ITEM:		ACTION ITEM
15.	CONSIDER APPROVAL OF AMENDMENT NO. 7 TO THE COST SHARING AGREEMENT WITH MONTEREY ONE WATER FOR PURE WATER MONTEREY EXPANSION
Meeting Date:			November 14, 2022	Budgeted: n/a
From:			David J. Stoldt,	Program/
			General Manager	Line Item No.:
Prepared By:			David J. Stoldt	Cost Estimate:
General Counsel Approval: N/A
Committee Recommendation: None
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.

SUMMARY: In May 2013, 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 award of $19.6 million in the form of a federal Bureau of Reclamation grant, the attached Amendment 7 (Exhibit 15-A), incorporates changes to the Agreement to reimburse the District $1.5 million for prior expenditures. The District budgeted the $1.5 million for the in its FY 2022-23 budget.

Cost sharing for pre-construction costs of the Pure Water Monterey Expansion, as covered in Amendment 6 executed in December 2021, remains intact.

RECOMMENDATION: The General Manager recommends the Board approve Amendment 7 to the Cost Sharing Agreement with M1W for the Pure Water Monterey Project and execute per agreement with M1W and at the direction of the CFO and General Manager, subject to any non-substantive edits to the Agreement as a result of M1W subsequent adoption of the Amendment.

EXHIBIT

15-A Amendment 7 to M1W-MPWMD GWR Project Cost Sharing Agreement

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