ADMINISTRATIVE COMMITTEE MEETING
2.	CONSIDER EXPENDITURE OF FUNDS TO CONTRACT FOR PROFESSIONAL SERVICES TO EVALUATE ECONOMIC AND COST ALLOCATION ISSUES ASSOCIATED WITH THE PROPOSED COASTAL WATER AND REGIONAL WATER SUPPLY PROJECTS
Meeting Date:		June 8, 2009	Budgeted:	No
From:		Darby Fuerst,	Program/	Water Supply Projects
		General Manager	Line Item No.:	N/A
Prepared By:		Andrew M. Bell, District Engineer	Cost Estimate:	To be discussed at Ad. Comm. meeting
General Counsel Approval: N/A
CEQA Compliance: N/A

SUMMARY: As a party in the California Public Utilities Commission (CPUC) proceeding for California American Water’s application for the Coastal Water Project (CWP), the District is preparing testimony for formal hearings on the scope and costs of the CWP and water supply alternatives identified in the Draft EIR for the CWP. Many of the issues identified by the CPUC Administrative Law Judge reflect not only the costs of the project, but also the area to be served and financing of the project. Staff proposes that the District retain a consultant to be the District’s expert witness on economic and cost allocation issues.

RECOMMENDATION: The Board should receive a report by staff including a recommendation to retain a financial consultant to address economic and cost allocation issues in the CPUC proceeding for the Coastal Water Project. Staff recommends that the Board authorize the General Manager to enter into a professional services agreement with (name to be provided at the Administrative Committee meeting) for professional services described in (exhibit containing Scope of Services to be provided) at a cost not to exceed (amount to be provided).

BACKGROUND: On March 26, 2009, the CPUC issued the scoping memo attached as Exhibit 2-B, which states issues to be addressed in formal hearings on Cal-Am’s Coastal Water Project. For more convenient identification in Exhibit 2-B, staff has circled and numbered the items identified by the Administrative Law Judge and the Assigned Commissioner for the proceeding. Circled items 1, 3, 4, 5, 7, 12, 17, and 19 include issues the financial consultant will assist the District in addressing. District Counsel David Laredo is coordinating staff’s efforts in this proceeding.

EXHIBITS

2-A Consultant Scope of Services (to be provided at Administrative Committee meeting)

2-B Joint Scoping Memo Ruling of Assigned Commissioner and Administrative Law Judge Setting Forth Scope and Schedule for Phase 2 (A.04-09-019), March 26, 2009

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