mprwa special meeting agenda packet 01-14-16

8202019 MPRWA Special Meeting Agenda Packet 01-14-16

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AgendaMonterey Peninsula Regional Water Authority (MPRWA)

Directors Special Meeting500 PM Thursday January 14 2016

Council Chambers

440 Harcourt AvenueSeaside California

ROLL CALL

PLEDGE OF ALLEGIANCE

REPORTS FROM BOARD DIRECTORS AND STAFF

PUBLIC COMMENTSPUBLIC COMMENTS allows you the public to speak for a maximum of three minutes on anysubject which is within the jurisdiction of the MPRWA and which is not on the agenda Any personor group desiring to bring an item to the attention of the Authority may do so by addressing theAuthority during Public Comments or by addressing a letter of explanation to MPRWA AttnMonterey City Clerk 580 Pacific St Monterey CA 93940 The appropriate staff person will contactthe sender concerning the details

APPROVAL OF MINUTES

1 Approve Minutes from December 10 2015 - Swain

CONSENT AGENDA

2 Approve and File Authority Checks Through January 14 2016 - Swain

3 Approve Extension of Contract with the City of Seaside for Financial Support Services for the Monterey Peninsula Regional Water Authority (MPRWA) to June 30 2016 at a Price of $2500 - Cullem

4 Approve Schedule of Calendar Year 2016 Meeting Dates for the Water Authority - Swain

AGENDA ITEMS

5 Receive and Accept Annual Financial Report and a Full Opinion Audit for FY 2014-2015 from McGilloway Ray Brown and Kaufman (Kaufman) CPA Approve a Modification to the Kaufman Contract to Complete the FY 2015- 2016 and FY 2016-2017 Audits with a Completion Date of March 1 2018 at an additional fee not-to-exceed $14500 and Provide Direction to Staff - KaufmanCullem

6 Receive an Update on the Summary Project Schedule for the Monterey Peninsula Water

Supply Project (MPWSP) and the Status of Test Slant Well Operations and Results and Receive a Report on Prices of the MPWSP Which Cal Am Submitted to the CPUC on December 15 2015 - Crooks

7 Receive Report Discuss and Provide Direction on the Pure Water Monterey (PWM)



2

Ground Water Replenishment (GWR) Project Draft Testimony to the California Public Utilities Commission and the Request from the Monterey Regional Water Pollution Control Agency and the City of Monterey to Send a Letter to Cal Am in Support of Finalization ofthe Water Purchase Agreement - CullemStoldt

8 Receive Report Discuss and Provide Direction on a Draft Term Sheet from the Castroville

Community Services District (CCSD) for the Purchase and Use of Return Water from the Monterey Peninsula Water Supply Project (MPWSP) Desal Facility - Cullem

9 Receive Report Discuss and Provide Direction on a Draft Term Sheet from the Surfrider Association Concerning MPWSP Desal Facility Brine Disposal - Cullem

ADJOURNMENT

The City of Monterey is committed to including the disabled in all of its services programs andactivities In compliance with the Americans with Disabilities Act if you need special assistanceto participate in this meeting please contact the City Clerkrsquos Office at (831) 646-3935Notification 30 hours prior to the meeting will enable the City to make reasonable arrangementsto ensure accessibility to this meeting [28 CFR 35102-35104 ADA Title II] Later requests willbe accommodated to the extent feasible For communication-related assistance dial 711 to usethe California Relay Service (CRS) to speak to City offices CRS offers free text-to-speech speech-to-speech and Spanish-language services 24 hours a day 7 days a week If you require a hearingamplification device to attend a meeting dial 711 to use CRS to talk to the City Clerks Office at(831) 646-3935 to coordinate use of a device

Agenda related writings or documents provided to the MPRWA are available for publicinspection during the meeting or may be requested from the Monterey City Clerkrsquos Office at 580Pacific St Room 6 Monterey CA 93940 This agenda is posted in compliance with CaliforniaGovernment Code Section 549542(a) or Section 54956



MINUTES

MONTEREY PENINSULA REGIONAL WATER AUTHORITY (MPRWA)Regular Meeting

700 PM Thursday December 10 2015COUNCIL CHAMBER

MONTEREY CALIFORNIA

Directors Present Rubio Edelen Pendergrass Kampe Burnett Alternate Director Downey Directors Absent Roberson

Staff Present Executive Director Legal Counsel Clerk

ROLL CALL

President Burnett called the meeting to order at 701 PM

Alternate Director Downey was present for Director Roberson



President Burnett invited reports from the Board and Staff

Executive Director Cullem reported that he attended the workshop on the externalities study atthe Water Management District He then welcomed Bill Connor the legal counsel stand-in forDon and Nova Swain the Clerk understudy for Lesley Milton

President Burnett said that the cease and desist order (CDO) proposal that the board adoptedat the last meeting was submitted to the State and stated that there is now a prohibition on ex-parte communications with the Board and its staff

PUBLIC COMMENTS

President Burnett opened public comments Receiving no requests to speak he closed thepublic comments session

CONSENT AGENDA

Executive Director Cullem requested that the minutes from November 12th item 6 be changedto reflect that the City of Monterey contract be awarded on a fiscal year basis not a calendaryear basis Mr Cullem says this would change the dollar amount to $15000 and extendcontract to the end of the fiscal year on June 30th 2016

Libby requested to abstain from items 1 and 2 approval of minutes because she was notpresent for those meetings

On a motion by Director Pendergrass and seconded by Director Edelen and passed with thefollowing vote the Authority Directors approved Consent Agenda items 1-6 with themodification of the dollar amount in the November 12 th minutes to $15000 for contractextension through June 30 th Approved (6-0) with Director Downey abstaining from items 1-2



MPRWA Minutes Thursday December 10 2015

Monterey Peninsula Regional Water Authority

Regular Meeting Minutes - Thursday December 10 20152

1 Approve Minutes from August 13 2015 - MiltonAction Approved Libby abstained

2 Approve Minutes from November 12 2015

Action Approved with change Libby abstained

3 Approve and File Authority Checks Through December 10 2015Action Approved

4 Receive Report on the November 17 2015 Update of the California Public Utilities Commission(CPUC) Schedule for the Monterey Peninsula Water Supply ProjectAction Approved

5 Terminate the Contract with the City of Seaside for Clerk of the Board and Financial SupportServices for the Monterey Peninsula Regional Water Authority (MPRWA) as of Dec 31 2015Adopt Resolution 2015-ZZ Approving an Agreement with the City of Monterey for ThoseServices and Authorize The Authority President to Execute a Contract with the City ofMonterey for at a Price not to Exceed $15000 for the Period January 1 to June 30 2016Action Approved

6 Approve Extension of the Separation Processes Inc (SPI) Contract Until 30 June 2016 forAdditional Technical Support to the MPRWA and Authorize the Expenditure of Not-to- Exceed$10000 from Reserve FundsAction Approved

AGENDA ITEMS

7 Presentation of Certificate of Appreciation to Lesley Milton

President Burnett presented an award of appreciation to Lesley Milton who is retiring from

MPRWA Clerk of the Board Lesley Milton thanked the Board for the opportunity to serve thecommunity

