TAC MPRWA Special Meeting Agenda Packet 10-09-14

Agenda
Monterey Peninsula Regional Water Authority (MPRWA)

Technical Advisory Committee (TAC)
Special Meeting

10:00 AM, Thursday, October 9, 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. September 9, 2014 Special Meeting

AGENDA ITEMS

2. Acknowledgement of Executive Director as TAC Chair

3. Receive Report On How "Feasibility" Is To Be Considered In CEQA And In The Large
Settlement Agreement For The Monterey Peninsula Water Supply Project - Cullem

4. Receive Separation Processes Inc (SPI) Analysis Of The Value Engineering Alternatives,
Discuss, And Make Recommendations To The Water Authority Directors - Cullem

5. Receive Report On The Latest Information Pertaining to Public Funding, Including Bond
Funding, For The Monterey Peninsula Water Supply Project - Stoldt

6. Receive Report And Discuss Status Of the Deep Water Desal And The Peoples Moss
Landing Water Desal Project, Including The Kennedy/Jenks Consultants Cost Comparison
Study, And Make Recommendations To The Water Authority Directors As Appropriate -
Stoldt

7. Receive Report And Discuss Status And Schedule Of Memorandum of Understanding And
Agreements For Ground Water Replenishment Source And Product Water - Israel/Stoldt

Created date 10/06/2014 11:06 AM Thursday, October 9, 2014
2

8. Receive And Discuss Updated The Monterey Peninsula Water Supply Project Critical Path
(CPM) Permits & Approvals Schedule To Include The CEMEX Access Issue, And As It
Pertains To The November Coastal Commission Meeting To Consider The Test Slant Well
- Crooks

9. Receive And Discuss A "Decision Tree" For Slant Well Alternatives And Options Including
A Potential Move To The Protrero Road Site - Crooks

10. Discuss The Issue Of "Stranded Costs" And Make A Recommendation To The Water
Authority Directors - Stoldt

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 35.102-
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, 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.

M I N U T E S
MONTEREY PENINSULA WATER AUTHORITY (MPRWA)
TECHNICAL ADVISORY COMMITTEE (TAC)
Special Meeting
10:30 AM, Monday, September 8, 2014
COUNCIL CHAMBER
580 PACIFIC STREET
MONTEREY, CALIFORNIA

Members Present: Huss, Narigi, Israel, Stoldt, Riedl, Lee

Members Absent:

Riley

Staff Present: Executive Director, Legal Counsel, Clerk

CALL TO ORDER

The meeting was called to order at 10:38 AM. Member Riedl was the acting Chair for this
meeting.

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM TAC MEMBERS

Chair Riedl invited reports from the TAC and had no requests to speak.

PUBLIC COMMENTS

Chair Riedl invited public comment and had no requests to speak.

APPROVAL OF MINUTES

On a motion by Committee Member Israel, seconded by Committee Member Stoldt, and carried
by the following vote, the MPRWA Technical Advisory Committee approved the minutes from
August 4, 2014

AYES: 5 MEMBERS: Huss, Narigi, Israel, Stoldt, Riedl
NOES: 0 MEMBERS: None
ABSENT: 1 MEMBERS: Riley
ABSTAIN: 1 MEMBERS: Lee
RECUSED: 0 MEMBERS: None

1. August 4, 2014 Regular Meeting
MPRWA TAC Meeting, 10/9/2014 , tem No. 1., tem Page 1, Packet Page 1
MPRWA TAC Minutes Monday, September 8, 2014

2

AGENDA ITEMS

2. Welcome Brian Lee as Member of the Technical Advisory Committee - Cullem

Executive Director Cullem welcomed newly appointed Brian Lee from the Marina Coast Water
District to serve on the TAC. He reminded the Committee that the purpose of the TAC was to
provide unbiased information to the Directors. The TAC welcomed Member Lee. Member Lee
thanked the Committee for the opportunity to participate.
Chair Riedl invited public comments and had no requests to speak.

3. Receive Report on the CPUC Administrative Law Judge Ruling of August 21, 2014 Updating
the Schedule and Discuss Its Impact on the Ground Water Replenishment Schedule -
Cullem/Israel

Executive Director Cullem reported that the delay of the bore hole drilling impacted the delayed
release of the draft EIR, therefore the CPUC officially extended the dates for the Administrative
Law Judge hearings until spring. Member Israel added the CPUC has acknowledged that the
delayed release of the EIR for the Desal would impact the GWR project, therefore the settling
parties have met and formed a recommendation for a response to the CPUC. The GWR EIR is
contingent upon portions of the Desal EIR because there are linkages for the projects.

Member Narigi expressed concern that the desal project EIR is being pushed back due to the
GWR project.

Chair Riedl invited public comment on the item.
Tom Rowley requested the snap shot report of the Salinas Valley made at the request
of Supervisor Calcagno be released. He also repeated past comments that releasing
the draft DIR without the initial results of the test well is illogical. He closed by
expressing disappointment with the lack of approval from the City of Marina.
This item was for discussion and information only.

