FINANCE AND ADMINISTRATION COMMITTEE
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ITEM:
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ACTION ITEM
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21.
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CONSIDER RENEWAL OF CONTRACT WITH THE FERGUSON GROUP FOR
LEGISLATIVE AND ADMINISTRATIVE SERVICES
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Meeting Date:
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June 12, 2023
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Budgeted:
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N/A
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From:
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David J. Stoldt,
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Program/
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General Manager
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Line Item No.:
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N/A
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Prepared By:
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David J. Stoldt
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Cost Estimate:
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N/A
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General Counsel Review: N/A
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Committee Recommendation: The
Finance and Administration Committee reviewed this item on June 12, 2023 and recommended _________________.
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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: TFG has worked with Monterey Peninsula Water
Management District (District) since 2015 and directly represented the District
since January of 2017. During this time, TFG has worked with the District and
Monterey One Water to build support for the Pure Water Monterey project as a
multi-benefit, regional solution deserving of federal support that will serve
as a model for other parts of California and the nation. TFG also worked with
the District to advance the District’s interests on a
wide variety of other projects and issues. The General Manager believes the
opportunities for federal assistance to advance the District’s
priorities remain great, and believes TFG is best positioned to continue to
help the District address its policy priorities and maximize access to federal
resources
DISCUSSION: Areas of experience provided by TFG in the
past include:
- Successfully
secured an authorization for $20 million in water, wastewater, and water
supply infrastructure assistance on the Monterey Peninsula in HR 7776, the
House version of the Water Resources Development Act for 2022 (Sec. 337(a)(290)). See
also Agenda Item 4.
- Assisted
in advocating for an EPA WIFIA loan for the Pure Water Monterey project (approximately
$50 million in low-cost, long-term financing).
- Assisted
the District and Monterey One Water in securing grant assistance through
Reclamation’s Title XVI water reuse program. TFG organized and
participated in meetings in DC and California to advocate for Reclamation
support for the project. Approximately $19.6 million in grant funds have
been secured to date which will reduce the cost of Pure Water Monterey
water, and $1.5 million will benefit the District
directly in FY 2022-23.
- In
2018, arranged multiple meetings with Department of Interior, OMB, and
legislative staff to discuss the Reclamation Title XVI project qualification
criteria. Efforts resulted in Pure
Water Monterey improved chance of success and eventual award of funds.
- Successfully
advocated for an increase in the ceiling on Title XVI water reuse
assistance. Reclamation announced on January 14, 2022, that it would
increase the amount of grant assistance under the Title XVI water reuse
and recycling program from $20 million to $30 million. Over the last
several years, the District has advocated for
Congress to statutorily increase the ceiling on Title XVI assistance.
- Worked
directly with General Manager to attempt to secure earmarks for FY 2022-23
appropriation.
- Successfully
advocated for increased funding for Reclamation’s water reuse and
desalination programs. Increasing the level of funding for these two
programs has been a long-standing priority for the District.
Most recently, the Infrastructure Investment and Jobs Act (IIJA), signed
into law on November 15th of 2021, included an extra $550
million for the Title XVI water reuse program and $250 million for
Reclamation’s Desalination and Water Purification Program.
- Successfully
advocated for expanded federal assistance for ecosystem restoration to
create additional funding opportunities for steelhead recovery efforts on
the Carmel River. The IIJA included $250 million for a new watershed
restoration initiative through Reclamation, for example. The bill also includes $100 million for
multi-benefit projects that provide water supply projects that also
include nature-based ecosystem restoration benefits and additional funding
was provided in the measure for NMFS that may create future funding
opportunities for steelhead recovery efforts.
- Successfully
advocated for more funding for WaterSMART and to
increase the ceiling on WaterSMART grants to $5
million for any single project.
- In
2020, TFG timely notified the District of a California Fish Passage Forum
grant opportunity for which the District applied
for the Finch Creek barrier removal, but subsequently did not get awarded.
- On
water conservation, the District has consistently
advocated for passage of the Water Conservation Rebate Tax Parity Act (HR
4647 in this Congress) that would amend federal tax law to clarify that
homeowners do not need to pay income tax on rebates received from water
utilities for water conservation and water runoff management improvements
they have made. The measure could be added to the end of the year tax
package currently under development.
- Relationship
Building and Leadership – TFG has worked with the District
since 2015 to enhance the District’s relationships and presence in
Washington. Maintaining strong relationships with Congress and federal
agencies will support District efforts to influence legislation,
regulations, and policy changes of interest to the District.
TFG has organized Washington meetings, both in-person and virtually, over
the years, again, since 2015. TFG believes that it is important to
continue these DC meetings and return to in-person meetings at least once
a year going forward.
- Ongoing
Tracking and Monitoring -- TFG provides the District
with weekly updates on legislation, executive branch actions, and federal
regulatory matters; federal water and natural resources policy
developments; implementation of the infrastructure package; and grants. TFG
also provides special reports on funding opportunities and policy
developments of interest to the District and
provides the District with a monthly report on federal legislation
specifically of interest to the District.
We have a standing monthly call.
- TFG
provides the District with competitive grant
support and, as a TFG retainer client, TFG is available to provide the
District with grant writing services on a discounted basis.
COST: TFG has proposed a reduction in the
monthly retainer from $8,000 to $6,000 a month for the upcoming fiscal year 2023-24. A copy of the proposed agreement is included
as Exhibit 21-A.
RECOMMENDATION: The Finance and Administration Committee should
recommend that the Board approve the proposed agreement with TFG for FY 2023-24.
EXHIBIT
21-A Draft Proposal and/or Agreement to be
Available for Review with the MPWMD Board
Meeting Packet for June 20, 2023.
U:\staff\Board_Committees\FAC prev
Admin\2023\20230612\21\Item-21.docx