ITEM:		CONSENT CALENDAR
6.	CONSIDER FUNDING ADDITIONAL EXPENDITURES FOR ENVIRONMENTAL MONITORING AND COMPLIANCE SERVICES FOR MONTEREY PIPELINE AND HILBY PUMP STATION PROJECTS
Meeting Date:			December 12, 2016	Budgeted:	No
From:			David J. Stoldt,	Program/	Water Supply Projects
			General Manager	Line Item:	N/A
Prepared By:			Maureen Hamilton	Cost Estimate:	NTE $80,000
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on December 6, 2016 and recommended approval.
CEQA Compliance: N/A

SUMMARY: Staff proposes to contract with Denise Duffy & Associates, Inc. (DD&A) for Mitigation Monitoring and Reporting Program (MMRP) monitoring and compliance services for the Monterey Pipeline and Hilby Pump Station projects (Projects) construction and post-construction work. DD&A will represent MPWMD in reviewing, auditing, and documenting findings regarding California-American Water Company (CAW) compliance with the MMRP. Approval of funding for the contract will enable continued progress in environmental impact mitigation monitoring and reporting.

The recommendation is to authorize MPWMD funds not-to-exceed (NTE) $80,000 for this purpose. Funds will be transferred from Budget Item 1-9-1, the Cal-Am Desal Project, which has been deferred to the next fiscal year. A mid-year budget adjustment plan will be brought to the Board in January.

Attached as an Exhibit is the DD&A work proposal and detailed cost estimate.

RECOMMENDATION: Staff recommends the Board authorize the General Manager to fund $80,000 for an amended DD&A agreement extending the scope of environmental mitigation compliance monitoring services for the Monterey Pipeline and Hilby Pump Station projects through post-construction.

BACKGROUND: CAW is constructing the Monterey Pipeline that will allow delivery of water from the Pure Water Monterey (PWM) Advanced Water Treatment Plant to CAW customers on the Monterey Peninsula. CAW will also implement a project to upgrade the existing Hilby Avenue Pump Station allowing its use to pressurize/convey potable water within the CAW system to assist the existing ASR facilities during injection. The Pump Station and Pipeline would serve the ASR Project and improve the average yield by about 700 acre-feet per year.

MPWMD approved CAW’s application to Amend the Water Distribution System (WDS) Permit #M16-01-L3 to include the Hilby Avenue Pump Station and Monterey Pipeline. As a condition of the WDS Permit, MPWMD required compliance with all mitigation measures required in the Environmental Impact Report (EIR) MMRP for the construction of the Hilby Avenue Pump Station and Monterey Pipeline.

MPWMD does not have the staff to conduct environmental mitigation compliance monitoring work required for the Monterey Pipeline and Hilby Pump Station projects. DD&A has extensive experience providing similar services in connection with a number of infrastructure related projects. In addition, DD&A prepared the underlying environmental documentation for the PWM project and the Addendum for the Monterey Pipeline and Hilby Avenue Pump Station projects. Thus, DD&A is uniquely qualified to assist MPWMD with the mitigation monitoring and reporting requirements needed for this project.

Because the Projects benefit MPWMD, MRWPCA, and CAW; the cost of environmental compliance monitoring and reporting will be shared by the three organizations. MPWMD will seek reimbursement from CAW for one-third of the estimated $80,000, or $26,667. MPWMD will also seek reimbursement from MRWPCA for one-third of the estimated $80,000 when MRWPCA has received Clean Water State Revolving Fund (SRF) monies; until that time MPWMD will pay 75% of MRWPCA’s one-third cost sharing responsibility. MPWMD will seek reimbursement of its contribution to MRWPCA’s cost sharing portion after MRWPCA has received SRF monies.

EXHIBIT

6-A Proposal for Environmental Monitoring and Compliance Services for the Monterey Pipeline and Hilby Pump Station Projects from DD&A.

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