tac mprwa regular meeting agenda packet 07-01-13

7/28/2019 TAC MPRWA Regular Meeting Agenda Packet 07-01-13

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AgendaMonterey Peninsula Regional Water Authority (MPRWA)

Technical Advisory Committee (TAC)Regular Meeting

2:00 PM, Monday, July 1, 2013Council Chamber580 Pacific Steet

Monterey, California

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM TAC MEMBERS

PUBLIC COMMENTSPUBLIC COMMENTS allows you, the public, to speak for a maximum of three minutes on anysubject which is within the jurisdiction of the MPRWA TAC and which is not on the agenda. Anyperson or group desiring to bring an item to the attention of the Committee may do so byaddressing 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 appropriatestaff person will contact the sender concerning the details.

APPROVAL OF MINUTES

1. June 3, 2013

AGENDA ITEMS

2. Receive Update and Provide Recomendations Regarding Draft Power PurchaseAgreement Term Sheet

3. Receive Report and Discuss California Public Utilties Hosted Ground WaterReplenishment Workshop on June 12, 2013

4. Receive Update, Discuss and Provide Direction from Cal Am on Status of the MontereyPeninsula Water Supply Project

a. Status of the Test Well Application Permits

b. Status of the CPUC Application A-12.04.019

5. Receive Report and Discuss Public Outreach Opportunities Including Action Minutes forthe TAC and Reproduction of Published Information

6. Discuss and Approve Future Meeting Dates and Agenda Items

ADJOURNMENT


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Created date 06/28/2013 2:01 PM Monday, July 1, 2013

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The Monterey Peninsula Regional Water Authority is committed to include the disabled in all ofits services, programs and activities. For disabled access, dial 711 to use the California RelayService (CRS) to speak to staff at the Monterey City Clerks Office, the Principal Office of theAuthority. CRS offers free text-to-speech, speech-to-speech, and Spanish-language services24 hours a day, 7 days a week. If you require a hearing amplification device to attend ameeting, 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 publicinspection during the meeting or may be requested from the Monterey City Clerks Office at 580Pacific St, Room 6, Monterey, CA 93940. This agenda is posted in compliance with CaliforniaGovernment Code Section 54954.2(a) or Section 54956.


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M I N U T E SMONTEREY PENINSULA WATER AUTHORITY (MPRWA)

TECHNICAL ADVISORY COMMITTEE (TAC)Regular Meeting

2:00 PM, Monday, June 3, 2013COUNCIL CHAMBER

580 PACIFIC STREETMONTEREY, CALIFORNIA

Members Present: Huss, Israel, Riedl, Burnett,

Members Absent: Narigi, Stoldt, Riley,

Staff Present: Legal Counsel, Executive Director, Clerk

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM TAC MEMBERS

Chair Burnett invited reports from TAC members and staff. Member Huss reported that he hadan opportunity to tour the Orange County Waste Water Production Facility and was veryimpressed. He believes it to be part of the solution to water shortages throughout California.Member Israel indicated the Notice to Proceed (NOP) for the Environmental Impact Report hasbeen released for the Groundwater Replenishment project (GWR). A scoping session to

receive comments on the NOP will take place June 18th, 2013 at the Oldemeyer Center from6:00 p.m. to 8:00 p.m. Written comments will also be accepted.

Chair Burnett reported about a modification to the schedule for the release of the EnvironmentlaImpact Report (EIR) for the Monterey Peninsula Water Supply Project (MPWSP). JudgeWeatherford released a revised schedule for the MPWSP EIR in order to provide more time fordevelopment of hydrogeological evaluations for inclusion. Chair Burnett indicated that having astrong EIR will benefit both the GWR and the MPWSP. Also, to understand how this impactsthe timing of the project he will request Cal Am to present a revised schedule. He then reportedthat settlement discussions are ongoing and the final settlement agreement is due by June 14,2013. June 12, 2013 the Public Utilities Commission (PUC) will host a workshop on GWR inSan Francisco and will be open to the public. The GWR component of the settlement

agreement is due by June 28th, 2013. Chair Burnett next reported that staff from the StateWater Resources Control Board will be in Monterey On June 4, 2013, at which the Authority willmake a presentation about our progress, and the level of local consensus for the proposedsolutions and will not raise the issue of an extension at this time.

