WaterPlus: ‘THE ONLY LOCAL ORGANIZATION LOOKING OUT FOR YOU, THE RATEPAYER’ Presents Leadership in Action Water Forum on the new Pacific Grove Desalination Project

ABSTRACT: WaterPlus, a public benefit nonprofit corporation, is “THE ONLY LOCAL ORGANIZATION LOOKING OUT FOR YOU, THE RATEPAYER.” THE NEW WATERPLUS MISSION STATEMENT: “Since the collapse of the regional desalination project, in which WaterPlus advocated for community control by promoting the municipalization of Cal Am, WaterPlus has expanded its mission as follows: To advocate in behalf of local Cal Am ratepayers for an adequate and affordable water supply by all reasonable means, including (its original mission) the persuasion or creation of a public agency to purchase Cal Am.” And IMPLEMENTATION: “To implement this new mission, WaterPlus is promoting the development of a desalination plant that will be sufficiently large to constitute a drought-proof water supply for the Monterey Peninsula, at the least possible cost to local ratepayers.” The WaterPlus Forum video(s) on the Pacific Grove Desalination Project, July 16, 2012, including Segments #1 - #6 and the entire 1:20:51 WATER PLUS FORUM ON THE PACIFIC GROVE DESALINATION PROJECT, are embedded.

Richard Stillwell and Ron Weitzman, President, WaterPlus Monterey
Segment #1 of the July 16, 2012 WaterPlus Forum

Daniel Miller, Pacific Grove Councilmember, Water Committee
Segment #2 of the July 16, 2012 WaterPlus Forum

Rudy Fischer, Pacific Grove Councilmember, Water Committee
Segment #3 of the July 16, 2012 WaterPlus Forum

Cameron Weist, Attorney at Law, Specializing in Public Financing
Segment #4 of the July 16, 2012 WaterPlus Forum

Paul Hart, Attorney at Law
Segment #5 of the July 16, 2012 WaterlPlus Forum

Robert Barminski, Hydrologist, Environmental Scientist
Mike Mickley, P.E., Ph.D, Science and Engineering Consultant
Segment #6 of the July 16, 2012 WaterPlus Forum

WATER PLUS FORUM ON THE PACIFIC GROVE DESALINATION PROJECT
July 16, 2012 (Segments #1 - #6)

RESPONSES TO TAC CRITERIA FOR PROJECT EVALUATION QUESTIONS: California American Water, DeepWater Desal & Moss Landing Commercial Park

ABSTRACT: RESPONSE TO TAC CRITERIA FOR PROJECT EVALUATION QUESTIONS California American Water, DEEPWATER DESAL RESPONSE TO TAC PROPONENT QUESTIONS and T A C Questions Moss Landing Commercial Park Response documents are embedded.

Cal-Am Submittal to TAC OCR Document

RESPONSE TO TAC CRITERIA FOR PROJECT EVALUATION QUESTIONS
California American Water

DeepWater Desal Submittal to TAC OCR Document

DEEPWATER DESAL RESPONSE TO TAC PROPONENT QUESTIONS

Moss Landing Commercial Park Submittal to TAC OCR Document

T A C Questions
Moss Landing Commercial Park

CITY OF PACIFIC GROVE CITY COUNCIL: ‘ACTION MINUTES’ 14. UNFINISHED BUSINESS D. & E. 18 July 2012

"ACTION MINUTES"

CITY OF PACIFIC GROVE

CITY COUNCIL

Wednesday, July 18, 2012

Regular Meeting at 6:00 P.M.

Council Chambers – City Hall – 300 Forest Avenue, Pacific Grove, CA.

6:00 p.m.

CALL TO ORDER

Mayor Garcia, Councilmembers Kampe, Cohen, Cuneo, Fischer, Huitt and Miller in attendance.

REGULAR AGENDA

14. UNFINISHED BUSINESS

D. Agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC (LMCP) to develop a desalinated water project able to meet the needs of Pacific Grove and the Monterey Peninsula

Reference:  Thomas Frutchey, City Manager

Recommended Action: 

1. Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove.

2.  Decline taking action on the agreement at this time.  (If Council disagrees, it has the ability to take one or more alternative actions, including approving the agreement.)

