Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

REGULAR MEETING
7:00 PM, Thursday, December 10, 2015
Council Chamber
580 Pacific Street
Monterey, California

ROLL CALL
PLEDGE OF ALLEGIANCE
REPORTS FROM BOARD DIRECTORS AND STAFF
PUBLIC COMMENTS
PUBLIC COMMENTS allows you, the public, to speak for a maximum of three minutes on any
subject which is within the jurisdiction of the MPRWA and which is not on the agenda. Any person
or group desiring to bring an item to the attention of the Authority may do so by addressing the
Authority during Public Comments or by addressing a letter of explanation to: MPRWA, Attn:
Monterey City Clerk, 580 Pacific St, Monterey, CA 93940. The appropriate staff person will contact
the sender concerning the details.

CONSENT AGENDA
1.

Approve Minutes from August 13, 2015 - Milton -

2.

Approve Minutes from November 12, 2015 - Milton

3.

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

4.

Receive Report on the November 17, 2015 Update of the California Public Utilities
Commission (CPUC) Schedule for the Monterey Peninsula Water Supply Project - Cullem

5.

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

6.

Approve Extension of the Separation Processes Inc (SPI) Contract Until 30 June 2016 for
Additional Technical Support to the MPRWA and Authorize the Expenditure of Not-toExceed $10,000 from Reserve Funds - Cullem
AGENDA ITEMS

7.

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

Thursday, December 10, 2015

8.

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

9.

Receive an Update on the Summary Project Schedule for the Monterey Peninsula Water
Supply Project (MPWSP), including Award of Production Well and Conveyance System
Contracts and Status of Test Slant Well Operations and Results - Crooks

10.

Receive Report, Discuss, and Revise the Mission, Purpose, and Sunset of the Monterey
Peninsula Regional Water Authority - Cullem
ADJOURNMENT

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

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: December 10, 2015

Item No: 3.

Authority Clerk Milton

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

RECOMMENDATION:
It is recommended that the Authority approve and file the accounts payable payments
made during the period Through December 4, 2015 with total payments for the above
referenced period of $33,534.85 from the general fund account and authorize the
Directors to sign for such checks. These will be the final invoice payments for the FY
15-16 year.
DISCUSSION:
At its meeting on September 12, 2013, the Authority Board approved a staff
recommendation to provide the Directors a listing of financial obligations since the last
report for inspection and confirmation. Each invoiced expense has been reviewed and
approved by the Executive Director and Finance personnel prior to payment to insure that
it conforms to the approved budget.
The following checks are hereby submitted to the Authority for inspection and
confirmation.

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

$ 5,000 to Perry and Freeman

$ 300.00 to Access Monterey Peninsula

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

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: December 10, 2015

Item No: 4.

Executive Director Cullem

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

06/12

A.12-04-019 GW2/ ar9

ADOPTED SCHEDULE FOR

A.12-04-019
DATE
December 15, 2015
January 22, 2016
January to May 2016
[a]
March 22, 2016
April 14-15, 2016

PHASE 1
Supplemental testimony with
updated MPWSP costs
Supplemental testimony on
demand and supply, brine
discharge, and return water

Phase 2 settlement discussions

Concurrent rebuttal testimony

Concurrent rebuttal testimony

Evidentiary hearings on
Phase 1 updates

Evidentiary hearings for Phase 2

Opening Brief on Phase 2
Reply Brief on Phase 2
Motion for separate Phase 2 decision
If two decisions: Target for Phase 2
Proposed Decision
If two decisions: Target for
Commission action on Phase 2
decision

July 2016
August 2016

45 days after issuance

of DEIR/DEIS
15 days after close of
DEIR/ DEIS comment
period
30 days after close of
DEIR/DEIS comment
period
TBD

I BD

Testimony, including the WPA and

applicant's showing on the WPA

Phase 1 settlement discussions

May 2016
May 2016
(2 weeks following
opening brief)
Same date as Reply
Brief

TBD

PHASE 2

CPUC's issuance of combined

Draft EIR/EIS
Close of comment period on
DEIR/DEIS
Opening Legal and Policy Briefs

Reply Legal and Policy Brief

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

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

"TBD" is "to be determined."

Monterey Peninsula Regional Water Authority

Agenda Report

Date: December 10, 2015

Item No: 5.

