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HomeMy WebLinkAboutNorth San Diego County Regional Recycled Water Pro; 2011-03-01;SEVENTH AMENDMENT TO THE JOINT COST SHARING AGREEMENT WHEREAS, Oliven ha in Municipal Water District, Carlsbad Municipal Water District, Vallecitos Water District, City of Oceanside, Leucadia Wastewater District, San Elijo Joint Powers Authority, Rincon del Diablo Municipal Water District, Santa Fe Irrigation District, and City of Escondido have cooperated in order to develop a recycled water project for northern San Diego County generally known as the North San Diego County Regional Recycled Water Project (NSDCRRWP); WHEREAS, Olivenhain Municipal Water District, Carlsbad Municipal Water District, Vallecitos Water District, Vista Irrigation District, City of Oceanside, Leucadia Wastewater District, San Elijo Joint Powers Authority, and Rincon del Diablo Municipal Water District entered into a one-year Joint Lobbying and Cost Sharing Agreement on March 1, 2011. The purpose of the 2011 Joint Lobbying and Cost Sharing Agreement was to retain The Furman Group (Furman) to perform legislative outreach to secure federal funding for the NSDCRRWP, including Water Resources Reform and Development Act (WRRDA), now referred to as Water Infrastructure Improvements for the Nation Act (WIIN), and Title XVI funding, and to specify the time and manner in which payment will be made to Furman; WHEREAS, the parties agreed in 2012 to amend and extend the 2011 Joint Lobbying and Cost Sharing Agreement for a period of one year and have since agreed annually to amend and extend the 2011 Joint Lobbying and Cost Sharing Agreement for a period of one year; WHEREAS, the NSDCRRWP partners and Furman successfully communicated with legislators over the past year, enabling the Coalition to be eligible to apply for WIIN Title XVI program federal funding for the NSDCRRWP; WHEREAS, as established in the fourth amendment, the original parties agreed to include Santa Fe Irrigation District and City of Escondido as parties to the agreement; WHEREAS, Vista Irrigation District elected to withdraw participation as a party in March 2017 to the 2011 Joint Lobbying and Cost Sharing Agreement, with no consideration or refund provided to Vista Irrigation District for past payments; WHEREAS, as of February S, 2018, The Furman Group has merged with and is now a subsidiary of BlueWater Strategies lie; WHEREAS, through this amendment, it is the intent of all remaining parties to extend the 2011Joint Lobbying and Cost Sharing Agreement, as amended, for an additional one-year period, to retain BlueWater Strategies for an additional year to continue federal legislative outreach, and to specify the time and manner in which payment will be made. NOW, THEREFORE, the parties hereto agree as follows: 1. Parties. The original parties to the 2011 Joint Lobbying and Cost Sharing Agreement are Olivenhain Municipal Water District, Carlsbad Municipal Water District, Vallecitos Water District, Vista Irrigation District, City of Oceanside, Leucadia Wastewater District, San Elijo Joint Powers Authority, and Rincon del Diablo Municipal Water District. Santa Fe Irrigation District and City of Escondido became parties to 2011 Joint Lobbying and Cost Sharing Agreement through the fourth amendment, and Vista Irrigation District withdrew participation as a party to the 2011 Joint Lobbying and Cost Sharing Agreement in March 2017. 2. Term. The foregoing recitals are true and correct. The parties hereby agree to amend and extend the 2011 Joint Lobbying and Cost Sharing Agreement, as amended, by one year until March 31, 2019. Any further amendments may be executed by the parties as necessary and agreed upon in writing. 3. Cost Share and Scope. Based on continued joint participation by nine partners, the annual cost for services, not including out-of-pocket expenses, is anticipated to total $156,000 per year, with each agency's actual share provided for in Paragraph 6. A copy of the agreement with BlueWater Strategies for this seventh amendment is attached as Exhibit A. 4. Out of Pocket Expenses by BlueWater Strategies. Out-of-pocket expenses will be invoiced by BlueWater Strategies directly to OMWD and will be shared equally by all parties at the time of invoicing. It is anticipated that out of pocket expenses shall not exceed a total of $8,000 in one year. s. Additional Partner Buy-In. As established in the fourth amendment, Santa Fe Irrigation District and City of Escondido were incorporated into the joint cost sharing agreement. Original parties agreed that Santa Fe Irrigation District and City of Escondido would buy into the agreement for a total of $49,395.25 each, payable semi-annually beginning with the payment schedule described in Paragraph 6 of this amendment for a term no longer than six years. Buy-in payments for both agencies are scheduled to terminate after the second payment in 2020. 6. Payment. The remaining original seven partner agencies shall make semi-annual payments of no more than $7,491, excluding out of pocket expenses. Santa Fe Irrigation District and City of Escondido shall make semi-annual payments of no more than $12,936, excluding out of pocket expenses. Each party shall make semi-annual payments to OMWO according to the following schedule, and OMWO shall add its semi- annual payment to the rest of the payments, making one (1) full payment to Blue Water Strategies twice per year as described below: PAYMENT DUETOOMWD DUE TO BLUEWATER STRATEGIES First Payment May 1, 2018 May 15, 2018 Second Payment October 1, 2018 October 15, 2018 7. Original Agreement in Full Force and Effect. This amendment only modifies the terms set forth herein. All other terms of the 2011 Joint Lobbying and Cost Sharing Agreement remain in full force and effect. 8. Effective Date. The effective date of this Agreement is April 1, 2018. DATED: if r3/tX r ( OLIVENHAIN MUNIPPAL WATER DISTRICT DATED: L/ I L/ /It'. DATED: ------ DATED: _____ _ DATED: _____ _ APPROVED AS TO FORM Celia A. Brewer, c~ AUome1 By:_;~~--- Aflt,'Deputy City Attorney City of Carlsbad, CA CARLSBAD MUNICIPAL WATER DISTRICT By: ·· I i! /// ) j ; : I"-,} { _ 1 !( (._.! , ,~ i • /.1 '1:,1 '--~,('·! ( '-,,"··; ,, , . i v· I ~· !...· . / .._.. ' I, " t cv; ,._,,.. I Wendy Cham6ers, General Manager / VALLECITOS WATER DISTRICT By: Glenn Pruim, General Manager CITY OF OCEANSIDE By: Cari Dale, Water Utilities Director LEUCADIA WASTEWATER DISTRICT By: Paul Bushee, General Manager SAN ELIJO JOINT POWERS AUTHORITY By: Michael Thornton, General Manager DATED:------CARLSBAD MUNICIPAL WATER DISTRICT By: Wendy Chambers, General Manager ::LLECITOS12~ Glenn Pruim, General Manager DATED: _____ _ CITY OF OCEANSIDE By: Cari Dale, Water Utilities Director DATED: LEUCADIA WASTEWATER DISTRICT ------ By: Paul Bushee, General Manager DATED: _____ _ SAN ELIJO JOINT POWERS AUTHORITY By: Michael Thornton, General Manager DATED:~~~~~~ CARLSBAD MUNICIPAL WATER DISTRICT By: Wendy Chambers, General Manager VALLECITOS WATER DISTRICT By: Glenn Pruim, General Manager DATED: CITY OF OCEANSIDE ~--aekD Cari Dale, Water Utilities Director DATED:~~~~~~ LEUCADIA WASTEWATER DISTRICT By: Paul Bushee, General Manager SAN ELIJO JOINT POWERS AUTHORITY By: Michael Thornton, General Manager DATED: ______ _ CARLSBAD MUNICIPAL WATER DISTRICT 13y: Wendy Chambers, General Manager· DATED: __ _ VALLECITOS WATER DISTRICT By: Glenn Pruirn, General Manager DATED: CITY OF OCEANSIDE ------- By: Cari Dale, Water