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AgendaMonterey Peninsula Regional Water Authority (MPRWA)
Regular Meeting
7:00 PM, Thursday, March 12, 2015
Council Chamber580 Pacific Street
Monterey, California
ROLL CALL
PLEDGE OF ALLEGIANCE
REPORTS FROM BOARD DIRECTORS AND STAFF
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 and which is not on the agenda. Any personor group desiring to bring an item to the attention of the Authority may do so by addressing theAuthority during Public Comments or by addressing a letter of explanation to: MPRWA, Attn:Monterey City Clerk, 580 Pacific St, Monterey, CA 93940. The appropriate staff person will contactthe sender concerning the details.
CONSENT AGENDA
1. Approval of Minutes from February 12, 2015 Regular Meeting - Milton
2. Approve and File Checks from February 13, 2015 through March 11, 2015. - Milton
3. Receive Report On Monthly Reports To The Authority Board On Activities Of The Public
Outreach Consultant And Discussion Of Priorities. - Beleny
4. Receive Report and Staff Recommendation On An Earlier Start Time For Future Meetings - Milton
5. Authorize the Executive Director to Send a Letter to the Fort Ord Reuse Authority Board Requesting Staff Coordination on Marina Coast water District's Proposed Regional Urban Water Augmentation Project (Desal) and Cal Am's Monterey Peninsula Water Supply Project. - Cullem
AGENDA ITEMS
6. Receive Report, Discuss, and Provide Direction with Respect to the Proposed Extension of the State Water Resources Control Board Cease and Desist Order WR 2009-0060 (CDO) Deadline of 31 December 2016 - Cullem
7. Receive Report, Discuss, and Provide Staff Direction on the "Summary" MontereyPeninsula Water Supply Project Schedule - Crooks/Cullem
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Thursday, March 12, 2015
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8. Designation of Alternate To Serve As A Representative of The Authority On The Governance Committee. - Cullem
9. Receive Report, Discuss, and Provide Direction on Water Authority Legal Expenses. -
Cullem
10. Receive a Report on Expected Credits to City Contributions for FY 2014-2015 Subject to Receipt of Monterey County Fair Share and Initial Budget Estimate for FY 2015-2016. - Cullem
ADJOURNMENT
The City of Monterey is committed to including the disabled in all of its services, programs andactivities. In compliance with the Americans with Disabilities Act, if you need special assistanceto participate in this meeting, please contact the City Clerk’s Office at (831) 646-3935.Notification 30 hours prior to the meeting will enable the City to make reasonable arrangementsto ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II]. Later requests willbe 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 hearingamplification device to attend a meeting, dial 711 to use CRS to talk to the City Clerk's Office at(831) 646-3935 to coordinate use of a device.
Agenda related writings or documents provided to the MPRWA are available for publicinspection during the meeting or may be requested from the Monterey City Clerk’s 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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MINUTES
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)Regular Meeting
7:00 PM, Thursday, February 12, 2015COUNCIL CHAMBER580 PACIFIC STREET
MONTEREY, CALIFORNIA
Directors Present: Burnett, Edelen Kampe, Pendergrass, Roberson, Rubio
Directors Absent: None
Staff Present: Executive Director, Legal Counsel, Authority Clerk
ROLL CALL
Meeting was called to order at 7:00 PM.
PLEDGE OF ALLEGIANCE
REPORTS FROM BOARD DIRECTORS AND STAFF
President Burnett noted the length of the agenda and any meetings may be continued to afuture meeting if discussions are too long. President Burnett then invited reports from Directorsand Staff.
Executive Director Cullem spoke to the Director's request to discuss the Dana Point test wellsreporting the TAC discussed the item in depth at their February 2, 2015 meeting andquestioned if the Board also wished to take up the item.
PUBLIC COMMENTS
President Burnett invited public comments
• George Riley expressed concern regarding the participation of Monterey County as amember of the Governance Committee due to the settlement agreement regardingcounty debts for the failed regional desal project, questioning if there is a conflict ofinterest. He then requested agendizing an update of Cal Am costs, to discuss thefeasibility question of slant wells and a discussion for the sunset of the Authority.
• Tom Rowley also questioned when the Authority would request Senator Monning tomodify the Water Management District to add all land use jurisdictions. Suggested thatthe president appoint an ad hoc committee to study the possibility.
• Michael Warburton, Public Trust Alliance requested a discussion of reasonablealternatives to a desal plant.
• Nelson Vega indicated that many water solution projects have been attempted in thelast 30 years. He suggested revisiting the history of failed attempts for public educationand benefit.
CONSENT AGENDA
On motion by Director Edelen and seconded by Director Kampe and approved by the followingvote the Authority Directors approved the Consent Calendar as presented, Roberson Abstainedfrom Item 2.AYES: 5 DIRECTORS Burnett, Edelen Kampe, Pendergrass, Rubio
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NOES: 0 DIRECTORS NoneABSENT: 1 DIRECTORS RobersonABSTAIN: 0 DIRECTORS NoneRECUSED: 0 DIRECTORS None
1. January 8, 2015 Regular Meeting
Action: Approved
2. Approval of Checks Through February 12, 2015Action: Approved
AGENDA ITEMS
3. Adopt Resolution Authorizing The Authority President To Extend The Contract With The City OfMonterey For Executive Director Services And To Request The City Of Monterey To Extend ItsContract With James M. Cullem For That PositionAction: Approved and Passed Resolution 15-01
Clerk Milton-Rerig spoke to the item and the terms of the contract extension with the City ofMonterey for Executive Director services that are reimbursed by the Authority. ExecutiveDirector Cullem noted that this contract was for an 18 month term to fall in line with the fiscalyear. Ms. Milton-Rerig and Mr. Cullem answered questions from the Directors.
President Burnett invited public comments on the item and had no requests to speak
Director Kampe moved to approve the recommendation, seconded by Director Rubio.
Speaking on the second, Director Rubio questioned the ability to include a not to exceedcontract price. Director Roberson expressed concern regarding timing, that he wanted todiscuss the item with this council and requested continuing this item to the March meeting.
This item was continued until the end of the meeting for further discussion.
The Director’s returned to the discussion of Agenda Item 3 and Clerk Milton requested thefollowing amendment be made to the resolution:
After 4th WHEREAS clause, add an additional clause to read:“WHEREAS the contract is to be extended for a period not to exceed 18 months for atotal cost not to exceed $141,420.00”
And modify NOW THEREFORE, by adding to the end:“With the total cost is not to exceed $141,420.00”
On a motion by Director Rubio seconded by Director Kampe, and carried by the following vote,the Monterey Peninsula Regional Water Authority adopted Resolution 15-01 with revisedlanguage as noted above, Authorizing The Authority President To Extend The Contract WithThe City Of Monterey For Executive Director Services And To Request The City Of MontereyTo Extend Its Contract With James M. Cullem For That Position:
AYES: 6 DIRECTORS: Burnett, Edelen Kampe, Pendergrass, Roberson,Rubio
NOES: 0 DIRECTORS: None
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ABSENT: 0 DIRECTORS: NoneABSTAIN: 0 DIRECTORS: NoneRECUSED: 0 DIRECTORS: None
4. Discuss Accomplishments of The Water Authority Since Its Formation to the Present
President Burnett spoke to the item and discussed the document prepared for the meeting titled“Background on the Water Authority in its first three years”. This document spoke to the historyof the Authority, positions taken and the processes the Authority took to get to those positions,and accomplishments achieved. It outlined the efforts that the Authority has made in terms ofcommunications and relationships between local parties as well as state and governmentalagencies. Finally the document outlines the cost benefit analysis of the efforts of the Authorityas compared to the cost of operation since inception. He spoke to the savings to the public as aresult of the value engineering the public financing efforts. President Burnett gave significantcredit to the Water Management District and said these are a result of the partnerships.President Burnett answered questions of the public.
• Nelson Vega spoke to his initial criticism of the Authority but that the efforts of theAuthority have ensured that water solution projects have moved forward. He spoke insupport of the efforts of the Authority Past President Della Sala and current PresidentBurnett.
• Tom Rolwey agreed with Mr. Vega and urged representation on the Authority for theunincorporated Monterey County residents.
