MPRWA Final Agenda Packet 02-12-15

Closed Session Agenda
Monterey Peninsula Regional Water Authority (MPRWA)

6:30 PM, Thursday, February 12, 2015
SPECIAL MEETING
Council Chamber
580 Pacific Street
Monterey, California
CALL TO ORDER
CLOSED SESSION AGENDA ITEMS
cs1.
Pursuant to Government Code 54957 - Performance Evaluations

Positions: Executive Director And Authority Legal Counsel
ADJOURNMENT
The Monterey Peninsula Regional Water Authority 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 Monterey 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 35.10235.104 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, 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 the Monterey 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.
Agenda
Monterey Peninsula Regional Water Authority (MPRWA)
Regular Meeting
7:00 PM, Thursday, February 12, 2015
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.
January 8, 2015 Regular Meeting - Milton
2.
Approval of Checks Through February 12, 2015 - Milton

AGENDA ITEMS
3.
Adopt Resolution Authorizing The Authority President To Extend The Contract With The
City Of Monterey For Executive Director Services And To Request The City Of Monterey
To Extend Its Contract With James M. Cullem For That Position - Milton
4.
Discuss Accomplishments of The Water Authority Since Its Formation to the Present Burnett
5.
Receive The 23 January 2015 Update to the CPUC Schedule and Discuss the Delay in the
Release of the DEIR and Other Changes and Decide on a Course of Action if Needed Cullem
6.
Approve Invitation to New Interim General Manager of the Marina Coast Water District to
Serve As A Member of The Water Authority Technical Advisory - Cullem
7.
Receive Report On Monthly Reports To The Authority Board On Activities Of The Public
Outreach Consultant And Discussion Of Priorities. - Beleny
8.
Designation of Alternate To Serve As A Representative of The Authority On The
Thursday, February 12, 2015
Governance Committee. - Cullem

9.
Receive Update, Discuss, And Provide Direction On Water Authority Participation In

Obtaining A Cease and Desist Order (CDO) Extension - Burnett
10.
Receive And Discuss The Current "Summary" Monterey Peninsula Water Supply Project
Schedule Including The Status Of The Test Slant Well Construction And An Evaluation Of
The Technical, Economic, And Legal Feasibility Of Slant Wells After Data Is Available
From The Test Well - Crooks
11.
Receive Year End Budget Review for Fiscal Year 2014-15, Discuss, and Provide
Guidance To Staff. - Cullem
12.
Discuss Implications Of An Earlier Start Time For Future Meetings - Milton

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)
Regular Meeting
7:00 PM, Thursday, January 8, 2015
COUNCIL CHAMBER
580 PACIFIC STREET
MONTEREY, CALIFORNIA
Directors Present:
Burnett, Edelen Kampe, Pendergrass, Roberson, Rubio
Directors Absent:
None
Staff Present:
Executive Director, Legal Counsel, Acting Clerk Lewis
ROLL CALL
PLEDGE OF ALLEGIANCE
REPORTS FROM BOARD DIRECTORS AND STAFF
PUBLIC COMMENTS
George Riley with Public Water Now announced that his organization is holding a
presentation on January 19, 2015. The subject matter to be presented relates to slant
wells.
Tom Rowley with MPTA welcomed Director Roberson, Mayor of the City of Monterey
and urged the Board to occupy the vacant seat on the Board from Monterey County. Mr.
Rowley stressed the importance of filling the vacancy.
Doug Wilhelm spoke to the Huntington Beach Poseidon Plant construction and the
reasons for its eventual cessation.
President Burnett closed public comment.

CONSENT AGENDA
On motion by Director Pendergrass and seconded by Director Edelen and approved by
unanimous vote, the Monterey Peninsula Regional Water Authority approved the consent
calendar as presented (M/S/P 6-0)
1.
Approval of Minutes from the December 11, 2014 Regular Meeting
2.
Approve and File Checks Through January 8, 2015

AGENDA ITEMS
3.
Receive Annual Financial Report and a Full Opinion Audit for FY 2013-14 and 2012 from
McGilloway, Ray, Brown and Kaufman (Kaufman) CPA
Patricia Kaufman presented the Annual Financial Report and Full Opinion Audit for FY 2013-14
and 2012 from McGilloway, Ray, Brown and Kaufman. No material weaknesses in controls.
MPRWA Minutes
Thursday, January 8, 2015
The Board received an unmodified opinion. The Board was found to be in a favorable opinion
overall.
President Burnett opened the floor for Directors and the public.
Director Roberson asked about Mid-Year Budget Review in February and thanked the Board for
their service as it relates to the budget.
On motion by Director Rubio and seconded by Director Edelen and approved by unanimous
vote, the Monterey Peninsula Regional Water Authority approved the consent calendar as
presented (M/S/P 6-0)
4.
Receive Report, Discuss, And Provide Staff Direction On The Updated MPWSP Critical Path
(CPM) Permits & Approvals Schedule (Summary Version) To Include The Status of the Test
Slant Well, GWR, Pacific Grove Small Projects, And Aquifer Storage (ASR); And Discuss
Future Permits And Approvals Required Of Marina
Ian Crooks, Engineering Manager with California-American Water, spoke about the test slant
wells. Mr. Crooks cited healthy participation by the contractors and mobilization of the second
drilling crew to continue monitoring wells. The pipeline from the beach to manhole is completed.
Received the discharge permit for the outfall. Electrical work has started and test well drilling
will start at the end of the year and is progressing. Mr. Crooks provided the construction
schedule for all of the pending projects that Cal-Am is currently working on.
President Burnett asked Mr. Crooks to provide updates to the public within the next six to eight
weeks. Mr. Crooks currently provides updates to regulatory agencies and will work to place the
information on their website.
Director Rubio asked if the schedule is on the project website. President Burnett asked Cal-Am
to provide materials in advance to put in the packet before meetings and to provide materials on
the website with regularity. President Burnett asked Mr. Crooks to speak about the lawsuit to
which we responded the paperwork is currently with the clerks to determine a court date.
President Burnett asked when the Board would receive data for financial feasibility. Mr. Crooks
stated that the data would be available as soon as the test well is activated. The estimate is
mid-March, after which they will update the data on a weekly basis. President Burnett invited
public to speak.
Tom Rowley, MPTA, was not privy to updates on the slant well in the Monterey Herald.
Tom Rowley maintained that there was a lack of information about the important events.
Having a successful test of the slant well to see if source water is available for the
desalination project is paramount.
George Riley shared concerns with MPWSPs Anticipated Schedule, specifically the
period of time of collecting data between key deadlines. He spoke to the settlement
agreement.
Doug Wilhelm continued his earlier comments and spoke to the subsurface panel. The
Huntington Beach Poseidon Plant dropped their project for the following reasons: No
slant well experience. Production capacity started at 95 percent and dropped to 52
percent. We need to know if there is going to be inherent fall off with slant wells. Its
Monterey Peninsula Regional Water Authority

Regular Meeting Minutes - Thursday, January 8, 2015
2
MPRWA Minutes
expected that there will be high maintenance. CCC was an equal partner.
Director Roberson asked about slant well test from Marina Coast Water District and Director
Roberson also questioned feasibility or alternatives to the test well to see if the project is even
feasible.
President Burnett stated that the Board has been waiting a couple of years to get to this point.
The test well will make every attempt to answer a lot of questions about feasibility. Construction
questions will inevitably arise. Production of gallons per minutes will affect the question of
feasibility. Salinity of the product water from the test well will determine whether the
hydrogeology is OK.
President Burnett asked about the fall off of production over time. Ian Crooks asked to
agendize the Dana Point comparison for the next meeting. Executive Director Cullem informed
the Board that a $1,000,000.00 grant was awarded to Cal Am to be applied toward the cost of
the test wells. President Burnett deemed report received.
5.
Update And Provide Direction On Efforts To Request A Modification To The Cease and Desist
Order
President Burnett stated there are issues with the Cease and Desist Order which will stop
unpermitted pumping by 2016. The Board will seek to modify the Cease and Desist Order
(CDO) in order to meet Cal-Ams production schedule. State Water Board is cognizant that the
Water Authority is working very diligently to create a new water source. Hopes to have a
modification to the CDO, either in late spring after a draft Environmental Impact Report (EIR) or
in the fall with a CPCN from CPUC. Both dates would fall within 2015. Water Years start in
October and run through September of the following year. For the following water year, the
drop-off would be less significant with the 1,000 Acre Feet. Modifying the CDO would resolve
impending issues and puts the relative amount of pressure to remain focused on delivering
these projects on time.
Director Roberson asked the Board about the water schedule and about the 1,000 Acre Feet.
President Burnett maintained that the 1,000 Acre Feet came from previous conservation efforts.
Director Pendergrass spoke to importance of the project and offered his opinion in regards to
the State Water Boards sentiment.
President Burnett invited the public to comment on the item.
Tom Rowley, MPTA, spoke to his previous involvement in the original scoping of a desal
project. Mr Rowley was invited to participate in the discussion on developing a
consensus of a peninsula project. Proposal came up with the three parties and regional
desal plant. Requests for extension, CDO is against Cal-Am, spoke to no representation
of the County on the current board. Ratepayers and taxpayers not getting the fines
passed on. The underlying concern at the December meeting was apprehension about
ratepayers footing the bill.
George Riley with Public Water Now spoke to two venture capitalists spending money to

3
MPRWA Minutes
resolve issues. There needs to be a contingency factor that if feasible is a legitimate

question. The second choice ought to be a legitimate argument that the Board has a
backup plan. What is the alternative if the slant wells fail?
John Narigi with The Coalition of Peninsula Businesses stressed that in the commercial
sector that if rationing occurs, there isnt much water left to surrender. All retrofits and
pertinent options have been exhausted.
President Burnett and Director Edelen responded to public comment. Vice President Kampe
spoke to a received article on Los Angeles and their conservation efforts. Director Roberson
spoke to possible litigation or take political action against the State Water Board. Director
Pendergrass would like to speak with the Governors office and provide them with the
Peninsulas conservation efforts. President Burnett spoke to the possibility to invite the State
Water Board to the Peninsula to show them conservation efforts as they relate to the CDO.
Legal Counsel Don Freeman stated that the State Board is receptive to a controlled and
educated approach. President Burnett closed public comment and deemed report received and
discussed.
6.
Receive Report, Discuss, And Provide Staff Direction On Updated CPUC Schedule
Executive Director Cullem spoke to the purpose of the updated schedule and task list for
MPWSP Post Settlement, provided updates and invited questions from the Board. President
Burnett invited comments from the public.
Tom Rowley, MPTA, saw General Manager Dave Stoldts presentation on the
agreements that were needed and stated that it wasnt discussed in great detail. GWR
being run by PCA, transfer the water to Water Management District who would then sell
it to Cal-AM. Asked why GWR couldnt directly transfer the water to Cal-Am?
George Riley commented on potable water.
Vice President Kampe questioned Cal-Am about the CEMEX test well and production well.
President Burnett deemed the report received.
7.
Establish Water Authority Meeting Schedule For Calendar Year 2015

