SUPPLEMENTAL ACTION ITEM
25.	CONSIDER Authorizing the general manager to negotiate and execute an agreement with the seaside groundwater basin watermaster to provide program management services for the seaside basin monitoring and management program
Meeting Date:		December 11, 2006	Budgeted:	N/A
From:		David A. Berger,	Program/	N/A
		General Manager	Line Item No.:
Prepared By:		Joe Oliver	Cost Estimate:	N/A
General Counsel Approval: To review prior to agreement execution.
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: At its February 23, 2006 meeting, the Board authorized staff to submit a service proposal for technical and other support services to the Seaside Basin Watermaster. If accepted, it was directed that staff return to the Board for authorization to enter into a service contract. In response to the September 29, 2006 Request for Proposals from the Watermaster Board to provide consulting services for managing and implementing the Seaside Basin Monitoring and Management Program (Program), the Monterey Peninsula Water Management District (MPWMD) and Monterey County Water Resources Agency (MCWRA), in association with Pueblo Water Resources, Inc. (PWR), submitted a proposal on October 20, 2006. This proposal was previously provided to Board members, and is available for review at the MPWMD office. On November 15, 2006, the Watermaster Board accepted a recommendation that the MPWMD/MCWRA team be selected to provide project management services for the Program. The consultant team led by RBF Consulting was selected for Program implementation services. The Watermaster Technical Advisory Committee (TAC) consultant selection representatives were then directed to meet with the selected finalists to refine their scopes and cost estimates for the Watermaster Board’s consideration on December 6, 2006. At their December 6, 2006 meeting, the Watermaster Board directed that a special committee of budget and TAC representatives be convened to further review and prioritize the proposed cost estimates, for consideration at their next meeting on January 3, 2007.

RECOMMENDATION: In anticipation of the Watermaster Board’s acceptance of the MPWMD/MCWRA cost proposal at their January 3, 2007 meeting, staff is requesting that the MPWMD Board authorize the General Manager to negotiate and enter into a service agreement to provide technical support services to the Watermaster. The agreement will be reviewed as to form by MPWMD General Counsel prior to execution.

BACKGROUND: The MPWMD/MCWRA proposal submitted to the Watermaster on October 20, 2006 was for combined Program management and implementation services. The cost estimate for this original proposal totaled $1,071,177, and covered the costs associated with the first full year of managing and implementing the Program. The MPWMD/MCWRA original proposal included assistance from PWR for the new monitor well construction portion of the Program. Subsequent to the November 15, 2006 selection of the MPWMD/MCWRA and RBF teams to provide Program management and implementation services, respectively, agency staff met with Watermaster TAC and RBF representatives on several occasions to refine each entity’s task responsibilities and associated cost estimates for carrying out their respective tasks. The latest revised version of the combined cost proposals for both management and implementation tasks totals $1,930,306, as shown in Exhibit 25-A. In the revised cost proposal, the PWR monitor well construction tasks are now included in the RBF team costs. Of the total revised cost estimate, $196,306 is for MPWMD/MCWRA management tasks, and $1,734,200 is for RBF team implementation tasks. The breakdown of these costs by individual labor tasks is shown in Exhibit 25-B. At their December 6, 2006 meeting, the Watermaster Board directed that a special committee comprised of budget and TAC representatives be convened to further review the proposed cost estimates in more detail, with a focus on prioritization of tasks that are possible within the Watermaster’s existing first-year Program budget of $1 million.  Also, this group will be taking a closer look at hourly rates and the number of hours assigned to individual tasks as part of this effort.  The Watermaster Board requested that this matter be brought back to them for recommendation at their next scheduled meeting on January 3, 2007.

IMPACT TO STAFF/RESOURCES: Costs associated with providing management services would be paid for from the Watermaster’s budget. The impact of MPWMD staff workload and budget will continue to be assessed during service agreement negotiations, and will be described in the staff report that transmits the service agreement.

U:\staff\word\boardpacket\2006\2006boardpackets\20061211\ActionItems\25\item25.doc