ADMINISTRATIVE COMMITTEE

3.	AUTHORIZE EXPENDITURE OF FUNDS FOR REVIEW OF CALIFORNIA AMERICAN DESIGN BUILD PROCUREMENT PROCESS
Meeting Date:		November 12, 2013	Budgeted:	Yes
From:		David J. Stoldt	Program/	Cal-Am Desal Project
		General Manager	Line Item No.: 1-9-1
Prepared By:		David J. Stoldt	Cost Estimate:	Not to exceed $12,000
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: District Counsel, County Counsel, and Counsel for the Authority (MPRWA) have conferred several times in the past two weeks with Anthony Cerasuolo and Lori Girard of Cal-Am to finalize plans with respect to the design-build (DB) contracting process. 

Cal-Am anticipates it will select the preferred desal DB proposer on or about November 15th.  The selection process contemplates that a consultant (on behalf of the three public entity members of the Governance Committee) shall participate in the evaluation effort.   The current schedule contemplates that on or about Friday December 6^th Cal-Am will circulate to the Governance Committee a document to explain actions it has taken to date, as well as 5 Proposals (from the short list firms), Cal-Am’s evaluative report, and the modified form of DB contract.  This material is to be reviewed by the Governance Committee on December 11th. 

Cal-Am plans to go to its Board on December 13^th for approval and targets December 20^th as the date for the Contract to be signed.

The Governance Committee seeks to hire SPI to serve as its consultant in this process.  SPI has been serving MRWPCA and the District on the Groundwater Replenishment project and served the Authority for its comparison of desalination projects late last year. SPI would be hired by the Authority and one-third of its cost would be reimbursed by the District and one-third by the County.

Alex Wesner of SPI will enter a Non-Disclosure Agreement (NDA) with Cal-Am on behalf of SPI and have access to all of the background documents, attend the interviews, and participate in negotiations with the preferred contractor. Jason Burnett and Dave Stoldt will also enter into a NDA with Cal-Am as individuals, but will not attend meetings; instead, they will consult privately with SPI to be updated as the process proceeds. This is in order to be prepared to provide guidance to the Governance Committee members in an appropriate manner.

RECOMMENDATION: The General Manager recommends that the Administrative Committee recommend the Board of Directors approve the hiring of SPI by the Authority to serve as consultant for the Governance Committee, with services not to exceed $36,000 for which the District will reimburse one-third of the cost which shall not exceed $12,000.

EXHIBIT

None

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