Director Edelen asked about modifying the start time of the contingent meetings and asked
Executive Director Cullem about the possibility of moving the regular meeting time to 6:00 PM.
President Burnett opened the item up to the public and Tom Rowley thanked the Board
for their support.
Director Rubio stated that if there werent enough action items to warrant a meeting that a
meeting shouldnt be held.
No action was taken.
ADJOURNMENT

4
MPRWA Minutes
ATTEST:
Michael Lewis, Acting Clerk, City of Seaside
Jason Burnett, MPRWA President

5

Agenda Report
FROM:
Date: December 11, 2014

Item No: 2
Authority Clerk Milton
SUBJECT: Approval and File Authority Checks Through February 12, 2015
RECOMMENDATION:
It is recommended that the Authority approve and file the accounts payable payments
made during the period January 8 to February 12, 2015 with total payments for the
above referenced period of $8,189.47 from the general fund account and authorize the
Directors to sign for such checks.
DISCUSSION:
At its meeting on September 12, 2013, the Authority Board approved a staff
recommendation to provide the Directors a listing of general checks issued since the last
report so that it can inspect and confirm these checks. Each invoiced expense has been
reviewed and approved by the Executive Director and Finance personnel prior to payment
to insure that it conforms to the approved budget.
The following checks are hereby submitted to the Authority for inspection and
confirmation.
$ 1,225.00 to Environmental Relations for public outreach and website updates
$ 2,380.00 to McGilloway, Ray, Brown and Kaufman for Audit Services
$ 4,584.47 to Brownstein Hyatt Farber and Schreck for Special Legal Counsel
Services.
The bank balance as of February 5, 2015 is sufficient cover the above check therefore,
staff is recommending approval.
ATTACHMENTS:
Budget to Actual Report through February 5, 2015
2:18 PM
02/06/15
Accrual Basis
Profit & Loss Budget vs. Actual

July 1, 2014 through February 6, 2015
Budget
Actual Jul 1,
'14 - Feb 6, 15
Balance
% of Budget
Ordinary Income/Expense
Income
47200 Program Income
47230 Membership Dues
458,680.00
334,196.00
124,484.00
72.86%
47240 Program Service Fees
0.00
0.00
0.00
0.0%
47250 Reimbursement SPI Contract
0.00
18,562.14
-18,562.14
100.0%
47260 Reimburesment VE Contract
0.00
0.00
0.00
0.0%
47200 Program Income - Other
0.00
0.00
0.00
0.0%
458,680.00
352,758.14
105,921.86
76.91%
60901 Clerk of the Board
24,000.00
24,000.00
0.00
100.0%
60902 Executive Director
Total Income
Expense
60900 Administration and Clerical
94,680.00
17,603.81
77,076.19
18.59%
60903 Principal Offc of the Authority
5,000.00
0.00
5,000.00
0.0%
60904 Financial Services
6,000.00
6,000.00
0.00
100.0%
500.00
0.00
500.00
0.0%
0.00
0.00
0.00
0.0%
130,180.00
47,603.81
82,576.19
36.57%
60905 Misc Admin Expenses

60900 Administration and Clerical - Other
Total 60900 Administration and Clerical
62100 Legal Fees
62110 Board Counsel
63,000.00
20,000.00
43,000.00
31.75%
152,000.00
21,900.38
130,099.62
14.41%
0.00
0.00
0.00
0.0%
215,000.00
41,900.38
173,099.62
19.49%
35,000.00
2,408.33
32,591.67
6.88%
6,000.00
4,425.00
1,575.00
73.75%
62803 Televised Meeting
10,000.00
2,537.50
7,462.50
25.38%
62804 Contract Services & Studies
30,000.00
0.00
30,000.00
0.0%
62805 Contract SPI
0.00
0.00
0.00
0.0%
62800 Contract Services - Other
0.00
0.00
0.00
0.0%
81,000.00
9,370.83
71,629.17
11.57%
65000 Insurance
7,500.00
6,673.44
826.56
88.98%
65100 Travel Expenses
5,000.00
325.00
4,675.00
6.5%
0.00
0.00
0.00
0.0%
20,000.00
0.00
20,000.00
0.0%
458,680.00
105,873.46
-352,806.54
23.08%
0.00
246,884.68
458,728.40
53.83%
200,000.00
104,988.64
95,011.36
52.49%
62140 Special Counsel

62100 Legal Fees - Other
Total 62100 Legal Fees
62800 Contract Services
60801 Public Outreach
62802 Audit Services
Total 62800 Contract Services
66000 Payroll Expenses

68300 Contingency
Total Expense
Net Ordinary Income
Other Income/Expense
60806 Contract VE
Page 1 of 1

Agenda Report
FROM:
Date: February 12, 2015

Item No: 3.
Authority Clerk Lesley Milton
SUBJECT: Adopt Resolution Authorizing The Authority President To

Extend The Contract With The City Of Monterey For Executive
Director Services, To Request The City Of Monterey To Extend
Its Contract With James M. Cullem For That Position
RECOMMENDATION:
It is recommended that the Monterey Peninsula Regional Water Authority
(MPRWA) extend the contract with the City of Monterey for employment
services for the Authority Executive Director position, to approve a
Resolution accordingly, and to request the City to extend its employment
contract with James (Jim) M. Cullem to serve as the Executive Director for
the MPRWA.
DISCUSSION:
At its meeting of January 24, 2013, the Water Authority Board approved
Resolution 2013-04 and entered into an annual, renewable, contract with
the City of Monterey for Executive Director services. In May 2013, with the
approval of the Water Authority Board, the City hired Jim Cullem through
an annual, renewable contract to replace Bill Reichmuth as Executive
Director following Bill's resignation. At its meeting of March 13, 2014, that
contract with the City was extended to February 14, 2015. The City also
extended Jim Cullem's contract until Februrary 14, 2015.
At its meeting of February 12, 2015, the Water Authority Board will conduct
a performance review of the Executive Director and should therefore be in
a position to determine if Jim Cullem should, or should not, continue to
serve in that position.
06/12
Should the Water Authority decide to extend the contract with the City for
Executive Director services and (or not) request the City to extend its
contract with Jim Cullem, staff requests the extension be effective for 18
months to allow consideration after the end of the fiscal year.
The Authority is also requested to authorize the President to sign the
necessary documents prior to the February 14, 2015 contract expiration
date.
BUDGET CONSIDERATIONS:
The Executive Director position for FY 2014-2015 was budgeted by the
Water Authority at its meeting of April 10, 2014. Funding of the position for
FY 2015-2016 will be addressed at the Authority budget meeting in April
2015.
ATTACHMENTS:
A-Resolution 2015-XX
B-Contract with Monterey for Executive Director Services
RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE MONTEREY PENINSULA
REGIONAL WATER AUTHORITY
APPROVE CONTRACT FOR EXECUTIVE DIRECTOR/LICENSED PROFESSIONAL
ENGINEER SERVICES
WITH THE CITY OF MONTEREY
WHEREAS, the City of Monterey is a member city of the Monterey Peninsula Regional
Water Authority; and
WHEREAS, the City of Monterey has agreed to provide the services of Executive
Director/Licensed Professional Engineer to the MPRWA; and
WHEREAS, the President and MPRWA Directors have reviewed the contract and agrees to
its terms and conditions; and
WHEREAS, the cost of retaining the Executive Director/Licensed Professional Engineer
services is not to exceed $94,680 for fiscal year 2014-15 and not to exceed $94,280 for Fiscal year
2015-2016.
NOW, THEREFORE, BE IT RESOLVED that the President is hereby authorized to extend
on behalf of the MPRWA a contract with the City of Monterey for Executive Director
Services/Licensed Professional Engineer for the MPRWA for a period not-to-exceed 18 months.
PASSED AND ADOPTED BY THE MONTEREY PENINSULA REGIONAL WATER
AUTHORITY this ___ day of ____ 201_, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
DIRECTORS:
DIRECTORS:
DIRECTORS:
DIRECTORS:
APPROVED:
ATTEST:
Jason Burnett, President
Lesley E. MiltonRerig, Clerk to the

Authority
AGREEMENT FOR PROFESSIONAL SERVICES
James M. Cullem
WATER AUTHORITf DIRECTOR
If-
THISAGREEMENT, made andentered into this_^^__day of ^2^7 , 2014, by and

between the CFTY OF MONTEREY, a municipal corporation of the"State of California, "City', and
James M. Cultem, Water Authority Director, herein referred to as "Employee."
WITNESSETH:
WHEREAS, City requires certain administrative and professional services in the position of
Water Auttiority Director; and
WHEREAS, Employee is qualified to furnish such services in accordance wrth the terms and
conditions hereinafter set forth;
NOW THEREFORE, in consideration of the mutual terms, covenants, and conditions
contained herein, the parties hereto agree as follows;

1.
Contract Appointment
Employee is hereby retained in the position ot Water Authority Director, and as such shall perform
the duties and services ot that position as more particularly described in the City's job description for
this position attached as (Exhibit A). It is agreed that in fulfilling the duties and services of this job,
Employee shall be employed on a half-time basis, working not more than 960 hours in any fiscal year.
Employee agrees to refrain from outside emp.lpyment that may conflict with these duties.
2.
Status
Employee shall serve at the pleasure of the City Manager, subject to the terms and conditions hereof,
and shall not acquire a property interest in employment or a right to continuing employment with the
City of Monterey- The terms, covenants, and conditions of Employee's employment with the City are
expressly limited by and to the terms, covenants and conditions o( this Agreement. Employee shall
be considered a Part-time Employee.
3.
Compensation
(a)
Rate - Employee shall receive an hourly rate of $100 per hour for the
performance of the above described services. Employee shall not be entitled to overtime. Employee
shall not receive any cost-of-living raises or salary adjustments during the term of this agreement.
Agreement #-. Ag-4096 - Page 1 of 6
(b)
Benefits - During the term of this agreement. Employee shall be entitled to the
following benefits:
1) Retirement System: In compliance with federal regulations,
Employee will be enrolled in the ICMA 457 Deferred Compensation program for City part-time
temporary Employees. The City will make a 3. 75% contribution (based on salary), and Employee will
have a matching 3. 75% salary deduction into the retirement plan.
2) Medicare: In compliance with Federal regulations, Employee will be
enrolled in Medicare. The City will make a 1. 45% contribution (based on salary) and Employee will
have a matching 1. 45% salary deduction into Medicare.
(c)
Employee shall not receive any employee benefit not expressly set
forth in this paragraph, "3. Compensation".