Action: Upon a motion and carried on a 5-2 vote, with Councilmembers Kampe and Huitt dissenting, Council approved an agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC to develop a desalinated water project able to meet the needs of Pacific Grove and the Monterey Peninsula.

E. Consideration of the City’s Continued Membership in the Monterey Peninsula Regional Water Authority

Reference:  Thomas Frutchey, City Manager

Recommended Action: 

1.   Consider the City’s continued membership in the Water JPA.

2.   Provide direction to the Mayor and City Manager.

Action: Upon a motion and vote 7-0, Council agreed to continue membership in the Monterey Peninsula Regional Water Authority.

SOURCE: Pacific Grove agrees to take the lead scoping out Agha water project, LARRY PARSONS Herald StaffWriter, 07/19/2012

CITY OF PACIFIC GROVE 18 July 2012 CITY COUNCIL AGENDA: Agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC to develop a desalinated water project able to meet the needs of PG and the Monterey Peninsula & Consideration of the City’s Continued Membership in the Monterey Peninsula Regional Water Authority

ABSTRACT: On the Wednesday, July 18, 2012 CITY OF PACIFIC GROVE CITY COUNCIL REGULAR MEETING AGENDA are two agenda items, namely 14. D. Agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC (LMCP) to develop a desalinated water project able to meet the needs of Pacific Grove and the Monterey Peninsula and 14. E.Consideration of the City’s Continued Membership in the Monterey Peninsula Regional Water Authority. Importantly, the Mayor has concern over the City’s continued membership and participation, including:

 The expenditure of scarce City funds.

 The investment of City Manager and staff time.

 The perceived slow rate of progress.

 The potential for duplication of effort with the Water Management District

Additionally, Christine Davi, City Attorney, Monterey, wrote “I highly recommend that the Water Authority retain independent legal counsel and hire personnel for administrative services, and I have highlighted the reasons for this recommendation below.” The AGENDA REPORTS are embedded.

CITY OF PACIFIC GROVE

CITY COUNCIL

SPECIAL AND REGULAR MEETING AGENDAS

Wednesday, July 18, 2012

Special Meeting Begins at 5:00 P.M. Regular Meeting Begins at 6:00 P.M.

Council Chambers – City Hall – 300 Forest Avenue, Pacific Grove, CA.

REGULAR MEETING AGENDA

6:00 p.m.
CALL TO ORDER

REGULAR AGENDA

14. UNFINISHED BUSINESS

14. D.. Agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC (LMCP) to develop a desalinated water project able to meet the needs of Pacific Grove and the Monterey Peninsula

Reference:  Thomas Frutchey, City Manager

Recommended Action: 

1. Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove.

2.  Decline taking action on the agreement at this time.  (If Council disagrees, it has the ability to take one or more alternative actions, including approving the agreement.)

14.D. PG Agha-MLCP Agreement OCR Document

14. D.. Agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC (LMCP) to develop a desalinated water project able to meet the needs of Pacific Grove and the Monterey Peninsula

14. E.Consideration of the City’s Continued Membership in the Monterey Peninsula Regional Water Authority

Reference:  Thomas Frutchey, City Manager

Recommended Action: 

1.   Consider the City’s continued membership in the Water JPA.

2.   Provide direction to the Mayor and City Manager.

14.E. PG Continued Membership in MPRWA OCR Document

14. E.Consideration of the City’s Continued Membership in the Monterey Peninsula Regional Water Authority

CITY OF PACIFIC GROVE CITY COUNCIL: STATUS REPORT by Paul Hart, Esq., Counsel for Nader Agha and Moss Landing Commercial Park, LLC (MLCP) RE: Formation Agreement Between City and MLCP

ABSTRACT: STATUS REPORT by Paul Hart, Esq., Counsel for Nader Agha and Moss Landing Commercial Park, LLC (MLCP) RE: Formation Agreement Between City and MLCP is embedded. Importantly, the STATUS REPORT responds to the City Manager’s Arguments Against Entering Formation Agreement and states, as follows:

The City Manager's Agenda Report presents seven arguments against entering the Formation Agreement. Unfortunately, each of the arguments are flawed, for one or more of the following reasons:

1. The arguments are outside the proper scope of this meeting. The Council has already approved the agreement, subject only to the Indemnification Provision language of paragraph 15.