Utilities Director DATED: ______ _ DATED: SAN ELIJO JOINT POWERS AUTHORITY By: Michael Thornton, General Manager DATED:~------CARLSBAD MUNICIPAL WATER DISTRICT By: Wendy Chambers, General Manager DATED: _____ _ VALLECITOS WATER DISTRICT By: Glenn Pruim, General Manager DATED:~------CITY OF OCEANSIDE By: Cari Dale, Water Utilities Director LEUCADIA WASTEWATER DISTRICT By: Paul Bushee, General Manager DATED: _____ _ SAN ELIJO JOINT POWERS AUTHORITY By: Michael Thornton, General Manager DATED: ~/~ 7 DATED:------ CITY OF ESCONDIDO By: Chris McKinney, Water Utilities Director SANTA FE IRRIGATION DISTRICT By: Michael Bardin, General Manager DATED:------RINCON DEL DIABLO MUNICIPAL WATER DISTRICT By: Greg Thomas, General Manager DATED: 0§, 6.J..018' CITY OF ESCONDIDO By: DATED: _____ _ SANTA FE IRRIGATION DISTRICT By: Michael Bardin, General Manager DATED: _____ _ RINCON DEL DIABLO MUNICIPAL WATER DISTRICT By: Greg Thomas, General Manager DATED: __ ~---CITY OF ESCONDIDO By: Chris McKinney, Water Utilities Director DATED: .5"-[f---/ g, SANTA FE IRRIGATION DISTRICT By: ~L~ Michael Bardin, General Manager FOURTH AMENDMENT TO THE JOINT COST SHARING AGREEMENT WHEREAS, Olivenhain Municipal Water District, Carlsbad Municipal Water District, Vallecitos Water District, Vista Irrigation District, City of Oceanside, Leucadia Wastewater District, San Elijo Joint Powers Authority, Rincon del Diablo Municipal Water District, Santa Fe Irrigation District, and City of Escondido have cooperated in order to develop a recycled water project for northern San Diego County generally known as the North San Diego County Regional Recycled Water Project (NSDCRRWP); WHEREAS, Olivenhaln Municipal Water District, Carlsbad Municipal Water District, Vallecitos Water District, Vista Irrigation District, City of Oceanside, Leucadia Wastewater District, San Elijo Joint Powers Authority, and Rincon del Diablo Municipal Water District entered into a one-year Joint Lobbying and Cost Sharing Agreement on March 1, 2011. The purpose of the 2011 Joint Lobbying and Cost Sharing Agreement was to retain The Furman Group (Furman) to perform legislative outreach to secure federal funding for the IIISDCRRWP, including Water Resources Reform and Development Act (WRRDA) and Title XVI funding, and to specify the time and manner in which payment will be made to Furman; WHEREAS, the parties agreed in 2012 to amend and extend the 2011 Joint Lobbying and Cost Sharing Agreement for a period of one year and have since agreed annually to amend and extend the 2011 Joint Lobbying and Cost Sharing Agreement for a period of one year; WHEREAS, the NSDCRRWP partners and Furman successfully communicated with legislators over the past year, leading to assurances of support for a project authorization for the NSDCRRWP upon establishment of a new authorizing process in WRRDA; WHEREAS, through this amendment, it is the intent of the original parties to include Santa Fe Irrigation District and City of Escondido as parties to the agreement, to extend the 2011 Joint Lobbying and Cost Sharing Agreement, as amended, for an additional one-year period, to retain Furman for an additional year to continue federal legislative outreach, and to specify the time and manner in which payment will be made. NOW, THEREFORE, the parties hereto agree as follows: 1. Parties. The original parties to the 2011 Joint Lobbying and Cost Sharing Agreement are Olivenhain Municipal Water District, Carlsbad Municipal Water District, Vallecitos Water District, Vista Irrigation District, City of Oceanside, leucadia Wastewater District, San Elijo Joint Powers Authority, and Rincon del Diablo Municipal Water District. Santa Fe Irrigation District and City of Escondido are hereby added as parties to the agreement. . 2. Term. The foregoing recitals are true and correct. The parties hereby agree to amend and extend the 2011 Joint Lobbying and Costs Sharing Agreement, as amended, by one year until March 31, 2016. Any further amendments may be executed by the parties as necessary and agreed upon in writing. 3. Cost Share and Scope. Based on continued joint participation by ten partners, the annual cost for services, not including out of pocket expenses, is anticipated to be $14,400 per participating agency per year. Out of pocket expenses also remain capped at $8,000 per year for Furman, thereby making the maximum contribution per agency $800. A copy of the agreement with the Furman Group for this fourth amendment is attached as Exhibit A. 4. Addltlpnal Partner Buy-ln. Santa Fe Irrigation District and City of Esco-ndido are hereby rncorporated into the Joint cost sharing agreement as specified herein. Under the terms of of the original 2011 Joint Lobbyfn,v and Cost Sharing Agreement and the first, secol'ld, and third amendments thereof, the t:osts Incurred to d·ate by ellen partner agency to retain Furman has totaled $49,395.25. In order to account fot these already expended costs wh~e adding two parties to the agreement, oach party agrees that Santa Fe In lgatlon District a.nd City of Escondido will buy Into the agreement for a tt»tal of $491395.~~ eact1, payable semi-annually begannang with the paymentschedule described In Paragraph 5 of this amendment for a term no longer than six years. The seml-annua I payments will continue to be due to OMWD regardle3s of each agency's continued participation In the joint lobbying and cost-sharing efforts. The semi-annual payments are in addition to those payments due OMWD for sharing In the costs or the fourth RH'tlendment and subsequtmt amendments to the agreement with Furman. As a result of the Santa Fe lrrisatlon District and Cfty of E'scondldo buy.fn, each of the original eight partner ar.encies will pay a reduced rate through theslx· year truy-ln period. 5. Paymtllt. The orlglnal eight partner agencles shall make &emf-annual payments of $6,570.94. Santa Fe lrrrgatfon District and City of Escond do shall make semi-annual payments of $11,716.27. Each party shall make semi-annual payments to OMWO according to the following schedule, and OMWO ~hall add Its semi-annual payment to the rest Gfthe payments, making one (1) full payment to Furman twice per yt>a r as described below: PAYMENT DUE TO OtviWO DUE TO TH£ fURMAN GROUP first Payment Mayl, 2015 May 15,2015 Second Payment October 1, 2015 Oc;tt)bef' 15, 2015 6. Original Agreement In Ftrll Foree and Effect. Thts amendment only modlf1es the terms set forth herein. All other tarms of the 2011Jolnt lobbylnr and Co,st ShartnR Agreement rcm1110 In full force and efwct 1. Effectiye Date. The effect-ve date of this Aereemen\ is Mo~rch 311 2015. OAi£0:. L!,'Ci/(!) • DATED: _____ _ VAllECITOS WATER DISTRICT By: Dennis Lamb, General Manage DATED: _____ _ VISTA IRRIGATION DISTRICT By: Roy Coox, General Manager DATED: _____ _ CITY OF OCEANSIDE By: Jason Dafforn, Water Utilities Director DATED: _____ _ LEUCADIA WASTEWATER DISTRICT By: Paul Bushee, General Manager DATED: _____ _ SAN ELUO JOINT POWERS AUntORITY By: Michael Thornton, General Manager DATED:. _____ _ RINCON DEL DIABLO MUNICIPAL WATER DISTRICT By: Greg Thomas, General Manager DArED:------VAUECITOS WATER OISTftiCT By: Ocnnlt: Lamb, Generol Manoaer DATED:-~-"-· ._i'_/_il_,_-~_-_ VISTA IRRIGATION DISTRICT /'} /"' J .:.1 ( ( ~ _(_J-+-'-- Iloy col, General Manager By: OATED: CITY OF OCEANSIDE By: Jason 03fforn, Water Utilities Director DATED:··-------· LEUCADIA WASTEWATER DISTRICT By: Paul Bushee, General Manaaer DATED:. ____ _ SAN ELIJO JOINT POWERS AUTHORITY By: Mlt hnel Thornton, General Manager DATED:, _____ _ ttlNCON DEL DIABLO MUNICIPAL WATER DISTRICT By: Greg Thomas, General Manaaer DATED: _____ _ VALLECITOS WATER DISTRICT By: Dennis Lamb, General Manager DATED: _____ _ VISTA IRRIGATION DISTRICT By: Roy Caox, General M•mager DATED:#£ OTY Of OCEA'HSIOE By: DATED: _____ _ lEUCADIA WASTEWATER DISTRICT By; Paul Bushee, General Manager DATED:. _____ _ SAN ELIJO JOINT POWE:RS AUTHORITY By: Michael Thornton, General Manager DATED;. _____ _ RINCON DEL DIABlO MUNICIPAL WAT£R DISTRICT By: Greg Thornas, General Manager DI\HO: _____ _ OA~·r:u: ------ DAI'f.D: -----~ I I .411 ~ , -· l . i • I {_j I DATED: I)ATEO: _____ _ DATED; ____ _ VALLECITOS WATEI~ DISTHIC'r Oy: Qtmnls Latnb1 C:iCnllrol Mannger \I!Sil\ IHiliG/\1'10N Llll''l'ltiC'r Oy: ----------------------Hoy Ct)OX, <:icttot·nl MAnngru CI1'V or-OCei\NSIDL 13y: Jnson D.tHotll, Walct' Ullllllcs Diteclor LEUCADIA WAS1'~WI\l'ER DISTRICI ) I' ,/ !