8 Receive Report and Discuss the Status of the Pure Water Monterey (PWM) Ground WaterReplenishment (GWR) Project

Dave Stoldt the General Manager of the Monterey Peninsula Water Management District(MPWMD) reported that Marina Coast Water District approved the pipeline agreement with theMonterey Regional Water Pollution Control Agency (MRWPCA) He also reported that theMRWPCA Board is considering a 24 million dollar contract to award bid packets for variousdesign components for the project to be ready to go in July The externalities study that DirectorCullem attended made progress by pulling out the financial analysis and focusing solely on the

non-project economics such as social or sustainable return on investment

Mr Stold reported that most of the 9 criteria related to groundwater replenishment with PureWater Monterey (PWM) have been met but that cost comparison remains the largest hurdle Hesaid the cost of PWM is $1800-2100 per acre foot and desal water is $3000 per acre foot andthere isnrsquot enough recycled water to do everything so a desal plant with associated cost isrequired On December 15th there will be a filing for updated cost estimates Mr Stoldt invitedquestions from the Board






Alternate Director Downey asked about the status of the water purchase agreement withCalifornia American Water (CalAm) Mr Stoldt responded that the work with CalAm has beencooperative and well attended although there is a slow response with CalAm One issue isCalAm is requesting a joint and severable liability between PCA and MPRWA but neither partyrsquoslegal counsel will agree to that due to the operational and financial differences between the twoagencies Mr Stoldt responded that the MPRWA doesnrsquot want to subordinate the agreementalready in place with the growers by allowing CalAm to tap into the drought reserve Overall

most of the agreements have been executed and there is a draft agreement which might bedone by December 31st Alternate Director Downey questioned if another agency is added to theagreement later they will want some control Mr Stoldt replied that adding another agency willdecrease the buffer of allocated water He added that there may be additional water sources orannexations and pre-existing water rights that need to be factored in to the agreement AlternateDirector Downey asked President Burnett if the time in between meetings with CalAm could bereduced to encourage CalAm to be more efficient President Burnett said the MPRWA is notcentrally involved in those negotiations but that there are other agencies involved

Dave Stoldt answered financial questions of the board

Dave Stoldt gave a report that MPRWA is in the application pool for a state loan and is

applying for storm water grants to reduce the overall cost

9 Receive an Update on the Summary Project Schedule for the Monterey Peninsula WaterSupply Project (MPWSP) including Award of Production Well and Conveyance SystemContracts and Status of Test Slant Well Operations and Results

Catherine Stedman from CalAm Public Relations gave a report that the current scheduleremains on track for project completion in 2019 The conveyance facility contract selections willbe publicly available on December 11

President Burnett stated that the governance committee recommended a contract for source

water slant wells close to the budgeted amount Ms Stedman stated the contract is with thelowest bidder

10 Receive Report Discuss and Revise the Mission Purpose and Sunset of the MontereyPeninsula Regional Water Authority

Executive Director Cullem reviewed the Monterey Peninsula Water Authority Authority(MPRWA) mission work plan and duration of the Authority There was a previous revision tothe mission statement ie replace Cities water users with water users within theincorporated cities and unincorporated portions of the County Mr Cullem asked for the boardto give feedback on the mission statement and work plan

President Burnett said the County had questions about the sunset date of the Authority

Director Rubio wondered what was meant by the County concern about mission creep andwas unaware of the Authority adding projects or doing anything outside of the scope PresidentBurnett responded that the County did not have any specific examples of mission creeping fromthe Authority when they were asked








was not set in stone

The motion made by Director Rubio seconded by Director Kamp for the Authority to adopt theposition to sunset at the first production of water from the full portfolio of the MPWSP and thelifting of the cease and desist order passed unanimously (6-0)

AYES 6 DIRECTORS Downey Edelen Kampe Pendergrass Rubio BurnettNOES 0 DIRECTORS NoneABSENT 0 DIRECTORS NoneABSTAIN 0 DIRECTORS NoneRECUSED 0 DIRECTORS None

ADJOURNMENT

The meeting adjourned at 835pm

ATTEST

Nova Swain Clerk of the Authority MPRWA President





Monterey Peninsula Regional Water AuthorityAgenda Report

Date January 14 2015

Item No 1

FROM Authority Clerk Milton

SUBJECT Approval and File Authority Checks through November 6 2015

RECOMMENDATION

It is recommended that the Authority approve and file the accounts payable paymentsmade during the period November 6 2015 through December 31 2015 with totalpayments for the above referenced period of $4383453 from the general fund accountand authorize the Directors to sign for such checks

DISCUSSION

At its meeting on September 12 2013 the Authority Board approved a staffrecommendation to provide the Directors a listing of financial obligations since the lastreport for inspection and confirmation Each invoiced expense has been reviewed andapproved by the Executive Director and Finance personnel prior to payment to insure thatit conforms to the approved budget

The following checks are hereby submitted to the Authority for inspection andconfirmation

bull $15000 City of Monterey for Clerk amp Administrative services January 1 2016-

June 1 2016bull $10000 to City of Seaside for Clerk and Administrative Services August 1 2015

to December 31 2015

bull $2500 to City of Seaside for Financial Services December 31 2015 throughJune 30 2015

bull $1057908 To Brownstein Hyatt Farber amp Schreck for Services Renderedthrough November 30 2015 $16000 to Access Monterey Peninsula

bull $487500 to McGilloway Ray Brown amp Kaufman for Financial Audit Services

bull $44000 to Access Monterey Peninsula

bull $44045 to Jim Cullem expenditures Reimbursement CPUC Trip

The bank balance as of January 5 2016 is sufficient cover the above check thereforestaff is recommending approval

ATTACHMENTS

1 Budget to Actual Report through December 31 2015



248 PM

010816

Accrual Basis


Profit amp Loss Budget vs Actual July 1 2015 through January 8 2016

Jul 1 15 - Jan 8 16 Budget $ Over Budget of Budget

Ordinary IncomeExpense

Income

47200 middot Program Income

47230 middot Membership Dues 000 13700000 -13700000 00

47240 middot Program Service Fees 000 000 000 00

47250 middot Reimbursement SPI Contract 000 000 000 00

47260 middot Reimburesment VE Contract 000 000 000 00

47200 middot Program Income - Other 000 000 000 00

Total 47200 middot Program Income 000 13700000 -13700000 00

49900 middot Uncategorized Income 000 000 000 00

Total Income 000 13700000 -13700000 00

Expense

60900 middot Administration and Clerical

60901 middot Clerk of the Board 000 2400000 -2400000 00

60902 middot Executive Director 1986677 8500000 -6513323 2337

60903 middot Principal Offc of the Authority 000 500000 -500000 00

60904 middot Financial Services 000 600000 -600000 00

60905 middot Misc Admin Expenses 000 50000 -50000 00

60900 middot Administration and Clerical - Other 000 000 000 00

Total 60900 middot Administration and Clerical 1986677 12050000 -10063323 1649

62100 middot Legal Fees62110 middot Board Counsel 1500000 3600000 -2100000 4167

62140 middot Special Counsel 7009398 10000000 -2990602 7009

62100 middot Legal Fees - Other 000 000 000 00

Total 62100 middot Legal Fees 8509398 13600000 -5090602 6257

62800 middot Contract Services

60801 middot Public Outreach 5000 000 5000 1000

60806 middot Contract VE 000 000 000 00

62802 middot Audit Services 000 600000 -600000 00

62803 middot Televised Meeting 152250 500000 -347750 3045

62804 middot Contract Services amp Studies 000 000 000 00

62805 middot Contract SPI 000 000 000 00

62800 middot Contract Services - Other 91980 000 91980 1000

Total 62800 middot Contract Services 249230 1100000 -850770 2266

65000 middot Insurance 643848 750000 -106152 8585

65100 middot Travel Expenses 52120 500000 -447880 1042

66000 middot Payroll Expenses 000 000 000 00

68300 middot Contingency 000 1000000 -1000000 00

Total Expense 11441273 29000000 -17558727 3945

Net Ordinary Income -11441273 -15300000 3858727 7478

Other IncomeExpense

Other Income

47220 middot Interest Earned 045 000 045 1000

Total Other Income 045 000 045 1000

Other Expense

80000 middot Ask My Accountant 000 000 000 00

Total Other Expense 000 000 000 00

Net Other Income 045 000 045 1000

Net Income -11441228 -15300000 3858772 7478

of 1

ATTACHMENT 1





Item No 3

FROM Executive Director Cullem

SUBJECT Approve Extension of Contract with the City of Seaside for FinancialSupport Services for the Monterey Peninsula Regional Water Authority(MPRWA) to June 30 2016 at a Price of $2500