• Michael Warburton spoke to the public right to water and that more investigation andpublic discussion is needed regarding reasonable alternatives.
• George Riley spoke to the leadership role that the Authority has taken that is notreflected in this document. He also spoke to the publicity the Authority has broughtregarding water issues with their efforts to educate the community about progress beingmade. He disagreed that an accomplishment was the defeat of Measure O.
• Steve Thomas Public Outreach Consultant with the Water Management District spoke tothe leadership and organizational capability that Dave Stoldt has brought to the Districtand to the involvement of the Authority supporting the Pure Water Monterey project. Hedisagreed with Mr. Vega’s comment that the WMD had not produced a water project in30 years, citing the successful ASR project that when it rained, it produced over 200acre/ft of water.
This was for discussion purposes and not for action. Mayor Rubio requested this be turned intoa slide show to be shown at the City Council meetings. The Directors Agreed.
Vice President Kampe spoke to his presentation to the PG City Council Meeting and spoke tothe settlement agreements being pivotal to the progress of the projects. He spoke to the needto find venues to discuss what role the Authority needs to take to help secure future water.
Director Pendergrass spoke to purposeful creation of the Authority to ensure that local cities arenot left out of a project again, and spoke in support of all of the land use jurisdictions beingrepresented on the Water Management District Board.
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Director Roberson questioned if the Authority has adgendized a discussion of merging with TheWater Management District to which President Burnet responded that the Board has drafted asunset plan of the Authority and that we should continue to discuss the productive partnershipthat we have built and not do anything to distract or detract from the current efforts. TheDirectors agreed.
President Burnett requested to take up Item 9 next, to which all Directors approved.
5. Receive The 23 January 2015 Update to the CPUC Schedule and Discuss the Delay in theRelease of the DEIR and Other Changes and Decide on a Course of Action if NeededAction: Tabled
6. Approve Invitation to New Interim General Manager of the Marina Coast Water District to ServeAs A Member of The Water Authority Technical AdvisoryAction: Tabled
7. Receive Report On Monthly Reports To The Authority Board On Activities Of The PublicOutreach Consultant And Discussion Of Priorities.
Action: Tabled
8. Designation of Alternate To Serve As A Representative of The Authority On The GovernanceCommittee.Action: Tabled
9. Receive Update, Discuss, And Provide Direction On Water Authority Participation In ObtainingA Cease and Desist Order (CDO) Extension
This item was discussed after Item 4.
President Burnett provided an update regarding discussions to request modification of the
Cease and Desist Order from the State Water Resources Control Board. He reminded theBoard that the CDO, effective January 2017 requires Cal Am to cease pumping water from theCarmel River and meeting that reduction without a new water supply would be disastrous forour communities. The water available after the CDO would only be enough water to supply tohouseholds and not businesses or other purposes. He reminded the Board that none of thesignificant projects under way will be online producing water by the January 2017 deadline.
President Burnett outlined the following criteria that he feels is needed to obtain a successfulextension or modification from the State:
1. The development of definitive milestones.2. The need for more mitigation of the Carmel River.
3. Additional water in the river, likely due to the community's continued and additionalconservation efforts
4. Identification of consequences associated with missing milestones to keep motivated todeliver a project.
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President Burnett spoke to the documents provided at the meeting including a draft proposalnoting that the State is approximately six months way from taking action, therefore there issignificant opportunity for public discussion. He clarified that this document is a petitionbetween Cal Am and the State but the Authority we can vote to take a position of support of theaction and proposal. This proposal would not lead to water rationing as presented. PresidentBurnett and the Directors discussed the proposal.
Director Roberson questioned a herald article that the proposal was formal or informal to whichEric Sabolcie, Cal Am General Manager agreed with President Burnett that the discussion wasnot formal, it was a discussion of a solution, at a staff level. They have been working to get to apoint where there can be a future agreement. Legal Counsel Freeman reaffirmed that this is astaff level, working draft document.
President Burnett spoke to the details of the proposal.
Director Pendergrass urged respectful interactions with the state and spoke to past
At the request of Director Roberson, President Burnett recessed the meeting for a short break.The meeting reconvened at 8:52 and President Burnett invited public comment on the item.
• Nelson Vega spoke in support of the action but expressed concern that the State wouldimpose consequences that would punish the rate payers instead of Cal Am.
• Tom Rowley questioned the level of responsibility the PUC has for helping thecommunity to get a project on line, citing recently passed state legislation that requiresthem to help the public.
• John Narigi spoke representing the Coalition of Peninsula Businesses, spoke to theneed to vet the provided documents with the Board. He expressed the followingconcerns:
o A 4 year extension is positive, but concerned that no new connections will freezeour community for economic engines and growth.
o Documents should attempt to negotiate supply. No mention of wet years for
surplus and could that benefit.o Concern with milestones, are they doable and executable? Can we handle
penalties without impacting fiscal health of the region?o Discouraged including local jurisdictions in legal proceedings filed - should not
be the fault of the community. Agreements should acknowledge it gives ussupport against litigation.
o The tying together of the GWR project for schedule needs to be addressed.o Confidence level check of Cal Am for potential litigation threats in the future.
Unintentional consequences need to be identified and addressed.
• George Riley expressed concern regarding the lack of focus on rationing and thepossibility of penalties against the community and requested to see the options
regarding fines to compare rationing implications to fines. He also requested that ASRbe removed from the calculations as it is inconsistent.
• Michael Warburton indicated the CDO was imposed for good reasons because theenvironment was being damaged, but effort needs to be placed to find reasonablesolutions.
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Closed public comment and answered questions from public comment.
Eric Sabolcie commented that the CDO does allow for the ability to negotiate alternate recoverystrategies, including the discretion to Bank ASR also that recently passed legislation may grantthe ability to not incur penalties if the CPUC caused project delays. . The Directors discussedthe draft proposal, the potential impacts as well as the critical path items that may impact thesuccessful completion of water solution projects.
Mayor Kamp encouraged the Directors to focus on ensuring our citizens have water to be ableto use, that we cannot let the CDO get in the way of finding a replacement source and that it ishard to quantify reducing the investment now for the potential future impact later. This item wasfor informational purposes and to gather direction.
10. Receive And Discuss The Current "Summary" Monterey Peninsula Water Supply ProjectSchedule Including The Status Of The Test Slant Well Construction And An Evaluation Of TheTechnical, Economic, And Legal Feasibility Of Slant Wells After Data Is Available From TheTest Well
Ian Crooks from Cal Am outlined the current status of the construction of the test slant wells
reporting that the drilling is completed and the next stages are moving forward. He remindedthe Directors and the Public that staff is trying to do this under extreme schedule constraints.He expects construction to be completed by end of February after which the first stage ofpumping (aquifer test) can begin which provides immediate data. Once the hydrologistapproves the full pumping rate, data can become available as soon as march.
President Burnett invited public comment and had no requests to speak.
11. Receive Year End Budget Review for Fiscal Year 2014-15, Discuss, and Provide Guidance ToStaff.Action: Report Received
Executive Director Cullem presented the report citing the Authority expenses of 28% of thebudget so far this fiscal year. He spoke to the current expected obligations through theremainder of the fiscal year, with the primary expenditure still being Special Legal Counsel. Mr.Cullem also spoke to the Monterey County Fair Share contributions and efforts to obtain thatfunding.
Director Rubio spoke to the need and importance for the Special Council, especially due to theneeded expertise regarding procedures of the CPUC. He spoke in support of Mr. McGlothlin'sexperience. President Burnett and Executive Director Cullem also spoke in support of theservices provided by Mr. McGlothlin.
President Burnett invited public comment.
• Tom Rowley spoke in support of the accomplishments of the Authority and withdisappointment of the slow payment of the County of Monterey and his disappointmentthat Monterey County does not give much attention to Peninsula water issues.
• Michael Warburton cited the County’s obligations that cover domestic use of water andspoke to Mr. Rowleys agreement that they are responsible to all citizens in MontereyCounty.
This was for information and direction.
