Title
a. Authorize and direct the Auditor-Controller to increase appropriations for Fiscal Year 2021-22 in the Housing and Community Development budget, Fund 001, Appropriation Unit HCD002, Unit 8543 for the work remaining on the Salinas Valley Groundwater Basin Investigation in the amount of $287,434, financed by a decrease in appropriations in General Fund Contingencies, Fund 001, Appropriation Unit CAO020 (4/5ths vote required); and
b. Approve Amendment No. 2 to the Standard Agreement No. A-14638 with Errol L. Montgomery & Associates, Inc. to continue to provide professional hydrogeologic services for completing the Salinas Valley Groundwater Basin Investigation, to increase the Agreement not to exceed amount of $233,260 by $121,702, for a total not to exceed amount of $354,962, to revise the Scope of Work, and to extend the term for six additional months for a revised term of April 1, 2020 to December 31, 2022; and
c. Authorize the Contracts/Purchasing Officer or Contracts/Purchasing Supervisor, to execute Amendment No. 2 to Standard Agreement No. A-14638 and future amendments to the agreement which do not significantly alter the scope of work and do not cause an increase of more than ten percent (10%) ($23,326) of the original cost of the Agreement not to exceed amount.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a resolution to:
a. Authorize and direct the Auditor-Controller to increase appropriations for Fiscal Year 2021-22 in the Housing and Community Development budget, Fund 001, Appropriation Unit HCD002, Unit 8543 for the work remaining on the Salinas Valley Groundwater Basin Investigation in the amount of $287,434, financed by a decrease in appropriations in General Fund Contingencies, Fund 001, Appropriation Unit CAO020 (4/5ths vote required); and
b. Approve Amendment No. 2 to the Standard Agreement No. A-14638 with Errol L. Montgomery & Associates, Inc. to continue to provide professional hydrogeologic services for completing the Salinas Valley Groundwater Basin Investigation, to increase the Agreement not to exceed amount of $233,260 by $121,702, for a total not to exceed amount of $354,962, to revise the Scope of Work, and to extend the term for six additional months for a revised term of April 1, 2020 to December 31, 2022; and
c. Authorize the Contracts/Purchasing Officer or Contracts/Purchasing Supervisor, to execute Amendment No. 2 to Standard Agreement No. A-14638 and future amendments to the agreement which do not significantly alter the scope of work and do not cause an increase of more than ten percent (10%) ($23,326) of the original cost of the Agreement not to exceed amount.
SUMMARY/DISCUSSION:
Adoption of the 2010 General Plan for Monterey County resulted in litigation. As a result of the Settlement Agreement reached in 2012 between the Salinas Valley Water Coalition and the County in one of those lawsuits (Monterey County Case No. M109451), the Board of Supervisors adopted amendments to the 2010 General Plan in 2013, including amending Policy PS-3.1 to direct preparation of a five-year study to evaluate groundwater levels and seawater intrusion relative to total water demand for existing and projected future uses under the General Plan within the Monterey County Water Resources Agency Zone 2C assessment district area. A primary objective of the Salinas Valley Groundwater Basin Investigation is to assess the general health of the Salinas Valley Groundwater Basin (SVGB) with regard to its ability to provide a sustainable supply of water for land-use activities projected through Year 2030 under the County General Plan.
The County entered into a cooperative agreement with the U.S. Geological Survey (USGS) to configure and calibrate an integrated comprehensive hydrogeologic model to assess the general health of the SVGB, and the County engaged Errol L. Montgomery & Associates, Inc. (M&A) via a Standard Agreement (Agreement A-14638) for professional hydrogeological services to complete the SVGB Investigation (Attachment C). M&A is tasked with reassessing and summarizing the state of the SVGB (Zone 2C) using the most recently configured USGS Salinas Valley Integrated Hydrologic Model (SVIHM). On April 19, 2021, Agreement A-14638 was amended via Amendment No. 1 (Attachment B) to provide more time to allow M&A to complete a reassessment and evaluation of future conditions, extending the term through June 30, 2022.