2. The arguments attempt to re-hash arguments that have already been considered and rejected by The Council.

3. The arguments are based upon inaccurate facts;

4. The arguments are legally and procedurally inaccurate;

5. The arguments improperly present "Opinions" as facts;

Mr. Hart concludes: “For all the reasons cited previously by The Council, the pursuit of publically controlled water for the Citizens of Pacific Grove and avoiding the exorbitantly high cost of water from the Cal Am project is in the best interest of the City. Moreover, the City can take this next step without risk of any kind and without any out-of-pocket cost.”

Agha-Hart Ltr to PG City Council Dated 6-20-12

JOHNSON, MONCRIEF & HART

A PROFESSIONAL CORPORATION

STATUS REPORT

DATE: June 20, 2012

TO: Honorable Mayor and Members of the City Council

FROM: Paul Hart, Esq., Counsel for Nader Agha and Moss Landing Commercial Park, LLC (MLCP)

MEETING DATE: June 20, 2012

RE: Formation Agreement Between City and MLCP

CITY OF PACIFIC GROVE CITY COUNCIL 20 June 2012 Meeting Agenda Item: UNFINISHED BUSINESS Agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC (MLCP) to develop a desalinated water project able to meet the needs of Pacific Grove and the Monterey Peninsula

Corrections
The Monterey County Herald, 06/25/2012
The continuation of consideration of an agreement between the city of Pacific Grove and water-project developer Nader Agha wasn't the subject of a hearing or council vote last week as reported in a Saturday story in The Herald. The item was pulled off the council's Wednesday agenda by Mayor Carmelita Garcia and delayed until July 18.

UPDATE & RELATED NEWS ARTICLE:

Despite critical report, P.G. still open to desalpartnership with Agha

But city manager says risks outweigh benefits, LARRY PARSONS, Herald Staff Writer, 06/22/2012

Despite a highly critical report by City Manager Thomas Frutchey that concluded that the risks outweigh the potential benefits, the council voted 5-2 this week to keep the proposed preliminary partnership alive - on yet-unsigned paper.
"The matter has been continued to July 18,"...

An attorney for Agha also took issue with the negative recommendation by Frutchey.

"Unfortunately each of (his) arguments is flawed," said attorney Paul Hart in a 10-page memo countering Frutchey's seven-page analysis.

ABSTRACT: The City of Pacific Grove City Council is scheduled to hold a regular meeting on Wednesday, June 20, 2012 at 6:00 P.M. in Council Chambers, City Hall, 300 Forest Avenue to consider Consent Agenda Item No. 14A UNFINISHED BUSINESS Agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC. (MLCP) to develop a desalinated water project able to meet the needs of Pacific Grove and the Monterey Peninsula. The AGENDA REPORT, prepared by Thomas Frutchey, City Manager, includes a RECOMMENDATION:

1.  Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove.

2.  Decline taking action on the agreement at this time.  (If Council disagrees, it has the ability to take one or more alternative actions, including approving the agreement.)

CONCLUSION: “I cannot recommend that the City become a partner in this project; the downside risks far outweigh the possible benefits that cannot be achieved by other means.  It is my professional opinion that the City’s goals can be better achieved and our citizens better served by not proceeding with this agreement at this time, but instead, continuing as a full participating partner in the Water JPA.”

Selected excerpts from the AGENDA REPORT are presented and the AGENDA REPORT, including City Manager Thomas Frutchey's Report, FORMATION AGREEMENT BETWEEN THE CITY OF PACIFIC GROVE AND MOSS LANDING COMMERCIAL PARK, LLC. (June 1, 2012), George Schroeder's and Nader Agha's Letter to Monterey Mayor Chuck Della Sala Re: Technical Advisory Committee of the Water Authority (June 5, 2012) and Nader Agha's Monterey County Herald Letter to the Editor (June 12, 2012), City of Pacific Grove Prehearing Conference Statement, Public Utilities Commission (June 4, 2012) and Schedule Proposed by California Public Utilities Commission (CPUC) Administrative Law Judge (ALJ) in Pre-Hearing Conference (PHC) (JUne 6, 2012), is embedded.  Parenthetically, Schroeder and Agha state in their letter to Monterey Mayor Della Sala that "we decided that we would withdraw our proposal from the consideration of the TAC, and did tell them that at the June 4th meeting, and further told them that we would work only directly with the Water Authority or other committee it has.  We request that our proposal be examined by the Water Authority along with Deepwater in the further detailed analysis the Water Authority is planning to undertake."