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12. Discuss Implications Of An Earlier Start Time For Future MeetingsAction: Tabled
ADJOURNMENT
ATTEST:
Lesley E. Milton-Rerig, Authority Clerk Jason Burnett, MPRWA President
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Monterey Peninsula Regional Water AuthorityAgenda Report
Date: December 11, 2014
Item No: 2
FROM: Authority Clerk Milton
SUBJECT: Approval and File Authority Checks Through March 11, 2015
RECOMMENDATION:
It is recommended that the Authority approve and file the accounts payable paymentsmade during the period February 12, 2015 through March 11, 2015 with total paymentsfor the above referenced period of $30,393.43 from the general fund account andauthorize the Directors to sign for such checks.
DISCUSSION:
At its meeting on September 12, 2013, the Authority Board approved a staffrecommendation to provide the Directors a listing of financial obligations since the lastreport for inspection and confirmation. Each invoiced expense has been reviewed andapproved by the Executive Director and Finance personnel prior to payment to insure thatit conforms to the approved budget.
The following checks are hereby submitted to the Authority for inspection andconfirmation.
• $ 17,656.43 to the City of Monterey for Executive Director Services For 4th quarter services.
• $ 1,125.00 to Access Monterey Peninsula
• $ 5,312.00 to Brownstein Hyatt Farber and Schreck for Special Legal CounselServices.
• $ 5,000.00 to Perry and Freeman for contracted monthly legal services (Marchand April 2015)
• $ 1,300.00To Environmental Relations for Public Outreach services
The bank balance as of March 1, 2015 is sufficient cover the above check therefore,staff is recommending approval.
ATTACHMENTS:
• Budget to Actual Report through March 1, 2015
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2:18 PM
02/06/15
Accrual Basis
Monterey Peninsula Regional Water Authority
Profit & Loss Budget vs. Actual July 1, 2014 through February 6, 2015
Budget
Actual Jul 1,
'14 - Mar 1, 15 Balance % of Budget
Ordinary Income/Expense
Income
47200 · Program Income
47230 · Membership Dues 458,680.00 334,196.00 124,484.00 72.86%
47240 · Program Service Fees 0.00 0.00 0.00 0.0%
47250 · Reimbursement SPI Contract 0.00 18,562.14 -18,562.14 100.0%
47260 · Reimburesment VE Contract 0.00 0.00 0.00 0.0%
47200 · Program Income - Other 0.00 0.00 0.00 0.0%
Total Income 458,680.00 352,758.14 105,921.86 76.91%
Expense
60900 · Administration and Clerical
60901 · Clerk of the Board 24,000.00 24,000.00 0.00 100.0%
60902 · Executive Director 94,680.00 17,603.81 77,076.19 18.59%
60903 · Principal Offc of the Authority 5,000.00 0.00 5,000.00 0.0%
60904 · Financial Services 6,000.00 6,000.00 0.00 100.0%
60905 · Misc Admin Expenses 500.00 0.00 500.00 0.0%
60900 · Administration and Clerical - Other 0.00 0.00 0.00 0.0%
Total 60900 · Administration and Clerical 130,180.00 47,603.81 82,576.19 36.57%
62100 · Legal Fees
62110 · Board Counsel 63,000.00 20,000.00 43,000.00 31.75%
62140 · Special Counsel 152,000.00 26,484.85 125,515.15 17.42%
62100 · Legal Fees - Other 0.00 0.00 0.00 0.0%
Total 62100 · Legal Fees 215,000.00 46,484.85 168,515.15 21.62%
62800 · Contract Services
60801 · Public Outreach 35,000.00 3,633.33 31,366.67 10.38%
60806 · Contract VE 200,000.00 104,988.64 95,011.36 52.49%
62802 · Audit Services 6,000.00 6,805.00 -805.00 113.42%
62803 · Televised Meeting 10,000.00 2,537.50 7,462.50 25.38%
62804 · Contract Services & Studies 30,000.00 0.00 30,000.00 0.0%
62805 · Contract SPI 0.00 0.00 0.00 0.0%
62800 · Contract Services - Other 0.00 0.00 0.00 0.0%
Total 62800 · Contract Services 281,000.00 117,964.47 163,035.53 41.98%
65000 · Insurance 7,500.00 6,673.44 826.56 88.98%
65100 · Travel Expenses 5,000.00 325.00 4,675.00 6.5%
66000 · Payroll Expenses 0.00 0.00 0.00 0.0%
68300 · Contingency 20,000.00 0.00 20,000.00 0.0%
Total Expense 658,680.00 219,051.57 -439,628.43 33.26%
Other Income/Expense
47220 · Interest Earned 0.00 1.65 -1.65 100.0%
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Monterey Peninsula Regional Water AuthorityAgenda Report
Date: March 12, 2015
Item No: 3.
№06/12
FROM: Executive Director Cullem
SUBJECT: Receive Report on Monthly Reports to the AuthorityBoard on the Activities of the Public OutreachConsultant and Discussions of Priorities
RECOMMENDATION:
Staff recommends the Water Authority receive the first of monthly reports
on the activities of Environmental Relations PR, the Water Authority Public
Outreach consultant.
DISCUSSION:
At its meeting on April 25, 2013, the Water Authority approved a Public
Outreach budget of $49,000 of which $20,000 was budgeted for Speaker’sBureau Support. Following an RFP process in September 2013, the Water
Authority awarded a contract to Environmental Relations PR for Public
Outreach Services for the FY 2013-2014 at a price not-to-exceed $15,000.
At its meeting of December 11, the Water Authority approved a extension
of the contract for FY 2014-2015 at a price not-to-exceed $10,000. A copy
of the current Scope of Work is at Exhibit A.
As a condition of contract approval this year, staff and the consultant were
directed to meet with Vice President Kampe to establish clearer objectives
and to document accomplishments. At a meeting on Jan 16, 2015, it was
agreed that the Authority should receive a monthly report on outreach
activities and priorities.
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Ashley Belany from Environmental Relations PR has focused on
accomplishing the following activities through March 1, 2015:
1. WEB Site Reorganization and Update2. Draft Slant Well and Draft "DESAL Alphabet Soup" newspaper articles3. Coordination meeting with WA Vice-President Kampe4. Update Public Information handout5. Updated Facebook page and posting of news6. Attend Water Authority and selected TAC meetings
The Executive Director has directed Ashley to continue prioritizing theupdates of the web page and social media sites, and preparation ofperiodic newspaper articles to fill in the information void not covered by
reporters and other contributors such as Cal Am, the MRWPCA, and theMPWMD.
FISCAL IMPACT:
At fiscal year end, the Authority had expended quite a bit less than $49,000
in FY 2013-2014 for Public Outreach, and actual contract expenditures for
the Public Outreach Services contract were substantially less than $15,000as well. Staff expects to further reduce expenditures under the current not-
to-exceed $10,000 consultant contract.
ATTACHMENTS:
A - Public Outreach Scope of Work for FY 14-15
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Public Outreach Services
Monterey Peninsula Regional Water Authority
Scope of Work: October 2014-2015
A. Update master plan for Public Outreach and Information
B. Work with Board members and staff on identification of issues & Message
Development
C. Establish and maintain contacts with the media
D. Propose and prepare periodic op-eds as needed
E. Maintain and update all presentation materials for use by staff & Board members
F. Develop and update audience specific handout materials
G. Update, expand Frequently Asked Questions for print and on website
H. Develop social media, including feedback opportunities
I. Maintain and update Water Authority website
J. Monitor Water Authority meetings and proceedings
K. Coordinate all public outreach & messaging with MPWMD and MRWPCA via the
MPWMD Public Outreach Committee
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Monterey Peninsula Regional Water AuthorityAgenda Report
Date: March 12, 2015
Item No: 4.
№06/12
FROM: Authority Clerk Milton
SUBJECT:Receive Report and Staff Recommendation On An Earlier StartTime For Future Meetings
RECOMMENDATION:
It is recommended that the Water Authority Board retain the current timeand date schedule for its meetings.
DISCUSSION:
The issue of earlier start times for future Water Authority meetings wasraised at the meeting of January 8, 2015. Staff investigated the possibilityof doing so, and developed the following information:
1. The City of Monterey Historic Planning Commission uses theMonterey Council Chambers from 4:00 to 6:30 PM on the sameThursdays the Water Authority meets.
