Monterey Regional Water Pollution Control Agency

Transcription

1 Monterey Regional Water Pollution Control Agency Dedicated to meeting the wastewater and recycled water needs of our member agencies, while protecting the environment. AGENDA RECYCLED WATER COMMITTEE (RWC) Ralph Rubio, Chair Libby Downey, Dave Pendergrass, Ron Stefani and John M. Phillips [Dennis Allion Alternate] DATE: Thursday, October 8, 2015 TIME: LOCATION: 3:00 pm Admin Conference Room 5 Harris Court, Building D Monterey, CA CALL TO ORDER 2. ROLL CALL 3. PUBLIC COMMENTS Anyone wishing to address the Committee on matters not appearing on the Agenda may do so now. Comments on any other matter listed on the Agenda are welcome at the time the matter is being considered by the Committee. 4. APPROVE RWC MINUTES/REPORT FOR SEPTEMBER 17, UPDATE ON THE GROUNDWATER REPLENISHMENT (GWR) PROJECT AND URBAN RECLAMATION PROJECTS 6. CONSIDER ESTABLISHING RATE FORMULA FACTORS FOR PRIMARY AND SECONDARY TREATMENT OF INTERRUPTIBLE SOURCE WATERS 7. CONSIDER REVISION OF COST SHARING AGREEMENT WITH CITY OF SALINAS FOR SALINAS SOURCE WATER DIVERSION PROJECTS 8. STAFF REPORTS 9. COMMITTEE MEMBER COMMENTS/REPORTS Committee Members may ask a question for clarification, make a brief announcement or make a brief comment or report on his or her own activities within the jurisdiction of the committee. No discussion or action is appropriate other than referral to staff for consideration or setting a matter as a future agenda item. 10. ADJOURNMENT Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey, Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

2 * * * * * * * * * This Committee Meeting Notice and Agenda was hereby posted at: MRWPCA 5 Harris Court, Building D, Monterey, California POSTED: Monday, October 5, 2015 By: /s/ Betty Nebb Executive Assistant/Clerk to the Board of Directors 2

3 Monterey Regional Water Pollution Control Agency Dedicated to meeting the wastewater and recycled water needs of our member agencies, while protecting the environment. C O M M I T T E E M I N U T E S / R E P O R T DRAFT RECYCLED WATER COMMITTEE Thursday, September 17, :00 pm to 4:36 pm 5 Harris Court, Building D Monterey, California AGENDA: 1. CALL TO ORDER 2. ROLL CALL 3. PUBLIC COMMENTS 4. APPROVE AUGUST 13, 2015 RWC MINUTES 5. UPDATE ON CPUC WATER PROCEEDINGS (A ), MONTEREY PENINSULA REGIONAL WATER AUTHORITY, AND TECHNICAL ADVISORY COMMITTEE 6. UPDATE ON THE GROUNDWATER REPLENISHMENT (GWR) PROJECT AND URBAN RECLAMATION PROJECTS 7. UPDATE ON PURE WATER MONTEREY AGREEMENT NEGOTIATIONS 8. CONSIDER UPDATE ON MOU REGARDING SOURCE WATERS AND WATER RECYCLING 9. STAFF REPORTS 10. COMMITTEE MEMBER COMMENTS/REPORTS 11. RECESS TO CLOSED SESSION A. Conference with Real Property Negotiators Property: Recycled Water Agency Negotiator: Paul Sciuto, General Manager Negotiating Parties: Monterey County Water Resources Agency Under Negotiation: All Terms and Conditions B. Conference with Real Property Negotiators Property: Wastewater/Pipeline Agency Negotiator: Paul Sciuto, General Manager Negotiating Parties: Marina Coast Water District Under Negotiation: All Terms and Conditions Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey, Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

4 Minutes Recycled Water Committee September 17, 2015 DRAFT 12. POSSIBLE ACTION ON CLOSED SESSION ITEMS 13. ADJOURNMENT PRESENT: ABSENT: PRESENT: Recycled Water Committee Ralph Rubio, Chair Ron Stefani John Phillips Libby Downey David Pendergrass None MRWPCA Staff: Paul Sciuto General Manager Stephen Hogg Assistant General Manager [arrived 3:05] Rob Wellington Legal Counsel [arrived 3:09] Tori Hannah Chief Financial Officer Bob Holden Principal Engineer Mike McCullough Gov. Affairs Administrator Betty Nebb Executive Assistant OTHERS PRESENT: Gary Petersen City of Salinas [arrived at 3:20] 3. PUBLIC COMMENTS At 3:01 pm, Chair Rubio called for Public Comments; none received. 4. APPROVE AUGUST 13, 2015 RWC MINUTES Chair Rubio stated that the August 13, 2015 draft RWC minutes are presented to the Committee for their approval. ACTION TAKEN: On a motion by Mr. Pendergrass, seconded by Mr. Stefani, the Recycled Water Committee unanimously approved the August 13, 2015 RWC Minutes. [Yes: Rubio, Downey, Pendergrass, Stefani, and Phillips] 5. UPDATE ON CPUC WATER PROCEEDINGS (A ), MONTEREY PENINSULA REGIONAL WATER AUTHORITY, AND TECHNICAL ADVISORY COMMITTEE Mr. Sciuto announced that the MPRWA meeting for September 10 was cancelled. The next TAC meeting is scheduled for October 5, He stated that he and Mr. Stoldt (MPWMD) made comments at the July 9 MPRWA meeting about the reliability of the GWR Project and provided an update on the pending agreements. 2