FROM:

Executive Director Cullem

SUBJECT:

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

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

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

RESOLUTION NO. 15RESOLUTION OF THE MONTEREY PENINSULA REGIONAL WATER AUTHORITY

APPROVING AN AGREEMENT WITH THE CITY OF MONTEREY FOR PROVIDING
ADMINISTRATIVE, CLERK AND FINANICAL SERVICES

WHEREAS, the City of Monterey is a participating Member of the Monterey

Peninsula Regional Water Authority; and
WHEREAS, the Authority has deemed it to be more efficient to contract for
continuous administrative services rather than rotating between member cities; and
WHEREAS, the City of Monterey remains the Office of Record for the Authority
and had contracted to provide administrative and clerical services to the Authority from
2012 to 2013 including provision of the Clerk of the Board; and
WHEREAS, in September 2013 the City of Seaside agreed to subcontract with the
City of Monterey to provide administrative and Clerk support to the Authority, and as of
January 1, 2014 took over full financial services for the Authority, and
WHEREAS, a contract between Seaside and the Authority executed on October 1,
2014 to continue the provision of administrative, financial, and Clerk support, will terminate
on December 31, 2015, and
WHEREAS, the City of Monterey is willing to resume the contract to provide subject
services to the Authority from January 1, 2016 to June 30, 2016 at a fee of $15,000,
NOW THEREFORE BE IT RESOLVED, that the President is hereby authorized to
execute a contract between the Monterey Peninsula Regional Water Authority and the City
of Monterey to provide administrative, clerk and financial services, as outlined in Exhibit A,
for the period January 1, 2016 to June 30, 2016 for a fee of $15,000.
PASSED AND ADOPTED BY THE MONTEREY PENINSULA REGIONAL
WATER AUTHORITY this ___ day of ____ 201_, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:

DIRECTORS:
DIRECTORS:
DIRECTORS:
DIRECTORS:
APPROVED:

ATTEST:
Jason Burnett President

Clerk to the Authority

EXHIBIT A
SCOPE OF SERVICES/PAYMENT PROVISIONS
CLERK OF THE BOARD AND FINANCIAL SERVICES
I.

City of Monterey to Provide the Following:

A.

Clerk of the Board and Administrative Services:

B.

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

Financial Services
Financial services in accordance to the adopted Financial policies and
Procedures including the following:
o Production of an annual budget and budget amendments as
necessary
o General Journal Entry Procedures, Expenditures and Disbursements
o Bank Reconciliation and Final Budget Closing processes

C.

Equipment:

 Office space and computer work stations for staff assigned to water
authority functions
Administrative and clerical supplies related to Clerks Office activity.
Monterey City Council Chamber as a meeting facility
Audio-visual equipment that exists in the Council Chamber
Office space and computer work stations with content management
software in Monterey.
D.

Miscellaneous Services Performed by City of Monterey:

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

II.

MPRWA to Provide the Following:

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

AGREEMENT FOR CLERK of the BOARD SERVICES

City of Monterey and Monterey Peninsula Regional Water Authority
THIS AGREEMENT for Clerk of the Board Services is made and entered into this ____
day of ______, 2015, by and between the City of Monterey (hereinafter Monterey), a
municipal corporation, as the service provider, and the Monterey Peninsula Regional Water
Authority, a Joint Powers Authority (hereinafter MPRWA).
WHEREAS, MPRWA desires to utilize the City of Monterey for Clerk-of-the-Board
services, and administrative assistance related to these services, as outlined in detail in the
attached Exhibit A; and
WHEREAS, Monterey is willing and qualified to provide such services to MPRWA upon
the terms and conditions set forth herein; and
WHEREAS, California Government Code section 54981 provides the City of Monterey
and the Board of Directors of MPRWA with the authority to contract for performance of
municipal services by the former within the territory of the later; and
WHEREAS, the City of Monterey became a member of the Monterey Peninsula Regional
Water Authority on January 25, 2012 by the passage of Resolution No. 12-014 C.S. and
WHEREAS, the MPRWA Board of Directors authorized this agreement on December
10, 2015 by Resolution.
NOW, THEREFORE, in consideration of the recitals and the mutual obligations of the
parties as herein expressed, Monterey and MPRWA agree as follows:
1.
SERVICES TO BE PROVIDED. The MPRWA hereby engages Monterey to perform,
and Monterey hereby agrees to perform, the services described in Exhibit A in conformity with
the terms of this Agreement.
1.01. FINAL DECISION AUTHORITY. MPRWAs Executive Director shall have
final decision authority over the results of the services performed on behalf of MPRWA, and all
work performed by Monterey shall be to the satisfaction of MPRWAs Executive Director. In
instances where a dispute arises over the Executive Directors determination, MPRWAs Board
of Directors shall render a final decision.
1.02.