REGULAR MEETING AGENDA

6:00 p.m.

CALL TO ORDER

14 UNFINISHED BUSINESS

1. Agreement initiating a relationship with Nader Agha and Moss Landing Commercial Park, LLC. (MLCP) to develop a desalinated water project able to meet the needs of Pacific Grove and the Monterey Peninsula  PG 273

Reference:  Thomas Frutchey, City Manager

1.  Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove.

2.  Decline taking action on the agreement at this time.  (If Council disagrees, it has the ability to take one or more alternative actions, including approving the agreement.)

 RECOMMENDATION of Thomas Frutchey, City Manager:

1.  Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove.

2.  Decline taking action on the agreement at this time.  (If Council disagrees, it has the ability to take one or more alternative actions, including approving the agreement.)

Importantly, in City Manager Thomas Frutchey’s AGENDA REPORT, he states:

Peering into the future is always uncertain, but the City’s involvement in the People’s Project would appear to have a low likelihood of positive benefit, and a high risk that the costs would exceed the benefits, for the following seven reasons:

1. The CPUC and other regulatory agencies are not likely to approve Mr. Agha’s project (or either of the other two projects) as currently conceived.

2. Cal-Am’s application before the CPUC does not to provide a proper means by which CalAm will be authorized to buy water from the People’s Project to convey to ratepayers.

3. Mr. Agha and the City have markedly different goals, and the proposed partnership is ill suited to assist either party in reaching its goals.

4. Given that a public partner does not appear necessary, the City has nothing of value to offer Mr. Agha, but does impose significant restrictions on his freedom to act.

5. This project is way beyond the City’s capabilities, and would impose unacceptable opportunity costs on the other responsibilities and opportunities we have in the coming years.

6. There are significant financial and legal risks of the City’s involvement in this project.

7. The resources Mr. Agha is willing and able to commit are not likely to be sufficient to see this project through to completion.  Thus, Mr. Agha will likely need at least one other partner, which will complicate an already challenged relationship even further.

CONCLUSION

The Council subcommittee has consistently championed this project and the partnership.  As City Manager, however, my perspective, and the factors that I must consider, are inherently different...

...However, as City Manager, I cannot recommend that the City become a partner in this project; the downside risks far outweigh the possible benefits that cannot be achieved by other means.  It is my professional opinion that the City’s goals can be better achieved and our citizens better served by not proceeding with this agreement at this time, but instead, continuing as a full participating partner in the Water JPA.

Pacific Grove AGENDA REPORT 14A June 20 2012 OCR Document

Consent Agenda Item No. 14A

CITY OF PACIFIC GROVE

300 Forest Avenue, Pacific Grove, California 93950

AGENDA REPORT

CITY OF PACIFIC GROVE CITY COUNCIL 23 MAY 2012 MEETING AGENDA ITEM: Agreement initiating a relationship with Nader Agha to develop a water project able to meet the needs of Pacific Grove and the Monterey Peninsula

RELATED NEWS ARTICLE: Agha, P.G. at odds over who will pay to defend lawsuits, KELLY NIX, The Carmel Pine Cone, June 1, 2012, 1A & 22A

“He (Councilman Dan Miller) pointed to Agha’s agreement to purchase a $2 million insurance policy that would protect the city from litigation in the event of Agha or his company, Moss Landin Commercial Park, were negligent.”

“Miller told The Pine Cone Wednesday the item will likely be on next week’s city council agenda and that he expects the indemnification issue to be resolved.”

