Consent
Agenda, with the exception of item 5 which was removed:

MPRWA Minutes

Thursday, September 8, 2016

AYES:

DIRECTORS:

NOES:
ABSENT:
ABSTAIN:
RECUSED:

0
0
0
0

DIRECTORS:
DIRECTORS:
DIRECTORS:
DIRECTORS:

Dallas, Edelen, Pendergrass, Roberson, Rubio,


Kampe
None
None
None
None

2.

Approve Minutes of Director's Meeting of August 11, 2016


Action: Approved

3.

Approve and File Authority Checks Through August 31, 2016


Action: Approved

4.

Receive Report on FY 2015-2016 Year-End Financial Status and Approve an Amendment to


the FY 2016-2017 Budget
Action: Approved

5.

Authorize Authority President to Prepare and/or Approve Press Releases or Opinion Editorials
Consistent with the Policies and Positions Previously Adopted by the Water Authority
Action: Removed from Consent; discussed
President Kampe said he would like the Authority to have a voice in the media, and requested
the Authority discuss how to respond to press items that could affect the water supply project.
He suggested having answers to frequently asked questions on current water supply issues on
the Authority website, or writing an editorial piece.
PUBLIC COMMENT

Tom Rowley, Monterey Peninsula Taxpayers Association (MPTA), said a letter about
the role of the Water Authority was put out by Sue McCloud recently, and added he
thinks there is a need to get accurate info out to the public.

Director Roberson said responding to the media should be done carefully so it doesnt cause
unnecessary problems. Director Edelen requested that the Authority be proactive not reactive in
responding to water supply issues in the media. He added that responses should be supportive,
strategic, and lead the discussion.
Director Rubio voiced his concerns, and said there should be a consensus among the Authority
before responding to the media. He also stated that many of the comments in the media about
the water supply project are not truthful or from credible sources. Director Pendergrass
suggested that the Authority state the facts instead of reacting. President Kampe
communicated agreement with having a proactive approach and having a consensus and
planned response.
No action was taken on this item.
6.

Receive Report on the CPUC Hearing on GWR, the Transfer Pipeline, and Related Facilities
Action: Received report
***End of Consent Agenda***
Monterey Peninsula Regional Water Authority
Director's Meeting Minutes - Thursday, September 8, 2016
2

MPRWA Minutes

Thursday, September 8, 2016

AGENDA ITEMS
7.

Receive Report, Approve Resolution 16-04, and Authorize Contract for the Executive Director
Action: Adopted Resolution No. 16-04
Legal Counsel Don Freeman reported that during closed session, the Authority discussed the
proposed contract for Executive Director Services with Cullem, LLC, and agreed to change the
dates of the contract for services to correspond with the fiscal year dates, amending the end
date to June 30, 2017. He added that the Resolution should say that the salary be corrected to
reflect it is a 6% increase, not a 20% increase, from $85,000 to $90,000 annually.
PUBLIC COMMENT
None
On a motion by Director Rubio, seconded by Director Dallas, and carried by the following vote,
the Monterey Peninsula Regional Water Authority Approved 16-04 as Amended, Authorizing a
Contract for Executive Director Services with Cullem Executive Director Services, LLC:

8.

AYES:

DIRECTORS:

NOES:
ABSENT:
ABSTAIN:
RECUSED:

0
0
0
0

DIRECTORS:
DIRECTORS:
DIRECTORS:
DIRECTORS:

Dallas, Edelen, Pendergrass, Rubio, Roberson,


Kampe
None
None
None
None

Receive an Update on the Summary Project Schedule for the Monterey Peninsula Water
Supply Project (MPWSP)
Action: Received update; discussed
Ian Crooks, California American Water (Cal Am) Engineering Manager, reported that there is
nothing new on the water supply project schedule since last month. He informed the Authority
of the following:
o

The California Public Utilities Commission (CPUC) will be making a decision next week
the water purchase agreement (WPA) and the Monterey pipeline project.

Pending an outcome of the CPUC decision, the pipeline project will begin construction
in October or November, and will be completed in 1 year.

PUBLIC COMMENT

Tom Rowley, MPTA, questioned when the CPUC makes a decision on the WPA or the
pipeline, if there will be a 30 day waiting period. He said he has heard there will be
potential lawsuits and the Authority should be prepared.

