ITEM:		CONSENT CALENDAR
6.	CONSIDER APPROVAL OF AMENDMENT 3 TO THE COST SHARING AGREEMENT WITH THE MONTEREY ONE WATER FOR THE PURE WATER MONTEREY PROJECT EXPANSION
Meeting Date:			April 15, 2019	Budgeted:	N/A
From:			David J. Stoldt	Program/
			General Manager	Line Item No.:	N/A
Prepared By:			David Stoldt	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: Action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.

SUMMARY: In May 2013, the District entered into a Cost-Sharing Agreement with the Monterey One Water (M1W) to fund the Groundwater Replenishment (GWR) Project planning and development costs. Beginning with Fiscal Year 2013-14, M1W agreed to fund 25% of all costs while MPWMD agreed to pay for 75% of the specified costs. In July 2016, the District entered into Amendment 1 to the Cost Sharing Agreement. In November 2017, the District and M1W entered into Amendment 2 in order to better define reimbursement amounts, as well as to fund some additional ongoing costs that would not be reimbursed by the State Revolving Fund Loan. Included in those costs was a preliminary look at design and feasibility of expansion of Pure Water Monterey. At its March 18, 2019 Board meeting the District approved sharing costs on an additional $1 million of environmental, permitting, and design of expansion of the Pure Water Monterey project.

The attached Amendment 3 (Exhibit 6-A), incorporates changes to the Agreement to accommodate the additional expenditure of funds.

RECOMMENDATION: District staff recommends the Board approve either Amendment 3 to the Cost Sharing Agreement with M1W for the Pure Water Monterey Project expansion and execute per agreement with MRWPCA and at the direction of the CFO and General Manager.

EXHIBIT

6-A Amendment 3 – M1W-MPWMD GWR Project Cost Sharing Agreement

U:\staff\Boardpacket\2019\20190415\ConsentClndr\06\Item-6.docx