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ITEM: |
ACTION
ITEMS |
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19. |
CONSIDER
AUTHORIZATION TO INCREASE BUDGET FOR GROUNDWATER REPLENISHMENT PROJECT (GWR) |
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Meeting
Date: |
January 29, 2014 |
Budgeted: |
No |
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From: |
David J.
Stoldt, |
Program/ |
Groundwater Replenishment
Project |
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General
Manager |
Line Item No.: 1-5-1 |
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Prepared
By: |
Suresh
Prasad |
Cost Estimate: |
$1,282,280 (75% of total
budget increase) |
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General Counsel Approval: N/A |
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Committee Recommendation: The Administrative Committee reviewed this item on January 21, 2014 and recommended moving this item to be considered by the Board of Directors. |
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CEQA Compliance: N/A |
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SUMMARY: At its June 17, 2013 meeting, MPWMD Board adopted Fiscal Year (FY) 2013-2014 budget which included $2,717,500 for GWR. This budgeted amount represented 75% of the total GWR expenditure for FY 2013-2014. The other 25% of the project cost is funded by Monterey Regional Water Pollution Control Agency (MRWPCA). Grants are also used to fund a portion of the project.
Based on new estimates from MRWPCA, there is a need to increase the GWR FY 2013-2014 budget by an additional $1,477,714. This increase includes estimates from MRWPCA attached as Exhibit 19-A. This increase also includes outreach costs of $62,500, water rights costs of $90,000, and externalities costs of $80,000 based on MPWMD estimates. The District’s share of this increase based on Cost Sharing Agreement with MRWPCA will be $1,282,280 ($1,108,290 75% of the increased budget plus an additional $173,990 for cost differential between MPWMD and MRWPCA adopted budgets). The funding for this increase will come from Aquifer Storage Recovery Phase I and Alternate Desalination Project. Most of the project costs for these two projects have been deferred to FY 2014-2015. This budget increase will be included in the District’s mid-year budget adjustment slated for February-March Board meeting.
Attached as Exhibit 19-B to
this staff report is Amendment 1 to the Cost Sharing Agreement between MPWMD
and MRWPCA. This proposed Amendment
addresses MPWMD’s concerns about Monterey Peninsula ratepayers paying for
services and benefits to entities outside Cal Am’s
Monterey District. If in the future GWR
facilities funded under the Cost Sharing Agreement provide benefits or services
to entities outside Cal Am’s Service area, MPWMD
would be reimbursed by MRWPCA for such costs.
RECOMMENDATION: District staff recommends that the Board authorize the increase in budget for Groundwater Replenishment Project of $1,282,280 for Fiscal Year 2013-2014 and approve Amendment 1 to the Cost Sharing Agreement. The Administrative Committee reviewed this item on January 21, 2014 and recommended moving this item to be considered by the Board of Directors.
BACKGROUND: The
FY 2013-2014 budget was adopted by MPWMD Board on June 17, 2013 included
$2,717,500 for GWR. Based on new
estimates from MRWPCA, there is a need to increase the FY 2013-2014 GWR by an
additional $1,477,714. The District’s
share of the increased budget will be $1,282,280.
19-A MRWPCA Budget Increase
19-B Amendment 1
U:\staff\Boardpacket\2014\20140129\ActionItems\19\item19.docx