Title
Authorize the General Manager to negotiate Amendment No. 1 to provide for a six month extension of the May 1, 2025, City of Salinas Industrial Wastewater Treatment Facility Effluent Interim Agreement between the City, Agency, and Monterey One Water, approved as to form by County Counsel; and authorize the General Manager to execute the Amendment.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors:
Authorize the General Manager to negotiate Amendment No. 1 to provide for a six month extension of the May 1, 2025, City of Salinas Industrial Wastewater Treatment Facility Effluent Interim Agreement between the City, Agency, and Monterey One Water, approved as to form by County Counsel; and authorize the General Manager to execute the Amendment.
SUMMARY/DISCUSSION:
On April 29, 2025, the Agency’s Board of Supervisors approved negotiation and execution of an Interim City of Salinas Industrial Wastewater Treatment Facility Effluent Agreement (Agreement attached) with the City of Salinas (City) and Monterey One Water (M1W) (WRAG 25-067 Board Report attached). The Agreement went into effect on May 1, 2025, for an initial six-month term, but also provided for two six-month extensions, both of which were executed. The Agreement is set to expire on November 1, 2026.
The City, M1W, and the Agency (collectively “Parties”) continue to desire to negotiate a long-term agreement; however, many details remain to be resolved. In the meantime, the Parties are agreeable to extending the existing Agreement for an additional six months, until May 1, 2027. The proposed Amendment 1 (draft attached) maintains the Agency’s priority regarding use of the City’s industrial wastewater, provides more flexibility about the volume of wastewater available for treatment, and adds cost allocation provisions for extraordinary operations during regular or unplanned maintenance outages and emergency conditions. All other recitals, terms, and conditions of the Interim Agreement not modified by Amendment 1 remain in full force and effect.
STRATEGIC PLAN ALIGNMENT:
The above staff recommendation aligns with the Board of Directors adopted 2020 Strategic Plan Goal B, Strategy 5.
OTHER AGENCY INVOLVEMENT:
City of Salinas, Monterey One Water
FINANCING:
The financial impact of approving this amendment is unknown but not likely to be meaningful due to the timeframe and typically low irrigation demand in the CSIP service area.
Prepared and Approved by: Ara Azhderian, General Manager, (831) 755-4860
Attachments:
1. Interim City of Salinas Industrial Wastewater Treatment Facility Effluent Agreement
2. Agency Board of Supervisors Report for the Interim Agreement, WRAG 25-067
3. Amendment No. 1 to the Interim City of Salinas Industrial Wastewater Treatment Facility Effluent Agreement