RECOMMENDATION

It is recommended that the Authority extend the contract for MPRWA financial supportservices with the City of Seaside through June 30 2016

DISCUSSION

In CY 2012 and 2014 the City of Carmel-by-the-Sea provided financial services to theMPRWA on a pro-bono basis In January 2014 on advice from its auditors theAuthority contracted with the City of Seaside to assume financial services at an annualfee of $5000 as a part of the Clerical Services contract In November 2015 the City ofSeaside indicated that it could not continue to provide Clerk of the Board and clericalsupport after December 31 2015 nor financial support services after June 30 2016

At its meeting of Dec 10 2015 In order to provide continuity and to retain access to theCity of Monterey (Agency of Record) computer system the Water Authority Board authorized the Authority President to enter into a contract with the City of Monterey forClerk of the Board and clerical support services for the period January 1 to June 30

2016 at a price of $15000

In December 2015 the City of Monterey agreed to return to its original contractarrangement with the Water Authority under which it will resume providing Clerk of theBoard and clerical support services as of Jan 1 2016 in addition to the previouslyextended contract for Agency of Record and Executive Director services until June 302016 The City of Monterey also agreed to assume provision of financial support

services on July 1 2016 provided the City extends its contract to provide the Clerk ofthe Board and remain the MPRWA Agency of Record for FY 2016-2017

FISCAL IMPACT

The contract extension with the City of Seaside for financial support services providesfor a reimbursement of $5000 per fiscal year Since Seaside will continue to provide



those services through the balance of FY 2015-2016 it will receive an additional $2500in reimbursement for the period January 1 to June 30 2016 These funds are budgeted





Item No 4


SUBJECT Approve Schedule of Calendar Year 2016 Meeting Dates for the WaterAuthority

RECOMMENDATION

It is recommended that the Water Authority approve the schedule for itsmeetings during calendar year 2016

DISCUSSION

During calendar 2015 the Water Authority has been able to conduct business on thesecond Thursday of each month with the fourth Thursday of each month reserved foran optional meeting Efforts were made to move the meeting to an earlier time oralternate date but we were unable to secure a regular meeting place and had conflictswith scheduling AMP live coverage Therefore It is recommended that the meetingschedule remain the same for 2016

ATTACHMENTS

Draft meeting schedule for CY 2016





Monterey Peninsula Regional Water AuthorityMonterey Peninsula Regional Water AuthorityMonterey Peninsula Regional Water AuthorityMonterey Peninsula Regional Water AuthorityAgenda ReportAgenda ReportAgenda ReportAgenda Report


Item No 5

0612


SUBJECT Receive and Accept Annual Financial Report and a Full Opinion Audit for FY2014-2015 from McGilloway Ray Brown and Kaufman (Kaufman) CPA Approvea Modification to the Kaufman Contract to Complete the FY 2015- 2016 and FY2016-2017 Audits with a Completion Date of March 1 2018 at an additional feenot-to-exceed $15500 and Provide Direction to Staff

RECOMMENDATION

It is recommended that the MPRWA receive and accept the written audit for Fiscal Year 2014-2015 as well as a verbal presentation by Kaufman It is further recommended that the Authorityapprove an amendment to the Kaufman contract to include completion of the audit for Fiscal

Years 2015-2016 and 2016-2017 and an extension to March 31 2018 at a fee not-to-exceed$15500 inclusive of the MDampA and provide staff direction

DISCUSSION

Following an informal solicitation for proposals in 2013 the Executive Director selectedKaufman for the FY 2012-2014 audits The Water Authority was briefed on the selection at itsmeeting of October 10th The contract was executed on October 31 2013

On February 13 2014 the Water Authority approved a modification and contract extension forthe completion of the FY 2013-2014 audit On January 10 2015 the Authority modified andextended the contract for completion of the FY 2014-2015 audit

The Authority now needs to select a firm for FY 2015-2016 and FY 2016-2017 audits Howeverin the opinion of staff Kaufman now has extensive experience with the Authorityrsquos financialsystem Further it has done an excellent job in conducting the audits and has provided directionand guidance that has greatly improved the Authoritys system of financial accountability

At the request of the Executive Director Kaufman had offered to complete audits at a price no-to- exceed $7500 and $8000 respectively inclusive of the Management Discussion andAnalysis (MDampA) which has previously been completed by change orders

In the opinion of the Executive Director the proposed fees are fair and reasonable and asignificantly lower price is unlikely especially in light of Kaufmans current knowledge of the

Authoritys financial system Accordingly the Executive Director recommends that anamendment and extension to Kaufmanrsquos contract for the additional work would be in the bestinterests of the public

ATTACHMENTS

Fiscal Year 2014-2015 Audit Documents



Daniel M McGilloway Jr CPA CVA Gerald C Ray CPA Clyde W Brown CPA Patricia M Kaufman CPA

Larry W Rollins CPA

Sarita C Shannon CPA Whitney Ernest CPA Devvyn MacBeth CPA

Jesus Montemayor CPA Smriti Shrestha CPA Wei Ding CPA

McGILLOWAY R AY BROWN amp K AUFMAN Accountants amp Consultants

2511 Garden Road Suite A180 379 West Market Street Monterey CA 93940-5301 Salinas CA 93901

831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936

Board of Directors and Management ofMonterey Peninsula Regional Water AuthorityMonterey California

We have audited the financial statements of Monterey Peninsula Regional Water Authority for theyear ended June 30 2015 Professional standards require that we provide you with informationabout our responsibilities under generally accepted auditing standards as well as certaininformation related to the planned scope and timing of our audit We have communicated suchinformation in our letter to you dated September 28 2015 Professional standards also require thatwe communicate to you the following information related to our audit

Significant Audit Findings

Qual itati ve Aspects of Accounting Practices

Management is responsible for the selection and use of appropriate accounting policies Thesignificant accounting policies used by Monterey Peninsula Regional Water Authority aredescribed in Note 1 to the financial statements No new accounting policies were adopted and theapplication of existing policies was not changed during the fiscal year June 30 2015 We noted notransactions entered into by Monterey Peninsula Regional Water Authority during the year forwhich there is a lack of authoritative guidance or consensus All significant transactions have beenrecognized in the financial statements in the proper period

Accounting estimates are an integral part of the financial statements prepared by management andare based on managementrsquos knowledge and experience about past and current events and

assumptions about future events Certain accounting estimates are particularly sensitive becauseof their significance to the financial statements and because of the possibility that future eventsaffecting them may differ significantly from those expected The most sensitive estimate affectingthe Authorityrsquos financial statements was

Managementrsquos estimate for the allowance of doubtful accounts receivable is $134719This decision is based on managementrsquos assumptions and historical experience withcollection of membership fees and these assumptions appear reasonable

The financial statement disclosures are neutral consistent and clear

Di ff iculti es Encountered in Perf orming the Audi t

We encountered no significant difficulties in dealing with management in performing andcompleting our audit

