10:30 AM, Monday, January 6, 2014 Council Chamber 580 Pacific Street Monterey, California
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
REPORTS FROM TAC MEMBERS
PUBLIC COMMENTS PUBLIC COMMENTS allows you, the public, to speak for a maximum of three minutes on any subject which is within the jurisdiction of the MPRWA TAC and which is not on the agenda. Any person or group desiring to bring an item to the attention of the Committee may do so by addressing the Committee during Public Comments or by addressing a letter of explanation to: MPRWA TAC, Attn: Monterey City Clerk, 580 Pacific St, Monterey, CA 93940. The appropriate staff person will contact the sender concerning the details.
APPROVAL OF MINUTES
1. November 4, 2013 Regular Meeting
2. December 9, 2013 Special Meeting
AGENDA ITEMS
3. Review and Discuss Current Monterey Peninsula Water Supply Project Schedule (Burnett)
4. Receive Report and Discuss Status of Ground Water Replenishment Product Water Negotiations and Status of SDPH Criteria for Groundwater Recharge of Waste Water (Israel)
5. Receive Report and Discuss Water Project Status Reports Being Conducted by the Monterey Peninsula Water Management District (Stoldt)
6. Receive Report, Discuss and Provide Direction Regarding Alternate Funding Scenarios as It Related to Cost of Water (Cullem)
7. Receive Report, Discuss and Provide Direction Regarding Monterey Regional Water Pollution Control Agency Responses to The Coalition of Peninsula Businesses (Narigi).
ADJOURNMENT
Created date 01/03/2014 10:38 AM Monday, January 6, 2014 2
The Monterey Peninsula Regional Water Authority is committed to include the disabled in all of its services, programs and activities. For disabled access, dial 711 to use the California Relay Service (CRS) to speak to staff at the Monterey City Clerks Office, the Principal Office of the Authority. CRS offers free text-to-speech, speech-to-speech, and Spanish-language services 24 hours a day, 7 days a week. If you require a hearing amplification device to attend a meeting, dial 711 to use CRS to talk to staff at the Monterey City Clerks Office at (831) 646-3935 to coordinate use of a device or for information on an agenda.
Agenda related writings or documents provided to the MPRWA are available for public inspection during the meeting or may be requested from the Monterey City 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 T E S MONTEREY PENINSULA WATER AUTHORITY (MPRWA) TECHNICAL ADVISORY COMMITTEE (TAC) Regular Meeting 10:30 AM, Monday, November 4, 2013 MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY REGIONAL TREATMENT PLANT 14811 DEL MONTE BLVD, MARINA 93933
Members Present: Israel, Narigi, Riedl, Stoldt, Burnett
CALL TO ORDER The meeting was called to order at 10:30 a.m.
ROLL CALL
PLEDGE OF ALLEGIANCE
ADJOURN TO FIELD TRIP
1. Tour of the Monterey Regional Water Pollution Control Agency Regional Treatment Plant at 14811 Del Monte Blvd, Marina 93933
The meeting reconvened at 11:17 a.m.
REPORTS FROM TAC MEMBERS
Member Stoldt reported on speaking engagements he has attended regarding securitization funding for the Monterey Peninsula Water Supply Project. Chair Burnett reported about the Directors Special Meeting where they authorized a representative to participate with the Cal Am Design Build Firm interview process noting it was an unusual opportunity that a public agency was invited to participate in the private process. The Authority authorized contracting with Alex Wesner from Separation Process Incorporated to participate on behalf of the Governance Committee.
PUBLIC COMMENTS
Chair Burnett invited public comments. David Lifland questioned the status of the test well permit application with the City of Marina. Chair Burnett responded that he will provide an update at the November 14,
2013 Director meeting.
APPROVAL OF MINUTES
2. August 19, 2013
MPRWA TAC Meeting, 1/6/2014 , tem No. 1., tem Page 1, Packet Page 1 MPRWA TAC Minutes Monday, November 4, 2013
2 On Motion by TAC Member Stoldt and seconded by TAC Member Narigi and passed by the following vote the TAC approved the minutes of August 19, 2013
3. Receive Report, Discuss and Make Recommendations Regarding Ground Water Replenishment Project Bifurcation, including timeline and process for cost comparison and other project criteria (Burnett)
Chair Burnett reported on this item speaking to the approved settlement agreement granted by the CPUC judge which includes project criteria for the Ground Water Replenishment (GWR) project. He noted that the process laid out in the settlement agreement leaves some questions. He requested the TAC to consider if there are particular criteria that could benefit from Authority engagement.