4. Receive Report and Discuss Memorandum of Understanding for Ground Water Replenishment
Source and Product Water - Israel

Member Israel spoke to the preliminary Memorandum of Understandings negotiated and
reported that a semi-finalized MOU was distributed for consideration and should hopefully meet
the September 15th deadline. He indicated that the MPWMD has discontinued contributing
funding toward the GWR project until the MOU has been finalized and all costs are being paid
by MRWPCA at this time. Members Stoldt and Huss agreed with the comments of Mr. Israel.
Chair Riedl invited comments from the public and had no requests to speak.

5. Receive Report and Discuss the Status of the Cost Comparison and Externalities Studies for
Ground Water Replenishment vs Desal - Stoldt

3

Member Stoldt spoke to the item noting that costs can be determined once the MOU has been
signed and that the three potential consultants have been put on hold for the externality study
until then. The cost comparison is intended to be done at 10% design completion to be able to
provide an initial cost assessment. Also, many of the costs are contingent on SRF eligibility,
and the applications are currently being prepared. Mr. Stoldt indicated that the cost comparison
should take only a couple of weeks to complete once initiated.
Executive Director Cullem reminded the TAC that the Directors mandated that the TAC
continue to focus on the cost comparison, which is why it's been on the agenda repetitively.
Member Israel spoke to the externality study, to the intangible aspects of the project and
agreed it is important piece for consideration.
Chair Riedl invited public comments on the item.
Tom Rowley expressed concern regarding unintended consequences with expanding
CSIP and expanding GWR. Wanted to ensure that they are properly and legally
approved as projects prior to funds being expended.

Member Stoldt spoke to Mr. Rowley's comments clarifying it is not an expansion of Castroville
Sea Water Intrusion Project (CSIP) but an increase in the supply of water that is available to
CSIP. Member Huss agreed with Member Stoldt that CSIP will not be expanded with the GWR
project, but will be done separately, voted on and paid for by those that will benefit from it.

Executive Cullem indicted the TAC may need to address the potential impacts of the bond
measure if passed in November and should visit discuss all potential funds available for both
projects. Mr. Stoldt spoke to the funding mechanisms available and indicated he can provide a
water bond summary at the next meeting.

6. Receive report and discuss status of Marina consideration of the test slant well MND and
Coastal Development Permit - Cullem/Crooks

Executive Director Cullem reported that the Mitigated Negative Declaration for the issuance of a
permit for the test slant test wells was not certified by the City of Marina. He spoke to the two
technical issues that voted down the item. The first was an interpretation of CEQA law that the
permit was part of a larger project and should be submitted as such. The second point that was
the fact the expert testimonys given disagreed. Mr. Cullem reported that the permit will be
appealed to the Coastal Commission. The TAC discussed the process of approval from the
Coastal Commission and reminded the public regarding the requirement to test the slant wells
before considering alternative well options.

Chair Riedl invited comments from the public and had no requests to speak.

7. Receive Report and Discuss Status of the Hydrogeological Model and Study - Crooks

Executive Director Cullem reported on his meeting with the hydrogeological working group
regarding the status of the models. Static data was input but cannot proceed further until

4
dynamic data is received from the test slant well. Total test period was to be two years and
hopefully there would be enough data at some point to have a level of confidence that the
CPUC EIR team can move forward.
Member Lee indicated that MCWD and Cal Am met and has agreed to include MCWD lands for
desalination so we can build a technical relationship between the two agencies.
Chair Riedl invited public comment and had no requests to speak.

8. Receive Updated Critical Path Method (CPM) Schedule, and Discuss How It Pertains to the
Coastal Commission Meeting to Consider the Test Slant Well - Crooks

Executive Director Cullem spoke to the item in the absence of Ian Crooks, and indicated that
due to the decision by the City of Marina, the MPWSP is several weeks back on the schedule
as presented at previous meetings but is still on tract to have their appeal agendized before for
the Coastal Commission in October.
Chair Riedl invited public comment on the item.
Tom Rowley spoke to the delays and requested the Authority to keep a conscious eye
on the requests for additional studies and legal costs and the impacts for stranded
costs. Requested a future discussion on how the delays affect the total cost of the
project.

Chair Riedl questioned if Cal Am has a cost cap before abandoning a project.

ADJOURNMENT

Having no further business to conduct, the meeting was adjourned at 11:40 AM.

Respectfully Submitted, Approved,

Lesley E. Milton, Committee Clerk Rick Riedl, Acting TAC Chair
Monterey Peninsula Regional Water Authority
Agenda Report

Date: October 09, 2014
Item No: 3.

FROM: Executive Director Cullem

SUBJECT: Receive Report On How "Feasibility" Is To Be Considered In CEQA And
In The Large Settlement Agreement For The MPWSP.

RECOMMENDATION:

It is recommended that the TAC receive a report on the definition of "feasibility" in the
CEQA process as well as it was intended to be considered in the Large Settlement
Agreement on Cal Am's Monterey Peninsula Water Supply Project (MPWSP) under
consideration by the CPUC.

