ADMINISTRATIVE COMMITTEE
4.	CONSIDER RECOMMENDING AUTHORIZATION OF EXPENDITURE OF FUNDS NOT TO EXCEED $120,000 FOR ADDITIONAL LEGAL SERVICES BY RUTAN + TUCKER RELATED TO THE ACQUISITION OF THE MONTEREY WATER SYSTEM (MEASURE J)
Meeting Date:		September 13, 2021	Budgeted:	No
From:		David J. Stoldt,	Program/	Services & Supplies
		General Manager	Line Item No.:	Professional Fees
Prepared By:		David J. Stoldt	Cost Estimate:	$120,000
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on September 13, 2021 and recommended __________________.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

SUMMARY: Rutan + Tucker has been the District’s eminent domain attorneys working on the acquisition of the California American Water Company (Cal-Am) Monterey Water System since December 2018. Delays and multiple Cal-Am letters in the LAFCO process, have resulted more review and work product by the firm. There is $34,900 remaining in their budget and July and August invoices have not been reflected.

The potential acquisition is just now readying itself for finalizing the “findings” of public necessity and, if the District Board decides it wishes to move forward, a bonafide offer to purchase, a District Resolution of Necessity, and a condemnation action – all requiring legal acumen. It is recommended that Rutan + Tucker’s budget be increased by $120,000 to prepare for such activities.

RECOMMENDATION: The Administrative Committee should recommend that the Board authorize expenditure of funds not to exceed $120,000 for additional legal services by Rutan + Tucker related to the acquisition of the Monterey Water System (Measure J).

IMPACT TO DISTRICT RESOURCES: Such Measure J related expenses have not been budgeted and will come from District reserves.

EXHIBITS

None

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