ITEM:		CONSENT CALENDAR
3.	CONSIDER EXPENDITURE OF FUNDS TO CONTRACT WITH JEA & ASSOCIATES FOR GOVERNMENTAL RELATIONS SERVICES
Meeting Date:			April 21, 2008	Budgeted:	No
From:			Darby Fuerst,	Program/	N/A
			General Manager	Line Item No.:
Staff Contact:			Darby Fuerst	Cost Estimate:	$26,350
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee reviewed this item on April 14, 2008, and recommended approval.
CEQA Compliance: N/A

SUMMARY: On March 17, 2008, the District Board directed staff to retain John Arriaga of JEA & Associates to provide legislative assistance to the District in connection with the pending Cease and Desist Order (CDO) that the State Water Resources Control Board (SWRCB) issued against California American Water (CAW) in January 2008. As drafted, the CDO requires that CAW, which serves 95% of the water users in the Monterey Peninsula area, reduce its currently allowed diversions from the Carmel River by 15% in Water Year (WY) 2009, with incremental reductions to 50% in WY 2015. As proposed, JEA & Associates would undertake legislative and administrative activities to support the District’s efforts concerning the CDO and assist the District in obtaining funds for water conservation and/or water supply measures required in response to the CDO (Exhibit 3-A).

RECOMMENDATION: Staff recommends that the Board authorize the General Manager to expend funds to contract with JEA & Associates for a not-to-exceed amount of $26,350 for the period March 18 through December 31, 2008. If this item is adopted along with the Consent Calendar, staff will execute a contract with JEA & Associates to provide governmental services through December 2008.

BACKGROUND: JEA & Associates is a Sacramento-based firm that provides governmental services to Monterey County, the Transportation Agency of Monterey County (TAMC), and other entities. As proposed, JEA & Associates will schedule, coordinate, and participate in meetings with the Governor’s Office, California Legislature, California Public Utilities Commission (CPUC), SWRCB, and others in addressing key issues and concerns regarding the CDO. In addition, JEA & Associates will assist District staff with project applications for grant funding for projects that may be needed in response to the CDO. As proposed, JEA & Associates would receive a $2,500 monthly retainer fee, with the month of March being pro-rated and the full retainer amount beginning April 1, 2008, plus chargeable expenses. It is anticipated the JEA & Associates’ level of activity will not exceed 25 hours per month on a regular basis. The contract will cover the period from March 18 to December 31, 2008.

IMPACT TO DISTRICT RESOURCES: The total cost for JEA & Associates to provide governmental services to the District during the period from March 18 through December 31, 2008, is estimated to be $26,350. This estimate includes $23,950 in monthly retainer fees and $2,400 for chargeable expenses. Funds for this expenditure are not included in the FY 2007-2008 budget. A portion of the District’s contingency fund will be used to fund the JEA & Associates work in FY 2007-2008, $7,150, and the remainder, $16,500, will be included in the FY 2008-2009 budget.

EXHIBIT

3-A JEA & Associates proposal to provide governmental services to MPWMD

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