ITEM:

ACTION ITEM

 

13.

CONSIDER APPROVAL OF AMENDMENT 4 TO THE COST SHARING AGREEMENT WITH MONTEREY ONE WATER FOR PURE WATER MONTEREY DEEP WELLS 3 AND 4

 

Meeting Date:

December 14, 2020

Budgeted: 

N/A

 

From:

David J. Stoldt,

Program/

N/A

 

General Manager

Line Item No.:    

 

 

Prepared By:

David J. Stoldt

Cost Estimate:

N/A

 

General Counsel Approval:  N/A

Committee Recommendation:  Administrative Committee unanimously recommended approval at its December 8, 2020 meeting.

CEQA Compliance:   This action does not constitute a project as defined by the California Environmental Quality Act Guidelines Section 15378.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUMMARY:  In May 2013, the Monterey One Water (M1W) and Monterey Peninsula Water Management District (MPWMD) entered into a Cost Sharing Agreement (Agreement) to fund the Pure Water Monterey (PWM) Project planning and development costs, also referred to as pre-construction costs.

 

Under the Agreement, beginning with Fiscal Year 2013-14, M1W agreed to fund 25% of all costs listed in Section II (A)(1,2) of the Agreement, while the MPWMD agreed to pay for 75% of the specified costs. Since the initial Agreement, the parties have entered into 3 amendments to the Agreement.

 

To ensure adequate long-term recharge capacity for PWM, on August 31, 2020 the M1W Board approved proceeding with a third deep well (DIW-3) and supported a fourth (DIW-4) if the MPWMD participated financially.  The additional capacity helps ensure that M1W and MPWMD do not breach the Water Purchase Agreement delivery guarantees, provides operational flexibility, and creates redundancy. 

 

Funding for commissioning and repair of the existing injection wells and the addition of DIW-3, is being expedited as a $6.1million amendment to the existing PWM Clean Water State Revolving Fund (SRF) loan agreement.  DIW-4 is not budgeted or included within the SRF loan amendment.  This proposed Fourth Amendment to the Agreement is for MPWMD to fund the construction and associated other costs for DIW-4 up to the approved amount.

 

At their September 21, 2020 Board meeting, MPWMD authorized $4,070,000 to fund DIW-4.  Based on their authorization, M1W amended the Injection Well Phase 3 bid package to include DIW-4.  The contract awarded by the M1W Board on October 26, 2020 included both DIW-3 and DIW-4.

  

The attached Amendment 4 (Exhibit 13-A), incorporates changes to the Agreement to accommodate the additional expenditure of funds.

 

RECOMMENDATION:  The General Manager recommends the Board approve Amendment 4 to the Cost Sharing Agreement with M1W for the Pure Water Monterey Project expansion and execute per agreement with M1W and at the direction of the CFO and General Manager.

 

EXHIBIT

13-A    Amendment 4 – M1W-MPWMD GWR Project Cost Sharing Agreement

 

 

U:\staff\Boardpacket\2020\20201214\ActionItems\13\Item-13.docx