The following items were determined to be considered for engagement:
1. Source water 2. Department of Health 3. On schedule delivery 4. Preliminary design completed to 10% level 5. Funding plan is in place 6. Water purchase agreement with just and reasonable terms 7. Comparison of the revenue requirement in compare to a larger desal without GWR
Member Israel spoke to conversations the Pollution Control Agency has been engaged in regarding source water. Progress is being made so binding arbitration has been delayed but anticipates to have the source water issue worked out on or before 2014.
Chair Burnett opened the item to public comment. Nelson Vega spoke to the need to have a confirmed source of water before any additional monies are spent to avoid stranded costs. David Lifland questioned the supporting evidence for regulations on the treatment and injection process and thinks it is in conflict with the 2011 basin plan. He is concerned that the Department of Health and the State Water Resources Control Board will not approve the process.
Mr. Israel responded to concerns expressed during public comment.
Mr. Stoldt left the meeting at 11:31 a.m.
Member Narigi urged consideration for future water supply needs. He indicated he has a variety of concerns that he does not feel has been addressed. Member Narigi and Executive Director Cullem will meet and discuss concerns and present a plan of action to the TAC.
MPRWA TAC Meeting, 1/6/2014 , tem No. 1., tem Page 2, Packet Page 2 MPRWA TAC Minutes Monday, November 4, 2013
3 The TAC agreed on the following action items: Monitor the schedule and how we are doing relative to that. Need staff recommendation to how we can provide answer to questions that Member Narigi raises. Want to see the scope of work on the externality study from Member Stoldt List of legal challenges or concerns that could come up and if they could be vetted through CEQA process
4. Receive Report, Discuss and Make Recommendations Regarding Ground Water Replenishment Project Schedule and Areas where the Water Authority Can Assist in Evaluating and Moving the Project Forward (Israel)
TAC Member Israel spoke to the item indicating that the list has been updated with regards to public health. He questioned what the procedural mechanism is for asking the CPUC to engage. Legal Counsel Russ McGlothlin will be contacted to provide the best opportunities.
The TAC spoke to the schedule included in the packet and the opportunities identified by the MRWPCA for the Authority to offer assistance which include the following: Source Water Agreements Participating in key discussions with regulator agencies Support of project funding via the 2014 Water Bond Assistance in the planning of the externalities study
Mr. Israel outlined the numerous permits that were required on the Federal (6), State (10), regional/local permits (16) and private entities (3) level. He then spoke to current efforts to assess and identify all waters in Northern Monterey County citing the need for the development of a full-scale general plan to minimize short term solutions.
Chair Burnett invited public comments.
Tom Rowley spoke concerning the availability of source waters. He expressed concern about ASR not being reliable, the timeline for installation of the proposed pipeline and questioned opportunities to expedite the process. He questioned the GWR project quantity projections and how it was measured. Nelson Vega spoke to the draft Water Purchase Agreement (WPA) and expressed concern about liability if you cannot produce the amount of water that is committed. He spoke in support of bifurcating the two projects but thinks the projects will still be done in a lineal pattern instead of on parallel tracks. Lastly, he expressed concern regarding stranded costs from the projects.
Mr. Israel answered Mr. Rowleys questions that the quantity of water is measured at point of injection and that the deep wells are more expensive than the shallow wells. Chair Burnett agreed with concerns of liability if adequate water cannot be produced but noted the WPA has not been drafted yet and contingencies will be built into the projects to account for these concerns. The TAC discussed the need for an independent analysis to be done of the GWR project. Member Israel reported that the Independent Advisory Panel, funded by the Irvine Foundation is conducting an analysis of the project and has offered to provide an update to the Authority if requested.
MPRWA TAC Meeting, 1/6/2014 , tem No. 1., tem Page 3, Packet Page 3 MPRWA TAC Minutes Monday, November 4, 2013
4 5. Discuss, Provide Staff Direction in Identifying Information Necessary to Evaluate the Ground Water Replenishment Project (Cullem)
This item was discussed and taken up under previous items. There was no additional discussion.
ADJOURNMENT
The meeting adjourned at 12:53 p.m.
Respectfully Submitted, Approved,
Lesley Milton, Committee Clerk Jason Burnett, TAC Chair MPRWA TAC Meeting, 1/6/2014 , tem No. 1., tem Page 4, Packet Page 4
M I N U T E S MONTEREY PENINSULA WATER AUTHORITY (MPRWA) TECHNICAL ADVISORY COMMITTEE (TAC) Special Meeting 10:30 AM, Monday, December 9, 2013 SEASIDE COUNCIL CHAMBER 440 HARCOURT AVE SEASIDE, CA 93955
Members Present: Israel, Narigi, Riley, Riedl, Stoldt, Burnett
TAC Chair Burnett called the meeting to order at 10:30 a.m.
