Governance
Committee
for the
Monterey
Peninsula Water Supply Project
California American Water Monterey County Board of Supervisors
Monterey Peninsula Regional Water
Authority Monterey
Peninsula Water Management District
EXHIBIT 1-A
DRAFT MINUTES
Monterey Peninsula
Water Supply Project
Governance
Committee
April
22, 2013
Call to Order: The
meeting was called to order at 2:05 pm in the MPWMD conference room.
Members present: Jason Burnett, Monterey Peninsula Regional
Water Authority (MPRWA)
Jeanne
Byrne, (Alternate to Robert S. Brower, Sr.) Monterey Peninsula Water Management District (MPWMD)
Robert
MacLean, California-American Water (Cal-Am)
Members absent: David Potter, County of Monterey (County)
Robert
S. Brower, Sr., MPWMD
Pledge of Allegiance: The assembly recited the Pledge of
Allegiance
Public Comments: No comments were directed to the committee.
Agenda Items
The
Chair received public comment on each agenda item.
1. Approve
Minutes of March 20, 2013 Committee Meeting
On a motion by
Brower and second of Burnett, the minutes were adopted on a vote of 2 – 0 by
Brower and Burnett.
2. Adopt
2013 Governance Committee Meeting Schedule
Staff will
revise the schedule in order to conform to dates the Cal-Poly Design Team is
available, and to allow for sufficient review of the Design/Build Request for
Proposals.
3. Presentation
from William Merry, General Manager of Monterey Regional Waste Management
District (MRWMD) on Landfill Gas as an Alternative Energy Source for a Desal
Facility
Merry stated that
the MRWMD does support providing landfill gas power to the proposed
desalination facility. There is an
opportunity to provide “over the fence” power, but a power purchase agreement
will be needed. Merry explained that 5 megawatts
of power are produced by the MRWMD currently and within 24 months production
will be increased by 2 megawatts. Pacific Gas and Electric has a contract to
purchase that power through 2015. The
MRWMD has several options for distribution of the landfill gas after the
contract expires. Cal-Am must decide if
renewable power is preferred for its desalination plant, and if the source should
be MRWMD or another vendor. Merry noted
that the cost of renewable power has been reduced over the years, as more
renewable power sources have been developed.
The MRWMD would sell the power for the highest rate that could be
negotiated. He agreed that development
of term sheet would be a good first step in putting together a draft purchase
agreement.
There was consensus among the
committee members that Bill Reichmuth should coordinate with William Merry and
Richard Svindland on development of a term sheet that would be submitted for
review at a future Governance Committee meeting.
4. Review
California Public Utilities Commission (CPUC) Response to Governance committee
Request for Workshop on Groundwater Replenishment Project (GWR)
A. Develop
Agenda Topics for CPUC Workshop on GWR
Burnett announced
that at the request of the Governance Committee, the CPUC will conduct a
workshop on GWR on June 12, 2013. It was
suggested that at the hearing the CPUC should be advised how the GWR section in
the Governance Committee formation agreement was developed, and also describe
the project constraints such as: cost,
schedule, public acceptance, environmental review, and those consistent with
filing a Tier 2 Advice Letter. Burnett
stated that a letter would be forwarded to the CPUC outlining the agenda topics
by May 6, 2013; the criteria list will not be attached. The Department of Water Resources EIR team
should be invited attend the meeting. The
CPUC should be asked to televise the June 12 hearing.
B. Review
Draft GWR Criteria as Discussed by Water Authority TAC
The committee reviewed draft
criteria submitted as Exhibit GC-4.
Suggestions for criteria:
1.
No
change.
2.
No
change.
3.
Term
“marginal cost” could be removed and replaced with a revenue requirement test.
4.
Should
be merged with #3, and insure that it is internally consistent. Need to balance cost with environmental
benefits.
5.
Language
should be similar to stated in the Governance Committee Formation Agreement. Time
estimate for project start up should be no earlier than 30% design, and no
later than when Cal- Am is ready to issue the notice to proceed.
6.
Should
reflect language in Governance Committee Formation Agreement.
7.
Okay.
8.
Okay.
9.
Consider
removing the phrase, “Agreement in place on “debt equivalence.”
10.
Amend
to read, “Public Support has been Demonstrated” and
remove items a through g.
11.
Amend
to read, “Public Outreach Campaign has Addressed Community Issues” and remove
items a through d.
Public Comment: (1) Jeanne Byrne suggested that Exhibit GC-4
be edited down. (2) Sue McCloud stated
that the public should have an opportunity to hear the views of interveners.
(3) Jeanne Byrne asked for clarification of the need to conduct the CPUC
Workshop on GWR and what is to be accomplished at that workshop.
5. Finalize
Schedule for Cal-Poly Design Team Review
The goal will be to schedule
meetings on May 17, June 12 through 14, and August 1, 2013 when the Cal-Poly design
teams are available. Allow three hours
per meeting. Staff will work with
committee members to identify dates when committee members/alternates can
participate. These meetings should be
video recorded.
Public comment: (1) Sue McCloud asked what direction the
design team had been given regarding project size. (2) Jeanne Byrne suggested
that potential design/build contractors could be invited to attend the design
team review meetings.
6. Update
from Cal-Am on Status of Procurement for the Desal Design Build Effort
Anthony Cerasuolo, Vice President, Legal – Operations for
California American Water, stated that the Request for Qualifications (RFQ) was
issued on April 1, 2013 and can be viewed on Cal-Am’s website. Nineteen firms submitted responses to the
RFQ. Cal-Am has provided answers to all
63 written questions submitted by the firms.
The Statement of Qualifications is due on May 1. Cal-Am plans to conduct interviews of four design/build
teams by May 31, 2013. It was agreed
that the May Governance Committee meeting schedule should be adjusted to allow for
an initial review of the RFP the week of May 20, and a follow-up meeting to
review the final by May 31, 2013.
7. Discussion
of Items to be placed on Future Agendas
William Reichmuth will advise
the committee when he is ready to present the landfill gas draft term sheet.
8. Schedule
Next meeting
The next meeting is scheduled
for May 17, 2013 at 1 pm.
Adjournment
The
meeting adjourned at 4:20 pm.
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