MRWPCA Special Board Mtg Agenda Packet 02-11-13

7/29/2019 MRWPCA Special Board Mtg Agenda Packet 02-11-13

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MONTEREY REGIONAL WATER

POLLUTION CONTROL AGENCY5 Harris Court, Bldg. D, Monterey, California 93940-5756(831) 372-3367 or (831) 422-1001FAX: (831) 372-6178

SPECIAL MEETING

NOTICE AND AGENDA

forMonday, February 11, 2013, 7:00 p.m.

BOARD OF DIRECTORS[Note: MRWPCA Board Members are appointed from their respective Joint Powers Authority

(JPA) jurisdictions.]

Ron Stefani, Chair Castroville Community Services DistrictDennis Allion, Vice Chair Del Rey OaksVACANT Boronda County Sanitation District

Lou Calcagno County of MontereyTom Moore Marina Coast Water DistrictLibby Downey MontereyChris Orman Moss Landing County Sanitation DistrictRudy Fischer Pacific GroveGloria De La Rosa SalinasDave Pendergrass Sand CityRalph Rubio SeasideVACANT United States Army - Ex-Officio

You are invited to visit our Website @www.mrwpca.orgto access a description of MRWPCAand its Mission Statement.

NOTE: All enclosures and staff materials regarding the following agenda items are available for public reviewon Thursday, February 7, 2013 through Monday, February 11, 2013, at the MRWPCAs Administrative Office inMonterey at Ryan Ranch, and at the public libraries located in Castroville, Marina, Monterey, Pacific Grove,Salinas, and Seaside.
http://www.mrwpca.org/http://www.mrwpca.org/http://www.mrwpca.org/http://www.mrwpca.org/


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MRWPCA Special Meeting Notice and AgendaFebruary 11, 2013, 7:00 p.m.

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1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

4. PUBLIC COMMENTSAnyone wishing to address the Board on matters not appearing on the Agenda may do so now fornot more than three (3) minutes. Comments on any other matter listed on the Agenda are

welcome at the time the matter is being considered by the Board.

5. PRESENTATIONSA. Update on Groundwater Replenishment Project

Discussions Keith Israel

6. ACTION ITEMSAction items consist of business which requires a vote by the Board. These items are acted

upon in the following sequence: (1) Staff Report; (2) Board Questions to Staff; (3) PublicComments; and (4) Board Discussion and Action.

A. Consider FY 2012/13 Urban Reclamation Fund Budgets That the Board Approve FY 2012/13 Budgets for Regional

Urban Water Augmentation Project (RUWAP UR 501) for$25,000, Monterey Peninsula Groundwater ReplenishmentProject (GWR UR 502) for $750,000, Brine and OceanOutfall (UR 504) for $25,000, and Urban Reclamation PublicOutreach (UR 505) for $25,000.

7. CORRESPONDENCEA. Letter to MCWRA to propose development of a plan to

secure water sources for the growers, February 1, 2013

8. BOARD MEMBER COMMENTS/REPORTSBoard 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 Agency. No

discussion or action is appropriate other than referral to staff for consideration or setting a

matter as a future agenda item.

9 . ADJOURNMENTSet next meeting(s)/location(s)/date(s)/time(s):

Regular and/or Special Meeting(s):

A. Location:MRWPCA Board Room - Ryan Ranch

Date(s)/Time(s):

REGULARLY SCHEDULED BOARD MEETING

Monday, February 25, 2013 at 7:00 pm


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MRWPCA Special Meeting Notice and AgendaFebruary 11, 2013, 7:00 p.m.

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* * * * * *

This Meeting Notice and Agenda was posted at the AdministrativeOffices of the MRWPCA, 5 Harris Court, Building D, Monterey,California, action may be taken on any of the items agendized above.

POSTED: Thursday, February 7, 2013[Posted 72 hours in advance per requirements of the Brown Act]

BY: /s/Chayito IbarraExecutive Assistant


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POLLUTION CONTROL AGENCY

* * * AGENDA TRANSMITTAL FORM * * *MEETING DATE: FEBRUARY 11, 2013

AGENDA ITEM: 6 A

AGENDA TITLE: CONSIDER FY 2012/13 URBAN RECLAMATION FUND

BUDGETS

Consent ( ) Action ( X ) Informational ( )

CONTACT: KEITH ISRAEL, GENERAL MANAGER

Phone: 831-372-3367

DEPARTMENT SUMMARY AND REQUESTED BOARD ACTION:

SEE STAFF REPORT AND MATERIALS ATTACHED.

