Wednesday, February 27, 2013

Proceeding Number A.12-04-019 CALIFORNIA-AMERICAN WATER COMPANY MOTION TO STRIKE THE TESTIMONY OF LLOYD W. LOWREY, JR. SUBMITTED ON BEHALF OF THE MCWD & REQUEST FOR EXPEDITED TREATMENT

ABSTRACT: Re: In the Matter of the Application of California American Water Company (U 210 W) for Approval of the Monterey Peninsula Water Supply Project and Authorization to Recover All Present and Future Costs in Rates,  CALIFORNIA-AMERICAN WATER COMPANY MOTION TO STRICK THE TESTIMONY OF LOWREY, JR. SUBMITTED ON BEHALF OF THE MCWD AND REQUEST FOR EXPEDITED TREATMENT document is embedded.  CONCLUSION MCWD is attempting to enter into evidence a legal brief disguised as testimony.  This abuse of the established process should not be condoned.  For the reason stated above, California American Water request that the portions of Mr. Lowrey’s testimony identified in Appendix A and Appendix B be stricken from the record. 

 

Filing Date 02-26-13

Proceeding Number A.12-04-019 RENEWAL OF MOTION OF SALINAS VALLEY WATER COALITION FOR OFFICIAL NOTICE OF FACTS

ABSTRACT: Re: In the Matter of the Application of California American Water Company (U 210 W) for Approval of the Monterey Peninsula Water Supply Project and Authorization to Recover All Present and Future Costs in Rates, RENEWAL OF MOTION OF SALINAS VALLEY WATER COALITION FOR OFFICIAL NOTICE OF FACTS document is embedded. Official Notice be taken of the following: 1) US Bureau of Reclamation Contract No. 5-07-20-W12831 with Monterey County Water Resources Agency (MCWRA) dated May 23, 1995. (Attachment #1, previously filed with the Commission on July 25, 2012)

    
Filing Date 02-25-13

 

Proceeding Number A.12-04-019 MOTION OF SALINAS VALLEY WATER COALITION FOR OFFICIAL NOTICE OF FACTS

ABSTRACT: Re: In the Matter of the Application of California American Water Company (U 210 W) for Approval of the Monterey Peninsula Water Supply Project and Authorization to Recover All Present and Future Costs in Rates, MOTION OF SALINAS VALLEY WATER COALITION FOR OFFICIAL NOTICE OF FACTS document is embedded.  Documents for Official Notice of Facts includes:
1) MCWRA Agency Map of Zone 2C (Attachment 1) as shown in Engineers Report To Support an Assessment for The Salinas Valley Water Project of the Monterey County Water Resources Agency (Engineers Report To Support an Assessment for The Salinas Valley Water Project of the Monterey County Water)
2) MCWRA Map of Zone 2C North County Coastal Area (Attachment 2)
3) Monterey County Water Resources Agency Ordinance No. 3709 (Attachment 3)
4) MCWRA Agency Act, Water Code Chapter 52, Section 21. (Attachment 4)

  
Filing Date 02-25-13

 


 


 


 

Tuesday, February 26, 2013

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA): Legal Argument that The County is Ineligible for Membership in the Authority According to California Government Code §1099, Agency Act, Attorney General Opinion 10-903 & MPWMD Act, § 118-203

ABSTRACT:  In the context of an anticipated California Attorney General Opinion in about one year regarding the legal issue of Incompatible Offices and the Monterey Peninsula Regional Water Authority’s appointment of Supervisor Dave Potter to the Mayor’s Water Authority Board of Directors and Governance Committee, a legal argument is presented arguing that The County is Ineligible for Membership in the Authority and Specific Disqualification of Supervisor Potter.  Supporting documents, namely Government Code §1099 is reproduced, the Monterey County Water Resources Agency Act, Water Code Appendix, Chapter 52 (the Agency Act) (Agency Act §52-71), Attorney General Opinion 10-903 and West's ANNOTATED CALIFORNIA CODES WATER CODE-APPENDIX Sections 108-1 to End (MPWMD Act, § 118-203) documents, are embedded. 

LEGAL ARGUMENT FOR INCOMPATIBLE OFFICES

The County is Ineligible for Membership in the Authority

Next, even under the best of intentions, the County is not eligible to join the Authority under the JPA. Supervisor Potter, himself, is specifically ineligible to serve on the Authority board as a representative of the County on independent grounds. These findings are based upon Government Code §1099, related conflict of interest considerations and the MPWMD Law.

The JPA envisions a future water regime that would include the Authority working with agencies such as MPWMD, the Monterey County Water Resources Agency (MCWRA), the County and others, under a comprehensive water management plan. Ultimately such an integrated county-wide water management system represents the only conceivable solution to the water crisis. But the Authority must establish itself first under the terms of its own Agreement. Its members must make several fundamental decisions specifically requiring only their own consensus. It is not until then that the Authority can effectively engage with outside agencies and private interests.

