ADMINISTRATIVE COMMITTEE
2.	Consider Authorization to Enter into Reimbursement Agreement with City of Seaside for Appraisal at Phase 1 Santa Margarita ASR Site
Meeting Date:		October 14, 2013	Budgeted:	Yes
From:		David J. Stoldt,	Program/	1-2-1
		General Manager	Line Item No.:	A. 1.
Prepared By:		Joe Oliver	Cost Estimate:	$4,350
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on October 14, 2013 and recommended ___________.
CEQA Compliance: N/A

SUMMARY: The Board will consider authorization to enter into a reimbursement agreement with the City of Seaside (Exhibit 2-A) for an appraisal of the Phase 1 Santa Margarita Aquifer Storage and Recovery (ASR) site, located on former Fort Ord lands near General Jim Moore Boulevard and Eucalyptus Road in Seaside. The appraisal would be conducted at the request of the City as part of their review of the Monterey Peninsula Water Management District (MPWMD or District) request to expand the Phase 1 site property. The 0.88 acre expansion is for enlargement of the existing percolation basin to accommodate the required backflushing of the existing ASR wells at both the Phase 1 and 2 sites, and to facilitate placement of additional underground pipelines to and from the new Santa Margarita facility building. These pipelines will enable water produced from offsite ASR wells to be treated to drinking water standards at the facility building prior to transmission into the California American (Cal-Am) system for delivery to Monterey Peninsula water users.

RECOMMENDATION: District staff recommends authorization for expenditure of budgeted funds up to $4,350, which includes the $2,850 quoted cost from the City’s appraiser, plus an additional $1,500 for potential follow-up work by the City and/or MPWMD staff to complete the needed documentation for the appraisal process. Staff will proceed to finalize the reimbursement agreement (Exhibit 2-A) with its attachments, and execute the document if this item is adopted with the Consent Calendar.

BACKGROUND: The District secured an easement for the first ASR well at the Phase 1 ASR site in 2000 from the US Army, and amended the easement in 2007 for the second ASR well. The existing easement area totals 1.09 acres. Subsequently in 2007, the District and Cal-Am began discussions of the need for pipelines to the Phase 1 ASR facility building in order to allow water treatment of expanded ASR facilities that were being considered at that time as part of Cal-Am’s Coastal Water Project. Accordingly, in 2009 the District designed the Phase 1 facility building to have the capacity for treatment from other offsite ASR wells, while subsequently beginning negotiations with the City of Seaside and Fort Ord Reuse Authority (FORA) for additional land area needed for pipeline placement, as the existing easement area is not wide enough near the entrance to place the needed pipelines. In order for FORA to issue a Right of Entry for placement of the pipelines adjacent to the existing easement, FORA needs approval from the City, as these lands will ultimately be transferred to the City once munitions cleanup operations are completed in this area of former Fort Ord.

The current size of the expansion area requested (0.88 acres) is also intended to allow for expansion of the existing backflush (BF) percolation basin, as it was determined in 2012 that it is not feasible to install a separate BF percolation basin at the Phase 2 ASR site at Seaside Middle School. This is due to the topographic constraints at the Phase 2 site, combined with recently adopted restrictive requirements for compliance with the California Division of the State Architect (DSA) engineering design standards that are applicable to school facilities. Because of the DSA issues, and the fact that routine backflushing operations are critical for successful ASR operations, the District conducted an evaluation of alternative sites for additional BF basin capacity. Discussion with the City indicated that other offsite options would not be as desirable to the City as expanding the existing Phase 1 site BF basin. Accordingly, expansion of the existing BF basin, although not ideal given the need to design around other existing site facilities, is being planned to fit within the requested easement expansion area.

IMPACT ON STAFF/RESOURCES: Planning, design, construction and operation of the ASR Project facilities are ongoing significant staff commitments, as reflected in the District’s Strategic Plan and annual budgeting. Funds for this work are available in the MPWMD FY 2013-14 budget under Line Item 1-2-1 A (Water Project 1), adopted June 17, 2013 (Item 23).

EXHIBIT

2-A Draft Deposit and Reimbursement Agreement

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