FINANCIAL IMPACT: ( X ) Yes ( ) NoFUNDING SOURCE:

BUDGET RECAP: Total Estimated Cost: $ 825,000

Amt Expended to Date: $ 350,000

Amt Budgeted FY 12/13: $ 0

New Funding Required: $ 50,000

New Revenue: $ 375,000

Revenue Impact: $ 400,000

New Personnel? NO

Change in Board Policy? NO


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POLLUTION CONTROL AGENCY

* * * AGENDA TRANSMITTAL FORM * * *PRIOR BOARD

ACTIONS:

Approved MOU with MPWMD regarding Prop 218 fees for

GWR support; approve resolutions to accept matching grant

funds for support of GWR; approve staff discussions with

stakeholders to consider water needs of the regional area.

ALTERNATIVES: If budget funding is not approved, funding support for urban

water recycling project will be denied; studies to remedy the

Salinas Industrial Ponds issues will be delayed; the CEQA

work for the GWR project will be delayed; and the project willlikely not be complete d by December 2016.

COMMITTEE REVIEW

AND ACTION:

RWC has monitored and considered the GWR project

progress and the project costs, and has approved moving

forward in collaboration with the City of Salinas to address

their water issues; BPC has also reviewed the GWR

expenditures. Both committees have encouraged continuing

support to the SVRP and CSIP while balancing the need for

consideration of recycling water projects for other entities.MANAGER

RECOMMENDATION:

Approve the Recommended Motion.

ATTACHMENTS:1. Staff Report on Urban Reclamation Fund Budget2. MCWRA Proposal3. Groundwater Replenishment Interim Budgets4. Groundwater Replenishment Project Timeline5. Financial Summary of Reserves, December 2013

RECOMMENDED

MOTION:That the Board approve FY 2012/13 budgets for RegionalUrban Water Augmentation Project (RUWAP UR 501) for$25,000, Monterey Peninsula Groundwater ReplenishmentProject (GWR UR 502) for $750,000, Brine and OceanOutfall (UR 504) for $25,000, and Urban Reclamation PublicOutreach (UR 505) for $25,000.

U:\BETTY\Board Agendas\Non-Routine Agenda Items\2013\February\February 11-Special Meeting\a Urban Recl transmittal.doc


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MRWPCA Board of DirectorsSpecial Board Meeting

February 11, 2013

Agenda Item 6:

CONSIDER FY 2012/13 URBAN RECLAMATION FUND BUDGETS

BACKGROUND AND INFORMATION:The Urban Reclamation part of the budget was not considered by the Board last June2012. Initially the primary reason for this delay was a question as to the ability of the

MPWMD to fund their portion of the planning effort due to possible challenges to theirJune 2012 user fee. Later last fall when the Urban Reclamation Budget was proposedto the Board, there were not enough votes to approve it. Concerns were raised byGrowers/MCWRA regarding the water rights for the Groundwater ReplenishmentProject. Over the last six months, staff has conducted a series of meetings with theGrowers/MCWRA which were later expanded to include the Marina Coast Water Districtand the City of Salinas.

The Growers/MCWRA suggested that it would be helpful if MRWPCA adopted aresolution confirming that the Growers had a firm 19,500 AFY of recycled water rights.Various attempts were suggested between the parties regarding such a resolution, butthere was not a consensus on the language.

The MCWRA has requested that the attached resolution (Attachment A) be consideredby the Board. MRWPCA staff has not recommended it for approval for several reasons:

1. Due to current and projected conservation, it is extremely unlikely that19,500 AFY will ever be available in the future.

2. It is very difficult to take a series of agreements between multiple agenciesand arrive at one number for all situations

3. The MRWPCAs own water rights analysis as filed with the CPUC in July2012 does not match the 19,500 AFY figure.

Instead, MRWPCA staff has proposed that by all parties (MCWRA, MRWPCA, MCWDand City of Salinas) working together to combine available waters, it is possible to meetall current and projected water needs at costs that are affordable.

Staff strongly suggests that the best way to resolve the water rights questions are toconfirm that we can jointly combine water sources at a price all can afford. Once this isconfirmed we propose that a new amendment number 4 with the MCWRA be


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SPECIAL MRWPCA BOARD MEETINGFebruary 11, 2013Urban Reclamation Fund Budgets

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developed. Additionally, MOUs with MCWD and the City of Salinas may also be

appropriate.