Consequently, no member of the Board of Supervisors may serve on the Authority. Again, Government Code § 1099 applies. However, more specifically, the County is conflicted out of Authority membership based upon the Board of Supervisor's role as a supernumerary to MCWRA under the Monterey County Water Resources Agency Act, Water Code Appendix, Chapter 52 (the Agency Act). In particular, Agency Act §52-71, provides:

Sec. 71. Duties of Supervisors concerning litigation.
(a) The Board of Supervisors are [sic] responsible for the initiation and the conduct of any litigation by the Agency and for the settlement of any litigation.

Consequently, the Board of Supervisors would be directly involved in litigation and settlement activities if any action were to arise between the Authority and MCWRA' In anyone's reasonable estimation, such an action must be considered fairly likely. This, under an Attorney General Opinion 10-903 analysis and general conflict of interest principles, clearly precludes the County's direct participation in Authority activities.

The JPA foresees the County as ultimately an essential ally. By its terms it provides a very effective alternative to direct County membership. Paragraph 4.20 of Article 4 states that the Authority has the power:

To organize and/or participate with local agencies to form a water management group to develop and implement an Integrated Water Management Plan pursuant to Water Code sections 10530 et seq.

This is the basis for future county-wide cooperation, which is not only desirable, but ultimately essential, to resolution of the water crisis. The JPA provides a strong basis for the success of such a program, with the mayors taking the initiative on behalf of municipal water users.

Specific Disqualification of Supervisor Potter

On narrower grounds, Supervisor Potter is prima facie ineligible to serve on the Authority board. This is because, unlike Mayor Pendergrass, Mr. Potter may not forfeit his MPWMD seat.  His unique role under the MPWMD Law is that he, or his successor, is the only supervisor eligible to serve on the MPWMD board. [MPWMD Act, § 118-203] It is impossible for him to leave the MPWMD board without removal from office as a member of the Board of Supervisors.

Source: Letter to Donald G. Freeman from THE THOMPSON LAW OFFICE, Richard Glenn, Re: Monterey Peninsula Regional Water Authority (Authority) Issues, October 11, 2012.

GOVERNMENT CODE SECTION 1099 
1099.  (a)  A public officer, including, but not limited to, an appointed or elected member of a governmental board, commission, committee, or other body, shall not simultaneously hold two public offices that are incompatible. Offices are incompatible when any of the following circumstances are present, unless simultaneous holding of the particular offices is compelled or expressly authorized by law:
   (1) Either of the offices may audit, overrule, remove members of, dismiss employees of, or exercise supervisory powers over the other office or body.
   (2)  Based on the powers and jurisdiction of the offices, there is a possibility of a significant clash of duties or loyalties between the offices.
   (3) Public policy considerations make it improper for one person to hold both offices.
   (b) When two public offices are incompatible, a public officer shall be deemed to have forfeited the first office upon acceding to the second. This provision is enforceable pursuant to Section 803 of the Code of Civil Procedure.
   (c) This section does not apply to a position of employment, including a civil service position.
   (d) This section shall not apply to a governmental body that has only advisory powers.
   (e) For purposes of paragraph (1) of subdivision (a), a member of a multimember body holds an office that may audit, overrule, remove members of, dismiss employees of, or exercise supervisory powers over another office when the body has any of these powers over the other office or over a multimember body that includes that other office.
   (f) This section codifies the common law rule prohibiting an individual from holding incompatible public offices.

AGENCY ACT
 

Monterey County Water Resources Agency Act, Water Code Appendix, Chapter 52 (the Agency Act) (Agency Act §52-71)
 52-71 Duties of Supervisors concerning litigation
Sec. 71.  Duties of Supervisors concerning litigation.
     (a) The Board of Supervisors are responsible for the initiation and the conduct of any
litigation by the Agency and for the settlement of any litigation.
     (b) The Directors or general manager shall refer all matters with respect to which litigation is  likely to the Board of Supervisors.
     (c) The chairperson of the Directors, or his or her designee, may be present during a closed  session held by the Board of Supervisors to consider matters pertaining to litigation affecting the  Agency.


ATTORNEY GENERAL OPINION NO. 10-903
 

Attorney General Opinion No. 10-903


WEST'S ANNOTATED CALIFORNIA CODES WATER CODE APPENDIX Sections 108-1 to End
 

West's ANNOTATED CALIFORNIA CODES WATER CODE-APPENDIX Sections 108-1 to End (MPWMD Act, § 118-203)

ADDENDUM:
State of California Department of Justice
Office of the Attorney General

SALINAS CITY COUNCIL AGENDA ITEM February 26, 2013: CONSIDERATION Agreement among the City of Salinas, DeepWater Desal LLC and California Water Service Company

ABSTRACT: The Salinas City Council is scheduled to meet today, Tuesday, February 26, 2013 to consider an Agreement among the City of Salinas, DeepWater Desal LLC and California Water Service Company. The REPORT TO THE CITY COUNCIL:
RECOMMENDATION:
It is recommended that the City Council approve a resolution authorizing the City Manager to sign the attached Agreement between the City of Salinas, DeepWater Desai LLC (DWDS) and California Water Service Company (CWS) with regard to a wholesale power purchase agreement.
The REPORT includes the AGREEMENT AMONG THE CITY OF SALINAS, DEEPWATER DESAL LLC, AND CALIFORNIA WATER SERVICE COMPANY WITH REGARD TO A WHOLESALE POWER PURCHASE AGREEMENT and DeepWater Desal Central Coast Regional Water Project Fact Sheet.
The REPORT TO THE CITY COUNCIL document is embedded.