4.
Transportation
Employee shall furnish their own transportation in the performance of the duties of this position.
Consistent with City poltey, as outlined in the City of Monterey "Reimbursement Policy", Employee
may receive mileage reimbursement, or utilize a City vehicle, for travel when mileage for any specific
trip is expected to exceed Twenty-Five (25) miles one-way.
5.
Term
The term of this agreement shallcommence on May 16, 2014, and shall continue for a period of nine
(9) months, until February 14, 2015, to coincide with the Moriterev Peninsula Regional Water
Authority's contract term with the City of Monterey, upon the mutual agreement of the parties upon the
terms stated herein, as may be amended from time to time,
6.
Termination
Either party may terminate this Agreement without cause upon giving the other party not less than
thirty (30) days prior written notice. Should the Monterey Peninsu.la Regional Water Authprrty Board
terminate the agreement wrth the City for provision of Executive Director services, this Agreement
shall terminate as of the dale of the Board's vote. Notwithstanding anything to the contrary, Employee
shall, upon Notice of Termination, deliver to City a written status report of all projects or matters in
which Empioyee is involved. In the event of such termination, all rights and obligations of the parties
hereto shall thereupon cease. The provisions of this paragraph shall riot be deemed a limitation upon
the respective rights or remedies of the parties hereto which may accrue to them.
7.
Standard of Performance
All services to be performed by Employee, pursuant to paragraph 1, hereof, shall be performed in

accordance with all applicable ordinances, policies, and rutes and regulations of the City.
Agreement. Ag-4096 - Page 2 of 6
8.
Non-assianability
Employee shall not sub-cqntract, assign, sell, mortgage, hypothecate, or otherwise transfer
Employee's interests, rights, duties or obligations hereunder in any manner, without the express prior
written consent of the City.
9.
Non-Discrimination
The City does not discriminate in the hiring and employment of persons for the work under this
Agreement or related to any City project Because of the race, religious creed, color, national origin,
ancestry, physical disability, mental disability, medical condition, genetic information, marital status,
sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status
of any person.
IN WITNESSWHEREOF, The parties hereto have executed this agreement the day and year
first hereinabove written.
City of Monterey, a
Municipal Corporation of the
State of California
B/M-ALL
fchael MfcCarthy,
BY:
les M. Cullem, Water Authority Director
S.'\70W.
l*>-Cff>^UP. P*tS*.AffT mdEWtOYEE

BSplN*-t<BTO<4<Bal-D(W7<>W&.
Agreement ft Ag-4096 - Page 3 of 6
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EXHIBIT A
WATER AUTHORITY
DIRECTOR
The IVtonterev Peninsula Regional Water Authority
The Monterey Peninsula Regional Water Authority (MPRWA) was created in
early 2012. MPRWAis a Joint PowerA.uthprity (JPA)that consistsof sixaties
the Cities of Carmel-by-the-Sea. Del Rey Oaks, Monterey, Pacific Grove, Sand
City and SeaskJe; The purpose is to study, plan develop, finance acqu"'^
construct., maintain, repair, manage, operate. control and govern Water Projects
either alone or in cooperation with other public or private non-member entities

The'Watef Authority Director will be a part-time Cily of Monterey employee, to be
selected by and reporting to the City of Monterey City Manager.
Examples of Duties
Thejobdutieslistedbeloware iliustralivebutnotexclusiveofthedutiesand
responsibilities of the position. .
Policy Related Functions:
1. Work with the Chairperson of MPRWA to prepare the agenda for the
forthcoming meeting, and maintain a list of candidate itemsforsubsequent

meetings.
2. Prepare recoinmendations on policy matters and action items, as

requested by or agreed upon by the Board.
3. Respond to Board member refluests for information, requests to add items

to the agendaor to considercertain issues.
4. Prepare press releasesto inform press/media, to keep public informed of

MPRWA's actions and positions.
5. Address requests for 'information or statements by public arid media

representatives as appropriate, or refer such inquiries to the Ghair or (in
his or her absence) to the Vice Chair of the MPRWA.
6 Coordinate and work effectively with the Chair of the Technical Advisory
Committee, particularty with regardto Board detegatrons andplacingTAG

matters before the Board for consideration/action.
7. Work with Board members to develop improved means of reporting the
actions/positions ofthe Board backto the member agencies.

Poljcy/Administrative Functions:
1. Serve as liaison to theCity Managere of the member Cities, eliciting their

help and advice on MPRWA issues.
Agreement ffc Ag-4096 - Page 4 of 6
2. Maintain a listing of forthcoming California Public Utilities Commission

(PUC) workshops and hearings, and assist the Board in developing
positions and instructing their representatives.
3. Coordinate with person or firm providing legal services to see that Board
refluests are met in a timely way and that there's a unified approach to
presentations to the Board.
Administrative Functions;
1. Work with the person/agency providing Clerk servces on issues relating to

agenda preparation, recordation of minutes, review of minutes,
maintenance of MPRWA records, complying with Public Records Act
requests, use of technology to expedite MPRWA business, and related
matters.
Provide fiscal agency/banking services for MPRWA or, if a nnember

agency is the designated fiscal agent, coordinate with that agency on
financial matters, and coordinate with the Board member designated as
the MPRWA Treasurer to maintain accounts of MPRWA
3. Prepare budget necessary to support agency's abijity to perform functions

as determined by the Board of Directors.
4. Maintain a list of and administer contracts that have been approved by
MPRWA.
5. Maintain working files as necessary to administer the core functions.
6. Arrange for places for regular and special meetings of MPRWA. unless
detegated to another party.
7 Develop programs as necessary to implement policy direction of Board.
8. Develop a "policy binder" so that all adopted Board policies are property
maintained and easily retrieved.
9. Protect, maintain and keep inventory of MPRWA property and equipment.
10. Schedule meetings of such Committees (Regular and Ad Hoc) as the
MPRWA have created, and coordinate with Chair to see that the work of
MPRWA proceeds.
11. Performs other duties as required to best ensure the smooth operation of
MPRWA.
Agreement #: Ag-4096 - Page 5 of 6
EXHIBIT B
MONTEREY PENINSULA REGIONAL WATER AUTHORTTY
Directors;
April 14, 2014
Chuck Ocib Szb. Tncydcni

,
Mike Mccarthy
Interim Cily Manager
City at Momerey
1awn Biimcit. Vice PICMCICDI
K.ilpl-t Ruhxi.S<tfiL-!3iy
IC.TTV Eddcn. Ttcasuicr
Biii Ksmpc- DnrcttiT

D;iri(t Pcndrr^tss OirL-cinr
580 Pacific Street
Monterey, CA 83940
Executive DircctOT
jimOillum. P.R
Subject: Extension oi Cpntract for Executire Director Services with Ihe Monlerey Peninsula Regional
Water Authority
Dear Mr, McCarthy
The Monlerey Peninsula Regional Water Authority would like to extend its contract wilh the City ol
Monterey entered into on February 15, 2013 for an additional one (1) year. Saidextension would
commence on February 15, 2014 and would terminate February 14, 2015.
Al the Authority meeting of March 13, 2014, the Directors approved extending the contract with the Gity of
Monterey
U?r ExecLttive Director SBrvices.
If the City of Monlerey wishes lo aulfcrize extension of the contract as authorized in section 3. 02, please
sign and return this letter to the below address.
Foryoui reference I have enclosed the staff ;eport whichincludes the previous agreement and
documenlalion.
Respectfully,
Jim Ctlllem, P. E.
Exe&twe Direaoi, MPRWA
leltteCarthy
Monterey City Manag
Agreement #r Ag-77^^^^
g^lt yc^
Agreement ft Ag-M96 - Page 6 of 6
&-
|^)n^TER^:Y
cADi-'ws'tA
li3t>*<i .
-w.*nrww-.i (ice.
CAO) (FBSK!
EXHIBIT A
SCOPE OF SERVICES/PAYMENT PROVISIONS
EXECUTIVE DIRECTOR SERVICES
I.
City of Monterey to Provide the Following:

A. Executive Director Duties and Services- Policy Functions
Work to prepare agendas and packets for Board & TAC meetings
Prepare recommendations on policy matters and action items
Respond to Authority requests for information or agenda items
Keep press/media informed of MPRWA actions
Address requests for information or statements by public or media as appropriate
Coordinate with Chair of the Technical Advisory Committee regarding board delegations
and placing TAC matters before the Authority for consideration/action
B. Administrative Functions
C.
Serve as liaison to the City Mangers of the member cities

Maintain listing of forthcoming CPUC workshops and hearings, assist Authority in
developing positions and instructing their representatives
Coordinate with legal services so board requests are met in a timely way
Work with agency proving clerk services for agenda management, recordation of
minutes, maintenance of records, complying with Public records act requests, and
related matters
Coordinate with the designated fiscal agent, on financial matters, and coordinate with
the Authority Treasurer to maintain accounts of MPRWA
Prepare budget necessary to support agency's ability to perform functions
Maintain list of contracts approved by the MPRWA
Develop policy binder of all board adopted policies
Develop programs as necessary to implement policy direction of Board
Maintain working files as necessary to administer the core functions
Arrange for places for regular and special meetings of MPRWA, unless delegated to
another party
Protect, maintain and keep inventory of MPRWA property and equipment
Schedule meetings of such Committees (Regular and Ad HOC) as the MPRWA have
created, and coordinate with Chair to see that the work of MPRWA proceeds
Performs other duties as required to best ensure the smooth operation of MPRWA
Miscellaneous Services Performed by City of Monterey:
Payroll Services for Monterey employee(s) providing these services (this employee will
be allocated within the Office of the City Manager to be paid as part of the City's
regular payroll to the employee performing the services described in Exhibit A herein)
7
II.
Tracking of employee hours and resultant costs of services provided

Invoices requesting payment for services are to be submitted on a monthly basis by the
City of Monterey to the designated fiscal agency
MPRWA to Provide the Following:

Reimbursement to the City of Monterey shall be made within thirty (30) days after
receipt of invoice
III.
Executive Director Rate and Budget

Executive Director Services Hourly Rate and Expenses
$105.20
600
490
$114,668
$17,200
Benefited Wage Per Hour

Hours Budgeted Through July 30, 2013
Hours Budgeted July 1 through December 31, 2013
Total Wages
Administrative, Travel and Meeting Expenses (15%)
$131,868
*Note - MPRWA budget is based on a fiscal year. A new budget for Executive Director expenses
will be created for fiscal year 2014. This contract is contingent upon the MPRWA approving the
budget for the Executive Director position for Fiscal year 13-14.

