Title
Approve and authorize the Chair to sign an Amendment to the Amended and Restated Agreement to Form the Monterey Peninsula Water Supply Project Governance Committee.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Approve and authorize the Chair to sign an Amendment to the Amended and Restated Agreement to Form the Monterey Peninsula Water Supply Project Governance Committee.
SUMMARY/DISCUSSION:
The Monterey Peninsula Water Supply Project Governance Committee (Committee) was formed at the request of the Monterey Peninsula Regional Water Authority (MPRWA) to provide close oversight of California American Water Company's (CAW) proposed desalination project known as the Monterey Peninsula Water Supply Project. The Committee is composed of MPRWA, CAW, the Monterey Peninsula Water Management District (MPWMD), and Monterey County.
This Amendment changes four sections of the original agreement. First, Section II.R. defining the term "Value Engineer" is changed from CAW selecting the Engineer to the Governance Committee selecting the Value Engineer and MPRWA retaining the Engineer. The Value Engineer is tasked with evaluating the project to potentially lower costs and maxime value.
Second, Section V.D. Category A, Paragraph 1 regarding selection of the Value Engineer so that any Committee member may recommend a Value Engineer. Also, CAW shall be responsible to reimburse the costs expended by MPRWA on the Engineer.
Third, Section IX clarifies the Expiration Date of the agreement by deleting the reference to 40 years from the Execution Date; instead the Expiration date will be the earlier of March 8, 2053 or the date CAW ceases to operate the project.
Finally, Section X.F. relates to each party bearing its own costs associated with participation on the Committee. This section is modified to clarify that each party will bear its own costs, except if a specific section of the Agreement allows for reimbursement from another party. For example, the MPRWA may seek reimbursement from CAW for the costs of the Value Engineer.
OTHER AGENCY INVOLVEMENT:
The MPRWA and MPWMD have already approved the Amendment.
FINANCING:
The costs of the Governance Committee consists mainly of meeting time for the appointed Supervisor and County Counsel and review of various documents. The MPRWA seeks significant financial support from the County since unincorporated residents comprise over 30% of the CAW rate base. An associated Board item related to the County's continued participation in and funding of the MPRWA is scheduled as a timed item on today's agenda. That report will focus on the MPRWA's strategic plan, budget and anticipated future expenses, and seeks board direction regarding the County's participation in and funding of MPRWA.
Prepared by:
Charles J. McKee, County Counsel
Approved by:
Nicholas E. Chiulos, Assistant County Administrative Officer
Attachments:
Amendment to the Amended and Restated Agreement to Form the Monterey Peninsula Water Supply Project Governance Committee
Agreement to Form the Monterey Peninsula Water Supply Project Governance Committee