ROLL CALL
PLEDGE OF ALLEGIANCE
REPORTS FROM TAC MEMBERS
TAC Member Riley spoke to a newspaper article discussing future water rates and requested an opportunity to ask questions. TAC Member Narigi spoke to the December 2, 2013 California Public Utilities Commission (CPUC) Workshop and reported meeting with Executive Director Cullem regarding Ground Water Replenishment Project concerns. Chair Burnett also reported regarding the CPUC workshop indicating the focus of questioning was regarding the size of the desal facility and that he had the opportunity to speak to the Authority position of sizing and the need to have water for lots of record and economic rebound. Member Stoldt indicated additional topics of discussion included cost cap, procedure for GWR, and securitization financing.
PUBLIC COMMENTS
David Lifland requested an update on the Monterey Peninsula Water Supply Project test well project. Cal Am Engineering Manager Ian Crooks responded that Cal Am is working with Marina to provide six additional technical studies to the City of Marina by the end of December.
AGENDA ITEMS
1. Review, Discuss and Provide Recommendations on Draft SPI Report to the Monterey Peninsula Water Supply Project (MPWSP) Design Build Consultant Selection Process (Consultant Alex Wesner) MPRWA TAC Meeting, 1/6/2014 , tem No. 2., tem Page 1, Packet Page 5 MPRWA TAC Minutes Monday, December 9, 2013
2 A brief over view of the project was provided by TAC Chair Burnett. He recapped the Governance Committee structure which provides a venue for the three public agencies to weigh in on the different aspects of the planning and construction of Cal Ams Monterey Peninsula Water Supply Project.
Mr. Alex Wesner, contracted consultant from Separation Processes Incorporated provided a detailed presentation of his involvement in the selection process for the Design Build contract for the MPWSP as members of the Governance Committee on behalf of the three public agencies. His role was to review relevant documents, including statement of qualifications, Request for Proposals, proposal responses, questionnaire response and evaluation reports. He also attended meetings including interviews with the contractors, proposal scoring sessions and negotiations with selected Design Build firm.
Mr. Wesner spoke to the technical specifications that were included in the contract negotiation process and provided evidence of the justifications for selection of the firm CDM including price, design ideas and site plan. He explained that the process was prescriptive to respond to specific technical criteria yet allowed the bidders to submit voluntary alternate proposals for flexibility.
Mr. Wesner provided the following schedule highlights proposed by the selected contractor CDM (*This time frame is contingent upon the success of the test wells.) then answered questions from the TAC.:
GWR Capacity Decision: October 2015 Final Design/Construction Start Nov 2015 Initial Start up at for 6.4 MGD Sept 2017 Final Start up for 9.6 MGD March 2018
The TAC discussed the voluntary alternative proposals and requested the proposed rates be included within the contract. Mr. Wesner noted that there were no immediate alternatives presented that should automatically be adopted and included from other proposals. The TAC discussed ways to speed up the process but Mr. Wesner responded that schedule acceleration is linked to Cal Ams permitting schedule. Member Narigi spoke to the cost difference between the different sized facilities, noting it was a small incremental cost. Mr. Wesner encouraged looking at the total project cost including operating costs as this facility would be more energy demanding to operate than the GWR project.
Mr. Crooks thanked the Authority for the effort Mr. Wesner provided to the process. The process was very throughout and the product results were acceptable.
Chair Burnett opened the item to public comment
David Lifland questioned redundancy of the wells if there are unanticipated outages. Mr. Crooks confirmed that that is adequately addressed. Cal am could start up some of the other wells if those wells if there is an outage. He also spoke to the ability to pull water from the Carmel River or other areas and run for a short period of time in an emergency. MPRWA TAC Meeting, 1/6/2014 , tem No. 2., tem Page 2, Packet Page 6 MPRWA TAC Minutes Monday, December 9, 2013
3 Member Riley requested anticipated completion dates of the EIR and the planned decision date for the CPCN to be included in the Critical Path method schedule. Mr. Cooks responded that the Draft EIR is anticipated to be released in February 2014, for approval in August. The TAC discussed the schedules as laid out in the CPUC settlement agreements for both the MPWSP and the GWR project, but noted they are all speculative and based on progress of the projects.
TAC Chair Burnett read an email from Legal Counsel McLaughlin into the record indicating Attorney Wes Strickland reviewed the proposed contract and concluded that the agreement was well drafted and fair. One further item is being explored regarding meeting coordination, but feels it is ripe for approval by the Governance Committee.
