mprwa agenda packet 03-13-14

8/12/2019 MPRWA Agenda Packet 03-13-14

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MINUTES

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)Special Meeting

7:00 PM, Thursday, January 30, 2014COUNCIL CHAMBER580 PACIFIC STREET

MONTEREY, CALIFORNIA

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

Directors Absent: None

Staff Present: Executive Director, Legal Counsel, Clerk

ROLL CALL

President Della Sala called the meeting to order at 7:17 p.m. and all members were present,including guests City of Marina Mayor Delgado and City Manager Long.

PLEDGE OF ALLEGIANCE

PUBLIC COMMENTS

President Della Sala invited public comment for items not on the agenda.

David Lifland expressed concern regarding the current drought emergency andencouraged requesting approval for use of the open water intake well option.

Tom Rowley urged the Directors to thank the community for their past and continuedconservation efforts.

Nelson Vega expressed concern with the costs expended for the GWR project and thepotential to trigger debt equivalency.

Public Comment was closed and President Della Sala recognized that the region is doing acommendable job with conservation efforts. Director Burnett responded to Mr. Vega's questionindicating the GWR project is less likely to trigger debt equivalency than originally thought.Director Kampe spoke to a presentation given by Cal Am regarding Cal Am billing practices andencouraged other member cities to request presentations during their City Council meetings.

AGENDA ITEMS

1. Receive Report, Discuss and Provide Direction Regarding the Monterey Peninsula WaterSupply Project Coastal Development Permit for Bore Holes in the City of Marina, California AndAuthorize Executive Director or Chair to Testify at Marina Public Meetings and to Submit aLetter of Support

President Della Sala thanked City of Marina Mayor Bruce Delgado and City Manager LayneLong for attending the Special Meeting.

Executive Director Cullem introduced the item explaining the critical elements needed tocomplete the environmental documents being prepared by the CPUC for the MontereyPeninsula Water Supply Project. This includes data derived from two bore holes to be drilled onCity of Marina land. He further explained that Marina staffs municipal code interpretationregarding surface mining was a barrier and the scheduled meeting dates would delay the


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MPRWA Minutes Thursday, January 30, 2014

Monterey Peninsula Regional Water Authority

Special Meeting Minutes - Thursday, January 30, 20143

Legal Counsel Freeman requested authorization to talk to City of Marina Attorneys to map out atimeline and any other alternatives that could be explored and other issues that could beclarified. The Directors came to a consensus to allow Legal Counsel Freeman to reach out tothe City of Marina Legal Council to address the problem.

Mayor Delgado indicated that the current challenge was due to a lack of information andinformed representatives at previous meetings. He requested expert representatives to attendfuture meetings answer any necessary questions.

On a motion by Director Rubio, seconded by Director Edelen and carried by the following vote,the Monterey Peninsula Regional Water Authority authorized a letter of support be submitted tothe City of Marina, CA for approval of the Monterey Peninsula Water Supply Project CoastalDevelopment Permit for Bore Holes in the City of Marina, California and authorize the ExecutiveDirector and Director Burnett to testify at marina public meetings.

AYES: 6 DIRECTORS: Burnett, Edelen, Kampe, Pendergrass, Rubio, Della

SalaNOES: 0 DIRECTORS: NoneABSENT: 0 DIRECTORS: NoneABSTAIN: 0 DIRECTORS: NoneRECUSED: 0 DIRECTORS: None

ADJOURNMENT

The meeting was adjourned at 8:24 p.m.

ATTEST:

Lesley Milton, Authority Clerk Chuck Della Sala, President


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MPRWA Minutes Thursday, February 13, 2014


Regular Meeting Minutes - Thursday, February 13, 20142

Executive Director Cullem introduced auditor Patricia Kaufman who presented the results of thefinancial audit. She informed the Directors she presented the findings listed in the Managementletter in detail on January 23, 2014 to the Ad-hoc finance committee composed of DirectorsRubio and Edelen. The Authority received an unqualified or "clean" opinion which means thatthe report is a fair representation of the Authoritys financial position and the current practicescomply with Government Accounting Statements and Principles. She spoke to the management

process, noting that as a new agency, it is understood there should be recommendations. Theyencountered no challenges performing the audit. She complimented the Director and staff forneeding no adjustments, and being supportive and cooperative. Mrs. Kaufman answeredquestions from the Directors.

President Della Sala invited public comment and had no requests to speak.

On motion by Director Kampe and seconded by Director Rubio and passed by the followingvote, the Authority approved the staff recommendation to receive the financial report and fullopinion audit and approve the modification of the existing contract to extend services for twoadditional fiscal years.

AYES: 6 DIRECTORS: Carbone, Edelen, Kampe, Rubio, Talmage, DellaSala

NOES: 0 DIRECTORS: NoneABSENT: 0 DIRECTORS: NoneABSTAIN: 0 DIRECTORS: NoneRECUSED: 0 DIRECTORS: None

3. Accept and File Checks for the Period of December 31, 2013 through January, 31 2014

On motion by Director Rubio and Seconded by Alternate Director Carbone and passed by the

following vote, the Authority accepted and filed checks for the period of December 31, 2013thru January 31, 2014.



Director Kampe spoke to the administrative process of modifying the budget to be sure it is veryclear where changes are happening. Executive Director Cullem spoke to future reports that will

incorporate expenses and obligations and will be articulated in the policies and procedures.

4. Receive Report, Discuss, Provide Direction and Approve Resolution 2014-XX and Letter ofSupport for Senate Bill 936, and Authorize the Executive Director to Forward a SampleResolution and Sample Letter for Consideration by Member City Councils.


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Executive Director Cullem spoke to the securitization issue that is critical to the substantialsavings for the construction costs for the MPSWP, noting legislated changes are needed toenact. This action would provide a resolution of support to be sent to the state to encouragepassage of Senate Bill 936. President Della Sala invited public comment and we have norequests to speak

On motion by Director Rubio and seconded by Director Kampe and passed by the followingvote, the Authority approved Resolution 14-01 and authorized sending a letter of support ofSenate Bill 935 and authorizing staff to circulate approval to member cities.



5. Receive Verbal Report, Discuss and Provide Direction to Staff Regarding the Bore HolePermitting Process

Executive Director Cullem spoke to the recent barriers to obtaining permits through the City ofMarina which almost delayed the project a minimum of six months. He spoke to the purpose ofthe bore holes and their necessity to complete the environmental review for the MPWSP.

He reported that the Marina Planning Commission interpreted their municipal code in a way thatdisallowed the request to extract water for mineral content testing as it violated the miningordinance. Director Burnett, acting as representative of the Authority, appealed the decision tothe City Council which held a special meeting on February 12, 2014 and approved theinterpretation that no permit would be required by MPWSP if the bore holes were drilled on the

Cemex property. This decision is not appealable, but is threatened by litigation. The next stepwould be to request the Administrative Law Judge to rescind the decision to delay the releaseof the environmental review. Director Burnett, Legal Counsels McLaughlin and Freeman andExecutive Director Cullem Worked diligently to provide all necessary support to ensure thispassed and did not delay and provided a classic example of the purpose of the Authority, toprovide support for the permitting processes.

Legal Counsel Freeman noted that this incident allowed the Authority to involve the State WaterResources Control Board regarding the challenges this project faces and they will betterunderstand a request for extension of the CDO. He requested that the Authority work to identifyany additional potential barriers to keep work from being done in crisis mode.

Present Della Sala requested sending thank you letters to all involved including the City ofMarina City Council for their the due deliberation and careful consideration of this item and forrecognizing the time sensitivity to the movement of the project.

Director Kampe spoke to the situation and how this truly is a regional problem. Mr. Cullemnoted he will work to figure out a way to have better working relationships with all the impactedagencies, including keeping them apprised of next steps. Director Rubio suggestedincorporation of the Marina Coast Water District into the project to make it a regional solution.


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Ian Crooks, Engineering Manager from Cal Am thanked the Authority for their support and theefforts provided by Director Burnett, Legal Counsels McLaughlin and Freeman and ExecutiveDirector Cullem. He indicated that the next big milestone is the slant test well, which is alsodelayed and is schedule to begin in November. Mr. Crooks committed to keeping the Authorityupdated and developing a strategy and schedule through completion.

President Della Sala invited public comment on the item.