Agenda Report

Item No: 4.
FROM:
Executive Director Cullem
SUBJECT:
Discuss Accomplishments of the Water Authority Since its Formation to the Present.
RECOMMENDATION:
Staff recommends that the Water Authority Board review and discuss the mission and purpose of
MPRWA JPA, review its accomplishments since its formation, and provide direction to staff.
DISCUSSION:
MISSION:
Paragraph 2.2 of the Joint Exercise of Powers Agreement dated February 12, 2012 and unchanged in the
First Amended and Restated Joint Exercise of Powers Agreement dated February 14, 2013 reads in part
as follows: "The purpose of this Agreement is to establish a public entity separate from its Members to
jointly exercise some or all of the foregoing common powers, as deemed necessary by the Authority, to:
(1) ensure the timely development, financing, construction, operation, repair, and maintenance of one
or more Water Projects; and (2) ensure that the governance of such Water Projects includes
representation that is directly accountable to the Cities' water users."
ACCOMPLISHMENTS:
In general, the Water Authority has been successful in keeping the Peninsula Communities focused on
the goal of obtaining a new water source as close as possible to the CDO deadline of January 1, 2017. As
a part of that effort, the Authority has represented the community in critical meetings of the CPUC,
Coastal Commission, and State Water Resources Control Board (SWRCB).
At its meeting of December 11, 2014, the Water Authority briefly reviewed its accomplishments in light
of the adopted a Work Plan for FY 2013/2014 as follows:
-
Completion of post-settlement activities and follow-up with settling parties

Status: On-going with Jason Burnett, Russ Mcglothlin, and Authority staff continuing to engage
with the CPUC and the settling parties in conformance with the revised CPUC/CPCN schedule dated
January 23, 2015, with an expectation of participating in hearings before the CPUC's ALJ in July
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
ratepayers

Agenda Report

Item No: 4.
Status: With the active support of the Water Authority as well as others, SB 936 has been signed
into law. The Water Bond Proposal has been passed by the voters and the Water Authority
continues to provide whatever political support is required to insure that GWR and the Desal facility
receive a share of available public funds.
-
Work collaboratively with MPWMD and MRWPCA to move the GWR project forward
Status: GWR and the related PCA project Pure Water Monterey have made substantial progress
now that an MOU on source water has signed and bi-lateral agreements are being negotiated with
the goal of reaching a "Definitive Agreement" by March 2015. The TAC has been tasked to track the
GWR schedule and to track the cost of water for recommendation to the Authority Board as
appropriate.
Work with the MPWMD to develop a plan for engaging with the State Water Resources Control
Board regarding potential appropriate modifications to the Cease and Desist Order
Status: The settling parties, with the participation of the Jason Burnett, Russ McGlothlin, and
Authority staff have met several times with SWRCB staff in an effort to find an acceptable
compromise on measures that could meet Board requirements for a four-year CDO extension. This
effort is at a particularly sensitive and difficult stage at this time. A formal request to the SWRCB
will probably be made in 2015.
Where appropriate, support Cal-Am in efforts to secure permits related to the proposed source
wells (initially a test well)
Status: Jason Burnett, Russ McGlothlin, and Authority staff participated actively in seeking to
obtain support from the City of Marina for the test slant well, especially in light of the extreme time
sensitivity of initiating the well construction by December 15, 2014. Unfortunately, the City's denial
of a CDP for the test well had to be appealed to the Coastal Commission where the CDP was
approved on November 12, 2014. MCWD has filed a legal action, so far unsuccessful, to obtain a
restraining order to stop the test well construction.
Actively pursue public outreach and education efforts through our WA consultant in cooperation
with MPWMD and its Public Outreach Committee
Status: Environmental Relations PR has revamped the Authority power point and handout
materials, and has coordinated its public relations message with that of the PCA, Cal Am, and
WMD. In 2015, it will focus on revamping the Authority WEB page including improved links to the
activities of related projects and agencies.
Pursue opportunities to increase the use of storm water in future water supply projects

Agenda Report

Item No: 4.
Status: Although the Executive Director has initiated discussions with the Seaside Basin Water
Master and with the Monterey Peninsula Storm Water Working Group on potential recycling of
storm water, this issue is getting included into GWR as a "new water" source likely processed
through the PCA.

Agenda Report
FROM:

Item No: 5.
SUBJECT: Receive the 23 January 2015 Update to the CPUC Schedule,

Discuss the Delay in the Release of the DEIR and Other
Changes, and Decide on a Course of Action if Needed
RECOMMENDATION:
Staff recommends that the Water Authority review and discuss the current
CPUC schedule for the Monterey Peninsula Water Supply Project
(MPWSP) as annotated by staff and decide if any action by the Water
Authority Board or staff is needed.
DISCUSSION:
At its meeting of January 8, 2015, the Water Authority received a January
5, 2015 staff revision of the October 7, 2013 CPUC schedule for the
MPWSP including the activities needed for the GWR project.
On January 23, 2015 CPUC Administrative Law Judge (ALJ) Weatherford
announced a decision making additional changes to the CPUC schedule
(attached).
Also attached is a January 23, 2015 update of the CPUC schedule, with
changes from the original October 7, 2013 schedule highlighted in red. The
highlighted schedule should facilitate discussion, identify deadline dates,
and suggest actions the Board may deem to be appropriate.
ATTACHMENTS:
A- CPUC ALJ Gary Weatherford Ruling dated 1/23/2015
B- Updated CPUC schedule for the MPWSP dated January 23, 2015.
06/12
GW2/sbf/avs 1/23/2015
FILED
1-23-15
01:36 PM
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of California-American Water

Company (U210W) for Approval of the
Monterey Peninsula Water Supply Project
and Authorization to Recover All Present
and Future Costs in Rates.
Application 12-04-019
(Filed April 23, 2012)
ADMINISTRATIVE LAW JUDGES RULING UPDATING SCHEDULE

In order to allow the Draft Environmental Impact Report (DEIR) for the
Monterey Peninsula Water Supply Project (MPWSP) to incorporate more
complete data, the procedural schedule for Phase 1 of this proceeding is
modified. The primary changes are that the DEIR may be issued later than
previously scheduled, and that there will be a comment period on the DEIR of
60 days, rather the previous 45 days.
In addition, given the large number of parties in this proceeding, a ban on
ex parte communications with decisionmakers is effective immediately. Two
all-party meetings will be added to the revised schedule to allow for parties to
present their views to the Commissioners in a fair and controlled manner.
In a previous ruling issued by Administrative Law Judge Minkin on
August 21, 2014, parties Opening Briefs on legal and policy issues were due
60 days after issuance of the DEIR. To accommodate the revised comment
period on the DEIR, Opening Briefs are now due 75 days after issuance of the
DEIR, with Reply Briefs due 15 days after Opening Briefs.
143858682
-1-
A.12-04-019 GW2/sbf/avs
California-American Water (Cal-Am) has drilled a number of boreholes to

provide stratigraphic data that will be useful in performing hydrologic analysis
for the DEIR. In addition, Cal-Am is drilling a test well at the Cemex site. In the
process of drilling the test well, additional stratigraphic data will be obtained
that could be useful in the DEIRs hydrologic analysis.1 Incorporation and
analysis of this data, such as its use in modeling runs, is taking more time than
allowed for in the current schedule.
Our DEIR preparation process also needs to remain coordinated with the
DEIR being prepared by the Monterey Regional Water Pollution Control Agency
(MRWPCA) for their Groundwater Replenishment Project, and recent revisions
to the Groundwater Replenishment Project (such as the identification of new
source water) must also be analyzed and incorporated into the California Public
Utilities Commissions DEIR. In order to include this data and the related
analysis in the DEIR, more time is needed than is provided by the current
schedule. Because of the scope of the EIR, and its relationship to the
Groundwater Replenishment Project, we will be allowing for a 60-day, rather
than a 45-day, comment period on the DEIR.
Finally, it is important that the DEIR (and Final Environmental Impact
Report (FEIR)) provide adequate information and analysis of the possible effects
of the MPWSP on groundwater. The State Water Resources Control Board
(SWRCB) has indicated that this is a topic that is important for the Commission
to address, and has given us some guidance on how to do so. Commission staff
Because of the duration required for a pump test from the test well, it is unlikely that
significant pump test data from the test well will be available for the DEIR. In addition, the test
well is subject to litigation that could delay its drilling and operation.
-2-
A.12-04-019 GW2/sbf/avs
has consulted with SWRCB on this issue, and it appears that the potential value
of the additional data and analysis that hopefully will become available
outweighs the cost of the minor delay that is contemplated.
Accordingly, the schedule is modified to be as follows:
April 2015 DEIR issued for comment.
60 days from DEIR Comments on DEIR.
75 days from DEIR Opening Briefs filed and served.2
15 days from Opening Briefs Reply Briefs filed and served.3
July 2015 All-party meeting.
October 2015 FEIR published.
December 2015 Proposed Decision issued.
January 2016 All-party meeting.
February 2016 Proposed Decision on Commission Agenda.
The schedule for Phase 2 of this proceeding may also need to be modified,
but we will not modify it at this time. As the proceeding progresses, we will
evaluate the need to modify the Phase 2 schedule.
IT IS RULED that:
1. The schedule for this proceeding is modified as described above.
Briefs shall use a common outline. Cal-Am shall consult with parties to develop a
common outline, and shall serve the common outline no later than 15 days after
issuance of the DEIR.
2
Reply Briefs will follow the same common outline as the Opening Briefs.
-3-
A.12-04-019 GW2/sbf/avs
2. Ex parte communications with decisionmakers in this proceeding are

prohibited.
Dated January 23, 2015, at San Francisco, California.
/s/ GARY WEATHERFORD

Gary Weatherford
Administrative Law Judge
-4-
23 January 2015
UPDATED Schedule and Task List for MPWSP Post Settlement (REV 23 JAN 2015)
RED are changes from 7 Oct 13 Schedule.
CPUC Calendar Dates
Task
Comments on
Settlement Agreements
Due
Reply Comments on
Settlement Agreements
Due
Prehearing
Conference: Status of
Settlement Motion (if
any), of CEQA work
& other matters
Quarterly Check-in Call
with Settling Parties
Informational Hearing
on Settlement
Agreements
DEIR circulated for
Comment
Cal-Am to file and serve
a common outline for
legal and policy briefs,
after consulting with
parties
Comments on DEIR
Due
Common Outline
Opening Briefs filed and
served on legal and
policy issues
Reply Briefs filed and
served on legal and
policy issues
All party meeting
FEIR published
Proposed
Decision addressing
certification of FEIR and
issuance of CPCN
Target for Commission
Action on Phase I
015621\0002\11340073.1
1/30/15
Due Date
August 30, 2013
Responsible Party
Notes
Complete
September 13, 2013
Complete
September 16, 2013
Complete
October 2014
MPRWA
December 2-3, 2013
Complete
January 2015
MPRWA
Feb 28, 2014

April 2015
April 2015
all
MPRWA
April 29, 2014 15 days

after issuance of DEIR
all
April 14, 2014

60 days from DEIR
April 29, 2014
75 days from DEIR
all
May 14, 2014

15 days from Opening
Briefs
July 2015
June 17, 2014
October 2015
July 2014 Phase 1
December 2015
all
CPUC
CPUC
July 2015
MPRWA
August 2014
Complete
all
CPUC
Complete
23 January 2015
Task
All party meeting
Due Date
October 2015
Responsible Party
MPRWA
January 2016
MPRWACPUC
Proposed Decision on
Commission Agenda
February 2016
CPUC
Testimony, settlement
discussions, hearings,
decisions from
Settlement K
December 2014-July
2015 November 2015June 2016
Cal-Am, MRWPCA,
MPWMD, CPUC
015621\0002\11340073.1
1/30/15
Notes
See GWR Schedule
23 January 2015
GWR (Rev 5 JAN 2015)
Task
File Motion for
Bifurcation of the
GWR Decision
Board Actions to
Approve Revised
Governance Committee
Agreement
Executed Agreements
for GWR Source Water
and/or Declaratory
Relief
Due Date
August 2013
Responsible Party
MRWPCA
Notes
Complete and Granted
August/Sept 2013
MPWMD, MPRWA,
County, & Cal-Am
To be Completed in
October
MRWPCA
Meet & Confer in

