Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

Technical Advisory Committee (TAC)
Regular Meeting
10:30 AM, Monday, March 2, 2015
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.

February 2, 2015
AGENDA ITEMS

2.

Receive Report on the Status of The Definitive Agreement for the Groundwater
Replenishment / PureWater Monterey (GWR/PWM) Project -Stoldt/Israel

3.

Receive Report and Discuss the Latest Information on Public Funding, Including Bond
Financing, for the MPWSP and for GWR- Stoldt

4.

Discuss Preparations for Review of the Desal DEIR Scheduled for Release in April 2015. Cullem

5.

Receive and Discuss the Current "Detailed" MPWSP Critical Path Schedule for Permits &
Approvals - Crooks
ADJOURNMENT

Created date 02/27/2015 11:28 AM

Monday, March 2, 2015
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
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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.

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: March 02, 2015

Item No: 2.

Executive Director Cullem

SUBJECT: Receive Report on the Status of The Definitive Agreement for

the Groundwater Replenishment/Pure Water Monterey
(GWR/PWM) Project
RECOMMENDATION:
It is recommended that the TAC receive an update on the efforts of the
Pollution Control Agency and the Water Management District in securing
the bi-lateral agreements necessary to secure a Definitive Agreement for
source and product water for the Ground Water Replenishment (GWR)
project by the recently revised date of May 2015.
DISCUSSION:
At its meeting of December 1, 2014, the TAC received and discussed the
"Roadmap for a Definitive Agreement on Source Waters and Water
Recycling". Progress was updated at the TAC meeting of February 2015.
As the completion date is fast approaching, the TAC should remain
informed of its progress.
ATTACHMENTS:
Roadmap for a Definitive Agreement on Source Waters and Water
Recycling as provided December 1, 2014.

06/12

Roadmap for a Definitive Agreement

On Source Waters and Water Recycling
Task Area 1: Definitive Legal Agreement(s)

October

Nov-March

December 31
January
January/Feb
March

Meet to determine who drafts and timeline for drafting and review; Attorneys
provide first draft; Stakeholder group provides review; Public discussion
Identify and begin drafting other agreements as necessary; Determine
role/relationship to Definitive Agreement
MRWPCA MCWRA Fourth Amendment
MRWPCA Salinas Operations and Financing Agreement
MRWPCA Monterey Stormwater Agreement
MRWPCA MCWD Pipeline Lease Agreement
MPWMD MRWPCA Recycled Water Purchase Agreement
MPWMD Cal-Am Wholesale Water Sales Agreement
MRWPCA MCWRA Accounting Protocol Agreement
First Draft of Definitive Agreement circulated
Public Outreach; Modifications as necessary
Definitive Agreement Finalized

Task Area 2: Water Availability & Water Quality

Oct Nov
Dec-Jan

Fisheries review
Review water availability assumptions; Discuss operational issues; Wet year,
dry year, average year considerations; Impact on facilities & costs

Task Area 3: Financial Issues

October
Oct Jan
Nov-Dec

Dec-Jan
February
February
February
March

10% Design Capital Costs identified

Rate Study to develop interruptible rate for cost of treatment
Meet with stakeholders to discuss pro rata share and amount of capital costs
And initial Prop 218 strategies
Develop alternative CSIP funding allocations & Prop 218 strategies
rd
3 Party review of costs/facilities
Public Outreach
Finalize estimated costs, allocations, and Prop 218 strategy
Incorporate into Definitive Agreement

Task Area 4: Water Rights

October
November

January

April

Meet to establish strategy for water rights application

Meet with new SWRCB staffer; Tour of area facilities;
Confirm strategy for water rights application
Determine if project appears to be moving forward; Prepare revision to
Water rights application
If Definitive Agreement reached, file amended water rights application

Monterey Peninsula Regional Water Authority

Agenda Report

Date: March 02, 2015

Item No: 3.

Dave Stoldt, General Manager MPWMD

FROM:

SUBJECT: Receive Report and Discuss the Latest Information on Public

Funding, Including Bond Financing, for the MPWSP and for

GWR.
RECOMMENDATION:

It is recommended that the Water Authority TAC receive an update on the

detailed report on Public funding that was previously provided to the Water
Authority.
DISCUSSION:

Below is the information provided by Dave Stoldt in an addendum to the

Water Authority on Sept 11, 2014;
"Senate Bill 939 is the legislation that allows a contribution of public
financing in support of the Cal-Am desalination facility in order to reduce
the costs to ratepayers. It was signed by the Governor in September 2014.
As now permitted by the new law, the Settling Parties have agreed to ask
the California Public Utilities Commission to issue a Financing Order in
concert with its Certificate of Public Convenience and Necessity (CPCN) for
the desalination project that would direct Cal-Am to utilize the Water Rate
Relief financing as a component of its funding plan.
In addition, the voters approved a new Water Bond in November 2014.
A summary of the bill has been posted on the Water Authority web page.
Of the $7.5 billion, only approximately $2.4 billion will be relevant to the
needs of the Monterey Peninsula, with Chapter 9 specifically allocation
$725 million to water recycling and desalination."

