MPRWA Agenda Packet 08-14-14

Agenda
Monterey Peninsula Regional Water Authority (MPRWA)

Regular Meeting

7:00 PM, Thursday, August 14, 2014
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 July 10, 2014 Joint Special Meeting Minutes - <name_author>

2. Approve July 10, 2014 Regular Meeting Minutes - <name_author>

3. Adoption of a Resolution to Approving the Revised Member Allocation (%) Distributions to
Include the County of Monterey and Downward Revisions to the Annual Member
Contributions for Fiscal Year 2014-15 - Milton

4. Approval of Checks from May to July 2014 and Adoption of a Resolution Approving the
Final Budget Reconciliation for Fiscal Year 2013-14 - Milton

AGENDA ITEMS

5. Receive report, discuss, and provide direction with regards to expected changes to the
California Public Utilities Commission(CPUC) schedule for the Monterey Peninsula Water
Supply Project (MPWSP) - Cullem

6. Receive report, discuss, and provide direction with regards to the current status of source
water negotiations for the Monterey Regional Water Pollution Control Agency (MRWPCA)
Ground Water Replenishment (GWR) Project - Stoldt

7. Receive report, discuss, and vote on staff proposal to add the General Manager, or District
Engineer, of the Marina Coast Water District (MCWD) as a member of the Authority
Technical Advisory Committee (TAC) and to add a MCWD hydrologist to the Monterey
Thursday, August 14, 2014
2

Peninsula Water Supply Project (MPWSP) Hydrogeologic Working Group - Burnett/Cullem

8. Receive report, discuss, and provide direction on the Value Engineering (VE) Final Report
for the Cal Am Desal facility, authorize forwarding of the VE report to the Governance
Committee for its action, and authorize payment to the consultant (VMS) from funding
provided by Cal Am, not to-exceed the contract price of $109,035.70 - Cullem/Crooks

9. Receive report, discuss, and provide direction on the power purchase agreement between
Cal Am and the Monterey Regional Waste Management District (MRWMD) -
Cullem/Crooks

10. Receive report, discuss, and provide direction on the City of Marina test slant well Coastal
Development Permit (CDP) and the current schedule for Coastal Commission CDP -
Crooks

ADJOURNMENT

The Monterey Peninsula Regional Water Authority is committed to include the disabled in all of
its services, programs and activities. For disabled access, dial 711 to use the California Relay
Service (CRS) to speak to staff at the Monterey City Clerks Office, the Principal Office of the
Authority. 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 staff at the Monterey City Clerks Office at
(831) 646-3935 to coordinate use of a device or for information on an agenda.

Agenda related writings or documents provided to the MPRWA are available for public
inspection during the meeting or may be requested from the Monterey City Clerks 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.

MI NUTES
MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)
Joint Special Meeting
7:00 PM, Thursday, July 10, 2014
COUNCIL CHAMBER
580 PACIFIC STREET
MONTEREY, CALIFORNIA

ROLL CALL
The Joint Special Meeting with the Governance Committee was called to order at 7:30 P.M.

Directors Present: Burnett, Edelen, Kampe, Pendergrass, Rubio, Della Sala,

Directors Absent: None

Governance Committee
Members Present:
Jason Burnett, Chair
Rich Svinland, California American Water
Dave Potter, County of Monterey

Members Absent:
Jeanie Byrns, MRWPCA

Staff Present: Executive Director, Legal Counsel, Clerk of the Authority,

PLEDGE OF ALLEGIANCE

PUBLIC COMMENTS

Tom Rowley thanked the Monterey County representative for attending the Authority
meeting and urged him to attend regularly to represent the County Cal Am rate payers.
Nelson Vega also thanked Mr. Potter for attending but then spoke to Mr. Della Sala's
efforts as President of the Authority as exemplary and commendable.

AGENDA ITEMS

1. Receive Report from Value Management Strategies, Inc., Discuss, and Provide Direction on the
Draft Preliminary Value Engineering Study of CDM's 30% Design of the California American
Water Company Desalination Project.

Executive Director Cullem introduced Mark Watson from Value Management Strategies,
spokesperson for the Value Engineering study for the Monterey Peninsula Water Supply
Project (MPWSP). He presented a preliminary presentation noting a final presentation would be
made on July 15, 2014 to the Governance Committee. Mr. Cullem spoke to the opportunities
the public had to participate in the process including the TAC Meeting on July 7, 2014 and that
the final report would be released in 30 days.

Mr. Watson presented the preliminary results of the Value Engineering "VE" study of the
desalination plant, invited public comment and discussed next steps for the path forward for the
VE results. He spoke to the purpose of the study to identify a series of value enhancing options
to the current design of the project through an objective, not an independent review. Mr.
Watson further explained that the workshop consisted of a multi-discipline and stakeholder
attendees that helped develop the proposed options. The process included the following
MPRWA Minutes Thursday, July 10, 2014

Monterey Peninsula Regional Water Authority
Joint Special Meeting Minutes - Thursday, July 10, 2014
2
elements; preparation information, functional analysis, speculation, evaluation, development
presentation and post study implementation. He reiterated that VE is not a cost reducing
exercise but an intersection of performance, cost, risk and time, all appropriately weighed that
increase the value of the project. He spoke to the 15 identified priorities and indicated if
implemented, could potentially decrease the total project cost by 9 million dollars and improve
the value of the project by up to 29 percent over the life of the project. Mr. Watson answered
questions from the Boards.

Director Rubio questioned if future expansion options were considered within the analysis,
Director Edelen questioned the environmental impacts and Director Kampe questioned if pre-
treatment and pathogen removal was addressed and asked if the provided bore hole data was
sufficient to determine if we could do a better job at a cheaper cost. Mr. Watson indicated that
the highest risk identified is the raw water data. The report will indicate that there is a lack of
data on the water and assumptions were made according to different speculated results. That is
a key aspect to overall cost to the project.

Vice President Burnett requested clarification of the key drivers for the significant cost savings
to which Mr. Watson explained the largest savings would be related to the recovery rate
process. The current project assumes a 40% recovery in first pass and 90% in the second and
VMS believes that there is a possibility for a higher recovery rate which would impact the RO
membranes positively.

Director Pendergrass questioned if any energy savings were identified to which Mr. Watson
explained there were 33 suggestions as the group was very focused on the life cycle cost
savings and total carbon footprint for the alternatives. He identified that it was assessed as a
risk to obtain power from the Monterey Regional Waste Management District due to
uncertainties.

President Della Sala invited public comment on the presentation.
Nelson Vega questioned the potential impacts to the cost per acre foot of the project
and supported the larger facility size
Rick Riedl requested renegotiation with CDM Smith to recoup some of the cost savings
and questioned if there was an incentive to reduce costs within the contract.
Dale Heikaus requested clarification of the definitions of value comparison.
George Riley, questioned if the suggestions were implemented, would the quality or
components of the source water change.
David Lifland questioned the RO schematic expressing concern that the building was
not large enough and questioned if the public would be able to comment on the final
process.
Michael Warburton questioned how drought regulations would be enforced and spoke to
pending legislation as it relates to this project.

Mr. Watson answered questions posed during public comments.
MPRWA Minutes Thursday, July 10, 2014

Joint Special Meeting Minutes - Thursday, July 10, 2014
3

Rich Svinland, Cal Am noted that many of the options submitted were already discussed and
will be recommended for implementation to CDM. He noted they may not get dollar for dollar
recovery, but will negotiate to get a decreased cost to the ratepayers. He explained that some
systems are not yet fully designed because of the outstanding results of the test wells. The
pipeline design is ready for the VE process, which will be included in the Environmental Impact
Report.