To accomplish the above, MRWPCA needs to start technical feasibility studies toconfirm the feasibility and cost of water projects for each of the parties sharing water.We expect that a preliminary report can be completed by June 2013. We also need tobegin critical path work at this time for the design of the GWR Project as outlined in thebudget breakdown.

As noted below, we have available MRWPCA reserves to complete the work throughthe end of the fiscal year. In addition, the MPWMD will provide matching funds for theplanning efforts. And, finally, we have grant funds that can cover part of the cost.

EXPENDITURES TO DATE:The Recycled Water Committee recommended and the Board approved a fiscal year2011-2012 budget of $789,000 excluding internal labor costs. $253,957 of that moneywas not expended last year mostly due to the delay in constructing the monitoring well.The accumulated expenses to date and current expenses are shown below:

Out-of-Pocket Expenditures

ExpenseFY 05/06throughFY 10/11

FY 11/12 FY 12/13Total To

Date

Technical/Consultants $740,939 $354,928 $26,470 $1,122,337Legal $78,745 $147,388 $88,652 $314,785Environmental $61,345 $32,168 $41,998 $135,511Public Outreach $672,994 $557 $0 $673,551Watermaster (reimbursement) ($100,000) $0 $0 ($100,000)MPWMD (reimbursement) $0 $0 $0 $0SRF Feasibility Grant(reimbursement)

$0 $0 $0 $0

BOR Title 16 WaterSMARTGrant (reimbursement)

$0 $0 $0 $0

Total Without Internal Labor $1,454,023 $535,041 $157,120 $2,146,184

Total ExpendituresTotal With Internal Labor $2,090,913 $796,880 $326,241 $3,214,034

Updated 2/1/13

CURRENT RESERVE AND PROJECT FUNDINGAs shown on the attached pages from the January Board packet, we have $7,541,491in reserves as of December 31, 2012. Prior reserve balances include $6,692,117 at the


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end of November; $7,806,355 at the end of October; and, $6,803,662 at the end of

September.

As noted on the attached GWR Interim Budget (Attachment B) funds for GWR Planningand Preliminary Design would be a loan from the Unrestricted General Fund Reservesthat will be paid back once a project is approved.

The opportunity to complete GWR by December 2016 is likely to close this month; staffnow comes back to the Board to request approval of the Urban Reclamation Budget asproposed below:

BUDGET RECOMMENDATIONS:A. Approve FY 2012/13 UR-501 Budget

UR-501 covers the expenses related to the Regional Urban Water AugmentationProject (RUWAP) and winter storage of recycled water. Expected expendituresinclude:

Consultant $8,000Legal $3,000Internal Labor $14,000

Total $25,000

Expenditures are for review of options and discussions with MCWD

B. Approve FY 2012/13 UR-502 Budget

UR-502 covers the expenses related to the Monterey Peninsula GroundwaterReplenishment Project (GWR). The Board approved $789,000 excluding internallabor for FY 2011/12. Mostly due to delays in the Monitoring Well installation,$253,957 was not expended that year. Limited expenditures during FY 20012/13were based on this carry-over.

Following is detailed description of expenditures shown on the attached GWRInterim Budget (Attachment B):

CEQA a key expenditure for GWR on the critical path that includesvarious consultants helping to establish the project description and thenworking on the Project Scoping.

Legal another key item to assist in establishing the CEQA legal footingand for negotiations with various parties.


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Feasibility Study This work is not on the critical path, but it is veryimportant to complete at this time. The first phase of this study is to lookat various options like using the Salinas Industrial Treatment Plant, BlancoDrain, stormwater, and Reclamation Ditch waters as the source water forthe GWR. The study will also develop costs for various options discussedwith MCWRA, the growers, the City of Salinas, and MCWD. The twogrants were issued to support this study including a second phase that willlook at pilot treatment of the various waters. Without starting this study,MRWPCA might not be able to retain the grants.

Monitoring Well includes $24,999 encumbered by FORA for permit

review. FORA required that amount although FORA staff suggested thatthe cost may be closer to $12,000.

Reimbursement from the two grants may not be received until FY14. Reimburse-ment from MPWMD is expected in both FY13 and FY14 for the above expensesassociated with the GWR Project.

C. Approve FY 2012/13 UR-504 Budget

UR-504 covers the expenses related to the Brine and the Ocean Outfall. Expectedexpenditures include:

Consultant $1,500Legal $15,000Internal Labor $8,500

Total $25,000

Expenditures are for discussions/negotiations with Cal Am related to their brinedisposal. These costs are expected to be reimbursed when a desalination plantbegins operation.

