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ITEM: |
DISCUSSION ITEMS |
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22. |
AUTHORIZE
EXPENDITURE OF UNBUDGETED FUNDS FOR PURE WATER MONTEREY PROJECT DESIGN BID
PACKAGES |
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Meeting Date: |
November 16, 2015 |
Budgeted: |
N/A |
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From: |
David J. Stoldt |
Program/ |
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General Manager |
Line Item
No.: |
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Prepared By: |
David J. Stoldt |
Cost Estimate: |
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General Counsel Approval: N/A |
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Committee Recommendation: N/A |
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CEQA Compliance: N/A |
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SUMMARY: A schedule
for the Phase 2 proceedings at the CPUC, the consideration of the Pure Water
Monterey groundwater replenishment project (GWR), was requested through a joint
motion by the parties as follows:
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Date |
Phase 1
(Desalination) |
Phase 2
(Pure Water Monterey) |
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December 15, 2015 |
Supplemental
testimony with updated costs concerning the desalination project |
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January 22, 2016 |
Supplemental
testimony on demand and supply, brine discharge and return water |
Testimony
on Phase 2 |
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January/February |
Phase 1
settlement discussions |
Phase 2
settlement discussions |
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March 22, 2016 |
Concurrent
rebuttal testimony |
Concurrent
rebuttal testimony |
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April 14-
15, 2016 |
Evidentiary
hearings for Phase 2 and on Phase 1 updates |
Evidentiary
hearings for Phase 2 and on Phase 1 updates |
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May 2016 |
Continued
Phase 1 settlement discussions; |
Continued
Phase 2 settlement discussions until May 15; Opening
Brief on Phase 2 |
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May 2016 |
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Reply
Brief on Phase 2 (2 weeks following opening brief) |
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July 2016 |
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Target
for Phase 2 Proposed Decision* |
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August 2016 |
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Target
for Commission action on Phase 2 decision* |
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TBD |
CPUC’s
issuance of combined Draft EIR/EIS |
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TBD |
Comments
on Combined DEIR/DEIS |
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15 days
after close of DEIR/DEIS Comment Period |
Opening
Legal and Policy Brief |
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30 days
after close of DEIR/DEIS Comment Period |
Reply
Legal and Policy Brief |
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The schedule has not been yet approved by the
Administrative Law Judge, but if it is, then by July it is possible that Pure
Water Monterey has been approved by the CPUC to move forward.
In order to be ready to do so, the contracts
for design for design-bid components and preparation of bid packets for
construction manager at risk (CMAR) components need to be put into place. MRWPCA is preparing the relevant requests for
qualifications for public release at this time with awards expected in early
December.
This is an acceleration of the timeline for
these contracts. As such, very few of
their related costs were budgeted in the current fiscal year GWR budget. These contracts are expected to require
approximately $3.6 million, of which $400,000 is in the budget. That leaves $3.2 million unfunded,
approximately 75% of which is likely to occur in the current fiscal year, or
$2.4 million. The District’s
cost-sharing agreement would result in $1.8 million of additional need.
RECOMMENDATION: The General
Manager recommends the Board authorize expenditure of unbudgeted funds for contracts
for design-bid components and preparation of bid packets for construction
manager at risk (CMAR) components.
DISCUSSION: The
District has not yet identified a revenue source for this expenditure. Staff expects that this amount could derive
from four sources: (i) savings in the current year
budget for the District’s public financing of desalination due to the schedule
delays on the Environmental Impact Report; (ii) other savings from mid-year
budget review; (iii) reserves; and (iv) a favorable ruling by the California
Supreme Court on its November 3, 2015 hearing of the User Fee litigation. It is not expected that a commitment to fund
these costs will deplete the District’s reserves. The District General Manager and CFO will
commit to regular monitoring of the expenditures in order to ensure that
activities be delayed or put on hold prior to imperiling District reserves.
EXHIBIT
None
U:\staff\Boardpacket\2015\20151116\ActionItems\22\Item22.docx