#-.. ) ( / By: I. " ( \ :..}< c . , w Pnul Oushue, General Manager SAN I:I.IJOJOINT POWERS AUHIOnlTV ------------------------Mit!:\ a(! I Thornton, Gcnerol Manager RINCON DEL DIAULO MUNICIP/\l WATER DISTRICT oy: DATED: ____ _ VAllECITOS WATER DISTR.ICT By: Dennis Lamb, General Manager DATED: _____ _ VISTA IRRIGATION DISTRICT By: Roy Coox, General Manager DATED: _____ _ CfTY OF OCEANSIDE By: Jason Daffern, Water Utilities Director DATED: _____ _ LEUCADIA WASTEWATER DISTRICT By: Paul BUshee, General Manager SAN ELUO JOINT POWERS AUl"HORITY By: AL?i-Y G--G Michael Thornton, General Manager DATED: ____ _ RINCON DEL DIABLO MUNICIPAL WATER DISTRICT By: Greg Thomas, General Manager DATED: _____ _ VALLECITOS WATER DISTRICT By: Dennis Lamb, General Manager DATED; _____ _ ViSTA IRRIGATION DISTRICT By: Roy Coox, General Manager DATED: _____ _ CITY OF OCEANSIDE Sy: Jason Dafforn, Water Utilities Director DATED: _____ _ LEUCADIA WASTEWATER DISTRICT By: Psul Bushee, General Manager DATED:._· -----SAN ELIJO JOINT POWERS AUTHORITY By: Michael Thornton, General Manager I DATED~·--:.....:.......:../-=J:.....--RINCON DEL DIABLO MUNICIPAL WAlE~ DISTRICT ( By: I .... J~/i, l ... ~... .... ..._ ... _.... ... Greg Thomas, General Manager DATED: Of;. :Z.S. WIS DATED: ____ _ CITY OF ESCONDIDO By~ eL.;~,~ u2 tfl/(1~:; Chris McKJ,nney, Water Ulilitles DirectOr l ..; SANTA FE IRRIGATION DISTRICT Sy: Michael Bardin., General Manager DATED:, _____ _ CITY OF ESCONDIDO By; Chris McKinney, Water Utilities Director SANTA FE IRRIGATION DISTRICT By: ~,~0\~L Michael Bardin, General Manager FOURTH AMENDMENT TO THE CONSULTING PROFESSIONAL SERVICES AGREEMENT WITH THE FURMAN GROUP This Agreement is entered into by and between Olivenhain Municipal Water District, a Municipal Water District organized and operating pursuant to Water Code Section 71000 et seq. (hereinafter "OMWD") and the Furman Group, a lobbying/consulting firm organized and operating in the State of California (hereinafter "TFG"). RECITALS 1. OMWD entered into a one-year Consulting Professional Services Agreement with TFG effective February 15, 2011, under the terms of which TFG assisted OMWD and its partners with legislative outreach and government relations services in the pursuit of federal funds for the North San Diego County Regional Recycled Water Project (NSDCRRWP). 2. Upon expiration of the initial agreement, OMWD and TFG amended the agreement, effective Aprill, 2012, to extend the term of the agreement for a period of one year. OMWD and TFG amended the agreement a second time, effective April!, 2013, to extend the term of the agreement for one additional year. OMWD and TFG amended the agreement a third time, effective Aprill, 2014, to extend the term of the agreement for one additional year. 3. The NSDCRRWP partners and TFG successfully communicated the value of the NSDCRRWP to federal legislators, and the appropriate members of California's congressional delegation have offered assurances that they are prepared to support project authorization for the NSDCRRWP upon establishment of a new authorizing process in the Water Resources Reform and Development Act. 4. OMWD and its NSDCRRWP partner agencies-Carlsbad Municipal Water District, Vallecitos Water District, Vista Irrigation District, City of Oceanside, Leucadia Wastewater District, San Elijo Joint Powers Authority, Rincon del Diablo Municipal Water District, Santa Fe Irrigation District, and City of Escondido-have entered into an agreement through which costs for TFG's services will be shared jointly among each agency. 5. On behalf of the NSDCRRWP partner agencies, OMWD desires to retain TFG for one additional year. COVENANTS 1. Services to be Performed. TFG agrees to perform all work and services in strict accordance with the work described in the cost proposal attached hereto as Exhibit "A" and Incorporated herein by reference. TFG will be representing all the partnering agencies. All work performed by TFG shall be subject to review and approval by OMWD. OMWD wlll coordinate with the other NSDCRRWP partnering agencies on approval ofTFG's work. 2. Price for Work. TFG agrees to perform all work described in Exhibit "A" for a monthly retainer amount of $12,000 plus out of pocket expenses not exceeding $8,000 for the duration of the one- year agreement. Out-of-pocket expenses include travel, taxi fares, telephone, mall, facsimile, computer- aided research, courier, and related charges directly attributable to TFG's representation of the NSDCRRWP. Once the project is authorized to receive federal funds by both the House and Senate, OMWD and the other NSDCRRWP partners may enter into an addition-al amendment to this agreement. No increase in the price shall be allowed without the express written consent of OMWD. OMWD shall have no obligation to grant this consent and may deny cons·ent to any price increas·e, in its sole discretion. 3. Payment for Work. Each partnering agency sh a II make Its semi-a nnua I payments to OMWD according to the following schedule, and OMWD shall add its semi-annual payment to the rest of the payments, making one (1) full payment twice per year to TFG as de-scribed below: PAYMENT DUETOOMWD DUETOTFG First Payment May 1, 2015 May 15,2015 Second Payme.nt October 1, 2015 October 15, 2015 4. Original Agreement in Full Force and Effect. This amendment only modifies the terms set forth herein. All other terms oft he 2011 Consulting Professional Services Agreement, as amended, remain rn full force an·d effect. 5. Effective Date. The effective date of this amendment executed in counterparts in Encinitas, California, within the North County Judicial District, County of San Diego, State of California, is Aprill, 2015. Dated: .3 /2r,,f r s= Olivenhain Municipal Water District Dated: cf I ~ 1 t.C The Furman Group By:~1in~~~ Owner . ··· .. ~~. The l·'mm:1n Gro11p w;!~J'' ·~fra:;hl•ctun: • arlvoc:r.y _____________ _ Ms. Kimberly Thorner General Manager Olivenhain Municipal Water District 1966 Olivcnhain Road Encinitas, CA 92024 March 3, 2015 Re: Extension ofProfessional Services Agreement _/ ~ DearM~ome~ !l~Uff ,.1u1:1 :!