D. Approve FY 2012/13 UR-505 Budget

UR-505 covers the expenses related to Urban Reclamation Public Outreach.Expected expenditures include:

Consultant $15,000Internal Labor $10,000

Total $25,000


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Expenditures are for public outreach mainly for the Monterey Peninsula Groundwater

Replenishment Project. Much of the public outreach is performed and spearheadedby MRWPCA staff.

RECOMMENDATION: That the Board approve FY 2012/13 budgets for RegionalUrban Water Augmentation Project (RUWAP UR 501) for $25,000, MontereyPeninsula Groundwater Replenishment Project (GWR UR 502) for $750,000,Brine and Ocean Outfall (UR 504) for $25,000, and Urban Reclamation PublicOutreach (UR 505) for $25,000.

Attachment A: Proposed Resolution from MCWRAAttachment B: Budget for Groundwater Replenishment ProjectAttachment C: Groundwater Replenishment Project TimelineAttachment D: Financial Summary of Reserve Funds, December 31, 2012

Z:\Board Agendas\Non-Routine Agenda Items\2013\February\February 11-Special Meeting\b Agenda 6 A - UR Budget Report.docx


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RECITALS

I. Monterey Regional Water Pollution Control Agency ("MRWPCA") entered into anAnnexation Agreement, dated April 25. 1989, with Marina Coast Water District ("MCWD")providing. among other things. annexation of MCWD and to become a member entity ofMRWPCA.2. MRWPCA entered into an Agreement with Monterey County Water Resources Agency("MCWRA"). dated June 16. 1992. tor construction and operation of a tertiary treatment system(the "1992 Agreement"). with subsequent amendments thereto, as follows: Amendment No. I onMay 30, 1994. Amendment No.2 on February 16. 1998, and Amendment No.3 on May 28,2002.

a. Section 3.04 of the 1992 Agreement reads as follows:Warranties. WPCA warrants that all water committed to the project shall betransferred to the project free and clear of all claims by any person or entity,ex,ept as otherwi.ve .\pecified herein, and that all water produced by the project,up to the project's initial capacity of 29.6 MGD1, shall be distributed inconformity with the terms of his contract.

b. Section 3.03 ofthe 1992 Agreement reads as follows:Dedication o[ n,oming flows. WPCA will commit all of ts incoming wastewaterflows to the project, up to the project capacity of29.6 MGD, except for

(a) flows taken by Marina County Water District (MCWD) pursuant tothe Annexation Agreement between MCWD and WPCA dated April 25, 2989,(b) such flows as are lost or as must be diverted in the ordinary course ofoperating and maintaining the treatment plant and ocean outfall, and(c) such flows as are not needed to meet WRA 's anticipated demand underArticle IV.

c. Exhibit "C" of the 1992 Agreement states, in part, "the ultimate goal of theWastewater Reclamation System is to produce at least 19,500 acre-feet of tertiary treatedwater for use each year in the Castroville Irrigation System ("CSIP").d. Section 6.0 I of the 1992 Agreement causes MCWRA to make payments toMR WPCA as consideration for water provided and obligations performed by MR WPCA.

1 33,154 acre-ftlyear

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J. Section IV. Paragraph 4.02 of Amendment No.3 to the 1992 Agreement limitsMCWRA's recycled water right entitlement to 19,500 acre-ft/year during the "initialh:rm".4. Section IV. Paragraph 4.03, ofAmendment No.3 to the 1992 Agreement providesMCWRA a recycled water right entitlement equal to an amount of water equal to theamount of wastewater originating in the Salinas Valley water that was delivered to theWPCA during the year preceding the year for which the water deliveries are requestedduring the "extended term".5. MCWRA, as a minimum, intends to expand its CSIP operation and territory nolater than 2022 to further halt seawater intrusion. Annual actual usage will increase 5,500acre-ftlyear to the basic demand amount ofS 19,500 acre-ftlyear.6. MRWPCA desires to utilize 4,300 acre-ftlyear of recycled water for its proposedGroundwater Replenishment Project, commencing in 2017.7. MRWPCA requires a firm, uninterruptible, supply of recycled water in order toobtain financing for its Groundwater Replenishment Project.

