MPWMD BOARD MEETING--JAN 14, 2013--ITEM 1--CONSIDER ADOPTION OF RESOLUTION 2007-01 DECLARING THE OFFICIAL INTENT TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF TAX EXEMPT SECURITIESAUTHORIZE EXPENDITURE OF BUDGETED FUNDS FOR FINANCIAL SERVICES CONSULTING IN SUPPORT OF DISTRICT’S TESTIMONY IN CPUC APPLICATION NO. 12-04-019

ITEM:		CONSENT CALENDAR

2.	AUTHORIZE EXPENDITURE OF FUNDS FOR REVIEW OF CALIFORNIA AMERICAN WATER DESIGN BUILD PROCUREMENT PROCESS

Meeting Date:			November 18, 2013	Budgeted:	Yes

From:			David J. Stoldt	Program/	Cal-Am Desal Project
			General Manager	Line Item No.: 1-9-1

Prepared By:			David J. Stoldt	Cost Estimate:	Not to exceed $12,000

General Counsel Approval: N/A
Committee Recommendation: The Water Supply Planning Committee reviewed this item on November 5, 2013 and voted 3 to 0 to recommend the Board approve. The Administrative Committee reviewed this item on November 12, 2013 and voted 3 to 0 to recommend the Board approve.
CEQA Compliance: N/A

SUMMARY: District Counsel, County Counsel, and Counsel for the Authority (MPRWA) conferred several times in late October with Anthony Cerasuolo and Lori Girard of California American Water (Cal-Am) to finalize plans with respect to the design-build (DB) contracting process.

Cal-Am anticipates it will have selected the preferred desal DB proposer on or about November 15th. Cal-Am agreed that a consultant on behalf of the three public entity members of the Governance Committee shall participate in the evaluation of the five design-build teams. The interview process was held in Pacific Grove November 5-7. The current schedule contemplates that on or about Friday December 6, 2013 Cal-Am will circulate to the Governance Committee a document to explain actions it has taken to date, as well as 5 Proposals (from the short list firms), Cal-Am’s evaluative report, and the modified form of DB contract. This material is to be reviewed by the Governance Committee on December 11, 2013.

Cal-Am plans to go to its Board on December 13, 2013 for approval and targets December 20, 2013 as the date for the Contract to be signed.

In order to meet the tight timeline of participation in the interviews, on the approval of the Water Supply Planning Committee, the District indicated it would participate in cost-sharing for the Governance Committee to hire SPI to serve as its consultant in this process. SPI has been serving MRWPCA and the District on the Groundwater Replenishment project and served the Authority for its comparison of desalination projects late last year. SPI would be hired by the Authority and one-third of its cost would be reimbursed by the District and one-third by the County.

Alex Wesner of SPI entered a Non-Disclosure Agreement (NDA) with Cal-Am on behalf of SPI and has had access to all of the background documents, attended the interviews, and will participate in negotiations with the preferred contractor. Jason Burnett and Dave Stoldt have also entered into a NDA with Cal-Am as individuals, but will not attend meetings; instead, they will consult privately with SPI to be updated as the process proceeds. This is in order to be prepared to provide guidance to the Governance Committee members in an appropriate manner.

RECOMMENDATION: The General Manager recommends that the Board of Directors approve the hiring of SPI by the Authority to serve as consultant for the Governance Committee, with services not to exceed $36,000 for which the District will reimburse one-third of the cost which shall not exceed $12,000.

EXHIBIT

None

U:\staff\Boardpacket\2013\20131118\ConsentClndr\02\item2.docx

November 18, 2013

Budgeted:

Yes

General Counsel Approval: N/A

Committee Recommendation: The Water Supply Planning Committee reviewed this item on November 5, 2013 and voted 3 to 0 to recommend the Board approve. The Administrative Committee reviewed this item on November 12, 2013 and voted 3 to 0 to recommend the Board approve.