SALINAS CITY COUNCIL AGENDA
SALINAS ROTUNDA, 200 LINCOLN AVE.
www.ci.salinas.ca.us

Mayor Joe Gunter 
Councilmember Jose CastaƱeda, District 1
Councilmember Tony Barrera, District 2
Councilmember Steve McShane, District 3
Councilmember Gloria De La Rosa, District 4
Councilmember Kimbley Craig, District 5
Councilmember Jyl Lutes, District 6

Ray E. Corpuz, Jr., City Manager
Vanessa Vallarta, City Attorney


TUESDAY, FEBRUARY 26, 2013
4 P.M.


CONSIDERATION
3. Agreement among the City of Salinas, DeepWater Desal LLC and California Water Service Company
 


a. Receive report from Ray E. Corpuz, Jr., City Manager.
b. Councilmembers’ questions.
c. Public comments.
d. Councilmembers’ comments
e. Adopt a RESOLUTION authorizing the City Manager to sign an Agreement between the City of Salinas, DeepWater Desal, LLC and the California Water Service Company with regard to a wholesale power purchase agreement.

RELATED NEWS ARTICLE:
City to consider Cal Water deal
By JIM JOHNSON Herald Staff Writer, 02/25/2013
Excerpts Highlights:
On Tuesday, the Salinas City Council is set to consider amending a five-year agreement with DeepWater Desal LLC to include California Water Service Co., one of the city's two municipal water purveyors.

The amended agreement between the city and the two entities would still be focused on exploring a potential deal to purchase water and wholesale power from a desal plant, dubbed the Central Coast Regional Water Project, and power generator at the Dynegy power plant in Moss Landing.

Last week, the state Lands Commission agreed to serve as lead agency for state, and potentially federal, environmental review of the DeepWater Desal project, and begin soliciting consultants to conduct a full environmental impact report.

Monday, February 25, 2013

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) REGULAR MEETING AGENDA & MINUTES February 28, 2013


AGENDA PACKET, REGULAR MEETING 
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
February 28, 2013


 

MINUTES, REGULAR MEETING
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
MPRWA
February 28, 2013

Saturday, February 23, 2013

‘Monterey Peninsula desal project has two backup options:’ Central Coast Regional Water Project (DeepWater Desal's proposal) & People's Moss Landing Desal Project

ABSTRACT: Excerpts Highlights of The Monterey County Herald’s news article entitled “Monterey Peninsula desal project has two backup options In case Cal Am project fails” by Herald Staff Writer Jim Johnson are presented; a link to the complete news article is provided.

In case Cal Am project fails
By JIM JOHNSON Herald Staff Writer, 02/22/2013

Excerpts Highlights:
DeepWater Desal and the People's Moss Landing Desal Project will compete for the Monterey Peninsula Water Management District's support as a contingency project.

DeepWater Desal's proposal, dubbed the Central Coast Regional Water Project, calls for creating a public-private partnership charged with paying for, and eventually owning and operating, a desal plant capable of delivering 10,000 acre-feet per year of potable water for the Peninsula. The partnership would include a single public agency or a new joint powers authority of public agencies.

The People's Project proposal calls for Moss Landing Commercial Park LLC to design and build a $75.5 million desal plant on about 25 acres at the 200-acre business park site. It would rely on existing infrastructure, including pipelines and easements.
According to the plan, the desal plant would be capable of producing up to 11,200 acre-feet of potable water a year.
The plan would require the water management district to purchase the desal plant site for $25 million or sign a 50-year lease with a 49-year option including terms to be negotiated. The project developer would promise to consider deferring acquisition costs until bonds are sold to finance the project.

GEOSCIENCE Technical Memorandum & TECHNICAL MEMORANDUM and TECHNICAL MEMORANDUM No. 2 from Timothy Durbin to the Salinas Valley Water Coalition

ABSTRACT: Excerpts Highlights of The Monterey County Herald’s news article entitled “Memo on Salinas Valley groundwater basin contradicts ag group's report,” by Herald Staff Writer Jim Johnson are presented; a link to the complete news article is provided. The GEOSCIENCE Technical Memorandum and TECHNICAL MEMORANDUM and TECHNICAL MEMORANDUM No. 2 from Timothy Durbin to the Salinas Valley Water Coalition on the Subject: California-American Water Company – Response to comments by Geoscience on technical memorandum by Timothy Durbin (Salinas Valley Water Coalition’s hydrologist) dated December 3, 2012 regarding proposed pumping are embedded.