David Lifland questioned drilling the test wells in November, instead of October andrequested the Authority to keep an eye on costs to be passed on to the rate payer.

Executive Director Cullem requested authorization to work with Cal Am and other portfolioprojects to revisit some of the critical path issues that may not have been anticipated to beproactive rather than reactive.

Mr. Crooks spoke to the schedule that the Coastal Commission meets in the Central Coast

region in November 2014 and that is when they expect to approve the test well environmentalpermissions, even through the environmental review will be completed in late spring.

Director Edelen suggested that an earlier meeting be requested due to the time sensitivity ofthe project and that we should be timing to meet our needs and if they don't help, it gives usmore amunition to request a delay. Legal Counsel Freeman indicated that the Authority staff willhelp to facilitate that request.

In closing, all present Directors expressed appreciation to Director Burnett for his efforts on thisissue.

6. Discuss Governor Brown's Proclamation Declaring a Drought State of Emergency and thePotential Local Implications

Executive Director Cullem explained the purpose of this item to identify any components withinGovernor Browns proclamation that would be applicable to the current water supply projectswhich could be expedited. However, recent interpretations have revealed that because of thelong-range project status, nothing significant could be done with regards to this proclamation tomove the process forward faster than scheduled.

President Della Sala invited public comment on the item.

David Lifland spoke to the CEQA exemptions listed in the proclamation that might be

applicable for the projects.

Legal Counsel Freeman indicated there has been a review of each code section and at thistime, it does not appear that they would apply to the local projects.

ADJOURNMENT


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President Della Sala thanked all Directors, Staff and Authority affiliates for their participationwith the City of Marina appeal process. Executive Director Cullem spoke to the retirement ofRoyal Calkins from the Monterey Herald and thanked him for the objective and fair coverage ofefforts made by governmental organizations. The meeting was adjourned at 8:14 p.m.

ATTEST:

Lesley Milton, Authority Clerk Chuck Della Sala, President


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Monterey Peninsula Regional Water AuthorityAgenda Report

Date: March 13, 2014

Item No: 3.

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FROM: Authority Clerk Milton

SUBJECT: Approve and File Checks Through March 7, 2014

RECOMMENDATION:

It is recommended that the MPRWA approve and file the accounts payable paymentsmade during the period of February 1, 2014 through March 7, 2014. Total AccountsPayable for the above referenced period is $40,936.06. It is recommended that theAuthority approve and file the below checks.

DISCUSSION:

At its meeting on September 12, 2013, the Authority Board approved a staffrecommendation to provide the Directors a listing of general checks issued since the lastreport so that it can inspect and confirm these checks. Each invoiced expense has beenreviewed and approved by the Executive Director and Finance personnel prior to paymentto insure that it conforms to the approved budget.

The following checks are hereby submitted to the Authority for inspection andconfirmation.

$2,250 to Perry and Freeman For Legal Services for March $460 to Jim Cullem Reimbursement for City of Marina Appeal Fee $1,980 to McGilloway, Ray, Brown & Kaufman for Financial Audit Services $700 to Environmental Relations for Public Outreach Services $1,350 to Access Monterey Peninsula $34,196.06 to City of Monterey for Reimbursement of Executive Director

Services

FISCAL IMPACT

The listed checks have been budgeted and paid from the various funds, as appropriate

and the Budget to Actual is below and lists all checks issued to date.

The line item for Consulting Services is still exceeded due to the outstanding invoices

from the Monterey Peninsula Water Management District and the County of Monterey

for their fair share of the Separation Processes Inc. Services. The Audit services line

item was exceeded with approval from the Board, for the addition of the Management

Discussion and Analysis portion of the 2012-13 financial audit.


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Item No: 4.

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FROM: Executive Director Cullem

SUBJECT: Authorize Staff to Send a Letter Nominating the Salinas and Carmel River BasinsStudy for Funding Under the Bureau of Reclamations FY 14 Basin StudyProgram

RECOMMENDATION:

It is recommended that the Monterey Peninsula Regional Water Authority (MPRWA) authorizeStaff to send a letter nominating the Salinas and Carmel River Basins Study for funding underthe Bureau of Reclamations FY 14 Basin Study Program.

DISCUSSION:The following e-mail was sent by Dave Stoldt on February 14, 2014 requesting for a letter of

nomination for the Salinas and Carmel River Basins Study:

Four non-Federal partners here on the Central Coast have proposed to participate with the USBureau of Reclamation in the development of the Salinas and Carmel River Basins Study, asindicated in the attached nomination letter. These agencies include the San Luis Obispo CountyDepartment of Public Works, the Monterey County Water Resources Agency, the MontereyRegional Water Pollution Control Agency, and the Monterey Peninsula Water ManagementDistrict. These agencies have authority to manage water resources in their respective

jurisdictions and are eligible to cooperate with Reclamation in the proposed study.The intent of this study is to evaluate the effects of global climate change on sustainable water

supplies. This would include such factors as changing precipitation patterns, surface waterrunoff and basin recharge and sea level rise. Further, the basin study would develop appropriateadaptation strategies to meet the long-term discrepancies of water supply and demand underthe effects of climate change.

The Reclamation grant application process is a competitive one. I am asking you for a letter ofsupport from your office or organization. Please provide a letter of support by the morning ofFebruary 18thif possible, via email, for inclusion in the final proposal. I have included a samplestakeholder letter attached to this email. Alternatively, if you intend to send a letter of support,but it will take more time, please send a note stating such and we will indicate in the proposalsuch support is coming.Dave Stoldt indicated that nominations after February 18

th

would still be helpful.

ATTACHMENTS:

US Department of Interior, Bureau of Reclamation, letter dated 6 Feb 2014

Sample stakeholder letter


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United States Department of the InteriorBURE U OF RECL M TIONMid-Pacific Regional Office2800 Cottage WaySacramento, CA 95825-1898

IN REPLY REFER TO :

MP-720PRJ-6.00 FE 6 2 14

MEMORANDUMTo: Director, Policy and AdministrationAttn: 84-52000From: ~ ~David G Murillo ~ ~ Q.

Regional DirectorSubject: Mid-Pacific Region Nomination for Basin Study Funding in Fiscal Year (FY) 2014The MP Region is pleased to nominate the Salinas and Carmel River Basins Study for fundingunder the Bureau of Reclamation s FY14 Basin Study Program as described below.The MP Region is proposing to work cooperatively with four non-Federal partner agencies in thedevelopment of this basin study for FY14.The Salinas and Carmel River Basins include portions of San Luis Obispo and Montereycounties, as well as the Monterey Peninsula in California. The Salinas and Carmel Basins have along history of periodic and prolonged droughts punctuated by devastating floods. With relianceon annual rainfall and limited upstream reservoir capacity, the Salinas and Carmel Riversexperience wide fluctuations in runoff. Historical groundwater production trends are leading toseawater intrusion in the north and groundwater level declines in the Paso Robles area. Theseconditions make the Salinas and Carmel River Basins particularly susceptible to the effects ofclimate change.Four non-Federal partners have proposed to participate with Reclamation in the development ofthe Salinas and Carmel River Basins Study, as indicated in the attached letters of interest. Theseagencies include the San Luis Obispo County Department of Public Works, the MontereyCounty Water Resources Agency, the Monterey Regional Water Pollution Control Agency, andthe Monterey Peninsula Water Management District. These agencies have authority to managewater resources in their respective jurisdictions and are eligible to cooperate with Reclamation inthe proposed study.


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2f you have questions or need information regarding our FY14 nomination of the Salinas andCarmel River Basins Study, please contact Ms. MichelleH Denning, Regional Planning Officer,at 916-978-5062 or [email protected].

Attachments - 3cc: 84-51000 AMorgan, AErath, JGerman)

MP-700 MDenning, JKabir, RGanzfried, ANickel, SMcGinnis) wiatt to each)


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580 PACIFIC ST, ROOM 6 MONTEREY CALIFORNIA 93940 www.mprwa.org

MONTEREY PENINSULA REGIONAL WATER AUTHORITY

February 18, 2014

David G. Murillo, Regional DirectorU.S. Dept. of the InteriorBureau of ReclamationMid-Pacific Regional Office2800 Cottage WaySacramento, CA 95825-1898

Directors:

Chuck Della Sala, PresidentJason Burnett, Vice President

Ralph Rubio, Secretary

Jerry Edelen, TreasurerBill Kampe, Director

David Pendergrass, Director

Executive Director:

Jim Cullem, P.E.