DUTIES OF MONTEREY AND MPRWA. See Exhibit A.

1.03. EXTRA WORK. Monterey shall not perform extra work without written
authorization from MPRWAs Executive Director or designee. Any extra work so authorized
shall be within the general scope of work set forth in this Agreement.

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

TERM OF AGREEMENT.

3.01. INITIAL TERM. The term of this Agreement shall be from January 1, 2016
through June 30, 2016 unless sooner terminated pursuant to the terms set forth in section 8
herein.
3.02. EXTENSIONS. This Agreement may be extended by consecutive one (1) year
periods, or for shorter extension periods as agreed to by the parties, by written mutual agreement
of the parties City Manager and Executive Director specifying the renewal and end dates. At the
time of any extension, or at any other time as may be necessary during the term of the Agreement,
the labor rates (Exhibit A) may be adjusted by written agreement between the Monterey City
Manager and MPRWA Executive Director. Should either party decide not to extend the
Agreement beyond the initial one (1) year or subsequent one (1) year terms, notice of such
decision shall be provided to the other party no later than thirty (30) days before the expiration
date of the Agreement.
4.
ADDITIONAL PROVISIONS/EXHIBITS. The following attached exhibits are
incorporated herein by reference and constitute a part of this Agreement.
Exhibit A
5.

Scope of Services/Payment Provisions

PERFORMANCE STANDARDS.

5.01. Monterey warrants that Monterey and Montereys agents, employees, and
subcontractors performing services under this Agreement are specially trained, experienced,
competent, and appropriately licensed (if applicable) to perform the work and deliver the
services required under this Agreement, and that they are not employees of MPRWA.
5.02. Monterey, its agents, employees and subcontractors shall perform all work in a
safe and skillful manner and in compliance with all applicable laws and regulations. All work
performed under this Agreement that is required by law to be performed or supervised by
licensed personnel shall be performed in accordance with such licensing requirements.
5.03. Monterey shall furnish all materials, equipment, and personnel necessary to carry
out the specific services set forth in Exhibit A herein, except as otherwise specified in this
Agreement. Monterey shall not use MPRWAs premises, property (including equipment,
instruments, or supplies) or personnel for any purpose other than in the performance of its
obligations under this Agreement.
5.04. Monterey shall perform all services set forth in Exhibit A in a timely manner
consistent with the time Monterey would perform similar services within its own jurisdiction
whenever possible; however, Monterey projects shall be given priority over MPRWA projects if
scheduling conflicts arise and Monterey shall not be liable for any delays in performing
MPRWAs work if such delays are caused by such scheduling conflicts.
2

6.

EXCLUSIONS.
a. All discretionary reviews including, but not limited to: California Environmental
Quality Act; National Environmental Protection Act; Clean Water Act: National
Pollutant Discharge Elimination System Storm Water Post-Construction or local codes
and regulations.
b. Review of agenda report submittals for compliance applicable laws and regulations.