Memo on Salinas Valley groundwater basin contradicts ag group's report
By JIM JOHNSON Herald Staff Writer, 02/19/2013

Excerpts Highlights:
Debate about the potential impact of California American Water's plans to draw source water for its desalination plant from the Salinas Valley groundwater basin has taken a new turn.

A new memo from a consultant hired by the state Public Utilities Commission contradicts conclusions about the basin in a report issued by an expert for an agricultural interest group. The report is at the core of concerns about the effect of additional pumping on the aquifer.

In a December letter to the state water board, Salinas Valley Water Coalition president Nancy Isakson cited a report from the coalition's hydrologist, Tim Durbin, that challenged Cal Am's assumptions regarding the nature of the basin and potential impact of pumping. Isakson dubbed a Geoscience model relied on by Cal Am "seriously flawed."


 

 GEOSCIENCE Technical Memorandum
 

TECHNICAL MEMORANDUM
(From Timothy Durbin to the Salinas Valley Water Coalition)
December 3, 2012

  
TECHNICAL MEMORANDUM No. 2
(From Timothy Durbin to the Salinas Valley Water Coalition)
February 21-2013

Friday, February 22, 2013

TECHNICAL ADVISORY COMMITTEE (TAC) OF THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) REGULAR MEETING AGENDA & MINUTES February 25, 2013

AGENDA PACKET, REGULAR MEETING
TECHNICAL ADVISORY COMMITTEE (TAC)
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
February 25, 2013
 

DRAFT MINUTES, REGULAR MEETING
TECHNICAL ADVISORY COMMITTEE (TAC)
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
February 25, 2013

Saturday, February 16, 2013

MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY SPECIAL MEETING NOTICE AND AGENDA February 11, 2013: PRESENTATION Update on Groundwater Replenishment Project & ACTION ITEM Consider FY 2012/13 Urban Reclamation Fund Budgets & CORRESPONDENCE Letter to MCWRA to propose development of a plan to secure water sources for the growers, February 1, 2013

RELATED NEWS ARTICLE:
Would be supplemental source of water
By JIM JOHNSON Herald Staff Writer, 02/15/2013
Excerpts Highlights:
“After months of delay, the Monterey Peninsula Regional Water Pollution Control Agency board of directors on Monday unanimously approved spending for an environmental review of the agency's groundwater replenishment project, and studying agricultural wastewater as a potential feeder source. The $750,000 project budget for the current fiscal year will be paid for through agency reserves, Monterey Peninsula Water Management District user fee revenue and grant funding.” 

“A proposed water rights agreement backed by the growers was not approved by the agency board on Monday, and Israel acknowledged that the issue remains unresolved.”


ABSTRACT: The Board of Directors of the Monterey Regional Water Pollution Control Agency (MRWPCA) conducted a Special Meeting on Monday, February 11, 2013 at 7:00 P.M.  The MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY SPECIAL MEETING AGENDA PACKET, February 11, 2013, includes, as follows:
PRESENTATIONS Update on Groundwater Replenishment Project Discussions – Keith Israel;
ACTION ITEMS Consider FY 2012/13 Urban Reclamation Fund Budgets
 That the Board Approve FY 2012/13 Budgets for Regional Urban Water Augmentation Project (RUWAP – UR 501) for $25,000, Monterey Peninsula Groundwater Replenishment Project (GWR – UR 502) for $750,000, Brine and Ocean Outfall (UR 504) for $25,000, and Urban Reclamation Public Outreach (UR 505) for $25,000;
CORRESPONDENCE Letter to MCWRA to propose development of a plan to secure water sources for the growers, February 1, 2013.
The AGENDA PACKET, SPECIAL MEETING document and PRESENTATION are embedded.

MRWPCA Special Board Mtg Agenda Packet 02-11-13
AGENDA PACKET, SPECIAL MEETING
MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY
February 11, 2013

PRESENTATION
Update on Groundwater Replenishment Project
Discussions – Keith Israel
February 11, 2013

