MPRWA Agenda Packet 12-10-15

Agenda Monterey Peninsula Regional Water Authority (MPRWA)

REGULAR MEETING

7:00 PM, Thursday, December 10, 2015 Council Chamber 580 Pacific Street

Monterey, California

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

PUBLIC COMMENTS PUBLIC COMMENTS allows you, the public, to speak for a maximum of three minutes on any subject which is within the jurisdiction of the MPRWA and which is not on the agenda. Any person or group desiring to bring an item to the attention of the Authority may do so by addressing the Authority 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 contact the sender concerning the details.

CONSENT AGENDA

1. Approve Minutes from August 13, 2015 - Milton -

2. Approve Minutes from November 12, 2015 - Milton

3. Approve and File Authority Checks Through December 10, 2015 - Milton

4. Receive Report on the November 17, 2015 Update of the California Public Utilities

Commission (CPUC) Schedule for the Monterey Peninsula Water Supply Project - Cullem

5. Terminate the Contract with the City of Seaside for Clerk of the Board and Financial

Support Services for the Monterey Peninsula Regional Water Authority (MPRWA) as of Dec 31, 2015, Adopt Resolution 2015-ZZ Approving an Agreement with the City of Monterey for Those Services, and Authorize The Authority President to Execute a Contract with the City of Monterey for at a Price not to Exceed $15,000 for the Period January 1 to June 30, 2016 - Cullem

6. Approve Extension of the Separation Processes Inc (SPI) Contract Until 30 June 2016 for

Additional Technical Support to the MPRWA and Authorize the Expenditure of Not-to- Exceed $10,000 from Reserve Funds - Cullem

AGENDA ITEMS

7. Presentation of Certificate of Appreciation to Lesley-Rerig Milton - Cullem

Thursday, December 10, 2015

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8. Receive Report and Discuss the Status of the Pure Water Monterey (PWM) / Ground Water Replenishment (GWR) Project - Cullem/Stoldt

9. Receive an Update on the Summary Project Schedule for the Monterey Peninsula Water

Supply Project (MPWSP), including Award of Production Well and Conveyance System Contracts and Status of Test Slant Well Operations and Results - Crooks

10. Receive Report, Discuss, and Revise the Mission, Purpose, and Sunset of the Monterey

Peninsula Regional Water Authority - Cullem

ADJOURNMENT

The City of Monterey is committed to including the disabled in all of its services, programs and activities. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (831) 646-3935. Notification 30 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.102-35.104 ADA Title II]. Later requests will be accommodated to the extent feasible. For communication-related assistance, dial 711 to use the California Relay Service (CRS) to speak to City offices. CRS offers free text-to-speech, speech-to-speech, and Spanish-language services 24 hours a day, 7 days a week. If you require a hearing amplification device to attend a meeting, dial 711 to use CRS to talk to the City Clerk's Office at (831) 646-3935 to coordinate use of a device. Agenda related writings or documents provided to the MPRWA are available for public inspection during the meeting or may be requested from the Monterey City Clerk’s Office at 580 Pacific St, Room 6, Monterey, CA 93940. This agenda is posted in compliance with California Government Code Section 54954.2(a) or Section 54956.

Monterey Peninsula Regional Water Authority Agenda Report

Date: December 10, 2015

Item No: 3.

FROM: Authority Clerk Milton

SUBJECT: Approval and File Authority Checks through December 4, 2015

RECOMMENDATION:

It is recommended that the Authority approve and file the accounts payable payments made during the period Through December 4, 2015 with total payments for the above referenced period of $33,534.85 from the general fund account and authorize the Directors to sign for such checks. These will be the final invoice payments for the FY 15-16 year.

DISCUSSION:

At its meeting on September 12, 2013, the Authority Board approved a staff recommendation to provide the Directors a listing of financial obligations since the last report for inspection and confirmation. Each invoiced expense has been reviewed and approved by the Executive Director and Finance personnel prior to payment to insure that it conforms to the approved budget.

The following checks are hereby submitted to the Authority for inspection and confirmation.

• $28,234.86 to Brownstein Hyatt Farber and Schreck for Special Legal Counsel Services.

• $ 5,000 to Perry and Freeman

• $ 300.00 to Access Monterey Peninsula

The bank balance as of December 4, 2015 is sufficient cover the above check therefore, staff is recommending approval.

MPRWA Meeting, 12/10/2015 , Item No. 3., Item Page 1, Packet Page 1



Item No: 4.

№06/12

FROM: Executive Director Cullem SUBJECT: Receive the Most Recent Update of the California Public Utilities Commission (CPUC) Schedule for the Monterey Peninsula Water Supply Project RECOMMENDATION: Staff recommends that the Water Authority receive the current CPUC schedule for the Monterey Peninsula Water Supply Project (MPWSP) dated November 17, 2015. DISCUSSION: At its meeting of January 8, 2015, the Water Authority received a January 5, 2015 staff revision of the October 7, 2013 CPUC schedule for the MPWSP including the activities needed for the GWR project. On January 23, 2015, CPUC Administrative Law Judge (ALJ) Weatherford announced a decision making additional changes to the CPUC schedule. On February 12, 2015 the Water Authority was provided an update of the CPUC schedule and the TAC was briefed on on March 2, 2015. On August 19, 2015, CPUC Commissioner Sandoval changed the date for the CPUC Decision on Certification of the FEIR and issuance of the CPCN from December 16, 2015 to December 31, 2016. On November 17, 2015 CPUC Administrative Judge Weatherford issued a revised schedule included as Attachment A. ATTACHMENTS: A- CPUC schedule for the MPWSP dated November 17, 2015.


