ITEM: CONSENT CALENDAR

2.	CONSIDER EXPENDITURE OF FUNDS FOR PAYMENT OF VOLUNTARY ASSESSMENT FOR SEASIDE BASIN WATERMASTER ADMINISTRATIVE COSTS IN CALENDAR YEAR 2008
Meeting Date:		July 21, 2008	Budgeted:	No
From:		Darby Fuerst,	Program/	N/A
		General Manager	Line Item No.:
Prepared By:		Darby Fuerst	Cost Estimate:	$8,000
General Counsel Reviewed: Yes
Committee Recommendation: The Committee considered this item on July 16, 2008 and recommended a reduced contribution of $8,000.
CEQA Compliance: N/A

SUMMARY: The Seaside Groundwater Basin Watermaster Board has requested that each member of the Watermaster Board consider making a voluntary payment toward the Seaside Basin Watermaster administrative costs in Calendar Year 2008 (Exhibit 2-A). This payment differs from the administrative assessment formula set by the Monterey County Superior Court in the basin adjudication decision that was issued in March 2006. In that decision, the administrative costs were distributed among three parties, California American Water (83%), the City of Sand City (2.6%), and the City of Seaside (14.4%). To the extent voluntary contributions are made, the amounts required from these three parties would be reduced on a pro rata basis.

As proposed, each member of the nine-member Watermaster Board would contribute based on the number of its weighted votes. Given that there are 13 total votes and the District has been assigned two votes, the District’s contribution would be two thirteenths (2/13) of the projected administrative costs in CY 2008 ($87,000) or $13,384. The status of each Watermaster member’s contribution through May 29, 2008, is also shown in Exhibit 2-A. As shown, all parties with the exception of the Landowner Parties Groups, the City of Del Rey Oaks, and the District have made voluntary assessments to cover the Watermaster’s projected administrative costs in CY 2008.

This item was considered by the Board at its January 24, 2008 meeting and was continued until Monterey County’s representative on the Watermaster Board, Monterey County Water Resources Agency (MCWRA), determined its position regarding the voluntary payment. As reported by the Watermaster Chief Executive Officer, Dewey Evans, MCWRA approved payment of the voluntary assessment and made their initial payment in May 2008.

RECOMMENDATION: Staff recommends that the Board approve a voluntary payment of $13,384 toward the Seaside Groundwater Basin Watermaster administrative costs projected for CY 2008. This recommendation is based on the technical work that the Watermaster administers and provides to the District. This work, which includes data collection, well construction, and groundwater management planning, provides valuable information that complements the District’s management responsibilities in the Seaside Groundwater Basin.

IMPACTS TO STAFF/RESOURCES: Funds for payment of a voluntary assessment of $13,384 to cover a portion of the Seaside Basin Watermaster projected administrative costs in CY 2008 were not included in the District’s Fiscal Year (FY) 2008 budget. If the voluntary payment is approved by the Board, contingency funds in the District’s FY 2008 budget are available to pay the District’s voluntary assessment to the Seaside Basin Watermaster in CY 2008.

EXHIBITS

2-A Watermaster Voluntary Administrative Assessments invoice dated May 29, 2008

2-B Watermaster CEO Evans staff report dated October 17, 2007

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