ITEM:		CONSENT CALENDAR
5.	CONSIDER EXPENDITURE OF BUDGETED FUNDS TO AMEND CONTRACT WITH PUEBLO WATER RESOURCES TO PROVIDE HYDROGEOLOGIC REVIEW FOR WATER DISTRIBUTION SYSTEM PERMITS
Meeting Date:			June 16, 2008	Budgeted:	Yes
From:			Darby Fuerst,	Program/	2-8-2
			General Manager	Line Item No.:
Prepared By:			Henrietta Stern	Cost Estimate:	$25,000
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee reviewed this item on June 5, 2008 and recommend approval.
CEQA Compliance: N/A

SUMMARY: The Board will consider authorizing the General Manager to amend an existing contract with Pueblo Water Resources, Inc. (Pueblo) to authorize a maximum of $25,000 for Fiscal Year (FY) 2008-2009 (July 1, 2008 through June 30, 2009) to continue to help District staff carry out MPWMD Rules and Regulations governing Water Distribution Systems (WDS), specifically in regards to hydrogeologic review of well pumping test reports and related tasks. There is no carry-over from the previous fiscal year (FY 2007-2008) as each fiscal year starts anew. The $25,000 limit would be allocated in two parts, which would be tracked separately in each monthly invoice as follows:

Ø Program 2-8-2-A, “Hydrologic impact review (applications),” with up to $20,000 as 100% reimbursable from applicants; and

Ø Program 2-8-2-B, “Update WDS technical procedures,” with up to $5,000 as non-reimbursable.

Importantly, this is a refinement from the information presented at the May 22, 2008 special budget workshop, which included the entire $25,000 amount as 100% reimbursable for hydrogeologic review of WDS applications (Program 2-8-2). This change is needed as the Water Resources Division Manager (Senior Hydrogeologist) needs Pueblo’s assistance to revise and update MPWMD technical procedures for well testing protocol and other related WDS work that is not reimbursable by applicants. As noted in Agenda Item 4, District staff needs consultant assistance to process the many current and anticipated WDS permit applications. The hydrogeologic review is the heart of the WDS permit assessment, and must show that a well (or other water source) will reliably meet the applicant’s needs, will not harm neighboring systems (wells) or harm Sensitive Environmental Receptors as defined in District Rule 11.

Exhibit 5-A is proposed scope of work and cost estimate from Pueblo for FY 2008-2009. It is noted that Pueblo’s rates are $5 per hour higher than last year to reflect inflation.

RECOMMENDATION: Staff recommends that the Board authorize the General Manager to amend the current District professional services contract with Pueblo for a not-to-exceed amount of $25,000 for FY 2008-2009, as described above. If this item is adopted along with the Consent Calendar, staff will execute a contract amendment with Pueblo for FY 2008-2009 in June 2008, so work will be uninterrupted when the new fiscal year begins on July 1, 2008. The Administrative Committee reviewed this item at its June 5, 2008 meeting and voted 3 to 0 to approve this item.

BACKGROUND AND DISCUSSION: Pueblo has been retained since June 2006 to assist staff with WDS permit processing. At its June 18, 2007 meeting, the Board approved a contract with Pueblo for a not-to-exceed amount of $25,000 for FY 2007-2008 (100% reimbursable). All amounts are maximums; only actual hours of service are billed. Invoiced hours submitted by consultants for each applicant are reimbursed by the applicant before the applicant receives the signed WDS permit.

IMPACT TO DISTRICT RESOURCES: The number of WDS applications and Pre-Applications received in years 2007 and 2008 to date have been more than 10 times the annual total of previous years (2006 and earlier). Due to the continued high volume of applicants during the past year, with more anticipated in FY 2008-2009 due to increasing restrictions on the availability of California American Water supply for new construction and remodels, consultant assistance is essential to adequately process permit applications and help educate the public about the WDS process.

Pueblo’s technical work is directed by the MPWMD Water Resources Division (WRD) Manager with billing managed by the Project Manager; funds are budgeted to the WRD Division. Pueblo’s work product is used as evidence by the planning consultant (GSPEC; see Agenda Item 4) who assists the Project Manager in preparing WDS permit documents, including formal Findings of Approval.

As noted above, the split of Program 2-8-2 into subparts A and B ($20,000 reimbursable and $5,000 non-reimbursable, respectively) is a change from the May 22, 2008 budget information provided to the Board. The Chief Financial Officer will highlight this refinement in his June 16, 2008 oral presentation to the Board on the full FY 2008-2009 budget. It is anticipated that the formal adopted budget will include this refinement, which results in $5,000 more actual expenses to the District than previously envisioned, though the total contract quantity remains at $25,000.

EXHIBIT

5-A Pueblo Scope of Work and Fee Schedule for FY 2008-2009

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