2. Due to prior scheduling commitments, AMP cannot provide us withlive meeting coverage earlier than 7:00 p.m.
Staff believes that since an earlier start time will require the Authority to finda different venue it could negatively impact the public's ability to participateand could cause confusion. Accordingly, the Executive Directorrecommends the Water Authority meeting dates and times remainunchanged at this time.
ATTACHMENTS:
None
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Monterey Peninsula Regional Water AuthorityAgenda Report
Date: March 12, 2015
Item No: 5.
№
FROM: Executive Director Cullem
SUBJECT: Authorize the Executive Director to Send a Letter to the Fort Ord ReuseAuthority Board Requesting Staff Coordination on Marina Coast waterDistrict's Proposed Regional Urban Water Augmentation Project (Desal)and Cal Am's Monterey Peninsula Water Supply Project.
RECOMMENDATION:
It is Recommended that the Water Authority authorize the Executive Director to send aletter to the FORA board of directors requesting that any action related to Marina Coast
Water District's Proposed Regional Urban Water Augmentation Project (DESAL)include direction to FORA staff to work with the Water Authority and the MontereyPeninsula Water Management District in order to fully analyze the potential interactionsbetween Marina Coast’s plans and Cal Am's Monterey Peninsula Water Supply Project(MPWSP).
DISCUSSION:
FORA board agenda item 9e for its meeting of March 13, 2015 is to "Consider MarinaCoast Water District Proposed Regional Urban Water Augmentation Project". The
agenda calls for the item to be for information and for action.
In the interests of addressing water supply projects from a regional perspective and tobest meet the needs of MCWD customers as well as those of Cal Am, construction ofDesal plants and or intake facilities which are likely to be in close proximity should beclosely coordinated.
Accordingly, it is recommended that the MPRWA board direct the Executive Director tosubmit a letter to FORA requesting it direct MCWD staff coordination with the MPRWAand MPWMD before taking any approval action on the MCWD Desal project. A draft ofthe letter is at Attachment A.
ATTACHMENTS:
A- Draft letter from the MPRWA Executive Director to the FORA Board of Directors (Tobe provided at or before the meeting)
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Monterey Peninsula Regional Water AuthorityAgenda Report
Date: March 12, 2015
Item No: 6.
№06/12
FROM: Executive Director Cullem
SUBJECT:Receive Report, Discuss, and Provide Direction with Respect tothe Proposed Extension of the State Water Resources ControlBoard Cease and Desist Order WR 2009-0060 (CDO)Deadline of 31 December 2016.
RECOMMENDATION:
It is recommended that the Water Authority Board receive an update onefforts by the settling parties, including California American Water Co. (CalAm), the Monterey Peninsula Water Management District (MPWMD), andthe Monterey Peninsula Regional Water Authority (MPRWA) to obtain anextension of the CDO 2009-60 deadline date of December 31, 2016.
DISCUSSION:
It is well known the Monterey Peninsula Water Supply Project (MPWSP)has been delayed to the point where it is virtually impossible for Cal Am tomeet the State Water Resources Control Board (SWRCB) CDO 2009-60deadline of December 31, 2016.
Accordingly, representatives of the settling parties have been in discussionwith the SWRCB staff in an effort to develop proposals for a CDOextension that would be acceptable to the public and have a reasonableexpectation of obtaining State Board approval.
Last year, the Authority Board selected Mayor Burnett to represent theMPRWA in those discussions.
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Key principles under discussion include the following:
• A four-year extension of the CDO deadline from December 31, 2016
to December 31, 2020.• A new reduction schedule in regular increments during the extension,
but suspension of the prescribed reductions if MPWSP milestonesare satisfied.
• Authority for the SWRCB staff to suspend a reduction correspondingto a missed milestone if staff determines that the milestone wasmissed due to circumstances beyond the control of Cal-Am,MPWMD, and the Water Authority.
• Suspension of the reduction would be triggered by a joint writtenstatement from Cal Am, the MPWMD, and the MPRWA that the
milestone was missed for reasons outside our control. It is ourposition that such a statement is to be assumed to be correct, and ifthe SWRCB staff disagrees, the issue would be referred to the StateBoard for a decision. In any case, the community retains its rights tolitigate the issue if necessary.
The Jan 14, 2015 Cal Am draft Proposal for an Extension was provided atthe February 12, 2015 Water Authority meeting and is available at theAuthority web site www.mprwa.org. At Attachment A is the Mar 10, 2015
revised Draft Proposal.
The Authority will report regularly on efforts and progress in helping Cal Amobtaining the extension, and will continue to gather public input before theAuthority takes a formal position on a final draft proposal.
ATTACHMENTS:
A- March 10, 2015 DRAFT Proposal to Amend SWRCB Order 2009-0060.
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Proposal to Amend
SWRCB Order WR 2009-0060 (Carmel River CDO) A. Good Cause Exists to Modify WRO 2009-0060: California American Water (“CAW”) and other
Parties have diligently and aggressively implemented measures to comply with WRO 2009-0060
(“CDO”). CAW and other Parties have: (1) implemented efficiency and conservation measures
to control and reduce customer demand and system losses within CAW’s Monterey district, such
that the community is currently outperforming targets for production of Carmel River water set
in the CDO; (2) diligently pursued the Monterey Peninsula Water Supply Project (“MPWSP”),
which will supply the replacement water supply necessary to eliminate all unauthorized
diversions from the Carmel River; (3) developed, permitted and implemented projects to replace
and supplement Carmel River diversions subject to the CDO1; and (4) permitted and
implemented measures to enhance and improve conditions for fish and wildlife resources in the
Carmel River watershed, and to minimize or avoid impacts to fish and wildlife that could result
from extension of WRO 2009-0060 timelines. In consideration of these activities and the further
commitments described below, CAW and other Parties support the State Water Resources
Control Board’s (“SWRCB’s”) finding of good cause to modify the CDO as requested.
B.
Modifications to WRO 2009-0060: CAW is currently meeting or has met all of the conditions of
the CDO, but factors beyond CAW’s control make it unlikely that several future conditions can
be met. Therefore, in coordination with other Parties, CAW will submit a request for the
following modifications to the CDO:
1. A four-year extension of the deadline set forth in ordering Condition no. 1, from December
31, 2016 to December 31, 2020.
2. Add a process to Condition no. 1 delegating to the Executive Director authority to
administratively extend the time for compliance with Condition no. 1, for good cause
shown.
3. Amend Condition no 3.a.(2) to state that, effective Water Year 2015-2016, CAW shall further
reduce unlawful diversions from the river by an additional 1,000 acre feet annually (“afa”)
from the existing cumulative reduction level in place for Water Year 2013-2014 under Table
1 of the CDO. See Attachment 1. For good cause shown, the Executive Director may exercise
discretion to relax this diversion reduction to address circumstances that may arise in future
years. A showing of good cause to justify a modification of this diversion reduction shallinclude, but shall not be limited to, circumstances in which CAW, MPWMD, and/or MPRWA
submit credible evidence that: (1) the existing demand or projected demand within the CAW
system is likely to exceed the cumulative reduction levels in effect, or projected cumulative
1These projects include: Seaside Middle School Aquifer Storage and Recovery (“ASR”) Well #3 (completed up to an
additional 500 acre feet per annum); Acquisition of additional rights to legally appropriate Carmel River water via
Permit 21330 (up to 1488 acre feet per annum); Seaside Middle School ASR Well #4 (in process, up to 500 acre feet
per annum).
1
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reduction levels to take effect, as set forth in Table 1 of the CDO; and (2) CAW has exercised
all reasonable care, and the MPRWA and MPWMD have provided all reasonable
cooperation and support, to meet the milestones set forth in Condition no. 3.a.(2)(i). CAW,MPRWA and/or MPWMD shall have the right to request the full SWRCB to reconsider any
determination by the Executive Director under this Condition no 3.a.(2).
