ITEM:

ACTION ITEM

 

16.

CONSIDER APPROVAL OF AMENDMENT 6 TO THE COST SHARING AGREEMENT WITH MONTEREY ONE WATER FOR PURE WATER MONTEREY EXPANSION

 

Meeting Date:
November 15, 2020

Budgeted:

Yes

 

From:

David J. Stoldt,

General Manager

Program/

1-5-1 G PWM Expansion

 

 

Line Item No.:    

35-01-786014

 

Prepared By:

David J. Stoldt

Cost Estimate:

 $1.2 million (see below) 

 

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:  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 5 amendments to the Agreement.

 

With the recent agreement over a proposed Amended and Restated Water Purchase Agreement for Pure Water Monterey Expansion, the attached Amendment 6 (Exhibit 16-A), incorporates changes to the Agreement to accommodate the additional expenditure of funds for expansion.  The District budgeted $1.2 million for the expansion in its FY 2021-22 budget.  It is likely that additional monies will need to be allotted to the project at the mid-year budget adjustment, sourced from reserves to be repaid by the Water Supply Charge per Board policy.

 

RECOMMENDATION:  The General Manager recommends the Board approve Amendment 6 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

16-A    Amendment 6 to M1W-MPWMD GWR Project Cost Sharing Agreement

 

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