Item 5

ITEM:		CONSENT CALENDAR

5.	CONSIDER FUNDING PURCHASE AND RESETABLISHMENT OF PURE WATER MONTEREY PROJECT PILOT PLANT

Meeting Date:			February 18, 2015	Budgeted:	Yes

From:			David J. Stoldt, General Manager	Program/	Groundwater Replenishment Project
				Line Item No.:	1-5-1

Prepared By:			David J. Stoldt	Cost Estimate:	Ongoing; Not to exceed $300,000

General Counsel Approval: N/A
Committee Recommendation: The Water Supply Planning Committee reviewed this item on February 10, 2015 and recommended approval 3-0. The Administrative Committee reviewed this item on February 10, 2015 and recommended approval 3-0.
CEQA Compliance: N/A

SUMMARY: At its January meeting the District Board approved a revised 2014-15 budget for the Pure Water Monterey groundwater replenishment project (GWR.) At that time, the District was apprised that it would need to fund increased costs of $788,000 from reserves, to be repaid from future receipt of the Water Supply Charge. Last week, during mid-year budget review planning, staff determined that the District’s overall FY 2014-15 budget would have approximately $1 million in savings and deferrals, resulting in a budget surplus for the year, negating the need for expenditure of reserves for Pure Water Monterey (see Agenda item 16.)

This creates the opportunity to restore and reestablish the GWR pilot plant at the Regional Treatment Plant location. The plant is needed and its loss over the past 6 months has been a set-back to the project. Reestablishing the pilot was going to be part of the FY 2015-16 budget, but the project is best served by installing the components as soon as possible. The three primary benefits of reestablishing the plant are (a) having the ability to continue to assess water quality of source waters and blends of source water as a testing laboratory; (b) the facility serves as a focal point for public outreach and tours for the public, industry personnel, and regulatory staff; and (c) other agencies (e.g. Santa Cruz or Soquel Creek Water District) could lease it for testing of their potential project sources.

RECOMMENDATION: The General Manager recommends that the Board of Directors approve the addition of not to exceed $300,000 for the District’s share of acquisition and reinstallation of Pure Water Monterey pilot plant facilities.

DISCUSSION: The estimated cost of the facilities is $395,000. The District’s share would be $296,250. Of this amount, approximately half will be funded from current reserves to be repaid from future receipt of the Water Supply Charge.

EXHIBIT

None

U:\staff\Boardpacket\2015\20150218\ConsentClndr\05\Item 5.docx

February 18, 2015

Budgeted:

Yes

General Counsel Approval: N/A

Committee Recommendation: The Water Supply Planning Committee reviewed this item on February 10, 2015 and recommended approval 3-0. The Administrative Committee reviewed this item on February 10, 2015 and recommended approval 3-0.