Executive Director Cullem spoke to the additional needed study for this project and expressed
caution that the proposed $9 million in savings may change as modifying one aspect may
impact other factors. He reported the public will be able to comment on the study during the
Governance Committee meeting when the final report is received.

ADJOURNMENT

Having no further business to conduct, the meeting was adjourned at 8:13 PM.

ATTEST:

Lesley Milton, Clerk Chuck Della Sala, President

Agenda Report

Date: August 14, 2014
Item No: 3.

06/12
FROM: Authority Clerk Milton

SUBJECT: Adoption of a Resolution to Approving the Revised Member Allocation (%)
Distributions to Include the County of Monterey and Downward Revisions
to the Annual Member Contributions for Fiscal Year 2014-15

RECOMMENDATION:

Staff recommends that the Authority adopt the attached resolution revising the member
city contribution percentages for Fiscal Year 2014-15 due to the budgeted funding
allocation by the County of Monterey.

DISCUSSION:

When the authority was initially formed, it was anticipated that all Cal Am Rate payers
affected by the Cease and Desist order would be represented by the Authority. Due to a
challenge placed on certain supervisorial representatives, The County of Monterey has
never formally been seated as a member. However, through the participation of the
County of Monterey as a member of the Governance Committee and the fact that the
Authority has continued to work to provide a water supply regardless of membership of
all rate payers, it has been requested that that the County of Monterey, being
represented on the Governance Committee participate in the financial contributions for
the Authority budget.
The Authority has submitted requests for membership funding for Fiscal years, 2012-13,
2013-14 and 2014-15. Contributions were budgeted for 2012-13 and 2014-15. The
County of Monterey payment for fair share contribution for Fiscal Year 2012-2013 was
received and a fair-share contribution request for the Fiscal Year 2013-2014 and for
Fiscal Year 2014-2015 have been made. Staff attended the Budget Committee meeting
on June 10, 2014 to answer questions about the current and next fiscal year fair-share
contribution requests and subsequently the contribution for Fiscal year 2014-15 has
been included within the County of Monterey budget and staff is confident that it can be
incorporated into our budgeted membership fees for FY 14-15.
Therefore, Staff is recommending that the Authority adopt the attached resolution
outlining the revised member city contribution percentages based on Cal Am rate
payers. The County of Monterey represents 34% of the rate payers and the resolution
adjusts the other members accordingly splitting the budget according to those
percentages.

EXHIBITS:

A- Draft Resolution Including Proposed Member City Distribution Percentatges for FY
2014-15
Agenda Report

Item No: 4.

FROM: Authority Clerk Milton

SUBJECT: Approval of Checks from May to July 2014 and Adoption of a Resolution
Approving the Final Budget Reconciliation for Fiscal Year 2013-14
RECOMMENDATION:
It is recommended that the Authority approve and file the accounts payable payments
made during the period of June 12, 2014 through August 14, 2014 with total payments
for the above referenced period of $17,835.82. It is also recommended that the
Authority Adopt a resolution amending the Fiscal Year 2013-14 Budget and authorizing
the remaining unspent funds to remain in fund balance for use during Fiscal year 2014-
15.
DISCUSSION:
At its meeting on September 12, 2013, the Authority Board approved a staff
recommendation to provide the Directors a listing of general checks issued since the last
report so that it can inspect and confirm these checks. 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.
$ 412.50 to Access Monterey Peninsula for Video Production Services
$ 1,558.33 to Environmental Relations for Public Outreach Services
$ 5,497.75 to Brownstein, Hyatt, Farber and Schreck for Special Legal Counsel
$ 5,000.00 to Perry and Freeman for Legal Services/Attorney of Record
$5,367.24 to City of Monterey for Reimbursement of Executive Director Services.

The bank balance as of August 14
th
, 2014 is sufficient cover the above checks and the
remaining fiscal years encumbrances therefore, staff is recommending approval of the
above checks.

Fiscal Year 2013-14 Revenues:
Revenues for the final balance of the Fiscal Year 2013-14 budget appear to be off due
to the approval of a contract for Value Engineering services, approved to be fully

reimbursable by Cal Am. Per the agreement, Cal Am was responsible to provide the
Authority up to $200,000 for the Value Engineering Study prior to the execution of the
contract. The funds were received after the close of the Fiscal Year and as previously
authorized, will be carried over into the Fiscal year 2014-15 Budget. Also, the
reimbursement from the County of Monterey for a portion of the SPI contract is still
outstanding to which the Executive Director attended and presented to the Monterey
County Budget Committee explaining the request for funds. The County of Monterey
has requested copies of the invoice on several occasions but the payment has not
materialized. It is anticipated that the funds will be received during the FY 14-15.
The County of Monterey payment for fair share contribution for Fiscal Year 2012-2013
was received and a fair-share contribution request for the Fiscal Year 2013-2014 and
for Fiscal Year 2014-2015 have been made. Staff attended the Budget Committee
meeting on June 10, 2014 to answer questions about the current and next fiscal year
fair-share contribution requests and subsequently the contribution for Fiscal year 2014-
15 has been included within the County of Monterey budget and staff is confident that it
can be incorporated into our budgeted membership fees for FY 14-15.

Expenses:
Staff and the Board remained fiscally conservative throughout the year and ended with
residual balances in all of the expenditure categories. Any remaining funding will be left
in fund balance for use as necessary during the next fiscal year and may work to offset
future member funding requests. A detailed report of the financial accounting will be
available once the Financial Audit is completed by October 2014.

Staff is recommending that the Authority approve and file the above checks and adopt
the attached resolution amending the Fiscal Year 2013-14 budget and authorizing the
remaining unspent funds to remain in fund balance for use during Fiscal year 2014-15.