UPDATE:

CITY OF PACIFIC GROVE

SPECIAL CITY COUNCIL MEETING

Wednesday, May 23, 2012

“ACTION MINUTES”

CALL TO ORDER

Mayor Garcia, Councilmembers Kampe, Cohen, Cuneo, Fischer, Huitt and Miller in attendance.

14. UNFINISHED BUSINESS

            A. Agreement initiating a relationship with Nader Agha to develop a  water project able to meet the needs of Pacific Grove and the Monterey Peninsula

Reference:  Thomas Frutchey, City Manager

Recommended Action:  

1. Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove.
2. Provide direction on any remaining outstanding issues related to the agreement.  This preliminary agreement establishes the parameters and payment provisions for the completion of the second agreement.
3. Direct staff to file application with the CPUC by May 25, 2012 with fees paid by Nader Agha.

Action: Upon motion of Councilmember Cuneo to accept Agreement with the exception of paragraph 15 (Indemnification) and through JPA process request other cities join with Pacific Grove formally, motion carried. 

ADDENDUM:

Paragraph 15 

4.15. Indemnification.  MLCP and Nader Agha, personally, agree to indemnify, defend, and hold City, its Council, officers, agents, and employees free and harmless from any 3rd party claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including attorney’s fees and costs, that such may incur as a result of a material breach by MLCP of its obligations under this Agreement.  

MLCP and Nader Agha further agree to indemnify, defend, and hold City, its Council, officers, agents, and employees free and harmless from any 3^rd party claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including attorney’s fees and costs, resulting from such 3rd party’s property loss or personal injury that result from alleged negligence by MLCP in the performance of this Agreement.  The scope of indemnity for negligent acts herein shall be identical to the scope of coverage under standard California Commercial General Liability Insurance Policies.

MLCP agrees to maintain a policy of insurance to cover any negligent acts or a omissions committed by MLCP, its employees or agents giving rise to 3^rd party claims of property loss or personal injury arising from and in conjunction with MLCP’s performance of this Agreement.  In order to support its indemnity obligations based upon claims of negligence  under this Agreement, MLCP agrees to maintain a policy of insurance of at least Two  Million Dollars ($2,000,000), and shall name City as an additional insured under such  policy.  City shall be given thirty (30) days prior written notice of the intent to change or chancel such coverage.  MLCP shall provide City with a certificate of insurance or other  evidence of such insurance coverage.  

Any obligation to Indemnify shall survive termination of this Agreement, if the alleged act  giving rise to liability occurred during the period during which this Agreement was in effect.

ABSTRACT:  The City of Pacific Grove’s May 16, 2012 City Council meeting was continued to Wednesday, May 23, 2012 at 6:00 P.M. for Open Session at City Council Chambers, located at 300 Forest Avenue, Pacific Grove.  An agenda item includes 14. UNFINISHED BUSINESS A. Agreement initiating a relationship with Nader Agha to develop a water project able to meet the needs of Pacific Grove and the Monterey Peninsula.  The AGENDA REPORT is embedded, including the Draft Agreement, dated May 21, 2012.  The RECOMMENDATION of Thomas Frutchey, City Manager, is as follows:

1. Receive an update on the agreement to initiate and provide funding to establish a  public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC  and the City of Pacific Grove. 

2.  Provide direction on any remaining outstanding issues related to the agreement.  This preliminary agreement establishes the parameters and payment provisions for the completion of the second agreement. 

Importantly, the DISCUSSION states: Two specific areas of interest were negotiated over the past several weeks to ensure consistency with that principle:

• Assurance that the $600,000 Mr. Agha is committing to the development of the People Project’s EIR, permit applications, and other efforts will be available when needed; and

• Protection of the City in the event of lawsuits, regulatory requirements of the CPUC, Coastal Commission, or other permitting bodies, or any other unintended sources of expenses resulting from the City’s participation in the Project.

The attached revised agreement contains agreed-to wording in both areas.  This wording is in bold lettering.

