ITEM:		CONSENT CALENDAR
6.	CONSIDER AUTHORIZING GENERAL MANAGER TO ENTER INTO CONTRACT FOR CEQA SERVICES RELATED TO MEASURE J PHASE 2
Meeting Date:			March 16, 2020	Budgeted:	No
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Dave Stoldt	Cost Estimate:	$136,500
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee reviewed this item on March 10, 2020 and took no action.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.

SUMMARY: At its December 2019 meeting, the Board authorized additional consulting work related to Measure J/Rule 19.8. One area of work includes California Environmental Quality Act (CEQA) compliance for the possible acquisition of Cal-Am’s Monterey Main water system assets, as well as the CEQA requirements for the Local Agency Formation Commission (LAFCO) process.

A request for qualifications (RFQ) was sent to three pre-qualified consulting firms on February 21, 2020. The firms are Denise Duffy & Associates, Rincon Consultants, and EMC Planning Group. Statements of Qualifications were received from Rincon and EMC. The approach, cost, and experience between the two proposers were uniquely different, as summarized under “DISCUSSION” below. This prompted the General Manager and District Counsel to consult about the differences and what approach was best suited to the Measure J process, resulting in the recommendation below.

RECOMMENDATION: Staff recommends the Board hire Rincon Consultants, Inc. to provide CEQA services in support of the acquisition of the Cal-Am Monterey Main water system and the LAFCO process, and authorize the General Manager to enter into a contract not exceeding $136,500 inclusive of out-of-pocket expenses and contingency of approximately 5%.

DISCUSSION: Both consultants agreed that the acquisition of the Cal-Am assets is likely not a “project” under CEQA, but Rincon recommended a more robust full Environmental Impact Report (EIR) as the most legally defensible option, versus EMC’s recommendation of a negative declaration. Rincon’s approach to circulating an initial study alongside the notice of preparation was also more conservative.

Both firms are well qualified for this type of work. However, Rincon has provided CEQA services for two recent acquisitions of investor-owned water utilities, the City of Claremont which did not proceed past a bench trial and the City of Apple Valley which is currently in its bench trial for which the Rincon Principal-In-Charge is presently providing expert testimony. This level of specific experience is likely what led Rincon to identify an additional aspect of the CEQA analysis that could construe potential rate decreases, and potential increases in water use, under public ownership as a “project” potentially requiring mitigation under CEQA. This issue was not an aspect of the Request for Qualifications, but had previously been identified by the District’s eminent domain attorneys as a potential future issue. The General Manager and District Counsel found the specific experience of Rincon to be more beneficial to the task at hand

EMC provided a budget of $84,025 with optional tasks of $15,000. Rincon’s budget is $129,928 and assumes no more than 15 substantive comment letters on the draft EIR. Despite the difference in cost, the recommendation is to contract with Rincon, based on its recommended approach and its experience.

EXHIBIT

6-A Excerpts of the Request for Qualifications

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