Executive Director Cullem summarized the following concerns discussed by the TAC: High cost spread of the bids Pushing the design work schedule given the permitting Brine disposal issues and how they could affect the design Contract being increased due to the added Lock in reduced rate if filters are eliminated Contract ignores permitting schedule Small difference in costs between both size facilities Quality Assurance vs. Quality Control Water Supply Sources and Redundancies
Executive Director Cullem spoke to the need to compile recommendations necessary to pass to the Authority Directors and then to the Governance Committee.
The TAC requested the following changes to the contract include: 1) Request Cal Am to look into locking-in the price of reduction in the event the filters are not needed if iron and manganese are not needed and any other areas where voluntary alternatives could reduce costs that could be locked in The TAC suggested further review of the following: 2) Looking at oversight of quality control and quality assurances 3) Clarification when the value engineering exercise begins 4) Identify the critical path schedule that the public agencies and the public can look to ensure the project stays on schedule
On Motion by TAC Member Stoldt and seconded by TAC Member Narigi and passed by the following vote the TAC endorse the selection of CDM Smith for the design build team and directed this recommendation be passed to the Authority with the exception of the potential for a credit for the pre filtration if not necessary based on water quality test, as well as to consider inclusion into the contract for Quality Assurance to be conducted by Cal Am or its representative.
4 Mr. Cullem noted that the discussion was longer than anticipated and due to time constraints the remaining items will be tabled.
The TAC requested for a future agenda to discuss and determine how best to calculate and communicate water rate increases to the ratepayers. It was additionally noted that this design build selection resulted in substantial ratepayer savings over the original savings projected by SPI in the previous report.
2. Review and Discuss Current Monterey Peninsula Water Supply Project Schedule (Burnett) Action: Tabled
3. Receive Report and Discuss Status of Ground Water Replenishment Product Water Negotiations and Status of SDPH Criteria for Groundwater Recharge of Waste Water (Israel) Action: Tabled
4. Receive Report and Discuss Water Project Status Reports Being Conducted by the Monterey Peninsula Water Management District (Stoldt) Action: Tabled
5. Receive Report, Discuss and Provide Direction Regarding Monterey Regional Water Pollution Control Agency Responses to The Coalition of Peninsula Businesses (Narigi). Action: Tabled
6. Receive Report, Discuss and Provide Direction Regarding Alternate Funding Scenarios as It Related to Cost of Water (Cullem) Action: Tabled
ADJOURNMENT
The next scheduled meeting on December 16, 2013 was canceled. The next scheduled meeting for the TAC will be on January 6, 2014. The meeting was adjourned at 12:13 p.m.
Respectfully Submitted, Approved,
Lesley Milton, Authority Clerk Jason Burnett, TAC Chair MPRWA TAC Meeting, 1/6/2014 , tem No. 2., tem Page 4, Packet Page 8 Monterey Peninsula Regional Water Authority Agenda Report
Date: January 06, 2014 Item No: 6.
FROM: Executive Director Cullem
SUBJECT: Receive Report, Discuss and Provide Direction on Alternate Funding Scenarios as Related to the Cost of Water.
RECOMMENDATION: Staff recommends that the TAC review the alternative funding scenarios as outlined in the attached Cal-Am attachment to better understand the impact that the various Desal project funding scenarios have on the cost of water to the average customer as defined in footnote #4. It is further recommended that the TAC provide suggestions and input to the Water Authority as appropriate.
DISCUSSION: The attached Monterey Peninsula Water Supply Project Financing Scenarios document was presented and discussed at the CPUC pre-hearing on December 2, 2013. For purpose of comparison, it refers only to the 9.6 MGD plant.
The columns in the table outline estimated costs caps that cannot be exceeded without CPUC approval by means of a Tier 2 Advice Letter or a Petition for Modification. Refer to paragraphs III C and III D of the Comprehensive (Large) settlement agreement for a detailed discussion.
Go to the Water Authority web site at www.mprwa.org and click on Resource Central than Documents to find the full text of the settlement agreement.
This item will be discussed at the Water Authority meeting this afternoon, so any TAC suggestions or recommendations should be conveyed to the authority through the Executive Director or during the public comments period at the Authority meeting.
ATTACHMENT: Monterey Peninsula Water Supply Project Project & Financing Scenarios ( as of 2 Dec 2013) MPRWA TAC Meeting, 1/6/2014 , tem No. 6., tem Page 1, Packet Page 9 MPRWA TAC Meeting, 1/6/2014 , tem No. 6., tem Page 2, Packet Page 10