Agenda

Monterey Peninsula Regional Water Authority (MPRWA)

Technical Advisory Committee (TAC)
Regular Meeting
10:30 AM, Monday, April 6, 2015
Council Chamber
580 Pacific Street
Monterey, California
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
REPORTS FROM TAC MEMBERS
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 TAC and which is not on the agenda. Any
person or group desiring to bring an item to the attention of the Committee may do so by
addressing the Committee during Public Comments or by addressing a letter of explanation to:
MPRWA TAC, Attn: Monterey City Clerk, 580 Pacific St, Monterey, CA 93940. The appropriate
staff person will contact the sender concerning the details.

APPROVAL OF MINUTES
1.

Approve Minutes from March 2, 2015 Regular Meeting

AGENDA ITEMS

2.

Receive Report on Possible Water Authority Review of the California Public Utilities
Commission Draft Environmental Impact Report for the Monterey Peninsula Water Supply
Project. (Cullem)

3.

Review and Discuss All Public Comments on the Preliminary Draft Cease and Desist
Order Extension Request Submitted by Cal Am on March 10, 2015. (Cullem/Narigi)

4.

Receive Report and Discuss the Status of the Definitive Agreement and Funding for the
Groundwater Replenishment/ Pure Water Monterey Project. (Stoldt/McCullough)

5.

Receive Report and Discuss the Status of the Externalities Study Contract and the Cost
Comparison Study for Groundwater Replenishment and Desal. (Stoldt)

6.

Receive Report, Discuss, and Make Recommendations to the Water Authority as

Appropriate on the Status of the Test Slant Well Operation, on a "Dashboard" with 5
Variables for Future Test Well Reports, and on Confirmation That Slant Well Feasibility
Determination by the Authority Will be Consistent With the Criteria Used by State
Regulators (CCC). (Crooks)

Created date 04/02/2015 8:38 PM

Monday, April 6, 2015

ADJOURNMENT

The Monterey Peninsula Regional Water Authority 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 Monterey 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 35.10235.104 ADA Title II]. Later requests will be accommodated to the extent feasible. For
communication-related assistance, dial 711 to use the California Relay Service (CRS) to speak to
City offices. CRS offers free text-to-speech, speech-to-speech, and Spanish-language services 24
hours a day, 7 days a week. If you require a hearing amplification device to attend a meeting, dial
711 to use CRS to talk to the Monterey 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.

MINUTES
MONTEREY PENINSULA WATER AUTHORITY (MPRWA)
TECHNICAL ADVISORY COMMITTEE (TAC)
Regular Meeting
10:30 AM, Monday, March 2, 2015
COUNCIL CHAMBER
580 PACIFIC STREET
MONTEREY, CALIFORNIA
Members Present:

Cullem, Huss, Israel, Narigi, Riedl, Riley, Stoldt.

Members Absent:

None

Staff Present:

Executive Director, Clerk

CALL TO ORDER
Chair Cullem called the meeting to order at 10:36 AM.
ROLL CALL
Legal Counsel Freeman was absent.
PLEDGE OF ALLEGIANCE
REPORTS FROM TAC MEMBERS
Member Riley reported that Public Water Now has invited Keith Israel to their next meeting to
discuss the Pure Water Monterey Project.
Mr. Cullem noted an item was requested to be added after the agenda was published
requesting the TAC to discuss opportunities in which the water authority could participate in the
discussion regarding the CDO extension. Mr. Cullem requested the item to be added as a
discussion item.
On a motion by Committee Member Riley, seconded by Committee Member Narigi and carried
by the following vote, the MPRWA Technical Advisory Committee approved adding an agenda
item to discuss possible ways the Authority can participation in the discussion regarding the
Cease and Desist Order extension request.
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:

6
0
0
1
0

MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:

Cullem, Huss, Israel, Narigi, Riedl, Riley, Stoldt.

None
None
Stoldt
None

PUBLIC COMMENTS
Chair Cullem invited comments from the public for items not on the agenda.

MPRWA TAC Minutes

Monday, March 2, 2015

Tom Rowley updated the Authority regarding the lawsuit between Monterey Peninsula
Tax Payers Association vs Monterey Peninsula Water Management District regarding
the 152 water supply charge, reporting that the matter is under consideration. He
expressed concern the item does not seem to be discussed publically regarding what
the potential impacts could be.

APPROVAL OF MINUTES
1.

February 2, 2015
On a motion by Member Narigi, seconded by Member Stoldt and carried by the following vote,
the MPRWA Technical Advisory Committee approved the Minutes from February 2, 2015 as
amended:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:

7
0
0
0
0

MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:

Cullem, Huss, Israel, Narigi, Riedl, Riley, Stoldt.

None
None
None
None

AGENDA ITEMS
2.

Receive Report on the Status of The Definitive Agreement for the Groundwater Replenishment
/ Pure Water Monterey (GWR/PWM) Project -Stoldt/Israel
Member Israel spoke to the definitive legal agreements that are still pending and provided an
update on the status of the different agreements. He noted that progress is being made on all of
the agreements but not all will be signed by March 31st. He anticipated completion by the end of
May 2015. Mr. Israel answered questions from the TAC.
On question, Member Stoldt explained why the targeted cost was approximately $1700-1800
acre/ft and that the externality study would reveal the true costs. Member Narigi expressed
concern that the study will not define future source water quantities to which Member Stoldt
indicated source water will be addressed in the agreements with the Salinas, Monterey and
County Water Resources Agency.
Member Riedl questioned if there is any discussion with Marina Coast Water District regarding
source water to which Mr. Israel indicated that the key focus of discussion with MCWD is
pipeline, but that discussion is possible.
Chair Cullem invited public comment on the item.

