ITEM:		ACTION ITEM
15.	Consider APPROVAL OF CONTRACT WITH RINCON CONSULTANTS FOR environmental consulting services for ADDENDUM TO EIR FOR future DISTRICT water allocation PROCESS
Meeting Date:			August 21, 2023	Budgeted:	Yes
From:			David J. Stoldt,	Program/	35-01-786040
			General Manager	Line-Item No.:
Prepared By:			David J. Stoldt	Cost Estimate:	$24,700
General Counsel Review: 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: With the signing of the Amended and Restated Water Purchase Agreement for the Pure Water Monterey (PWM) Project, the construction of the PWM Expansion is expected to begin in August 2023. The PWM Expansion is expected to bring the permanent replacement water supply that will enable the lifting of the cease-and-desist order (CDO) and the moratorium on the setting of new meters, if Cal-Am, the Monterey Peninsula Water Management District (District or MPWMD), and the State Water Board all cooperate.

The new supply over and above existing demand will be allocated to local jurisdictions through a process led by the District, involving first the Technical Advisory Committee, and then ultimately the Policy Advisory Committee.

In May 2023, the Board authorized Rincon Consultants Inc. (Rincon) to interview District staff to better understand what the Allocation Process involves, perform a literature review of Environmental Impact Reports (EIRs), Supplemental EIRs, general plans, etc. for water projects and future growth and then advise the District through a technical memorandum on the appropriate environmental action for the Allocation Process. The Technical Memorandum is attached as Exhibit 15-A, hereto.

The Technical Memorandum concluded (a) that the proposed water allocation qualifies as a project under CEQA because it is being undertaken by a public agency (MPWMD) and has the potential for reasonably foreseeable indirect physical changes in the environment, such as facilitating land development through the provision of increased water supplies. In other words, the additional water that would be available to jurisdictions in the District’s service area could facilitate development that would have otherwise been impossible due to lack of water availability; and (b)

the document review determined that the Pure Water Monterey Supplemental EIR has already analyzed the growth-inducing and secondary environmental effects associated with the proposed water allocation, which is, in practice, a continuation of the District’s existing water allocation program. Based on these findings, Rincon recommends preparation of an Addendum. This approach balances efficiency with defensibility and is appropriate given the facts presented herein.

Rincon has provided a proposed scope, timeline, and cost estimate attached as Exhibit 15-B. The total estimate is $24,700. The adopted Fiscal Year 2023-24 budget allocates $100,000 to this project. To date, expenditures have been approximately $21,600.

RECOMMENDATION: The General Manager recommends that the Board approve a contract with Rincon Consultants Inc. in the amount of $24,700, plus a contingency of approximately 10% for a total not to exceed $27,170 for environmental services related to the District Water Allocation Process.

EXHIBITS

15-A Rincon Consultants Technical Memorandum

15-B Rincon Proposed Scope, Timeline, and Cost

U:\staff\Boardpacket\2023\20230821\Action Items\15\Item-15.docx