5 Minutes Recycled Water Committee September 17, 2015 DRAFT Regarding the CPUC Phase 2 Decision, Mr. Sciuto stated that the Monterey Peninsula Water Supply Project EIR public comment period closing has been delayed which means the Water Purchase Agreement could also be further delayed. Therefore, the Settling Parties may ask the CPUC Administrative Law Judge (ALJ) to conduct a Status Conference related to Phase 2 Decision, unless the Settling Parties can agree to a schedule before that Status Conference is convened. MRWPCA staff and consultants believe the Agency should request testimony in December 2015 or January 2016, and that the GWR Water Purchase Agreement part of the decision be made before the desal approval allowing the project to move forward. Information Only No Action is Required 6. UPDATE ON THE GROUNDWATER REPLENISHMENT (GWR) PROJECT AND URBAN RECLAMATION PROJECTS Mr. Sciuto reported that August activities centered on completing and reviewing the first administrative draft of the FEIR. He announced that the Special Board meeting on October 8 will be to certify the FEIR there will be a 30-day period following the certification for any challenges. By November, staff anticipates the FEIR and key agreements will be in place which is key to getting 1% financing for the State Revolving Fund (SRF) loan. Mr. Sciuto added that once the SRF application is finished, the approval process takes six months before funding is available. Mr. Sciuto reported on a recent tour of the not-yet-completed Advanced Water Treatment (AWT) Demonstration Facility by a group from the National Water Resources Association that seemed to be very successful. Mr. Holden reviewed project expenditures and noted that costs are on track. He stated that a new category has been established that will track project costs incurred by MPWMD (mostly related to outreach efforts that are part of the GWR budget). The Agency is responsible for 25% of those costs. Discussion followed regarding FORA s interest in the GWR project. Mr. Rubio stated that FORA is concerned only to the level of what is reflected in MCWD s budget as it pertains to projects at or with Fort Ord. Mr. Holden presented the updated Gantt chart for the project schedule. He explained the meaning of the colored bars, and Ms. Downey suggested a legend on the chart to describe what the colors represent. Information Only No Action is Required 7. UPDATE ON PURE MONTEREY AGREEMENT NEGOTIATIONS Mr. Sciuto reported the progress being made on the new Definitive Agreement with MCWRA. He explained that the latest draft is now being reviewed by the attorneys. Costs have been defined as well as possible; however, staff would like another opportunity for review and more time is needed to finalize some of the exhibits to the 3

6 Minutes Recycled Water Committee September 17, 2015 DRAFT agreement. Mr. Sciuto stated that a meeting is being scheduled to meet with the Chair and Vice Chair of the MCWRA and MRWPCA Boards to review and discuss this initial draft of the new agreement. Staff plans to bring a completed agreement to the MRWPCA and MCWRA Board of Directors on October 26 and the Board of Supervisors on October 27. Discussion followed about the new agreement, and Mr. Sciuto stated it is consistent with the 5-party MOU that was signed. The Third Amendment is gone GWR has first rights on new water with additional water going to the growers; and the Peninsula will still have winter water that the growers don t use. Discussion continued regarding water going to the ocean and the need to capture that water. Mr. Phillips asked about the meetings with landowners near the Blanco Drain. Mr. Sciuto stated that there has only been one meeting; however, they asked good questions and it has been helpful to understand their concerns. Mr. Sciuto reported that Mr. McCullough continues to work the Salinas staff. Mr. Petersen, City of Salinas, reported that their meetings have been productive while they continue to define the City s needs and the project s needs. Mr. Sciuto noted that Assistant General Manager, Stephen Hogg, may be able to help define the City s needs due to his years of experience with the City of Fresno. Staff is hopeful to have this agreement in place by the end of October. Regarding the Water Purchase Agreement, Mr. Sciuto reported that staff is awaiting a revision from Cal Am. Most terms of the agreement are in place; some cost issues still need to be refined, including insurance costs. Some discussion followed regarding the complexities of how to value the cost for insurance and liability risks. Mr. Sciuto suggested that it may be prudent to hire a risk management professional in order to get information for the public. Committee consensus seemed to be in favor of hiring a consultant to frame the liabilities. Mr. Sciuto maintained that the tentative schedule is to have a completed agreement by the end of October Mr. Sciuto reported that the MCWD Board reported out of Closed Session at their recent Board meeting that they agreed to the additional Points of Tentative Agreement. He stated that one member voiced the need to have discussions with FORA, and Mr. Rubio stated that FORA doesn t have to consider these negotiations until there is an agreement between the two agencies. Mr. Sciuto stated that talks with FORA staff have been helpful in order to know if they will be accepting of MCWD s recycled water which meets the intent of our agreement. Mr. Sciuto noted that this item would be discussed further in the Closed Session item on the agenda. Information Only No Action is Required 4

