Title
Consider approving Amendment No. 2 for $76,751 to the Agreement for Professional Services with Raftelis Financial Consultants for the preparation of an Engineer’s Report and associated Proposition 218 Hearing for the Castroville Seawater Intrusion Project’s New Source Waters, upon approval as to form by County Counsel; and authorizing the General Manager to execute the Amendment.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Directors:
a. Approve Amendment No. 2 for $76,751 to the Agreement for Professional Services with Raftelis Financial Consultants for the preparation of an Engineer’s Report and associated Proposition 218 Hearing for the Castroville Seawater Intrusion Project’s New Source Waters, upon approval as to form by County Counsel; and
b. Authorize the General Manager to execute the Amendment.
SUMMARY/DISCUSSION:
The Monterey County Water Resources Agency (MCWRA) and Monterey One Water (M1W), formerly known as Monterey Regional Water Pollution Control Agency (MRWPCA), entered into an Amended and Restated Water Recycling Agreement (Restated Agreement), which included consideration of the financing, design, construction, operation, maintenance, and replacement of New Source Water Facilities to provide approximately 4,381 acre-feet per year (AFY) of additional recycled water to MCWRA for use in the existing Castroville Seawater Intrusion Project (CSIP), a coastal irrigation project . In addition, M1W would be provided approximately 4,320 AFY of new source water to supplement the Pure Water Monterey Groundwater Replenishment Project which has been developed to provide drinking water.
In 2017, MCWRA and M1W contracted with Raftelis Financial Consultants, Inc. (Raftelis) to conduct a New Source Waters Study. The resultant New Source Water Report includes capital, operations, maintenance, and repair and replacement costs associated with developing New Source Water Facilities and provides incremental costs for CSIP operations under four different scenarios developed by MCWRA and M1W based on climate conditions and water rights for each water supply. This Study and associated New Source Waters Report was the first step towards developing an Engineer’s report and assessment process.
Based on the work recently completed by Raftelis on the incremental costs of New Source Water, the next step is to determine the best funding mechanism for each cost component of New Source Water. MCWRA has previously created an assessment as the preferred funding option for each new capital improvement / operational costs of the CSIP system and supplement wells. However, there are additional funding options available to MCWRA and its customers to consider that is not limited to assessments, but also include utility charges and fees. Each of these funding options will be reviewed as it relates to the proposed New Source Water costs and recommendations will be provided for which funding option to use and to what extent. An Engineer’s Report and all related Proposition 218 materials and processes will be included in this amended scope of work.
OTHER AGENCY INVOLVEMENT:
Monterey One Water
FINANCING:
The amount of this Amendment No. 2 is payable from Fund 131 - CSIP Operations, fiscal year 2018-2019. A Budget Amendment may be required this fiscal year if other projects become ready for Agreement. Up to $30,493 will be reimbursed by Monterey One Water per the Amended and Restated Water Recycling Agreement.
Prepared by: Shaunna Murray, Associate Water Resources Engineer, (831) 755-4860
Approved by: _____________________________________________________
David E. Chardavoyne, General Manager, (831) 755-4860
Attachments:
1. Amendment No. 2
2. Amendment No. 1
3. Original Agreement for Professional Services
4. Board Order