A.12-04-019 GW2/ ar9

ADOPTED SCHEDULE FOR A.12-04-019

DATE PHASE 1 PHASE 2

December 15, 2015 Supplemental testimony with updated MPWSP costs

January 22, 2016 Supplemental testimony on demand and supply, brine discharge, and return water

Testimony, including the WPA and applicant's showing on the WPA

January to May 2016 [a]

Phase 1 settlement discussions Phase 2 settlement discussions

March 22, 2016 Concurrent rebuttal testimony Concurrent rebuttal testimony

April 14-15, 2016 Evidentiary hearings on Phase 1 updates

Evidentiary hearings for Phase 2

May 2016 Opening Brief on Phase 2 May 2016

(2 weeks following opening brief)

Reply Brief on Phase 2

Same date as Reply Brief

Motion for separate Phase 2 decision

July 2016 If two decisions: Target for Phase 2 Proposed Decision

August 2016 If two decisions: Target for Commission action on Phase 2 decision

TBD CPUC's issuance of combined Draft EIR/EIS

45 days after issuance of DEIR/DEIS

Close of comment period on DEIR/DEIS

15 days after close of DEIR/ DEIS comment

period Opening Legal and Policy Briefs

30 days after close of DEIR/DEIS comment

period Reply Legal and Policy Brief

TBD If two decisions: Phase 1 PD

I BD If two decisions: Commission action on Phase 1 PD

[al Parties may engage in settlement discussions throughout the proceeding and may file a motion for Commission adoption of a settlement up to 30 days after the last day of hearing. (Rule 121)

"TBD" is "to be determined."




Item No: 5.

FROM: Executive Director Cullem SUBJECT: Terminate the Contract with the City of Seaside for Clerk of the Board and

Financial Support Services for the Monterey Peninsula Regional Water Authority (MPRWA) as of Dec 31, 2015, Adopt Resolution 2015-ZZ Approving an Agreement with the City of Monterey for Those Services, and Authorize The Authority President to Execute a Contract with the City of Monterey for at a Price not to Exceed $15,000 for the Period January 1 to June 30, 2016.

RECOMMENDATION: It is recommended that the Authority terminate the contract with the City of Seaside for Clerk of the Board and Financial Support Services as of Dec 31, 2015, adopt a resolution (Attachment A) approving an agreement with the City of Monterey for those services, and authorize the Authority President to enter into the contract (Attachment B) on behalf of the Water Authority for the period January 1 to June 30, 2016, at a price not-to-exceed $15,000. DISCUSSION: When the Monterey Peninsula Regional Water Authority was formed as a JPA in 2012, the intent was for the member agencies to provide Executive Director and Administrative and Clerical support services on a rotating basis. Over time it became obvious that this was not a workable arrangement as the time demands were substantial and there was need for more specialized expertise. In Feb 2013 the Authority contracted with the City of Monterey to serve as Agency of Record and to provide the Executive Director and Clerk of the Board Services. In September 2013 Monterey sub-contracted with the City of Seaside to provide the Clerk of the Board but retained the contract to remain the Agency of Record and to employ the Executive Director on a reimbursable basis. The City of Carmel-by-the-Sea provided financial services on a pro-bono basis. In January 2014, the City of Seaside assumed financial services as a part of the Clerical Services contract. On September 11, 2014 the City of Seaside contracted directly with the Authority to provide Clerk, administrative, and financial services. Monterey agreed to provide back-up for Seaside.


In Feb 2015, the City of Monterey and the Authority extended the contract for Agency of Record and Executive Director services until June 30, 2016. The Agreements with Monterey and Seaside provide that any party may give 30 days notice to discontinue providing respective services. Due to an increasing workload at Seaside, the Clerk of the Board will be unable to serve the Water Authority past the end of 2015. Accordingly, Seaside gave notice it would terminate its contract with the Authority as of Dec 31, 2015. In order to provide a maximum of continuity and to retain access to the City of Monterey (Agency of Record) computer system, the Executive Director requested the City of Monterey to return to its original contract arrangement with the Water Authority as of Jan 1, 2015. Under that contract, Monterey would resume providing Clerk of the Board services including financial support. FISCAL IMPACT: The contract with the City of Seaside provides for a reimbursement of $30,000 per fiscal year. Since the City will terminate the contract half-way through the fiscal year, it will have received $15,000 in reimbursement for FY 15-16 and the City of Monterey would receive $15,000 for the period Jan 1 to June 30, 2016. ATTACHMENTS: A- Resolution 2015-ZZ B- Draft Contract with the City of Monterey


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RESOLUTION NO. 15-

RESOLUTION OF THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY APPROVING AN AGREEMENT WITH THE CITY OF MONTEREY FOR PROVIDING

ADMINISTRATIVE, CLERK AND FINANICAL SERVICES

WHEREAS, the City of Monterey is a participating Member of the Monterey Peninsula Regional Water Authority; and

WHEREAS, the Authority has deemed it to be more efficient to contract for continuous administrative services rather than rotating between member cities; and

WHEREAS, the City of Monterey remains the Office of Record for the Authority and had contracted to provide administrative and clerical services to the Authority from 2012 to 2013 including provision of the Clerk of the Board; and

WHEREAS, in September 2013 the City of Seaside agreed to subcontract with the

City of Monterey to provide administrative and Clerk support to the Authority, and as of January 1, 2014 took over full financial services for the Authority, and

WHEREAS, a contract between Seaside and the Authority executed on October 1,

2014 to continue the provision of administrative, financial, and Clerk support, will terminate on December 31, 2015, and

WHEREAS, the City of Monterey is willing to resume the contract to provide subject

services to the Authority from January 1, 2016 to June 30, 2016 at a fee of $15,000,