7 Minutes Recycled Water Committee September 17, 2015 DRAFT 8. CONSIDER UPDATE ON MOU REGARDING SOURCE WATERS AND WATER RECYCLING Mr. Sciuto stated that the MOU signed by five entities in the fall of 2014 will expire at the end of September. Staff is presenting a recommendation to extend until the end of December to continue the dialogue for the various agreements included in the Definitive Agreement. Because progress is being made on all agreements, the expectation continues that most will be completed by the end of October. These agreements include: MPWMD, Cal Am and MRWPCA MCWRA and MRWPCA MRWPCA MRWPCA and Salinas MRWPCA and MCWD Water Purchase Agreement Indirect Costs Interruptible Rate for new Source Waters Agreement for Produce Wash Water Points of Tentative Agreement Mr. Rubio asked what language could be used in the agreement to allow an automatic extension; and Mr. Sciuto suggested that with five entities it is more difficult to coordinate and an imposed deadline helps keep the schedule on track. ACTION TAKEN: On a motion by Ms. Downey, seconded by Mr. Stefani, the Recycled Water Committee unanimously recommends Board approval to extend the Definitive Agreement completion deadline and direct Chair De La Rosa to sign the MOU Extension regarding Source Waters and Water Recycling (Definitive Agreement). [Yes: Rubio, Downey, Pendergrass, Stefani, and Phillips] 9. STAFF REPORTS Mr. Sciuto reported on his attendance at the 30 th Annual WateReuse Symposium held on September in Seattle, Washington. At the Conference, Pure Water Monterey was awarded the WateReuse Agricultural Project of the Year for being a multi-benefit, integrated, regional solution that will provide a water recycling model for other regions in drought-stricken California. He added that he, Dave Stoldt (MPWMD), Supervisor Potter and Gary Petersen (City of Salinas) served on a conference panel to discuss this collaborative effort. Mr. Sciuto stated that the AWT Demonstration Facility is just about ready for the upcoming California Special Districts Association tour. There were a couple of minor issues, but all will be ready for the tour on Monday, September 22. Mr. Sciuto reported that staff received a draft this week from the Regional Water Quality Control Board regarding the proposed fine for the spill in Pacific Grove. Staff is planning to seek a settlement hearing to possibly reduce the fine and learn more about the remedies that can be implemented. 5

8 Minutes Recycled Water Committee September 17, 2015 DRAFT 10. COMMITTEE MEMBER COMMENTS\REPORTS Ms. Downey reported that she participated in a tour of the San Clemente Dam Removal Project. It is the largest dam removal project ever to occur in California and one of the largest to occur on the West Coast. When completed, the project will remove the 106 foot high antiquated dam and implement a watershed restoration process that will bring the Carmel River back to life. Ms. Downey also reported that she met with Mr. Jeff Gorman who is running against Ms. Barbara Bass Evans for District 3 on the MPWMD Board. She suggested that our General Manager meet with him to provide some historical background about our communities water issues. [At 4:00 pm Chair Rubio recessed Open Session and commenced Closed Session.] 11. RECESS TO CLOSED SESSION A. Conference with Real Property Negotiators Property: Recycled Water Agency Negotiator: Paul Sciuto, General Manager Negotiating Parties: Monterey County Water Resources Agency Under Negotiation: All Terms and Conditions B. Conference with Real Property Negotiators Property: Wastewater/Pipeline Agency Negotiator: Paul Sciuto, General Manager Negotiating Parties: Marina Coast Water District Under Negotiation: All Terms and Conditions [At 4:35 pm Chair Rubio reconvened Open Session.] 12. POSSIBLE ACTION ON CLOSED SESSION ITEM Legal Counsel Wellington announced that in the Closed Session the Committee had taken up the two real property negotiation matters as listed on the agenda, had received information from its negotiator (the General Manager) regarding each, and that no reportable action was taken. 13. ADJOURNMENT At 4:36 pm, with no further business, Chair Rubio adjourned the Recycled Water Committee meeting to the next regularly scheduled Recycled Water Committee meeting on Thursday, October 8, 2015 at 3:00 pm. 6

9 Monterey Regional Water Pollution Control Agency Dedicated to meeting the wastewater and recycled water needs of our member agencies, while protecting the environment. RECYCLED WATER COMMITTEE October 8, 2015 INFORMATION ITEM UPDATE ON GROUNDWATER REPLENISHMENT (GWR) PROJECT AND URBAN RECLAMATION PROJECTS FROM: Bob Holden Principal Engineer Budgeted Amt: N/A Cost Estimate: N/A Approval: GM Legal CFO SCHEDULE Completed Events: September: Complete the FEIR. Received Cal Am s fifth revision to the Water Purchase Agreement. Continued revising draft agreement with City of Salinas. Approved talking points with MCWD. Continued revising MRWPCA/MCWRA agreement and establishing overhead rate. Began operating the Demonstration Facility and conducted the second tour. Continued helping the City of Salinas modify their industrial waste discharge location. Revising SRF application. Continue to work with Sacramento about MCWRA s water rights application. Recent/Upcoming Events: October: Certify FEIR and approve project. Finalize Water Purchase Agreement with Cal Am. Draft agreement with MCWD. Complete agreements with City of Salinas and MCWRA. Complete touch-up work of the Demonstration Facility and share with Board. Continue helping City of Salinas modify their waste discharge permit. Resume the Externalities Study and financial reports Critical Events (A revised simplified Gantt chart scheduled is attached): CEQA: October 8 should complete FEIR. Work is continuing on CEQA+/ Permitting work. Design/Build: Providing feedback to draft report and Gantt chart for the different components of the different pieces of work. Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey, Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