Progress for Definitive
Agreements (March
2015)
MPWMD & MRWPCA
Delayed per Oct 2014

CPUC Adjustment of
Phase 2 Schedule
MRWPCA
Dept Public Health

Concept Project
Approval received
June 2014
????
Sept-Nov 2013
6 Party Joint MOU
Approved mid-Oct 2014
Draft WPA
Oct-Dec 2013
April 2015
Obtain Representations
from DPH re Use of
Extracted GWR Water
Oct-Dec 2013
June 2014
Obtain Representations
from RWQCB re Use of
Extracted GWR Water
Oct-Dec 2013
June 2014
Storage Agreement
with Seaside Basin
Watermaster
Oct-Dec 2013
April 2015
GWR Basis of Design

Complete with At Least
10% Design
Oct-Dec 2013
October 2014
GWR Financing Plan

Sufficient for SRF
Funding
Oct-Dec 2013
May 2015
Agreement on Terms of
WPA
Perform Revenue
Requirement Analysis
Including Any Debt
Equivalency Effect
Perform Assessment of
GWR Positive and
Negative Externalities
for Any Premium
Showing
DEIR Circulated
015621\0002\11340073.1
1/30/15
MRWPCA
MRWPCA & MPWMD
MRWPCA
complete
MRWPCA & MPWMD
Jan 2014
June 2015
Cal-Am, MRWPCA,
&MPWMD
MRWPCA & MPWMD

Jan-Mar 2014
June 2015
Jan-Mar 2014
June 2015
MRWPCA & MPWMD
July 2014 March 2015
MRWPCA
Coord w/Cal Am DEIR
23 January 2015
Dilution Water
Requirements
Project Approved and
FEIR
July-October 2014
Not Required
October 2014
September 2015
MRWPCA
CPUC Testimony
Phase Commences
November 2015
Cal-Am, MRWPCA,
MPWMD, CPUC
CPUC Evidentiary
Hearings
January 2016
Cal-Am, MRWPCA,
MPWMD, CPUC
All Permits for GWR

Construction Obtained
Target for CPUC Action

on Phase 2 Decision
015621\0002\11340073.1
1/30/15
MRWPCA
MRWPCA
January 2015
February 2016
June 2016
Cal-Am, MRWPCA,
MPWMD, CPUC
For Major Permits
23 January 2015
Source Wells (Rev 5 JAN 2015)
Task
Drill Exploratory
Boreholes
Commence
Hydrogeologic Study
and Technical Report
Permits for CEMEX
Site Test Well
Due Date
Sept. 2013 February
2014
August 2013
Responsible Party
Cal-Am
Notes
Complete
Cal-Am / SVWC
Underway
January 2014 Nov 12,

2014
Cal-Am
Coastal Commission
Approved CDP.
CEQA lawsuit pending
Drill CEMEX Site Test

Well
February 2014 NovDec

14-FebMar 15 subject
to Coastal Commission
Cal-Am
Results of Test Well

Operation Obtained
Hydrogeologic Study
and Technical Report
Complete and Results
Filed with CPUC
Necessary Agreements
from CEMEX for
Source Wells
All Necessary Permits
for Construction of
Source Wells Obtained
February 2014 2015

February 2016 2017
Cal-Am
Delayed -see above
Cal-Am
Delayed -see above
015621\0002\11340073.1
1/30/15
June 2015
?
Nov. 2015, or sooner
?Nov 2016, or sooner
Cal-Am
Nov. 2015, or sooner

?Nov 2016 or sooner
Cal-Am
23 January 2015
Securitization (Rev 5 JAN 2015)
Initial Revision and

Redline of Legislation
Early September 2013
MPWMD
Complete
Obtain Cal-Am Input on

Draft Legislation
Late September 2013
MPWMD, MPRWA, &

Cal-Am
Complete
Retain Necessary
Additional
Financial/Legal
Consultants (Charles
Atkins)
October 2013
MPWMD
In ProgressComplete
Revise Financial
Comparison of
Securitization v. Cal-Am
Financing
October 2013
MPWMD & Cal-Am
In ProgressOn-Going
Meeting with
Community/Interest
Groups and Cities
October-December
2013
MPWMD & MPRWA
In Progress Complete
Further Revise
Legislation as
Necessary
October-November
2013
Draft Summary of
Legislation
December 2013
Introduce Legislation
January 2014
Lobbying Effort
February-April 2014
Legislation Adopted
Governor Signed
April-May 2014 Sept 19,

2014
Initial Draft of Motion for

Financing Order
April 2014
MPWMD
Complete
MPWMD, MPRWA, &
Cal-Am
015621\0002\11340073.1
1/30/15
April 2014
March 2015
Passed Senate
Unanimously; Referred
to Assembly Complete
MPWMD
March 2015
Perform Analysis to
Demonstrate Annual
Customer Benefits
Exceed 1.0% of Total
Annual Revenue
Requirement
Complete
MPWMD & Cal-Am
23 January 2015
Motion Application for
Financing Order
May 2014
MPWMD
May 2015
Obtain CPUC Financing
Order
August 2014 November

2015
Preliminary Discussions
with Bond Underwriters
September-December
2014
MPWMD
Drafting of
documentation for bond
requestsDocuments
September
2014January-April 2015
MPWMD & Cal-Am
Preliminary Discussions
with Rating Agencies
February-April 2015
MPWMD
Issuance of Public Bond

Financing
End of 2015 Q2-Q3

2016
MPWMD
015621\0002\11340073.1
1/30/15
Order on securitization
financing on satisfaction
of remaining criteria
from Settlement K
Complete??

Agenda Report
FROM:

Item No: 6.
SUBJECT: Approve Invitation to New Interim General Manager of the

Marina Coast Water District to Serve As A Member of The
Water Authority Technical Advisory Committee (TAC)
RECOMMENDATION:
It is recommended that the Water Authority Board extend an invitation to
Bill Koker, the new interim general manager of the Marina Coast Water
District, to serve as a member of the Water Authority TAC.
DISCUSSION:
At Exhibit A is the staff report provided to the Water Authority on Aug 14,
2014, recommending that Brian Lee be invited to join the TAC. As
discussed in the report, staff believes that participation on the TAC can only
improve communication between Marina and the Peninsula cities, and
could help us find "win-win" solutions to our regional water problems.
Brian Lee, the Interim General Manager last year, accepted the invitation
and served as a member until his departure from MCWD in January 2015.
The TAC discussed inviting the current interim General Manager, Bill
Koker, to fill the MCWD seat on the TAC. Following discussion and public
input, the TAC voted 5-2 to recommend to the Water Authority that we
extend the invitation to Bill Koker.
EXHIBITS:
A- Staff report provided to the Water Authority on Aug 14, 2014
06/12

Agenda Report
FROM:
Date: August 14, 2014

Item No: 7.
SUBJECT: Receive report, discuss, and vote on staff proposal to add the General
Manager, or District Engineer, of the Marina Coast Water District
(MCWD) as a member of the Authority Technical Advisory Committee
(TAC) and to add a MCWD hydrologist to the Monterey Peninsula Water
Supply Project (MPWSP) Hydrogeologic Working Group.
RECOMMENDATION:
Staff recommends that the Water Authority invite Marina Coast Water District (MCWD)
participation on the Technical Advisory Committee (TAC) and consider if it should make
a recommendation to the settling parties to add a MCWD hydrologist to the test slant
well Hydrogeologic Working Group (HWG).
DISCUSSION:
During January and July 2014, the City of Marina has been heavily involved in the
permitting of the bore hole construction and in consideration of a mitigated negative
declaration (MND) and coastal development permit (DP) for Cal Am's test slant well at
the CEMEX site.
During public hearings, the Marina Coast Water District (MCWD) raised a number of
concerns that suggest a lack of communication between MCWD and Cal Am, and with
the Water Authority as well. This situation has not only delayed progress on the desal
plant approval and construction, but has raised serious concerns on the part of the
MCWD and City of Marina that its water needs may be placed at risk as a result of the
desal plant slant wells.
To initiate a dialog on these issues, several informal MCWD/MPRWA management
level meetings were held during the week of August 4. Amongst other things, it was
concluded that participation by MCWD representatives on the TAC, and possibly on the
HWG, would provide early MCWD input on technical issues related to the Desal facility
and the slant wells, facilitate MCWD environmental review of the MPWSP EIR, insure
the concerns of Marina residents get timely consideration, and improve communication
between and amongst MCWD, Cal Am, and the Water Authority.
It should be noted that the TAC already has a member from the agricultural community
to articulate ag interests prior to Water Authority decisions and deliberations. Thus, the
Executive Director recommends the Authority extend an invitation to the MCWD District
Engineer (Interim General Manager) to join the TAC for the same purpose.
06/12

Agenda Report
FROM:

Item No: 7.
SUBJECT: Receive Report on Monthly Reports to the Authority

Board on the Activities of the Public Outreach
Consultant and Discussions of Priorities
RECOMMENDATION:
Staff recommends the Water Authority receive the first of monthly reports
on the activities of Environmental Relations PR, the Water Authority Public
Outreach consultant.
DISCUSSION:
At its meeting on April 25, 2013, the Water Authority approved a Public
Outreach budget of $49,000 of which $20,000 was budgeted for Speakers
Bureau Support. Following an RFP process in September 2013, the Water
Authority awarded a contract to Environmental Relations PR for Public
Outreach Services for the FY 2013-2014 at a price not-to-exceed $15,000.
At its meeting of December 11, the Water Authority approved a extension
of the contract for FY 2014-2015 at a price not-to-exceed $10,000. A copy
of the current Scope of Work is at Exhibit A.
As a condition of contract approval this year, staff and the consultant were
directed to meet with Vice President Kampe to establish clearer objectives
and to document accomplishments. At a meeting on Jan 16, 2015, it was
agreed that the Authority should receive a monthly report on outreach
activities and priorities.
06/12
Accordingly, Ashley Belany from Environmental Relations PR will discuss

the following activities:
1. WEB Site Update
2. Draft Slant Well newspaper article
3. Coordination meeting with WA Vice-President Kampe
4. Update Public Information handout
5. Updated Facebook page and posting of news
FISCAL IMPACT:
At fiscal year end, the Authority had expended quite a bit less than $49,000
in FY 2013-2014 for Public Outreach, and actual contract expenditures for
the Public Outreach Services contract were substantially less than $15,000
as well. Staff expects to further reduce expenditures under the current notto-exceed $10,000 consultant contract.
ATTACHMENTS:
A - Public Outreach Scope of Work for FY 14-15
Public Outreach Services

