FINANCE AND ADMINISTRATION COMMITTEE
ITEM:		ACTION ITEM
21.	CONSIDER RENEWAL OF CONTRACT WITH THE FERGUSON GROUP FOR LEGISLATIVE AND ADMINISTRATIVE SERVICES
Meeting Date:			June 12, 2023	Budgeted:	N/A
From:			David J. Stoldt,	Program/
			General Manager	Line Item No.:	N/A
Prepared By:			David J. Stoldt	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: The Finance and Administration Committee reviewed this item on June 12, 2023 and recommended _________________.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.

SUMMARY: TFG has worked with Monterey Peninsula Water Management District (District) since 2015 and directly represented the District since January of 2017. During this time, TFG has worked with the District and Monterey One Water to build support for the Pure Water Monterey project as a multi-benefit, regional solution deserving of federal support that will serve as a model for other parts of California and the nation. TFG also worked with the District to advance the District’s interests on a wide variety of other projects and issues. The General Manager believes the opportunities for federal assistance to advance the District’s priorities remain great, and believes TFG is best positioned to continue to help the District address its policy priorities and maximize access to federal resources

DISCUSSION: Areas of experience provided by TFG in the past include:

• Successfully secured an authorization for $20 million in water, wastewater, and water supply infrastructure assistance on the Monterey Peninsula in HR 7776, the House version of the Water Resources Development Act for 2022 (Sec. 337(a)(290)). See also Agenda Item 4.

• Assisted in advocating for an EPA WIFIA loan for the Pure Water Monterey project (approximately $50 million in low-cost, long-term financing).

• Assisted the District and Monterey One Water in securing grant assistance through Reclamation’s Title XVI water reuse program. TFG organized and participated in meetings in DC and California to advocate for Reclamation support for the project. Approximately $19.6 million in grant funds have been secured to date which will reduce the cost of Pure Water Monterey water, and $1.5 million will benefit the District directly in FY 2022-23.
• In 2018, arranged multiple meetings with Department of Interior, OMB, and legislative staff to discuss the Reclamation Title XVI project qualification criteria. Efforts resulted in Pure Water Monterey improved chance of success and eventual award of funds.

• Successfully advocated for an increase in the ceiling on Title XVI water reuse assistance. Reclamation announced on January 14, 2022, that it would increase the amount of grant assistance under the Title XVI water reuse and recycling program from $20 million to $30 million. Over the last several years, the District has advocated for Congress to statutorily increase the ceiling on Title XVI assistance.

• Worked directly with General Manager to attempt to secure earmarks for FY 2022-23 appropriation.

• Successfully advocated for increased funding for Reclamation’s water reuse and desalination programs. Increasing the level of funding for these two programs has been a long-standing priority for the District. Most recently, the Infrastructure Investment and Jobs Act (IIJA), signed into law on November 15^th of 2021, included an extra $550 million for the Title XVI water reuse program and $250 million for Reclamation’s Desalination and Water Purification Program.

• Successfully advocated for expanded federal assistance for ecosystem restoration to create additional funding opportunities for steelhead recovery efforts on the Carmel River. The IIJA included $250 million for a new watershed restoration initiative through Reclamation, for example. The bill also includes $100 million for multi-benefit projects that provide water supply projects that also include nature-based ecosystem restoration benefits and additional funding was provided in the measure for NMFS that may create future funding opportunities for steelhead recovery efforts.

• Successfully advocated for more funding for WaterSMART and to increase the ceiling on WaterSMART grants to $5 million for any single project.

• In 2020, TFG timely notified the District of a California Fish Passage Forum grant opportunity for which the District applied for the Finch Creek barrier removal, but subsequently did not get awarded.

• On water conservation, the District has consistently advocated for passage of the Water Conservation Rebate Tax Parity Act (HR 4647 in this Congress) that would amend federal tax law to clarify that homeowners do not need to pay income tax on rebates received from water utilities for water conservation and water runoff management improvements they have made. The measure could be added to the end of the year tax package currently under development.

• Relationship Building and Leadership – TFG has worked with the District since 2015 to enhance the District’s relationships and presence in Washington. Maintaining strong relationships with Congress and federal agencies will support District efforts to influence legislation, regulations, and policy changes of interest to the District. TFG has organized Washington meetings, both in-person and virtually, over the years, again, since 2015. TFG believes that it is important to continue these DC meetings and return to in-person meetings at least once a year going forward.

• Ongoing Tracking and Monitoring -- TFG provides the District with weekly updates on legislation, executive branch actions, and federal regulatory matters; federal water and natural resources policy developments; implementation of the infrastructure package; and grants. TFG also provides special reports on funding opportunities and policy developments of interest to the District and provides the District with a monthly report on federal legislation specifically of interest to the District. We have a standing monthly call.

• TFG provides the District with competitive grant support and, as a TFG retainer client, TFG is available to provide the District with grant writing services on a discounted basis.

COST: TFG has proposed a reduction in the monthly retainer from $8,000 to $6,000 a month for the upcoming fiscal year 2023-24. A copy of the proposed agreement is included as Exhibit 21-A.

RECOMMENDATION: The Finance and Administration Committee should recommend that the Board approve the proposed agreement with TFG for FY 2023-24.

EXHIBIT

21-A Draft Proposal and/or Agreement to be Available for Review with the MPWMD Board

Meeting Packet for June 20, 2023.

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