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ITEM: |
ACTION ITEM |
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16. |
Consider Authorizing the General Manager to Approve Additional
Funding for Raftelis in an Amount Not-To-Exceed $20,000 |
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Meeting
Date: |
August
21, 2023 |
Budgeted: |
Yes |
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From: |
David
J. Stoldt, |
Program/ |
XX-01-786200 |
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General
Manager |
Line-Item
No.: |
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Prepared
By: |
David
J. Stoldt |
Cost
Estimate: |
$20,000 |
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General
Counsel Review: N/A |
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Committee
Recommendation: N/A |
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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:
At its April 2023 meeting, the Board authorized expenditure of up to
$60,000 for an update to the financial feasibility for the acquisition of the
Monterey Water System (Measure J) by Raftelis Financial
Consultants, Inc. (Raftelis), based on the appraisal
value contained in the April 3rd offer letter to Cal-Am. This was in
addition to the previous authorization of $160,000 for the actual appraisal of
the Monterey Water System, released publicly in April 2023. At this time, both
deliverables have been fulfilled. However, billings have exceeded authorization
by $2,250 and there may be some minor work, as needed, that we might seek from Raftelis in connection with findings or evidence in support
of a resolution of necessity, should the Board want to go in that direction.
Hence, the Board is asked to authorize the General Manager to expend up to $20,000
on Raftelis activities related to the Monterey Water
System acquisition, on an “as needed” basis.
The Fiscal Year 2023-24 budget
included $600,000 for “Phase 4” Measure J expenditures, which will be the
source of funds for this purpose. “Phase 4” is meant to encompass the
development of findings and evidence in support of a resolution of necessity, a
hearing of public necessity, and the filing of a condemnation action.
Previous phases were as follows:
Phase 1: Financial feasibility
evaluation
Phase 2: LAFCO application and
review
Phase 3: Appraisal and offer to purchase
RECOMMENDATION: The General Manager recommends that the Board
authorize the General Manager to expend up to $20,000 on Raftelis
Financial Consultants, Inc. for Monterey Water System acquisition activities on
an “as needed” basis during the Phase 4 activities.
EXHIBITS
None
U:\staff\Boardpacket\2023\20230821\Action Items\16\Item-16.docx