4. Replace Attachment 1 to the CDO with Attachment 1 to this Proposal to Amend.
5. Add a Condition no. 3.a.(2)(i) stating that the reduced diversion level set forth in amended
Condition no 3.a.(2) will be maintained, i.e., no additional annual reduction in diversions will
be required under the CDO, if CAW meets the following milestones as they accrue:
Milestone Deadline
a. Substantial completion of downstream fish passage facilities at the
Los Padres Dam2, meaning facilities are sufficiently complete andappropriately permitted to allow for their operation as intended
September
30, 2016
b. Start of construction for any of the CAW Components3 of the
MPWSP, meaning commencement of physical work after issuance
of required regulatory permits and authorizations to begin work4
September
30, 2017
c. (1) Drilling activity for at least one MPWSP source water
production well5 complete; (2) foundation and structural framing
complete for MPWSP pretreatment, seawater reverse osmosis,
and administration buildings at desalination plant; (3) excavation
complete for MPWSP brine and backwash storage basins; and (4)
25% of MPWSP transmission pipelines installed based on total
length
6
September
30, 2018
d. (1) 50% of drilling activity complete for MPWSP source water
production wells based on total number of wells required; (2)
mechanical systems for MPWSP brine and backwash storage
September
30, 2019
2CAW owns and operates Los Padres Dam at approximately River Mile 24.8 on the Carmel River. CAW has made
various improvements to accommodate upstream fish passage over Los Padres Dam. Currently, when the lake
elevation falls below the dam’s spillway crest, no downstream fish passage corridor exists. To improve
downstream fish passage opportunity, CAW and various stakeholders have agreed that the following downstream
fish passage facilities should be constructed: behavioral guidance system; floating weir surface collector; fish
bypass conduit; bypass access portals; and bypass outfall. 3For purposes of this proposal the CAW Components of the MPWSP include: source water production wells;
desalination plant; brine disposal system; and transmission pipelines.4Such work may include, among other things, any of the following: desalination plant site grading and preparation;
electric utility installation; yard piping; subsurface excavation for structural foundations; transmission pipeline
installation; and/or presence of source water well drilling equipment on-site.5Not including the MPWSP Test Well completed in 2015.
6For transmission pipeline installation CAW will prioritize installation of the “Monterey Pipeline and other ASR
related improvements,” which will facilitate increased ASR diversion during high flows and other improved
operations that will increase the amount of water in the Carmel River during dry months. See Paragraph C.1.,
below.
2
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basins complete; (3) Construction of MPWSP filtered water tanks
and finished water tanks complete; (4) 50% of MPWSP
transmission pipelines installed based on total length, including100% installation of the “Monterey Pipeline and other ASR related
improvements” described in Footnote 6 and Paragraph C.1., below
e. Substantial completion of the CAW Components of the MPWSP,
meaning the CAW Components are sufficiently complete and
appropriately permitted to allow delivery of MPWSP produced,
potable water to CAW’s Monterey Main system, no further CAW
diversions of Carmel River water without valid basis of right
December
31, 2020
6. Add a Condition no. 3.a.(2)(ii) stating that, should CAW fail to meet any milestone described
in new Condition no. 3.a.(2)(i) by its corresponding deadline, the reduced diversion level set
forth in amended Condition no 3.a.(2) shall be further reduced by 1,000 afa. Any further
reduction(s) required under this new Condition no. 3.a.(2)(ii) shall remain in force until the
corresponding milestone is achieved. If a milestone is not achieved by its original deadline,
but is subsequently achieved, the further reduction required in the water year in which the
milestone is achieved shall be prorated and assessed at the end of that water year, and shall
no longer be required for subsequent water years.7
7. Add a Condition no. 3.a.(2)(iii) stating that, if CAW fails to meet any milestone described in
Condition no. 3.a.(2)(i), the corresponding further reduction described in new Condition no.
3.a.(2)(ii) shall be suspended if CAW, the Monterey Peninsula Regional Water Authority
(“MPRWA”) and the Monterey Peninsula Water Management District (“MPWMD”):
a.
Make a written joint notice to the Executive Director, with copies to counsel for theSierra Club and the Carmel River Steelhead Association, no later than 60 days after the
associated milestone deadline; and
i. The notice includes credible information demonstrating that CAW has exercised
all reasonable care, and the MPRWA and MPWMD have provided all reasonable
cooperation and support to meet the milestone, and the milestone deadline
was missed due to circumstances beyond the control of CAW, MPRWA and/or
MPWMD;
ii. If CAW, MPRWA, and MPWMD cannot agree on a joint notice, then any of these
entities may submit an individual notice or notices following the procedure andform described in this Paragraph B.7. If such individual notice(s) are submitted,
or the Executive Director does not agree with a joint notice submitted under
this Paragraph B.7, the SWRCB shall determine whether to suspend the
7For example, if CAW failed to complete construction of downstream fish passage facilities at the Los Padres Dam
by September 30, 2016, but completed these facilities by June, 2017, 75% (9/12ths
) of the corresponding 1,000 afa
reduction (i.e., 750 afa) would be required as a reduction for water year 2016-2017. No reduction based on missing
this milestone would be required for water year 2017-2018 or any future water years.
3
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reduction that corresponds to the missed milestone. If any notice(s) are
submitted following the form and process described in this Paragraph B.7,
further reductions described in Condition no. 3.a.(2)(i) shall be tolled pendingdetermination by the SWRCB or the Executive Director.
8. Amend Condition 3.a.(5) to state: “Water produced from new sources developed pursuant
to Condition 5 of this order shall be subtracted from the base” (currently includes incorrect
cross –reference to Condition no. 4 rather than Condition no. 5).
9. Amend the last sentence of Condition no. 3.a.(6) to state as follows: “After December 31,
2020, CAW shall divert water from the river to supply the holders of PBC’s water
entitlement only from CAW’s legal water rights.”
10.
Add a Condition 3.a.(7) stating that, should CAW be able to identify suitable and willing
transacting parties, CAW will use reasonable additional efforts to acquire supplementalwater rights at acceptable costs, and/or will pursue other water acquisition and water right
changes in order to increase flows in the Carmel River, and/or to decrease CAW’s
unauthorized diversions. Such acquisitions or water right changes may include leases and
purchases of water rights along the Carmel River on a temporary or permanent basis,
and/or water right change approvals or permits (permanent or temporary) from the SWRCB
to increase opportunities to increase lawful diversions in order to reduce unauthorized
diversions during periods of lower flow on the Carmel River. CAW shall quantify
supplemental water supplies and increased flows developed pursuant to this Condition and
such supplemental water and/or increased flows will be credited towards any further
reduction required under new Condition no. 3.a.(2)(ii) (excepting supplies developed to
satisfy Conditions 5 and 3.a.(5)).
11. Amend Condition no. 3.c. to add the following sentence after the last sentence: “Any ASR
water stored in and recovered from the Seaside Groundwater Basin in excess of the (a)
Estimated ASR Project Operational Yield and (b) the Estimated Small Project Output, as set
forth in Table 1, shall be credited towards any further reduction required under new
Condition no. 3.a.(2)(ii).” In addition, Condition no. 3.c. should be modified to extend the
deadline for written submissions to recover ASR water to “not later than May 31 of each
year”, to allow CAW and the fisheries agencies appropriate time to consider information
made available at agency meetings that occur after May 1 of each year.
C. Requests for Assistance by SWRCB. Additionally, CAW and other Parties request that the
SWRCB commit to use reasonable efforts to assist with the following items:
1. Upon issuances of a Certificate of Public Convenience and Necessity (“CPCN”) from the
CPUC, provision of support for CAW’s request(s) to the California Coastal Commission and
other agencies with permitting jurisdiction for expedited permit issuance for the “Monterey
Pipeline and other ASR related improvements,” which will facilitate increased ASR diversion
during high flows and other improved operations that will increase the amount of water in
the Carmel River during dry months;
4
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2. Provision of support in connection with an application by the MPWMD and the Monterey
Regional Water Pollution Control Authority (“MRWPCA”) to place the groundwaterreplenishment (“GWR”) component of the MPWSP on the State Revolving Fund financing
priority list;
3. Provision of support in connection with a request that the SWRCB Division of Financial
Assistance award one percent (1.000%), thirty-year loan proceeds from the program
announced March 19, 2014 for water recycling projects for the MPWMD/MRWPCA
groundwater replenishment project, provided an application is submitted by December 2,
2015;
4. Provision of support and prioritization in connection with the MPWMD/MRWPCA GWR
receipt of grant funds pursuant to Chapter 9 of AB 1471 (2014 Proposition 1); and
5.