Subject: Letter of Support for the Salinas and Carmel River Basins Study

Dear Director Murillo,

On behalf of The Monterey Peninsula Regional Water Authority, I would like to express our support for theSalinas and Carmel River Basins Study. It is our understanding that the intent of this study is to evaluatethe effects of global climate change on sustainable water supplies. This would include such factors aschanging precipitation patterns, surface water runoff and basin recharge and sea level rise. Further, thebasin study would develop appropriate adaptation strategies to meet the long-term discrepancies of watersupply and demand under the effects of climate change.

It is paramount that the Basin Study program reviews all of the water resources in each basin underinvestigation to help determine the availability of water and to develop a better understanding of the

potential solutions for the long term sustainability of these resources.

We also encourage and support the collaborative effort of the partner entities for submitting this proposal.These partner entities include: Monterey County Water Resource Agency, San Luis Obispo County PublicWorks, Monterey Peninsula Water Management District and the Monterey Regional Water PollutionControl Agency.

The study partner agencies and other stakeholders that represent various interests in the respectiveservice areas are acutely aware of need to balance water supplies and demands for the environment,municipal, industrial, and agriculture. The deliverables from the Basin Study would have contributionsfrom these entities and would assist in developing robust strategies for future considerations.

We strongly encourage the Bureau of Reclamation to consider funding this important Basin Study project.Please contact me at {email address} and/or {phone number} of you have any questions or commentssurrounding our support of this proposal.

Sincerely,

Chuck Della Sala, President


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Item No: 5.

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SUBJECT: Adopt Resolution Approving Brownstein Hyatt Farber Schreck, LLP (Brownstein)as Special Counsel for the period January 1, 2014 through December 31, 2014,authorize the Executive Director to sign a Consent and Waiver of Conflict ofInterest, and Authorize the President to execute an agreement for legal services.

RECOMMENDATION:

It is recommended that the Monterey Peninsula Regional Water Authority (MPRWA) adoptResolution 2014-01 approving Brownstein Hyatt Farber Schreck, LLP as Special Counsel for

the period January 1, 2014through December 31, 2014, authorize the Authority ExecutiveDirector to sign a Consent and Waiver of Conflict of Interest, and authorize the President toexecute an agreement with Brownstein for legal services.

DISCUSSION:

In March 2012, The Authority negotiated an agreement for legal services with Brownstein. The

firm provided special expertise in water law, at a reduced rate, in support of Water Authority

formation and activities.

On January 9, 2014, the Authority authorized preparation of a Resolution approving Brownstein

as Special Counsel through December 31, 2014. The Authority also approved budget

adjustments to cover the cost of Brownsteins services through FY 2013-2014.

In order for the President to sign the agreement, the Authority needs to adopt the resolution and

to authorize the Executive Director to sign a Consent and Waiver of Conflict of Interest.

BUDGET CONSIDERATIONS:

Budget issues were addressed by the Authority at its meeting of January 9, 2014.

ATTACHMENTS:

Resolution 2014-xx

Agreement for Legal Services with Exhibits A and B

Consent and Waiver of Conflict of Interest


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WHEREAS, according to Rule 3-310 of the California Rules of Professional Conduct

applicable to California lawyers which requires informed written consent of all represented

parties because of concurrent representation, MPRWA recognizes that Brownstein is the Special

Counsel for the City of Carmel-by-the-Sea, and for the City of Seaside; and

WHEREAS,Board of Directors wishes to authorize the Executive Director to execute aConsent and Waiver of Conflict of Interest, and hereby acknowledges Brownstein as Special

Counsel for the Monterey Peninsula Regional Water Authority.

NOW, THEREFORE, BE IT RESOLVED, that the Executive Director of MPRWA is

hereby authorized to execute on behalf of MPRWA a Consent and Waiver of Conflict of Interest

thereby acknowledging Brownstein as Special Counsel for the Monterey Peninsula Regional

Water Authority.

NOW, THEREFORE, BE IT FURTHER RESOLVED,that the President of MPRWA

is hereby authorized to execute on behalf of MPRWA an agreement with Brownstein for legal

services for the Monterey Peninsula Regional Water Authority.

PASSED AND ADOPTED BY THE MONTEREY PENINSULA REGIONAL WATER

AUTHORITY this ____day of ____ 2014, by the following vote:

AYES: 0 DIRECTORS:

NOES: 0 DIRECTORS:

ABSENT: 0 DIRECTORS:

ABSTAIN: 0 DIRECTORS:

APPROVED:

ATTEST:


Lesley E. Milton, Clerk to the Authority


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EMPLOYMENT AGREEMENT FOR LEGAL SERVICES

THIS AGREEMENT, made and entered into this ___ day of _____________, 2014, by and

between the MONTEREY PENINSULA REGIONAL WATER AUTHORITY, hereinafter

MPRWA, and the LAW OFFICES of BROWNSTEIN HYATT FARBER SCHRECK, LLP,hereinafter referred to as "Attorney", both of which understand as follows:

A. Term: The term of this Agreement shall be for one (1) year commencing January 1,2014, and shall terminate on December 31, 2014, unless terminated pursuant to paragraph H. of this

Agreement.

B. Compensation. Attorney will provide legal services to MPRWA at no more than

$400/hour for partners and no more than $300/hour for associates, for an approximate average rateof no more than $350.00 per hour, unless special services are required and are pre-approved with theMPRWAs Executive Director.

C. Billing and Reimbursement of Costs. An accounting of services and hours will beprovided to MPRWA on a monthly basis. Attorney shall be reimbursed for actual out-of-pocket

expenses and costs advanced or paid on behalf of the MPRWA, including court reporter fees andcharges, court costs, and costs of outside investigators or experts pertaining to MPRWA litigation.Travel to conduct MPRWA related business expenses shall be billed as actual out-of-pocket costs

unless otherwise negotiated. There will be no charge for actual travel time.

D. Budget. Attorney will not accrue costs for legal services in excess of $59,000between January 1, 2014 and March 31, 2014 and in excess of $62,000 between April 1, 2014 andJune 30, 2014 without prior approval of the Authoritys Executive Director. Services after June 30,

2014 are subject to adoption of an Authority budget for FY 2014-2015.

E. Ordinary Services. Legal advice and legal opinions to MPRWA as outlined in the

Amendment to Agreement for Legal Services dated December 5, 2013 (Exhibit A to this Agreement)and Brownstein Hyatt Farber Schreck, LLP Standard Terms and Conditions (Exhibit B to thisAgreement).

F. Miscellaneous. MPRWA recognizes that Attorney is a private law practice currentlylocated in Santa Barbara, California, and will retain that office as its principal place of business. In

addition, MPRWA recognizes Attorney also represents and advises other public entities uponrequest. Attorney will submit conflict waivers to MPRWA whenever such potential arise during theterm of this contract.

G. Termination. Either party may terminate this Agreement without cause by providingwritten notice to the other party in the manner set forth in item I. of this Agreement at least 30 days

prior to the effective date of termination.

H. Notices. All notices herein provided to be given, or which may be given by either


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party to the other, shall be considered fully received when made in writing and deposited in theUnited States mail, certified and postage prepaid, and addressed to the respective parties as follows:

MPRWA: ATTORNEY:

President, Board of Directors Russell M. McGlothlin

Monterey Peninsula Regional BROWNSTEIN HYATT FARBER SCHRECK, LLPWater Authority 21 East Carrillo Street

580 Pacific Street Santa Barbara, CA93101Monterey, CA 93940

I. Immunity. As an authorized representative of MPRWA, Attorney shall be recognizedas having rights to any immunity MPRWA is entitled to. In no event shall any duties contained inthis Agreement, or otherwise herein, negate any legal protections or immunities available to the

parties under local, state or federal law.

IN WITNESS WHEREOF, MPRWA has caused this agreement to be signed and executed on

its behalf by its President, and duly attested by its Clerk; and the Attorney has signed and executedthis agreement in duplicate originals the day and year first hereinabove written.