10 Recycled Water Committee September 17, 2015 Definitive Agreement: Significant progress on agreements with MCWD, MCWRA, and City of Salinas. CPUC Phase 2 Decision: The CPUC Administrative Law Judge (ALJ) will conduct a Status Conference October 12 in San Francisco related to the Phase 2 schedule as requested by the Settling Parties Settling Parties. Information only - no action is requested. A. EXPENDITURES Brine/Outfall (UR 504) Cal Am continues periodic pumping of water from the pilot slant well. Cal Am has requested a revised permit from the California Coastal Commission (CCC) to allow full resumption of pumping. The CCC will consider that permit amendment on October 6. Fiscal year 2015/2016 expenditures were 22% of budget on September 30, Brine/Outfall UR-504 FY 2015/16 Approved Budget Costs to Date FY 2015/16 Costs during September 2015 Internal Labor 20,000 2, Consultants - 6, Legal 20, Total Budget or Expenditures Cal Am Reimbursement** Total Agency Contributions *** *Depreciation to be paid by Cal Am is removed from budget. 40,000* 9, , ** - 370,365 9, **Cal Am billed for $248,484 in FY15. Future expected reimbursements from Cal Am for Short Term Lease: $96,365 in FY16, $54,140 in FY17 (more if lease is extended after 2 years). In addition, expect $313,715 (FY16, or 17) from Cal Am for Long Term (Brine) Lease. ***Assumes that Cal-Am reimburses the Agency at least $410,365 in FY 15/16 to partially cover $600,158 in FY 14/15 expenditures.

11 Recycled Water Committee September 17, 2015 Groundwater Replenishment (UR 502) Expenditures were 15% of budget on September 30, 2015 for Fiscal Year 2015/2016. Technical Consultants Expenditures from FY 14/15* FY 2015/16 Approved Budget Costs to Date FY2015/16 FY 2015/16 Costs during September ,941,369 2,016, ,542 47,497 Legal 1,136, ,000 46,963 0 Environmental 2,754, ,731 82,542 24,159 Internal Labor 1,982, , ,583 84,753 MPWMD Consultants 281, ,000 70,491 16,200 TOTALS 11,096,905 3,814, , ,609 Funding and Reimbursements Funding from FY 14/15* FY 2015/16 Approved Budget Actual Funding during FY 2015/16 Watermaster 100, MPWMD 4,996,715 2,832,576 0*** SRF (Facilities) Grant 74,883 37,442** 0 BOR Title 16 (Feasibility) WaterSMART Grant 149, Total Agency Contributions 5,775, , ,121 Information only - no action is requested. * Amounts included in the Internal Labor column reflect salaries that were previously assigned as project costs but may be adjusted as overhead, pending a final audit of prior year expenditures. ** Amount received early (in FY 14/15) *** Invoiced MPWMD for $430,543 on June 30, Attachment A: Groundwater Replenishment Project Gantt Chart

12 ID Task Name Duration Start Finish 2016 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug ' Definitive Agreement Process 293 days Wed 7/1/15 Fri 8/12/16 Legal 89 days Wed 7/1/15 Mon 11/2/15 Definitions 10 days Wed 7/1/15 Tue 7/14/15 Talking Points 10 days Wed 7/1/15 Tue 7/14/15 1st Draft 14 days Wed 7/15/15 Mon 8/3/15 Draft for Group 40 days Tue 8/4/15 Mon 9/28/15 Group Review 19 days Tue 9/29/15 Fri 10/23/15 Board Approvals 6 days Mon 10/26/15 Mon 11/2/15 MCWD Agreement 90 days Wed 7/1/15 Tue 11/3/15 Talking Points 50 days Wed 7/1/15 Tue 9/8/15 Draft Agreement 34 days Wed 9/9/15 Mon 10/26/15 Board Approvals 6 days Tue 10/27/15 Tue 11/3/15 Water Availability & Quality 46 days Wed 7/1/15 Wed 9/2/15 Revise Availability 26 days Wed 7/1/15 Wed 8/5/15 Revise Quality 20 days Thu 8/6/15 Wed 9/2/15 SWRCB Water Rights 293 days Wed 7/1/15 Fri 8/12/16 Amended Application to SWRCB 25 days Wed 7/1/15 Tue 8/4/15 SWRCB Review 65 days Wed 8/5/15 Tue 11/3/15 Public Notice 23 days Wed 11/4/15 Fri 12/4/15 Hearing 120 days Mon 12/7/15 Fri 5/20/16 Rights Issued 60 days Mon 5/23/16 Fri 8/12/16 Salinas Ag Wash Water Rights 90 days Wed 7/1/15 Tue 11/3/15 Draft Agreement 50 days Wed 7/1/15 Tue 9/8/15 Final Agreement 30 days Wed 9/9/15 Tue 10/20/15 Board & Council Approvals 10 days Wed 10/21/15 Tue 11/3/15 Financial Issues 84 days Wed 7/1/15 Mon 10/26/15 Blanco Drain Revised Data 38 days Wed 7/1/15 Fri 8/21/15 Revised Capital and O&M Cost Estimates 42 days Wed 7/1/15 Thu 8/27/15 Determine cost sharing 16 days Fri 8/28/15 Fri 9/18/15 Draft Agreement 10 days Mon 9/21/15 Fri 10/2/15 Final Agreement 8 days Mon 10/5/15 Wed 10/14/15 Board Approvals 8 days Thu 10/15/15 Mon 10/26/15 Interruptible Rate Approval 72 days Wed 7/1/15 Thu 10/8/15 Externality Study 47 days Mon 9/21/15 Tue 11/24/15 Alternate Delivery Method Analysis 214 days Wed 7/1/15 Mon 4/25/16 Initial Study 74 days Wed 7/1/15 Mon 10/12/15 Legal Review Design Build 20 days Tue 10/13/15 Mon 11/9/15 Write RFP for Design/Build 100 days Tue 10/13/15 Mon 2/29/16 Publish RFP for Design/Build 20 days Tue 3/1/16 Mon 3/28/16 Select Consultant for Design/Build 15 days Tue 3/29/16 Mon 4/18/16 Award Contract for Design/Build 5 days Tue 4/19/16 Mon 4/25/16 SRF Loan 146 days Wed 7/1/15 Wed 1/20/16 Project: GWR Schedule Date: Fri 10/2/15 Task Split Progress Milestone Summary Project Summary External Tasks External Milestone Deadline GWR Schedule Page 1 Printed: Fri 10/2/15