7. PAYMENT CONDITIONS.
7.01. Payment for Montereys services under this Agreement shall be made by MPRWA
annually at the commencement of the contract term upon submission by Monterey of an invoice.
Payment shall be made within thirty (30) days after receipt of such invoice. An additional two
percent (2%) will be paid as a late payment carrying charge for each thirty days of delinquency
thereafter.
7.02. Monterey shall allocate the payment as a portion of Salaries within the Office of the
City Clerk to be paid as part of the regular payroll to employee(s) performing the services described
in Exhibit A herein.
7.03. Monterey shall not receive reimbursement for travel expenses unless set forth in
Exhibit A herein.
8. TERMINATION.
8.01. During the term of this Agreement, either party may terminate the Agreement for
any reason by giving written notice of termination to the other party at least thirty (30) days prior
to the effective date of termination. In the event of an adverse claim or litigation involving either
party and related to the services of this Agreement, this Agreement may be terminated by either
party giving written notice at least ten (10) days prior to the effective date of termination. Any
termination notice shall set forth the effective date of termination.
8.02. MPRWA may cancel and terminate this Agreement for good cause effective
immediately upon written notice to Monterey. Good cause includes the failure of Monterey to
perform the required services at the time and in the manner provided under this Agreement. If
MPRWA terminates this Agreement for good cause, MPRWA may be relieved of the payment of
any consideration to Monterey, and MPRWA may proceed with the work in any manner which
MPRWA deems proper. The cost to MPRWA shall be deducted from any sum due Monterey
under this Agreement.
8.03. Monterey may cancel and terminate this Agreement for good cause effective
immediately upon written notice to MPRWA. Good cause includes but is not limited to failure
of MPRWA to pay Monterey at the time and in the manner provided under this Agreement or
other failure of MPRWA to fulfill its responsibilities set forth in Exhibit A herein. Termination
3

of this Agreement pursuant to this section shall not be construed to limit Montereys right to
obtain, by any means available at law, the amount MPRWA still owes Monterey.
8.04 In the event of early termination of this agreement the unused portion of the
annual payment shall be returned to MPRWA, with the unused amount to be determined by
subtracting the total hourly costs for work already performed from the annual payment amount.
9.

IMMUNITY.

As MPRWAs authorized representative, Monterey shall be recognized as having rights to any

immunities it is entitled to. In no event shall any duties contained in Exhibit A, or otherwise
herein, negate any legal protections or immunities available to the parties under local, state or
federal law. Montereys liability, including, without limitation, that referenced in Section 10
herein, shall be limited to an amount not to exceed the fee earned for each project.
10.

MUTUAL INDEMNIFICATION.

10.01 Each Party shall indemnify, defend and hold harmless the other Party, to the
extent allowed by law and in proportion to fault, against any and all third-party liability for
claims, demands, costs or judgments (direct, indirect, incidental or consequential) involving
bodily injury, personal injury, death, property damage or other costs and expenses (including
reasonable attorneys' fees, costs and expenses) arising or resulting from the acts or omissions of
its own officers, agents, employees or representatives carried out pursuant to the obligations of
this Agreement.
10.02 Each Party shall protect, defend, indemnify and hold harmless the other Party
(including their officials, employees and agents as the same may be constituted now and from
time to time hereafter) from and against any and all liabilities, losses, damages, expenses or
costs, whatsoever (including reasonable attorneys' fees, costs and expenses), which may arise
against or be incurred by the other Party as a result of or in connection with any actual or alleged
breach of this Agreement by either Party.
10.03 Except for any duties either Party owes to the other pursuant to the provisions of
this Agreement, nothing in this Agreement shall be construed to waive any legal protections or
immunities available to the Parties under state or federal law
11.

INSURANCE.

11.01 Each party shall maintain in effect, at its own cost and expense, the following
insurance coverage provided either through a bona fide program of self-insurance, commercial
insurance policies, or any combination thereof as follows:
a. Commercial General Liability or Public Liability with minimum limits of $1,000,000
per occurrence and $2,000,000 in the aggregate. Each party shall prove that is self
insured to the limits specified or have its insurance policy endorsed to name the other
party additionally insured.
4