DISCUSSION:

At the Water Authority meeting of September 11, the issue of what constitutes "feasible"
as pertains to CEQA and approval agency requirements for the Cal Am Desal project in
general and the slant wells in particular. The question is at what point in the process do
the additional cost and time delays associated with the slant well, as opposed to purely
technical considerations on slant well construction and operation, determine their
feasibility.

Section 6.1 of the "Large Settlement Agreement" to which 16 Interveners agreed states,
"The parties agree that it is reasonable for California American Water to use subsurface
intake via slant wells for the desalination plant, subject to confirmation of the feasibility
of this option by the test well results and hydogeologic studies."


Agenda Report

Item No: 4.


SUBJECT: Receive SPI Analysis Of The Value Engineering (VE) Final Report For
The Cal Am Desal Facility, Discuss, And Provide Recommendations To
The Water Authority Board.

RECOMMENDATION:
It is recommended that the TAC review the Separation Processes, Inc. (SPI) analysis of
Monterey of the Final Value Engineering ( VE) Study of the Monterey Peninsula Water
Supply Project (MPWSP) and make recommendations to the Water Authority Board.

DISCUSSION:
The Final Value Engineering (VE) Study for 30% design of the desal facility was
completed by Value Management Strategies (VMS) and briefed to a joint meeting of
the Governance Committee and the MPRWA at a special meeting on July 10 and to the
TAC on Aug 4. The VE study focused on value improvements, in particular potential
cost savings. Requirements mandated by the settlement agreements, as well as
directions from the Governance Committee on environmental and aesthetic issues,
should still be incorporated into the design.
At its meeting of Aug 14, 2014, the Water Authority voted to request SPI to perform an
analysis of the VE Study in advance of the Authority forwarding its recommendations to
the Governance Committee. The SPI Analysis is at Exhibit A, and the full text of the VE
report is available on the Water Authority web site http://www.mprwa.org/wp-
content/uploads/2012/03/MPWSP-Final-VE-Report.pdf and on the Cal Am MPWSP
project web site www.watersupplyproject.org .
Following review and comment by the MPRWA, the SPI analysis will be forwarded to
the Governance Committee for action in accordance with the Governance Agreement.

EXHIBITS:
A- Separation Processes, Inc. (SPI) Analysis of the MPRWA VE Study

Agenda Report

Item No: 7.


SUBJECT: Receive Report And Discuss Memorandum Of Understanding For Ground
Water Replenishment Source And Product Water.

RECOMMENDATION:

It is recommended that the TAC receive a report on the current status of negotiations
on source water for the MRWPCA Pure Water Monterey (PWM) / Ground Water
Replenishment (GWR ) project and make recommendations to the Authority Board if
appropriate.

DISCUSSION:

A MOU for GWR source water was to have been completed by June 30, 2014.
However, the CPUC hearing on the MPWSP scheduled for December 2014 is now
delayed to April 2015 as a result of problems by the CPUC consultant in completing the
EIR. As a result, the deadline for GWR decisions at the CPUC is likely to be extended
as much as 11 months. This situation allows much needed time to complete the MOU,
related water agreements, and the Water Purchase Agreement (WPA).

Substantial progress has been made on the MOU and Keith Israel, General Manager of
the MRWPCA, will present the latest information on that subject at today's meeting.

A copy of the draft MOU considered by the Monterey County Water Resources Agency
is at Exhibit A.

EXHIBIT:

Draft MOU

MEMORANDUM OF UNDERSTANDING REGARDING
SOURCE WATERS AND WATER RECYCLING

THIS MEMORANDUM OF UNDERSTANDING (MOU) is made this _______ day of
________________ 2014, by and between Monterey Regional Water Pollution Control Agency,
the Monterey County Water Resources Agency, the City of Salinas, the Marina Coast Water
District, and Monterey Peninsula Water Management District, collectively the Parties.

The Monterey Regional Water Pollution Control Agency (PCA) was formed as a California
Joint Powers Agency by a Joint Exercise of Powers Agreement for the Monterey Regional Water
Pollution Control Agency, effective June 29, 1979. The Monterey County Water Resources
Agency (WRA) was established in 1995 pursuant to the Monterey County Water Resources
Agency Act. The City of Salinas (Salinas) is a California charter city and municipal
corporation. The Marina Coast Water District (MCWD) is a county water district established
in 1960 pursuant to Water Code 30000, et seq. The Monterey Peninsula Water Management
District (MPWMD) was established in 1977 as a California special district pursuant to the
Monterey Peninsula Water Management District Law (Chapter 527 of the Statutes of 1977, as
amended, found at Water Code Appendix (Water C. App.) 118-1, et. seq.)