\''!.t,.ld :'(/J Wr-\ht,._)k'V" 1\C 'n.lG\ ,.,._.,,,.,.., 20" )'7 UI!IJ fu ':fJ~ 131.1).1~!: On behalf of The Furman Group (''TFG"), thank you for providing us this opportunity to propose a renewal of our Profess]ona1 Services Agreement with the North San Diego Wate.r Reuse Coalition ("Coalition"). We are honored to haw had the oppmtunity to work on behalf of the Coalition these past four years. The Agreement between our firm and the Coalition expires on March 31, 2015, and we would like to continue our work on behalf of this impottant regional project. Below, I have outlined the activities undertaken over the past year and the work ahead. CURRENT STATUS Since the Water Resources Reform and Development Act ("WRRDA") became law on June J 0, 2014, TFG and Coalition members have provided significant input to the Army Corps of Engineers ("Corps") and Members of Congress about the implementation of those provisions jn the new law that establish authorizing mechanisms for local water infrasttucture projects, while avoiding the ban on Congressionally directed cannarks. Of particularly interest to the Coalition is Section1014, the Study and Construction of Water Resources Development Projects by Non-Federal Interests. The creation of this authorization program provides a new avenue for the Coalition to secure Federal funding. Combined with the established support for the North San Diego Water Reuse project from the Los Angeles Offi.ce of the Corps and the San Diego Congressional Delegation, these elements will provide the necessary foundation for TFG to be successful on your behalf. Following the passage of the WR.RDA, TFG assembled a working group of its cJients including a number of Coalition member Mencies to develop recommendations for the Corps regarding the implementation Guidelines for Section 1014. The working group consisted of major municipal water districts in California that have a mutual interest in ensuring that the Corps formulates Guidelines that are beneficial to communities by providing a clear and equitable approach to project qualiftcatiOIL The group focused on three main points: suggesting a Preliminary Environmental Analysis document that would provide an initial environmental evaluation of a project bctore it is authorized, repealing the Corps' Reconnaissance Study process, and emphasizing the importance of formulating a feasibility study that is streamlined and user friendly. In August. of 2014, the Corps began a series of public listening sessions (webinars) to discuss the implementation of the WRRDA law and its new programs. The final session titled, 11Non-Federal Implementation, Water Supply and Reservoirs, and Navigation," was held on September 24, 2014. During the listening session, members of the Coalition expressed their concerns and suggested changes, providing a strong voice on behalf of mtmicipalities throughout the U.S. that are seeking Federal partnerships to address the backlog ofwater infrastructure needs in the country. In the fall of 2014, TFG reached out to a number of trade associations, including the Association of California Water Agencies ("ACWA") and the WateReuse Association, in order to raise awareness of the drought conditions facing California and the importance of water supply (environmental infrastructure) projects and their eligibility under the newly established Section 1014 program. Following a number of meetings with Members of California Delegation and House and Senate Committee staff, we were successful in convincing Congressman Ken Calvert (R-CA) to champion the issue. Over the next few months, TFG worked closely with the Congressman and his staff to secure broad bipartisan support for the issue and its importance to communities throughout California. Those efforts came to fruition on February 19, 2014, when a letter, which was drafted by TFG and signed by 30 Members of the California Congressional Delegation, was sent to the Assistant Secretary of the Army for Civil Works addressing the issue of environmental infrastructure projects. STRATEGY AND SCOPE OF WORK As the !14th Congress commences, we are optimistic about the authorizing program established by WRRDA and continue to work with Members of Congress to ensure that the Corps moves quickly and coHaboratively with nonwFederal interests in formulating and implementing the Guidelines for the program. Once the Guidelines are finalized, we will work with Coalition members to produce a feasibility study based on the required criteria. The feasibility study will then be submitted to the Corps for review, at which time the Corps will have 180 days to review the study before submitting its project recommendations to Congress. During the review period, TFG will work with the Corps at the regional level and at headquarters to facilitate the review of the feasibility study and provide additional infonnation the Corps may require. Concurrently, TFG will work to ensure that the professional staffs of the House Transportation and Infrastructure ("T &I") and Senate Environment and Public Works ("EPW") Committees are both educated and committed to authorizing the project. It is imperative that we continue to keep your project visible and ensure that it remains a priority of the appropriate Members of the California Congressional Delegation as well as those on the House and Senate authorizing Committees. The revised authorization process will be extremely competitive and Congress will favor projects that 2 are consistently and effectively promoted by project sponsors, both in Washington and in the local districts. One of the most practical and meaningful actions the Coalition can take to keep the North San Diego Water Reuse Project relevant in the minds of Congressional Members and their staff is to provide on-site tours and briefings on the specific components of the project and how it will benefit their communities. Giving lawmakers and staff the opportunity to see the project and its impact first hand will reinforce the importance of the project as they begin to advocate on its behalf. We recommend scheduling site visits during the upcoming Congressional recesses from March 30th-April lOth (Easter recess) and May 25th-29th (Memorial Day recess), during which time many Members and their Washington, D.C. staff will return home to their Districts. TFG will assist in drafting fonual invitation letters to the San Diego Congressional Delegation and their key staff responsible for water and related infrastructure issues. Demonstrating a broad range of public support for the project is a critical element in establishing project priorities for Members of the Congressional Delegation. The most practical and effective way to accomplish this task is to submit support letters from various local government entities, private interest groups, and environmental organizations. With our assistance, Coalition officials have already generated numerous letters of support from various groups in San Diego Cmmty. TFG strongly encourages the Coalition to continue this effort to generate additional letters. The newly established authorizing process and subsequent Federal appropliations process for large-scale, water~related infrastructure projects will be extremely competitive. Keeping the Delegation Members informed of the merits of the project on a regular basis will not onty keep it fresh in their minds but also demonstrate the importance of the project to the citizens of San Diego County. As part of our representation of the Coalition, TFG stays in constant contact with staff members of the San Diego Congressional Delegation and the House T &I and Senate EPW committees. It is also important for Coalition officials to be continuously engaged with Federal officials throughout this process. To that end, TFG is currently working with the Coalition to schedule meetings in Washington this spring with Members of Congress, House and Senate Committee