06/12

Amount
Section in
AB 1471
($million)
Ch. 5

$520

Ch. 6

$1,495

Ch. 7

$810

Amount
Relevant Discussion
To
Monterey
Peninsula
$0
Water quality for small and disadvantaged
communities; Unlikely to help Peninsula,
but would be relevant to assist Watsonville
and other impaired areas of the County;
However, limits construction grants to $5
million ($20 million for regional projects)
which doesnt help enough.
$505
Most of this money is earmarked. Of
$302.5 million in Section 79731 only
$100.5 is to the State Coastal Conservancy
and most of that will be expended
elsewhere; Other possible moneys include
Section 79733 with $200 million for
enhanced stream flows, Section79735(b)
with $20 million for urban watersheds, but
25% is earmarked for disadvantaged
communities, and Section 79737 with $285
million for watershed restoration outside of
the Delta. All other monies in this Chapter
are earmarked for elsewhere in the State.
$343
Section 79744 is $510 million of
geographic funding through the IRWM
program. The Central Coast has only $43
million authorized. In earlier Rendon and
Hueso bills, $58 million was targeted for
the Central Coast region. In the June
revision to SB 848 (Wolk) the regional
amount was $85 million. This is a

reduction.

Ch. 8

$2,700

$0

Ch. 9

$725

$725

Ch. 10

$900

$730

Ch. 11

$395

$100

TOTAL

$7,545

$2,403

However, we favorably view Section 79746

with $100 million for water conservation
and Section 79747 with $200 million for
stormwater. However, this is a reduction
for stormwater from $500 million in the
June version. We on the Central Coast are
faced with other California regulatory
mandates to eliminate stormwater
discharges to Areas of Special Biological
Significance (i.e. Monterey Bay) so a
higher funding level is preferred and
assurances that ocean dischargers can
compete for the funds is needed. Prop
84s stormwater rules excluded ocean
dischargers.
State Water Project, CALFED, Bay-Delta
only.
We love this. Includes water recycling,
desalination, and potable reuse. This is up
from $500 million in the June version.
We might be able to apply for funding of the
Aquifer Storage and Recovery or Groundwater
Replenishment projects here, but will be a stretch.
10% set aside for disadvantaged communities.
This is primarily a Delta levee protection chapter.
However, the Carmel River lagoon barrier and
other flood control measures would compete for
crumbs of the remainder.
Source: MPWMD 8-19-14

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: March 02, 2015

Item No: 4.

Executive Director Cullem

SUBJECT: Discuss Preparations for Review of the Desal DEIR Scheduled

for Release in April 2015.
RECOMMENDATION:
It is recommended that the TAC discuss preparations for review of the
Desal DEIR scheduled for release by the CPUC in April 2015.
DISCUSSION:
On January 23, 2015,The CPUC Administrative Law Judge delayed the
circulation of the Cal Am Desal DEIR until April of 2015 in order to allow
data from the test slant well to be available. He also increased the period of
time available for public comment and preparation of the FEIR.
Whenever the DEIR finally is circulated, the TAC will be tasked with
reviewing it and advising the Water Authority Board as appropriate. The
TAC members are asked to discuss preparations for that review.
ATTACHMENTS:
ALJ Ruling of January 23, 2015 and revised CPUC schedule.

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-

January 5, 2015
Schedule and Task List for MPWSP Post Settlement (REV January 5, 2015)
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
Informational Hearing on
Settlement Agreements
Quarterly Check-in Call
with Settling Parties
Quarterly Check-in Call
with Settling Parties
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

Due Date
August 30, 2013

Responsible Party

September 13, 2013

Complete

September 16, 2013

Complete

December 2-3, 2013

Complete

January 2015

MPRWA

April 2015

MPRWA

April 2015

CPUC

15 days after issuance

of DEIR

Cal-Am

60 days from April

2015 DEIR

All

Common Outline
Opening Briefs filed and
served on legal and policy
issues

75 days after
issuance of April 2015
DEIR

All

Quarterly Check-in Call

with Settling Parties
All Party Meeting
Reply Briefs filed and
served on legal and policy
issues
FEIR published