Provision of support , including expedited review, in connection with water rights
Application 32263 of Monterey County Water Resources Agency, and any amendments
thereto, in order to facilitate the MPWMD/MRWPCA groundwater replenishment project
D. In consideration of the foregoing, CAW and other Parties commit to implement, or have
implemented, the following measures –
1. Efficiency and Conservation Measures - CAW and other Parties have implemented the
following measures to control and reduce water demand and system losses within CAW’s
service area:
a. CAW has implemented, and will continue during the CDO period, the current
moratorium on new service connections within its Monterey district (see Revised
C.P.U.C. SHEET NO.6509-W);
b. CAW and the MPWMD will continue customer water conservation and efficiency
programs, including:
i. programs targeting high use commercial customers such as laundries, hotels and car
washes;
ii. programs targeting reductions in outdoor irrigation including replacement of
irrigated turf with drought tolerant landscaping or artificial turf, incentives for
installation of weather-based irrigation controllers, and mandatory installation of
rain sensors on irrigation systems8; and
8MPWMD Regulation XIV.
5
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iii. mandatory water efficiency requirements for all non-residential customers and
certain residential customers.9
c. CAW will continue programs to detect and reduce non-revenue system losses, including:
i. replacement of older water mains and service lines in areas shown to be more leak
prone;
ii. water meter replacement;
iii.
active leak detection;
iv.
technological solutions to manage lost water; and
v.
operational fixes such as pressure reduction.
d. CAW will submit an application to modify revised Rule No. 14.1.1, Water Conservation
and Rationing Plan for the Monterey District to the California Public Utilities Commission
(“CPUC”) for approval10.
2. Alternative and Supplemental Water Supplies – CAW and other Parties have developed
and/or are implementing projects to provide replacement and supplemental water supplies
to CAW’s Carmel River water supplies subject to the CDO:
a. CAW has submitted an application to the CPUC for approval of the MPWSP, which will
allow CAW to eliminate all unauthorized diversions from the Carmel River in fullcompliance with the CDO. In September 2014 Governor Jerry Brown signed SB 936,
authored by Senators Bill Monning and Anthony Cannella, with Assemblymen Mark
Stone and Luis Alejo. This legislation will allow the MPWSP to utilize partial public
financing if it is available at a lower rate than conventional, private project financing.
The MPWSP includes the following components:
i. Desalination Plant and associated source wells and conveyance system, which will
produce up to 9,752 acre feet per annum for system demand;
ii. ASR of water lawfully diverted from the Carmel River and stored in the Seaside
Groundwater Basin, which may allow for an annual average storage of 1,300 acrefeet; and
9MPWMD Regulation XIV.
10Rule 14.1.1 was reviewed by the CPUC in its “Decision Authorizing Modifications to the Rationing Plan in Rule
14.1 (D.09-07-023)” of 2007. Rule 14.1.1 has been implemented by CAW in coordination with MPWMD, though its
Ordinance 137. CAW and MPWMD are developing further refinements to this plan.
6
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iii. GWR, which is a project that could produce up to 3,500 acre feet per annum.
CAW is pursuing GWR as an option in conjunction with, and with significant effort
on funding and other aspects of the project by, MPWMD and MRWPCA.
b. CAW has also pursued various smaller projects to make use of lawful diversions from
the Carmel River, including pursuing a permit for diversion under Table 13 of SWRCB D.
1632 (July 6, 1995), and supporting and facilitating changes to other water rights to
permit beneficial uses within CAW’s service area; and
c. CAW and other Parties have supported additional water development projects within
the CAW service area, including:
i. Efforts by Pacific Grove to recycle and reuse municipal wastewater on city-owned
golf course and cemetery; and
ii.
Efforts by Pacific Grove to capture and use storm water for non-potable uses.
3. Fish and Wildlife Protection and Enhancement Measures – CAW and other Parties have
developed and implemented measures to protect and enhance fish and wildlife resources in
the Carmel River watershed, and to avoid or minimize effects to fish and wildlife associated
with extension of the CDO deadline:
a. Pursuant to a 2009 agreement between CAW, the National Oceanic and Atmospheric
Administration (“NOAA”) and the California Department of Fish and Wildlife (“CDFW”),
as amended in 2014, CAW made a one-time payment of $3.5MM in 2009, annual
payments of $1.1MM per year for 2010 through 2013, and has committed to makeannual payments of $1.1MM per year through 2016 to the California Coastal
Conservancy (“CCC”) for environmental protection and enhancement projects in the
Carmel River watershed;
b. Provided that NOAA and CAW mutually agree to terms for extending the 2009
agreement described in Paragraph 3.a., above, CAW is committed to making additional
annual payments of $1.1MM, to be pro-rated for any partial years until unpermitted
diversions of water from the Carmel River are replaced by legal sources of water, for use
on projects during the period of the requested extension of the CDO deadline;
i. Funding and administrative efforts will focus, with the support of CAW and other
Parties, on projects that can be implemented during the extension period to
mitigate potential effects of the extension;
ii. To the extent MPWMD receives funding to carry out or implement mitigation
measures that arise out of the 2009 agreement described in 3.a. above, MPWMD
will use best efforts, including by fully cooperating with NOAA, CDFW, CCC, and
the Carmel River Steelhead Association, to identify, develop, then implement
7
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projects that will convey mitigation benefits for the Carmel River before
December 31, 2020.
c. CAW has permitted, initiated construction and is currently over half way done with
construction activities to reroute the Carmel River and remove the San Clemente Dam.
Status of the various construction activities include complete excavation of the reroute
cut, nearly complete installation of the diversion dike and the moving of over one
million cubic yards of rock and sediment;
d. Subject to final approval from CDFW, NOAA, and any other agencies with permitting
jurisdiction, CAW is committed to implementing up to $2.5MM in other projects on the
Carmel River to improve fish passage and habitat. These include, in order of priority and
estimated costs: additional spawning gravel injections below San Clemente Dam using
excess gravel from the San Clemente Dam removal project or from Los Padres reservoir
should there be an insufficient quantity or type at San Clemente ($0.2MM);improvements to the existing upstream fish passage ladder and trap at Los Padres Dam
($0.2MM); installation of a fish screen at the lower outlet pipe on Los Padres Dam
($0.8MM); a pit tagging program ($0.8MM); and a through-reservoir survival study for
Los Padres Reservoir ($0.5MM). Should the higher priority projects exceed the
estimated amounts, funding will be pulled from the lower priority projects until the
entire $2.5MM is utilized. Additionally, the estimated cost from the above projects may
be used to supplement other related projects occurring on the Carmel River (i.e., pit
tagging work being contemplated by MPWMD).
e. In July 2013 CAW requested the CPUC’s approval to fund a study to determine the
ultimate disposition of the Los Padres Dam and Carmel River;
1. If the CPUC approves expenditure of these funds before the close of the second
quarter of 2015, CAW expects to:
2. Fund MPWMD to continue independently studying the fate of the Los Padres
Dam. CAW will contribute up to $1.0MM minus CAW staff time of $24K per
year to assist MPWMD. Studies will include evaluating upstream steelhead
passage at Los Padres Dam, whether the public trust resources of the Carmel
River will be adversely affected or enhanced by removal or alteration of Los
Padres Dam, what options exist to maintain physical existing surface storage in
Los Padres Reservoir, and analysis of the potential geomorphic effects of a
resumption or increase of the natural flow of sediment;
3. Work with MPWMD to Develop the scope of work and award the feasibility
study to a qualified environmental consultant by the close of the third quarter
of 2015; and
4. Complete the study during 2018.
8
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f. CAW will continue to fund mitigation measures pursuant to MPWMD’s current
mitigation program through December 31, 2020.