staff, and the Administration to discuss the pr~ject and the importance of securing a Federal partnership moving forward Furthermore, TFG will continue to monitor Federal legislative and regulatory initiatives that may impact the Coalition and its activities, such as the Environmental Protection Agency and Anny Corps of Engineers' proposed rule seeking to further define the "Waters of the U.S." under the Clean Water Act. h1 addition, The Furman Group maintains an evolving database of legislation that is regularly updated with details on the location of each bill in the legislative process such as: when it was introduced, the number of cosponsors, scheduled hearings, committee mark-ups, floor debates, and final votes. The database is regularly reviewed to determine the likelihood of a bill's passage and what impact the legislation would have on the Coalition if it were to pass and become law. 3 TERM, FEES AND EXPENSES The Fmman Group provides professional Federal government relations services to its clients based upou an annual retainer that may be paid semi·annually (in advance) plus out of pocket expenses directly related to om representation (such as local taxi trave.l to Capitol Hill or travel to brief the client at their written request). Om retainers are based, in part, upon the time that we estimate the .representation will require on the part of our professionals, the difficulty oJ the projects in comparison to other projects, and such intangibles as the amount of political capital that will be necessary for the firm to expend to accomplish the client's goals. We propose an annual retainer fee of $144,000 with an agreement tenn of one year that can be tem1inated by either party with 30 days' notice. If approved, this extension would expire on March 31,2016. CONCLUSION Once again, tl1ank you for providing us the opportunity to present you with this proposal to continue our work. Don't hesitate to contact me, or Scan Taylor, with any questions. Sincerely, --< fJJ-' ~.-WJ~~--- Harold W. Furman II Chairman and Managing Director 4 THIRD AMENDMENT TO THE JOINT COST SHARING AGREEMENT WHEREAS, Olivenhain Municipal Water District, Carlsbad Municipal Water District, Vallecitos Water District, Vista Irrigation District, City of Oceanside, Leucadia Wastewater District, San Elijo Joint Powers Association, and Rincon del Diablo Municipal Water District have cooperated in order to develop a recycled water project for northern San Diego County generally known as the North San Diego County Regional Recycled Water Project (NSDCRRWP); WHEREAS, the aforementioned parties entered into a one-year Joint Lobbying and Cost Sharing Agreement on March 1, 2011. The purpose of the 2011 Joint Lobbying and Cost Sharing Agreement was to retain The Furman Group (Furman) to perform legislative outreach to secure federal funding for the NSDCRRWP, including Water Resources Development Act and Title XVI funding, and to specify the time and manner in which payment will be made to Furman; WHEREAS, the parties agreed in 2012 to amend and extend the 2011 Joint Lobbying and Cost Sharing Agreement for a period of one year and again agreed in 2013 to amend and extend the 2011 Joint Lobbying and Cost Sharing Agreement for a period of one year; WHEREAS, the NSDCRRWP partners and Furman successfully communicated with legislators over the past year, leading to assurances of support for a project authorization for the NSDCRRWP upon establishment of a new authorizing process in WRDA; WHEREAS, it is the intent of the parties through this amendment to extend the 2011 Joint Lobbying and Cost Sharing Agreement, as amended, for an additional one-year period, to retain Furman for an additional year to continue federal legislative outreach, and to specify the time and manner in which payment will be made. NOW, THEREFORE, the parties hereto agree as follows: 1. Term. The foregoing recitals are true and correct. The parties hereby agree to amend and extend the 2011 Joint Lobbying and Costs Sharing Agreement, as amended, by one year until March 31, 2015. Any further amendments may be executed by the parties as necessary and agreed upon in writing. 2. Cost Share and Scope. The cost share and scope remain unchanged. Based on continued joint participation by eight partners, the annual cost for services, not including out of pocket expenses, is anticipated to continue to be $15,000 per participating agency per year. Out of pocket expenses also remain capped at $8,000 per year for Furman, thereby making the maximum contribution per agency $1,000. 3. Payment. Each party shall make semi-annual payments of $8,000 to OMWD according to the following schedule, and OMWD shall add its semi-annual payment to the rest of the payments, making one (1) full payment to Furman twice per year as described below: PAYMENT DUETOOMWD DUE TO THE FURMAN GROUP First Payment May 1, 2014 May 15,2014 Second Payment October 1, 2014 October 15, 2014 1 4. Original Agreement in Full Force and Effect. This amendment only modifies the terms set forth herein. All other terms of the 2011 Joint Lobbying and Cost Sharing Agreement remain in full force and effect. 5. Effective Date. The effective date of this Agreement is March 31, 2014. DATED:------OLIVENHAIN MUNICIPAL WATER DISTRICT By: Kimberly Thorner, General Manager DATED:------CARLSBAD MUNI IPAL WATER DISTRICT By: DATED:------VALLECITOS WATER DISTRICT By: Dennis Lamb, General Manager DATED: _____ _ VISTA IRRIGATION DISTRICT By: Roy Coox, General Manager DATED:------CITY OF OCEANSIDE By: Cari Dale, Water Utilities Director 2 DATED: _____ _ LEUCADIA WASTEWATER DISTRICT By: Paul Bushee, General Manager DATED:. ____ _ SAN ELIJO JOINT POWERS AUTHORITY By: Michael Thornton, General Manager DATED: _____ _ RINCON DEL DIABLO MUNICtPAL WATER DISTRICT By: Greg Thomas, General Manager 3 SECOND AMENDMENT TO THE JOINT COST SHARING AGREEMENT WHEREAS, Ollvenhain Municipal Water District, carlsbad Municipal Water District, Vallecitos Water District, Vista Irrigation District, City of Oceanside, Leucadia Wastewater District, San Elijo Joint Powers Association, and Rincon del Diablo Municipal Water District have cooperated in order to develop a recycled water project for northern San Diego County generally known as the North San Diego County Regional Recycled Water Project (NSDCRRWP); WHEREAS, the aforementioned parties entered into a one-year Joint Lobbying and Cost Sharing Agreement on March 1, 2011. The purpose of the 2011 Joint Lobbying and Cost Sharing Agreement was to retain The Furman Group (Furman) to perform legislative outreach to secure federal funding for the NSDCRRWP, including Water Resources Development Act and Title XVI funding, and to specify the time and manner in which payment will be made to Furman; WHEREAS, the NSDCRRWP partners successfully lobbied with Furman over the past year, leading to the NSDCRRWP's placement on the list of projects submitted for inclusion in WRDA; WHEREAS, the parties agreed in 2012 to amend and extend the 2011 Joint Lobbying and Cost Sharing Agreement for a period of one year; WHEREAS, it is the intent ofthe parties through this amendment to extend the 2011Joint Lobbying and Cost Sharing Agreement, as amended, for an additional one-year period, to retain Furman for an additional year to continue federal legislative outreach, and to specify the time and manner in which payment will be made. NOW, THEREFORE, the parties hereto agree as follows: 1. Term. The foregoing recitals are true and correct. The parties hereby agree to amend and extend the 2011 Joint Lobbying and Costs Sharing Agreement, as amended, by one year until March 31, 2014. Any further amendments may be executed by the parties as necessary and agreed upon in writing. 