ITEM:		GENERAL MANAGER’S REPORT
13.	UPDATE ON DEVELOPMENT OF WATER SUPPLY PROJECTS
Meeting Date:			May 19, 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 confidential proposed set of terms and conditions for an extension of the CDO was prepared and forwarded to the SWRCB the third week of April.

Desalination Facility (A.12-04-019): Legislation was for the Water Rate Relief Bonds (SB 936) was unanimously passed by the Senate Governance and Finance Committee on April 2^nd and the Senate Energy, Utilities, and Communications Committee on April 29^th.

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.

The District received three statements of qualifications for the study of externalities related to the Pure Water Monterey project – See agenda item 19.

The draft Water Purchase Agreement is being researched and expected to be summarized in a term sheet shortly after source water terms and conditions are agreed upon.

A preliminary budget for GWR has been recommended and is included in this meeting agenda under item 20.

Aquifer Storage and Recovery (ASR): The District is in negotiation with the City of Seaside over the future easement for the Santa Margarita site.

Alternative Desalination Project: On April 17^th the General Manager met with Grant Gordon the Chief Operating Officer of DeepWater Desal. The General Manager will provide an oral update at the May 19 Board meeting.

Local Water Projects: The District is continuing to fund a portion of the City of Pacific Grove project, the Airport District project, and has entered into discussions with the Pebble Beach Company for an alternative supply for Del Monte Golf Course and with the Fairgrounds concerning the use of non-potable supplies for bathroom use.

MPWSP Governance Committee: The Governance Committee has assigned the role of procuring a value engineering consultant to the public agencies. Consent Calendar item 6 relates to such action. The District is jointly working with the Water Authority to secure a Value Engineer for the desalination project. The District Engineer participated in a review and selection panel on May 15^th.

Monterey Peninsula Regional Water Authority: The General Manager presented an update on the DeepWater Desal project to the Authority at its May 8^th meeting.

Other: The General Manager participated in a Water Forum sponsored by the City of Marina on April 29^th, was a panelist on the State Water Bond topic for the local California League of Cities meeting May 12^th, and has been participating in a new group titled the Del Monte Forest Partners in Water Strategies to help identify additional supplies to the Reclamation Project.

The Association of California Water Agencies (ACWA) conference was hosted in Monterey. The District and MRWPCA hosted a tour of the GWR pilot plant followed by a reception at the Wharf Marketplace.

EXHIBITS

None

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