9
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Water Year
(Oct - Sep)
Base
Amount
Mandatory
Cumulative
Annual
Reduction
Potential
Additional
Rampdown
if Condition
3 a.(2)(i)
Estimated
ASR Project
Operational
Yield
Estimated
Sand City
Desal
Plant
Estimated
Small
Project
Output
Estimated
Water
Supply
Project
Output
Total to
Base
Amount
Total
Estimated
Amount
Diverted
from
Carmel
River
Estimated
Amount
Diverted
w/o Valid
Basis of
Right
2009-2010 10,978 549 0 145 75 0 0 769 10,209 6,833
2010-2011 10,978 549 0 145 290 0 0 984 9,994 6,618
2011-2012 10,978 670 0 145 280 0 0 1,095 9,883 6,507
2012-2013 10,978 791 0 145 270 0 0 1,206 9,772 6,396
2013-2014 10,978 912 0 145 260 0 0 1,317 9,661 6,285
2014-2015 10,978 1,912 0 145 250 0 0 2,307 8,671 5,295
2015-2016 10,978 1,912 0 145 240 0 0 2,297 8,671 5,295
2016-2017 10,978 1,912 1,000 145 230 0 0 2,287 8,671 5,295
2017-2018 10,978 1,912 1,000 145 230 0 0 2,287 8,671 5,295
2018-2019 10,978 1,912 1,000 145 230 0 0 2,287 8,671 5,295
2019-2020 10,978 1,912 1,000 145 230 0 0 2,287 8,671 5,295
2020-2021 10,978 1,912 1,000 145 230 0 2,688 2,287 4,705 1,329
2021-2022 10,978 n/a n/a 145 230 0 10,753 2,287 3,376 0
PROJECTED REDUCTIONS IN ILLEGAL DIVERSIONS FROM THE CARMEL RIVER (AF)
ATTACHMENT 1
TABLE 1
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Monterey Peninsula Regional Water AuthorityAgenda Report
Date: March 12, 2015
Item No: 7.
№06/12
FROM: Executive Director Cullem
SUBJECT: Receive Report, Discuss, and Provide Staff Direction on The "Summary"Monterey Peninsula Water Supply Project Schedule.
RECOMMENDATION:
It is recommended that the Water Authority Board receive a report from Cal Am on thestatus of the construction of the test slant well and on the summary MPWSP schedule.
DISCUSSION:
Cal Am will provide an update on the status of the slant test well including an update ofthe "Summary Permits and Approvals" schedule.
ATTACHMENTS:
Current Cal Am "Summary" Schedule for Permits and Approvals
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PWSP Anticipated Schedule
2018201720162015
DEIR
April
FEIR
October
Construction & Commissioning
M A M J J A S O N D
90%
Q3
FinalQ4
Construction & Commissioning
Start Construction
Q4-2016
Design, Land, Permitting & Contracts
CCC
Decision
Mid 2016
The schedule is based on the information and assumptions available at time of update and is accurate to +/-6 months.
SWRCB Current
CDO Deadline
Dec. 31, 2016
!
elines / Tanks / BPS
sal Plant
t Well
R / CPCN / CDP
st.
Slant Wells
Phase 1
2019J F M A M
CPUCDecision
Feb.
Slant Wells
Phase 3
Slant Wells
Phase 2
Production Wells
Late 2018 Q
Start
Q3/Q4
(if needed)
Design & Permitting
PWSP Anticipated Schedule
Snowy Plover Nesting Season
Limited Construction ActivitySnowy Plover Nesting Season
Limited Construction Activity
Snowy Plover Nesting Season
Limited Construction Activity
Updated Janua
WR
Testimony
Nov-Dec
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
CPUC Evid.
Hearings &
Briefings
Jan-Feb
CPUC Proposed
Decision &
Action
May-June
Draft Water
Purchase
Agreement
Q2
Start-up
Window
Q3 to Q4
Construction & Commissioning
LWP
RWQCB Application
Aug.
Start-up
Test Well Operation
Ct RFQ/RFP & Approve
DB Contractor
March to May
Construction
November
Start-up Windo
Partial or Ful
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Monterey Peninsula Regional Water AuthorityAgenda Report
Date: March 12, 2015
Item No: 8.
№06/12
FROM: Executive Director Cullem
SUBJECT:Designation of Alternate Water Authority Representative On theGovernance Committee
RECOMMENDATION:
Staff recommends that the Authority designate an alternate representative
to the Governance Committee (GC).
DISCUSSION:
Mayor Burnett serves as the Water Authority representative to the GC. Withthe departure of Chuck Della Sala from the Water Authority Board, theposition of alternate Authority representative is vacant. The GovernanceCommittee has requested the Board designate a replacement by name orposition.
ATTACHMENTS:None
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Monterey Peninsula Regional Water AuthorityAgenda Report
Date: March 12, 2015
Item No: 9.
№06/12
FROM: Executive Director Cullem
SUBJECT: Receive Report, Discuss, and Provide Direction on Authority LegalExpenses
RECOMMENDATION:
It is recommended that the Water Authority Board review the budgeted and actualexpenditures for Special Counsel Services for CY 2013-2015/ FY 2013-2016.
DISCUSSION:
In March 2012, The Authority negotiated an agreement for Attorney of Record services
with Brownstein Hyatt Farber Schreck (Brownstein). The firm provided special expertise
in water law in support of Water Authority formation and activities.
At its meeting of Jan 9, 2014, the Authority extended the Brownstein agreement to
December 31, 2014, and at its meeting of November 13, 2014 the contract was
extended to December 31, 2015. In the budget, the line item for the legal services was
changed to read "Special Counsel" for FY 2013-2015.
Estimated expenditures Special Counsel services for CY 2014 and for CY 2015 wereprovided by Brownstein and are at Attachments A and B. These CY estimates were
used to develop FY 2013-2014 and FY 2014-2015 budget entries and the estimate for
FY 2015-2016.
BUDGET CONSIDERATIONS:
On January 9, 2014 the Authority Board approved an additional $86,000 to the FY2013-2014 Special Counsel budget for a total of $186,000. Actual expenditures at year-
end were $142,185.
On November 13, 2014 the Authority approved a total contract price not-to-exceed$152,000, with no change to the FY 2014-2015 Special Counsel budget of $152,000.Expenditures as of March 1, 2015 total $26,484 and are projected to remain well withinbudget.
For FY 2015-2016 the budget for Special Counsel is estimated to be $150,000.
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ATTACHMENTS:
A- Brownstein Hyatt Farber Schreck Estimated Budget for CY 2014B- Brownstein Hyatt Farber Schreck Estimated Budget for CY 2015
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015621\0002\10889833.1
Memorandum
DATE: December 5, 2013
TO: Monterey Peninsula Regional Water Authority
FROM: Russell M. McGlothlin
RE: Estimated 2014 Budget for Legal Services from Brownstein Hyatt Farber Schreck
You have requested that we estimate the budget for legal services from our firm for calendar year 2014.The attached table estimates the 2014 budget for our anticipated representation of the MontereyPeninsula Regional Water Authority (Authority) with respect to: (1) the pending application by CaliforniaAmerican Water for issuance of a Certificate of Public Convenience and Necessity from the CaliforniaPublic Utilities Commission for the proposed Monterey Peninsula Water Project (Application 12.04.012);and (2) discussions and negotiations with the State Water Resources Control Board concerningoperation of the Cease and Desist Order (SWRCB Order 2009-0060).
The table estimates the budget for the principal categories of work that we anticipate in 2014 and issegregated by quarter. Additional work, either for these proceedings, but beyond the matters listed, orwork unrelated to these proceedings, may necessitate expenditures beyond those estimated below.
The variance between the low and high estimates reflects the inherent uncertainty concerning thescope of necessary work. Where possible and appropriate we will seek to coordinate with other entities(e.g., MPWMD) to ensure efficient and cost-effective representation.
