ITEM:		CONSENT CALENDAR
4.	CONSIDER AUTHORIZATION OF REIMBURSEMENT AGREEMENT WITH FORT ORD REUSE AUTHORITY TO FUND ASSISTANCE WITH AQUIFER STORAGE AND RECOVERY SITE EXPANSION
Meeting Date:			March 17, 2014	Budgeted:	Yes
From:			David J. Stoldt,	Program/	Water Supply
			General Manager	Line Item No.:	1-2-1 B. 1
Prepared By:			Joe Oliver	Cost Estimate:	$24,000
General Counsel Review: pending
Committee Recommendation: The Administrative Committee considered this item on March 10, 2014 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 expansion of 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. The draft FORA reimbursement agreement is included as Exhibit 4-A. The agreement will allow FORA staff and its contractors to process the approvals needed for a minor site expansion to adjacent property under the jurisdiction of FORA. The property adjacent to the ASR site does not currently have all the necessary clearances for Unexploded Ordnance (UXO) and FORA is required to carry out this work prior to certain uses on the property. The purpose for the expansion is to facilitate installation of permanent underground pipelines to the ASR site Facility Building and allow for expansion of the onsite backflush basin. In addition, the site expansion space will be utilized for a vehicle driveway that is needed for truck deliveries to the Facility Building.

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 Santa Margarita ASR site, if this item is adopted.

BACKGROUND: The MPWMD has been developing the Santa Margarita ASR 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 Water Year 2013), approximately 4,770 acre-feet (AF) of water have been diverted from Cal-Am’s Carmel River production sources for injection into the Seaside Groundwater Basin. Of this amount, approximately 4,050 AF have been diverted for injection at the Santa Margarita ASR site. When the Santa Margarita site was originally planned and developed by MPWMD, it was intended 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 to locate additional backflush basin capacity at this site for the two ASR wells at the nearby Seaside Middle School or Phase 2 ASR site. Ultimately, it is now planned that the treatment capacity of the Facility Building at the Santa Margarita ASR site will also be sized for future planned operations contemplated as part of the ASR component of the Monterey Peninsula Water Supply Project. These requirements have necessitated that an additional small piece of adjacent property be added to the site to accommodate these currently planned uses at the site. Accordingly, MPWMD, FORA and the City of Seaside have been working closely on the land use approvals needed to acquire the additional strip of land. The next step in this process is to enter into the reimbursement agreement with FORA. Concurrently, MPWMD is working with the City of Seaside to negotiate the terms for use of this additional land and to secure a grading permit under their “Ordnance Ordinance” to allow the excavation work for the ground disturbing work to proceed. The Board will be apprised of additional requirements as this process 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. Funding for this item is included in the District’s Fiscal Year 2013-14 budget.

EXHIBIT

4-A Draft “Agreement for Professional Services” with FORA

U:\staff\Boardpacket\2014\20140317\ConsentClndr\04\item4.docx