ATTACHMENTS:
Budget to Actual Report through June 30, 2014
Resolution amending the Fiscal Year 2013-14 budget and authorizing unspent
funds to stay in Fund Balance.
11:34 AM
08/05/14
Accrual Basis
Profit & Loss Budget vs. Actual
July 2013 through June 2014
Budget Acutal Difference
Ordinary Income/Expense
Income
47200 Program Income
47230 Membership Dues 424,562.00 424,562.00 0.00
47250 Reimbursement SPI Contract 18,562.00 9,281.00 -9,281.00
47260 Reimburesment VE Contract 200,000.00 0.00 -200,000.00
Total 47200 Program Income 643,124.00 433,843.00 -209,281.00
Total Income 643,124.00 433,843.00 -209,281.00
Expense
60900 Administration and Clerical
60901 Clerk of the Board 35,000.00 35,000.00 0.00
60902 Executive Director 90,680.00 59,141.16 -31,538.84
Total 60900 Administration and Clerical 125,680.00 94,141.16 -31,538.84
62100 Legal Fees
62110 Board Counsel 59,000.00 27,000.00 -32,000.00
62140 Special Counsel 186,000.00 142,184.75 -43,815.25
Total 62100 Legal Fees 245,000.00 169,184.75 -75,815.25
62800 Contract Services
60801 Public Outreach 15,000.00 8,509.19 -6,490.81
60806 Contract VE 200,000.00 0.00 -200,000.00
62802 Audit Services 6,700.00 6,700.00 0.00
62803 Televised Meeting 10,000.00 5,100.00 -4,900.00
62804 Contract Services & Studies 3,000.00 0.00 -3,000.00
62805 Contract SPI 35,000.00 27,843.43 -7,156.57 62805 Contract SPI 35,000.00 27,843.43 -7,156.57
Total 62800 Contract Services 269,700.00 48,152.62 -221,547.38
65000 Insurance 7,000.00 6,701.88 -298.12
65100 Travel Expenses 1,000.00 828.74 -171.26
68300 Contingency 2,000.00 734.78 -1,265.22
Total Expense 650,380.00 319,743.93 -330,636.07
Net Ordinary Income -7,256.00 114,099.07 121,355.07
Net Income -7,256.00 114,099.07 121,355.07
Page 4 of 4
Table 1
Budget FY 2013-14
Adopted
Budget
13-14
Amended
Budget
13-14
Legal Counsel $63,000 $59,000
Attorney of Record $100,000 $186,000
Staff $35,000 $35,000
Executive Director $94,680 $90,680
$10,000 $3,000
$20,000 $35,000
Contract Assistance $15,000 $200,000
Travel $5,000 $1,000
Public Outreach $49,000 $25,000
$7,000 $7,000
$5,000 $6,700
$20,000 $2,000
Total Budget FY 13-14 $423,680 $650,380
Contingency
Professional Services
Studies
Project Evaluation
Insurance
Audit
Table 2
Statement of Net Position 2013-14 Amended Funds Funds 2014-15
Budgeted Budget Received Outstanding DRAFT
OPERATINGEXPENSES
Carryover from FY 2012-2013 $7,268 $7,268 $0
County Contrib from FY 2012-2013 $83,300 $0 $83,300 $0
Membership Fees $341,263 $341,263 $341,263 $458,680
Reimbursments for SPI Contract $18,562 $0 $18,562 $0
Reimbursement for VE Contract $200,000 $200,000 $0
TotalOperatingRevenue $341,263 $650,393 $348,531 $301,862 $458,680
OPERATINGREVENUES Budgeted
Amended
Budget
Expended/
Encumbere
dthru
6/30/14
Budget
Remaining
Draft
Budget
20142015
Administration and Clerical
Principal Office of the Authority $0 $0 $0 $0 $5,000
Clerk of the Board $35,000 $35,000 $35,000 $0 $24,000
Financial Services $0 $0 $0 $0 $6,000
Executive Director $94,680 $90,680 $90,044 $636 $94,680
Misc Admin Expenses $0 $0 $0 $500
Legal Services
Board Counsel $63,000 $59,000 $27,000 $32,000 $63,000
Special Counsel $100,000 $186,000 $186,000 $0 $152,000
Contract Services
Public Outreach $35,000 $15,000 $15,000 $0 $35,000
Audit Services $5,000 $6,700 $6,700 $0 $6,000
Televised Meetings $14,000 $10,000 $4,663 $5,338 $10,000
Contract Services & Studies $25,000 $3,000 $0 $3,000 $30,000
Contract SPI $20,000 $35,000 $34,610 $390 $0
Contract VE $0 $200,000 $200,000 $0 $0
Insurance $7,000 $7,000 $6,702 $298 $7,500
Travel Expenses $5,000 $1,000 $0 $1,000 $5,000
Contingency $20,000 $2,000 $1,657 $343 $20,000
TOTALOPERATINGEXPENSES $423,680 $650,380 $607,376 $43,005 $458,680
Table 3
Member City
Approved %
Distribution
Total
Contributions
FY 2014-15
Total
Contributions
FY 2013-14
Carmel By the Sea 9.30% $42,657 $31,771
Sand City 1.30% $5,963 $4,441
City of Pacific Grove 18.80% $86,232 $64,225
City of Seaside 22.00% $100,910 $75,157
City of Monterey 46.50% $213,286 $158,855
City of Del Rey Oaks 2.10% $9,632 $7,174
Total Income 100.00% $458,680 $341,263
* Contributions were lower in FY 13-14 due to carry over balance of $82,417
Member City Contributions
Agenda Report

Item No: 5.

06/12
FROM: Executive Director Cullem

SUBJECT: Receive report, discuss, and provide direction with regards to expected
changes to the California Public Utilities Commission(CPUC) schedule for
the Monterey Peninsula Water Supply Project (MPWSP).

RECOMMENDATION:

It is recommended that the Water Authority Board receive a report on expected changes
in the CPUC schedule resulting from delays in the completion of the draft EIR (DEIR),
determine if any action is required at this time, and provide direction to staff.

DISCUSSION:

The latest CPUC schedule as revised July 3, 2014 is attached. That schedule indicated
that a number of legal filings and DEIR comments were to be completed between the
DEIR circulation in 3rd quarter 2014 (not later than Sept 30) and the Administrative Law
Judge (ALJ) hearings in December 2014.

However, on August 8, we received a telephonic notification from the CPUC consultant
preparing the EIR that the DEIR has been delayed several months and the ALJ hearing
in December is likely to be delayed as well, possibly as long a 3 months.

As of August 11, we have not received official notice of a hearing delay. None-the-less,
staff recommends the Authority Board accept the likelihood of a delay, consider its
implications, and provide staff direction accordingly.

EXHIBIT:

A-CPUC schedule as revised on July 3, 2014

Agenda Report

Item No: 6.

06/12

SUBJECT: Receive report, discuss, and provide direction with regards to the current
status of the source water negotiations for the Monterey Regional Water
Pollution Control Agency (MRWPCA) Ground Water Replenishment
(GWR) Project.

RECOMMENDATION:

It is recommended that the Water Authority Board receive a report on the current status
of negotiations on source water for the MRWPCA Pure Water Monterey (PWM) /
Ground Water Replenishment (GWR )project, determine if any action is required at this
time, and provide direction to staff.

DISCUSSION:

The latest GWR schedule as revised June 12, 2014 by the Monterey Regional Water
Pollution Control Agency (MRWPCA) is attached. A MOU for GWR source water was to
have been completed by June 30, 2014. On July 10th, the Water Authority Board
extended the deadline to July 31 to allow more time for negotiations between the
MRWPCA and Salinas Valley agricultural representatives. Unfortunately, as of August
8th, an MOU on source water has not been reached.

As shown on the attached schedule, the completion date of the draft water purchase
agreement (WPA) is critical, and is dependent on the MOU. The Monterey Peninsula
Water Management District (MPWMD) will need enough time to complete follow-on
studies required by the settlement agreements prior to the CPUC hearings that had
been scheduled for December 2014.

Although the deadline for the draft WPA is currently August 2014, as discussed in an
earlier agenda item the CPUC hearing scheduled for December 2014 is likely to be
delayed as a result of problems by the CPUC consultant in completing the EIR.

Dave Stoldt, General Manager of the MPWMD, will present the latest information on
that subject at today's meeting. Depending on information provided, some of the options
available to the Water Authority include:

1. Determine that GWR will not be available in time for inclusion in the Peninsula
supply portfolio and decide in favor of the 9.6 mgd desal facility.

2. Agendize a decision on removal or retention of GWR for the September 11
meeting, or at a special meeting to be announced.
3. Authorize an extension of the deadlines for the GWR MOU and WPA on the
assumption that the December 2014 CPUC hearing will be delayed.
4. Request the source water issue go to arbitration immediately as is permitted by
current agreements.
5. Take no action.