Legal Counsel Don Freeman responded to public comment saying he assumes the CPUC
would have to file a notice of determination and give time for an appeal, such as 10 day
window.

Monterey Peninsula Regional Water Authority


Director's Meeting Minutes - Thursday, September 8, 2016
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MPRWA Minutes

Thursday, September 8, 2016

Executive Director Cullem called Legal Counsel Russ McGlothlin on speakerphone to clarify if
anyone from the Authority should attend the CPUC meeting next week, and if the item
regarding the Cal Am WPA and pipeline can be removed from the CPUC Consent agenda. Mr.
McGlothlin answered that he cannot personally attend the meeting, public cannot pull an item
off of consent, however the Commissioners can. He said that a member or representative of the
Authority could attend the CPUC meeting if they wish.
No action was taken on this item.
9.

Discuss Policy for Developing Water Authority Agendas and the Timeline for Publishing of
Information and Reports Prior to the Meeting, and Provide Staff Direction
Action: Discussed; provided direction to Staff
Executive Director Cullem explained that it was recommended by one of the Directors to have
a discussion about adopting a policy for publishing the Authority agendas and reports. He said
the options are having the agenda and packet ready on Friday the week before the meetings, or
have it on Monday the week of the meeting.
PUBLIC COMMENT
None
The Directors agreed that they would prefer the agenda and packet be available consistently, at
one time and not provided piecemeal over several days. President Kampe asked if the
Directors prefer a Friday or Monday packet date.
Director Roberson commented that he wants to see the invoices for contractual services before
they are in the packet for approval. Executive Director Cullem said that he cannot hold the
invoices for approval each month otherwise the invoices would be paid too late.
President Kampe suggested that a Monday packet day be approved. Director Rubio said that
after each meeting ends, the next set of agenda items should be already in progress.
The Authority directed staff that going forward they would like to have the agenda and packet
ready on Monday the week of the meeting, instead of on Friday the week before.
ADJOURNMENT
President Kampe adjourned the meeting at 8:43pm.

ATTEST:

Nova Romero, Clerk of the Authority

MPRWA President

Monterey Peninsula Regional Water Authority


Director's Meeting Minutes - Thursday, September 8, 2016
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Monterey Peninsula Regional Water Authority


Agenda Report

FROM:

Date: November 10, 2016


Item No: 2.

Executive Director Cullem

SUBJECT: Approve and File Authority Checks Through October 31, 2016
RECOMMENDATION:
It is recommended that the Authority approve and file the payments invoiced as of
October 31, 2016.
DISCUSSION:
At its meeting on September 12, 2013, the Authority Board approved a staff
recommendation to provide the Directors a listing of financial obligations since the last
report for inspection and confirmation. 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:
(check amounts will be provided by 11/10/16)

The bank balances as October 31, 2016 is sufficient cover the above checks, therefore,
staff is recommending approval.
ATTACHMENTS:
None

Monterey Peninsula Regional Water Authority


Agenda Report

FROM:

Date: November 10, 2016


Item No: 3.

Executive Director Cullem

SUBJECT: Receive Report on Notice from Public Water Now to Withdraw from the
Settling Parties Agreement
RECOMMENDATION:
It is recommended that the Water Authority receive a report on a declaration by George
Riley to seek the withdrawal of Public Water Now from the Settling Parties Agreement of
July 31, 2013.
DISCUSSION:
At a settling parties conference call in October, George Riley voiced his intent to
recommend that Public Water Now (PWN) withdraw from the settling parties
agreements adopted on July 31, 2013. It remains to be seen if the PWN Board will
approve of George's recommendation, or if the CPUC ALJ will allow it.
Although PWN is not currently participating in the Settling Parties conference calls and
deliberations, it will continue to receive invitations until its withdrawal from the
agreements has been approved and confirmed.
ATTACHMENTS:
None

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Monterey Peninsula Regional Water Authority


Agenda Report

FROM:

Date: November 10, 2016


Item No: 4.

