ITEM:

GENERAL MANAGER’S REPORT

 

6.

DISCUSSION ON PURE WATER MONTEREY LEGAL EXPENSES

 

Meeting Date:
March 20, 2023

Budgeted: 

N/A

 

From:

David J. Stoldt

Program/

 

 

General Manager

Line Item No.:    

N/A

 

Prepared By:

David J. Stoldt

Cost Estimate:

N/A

 

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:  On December 1, 2021 the District signed Amendment 6 to the Pure Water Monterey (PWM) Cost Sharing Agreement for pre-construction costs related to the PWM Expansion project. At that time the District Board authorized $1.2 million of expenditures. The District’s FY 2021-22 mid-year budget carried PWM Expansion costs of $850,000 and the FY 2022-23 budget included $1,000,000 for a total of $1.85 million budgeted.  However, to date only $729,594 has been expended by the District.

 

The budget for PWM Expansion, as of March 2022, was $1.5 million as shown below:

 

Work Description

Entity

Budget

IW Phase 4 Deep Injection Wells Exploratory Borings1

Specialty Construction Inc.

$301,500

DIW-6 Engineering Design1

Kennedy Jenks/Todd Groundwater

$52,960

DIW-6 CEQA Addendum to SEIR1

M1W staff/DD&A

$29,500

PWM and Water Purchase Agreement Legal Support

Perkins Coie

$226,000

Expanded PWM Feasibility Study (for USBR grant)

Carollo Engineers

$85,000

Engineering Design of IW Phase 4 Trenchless Pipeline

Kennedy Jenks/Bennett/Pacific Crest

$217,268

PM, SCADA Integration & Fiscal Asset Management Plan

GHD

$347,194

Compliance, Permits & Environmental Documentation

Larry Walker Associates/Others

$97,125

Injection Well Facilities Property Appraisal

Stephen Brown

$12,500

Procurement Documents & Construction Legal Support

Best Best & Krieger

$50,000

Staff Implementation Activities

M1W Staff

$80,000

 

FY 21/22 Encumbrances Total

$1,499,047

 

Since that time, in August 2022 the Monterey One Water (M1W) board authorized an increase in the budget for the Perkins Coie law firm of $285,000 due to the increased costs related to the California Public Utilities Commission (CPUC) proceeding regarding the PWM Expansion Amended and Restated Water Purchase Agreement. In September 2022 M1W authorized an additional $115,000 to Best Best and Krieger for legal expenses related to procurement for PWM Expansion. Finally, in January 2023 M1W authorized another $119,900 to Perkins Coie for expected work related to the CPUC proceedings and $64,975 to Larry Walker Associates for regulatory related services.

 

The total revised budget to date is therefore $2,083,922.

 

Under Amendment 6 to the Cost Sharing Agreement, the District will be responsible for 75% or $1,562,941.

 

At its March 20, 2023 meeting, the Board will be asked to increase the authorized expenditures under Amendment 6 of the Cost Sharing Agreement to $1.8 million to cover increases known to date and potential future requirements.

 

Specifically as it pertains to legal expenses on PWM Expansion, the following best explains budget and expenditures to date by the District:

 

Law Firm

Budget

Expended

Remaining

Perkins Coie

$630,900

$206,828

$424,072

Best Best & Krieger

$165,000

$6,828

$158,172

   TOTAL

795,900

$213,656

$582,244

 

During the Board meeting the General Manager will discuss these expenditures with the Board.

 

EXHIBIT

None

 

 

 

 

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