Tom Rowley indicated that the externality study will be difficult to provide data to prove
that the water injected into the Seaside Basin will be in the targeted cost range, as it still
must be treated when withdrawn. Thinks it will be hard to convince ratepayers that there
will be great benefits to the environment but the costs will be increased.
2

MPRWA TAC Minutes

Monday, March 2, 2015

Member Riley responded to Mr. Rowley that the same notion could be applied to the costs
being expended for slant wells. We are all faced with the argument of the environmental
benefits vs the costs. Mr. Cullem reminded everyone that the reason the Authority exists is a
result of environmental issues.
3.

Receive Report and Discuss the Latest Information on Public Funding, Including Bond
Financing, for the MPWSP and for GWR- Stoldt
Member Stoldt reported that the public financing order application will be before the CPUC in
June. He then reported progress is being made on the SRF financing for the PWM project
which is being coordinated by MRWPCA. The water purchase agreement must be done to file a
substantive application with the state. Mr. Stoldt noted that the 1% interest money will expire by
December 31st but conversations with the SRF staff to expedite the application have been
made and if 100% financing is not received, there will have to be public debt financing. The
financing plan should be secured in Summer of 2015.
Mr. Cullem questioned the implementation of Surcharge 1 and 2 to which Mr. Stoldt indicated
there will be a gap between the two. Member Riley questioned if the language in the law can be
applied to a successive project to which Mr. Stoldt indicated that it cannot be transferred from
project to project.
Chair Cullem invited comments on the item and had no requests to speak.

4.

Discuss Preparations for Review of the Desal DEIR Scheduled for Release in April 2015. Cullem
Chair Cullem introduced the item indicating the purpose was to discuss the impacts of the
schedule change made by the CPUC. He spoke to the revisions made as a result of delays with
regard to legal action, or extension requests. Mr. Cullem outlined the changes and the impacts
and posed the question to the TAC asking what action or preparations should be taken, if any
prior to the release of the DEIR.
The TAC discussed options including requesting consideration of mitigation measures in
advance, requesting an updated cost estimate from Cal Am, focusing on contingency plans if
the slant wells are unsuccessful, and focus on the amended CDO proposal.
Chair Cullem questioned if the TAC would support contracting with a consultant or schedule
special meetings to walk through the EIR to provide suggestions and input to the Directors on
the DEIR. The TAC discussed the possibility to review the DEIR versus contracting a
professional and it is an important enough topic to contract a professional and expend funds to
review the document. Chair Cullem agreed to research qualified firms to review and be
objective, and bring back to the TAC pricing and proposals within two months to which the TAC
agreed.
Mr. Cullem reported that in the next several months, he intends to agendize all three of the
desal projects to make presentations to the public and to provide status updates.
Member Riedl requested consideration to peer review the EIR for the PWN/GWR project. Chair
Cullem agreed to identify consultants to peer review both projects.

MPRWA TAC Minutes

Monday, March 2, 2015

Chair Cullem invited public comment on the item.

Tom Rowley expressed concern that events are moving at a faster pace and waiting two
months to bring a consultant on board is too long. He suggested having the Authority
consider approval of a contract at the March 12 Director meeting.

On a motion by Member Riedl, seconded by Member Narigi and carried by the following vote,
the MPRWA Technical Advisory Committee recommended that the Directors authorize the
Executive Director identify and contract with a consultant to conduct a peer review of the DEIR
and provide comments and suggestions to the Authority.
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:

5.

7
0
0
0
0

MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:
MEMBERS:

Cullem, Huss, Israel, Narigi, Riedl, Riley, Stoldt.

None
None
None
None

Receive and Discuss the Current "Detailed" MPWSP Critical Path Schedule for Permits &
Approvals - Crooks
Chair Cullem briefly spoke on a concern expressed during a Monterey City Council meeting
that the construction schedule of the pipeline extends through the entire project period which
would seem to be a critical path item. He indicated he would pose the question to Cal Am
asking if anything can be done to truncate the timeline for the pipeline construction, such as
obtaining permits sooner.
Chair Cullem invited the public to bring forth issues they have concerns about.

Tom Rowley expressed thanks to be moving away from generalities into specifics.

6 Discussion of possible ways the Authority can participate in the discussion regarding the Cease
. and Desist Order extension request
Member Narigi expressed a list of 18 concerns regarding the proposal and requested the TAC
review this item in detail and bring back to their respective organizations.
Member Riley said it was the wrong direction to use rationing as leverage with the State as
residents are already performing conservation of water and suggested negotiation regarding
the level of fines, not levels of water. He disagreed that negotiations be based on Cal Am's
performance or water production.
Mr. Narigi agreed with regard to the fine and since the fine is undefined it's difficult to analyze.
He questioned if any other legal rights are waived by the agreement and then requested
clarification on the process for requesting this extension.
Chair Cullem spoke to the Authority not being party to the agreement but is assisting to define
the agreement, is trying to mediate as well as make it a transparent process. Cal Am is the
4

MPRWA TAC Minutes

Monday, March 2, 2015

proposer and will sign the agreement.

Chair Cullem invited public comment and had no requests to speak.

ADJOURNMENT
Having no further business, the meeting was adjourned.

Respectfully Submitted,

Approved,

Lesley E. Milton-Rerig, Committee Clerk

Executive Director/Chair Jim Cullem

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: April 06, 2015

Item No: 2.

Executive Director Cullem

SUBJECT: Receive Report on Possible Water Authority Review of the California

Public Utilities Commission Draft Environmental Impact Report for the
Monterey Peninsula Water Supply Project.
RECOMMENDATION:
It is recommended that the TAC provide specific and detailed recommendations to the
Water Authority on a possible professional services contract to review and comment on
the CPUC Draft Environmental Impact Report (DEIR) for Cal Am's Monterey Peninsula
Water Supply Project (MPWSP).
DISCUSSION:
At its meeting of March 2, 2015, the TAC voted to recommend to the Water Authority
that it award a professional services contract to review the MPWSP DEIR scheduled to
be released by the CPUC in April 2015.
Subsequently, the Authority Executive Committee requested that the TAC identify what
specific areas of DEIR review it would like to see considered by a contracted review
before the issue is returned to the Water Authority Board for further consideration.
ATTACHMENTS:
None

06/12

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: April 06, 2015

Item No: 3.