NOW THEREFORE BE IT RESOLVED, that the President is hereby authorized to execute a contract between the Monterey Peninsula Regional Water Authority and the City of Monterey to provide administrative, clerk and financial services, as outlined in Exhibit A, for the period January 1, 2016 to June 30, 2016 for a fee of $15,000. PASSED AND ADOPTED BY THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY this ___ day of ____ 201_, by the following vote: AYES: DIRECTORS: NOES: DIRECTORS: ABSENT: DIRECTORS: ABSTAIN: DIRECTORS:

APPROVED:


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ATTEST:

Jason Burnett President

Clerk to the Authority

EXHIBIT A

SCOPE OF SERVICES/PAYMENT PROVISIONS

CLERK OF THE BOARD AND FINANCIAL SERVICES

I. City of Monterey to Provide the Following: A. Clerk of the Board and Administrative Services:

♦ Produce and distribute Agendas and Packets for Board & TAC meetings ♦ Attend & take minutes at Board & TAC meetings ♦ Transcribe, format, & finalize meeting minutes ♦ Complete administrative paperwork to follow up on Board actions ♦ Records management services ♦ FPPC filing administration ♦ Website administration

B. Financial Services

♦ Financial services in accordance to the adopted Financial policies and Procedures including the following:

o Production of an annual budget and budget amendments as necessary

o General Journal Entry Procedures, Expenditures and Disbursements o Bank Reconciliation and Final Budget Closing processes

C. Equipment:


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♦ Office space and computer work stations for staff assigned to water authority functions

♦ Administrative and clerical supplies related to Clerk’s Office activity. ♦ Monterey City Council Chamber as a meeting facility ♦ Audio-visual equipment that exists in the Council Chamber ♦ Office space and computer work stations with content management

software in Monterey.

D. Miscellaneous Services Performed by City of Monterey:

♦ Monterey to set up and prepare the meeting rooms for Board and TAC meetings

♦ Payroll Services for Monterey employee(s) providing these services ♦ Tracking of employee hours and resultant costs of services provided

II. MPRWA to Provide the Following:

♦ An amount of $15,000 semi-annually, paid to the City of Monterey at the commencement of the contract, and to be allocated as a portion of Salaries within the Office of the City Clerk to be paid as part of the regular payroll to employee(s) performing the services described in Exhibit A herein


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AGREEMENT FOR CLERK of the BOARD SERVICES

City of Monterey and Monterey Peninsula Regional Water Authority

THIS AGREEMENT for Clerk of the Board Services is made and entered into this ____ day of ______, 2015, by and between the City of Monterey (hereinafter “Monterey”), a municipal corporation, as the service provider, and the Monterey Peninsula Regional Water Authority, a Joint Powers Authority (hereinafter “MPRWA”).

WHEREAS, MPRWA desires to utilize the City of Monterey for Clerk-of-the-Board services, and administrative assistance related to these services, as outlined in detail in the attached Exhibit A; and

WHEREAS, Monterey is willing and qualified to provide such services to MPRWA upon the terms and conditions set forth herein; and WHEREAS, California Government Code section 54981 provides the City of Monterey and the Board of Directors of MPRWA with the authority to contract for performance of municipal services by the former within the territory of the later; and WHEREAS, the City of Monterey became a member of the Monterey Peninsula Regional Water Authority on January 25, 2012 by the passage of Resolution No. 12-014 C.S. and

WHEREAS, the MPRWA Board of Directors authorized this agreement on December 10, 2015 by Resolution.

NOW, THEREFORE, in consideration of the recitals and the mutual obligations of the parties as herein expressed, Monterey and MPRWA agree as follows: 1. SERVICES TO BE PROVIDED. The MPRWA hereby engages Monterey to perform, and Monterey hereby agrees to perform, the services described in Exhibit A in conformity with the terms of this Agreement.

1.01. FINAL DECISION AUTHORITY. MPRWA’s Executive Director shall have

final decision authority over the results of the services performed on behalf of MPRWA, and all work performed by Monterey shall be to the satisfaction of MPRWA’s Executive Director. In instances where a dispute arises over the Executive Director’s determination, MPRWA’s Board of Directors shall render a final decision.

1.02. DUTIES OF MONTEREY AND MPRWA. See Exhibit A. 1.03. EXTRA WORK. Monterey shall not perform extra work without written

authorization from MPRWA’s Executive Director or designee. Any extra work so authorized shall be within the general scope of work set forth in this Agreement.


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2. PAYMENTS BY MPRWA. MPRWA shall pay Monterey in accordance with the payment provisions set forth in Exhibit A, subject to the limitations set forth in this agreement. 3. TERM OF AGREEMENT.

3.01. INITIAL TERM. The term of this Agreement shall be from January 1, 2016 through June 30, 2016 unless sooner terminated pursuant to the terms set forth in section 8 herein.

3.02. EXTENSIONS. This Agreement may be extended by consecutive one (1) year

periods, or for shorter extension periods as agreed to by the parties, by written mutual agreement of the parties’ City Manager and Executive Director specifying the renewal and end dates. At the time of any extension, or at any other time as may be necessary during the term of the Agreement, the labor rates (Exhibit A) may be adjusted by written agreement between the Monterey City Manager and MPRWA Executive Director. Should either party decide not to extend the Agreement beyond the initial one (1) year or subsequent one (1) year terms, notice of such decision shall be provided to the other party no later than thirty (30) days before the expiration date of the Agreement. 4. ADDITIONAL PROVISIONS/EXHIBITS. The following attached exhibits are incorporated herein by reference and constitute a part of this Agreement. Exhibit A Scope of Services/Payment Provisions 5. PERFORMANCE STANDARDS. 5.01. Monterey warrants that Monterey and Monterey’s agents, employees, and subcontractors performing services under this Agreement are specially trained, experienced, competent, and appropriately licensed (if applicable) to perform the work and deliver the services required under this Agreement, and that they are not employees of MPRWA. 5.02. Monterey, its agents, employees and subcontractors shall perform all work in a safe and skillful manner and in compliance with all applicable laws and regulations. All work performed under this Agreement that is required by law to be performed or supervised by licensed personnel shall be performed in accordance with such licensing requirements. 5.03. Monterey shall furnish all materials, equipment, and personnel necessary to carry out the specific services set forth in Exhibit A herein, except as otherwise specified in this Agreement. Monterey shall not use MPRWA’s premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement. 5.04. Monterey shall perform all services set forth in Exhibit A in a timely manner consistent with the time Monterey would perform similar services within its own jurisdiction whenever possible; however, Monterey projects shall be given priority over MPRWA projects if scheduling conflicts arise and Monterey shall not be liable for any delays in performing MPRWA’s work if such delays are caused by such scheduling conflicts.