13 ID Task Name Duration Start Finish 2016 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug ' Resolutions 19 days Wed 7/1/15 Mon 7/27/15 Revised Resolutions 53 days Tue 7/28/15 Thu 10/8/15 Application Revision 16 days Fri 10/9/15 Fri 10/30/15 SWRCB Review 33 days Mon 12/7/15 Wed 1/20/16 GWR CEQA 123 days Wed 7/1/15 Fri 12/18/15 Admin Draft FEIR 46 days Wed 7/1/15 Wed 9/2/15 FEIR Published 17 days Thu 9/3/15 Fri 9/25/15 Board Certification & Acceptance 9 days Mon 9/28/15 Thu 10/8/15 Statute of Limitations 22 days Fri 10/9/15 Mon 11/9/15 Multi-Party Definitive Agreement 10 days Mon 12/7/15 Fri 12/18/15 CPUC 360 days Wed 7/1/15 Tue 11/15/16 Status Conference 1 day Mon 10/12/15 Mon 10/12/15 Outline for Testimony 5 days Mon 8/10/15 Fri 8/14/15 Allocation of Responsibilities for Testimony 20 days Mon 8/17/15 Fri 9/11/15 Prepare Testimony 40 days Mon 9/14/15 Fri 11/6/15 Testimony 10 days Mon 12/21/15 Fri 1/1/16 Evidentiary Hearings & Workshops 50 days Mon 1/4/16 Fri 3/11/16 Proposed Decision 40 days Mon 3/14/16 Fri 5/6/16 CPUC Phase 2 Decision: Approve WPA/GWR 1 day Mon 5/9/16 Mon 5/9/16 Permits 332 days Wed 7/1/15 Thu 10/6/16 Federal CEQA+ 260 days Fri 10/9/15 Thu 10/6/16 State 130 days Fri 10/9/15 Thu 4/7/16 Local 260 days Wed 7/1/15 Tue 6/28/16 RWQCB and DDW SWRCB 214 days Wed 7/1/15 Mon 4/25/16 Engineering Report 134 days Wed 7/1/15 Mon 1/4/16 Source Control Program 65 days Tue 10/6/15 Mon 1/4/16 Division of Drinking Water approval 40 days Tue 1/5/16 Mon 2/29/16 RWQCB 40 days Tue 3/1/16 Mon 4/25/16 Financing Plan 42 days Fri 8/28/15 Mon 10/26/15 Revenue Requirement Analysis 42 days Fri 8/28/15 Mon 10/26/15 Watermaster Storage Agreement 47 days Fri 9/25/15 Mon 11/30/15 Water Purchase Agreement 93 days Wed 7/1/15 Fri 11/6/15 Draft 4 29 days Wed 7/1/15 Mon 8/10/15 Draft 5 33 days Tue 8/11/15 Thu 9/24/15 Final Agreement 31 days Fri 9/25/15 Fri 11/6/15 MPWSP CEQA/NEPA 360 days Wed 7/1/15 Tue 11/15/16 DEIR Circulation 220 days Wed 7/1/15 Tue 5/3/16 FEIR Published 140 days Wed 5/4/16 Tue 11/15/16 Design, Construction & Start-up GWR 460 days Tue 5/10/16 Mon 2/12/18 Design 120 days Tue 5/10/16 Mon 10/24/16 Construction 300 days Tue 10/25/16 Mon 12/18/17 Start-up 40 days Tue 12/19/17 Mon 2/12/18 Project: GWR Schedule Date: Fri 10/2/15 Task Split Progress Milestone Summary Project Summary External Tasks External Milestone Deadline GWR Schedule Page 2 Printed: Fri 10/2/15

14 Monterey Regional Water Pollution Control Agency Dedicated to meeting the wastewater and recycled water needs of our member agencies, while protecting the environment. RECYCLED WATER COMMITTEE OCTOBER 8, 2015 ACTION ITEM CONSIDER ESTABLISHING RATE FORMULA FACTORS FOR PRIMARY AND SECONDARY TREATMENT OF INTERRUPTIBLE SOURCE WATERS From: Bob Holden Principal Engineer Approval: GM Legal CFO BACKGROUND: The idea for an interruptible rate was developed as part of the Pure Water Monterey Project. There was a need to provide primary and secondary treatment for waters not provided by MRWPCA sewage ratepayers. The initial rate was established to allow for some testing of the Ag Wash water and Lake El Estero water. The Recycled Water Committee and the Board have been involved in the process for some time. The Board actions related to Interruptible Rate: March 2013: approved diversion of City of Salinas Ag Wash water for a two-day period in April September 2013: approved another two- to four-day diversion for the GWR bench scale testing. November 2013: approved diversion of Ag Wash water and Lake El Estero water to the RTP for several days so it could be utilized by the GWR pilot facilities. February 2014: approved diverting Lake El Estero, Ag Wash, and Salinas storm water to the RTP for up to two months (April 1, 2014 through May 31, 2014) as part of the GWR pilot testing and charging the City of Salinas one-half the incremental rate of $120 per acre-foot. May 2014: raised the interruptible rate to $179 per acre-foot for Ag Wash water diversion, for the benefit of the growers starting June 1, The Board also approved a one month extension (through June 30, 2014) for Ag Wash water diversions. Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey, Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