Executive Director Cullem

SUBJECT: Receive and Discuss All Public Comments on the Preliminary Draft Cease
and Desist Order Extension Request Submitted by Cal Am on March 10,
2015.
RECOMMENDATION:
It is recommended that the TAC review all public comments received to date on Cal
Am's March 10, 2015 preliminary draft request for an extension of the State Water
Resources Control Board Cease and Desist Order WR 2009-0060 (CDO) Deadline of
31 December 2016.
DISCUSSION:
Representatives of the settling parties have been in discussion with the SWRCB staff in
an effort to assist with Cal Am's proposal for a CDO extension that would be acceptable
to the public and have a reasonable expectation of obtaining State Board approval.
At previous TAC and Water Authority meetings, members of the public have provided
written and oral comments on the March 10 draft as well as on previous drafts. The
Authority Board has directed that the TAC consider these comments in more detail and
provide recommendations to the Board as appropriate.
ATTACHMENTS:
A- March 10, 2015 DRAFT Proposal to Amend SWRCB Order 2009-0060.
B- Business Coalition Preliminary Comments on CDO Extension Request

06/12

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Proposal to Amend
SWRCB Order WR 2009-0060 (Carmel River CDO)
A. Good Cause Exists to Modify WRO 2009-0060: California American Water (CAW) and other
Parties have diligently and aggressively implemented measures to comply with WRO 2009-0060
(CDO). CAW and other Parties have: (1) implemented efficiency and conservation measures
to control and reduce customer demand and system losses within CAWs Monterey district, such
that the community is currently outperforming targets for production of Carmel River water set
in the CDO; (2) diligently pursued the Monterey Peninsula Water Supply Project (MPWSP),
which will supply the replacement water supply necessary to eliminate all unauthorized
diversions from the Carmel River; (3) developed, permitted and implemented projects to replace
and supplement Carmel River diversions subject to the CDO 1; and (4) permitted and
implemented measures to enhance and improve conditions for fish and wildlife resources in the
Carmel River watershed, and to minimize or avoid impacts to fish and wildlife that could result
from extension of WRO 2009-0060 timelines. In consideration of these activities and the further
commitments described below, CAW and other Parties support the State Water Resources
Control Boards (SWRCBs) finding of good cause to modify the CDO as requested.
B. Modifications to WRO 2009-0060: CAW is currently meeting or has met all of the conditions of
the CDO, but factors beyond CAWs control make it unlikely that several future conditions can
be met. Therefore, in coordination with other Parties, CAW will submit a request for the
following modifications to the CDO:
1. A four-year extension of the deadline set forth in ordering Condition no. 1, from December
31, 2016 to December 31, 2020.
2. Add a process to Condition no. 1 delegating to the Executive Director authority to
administratively extend the time for compliance with Condition no. 1, for good cause
shown.
3. Amend Condition no 3.a.(2) to state that, effective Water Year 2015-2016, CAW shall further
reduce unlawful diversions from the river by an additional 1,000 acre feet annually (afa)
from the existing cumulative reduction level in place for Water Year 2013-2014 under Table
1 of the CDO. See Attachment 1. For good cause shown, the Executive Director may exercise
discretion to relax this diversion reduction to address circumstances that may arise in future
years. A showing of good cause to justify a modification of this diversion reduction shall
include, but shall not be limited to, circumstances in which CAW, MPWMD, and/or MPRWA
submit credible evidence that: (1) the existing demand or projected demand within the CAW
system is likely to exceed the cumulative reduction levels in effect, or projected cumulative
1

These projects include: Seaside Middle School Aquifer Storage and Recovery (ASR) Well #3 (completed up to an
additional 500 acre feet per annum); Acquisition of additional rights to legally appropriate Carmel River water via
Permit 21330 (up to 1488 acre feet per annum); Seaside Middle School ASR Well #4 (in process, up to 500 acre feet
per annum).

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reduction levels to take effect, as set forth in Table 1 of the CDO; and (2) CAW has exercised
all reasonable care, and the MPRWA and MPWMD have provided all reasonable
cooperation and support, to meet the milestones set forth in Condition no. 3.a.(2)(i). CAW,
MPRWA and/or MPWMD shall have the right to request the full SWRCB to reconsider any
determination by the Executive Director under this Condition no 3.a.(2).
4. Replace Attachment 1 to the CDO with Attachment 1 to this Proposal to Amend.
5. Add a Condition no. 3.a.(2)(i) stating that the reduced diversion level set forth in amended
Condition no 3.a.(2) will be maintained, i.e., no additional annual reduction in diversions will
be required under the CDO, if CAW meets the following milestones as they accrue:
a.
b.
c.

d.