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6. EXCLUSIONS.

a. All discretionary reviews including, but not limited to: California Environmental Quality Act; National Environmental Protection Act; Clean Water Act: National Pollutant Discharge Elimination System Storm Water Post-Construction or local codes and regulations.

b. Review of agenda report submittals for compliance applicable laws and regulations.

7. PAYMENT CONDITIONS.

7.01. Payment for Monterey’s services under this Agreement shall be made by MPRWA annually at the commencement of the contract term upon submission by Monterey of an invoice. Payment shall be made within thirty (30) days after receipt of such invoice. An additional two percent (2%) will be paid as a late payment carrying charge for each thirty days of delinquency thereafter.

7.02. Monterey shall allocate the payment as a portion of Salaries within the Office of the

City Clerk to be paid as part of the regular payroll to employee(s) performing the services described in Exhibit A herein.

7.03. Monterey shall not receive reimbursement for travel expenses unless set forth in Exhibit A herein. 8. TERMINATION. 8.01. During the term of this Agreement, either party may terminate the Agreement for any reason by giving written notice of termination to the other party at least thirty (30) days prior to the effective date of termination. In the event of an adverse claim or litigation involving either party and related to the services of this Agreement, this Agreement may be terminated by either party giving written notice at least ten (10) days prior to the effective date of termination. Any termination notice shall set forth the effective date of termination. 8.02. MPRWA may cancel and terminate this Agreement for good cause effective immediately upon written notice to Monterey. “Good cause” includes the failure of Monterey to perform the required services at the time and in the manner provided under this Agreement. If MPRWA terminates this Agreement for good cause, MPRWA may be relieved of the payment of any consideration to Monterey, and MPRWA may proceed with the work in any manner which MPRWA deems proper. The cost to MPRWA shall be deducted from any sum due Monterey under this Agreement.

8.03. Monterey may cancel and terminate this Agreement for good cause effective immediately upon written notice to MPRWA. “Good cause” includes but is not limited to failure of MPRWA to pay Monterey at the time and in the manner provided under this Agreement or other failure of MPRWA to fulfill its responsibilities set forth in Exhibit A herein. Termination


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of this Agreement pursuant to this section shall not be construed to limit Monterey’s right to obtain, by any means available at law, the amount MPRWA still owes Monterey.

8.04 In the event of early termination of this agreement the unused portion of the

annual payment shall be returned to MPRWA, with the unused amount to be determined by subtracting the total hourly costs for work already performed from the annual payment amount. 9. IMMUNITY. As MPRWA’s authorized representative, Monterey shall be recognized as having rights to any immunities it is entitled to. In no event shall any duties contained in Exhibit A, or otherwise herein, negate any legal protections or immunities available to the parties under local, state or federal law. Monterey’s liability, including, without limitation, that referenced in Section 10 herein, shall be limited to an amount not to exceed the fee earned for each project. 10. MUTUAL INDEMNIFICATION.

10.01 Each Party shall indemnify, defend and hold harmless the other Party, to the extent allowed by law and in proportion to fault, against any and all third-party liability for claims, demands, costs or judgments (direct, indirect, incidental or consequential) involving bodily injury, personal injury, death, property damage or other costs and expenses (including reasonable attorneys' fees, costs and expenses) arising or resulting from the acts or omissions of its own officers, agents, employees or representatives carried out pursuant to the obligations of this Agreement.

10.02 Each Party shall protect, defend, indemnify and hold harmless the other Party (including their officials, employees and agents as the same may be constituted now and from time to time hereafter) from and against any and all liabilities, losses, damages, expenses or costs, whatsoever (including reasonable attorneys' fees, costs and expenses), which may arise against or be incurred by the other Party as a result of or in connection with any actual or alleged breach of this Agreement by either Party.

10.03 Except for any duties either Party owes to the other pursuant to the provisions of

this Agreement, nothing in this Agreement shall be construed to waive any legal protections or immunities available to the Parties under state or federal law 11. INSURANCE.

11.01 Each party shall maintain in effect, at its own cost and expense, the following insurance coverage provided either through a bona fide program of self-insurance, commercial insurance policies, or any combination thereof as follows:

a. Commercial General Liability or Public Liability with minimum limits of $1,000,000

per occurrence and $2,000,000 in the aggregate. Each party shall prove that is self insured to the limits specified or have its insurance policy endorsed to name the other party additionally insured.


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b. Auto Liability including owned, leased, non-owned, and hired automobiles, with a

combined single limit of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate.

c. If a party employs others in the performance of this Agreement, that party shall

maintain Workers’ Compensation in accordance with California Labor Code section 3700 with a minimum of $1,000,000 per occurrence for employer’s liability, for the duration of time that such workers are employed.

d. Each party shall maintain in effect throughout the term of this agreement all risk

property insurance, excluding earthquake and flood, on all permanent property of an insurable nature in an amount sufficient to cover at least 100% of the replacement costs of said property.