MPRWA:

____________________________


ATTORNEY:ATTEST:

_____________________ _________________________Russell M. McGlothlin Clerk of the Board


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As previously discussed, the Monterey Clients understand that Brownstein represents numerous privateand public agency clients throughout California and the western states, as well as on a federal andinternational basis. We currently represent a number of cities and special districts as general and specialcounsel, and are engaged in numerous matters throughout California relating to water law and policy.

Brownstein provides a variety of professional services for its clients, including general counsel services,transactions, litigation, legislative advocacy, regulatory compliance, political and strategic advice, coalitionbuilding and other services.

We recognize that actual conflicts may arise in the future. Should we become aware that ourrepresentation of any current or future client may create an actual conflict of interest with ourrepresentation of the Monterey Clients, either among you or individually with other clients, it is our intent topromptly advise you so that you may decide whether you wish to obtain independent counsel concerningthat matter or consent to Brownsteins continued representation of you.

As of the date of this letter, we are aware of no actual legal conflicts involving the Monterey Clients.However, the attorney-client relationships discussed below may create the potential for a conflict ofinterest. As noted, we have already obtained a conflict waiver out of an abundance of caution even though

the potential for a conflict of interest is so remote that no waiver may be necessary. Each of thesecircumstances has previously been disclosed to the Monterey Clients.

(1) Brownstein represents Carmel in its efforts to acquire Table 13 water rights (as described inSWRCB D. 1632 and related subsequent SWRCB orders) from the Odello Ranch. Carmel isconsidering contracting for Table 13 water rights held by the Odello Ranch, and to obtain ordersfrom the State Water Resources Control Board (SWRCB) and the California Public UtilitiesCommission (CPUC) to authorize a portion of the water rights to be used by California AmericanWater Company (Cal-Am) to service new and expanded water use within Carmel. This requiresagreement by the SWRCB and CPUC to allow an exception from the currently-applicable waterservice moratorium in effect pursuant to orders by the SWRCB and CPUC that are binding on Cal-

Am.

(2) Brownstein represents MPRWA with respect to issues relating to Cal-Ams proposed MontereyPeninsula Water Supply Project (MPWSP) for which Cal-Am is presently seeking approvals fromthe CPUC and other agencies, and efforts to obtain an extension of the Cease and Desist Order inSWRCB WR Order 2009-0060 to allow sufficient time for the completion of the MPWSP. This willlikely include future proceedings before the SWRCB. We also generally represent the MPWSPconcerning water supply by Cal-Am to the Monterey Peninsula, which may involve futureproceedings before the SWRCB, CPUC, other regulatory agencies, or the California Courts.

(3) Brownstein also represents Seaside with respect to matters concerning the SeasideGroundwater Basin (Seaside Basin) and Seasides use of groundwater from the Seaside Basin

(4) Brownstein previously represented Cal-Am with respect to issues pertaining to the CarmelRiver, but no longer does so.

(5) Brownstein also represented the cities of Sand City, Del Rey Oaks, Pacific Grove, Seaside,Monterey and Carmel before the California Public Utilities Commission (CPUC), and other judicialand administrative venues, with respect to the prior proposed water supply project referred to asthe Regional Water Project that was proposed to provide replacement water to Cal-Am, and Cal-

Ams request to approve a moratorium within its Monterey District.


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(6) Brownstein previously represented the City of Monterey with respect to water matters within thecity but no longer does so.

By signing this letter and returning it to us, Carmel, Seaside and MPRWA acknowledge that we have fully

disclosed the foregoing matters to you. Although we do not presently perceive a likely conflict of interestand cannot predict with specificity the manner in which a conflict could arise, the interrelated nature of theCarmel River and the Seaside Basin, which are used by Cal-Am in an integrated manner to serve waterdemands on the Monterey Peninsula, could cause a conflict of interest to arise.

At the same time, it is foreseeable that a conflict of interest may arise in the future. For example, if theMPRWA were to differ with Carmel or Seaside with respect to the strategy and proper approach forcompletion of the MPWSP or efforts to obtain an extension to the SWRCB Cease and Desist Order,Brownstein could not represent any party to that matter without proper informed written consent. Likewise,if the MPRWA were to object to efforts undertaken by Carmel with respect to the Odello water rights, orwere to differ with Seaside with respect to future management of the Seaside Groundwater Basin, a conflictmay arise.

Should an actual conflict occur between the MPRWA, Seaside or Carmel regarding any matter in whichBrownstein represents the Monterey Clients, we will attempt to resolve the conflict in a manner thatprotects our ability to continue our concurrent representation of you. However, that may not be possible orpractical given the ethical rules presented below. Thus, we request that Seaside, the MPRWA and Carmelwaive any potential conflict of interest with respect to our representations as disclosed above. Should aconflict or dispute arise that we cannot resolve informally among the Monterey Clients, we will notrepresent any of the Monterey Clients with respect to the disputed matter.

We very much value our relationship with Carmel, Seaside and MPRWA, and recognize that you are freeto terminate your engagement of Brownstein at any time.

Should you have any questions regarding this letter, please contact me. We respectfully request that yousign and return the enclosed copy of this letter acknowledging that you have been advised of the California

Rules of Professional Conduct and of the potential conflicts associated with your respective interests, andthat you nevertheless agree to the concurrent representation and the waiver of conflicts regarding theMonterey Clients.

We encourage you to seek the advice of independent counsel in reviewing this consent. Should you haveany questions concerning this letter or the consent, please discuss them with your own, independentcounsel before signing and returning the enclosed copy of this letter.

Best Regards,

Russell M. McGlothlin

Brownstein Hyatt Farber Schreck, LLP

Enclosures: California Rules of Professional Conduct


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CONSENT AND WAIVER

The undersigned acknowledge receipt of the above written disclosure pursuant to the California Rules ofProfessional Conduct and understand the matters discussed therein. Having all this information in mind, I

consent and give approval to Brownsteins concurrent representation of Carmel, Seaside and MPRWA asdescribed in this letter, and waive any actual or potential conflict of interest arising from suchrepresentation. In the event that an actual conflict of interest occurs, we will not represent any of theMonterey Clients with respect to the disputed matter.

I acknowledge that I have had an opportunity to review this matter with independent legal counsel. In theevent that I have not discussed the matter with a legal counselor of my choice before executing thisconsent/waiver, I freely and voluntarily waive such counsel, although I understand that I have the right toseek such independent counsel regarding this matter at any time.

CITY OF SEASIDE

By: _______________________________ Dated: _________________Daphne HodgsonDeputy City Manager, City of Seaside

MONTEREY PENINSULA REGIONAL WATER AUTHORITY

By: _______________________________ Dated: _________________James Cullem

Executive Director

CITY OF CARMEL-BY-THE-SEA

By: _______________________________ Dated: _________________Jason StillwellCity Administrator, City of Carmel-by-the Sea


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013849\9000\10996032.1

California Rules of Professional Conduct, Rule 3-310 (B) and (C)

"(B) A member shall not accept or continue representation of a client without providing writtendisclosure to the client where:

(1) The member has a legal, business, financial, professional, or personalrelationship with a party or witness in the same matter; or

(2) The member knows or reasonably should know that:(a) the member previously had a legal, business, financial, professional, or

personal relationship with a party or witness in the same matter; and

(b) the previous relationship would substantially affect the membersrepresentation; or

(3) The member has or had a legal, business, financial, professional, or personalrelationship with another person or entity the member knows or reasonably shouldknow would be affected substantially by resolution of the matter; or

(4) The member has or had a legal, business, financial, or professional interest in thesubject matter of the representation.

(C) A member shall not, without the informed written consent of each client:

(1) Accept representation of more than one client in a matter in which the interests of

the clients potentially conflict; or

(2) Accept or continue representation of more than one client in a matter in which the

interests of the clients actually conflict; or

(3) Represent a client in a matter and at the same time in a separate matter accept asa client a person or entity whose interest in the first matter is adverse to the clientin the first matter.


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Item No: 6.

06/12

FROM: Clerk Milton

SUBJECT: Authorize Extension of Contract with the City of Monterey For Executive DirectorServices.

RECOMMENDATION:

It is recommended that the Monterey Peninsula Regional Water Authority (MPRWA) extend thecontract for employment services with the City of Monterey, which with the approval of theWater Authority, has hired James M. Cullem as an employee and is willing to appoint him asExecutive Director for the MPRWA.