EXHIBIT:

A-GWR schedule as revised on June12, 2014

October 7, 2013
015621\0002\11340073.1
8/11/14
Revised Schedule and Task List for MPWSP Post Settlement (REV 12 JUNE 2014)
Italics are changes. Red are actions past due. Yellow are near term.
CPUC Calendar Dates
Task Due Date Responsible Party Notes
Comments on
Settlement Agreements
Due
August 30, 2013 Complete
Reply Comments on
Settlement Agreements
Due
September 13, 2013 Complete
Prehearing
Conference: Status of
Settlement Motion (if
any), of CEQA work
& other matters
September 16, 2013 Complete
Quarterly Check-in Call
with Settling Parties
October 2013 MPRWA In Progress
Informational Hearing
on Settlement
Agreements
December 2-3, 2013
January 2014 MPRWA
DEIR circulated for
Comment
3
rd
Qtr 2014 DEIR out in June 2014
April 2014 MPRWA
Cal-Am to file and serve
a common outline for
legal and policy briefs,
after consulting with
parties
15 days after issuance
of DEIR

Comments on DEIR
Due
of DEIR
DEIR to be published 1
st

Qtr 2015
Common Outline
Opening Briefs filed and
served on legal and
policy issues

60 Days after Issuance
of DEIR
15 days after Issuance
DEIR- Cal Am to
file/serve common
outline for legal & policy
briefs
Reply Briefs filed and
served on legal and
policy issues
of DEIR

FEIR published 1
st
Qtr 2015

Proposed
Decision addressing
certification of FEIR and
issuance of CPCN
1
st
Qtr 2015
July 2014 MPRWA
Target for Commission
Action on Phase I
1
st
Qtr 2015
Quarterly Check-in Call October 2014 MPRWA
October 7, 2013
015621\0002\11340073.1
8/11/14
January 2015 MPRWA

October 7, 2013
015621\0002\11340073.1
8/11/14

GWR
File Motion for
Bifurcation of the
GWR Decision
August 2013 MRWPCA Complete and Granted
Board Actions to
Approve Revised
Agreement
October 2013
August/Sept 2013
MPWMD, MPRWA,
County, & Cal-Am
To be Completed in
October
Executed Agreements
for GWR Source Water
and/or Declaratory
Relief

June 23, 2014

MRWPCA Meet & Confer in
Progress

Draft WPA
Mar 2014

MPWMD & MRWPCA
Obtain Representations
from DPH re Use of
Extracted GWR Water

Oct 2014

MRWPCA
Obtain Representations
from RWQCB re Use of
Extracted GWR Water

Oct 2014

MRWPCA
Storage Agreement
with Seaside Basin
Watermaster

Jul 2014

MRWPCA & MPWMD
GWR Basis of Design
Complete with At Least
10% Design

Jul 2014

MRWPCA
GWR Financing Plan
Sufficient for SRF
Funding

Aug 2014

MRWPCA & MPWMD
Agreement on Terms of
WPA

May 2014

Cal-Am, MRWPCA,
&MPWMD

Perform Revenue
Requirement Analysis
Including Any Debt
Equivalency Effect

Jul 2014

MRWPCA & MPWMD
Perform Assessment of
GWR Positive and
Negative Externalities
for Any Premium
Showing
June 2014

MRWPCA & MPWMD
DEIR Circulated July 2014 MRWPCA
Dilution Water
Requirements
July-October 2014 MRWPCA
Project Approved and
FEIR
October 2014 MRWPCA
All Permits for GWR
Construction Obtained

???
MRWPCA
October 7, 2013
015621\0002\11340073.1
8/11/14
January 2015
October 7, 2013
015621\0002\11340073.1
8/11/14

Source Wells

Drill Exploratory
Boreholes
Sept. 2013 February
2014
Cal-Am PENDING
Commence
Hydrogeologic Study
and Technical Report
August 2013 Cal-Am / SVWC Draft completed. ?
Permits for CEMEX
Site Test Well
January 2014
Aug 2014
Cal-Am MND circulated in May
2014
Drill CEMEX Site Test
Well
February 2014
Nov 2014
Cal-Am DELAYED
Results of Test Well
Operation Obtained
February 2014
February 2016
Cal-Am DELAYED
Hydrogeologic Study
and Technical Report
Complete and Results
Filed with CPUC

June 2015
Cal-Am DELAYED
Necessary Agreements
from CEMEX for
Source Wells
Nov. 2015, or sooner Cal-Am ?
All Necessary Permits
for Construction of
Source Wells Obtained
Nov. 2015, or sooner Cal-Am ?
October 7, 2013
015621\0002\11340073.1
8/11/14

Securitization
Initial Revision and
Redline of Legislation
Early September 2013 MPWMD Complete
October 7, 2013
015621\0002\11340073.1
8/11/14
Obtain Cal-Am Input on
Draft Legislation
Late September 2013 MPWMD, MPRWA, &
Cal-Am
Complete
Retain Necessary
Additional
Financial/Legal
Consultants (Charles
Atkins)
October 2013

MPWMD In Progress
Revise Financial
Comparison of
Securitization v. Cal-Am
Financing
October 2013 MPWMD & Cal-Am In Progress
Meeting with
Community/Interest
Groups and Cities
October-December
2013
MPWMD & MPRWA In Progress
Further Revise
Legislation as
Necessary
October-November
2013
In Progress
Draft Summary of
Legislation
December 2013 MPWMD Complete
Introduce Legislation January 2014 Complete
Lobbying Effort February-April 2014 MPWMD, MPRWA, &
Cal-Am
In Progress
Legislation Adopted April-May 2014
?
Passed Senate
Unanimously; Referred
to Assembly
Initial Draft of Motion for
Financing Order
April 2014
?
MPWMD
Perform Analysis to
Demonstrate Annual
Customer Benefits
Exceed 1.0% of Total
Annual Revenue
Requirement
April 2014
?
MPWMD & Cal-Am
Motion for Financing
Order
May 2014
?
MPWMD
Obtain CPUC Financing Order on securitization
October 7, 2013
015621\0002\11340073.1
8/11/14

Order ? financing on satisfaction
of remaining criteria
from Settlement K
Preliminary Discussions
with Bond Underwriters
September-December
2014
MPWMD
Drafting of
documentation for bond
requests
September 2014-April
2015
MPWMD & Cal-Am
Preliminary Discussions
with Rating Agencies
February-April 2015 MPWMD
Agenda Report

Item No: 7.

06/12

SUBJECT: Receive report, discuss, and vote on staff proposal to add the General
Manager, or District Engineer, of the Marina Coast Water District
(MCWD) as a member of the Authority Technical Advisory Committee
(TAC) and to add a MCWD hydrologist to the Monterey Peninsula Water
Supply Project (MPWSP) Hydrogeologic Working Group.

RECOMMENDATION:

Staff recommends that the Water Authority invite Marina Coast Water District (MCWD)
participation on the Technical Advisory Committee (TAC) and on the test slant well
Hydrogeologic Working Group (HWG).

DISCUSSION:

During January and July 2014, the City of Marina has been heavily involved in the
permitting of the bore hole construction and in consideration of a mitigated negative
declaration (MND) and coastal development permit (DP) for Cal Am's test slant well at
the CEMEX site.