Finally, Chair Burnett welcomed the new Executive Director Jim Cullem to the Authority, takingthe place of Bill Reichmuth. Mr. Cullem responded that he appreciated the opportunity to serveand collectively get a solution to the water issue.


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MPRWA TAC Minutes Monday, June 3, 2013

2

PUBLIC COMMENTS

Chair Burnett opened the agenda for public comment and Sue McCloud requested informationregarding the State Water Resources Control Board meeting.

APPROVAL OF MINUTES

1. May 6, 2013Action: Approved

2. May 23, 2013 Special MeetingAction: Approved as Amended

AGENDA ITEMS

3. Review and Provide Direction Regarding Term Sheet for Power Sales Agreement from theMonterey Regional Waste Management District to Cal Am for Powering Desalination FacilitiesAction: Received Presentation and Discussed

William Merry, General Manager from the Monterey Regional Waste Management Districtpresented the report and indicated that meetings have been ongoing for development of a termsheet for power sales for the desalination facility. He noted that the Districts interest is todevelop a term sheet in good faith to discuss the purchase of the District's power. At this point,it is premature to discuss the technical aspects, however no fatal flaws have been identified, butmatching up the supply and demand and determining a fair price will be key. Mr. Merry laid outthe schedule for the possible next steps and indicated a next draft should be available by the

end of this week. Mr. Merry answered questions from the TAC.

Executive Director Cullem indicated he will facilitate a meeting later this week, with theAuthority acting as a mediator/facilitator for the sale and purchase of power between MRWMDand Cal Am. Mr. Cullem requested one representative from each the Authority and Cal Am tomeet with the District to be able to develop a true working draft before it is presented forapproval. Member Reidl agreed to participate.

Chair Burnett questioned the Districts ability at this time to deliver the quality and quantity ofpower to meet the demands of the project. Mr. Merry indicated they are not adequate at thistime, but as soon as the true needs are determined, the District can begin to address. ChairBurnett then questioned what the priority would be, price or purchase of renewable power.

Chair Burnett responded that Cal Am has previously indicated that the alternative sources ofpower cannot be more expensive than non-environmental power and that the Authority has nottaken a position on it, but the idea for paying even more for renewable power was not been metwith enthusiasm.

Member Israel indicated it is not strictly who can provide the cheapest rates, but depends onthe index to which it is adjusted.


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Chair Burnett opened the item to public comment and had no requests to speak.

Member Israel spoke to Mr. Merry's expertise and questioned if there was a need to hire aspecialist. Chair Burnett requested the Executive Director to provide advice to the TAC at afuture meeting if a specialist is needed for either legal or technical expertise.

4. Discuss and Make Recommendations Regarding Revised Ground Water Replenishment DraftCriteria (Stoldt/Israel)Action: Received Presentation, Discussed and Made Recommendations

Chair Burnet spoke to the item and indicated no action is needed, but requested feedback andopportunity for comments. He indicated that the proposed criteria is indented for use during theJune 12, 2013 GWR workshop. The previously developed criteria was forwarded to the CPUC,but returned because it was not appropriate for a tier two advice letter. Trying to honor thecriteria already approved, the proposed criteria was the result after a Governance Committeemeeting, and includes more objectivity and less subjectivity. He requested the revised draftGWR criteria distributed at this meeting be available on the Authority website www.mprwa.org.Chair Burnett spoke to revisions made from the previously discussed version and the TAC

discussed.

Chair Burnett opened the item to public comment and had no requests to speak.

Member Huss indicated that having the growers involved is of key importance and there is goodopportunity for a successful water supply from the GWR project. He things the agriculturalcommunity will be satisfied with the language included to secure the source water.

Chair Burnett indicated he will incorporate any additional information which comes from theworkshop.