WITNESSETH:

WHEREAS, PCA entered into an Annexation Agreement, dated April 25, 1989, with MCWD
providing, among other things, annexation of MCWD and for it to become a member entity of
MRWPCA; and,

WHEREAS, the Annexation Agreement between PCA and MCWD provides MCWD a water
right entitlement equal, as a minimum, to the volume of MCWD wastewater treated by PCA;
and,

WHEREAS, PCA entered into an agreement with WRA, dated June 16, 1992, for construction
and operation of a tertiary treatment system (the 1992 Agreement), with subsequent
amendments thereto, as follows: Amendment No. 1 on May 30, 1994; Amendment No. 2 on
February 16, 1998; and, Amendment No. 3 on May 28, 2002; and,

WHEREAS, the 1992 Agreement, as amended, caused WRA to finance $29,763,849.56 in
tertiary treatment and related facilities; and,


Revised 9-19-14 MPWMD Page 2 of 9

WHEREAS, PCA and Monterey Peninsula Water Management District on May 20, 2013
entered into a Cost Sharing Agreement for the planning and development of the Pure Water
Monterey Groundwater Replenishment (GWR) Project for the advanced treatment and
recycling of a variety of source waters for indirect potable reuse;

NOW, THEREFORE, for and in reliance on the foregoing, the Parties hereby agree to negotiate
a Definitive Agreement to establish contractual rights and obligations of all Parties, containing,
as a minimum, the following provisions:
1. Protection of MCWDs Recycled Water Right Entitlement

a. Reaffirmation by PCA of MCWDs recycled water right entitlement granted to
MCWD pursuant to Paragraph 12 of the April 25, 1989 Annexation Agreement
between PCA and MCWD.

b. Reaffirmation that MCWDs recycled water right is the senior right.

c. MCWD, in use of its recycled water entitlement, will comply with all applicable
requirements set forth in Contract No. 5-07-20-W1284, between the Bureau of
Reclamation and WRA including, but not limited to, those contained in
Paragraphs 10b and 10c, all at MCWDs sole cost and expense.

d. MCWDs recycled water right entitlement may be made contractually available
by MCWD to another Party and may be made available to WRA for CSIP if not
utilized by MCWD, or its assignee, in any given year.

2. Provision of Recycled Water to WRA

a. WRA to be supplied recycled water during the agricultural growing season in a
minimum volume equal to the wastewater flows to the Regional Treatment Plant
from all existing PCA members, plus treated waters originating from a variety of
newly identified additional incremental and interruptible sources described in
Section 3.a. hereof, subject to the provisions of Section 3.a.iii.

b. The cost of primary and secondary treatment of Salinas agricultural wash water,
estimated at $179/acre-foot in 2014, to be paid to PCA by Salinas, the future rates
for which to be established pursuant to Section 3(o) hereof.

c. The cost of tertiary treatment of agricultural wash water to be paid to PCA by
WRA, the future rates for which will be established by a protocol to be set forth in
the Definitive Agreement.


3. Phase I GWR Project Water and CSIP Area Additional Water

a. Phase I to provide water from newly identified sources that are incremental
additions over and above the incoming wastewater flows as identified in the 1992
Agreement, which consists of Salinas agricultural wash water, Salinas
stormwater, all recoverable Reclamation Ditch water diverted at Davis Road, a
portion of Tembladero Slough water diverted at Castroville, all recoverable
Blanco Drain water, Lake El Estero stormwater, and reoperation of the Salinas
ponds to store winter flows for summer use. Such waters may also include
additional stormwater from other locations on the Monterey Peninsula. Phase I
includes both (a) improvements to the SVRP in order to provide winter water to
offset pumping at CSIP (contingent upon WRA completing hydraulic
modifications to the existing CSIP system), and (b) treatment of wastewater from
the Regional Treatment Plant that has been determined to be excess and not
processed by the SVRP, provided, however, that PCA not curtail SVRP
operations to produce said excess water, but in both cases such sources are not
considered incremental additions.

i. Projected annual amounts are 4,320 acre-feet for GWR
Project, and 5,292 acre-feet for CSIP Area Replacement
Water, and 248 acre-feet GWR to be held in drought
reserve. These are approximate amounts based on average
year conditions, but actual amounts will vary annually;

ii. Projected costs of Phase I water are to be defined in the
Definitive Agreement, consistent with Sections 3(k) and
3(l) below and subject to third party review as discussed in
Miscellaneous below;

iii. Except for the commitments under Section 3.j. below, the
Parties agree that Salinas agricultural wash water may be
utilized by PCA for the time period necessary for an
average annual amount of 4,320 acre-feet for the GWR
Project to be achieved from Phase I Additional Sources.
However, PCA is obligated to endeavor to develop the
additional supplies identified under Section 3.a. and
transition a portion of the agricultural wash water for the
benefit of CSIP and WRA.



iv. The Definitive Agreement to only apply to wastewater
from existing PCA members and derived from the PCAs
2001 Service Area and water sources identified in Sections
3.a. and 3.q. Any future additions or annexations to the
PCA Service Area or future sources outside of the 2001
Service Area will be subject to future agreement(s).

b. Phase I to be operational in 2017, but the Parties will adjust schedule for
construction and operation if and as needed.