b. Auto Liability including owned, leased, non-owned, and hired automobiles, with a
combined single limit of not less than $1,000,000 per occurrence and $2,000,000 in
the aggregate.
c. If a party employs others in the performance of this Agreement, that party shall
maintain Workers Compensation in accordance with California Labor Code section
3700 with a minimum of $1,000,000 per occurrence for employers liability, for the
duration of time that such workers are employed.
d. Each party shall maintain in effect throughout the term of this agreement all risk
property insurance, excluding earthquake and flood, on all permanent property of an
insurable nature in an amount sufficient to cover at least 100% of the replacement
costs of said property.
11.02 All insurance required by this Agreement shall:
a. Be placed (1) with companies admitted to transact insurance business in the State of
California and with a current A.M. Best rating of no less than A:VI or with carriers
with a current A.M. Best rating of no less than A:VII; or (2) disclosed self-insurance
with limits acceptable to the other party;
b. Provide that each partys insurance is primary and non-contributing insurance to any
insurance or self-insurance maintained by the other party and that the insurance of the
other party shall not be called upon to contribute to a loss covered by a partys
insurance; and
c. Subsequent to execution of this Agreement, each party shall file certificates of
insurance with the other party evidencing that the required insurance is in effect.
12.
NON-DISCRIMINATION. During the performance of this Agreement, Monterey, and
its subcontractors, shall not unlawfully discriminate against any person because of race, religious
creed, color, sex, national origin, ancestry, physical disability, mental disability, medical
condition, marital status, age (over 40), or sexual orientation, either in Montereys employment
practices or in the furnishing of services to recipients. Monterey shall ensure that the evaluation
and treatment of its employees and applicants for employment and all persons receiving and
requesting services are free of such discrimination. Monterey and any subcontractor shall, in the
performance of this Agreement, fully comply with all federal, state, and local laws and
regulations which prohibit discrimination. The provision of services primarily or exclusively to
such target population as may be designated in this Agreement shall not be deemed to be
prohibited discrimination.
13.
INDEPENDENT CONTRACTOR. In the performance of work, duties, and
obligations under this Agreement, Monterey is at all times acting and performing as an
independent contractor and not as an employee of MPRWA. No offer or obligation of permanent
employment with MPRWA or particular MPRWA department or agency is intended in any
5

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

15.

FOR MPRWA:
Jason Burnett
President

FOR MONTEREY:
Michael McCarthy
City Manager

c/o 735 Pacific Street

Monterey, CA 93940

Monterey, CA 93940

Ph: (831) 238-0009

Ph: (831) 646-3760

City Hall

MISCELLANEOUS PROVISIONS.

15.01. Conflict of Interest. Monterey represents that it presently has no interest and
agrees not to acquire any interest during the term of this Agreement which would directly or
indirectly conflict in any manner or to any degree with the full and complete performance of the
professional services required to be rendered under this Agreement.
15.02. Amendment. This Agreement may be amended or modified only by an
instrument in writing signed by MPRWA and Monterey.
15.03. Waiver. Any waiver of any terms and conditions of this Agreement must be in
writing and signed by MPRWA and Monterey. A waiver of any of the terms and conditions of
this Agreement shall not be construed as a waiver of any other terms or conditions in this
Agreement.
15.04. Contractor. The term Monterey as used in this Agreement includes Montereys
officers, agents, and employees acting on Montereys behalf in the performance of this
Agreement.
15.05. Disputes. Monterey shall continue to perform under this Agreement during any
dispute. Monterey and MPRWA hereby agree to make good faith efforts to resolve disputes as
quickly as possible. In the event any dispute arising from or related to this Agreement results in
litigation or arbitration, the prevailing party shall be entitled to recover all reasonable costs
incurred, including court costs, attorney fees, expenses for expert witnesses (whether or not
called to testify), expenses for accountants or appraisers (whether or not called to testify), and
other related expenses. Recovery of these expenses shall be as additional costs awarded to the
prevailing party, and shall not require initiation of a separate legal proceeding.

15.06. Assignment and Subcontracting. Monterey shall not assign, sell, or otherwise
transfer its interest or obligations in this Agreement without the prior written consent of
MPRWA. None of the services covered by this Agreement shall be subcontracted without the
prior written approval of MPRWA. Notwithstanding any such subcontract, Monterey shall
continue to be liable for the performance of all requirements of this Agreement.
15.07. Successors and Assigns. This Agreement and the rights, privileges, duties, and
obligations of MPRWA and Monterey under this Agreement, to the extent assignable or
delegable, shall be binding upon and inure to the benefit of the parties and their respective
successors, permitted assigns, and heirs.
15.08. Compliance with Applicable Law. The parties shall comply with all applicable
federal, state, and local laws and regulations in performing this Agreement.
15.09. Headings. The headings are for convenience only and shall not be used to
interpret the terms of this Agreement.
15.10. Time is of the Essence. Time is of the essence in each and all of the provisions of
this Agreement.
15.11. Governing Law. This Agreement shall be governed by and interpreted under the
laws of the State of California.
15.12. Non-exclusive Agreement. This Agreement is non-exclusive and both MPRWA
and Monterey expressly reserve the right to contract with other entities for the same or similar
services.
15.13. Construction of Agreement. MPRWA and Monterey agree that each party has
fully participated in the review and revision of this Agreement and that any rule of construction
to the effect that ambiguities are to be resolved against the drafting party shall not apply in the
interpretation of this Agreement or any amendment to this Agreement.
15.14. Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same Agreement.
15.15. Authority. Any individual executing this Agreement on behalf of MPRWA or
Monterey represents and warrants hereby that he or she has the requisite authority to enter into
this Agreement on behalf of such party and bind the party to the terms and conditions of this
Agreement.
15.16. Integration. This Agreement, including the exhibits and any documents
incorporated by reference, represent the entire Agreement between MPRWA and Monterey with
respect to the subject matter of this Agreement and shall supersede all prior negotiations,
representations, or agreements, either written or oral, between MPRWA and Monterey as of the
effective date of this Agreement, which is the date that MPRWA signs the Agreement.
7