Milestone
Substantial completion of downstream fish passage facilities at the
Los Padres Dam 2, meaning facilities are sufficiently complete and
appropriately permitted to allow for their operation as intended
Start of construction for any of the CAW Components 3 of the
MPWSP, meaning commencement of physical work after issuance
of required regulatory permits and authorizations to begin work 4
(1) Drilling activity for at least one MPWSP source water
production well 5 complete; (2) foundation and structural framing
complete for MPWSP pretreatment, seawater reverse osmosis,
and administration buildings at desalination plant; (3) excavation
complete for MPWSP brine and backwash storage basins; and (4)
25% of MPWSP transmission pipelines installed based on total
length 6
(1) 50% of drilling activity complete for MPWSP source water
production wells based on total number of wells required; (2)
mechanical systems for MPWSP brine and backwash storage

Deadline
September
30, 2016
September
30, 2017
September
30, 2018

September
30, 2019

CAW owns and operates Los Padres Dam at approximately River Mile 24.8 on the Carmel River. CAW has made
various improvements to accommodate upstream fish passage over Los Padres Dam. Currently, when the lake
elevation falls below the dams spillway crest, no downstream fish passage corridor exists. To improve
downstream fish passage opportunity, CAW and various stakeholders have agreed that the following downstream
fish passage facilities should be constructed: behavioral guidance system; floating weir surface collector; fish
bypass conduit; bypass access portals; and bypass outfall.
3
For purposes of this proposal the CAW Components of the MPWSP include: source water production wells;
desalination plant; brine disposal system; and transmission pipelines.
4
Such work may include, among other things, any of the following: desalination plant site grading and preparation;
electric utility installation; yard piping; subsurface excavation for structural foundations; transmission pipeline
installation; and/or presence of source water well drilling equipment on-site.
5
Not including the MPWSP Test Well completed in 2015.
6
For transmission pipeline installation CAW will prioritize installation of the Monterey Pipeline and other ASR
related improvements, which will facilitate increased ASR diversion during high flows and other improved
operations that will increase the amount of water in the Carmel River during dry months. See Paragraph C.1.,
below.

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e.

basins complete; (3) Construction of MPWSP filtered water tanks

and finished water tanks complete; (4) 50% of MPWSP
transmission pipelines installed based on total length, including
100% installation of the Monterey Pipeline and other ASR related
improvements described in Footnote 6 and Paragraph C.1., below
Substantial completion of the CAW Components of the MPWSP,
meaning the CAW Components are sufficiently complete and
appropriately permitted to allow delivery of MPWSP produced,
potable water to CAWs Monterey Main system, no further CAW
diversions of Carmel River water without valid basis of right

December
31, 2020

6. Add a Condition no. 3.a.(2)(ii) stating that, should CAW fail to meet any milestone described
in new Condition no. 3.a.(2)(i) by its corresponding deadline, the reduced diversion level set
forth in amended Condition no 3.a.(2) shall be further reduced by 1,000 afa. Any further
reduction(s) required under this new Condition no. 3.a.(2)(ii) shall remain in force until the
corresponding milestone is achieved. If a milestone is not achieved by its original deadline,
but is subsequently achieved, the further reduction required in the water year in which the
milestone is achieved shall be prorated and assessed at the end of that water year, and shall
no longer be required for subsequent water years. 7
7. Add a Condition no. 3.a.(2)(iii) stating that, if CAW fails to meet any milestone described in
Condition no. 3.a.(2)(i), the corresponding further reduction described in new Condition no.
3.a.(2)(ii) shall be suspended if CAW, the Monterey Peninsula Regional Water Authority
(MPRWA) and the Monterey Peninsula Water Management District (MPWMD):
a. Make a written joint notice to the Executive Director, with copies to counsel for the
Sierra Club and the Carmel River Steelhead Association, no later than 60 days after the
associated milestone deadline; and
i. The notice includes credible information demonstrating that CAW has exercised
all reasonable care, and the MPRWA and MPWMD have provided all reasonable
cooperation and support to meet the milestone, and the milestone deadline
was missed due to circumstances beyond the control of CAW, MPRWA and/or
MPWMD;
ii. If CAW, MPRWA, and MPWMD cannot agree on a joint notice, then any of these
entities may submit an individual notice or notices following the procedure and
form described in this Paragraph B.7. If such individual notice(s) are submitted,
or the Executive Director does not agree with a joint notice submitted under
this Paragraph B.7, the SWRCB shall determine whether to suspend the
7

For example, if CAW failed to complete construction of downstream fish passage facilities at the Los Padres Dam
ths
by September 30, 2016, but completed these facilities by June, 2017, 75% (9/12 ) of the corresponding 1,000 afa
reduction (i.e., 750 afa) would be required as a reduction for water year 2016-2017. No reduction based on missing
this milestone would be required for water year 2017-2018 or any future water years.

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reduction that corresponds to the missed milestone. If any notice(s) are
submitted following the form and process described in this Paragraph B.7,
further reductions described in Condition no. 3.a.(2)(i) shall be tolled pending
determination by the SWRCB or the Executive Director.
8. Amend Condition 3.a.(5) to state: Water produced from new sources developed pursuant
to Condition 5 of this order shall be subtracted from the base (currently includes incorrect
cross reference to Condition no. 4 rather than Condition no. 5).
9. Amend the last sentence of Condition no. 3.a.(6) to state as follows: After December 31,
2020, CAW shall divert water from the river to supply the holders of PBCs water
entitlement only from CAWs legal water rights.
10. Add a Condition 3.a.(7) stating that, should CAW be able to identify suitable and willing
transacting parties, CAW will use reasonable additional efforts to acquire supplemental
water rights at acceptable costs, and/or will pursue other water acquisition and water right
changes in order to increase flows in the Carmel River, and/or to decrease CAWs
unauthorized diversions. Such acquisitions or water right changes may include leases and
purchases of water rights along the Carmel River on a temporary or permanent basis,
and/or water right change approvals or permits (permanent or temporary) from the SWRCB
to increase opportunities to increase lawful diversions in order to reduce unauthorized
diversions during periods of lower flow on the Carmel River. CAW shall quantify
supplemental water supplies and increased flows developed pursuant to this Condition and
such supplemental water and/or increased flows will be credited towards any further
reduction required under new Condition no. 3.a.(2)(ii) (excepting supplies developed to
satisfy Conditions 5 and 3.a.(5)).
11. Amend Condition no. 3.c. to add the following sentence after the last sentence: Any ASR
water stored in and recovered from the Seaside Groundwater Basin in excess of the (a)
Estimated ASR Project Operational Yield and (b) the Estimated Small Project Output, as set
forth in Table 1, shall be credited towards any further reduction required under new
Condition no. 3.a.(2)(ii). In addition, Condition no. 3.c. should be modified to extend the
deadline for written submissions to recover ASR water to not later than May 31 of each
year, to allow CAW and the fisheries agencies appropriate time to consider information
made available at agency meetings that occur after May 1 of each year.
C. Requests for Assistance by SWRCB. Additionally, CAW and other Parties request that the
SWRCB commit to use reasonable efforts to assist with the following items:
1. Upon issuances of a Certificate of Public Convenience and Necessity (CPCN) from the
CPUC, provision of support for CAWs request(s) to the California Coastal Commission and
other agencies with permitting jurisdiction for expedited permit issuance for the Monterey
Pipeline and other ASR related improvements, which will facilitate increased ASR diversion
during high flows and other improved operations that will increase the amount of water in
the Carmel River during dry months;

