ITEM:		GENERAL MANAGER’S REPORT
18.	UPDATE ON DEVELOPMENT OF WATER SUPPLY PROJECTS
Meeting Date:			June 17, 2013	Budgeted:	N/A
From:			David J. Stoldt	Program/	N/A
			General Manager	Line Item No.: N/A
Prepared By:			David J. Stoldt	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

DISCUSSION:

SWRCB: The State Water Resources Control Board held its regular June business meeting in Monterey on June 4, 2013. The General Manager, along with representatives from Cal-Am and the Water Authority, gave a presentation on compliance with the Cease and Desist Order. The District’s presentation can be found at the following link:

http://www.mpwmd.dst.ca.us/Presentations/2013Presentations/SWRCB%20Presentation%206-4-13.pdf

The District also co-hosted a tour on June 5 for the SWRCB to visit San Clemente Dam and the Sleepy Hollow Steelhead Rearing Facility.

The General Manager held a follow-up meeting with the SWRCB Chairman Marcus on June 7^th in Emeryville to reinforce District goals with respect to metering mixed-use projects during the moratorium, treatment of local water projects, and rationing.

On June 7, 2013, Stephanie Pintar and the General Manager contacted John O’Hagan of the SWRCB to initiate discussion to resolve the mixed-use metering issue.

Desalination Facility (A.12-04-019): On June 5 and June 13, 2013 the General Manager and General Counsel participated in meetings for settlement discussions. An all-parties call was also held on May 22, 2013. The administrative law judge has set June 14, 2013 as the deadline for settlement proposals not including GWR and June 28, 2013 for proposals related to GWR, but the timeline may slip.

Staff from the District, MRWPCA, Cal-Am, the Authority, and the Monterey Regional Waste Management District continue to meet to discuss potential terms and parameters for a Power Sales Agreement for meeting desalination facility electricity needs with power generated from renewable landfill gas at MRWMD.

Groundwater Replenishment (GWR): District staff has been meeting with MRWPCA staff and consultants every other Friday, tracking project progress. CEQA work and source water feasibility studies continue to proceed.

A Notice of Preparation has been prepared and a public scoping meeting scheduled for June 18, 2013. Please see Item 25 in this Board packet.

The cost sharing agreement with MRWPCA has been signed and we have requested FY2012-13 invoices for payment by the District.

The California Public Utilities Commission (CPUC) held a June 12, 2013 workshop to discuss the Groundwater Replenishment project’s role in the water supply solution, including criteria for inclusion of the project in the preferred alternative. The District, MRPCA, the Authority, and the Monterey Peninsula Water Supply Project (MPWSP) Governance Committee have been reviewing and refining a list of criteria which might be considered in evaluation of GWR.

Aquifer Storage and Recovery (ASR): The District has bid the building contract for Water Project 2 (Seaside Middle School) which is expected to be completed during the school summer vacation.

Alternative Desalination Project: District staff met with DeepWater Desal representatives on May 21 and June 6, 2013 to confirm progress and financial commitments by the DeepWater team. Staff is confident that the project is moving forward and has identified certain milestones that would allow for District participation in moving the project’s CEQA process forward in a more expeditious fashion. The Water Supply Planning Committee discussed potential roles of the District in the CEQA process and determined that the District need not be sole lead agency and could be merely a responsible agency.

District staff is presently developing a draft cost sharing agreement for the project, including a list of deliverable milestones that would affect the District’s financial commitments.

Local Water Projects: The Cities of Pacific Grove, Carmel-By-The-Sea, and Seaside have discussed local water supply initiatives of their own. In addition to creating additional water supply, such local projects would likely provide some leverage in future discussions with the SWRCB in discussing changes to the CDO even if the desalination project is delayed.

Staff will bring a proposal for local project funding to the Water Supply Planning Committee at its next meeting.

MPWSP Governance Committee: The MPWSP Governance Committee met May 23, 2013 and had preliminary discussions on the Cal-Am RFP and form of contract for design-build teams. The Committee also received an update on landfill gas generated electricity for possible sale to the desalination facility. The May 28, 2013 meeting finalized the Committee’s recommendations on the design-build RFP and made final recommendations on the “Go/No-Go” criteria for GWR. The June 13^th meeting covered the second presentations by the Cal-Poly design teams for the desalination facilities.

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