15.17 Interpretation of Conflicting Provisions. In the event of any conflict or

inconsistency between the provisions of this Agreement and the Provisions of any exhibit or
other attachment to this Agreement, the provisions of this Agreement shall prevail and control.
15.18 Severability. If any of the provisions contained in the Agreement are held illegal,
invalid, or unenforceable, the enforceability of the remaining provisions shall not be impaired
thereby. Limitations of liability and indemnities shall survive termination of the Agreement for
any cause. If a part of this Agreement is valid, all valid parts that are severable from the invalid
part remain in effect. If a part of this Agreement is invalid in one or more of its applications, the
part remains in effect in all valid applications that are severable from the invalid applications.
IN WITNESS WHEREOF, MPRWA and Monterey have executed this Agreement as of
the day and year written on the first page herein.
CITY OF MONTEREY

MONTEREY PENINSUAL REGIONAL

WATER AUTHORITY

By:____________________________
City Manager

By:______________________________
President

Approved as to form:

Approved as to form:

________________________
Monterey City Attorney

__________________________
MPRWA Legal Counsel

EXHIBIT A
SCOPE OF SERVICES/PAYMENT PROVISIONS
CLERK OF THE BOARD SERVICES

I.

City of Monterey to Provide the Following:

A.

Clerk of the Board Services:

B.

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

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

C.

Miscellaneous Services Performed by City of Monterey:

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

II.

MPRWA to Provide the Following:

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

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: December 10, 2015

Item No: 6.

Executive Director Cullem

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

06/12

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

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: December 10, 2015

Item No: 7.

Executive Director Cullem

SUBJECT: Certificate of Appreciation for Lesley-Rerig Milton

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

06/12

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: December 10, 2015

Item No: 8.

Executive Director Cullem

SUBJECT: Receive Report and Discuss the Status of the Pure Water
Monterey (PWM) / Groundwater Replenishment (GWR) Project

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

06/12

Status Report
Pure Water Monterey
Groundwater Replenishment Project
(Prepared by MPWMD 11-30-15)

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

provided to various consultants to work on those permits this fiscal year. There are more permits
required if the Coastal Alignment of the product water pipeline is used. MRWPCA will prepare
a detailed permitting plan that covers all of the components of the GWR Project. The permitting
plan will identify each required permit or approval, the permitting entity, the steps to complete
the permit, the party responsible for obtaining the permit, and the estimated schedule and cost for
the permitting effort. At this time, there is no reason to believe that this criterion will not be met.
Criterion 3: There is sufficient legal certainty as to agreements or other determinations in place
to secure delivery of source water(s) necessary to produce between 3,000 to 3,500 acre feet per
year of GWR product water for the recommended project.
Status: The MRWPCA-MCWRA Amended and Restated Water Recycling Agreement was
approved by both agencies and the County Board of Supervisors in the past 30 days. An
Agreement between MRWPCA and the City of Salinas has also been approved. Hence, this
criterion has been met. A draft definitive agreement is under review and will be circulated the
week of November 30th.
Criterion 4: The weight of the evidence in the record does not show that the California
Department of Health or the Regional Water Quality Control Board will decline to accept or
approve the GWR extraction or GWR treatment and injection processes, respectively.
Status: The Division of Drinking Water (DDW), formerly part of CDPH but now part of
SWRCB, provided a letter dated June 5, 2014 indicating that there were no issues they had to
decline approval of GWR. DDW has been involved in the Independent Advisory Panel meetings
and other update meetings along with their colleagues at the Regional Water Quality Control
Board (RWQCB.) The RWQCB has emailed the SWRCB in support of the project due to their
desire to see the diversion of Blanco Drain water away from the Salinas River. Hence, this
criterion appears to have been met, but additional evidence will be produced as needed.
Criterion 5: The GWR Project is on schedule, as verified by a report issued by an engineer
licensed in California, to be operable, on or before the later of (a) the then-effective date of the
Cease and Desist Order of the SWRCB or such other date as the SWRCB states in writing is
acceptable, or (b) the date the MPWSP desalination project is scheduled to become operable. The
Parties acknowledge that the actual date of operation for the GWR Project and the desalination
project could vary from the operation date projected in the schedules, and therefore agree to a
range of up to an additional four months from the projected date of operation, before the GWR
Project schedule would no longer be considered on an acceptable schedule.
Status: The project is on schedule to be operable long before the desalination project and the
projected revised CDO effective date. However, an engineers report to that effect will be
included in the GWR testimony at the CPUC.
Criterion 6: Preliminary design for the GWR Project is at least at the 10% level, represented by
a basis of design report (so that an accurate project cost estimate can be generated) or is at a level
similar to or more advanced than the level of design for the desalination project portion of the
MPWSP.