ATTACHMENT 1



Corrected and Uncorrected Misstatements

Professional standards require us to accumulate all known and likely misstatements identified

during the audit other than those that are clearly trivial and communicate them to the appropriatelevel of management Management has corrected all such misstatements In addition none of the

misstatements detected as a result of audit procedures and corrected by management were material

either individually or in the aggregate to each opinion unitrsquos financial statements taken as a whole

Disagreements with Management

For purposes of this letter a disagreement with management is a financial accounting reportingor auditing matter whether or not resolved to our satisfaction that could be significant to the

financial statements or the auditorrsquos report We are pleased to report that no such disagreements

arose during the course of our audit

Management Representations

We have requested certain representations from management that are included in the managementrepresentation letter dated December 11 2015

Management Consultations with Other Independent Accountants

In some cases management may decide to consult with other accountants about auditing and

accounting matters similar to obtaining a ldquosecond opinionrdquo on certain situations If a consultationinvolves application of an accounting principle to Monterey Peninsula Regional Water Authorityrsquos

financial statements or a determination of the type of auditorrsquos opinion that may be expressed on

those statements our professional standards require the consulting accountant to check with us to

determine that the consultant has all the relevant facts To our knowledge there were no suchconsultations with other accountants

Other Audit Findings or Issues

We generally discuss a variety of matters including the application of accounting principles and

auditing standards with management each year prior to retention as Monterey Peninsula RegionalWater Authorityrsquos auditors However these discussions occurred in the normal course of our

professional relationship and our responses were not a condition to our retention

Restriction on Use

This information is intended solely for the use of Board of Directors and Management of Monterey

Peninsula Regional Water Authority and is not intended to be and should not be used by anyone

other than these specified parties

McGilloway Ray Brown amp KaufmanSalinas CaliforniaDecember 11 2015

2

ATTACHMENT 1




Larry W Rollins CPA




2511 Garden Road Suite A180 379 West Market Street

Monterey CA 93940-5301 Salinas CA 93901831-373-3337 831-424-2737

Fax 831-373-3437 Fax 831-424-7936

To the Board of Directors and Managementof Monterey Peninsula Regional Water Authority

In planning and performing our audit of the basic financial statements of Monterey Peninsula

Regional Water Authority (the ldquoAuthorityrdquo) as of and for the year ended June 30 2015 in

accordance with auditing standards generally accepted in the United States of America weconsidered Monterey Peninsula Regional Water Authorityrsquos internal control over financialreporting (internal control) as a basis for designing audit procedures that are appropriate in the

circumstances for the purpose of expressing our opinions on the financial statements but not for

the purpose of expressing an opinion on the effectiveness of the Monterey Peninsula RegionalWater Authorityrsquos internal control Accordingly we do not express an opinion on the effectiveness

of Monterey Peninsula Regional Water Authorityrsquos internal control

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be

material weaknesses or significant deficiencies and therefore material weaknesses or significant

deficiencies may exist that were not identified However as discussed below we identified certaindeficiencies in internal control that we consider to be material weaknesses and other deficienciesthat we consider to be significant deficiencies

A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees in the normal course of performing their assigned functions to prevent

or detect and correct misstatements on a timely basis A material weakness is a deficiency or acombination of deficiencies in internal control such that there is a reasonable possibility that a

material misstatement of the entityrsquos financial statements will not be prevented or detected andcorrected on a timely basis We did not identify any deficiencies in internal control to be material

weaknesses

A significant deficiency is a deficiency or a combination of deficiencies in internal control that

is less severe than a material weakness yet important enough to merit attention by those charged

with governance We consider the following deficiencies in internal control to be significantdeficiencies

General Jour nal Entry Process (Repeat f inding June 30 2014)

Deficiency We noted that the Authority does not have a formal journal entry procedure Currently

the interim financial statements are generated through QuickBooks While the current financialstatements did not require adjustments as the Authority grows in complexity adjustments for

various matters may be necessary

ATTACHMENT 1



2

Recommendation We believe it would be beneficial for the Authority to develop a process for

making adjusting journal entries on an annual basis (at minimum) We recommend this process toinclude procedures for both standard and nonstandard journal entries For nonstandard journal

entries we recommend the Executive Director review and approve all nonstandard journal entries

and initial the support for the entries to document approval This process will improve controlsover necessary adjustments made to the general ledger

Status Repeat Finding

Best Practices

QuickBooks Password Security

Deficiency Our audit revealed that the QuickBooks file is now maintained on two computers ndash

Financial Services Managerrsquos desktop and a spare computer which a part-time employee usesWith the expansion of locations more security is considered ideal

Recommendation We recommend the Authority password protect the QuickBooks file

Locking QuickBooks fiscal year after final close process

Deficiency During our audit we noted that the bookkeeper was making changes to transactions

after final close process was completed This creates discrepancies between the books andreconciliations documentation

Recommendation We recommend the Authority lock each fiscal year after final close process is

complete

Prior Year Findings

Bank Reconciliation Review

Deficiency During the audit we noted no managerial review of bank reconciliation occurs

Recommendation We recommend that management review bank reconciliations on a monthly basis

Status Implemented

Billings to QuickBooks Reconciliation

Deficiency While conducting the audit we noted the process of billing and accounting arecompleted by separate individuals a process that is recommended for sound internal controls

However there is no reconciliation between billings and QuickBooks completed This allows for

errors within the general ledger to exist for some time which can lead to irregularities including

fraud to continue without notice

Recommendation We recommend the Authority develop and implement monthly billings to

QuickBooks reconciliation and if any reconciling items are noted they are promptly reviewed and

adjusted with adequate explanationsStatus Implemented

McGilloway Ray Brown amp Kaufman

Salinas California

December 11 2015

ATTACHMENT 1



MONTEREY PENINSULA REGIONAL

WATER AUTHORITY

BASIC FINANCIAL STATEMENTS

YEAR ENDED JUNE 30 2015

MCGILLOWAY RAY BROWN amp KAUFMAN

ACCOUNTANTS amp CONSULTANTS

ATTACHMENT 1



TABLE OF CONTENTS

Page

Independent Auditorrsquos Report 1

Managementrsquos Discussion and Analysis 3

(Required Supplementary Information)

Basic Financial statements

Statement of Net Position 7Statement of Revenues Expenses and Changes in Net Position 8Statement of Cash Flows 9

Notes to Financial Statements 10

ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936

INDEPENDENT AUDITORS REPORT

The Board of Directorsof Monterey Peninsula Regional Water Authority

Monterey California

We have audited the accompanying financial statements of the Monterey Peninsula Regional

Water Authority (the ldquoAuthorityrdquo) as of and for the year ended June 30 2015 and the related

notes to the financial statements which collectively comprise the Authorityrsquos basic financial

statements as listed in the table of contents

Managementrsquos Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements

in accordance with accounting principles generally accepted in the United States of America this

includes the design implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement

whether due to fraud or error

Auditorrsquos Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit We

conducted our audit in accordance with auditing standards generally accepted in the United States

of America Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial statements The procedures selected depend on the auditorrsquos judgment

including the assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error In making those risk assessments the auditor considers internal control

relevant to the entityrsquos preparation and fair presentation of the financial statements in order to

design audit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on the effectiveness of the entityrsquos internal control Accordingly we express

no such opinion An audit also includes evaluating the appropriateness of accounting policies used

and the reasonableness of significant accounting estimates made by management as well as

evaluating the overall presentation of the financial statements

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis

for our audit opinion

ATTACHMENT 1



2

Opinion

In our opinion the financial statements referred to above present fairly in all material respects

the financial position of the Monterey Peninsula Regional Water Authority as of June 30 2015

and the changes in its financial position and its cash flows for the year then ended in accordancewith accounting principles generally accepted in the United States of America