11.02 All insurance required by this Agreement shall:

a. Be placed (1) with companies admitted to transact insurance business in the State of

California and with a current A.M. Best rating of no less than A:VI or with carriers with a current A.M. Best rating of no less than A:VII; or (2) disclosed self-insurance with limits acceptable to the other party;

b. Provide that each party’s insurance is primary and non-contributing insurance to any

insurance or self-insurance maintained by the other party and that the insurance of the other party shall not be called upon to contribute to a loss covered by a party’s insurance; and

c. Subsequent to execution of this Agreement, each party shall file certificates of insurance with the other party evidencing that the required insurance is in effect.

12. NON-DISCRIMINATION. During the performance of this Agreement, Monterey, and its subcontractors, shall not unlawfully discriminate against any person because of race, religious creed, color, sex, national origin, ancestry, physical disability, mental disability, medical condition, marital status, age (over 40), or sexual orientation, either in Monterey’s employment practices or in the furnishing of services to recipients. Monterey shall ensure that the evaluation and treatment of its employees and applicants for employment and all persons receiving and requesting services are free of such discrimination. Monterey and any subcontractor shall, in the performance of this Agreement, fully comply with all federal, state, and local laws and regulations which prohibit discrimination. The provision of services primarily or exclusively to such target population as may be designated in this Agreement shall not be deemed to be prohibited discrimination. 13. INDEPENDENT CONTRACTOR. In the performance of work, duties, and obligations under this Agreement, Monterey is at all times acting and performing as an independent contractor and not as an employee of MPRWA. No offer or obligation of permanent employment with MPRWA or particular MPRWA department or agency is intended in any


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manner, and Monterey shall not become entitled by virtue of this Agreement to receive from MPRWA any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. 14. NOTICES. Notices required under this Agreement shall be delivered personally or by first-class, postage pre-paid mail to MPRWA’s and Monterey’s contract administrators at the addresses listed below:

FOR MPRWA: FOR MONTEREY:

Jason Burnett President

Michael McCarthy City Manager

c/o 735 Pacific Street City Hall Monterey, CA 93940 Monterey, CA 93940

Ph: (831) 238-0009 Ph: (831) 646-3760

15. MISCELLANEOUS PROVISIONS. 15.01. Conflict of Interest. Monterey represents that it presently has no interest and agrees not to acquire any interest during the term of this Agreement which would directly or indirectly conflict in any manner or to any degree with the full and complete performance of the professional services required to be rendered under this Agreement. 15.02. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by MPRWA and Monterey. 15.03. Waiver. Any waiver of any terms and conditions of this Agreement must be in writing and signed by MPRWA and Monterey. A waiver of any of the terms and conditions of this Agreement shall not be construed as a waiver of any other terms or conditions in this Agreement. 15.04. Contractor. The term “Monterey” as used in this Agreement includes Monterey’s officers, agents, and employees acting on Monterey’s behalf in the performance of this Agreement.

15.05. Disputes. Monterey shall continue to perform under this Agreement during any dispute. Monterey and MPRWA hereby agree to make good faith efforts to resolve disputes as quickly as possible. In the event any dispute arising from or related to this Agreement results in litigation or arbitration, the prevailing party shall be entitled to recover all reasonable costs incurred, including court costs, attorney fees, expenses for expert witnesses (whether or not called to testify), expenses for accountants or appraisers (whether or not called to testify), and other related expenses. Recovery of these expenses shall be as additional costs awarded to the prevailing party, and shall not require initiation of a separate legal proceeding.


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15.06. Assignment and Subcontracting. Monterey shall not assign, sell, or otherwise transfer its interest or obligations in this Agreement without the prior written consent of MPRWA. None of the services covered by this Agreement shall be subcontracted without the prior written approval of MPRWA. Notwithstanding any such subcontract, Monterey shall continue to be liable for the performance of all requirements of this Agreement.

15.07. Successors and Assigns. This Agreement and the rights, privileges, duties, and obligations of MPRWA and Monterey under this Agreement, to the extent assignable or delegable, shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, and heirs. 15.08. Compliance with Applicable Law. The parties shall comply with all applicable federal, state, and local laws and regulations in performing this Agreement. 15.09. Headings. The headings are for convenience only and shall not be used to interpret the terms of this Agreement. 15.10. Time is of the Essence. Time is of the essence in each and all of the provisions of this Agreement. 15.11. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California. 15.12. Non-exclusive Agreement. This Agreement is non-exclusive and both MPRWA and Monterey expressly reserve the right to contract with other entities for the same or similar services. 15.13. Construction of Agreement. MPRWA and Monterey agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement. 15.14. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement. 15.15. Authority. Any individual executing this Agreement on behalf of MPRWA or Monterey represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement. 15.16. Integration. This Agreement, including the exhibits and any documents incorporated by reference, represent the entire Agreement between MPRWA and Monterey with respect to the subject matter of this Agreement and shall supersede all prior negotiations, representations, or agreements, either written or oral, between MPRWA and Monterey as of the effective date of this Agreement, which is the date that MPRWA signs the Agreement.


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15.17 Interpretation of Conflicting Provisions. In the event of any conflict or inconsistency between the provisions of this Agreement and the Provisions of any exhibit or other attachment to this Agreement, the provisions of this Agreement shall prevail and control.