c. WRAs participation in Phase I to be contingent upon its successful completion of
the Proposition 218 process, if applicable.

d. In 2014 WRA filed an application with the State Water Resources Control Board
(SWRCB) for water rights to appropriate waters of the Blanco Drain for the
purpose of providing additional waters for CSIP and for domestic supplies within
the Salinas River Valley; and, for water rights to appropriate waters of the
Reclamation Ditch and Tembladero Slough for the purpose of providing
additional waters for CSIP and for domestic supplies within the Salinas River
Valley. The Parties agree that such water rights shall be retained exclusively by
WRA. The Parties to pay pro rata all costs associated with WRAs procurement
and retention of Blanco Drain, Tembladero Slough, and Reclamation Ditch water
rights. The Parties agree to work jointly on obtaining the water rights. The
Parties may agree to apply for water rights in increments to facilitate issuance of
permits.

e. CSIP participants to be separately responsible for the tertiary treatment costs of
the water processed and delivered through the SVRP. GWR participants to be
separately responsible for the costs of advanced water treatment through the
GWR facilities.

f. The Parties to work cooperatively and collaboratively among themselves, in good
faith, to determine appropriate crop irrigation water quality standards for water
supplies.

g. The Parties to work cooperatively and collaboratively among themselves, in good
faith, to determine if, when, and how much of each water will be collected and
sent to the RTP for treatment.



h. Excess flows to be made available to each other Party, as may be desired.
Excess flows to be defined in the Definitive Agreement, but are generally
accepted to mean waters available for treatment at the SVRP or GWR facilities,
but not desired by the project participants to be processed and delivered at that
period of time.

i. PCA to have rights to the first 4,320 acre-feet annually of the new incremental
waters defined under Section 3.a. above, plus amounts in the six winter months to
produce 200 acre-feet to be placed in drought reserve. WRA can request that
PCA schedule withdrawals from the drought reserve in lieu of processing the
incremental waters in order to make a like amount available to CSIP in time of
need. Withdrawals will be limited to no more than the amount on deposit in the
drought reserve.

j. WRA to receive the agricultural wash water on terms similar to the Produce Wash
Water Agreement, dated 1 July 2014, in 2015, 2016, and 2017 until the GWR
project becomes operational.

k. PCA, at its cost and expense, to use its consultant to prepare a comprehensive rate
analysis, to devise appropriate Interruptible Rates that will likely be less
expensive than current non-Interruptible Rates for pumping, odor control, primary
and secondary treatment. Separate Interruptible Rates to apply to each water
source, but each separate Interruptible Rate to be subject to future escalation
consistent with standard factors for operation and maintenance inflation over
time. WRA will not pay rates for water it does not receive.

l. Capital costs to be shared by PCA and WRA proportional to the waters projected
to be made available on an average annual basis. Fixed pro rata capital costs to be
paid annually by the Parties, irrespective of water requested or received.
However, the calculation of pro rata shares of capital costs to be based only upon
facilities actually built and average annual water expected to be made available
vis the constructed facilities. In recognition of potential, yet undetermined,
benefits of the existing operations of the Salinas Industrial Ponds to the recharge
of the groundwater basin and the Salinas River for purposes of calculating water
made available to CSIP 33% of the water attributable to the Salinas agricultural
wash water would not be counted in the calculation of the proportional cost to
WRA. Annual recovery of fixed capital costs to include any annual capitalized
costs for facilities leased by PCA for the furnishing of water to the Parties.



m. PCA subject to concurrence by the rate study to waive all capacity charges for use
of water on an Interruptible basis from presently identified water sources to be
included in Phase I or Phase II.

n. Pursuant to subsequent agreement and lease, PCA and Salinas to negotiate a
separate agreement and lease and develop a seasonal working protocol for
diversion of Salinas Industrial Ponds (Agricultural Wash Water) and storm water
as allowed by available storage. PCA to pay Salinas an annual lease payment to
be recovered in the cost of water in accord with criteria to be established in the
Definitive Agreement.

o. PCA, if it uses tertiary treated water for the GWR Project, to comply with all
applicable requirements set forth in Contract No. 5-07-20-W1284, between the
Bureau of Reclamation and WRA including, but not limited to, those contained in
Paragraphs 10b and 10c, all at PCAs sole cost and expense.

Phase II CSIP Area Additional Water
p. Phase II to provide water from newly identified sources that are incremental
additions over and above the incoming wastewater flows as identified in the 1992
Agreement, as amended, and may consist of diversion of remaining Tembladero
Slough water, potential future advanced treated water, and UniKool water.

q. Phase II to approximate up to 3,754 AFA of new water.

r. Phase II to be operational by 2022.

s. Projected costs of Phase II will be determined in the future, consistent with
engineering feasibility analysis, preliminary design, and third party rate consultant
analysis.

t. Phase II would be contingent on its successful completion of the Proposition 218
process, if applicable.