5. Receive Update and Discuss the Draft Request for Proposal for Design Build Services for theMonterey Peninsula Water Supply ProjectAction: Received Presentation and Discussed

Chair Burnett reported on this item and indicated that the recommendations provided by theTAC were approved by the Directors and the Governance Committee and forwarded to Cal Amrequesting incorporation. He confirmed that Cal Am has verbally agreed to incorporate all therecommendations into the final Request for Proposal. He noted that is unclear if the RFP willstill stay on the current schedule with the CPUC ruling delaying the EIR release date.

Member Riedl questioned the early completion bonus and expressed concern for the risk ofhaving a bidder propose a longer schedule, in order to capture a bonus. He also recommended

considering a bonus if the firm could bring a portion of the wells online in advance of the fullcompletion as a way to make progress toward the Cease and Desist Order. Chair Burnett andthe TAC agreed that would be a good recommendation and would pass along the request eventhough it is past the formal deadline.

Chair Burnett opened item to public comment and had no requests to speak.

Executive Director Cullem requested support for reproducing the article The Path To Your Tappublished June 2, 2013 in the Monterey Herald. He indicated the Authority could benefit from


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already produced materials to be utilized as a resource for public outreach. The TAC agreedwith the request.

ADJOURNMENT

With no other business to come before the authority, Chair Burnett adjourned the meeting at

3:14 p.m.

Respectfully Submitted, Approved,

Lesley Milton, Authority Clerk Jason Burnet, TAC Chair


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Monterey Peninsula Regional Water Authority

Agenda Report

Date: July 01, 2013

Item No: 2.

06/12

FROM: Executive Director Cullem

SUBJECT: Receive Report, Discuss and Provide Regarding Draft Power PurchaseAgreement Term Sheet

RECCOMENDATION:

Staff is requesting the Authority to review the minutes of the power purchase agreementmeeting of June 6, 2013 and provide direction.

ATTACHMENTS:

Minutes of the June 6, 2013 Power Purchase Agreement Meeting

Draft Term Sheet


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DRAFTJune 5, 2013

TERM SHEET

for

Primary Terms for New Power Sales Agreement (PSA) betweenMonterey Regional Waste Management District (MRWMD) and

California American Water Company (CalAm)

Commercial Terms:

Project Definition - The project will be that the MRWMD (District) will generate electrical power and provide thatpower to the proposed desalination plant owned and operated by CalAm, a regulated utility, operating within theMonterey Peninsula Water Management District.

Unit Contingent: The existing Power Purchase Agreements (PPA) with PG&E and 3Phases Renewables are unitcontingent agreements, that is the District is only obligated to supply power when power is produced.

Installed Capacity: The current actual installed capacity 5 MW. The future planned 3 additional MW. Capacity of thetransformer 5 MW plus a second 5 MW backup.

Contract Amount (annual quantity): The proposed annual MWH to be delivered for planning purposes not contractual.- Current Power output: 5 MW, minus District usage (0.5 MW)- Projected Power output; 7 MW by xx/xx/20xx , minus District usageExcluding the existing commitments described above, MRWMD will be able to divert as much power as needed toneighboring adjacent parcels. Power Demand by CalAm- Xx MW Average- Xx MW Peak-

Xx MW Seasonal

Minimum or Guaranteed Amount: Amount of MWH that will be a contractual obligation to supply and to purchase.

Product Definition (energy, capacity, green attributes, voltage stabilization): The Product has to be defined; Energy vs.RECs, Capacity, and other attributes.- Product is the electricity and Renewable Energy Credits (RECs) from all engine/generators from the existing

MRWMD power plant less District usage.- Ownership of Renewable Energy Credits (RECs) to be discussed.Availability: Hours that facility is operating; a level of 85% is a normal quality operational level.

Term of Agreement:- Ten year agreement; longer term?.Security: Financial assurances for performance.

Delivery Point: This will have to be defined. The normal delivery point is close to the outlet of the transformer (thehigh side) physically and contractually at the meter used to measure the power.

Delivery Voltage: The current voltage at the high side of the transformer is 21,000 volts. Generators produce at 4,160volts.

Metering: Real time metering at the delivery point for purposes of calculating payments; revenue grade meter.


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Interconnection Issues: A normal utility contract will have a separate interconnection agreement, an engineering studyon the impact to the system, the load on the existing lines, the metering, the safety issues, shut downs, etc. T

Cost of Studies: Who performs, pays, etc.

