|
ITEM: |
CONSENT
CALENDAR |
||||
|
|
|||||
|
11. |
CONSIDER APPROVAL OF AN
AMENDMENT TO THE COST SHARING AGREEMENT WITH THE MONTEREY REGIONAL WATER
POLLUTION CONTROL AGENCY FOR THE GROUNDWATER REPLENISHMENT PROJECT |
||||
|
|
|||||
|
Meeting
Date: |
July 18, 2016 |
Budgeted: |
In approved budget |
||
|
|
|||||
|
From: |
David J.
Stoldt |
Program/ |
|
||
|
|
General
Manager |
Line Item No.: |
35-03-786010 |
||
|
|
|||||
|
Prepared
By: |
David J.
Stoldt |
Cost Estimate: |
N/A |
||
|
|
|||||
General Counsel Approval: N/A |
|||||
Committee Recommendation: N/A |
|||||
|
CEQA Compliance: N/A |
|||||
SUMMARY: In
May 2013, the District entered into a Cost-Sharing Agreement with the Monterey
Regional Water Pollution Control Agency (MRWPCA) to fund the Groundwater
Replenishment (GWR) Project planning and development costs. Beginning with Fiscal Year 2013-14, MRWPCA
agreed to fund 25% of all costs listed in Section II (A)(1,2)
of the attached Agreement (Exhibit 11-A),
while MPWMD agreed to pay for 75% of the specified costs.
The attached Amendment (Exhibit 11-B),
proposes the following changes to the Agreement:
·
Increase
the maximum number of fully-funded employees from two to five
As the GWR Project is advancing, the MRWPCA
needs additional staff to support increasing project demands. The MRWPCA has hired a Limited-Term Contracts
Administrator and a Temporary Pure Water Monterey/GWR Project Manager to
support these efforts, while also assigning an Associate Engineer to manage a
portion of the project.
·
Add MRWPCA
Line of Credit costs to Section II
The MRWPCA has contributed more than $7
million to the GWR Project. As a result,
the Agency’s FY 2015-16 ending reserve balances are projected to be just below
the $2.5 million policy level. All
current costs related to the GWR Project are paid by the MRWPCA and later
reimbursed by the District. While both
organizations strive to bill and process reimbursements in an expeditious
manner, it may be over a month before the MRWPCA is reimbursed. Due to
increased GWR expenses, pending reimbursements could be as high as $1
million. The MRWPCA obtained the line of
credit to indirectly bridge cash flow needs while waiting for District
reimbursements and supplement reduced operating reserves.
RECOMMENDATION: The
Board should approve Amendment 1 to the Cost Sharing Agreement with MRWPCA for
the Groundwater Replenishment Project (Exhibit 11-B).
FISCAL IMPACT: The District adopted Fiscal Year 2016-17
Six-month GWR budget assumed that the District would be reimbursing the MRWPCA
for the three additional positions, along with the line of credit. Hence, the approximately $148,000 in salary
and benefit costs; and an estimated $9,400 related to the line of credit are in
the $1,576,500 approved by the District Board at its June meeting.
EXHIBITS
11-A MRWPCA-MPWMD
GWR Project Cost-Sharing Agreement
11-B Amendment
1 – MRWPCA-MPWMD GWR Project Cost Sharing Agreement
U:\staff\Boardpacket\2016\20160718\ConsentClndr\11\Item-11.docx