ttachmentA


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COVENANTSI. MR WPCA reaffirms MCWD's recycled water right entitlement granted toMCWD pursuant to Paragraph 12 of the April 25, 1989 Annexation Agreement betweenMRWPCA and MCWD. Said water rights equal. as a minimum. the "volume ofMCWDtreated by MRWPCA." which volume approximates 2,240 acre-ftlyear in 2012.2. MRWPCA reatlinns MCWRA's recycled water right entitlement of 19.500 acre-tllyear during the "initial term". as defined in the 1992 Agreement.3. In lieu of future inground storage of 5,500 acre-ftlyear of recycled water duringwinter months, commencing no later than 2022, MCWRA would be willing to commit toexchange 5,500 acre-ftlyear recycled water right entitlements for MRWPCA's supplying5.500 acre-ftlyear of tertiary treated water water rights from new sources during summermonths.4. MR WPCA and MCWD will enter into an agreement whereby MCWD will long-term lease or sell its recycled water right entitlement to MR WPCA.5. MRWPCA and MCWRA will enter into an agreement leasing MWRA's 2,300acre-ftlyear of recycled water right entitlements to MRWPCA. Said water rightentitlements to be utilized during November- February time frame for a period endingDecember 31,2021.6. MR WPCA in its use of recycled water for the Groundwater ReplenishmentProject, will comply with all applicable requirements set for the in Contract No. 5-07-20-W1283, between the Bureau of Reclamation and MCWRA including, but not limited to,those contained in Paragraphs lOb and tOe, all at MRWPCA's sole cost and expense.7. MRWPCA agrees to amend Section IV, Paragraph 4.03 of Amendment No.3 tothe 1992 Agreement to include a minimum recycled water right entitlement of 19,500acre-ftlyear during the "extended term".

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Groundwater Replenishment Project Interim Budget

ExpensesFY 2012/13

to DateRemainder

of FYTotal FY2012/13

Technical Consultants-Planning 8,376 8,376

Technical Consultants-CEQA Project Description 37,095 37,095

Technical Consultants-Feasibility 43,991 43,991

Legal 88,652 55,000 143,652

Environmental-CEQA 19,948 85,000 104,948Lobbyist 13,573 6,400 19,973

Misc. CPUC & other mtgs. 986 1,000 1,986

Monitoring Well [biological survey and FORA permits($25,000)]

25,584 27,999 53,583

Contingency 50,000 50,000

Total Expenditures without Labor 157,120 306,485 463,605

Internal Labor 169,121 117,274 286,395

Total Expenditures with Labor 326,241 423,759 750,000

ReimbursementsSRF Feasibility Grant (in FY14) 25,000 25,000BOR WaterSMART Grant (in FY14) 50,000 50,000

MPWMD (additional in FY14) 300,000 300,000

MRWPCA (loan from reserves) 326,241 48,759 375,000

Total Reimbursements 326,241 423,759 750,000

Expenditures Less Reimbursements 0

NOTE: $253,957 was unspent for FY 2011/12

Attachme

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Groundwater Replenishment Schedule

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

CEQA+

Monitoring Well

easibility Study

Pilot Treatment

Treatment Design

Construction

Outreach

Critical Path Regular Red Border - Cal Am Anticipated Decision Point

Updated: 2/

2013 2014 2015 2016

Attachme

Page 1 of


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PAR YIELD BOOK MARKET

Location TYPE VALUE TO MATURITY VALUE VALUE

GENERAL FUND

SBB&T Cash 467,663.58 0.050 467,663.58 467,663.58

SBB&T MMF 3,919,782.36 0.600 3,919,782.36 3,919,782.36

MTY CTY Lien 877,169.23 877,169.23 877,169.23

SBB&T Savings 3,116,731.52 0.500 3,116,731.52 3,116,731.52

LAIF Savings 10,850.49 0.320 10,850.49 10,850.49

JP MORGAN Savings 37,794.74 37,794.74 37,794.74____________ ___________ ___________

8,429,991.92 8,429,991.92 8,429,991.92

NOTE:

The General Fund Investment Account balance includes:

2012 Bond reserve Restricted 885,500.00

Restricted 3,000.00

Unrestricted 7,541,491.92____________

GENERAL FUND TOTAL 8,429,991.92$

CAPITALIZED EQUIPMENT FUND

SBB&T Savings 913,587.31 0.500 913,587.31 913,587.31_________ _________ _________

913,587.31 913,587.31 913,587.31

CAPITAL IMPROVEMENT FUND

SB&T Cash 93,692.83 0.050 93,692.83 93,692.83SB&T Savings 2,219,124.75 0.600 2,219,124.75 2,219,124.75