Project Start Date: Contingent on construction, etc.

- Effective date is January 1, 20__ or as soon as possible thereafter.Existing Contractual Obligations to Sell Power

Price: Separate pricing for each attribute; escalation; tied to an index?- Baseload price of $0.xxxx dollars/kWh- Annual Cost of Living Price Adjustments of xxxBackup Power: Stand by power. Responsibility of CalAm.- Interruption of Power

o By CalAmo By District

Excess Power in the Future:- Additional Power Output generated by additional landfill gas engine/generators installed by the District may/may

not become subject to the terms of the PSA

End of Term Options: At the end of the contract, MRWMD will discuss future contact options for this, and anyadditional power developed, with CalAm before committing to selling the power to another buyer. Options forextension?

- Use the Standard Form for Power Sales

June 5, 2013 o:\wmm\lfg\mprwa\psa draft calammrwmd_revised 6.5.13.docx


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DRAFTJune 5,2013

TERM SHEETfo r

Primary Terms for New Power Sales Agreement (PSA) betweenMonterey Regional Waste Managem ent Distr ict (MRWMD) andCalifornia American Water Com pany (CalAm)Com merc ial Terms:Project Definition - The project will be that the MRWMD (District) will generate electrical power and provide thatpower to the proposed desalination plant owned and operated by CalAm, a regulated utility, operating within theMonterey Peninsula Water M anagement District.Unit Contingent: The existing Power Purchase Agreements (PPA) with PG&E and 3Phases Renew ables are unitcontingent agreements, that is the District is only obligated to supply power when power is produced.Installed Capacity: The current actual installed capacity 5 MW. The future planned 3 additional MW. Capacity of thetransformer 5 MW plus a second 5 MW backup.Contract Amount (annual quantity): The proposed annual M WH to be delivered for planning purposes not contractual.- Current Power output: 5 MW, minus District usage (0.5 MW)- Projected Power output; 7 MW by xx/vd2Oxx , minus District usageExcluding the existing commitments described above, MRW MD will be able to divert as much power as needed toneighboring adjacent parcels. Power Demand by CalAm- Xx MW AverageXx MW Peak- Xx MW SeasonalMinimum or Guaranteed Amount: Am ount of MW H that will be a contractual obligation to supply and to purchase.Product Definition (energy, capacity, green attributes, voltage stabilization): The Product has to b e defined; Energy vs.RECs, Capacity, and other attributes.- Product is the electricity and Renewable Energy Credits (RECs) from all engine/generators from the existingMR WM D power plant less District usage.- Ownership of R enewable Energy Credits (RECs) to be discussed.Availability: Hours that facility is operating; a level of 85% is a normal quality operational level.Term of Agreement:- Ten year agreement; longer term?.Security: Financial assurances for performance.Delivery Point: This will have to be defined. The normal delivery point is close to the outlet of the transformer (thehigh side) physically and contractually at the meter used to measure the power.Delivery Voltage: The current voltage at the h igh side of the transformer is 21 ,000 volts. Generators produce at 4,160volts.Metering: Real time metering at the delivery point for purposes of calculating payments; revenue grade meter.

t


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Interconnection Issues: A norm al utility contract will have a separate interconnection agreement, an engineering studyon the im pact to the system, the load on the existing lines, the m etering, the safety issues, shut downs, etc. TCost of Studies: Who performs, pays, etc.Project Start Date: Contingent on construction, etc.- Effective date is January 1, 20_ or as soon as possible thereafter.Existing Contractual Obligations to Sell PowerPrice: Separate pricing for each attribute; escalation; tied to an index?- Baseload price of $0.xxxx dollars/kWh- Annual Cost of Living Price Adjustments of xxxBackup Power: Stand by power. Responsibility of CalAm.- Interruption of Pow ero By CalAmo By DistrictExcess Power in the Future:- Additional Power Output generated by additional landfill gas engine/generators installed by the District may/maynot become subject to the terms of the PSAEnd of Term Options: At the end of the contract, MRWMD will discuss future contact options for this, and anyadditional power developed, with CalAm before comm itting to selling the power to another buyer. Options forextension?- Use the Standard Form for Pow er Sales

June 5, 2013:\wmmmprwa\ps draft calammrwmd_revised 6513.docx


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Agenda Report

Date: July 01, 2013

Item No: 3.

