ITEM:		CONSENT CALENDAR
2.	AUTHORIZE expenditure of REIMBURSABLE Funds (EXEMPT FROM BOARD SPENDING REEZE) TO CONTRACT WITH FORT ORD REUSE AUTHORITY FOR WORK AT THE WATER PROJECT 1 SITE
Meeting Date:			March 21, 2011	Budgeted:	Contingency
From:			Darby Fuerst,	Program/	Water Supply
			General Manager	Line Item No.:	1-2-1 B. 1
Prepared By:			Joe Oliver	Cost Estimate:	$24,000 (Cal-Am reimbursable)
General Counsel Review: NA
Committee Recommendation: The Administrative Committee considered this item on March 14, 2011 and recommended approval.
CEQA Compliance: N/A

SUMMARY: The Board will consider approval of a reimbursement agreement between the Monterey Peninsula Water Management District (MPWMD or District) and the Fort Ord Reuse Authority (FORA) to enable completion of pipeline installation work at the Water Project 1 site (also referred to as the Santa Margarita or Phase 1 Aquifer Storage and Recovery [ASR] site) near the intersection of General Jim Moore Boulevard and Eucalyptus Road in Seaside. This item would be exempt from the temporary Board spending freeze as the cost would be reimbursable under a separate agreement between MPWMD and California American Water (Cal-Am). The draft FORA reimbursement agreement is included as Exhibit 2-A. The agreement will allow FORA staff to process the approvals needed for installation of temporary pipelines on property under the jurisdiction of FORA immediately adjacent to the Water Project 1 site. The property adjacent to the Water Project 1 site (Exhibit 2-B) does not currently have all the necessary clearances for Munitions and Explosives of Concern (MEC) and FORA is required to carry out this work prior to certain uses on the property. These temporary, mostly above-ground pipelines will allow connection with the new ASR well recently installed at the Seaside Middle School. This connection is needed to comply with Condition 5 of State Water Resources Control Board (SWRCB) Order 2009-0060 (i.e., the Cease and Desist Order) that requires Cal-Am to develop one or more “small projects” within 24 months of the Order (i.e., by October 20, 2011). Ultimately, the FORA approvals will also be required to facilitate installation of permanent underground pipelines on the adjacent property that MPWMD is working to acquire under a separate easement process with FORA and the City of Seaside. These permanent pipelines will allow connection of the Water Project 1 facilities to future ASR sites planned as part of Cal-Am’s ASR component of the Regional Water Supply Project.

RECOMMENDATION: It is recommended that the Board authorize staff to finalize the FORA reimbursement agreement for a not-to-exceed amount of $24,000. The General Manager will be authorized to execute this agreement and proceed with payments to FORA for their work in enabling the use of property adjacent to the Water Project 1 site, if this item is adopted.

BACKGROUND: The MPWMD has been developing the Water Project 1 site since 1999. The project transitioned from feasibility testing to permanent operation status with issuance of SWRCB Amended Permit 20808A in December 2007, and the project has been operated jointly by MPWMD and Cal-Am since then. To date (i.e., through February 2011), approximately 2,890 acre-feet of water have been diverted from Cal-Am’s Carmel River production sources for injection into the Seaside Groundwater Basin. The Water Project 1 site was originally planned and developed by MPWMD as a “stand-alone” facility for two ASR wells and associated water treatment facilities. However, through ongoing discussions with Cal-Am and their technical consultants, the potential use of the site has been expanded to include connection with other ASR facilities under development or in the planning stages in the basin. The need for connection to these other facilities has been heightened by the recent requirement of the SWRCB Cease and Desist Order, and also to facilitate ultimate operation of the ASR component of the Regional Project. These requirements have necessitated that an additional small piece of property adjacent to the Water Project 1 site be added to the site to accommodate the current planned uses at the site. Accordingly, MPWMD and Cal-Am have been working closely on the engineering details and land use approvals needed for the additional strip of land needed. The first step in this process is to enter into the reimbursement agreement with FORA. Simultaneously, MPWMD is working with the City of Seaside to secure a permit under their “Ordnance Ordinance” to allow the excavation work for pipeline installations to proceed. Also, MPMWD and Cal-Am are working with FORA and the City of Seaside to ultimately secure an easement for the additional property needed for long-term operations. The Board will be apprised of additional requirements under this process as it moves forward in the coming months.

IMPACT TO STAFF/RESOURCES: A significant staff effort has been expended in planning, coordinating, analyzing and overseeing work on the District’s ASR testing program in the Seaside Basin. This current item will be a continuation of that effort. However, staff understands that the current anticipated costs associated with the FOR A reimbursement agreement will be reimbursable by Cal-Am under the recently executed agreement between Cal-Am and MPWMD for construction of the Seaside Middle School ASR Test Well.

EXHIBITS

2-A Draft Agreement for Professional Services with FORA

2-B ASR Site Map

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