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

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

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: December 10, 2015

Item No: 9.

Executive Director Cullem

SUBJECT: Receive an Update on the Summary Project Schedule for the Monterey
Peninsula Water Supply Project (MPWSP), including Award of Production
Well and Conveyance System Contracts and Status of Test Slant Well
Operations and Results
RECOMMENDATION:
It is recommended that the Water Authority Board receive a report from Cal Am on the
latest "Summary" MPWSP schedule, as well as the status of contracts for the
production wells and the conveyance systems and the status of test well operations and
results.
DISCUSSION:
Cal Am will provide an update at the Water Authority meeting.
ATTACHMENTS:
None

06/12

Monterey Peninsula Regional Water Authority

Agenda Report

Date: December 10, 2015

Item No: 10.

FROM:

Executive Director Cullem

SUBJECT:

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

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

DISCUSSION:
The accomplishments of the Water Authority since its inception were discussed at the Authority meeting
of February 12, 2015 and the staff report is included herewith at attachment A.
MISSION:
Paragraph 2.2 of the Joint Exercise of Powers Agreement dated February 12, 2012 and unchanged in the
First Amended and Restated Joint Exercise of Powers Agreement dated February 14, 2013 reads in part
as follows: "The purpose of this Agreement is to establish a public entity separate from its Members to
jointly exercise some or all of the foregoing common powers, as deemed necessary by the Authority, to:
(1) ensure the timely development, financing, construction, operation, repair, and maintenance of one or
more Water Projects; and (2) ensure that the governance of such Water Projects includes representation
that is directly accountable to the Cities' water users."
WORK PLAN:
On April 10, 2014, the Water Authority Board approved the following work plan elements:
-

Completion of post-settlement activities and follow-up with settling parties

Assist passage of legislation to implement securitization and work collaboratively with MPWMD and
Cal Am to obtain Water Rate Relief Bonding and other public funding to minimize costs to the
ratepayers
Work collaboratively with MPWMD and MRWPCA to move the GWR project forward
Work with the MPWMD to develop a plan for engaging with the State Water Resources Control
Board regarding potential appropriate modifications to the Cease and Desist Order
Where appropriate, support Cal-Am in efforts to secure permits related to the proposed source
wells (initially a test well)
Actively pursue public outreach and education efforts through our WA consultant in cooperation with
MPWMD and its Public Outreach Committee
Pursue opportunities to increase the use of storm water in future water supply projects

Monterey Peninsula Regional Water Authority

Agenda Report

Date: December 10, 2015

Item No: 10.

SUNSET:
No sunset date has been established for the MPRWA.

Staff suggests there are roughly four reasonable (4) options:

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

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

SUMMARY:
Monterey County Supervisors have expressed concern for MPRWA "mission-creep". Accordingly, it is
recommended that the Water Authority Board review the purpose statement (parag 2.2 of the JPA) as
well as the elements of the approved work plan and direct staff where to reduce our effort.
The Water Authority is also requested to provide direction to staff on the sun-setting of the Authority
between Jan 2016 and Jan 2020.

ATTACHMENT:
None