DISCUSSION:

At its meeting of January 24, 2013, the Water Authority approved Resolution 2013-04 and

entered into a contract with the City of Monterey for employment services. Other than changes

in the annual budget approved by the Water Authority and the fact that James Cullem has since

replaced Bill Reichmuth as Executive Director, the staff report, resolution, and scope of services

from the January 24thmeeting remain current and are attached herewith.


Budget adjustments pertaining to the Executive Director position for FY 2013-2014 wereapproved by the Authority at its meeting of April 25, 2013. Funding of the position for FY 2014-

2015 will be addressed at the Water Authority budget meeting in April 2014.

ATTACHMENTS:

Staff Report dated January 24, 2013

Resolution 2013-04

Scope of Services (Exhibit A to Resolution 2013-04)


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Monterey Peninsula Regional Water AuthorityMonterey Peninsula Regional Water AuthorityMonterey Peninsula Regional Water AuthorityMonterey Peninsula Regional Water AuthorityAgenda ReportAgenda ReportAgenda ReportAgenda Report


Item No: 6.

08/12

FROM: Interim Executive Director Meurer

Prepared By: Clerk to the Authority Milton

SUBJECT: Adopt a Resolution Authorizing a Contract with the City of Monterey for Executive

Director Services

RECOMMENDATION:

That the Authority adopt a Resolution authorizing a contract for employment services with theCity of Monterey who, with input from the Authority Directors, selected Bill Reichmuth as an

employee and is willing to appoint him as Executive Director to the Monterey PeninsulaRegional Water Authority (MPRWA).

POLICY IMPLICATIONS:

This recommendation, in part, supports the MPRWA Joint Powers agreement and mission toensure the timely development, financing, construction, operation, repair, and maintenance ofone or more water supply projects to replace pending lost water supplies and to ensure that thegovernance of such projects includes representation that is directly accountable to the Citiesresidents that are served by such projects and to undertake any additional related or ancillaryactions.

FISCAL IMPLICATIONS:

The revised Fiscal Year 2012-13 budget approved on January 10, 2012 included a line itembudget for the professional services of an Executive Director. This position will be an employeeof the City of Monterey and the Authority will contract for services, not to exceed $72,588 for FY2012-13.

ENVIRONMENTAL DETERMINATION:

The proposed action is not a project as defined by the California Environmental Quality Act.

ALTERNATIVES CONSIDERED:

The Authority could chose not to execute this contract but the ability of member City Managersto act as Executive Director to facilitate the operations of the Authority has proven to be lessefficient due to their current obligations and time capacity.


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DISCUSSION:

The City of Monterey managed the recruitment process for the MPRWA Executive Directorposition. The City received 17 applications. The City transmitted the applications to an Ad Hoccommittee of Mayor Garcia and Mayor Pendergrass for review. The Ad Hoc committeerecommended three (3) applicants to be considered by the full Authority. The Authorityinterviewed the three (3) candidates on October 8, 2012. At that time, the Authority decided notto proceed with hiring an Executive Director. At the December 24, 2012 meeting, the Authoritydirected staff to again proceed with hiring an Executive Director and requested a member city tosponsor the position as an employee and to contract for services, similar to the currentagreement with the City of Monterey for clerk services. The City of Monterey facilitated thisrequest, approving an amendment to their Position Control List to add the Water AuthorityExecutive Director position to their part-time salary schedule. As confirmed by both MPRWAand the City of Monterey, this position will be an employee of the City of Monterey and theAuthority will contract with the City of Monterey for this service.

At the January 10, 2013 meeting the Authority amended the Fiscal Year 2012-13 budget toinclude expenses for the position.

The proposed budget of the Executive Director is provided below.

$

$

$ (%)

The Authority will reimburse the City of Monterey for the expenses as listed above. TheExecutive Director compensation will be $100.00 per hour for actual hours worked. The purposeof this arrangement is to allow the individual to fall under the City of Monterey current policiesand premiums. This will eliminate additional costs to the Authority for these same services.

City Manager Meurer, fulfilling the position of Interim Executive Director for the Authority, hasfacilitated the recruitment process of the Executive Director position and, with input from theAuthority Directors, has appointed Bill Reichmuth. It is recommended that the Authority approvea Resolution authorizing the Authority to enter into the contract with the City of Monterey forExecutive Director services.

Attachments: 1. Resolution

c: President Della SalaLegal Counsel FreemanInterim Executive Director and TAC Chair Burnett


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ChuckDellaSala, President1AAority erk to the

RESOLUTIONNO. 13004 C.S.

RESOLUTION OF THEMONTEREYPENINSULREGIONAL WATERAUTHORITY

APPROVEAMENDEDCONTRACTFOREXECUTIVEDIRECTORSERVICESWITHTHECITYOFMONTEREYANDAUTHORIZEINCREASEDLIM ITSTOSPECIAL

LIABLITYINSURANCEPREMIUM

WHEREAS, onJanuary24,2013theAuthority adopted Resolution13-04authorizingthePresidenttoexecuteacontractwiththe CityofMontereyforExecutiveDirector Services;and

WHEREAS, theindividual thatwasselectedforthepositionof ExecutiveDirector, WilliamReichmuth,isalicensedprofessionalengineer; and

WHEREAS sinceselecting Mr. Reichmuth ithasbeen recommended that the MPRWAincreasethecurrent SpecialLiability InsurancePremiumpolicyinordertoprotect theMPRWAintheeventof litigation;and

WHEREAS, thePresidentandMPRWADirectors havereviewedtheamended contract andagreestoitstermsandconditions.

NOW, THEREFORE, BEITRESOLVEDthatthePresident isherebyauthorizedtoexecuteanamended agreement onbehalfof theMPRWAtocontractwiththe City ofMontereyforExecutiveDirector/LicensedProfessional EngineerServices.

BE ITALSORESOLVEDthatthe MPRWAauthorizesan increase inthe Special LiabilityInsurance Premiumto cover the Executive Directorpositionwithadesignationof LicensedProfessionalEngineer and thecostsincurredfromsuchaction.

PASSEDANDADOPTED BYTHE MONTEREYPENINSULAREGIONALWATERAUTHORITYthis14thdayofFebruary2013, bythefollowingvote:

AYES:NOESABSENT:ABSTAIN

6DIRECTORS:DIRECTORS:DIRECTORS:DIRECTORS:

Edelen, Kampe,Pendergrass,Rubio, AlternateTalmage, DellaSalaNoneNoneNone

APPROVED:

ATTEST:


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AGREEMENT FOR EXECUTIVE DIRECTOR SERVICESCity of Monterey and M onterey Peninsula Regional Water Au thority

THIS AGREEMENT for Executive Director Services is made and entered into this/flay of2013, by and between the City of Monterey (hereinafter Monterey ), a municipalcorporation, as the service provider, and the M onterey Peninsula Regional W ater Authority, a JointPowers Authority (hereinafter MPR W A ).WH ERE AS, MP RW A desires to utilize the City of Monterey for Executive Director services,as outlined in d etail in the attached Exhibit A; andWHEREAS, Monterey is willing and qualified to provide such services to MPRWA upon theterms and conditions set forth herein; andWH ERE AS, California Governmen t Code section 54981 provides the City Council of the Cityof Mon terey and the Board of Directors of MPRW A w ith the authority to contract for performance ofservices by one agency to an other; andWH EREA S, the Monterey City Council authorized this agreement on February 5, 2013 by thepassage of Resolution No. 13-021.WHEREAS, the MPRWA Board of Directors authorized this agreement on January 24, 2013.NO W , THER EFOR E, in consideration of the recitals and the mutual obligations of the partiesas herein expressed, Monterey and M PRW A agree as follows:

1. SERVICES TO BE PROVIDED The M PRW A hereby engages Monterey to perform, andMo nterey hereby agrees to perform, the services described in Exhibit A in conform ity with the termsof this Agreem ent.1 01 The City of Monterey appoints Bill Reichmuth to serve as Executive Director to theMonterey Peninsula Regional Water Authority (MPRWA) subject to MPRWA's approval. Nosubstitution in the appointment shall be m ade without the express written consent of the Board ofDirectors for the MPRWA.

2. PAYMENTS BY MPRWA MPRWA shall pay Monterey in accordance with the paymentprovisions set forth in Exhibit A subject to the limitations set forth in this agreem ent.3. TERM OF AGREEMENT.