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the

managementrsquos discussion and analysis on pages 3 through 6 be presented to supplement the basic

financial statements Such information although not a part of the basic financial statements isrequired by the Governmental Accounting Standards Board who considers it to be an essential

part of financial reporting for placing the basic financial statements in an appropriate operational

economic or historical context We have applied certain limited procedures to the requiredsupplementary information in accordance with auditing standards generally accepted in the

United States of America which consisted of inquiries of management about the methods of

preparing the information and comparing the information for consistency with managementrsquos

responses to our inquiries the basic financial statements and other knowledge we obtainedduring our audit of the basic financial statements We do not express an opinion or provide any

assurance on the information because the limited procedures do not provide us with sufficient

evidence to express an opinion or provide any assurance

McGilloway Ray Brown amp KaufmanSalinas California

December 11 2015

ATTACHMENT 1



MONTEREY PENINSULA REGIONAL WATER AUTHORITYMANAGEMENTrsquoS DISCUSSION AND ANALYSIS

JUNE 30 2015

3

This section of the Authorityrsquos annual financial report presents our discussion and analysis of theAuthorityrsquos financial position and changes in financial position as of and for the fiscal yearended June 30 2015 The Managementrsquos Discussion and Analysis (MDampA) should be read inconjunction with the Authorityrsquos basic financial statements and the related notes to the financial

statements which immediately follow this section

Financial Highlights

Operating revenues increase by $316271 to $740833 or 745 primarily due to receiptof $200000 in Cal-Am funds to pay for the Value Engineering (VE) contract and thereceipt of $153000 from the County of Monterey as its fair-share contribution for FY2014-2015

Operating expenses increased by $210227 to $529970 or 657 primarily due toincreases in the cost of the VE contract and SPI review of the VErsquos recommendations

Current assets increased by $280784 to $414549 or 2099 primarily due tooverpayment by the Member Agencies to cover Authority operating expenses based onan assumption that County of Monterey would not contribute its fair-share for FY 2014-2015 and less of a need for Special Counsel Services than expected due to a slowdown inthe Desal Project CEQA process

Current liabilities increase by $69921 to $82318 or 56402 primarily due to a balance

owed to Cal-Am for the over contribution of fund to pay for the VE contract

The Authorityrsquos net position increased by $210863 to $332231 or 1737 as a result ofcurrent year operations

Using This Annual Report

This annual report consists of three sections Managementrsquos Discussion and Analysis the

Financial Statements and Notes to the Financial Statements that explain in more detail some ofthe information in the Financial Statements

Required Financial Statements

The Statements of Net Position includes the Authorityrsquos assets plus deferred outflows ofresources and liabilities plus deferred inflows of resources and provides information about thenature and amounts of investments in resources (assets) and nature and extent of obligations(liabilities) with the difference between them being reported as net position It also provides the basis for computing the rates of return evaluating the capital structure of the Authority andassessing the liquidity and financial flexibility of the Authority

The Statements of Revenues Expenses and Changes in Net Position presents the changes in net

position from one reporting period to another by accounting for revenues and expenses andmeasuring the financial results of operations This statement measures the profitability of theAuthorityrsquos operations over the past year and can be used to determine whether the Authority hassuccessfully recovered all of its costs through its user fees and other charges

The Statements of Cash Flows provides information about the Authorityrsquos cash receipts cash payments and net changes in cash and cash equivalents resulting from operating investing andcapital and non-capital financing activities It also provides information regarding sources ofcash uses of cash and changes in cash balances during the reporting period

ATTACHMENT 1




JUNE 30 2015

4

Notes to the financial statements include information essential to understanding the abovestatements such as the Authorityrsquos significant accounting policies and information about certainfinancial statement account

Authorityrsquos Financial Analysis

Net Position

A summary of the Authorityrsquos Condensed Statement of Net Position is presented in Table 1 below

Net Position may serve over time as an indicator of an Authorityrsquos financial position In the caseof this Authority assets exceeded liabilities by $332231 as of June 30 2015

The Authorityrsquos current financial position is the product of the net result of revenues andexpenses

Table 1

2015 2014 Amount Percent

ASSETS

Cash and cash equivalents 414549$ 133765$ 280784$ 2099

Receivables - - - 00

Total assets 414549 133765 280784 2099

LIABILITIES

Accounts payable 81197 11276 69921 6201

Unearned revenue 1121 1121 - 00

Total liabilities 82318 12397 69921 56402

NET POSITION

Unrestricted 332231 121368 210863 1737

Total net position 332231$ 121368$ 210863$ 1737

CONDENSED STATEMENT OF NET POSITION

Year ended June 30 Change

Changes in Net Position

The following table represents a summary of the Statement of Revenues Expenses and Changesin Net Position

Table 2


740833$ 424562$ 316271$ 745

Operating expenses 529970 319743 210227 657

Change in net position 210863$ 104819$ 106044$ 1012

CONDENSED STATEMENT OF REVENUES EXPENSES AND

CHANGES IN NET POSITION

Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget

The Authorityrsquos governing body adopted a budget as an operating plan Budgetary basis financialstatements are not presented because there is no legal requirement to do so

On April 14 2014 the Authority adopted a budget of $458680 for fiscal year 2014-2015 withfair-share contributions requested from each member city as well as from County of MontereyThe $35000 increase from FY 2013-2014 was due primarily to an additional $52000 budgetedfor Special Counsel Services in expectation of California Public Utilities Commission (CPUC) proceedings scheduled to follow certification of the Cal-Am Monterey Peninsula Water SupplyProject (MPWSP) EIR and a decrease of $17000 for Contract Services

Factors Bearing on the Authorityrsquos Future

During the fiscal year that ended June 30 2015 the focus of the Authority was to keep theCommunity united in requesting a four-year extension of the State Water Resources ControlBoard SWRCB (CDO) 2009-0060 January 1 2017 deadline related to reduction of water

diversions from the Carmel River to support Cal-Am applications to the City of Marina and tothe Coastal Commission for permits to build and operate the test slant well and to respond to theCal-Am Desal DEIR prepared by the CPUC by way of local expert commentary as well as bymeans of two (2) contracted focused studies In addition the Authority remained available toassist the Water Pollution Control Agency in its Pure Water MontereyGround WaterReplenishment (PWMGWR) project intended to meet one third of the Carmel River diversionrequirement The Authority continued to provide transparency in its deliberations insuringaccountable elected officials retain oversight of new water supply projects for the Peninsulamaximizing public participation and retaining a policy position that best served the needs ofPeninsula residents

The Position Statement also defined basic conditions that any project must satisfy to receive

Authority support Though the Authority remains open to other Desal options such as DeepWater Desal and Peoples Desal the Authority continues to support Cal-Amrsquos MPWSP since itcurrently appears to be farthest along in the permitting and construction process

The future of the Water Authority depends upon how successful it can be in keeping the sixPeninsula Cities and Monterey County working together focused on those components of the portfolio water solution which comply with the basic conditions of its Position Statement

To that end the Authority again approved the following work plan for the upcoming fiscal year

Completion of post-settlement activities and follow-up with settling parties regardingCal-Amrsquos CPUC application for the MPWSP

Work collaboratively with the Monterey Peninsula Water Management District(MPWMD) and Cal-Am to obtain Water Rate Relief Bonding and other publicfunding to minimize costs to the ratepayer

Work collaboratively with MPWMD and the Monterey Regional Water PollutionControl Agency (MRWPCA) to move the GWR project forward

Work with the MPWMD Cal Am and other interested parties to obtain appropriatemodifications to the Cease and Desist Order from the SWRCB

