WATER SUPPLY PLANNING COMMITTEE

ITEM:		ACTION ITEM
2.	AUTHORIZE EXPENDITURE OF FUNDS FOR REVIEW OF CALIFORNIA AMERICAN WATER DESIGN BUILD PROCUREMENT PROCESS
Meeting Date:			November 5, 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 $40,000
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 California American Water (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 15, 2013.  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, 2013, 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 11, 2013. 

Cal-Am plans to go to its Board on December 13, 2013 for approval and targets December 20, 2013 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 Monterey Regional Water Pollution Control Agency and the District on the Groundwater Replenishment project and served the Authority for its comparison of desalination projects late last year.

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 Water Supply Planning Committee recommend the Board of Directors approve the hiring of SPI to serve as consultant for the Governance Committee, with services not to exceed $40,000 for which the District will be reimbursed one-third of the cost by the County and the Authority. In the alternative, if by the date of the Committee meeting, the Authority has authorized that it be the contracting party with SPI, then the recommendation is to approve reimbursement of up to one-third of the cost incurred by the Authority for the consulting services, the total for which shall not exceed $40,000.

EXHIBITS

None

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