During public hearings, the Marina Coast Water District (MCWD) raised a number of
concerns that suggest a lack of communication between MCWD and Cal Am, and with
the Water Authority as well. This situation has not only delayed progress on the desal
plant approval and construction, but has raised serious concerns on the part of the
MCWD and City of Marina that its water needs may be placed at risk as a result of the
desal plant slant wells.

To initiate a dialog on these issues, several informal MCWD/MPRWA management
level meetings were held during the week of August 4. Amongst other things, it was
concluded that participation by MCWD representatives in the TAC and in the HWG
would provide early MCWD input on technical issues related to the Desal facility and the
slant wells, facilitate MCWD environmental review of the MPWSP EIR, insure the
concerns of Marina residents get timely consideration, and improve communication
between and amongst MCWD, Cal Am, and the Water Authority.

It should be noted that the TAC already has a member from the agricultural community
to articulate ag interests prior to Water Authority decisions and deliberations. Thus, the
Executive Director recommends the Authority extend an invitation to the MCWD District
Engineer (Interim General Manager) to join the TAC for the same purpose.

Agenda Report

Item No: 8.

06/12

SUBJECT: Receive report, discuss, and provide direction on the Value Engineering
(VE) Final Report for the Cal Am Desal facility, authorize forwarding of the
VE report to the Governance Committee for its action, and
authorize payment to the consultant (VMS) from funding provided by Cal
Am, not to-exceed the contract price of $109,035.70

RECOMMENDATION:
It is recommended that the Monterey Peninsula Regional Water Authority receive a
report on the Final Value Engineering ( VE) Study of the Monterey Peninsula Water
Supply Project (MPWSP), make recommendations, forward the report to the
Governance Committee for its action, and authorize contract closure and payment to
the consultant (VMS).

DISCUSSION:
The draft preliminary Value Engineering (VE) Study for 30% design of the desal facility
was briefed to a joint meeting of the Governance Committee and the MPRWA at a
special meeting on July 10 and to the TAC on Aug 4. The Final report is now complete
and the full text is available on the Water Authority web site http://www.mprwa.org/wp-
content/uploads/2012/03/MPWSP-Final-VE-Report.pdf and on the Cal Am MPWSP
project web site www.watersupplyproject.org .
It should be noted that the VE study focuses on value improvements, in particular
potential cost savings. Requirements mandated by the settlement agreements, as well
as directions from the Governance Committee on environmental and aesthetic issues,
should still be incorporated into the design.
Following review and comment by the MPRWA, the Final Report will be forwarded to
the Governance Committee for action in accordance with the Governance Agreement.
BUDGET CONSIDERATIONS:
The Water Authority awarded the VE contract on behalf of the Governance Committee
to VMS on June 12, 2014 at a price not-to-exceed $109,35.70. It also approved a
contingency of not-to-exceed $11,000.00. The contract was fully paid for by Cal Am.
The contract work is now complete and it has not been necessary to utilize the

contingency funds. Thus, the contractor can be paid and the contract closed. Any
unused funds remaining in the deposit account will be returned to Cal Am.