When appropriate support Cal-Am in its effort to secure permits related to the proposed source wells intake water conveyance facilities and brine disposal

Pursue opportunities to increase the use of storm water in future water supply projects

ATTACHMENT 1




JUNE 30 2015

6

Request for Information

This financial report is designed to provide citizens and taxpayers with a general overview of the

Authorityrsquos finances and to demonstrate the Authorityrsquos accountability for money it receives If

you have any questions about this report or need any additional information please contact the

Authorityrsquos Executive Director James Cullem via telephone at 831-241-8503 or email atcullemmontereyorg

ATTACHMENT 1



The accompanying notes are an integral part of these financial statements

7

ASSETS

Cash and cash equivalents 414549$

Accounts receivable net of $134719 allowance -

Total assets 414549

LIABILITIES

Accounts payable 81197

Unearned revenue 1121

Total liabilities 82318

NET POSITION

Unrestricted 332231

Total net position 332231$

MONTEREY PENINSULA REGIONAL WATER AUTHORITY

STATEMENT OF NET POSITION

JUNE 30 2015

ATTACHMENT 1




8

Membership fees 620794$Project evaluation reimbursement 120039

Total operating revenue 740833

OPERATING EXPENSES

Administration and clerical services 105003

Legal services 150780

Contract services 132794

Insurance 6673

Bad debt expense 134720

Total operating expenses 529970

Operating incomechange in net position 210863

Net Position beginning of the year 130649

Prior period adjustment (Note 5) (9281)

Net Position beginning of the year as restated 121368

Total net position end of year 332231$

OPERATING REVENUES


FOR THE YEAR ENDED JUNE 30 2015

STATEMENT OF REVENUES EXPENSES AND CHANGES IN NET POSITION

ATTACHMENT 1




9

Cash Flows from Operating Activities

Cash received from membership fees 740833$

Cash payments to consultants and suppliers of goods and services (460049) 280784

280784

Cash and Cash Equivalents beginning of year 133765

Cash and Cash Equivalents end of year 414549$

Operating income 210863$

provided (used) by operating activities

Provision for doubtful accounts 134719 (Increase) decrease in accounts receivables (134719)

Increase (decrease) in accounts payable 69921

Net cash provided by operating activities 280784$


Adjustments to reconcile operating income to net cash

Net increase in cash and cash equivalents

Net cash provided by operating activities

Reconciliation of operating income to net cash provided by operating

activities


STATEMENT OF CASH FLOWS

ATTACHMENT 1




NOTES TO BASIC FINANCIAL STATEMENTS

JUNE 30 2015

10

1 Organization and Summary of Significant Accounting Polices

Organization

The Monterey Peninsula Regional Water Authority (the ldquoAuthorityrdquo) was formed on February25 2012 pursuant to the Joint Exercise of Powers Act set forth in Chapter 5 of Division 7 of

Title 1 of the Government Code sections 6500 et seq The Authority operates as a jointlygoverned organization The participants of the Authority are the City of Carmel-by-the-Sea theCity of Del Rey Oaks the City of Monterey the City of Pacific Grove the City of Sand City

and the City of Seaside The Authority operates under a governing body of six directors one

director from each participant

The purpose of the Authority is to jointly ensure the timely development financing constructionoperation repair and maintenance of one or more water projects and ensure that the governance

of such water projects includes representation that is directly accountable to the participantsrsquo

water uses

Basis of Accounting Financial Presentation and Measurement Focus

The Authorityrsquos basic financial statements have been prepared using the accrual basis ofaccounting

As such revenue is recognized when earned and expenses are recognized when they are

incurred

The Authority reports its activities as a single enterprise fund which is used to account foroperations that are financed and operated in a manner similar to a private business enterprise

An enterprise fund distinguishes operating revenues and expenses from non-operating items

Operating revenues and expenses generally result from providing services and producing anddelivering goods in connection with the proprietaryrsquos fund principal ongoing operations The

principle operating revenue for the Authority is membership fees from the Authorityrsquos six

member agencies Operating expenses for the Authority include the cost of services andadministrative expenses All revenues and expenses not meeting this definition are reported as

non-operating revenues and expenses

The basic financial statements are prepared using an economic resources measurement focus

This means all assets and liabilities associated with the Authorityrsquos activities are included on theStatement of Net Position The Statement of Revenues Expenses and Changes in Net Position

presents increases (revenues) and decreases (expenses) to total net position

Accounting Changes

The Authority applies all applicable GASB pronouncements for certain accounting and financialreporting guidance

BudgetThe Authority annually adopts an operating budget for the ensuing fiscal year effective July 1

with a mid-year review as a financial plan for the year The governing body adopts said budgetas an operating plan Budgetary basis financial statements are not presented because the

Authority is not legally required to do so

Cash Equivalents

The Authority presents its cash flow statements using the direct method For purposes of cashflow presentation the Authority considers demand deposits with financial institutions to be cash

equivalents

ATTACHMENT 1




NOTES TO BASIC FINANCIAL STATEMENTSJUNE 30 2015

11

Accounts Receivable

The primary source of accounts receivable is from membership fees paid annually by the sixmember agencies No allowance is established for membership fees as management considersthem fully collectible

Deferred OutflowsInflows of ResourcesIn addition to assets the statement of financial position will sometimes report a separate sectionfor deferred outflows of resources This separate financial statement element deferred outflowsof resources represents a consumption of net position that applies to a future period(s) and sowill not be recognized as an outflow of resources (expenses) until then For this reporting periodthe Authority has no items that qualify for reporting in this category

In addition to liabilities the statement of net position will sometimes report a separate section fordeferred inflows of resources This separate financial statement element deferred inflows ofresources represents an acquisition of net position that applies to a future period(s) and so willnot be recognized as an inflow of resources (revenue) until that time For this reporting periodthe Authority has no items that qualify for reporting in this category

Net Position

The statement of net position reports all financial and capital resources The difference betweenassets and liabilities is net position The Authorityrsquos net position is classified as follows

Net investment in Capital Assets ndash This represents the total investment in capital assets net ofoutstanding debt obligations related to those capital assets Currently the Authority does nothave any capital assets or outstanding debt

Restricted ndash This represents amounts that are subject to restrictions that are imposed by externalgroups such as creditors contributors or laws and regulations of other Governments or lawthrough constitutional provisions or enabling legislation Currently the Authority does not haveany restrictions on net position

Unrestricted Net Position ndash Unrestricted net position includes resources derived frommembership fees

Revenue Recognition

Revenues are recognized when earned Revenues for the Authority are recognized when billed toeach of the six member agencies

Use of Estimates

Management uses estimates and assumptions in preparing financial statements in accordancewith generally accepted accounting principles Those estimates and assumptions affect thereported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the

date of the financial statements and the reported amounts of revenues and expenses during thereporting period Accordingly actual results may differ from these estimates

2 Cash Held with Financial Institutions

The Authority maintains cash balances at Wells Fargo Bank NA a commercial bank with branches in Carmel-by-the-Sea CA with federal depository insurance coverage of $250000 Inaccordance with the applicable federal law and state statutory requirements public funds arecollateralized for balances above FDIC coverage The bank balance at June 30 2015 was$447508 the book balance was $414549

ATTACHMENT 1









Item No 6

0612


SUBJECT Receive an Update on the Summary Project Schedule for the MontereyPeninsula Water Supply Project (MPWSP) and the Status of Test SlantWell Operations and Results and Receive a Report on Prices of theMPWSP Which Cal Am Submitted to the CPUC on December 15 2015

