FINANCE AND ADMINISTRATION COMMITTEE
ITEM:		ACTION ITEM
8.	CONSIDER RENEWAL OF CONTRACT WITH FERGUSON GROUP FOR LEGISLATIVE AND ADMINISTRATIVE SERVICES
Meeting Date:			May 12, 2025	Budgeted:	Yes
From:			David J. Stoldt,	Program/	Consultants
			General Manager	Line Item No.:	XX-01-774000
Prepared By:			Mike McCullough	Cost Estimate:	$75,600 annually
General Counsel Review: N/A
Committee Recommendation: The Finance and Administration Committee reviewed this item on May 12, 2025, 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 at the federal level 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 is serving as a model for 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. District staff believe the opportunities for federal assistance to advance the District’s priorities is lower this year due to a change in Administration. However, TFG and District remain optimistic in positioning the District to 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)).

• Assisted in advocating for an EPA WIFIA loan for the Pure Water Monterey project (approximately $76 million in low-cost, long-term financing).

• Assisted the District and Monterey One Water in securing grant funds through Reclamation’s Title XVI water reuse program. TFG organized and participated in meetings in DC and California to encourage Reclamation’s support of the project. Approximately $30 million in grant funds have been secured to date which has reduced the cost of the Pure Water Monterey project.

• Worked directly with the General Manager to attempt to secure Community Project funding for FY 2024-25 and to renew community projects for FY 25/26 appropriation.

• Successfully advocated for an increase in the ceiling on Title XVI water reuse assistance 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.

• On water conservation, the District has consistently advocated for passage of the Water Conservation Rebate Tax Parity Act 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.

• Relationship Building and Leadership – Maintaining strong relationships with Congress and federal agencies will boost the District’s efforts to influence legislation, regulations, and policy changes of interest. TFG has organized Washington meetings, both in-person and virtually, and recommends continuing these in-person DC meetings moving forward.

• Ongoing Tracking and Monitoring -- TFG provides the District with weekly updates on legislation, executive branch actions, and federal regulatory matters on water and natural resources, and developments about grant funding. TFG also provides special reports on policy developments and a monthly report on federal legislation.

• TFG has a standing monthly call with District staff and can provide competitive grant grant writing and support services on a discounted basis.

COST: TFG has proposed a monthly retainer of $6,300 a month for the upcoming fiscal year 2025-26. A copy of the proposed agreement is included as Exhibit 8-A.

RECOMMENDATION: The Finance and Administration Committee should recommend that the Board approve the proposed agreement with TFG for FY 2025-26.

EXHIBIT

8-A Proposed Agreement for FY 2025-2025

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