06/12


SUBJECT: Receive Report and Discuss California Public Utilities Hosted Ground WaterReplenishment Workshop on June 12, 2013

RECCOMENDATION:

There is no report for this item. An oral report will take place at the meeting.

ATTACHMENTS:

1) Criteria for GWR Recommendations (as modified after GWR Workshop)


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CRITERIA FOR THE GWR RECOMMENDATIONBY THE

GOVERNANCE COMMITTEE

FOR THE

MONTEREY PENNINSULA WATER SUPPLY PROJECT

A. Purpose and Intent. The criteria below are intended for use by the GovernanceCommittee in making1the GWR Recommendation as to whether Cal-Am should build, inApplication A.12-04-019, a 6.4 MGD desalination plant combined with a water purchaseagreement for the product water of the Groundwater Replenishment (GWR) Project of theMonterey Regional Water Pollution Control Agency (MRWPCA) or, alternatively build a 9.6MGD desal plant without a water purchase agreement for the GWR product water.

2In

determining whether completion or substantial compliance is demonstrated on the following

criteria, the Governance Committee shall take into consideration the relative progress and thecomparative stages of development of each of the two projects, Cal-Ams Desal Project andMRWPCAs GWR Project.

B. The Criteria.1. The CEQA process for the GWR Project is complete, with a certified Final

Environmental Impact Report, the MRWPCA has approved the Project, andthe status of required permits is consistent with the published project schedule.

2. Agreements or other determinations are in place or reasonably advanced inprogress to secure the source water(s) necessary to produce at least 3,500 afyfor recommended project.

3. The advisory committee appointed by the California Department of PublicHealth to monitor the ______, to the extent feasible, has expressed areasonable level of acceptance or approval as to the GWR treatment process,injection and overall permitting, consistent with the stage of development ofthe Project.

4. The costestimated first-year revenue requirementto pay for the ofwateroffrom the GWR Project (including an estimate of debt equivalency balancing ifestimated to be necessary) is $_______ or less.3

1Assuming the California Public Utilities Commission (CPUC) approves California American Water Companys (Cal -

Ams) participation in the Agreement to Form the Governance Committee.

2 The same, or similar, criteria may be used by the CPUC at such time as it may review the GWR Recommendationof the Governance Committee upon submittal of same by Cal-Am for a Tier 2 Advice Letter.

3This number will be determined by the parties to proceeding A.12-04-019.

Formatted: Font: Not Bold


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5. The GWR Project is on schedule, as verified by a letter issued by an engineerlicensed in California, to be operable prior to the then-effective date of theCease and Desist Order of the State Water Resources Control Board or, if not,on schedule to meet or beat the desal project schedule.

6. Preliminary design for the GWR Project is at least at the 10% level,represented by a basis of design report, (so that an accurate project costestimate can be generated) or is at a level similar to or more advanced than thelevel of design for the entire desal project.

7. The required wholesale water purchase agreement has been drafted and theparties thereto (Cal-Am, MRWPCA and the MPWMD) have reachedsubstantial agreement of the terms of the agreement.

4

8.

A project funding plan, sufficient in detail to qualify for a State RevolvingFund loan, is in place.

C. The Process. The timing and process for consideration and action by theGovernance Committee on a GWR Recommendation is set forth at length in Section V.D of theGovernance Committee Agreement. Additional procedures as necessary for the GovernanceCommittees consideration of the matter should include a public hearing at a regular or specialmeeting of the Governance Committee, upon 30 days prior written notice to all parties to

Application A. 12-04-019, and full opportunity for MRWPCA to present reports and evidence todemonstrate to the Governance Committee completion of or substantial compliance with theabove-stated criteria.

4Language may be considered and inserted here relative to the parties negotiating in good faith and not

unreasonably withholding consent to an agreement.


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Agenda Report

Date: July 01, 2013

Item No: 4.

