Title
Consider recommending the Board of Directors consider a six-month extension of the City of Salinas Industrial Wastewater Treatment Facility Effluent Interim Agreement.
Report
RECOMMENDATION:
It is recommended that the Finance and Administration Committee:
Recommend the Board of Directors consider a six-month extension of the City of Salinas Industrial Wastewater Treatment Facility Effluent Interim Agreement.
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 of Salinas, Monterey One Water, 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 IA 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 and emergency conditions. All other recitals, terms, and conditions of the Interim Agreement not modified by IA 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 IA Amendment 1 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