Scope of Work: October 2014-2015
A.
Update master plan for Public Outreach and Information
B.
Work with Board members and staff on identification of issues & Message
Development
C.
Establish and maintain contacts with the media
D.
Propose and prepare periodic op-eds as needed
E.
Maintain and update all presentation materials for use by staff & Board members
F.
Develop and update audience specific handout materials
G.
Update, expand Frequently Asked Questions for print and on website
H.
Develop social media, including feedback opportunities
I.
Maintain and update Water Authority website
J.
Monitor Water Authority meetings and proceedings
K.
Coordinate all public outreach & messaging with MPWMD and MRWPCA via the
MPWMD Public Outreach Committee

Agenda Report
FROM:

Item No: 8.
SUBJECT: Designation of Alternate Water Authority Representative On the

Governance Committee
RECOMMENDATION:
Staff recommends that the Authority designate an alternate representative
to the Governance Committee (GC).
DISCUSSION:
Mayor Burnett serves as the Water Authority representative to the GC. With
the departure of Chuck Della Sala from the Water Authority Board, the
position of alternate Authority representative is vacant. The Governance
Committee has requested the Board designate a replacement by name or
position.
ATTACHMENTS:
None
06/12

Agenda Report
FROM:

Item No: 9.
SUBJECT: Receive Update, Discuss, And Provide Direction On Water

Authority Participation In Obtaining A Cease and Desist Order
(CDO) Extension
RECOMMENDATION:
It is recommended that the Water Authority Board receive and discuss an
update on efforts by the settling parties, including California American
Water Co. (Cal Am), the Monterey Peninsula Water Management District
(MPWMD), and the Monterey Peninsula Regional Water Authority
(MPRWA) to obtain an extension of the CDO 2009-60 deadline date of
December 31, 2016.
DISCUSSION:
Due to a variety of reasons, many beyond the control of Cal Am, as well as
the community, the Monterey Peninsula Water Supply Project (MPWSP)
has been delayed to the point where it is virtually impossible for Cal Am to
meet the State Water Resources Control Board CDO 2009-60 deadline of
December 31, 2016.
The public has become increasing concerned as the CDO date approaches
and has expressed a desire to be better informed as to how Cal Am and
public officials are planning to deal with the problem. Accordingly, staff
recommends this issue be agendized for updates at all future meetings.
As discussed in previous Water Authority meetings, representatives of the
settling parties have been in discussion with the California State Water
Resources Control Board (SWRCB) staff in an effort to develop proposals
acceptable enough to secure staff concurrence with a formal request for a
CDO extension that will be made to the State Board in 2015.
06/12
Last year, the Authority Board selected Mayor Burnett to represent the
MPRWA at discussions with the SWRCB and other settling parties.
Of particular importance during these discussions is that the Water
Authority and other public officials are opposed to penalties or other
measures mandated by the SWRCB that result in unfair or punitive impacts
on ratepayers who have exceeded conservation goals and who have no
responsibility for the delay.
While the potential terms of an extension to any CDO remain under
discussion, key principles that might be included in an agreement to extend
the CDO include the following:
A four-year extension of the CDO deadline from December 31, 2016
to December 31, 2020.
A new reduction schedule in regular increments during the extension,
but suspension of the prescribed reductions if MPWSP milestones
are satisfied.
Authority for the SWRCB staff to suspend a reduction corresponding
to a missed milestone if staff determines that the milestone was
missed due to circumstances beyond the control of Cal-Am,
MPWMD, and the Water Authority.
Discussions continue under a tight timeline, since, for a variety of reasons,
we believe we need to have an agreement in draft early in 2015. In any
event, it is the intent of the Board to discuss any draft agreement at a future
Water Authority meeting and to gather public input.
Attachments:
Draft Proposal to Amend SWRCB Order (Carmel River CDO)
Proposed Modifications Table - Best Case Scenario
Proposed Modifications Table - Worst Case Scenario
DRAFT 1/14/2015 2:10 PM
Proposal to Amend
SWRCB Order WR 2009-0060 (Carmel River CDO)
A. Good Cause Exists to Modify WRO 2009-0060: California American Water (CAW) and other
Parties have diligently and aggressively implemented measures to comply with WRO 2009-0060
(CDO). CAW and other Parties have: (1) implemented efficiency and conservation measures
to control and reduce customer demand and system losses within CAWs Monterey district; (2)
diligently pursued the Monterey Peninsula Water Supply Project (MPWSP), which will supply
the replacement water supply necessary to eliminate all unauthorized diversions from the
Carmel River; (3) developed, permitted and implemented projects to replace and supplement
Carmel River diversions subject to the CDO 1; and (4) permitted and implemented measures to
enhance and improve conditions for fish and wildlife resources in the Carmel River watershed,
and to minimize or avoid impacts to fish and wildlife that could result from extension of WRO
2009-0060 timelines. In consideration of these activities and the further commitments
described below, CAW and other Parties support the State Water Resources Control Boards
(SWRCBs) finding of good cause to modify the CDO as requested.
B. Modifications to WRO 2009-0060: CAW is currently meeting or has met all of the conditions of
the CDO, but factors beyond CAWs control make it unlikely that several future conditions can
be met. Therefore, in coordination with other Parties, CAW will submit a request for the
following modifications to the CDO:
1. A four-year extension of the deadline set forth in ordering Condition no. 1, from December
31, 2016 to December 31, 2020.
2. Add a process to Condition no. 1 delegating to the Executive Director, the Chief Deputy
Director and the Deputy Director of the Division of Water Rights, authority to
administratively extend the time for compliance with Condition no. 1, for good cause
shown.
3. Amend Condition no 3.a.(2) to state that, effective Water Year 2015-2016, CAW shall further
reduce unlawful diversions from the river by an additional 1,000 acre feet annually (afa)
from the existing cumulative reduction level in place under Table 1 of the CDO. See
Attachment 1.
4. Replace Attachment 1 to the CDO with Attachment 1 to this Proposal to Amend.
These projects include: Seaside Middle School ASR Well #3 (completed up to an additional 500 acre feet per
annum); Acquisition of additional rights to legally appropriate Carmel River water via Permit 21330 (up to 1488
acre feet per annum); Seaside Middle School ASR Well #4 (in process, up to 500 acre feet per annum).
DRAFT 1/14/2015 2:10 PM

5. Add a Condition no. 3.a.(2)(i) stating that the reduced diversion level set forth in amended
Condition no 3.a.(2) will be maintained, i.e., no additional annual reduction in diversions will
be required under the CDO, if CAW meets the following milestones as they accrue:
a.
b.
c.
d.
e.
Milestone
Construction of downstream fish passage facilities at
the Los Padres Dam 2
Commencement of construction activity for the CAW
desalination components 3 of the MPWSP
Construction activity for the CAW desalination
components of the MPWSP is substantially on schedule
Construction activity for the CAW desalination
components of the MPWSP is substantially on schedule
Substantial completion of the CAW desalination
components of the MPWSP
Deadline
September 30, 2016
September 30, 2017
September 30, 2018
September 30, 2019
September 30, 2020
6. Add a Condition no. 3.a.(2)(ii) stating that, should CAW fail to meet any milestone described
in new Condition no. 3.a.(2)(i) by its corresponding deadline, the reduced diversion level set
forth in amended Condition no 3.a.(2) shall be further reduced by 1,000 afa. Any further
reduction(s) required under this new Condition no. 3.a.(2)(ii) shall remain in force until the
corresponding milestone is achieved. If a milestone is not achieved by its original deadline,
but is subsequently achieved, the further reduction required in the water year in which the
milestone is achieved shall be prorated and assessed at the end of that water year, and shall
no longer be required for subsequent water years. 4
7. Add a Condition no. 3.a.(2)(iii) stating that, if CAW fails to meet any milestone described in
Condition no. 3.a.(2)(i), the Executive Director, the Chief Deputy Director and/or the Deputy
Director of the Division of Water Rights may suspend the corresponding further reduction
described in new Condition no. 3.a.(2)(ii) if CAW, the Monterey Peninsula Regional Water
Authority (MPRWA) and the Monterey Peninsula Water Management District
(MPWMD):
a. Make a written joint request, no later than 60 days after the associated milestone
deadline; and
CAW owns and operates Los Padres Dam at approximately River Mile 24.8 on the Carmel River. CAW has made
various improvements to accommodate upstream fish passage over Los Padres Dam. Currently, when the lake
elevation falls below the dams spillway crest, no downstream fish passage corridor exists. To improve
downstream fish passage opportunity, CAW and various stakeholders have agreed that the following downstream
fish passage facilities should be constructed: behavioral guidance system; floating weir surface collector; fish
bypass conduit; bypass access portals; and bypass outfall.
3
The CAW desalination components of the MPWSP include source water production wells, the desalination plant
and a brine disposal system.
4
For example, if CAW failed to complete construction of downstream fish passage facilities at the Los Padres Dam
by September 30, 2016, but completed these facilities by June, 2017, 75% (9/12ths) of the corresponding 1,000 afa
reduction (i.e., 750 afa) would be required as a reduction for water year 2016-2017. No reduction based on missing
this milestone would be required for water year 2017-2018 or any future water years.
DRAFT 1/14/2015 2:10 PM

b. Provide information to the Executive Director demonstrating that CAW has exercised all
reasonable care, and the MPRWA and MPWMD have provided all reasonable
cooperation and support, to meet the milestone, and the milestone deadline was
missed due to circumstances beyond the control of CAW, MPRWA and MPWMD.
The Executive Director, the Chief Deputy Director and/or the Deputy Director of the Division
of Water Rights shall make a determination on any request submitted under this new
Condition 3.a.(2)(iii) no later than 60 days after receiving a written joint request as described
above. CAW, MPRWA and/or MPWMD shall have the right to request the full SWRCB to
reconsider any determination by the Executive Director, the Chief Deputy Director and/or
the Deputy Director of the Division of Water Rights pursuant to this new Condition
3.a.(2)(iii).
8. Amend Condition 3.a.(5) to state: Water produced from new sources developed pursuant
to Condition 5 of this order shall be subtracted from the base (currently includes incorrect
cross reference to Condition no. 4 rather than Condition no. 5).
9. Amend the last sentence of Condition no. 3.a.(6) to state as follows: After December 31,
2020, CAW shall divert water from the river to supply the holders of PBCs water
entitlement only from CAWs legal water rights.
10. Add a Condition 3.a.(7) stating that, should CAW be able to identify suitable and willing
transacting parties, CAW will use reasonable additional efforts to acquire supplemental
water rights at acceptable costs, and/or will pursue other water acquisition and water right
changes in order to increase flows in the Carmel River, and/or to decrease CAWs
unauthorized diversions. Such acquisitions or water right changes may include leases and
purchases of water rights along the Carmel River on a temporary or permanent basis,
and/or water right change approvals or permits (permanent or temporary) from the SWRCB
to increase opportunities to increase lawful diversions in order to reduce unauthorized
diversions during periods of lower flow on the Carmel River. CAW shall quantify
supplemental water supplies and increased flows developed pursuant to this Condition and
such supplemental water and/or increased flows will be credited towards any further
reduction required under new Condition no. 3.a.(2)(ii) (excepting supplies developed to
satisfy Conditions 5 and 3.a.(5)).
11. Amend Condition no. 3.c. to add the following sentence after the last sentence: Any ASR
water stored in and recovered from the Seaside Groundwater Basin in excess of the (a)
Estimated ASR Project Operational Yield and (b) the Estimated Small Project Output, as set
forth in Table 1, shall be credited towards any further reduction required under new
Condition no. 3.a.(2)(ii). In addition, Condition no. 3.c. should be modified to extend the
deadline for written submissions to recover ASR water to not later than May 31 of each
year, to allow CAW and the fisheries agencies appropriate time to consider information
made available at agency meetings that occur after May 1 of each year.
C. Requests for Assistance by SWRCB. Additionally, CAW and other Parties request that the
SWRCB commit to use reasonable efforts to assist with the following items:
DRAFT 1/14/2015 2:10 PM