15.18 Severability. If any of the provisions contained in the Agreement are held illegal, invalid, or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. Limitations of liability and indemnities shall survive termination of the Agreement for any cause. If a part of this Agreement is valid, all valid parts that are severable from the invalid part remain in effect. If a part of this Agreement is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

IN WITNESS WHEREOF, MPRWA and Monterey have executed this Agreement as of

the day and year written on the first page herein. CITY OF MONTEREY MONTEREY PENINSUAL REGIONAL

WATER AUTHORITY By:____________________________ By:______________________________ City Manager President Approved as to form: Approved as to form: ________________________ __________________________ Monterey City Attorney MPRWA Legal Counsel


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EXHIBIT A

SCOPE OF SERVICES/PAYMENT PROVISIONS

CLERK OF THE BOARD SERVICES

I. City of Monterey to Provide the Following: A. Clerk of the Board Services:

♦ Produce and distribute Agendas and Packets for Board & TAC meetings ♦ Attend & take minutes at Board & TAC meetings ♦ Transcribe, format, & finalize meeting minutes ♦ Provide audio recordings of meetings ♦ Complete administrative paperwork to follow up on Board actions ♦ Records management services ♦ FPPC filing administration ♦ Website administration

B. Equipment:

♦ Monterey City Council Chamber as a meeting facility ♦ Audio-visual equipment that exists in the Council Chamber ♦ Office space and computer work stations with content management software in

Monterey. ♦ Administrative and clerical supplies related to Clerk’s Office activity.

C. Miscellaneous Services Performed by City of Monterey:

♦ Monterey to set up and prepare Council Chamber for Board and TAC meetings ♦ Payroll Services for Monterey employee(s) providing these services ♦ Tracking of employee hours and resultant costs of services provided

II. MPRWA to Provide the Following:

♦ An amount of $35,000 annually, paid to the City of Monterey at the commencement of the contract, and to be allocated as a portion of Salaries within the Office of the City Clerk to be paid as part of the regular payroll to employee(s) performing the services described in Exhibit A herein




Item No: 6.

№06/12

FROM: Executive Director Cullem SUBJECT: Approve Extension of the Separation Processes Inc (SPI) Contract Until

30 June 2016 for Additional Technical Support to the MPRWA and Authorize the Expenditure of Not-to- Exceed $10,000 from Reserve Funds

RECOMMENDATION: It is recommended that the Water Authority Board approve an extension of the Separation Processes Inc (SPI) "DEIR Review Services Agreement" to 30 June 2016 to provide technical Support for MPRWA comments on CPUC Supplemental Testimony and to report periodically on future Hydrogeological Working Group (HWG) Analyses, authorize the Executive Director to execute and administer the change order, and authorize the expenditure of not-to- exceed $10,000 from reserve funds to pay for the work. DISCUSSION: Significant comments on brine disposal for the Monterey Peninsula Water Supply Project (MPWSP)are expected to be submitted in the form of supplemental testimony to the CPUC Administrative Law Judge (ALJ) in December 2015 and January 2016. It may be in the public interest for the Water Authority to comment on that testimony, but it lacks the in-house technical expertise to do so. Since Geosyntec, through a contract with SPI, prepared the "Brine Disposal System" report that the Water Authority submitted with its MPWSP DEIR comments, a change order to that contract could allow for preparation of an addendum or provision of other technical assistance to further address brine disposal issues if the Authority so chooses. In addition, there is an increasing public interest in the results of the HWG analyses, especially as they pertain to the impacts of the test slant well on the hydrogeologic models. Since Geosyntec addressed many of these issues in its report on "Subsurface Intakes", they have the expertise to explain the results of these highly technical analyses to the Board and to the public in an understandable way. Accordingly, the SPI contract change order could include periodic presentations on the topic to the Water Authority Board or to the TAC by Geosyntec staff.


FISCAL IMPACT: The FY 2015-2016 budget does not include funding for additional professional service contracts or contract change orders. However, the Water Authority has retained a reserve of $170,000 which could be used to fund the work if approved by 5 of the 6 Directors (70%). ATTACHMENTS: None




Item No: 7.

№06/12

FROM: Executive Director Cullem SUBJECT: Certificate of Appreciation for Lesley-Rerig Milton RECOMMENDATION: The Executive Director recommends that the Water Authority Board present a Certificate of Appreciation to Lesley Rerig-Milton for her years of dedicated service to the Community and to the Water Authority as Clerk of the Board since 2012. DISCUSSION: Unfortunately, the time commitments of Lesley's position as Seaside City Clerk will preclude her from continuing to serve as Clerk of the Authority Board as of January 1, 2016. Lesley has served as Clerk of the Board since 2012, initially as an employee of the City of Monterey, and continuing in that capacity when she took her current position as Seaside City Clerk in 2014. As a consequence, the Water Authority was able to maintain continuity in Clerk and administrative support services since Lesley was authorized by the City of Monterey to access the Authority's files residing on Monterey's computer system. Through her technical competence, personal dedication, and ability to juggle her responsibilities to the City of Seaside as well as to the Authority, she has made an invaluable contribution to the successful execution of the Water Authority mission over the last three years. She will be sorely missed, but we wish her every success in her future endeavors. ATTACHMENTS: None




Item No: 8.

№06/12

FROM: Executive Director Cullem SUBJECT: Receive Report and Discuss the Status of the Pure Water Monterey (PWM) / Groundwater Replenishment (GWR) Project RECOMMENDATION: It is recommended that the Water Authority receive an update on the current status of the Pure Water Monterey (PWM) / Ground Water Replenishment (GWR) project. DISCUSSION: At Attachment A is a status report from the Monterey Peninsula Water Management District (MPWMD) on the project. At the Water Authority meeting of December 10, 2015, the General Manager of the MPWMD will provide an verbal update and will be available to answer questions. ATTACHMENTS: A- MPWMD Status Report on PWM/GWR


Status Report Pure Water Monterey

Groundwater Replenishment Project (Prepared by MPWMD 11-30-15)

