Title
Consider recommending that the Monterey County Water Resources Agency Board of Directors authorize the General Manager to enter into Amendment Number 2 to the Proposition 1 Integrated Regional Water Management Sub-grant Disbursement Agreement with the City of Salinas to extend the term to June 30, 2027; and authorize the General Manager to execute up to two no-cost amendments to the Sub-grant Agreement. (Presenter: Amy Woodrow)
Report
RECOMMENDATION:
It is recommended that the Finance Committee:
a. Recommend that the Monterey County Water Resources Agency Board of Directors authorize the General Manager to enter into Amendment Number 2 to the Proposition 1 Integrated Regional Water Management Subgrant Disbursement Agreement with the City of Salinas to extend the term to June 30, 2027; and
b. Recommend that the Monterey County Water Resources Agency Board of Directors authorize the General Manager to execute up to two no-cost amendments to the Subgrant Agreement.
SUMMARY/DISCUSSION:
In 2021, the Monterey County Water Resources Agency (“Agency”) was awarded $3,462,861 in Proposition 1 Round 1 Integrated Regional Water Management (“IRWM”) Implementation grant funds by the State of California, Department of Water Resources (“DWR”).
The Agency is the implementing agency for administration of agreement number 4600013799 (“Agreement”). This role involves administration of the IRWM grant funds and coordination with other project-specific implementing agencies for the projects covered in the Agreement’s Work Plan, which include the City of Salinas, Castroville Community Services District, and Resource Conservation District of Monterey County (“RCDMC”). Sub-grant agreements with each of these entities were executed in 2021 to disburse the IRWM funds allocated in the Agreement for each project. Specifically, in May 2021, the Agency entered into a sub-grant agreement with the City of Salinas for Project 5: Salinas Storm Water Management – Increasing Capture, Improving Treatment, Reducing Energy Use.
Amendments to the Primary Agreement
To-date, the Agency has completed four amendments to the Agreement with DWR.
In April 2022, Amendment 1 to the Agreement was executed to reflect a correction in Project Representatives and make a budget adjustment to Project 3 (implemented by RCDMC), reallocating funds between budget categories but retaining the same overall agreement amount.
In July 2023, Amendment 2 to the Agreement was executed to extend the term of the agreement to July 31, 2025.
In May 2025, Amendment 3 to the Agreement was completed to make a non-material change to the budget of Project 3, reallocating funds between budget categories but retaining the same overall agreement amount.
In July 2025, Amendment 4 to the Agreement was completed to extend the term of the agreement to June 30, 2027 and change the frequency of progress reporting and invoicing from quarterly to monthly (Attachment 1).
As a result of Amendment 4, the Agency needs to amend its sub-grant disbursement with the City of Salinas to reflect the extended Agreement term.
City of Salinas Sub-Grant Agreement
In May 2021, the sub-grant agreement with the City of Salinas was executed.
In March 2023, Amendment 1 to the sub-grant agreement with the City of Salinas was completed to extend the term of the agreement and update contact information for Agency representatives.
Amendment 2 to the sub-grant agreement would extend the term to June 30, 2027 (Attachment 2).
Agency efforts on the work covered by the IRWM Agreement align with Agency Strategic Plan Goal C – Strategy 6: Pursue grant funding and cost saving opportunities from all available sources, including collaborating with the GSA.
OTHER AGENCY INVOLVEMENT:
California Department of Water Resources and City of Salinas
FINANCING:
There is no financial impact to the Agency as a result of Amendment 2 to the sub-grant amendment. No cost share is required for the Agency’s role in administration of the IRWM grant and the IRWM grant funds are included in the Fiscal Year 2025-2026 Adopted Budget. The total amount estimated for the Agreement in the current fiscal year is $20,000 in expenditures and $20,000 in grant revenue.
Prepared by: Amy Woodrow, Senior Hydrologist, (831) 755_4860
Approved by: Ara Azhderian, General Manager, (831) 755-4860
Attachments:
1. Grant Agreement between the State of California (Department of Water Resources) and Monterey County Water Resources Agency Agreement Number 4600013799 Proposition 1 Round 1 Integrated Regional Water Management (IRWM) Implementation Grant Amendment 4
2. Amendment No. 2 to the Proposition 1 Integrated Regional Water Management Sub-Grant Disbursement Agreement between Monterey County Water Resources Agency and the City of Salinas.