Title
a. Consider approving Amendment No. 4 to the 2015 Amended and Restated Water Recycling Agreement with Monterey One Water to revise Sections 7 and 8 of the Agreement related to financial provisions including budgets, payments, reports and annual reconciliation processes, retroactive to July 1, 2025; and
b. Authorize the Chair of the Monterey County Water Resources Agency Board of Supervisors to execute the Amendment No. 4.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors:
a. Consider approving Amendment No. 4 to the 2015 Amended and Restated Water Recycling Agreement with Monterey One Water to revise Sections 7 and 8 of the Agreement related to financial provisions including budgets, payments, reports and annual reconciliation processes, retroactive to July 1, 2025; and
b. Authorize the Chair of the Monterey County Water Resources Agency Board of Supervisors to execute the Amendment No. 4.
SUMMARY/DISCUSSION:
The Monterey County Water Resources Agency (“Agency”) and Monterey One Water (“M1W”), formerly known as Monterey Regional Water Pollution Control Agency, entered into an Amended and Restated Water Recycling Agreement (“Agreement”) on November 3, 2015, to incorporate and restate agreements that had been developed over the years since the establishment of the Castroville Seawater Intrusion Project (“CSIP”), the Salinas Valley Reclamation Project (“SVRP”), and the Salinas River Diversion Facility (“SRDF”). Subsequently, there have been three minor amendments to the Agreement related to the New Source Water Facilities. The Agreement is included as attachment 1.
In 2023, at the Agency’s request, the County of Monterey Auditor-Controller’s Office engaged GPP Analytics (“GPP”) to conduct a financial audit (“Audit”) to assess the accuracy and compliance of expenses reported by M1W reported over four fiscal years (FY 2018-19 to FY 2021-22) in accordance with the Agreement.
The Audit'...
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