06/12

FROM: Authority Clerk

SUBJECT: Receive Update, Discuss and Provide Direction from Cal Am on Status of theMonterey Peninsula Water Supply Project

RECCOMENDATION:

There is no written report for this item. An oral report will take place at the meeting.

ATTACHMENTS:


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SERVING THE MONTEREY PENINSULA AND SALINAS VALLEY $1.50SUNDAY

Sunday, June 2, 2013

www.montereyherald.com

SPANISH ROOTSFormer mayor featured in documentary

Story on page B1

TWIN BLOWOUTSGiants aces roughed up in St. Louis

Story on page C1

By SEAN MURPHYAssociated Press

OKLAHOMA CITY Its a warfamiliar as a daily prayer for Tornadresidents: When a twister approacheshelter in a basement or low-level

room or closet, away from windows anrior walls.

But with the powerful devastation fMay 20 twister that killed 24 and puthe Oklahoma City suburb of Moetched in their minds, many Oklainstead opted to flee Friday night whelent tornado developed and headed towstates capital city.

It was a dangerous decision to makeInterstates and roadways already

with rush-hour traffic quickly became lots as people tried to escape the onstorm. Motorists were trapped in thecles a place emergency officials sayof the worst to be in a tornado.

It was chaos. People were goingbound in the northbound lanes. Eve

was running for their lives, said Terr51, a teachers assistant in Moore.

Outrunnintornado

bad movfor many

OKLAHOMA STORMS

Jammed roadwaytrapped motorist

twister bore dow

Please see Tornadoes page A9

By PAUL ELIASAssociated Press

SAN FRANCISCO At the heigh

Foreclosurscams undefire from fe

Bid-rigging heavin California

The pathto your

tapWhat you need to know

about the water supply project

By JIM JOHNSONHerald Staff Writer

After nearly two decades ofliving under the threat of losing

a major portion of their watersupply, and after watching aseries of possible solutions fail,many Monterey Peninsula resi-

expected to accomplish. Wealso examine other key ques-tions such as how much it isexpected to cost and who will

pay for it.While new developments willoccur regularly as the project

works its way through the regu-latory process including the

Editors note: Our watersupply is a critical issue, soits critical we understandwhats being done tosecure it. As the MontereyPeninsula Water SupplyProject enters an importantphase in the review

Seemontereyherald.com/desal for related stories,videos and resources on

the Monterey Peninsulasquest for a viable watersource.

MONTEREY PENINSULA A QUEST FOR WATER


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TimelineKey dates in the past

and future:

1995: State water board isorder requiring CalifornAmerican Water to cutfrom the Carmel River.

2003: Adjudication of the Sbasin reduces availablefrom that source.

2004: Cal Am submits app

for the Coastal Water Pwhich results in the regdesalination project.

2009: State water board isorder requiring Cal Am

VERN FISHER

WW.MONTEREYHERALD.COM THE MONTEREY COUNTY HERALD, SUNDAY, JUNE 2, 201

Key playersThe organizations at the

of the Monterey PeninWater Supply Project:

California American Waterwater utility that servesthe Peninsula. This projcompanys proposal.

Monterey Peninsula WaterManagement District: P

water agency working ipartnership with Cal Amaquifer storage and recelement.

Monterey Regional Water PControl Agency: Public athat treats wastewaterregion. It is workingindependently on thegroundwater replenishmcomponent in collaborathe water management

Monterey Peninsula RegionAuthority: Often referrthe mayors water authoa power-sharing agencPeninsula cities, represtheir mayors CarmeOaks, Monterey, PacificSand City and Seaside.Mayor Jason Burnett, tauthoritys vice presidebecome its spokesmanformed to offer publicrepresentation during phearings.

California Public UtilitiesCommission: State agenconsidering Cal Ams ppermit. The PUC ultimadecide the rate structuAm customers. Hearingproject are being oversAdministrative Law JudWeatherford.

Division of Ratepayer AdvoPart of the PUC, it acts voice for Cal Am custom

Salinas Valley Water Coalitgroup of agricultural intconcerned about the imthe project on efforts toseawater intrusion in th

Valley groundwater basState Water Resources Co

Board: Often referred tstate water board. Its ocut back on pumping frCarmel River led to thea new water supply.