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2. Provision of support in connection with an application by the MPWMD and the Monterey
Regional Water Pollution Control Authority (MRWPCA) to place the groundwater
replenishment (GWR) component of the MPWSP on the State Revolving Fund financing
priority list;
3. Provision of support in connection with a request that the SWRCB Division of Financial
Assistance award one percent (1.000%), thirty-year loan proceeds from the program
announced March 19, 2014 for water recycling projects for the MPWMD/MRWPCA
groundwater replenishment project, provided an application is submitted by December 2,
2015;
4. Provision of support and prioritization in connection with the MPWMD/MRWPCA GWR
receipt of grant funds pursuant to Chapter 9 of AB 1471 (2014 Proposition 1); and
5. Provision of support , including expedited review, in connection with water rights
Application 32263 of Monterey County Water Resources Agency, and any amendments
thereto, in order to facilitate the MPWMD/MRWPCA groundwater replenishment project
D. In consideration of the foregoing, CAW and other Parties commit to implement, or have
implemented, the following measures
1. Efficiency and Conservation Measures - CAW and other Parties have implemented the
following measures to control and reduce water demand and system losses within CAWs
service area:
a. CAW has implemented, and will continue during the CDO period, the current
moratorium on new service connections within its Monterey district (see Revised
C.P.U.C. SHEET NO.6509-W);
b. CAW and the MPWMD will continue customer water conservation and efficiency
programs, including:
i. programs targeting high use commercial customers such as laundries, hotels and car
washes;
ii. programs targeting reductions in outdoor irrigation including replacement of
irrigated turf with drought tolerant landscaping or artificial turf, incentives for
installation of weather-based irrigation controllers, and mandatory installation of
rain sensors on irrigation systems 8; and

MPWMD Regulation XIV.

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iii. mandatory water efficiency requirements for all non-residential customers and
certain residential customers. 9
c. CAW will continue programs to detect and reduce non-revenue system losses, including:
i. replacement of older water mains and service lines in areas shown to be more leak
prone;
ii. water meter replacement;
iii. active leak detection;
iv. technological solutions to manage lost water; and
v. operational fixes such as pressure reduction.

d. CAW will submit an application to modify revised Rule No. 14.1.1, Water Conservation

and Rationing Plan for the Monterey District to the California Public Utilities Commission
(CPUC) for approval 10.

2. Alternative and Supplemental Water Supplies CAW and other Parties have developed
and/or are implementing projects to provide replacement and supplemental water supplies
to CAWs Carmel River water supplies subject to the CDO:
a. CAW has submitted an application to the CPUC for approval of the MPWSP, which will
allow CAW to eliminate all unauthorized diversions from the Carmel River in full
compliance with the CDO. In September 2014 Governor Jerry Brown signed SB 936,
authored by Senators Bill Monning and Anthony Cannella, with Assemblymen Mark
Stone and Luis Alejo. This legislation will allow the MPWSP to utilize partial public
financing if it is available at a lower rate than conventional, private project financing.
The MPWSP includes the following components:
i.

Desalination Plant and associated source wells and conveyance system, which will
produce up to 9,752 acre feet per annum for system demand;

ii.

ASR of water lawfully diverted from the Carmel River and stored in the Seaside
Groundwater Basin, which may allow for an annual average storage of 1,300 acre
feet; and

MPWMD Regulation XIV.

Rule 14.1.1 was reviewed by the CPUC in its Decision Authorizing Modifications to the Rationing Plan in Rule
14.1 (D.09-07-023) of 2007. Rule 14.1.1 has been implemented by CAW in coordination with MPWMD, though its
Ordinance 137. CAW and MPWMD are developing further refinements to this plan.
10

STAFF PRELIMINARY WORKING DRAFT FOR INTERNAL USE ONLY

PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 6254(a)
DRAFT 3/10/2015 10:40 AM
iii.

GWR, which is a project that could produce up to 3,500 acre feet per annum.
CAW is pursuing GWR as an option in conjunction with, and with significant effort
on funding and other aspects of the project by, MPWMD and MRWPCA.

b. CAW has also pursued various smaller projects to make use of lawful diversions from
the Carmel River, including pursuing a permit for diversion under Table 13 of SWRCB D.
1632 (July 6, 1995), and supporting and facilitating changes to other water rights to
permit beneficial uses within CAWs service area; and
c. CAW and other Parties have supported additional water development projects within
the CAW service area, including:
i.

Efforts by Pacific Grove to recycle and reuse municipal wastewater on city-owned

golf course and cemetery; and

ii.

Efforts by Pacific Grove to capture and use storm water for non-potable uses.