July 2015

CPUC

July 2015
15 days from Opening
Briefs

All

October 2015

CPUC

December 2015

CPUC

December
2015
October 2015

MPRWA

January 2016
January 2016

MPRWA

Proposed
Decision addressing
certification of FEIR and
issuance of CPCN
Target for Commission
Action on Phase I
Quarterly Check-in Call
with Settling Parties
All Party Meeting
Quarterly Check-in Call
with Settling Parties
Proposed Phase I
015621\0002\11796403.2
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Notes
Complete

February 2016

January 5, 2015
Task
Decision on Commission
Agenda

015621\0002\11796403.2
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Due Date

Responsible Party

Notes

January 5, 2015
GWR
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

Completed

6 Party Joint MOU

Approved mid-Oct 2014

MRWPCA

Meet & Confer in

Progress for Definitive
Agreements (March
2015)

Obtain Representations
from DPH re Use of
Extracted GWR Water

June 2014

MRWPCA

Dept Public Health

Concept Project
Approval received
June 2014

GWR Basis of Design

Complete with At Least
10% Design

October 2014

MRWPCA

DEIR Circulated

March 2015

MRWPCA

Storage Agreement with

Seaside Basin
Watermaster

April 2015

MRWPCA & MPWMD

Draft WPA

April 2015

MPWMD & Cal-Am

GWR Financing Plan

Sufficient for SRF
Funding
Agreement on Terms of
WPA
Perform Revenue
Requirement Analysis
Including Any Debt
Equivalency Effect
Perform Assessment of
GWR Externalities
Project Approved and
FEIR Certified
CPUC Testimony Phase
Commences
CPUC Evidentiary
Hearings
All Permits for GWR
Construction Obtained
Target for CPUC Action
on Phase 2 Decision

May 2015

MRWPCA & MPWMD

June 2015
June 2015

Cal-Am, MRWPCA,
&MPWMD
MRWPCA & MPWMD

June 2015

MRWPCA & MPWMD

September 2015

MRWPCA

November 2015

Cal-Am, MRWPCA,
MPWMD, CPUC
Cal-Am, MRWPCA,
MPWMD, CPUC
MRWPCA

015621\0002\11796403.2
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Completed

January 2016
February 2016
June 2016

Cal-Am, MRWPCA,
MPWMD, CPUC

Coord w/Cal Am DEIR

For Major Permits

Schedule May Change
as Advised Per ALJ
Weatherfords

January 5, 2015
01/23/2015 Order

015621\0002\11796403.2
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January 5, 2015
Source Wells
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

November 2014

Cal-Am

Drill CEMEX Site Test

Well
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 2015

Cal-Am

Coastal Commission
Approved; MCWD
CEQA SUit
Started construction

March 2015 February

2016
?

Cal-Am
Cal-Am

Nov. 2016, or sooner

Cal-Am

Nov. 2016, or sooner

Cal-Am

015621\0002\11796403.2
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Delayed, related to
above
Delayed, related to
above

Completed

January 5, 2015
Securitization

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

October 2013

MPWMD

Complete

Revise Financial
Comparison of
Securitization v. Cal-Am
Financing

October 2013

MPWMD & Cal-Am

On-Going

Meeting with
Community/Interest
Groups and Cities

October-December
2013

MPWMD & MPRWA

Complete

Further Revise
Legislation as
Necessary

October-November
2013

Draft Summary of
Legislation

December 2013

Introduce Legislation

January 2014

Lobbying Effort

February-April 2014

Governor Signed

Sept 19, 2014

Initial Draft of Motion for

Financing Order

March 2015

MPWMD

Perform Analysis to
Demonstrate Annual
Customer Benefits
Exceed 1.0% of Total
Annual Revenue
Requirement

March 2015

MPWMD & Cal-Am

Application for
Financing Order

May 2015

MPWMD

015621\0002\11796403.2
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Complete

MPWMD

Complete

Complete
MPWMD, MPRWA, &
Cal-Am

Complete

Complete

January 5, 2015
Order on securitization
financing on satisfaction
of remaining criteria
from Settlement K

Obtain CPUC Financing

Order

November 2015

Drafting of Bond
Documents

January - April 2016

MPWMD & Cal-Am

Preliminary Discussions
with Rating Agencies

February-April 2015

MPWMD

Issuance of Public Bond

Financing

Q2 Q3 2016

MPWMD

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FULL SCALE PLANT & PIPELINES SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]

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