Other players: Planning anConservation League, PTrust Alliance, Citizens Water, Surfrider FoundWaterPlus, Marina CoaDistrict, Coalition of PenBusinesses, LandWatchMonterey County, Ag LaTrust.

lf of that would go to paythe actual desal plant.

Ratepayer advocatesrking for the state Publiclities Commission (PUC)ve argued that Cal Ams

st estimates are inflated.ey have called for cost

ps, but company officialsggest that could result ingher costs.Cal Am says it would keepstomers costs downmewhat by placing a sur-arge on their bills beforee project is built. Thateans the company couldt collect its normal profitargin on about00million of the projectsts. The company will alsoek a low-interest staten.A group made up of theninsulas mayors is pro-sing a public contributionup to $100 million more,ich they say could save

stomers an estimated24 million over the life ofe loan.

When will my water billrease? By how much?According to Cal Amsojections, customerster bills are expected touble and could nearlyple by 2017 from a 2012seline, though less thanlf of that increase will beectly attributable to the

oject.Bills could begin torease as soon as next

mmer if Cal Ams requesta surcharge is granted bye PUC.According to the compa-s projections as recentlylast year, residential cus-

mers who use relatively lit-water could see their

onthly bills increase fromout $21 now to between0 and $56 by 2017, without $17 to $24 of therease due to the project.

Higher-use customersuld see a monthlyrease from about $146 totween $308 and $496. Ofat increase, about $119 to98 would be a result of theter project.

An average commercialstomer could see anrease from about $350r month to between $709d $752, with about $298 to17 attributable to theoject.Also causing bills to go upe the San Clemente Dammoval and general ratereases, among otherngs, including costsated to the failed desaloject.Cal Ams projections arebject to fluctuation result-g from other surchargesat could come off waters in the next several

ars. Actual rates will be setthe PUC.

f there is no project, whatl the economic impact be?

$261 million per year in lostindustrial production, suchas food production; and theloss of 6,000 jobs.

What is the general natureof opposition to the project?

Some believe the pro-posed project is too expen-sive and a privately owneddesal plant will unfairly bene-fit Cal Am at the expense of

groundwater basin becauseit could exacerbate seawaterintrusion.

What are the potentialenvironmental impacts?

Those are being studiedin the projects environmen-tal impact report, which isbeing conducted by SanFrancisco-based Environ-mental Science Associates

What happens if the projectis delayed? Will there be waterrationing or penalties?

Cal Am has alreadyacknowledged the project

wont be finished by the endof 2016, the deadline to meetthe state water boards ceaseand desist order, and isntexpecting the desal plant tobe online until the end of the

following year.Company officials saythey plan to argue for arelaxation of the deadline byshowing the state waterboard that significantprogress has been made onthe project and that a new

water supply is imminent.If the board decides to

uphold the deadline, it couldresult in mandatory ration-ing or a legal injunction toprevent Cal Am from pump-ing over the limit from theriver. In addition, daily pen-alties of up to $500 for tres-passing and $1,000 for violat-ing the order have beendiscussed.

What is the projectscurrent status andwhat comes next?

The project is in the mid-

Waterompage A6

M O N T E R E YB AY

P A C I F I CO C E A N

CarmelRiver

Salin

asR

iver

CarmelRiver

Salin

asR

iver

218

1

1

68

101

G20

156

183

MossLanding

California American Water service area

Salinas

Chualar

Marina

Seaside

Del ReyOaks

Ryan Ranch

Bishop

Toro

Ambler

RalphLane

Monterey

Presidio ofMonterey

PacificGrove

Pebble

Beach

Carmel

CarmelValley

HiddenHills

CarmelHighlands

Castroville

MossLanding

Salinas

Marina

Castroville

Sand City

Chualar

Seaside

Del ReyOaks

Ryan Ranch

Bishop

Toro

Ambler

RalphLane

Monterey

Presidio ofMonterey

PacificGrove

Pebble

Beach

Carmel

CarmelValley

HiddenHills

CarmelHighlands

Sand City

Source: California American WaterSource: California American Water JAMES HERRERA/The Herald

G16

G17

68

MONTEREY PENINSULA A QUEST FOR WATER

How much isan acre-foot?