3 01 INITIAL TERM The term of this Agreement shall commence as of the date ofexecution of this Agreem ent and shall end one (1) year from said date, unless sooner terminatedpursuant to the terms set forth in section 8 herein.


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3.02. EXTENSIONS. This Agreement may be extended by consecutive one (1) year periods,or for shorter extension periods as agreed to by the parties, by written mutual agreemen t of the partiesCity M anager and Board o f Directors specifying the renewal and end dates. At the time of anyextension, or at any other time as may be necessary during the term of the A greement, the rates set forth inExhibit A may be adjusted by written agreement between the Monterey City Manager and MPRW ABoard of D irectors. Should either party decide not to extend the Agreemen t beyond the initial one (1)year or subsequent one (1) year terms, notice of such decision shall be provided to the o ther party nolater than thirty (30) days before the expiration date of the A greement.4 ADDITIONAL PROVISIONS/EXHIBITS The following attached exhibits are incorporatedherein by reference and constitute a part of this Agreement.

Exhibit A cope of Services Paymen t Provisions5 PERFORMANCE STANDARDS

5.01. Monterey s agents, employees, and subcontractors performing services under thisAgreemen t are trained, experienced, competent, and ap propriately licensed (if applicable) to performthe work and deliver the services required under this Agreement.5.02. Monterey, its agents, employees and subcontractors will endeavor to perform all workin a safe and skillful manner and in comp liance with all applicable laws and regulations.5.03. Monterey shall furnish all materials, equipment, and personnel necessary to carry outthe specific services set forth in Exhibit A herein, except as otherwise specified in this A greement.Monterey shall not use MPRWA s premises, property (including equipment, instruments, or supplies)or personnel for any purpose other than in the performance of its obligations under this Agreem ent.

6 EXCLUSIONSa. Mo nterey shall not be responsible for d iscretionary reviews including, but not limited to:California Environmental Quality Act; National Environm ental Protection Act; Clean W aterAct: National Pollutant Discharge Elimination System Storm W ater Post-Construction or localcodes and regulations regarding environm ental review.

7 PAYMENT CONDITIONS7.01. Payment for Mon terey s services under this Agreement shall be made by M PRW Amonthly upon submission by Monterey of an invoice. Payment shall be made within thirty (30) days afterreceipt of such invoice.

8 TERMINATION8.01. During the term of this Agreement, either party may terminate the Agreement for anyreason by giving written notice of termination to the other party at least thirty (30) days prior to theeffective date o f termination. Any termination notice shall set forth the effective date of termination.

2


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9 . MMUNITY.As MPRWA s authorized representative, Monterey shall be recognized as having rights to anyimmunities it is entitled to. In no event shall any duties contained in Exhibit A or otherwise herein,negate any legal protections or imm unities available to the parties under local, state or federal law.10. INDEMNIFICATION.Both parties explicitly acknowledge that M onterey is leasing services of the Executive Director toMPRWA as an accommodation to MPRWA and that full indemnification by MPRWA to Monterey isbargained-for consideration that is imperative to this Agreement. Accordingly, MPRWA hereby agreesto the following indem nification and h old harmless clause:

10.01 MPRWA shall indemnify, defend, and hold harmless Monterey, to the fullest extentallowed by law, from any liability, demand, claim, suit, cause of action, or other legal proceeding,including attorney s fees, which may be brought or claimed against Monterey, except for the solenegligence or willful misconduct of Monterey.10.02 Except for any duties either Party owes to the other pursuant to the provisions of thisAgreemen t, nothing in this Agreement shall be construed to waive any legal protections or immu nitiesavailable to the Parties under state or federal law11. INSURANCE.

11.01 MPRWA shall maintain in effect, at its own cost and expense, the following insurancecoverage:a. General Liability, Special Liability, or Public Liability, inclusive of auto and professional

services coverage, with minimum limits of 10 ,00 0,0 0 0 per occurrence and shall have itsinsurance policy endorsed to name the City of Mo nterey as additionally insured.11.02 All insurance required by this Agreement shall:a. Be placed (1) with companies admitted to transact insurance business in the State ofCalifornia and with a current A.M . Best rating of no less than A:VI or w ith carriers with acurrent A.M . Best rating of no less than A:VII; or (2) disclosed self-insurance with limitsacceptable to the other party;b. Provide that each party s insurance is primary and non-contributing insurance to any

insurance or self-insurance maintained by the other party and that the insurance of the otherparty shall not be called upon to contribute to a loss covered by a party s insurance; andc. Subsequent to execution of this A greement, each party shall file certificates of insurancewith the other party ev idencing that the required insurance is in effect.

12. ON-DISCRIMINATION. During the performance o f this Agreement, Monterey, and itssubcontractors, shall not unlawfully discriminate against any p erson because o f race, religious creed,


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color, sex, national origin, ancestry, physical disability, mental disability, medical con dition, maritalstatus, age (over 40), or sexual orientation, either in Monterey s employment practices or in thefurnishing of services to recipients. Monterey shall ensure that the evaluation and treatment of itsemployees and applicants for employmen t and all persons receiving and requesting services are free ofsuch discrimination. Monterey and any subcontractor shall, in the performance of this A greement, fullycomp ly with all federal, state, and local laws and regulations which prohibit discrimination. Theprovision of services primarily or exclusively to such target pop ulation as may be designated in thisAgreem ent shall not be deemed to be prohibited discrimination.13 INDEPENDENT CONTRACTOR In the performance o f work, duties, and obligationsunder this Agreem ent, Monterey is at all times acting and p erforming as a pub lic entity andindependent contractor and not as an employee of M PRW A. No offer or obligation of permanentemployment with MPRW A or particular MPRW A department or agency is intended in any manner,and Mo nterey shall not become entitled by virtue of this Agreem ent to receive from M PRW A anyform o f emp loyee benefits including but not limited to sick leave, vacation, retirement benefits,workers compensation coverage, insurance or disability benefits.14 NOTICES Notices required under this Agreem ent shall be delivered personally or byfirst-class, postage pre-paid mail to MPRWA s and Monterey s contract administrators at the addresseslisted below:

FOR MPRWA:Chuck Della SalaPresident of the BoardCity HallMonterey, CA 93940

Ph: 831-646-3935

FOR MONTEREY:Fred MeurerCity ManagerCity HallMonterey, CA 93940

Ph. 831) 646-376015 MISCELLANEOUS PROVISIONS

15.01. Conflict of Interest. Monterey represents that it presently has no interest and agrees notto acquire any interest during the term of this Agreem ent which w ould directly or indirectly conflict inany m anner or to any degree w ith the full and complete performance o f the professional servicesrequired to be rendered under this Agreement.15 02 Amendment This Agreement may be amended or modified only by an instrument inwriting signed by MPRWA and Monterey.15 03 Waiver Any waiver of any terms and conditions of this Agreement must be in writingand signed by MPRWA and Monterey. A waiver of any of the terms and conditions of this Agreementshall not be construed as a waiver of any other terms or conditions in this Agreement.

4


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15.04. Contractor. The term Monterey as used in this Agreement includes Monterey'sofficers, agents, and employees acting o n M onterey s behalf in the performance of this A greement.15.05. Disputes. Monterey shall continue to perform under this Agreement during anydispute. Monterey and M PRW A hereby ag ree to make good faith efforts to resolve disputes as quickly

as possible. In the event any dispute arising from or related to this Agreement results in litigation orarbitration, the prevailing party shall be entitled to recover all reasonable costs incurred, includingcourt costs, attorney fees, expenses for ex pert witnesses (whether or no t called to testify), expenses foraccountants or appraisers (whether or not called to testify), and other related expenses. Recovery ofthese expenses shall be as additional costs awarded to the prevailing party, and shall not requireinitiation of a separate legal proceeding.15.06. Assignment and Subcontracting. Monterey shall not assign sell or otherwise transferits interest or obligations in this Agreement without the prior written consent of MPR WA . None of theservices covered by this Agreem ent shall be subcontracted without the prior written approval ofMP RW A. Notw ithstanding any such subcontract, Mon terey shall continue to be liable for the

performance of all requirements of this Agreement.15.07. Successors and Assigns. This Agreement and the rights privileges duties andobligations of MPRW A and M onterey under this Agreement, to the extent assignable or delegable,shall be binding upo n and inure to the benefit of the parties and their respective successors, permittedassigns, and heirs.15.08. Compliance with Applicable Law. The parties shall comply with all applicable federal,state, and local laws and regulations in performing this Agreem ent.15.09. Headings. The headings are for convenience only and shall not be used to interpret the

terms of this Agreemen t.15.10. Time is of the Essence. Time is of the essence in each and all of the provisions of this

Agreement.15.11. Governing Law. This Agreement shall be governed by and interpreted under the laws

of the State of California.15.12. Non-exclusive Agreement. This Agreement is non-exclusive and both MPRWA andMo nterey expressly reserve the right to contract with other en tities for the sam e or similar services.15.13. Construction of Agreement. MPRWA and Monterey agree that each party has fully

participated in the review and revision of this Agreemen t and that any rule of construction to the effectthat ambiguities are to be resolved against the drafting party shall not apply in the interpretation of thisAgreemen t or any amendment to this Agreemen t.15.14. Counterparts. This Agreement may be executed in two or more counterparts each ofwhich shall be deem ed an original, but all of which together shall constitute one and the sameAgreement.


