ITEM:		ACTION ITEM
14.	APPROVE AUTHORIZATION OF FUNDS FOR DISTRICT COUNSEL’S RETENTION OF EXPERTS IN SUPPORT OF RULE 19.8 ANALYSIS
Meeting Date:			February 21, 2019	Budgeted:	No
From:			David J. Stoldt	Program/
			General Manager	Line Item No.: TBD
Prepared By:			David J. Stoldt	Cost Estimate:	$485,000
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: On February 13, 2019 District Counsel received statements of qualifications from firms to provide expert services in support of possible acquisition and public ownership of Monterey Peninsula Water Systems related to the following three roles: Valuation and Cost of Service Study Consultant, Investor-owned Utility Consultant, and Investment Banker. The Investor-owned Utility Consultant and Investment Banker were intended to be sole-sourced professional services due to their unique and special nature. The Valuation and Cost of Service Study Consultant was intended to be competitively awarded based on several expected respondents. However, one firm withdrew, citing a conflict of interest. A replacement firm was sought based on providing similar past services. However, the latter firm indicated it no longer has the requisite expertise. Recommended firms, by role and cost estimates, are shown below:

Expertise of Consultant	Estimate plus 10% Contingency (Rounded)
Valuation and Cost of Service Study Consultant	$355,000
Investor-owned Utility Consultant	$100,000
Investment Banker	$30,000

RECOMMENDATION: The General Manager recommends the Board of Directors authorize District Counsel to hire the three responsive firms to provide the referenced expert consulting services, and to budget funds from District reserves in amounts not to exceed those shown in the table above.

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