Pacific Grove AGENDA REPORT 14a May 23_ 2012 -
AGENDA REPORT
Agreement initiating a relationship with Nader Agha to develop a water project able to meet the needs of Pacific Grove and the Monterey Peninsula 

CITY OF PACIFIC GROVE CITY COUNCIL: Agreement initiating a relationship with Nader Agha to develop a water project able to meet the needs of Pacific Grove and the Monterey Peninsula

UPDATE:  The May 16, 2012 City of Pacific Grove City Council meeting has been continued to Wednesday, May 23, 2012 at 6:00 P.M. for Open Session at City Council Chambers, 300 Forest Avenue, Pacific Grove.  Regarding 14. UNFINISHED BUSINESS A. Agreement initiating a relationship with Nader Agha to develop water project able to meet the needs of Pacific Grove and the Monterey Peninsula
Reference: Thomas Frutchey, City Manager 
Recommended Action:
1. Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove.
2. Provide direction on any remaining outstanding issues related to the agreement. This preliminary agreement establishes the parameters and payment provisions for the completion of the second agreement. 3. Direct staff to file application with the CPUC by May 25, 2012 with fees paid by Nader Agha.


ABSTRACT:  On Wednesday, May 16 2012 at 6:00 P.M., the City of Pacific Grove City Council will conduct a Regular Meeting; the REGULAR MEETING AGENDA includes an agenda item UNFINISHED BUSINESS, Agreement initiating a relationship with Nader Agha to develop a water project able to meet the needs of Pacific Grove and the Monterey Peninsula.  The Recommended Action:  Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove and Provide direction on any remaining outstanding issues related to the agreement.  This preliminary agreement establishes the parameters and payment provisions for the completion of the second agreement. Importantly, the DISCUSSION states, as follows:

To qualify for the bond funding necessary for the People’s Project, the City and Mr. Agha must ensure that the CPUC directs Cal-Am to purchase the water produced by the People’s Project for conveyance to the ratepayers...

To appear in the CPUC proceeding, the City and Mr. Agha must obtain qualified legal counsel, bring that counsel fully up to speed, and ensure counsel has adequate time to develop well reasoned and persuasive pleadings.

One of the primary underlying principles required by the Council in the formation of the relationship with Mr. Agha is that the City’s General Fund and overall fiscal health not be placed at any risk. As of the completion of preparation of this agenda packet, on Friday, May 11, 2012, the proposed initial agreement is still being negotiated in two areas to ensure consistency with that principle:

• Assurance that the $600,000 Mr. Agha is committing to the development of the People Project’s EIR, permit applications, and other efforts will be available when needed; and

• Indemnification of the City, to protect the City in the event of lawsuits, regulatory requirements of the CPUC, Coastal Commission, or other permitting bodies, or any other unintended sources of expenses resulting from the City’s participation in the Project.

Relevant sections of the REGULAR MEETING AGENDA are reproduced and the AGENDA REPORT is embedded, including the FORMATION AGREEMENT BETWEEN THE CITY OF PACIFIC GROVE AND MOSS LANDING COMMERCIAL PARK, LLC.

NOTICE OF MEETING

CITY OF PACIFIC GROVE

CITY COUNCIL

SPECIAL AND REGULAR MEETING AGENDAS

Wednesday, May 16, 2012

Council Chambers – City Hall – 300 Forest Avenue, Pacific Grove, CA

REGULAR MEETING AGENDA

6:00 p.m.

CALL TO ORDER

Mayor Garcia, Councilmembers Kampe, Cohen, Cuneo, Fischer, Huitt and Miller

14.  UNFINISHED BUSINESS

A  Agreement initiating a relationship with Nader Agha to develop a  water project able to meet the needs of Pacific Grove and the Monterey Peninsula

Reference:  Thomas Frutchey, City Manager

Recommended Action:  

1. Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove.
2. Provide direction on any remaining outstanding issues related to the agreement.  This preliminary agreement establishes the parameters and payment provisions for the completion of the second agreement

Pacific Grove Agreement initiating a relationship with Nader Agha to develop a Water Project

Agreement initiating a relationship with Nader Agha to develop a  water project able to meet the needs of Pacific Grove and the Monterey Peninsula

NEWS ARTICLES: Water Replacement Projects

ABSTRACT:  A compilation of noteworthy news articles on water replacement projects, namely the Moss Landing Commercial Park (formerly the People's Moss Landing Desal Project), Cal Am company's new Monterey Peninsula Water Supply Project (MPWSP) involving a smaller desal plant north of Marina owned by Cal Am, expanded aquifer storage and recovery in partnership with Monterey Peninsula Water Management District and new groundwater replenishment program in partnership with the District and the Monterey Regional Water Pollution Control Agency, and DeepWater Desal in Moss Landing, is presented.  Also links and selected excerpts from news articles are provided.