4. Accounting Protocols

PCA to enter into a separate agreement with WRA by December 31, 2014 to achieve the
following:



a. PCAs adoption of activity-based costing for all its CSIP, SRDF and SVRP
activities.

b. Revision of the various financial protocols currently utilized to achieve one
standard protocol for each of CSIP, SRDF and SVRP.

c. Allocation methodologies for costs associated with CSIP, SRDF, and SVRP.

d. An annual audit of PCAs financial transactions related to CSIP, SRDF and SVRP
at WRA expense.

e. PCA to credit to the CSIP and SVRP accounts any pro rata revenues it receives
from byproducts of tertiary treated wastewater.

f. A third-party agreed upon by both PCA and WRA to be hired to design and
implement these Accounting Protocols.

MISCELLANEOUS
1. This Memorandum of Understanding is intended to provide a framework for negotiation
of a Definitive Agreement. This Memorandum is not intended to create binding
contractual obligations and other essential terms in addition to those set forth in this
Memorandum are to be negotiated and agreed upon before the Parties reach a Definitive
Agreement.

2. It is recognized and acknowledged that the Parties may not agree upon or enter into a
Definitive Agreement. In such an event, no Party shall make any claim against any other
Party related to the failure to enter into a Definitive Agreement.

3. An independent third-party review of proposed capital and operating costs to be
performed before WRA Board approval of the Definitive Agreement.

4. The term of the Definitive Agreement to be 30 years or as subsequently agreed upon in

5. The Definitive Agreement may result in an Amendment to the 1992 Agreement and the
amendments thereto. All previous Amendments will be reviewed to ensure conformity
and continuity of relevant provisions. Amendment No.3 to be novated by the Definitive
Agreement and any terms of Amendment No.3 that remain applicable will be restated in



6. The Definitive Agreement will incorporate standard contract language to govern
enforcement and resolution of disputes.

7. This Memorandum of Understanding will expire the earlier of (i) execution of a
Definitive Agreement, or (ii) March 31, 2015.

8. Individuals whose signatures appear on this document represent, warrant, and guarantee
they are authorized to execute this document on behalf of those entities on whose behalf
they purport to execute this document.

##########
WITNESS, the Monterey Regional Water Pollution Control Agency, the Monterey County
Water Resources Agency, the City of Salinas, and the Monterey Peninsula Water Management
District entered into this Memorandum of Understanding as of the date first written above.

MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY
By:
Its:

MONTEREY COUNTY WATER RESOURCES AGENCY
By:
Its: Chair of the Monterey County Water Resources Agency Board of Supervisors

CITY OF SALINAS
By:
Its:



MARINA COAST WATER DISTRICT
By:
Its:

MONTEREY PENINSULA WATER MANAGEMENT DISTRICT
By:
Its:

Agenda Report

Item No: 8.


SUBJECT: Receive Report And Discuss Updated MPWSP Critical Path (CPM)
Permits And Approvals Schedule (Detailed Version) To Include The
CEMEX Access Issue, Especially And As It Pertains To The November
Coastal Commission Meeting To Consider The Test Slant Well

RECOMMENDATION:

Staff recommends that the TAC receive an update from Cal Am on the detailed
schedule to appeal the Marina City Council rejection of the Test Slant well, to secure
access to the CEMEX site, and to obtain a CDP from the Coastal Commission in
November 2014.

DISCUSSION:

The Marina City Council considered the Test Slant Well MND and City CDP at its
meeting of Sept 4, 2014. The Council voted 3-2 rejecting the approvals based on an
interpretation of CEQA law that a full EIR is required if experts, "based on factual
evidence", disagree. Cal Am appealed the decision to the Coastal Commission.

However, CEMEX has recently denied Cal Am access to the test well site, endangering
the plan to have the Coastal Commission consider the appeal at its November 2014
meeting as well as to issue a Coastal Commission CDP for the test well.

Unfortunately, the approval of access was not identified on the Permits and Approvals
Critical Path schedule prepared by Cal Am.

Cal Am has been requested to discuss the detailed version of the Permits and
Approvals schedule, including the CEMEX access issue and other similar issues that
need to be on the critical path.

EXHIBIT:

A- CPM (detailed version) Permits and Approval Schedule

MPWSP Anticipated Schedule
2018 2017 2016 2015 2014
DEIR
Jan 2015
FEIR
July 2015
Construction & Commissioning
S O N D
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
60%
09-2014
90%
03-2016
Final
06-2016
Start-up Window
Partial or Full
Construction & Commissioning
Start Construction
07-2016
Design, Easements, Permitting & Contracts
CCC
Approval
Feb-Mar. 2016
Nov. 12-14
Coastal Comm.
Hearing

Note: The schedule is based on the information and assumptions available at time of update and is accurate to +/-6 months.
Sept. 3
Marina
Council
Decision
SWRCB Current
CDO Deadline
Dec. 31, 2016
!
Pipelines / Tanks / BPS
Desal Plant
Test Well
EIR
Construction
Slant Wells
Phase 1
2019
J F M A M J J A S O N D J F M A
CPUC
Approval
Q3 2015
Slant Wells
Phase 3
Slant Wells
Phase 2
Production Wells
Mid 2018 Q1 2019
Test Well Operation
Start Construction
04-2016
(if needed)
Design & Permitting
MPWSP Anticipated Schedule
Snowy Plover Nesting Season
Limited Construction Activity
Updated October 2, 2014
M
P
R
W
A

T
A
C

M
e
e
t
i
n
g
,

1
0
/
9
/
2
0
1
4

,

t
e
m

N
o
.