3. Fish and Wildlife Protection and Enhancement Measures CAW and other Parties have
developed and implemented measures to protect and enhance fish and wildlife resources in
the Carmel River watershed, and to avoid or minimize effects to fish and wildlife associated
with extension of the CDO deadline:
a. Pursuant to a 2009 agreement between CAW, the National Oceanic and Atmospheric
Administration (NOAA) and the California Department of Fish and Wildlife (CDFW),
as amended in 2014, CAW made a one-time payment of $3.5MM in 2009, annual
payments of $1.1MM per year for 2010 through 2013, and has committed to make
annual payments of $1.1MM per year through 2016 to the California Coastal
Conservancy (CCC) for environmental protection and enhancement projects in the
Carmel River watershed;
b. Provided that NOAA and CAW mutually agree to terms for extending the 2009
agreement described in Paragraph 3.a., above, CAW is committed to making additional
annual payments of $1.1MM, to be pro-rated for any partial years until unpermitted
diversions of water from the Carmel River are replaced by legal sources of water, for use
on projects during the period of the requested extension of the CDO deadline;
i.

Funding and administrative efforts will focus, with the support of CAW and other
Parties, on projects that can be implemented during the extension period to
mitigate potential effects of the extension;

ii.

To the extent MPWMD receives funding to carry out or implement mitigation

measures that arise out of the 2009 agreement described in 3.a. above, MPWMD
will use best efforts, including by fully cooperating with NOAA, CDFW, CCC, and
the Carmel River Steelhead Association, to identify, develop, then implement

STAFF PRELIMINARY WORKING DRAFT FOR INTERNAL USE ONLY

PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 6254(a)
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projects that will convey mitigation benefits for the Carmel River before
December 31, 2020.
c. CAW has permitted, initiated construction and is currently over half way done with
construction activities to reroute the Carmel River and remove the San Clemente Dam.
Status of the various construction activities include complete excavation of the reroute
cut, nearly complete installation of the diversion dike and the moving of over one
million cubic yards of rock and sediment;
d. Subject to final approval from CDFW, NOAA, and any other agencies with permitting
jurisdiction, CAW is committed to implementing up to $2.5MM in other projects on the
Carmel River to improve fish passage and habitat. These include, in order of priority and
estimated costs: additional spawning gravel injections below San Clemente Dam using
excess gravel from the San Clemente Dam removal project or from Los Padres reservoir
should there be an insufficient quantity or type at San Clemente ($0.2MM);
improvements to the existing upstream fish passage ladder and trap at Los Padres Dam
($0.2MM); installation of a fish screen at the lower outlet pipe on Los Padres Dam
($0.8MM); a pit tagging program ($0.8MM); and a through-reservoir survival study for
Los Padres Reservoir ($0.5MM). Should the higher priority projects exceed the
estimated amounts, funding will be pulled from the lower priority projects until the
entire $2.5MM is utilized. Additionally, the estimated cost from the above projects may
be used to supplement other related projects occurring on the Carmel River (i.e., pit
tagging work being contemplated by MPWMD).
e. In July 2013 CAW requested the CPUCs approval to fund a study to determine the
ultimate disposition of the Los Padres Dam and Carmel River;
1. If the CPUC approves expenditure of these funds before the close of the second
quarter of 2015, CAW expects to:
2. Fund MPWMD to continue independently studying the fate of the Los Padres
Dam. CAW will contribute up to $1.0MM minus CAW staff time of $24K per
year to assist MPWMD. Studies will include evaluating upstream steelhead
passage at Los Padres Dam, whether the public trust resources of the Carmel
River will be adversely affected or enhanced by removal or alteration of Los
Padres Dam, what options exist to maintain physical existing surface storage in
Los Padres Reservoir, and analysis of the potential geomorphic effects of a
resumption or increase of the natural flow of sediment;
3. Work with MPWMD to Develop the scope of work and award the feasibility
study to a qualified environmental consultant by the close of the third quarter
of 2015; and
4. Complete the study during 2018.

STAFF PRELIMINARY WORKING DRAFT FOR INTERNAL USE ONLY

PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 6254(a)
DRAFT 3/10/2015 10:40 AM
f.

CAW will continue to fund mitigation measures pursuant to MPWMDs current

mitigation program through December 31, 2020.

ATTACHMENT 1
TABLE 1
Water Year
(Oct - Sep)

2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022

PROJECTED REDUCTIONS IN ILLEGAL DIVERSIONS FROM THE CARMEL RIVER (AF)

Base
Mandatory Potential
Estimated Estimated Estimated Estimated Total to
Total
Estimated
Amount Cumulative Additional ASR Project Sand City
Small
Water
Base
Estimated Amount
Annual
Desal
Amount Diverted
Rampdown Operational
Project
Supply
Amount
Reduction if Condition
Yield
Plant
Diverted w/o Valid
Output
Project
from
3 a.(2)(i)
Output
Basis of
Carmel
Right
River
10,978
10,978
10,978
10,978
10,978
10,978
10,978
10,978
10,978
10,978
10,978
10,978
10,978

549
549
670
791
912
1,912
1,912
1,912
1,912
1,912
1,912
1,912
n/a

0
0
0
0
0
0
0
1,000
1,000
1,000
1,000
1,000
n/a

145
145
145
145
145
145
145
145
145
145
145
145
145

75
290
280
270
260
250
240
230
230
230
230
230
230

0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
2,688
10,753

769
984
1,095
1,206
1,317
2,307
2,297
2,287
2,287
2,287
2,287
2,287
2,287

10,209
9,994
9,883
9,772
9,661
8,671
8,671
8,671
8,671
8,671
8,671
4,705
3,376

6,833
6,618
6,507
6,396
6,285
5,295
5,295
5,295
5,295
5,295
5,295
1,329
0

Coalition of Peninsula Businesses

A coalition to resolve the Peninsula water challenge to
comply with the CDO at a reasonable cost
Members Include: Monterey County Hospitality Association, Monterey Commercial
Property Owners' Association, Monterey Peninsula Chamber of Commerce,
Carmel Chamber of Commerce, Pacific Grove Chamber of Commerce,
Monterey County Association of Realtors, Community Hospital of the Monterey Peninsula, Associated
General Contractors -- Santa Clara-Monterey District