ADDENDUM: 
Slowing Seawater Intrusion

Changing Wastewater into Safe Water



Wednesday, February 13, 2013

Proceeding Number A.12-04-019 ADMINISTRATIVE LAW JUDGE’S RULING ON PENDING MOTIONS AND OTHER SUBJECTS

ABSTRACT: Re: In the Matter of the Application of California American Water Company (U 210 W) for Approval of the Monterey Peninsula Water Supply Project and Authorization to Recover All Present and Future Costs in Rates, ADMINISTRATIVE LAW JUDGE’S RULING ON PENDING MOTIONS AND OTHER SUBJECTS document is embedded. IT IS RULED that:
1. California-American Water Company is directed to contact the Parties, obtain cross-examination time estimates and coordinate the sequencing of the cross-examinations. Parties are to cooperate in that undertaking and, where possible, to consolidate cross-examination questions to limit unnecessary duplication. California- American Water Company is directed to file and serve a compliance report proposing an allocation and sequencing of cross-examination time, preferably in matrix format, as soon as it is practicable but not later than Friday, March 22, 2013.
2. Action on the Planning and Conservation League’s Motion to Establish Project Sizing Criteria will be taken at a later date.
3. Beginning 30 days after the end of the second quarter of 2013 and continuing in the same manner in subsequent quarters until the Commission acts finally on Application 12-04-019 or, if that final action is approval, until the Monterey Peninsula Water Supply Project (MPWSP) is on line, Cal-Am shall notice the Service List and a newspaper of general circulation (both electronically) and ratepayers (via bill messages) of the location and availability of new quarterly MPWSP progress reports on California-American Water Company’s Water Supply Project website: http://www.watersupplyproject.org. All of the quarterly MPWSP progress reports will remain available on the website. Upon the request of a ratepayer, Cal-Am will provide a copy of a progress report via U.S. Mail. California-American Water Company will interlink its company website, http://www.amwater.com/caaw, with its Water Supply Project’s website. The progress reports are to be as lengthy, textured and free of overly technical verbiage as appropriate for keeping a lay readership informed of the important features, milestones (reached and/or missed) and challenges of the MPWSP, including the Groundwater Replenishment and Aquifer Storage & Recovery components as relevant. The progress reports should include a time line or a Gantt chart for all major activities on the MPWSP and an explanation of the same. The actual time line can be appended to the report. For each major activity in the MPWSP the progress reports are to include the budgeted amounts, the amounts actually spent, the amounts remaining and the percentage completed. Significant developments and updates pertaining to the contingency options covered in Attachment 9 of Richard C. Svindland’s Supplemental Testimony of January 11, 2013, also are to be included.
4. Under the authority variously provided in Evidence Code §§ 451(a), 452(a), (c) and (d), official notice is hereby taken of those documents of record in the San Francisco Superior Court Case No. CGC-12-521875 that are contained in Attachment 1 of California-American Water Company’s Motion for Official Notice, namely the County of Monterey’s (County) Complaint for Declaratory Relief, dated June 26, 2012; 2) the County’s Request for Dismissal with prejudice of entire action of all parties and all causes of action filed, dated December 11, 2012; and 3) a print-out of the San Francisco Superior Court’s docket which shows that the matter was taken off the calendar on December 13, 2012. Pursuant to the authority provided by Evidence Code § 452(h) and §453(a) and (b), official notice is hereby taken of Ordinance No. 3439 (Chapter 10.72, Monterey County Code, relating to the operation of a desalination facility) also included in Attachment 1 of California-American’s motion for official notice.
5. The protective order sought by George T. Riley, on behalf of Citizens for Public Water, in the January 3, 2013 motion is hereby granted pursuant to General Order 66-C. The personal financial information submitted under seal is withdrawn from general public inspection. Any Party of record to this proceeding may be allowed by the assigned Administrative Law Judge to review the information that is under seal upon 1) written request, 2) a showing of good cause, and 3) execution of an appropriate non-disclosure agreement.
6. The Docket Office’s rejection on January 17, 2013 of the pre-hearing conference statement of the Salinas Valley Water Coalition, on the ground that the submission was not authorized for filing, was without prejudice to that Party’s opportunity to proffer information in and/or attached to that document in the form of Intervenor Testimony
Filing Date 02-13-13 
ADMINISTRATIVE LAW JUDGE’S RULING ON PENDING MOTIONS AND OTHER SUBJECTS
Including ATTACHMENT A
EVIDENTIARY HEARING GUIDELINES

Tuesday, February 12, 2013

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA) REGULAR MEETING AGENDA & MINUTES February 14, 2013

MPRWA Regular Meeting Agenda Packet 02-14-13 
AGENDA PACKET, REGULAR MEETING
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
February 14, 2013

Includes:
Approve and Authorize the President to Execute an Agreement to Form the Monterey Peninsula Water Supply Project Governance Committee Together with California American Water Company, the Monterey Peninsula Water Management District, and the County of Monterey and Appoint the Water Authority’s Representative to Said Committee

Review the First Amended and Restated Joint Exercise of Powers Agreement and Recommend Execution by Member Cities and the County of Monterey to Add the the County of Monterey as a Member of the Water Authority and to Make Other Modifications to the Agreement


DRAFT MINUTES, REGULAR MEETING
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
February 14, 2013

‘Once upon a time.. Tales from Carmel by the Sea’

ABSTRACT: Featuring the best and most eclectic aspects of Carmel-by-the-Sea and environs, Once upon a time..Tales from Carmel by the Sea Just another WordPress.com site is presented with stunning photographs.  Links to February 2013 posts and selected posts, including “THE FENCE THAT MAKES GOOD NEIGHBORS….. NEEDS A GATE TO MAKE GOOD FRIENDS,” are provided.