RE:

6/6/12 10:00 a.m. ALJ Weatherford Comr Peevey

A.12-04-019 (PHC) - Application of California-American Water Company (U210W) for Approval of the Monterey Peninsula Water Supply Project and Authorization to Recover All Present and Future Costs in Rates, Commission Courtroom, San Francisco

PUC judge predicts rough road ahead for Cal Am water project

At least a dozen parties now part of project review, JIM JOHNSON Herald Staff Writer, 06/06/2012

"Early in the hearing, Weatherford suggested he would lean toward focusing the PUC review on the proposal as presented by Cal Am and not on a parallel track with alternatives. But he left the door open to the possibility that alternatives could be considered as part of environmental review or during evidentiary hearings later this year."

Judge: Proceed with Cal Am new watersupply project application, JIM JOHNSON Herald Staff Writer, 06/01/2012

“In his ruling, Weatherford requested the parties to the proceeding submit briefs outlining their stance on critical legal issues, including the county's public desalination plant ownership ordinance, and the project backers' access to slant well intake water, groundwater replenishment product water, and the brine disposal outfall considered critical to the project's feasibility.”

“Weatherford gave the parties until July 11 to file their briefs on the legal issues, and until July 25 for replies.”

Committee seeks consultant to help evaluate desal projects

Members agree consultant needed to vet proposals

By JIM JOHNSON Herald Staff Writer, 05/23/2012 

"The committee has been charged with vetting desal projects proposed by California American Water north of Marina and by the backers of The People's Project and DeepWater Desal in Moss Landing."

Cal Am supply plan draws fire

Panelists say public input lacking, laws being ignored

By JIM JOHNSON Herald Staff Writer, 05/05/2012 

"I don't know what the (authority) will do, but I'm taking them at their word that they want to speak with one voice, and that means they need to hammer out some compromises," said Riley, a water activist. "So far it's just been public meetings and public comment, no decisions, no policy, no direction. We need a follow-up process leading toward a decision. We need more structure. There are too many problems adding up faster than the sense of progress."

(George Riley, member of the Monterey Peninsula Regional Water Authority's technical advisory committee) 

Salt Solo

State PUC says Cal Am can ignore county and go it alone ondesal plant; county says, ‘What?’

Story by Kera Abraham Thursday, May 3, 2012

Desal plan draws opposition; water district asks PUC to reject Cal Am proposal

By JIM JOHNSON Herald Staff Writer, 05/01/2012 Updated:   05/02/2012 

Cal Am has new plan for desal

Monterey Peninsula: Public ownership rule challenged

By JIM JOHNSON Herald Staff Writer, 04/23/2012 Updated:   04/24/2012

P.G. council backs Agha desal plan

KELLY NIX, The Carmel Pine Cone, April 20, 2012

Agha's desal deal with Pacific Grove changes game, some say

By JIM JOHNSON Herald Staff Writer, 04/19/2012

Late Wednesday, the Pacific Grove City Council agreed to serve as the lead agency for local businessman Nader Agha's proposed People's Moss Landing Desal Project, which would include a $129 million desal plant on the former National Refractories site now called the Moss Landing Commercial Park.

Cal Am President Rob MacLean is scheduled to present the company's proposal to the Monterey Peninsula Regional Water Authority during a meeting at 6 p.m. Monday at Monterey City Hall.

Pacific Grove OKs desalination partnership with Agha

By KEVIN HOWE Herald Staff Writer, 04/19/2012

The council voted 6-1 Wednesday to approve "an agreement establishing a relationship with Desal America in order to accelerate a water project for Pacific Grove and Monterey County."

PIPELINE DREAMS

A single desal plant supplying the greater Monterey Bay area is a long shot.

By Kera Abraham, Thursday, April 19, 2012