SB&T Capacity Fees 30,236.08 0.050 30,236.08 30,236.08___________ ___________ ___________

2,343,053.66 2,343,053.66 2,343,053.66

MRWPCA TOTAL 11,686,632.89$

RESTRICTED

2012 Bond reserve Restricted 885,500.00

Restricted 3,000.00

Capitalized Equipment Fund Restricted 913,587.31

Capital Improvement Fund Restricted 2,343,053.66

4,145,140.97$

UNRESTRICTED

Unrestricted 7,541,491.92$

MRWPCA TOTAL 11,686,632.89$

SCHEDULE OF CASH & INVESTMENTS

Per government code requirements, this schedule of investments is in compliance with MRWPCA's Investment

policy

General Fund

LWH - Certificate of Deposits

MRWPCA

LWH - Certificate of Deposits

General Fund

AS OF DECEMBER 31 2012

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ttachment


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PAR YIELD BOOK MARKET

Location TYPE VALUE TO MATURITY VALUE VALUE

SCHEDULE OF CASH & INVESTMENTS

MRWPCA

AS OF DECEMBER 31 2012

RECLAMATION/SRDF *

SVRP & CSIP O&M 0.050 1,818,073.92

SRDF O&M 0.050 686,070.39

SVRP SAVINGS 0.600 185,192.58

CSIP SAVINGS 0.600 132,038.83

SVRP BUREAU OF RECL RESERVE 0.600 157,877.15

CSIP BUREAU OF RECL RESERVE 0.600 303,620.69

SVRP SWRCB RESERVE 0.600 503,659.27

SVRP EQUIP REPL RESERVE 0.600 323,604.24

CSIP EQUIP REPL RESERVE 0.600 203,620.51

SRDF EQUIP REPL RESERVE 0.600 50,111.99

RECLAMATION FUNDS TOTAL 4,363,869.57$ *

TOTAL OF ALL FUNDS 16,050,502.46$ *

* MCWRA funds are held and invested by MRWPCA

** All funds include MCWRA funds as noted above

Per government code requirements, this schedule of investments is in compliance with MRWPCA's Investment

policy

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Monterey Regional WaterPollution Control Agency

February 1, 2013

Mr. David ChardavoyneInterim General Manager

"Dedicated to meeting the wastewater and reclamation needsof our member agencies, while protecting the environment."

Administration Office5 Harris Court, Bldg. 0, Monterey, CA 93940-575(831) 372-3367 or 422-1001, FAX: (831) 372-617Website: www.mrwpca.or

Monterey County Water Resources AgencyP.O. Box 930Salinas, CA 93902Dear Dave,Per our discussion last Monday (January 28), I wanted to follow up and betteroutline and summarize the results of our dialogue to date. In particular and aspointed out via graphical charts, we believe we can address the MCWRA andgrower concerns over our proposed Groundwater Replenishment (GWR) Projectby bringing in new sources of water. In addition, we think it is also possible toblend in low salt reverse osmosis water from the GWR plant to make sure thatthe overall recycled water to CSIP will have a low enough salt content and SARto assure continued agricultural production well into the future. We also believethat there will be enough new water to allow for future expansion of the CSIP.To reconfirm our proposed next steps, on February 11 we plan on holding aSpecial Board Meeting to go over the results of our discussions over the last sixmonths and outline a plan for addressing your concerns regarding GWRimplementation. One key component is development of a comprehensive planwhich would outline the details and likely costs of the water sources needed byGWR as well as assure suitable water for current and future CSIP operations.To help accomplish tliis, we will also ask our Board to approve an updatedrecycled water budget through the end of this fiscal year (June 2013).We believe that we will need some external engineering assistance to help definecosts and options related to these water sources. In particular, it would behelpful if you could confirm in some detail your future CSIP priorities so that we

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.


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Dave Chardavoyne, MCWRAFebruary 1, 2013Page 2 of2

can develop a specific enough plan to meet future needs. It would be helpful ifyou could provide such information by February 22.

Again, thanks for your ongoing participation and we look for your support so thatwe can develop a mutually beneficial plan for the future.Sincerely,

Keith IsraelGeneral ManagerU:ISETTY\General Manager\MCWRA\Chardavoyne MCWRA Ltr 21 13.doc

Documents

MRWPCA Special Board Mtg Agenda Packet 02-11-13