MONTEREY
REGIONAL WATER
POLLUTION CONTROL AGENCY * * * AGENDA
TRANSMITTAL FORM * * * |
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MEETING DATE: |
JANUARY
14, 2016 |
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AGENDA ITEM: |
9 - A |
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AGENDA TITLE: |
PROVIDE DIRECTION TO STAFF ON PURE
WATER MONTEREY PURCHASE AGREEMENT AND COST ISSUES |
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Consent ( X ) Action ( ) Informational ( ) |
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CONTACT: |
PAUL
A. SCIUTO |
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Phone: |
(831) 372-3367 |
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DEPARTMENT
SUMMARY California
American Water (Cal Am) has been working with the Monterey Regional Water
Pollution Control Agency (MRWPCA) and the Monterey Peninsula Water Management
District (MPWMD) on a Water Purchase Agreement (WPA) for the Pure Water
Monterey project. The agreement is an
essential part of the Pure Water Monterey SRF loan as it represents the
revenue stream for repaying the loan. The
three-way agreement accounts for water that is treated, conveyed and injected
into the Seaside Groundwater Basin by MRWPCA, purchased by MPWMD, and then
sold to Cal Am when it is extracted from the Basin. As part of the settlement agreement, the
water purchase agreement was an item that needs to be completed prior to the
testimony phase of the CPUC hearings on January 22, 2016. The three
parties have been exchanging draft versions of the agreement since February
2015. There
are a couple of conditions that still need to be negotiated, but the
remainder of the agreement is close to final.
We
hope to provide the Board with a copy of the draft Water Purchase Agreement at
or prior to the Special Board meeting on Thursday, January 14. |
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FINANCIAL IMPACT: |
( ) Yes ( X
) No |
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FUNDING SOURCE: |
No funding required. This is a revenue source |
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BUDGET RECAP: |
Total Estimated Cost: |
$0 |
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Amt Expended to Date: |
$0 |
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Amt Budgeted FY 15/16: |
$0 |
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New Funding Required: |
No |
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New Revenue: |
No |
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Revenue Impact: |
None |
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New Personnel? |
No |
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Change in Board Policy? |
No |
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PRIOR BOARD ACTIONS: |
None |
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ALTERNATIVES: |
Sell advanced treated water to
another entity |
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COMMITTEE REVIEW AND ACTION: |
N/A |
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MANAGER RECOMMENDATION: |
Recommend approval. |
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ATTACHMENTS: |
None.
A copy of the draft Water Purchase
Agreement will be provided at or before the Special Board meeting. |
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RECOMMENDED MOTION: |
That the Board Approve form of Water
Purchase Agreement for Pure Water Monterey Project and direct submittal to
the California Public Utilities Commission. |
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U:\staff\Boardpacket\2016\20160114\09\Item9-A.docx