ITEM:		GENERAL MANAGER’S REPORT
10.	UPDATE ON DEVELOPMENT OF WATER SUPPLY PROJECTS
Meeting Date:			March 17, 2014	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 District General Manager, General Counsel, Water Demand Manager, and District Engineer met with enforcement staff of the State Water Resources Control Board, Cal-Am, the Regional Water Authority, Sierra Club, attorney for water rights holders, and the Pebble Beach Company (Parties to the lawsuit over the Cease and Desist Order (CDO)) and held initial discussions about the process for petitioning for a modification of the CDO under section 1832 of the California Water Code. A draft proposed set of terms and conditions for an extension of the CDO has been prepared and is expected to be forwarded to the SWRCB the second week of March.

Desalination Facility (A.12-04-019): On February 14, 2014, the District participated in a joint closing brief in support of approval and implementation of the large settlement agreement, primarily a refutation of claims made by Marina Coast Water District, and a joint closing brief on the sizing of the desalination facility (Exhibit 10-A), primarily a refutation of claims made by Surfrider Foundation.

Legislation was for the Water Rate Relief Bonds was introduced by Senator Monning in February and assigned SB 936. On March10, the General Manager, the District’s Legislative Liaison John Arriaga, Kevin Tilden of Cal-Am, Cal-Am’s Legislative Liaison Jennifer Capitolo, And Senator Monning’s Legislative Director Bethany Westfall met with staff of the Senate Governance and Finance Committee, the Senate Energy, Utilities, and Communications Committee, the Senate Republican caucus, and the Public Utilities Commission to discuss SB 936. The Bill is scheduled for a hearing April 2^nd.

Pure Water Monterey - Groundwater Replenishment Project (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.

District staff have been working jointly with MRWPCA staff to develop business terms and conditions for source water agreements. Exhibit 10-B attached shows source waters by source and entity.

The District has prepared a draft RFQ for the study of externalities related to the Pure Water Monterey project which will be shared with MRWPCA for comment this week.

The draft Water Purchase Agreement is being researched and expected to be summarized in a term sheet by the end of the month.

A mid-year budget increase for GWR has been recommended and is included in this meeting agenda under the Consent Calendar.

Aquifer Storage and Recovery (ASR): At the Seaside middle school site, the District completed a final grading and paving plan, completed instrumentation testing, and finished the wellhead installations. The project is not expected to be closed-out (deemed complete) until the end of June in order to allow for additional testing. At the Santa Margarita site, the District secured agreement with FOR A for closure documentation required for obtaining a right of entry to the newly annexed portion of the site.

Alternative Desalination Project: On February 20, 2014 the General Manager joined represenatives from California Water Service, Moss Landing Harbor District, City of Santa Cruz Water Department, Soquel Creek Water District, Pajaro Sunny Mesa Water District, Pajaro Valley Water Management Agency, Monterey County Water Resources Agency, among others in a meeting with the DeepWater Desal team, including their bond counsel and investment banker to discuss progress, formation of a joint powers authority, and financing structure.

Local Water Projects: The District General Counsel distributed a grant agreement to the City of Pacific Grove. A meeting with the Airport District is scheduled for March 18^th to discuss next steps on a potential project.

MPWSP Governance Committee: The Governance Committee has not met yet in 2014.

Monterey Peninsula Regional Water Authority: Agendas for the recent JPA meetings is attached

EXHIBITS

10-A Joint Closing Brief on the Sizing of the Desalination Facility

10-B Summary of Pure Water Monterey GWR Source Waters

10-C Recent Water Authority Agendas

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