2. Cost Share and Scope. The cost share and scope remain unchanged. Based on continued joint participation by eight partners, the annual cost for services, not including out of pocket expenses, is anticipated to continue to be $15,000 per participating agency per year. Out of pocket expenses also remain capped at $8,000 per year for Furman, thereby making the maximum contribution per agency $1,000. 3. Payment. Each party shall make semi-annual payments of $8,000 to OMWD according to the following schedule, and OMWD shall add its semi-annual payment to the rest of the payments, making one (1) full payment to Furman twice per year as described below: PAYMENT DUETOOMWD DUE TO THE FURMAN GROUP First Payment May 1, 2013 May 15,2013 Second Payment October 1, 2013 October 15, 2013 4. Original Agreement in Full Force and Effect. This amendment only modifies the terms set forth herein. All other terms of the 2011 Joint Lobbying and Cost Sharing Agreement remain in full force and effect. 1 S. Effective Date. The effective date of this Agreement is March 31, 2013. DATED:~ OLIVENHAIN MUNICIPAL WATER DISTRICT er, General Manager DATED:------CARLSBAD MUNICIPAL WATER DISTRICT By: Wendy Chambers, Utilities Director DATED: _____ _ VALLECITOS WATER DISTRICT By: Dennis Lamb, General Manager DATED: _____ _ VISTA IRRIGATION DISTRICT By: Roy Coox, General Manager DATED:------CITY OF OCEANSIDE By: Cari Dale, Water Utilities Director DATED:------LEUCADIA WASTEWATER DISTRICT By: Paul Bushee, General Manager 2 s. Effective Date. The effective date of this Agreement is March 31, 2013. DATED: ____ _ OLIVENHAIN MUNICIPAL WATER DISTRICT By: Kimberly Thorner, General Manager DATED: 4 ( ~~ I !> DATED:------VALLECITOS WATER DISTRICT By: Dennis lamb, General Manager DATED: ____ _ VISTA IRRIGATION DISTRICT By: Roy Coox, General Manager DATED: ____ _ CITY OF OCEANSIDE By: Cari Dale, Water Utilities Director DATED:------LEUCADIA WASTEWATER DISTRICT By: Paul Bushee, General Manager 2 5. Effective Date. The effective date of this Agreement is March 31, 2013. DATED: __________ __ OLIVENHAIN MUNICIPAL WATER DISTRICT By: Kimberly Thorner, General Manager DATED:------------CARLSBAD MUNICIPAL WATER DISTRICT By: Wendy Chambers, Utilities Director DATED: _____ _ VALLECITOS WATER DISTRICT a-&;?;( By: Dennis Lamb, General Manager DATED:------VISTA IRRIGATION DISTRICT By: Roy Coax, General Manager DATED:------------CITY OF OCEANSIDE By: Cari Dale, Water Utilities Director DATED: __________ __ LEUCADIA WASTEWATER DISTRICT By: Paul Bushee, General Manager 2 5. Effective Date. The effective date of this Agreement is March 31, 2013. DATED: _____ _ OU\I£NHAIN MUNIOPAL WATER DISTRICT By: Kimberly Thorner, General Manager DATED: _____ _ CARLSBAD MUNICIPAL WATER DISTRICT By: Wendy Chambers, Utilities Director DATED: _____ _ VALLECITOS WATER DISTRICT By: Dennis Lamb, General Manager VISTA IRRIGAnON DISTRICT By: ·~~· DATED:-----CITY OF OCEANSIDE By: Carl Dale, Water Utilities Director DATED: _____ _ LEUCADIA WASTEWATER DISTRICT By: PauiBushee,GeneraiManager 2 5. Effective Date. The effective date of this Agreement is March 31, 2013. DATED: _____ _ OUVENHAIN MUNICIPAL WATER DISTRICT By: Kimberly Thorner, General Manager DATED: _____ _ CARLSBAD MUNICIPAL WATER DISTRICT By: Wendy Chambers, Utilities Director DATED: _____ _ VALLECITOS WATER DISTRICT By: Dennis Lamb, General Manager DATED: _____ _ VISTA IRRIGATION DISTRICT By: Roy Coox, General Manager DATED: DATED: _____ _ LEUCADIA WASTEWATER DISTRICT By: Paul Bushee, General Manager 2 5. Effective Date. The effective date of this Agreement is March 31, 2013. DATED:------OLIVENHAIN MUNICIPAL WATER DISTRICT By: Kimberly Thorner, General Manager DATED: _____ _ CARLSBAD MUNICIPAL WATER DISTRICT By: Wendy Chambers, Utilities Director DATED: _____ _ VALLECITOS WATER DISTRICT By: Dennis Lamb, General Manager DATED:------VISTA IRRIGATION DISTRICT By: Roy Coox, General Manager DATED: _____ _ CITY OF OCEANSIDE By: Carl Dale, Water Utilities Director ......-.... DATED: LEUCADIA W TEWATER DISTRICT-=> ;;_;: f / / :...,. .. ~ \7, I '/1) By: Paul Bushee, General M nager 2 ! . j DATED: DATED:. _____ _ SAN EUJO JOINT POWERS AUTHORITY By: Michael Thornton, General Manager RINCON DEL DIABLO MUNICIPAL WATER DISTRICT By: Bob Gumerman, Interim General Manager 3 DATED:. _____ _ SAN ELIJO JOINT POWERS AUTHORITY By: Michael Thornton, General Manager DATED: 4-cJ?-;p/_3 RINCON DEL DIABLO MUNICIPAL WATER DISTRICT By: ~~ Bob Gumerman, Interim General Manager 3 FIRST AMENDMENT TO THE JOINT LOBBYING AND COST SHARING AGREEMENT WHEREAS, Olivenhain Municipal Water District (OMWD), Carlsbad Municipal Water District (CMWD), Vallecitos Water District (VWD),Vista Irrigation District (VID), City of Oceanside (City), Leucadia Wastewater District (L WWD), San Elijo Joint Powers Association (SEJP A), and Rincon del Diablo Municipal Water District (Rincon) have cooperated in order to develop a recycled water project for north San Diego County generally known as the North San Diego County Regional Recycled Water Project (NSDCRRWP); WHEREAS, the aforementioned parties entered into a one year Joint Lobbying and Cost Sharing Agreement on March I, 20 II. The purpose of the 2011 Joint Lobbying and Cost Sharing Agreement was to retain The Furman Group (Furman) to lobby for federal funding on behalf of the NSDCRRWP, including WRDA and Title XVI funding, and to specify the time and manner in which payment will be made to Furman. WHEREAS, the NSDCRRWP successfully lobbied with Furman over the past year and was included in Senator Feinstein's list of projects submitted for inclusion in WRDA. WHEREAS, it is the intent of the parties through this amendment to amend and extend the 2011 Joint Lobbying and Cost Sharing Agreement for an additional one year time period and retain Furman for an additional year to continue the federal grant lobbying , and to specify the time and manner in which payment will be made. NOW, THEREFORE, the parties hereto agree as follows: 1) Term. The foregoing recitals are true and correct. The parties hereby agree to amend and extend the 2011 Joint Lobbying and Costs Sharing Agreement by one year until March 31, 2013. Any further amendments may be executed by the parties as necessary and agreed upon in writing. 2. Cost Share and Scope. The cost share and scope remain unchanged. The revised scope and fee for the Furman contract is attached as Exhibit A. Based on continued joint participation by 8 partners, the annual cost for services, not including out of pocket expenses, is anticipated to continue to be $15,000 per participating agency per year. Out of pocket expenses also remain capped at $8,000 per year for Furman, thereby making the maximum contribution per agency $1 ,000. 