RECOMMENDATION

It is recommended that the Water Authority Board receive a report from Cal Am on the

latest Summary MPWSP schedule and on the status of test well operations andresults and receive a report on the prices of the MPWSP submitted by Cal Am to theCalifornia Public Utilities Commission (CPUC) Administrative Law Judge ( ALJ) onDecember 15 2015

DISCUSSION

Cal Am will provide an update on the Summary MPWSP schedule and the status of testslant well operations and results at the Water Authority meeting In addition Cal Am willprovide current information on the capital costs of building the 96 gpm and 64 gpmMPWSP project alternatives as submitted to the ALJ on December 15 2015

ATTACHMENTS

None







Item No 7

0612


SUBJECT Receive Report Discuss and Provide Direction on the Pure WaterMonterey (PWM) Ground Water Replenishment (GWR) Project DraftTestimony to the California Public Utilities Commission and the Requestfrom the Monterey Regional Water Pollution Control Agency and the Cityof Monterey to Send a Letter to Cal Am in Support of Finalization of theWater Purchase Agreement

RECOMMENDATION

It is recommended that the Water Authority receive an update on the draft testimonyexpected to be submitted to the California Public Utilities Commission (CPUC) on thePure Water Monterey (PWM) Ground Water Replenishment (GWR) project considerletters requesting the Water Authority to contact Cal Am and provide staff direction

DISCUSSION

At its meeting of Dec 10 2015 the Water Authority received the most recent CPUCSchedule on the MPWSP As noted on that schedule testimony on the GWR WaterPurchase Agreement (WPA) is due to the CPUC Administrative Law Judge (ALJ) by

January 22 2016

Although agreement amongst Cal Am the Monterey Peninsula Water ManagementDistrict (MPWMD) and the Monterey Regional Water Pollution Control Agency(MRWPCA) is close a few issues remain in executing the WPA for buying GWR waterto meet the needs of the MPWSP The remaining issues have resulted in letters to theWater Authority from the MRWPCA (encl A) and from the City of Monterey (encl B)requesting that the Authority work to resolve them prior to January 22

Although rebuttal testimony can be submitted to the ALJ by March 22 following twomonths of settlement discussions the Authority President and Special Counsel have

been working to mediate a resolution prior to January 22 as requested An update onthat effort will be provided at the Water Authority Board meeting

ATTACHMENTS

1 Letter from the MPWMD dated December 22 20152 Letter from the City of Monterey dated January 5 2016







ATTACHMENT









Item No 9

0612


SUBJECT Receive Report Discuss and Provide Direction on a Draft Term Sheet fromthe Surfrider Association Concerning MPWSP Desal Facility Brine Disposal

RECOMMENDATION

It is recommended that the Water Authority receive an update on the testimonyexpected to be submitted by the Surfriders Association to the California Public UtilitiesCommission (CPUC) as a draft Term Sheet on Brine Disposal

DISCUSSION

At its meeting of Dec 10 2015 the Water Authority received the most recent CPUCSchedule on the MPWSP As noted on that scheduled supplemental testimony on theissue of brine disposal is due to the CPUC Administrative Law Judge (ALJ) by January22 2016

Recent discussions between representatives of Cal Am the MPWMD the MPWPCAthe Surfriders Association the MPRWA have been conducted to address the brine

disposal issue As authorized by the Authority Board on December 10 2015 theAuthority has had the assistance of Al Preston PhD PE of Geosyntec(SPI sub-consultant) an expert on the brine disposal issue

Rebuttal testimony on the brine disposal proposal may be submitted to the ALJ byMarch 22 following two months of settlement discussions However the AuthorityPresident our Special Counsel and other interested parties have sought to develop anacceptable Surfrider term sheet prior to January 22 to reduce the likelihood of extensiverebuttal or litigation over the issue An update on that effort will be provided at the WaterAuthority Board meeting

ATTACHMENTS

None





2

Ground Water Replenishment (GWR) Project Draft Testimony to the California Public Utilities Commission and the Request from the Monterey Regional Water Pollution Control Agency and the City of Monterey to Send a Letter to Cal Am in Support of Finalization ofthe Water Purchase Agreement - CullemStoldt

8 Receive Report Discuss and Provide Direction on a Draft Term Sheet from the Castroville

Community Services District (CCSD) for the Purchase and Use of Return Water from the Monterey Peninsula Water Supply Project (MPWSP) Desal Facility - Cullem

9 Receive Report Discuss and Provide Direction on a Draft Term Sheet from the Surfrider Association Concerning MPWSP Desal Facility Brine Disposal - Cullem

ADJOURNMENT

The City of Monterey is committed to including the disabled in all of its services programs andactivities In compliance with the Americans with Disabilities Act if you need special assistanceto participate in this meeting please contact the City Clerkrsquos Office at (831) 646-3935Notification 30 hours prior to the meeting will enable the City to make reasonable arrangementsto ensure accessibility to this meeting [28 CFR 35102-35104 ADA Title II] Later requests willbe accommodated to the extent feasible For communication-related assistance dial 711 to usethe California Relay Service (CRS) to speak to City offices CRS offers free text-to-speech speech-to-speech and Spanish-language services 24 hours a day 7 days a week If you require a hearingamplification device to attend a meeting dial 711 to use CRS to talk to the City Clerks Office at(831) 646-3935 to coordinate use of a device

Agenda related writings or documents provided to the MPRWA are available for publicinspection during the meeting or may be requested from the Monterey City Clerkrsquos Office at 580Pacific St Room 6 Monterey CA 93940 This agenda is posted in compliance with CaliforniaGovernment Code Section 549542(a) or Section 54956