EXHIBITS:
A-Executive Summary of the VE Study

EXECUTIVESUMMARY
MontereyPeninsulaWaterSupplyProjectDesalinationPlant ExecutiveSummary
EXECUTIVESUMMARY FINALREPORT
AValueEngineering(VE)study,sponsoredbytheMontereyPeninsulaRegionalWaterAuthorityand
facilitatedbyValueManagementStrategies,Inc.,wasconductedfortheDesalinationPlantportionof
theMontereyPeninsulaWaterSupplyProject.ThestudywasconductedattheofficesofCalifornia
AmericanWaterinMonterey,CaliforniaJuly7through11,2014.ThisExecutiveSummaryprovidesan
overviewofthesubjectproject,summaryresultsoftheVEteamsanalysis,andthealternatives
developedbytheVEteam.
PROJECTSUMMARY
LedbyCaliforniaAmericanWaterCompany(CAW),theMontereyPeninsulaWaterSupplyProject
(MPWSP)isacomplex,multicomponentprogramthatisnecessarytoreplacealargepercentageof
thelocaldrinkingwatersupplythatcurrentlyoriginatesfromtheCarmelRiver.StateWater
ResourcesControlBoard(SWRCB)Order9510requiresCAWtoreducediversionsfromtheCarmel
Riverbyapproximately70%nolaterthanDecember31,2016.
InordertomeetthecutbackrequirementsandprovideadequatewatertotheMontereyPeninsula
communities,CAWplansincludethreeprojectstoaddressthisregionalwatercrisis:
DesalinationofseawaterfromwellsdrawingwaterfromMontereyBay
GroundwaterReplenishment(GWR)withadvancedtreatmentofwastewaterbytheMonterey
RegionalWaterPollutionControlAuthorityPlant
AquiferStorageandRecovery(ASR)
ThisVEstudyfocusedsolelyonthedesalinationplantportionofthewatersupplyproject.
Treatmentatthedesalinationplantwillconsistofoxidationwithsodiumhypochlorite,granular
mediafiltration,dechlorination,pHadjustmentwithsulfuricacid,cartridgefiltration,afirstpassof
seawaterreverseosmosis(SWRO),apartialsecondpassofbrackishwaterreverseosmosis(BWRO),
disinfectionwithultravioletlight,poststabilizationtreatmentwithcarbondioxideandhydratedlime,
pHadjustmentwithsodiumhydroxide,additionofanorthophosphatecorrosioninhibitorandpost
chlorinationwithsodiumhypochlorite.
CDMSmithwasselectedastheconsultantforthedesalinationplantdesignbuildproject.Theirwork
willincludethedesign,constructionandcommissioningoftheproposedseawaterdesalinationplant.
Theplannedfacilitiesincludethetreatmentplant,treatedwaterstorageandpumping,and
concentratestorageanddisposalfacilities.
Constructioncostsforallelementsofthedesalinationplantarecurrentlyestimatedat$74,029,943.
PROJECTPURPOSEANDNEED
TheprimarypurposeoftheoverallMPWSPistoreplaceexistingwatersuppliesthathavebeen
constrainedbylegaldecisionsaffectingtheCarmelRiverandSeasideGroundwaterBasinwater
- 1 -
resources.ThepurposeofthedesalinationplantportionoftheMPWSPistotreatthewatersupplied
bytheseawaterintakewellssufficienttomeettheapplicablewaterqualitystandards.
VESTUDYBASIS
TheVEstudywasbasedonthe30%DesignSubmittaldocumentspreparedbytheprojectsdesign
buildcontractor,CDMSmith,datedJune,2014.
VESTUDYOBJECTIVES
TheVEteamwastaskedwithexploringideastoimproveprojectvalueby:
Reducingprojectcostwithoutsacrificingfunctionality
Identifyingopportunitiestoimprovethedesalinationplantsoperationsandreliability
Identifyingrecommendationsforreducinglongtermoperationalcosts
Improvingtheoverallmaintainabilityofthefacility
EVALUATIONOFBASELINECONCEPT
ThefirstdayoftheVEstudyincludedmeetingswithCDMSmithand
otherprojectstakeholderrepresentatives.DuringtheVEteamsanalysis
ofthebaselineconcept,anumberofanalyticaltoolsandtechniques
wereusedtodevelopathoroughunderstandingofthefunctional
requirementsoftheprojectandhowwellthebaselineconceptwas
performingthefunctions.Amajorcomponentofthisanalysiswasthe
useofValueMetrics,whichseekstoassesstheelementsofcost,
performance,time,andriskastheyrelatetoprojectvalue.These
elementsrequiredadeeperlevelofanalysis,theresultsofwhichare
detailedintheProjectAnalysissectionofthisreport.Thekey
performanceattributesidentifiedfortheprojectarelistedinthetable
ontheright,PerformanceAttributes.
BelowisasummaryofthemajorobservationsandconclusionsidentifiedduringtheVEteamsinitial
analysisofthebaselineconceptwhichledtheVEteamtoidentifythealternativesresultingfromthis
studyandpresentedherein.
Buildingsarelocatedontheareaofthesitemostpronetosettlementduringaseismicevent.
Theprojectisassumingdeepdynamicsoilcompactiontoaddresscollapsiblesoils.
UVtreatmentappearstobeincludedtoaddresstemporaryuncertaintyregardingtreatment
processandconcernswithobtainingsufficientlogremovalforpathogenremoval.
Thecurrentdesignincludesdirectfeedfromintakestopressurefilterswhichcouldresultin
sandanddepositscloggingthesystem.
Thebaselineconceptassumesaportionoftheintakewatermustbereturnedaftertreatment
toagricultureproperties.
PerformanceAttributes
Maintainability
PlantOperations
FutureFlexibility
EnvironmentalImpacts
Sustainability
Aesthetics
- 2 -
TheprojectwillusegranularpressurefiltersforpretreatmentofseawaterpriortotheRO
membranestoremoveironandmanganese.
Thecurrentdesignisprovidingstoragetanksforfilteredwaterinordertomaintainconstant
pumpheadthroughtheROprocess.
Theprojectassumesabrinedisposalbasinwillbenecessarywhenwastewatertreatment
plant(WWTP)dischargeoutfallisnotavailable.
Thedesalinationplantmayhaveanissueremovinglargeequipmentformaintenancerelative
toaccessandequipmenttransport.
Thecurrentdesignshowspumpsinchemicalstoragesumps.Itisnotfullyunderstoodwhere
thepumpsdischarge.
Theprojectiscurrentlyplanningforrigorousacceptancetestproceduresandrequirements.
Theinstallationofpreengineeredmetalbuildingswillrequiretreatmenttopreventcorrosion
andwillrequiremaintenanceoverthelifeofthefacility.
Thecurrentprocessdesignisrecapturing45%ofthefirstpasstreatmentwaterand90%of
thesecondpasstreatmentwater(averageof43%totalrecoveryfortheplant).
Additionally,sustainabilityevaluationswereconductedtoassessthebaselineconceptagainstthe
sustainabilityrequirementsofboththeU.S.GreenBuildingCouncil(LEED)andtheInstitutefor
SustainableInfrastructure(Envision).TheresultingsustainabilityassessmentisincludedintheProject
Analysissectionofthisreport.
RISKANALYSIS
AqualitativeriskanalysiswasperformedinconjunctionwiththeVEstudytoidentifyrisksrelatedto
projectcost,time(schedule),andabilitytoperformitsrequiredfunctions.TheVEteamalso
discussedandidentifiedpossibleriskmitigationstrategiesinanefforttoreducetheoverallrisk
profileoftheproject.RiskRegistersweredevelopedfortheprojectandareprovidedintheProject
Analysissectionofthisreport.TheseRiskRegistersprovidealloftheinformationforeachrisk
includingdescriptions,probabilities,impactsandpotentialriskresponsestrategies.
Thefollowingarethekeylessonslearnedidentifiedasaresultoftheriskanalysisexercise:
Thereiscurrentlynorawwaterqualitydataavailable.Waterqualitymayimpactthe
assumptionsrelativetotheplantstreatmentprocessesandcapacities.
Plantcapacityrequirementsaredependentontheimplementationandsuccessofthe
groundwaterreplenishmentprojectwhichiscurrentlybeingdeveloped.
Approvaloftheenvironmentaldocumentsandregulatorypermitsmayrequirerevisionsto
theprojectdesign.
- 3 -
Amajorityoftherisksidentifiedarebeingactivelymonitoredandmanagedbytheprojectdesign
teamandprojectmanagementteams.KeyriskmitigationstrategiesidentifiedbytheVEteam
includedmembranepretreatmenttomitigatetheriskassociatedwithunknownsourcewaterquality,
andrevisingtheconstructionscheduletoallowtherespectivefeaturestimetoberevisedwhen
informationbecomesavailable.
VESTUDYRESULTS
TheVEteamidentified33VEAlternativesand13DesignCommentstosupportoverallprojectvalue.
TheVEAlternativesareorganizedbytheprimarytopicorprojectaspecttowhichtheyrefer:
BuildingDesignandSiteAlternatives
WaterTreatmentEquipmentandEquipmentLayoutAlternatives
MaintainabilityAlternatives
RiskMitigationandScheduleAlternatives
TreatmentProcessAlternatives
Ofthesealternatives,16wereselectedandrecommendedbytheVEteamasacumulatively
implementablealternativestrategyfocusedonenhancingoverallvaluepotentialfortheproject.The
alternativeshavebeensummarizedinthefollowingsectionofthisreport.Thetotalnetpotential
costsavingsoftheVEStrategyisapproximately$9millionininitialcostsavingsand$23millioninlife
cyclecostsavings.Itshouldbenotedthatanumberofthesealternativeswouldincreasetheinitial
projectcosts;however,theyinturnprovidebenefitstoprojectperformanceorinthereductionof
maintenanceandenergyusage.
ToevaluatetheperformanceoftheVEStrategy,theVEteamconsideredthecombinedeffectofall
VEalternatives.Thetotalperformancescoresreflecttheperformanceratingforeachattribute
multipliedbyitsoverallpriority(weight)expressedusingaratioscale.Thefollowingchartcompares
thetotalperformancescoresforthebaselineconceptandtheEnhancedValueVEStrategy.
ComparisonofPerformance
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0
EnhancedValueCombination
BaselineConcept
Maintainability PlantOperations FutureFlexibility
EnvironmentalImpacts Sustainability Aesthetics
- 4 -
ThetablebelowsummarizesthesavingsassociatedwiththeEnhancedValueStrategy.The
performancescoresweredividedbythetotalcostscoresforthestrategytoderiveavalueindex.The
valueindexfortheVEStrategywasthencomparedagainstthevalueindexofthebaselineconcept
andthedifferenceisexpressedasapercentchange.
SummaryofVEStrategy
StrategyDescription InitialCostSavings
LCC
Savings
Performance
Change
Value
Change
EnhancedValueCombination $9,161,000 $23,204,000 +13% +29%
TheComparisonofValuechartbelowsummarizesthetotalimpacttoprojectvalueresultingfromthe
VEStudy.Thebluebarsrepresenttotalprojectperformanceandthegreenbarsrepresenttotalcost.
DetailsandadditionalanalysisofthebaselineconceptandVEStrategyperformanceratingsare
includedintheProjectAnalysissectionofthisreport.
ComparisonofValueBaselineConceptandVEStrategy
VEALTERNATIVEIMPLEMENTATION
VEstudiesareworkingsessionswiththepurposeofidentifyinganddevelopingalternative
approachestoagivenproject,thenpresentingthemtoallprojectstakeholdersforconsideration.
DuringtheVEStudy,aSpecialJointMeetingoftheMontereyPeninsulaWaterSupplyProject
GovernanceCommitteeandMontereyPeninsulaRegionalWaterAuthoritywasheldtopresentand
discussthepreliminaryresultsoftheVEStudy.Themeetingwasopentothepublicandattendees
hadtheopportunitytoquestionandcommentontheVEstudyresults.
0%
29%
0%
5%
10%
15%
20%
25%
30%
35%
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
Baseline EnhancedValue
C
h
a
n
g
e
i
n
V
a
l
u
e
R
e
l
a
t
i
v
e
S
c
o
r
e
s
Performance Cost/TimeRating ChangeinValue
- 5 -
Detailedfeasibilityassessment,determinationoftheVEalternativesimplementation,andfinal
designdevelopmentwillbemadefollowingsubmittalofthisFinalVEStudyReport.
VETEAM
ParticipantsontheVEteamincludedindependenttechnicalexpertsfromHDREngineering,Inc.and
WaterGloberepresentingArchitecture,PlantOperations/Maintenance,Sustainability(LEEDand
Envision),Civil/StructuralEngineering,Electrical/Instrumentation&Controls,andWaterTreatment
Processes.RepresentativesfromCaliforniaAmericanWateralsoparticipatedtoprovideinsightinto
theirPlantOperationsandMaintenanceproceduresaswellastheirengineeringstandardsand
requirementsfortheproject.ThepublicinterestswererepresentedbyMontereyPeninsulaRegional
WaterAuthorityandMontereyPeninsulaWaterManagementDistrict.Afulllistofparticipantsinthe
VEstudyisincludedfollowingtheValueEngineeringProcesssectionofthisreport.
- 6 -
Agenda Report