SUMMARY: In July 2013, the District participated with the various parties to A.12-04-019 at the Public Utilities Commission – the Cal-Am application – in developing a settlement and agreement for the proposed Monterey Peninsula Water Supply Project (MPWSP.) The MPWMD Board of Directors provided direction in closed session whether to approve and sign the settlement agreement(s). The District and other settling parties signed the agreements July 31, 2013. At its January 30, 2013 and February 12, 2013 meetings the District Board indicated that it would consider support for the Cal-Am application if certain conditions were met. One of those conditions the Board proposed was a strong statement endorsing the Pure Water Monterey groundwater replenishment project (GWR). This was addressed in the General Settlement Agreement, Section 4, and included 9 findings or criteria for the acceptance of GWR as part of the MPWSP. In the Settlement, the Parties agreed “the Commission should make the GWR Decision based upon the findings set forth below and/or information supplied pursuant to the advice letter process in Section 4.3(f). If all of the findings are made or addressed through the advice letter process, then California American Water shall be ordered to enter into a WPA and build the smaller desalination plant.” The purpose of this report is to update the board on where the Pure Water Monterey project currently stands relative to the 9 acceptance criteria in the July 2013 proposed Settlement Agreement. DISCUSSION: The 9 criteria and current status are as follows: Criterion 1: MRWPCA has approved the GWR Project pursuant to a certified Final EIR; and no CEQA suit has been filed within 30 days of a Notice of Determination ("NOD"), or if a CEQA suit is filed, no stay of the GWR Project has been granted. Status: Satisfied complete. Criterion 2: The status of required permits is consistent with the published project schedule, and for any required permits not yet obtained, the weight of the evidence in the record does not show that any of the required permits for the GWR Project are unlikely to be obtained in a timeframe consistent the published project schedule. Status: The GWR Project will need to receive a wide variety of permits and approvals from an equally wide variety of agencies in order to proceed to construction and operation. A separate criterion (#4) specifically addresses the permit/approvals required from the California Department of Public Health and Regional Water Quality Control Board; therefore, it is assumed this criterion addresses all other permits. Permits are listed in the EIR. Contracts have been


provided to various consultants to work on those permits this fiscal year. There are more permits required if the Coastal Alignment of the product water pipeline is used. MRWPCA will prepare a detailed permitting plan that covers all of the components of the GWR Project. The permitting plan will identify each required permit or approval, the permitting entity, the steps to complete the permit, the party responsible for obtaining the permit, and the estimated schedule and cost for the permitting effort. At this time, there is no reason to believe that this criterion will not be met. Criterion 3: There is sufficient legal certainty as to agreements or other determinations in place to secure delivery of source water(s) necessary to produce between 3,000 to 3,500 acre feet per year of GWR product water for the recommended project. Status: The MRWPCA-MCWRA Amended and Restated Water Recycling Agreement was approved by both agencies and the County Board of Supervisors in the past 30 days. An Agreement between MRWPCA and the City of Salinas has also been approved. Hence, this criterion has been met. A draft “definitive agreement” is under review and will be circulated the week of November 30th. Criterion 4: The weight of the evidence in the record does not show that the California Department of Health or the Regional Water Quality Control Board will decline to accept or approve the GWR extraction or GWR treatment and injection processes, respectively. Status: The Division of Drinking Water (DDW), formerly part of CDPH but now part of SWRCB, provided a letter dated June 5, 2014 indicating that there were no issues they had to decline approval of GWR. DDW has been involved in the Independent Advisory Panel meetings and other update meetings along with their colleagues at the Regional Water Quality Control Board (RWQCB.) The RWQCB has emailed the SWRCB in support of the project due to their desire to see the diversion of Blanco Drain water away from the Salinas River. Hence, this criterion appears to have been met, but additional evidence will be produced as needed. Criterion 5: The GWR Project is on schedule, as verified by a report issued by an engineer licensed in California, to be operable, on or before the later of (a) the then-effective date of the Cease and Desist Order of the SWRCB or such other date as the SWRCB states in writing is acceptable, or (b) the date the MPWSP desalination project is scheduled to become operable. The Parties acknowledge that the actual date of operation for the GWR Project and the desalination project could vary from the operation date projected in the schedules, and therefore agree to a range of up to an additional four months from the projected date of operation, before the GWR Project schedule would no longer be considered on an acceptable schedule. Status: The project is on schedule to be operable long before the desalination project and the projected revised CDO effective date. However, an engineer’s report to that effect will be included in the GWR testimony at the CPUC. Criterion 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 cost estimate can be generated) or is at a level similar to or more advanced than the level of design for the desalination project portion of the MPWSP.


Status: The MPWSP desalination facility design is between the 60% and 90% level. GWR has been designed at or beyond the 10% level of design and one component, connection between the Ag Wash water and the Salinas Pump Station has been constructed. The connection from the Salinas storm water and the Salinas Pump Station or the Salinas Industrial Ponds will be designed to 100%. Criterion met. No additional work required. Criterion 7: A GWR Project funding plan, sufficient in detail to be accepted as an application for a State Revolving Fund loan, is in place. Status: This is complete with one exception, an Approval Order on a change petition to the SWRCB for the discharge of Salinas Industrial Pond water to the MRWPCA Regional Treatment Plant, which is expected by the end of November. Criterion 8: California American Water, MPWMD, and MRWPCA have agreed on a WPA whose terms are just and reasonable. Status: A substantially complete version has been exchanged between the parties and looks like the form of agreement will be agreed to by the end of November. This is covered further under Agenda Item 21. Criterion 9: The revenue requirement for the combination of the GWR Project and the smaller desalination project, including the projected debt equivalence for the GWR Project, if any, determined pursuant to Section 4.4, is just and reasonable when compared to the revenue requirement for a larger desalination project alone. The parties agree that a revenue requirement premium for the combination of the GWR Project and a smaller MPWSP desalination project may be determined just and reasonable, if the combined GWR/smaller desalination project affords significant net benefits including, but are not limited to, the following: (i) a material schedule advantage in that the GWR Project is anticipated to be operable sooner than the desalination plant; (ii) water supply resilience and reliability (benefit of the portfolio approach); and (iii) other positive externalities of the GWR Project, including, but not limited to reduced atmospheric carbon emissions, reduced brine discharge, and the implementation and encouragement of State policies regarding water recycling through early adoption of a water reuse project. Status: An initial cost comparison analysis prepared by the District, but based on cost estimates made by Cal-Am and filed with the CPUC and estimates prepared by MRWPCA, has been shared with Cal-Am November 12th. The analysis was revised and circulated the week of November 16th. The results of that analysis shows positive impact to ratepayers for the “Project Variant” of GWR-plus-6.4MGD Desal for both life-cycle savings and net present value of life-cycle savings. However, the CPUC on October 12th held a prehearing conference on revisions to the Phase 2 proceedings on GWR. At that time, it was made clear that the economic cost comparison analysis shall be redone for purposes of testimony based on updated Cal-Am costs expected in December and then-current best available GWR cost estimates. As a result, this analysis shall be revisited. Cal-Am, the District, and MRWPCA will meet on December 9th to discuss the cost comparison framework, methodology, and data. A Cal-Am filing of updated costs is due at the CPUC on December 15th.