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EXHIBIT ASCOPE OF SERVICES PAYMENT PROVISIONSEXECUTIVE DIRECTOR SERVICES

I ity of Monterey to Provide the Following:A. Executive Director Duties and Services Policy Functions

W ork to prepare agendas and packets for Board TA C meetings Prepare recomm endations on policy matters and action items Respond to A uthority requests for information or agenda items Keep press/media informed of MPR WA actions Address requests for information or statements by public or m edia as appropriate Coordinate with Chair of the Technical Advisory C omm ittee regarding board delegationsand placing TA C m atters before the Au thority for consideration/action

B Administrative Functions

Serve as liaison to the City M angers of the mem ber cities Maintain listing of forthcoming CP UC workshops and hearings, assist Authority indeveloping positions and instructing their representatives Coordinate with legal services so board requests are met in a timely way Work with agency proving clerk services for agenda management, recordation ofminutes, maintenance of records, comp lying with Public records act requests, andrelated matters Coordinate with the designated fiscal agent, on financial matters, and coordinate withthe Authority Treasurer to maintain accounts of MPRWA Prepare budget necessary to support agency s ability to perform functions Maintain list of contracts approved by the M PRW A Develop policy binder of all board adopted policies Develop program s as necessary to implement po licy direction of B oard Maintain wo rking files as necessary to adm inister the core functions Arrange for places for regular and special meetings of M PRW A, unless delegated toanother party Protect, maintain and keep inventory of MPRW A property and equipment Schedule meetings of such Com mittees (Regular and Ad HOC) as the MPRW A have

created, and coordinate with Chair to see that the work of M PRW A proceeds Performs other duties as required to best ensure the smooth operation of MPR W AC . iscellaneous Services Performed by C ity of Mon terey:

Payroll Services for Monterey em ployee(s) providing these services (this emp loyee w illbe allocated within the Office of the City Manager to be paid as part of the City sregular payroll to the em ployee performing the services described in Exhibit A h erein)7


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Tracking of emp loyee hours and resultant costs of services provided Invoices requesting paym ent for services are to be submitted on a m onthly basis by theCity of Mo nterey to the designated fiscal agency

II PRW A to Provide the Following: Reimbu rsement to the City of Monterey shall be made within thirty 30) days afterreceipt of invoice

III. xecutive Director Rate and udgetExecutive Director Services Hourly Rate and Expenses

105.20600490

114,66817,200

131,868

Benefited Wage Per HourHours Budgeted Through July 30, 2013Hours Budgeted July 1 through December 31, 2013Total WagesAdministrative, Travel and Meeting Expenses (15%)

*Note - MPRWA budget is based on a fiscal year. A new budget for Executive Director expenseswill be created for fiscal year 2014. This contract is contingent upon the MPRWA approving thebudget for the Executive Director position for Fiscal year 13-14.


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Item No: 7.

06/12


SUBJECT: Adopt Financial Procedures Policy

RECOMMENDATION:

It is also recommended that the Authority receive and adopt the attached Financial ProceduresPolicy.

DISCUSSION:

At the February 13, 2014 Authority meeting the Directors received the completed the FinancialAnnual Report and a Full Opinion Audit for FY 2012-13 completed by the contracted auditingfirm McGilloway, Ray, Brown and Kaufman (Kaufman).

As part of the audit, Kaufman prepared a management letter identifying areas that neededimprovement in the Authoritys financial management systems. Both the audit and managementletter were presented and briefed to the Ad Hoc Financial Committee on January 23, 2014.

In response to the suggestions from Kaufman with respect to areas in need of improvement,staff has prepared the attached Authority Financial Procedures Policy for review and adoption.

ATTACHMENTS:

1. Fiscal Year 2012-2013 Audit and Letters

2. Draft Water Authority Financial Policies and Procedures


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Monterey Peninsula Regional Water AuthorityFinancial Policies and Procedures

Adopted:

GENERAL PURPOSE

The purpose of this document is to establish guidelines for developing financial goals and objectives,

not outlined in the Bylaws or the JPA Agreement, regarding making internal financial decisions,

reporting the financial status of the Agency, and managing the Agencys funds. The adopted annual

budget provides funding approval for the purchase and payment for services. The ultimate goal is to

ensure the following:

1. The orderly and efficient receipt of funds2. The safeguarding of cash and monetary assets.3. The prevention or detection of errors and fraud.4. The accuracy and completeness of the accounting records.5. The timely preparation of reliable financial information.

POWERS AS GRANTED IN THE JPA AGREEMENT AND BYLAWS

ARTICLE 12-JPA

ACCOUNTING PRACTICES

12.1 General. The Board of Directors shall establish and maintain such funds and accounts asmay be required by generally accepted public agency accounting practices. The Authority shall

maintain strict accountability of all funds and report of all receipts and disbursements of the

Authority.

ARTICLE 13-JPA

BUDGET AND EXPENSES

13.1 Budget. Within 90 days after the first meeting of the Board of Directors, and thereafterprior to the commencement of each fiscal year, the Board shall adopt a budget for the Authorityfor the ensuing fiscal year. In the event that a budget is not so approved, the prior years budget

shall be deemed approved for the ensuing fiscal year, and any assessment(s) of contributions of

Members approved by the Board during the prior fiscal year shall again be assessed on the

Members in the same amount and terms for the ensuing fiscal year.


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13.2 Authority Funding and Contributions. For the purpose of funding the expenses andongoing operations of the Authority, the Board of Directors shall maintain a funding account inconnection with the annual budget process. The Board of Directors shall issue assessments for

contributions by the Members to fund said account in the amount and frequency determined

necessary by the Board. Assessments for Member contributions shall be made by each Member

in proportion to the weighted vote of each member as determined pursuant to Section 8.2, andtherefore no Member shall be required to make contributions to the Authority in excess of that

portion of each assessment that is equivalent to the weighted vote possessed by its Director.Such contributions shall be paid by each Member to the Authority within sixty (60) days of

assessment by the Board.

13.3 Return of Contributions. In accordance with Government Code section 6512.1,repayment or return to the Members of all or any part of any contributions made by Members

and any revenues by the Authority may be directed by the Board of Directors at such time andupon such terms as the Board of Directors may decide; provided that (1) any distributions shall

be made in proportion to the contributions paid by each Member to the Authority, and (2) any

capital contribution paid by a Member voluntarily, and without obligation to make such capitalcontribution pursuant to Sections 13.2, shall be returned to the contributing Member, together

with accrued interests at the annual rate published as the yield of the Local Agency Investment

Fund administered by the California State Treasurer, before any other return of contributions tothe Members is made. The Authority shall hold title to all funds and property acquired by the

Authority during the term of this Agreement.

ARTICLE 6-BY-LAWS

FINANCE POLICY

6.1 Deposit and Disbursement of Funds All funds of the Authority shall be deposited in one ormore depository accounts as may be designated by the Board. Such accounts shall beindependent of any account owned by or exclusively controlled by any of the Members. Nodisbursements of such funds shall be made unless the same shall have been approved in theannual operating budget, or otherwise specifically approved by the Board. All disbursementsshall be by check. Disbursements of not more than five thousand dollars ($5,000) may beissued pursuant to the Treasurer's sole signature. Disbursements in excess of five thousanddollars ($5,000) may only be issued upon the signature of the Treasurer and President, or in thePresident's absence, the Vice-President.