3. Payment. Each party shall make its semi-annual payments of $8,000 to OMWD according to the following schedule, and OMWD shall add its semi-annual payment to the rest of the payments, making one (1) full payment to Furman twice per year as described below: DATED: __________ _ DATED: __________ _ DATED: __________ _ DATED: ----------- DATED:. __________ _ VISTA IRRIGATION DISTRICT (VID) By: Roy Coox, General Manager CITY OF OCEANSIDE (CITY) By: Cari Dale, Water Utilities Director LEUCADIA WASTEWATER DISTRICT (LWWD) By: Paul Bushee, General Manager SAN ELIJO JOINT POWERS AUTHORITY (SEJPA) By: Mike Thornton, General Manager RINCON DEL DIABLO MUNICIPAL WATER DISTRICT (RINCON) By: Mitchell Dion, General Manager EXHIBIT A -Furman Scope PAYMENT DUETOOMWD DUE TO THE FURMAN GROUP First Payment May I, 2012 May I5, 20I2 Second Payment October I, 20 I2 Octoberi5, 20I2 4. Original Agreement in Full Force and Effect. This amendment only modifies the terms set forth herein. AU other terms of the 2011 Joint Lobbying and Cost Sharing Agreement remain in full force and effect. 5. The effective date of this Amendment is March 3I, 20 I2. DATED: __________ _ DATED: APa1L. 18, 2nlt, DATED: __________ _ OLIVENHAIN MUNICIPAL WATER DISTRICT (OMWD) By: Kimberly Thorner, General Manager CARLSBAD MUNICIPAL WATER DISTRICT (CMWD) By: ~tiL Glenn Pruim, Utilities Director VALLECITOS WATER DISTRICT (VWD) By: Dennis Lamb, General Manager 1750 H Street, 11\V, Suite 600 Washington, DC 20006 The Furman Group telephone202.737.o7oo water + infrastructure + public alfairs------------------------l:..::.:ax:..:2.:..:02.::...73::.:..:7 . .:.:04=55 Ms. Kimberly Thorner General Manager Olivenhain Municipal Water District 1966 Olivenhain Road Encinitas, CA 92024 February 14, 2013 Re: Extension of Professional Services Agreeme11t Dear Ms. Thorner: All of us at The Furman Group (TFG) are honored to have had the opportunity to work on behalf of your Coalition these past years. The Professional Services Agreement between our firm and the Coalition expires on March 12, 2013. We would like to continue our work on behalf of this important project Following I have outlined the activities undertaken over the past year and the work ahead of us. Based on a number of political and economic factors, TFG continues to believe that the best approach for long-term federal funding for the North San Diego County Regional Water Recycling Project is through the U. S. Army Corps of Engineers' Environmental Infrastructure Program. Our recent discussions with members of the California Congressional Delegation, particularly Senator Dianne Feinstein and Senator Barbara Boxer, has confirmed this approach and we have been assured that appropriate members of the Delegation are prepared to request that the Project be included as a new authorization within the upcoming Water Resources Development Act ("WRDA"). CURRENT STATUS U.S. Senate Earlier this year, the Senate Environment and Public Works Committee ("EPWC"), which has jurisdiction over WRDA, invited Members of Congress to submit projects for consideration for inclusion in the upcoming WRDA legislation. The Furman Group completed all of the necessary requirements by Senators Boxer and Feinstein's offices and the EPW committee which included: request letters, project request form and certification documents. Although very little action was taken on WRDA in the Senate during the regular session in 2012, the professional staff of the EPWC insists that WRDA remains a priority for the 113th Congress and that they are prepared to move the legislation as expeditiously as possible. The prevailing obstacle in moving the WRDA legislation was the earmark ban in Congress. As we will discuss later in this memo, we believe this earmark ban will be amended in the 113th Congress and that the initial phase of the WRDA process will begin in early 2013. On September 20, 2012, Chairwoman Barbara Boxer, of the Senate EPWC, held a hearing on the WRDA legislation. She opened the hearing by announcing that she intended to produce a draft WRDA bill prior to the election in hopes that an agreement could be worked out to bring the legislation before the full committee for a markup during the post election lame duck session. The Senator went on to emphasize the importance of getting a reauthorization bill done during 2012 or early in the next Congress, and added that other issues have caused a backlog of legislation in the previous Congress. One such issue mentioned is the current moratorium on earmarks that was adopted by both chambers and the Administration during the past (ll21h) Congress. Senator Boxer stated that 11Congress, not me, voted to do away with earmarks, I think it's ridiculous, I think as a result of that you have an Administration with all the power, whether it's this one, or a Romney one ... She went on to say 11I believe this is our job .. as Members of Congress to direct these funds as we see fit in our states and communities. We felt it was worth noting that at the hearing Amy Larson, President and CEO of the National Waterways Conference, echoed the Chairwoman's concerns regarding the effects of the current earmark moratorium in Congress and how it pertains to drafting a strong WRDA bill. She testified, 11The drafting of various provisions throughout the bill has been hampered by the moratorium on earmarks. While efforts in Congress to eliminate wasteful spending are laudable, and especially important given today's fiscal challenges, deferring to the Executive Branch complete decision-making as to which projects should be authorized or receive funding, how much (if any) funding should be allotted to each, and all related priority decisions, has resulted in the stoppage or delay of critical projects. Moreover, the Administration's priorities, as articulated in the budget, have not been established through an open, deliberative process, in contrast to the open process used by this Committee in developing past WRDAs." House of Representatives In the 201 0 election campaign. many incumbent House Republicans and most Republicans seeking election to Congress, indicated that they would not approve "earmarks"--and loosely defmed earmarks to include project authorizations such as that sought for the Project. When the Republicans took control of the House of Representatives, as a result of the 2010 elections, they held true to their promise and imposed an official rule banning all earmarks (including authorizations) for the 112th Congress. The constraints represented by this self-imposed limitation created an intolerable situation for many Republican members and an effort was made to fmd a solution to this problem within the Republican leadership. Despite the dysfunction that was created as a result of this earmark ban, the Republican leadership feared that a resolution of any kind would appear to be a sign of weakness and demonstrate a lack of conviction on the issue. Therefore, the earmark moratorium was upheld throughout the 2 112th Congress, which killed any chance of moving WRDA and several other infrastructure-related pieces of legislation--a problem that was eventually realized by almost everyone in Congress, including rank-and-file Republicans who were largely responsible. As the Republication leadership begins to set the rules for the I 13th Congress, the earmark issue will undoubtedly be a major topic of discussion. In fact, at the first meeting of the Republican caucus, Representative Don Young from Alaska (who was the champion of the "Bridge to Nowhere") made a motion to allow earmarks for municipalities and local governments for infrastructure related projects. Speaker of the House, John Boehner, urged Mr. Young to withdraw his motion to allow him and an unofficial committee who were commissioned to work on this specific issue time to present it to the caucus in a more thought-out and subtle manner. The solution could involve continuing the ban on earmarks, but offering a more precise definition of