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2015621\0002\10889833.1
Estimated Budget for CPUC A.12.04.019 and SWRCB CDO (2014)
Task/Matter Quarter Low High
Briefing on Settlement Agreement, Including JurisdictionalIssues Pertaining to Governance Committee
1 $6,000 $9,000
Prepare and Submit Comments on Draft EIR 1 $8,000 $12,000
Securitization Legislation 1 $3,000 $5,000Prepare for and Attend Quarterly Check-in Call with SettlingParties
1 $500 $2,000
Efforts re Modification of CDO 1 $6,000 $9,000
General Case/Matter Management Issues 1 $8,000 $12,000
Subtotal Q1 $31,500 $49,000
Opening and Reply Briefing 2 $10,000 $15,000
Review and Correspondence re Final EIR 2 $3,000 $5,000
Comments on Proposed Decision $10,000 $15,000
Securitization Legislation 2 $3,000 $5,000
Ex Parte Meeting(s) (Not Certain) 2 $6,000 $9,000
Prepare for and Attend Quarterly Check-in Call with SettlingParties
2 $500 $2,000
Efforts re Modification of CDO 2 $6,000 $9,000
General Case/Matter Management Issues 2 $8,000 $12,000
Subtotal Q2 $46,500 $72,000
Ex Parte Meeting(s) (Not Certain) 3 $3,000 $6,000
Review and Correspondence re CPCN Phase I 3 $4,000 $6,000
Prepare for and Attend Quarterly Check-in Call with SettlingParties
3 $500 $2,000
Efforts re Modification of CDO 3 $6,000 $9,000
General Case/Matter Management Issues 3 $8,000 $12,000
Subtotal Q3 $21,500 $35,000
GWR Phase - Testimony 4 $10,000 $15,000
Prepare for and Attend Quarterly Check-in Call with SettlingParties
4 $500 $2,000
Efforts re Modification of CDO 4 $6,000 $9,000
General Case/Matter Management Issues 4 $8,000 $12,000Subtotal Q4 $24,500 $38,000
Total 2014 $124,000 $194,000
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3015621\0002\10889833.1
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015621\0002\11886765.1
Russell M. McGlothlinAttorney at Law
805.882.1418 tel805.965.4333 faxRMcglothlin@bhfs.com
Memorandum
DATE: February 5, 2015
TO: Monterey Peninsula Regional Water Authority
FROM: Russell M. McGlothlin
RE: Estimated 2015 Budget for Legal Services from Brownstein Hyatt Farber Schreck
You have requested that we estimate the budget for legal services from our firm for calendar year 2015.The attached table estimates the 2015 budget for our anticipated representation of the Monterey PeninsulaRegional Water Authority (Authority) with respect to: (1) the pending application by California AmericanWater for issuance of a Certificate of Public Convenience and Necessity from the California Public UtilitiesCommission for the proposed Monterey Peninsula Water Project (Application 12.04.012); and (2)discussions and negotiations with the State Water Resources Control Board concerning extension ofdeadlines set forth in the Cease and Desist Order (SWRCB Order 2009-0060).
Our budget for 2014 was for a low of $124,000 and high of $194,000. Our actual billings for workperformed in 2014 was $86,496. The lower than anticipated expense was, in part, the fact that many of theprojected work items for 2014 were postponed by delays in the MPWSP project (e.g., CPUC extensions).
Many of those items are now scheduled for 2015.
The table below estimates the budget for the principal categories of work that we anticipate in 2015 and issegregated by quarter. Additional work, either for these proceedings, but beyond the matters listed, or workunrelated to these proceedings, may necessitate expenditures beyond those estimated below. Thevariance between the low and high estimates reflects the inherent uncertainty concerning the scope ofnecessary work. Where possible and appropriate we will seek to coordinate with other entities (e.g., Cal-Am and MPWMD) to ensure efficient and cost-effective representation.
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2015621\0002\11886765.1
Estimated Budget for CPUC A.12.04.019 and SWRCB CDO (2015)
Task/Matter Quarter Low High
Prepare for and Attend Quarterly Check-in Call with Settling Parties 1 $1,000 $2,000
Securitization 2 $1,000 $3,000
Efforts re Modification of CDO 1 $4,000 $7,000
General Case/Matter Management Issues 1 $6,000 $10,000
Subtotal Q1 $12,000 $22,000
Review, Correspondence, and Comments re Draft EIR for MPWSP 2 $6,000 $9,000
Opening Brief 2 $8,000 $14,000Review, Correspondence, and Comments re Draft EIR, Draft WPA,Draft Financing Plan, and Source Water Agreement for GWR
2 $8,000 $14,000
Securitization 2 $1,000 $3,000
Ex Parte Meeting(s) (Not Certain) 2 $3,000 $6,000
Prepare for and Attend Quarterly Check-in Call with Settling Parties 2 $1,000 $2,000
Efforts re Modification of CDO 2 $7,000 $10,000
General Case/Matter Management Issues 2 $8,000 $12,000
Subtotal Q2 $42,000 $70,000
Reply Brief 3 $6,000 $9,000
Review, Correspondence, and Comments re Final EIR for GWR 3 $3,000 $6,000
Ex Parte Meeting(s) (Not Certain) 3 $3,000 $6,000
Securitization 3 $1,000 $3,000
Efforts re Modification of CDO 3 $7,000 $10,000
General Case/Matter Management Issues 3 $8,000 $12,000Subtotal Q3 $28,000 $46,000
Review, Correspondence, and Comments re Final EIR for MPWSP 4 $4,000 $7,000
Review, Correspondence, and Comments re Proposed Decision onPhase I
4 $6,000 $9,000
Prepare CPUC Testimony for GWR (Phase II) 4 $8,000 $12,000
Securitization 4 $1,000 $3,000
Prepare for and Attend Quarterly Check-in Call with Settling Parties 4 $1,000 $2,000
Efforts re Modification of CDO 4 $7,000 $10,000
General Case/Matter Management Issues 4 $8,000 $12,000
Subtotal Q4 $35,000 $55,000
Total 2015 $117,000 $193,000
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Monterey Peninsula Regional Water AuthorityAgenda Report
Date: March 12, 2015
Item No: 10.
№06/12
FROM: Executive Director Cullem
SUBJECT: Receive a Report, Discuss, and Provide Direction on Expected Creditsto City Contributions for FY 2014-2015 Subject to Receipt of MontereyCounty Fair Share, and on an Initial Budget Estimate and EstimatedMember Contributions for FY 2015-2016.
RECOMMENDATION:
It is recommended that the Water Authority receive an update, discuss, and provide
staff direction on credits due to the Cities for FY 2014-2015 contributions if MontereyCounty does, in fact, forward its $155,951 fair-share contribution for FY 2014-2015, onthe draft preliminary budget for FY 2015-2016, and on projected member contributions.
DISCUSSION:
Contributions invoiced and paid by the six Cities of the MPRWA for FY 2014-2015totaled $337,312. Those contributions, plus the $121,368 carryover from FY 2013-2014,total the $458,680 approved budget. See attachment A.
These contributions could have been lower if the County agreed to pay its fair-sharecontribution of $ $155,951. However, although the Board of Supervisors approved acontribution of $153,000 in its budget for FY 2014-2015, the Board has indicated it willnot authorize disbursement until the Water Authority provides additional justificationbeyond that provided by the Executive Director in testimony before the Board onSeptember 30, 2014.
Should the County make its contribution before the close of the fiscal year, the Citieswill be due a refund for the difference of contributions paid "Without CountyContribution" and that due "With County Contribution" as shown on the table at
Attachment A.
The draft budget will be presented to the Water Authority for a detailed review anddiscussion in April or May, however, Authority members have expressed a desire tohave a preliminary budget estimate to allow the member jurisdictions sufficient time toconsider contributions to the MPRWA as part of their budget process.
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A preliminary estimate of the FY 2015-2016 is at Attachment B. It is based on anassumption that expenditures will be close to those we have experienced in FY 2014-2015. Note, however, that the slowdown in the CPUC process has constrained theutilization of Special Counsel this year and that situation is unlikely to reoccur next FY.
The preliminary contributions to be requested from each jurisdiction are at Attachment Cand were computed by subtracting the projected FY 2014-2015 year-end balance($100,000) from the estimated FY 2015-2016 budget of $390,000.
ATTACHMENTS:
A- Member Contributions for FY 2014-2015
B-Preliminary budget estimate for FY 2015-2016C-Projected Member Contribution for FY 2015-2016 with County Participation
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