Title
a. Approve the Second Amendment to the Third Reimbursement and Funding Agreement between the County of Monterey and the Monterey County Water Resources Agency relating to preliminary expenditures for the Interlake Tunnel and Spillway Modification Projects; and,
b. Authorize the Monterey County Water Resources Agency General Manager to execute the Second Amendment to the Third Reimbursement and Funding Agreement.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors:
a. Approve the Second Amendment to the Third Reimbursement and Funding Agreement between the County of Monterey and the Monterey County Water Resources Agency relating to preliminary expenditures for the Interlake Tunnel and Spillway Modification Projects; and,
b. Authorize the Monterey County Water Resources Agency General Manager to execute the Second Amendment to the Third Reimbursement and Funding Agreement.
SUMMARY/DISCUSSION:
In December of 2014 the Board of Supervisors of the Agency authorized staff to proceed with work on the proposed Interlake Tunnel Project (“Project”). Due to a lack of available funds at the Agency for certain preparatory work, the County and the Agency entered into a series of Reimbursement and Funding Agreements whereby the County would reimburse the Agency for certain preparatory expenses on the condition that the County would be repaid for such reimbursements if the Project proceeded and financing was obtained. Most recently the County and the Agency entered into the Third Reimbursement and Funding Agreement, which brought the total amount eligible for reimbursement to $2,071,000 through June 30, 2016. The expenses eligible for reimbursement were limited to preliminary engineering and design, spillway modification feasibility, technical support, environmental consulting, and program management.
Subsequently, the Agency Board of Supervisors directed that a project labor agreement (“PLA”) be negotiated for the Project. Those negotiations necessitated the retention of a lawyer experienced in PLAs. On April 12, 2016, the Agency requested from the Water Resources Board of Supervisors that such services be included in those eligible for reimbursement in the First Amendment to the Third Reimbursement and Funding Agreement. This action did not add any additional funding for reimbursement purposes, and the total amount available for reimbursement remains $2,071,000 for FY 2015-16.
Pursuant to direction of the Monterey County Board of Supervisors on March 22, 2016, funding alternatives were discussed with Agency Staff and the CAO-Budget and Analysis Division, including a process to seek Board consideration for funding during the FY 2016-17 Budget Hearings which necessitated the requested Second Amendment to the Third Reimbursement and Funding Agreement for an additional amount of $929,000 for deferred project activities: hydrologic modeling, LIDAR Survey, preparation of a draft EIR, and continued Program Management that could not be reimbursed from the County to the Agency due to insufficient funds available in the County’s FY 2016-17 Budget.
OTHER AGENCY INVOLVEMENT:
The Monterey County Water Resources Agency Board of Directors approved this item on April 25, 2016. The County CAO Budget and Analysis division discussed funding. County Counsel assisted in providing information for this report.
Due to the late submission of the report, the CAO Budget and Analysis division was not provided adequate time to review for potential fiscal, organizational, policy or other implications to the County of Monterey.
FINANCING:
Amendment No. 2 to the Third Reimbursement and Funding Agreement requests the County of Monterey to reimburse the Agency in the FY 2016-17 Adopted Budget, if approved by the BOS on June 1, 2016 at the County Budget Hearings, an additional $929,000 for the purpose of funding Environmental Consulting Services Phase I, including hydrologic modeling, LIDAR Survey, preparation of a draft EIR, contract legal services, and continued Program Management work, up to and including a 218 process. This is in addition to the $971,000 in the Third Funding Agreement, $500,000 that was reimbursed under the First Reimbursement Agreement, and $600,000 to be reimbursed under the Second Reimbursement Agreement, not to exceed a total of $3,000,000.
Prepared by: Cathy Paladini, Finance Manager, (831) 755-4861
Approved by:
David E. Chardavoyne, General Manager, (831) 755-4860
Attachments:
1. Second Amendment to the Third Reimbursement and Funding Agreement between the County of Monterey and the MCWRA
2. First Amendment to the Third Reimbursement and Funding Agreement between the County of Monterey and the MCWRA
3. Interlake Tunnel Planning Cash Flow Summary dated 3/23/16
4. Interlake Tunnel Cost Loaded Planning Schedule dated 3/23/16
5. Interlake Tunnel and Spillway Modification Cumulative Cash Flow (Budget vs. Actual) dated 3/23/16
6. Interlake Tunnel Planning Cash Flow dated 3/23/16
7. Interlake Tunnel Project Planning Forecast dated 3/21/16
8. Third Reimbursement and Funding Agreement between the County of Monterey and the MCWRA
9. Second Reimbursement and Funding Agreement between the County of Monterey and the MCWRA
Reimbursement and Funding Agreement between the County of Monterey and the Monterey County Water Resources Agency for Preliminary Engineering and Design, Water Rights Analysis, and Initial Program Management for the Inter Lake Tunnel Project.
10. MCWRA Executed Board Order
11. Reimbursement and Funding Agreement between the County of Monterey and the Monterey County Water Resources Agency for Preliminary Engineering and Design, Water Rights Analysis, and Initial Program Management for the Inter Lake Tunnel Project.