Saturday, February 09, 2013

Monterey County Board of Supervisors Meeting AGENDA ITEM Monterey Peninsula Water Supply Project Governance Committee & Board of Supervisors of the Monterey County Water Resources Agency Closed Session Meeting AGENDA ITEM regarding California-American Water Company, 12 February 2013

RELATED NEWS ARTICLE: 
Supervisor Dave Potter named Monterey County representative for desal panel 
Salinas named alternate
By JIM JOHNSON Herald Staff Writer, 02/13/2013
Excerpts Highlights:
"Supervisor Dave Potter was chosen Tuesday to represent the county's interests on a proposed public governance committee that would be charged with oversight of California American Water's proposed desalination plant."
"Originally proposed and ultimately approved on Jan. 31 by the Peninsula mayors' water authority, the three-person committee would include members representing the Monterey Peninsula Water Management District and the Peninsula Water Authority."
"The supervisors agreed Tuesday to support in principle a position statement proposed by the mayors' authority regarding Cal Am's project, including a set of conditions such as requiring a public contribution of funds designed to lower project costs and fully developed alternative source water intake plans. But the supervisors stopped short of adopting the conditions to avoid breaching the terms of the county's settlement agreement with Cal Am involving the regional project, McKee said."


ABSTRACT: On February 12, 2013, the Monterey County Board of Supervisors is scheduled to consider Meeting Agenda Item Monterey Peninsula Water Supply Project Governance Committee. The Report RECOMMENDATION: 
It is recommended that the Board of Supervisors:
1. Approve the Agreement to Form the Monterey Peninsula Water Supply Project Governance Committee and authorize the Chair to execute the agreement.
2. Appoint one Supervisor as a member and one Supervisor as an alternate to the Governance Committee.
3. Support, in concept, the principles of the Monterey Peninsula Regional Water Authority’s Position Statement (labeled “Deliberative Document”).
And SUMMARY:
The Monterey Peninsula Water Supply Project Governance Committee is intended to provide public oversight of the proposed project. The Committee is to be composed of members from the Monterey Peninsula Regional Water Authority (MPRWA), the Monterey Peninsula Water Management District (MPWMD), California American Water Company (CAW) and the County of Monterey. The agreement has been or is expected to be approved by all parties within the next few weeks. In addition, the MPRWA has adopted a Position Statement (labeled “Deliberative Document”) that they would like your Board to support.
Attachment 1 Water Authority Position Statement 2013-01-31 and Attachment 2 MPWSP Governance Committee Agreement are embedded.
The Board of Supervisors of the Monterey County Water Resources Agency is also scheduled to consider Closed Session Meeting Agenda Item regarding California-American Water Company; the Agenda is embedded.
Note: Meeting Videos, Board of Supervisors of the Monterey County Water Resources Agency& Board of Supervisors


Monterey County
Monterey County Government Center
Board Chamber
168 W. Alisal St., 1st Floor
Salinas, CA 93901

Meeting Agenda - Final-revised
Tuesday, February 12, 2013
9:00 AM

Board of Supervisors
Chair Fernando Armenta - District 1
Vice-Chair Louis R. Calcagno - District 2
Supervisor SimĆ³n Salinas - District 3
Supervisor Jane Parker - District 4
Supervisor Dave Potter - District 5

Roll Call

10:30 A.M. - Scheduled Matters

10.3
1. Consider approving the Agreement to Form the Monterey Peninsula Water Supply Project Governance Committee and authorize the Chair to execute the agreement.

2. Appoint one Supervisor as a member and one Supervisor as an alternate to the Governance Committee.

3. Consider supporting, in concept, the principles of the Monterey Peninsula Regional Water Authority’s Position Statement. (Added via Addendum)

Attch 1 Water Authority Position Statement 2013-01-31
Attch 2 MPWSP_Governance_Committee_Agreement

Attachment 1 Water Authority Position Statement 2013-01-31 
Attachment 1 Water Authority Position Statement 2013-01-31

Attachment 2 MPWSP Governance Committee Agreement

Monterey County
Monterey County Government Center
Board Chamber
168 W. Alisal St. 1st Floor
Salinas, CA 93901

Meeting Agenda - Final-revised

Tuesday, February 12, 2013
9:00 AM
Board of Supervisors of the Monterey County Water
Resources Agency

Roll Call

1. Closed Session under Government Code section 54950, relating to the following items:

b. Pursuant to Government Code section 54956.9(d), the Board will confer with legal counsel regarding existing litigation:

(1) In the Matter of the Application of California-American Water Company (Application 04-09-019)

(2) Application of California-American Water Company (U210W) for Approval of the Monterey Peninsula Water Supply Project: Application 12-04-019

(3) California-American Water Company v. Marina Coast Water District, et al. (Monterey County Superior Court case no. M120053)
Board of Supervisors of the Monterey County Water Resources Agency
Meeting Agenda - Final-revised
Tuesday, February 12, 2013 9:00 AM

Monterey Peninsula Water Management District (MPWMD) Board of Directors: AGENDA ITEMS Receive Public Comment and Consider Changes to Project Sizing by California American Water, Additional Discussion of Proposed Surcharge 2 – Collection of Project Costs During Construction Period & Consider General Statement of District Position on California American Water Application No. 12-04-019 to Construct the Monterey Peninsula Water Supply Project, 12 February 2013

RELATED NEWS ARTICLES: 
Water agencies united on conditions for Cal Am desal project
Officials to testify before PUC
By JIM JOHNSON Herald Staff Writer, 02/13/2013
Excerpts Highlights:
"Area officials are poised to present a united front on California American Water's proposed water supply project in testimony to the state Public Utilities Commission next week, agreeing on demands for public oversight and other conditions."
"During a special meeting late Tuesday, the Monterey Peninsula Water Management District board of directors became the third local agency to unanimously back a call by Peninsula mayors for Cal Am's desal plant to meet certain conditions before earning the PUC's approval."
"Cal Am's board of directors agreed to the governance committee's proposal early Wednesday."
"Testimony is due Feb. 22 from participants in the PUC project review process. Evidentiary hearings are set for April 2-5 and April 8-11 at PUC headquarters in San Francisco."