1. Upon issuances of a Certificate of Public Convenience and Necessity (CPCN) from the
CPUC, provision of support for CAWs request(s) to the California Coastal Commission and
other agencies with permitting jurisdiction for expedited permit issuance for the Monterey
Pipeline and other ASR related improvements, which will facilitate increased ASR diversion
during high flows and other improved operations that will increase the amount of water in
the Carmel River during dry months;
2. Provision of support in connection with an application by the MPWMD and the Monterey
Regional Water Pollution Control Authority (MRWPCA) to place the groundwater
replenishment (GWR) component of the MPWSP on the State Revolving Fund financing
priority list;
3. Provision of support in connection with a request that the SWRCB Division of Financial
Assistance award one percent (1.000%), thirty-year loan proceeds from the program
announced March 19, 2014 for water recycling projects for the MPWMD/MRWPCA
groundwater replenishment project, provided an application is submitted by December 2,
2015;
4. Provision of support and prioritization in connection with the MPWMD/MRWPCA GWR
receipt of grant funds pursuant to Chapter 9 of AB 1471 (2014 Proposition 1); and
5. Provision of support , including expedited review, in connection with water rights
Application 32263 of Monterey County Water Resources Agency, and any amendments
thereto, in order to facilitate the MPWMD/MRWPCA groundwater replenishment project
D. In consideration of the foregoing, CAW and other Parties commit to implement, or have
implemented, the following measures
1. Efficiency and Conservation Measures - CAW and other Parties have implemented the
following measures to control and reduce water demand and system losses within CAWs
service area:
a. CAW has implemented, and will continue during the CDO period, the current
moratorium on new service connections within its Monterey district (see Revised
C.P.U.C. SHEET NO.6509-W);
b. CAW and the MPWMD will continue customer water conservation and efficiency
programs, including:
i. programs targeting high use commercial customers such as laundries, hotels and car
washes;
ii. programs targeting reductions in outdoor irrigation including replacement of
irrigated turf with drought tolerant landscaping or artificial turf, incentives for
installation of weather-based irrigation controllers, and mandatory installation of
rain sensors on irrigation systems 5; and
5
MPWMD Regulation XIV.
DRAFT 1/14/2015 2:10 PM

iii. mandatory water efficiency requirements for all non-residential customers and
certain residential customers. 6
c. CAW will continue programs to detect and reduce non-revenue system losses, including:
i. replacement of older water mains and service lines in areas shown to be more leak
prone;
ii. water meter replacement;
iii. active leak detection;
iv. technological solutions to manage lost water; and
v. operational fixes such as pressure reduction.
d. CAW will submit an application to modify revised Rule No. 14.1.1, Water Conservation
and Rationing Plan for the Monterey District to the California Public Utilities Commission
(CPUC) for approval 7.
2. Alternative and Supplemental Water Supplies CAW and other Parties have developed
and/or are implementing projects to provide replacement and supplemental water supplies
to CAWs Carmel River water supplies subject to the CDO:
a. CAW has submitted an application to the CPUC for approval of the MPWSP, which will
allow CAW to eliminate all unauthorized diversions from the Carmel River in full
compliance with the CDO. In September 2014 Governor Jerry Brown signed SB 936,
authored by Senators Bill Monning and Anthony Cannella, with Assemblymen Mark
Stone and Luis Alejo. This legislation will allow the MPWSP to utilize partial public
financing if it is available at a lower rate than conventional, private project financing.
The MPWSP includes the following components:
i.
Desalination Plant and associated source wells and conveyance system, which will
produce up to 9,752 acre feet per annum for system demand;
ii.
ASR of water lawfully diverted from the Carmel River and stored in the Seaside
Groundwater Basin, which may allow for an annual average storage of 1,300 acre
feet; and
MPWMD Regulation XIV.

Rule 14.1.1 was reviewed by the CPUC in its Decision Authorizing Modifications to the Rationing Plan in Rule
14.1 (D.09-07-023) of 2007. Rule 14.1.1 has been implemented by CAW in coordination with MPWMD, though its
Ordinance 137. CAW and MPWMD are developing further refinements to this plan.
7
DRAFT 1/14/2015 2:10 PM

iii.
GWR, which is a project that could produce up to 3,500 acre feet per annum.
CAW is pursuing GWR as an option in conjunction with, and with significant effort
on funding and other aspects of the project by, MPWMD and MRWPCA.
b. CAW has also pursued various smaller projects to make use of lawful diversions from
the Carmel River, including pursuing a permit for diversion under Table 13 of SWRCB D.
1632 (July 6, 1995), and supporting and facilitating changes to other water rights to
permit beneficial uses within CAWs service area; and
c. CAW and other Parties have supported additional water development projects within
the CAW service area, including:
i.
Efforts by Pacific Grove to recycle and reuse municipal wastewater on city-owned

golf course and cemetery; and
ii.
Efforts by Pacific Grove to capture and use storm water for non-potable uses.
3. Fish and Wildlife Protection and Enhancement Measures CAW and other Parties have
developed and implemented measures to protect and enhance fish and wildlife resources in
the Carmel River watershed, and to avoid or minimize effects to fish and wildlife associated
with extension of the CDO deadline:
a. Pursuant to a 2009 agreement between CAW, the National Oceanic and Atmospheric
Administration (NOAA) and the California Department of Fish and Wildlife (CDFW),
as amended in 2014, CAW made a one-time payment of $3.5MM in 2009, annual
payments of $1.1MM per year for 2010 through 2013, and has committed to make
annual payments of $1.1MM per year through 2016 to the California Coastal
Conservancy (CCC) for environmental protection and enhancement projects in the
Carmel River watershed;
b. Provided that NOAA and CAW mutually agree to terms for extending the 2009
agreement described in Paragraph 3.a., above, CAW is committed to making additional
annual payments of $1.1MM, to be pro-rated for any partial years until unpermitted
diversions of water from the Carmel River are replaced by legal sources of water, for use
on projects during the period of the requested extension of the CDO deadline;
i.
Funding and administrative efforts will focus, with the support of CAW and other
Parties, on projects that can be implemented during the extension period to
mitigate potential effects of the extension;
ii.
To the extent MPWMD receives funding to carry out or implement mitigation

measures that arise out of the 2009 agreement described in 3.a. above, MPWMD
will use best efforts, including by fully cooperating with NOAA, CDFW, CCC, and
the Carmel River Steelhead Association, to identify, develop, then implement
projects that will convey mitigation benefits for the Carmel River before
December 31, 2020.
DRAFT 1/14/2015 2:10 PM

c. CAW has permitted, initiated construction and is currently over half way done with
construction activities to reroute the Carmel River and remove the San Clemente Dam.
Status of the various construction activities include complete excavation of the reroute
cut, nearly complete installation of the diversion dike and the moving of over one
million cubic yards of rock and sediment;
d. Subject to final approval from CDFW, NOAA, and any other agencies with permitting
jurisdiction, CAW is committed to implementing up to $2.5MM in other projects on the
Carmel River to improve fish passage and habitat. These include, in order of priority and
estimated costs: additional spawning gravel injections below San Clemente Dam using
excess gravel from the San Clemente Dam removal project or from Los Padres reservoir
should there be an insufficient quantity or type at San Clemente ($0.2MM);
improvements to the existing upstream fish passage ladder and trap at Los Padres Dam
($0.2MM); installation of a fish screen at the lower outlet pipe on Los Padres Dam
($0.8MM); a pit tagging program ($0.8MM); and a through-reservoir survival study for
Los Padres Reservoir ($0.5MM). Should the higher priority projects exceed the
estimated amounts, funding will be pulled from the lower priority projects until the
entire $2.5MM is utilized. Additionally, the estimated cost from the above projects may
be used to supplement other related projects occurring on the Carmel River (i.e., pit
tagging work being contemplated by MPWMD).
e. In July 2013 CAW requested the CPUCs approval to fund a study to determine the
ultimate disposition of the Los Padres Dam and Carmel River;
1. If the CPUC approves expenditure of these funds before the close of the second
quarter of 2015, CAW expects to:
2. Fund MPWMD to continue independently studying the fate of the Los Padres
Dam. CAW will contribute up to $1.0MM minus CAW staff time of $24K per
year to assist MPWMD. Studies will include evaluating upstream steelhead
passage at Los Padres Dam, whether the public trust resources of the Carmel
River will be adversely affected or enhanced by removal or alteration of Los
Padres Dam, what options exist to maintain physical existing surface storage in
Los Padres Reservoir, and analysis of the potential geomorphic effects of a
resumption or increase of the natural flow of sediment;
3. Work with MPWMD to Develop the scope of work and award the feasibility
study to a qualified environmental consultant by the close of the third quarter
of 2015; and
4. Complete the study during 2018.
f.
CAW will continue to fund mitigation measures pursuant to MPWMDs current

mitigation program through December 31, 2020.
ATTACHMENT 1
TABLE 1
Water Year
(Oct - Sep)
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
PROJECTED REDUCTIONS IN ILLEGAL DIVERSIONS FROM THE CARMEL RIVER (AF)

Base
Mandatory
Potential
Estimated Estimated Estimated Estimated Total to
Total
Estimated
Amount Cumulative Additional ASR Project Sand City
Small
Monterey
Base
Estimated Amount
Annual Rampdown if Operational
Desal
Amount Diverted
Project Peninsula Amount
Water
Reduction Condition no.
Yield
Plant
Diverted w/o Valid
Output
3.a.(2)(i)
Supply
from
Basis of
Milestone(s)
Project
Carmel
Right
Not Met
Output
River
10,978
10,978
10,978
10,978
10,978
10,978
10,978
10,978
10,978
10,978
10,978
10,978
10,978
549
549
670
791
912
1,033
2,033
2,033
2,033
2,033
2,033
7,227
n/a
0
0
0
0
0
0
0
1,000
1,000
1,000
1,000
1,000
n/a
145
145
145
145
145
145
145
145
145
145
145
145
145
75
290
280
270
260
250
240
230
230
230
230
230
230
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,688
10,753
769
984
1,095
1,206
1,317
1,428
2,418
2,408
2,408
2,408
2,408
7,602
7,602
10,209
9,994
9,883
9,772
9,661
9,550
8,560
8,570
8,570
8,570
8,570
4,675
3376
6,833
6,618
6,507
6,396
6,285
6,174
5,184
5,194
5,194
5,194
5,194
1,299
0
California American Water