15 RECYCLED WATER COMMITTEE October 8, 2015 Page 2 June 2014: Approved Produce Wash Water Utilization Agreement for the period July 1, 2014 through October 31, October 2014: approved an extension to the agreement in to allow the City of Salinas to divert flows for up to 6 weeks at the same interruptible rate for construction related diversions of the new Produce Wash water pipeline. March 2015: approved an extension of the diversions through June 30, The extension has a provision that it automatically extends if one of the parties does not object. That agreement is still in place. The concept of the interruptible rate was developed over time with a legal opinion from Colantuono, Highsmith, Whatley, PC and financial consultant Municipal Financial Services (MFS). Essentially, if the fee is reasonable compared with other fees and is voluntary (not imposed) it is not covered by Propositions 218 or 26. The type of water and facilities considered are described on the attached Interruptible Rate Qualifications. The new rate only applies to waters that do not contain sewage, have another legal method of treatment/disposal, and only with flows within the existing capacity of MRWPCA s infrastructure. The broad responsibilities for the Blanco Drain, Reclamation Ditch, Tembladero Slough, Ag Wash, and Salinas Storm Waters, most of the New Source Waters within the Pure Water Monterey project, are described briefly. The detailed responsibilities are found in the MCWRA/MRWPCA agreement being developed. The Qualifications describe in more detail the requirements and responsibilities for any other entity wishing to provide MRWPCA with water. For most of the new source waters will be waters from either the City of Salinas or from MCWRA. As such, the costs will be allocated to the actual user according to the agreement currently being drafted. The Ag Wash water interruptible rate was estimated in February 2014 and updated in May 2014 based on FY14 budget data. MFS reviewed the Ag Wash water rate. MFS agreed with the concept of an interruptible rate that does not require a capacity fee and with a user fee different from the fees charge to other types of users. MFS developed a series of interruptible rates (a different rate for each type of water) which were relatively similar to those developed by staff. The MFS rates were comprised of a large portion of MRWPCA s existing debt service; while staff s calculation was based on usage of power, chemicals, maintenance, sludge handling, and indirect costs. The interruptible rate schedules presented in the attached document reference the FY 105/16 Budget, along with staff s method of calculation. Staff thought this method would be more understandable to end users and consistent with the concept of incremental costs associated with the new water. MCWRA concurred with this concept. MRWPCA charges non-standard users according to three formulas based on the flow, the amount of decaying material (total biochemical oxygen demand or BOD) and the amount of solids (total suspended solids or SS). The composite, non-flow related, costs for the pump station and treatment plant have been allocated to develop the factors for each of the three equations, shown below:

16 RECYCLED WATER COMMITTEE October 8, 2015 Page 3 Equation 1 (Flow) Equation 2 (BOD) Equation 3 (SS) is based on pump station power plus the treatment plant electrical power is based on the chemicals used (pump station and treatment plant) is based on the sludge costs (including a 26% factor for labor use) plus repair costs (including a 100% factor for labor use) Table 1: Proposed Rate Equation Factors for FY15/16 and FY16/17: Equation Factors Sewage Rate FY15/16 Interruptible Rate FY15/16 Interruptible Rate FY16/17 Flow $666,000 $71, $74, BOD $789 $ $ SS $326 $ $ Table 2: Those rate equation factors result in the following interruptible rates: Water Type May 2014 Estimates Proposed FY15/16 Rate Proposed FY16/17 Rate Ag Wash Water $ $ $ Blanco Drain $73.76 $73.90 $76.34 Reclamation Ditch $75.83 $76.92 $79.46 Pond Water (Ag Wash $72.75 $83.20 $85.95 and Storm) Tembladero Slough $95.51 $91.02 $94.02 Salinas Storm Water $75.85 $68.52 $70.78 Lake El Estero $68.66 $68.32 $70.57 The above rates are based on the observed water strength and flows within the Pure Water Monterey DEIR. Charges are based on the flow, BOD, and SS plus the estimated operational costs. These rates are shown on the attached Interruptible User Rate FY 15/16 Form and Interruptible User Rate FY15/16 Applied to Ag Wash Water as an example. The proposed FY16/17 rates are based on the Board approved 3.3% rate increase next year. The rate will be reevaluated for FY17/18 during the budget process. RECOMMENDATION: That the Committee recommends the Board establish an Interruptible Rate following the description in the Interruptible Rate Qualifications (Attachment B) and establish the three Interruptible Rate Equation Factors listed in Table 1, above, for fiscal years 2015/16 and 2016/17. Attachment 1: Interruptible Rate Qualifications Attachment 2: Interruptible User Rate FY 15/16 Attachment 3: Interruptible User Rate FY 15/16 Applied to Ag Wash Water