The desalination plantwill deliver between 6,252and 9,752 acre-feet ofwater per year, depending

on its size. Sowhat is anacre-foot?1 acre-foot of

Most customers in this area will see their bills about double to help pay for the project.Cal Am serves about 100,000 customers.

Fresh water movement

Clay

Water-bearing gravels

Seawater

Seawater intrusion

M O N T E R E Y

B AY

Castroville

SalinasChualar

End ofpercolation

area

180-foot aquifer

Dunes sand aquifer

400-foot aquifer

Deep aquifer

Gonzales

Aquifer cross-section

Source: Monterey County Water Resources Agency JAMES HERRERA/The Herald

An underground view of the northwestern end of the Salinas Valley groundwater basinwhere Cal Am is planning to draw feeder water for its proposed desalination plant.

DesalneighborScan this codefor a videofrom theSand Citydesalination plant, or seehttp://bit.ly/SCdesal


24/26


Agenda Report

Date: July 01, 2013

Item No: 5.

06/12


SUBJECT: Receive Report and Discuss Public Outreach Opportunities Including ActionMinutes for the TAC and Reproduction of Published Information

RECCOMENDATION:

As an initial effort to expedite public outreach, the Executive Director contacted The MontereyCounty Herald to obtain permission to publish and reprint the article The Path to Your Taporiginally published on June 2, 2013. The publisher has provided permission and a copy isincluded in the agenda packet. Staff will be reproducing this article in the future for distributionfor public use.

Additionally included in the Fiscal Year 2013-14 budget is funding for public outreach and staffhas been directed to seek other opportunities for collaboration and would like guidance onopportunities and outreach methods currently utilized or proposed.

Finally, as part of the public outreach budget, all Authority meetings are being televised,recorded and made available on the Authoritys website to make public participation easier.Currently, the Authority has provided direction to have detailed minutes, somewhat similar to averbatim format so that the public is well aware of the decisions and discussions occurring atthe meetings. By making videos of past meetings accessible on the website, such detailednotes is not as trivial and is very time consuming. Therefore, staff is requesting that the TACagree to modify the standard format for minutes from a Detailed format to either an Anecdotal or

an Action Summary minutes format. The Anecdotal format provide summaries of thediscussions, excluding individual details, but still provide a summary and any actions taken.Action Summaries include any decisions made and all public comments.

ATTACHMENTS:

Water Article Produced by the Monterey Herald and published on June 2, 2013.


25/26


Agenda Report

Date: July 01, 2013

Item No: 6.

08/12

FROM: Prepared By: Clerk to the Authority

SUBJECT: Discuss and Approve Future Meeting Dates and Agenda Items

RECOMMENDATION:

It is recommended that the TAC approve the below meeting dates through December 31, 2013

DISCUSSION:

The MPRWA TAC has been meeting the First and Third Monday of every month for the lastyear. Staff suggests a reduction of the meeting frequency, consistent with the projected needsfollowing a CPUC decision on the settlement agreement. Below is a proposed list of meetingdates for the TAC through December 31, 2013, assuming two meetings per month through thesummer season, and suggesting one regularly scheduled meeting and one optional secondmeeting if necessary beginning in September. Authority Directors approved a similar schedulechange at their June 13, 2013 meeting.

The following dates are recommended for future TAC meetings through December 31, 2013:

Regular: July 01, 2013Regular: July 15, 2013

Regular: August 05, 2013Regular: August 19, 2013

Regular: September 16, 2013(*September 2 is Labor Day and September 9 is Admissions Day)Optional: September 30, 2013

Regular: October 07, 2013Optional: October 21, 2013

Regular: November 04, 2013

Optional: November 18, 2013 (*4th Thursday Due to Thanksgiving Holiday)

Regular: December 02, 2013Optional: December 16, 2013

Additionally Staff would like the TAC to discuss and provide direction for future agenda items tobe addressed at future meetings.


26/26

tac mprwa regular meeting agenda packet 07-01-13

Documents