MEMORANDUM

TO:

DISTRIBUTION

FROM:

JOHN V. NARIGI
COALITION OF PENINSULA BUSINESSES

DATE:

MARCH 5, 201.5

RE:

PROPOSAL TO AMEND SWRCI3 ORDER WR 2009-0600

(CARMEL RIVER CDO)

Attached are preliminary comments and questions developed by the Coalition of

Peninsula Businesses. This should not be considered a final document.

Preliminary Comments
Cal-Am Proposal
SWRCB Order WR 2009-0060 (Carmel River CDO)
March 5, 2015
I. A 4 year extension of deadline is positive but we are concerned about no new
connections or intensification of use until 2020; we are not sure what "new connections"
means. Is allocated but as yet unused water intended for use a "new connection?" A few
Cal Am customers have, through substantial investment, saved on water use with the
expectation they would be able to use the freed-up water (water credit) for other uses;
they should be allowed to use the water. This could freeze the community in
commercial, residential and economic growth.
In the document we should intend to negotiate that some of the new supply (when it
comes online) is allowed for new connections or intensification of use. Human practices
promoting conservation during this period will certainly produce additional supply once
the project is complete.
There is no mention of wet years. If a wet year produces a surplus, could it be carried
over for dry year use, thus avoiding penalty?
4. We are concerned with the milestones. Are they doable, and is Cal-Am going to execute
in a timely fashion? Can we actually handle the suggested penalties without seriously
jeopardizing the economic health of the region? Currently we don't have an achievable
rationing plan. Any "miss" would put us into rationing. Will Cal Am guarantee that
shareholders, not ratepayers, will pay for fines and penalties if milestones are not
reached? The specific details of the milestones and realistic affects they could have on
the community and economy must be detailed out.
5. Some provisions in document do ask for modifications if project is held up by means
other than Cal-Am's actions or failure to progress according to schedule. The project is
already delayed 1.5 years plus due to state and local agencies being difficult and
uncooperative with Cal-Am's and the community's efforts. Provisions need to be
detailed to include local and state jurisdiction delays and delays from any legal
proceedings filed. Obstructionists are forceful and well funded in this area. The
agreement should acknowledge that SWRCB shall support Cal Am and grant relief based
on uncontrollable acts by others.
6. We are concerned that the agreement ties in GWR; the challenge it faces makes it
difficult for GWR to be completed. Issues relating to source water, water rights and
critical ag support continue and are unresolved even after years of negotiations. GWR is
not directly associated with Cal-Am or the actual desal project coming on line; the desal
should be built larger and its production could be scaled back if and when GWR comes
online, Cal Am does not control the GWR process.

7. Progress depends on Cal-Am's construction of mitigation projects. There needs to be an

independent professional review of Cal-Am's future schedule and obligations. The
proposal is requesting our approval that all requirements of Cal-Am are executed as
planned, yet there has been no independent confirmation that all requirements are
completed and tasks required for future on schedule. This would include realistic
assessment of any litigation or permit approval threats.
8. In presenting this doe, and if it is agreed to, are we foreclosing any future options? There
are several pieces to this puzzle, tremendous amount of "must do's" for Cal-Am /
numerous items that could affect the schedule and thus penalize Cal-Am and the
community.
9. With an agreement in place, will legal action against the state still be an option? This is a
right we cannot give up Will an independent group be allowed to petition others at the
state level with authority in an effort to get relief from the CDO and or move the project
forward to accelerate the schedule and overall project, thus circumventing SWRCB
and/or pressuring the CPUC.
10. As to the two graphs Best Case Worst Case. The worst case cannot be imposed. We
suggest a more realistic graph of hitting 50% of the reductions. Analysis should be made
of what affect that would have on our community, on the local economy, on local
government, etc.?
11, Rationing is not an option for residential and commercial and especially the area's #1
industry and economic driver, Hospitality. Hospitality has done 95% of what can be
accomplished, and further restrictions will affect the paying customer and will directly
impact jobs, livelihoods and the local economy, with disastrous consequences.
12. To achieve cutbacks, if required, what will be required of the residential ratepayers?
What does the actual rationing plan look like?
13. Real study and thought must be given to the unintentional consequences before this doe
moves forward. It is essential that a detailed rationing plan with public input be
developed before an amended proposal moves forward.
14. Seems odd, SWRCB cannot approve or otherwise aid in the solution to a new water
source, yet they have the authority to discipline if milestone and timelines are not met.
15. Going forward, how does the procedure work between the state and Cal-Am? What is
timeline for counter proposals? Will Cal-Am and the Authority determine a subcommittee to work with the content of modification requests with a goal to produce a
revised version for approval by participating groups?
16. The area is 1,000 afy or more below the existing CDO cutback schedule; we should
receive credit for this against any proposed cutbacks due to missing milestones and
should be clearly stated in the amended proposal.

17 The Coalition of Peninsula Businesses is willing to serve and requests to be a party to

future discussions and any committee work as it relates to any proposal to SWRCB on
the amended proposal or the development of a rationing plan.
Brief Coirinients_Cal-Ani Proposal

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: April 06, 2015

Item No: 4.