17 INTERRUPTIBLE RATE QUALIFICATIONS MRWPCA is proposing a new rate for accepting discharges of industrial wastewater, stormwater, groundwater, surface waters, or other wastewater to MRWPCA s conveyance system and ultimately the Regional Treatment Plant on a seasonal or interruptible basis. To qualify for this rate, MRWPCA has developed the following eligibility criteria. BLANCO DRAIN, RELAMATION DITCH, TEMBLADERO SLOUGH, AG WASH, AND SALINAS STORM WATER MCWRA shall be responsible for obtaining water rights for Blanco Drain, Reclamation Ditch, and Tembladero Slough MRWPCA shall obtain use of Ag Wash and Storm waters from the City of Salinas MRWPCA shall be responsible for CEQA, design, construction, maintenance, and operation of the facilities MRWPCA shall own the facilities Pure Water Monterey and MCWRA shall be responsible for the capital and replacement costs The water user shall pay the costs to extract the water, send it to MRWPCA facilities, pump the water to the Regional Treatment Plant, provide primary and secondary treatment, provide for insurance, lab testing, telemetry, and replacement costs. ELIGIBILITY CRITERIA FOR THE INTERRUPTIBLE RATE FOR WATERS OTHER THAN THOSE STATED ABOVE The discharger would be required to obtain and comply with a wastewater discharge permit issued by MRWPCA s Source Control Division that includes discharge limits, prohibitions, self-monitoring, spill control, reporting and other provisions in accordance with MRWPCA s Wastewater Discharge Ordinance. The water source shall not contain domestic sewage as verified by the MRWPCA s Source Control Division. The water source shall not be from a groundwater remediation site. DISCHARGER S RESPONSIBILITIES The discharger must provide water quality data for the proposed discharge so that MRWPCA can determine if the discharge requirements per the Wastewater Discharge Ordinance, including compliance with MRWPCA s permits and protection of recycled water can be achieved. The revised permit application clarifies the number of samples, analyses, reporting levels, etc. The discharger will be responsible for the costs related to developing and implementing the MRWPCA water quality objectives. The discharger must submit design specifications for the connection to MRWPCA s collection system, including mechanical and electrical components that must be reviewed and approved by the MRWPCA s Engineering, Operations, and Maintenance Departments prior to construction. Flow metering and sampling ports shall be included in the diversion facilities. Discharger shall be responsible for the capital cost and cost to maintain the connection. The discharger must allow MRWPCA to control the amount, timing, and duration of the discharge through motorized valves using a SCADA connection with MRWPCA s RTP and continuous flow metering. MRWPCA has the authority and access to reduce or terminate the discharge. The discharger, if needed, shall have pre-treatment for the removal of trash and/or other unacceptable discharges as identified in the newly created discharge permit. The discharger must have an alternative legal means of disposing of the wastewater should MRWPCA discontinue the diversion. MRWPCA shall reduce or shut off flow when needed so that existing flow capacities of MRWPCA facilities will not be exceeded. Discharger shall have no claim against MRWPCA for using its alternate disposal method. The discharger will not have a connection fee as a discharger, will not be allowed to exceed existing capacity of MRWPCA infrastructure, and will not be given an allocation or right to existing capacity. The discharger must agree to pay the appropriate fees associated with diverting and treating the water in accordance with proposed Interruptible Rate Formula. These fees may include billing, source control and other administrative costs relating to this rate. Fees for MRWPCA to operate and maintain the diversion facilities will also be include in the rate. MRWPCA S RESPONSIBILITIES MRWPCA will update the Interruptible Rate whenever the MRWPCA rate model is updated. If modifications to the rate are made, each discharger will be notified as part of the budget review process. Once the diversion facilities are installed and meet MRWPCA s criteria, MRWPCA will be responsible for the preventative maintenance of the equipment and infrastructure (at dischargers cost as noted above). MRWPCA will inspect and monitor the discharge, and if necessary take enforcement action for permit violations in accordance with MRWPCA s Wastewater Discharge Ordinance and Enforcement Response Plan.

18 MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY INTERRUPTIBLE RATE FORMULA FOR FY 2015/16 Effective 11/1/2015 USER NAME ACCT # CATEGORY INTERRUPTIBLE SOURCE OF DATA DATE CALCULATED BY L SYNSTEBY COMMENTS where K = Annual user charge for each user V = Average daily sewage flow in MGD B = Average sewage BOD concentration in mg/l S = Average sewage SS concentration in mg/l K = (71, x V) + ( x V x B) + ( x V x S) 71, X 0.00 (V) X (V) (B) X (V) (S) ANNUAL USER CHARGE 0.00 ANNUAL CUSTOMER CHARGE 2.75 TOTAL ANNUAL CHARGE 2.75 ADDITIONAL ANNUAL CHARGES NOTES: MAINTENANCE 0.00 $0 IF MAINTAINED BY OTHERS INSURANCE 0.00 $0 IF OW NED BY OTHERS LAB TESTING 0.00 $0 IF TESTED BY OTHERS TELEMETRY 0.00 $0 IF PROVIDED BY OTHERS OR DOES NOT EXIST REPLACEMENT FUND 0.00 $0 IF OW NED BY OTHERS TOTAL ANNUAL CHARGES 2.75 $/AF $/mg (Calculated based on strength and flow) (Calculated based on strength and flow)