Executive Director Cullem

SUBJECT: Receive Report Marina Coast Water District Motion to Delay CPUC
Hearings on the Return Water Agreement and the Brine Disposal
Agreement
RECOMMENDATION:
Staff recommends that the Water Authority receive an update on the Marina Coast
Water District motion to delay CPUC hearings on the Return Water Agreement and the
Brine Disposal Agreement.
DISCUSSION:
On July 18, 2016 the MCWD filed a motion with the CPUC to delay the CPUC decision
on the Return Water Agreement and the Brine Disposal Agreement, both of which were
the subject of CPUC ALJ Hearings in April 2016.
The Authority co-filed a Motion to Strike the MCWD motion on July 22, 2016. Details
were provided the Water Authority at its meeting of August 11, 2016.
At its meeting of September 15, 2016 the CPUC disregarded the MCWD Motion and
approved the Return Water and Brine Disposal Agreements.
ATTACHMENTS:
None

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Monterey Peninsula Regional Water Authority


Agenda Report

FROM:

Date: November 10, 2016


Item No: 5.

Executive Director Cullem

SUBJECT: Receive Report on SWRCB Decision on Motion to Reconsider the CDO


Extension (WR 2016-0016)
RECOMMENDATION:
Staff recommends that the Water Authority receive an update on the Water Ratepayers
Association of Monterey County (WRAMP) and Public Trust Alliance (PTA) petition to
the State Water Resources Board (SWRCB) to reconsider the CDO Extension (WR
2016-0016).
DISCUSSION:
Over the summer, WRAMP and PTA petitioned the SWRCB to reconsider its approval
of WR 2016-0016, a modification to CDO 2009-0060, which had been approved by the
State Board on July 19, 2016.
The Authority co-submitted opposition to the reconsideration.
The SWRCB rejected the WRAMP and PTA Petition to Reconsider at its meeting of
November 1, 2016. The full record of the SWRCB action can be found at its web site.
ATTACHMENTS:
None

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Monterey Peninsula Regional Water Authority


Agenda Report

FROM:

Date: November 10, 2016


Item No: 6.

Executive Director Cullem

SUBJECT: Receive Report and Discuss the Overall Status of Water Supply on the
Monterey Peninsula
RECOMMENDATION:
It is recommended that the Water Authority receive an update on the overall status of
water supply on the Monterey Peninsula.
DISCUSSION:
Dave Stoldt, the General Manager of the Monterey Peninsula Water Management
District (MPWMD), has been invited to provide an update on the status of water supply
on the Peninsula.
ATTACHMENTS:
None

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Monterey Peninsula Regional Water Authority


Agenda Report

FROM:

Date: November 10, 2016


Item No: 7.

Executive Director Cullem

SUBJECT: Receive Report, Discuss, and Provide Direction Concerning Proposed


Amendments to the Large Settlement Agreement
RECOMMENDATION:
It is recommended that the Water Authority receive a report, discuss, and provide
direction to staff on Settling Parties' efforts to draft amendments to the Large Settlement
Agreement.
DISCUSSION:
Since signing of the Large Settlement Agreement on July 2013, much has changed.
Phase 2 (desal) of the MPWSP has moved more quickly than Phase 1(GWR). Cal Am
has signed contracts for the desal facility, the conveyance facilities (pipelines, tanks,
pumps), and the intake wells.
In addition a number of agreements such as the Return Water Agreement and the
Brine Disposal Agreement have been executed, and the Transfer Pipeline has been
removed from the MPWSP and is being built separately at this time.
Furthermore, the multi-year delays due to CPUC problems in completing the MPWSP
EIR are impacting the cost of the project. Fortunately, definitive prices are now available
via executed contracts, and the availability of securitization and public financing is fairly
certain. This situation necessitates a re-definition of the project financial fundamentals
that are included in the original Large Settlement Agreement.
Accordingly, the Settling Parties are working on a draft amendment to the agreement to
update the financials. It is likely to be in a form that can be returned to the Water
Authority for deliberation and approval by the December or January Authority meeting.
ATTACHMENTS:
None

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Monterey Peninsula Regional Water Authority


Agenda Report

FROM:

Date: November 10, 2016


Item No: 8.

Executive Director Cullem

SUBJECT: Receive an Update on the Summary Project Schedule for the Monterey
Peninsula Water Supply Project (MPWSP) and the Status of Test Slant
Well Operations
RECOMMENDATION:
It is recommended that the Water Authority Board receive a report from Cal Am on the
latest "Summary" MPWSP schedule.
DISCUSSION:
Cal Am will provide the most recent Summary MPWSP schedule, including an update of
the "dashboard" and current status of test slant well operations and results.
ATTACHMENTS:
None

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