Monterey Peninsula water district sets special meeting on Cal Am desal project 
Board to consider making 'general statement;' may revisit controversial desal proposals
By JIM JOHNSON Herald Staff Writer, 02/08/2013
Excerpts Highlights:
“According to a staff report, district General Manager Dave Stoldt is recommending the board offer conditional support for Cal Am's project based solely on its previously approved conditions.”
“The special meeting agenda also calls for revisiting a pair of proposals by Cal Am that some consider controversial: an increase in the size of the company's proposed desal plant and implementation of a $99 million surcharge on Peninsula water customers' bills to help fund the project.”
“The district board on Tuesday is also set to consider a report on projected demand for legal lots of record.”
“District staff is planning for an alternative desal project in case Cal Am's proposal falls through.”

ABSTRACT: Pertinent Agenda Items of the Special Meeting of the Board of Directors, Monterey Peninsula Water Management District, February 12, 2013, related to water, are presented. Specifically, Receive Public Comment and Consider Changes to Project Sizing by California American Water, Additional Discussion of Proposed Surcharge 2 – Collection of Project Costs During Construction Period and Consider General Statement of District Position on California American Water Application No. 12-04-019 to Construct the Monterey Peninsula Water Supply Project. EXHIBIT 5-A Position Paper Adopted by MPRWA January 31, 2013, EXHIBIT 5-B Draft Governance Committee Agreement and EXHIBIT 5-C Public Contribution of Funds Proposal are embedded.
Note: MONTEREY PENINSULA WATER MANAGEMENT DISTRICT
Live webcast at www.ampmedia.org on the Monterey Channel Live


MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

Special Meeting
Board of Directors
Monterey Peninsula Water Management District
******************
Tuesday, February 12, 2013, 6:00 PM

Conference Room, Monterey Peninsula Water Management District
5 Harris Court, Bldg G, Monterey, CA

Staff notes for the 6 PM agenda items will be available on the District web site at http://www.mpwmd.dst.ca.us/asd/board/boardpacket/2013/2013.htm
by 5 PM on Friday, February 8, 2013.

Board of Directors

David Pendergrass, Chair – Mayoral Representative
Brenda Lewis, Vice Chair – Division 1
Judi Lehman – Division 2
Kristi Markey – Division 3
Jeanne Byrne – Division 4
Robert S. Brower, Sr. – Division 5
David Potter – Monterey County
Board of Supervisors

General Manager
David J. Stoldt

ACTION ITEMS -- Public comment will be received on each of these items.  Please limit your comment to three (3) minutes per item.


Action:  The Board will receive public comment and then determine if it would like to adopt a formal position of support, disagreement, or neutrality, and direct staff to include in District testimony to the California Public Utilities Commission.


ITEM:
ACTION ITEM

3.
RECEIVE PUBLIC COMMENT AND CONSIDER CHANGES TO
PROJECT SIZING BY CALIFORNIA AMERICAN WATER

Meeting Date:
February 12, 2013
Budgeted: 
N/A



From:
David J. Stoldt,
Program/
N/A

General Manager
Line Item:


Prepared By:
David J. Stoldt

Cost Estimate:

None

 

General Counsel  Review:  N/A
Committee Recommendation:  N/A
CEQA Compliance:  N/A







SUMMARY: At the January 30, 2013 Board meeting, the Board directed staff to include several positions in the District testimony due February 22, 2013 in the proceeding of A.12-04-012 at the California Public Utilities Commission (CPUC.)  The Board, however, desired greater public input with respect to the sizing of the desalination plant capacity.

Cal-Am indicated that it was increasing the size of the proposed desalination facilities to incorporate replenishment of the Seaside Basin, as well as potential demand they had previously not included in the project sizing.  These include build-out of the Pebble Beach project the EIR for which was certified by the County last summer, the potential “bounce back” in tourism resulting from economic recovery and utilizing existing visitor-serving capacity, and legal lots of record.  These additions are shown in the table below:

Estimated Demand –Mid Range (AFY)
15,296
5yr Average (AFY)
13,290
Pebble Beach (AFY)
325
Tourism Bounce Back (AFY)
500
Lots of Record (AFY)
1,181

The resulting revised facility size is 6,252 AF with GWR, or 9,752 without GWR.

RECOMMENDATION:  The Board should discuss and determine if it would like to adopt a formal position of support, disagreement, or neutrality.  Such position will be incorporated into District testimony to be filed in February.

