EXHIBIT 1-A
The Honorable Adrienne Grover
Presiding Judge of the Superior Court
County of Monterey
240 Church Street
Salinas, CA
93901
Subject: Final Report of the 2010 Monterey
County Civil Grand Jury
Dear Judge Grover,
The Monterey Peninsula Water Management District
(MPWMD or District) is pleased to have the opportunity to respond to the
findings and recommendations in the Final Report of the 2010 Monterey County Civil Grand Jury concerning the Monterey County
Regional Water Project. The District’s
response to each required finding and recommendation is provided below.
Findings of the Grand Jury
F8.4. It would be in the public interest for MPWMD to have a role in the
project, so as to make available its considerable water expertise.
MPWMD agrees with Finding 8.4.
F8.5. There seems to be no
independent financial oversight.
MPWMD partially disagrees with Finding 8.5. Throughout the proceedings before the
California Public Utilities Commission (CPUC), both the Monterey County Water
Resources Agency and the Marina Coast Water District testified that each
organization would exercise independent financial oversight through its public
budgeting process. In addition, it is
MPWMD’s understanding that Monterey County plans to hire its own financial
experts, Nixon Peabody LLP, to conduct an independent analysis of the proposed
financing plan for the Regional Water Project.
It is MPWMD’s understanding that this analysis will be separate from the
analysis that will be conducted by a different firm, Piper Jaffray Companies, for
the Monterey County Water Resources Agency.
F8.6. Peninsula
recycled waste water is not being used to offset an equal amount of Salinas
Basin water for export.
MPWMD agrees with Finding 8.6.
F8.7. There are many
areas of concern in the technical aspects of this large-scale desalination
project.
MPWMD agrees with Finding 8.7.
F8.8. The current
desalination plan is to replace Carmel River water. Vital service upgrades for schools and
nursing homes cannot happen without new water.
MPWMD agrees with Finding 8.8 and notes that the
recent CPUC Decision (D.11-03-048) directing tariff modifications to recognize
moratorium mandated by the State Water Resources Control Board (SWRCB)
formalizes this situation. The decision
does, however, allow for the possibility of service for “demonstrated and
compelling” institutional public health and safety water, subject to approval
by the SWRCB.
Recommendations of the Grand Jury
R8.2. Grant the
Municipal Advisor role a voting position, as many members are familiar with
desalination operations. [Related Finding: F8.1]
It is MPWMD’s understanding that this recommendation
will not be implemented by the signatories to the Water Purchase
Agreement. During the CPUC proceedings,
MPWMD recommended that the Municipal Advisor be afforded an effective,
representational voice in the Regional Project management decisions. Specifically, MPWMD recommended that the
Municipal Advisor be granted full party status with full voting rights, and the
ability to dispute decisions reached by the Advisory Committee.
R8.4. MRWPCA, MCWD,
MCWRA, and CalAm should continue to work to come to some agreement for
participation of MPWMD. Because these agency positions may have
become entrenched, the Monterey County Board of Supervisors is
encouraged to intervene to facilitate some agreement to include MPWMD. [Related Finding: F8.4]
It is MPWMD’s understanding that this recommendation will not be implemented because the adopted Water Purchase Agreement has established the role for each agency and excludes MPWMD. MPWMD is open to further discussions and is willing to participate in the planning and implementation of the Regional Water project.
R8.5. Consider the formation of an independent financial overview committee to
review major functions of the project. [Related
Finding: F8.5]
It is MPWMD’s
understanding that this recommendation has been partially implemented. Specifically, both Monterey County and
Monterey County Water Resources Agency have indicated that they will retain
separate experts to analyze the proposed financing plan for the Regional
Project.
R8.6. MPWMD and MCWRA
should pursue legal clarification or adjudication to allow Peninsula recycled
water to be used to offset an equal amount of Salinas Basin water for export to
the Monterey Peninsula. [Related
Finding: F8.6]
It is MPWMD’s understanding that this recommendation
will not be implemented by the settling parties who signed the Water Purchase
Agreement.
R8.7. It would be
prudent to continue work toward additional solutions for more water because of
the technically high risk elements of this plan and to assist communities that
need water to upgrade their outdated municipal services. MCWRA, MPWMD, MRWPCA, and CalAm should pursue
all avenues of finding new water for the community. [Related Findings: F8.7 and F8.8]
This recommendation has been implemented. MPWMD has identified a number of smaller
water supply projects that could provide new water to the Monterey Peninsula
community. These projects include
expansion of the existing Aquifer Storage and Recovery (ASR) Project,
partnership with MRWPCA on the Seaside Basin Groundwater Replenishment Project,
and a possible desalination facility located at the former City of Monterey
Water Treatment Plant. In addition,
MPWMD and the other agencies are in the process of applying for state funding
for specific projects through the Integrated Regional Water Management Planning
Program.
Sincerely,
Darby Fuerst
General Manager
Cc: MPWMD District Board
MPWMD General Counsel
Keith Israel, MRWPCA General Manager
Jim Heitzman, MCWD General Manager
Curtis Weeks, MCWRA General Manager
Craig Anthony, CAW General Manager
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