Further, the District’s consultant, HDR, is undertaking a study or “triple bottom line” analysis to demonstrate the potential benefits environmentally and/or socially, of the externalities. The HDR study is expected to be complete by the end of the year and inform expert testimony in the CPUC Phase 2 proceedings on GWR. HDR will hold a half-day workshop for interested stakeholders on December 8th.




Item No: 9.

№06/12

FROM: Executive Director Cullem SUBJECT: Receive an Update on the Summary Project Schedule for the Monterey

Peninsula Water Supply Project (MPWSP), including Award of Production Well and Conveyance System Contracts and Status of Test Slant Well Operations and Results

RECOMMENDATION: It is recommended that the Water Authority Board receive a report from Cal Am on the latest "Summary" MPWSP schedule, as well as the status of contracts for the production wells and the conveyance systems and the status of test well operations and results. DISCUSSION: Cal Am will provide an update at the Water Authority meeting. ATTACHMENTS: None




Item No: 10.

FROM: Executive Director Cullem

SUBJECT: Receive Report, Discuss, and Revise the Mission, Purpose, and Sunset of the Monterey Peninsula Regional Water Authority RECOMMENDATION:

Staff recommends that the Water Authority Board review and discuss the mission, work plan, and duration of the MPRWA, and provide direction to staff.

DISCUSSION:

The accomplishments of the Water Authority since its inception were discussed at the Authority meeting of February 12, 2015 and the staff report is included herewith at attachment A.

MISSION:

Paragraph 2.2 of the Joint Exercise of Powers Agreement dated February 12, 2012 and unchanged in the First Amended and Restated Joint Exercise of Powers Agreement dated February 14, 2013 reads in part as follows: "The purpose of this Agreement is to establish a public entity separate from its Members to jointly exercise some or all of the foregoing common powers, as deemed necessary by the Authority, to: (1) ensure the timely development, financing, construction, operation, repair, and maintenance of one or more Water Projects; and (2) ensure that the governance of such Water Projects includes representation that is directly accountable to the Cities' water users."

WORK PLAN:

On April 10, 2014, the Water Authority Board approved the following work plan elements:

- Completion of post-settlement activities and follow-up with settling parties - Assist passage of legislation to implement securitization and work collaboratively with MPWMD and

Cal Am to obtain Water Rate Relief Bonding and other public funding to minimize costs to the ratepayers

- Work collaboratively with MPWMD and MRWPCA to move the GWR project forward - Work with the MPWMD to develop a plan for engaging with the State Water Resources Control

Board regarding potential appropriate modifications to the Cease and Desist Order Where appropriate, support Cal-Am in efforts to secure permits related to the proposed source wells (initially a test well)

- Actively pursue public outreach and education efforts through our WA consultant in cooperation with MPWMD and its Public Outreach Committee

- Pursue opportunities to increase the use of storm water in future water supply projects




Item No: 10.

SUNSET:

No sunset date has been established for the MPRWA.

Staff suggests there are roughly four reasonable (4) options: 1. Sunset the Water Authority, or conduct meetings quarterly and reduce involvement in local, State, and Federal processes involved with completion of project(s), following issuance of the CPCN and CPUC Action on Phase 1 Decision for the MPWSP (1st qtr 2017) or CPUC Action on Phase 2 Decision (GWR) (2nd qtr 2016). 2. Sunset the Water Authority or reduce the above activity following issuance of the CDP by the Coastal Commission for the MPWSP (4th qtr 2017) . 3. Sunset the Water Authority or reduce the above activity upon actual start of construction of the MPWSP(4th qtr 2018). 4. Sunset the Authority at first production of water from the MPWSP (December 2020). BUDGET CONSIDERATIONS:

Of the approved $290,000 budget for FY 2015-2016, $125,500 (43%) is for administration, clerical activities, and television coverage and is directly impacted by the frequency and length of TAC and Water Authority Meetings. Approximately $136,000 (48%) is for Legal Services which is more directly impacted by the requirements for legal support. Audit and Insurance costs of $13,500 (4.7%) are fixed and are unaffected by frequency of meetings. Travel, and contingency total $15,000 (5.2%) and are discretionary and can be reduced or eliminated at any time.

SUMMARY:

Monterey County Supervisors have expressed concern for MPRWA "mission-creep". Accordingly, it is recommended that the Water Authority Board review the purpose statement (parag 2.2 of the JPA) as well as the elements of the approved work plan and direct staff where to reduce our effort.

The Water Authority is also requested to provide direction to staff on the sun-setting of the Authority between Jan 2016 and Jan 2020.

ATTACHMENT:

None


MPRWA Agenda Packet 12-10-15

Documents

Transcript of MPRWA Agenda Packet 12-10-15