8
.
,

t
e
m

P
a
g
e

2
,

P
a
c
k
e
t

P
a
g
e

2
0
MRWPCA Test Well Outfall Agreement & Approval
Contracts
Awarded
JUNE JULY AUG SEPT OCT NOV DEC
CEMEX Test Well Schedule
Finalize
Report
6/18-
6/27
7/10
Marina
Planning
Commission

CCC
Prepare & Distribute
Staff Report

Nov. 12-14
CCC Mtg
for Appeal &
Original
Application

Test Well RFP
Preparation
RFP
released
RFP received, evaluated, negotiated
CEQA
NEPA
Finalize Report
6/18-6/20
Public Review
6/23-7/26
Prepare
Draft
FONSI
7/26-8/10
Construction
MBNMS
Review of
FONSI 8/10-
8/30
Final
FONSI
9/1
9/15
FONSI
Approval
9/15
10/1
Agreements & Land
Construction
(mid Nov to March 1)
CEMEX Easement / Access Rights
9/3
Submittal
approvals and
pre-con activity
Order Long Lead Items (pump, stainless steel screens, pump column)
CCC
Appeal
Filed
9/24
Council
Special
Mtg
Post
Appr.
Compl.
Items

2014
2014
Cemex Slant Test Well Anticipated Schedule
Note: The schedule is based on the information and assumptions available at time of update.
Court Proceedings
10/8: CalAm briefs & proposed order
10/15: CEMEX file opposition
10/22: CalAm file replies
10/31: Hearing & Decision
M
P
R
W
A

T
A
C

M
e
e
t
i
n
g
,

1
0
/
9
/
2
0
1
4

,

t
e
m

N
o
.

8
.
,

t
e
m

P
a
g
e

3
,

P
a
c
k
e
t

P
a
g
e

2
1
CEMEX Test Well Schedule
Note: The schedule is based on the information and assumptions available at time of update is accurate to +/-3 months.
Submit
Project to
Lead
Agency
Finalize
IS/MND

CEQA CA STATE PARKS LEAD AGENCY
NEPA
Draft EA
Prepare, Revise, Review
30-day
Public
Public
Review
Prepare
Draft
FONSI
MBNMS
Review of
FONSI
Final
FONSI
FONSI
Approval
30-day
Public
Review
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT
2014 2015
Potrero Slant Test Well Anticipated Schedule
Draft IS/MND
Prepare, Responsible Agency Comments
Revise, Review
Submit
Project to
Lead
Agency
Lead Agency
IS/MND
Approval
Review
Final
IS/MND

Coastal Commission
10-day
Appeal
CCC
Prepare &
Distribute
Staff Report

CCC Mtg
Sept. 9-11

Construction
(mid-Oct to March 1)
2015 2015
M
P
R
W
A

T
A
C

M
e
e
t
i
n
g
,

1
0
/
9
/
2
0
1
4

,

t
e
m

N
o
.

8
.
,

t
e
m

P
a
g
e

4
,

P
a
c
k
e
t

P
a
g
e

2
2
FULL SCALE EIR & CCC/LCP SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]
Exported on July 6, 2014 8:34:55 PM MST
M
P
R
W
A

T
A
C

M
e
e
t
i
n
g
,

1
0
/
9
/
2
0
1
4

,

t
e
m

N
o
.

8
.
,

t
e
m

P
a
g
e

5
,

P
a
c
k
e
t

P
a
g
e

2
3
CEMEX TEST WELL SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]
M
P
R
W
A

T
A
C

M
e
e
t
i
n
g
,

1
0
/
9
/
2
0
1
4

,

t
e
m

N
o
.

8
.
,

t
e
m

P
a
g
e

6
,

P
a
c
k
e
t

P
a
g
e

2
4
M
P
R
W
A

T
A
C

M
e
e
t
i
n
g
,

1
0
/
9
/
2
0
1
4

,

t
e
m

N
o
.

8
.
,

t
e
m

P
a
g
e

7
,

P
a
c
k
e
t

P
a
g
e

2
5
FULL SCALE PLANT & PIPELINES SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]
M
P
R
W
A

T
A
C

M
e
e
t
i
n
g
,

1
0
/
9
/
2
0
1
4

,

t
e
m

N
o
.

8
.
,

t
e
m

P
a
g
e

8
,

P
a
c
k
e
t

P
a
g
e

2
6
POTRERO CONTINGENCY PERMITTING SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]
M
P
R
W
A

T
A
C

M
e
e
t
i
n
g
,

1
0
/
9
/
2
0
1
4

,

t
e
m

N
o
.