MONTEREY DISTRICT
Proposed Modifications to Table 1 including Seaside Basin Limits
BEST CASE - MILESTONES ACHIEVED
Current CDO Limits and Seaside Basin Limits
Seaside Basin
Est. Sand City
13000
Est. ASR
Carmel River
2,669
WY 2013/2014
Production
10,793 AF
2,251
11000
260
145
2,251
2,251
250
145
1,820
1,820
1,820
230
145
230
145
230
145
9000
Acre Feet
240
145
230
145
Milestones
WATER PROJECT ON-LINE
7000
9661
9550
8560
8570
8570
8570
8570
5000
1,494
230
145
4675
3000
13-14
14-15
15-16
16-17
17-18
Water Year
18-19
19-20
20-21
California American Water

MONTEREY DISTRICT
Proposed Modifications to Table 1 including Seaside Basin Limits
WORST CASE - NO MILESTONES ACHIEVED
Current CDO Limits and Seaside Basin Limits
Seaside Basin
Est. Sand City
13000
Est. ASR
Carmel River
2,669
WY 2013/2014
Production
10,793 AF
2,251
11000
260
145
2,251
250
145
Milestones
2,251
9000
Acre Feet
240
145
1,820
230
145
7000
230
145
9661
1,820
9550
230
145
8560
1,820
7570
5000
230
145
6570
1,494
5570
4570
230
145
3,425
3000
13-14
14-15
15-16
16-17
17-18
Water Year
18-19
19-20
20-21

Agenda Report
FROM:

Item No: 10.
SUBJECT: Receive And Discuss The Current "Summary" Monterey Peninsula Water
Supply Project Schedule Including The Status Of The Test Slant Well
Construction And An Evaluation Of The Technical, Economic, And Legal
Feasibility Of Slant Wells After Data Is Available From The Test Well
RECOMMENDATION:
It is recommended that the Water Authority Board receive a report from Cal Am on the
status of the construction of the test slant well and an evaluation of how slant well
feasibility will be determined after test well data has become available. In addition to
technical viability, feasibility will have to consider economic, legal, and possibly political
issues as well.
DISCUSSION:
At its meeting of November 7, 2014, the California Coastal Commission issued a
Coastal Development Permit (CDP) for Cal Am's test slant well at the CEMEX site. In
addition, Cal Am and CEMEX have reached agreement for access to the site.
To date, legal efforts by the Marina Coast Water District (MCWD) and the Ag Land Trust
to stop the construction and operation of the test slant well have been unsuccessful.
The test slant well has now been drilled to its design depth and Cal Am expects to begin
pumping by March 1 to provide the data needed by the Hydrogeologic Working Group.
Cal Am will provide an update on the status of the slant test well including an update of
the "Summary Permits and Approvals" schedule. Cal Am will also discuss how the issue
of feasibility for installation and operation of production wells will be addressed.
ATTACHMENTS:
Current Cal Am "Summary" Schedule for Permits and Approvals
06/12
MPWSP Anticipated
Schedule
MPWSP
Anticipated
Schedule
2015
2014
S O N D
2016
2017
J F M A M J J A S O N D J F M A M J J A S O N D
EIR / CPCN / CDP

!
DEIR
Jan 2015
FEIR
July 2015
PG LWP
CPUC
EIR/CPCN
Approval
Q3 2015
2018
2019
J F M A M J J A S O N DJ F M A M J J A S O N D
CCC
Approval
Feb-Mar. 2016
J F M A
SWRCB Current
CDO Deadline
Dec. 31, 2016
Start-up
Construction
FEIR
GWR
CCC
Permit
Application
Jan 2015
RFQ/RFP &
Approve
DB Contractor
March to May
Nov. 2015
RWQCB
Application
Aug. 2015
Start-up
Window
Construction & Commissioning
Draft Water
Purchase
Agreement
Q2 2015
Testimony CPUC Evid.

Nov-Dec 2015 Hearings &
Briefings
Jan-Feb 2016
Test Well
Permitting
Q3 to Q4
2017
CPUC Proposed
Decision &
Action
May-June 2016
Production Wells
Slant Wells
Phase 1
Construction Test Well Operation

Snowy Plover Nesting Season
Limited Construction Activity

Pipelines / Tanks / BPS
Slant Wells
Phase 3
(if needed)
Design, Land, Permitting & Contracts

Start Construction
04-2016
Desal Plant
Design & Permitting
60%
09-2014
Slant Wells
Phase 2
Start-up Window
Partial or Full
90%
03-2016
Final
06-2016
Start Construction
07-2016
Note: The schedule is based on the information and assumptions available at time of update and is accurate to +/-6 months.
Mid 2018
Q1 2019
Updated January 8, 2015

Agenda Report
FROM:

Item No: 11.
SUBJECT: Receive Year End Budget Review for Calendar Year 2014-15, Discuss,
and Provide Guidance To Staff.
RECOMMENDATION:
It is recommended that the MPRWA receive an update of the budget for FY 2014-2015
as of the end of calendar year 2014 and provide direction to staff.
DISCUSSION:
At its meeting of April 10, 2014, the Water Authority adopted a budget of $458,680 for
Fiscal Year 2014-2015. As of December 31, 2014, the Authority has expended or
obligated $128,544 (28%) of the budget funds.
The contribution from each City and Monterey County was calculated based upon a
"fair share" of the budget. The actual invoice to each entity was reduced by its fair-share
credit from a $121,000 surplus in FY 2013-2014. The surplus resulted from lower than
expected Special Counsel costs due to delays at the CPUC in the settlement
proceedings.
Special Counsel continues as a major budget item, but we are well within the budget as
of December 31, 2014, again largely due to additional delays in the CPUC proceedings.
In addition, the Authority has continued to be able to conduct business at one (1) Water
Authority meeting and one (1) TAC meeting per month. That reduced schedule
substantially lowers administrative costs.
As of December 31, 2014, staff projects that we should have savings in the Directors
pay, Special Counsel expenses, and Contract Services totaling about $100,000. Since
this projected savings is dependent upon future developments, including whether the
County will, in fact, pay its $153,000 fair share, staff recommends we refrain from
crediting funds back to the agencies until the end of the fiscal year.
FISCAL IMPACT:
Should the Water Authority expenditures benefit from the $100,000 savings as noted
above, the final budget or 2014-2015 will be approximately $358,680. That in turn
would allow a "fair-share" credit to agencies against the FY 2015-2016 contributions.
06/12
ATTACHMENT:
A - FY 2014-15 Contribution Tables
Distribution Percentages
Member City
Monterey County
Carmel By the Sea
Sand City
City of Pacific Grove
City of Seaside
City of Monterey
City of Del Rey Oaks
Total Income
Approved %
Distribution
W/Out MoCo
Proposed %
Redistribution
W/MoCo
0%
9.30%
1.30%
18.80%
22.00%
46.50%
2.10%
100.00%
34%
6.14%
0.86%
12.40%
14.50%
30.70%
1.40%
100.00%
Member Contributions - w/MoCo

PROPOSED
Member City
Carmel By the Sea
Sand City
City of Pacific Grove
City of Seaside
City of Monterey
City of Del Rey Oaks
County of Monterey
Total Income
Proposed %
Distribution
W/MoCo
6.14%
0.86%
12.40%
14.50%
30.70%
1.40%
34.00%
100.00%
REVISED
Contributions
Anticipated
FY 2014-15
$28,163
$3,945
$56,876
$66,509
$140,815
$6,422
$155,951
$458,680

Agenda Report
FROM:

Item No: 12.
Authority Clerk Milton
SUBJECT: Discuss Implications Of An Earlier Start Time For Future

Meetings
RECOMMENDATION:
It is recommended that the Water Authority Board discuss the implications
of an earlier start time and provide staff direction.
DISCUSSION:
The issue of earlier start times for future Water Authority meetings was
raised at the meeting of January 8, 2015. However there are some issues
related to facility conflicts and live television coverage if meetings are held
earlier than 7:00 p.m.
Any additional issues with the proposed time change.
ATTACHMENTS:
None
06/12

MPRWA Final Agenda Packet 02-12-15

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Closed Session Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

Pursuant to Government Code 54957 - Performance Evaluations

January 8, 2015 Regular Meeting - Milton

Approval of Checks Through February 12, 2015 - Milton

Designation of Alternate To Serve As A Representative of The Authority On The

Thursday, February 12, 2015

Governance Committee. - Cullem

Receive Update, Discuss, And Provide Direction On Water Authority Participation In

Discuss Implications Of An Earlier Start Time For Future Meetings - Milton

Burnett, Edelen Kampe, Pendergrass, Roberson, Rubio

Executive Director, Legal Counsel, Acting Clerk Lewis

President Burnett closed public comment.

Approval of Minutes from the December 11, 2014 Regular Meeting

Approve and File Checks Through January 8, 2015

Thursday, January 8, 2015

Monterey Peninsula Regional Water Authority

Thursday, January 8, 2015

Monterey Peninsula Regional Water Authority

Thursday, January 8, 2015

resolve issues. There needs to be a contingency factor that if feasible is a legitimate

Establish Water Authority Meeting Schedule For Calendar Year 2015

Monterey Peninsula Regional Water Authority

Thursday, January 8, 2015

Michael Lewis, Acting Clerk, City of Seaside

Jason Burnett, MPRWA President

Monterey Peninsula Regional Water Authority

Monterey Peninsula Regional Water Authority

Date: December 11, 2014

Authority Clerk Milton

$ 1,225.00 to Environmental Relations for public outreach and website updates

$ 2,380.00 to McGilloway, Ray, Brown and Kaufman for Audit Services

Budget to Actual Report through February 5, 2015

Monterey Peninsula Regional Water Authority

Profit & Loss Budget vs. Actual

47240 Program Service Fees

47250 Reimbursement SPI Contract

47260 Reimburesment VE Contract

47200 Program Income - Other

60901 Clerk of the Board

60902 Executive Director

60903 Principal Offc of the Authority

60904 Financial Services

60905 Misc Admin Expenses

62803 Televised Meeting

62804 Contract Services & Studies

62805 Contract SPI

62800 Contract Services - Other

65100 Travel Expenses

62140 Special Counsel

Total 62800 Contract Services

66000 Payroll Expenses

Monterey Peninsula Regional Water Authority

Date: February 12, 2015

Authority Clerk Lesley Milton

SUBJECT: Adopt Resolution Authorizing The Authority President To

RESOLUTION NO. __-___ C.S.

Lesley E. MiltonRerig, Clerk to the

AGREEMENT FOR PROFESSIONAL SERVICES

THISAGREEMENT, made andentered into this_^^__day of ^2^7 , 2014, by and

contained herein, the parties hereto agree as follows;

Agreement #-. Ag-4096 - Page 1 of 6

forth in this paragraph, "3. Compensation".

All services to be performed by Employee, pursuant to paragraph 1, hereof, shall be performed in

RESOLUTION NO. -_ C.S.

l>-Cff>^UP. PtS*.AffT mdEWtOYEE