MINUTES



MONTEREY CALIFORNIA



ROLL CALL








PUBLIC COMMENTS


CONSENT AGENDA
















AGENDA ITEMS




































ADJOURNMENT


ATTEST








Item No 1



RECOMMENDATION


DISCUSSION





to December 31 2015







ATTACHMENTS




248 PM

010816

Accrual Basis





Income









Total Income 000 13700000 -13700000 00

Expense


























Total Expense 11441273 29000000 -17558727 3945


Other IncomeExpense

Other Income



Other Expense




Net Income -11441228 -15300000 3858772 7478

Page 1 of 1

ATTACHMENT 1





Item No 3



RECOMMENDATION


DISCUSSION






FISCAL IMPACT









Item No 4



RECOMMENDATION


DISCUSSION


ATTACHMENTS








Item No 5

0612



RECOMMENDATION



DISCUSSION







ATTACHMENTS





Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936












ATTACHMENT 1
























Restriction on Use





2

ATTACHMENT 1




Larry W Rollins CPA






Fax 831-373-3437 Fax 831-424-7936














weaknesses








ATTACHMENT 1



2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None





MINUTES



MONTEREY CALIFORNIA



ROLL CALL








PUBLIC COMMENTS


CONSENT AGENDA
















AGENDA ITEMS




































ADJOURNMENT


ATTEST








Item No 1



RECOMMENDATION


DISCUSSION





to December 31 2015







ATTACHMENTS




248 PM

010816

Accrual Basis





Income









Total Income 000 13700000 -13700000 00

Expense


























Total Expense 11441273 29000000 -17558727 3945


Other IncomeExpense

Other Income



Other Expense




Net Income -11441228 -15300000 3858772 7478

Page 1 of 1

ATTACHMENT 1





Item No 3



RECOMMENDATION


DISCUSSION






FISCAL IMPACT









Item No 4



RECOMMENDATION


DISCUSSION


ATTACHMENTS








Item No 5

0612



RECOMMENDATION



DISCUSSION







ATTACHMENTS





Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936












ATTACHMENT 1
























Restriction on Use





2

ATTACHMENT 1




Larry W Rollins CPA






Fax 831-373-3437 Fax 831-424-7936














weaknesses








ATTACHMENT 1



2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None















AGENDA ITEMS




































ADJOURNMENT


ATTEST








Item No 1



RECOMMENDATION


DISCUSSION





to December 31 2015







ATTACHMENTS




248 PM

010816

Accrual Basis





Income









Total Income 000 13700000 -13700000 00

Expense


























Total Expense 11441273 29000000 -17558727 3945


Other IncomeExpense

Other Income



Other Expense




Net Income -11441228 -15300000 3858772 7478

Page 1 of 1

ATTACHMENT 1





Item No 3



RECOMMENDATION


DISCUSSION






FISCAL IMPACT









Item No 4



RECOMMENDATION


DISCUSSION


ATTACHMENTS








Item No 5

0612



RECOMMENDATION



DISCUSSION







ATTACHMENTS





Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936












ATTACHMENT 1
























Restriction on Use





2

ATTACHMENT 1




Larry W Rollins CPA






Fax 831-373-3437 Fax 831-424-7936














weaknesses








ATTACHMENT 1



2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None































ADJOURNMENT


ATTEST








Item No 1



RECOMMENDATION


DISCUSSION





to December 31 2015







ATTACHMENTS




248 PM

010816

Accrual Basis





Income









Total Income 000 13700000 -13700000 00

Expense


























Total Expense 11441273 29000000 -17558727 3945


Other IncomeExpense

Other Income



Other Expense




Net Income -11441228 -15300000 3858772 7478

Page 1 of 1

ATTACHMENT 1





Item No 3



RECOMMENDATION


DISCUSSION






FISCAL IMPACT









Item No 4



RECOMMENDATION


DISCUSSION


ATTACHMENTS








Item No 5

0612



RECOMMENDATION



DISCUSSION







ATTACHMENTS





Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936












ATTACHMENT 1
























Restriction on Use





2

ATTACHMENT 1




Larry W Rollins CPA






Fax 831-373-3437 Fax 831-424-7936














weaknesses








ATTACHMENT 1



2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None









Item No 1



RECOMMENDATION


DISCUSSION





to December 31 2015







ATTACHMENTS




248 PM

010816

Accrual Basis





Income









Total Income 000 13700000 -13700000 00

Expense


























Total Expense 11441273 29000000 -17558727 3945


Other IncomeExpense

Other Income



Other Expense




Net Income -11441228 -15300000 3858772 7478

Page 1 of 1

ATTACHMENT 1





Item No 3



RECOMMENDATION


DISCUSSION






FISCAL IMPACT









Item No 4



RECOMMENDATION


DISCUSSION


ATTACHMENTS








Item No 5

0612



RECOMMENDATION



DISCUSSION







ATTACHMENTS





Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936












ATTACHMENT 1
























Restriction on Use





2

ATTACHMENT 1




Larry W Rollins CPA






Fax 831-373-3437 Fax 831-424-7936














weaknesses








ATTACHMENT 1



2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None





248 PM

010816

Accrual Basis





Income









Total Income 000 13700000 -13700000 00

Expense


























Total Expense 11441273 29000000 -17558727 3945


Other IncomeExpense

Other Income



Other Expense




Net Income -11441228 -15300000 3858772 7478

Page 1 of 1

ATTACHMENT 1





Item No 3



RECOMMENDATION


DISCUSSION






FISCAL IMPACT









Item No 4



RECOMMENDATION


DISCUSSION


ATTACHMENTS








Item No 5

0612



RECOMMENDATION



DISCUSSION







ATTACHMENTS





Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936












ATTACHMENT 1
























Restriction on Use





2

ATTACHMENT 1




Larry W Rollins CPA






Fax 831-373-3437 Fax 831-424-7936














weaknesses








ATTACHMENT 1



2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None







Item No 3



RECOMMENDATION


DISCUSSION






FISCAL IMPACT









Item No 4



RECOMMENDATION


DISCUSSION


ATTACHMENTS








Item No 5

0612



RECOMMENDATION



DISCUSSION







ATTACHMENTS





Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936












ATTACHMENT 1
























Restriction on Use





2

ATTACHMENT 1




Larry W Rollins CPA






Fax 831-373-3437 Fax 831-424-7936














weaknesses








ATTACHMENT 1



2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None










Item No 4



RECOMMENDATION


DISCUSSION


ATTACHMENTS








Item No 5

0612



RECOMMENDATION



DISCUSSION







ATTACHMENTS





Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936












ATTACHMENT 1
























Restriction on Use





2

ATTACHMENT 1




Larry W Rollins CPA






Fax 831-373-3437 Fax 831-424-7936














weaknesses








ATTACHMENT 1



2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None









Item No 5

0612



RECOMMENDATION



DISCUSSION







ATTACHMENTS





Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936












ATTACHMENT 1
























Restriction on Use





2

ATTACHMENT 1




Larry W Rollins CPA






Fax 831-373-3437 Fax 831-424-7936














weaknesses








ATTACHMENT 1



2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None






Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936












ATTACHMENT 1
























Restriction on Use





2

ATTACHMENT 1




Larry W Rollins CPA






Fax 831-373-3437 Fax 831-424-7936














weaknesses








ATTACHMENT 1



2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None


























Restriction on Use





2

ATTACHMENT 1




Larry W Rollins CPA






Fax 831-373-3437 Fax 831-424-7936














weaknesses








ATTACHMENT 1



2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None






Larry W Rollins CPA






Fax 831-373-3437 Fax 831-424-7936














weaknesses








ATTACHMENT 1



2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None





2






Best Practices









complete

Prior Year Findings




Status Implemented










Salinas California

December 11 2015

ATTACHMENT 1




WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None






WATER AUTHORITY





ATTACHMENT 1



TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None





TABLE OF CONTENTS

Page







ATTACHMENT 1




Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None






Larry W Rollins CPA





831-373-3337 831-424-2737 Fax 831-373-3437 Fax 831-424-7936



Monterey California
























ATTACHMENT 1



2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None





2

Opinion




Other Matters













December 11 2015

ATTACHMENT 1




JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None






JUNE 30 2015

3


















ATTACHMENT 1




JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None






JUNE 30 2015

4



Net Position




Table 1


ASSETS



Total assets 414549 133765 280784 2099

LIABILITIES




NET POSITION

Unrestricted 332231 121368 210863 1737






Table 2


740833$ 424562$ 316271$ 745





Operating revenues


ATTACHMENT 1




JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None






JUNE 30 2015

5

Budget
















ATTACHMENT 1




JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None






JUNE 30 2015

6






ATTACHMENT 1




7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None






7

ASSETS



Total assets 414549

LIABILITIES




NET POSITION

Unrestricted 332231




JUNE 30 2015

ATTACHMENT 1




8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None






8



OPERATING EXPENSES




Insurance 6673








OPERATING REVENUES




ATTACHMENT 1




9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None






9




280784













activities



ATTACHMENT 1





JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None







JUNE 30 2015

10


Organization







water uses




incurred










Accounting Changes





Cash Equivalents


equivalents

ATTACHMENT 1





11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None







11

Accounts Receivable




Net Position





Revenue Recognition


Use of Estimates





ATTACHMENT 1









Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None











Item No 6

0612



RECOMMENDATION



DISCUSSION


ATTACHMENTS

None







Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None









Item No 7

0612



RECOMMENDATION


DISCUSSION


January 22 2016




ATTACHMENTS








ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None









ATTACHMENT









Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None











Item No 9

0612



RECOMMENDATION


DISCUSSION





ATTACHMENTS

None