8
.
,

t
e
m

P
a
g
e

9
,

P
a
c
k
e
t

P
a
g
e

2
7

Agenda Report

Item No: 9.


SUBJECT: Receive Report And Discuss A "Decision Tree" For Slant Well Alternatives
And Options Including A Potential Move To The Protrero Rd Site.

RECOMMENDATION:

Staff recommends that the TAC receive report from Cal Am on a "decision tree" for
alternatives to the CEMEX slant well site including the Protrero Road Option. This was
requested by the TAC at its meeting of September 8, 2014.

DISCUSSION:

CEMEX has recently denied Cal Am access to the test well site, raising a serious
question as to the long term availability of the site for the slant wells

Cal Am has been requested to discuss the decision process(Exhibit A) to be followed to
insure a timely move to alternative locations such as Protrero Road.

EXHIBITS:

A-MPWSP Test Well Timeline

Appeal Period 21 Calendar Days (MMC
17.41.090.D.4) (7/23 8/13)
Issue CDP
(8/14)
DRILLING WINDOW
~11/1/14 3/1/15
CCC Considers
CDP
Application De
Novo,
Potentially
Causing CAW
to Miss 2014-
15 Drilling
Window
Consider
Legal
Challenge
and/or or
Pursue
Different
Project
Location
CCC Consideration of CDP Applications / Hearing:
9/10-12 (North Coast Area);
NOTE: CCC Decision Moots CEQA Challenges to City CDP
SHPO
Review and
Consultation
re. Cultural
Resources
Assessment
(5/1 5/30)

Additional Technical Studies, Including:
Primary/Secondary Habitat Assessment; Cultural
Resources Assessment; Geotechnical Report;
Coastal Hazard/Wave Run-up Study; Project
Description
(Present 4/30)
Draft Admin Proposed MND/EA
(Present 4/25)
Review Draft Proposed MND/EA (4/25
4/30)
Public Review / Comment re.
Proposed MND 30
Calendar Days (14 CCR
15073(a)) (5/2 6/1)
Response to
Comments, Final
MND, Notice of
Proposed Action on
CDP Application
(6/1 6/20)
Final
Cultural
Resources
Assessment
(6/1 6/6)
Notice Period 10 Calendar Days (MMC
17.41.090.D.1) (6/21 7/1)
Planning Commission Meeting MND and
CDP Application (7/2)
Appeal Period 7 Business Days (MMC
17.41.090.D.2) (7/3 7/9)
City Council Meeting to Hear Any Timely
Filed Appeal (7/22)
Notice of Intent to Adopt MND (14 CCR 15072) (5/1)
Notice Period 10 Calendar Days (MMC
17.41.090.D.2) (7/10 7/21)
CCC Hearing re. Appeal w/in 49 days
(Before 10/1) Does Appeal Raise
Substantial Issue?
Y N
Complete Pre-
Drilling
Conditions in
Permit (60
Days); Drill
Test Well (90
days) Target
Completion
2/9/15
CDPs
Approved by
CCC?
Y N
CCC Potentially
Combines Appeal
Hearing with CDP
Application
Hearing
Appeal to City
Council Filed?
Y
N
MND /CDP
Approved by
PC?
Y
N
Appeal to CCC
Filed?
Approved by
City Council?
Y
N
N
MBNMS
Review
EA (4/28
5/16)
Draft EA
5/19
5/30)
Public Review /
Comment re. EA
30 Calendar
Days
(6/1 7/1)
Admin
Draft
FONSI
(6/23
7/25)
MBNMS
Review
FONSI
(7/28
8/22)
Final
FONSI
(8/25
9/5)
MBNMS
Authoriz
ation /
FONSI
(9/8
9/19)

State & Federal Agency
Project Referral
(Present -2/28)
Y
CCC Staff
Review of
CDP
Application
(Ongoing /
In Process)
Submit Any
Additional
Studies or
Information
Requested
by CCC
(Ongoing /
In Process)
CDP
Application
Deemed
Complete
MPWSP TEST WELL TIMELINE - DRAFT FOR DISCUSSION PURPOSES - 3/3/14
Agenda Report

Item No: 10.


SUBJECT: Discuss The Issue Of "Stranded Costs" And Make A Recommendation To
The Water Authority.

RECOMMENDATION:

Staff recommends that the TAC receive report from the Water Management District and
from Cal Am as to the potential for stranded costs associated with the MPWSP.

DISCUSSION:

The issue of stranded costs has been raised by members of the public at a number of
past TAC and Water Authority meetings. At its last meeting, the TAC requested a
presentation on potential stranded costs.

Dave Stoldt and Ian Crooks have been asked to give us their best analysis of the
problem at the meeting.


TAC MPRWA Special Meeting Agenda Packet 10-09-14

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

TAC MPRWA Special Meeting Agenda Packet 10-09-14

Transféré par

Droits d'auteur :

Formats disponibles

Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

Vous aimerez peut-être aussi