FINANCIAL RESPONSIBILITIES AND PROCEDURES

1. RESPONSIBILITIES OF AUTHORITY STAFF

It is the responsibility of the Board of Directors to formulate financial policies and review operations andactivities on a periodic basis. It is the responsibility of the Executive Director to implement all financialpolicies and procedures and coordination of the following: Annual budget presentation, managementof the contracts and expenditures, monitoring accounts receivables, and approving revenue andexpenditure objectives in accordance with the Board approved expenditures and budget.


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Item No: 8.

06/12


SUBJECT: Receive Report, Discuss and Provide Direction Regarding Issues andImplications of Commissioning a Study Regarding a Public Take Over of Cal Am.

RECOMMENDATION:

It is recommended that the Monterey Peninsula Regional Water Authority (MPRWA) considerthe issues and implications of Commissioning a Study Regarding a Public Acquisition of CalAm.

DISCUSSION:

In response to a number of public requests to have the Water Authority address the subject of

the acquisition of Cal Am by a public agency, the Water Authority TAC discussed the subject at

its meeting of February 3, 2014.

After deliberation, the TAC recommended that the Water Authority first consider if the issue

was appropriate for consideration in light of section 2.2 of the Joint Exercise of Powers

Agreement dated February 14, 2013 which addresses the purpose of the Authority which is to

(1) ensure the timely development, financing, construction, operation, repair, and

maintenance of one or more Water Projects; and (2) ensure that the governance of such WaterProjects includes representation that is directly accountable to the water users within the

incorporated Cities and unincorporated portions of the County.

In addition, the TAC raised the question of how any action, a study, might be interpreted by the

CPUC and the State Water Resources Control Agency in light of their sensitivity to any

implication that public or political support for the Monterey Peninsula Water Project might be

fragmenting.

The TAC also noted that the impact on future bond funding in the commercial markets, in case

of future eminent domain with respect to ownership of Cal-Am facilities, is currently unknown.

Should the Water Authority decide to consider a contract for a study of an acquisition of Cal-Am,

staff can investigate firms capable of providing that analysis.

OPTIONS:

Staff suggests that the Water Authority has four options:


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1. Commission a study of a public takeover of Cal-Am with the intent to provide information

prior to a vote by the public.

2. Commission a study of a public takeover of Cal-Am with the intent to provide a Water

Authority recommendation prior to a vote by the public.

3. Defer consideration of study until some undetermined time after a vote by the public.4. Determine that commissioning a study of the subject is outside the purpose of the Water

Authority.


A study to analyze a public takeover of Cal-Am is estimated to cost approximately $50,000.


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Item No: 9.

06/12


SUBJECT: Receive Report and Discuss Status of Monterey Peninsula Water SupplyProject:

a. Status of Borehole Construction

b. Water Analysis

c. Progress of Power Purchase Agreement with the MRWMD

d. Revised CPUC Schedule

DISCUSSION:

There is no written Report for this item. A verbal report will be given at the meeting.

ATTACHMENT:

CPUC Schedule Dated 3/3/2014


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85973573 - 1 -

ANG/ek4 1/27/2014

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of California-American WaterCompany (U210W) for Approval of theMonterey Peninsula Water Supply Projectand Authorization to Recover All Presentand Future Costs in Rates.

Application 12-04-019(Filed April 23, 2012)

RULING SETTING FORTH UPDATED SCHEDULEAND ADDRESSING OTHER MATTERS

1. Updated Schedule

At the hearing held on December 2, 2013, Mr. Svindland of

California-American Water Company (Cal-Am) provided additional information

regarding the timing of the bore hole drilling and analysis, in response to my

questions. (RT 2159:12 2161:2). I have consulted with Energy Division Staff

working on the Draft Environmental Impact Report (DEIR) that will be issued in

compliance with the California Environmental Quality Act (CEQA) regarding

the schedule for publishing the DEIR. Staff informs me that Cal-Am has not yet

received clearance from the City of Marina to drill additional bore holes at the

Cemex site. Those bore holes would provide additional information on the

hydrogeologic conditions in the area of the site.

As set forth in the proposed Comprehensive Settlement Agreement, after

the bore holes are drilled, the hydrogeology technical group will meet and

prepare a technical memo that will be served on parties, and the available

analysis will be incorporated into the models for the DEIR. The issuance of the

FILED1-27-14

01:17 PM


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A.12-04-019 ANG/ek4

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DEIR will be delayed. The updated schedule is set forth below for Phase 1

(which considers the issuance of a Certificate for Public Convenience and

Necessity (CPCN) for the project):1

CPCN Track CEQA Track

January 20, 2014 Opening Briefs onSettlement Proposals

February 14,2014

Closing Briefs onSettlement Proposals

3rdQuarter2014

DEIR circulatedfor comment

15 days after

issuance of DEIR

Cal-Am to file and serve a

common outline for legaland policy briefs, afterconsultation with parties

45 days afterissuance ofDEIR

Comments onDEIR due

60 days afterissuance of DEIR

Common Outline OpeningBriefs filed and served onlegal and policy issues

75 days after

issuance of DEIR

Reply Briefs filed and

served on legal and policyissues

1st Quarter2015

DEIR published

1st Quarter 2015 Phase 1 Proposed Decisionaddressing certification ofFEIR and issuance of CPCN

1st Quarter 2015 Target for CommissionAction on Phase 1 PD

1 To the extent that these dates land on weekends or holidays, parties shall adhere tothe computation of time requirements set forth in Rule 1.15.


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The schedule for Phase 2, which was set forth in President Peeveys

Amended Scoping Memo Ruling, dated September 25, 2013, remains unchanged.

2. Declaration of Drought by Governor Brown

On Friday, January 17, 2014, Governor Brown proclaimed a State of

Emergency due to current drought conditions. I direct Cal-Am to file and serve a

compliance filing no later than February 7, 2014 that describes the impacts, if

any, of the emergency proclamation on this proceeding. Interested parties may

file and serve comments on the compliance filing no later than February 21, 2014.

3. Communications from Stephen Collinsand Motion filed by Public Trust Alliance

As set forth in my e-mail of December 9, 2013, I received three e-mails

from Stephen Collins, dated December 6, 2013, December 7, 2013, and

December 9, 2013. I instructed Mr. Collins to remove my name from the mass

e-mail list that he is using and have also instructed the Information Technology

Department at the Commission to ensure that I do not receive communications

from Mr. Collins. I briefly skimmed the e-mails and did not read the

attachments. The e-mails and attachments are included in this Ruling so that

parties are fully apprised.

On December 5, 2013, Public Trust Alliance (PTA) filed and served a

motion requesting the production of additional evidence as to whether the

proposed Settlement Agreements would be consistent with the requirements of

CEQA. As has been stated several times, most recently in the Amended Scoping

Memo and Ruling dated September 25, 2013, evidentiary hearings on the

environmental reporting track will not be convened. Parties to the Proposed

Settlement Agreement represent that to the extent any of the measures in the


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Settlement Agreement are incompatible with those in the Final DEIR, only those

in the Final DEIR will be pursued.2 At any rate, the Commission must evaluate

the proposed Settlement Agreements in light of the environmental documents, as

is clearly provided for in the schedule for this proceeding. PTAs motion is

therefore denied.

Therefore, IT IS RULEDthat:

1. The updated schedule for Phase 1 is set forth in this Ruling.2. No later than February 7, 2014, California-American Water Company shall

file and serve a compliance filing that details the impact, if any, on this

proceeding of Governor Browns proclamation of a drought State of Emergency

issued on January 17, 2014. Interested parties may file and serve comments on

the compliance filing no later than February 21, 2014.

3. To the extent that the dates set forth in this ruling fall on a weekend orholiday, parties shall adhere to the computation of time requirements set forth in

Rule 1.15.

4. The communications and attachments sent to me by Stephen Collins areattached to this Ruling.

2 Settling Parties Motion to Approve Settlement Agreement, dated July 31, 2013, at 9.


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5. The motion filed and served by Public Trust Alliance on December 5, 2013is denied.

Dated January 27, 2014, at San Francisco, California.

/s/ ANGELA K. MINKIN

Angela K. MinkinAdministrative Law Judge

mprwa agenda packet 03-13-14

Documents