Executive Director Cullem

SUBJECT: Receive Report and Discuss the Status of the Definitive Agreement and
Funding for the Groundwater Replenishment/Pure Water Monterey
(GWR/PWM) Project.
RECOMMENDATION:
It is recommended that the TAC receive an update on the efforts of the Pollution Control
Agency and the Water Management District in securing the bi-lateral agreements, and
funding, necessary to secure a Definitive Agreement for source and product water for
the Ground Water Replenishment (GWR) project by the recently revised date of May
2015.
DISCUSSION:
At its meeting of December 1, 2014, the TAC received and discussed the "Roadmap for
a Definitive Agreement on Source Waters and Water Recycling". Progress was updated
at the TAC meetings of February 2, 2015 and March 2, 2015.
As directed by the Water Authority Board, the TAC should remain informed of its
progress on a monthly basis.
ATTACHMENTS:
Roadmap for a Definitive Agreement on Source Waters and Water Recycling as
provided December 1, 2014.

06/12

Roadmap for a Definitive Agreement

On Source Waters and Water Recycling
Task Area 1: Definitive Legal Agreement(s)

October

Nov-March

December 31
January
January/Feb
March

Meet to determine who drafts and timeline for drafting and review; Attorneys
provide first draft; Stakeholder group provides review; Public discussion
Identify and begin drafting other agreements as necessary; Determine
role/relationship to Definitive Agreement
MRWPCA MCWRA Fourth Amendment
MRWPCA Salinas Operations and Financing Agreement
MRWPCA Monterey Stormwater Agreement
MRWPCA MCWD Pipeline Lease Agreement
MPWMD MRWPCA Recycled Water Purchase Agreement
MPWMD Cal-Am Wholesale Water Sales Agreement
MRWPCA MCWRA Accounting Protocol Agreement
First Draft of Definitive Agreement circulated
Public Outreach; Modifications as necessary
Definitive Agreement Finalized

Task Area 2: Water Availability & Water Quality

Oct Nov
Dec-Jan

Fisheries review
Review water availability assumptions; Discuss operational issues; Wet year,
dry year, average year considerations; Impact on facilities & costs

Task Area 3: Financial Issues

October
Oct Jan
Nov-Dec

Dec-Jan
February
February
February
March

10% Design Capital Costs identified

Rate Study to develop interruptible rate for cost of treatment
Meet with stakeholders to discuss pro rata share and amount of capital costs
And initial Prop 218 strategies
Develop alternative CSIP funding allocations & Prop 218 strategies
rd
3 Party review of costs/facilities
Public Outreach
Finalize estimated costs, allocations, and Prop 218 strategy
Incorporate into Definitive Agreement

Task Area 4: Water Rights

October
November

January

April

Meet to establish strategy for water rights application

Meet with new SWRCB staffer; Tour of area facilities;
Confirm strategy for water rights application
Determine if project appears to be moving forward; Prepare revision to
Water rights application
If Definitive Agreement reached, file amended water rights application

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:
SUBJECT:

Date: April 06, 2015

Item No: 5.

Executive Director Cullem

Receive Report and Discuss the Status of the Externalities Study
Contract and the Cost Comparison Study for Groundwater
Replenishment and Desal

RECOMMENDATION:
It is recommended that the TAC receive an update from David Stoldt, General Manager
of the Water Management District, on the status of the Externalities Study Contract and
on the status of the Cost Comparison Study of Ground Water Replenishment (GWR) vs
Cal Ams Desal facilities.
DISCUSSION:
Integral to the CPUC decision process approving GWR as part of a new Peninsula
Water Supply system, a determination of the "externalities" considerations as well as a
cost comparison between GWR and the Cal Am Desal facilities are required.
This studies are being undertaken by the Monterey Peninsula Water Management
District (MPWMD).
Dave Stoldt provides periodic updates on the status of the two studies and will do so at
the 6 April meeting.
ATTACHMENTS:
None.

06/12

Monterey Peninsula Regional Water Authority

Agenda Report

FROM:

Date: April 06, 2015

Item No: 6.

Executive Director Cullem

SUBJECT: Receive Report, Discuss, and Make Recommendations to the

Water Authority as Appropriate on the Status of the Test Slant
Well Operation, on a "Dashboard" with 5 Variables for Future
Test Well Reports, and on Confirmation That Slant Well
Feasibility Determination by the Authority Will be Consistent
With the Criteria Used by State Regulators (CCC)
RECOMMENDATION:
It is recommended that the TAC receive an update on the status of the test
slant well, and discuss and make a recommendation to the Authority Board
on a possible "dashboard" of information for future test well updates as well
as how the Authority might best confirm that any slant well feasibility
determination it might make will be consistent with the criteria established
by the California Coastal Commission (CCC).
DISCUSSION:
Since the test slant well has been installed and is producing data, the
Governance Committee have requested that future updates, for the
reasons stated, include the following "dashboard" of information (or some
variation thereof). The TAC is requested to make any recommendations to
the Authority Board it deems appropriate with respect to this dashboard:
- 1. Gallons per minute pump rate (relative to 1800 GPM as designed). Also
provide implications if less than or more than 1800 GPM. Basic
implication is it may affect the number of wells.
- 2. Salinity (relative to the estimate of 95% salt water). Also provide
implications if less than or more estimate. Basic implication is it may
affect the amount of water that must remain in Salinas Basin. This
affects costs and amount of water for Peninsula.
- 3. Drawdown of monitoring wells. How much drawdown was considered

06/12

de minimis in Coastal Commission mitigation? Basic implication is it

may affect point that well is not allowed to do harm.
- 4. Time to equilibrum. We hope we will reach steady state quickly and we
would like to know how fast we appear to be doing so.
- 5. Other constituents (affects filtration, etc)
The TAC also needs to discuss and make a recommendation to the
Authority Board as to how best to confirm its intention to make future
findings as to the feasibility of slant test wells consistent with the criteria
and methodology established by the California Coastal Commission.
ATTACHMENTS:
None