Item No: 9.

06/12

SUBJECT: Receive report, discuss, and provide direction on the power purchase
agreement between Cal Am and the Monterey Regional Waste
Management District (MRWMD).

RECOMMENDATION:

It is recommended that the Water Authority Board receive a report on the status of
negotiations between Cal Am and the Monterey Regional Waste Management District
(MRWMD) for renewable electrical power for the Desalination (Desal) facility.

DISCUSSION:

With support from the Water Authority, Cal Am and the staff of the MRWMD have
diligently worked on a term sheet and power purchase agreement to allow Cal Am to
acquire between 3.5 and 4.5 megawatts of renewable electrical power for the Desal
facility from the landfill. An electrical power study, funded by Cal Am, determined how
best to provide power "over the fence" and what equipment would be required.

The power purchase agreement that the MRWMD currently has with PG&E expires his
fall, and the District needs to obtain new customers for that power now. Unfortunately,
the current schedule for a CPCN decision by the CPUC prevents Cal Am from entering
into a purchase agreement at this time.

However, an agreement was reached by which MRWMD will seek short-term (3-5 year)
customers for its power allowing Cal Am to be considered as a longer term customer in
the 2017-2019 time frame. That will provide sufficient time for the Desal permitting
process to be completed, the CPCN issued, and for construction to advance far enough
along for Cal Am to be able to enter into a power purchase agreement and actually
utilize the renewable power. The attached staff report to the MRWMD board seeking
approval to advertise for power sales provides a good summary of the situation.

EXHIBIT:

A-MRWMD Staff Report on RFP for Renewable Power dated July 11, 2014

neral Manager
Memorandum
DATE:
TO:
FROM:
SUBJECT:
Reviewed by:
July 11, 2014
General Manager
Assistant General Manager
Issuance of a Request for Proposals for the Sale of Renewable Power
RECOMMENDATION: That the Board authorize issuance of a Request for Proposals for the sale of 8.2
megawatts of Renewable Power generated from the Landfill Gas to Energy Facility.
BACKGROUND
The District presently produces bundled renewable electricity and renewable energy credits (RECs) from the 5-
megawatt (MW) Landfill Gas (LFG) Power Plant located on site in Marina, CA. The current Power Sales
Agreement (PSA) for this is set to expire on February 28, 2015. In a parallel effort, the District is the process
of obtaining a new interconnection agreement with local utility PG&E for the ability to produce an additional up
to 3.2 MWs of LFG power in subsequent years. This would bring the District's total LFG power production up
to 8.2 MWs in future years. In order to finalize this new interconnection agreement, the District must make a
decision regarding anticipated power sale strategy for this new generation by September 2014.
DISCUSSION
District consultant Brennen Jensen has been working with staff to explore options for sale of the District's
renewable power produced from LFG, to include the existing 5 MWs (minus what the District uses on-site) plus
an additional 3.2 MW of new power to be produced from LFG. The District's current PSA (for 5 MWs) expires
early in 2015. The additional 3.2 MWs is anticipated to be phased in over time in two subsequent phases, based
on actual availability of LFG following the full installation of the permanent flare already underway. The first
phase anticipates the installation of 1.6 MWs within 18-24 months. The second phase anticipates an additional
1.6 MW within five years. At this time, the District is exploring options for a multi-year agreement for the sale
of this power, associated Renewable Energy Credits (RECs), and associated green attributes as summarized
below:
1. Marina LFG Facility (Up to 5 MWs, available beginning March 1, 2015)
o Bundled Renewable Electricity and Renewable Energy Credits (Bucket 1)
o Associated Green Attributes
2. Marina LFG Facility (Additional up to 3.2 MWs; installed in two phases, planned availability beginning in
2016)
14201 DEL MONTE BLVD
k BOX 1670 MARINA, CA 93933-1670 831/384-5313, FAX 831/384-3567 * www.mrwmd.org
PRINTED ON RECYCLED PAPER USING SOY-BASED INK
12
Issuance of RFP for Sale of LFG Renewable Energy
July 11, 2014
Page 2
One of the options for selling the District's power in the future, is to sell 5 MWs (more or less) "over the
fence" to the proposed CalAm Desalination Plant. On June 23', staff met with CalAm representative Ian
Crooks, and with Monterey Peninsula Regional Water Authority Executive Director Jim Cullem to allow each
to provide a status update. CalAm has continued interest to purchase the District's renewable power. Mr.
Crooks reported that their draft EIR will be released in August 2014, and final EIR approval is anticipated for
February 2015. CalAm would consider discussing a PPA in November or so of 2014 and could possibly
finalize a PPA by March 2015, if there are no delays in the EIR approval process. CalAm would not be
prepared to accept power from the District for at least three to five years, or more. This timing does not
integrate well with the District's need to respond to ongoing PG&E requirements to add additional generating
capacity and to replace the soon to expire PPA. The CalAm representative has indicated that CalAm is
supportive of this approach by the District and they plan to attend the Board meeting to voice that support.
Issuance of a RFP for the sale of 8.2 MWs of renewable power generated from the LFG to Energy Facility will
help to ascertain what opportunities are currently present within the marketplace for the existing and anticipated
LFG to energy power production, following the expiration of the current PSA.
FINANCIAL IMPACT
There is no financial impact to this request. Following the completion of the RFP process, staff will
recommend actions based on the responses provided. The RFP does not commit the District to entering into
any agreement with any responding party.
STRATEGIC PLAN
This item is in line with the Renewable Energy Production Policy within the strategic plan.
CONCLUSION
It is recommended that the Board authorize the issuance of a RFP for the sale of 8.2 MWs of renewable power
generated from the LFG to Energy Facility. Proposals will be due on August 15, 2014 and a staff report and
recommendation is anticipated for the August or September Board meeting.
o: \ If\ Ifg\ Ifg rfp board memo 714.docx
LFG PSA REP DRAFT
Monterey Regional Waste Management District
Request for Proposals for the Purchase of Renewable Electricity, Renewable Energy
Credits and Related Green Attributes at
(Marina, CA)
BACKGROUND
The Monterey Regional Waste Management District (District) is an award - winning 62- year - old
Special District and Joint Powers Authority (JPA), covering 853 square miles, representing eight member
agencies and comprising seventeen communities on the Monterey Peninsula from Moss Landing to Big
Sur. The District provides services to populations across the four counties of Monterey, Santa Cruz, San
Benito and Santa Clara. The District's mission is to provide the highest quality, cost- efficient, integrated
waste management services to the greater Monterey Peninsula, while preserving the environment and
protecting the public health through the reduction, reuse, recycling, and safe disposal of the region's
waste stream. The award winning agency has adopted and implemented a multitude of innovative and
integrated programs and policies over its extensive history, resulting in such prestigious recognitions as:
A Best Solid Waste System in North America by Solid Waste Association of North America
(SVVANA), 1998
Gold Excellence Award for Landfill Gas Utilization by SWANA, 2007
A pioneer in Landfill Gas (LFG) to Renewable Energy, the District established one of the first such plants
in the nation in 1983. For over 30 years, the District has practiced continued innovation in LFG capture
and beneficial utilization. The District currently generates 5MW of LFG renewable energy, and is in the
process of expanding the current plant to increase generation an additional 3.2 MW over the next several
years. The District further has a long- standing Renewable Energy Production Policy as a core objective
within their current strategic plan. As part of this continued commitment, the District also launched the
first in California dry fermentation anaerobic digester (AD) in 2013, using SmartFerm technology to
convert food scrap organics into Renewable Energy and high- quality soil amendment.
The District presently produces bundled renewable electricity and renewable energy credits (RECs) from
the 5MW LFG Power Plant located on site in Marina, CA. The current Power Sales Agreement for this
set to expire on February 28, 2015. The District is exploring options for a multi- year agreement for
the sale of the following products:
1. Marina LFG Facility (Up to 5MW, available beginning March 1, 2015)
Marina LFG Facility (Additional up to 3.2MW; installed in two phases, planned availability
beginning in 2016
The District is seeking Proposals for the purchase of any or all of these products for any duration of time.
Interested parties should express their interest including additional buyer requirements in their response.
Version: 7/11/14
LFG PSA RFP DRAFT
Responses that include creative options to maximize District revenue will also be considered. Reponses to
this Request for Proposals shall be used as the basis to enter into negotiations with selected respondents.
TENTATIVE SCHEDULE:
Supply Available:
Term of Agreement:
Product Available:
RFP Release Date
Proposals Due
Complete Proposal Review, Select Best Candidate(s), Begin Interviews
and/or Negotiations
Finalize Agreement(s) for Renewable Power Sales with selected
Candidate(s)
New PSA brought before MRWMD Board for final approval Jan 2015
Existing PSA Expires
New PSA Effective Date
LFG Renewable Energy
Reliable supplier of LFG renewable energy for over 30 years
Up to 8.2 MW-
5 MW, available immediately upon start date March 1, 2015;
Additional up to 3.2 MW available shortly thereafter in two phases:
(1.6 MW by 2016 + 1.6 MW anticipated circa 2020).
3-5 year term desirable, with option to extend (March 1-2015 to February
28, 2018/2020); Proposers may submit terms of any length as terms of
shorter or longer duration will be considered based on responses received.
Bundled Renewable Power & Renewable Energy Credits (Bucket 1) and
Associated Green Attributes
July 18, 2014
August 15, 2014
September 12, 2015
December 22, 2014
January 16(23), 2015
February 28, 2015
March 1, 2015
SUMMARY OF REQUEST:
Power:
Supplier:
Agreement Start Date: March 1, 2015
INTERESTED PARTIES
Interested parties should respond to this notice with a brief proposal providing the following minimum
information, including any additional buyer requirements:
1. Company Name and Primary Contact Information including: Name, Address, Phone, and Email.
2. Company Qualifications
3. Products of Interest
4. Desired Term
5. Breakdown Price Offering
6. Identify All Other Terms requested in PSA (Especially those which may affect Price Paid)
Version: 7111/14
LFG PSA REP DRAFT
7. Other Considerations, or Creative Offerings
SUBMISSION INSTRUCTIONS:
Proposals are due Friday August 15, 2014 @ 4pm PST. Proposals can be mailed, emailed or hand-
delivered.
Submit proposals to:
Mail Delivery:
Email Delivery:
Hand-Delivery:
Attn: Becky Aguilar, Administrative Support Supervisor
PO Box 1670
Marina, CA 93933
Please email submissions to both:
Becky Aguilar, Administrative Support Supervisor
baguilar@mrwmd.org
Tim Flanagan, Assistant General Manager
tflanagan@mrwmd.or2
Attn: Becky Aguilar, Administrative Support Supervisor
14201 Del Monte Blvd
Marina, CA 93933
[Note, site gates close at 4pm; proposals due by 4pm]
ADDITIONAL INFORMATION:
Additional facility information is available upon request. Please contact Brennen Jensen at
bjensen emergingecologies.com
or (831) 917-3720. Site visits can be arranged if requested.
Version: 7/1 1 /14
Agenda Report

Item No: 10.

06/12

SUBJECT: Receive report, discuss, and provide direction on the City of Marina test
slant well Coastal Development Permit (CDP) and the current schedule for
Coastal Commission CDP.

RECOMMENDATION:

Staff recommends that the Water Authority receive an update from Cal Am on the
Marina Mitigated Negative Declaration (MND) for the Test Slant Well and discuss the
approval process and schedule to be followed in obtaining a City of Marina CDP and a
Coastal Commission CDP. The Authority should also receive an update on the National
Ocean and Atmospheric Administration (NOAA) Monterey Bay National Marine
Sanctuary (MBNMS) Environmental Assessment (EA).

DISCUSSION:

The City of Marina Planning Commission considered the MND and Marina CDP at its
meeting of July 10, 2014 but was unable to come to a decision. Accordingly, Cal Am
appealed the failure to act to the Marina City Council. The Council is scheduled to hear
the appeal at a special meeting on August 26.

In parallel with the Marina processing, Monterey Bay National Marine Sanctuary
(MBNMS) has circulated its draft federal Environmental Assessment (EA). The
Executive Director commented to the MBNMS in favor of the EA on behalf of the Water
Authority.

To keep the schedule on track and to conduct as much work as possible concurrently,
Cal Am brought the Request for Proposal (RFP) for the test slant well construction to
the Governance Committee on July 16, 2014.

The current Marina schedule for approval and construction of the test well and for the
hearing at the Coastal Commission is at Exhibit A.

Cal Am has been requested to brief the Water Authority on the status of the schedule.

EXHIBITS:

A- Cal Am schedule for approval and construction of the test slant well
FULL SCALE EIR & CCC/LCP SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]
Exported on July 6, 2014 8:34:55 PM MST
CEMEX TEST WELL SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]
FULL SCALE PLANT & PIPELINES SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]
POTRERO CONTINGENCY PERMITTING SCHEDULE - [WORKING PRODUCT & SUBJECT TO CHANGE]

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Monterey Peninsula Regional Water Authority (MPRWA)

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