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ITEM: |
ACTION ITEM |
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13. |
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Meeting Date: |
December 14, 2020 |
Budgeted: |
N/A |
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From: |
David J. Stoldt, |
Program/ |
N/A |
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General Manager |
Line Item No.: |
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Prepared By: |
David J. Stoldt |
Cost Estimate: |
N/A |
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General Counsel Approval: N/A |
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Committee Recommendation: Administrative Committee unanimously recommended approval at its December 8, 2020 meeting. |
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CEQA
Compliance: This action does not constitute a project
as defined by the California Environmental Quality Act Guidelines Section
15378. |
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SUMMARY: In May 2013, the Monterey One Water (M1W) and
Monterey Peninsula Water Management District (MPWMD) entered into a Cost
Sharing Agreement (Agreement) to fund the Pure Water Monterey (PWM) Project
planning and development costs, also referred to as pre-construction costs.
Under the Agreement, beginning with Fiscal Year 2013-14, M1W agreed to
fund 25% of all costs listed in Section II (A)(1,2) of the Agreement, while the
MPWMD agreed to pay for 75% of the specified costs. Since the initial
Agreement, the parties have entered into 3 amendments to the Agreement.
To ensure adequate long-term recharge capacity for PWM, on August 31,
2020 the M1W Board approved proceeding with a third deep well (DIW-3) and
supported a fourth (DIW-4) if the MPWMD participated financially. The additional capacity helps ensure that M1W
and MPWMD do not breach the Water Purchase Agreement delivery guarantees,
provides operational flexibility, and creates redundancy.
Funding for commissioning and repair of the existing injection wells and
the addition of DIW-3, is being expedited as a $6.1million amendment to the
existing PWM Clean Water State Revolving Fund (SRF) loan agreement. DIW-4 is not budgeted or included within the
SRF loan amendment. This proposed Fourth
Amendment to the Agreement is for MPWMD to fund the construction and associated
other costs for DIW-4 up to the approved amount.
At their September 21, 2020 Board meeting, MPWMD authorized $4,070,000 to
fund DIW-4. Based on their
authorization, M1W amended the Injection Well Phase 3 bid package to include
DIW-4. The contract awarded by the M1W
Board on October 26, 2020 included both DIW-3 and DIW-4.
The attached Amendment 4 (Exhibit 13-A),
incorporates changes to the Agreement to accommodate the additional expenditure
of funds.
RECOMMENDATION: The
General Manager recommends the Board approve Amendment 4 to the Cost Sharing
Agreement with M1W for the Pure Water Monterey Project expansion and execute
per agreement with M1W and at the direction of the CFO and General Manager.
EXHIBIT
13-A Amendment 4 – M1W-MPWMD GWR Project Cost
Sharing Agreement
U:\staff\Boardpacket\2020\20201214\ActionItems\13\Item-13.docx