19 MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY INTERRUPTIBLE RATE FORMULA FOR FY 2015/16 APPLIED TO AG WASH WATER Effective 11/1/2015 USER NAME Ag Wash Water ACCT # CATEGORY INTERRUPTIBLE SOURCE OF DATA DATE CALCULATED BY L SYNSTEBY COMMENTS where K = Annual user charge for each user V = Average daily sewage flow in MGD B = Average sewage BOD concentration in mg/l S = Average sewage SS concentration in mg/l K = (71, x V) + ( x V x B) + ( x V x S) 71, X $239, (V) X $355, (V) (B) X $140, (V) (S) ANNUAL USER CHARGE $735, ANNUAL CUSTOMER CHARGE $2.75 TOTAL ANNUAL CHARGE $735, ADDITIONAL ANNUAL CHARGES MAINTENANCE INSURANCE LAB TESTING TELEMETRY REPLACEMENT FUND NOTES: $1, $0 IF MAINTAINED BY OTHERS $0.00 $0 IF OWNED BY OTHERS $0.00 $0 IF TESTED BY OTHERS $0.00 $0 IF PROVIDED BY OTHERS OR DOES NOT EXIST $0.00 $0 IF OWNED BY OTHERS TOTAL ANNUAL CHARGES $736, $/AF $ $/mg $605.55

20 Monterey Regional Water Pollution Control Agency Dedicated to meeting the wastewater and recycled water needs of our member agencies, while protecting the environment. RECYCLED WATER COMMITTEE OCTOBER 8, 2015 ACTION ITEM CONSIDER REVISION OF COST SHARING AGREEMENT WITH CITY OF SALINAS FOR SALINAS SOURCE WATER DIVERSION PROJECTS FROM: Jennifer Gonzalez Engineering Manager Budgeted Amt: N/A Cost Estimate: N/A APPROVAL: GM Legal CFO BACKGROUND: At the March 30, 2015 MRWPCA Board Meeting, the Board approved the sharing of costs with the City of Salinas for the design and construction of Salinas Source Water Diversion Projects which include the Agricultural Wash Water, Emergency Bypass, and Stormwater Diversion at the Salinas Pump Station. That Board approval included the construction contract with Monterey Peninsula Engineers. The amounts that were originally agreed upon at the are listed below. Item Total Amount Salinas Share PCA Share Total $1,377, $970, $407, City of Salinas not to exceed amount $1,100, In August, the Board approved a revision to the cost structure between the MRWPCA and the City of Salinas to increase the City s total cost limit to cover the E2 Consulting Engineers proposal of a not to exceed amount of $204,000. That increase was to cover additional costs for the 100% design of stormwater diversion structures. The City of Salinas and MRWPCA have been working cooperatively on the construction of the permanent structure for redirecting agricultural wash water to either the Salinas Pump Station or the City s Industrial Waste Ponds, commonly referred to as the shunt. The project was originally expected to be completed by the end of September, but due to unforeseen conditions outside the control of the Contractor or the Agencies, the completion date is now expected to be in December. MRWPCA has been the lead Joint Powers Authority Member Entities: Boronda County Sanitation District, Castroville Community Services District, County of Monterey, Del Rey Oaks, Fort Ord, Marina Coast Water District, Monterey, Moss Landing County Sanitation District, Pacific Grove, Salinas, Sand City, and Seaside.

21 Recycled Water Committee October 8, 2015 Page 2 agency for Project Management of the construction activity as it pertains to the permanent shunt for the agricultural wash water and the emergency sewer bypass. Early in the construction of the agricultural wash water shunt, a large amount of underground water was encountered in the excavation. Investigation of the continual seepage revealed a large crack in the bottom of the fiberglass manhole where all of the City of Salinas sewer lines converge before entering the Salinas Pump Station. In order to stop sewage from leaking out of the manhole into the surrounding soil, repairs to the manhole were completed, and the excavation area where the agricultural wash water structure will be constructed was found to have unstable soil conditions due to saturation. The agricultural wash water structure will be constructed on fifty-foot piles and a large mat of base rock that were added to the design to ensure long term stability. All of these conditions were unforeseen and have resulted in significant change to the original contract. At this time, the proposed change orders total $425,000 for additional construction, and $35,400 for additional design and construction oversight. MRWPCA staff, City staff and E2 Consulting are all reviewing the Extra Daily Work Reports provided by the Contractor and will revise these numbers down if there is any room for negotiation. MRWPCA and City staff have been in contact and these costs will go before the City Council and be paid for by the City of Salinas because they own the fiberglass manhole that was the source of the issues. Staff is requesting that the Recycled Water Committee recommend to the Board, approval of a contract extension of time of 75 days and up to $460,400 contingent on the City of Salinas agreement to pay for and approval of these change orders. Item Total Amount Salinas Share PCA Share Total $1,377, $970, $407, City of Salinas original not to exceed amount Design Engineering for Stormwater Diversion Structures Contract Extension and Change Orders for City of Salinas $1,100, $204, $460,400.00

22 Recycled Water Committee October 8, 2015 Page 2 FISCAL IMPACT: There will be no fiscal impact to the Agency. Additional costs associated with this project will be paid by the City of Salinas in accordance with the revised Cost Sharing Agreement. The project budget will be amended to reflect the increased appropriation of up to $460,400 once the Agreement is signed. RECOMMENDATION: That the Recycled Water Committee recommend the Board approve a revision to the E2 Consulting Engineers contract of an additional $35,400 contingent on the City of Salinas agreeing to pay that amount. That the Recycled Water Committee recommend the Board approve contract change orders to the agreement with Monterey Peninsula Engineers in an amount up to $425,000 contingent on the City of Salinas agreeing to pay that amount.