An additional amendment to Agreement A-14638 with M&A is required to update the Scope of Services to include additional modeling work required for the completion of the SVGBI. With the proposed Amendment No. 2 (Attachment A), M&A will expand the variable density flow model to encompass the full extent of areas potentially impacted by seawater intrusion, combining data from multiple existing models, and incorporating data collected in Summer 2021 by the Department of Water Resources during an airborne electromagnetic (AEM) survey of the Salinas Valley. Incorporating the AEM data will increase the scientific confidence in the seawater intrusion modeling and enable better model predictions. Once complete, the expanded seawater intrusion model will be a tool for assessing seawater intrusion and evaluating potential benefits of seawater intrusion mitigation options. Completion of this task will lead to the completion of the SVGB Investigation.
In addition to the Scope update, additional time and funding are necessary. Amendment No. 2 will increase the not to exceed amount of Agreement A-14638 by $121,702 for a revised amount not to exceed $354,962 and will extend the term by six additional months for a revised term of April 1, 2020 to December 31, 2022. The increase in $121,702, is half of the total amount necessary to complete the additional data analysis, as the Salinas Valley Basin Groundwater Sustainability Agency (SVBGSA), who also need additional data analysis, have agreed to share the cost of the seawater intrusion model expansion with the County and to pay $121,702 to M&A concurrently.
A budget augmentation to increase appropriations in the FY 2021-22 Adopted Budget is necessary to fund the proposed Amendment No. 2. Securing the funding budgeted in FY 2021-22 will allow M&A to complete the SVGB Investigation, which is critical to the implementation of the 2010 County General Plan. On November 18, 2021, the Budget Committee voted to support and authorize the HCD’s request to the Board of Supervisors to increase appropriations by $287,434 in the FY 2021-22, which includes the remaining $165,732 (the amount remaining from the amount previously allocated to the SVGB Investigation) and an augmentation of $121,702 to fund Amendment No. 2. The Project is anticipated to conclude by the end of Fiscal Year 2022, and no further funds are expected to be needed.
OTHER AGENCY INVOLVEMENT:
The Housing and Community Development (HCD) is responsible to oversee the administration of the SVGB Investigation and the Monterey County Water Resources Agency (MCWRA) to provide project management. The SVIHM that M&A will use to conduct the Investigation is provided by the USGS. The Office of the County Counsel and Auditor-Controller’s Office have reviewed and approved Amendment No. 2 as to form and fiscal provisions, respectively. On November 18, 2021, the Budget Committee voted in support of HCD’s request to increase appropriations to fund the completion of the SVGB Investigation.
FINANCING:
A total amount of $1,618,135 has been spent for FY 2015-16 through FY 2020-21 to conduct the SVGB Investigation. The HCD FY 2020-21 adopted budget included an augmentation in the amount of $75,998. On October 27, 2020, the Board of Supervisors approved increasing appropriations by $182,260 from funds assigned to the Assigned Fund Balance at the close of FY2019-20. In FY 2020-21 $92,526 was spent. However, the balance of $165,732 was not assigned at the close of FY2020-21. In FY 2021-22, $287,434 is needed to complete the Investigation. Currently the work is anticipated to be complete by June 30, 2022. Staff requests an increase in appropriations in Fund 001, Appropriation unit HCD002, Unit 8543 from FY 2020-21 General Fund Contingencies (001-8034-CAO020) where the balance is $423,417.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES
Completion of the Basin Investigation facilitates closure of key litigation related to the 2010 General Plan.
X Economic Development
X Administration
Health & Human Services
X Infrastructure
__ Public Safety
Prepared by: Shandy Carroll, HCD, Management Analyst III, (831) 784-5643
Approved by: Melanie Beretti, AICP, Principal Planner
Approved by: Erik V. Lundquist, AICP, Director of Housing and Community Development
The following attachments are on file with the Clerk of the Board:
Attachment A - Amendment No. 2 to Agreement No. A-14638
Attachment B - Amendment No. 1 to Agreement No. A-14638
Attachment C - Agreement No. A-14638 with Errol L. Montgomery & Associates, Inc.
Attachment D - Resolution
cc: WRA: Amy Woodrow, Hydrologist