BACKGROUND:  As part of its application, Cal-Am indicated it needed new supplies of 9,006 acre foot per year (AFY) in order to meet an annual estimated demand of 15,250 AFY. This estimated demand was derived from the last Environmental Impact Report (“EIR”) and was the amount agreed upon by the parties in the settlement adopted in decision D.10-12-016.

Since Cal-Am filed its application, a couple of items have been brought to their attention that merits an adjustment to the estimated annual demand. These changes are as follows:

  • A payback schedule for the Seaside Groundwater Basin was set at 25 years. Essentially, this reduces the available supply from the Seaside Basin from 1,474 AFY to 774 AFY.
  • The tourism industry pointed to recent reductions in their occupancy rates that will come back and since they are existing customers, the use of a 5-year historical average may not reflect their true demand. Cal-Am reviewed past water use by commercial class users and has allocated 500 AFY for this updated demand return.  MPWMD staff analysis of this amount indicates that it may overstate the water demand that might result from economic recovery.  The analysis is attached as Exhibit 3-B.
  • Cal-Am has included an additional 325 AFY of potable water demand that needs to be included for the recently approved Pebble Beach build-out.
  • Cal-Am provided the estimated demands for the Lots of Records (LOR) of 1,181 AFY. This number is derived from the October 2009 Coastal Water Project Final Environmental Impact Report and cites Cal-Am’s 2006 Urban Water Management Plan (UWMP) referencing a 2001 District analysis as the source.   The District does not certify that the 1,181 AFY value is valid.  In fact, it was cited from an interim period between the Land Systems Group Phase II reports of August 2000 and June 2002 discussed under “2000 Land Systems Group Report” in Exhibit 3-A attached.  The District does not recommend continued use of this number.  Instead, the District will examine the results of the “2004-06 Future Water Needs Study” background data and attempt to break out legal lots of record and present those results at the February 12, 2013 Board meeting.

As part of their supplemental testimony, Cal-Am has re-evaluated the plant size to accommodate the above listed supply and demand changes with the assumption that current demands remain equal to the 5-year historical average which is approximately 13,290 AFY.

Summed up, the revised demands are 15,296 AFY, however, due to the reduction in the Seaside Basin supply, the desal plant needs to be sized larger by approximately 700 AFY or 0.6 million gallons per day (MGD) to account for the reduction in supply. Please refer to Exhibit 3-C which is a plant sizing memorandum from RBF Consulting dated January 7, 2013 that discusses the updated sizing of the plant with and without the Groundwater Replenishment (GWR) project.

The resulting revised facility size is 6,252 AF with GWR, or 9,752 without GWR.

EXHIBITS
3-A      Overview of Legal Lots of Record Documentation
3-B      MPWMD Analysis of Hospitality Bounce-Back
3-C      Plant Sizing Memorandum


4.  Additional Discussion of Proposed Surcharge 2 – Collection of Project Costs During Construction Period

Action:  The Board will receive public comment, discuss the issue and determine if action is needed.


Action:  The Board will receive public comment and then determine if it will state a position in its testimony on the application by California American Water.

ITEM:
ACTION ITEM

5.
CONSIDER GENERAL STATEMENT OF DISTRICT 
POSITION ON CALIFORNIA AMERICAN WATER 
APPLICATION NO.12-04-019 TO CONSTRUCT THE 
MONTEREY PENINSULA WATER SUPPLY PROJECT

Meeting Date:
February 12, 2013
Budgeted: 
N/A



From:
David J. Stoldt,
Program/
N/A

General Manager
Line Item:


Prepared By:
David J. Stoldt

Cost Estimate:

None

 

General Counsel  Review:  N/A
Committee Recommendation:  N/A
CEQA Compliance:  N/A







SUMMARY:  At the January 30, 2013 Board meeting, the Board directed staff to include several positions in the District testimony due February 22, 2013 in the proceeding of A.12-04-012 at the California Public Utilities Commission (CPUC.)  The Board, however, desired greater public input with respect to the sizing of the desalination plant capacity (Item 3 on this Agenda) as well as a general statement on the District’s position on the application - support, not support, conditional support, or neutrality.

RECOMMENDATION:  The Board should determine if the District supports, does not support, conditionally supports, or is neutral with respect to Cal-Am’s application.  The General Manager recommends qualified or conditional support based on Cal-Am’s incorporation of the governance and financial proposals the District made in its October 1 Public Participation filing and reaffirmed at the January 30, 2013 Board meeting (see Exhibits 5-B and 5-C).  The Board may wish to include other items in a manner similar to the position statement approved January 31, 2013 by the Mayor’s Monterey Peninsula Regional Water Authority and attached hereto as Exhibit 5-A

EXHIBITS
   MPWMD Exhibit 5-A by  
5-A      Position Paper Adopted by MPRWA January 31, 2013

   MPWMD EXHIBIT 5-B by  
5-B      Draft Governance Committee Agreement

   MPWMD Exhibit 5-C by  
5-C      Public Contribution of Funds Proposal