earmarks that would exclude authorized infrastructure projects such as WRDA authorizations, which of course would be favorable to the Coalition's efforts. In fact, the new Chairman of the House Transportation and Infrastructure Committee, Congressman Bill Shuster, has stated publicly that he cannot write and pass an effective WRDA bill under the current earmark ban and is strongly encouraging his Republican co~leagues to change this policy. Assuming the House resolves the earmark issue, WRDA should begin to move in the House sometime in the spring of 2013 with substantial action occurring throughout the year. STRATEGY AND SCOPE OF WORK Given the current political climate surrounding WRDA and federal spending in general, it is imperative that we keep the Project visible and at the top of the list of the appropriate members of the California Congressional Delegation and the Senate EPWC and House Transportation and Infrastructure Committees ("T&IC"). The WRDA process is extremely competitive, and only the projects that are consistently and effectively promoted by project sponsors, both in Washington, D. C. and in local districts, will be included in the legislation. To date, officials from the North County Coalition and TFG have met with all of the representatives, or their staff, from San Diego and with senior staff members from Senator Feinstein and Senator Boxer's offices. We also have briefed senior staff members from the Senate EPWC and House T &IC to introduce them to the Project and seek their support for a WRDA authorization. The outcome of these meetings has been very positive, and it is necessary that we maintain this momentum throughout the WRDA, and, ultimately, the federal appropriations process. One of the most practical and meaningful actions that the Coalition can take to keep the Project relevant to the Congressional Delegation members and their staff is to promote and provide on-site visits to the various members of the Coalition and tours of specific components of the Project. Providing a visual reference for the staff to draw upon will prove invaluable as they begin to advocate on behalf of the Project throughout the WRDA and appropriations process. TFG would recommend that this effort be focused on the Congressional recess in August, during which many Washington, D.C. 3 staff work in the District office. We would assist you, with sending a formal letter, signed by the a Coalition representative to each member of the San Diego Congressional Delegation, and their key staff person(s) who handles water and related infrastructure issues, inviting them to a briefing during the August recess. This should continue to be an annual event throughout the long-term funding process of the Project. Demonstrating a broad range of public support for projects, such as the North San Diego County Regional Water Recycling Project, is also a critical element in establishing project priorities by most members of the California Congressional Delegation. As mentioned earlier, the WRDA process is very competitive and being ranked as a high priority project will be critical to having the Project authorized and subsequently funded through the federal appropriations process. Letters of support for the Project from various local government entities, private interest groups, and environmental organizations is the most practical and effective way to accomplish this task. To date, with TFG's assistance, Coalition officials have generated over twenty letters of support from various groups in San Diego County. We are currently in the process of updating these letters as the process begins to unfold for the 1131h Congress. TFG strongly encourages the Coalition to continue this effort to generate additional letters in order to create a level of support from the San Diego community that captures the attention of members of the San Diego Congressional Delegation. It cannot be overstated that the WRDA, and the subsequent federal appropriations process, for large-scale, water-related infrastructure projects is extremely competitive. There are thousands of worthwhile projects in California alone that meet the criteria for a WRDA authorization and are deserving of federal funding. This presents a difficult situation for Members of Congress and the House and Senate Committees that have jurisdiction over this process as they are forced to decide which projects to advance for consideration. Keeping the members of the Delegation informed of the merits of the Project on a regular basis will not only keep it fresh in their minds, but also demonstrate the importance of the Project to the citizens of San Diego County. As part of our representation of the Coalition, TFG stays in constant contact with staff members of the San Diego Congressional Delegation and the House T &IC and Senate EPWC. However, it is important for officials from the Coalition to be constantly engaged throughout this process. To that end, we encourage Coalition staff to make regular trips to Washington to promote the Project when the WRDA process begins to move. Persistence will be a major factor in our overall success in obtaining significant federal funding for the Project. FEES AND EXPENSES We propose to continue work under this extension at the current retainer of $10,000 per month. Out-of-pocket expenses include travel, taxi fares, telephone, mail, computer aided research, courier, and related charges directly attributable to our representation would continue to be billed. 4 ' . CONCLUSION Once again, thank you for providing us the opportunity to present you with this proposal to continue our work. Don't hesitate to contact me or Link Browder with any questions. Sincerely, Harold W. Furman II Chairman and Managing Director 5 JOINT LOBBYING AND COST SHARING AGREEMENT WHEREAS, Olivenhain Municipal Water District(OMWD), Carlsbad Municipal Water District (CMWD), Vallecitos Water District (VWD), Santa Fe Irrigation District (SFID), Vista Irrigation District (VI D), City of Oceanside (City), Leucadia Wastewater District (LWWD), San Elijo Joint Powers Association (SEJPA), Rincon del Diablo Municipal Water District (Rincon), and the City of Escondido (Escondido) have cooperated in order to develop a recycled water project for north San Diego County generally known as the North San Diego County Regional Recycled Water Project (NSDCRRWP); WHEREAS, OMWD, CMWD, LWD, and SEJPA have cooperated in the past to successfully lobby for federal grant funding support for the first north county regional recycled water project known as the North County Recycled Water Project; and WHEREAS, the parties have executed an agreement to retain RMC to prepare a feasibility report for the project; and WHEREAS, the parties to the present agreement desire to jointly lobby and cost share in order to pursue federal grant funding for the NSDCRRWP, a new project that would interconnect and maximize recycled water use in north San Diego County among the parties to this agreement to the benefit of all of these agencies' respective customers; and WHEREAS, the parties intend to seek a 20 million dollar authorization in Title XVI funding for the NCWPII, which represents a 25% federal cost share; and WHEREAS, the parties have already submitted for Proposition 84 funding via the San Diego County Water Authority, which is a permissible local share match to the federal Title XVI funding; and WHEREAS, the parties have also submitted for State Water Resources Quality Board (SWRQB) grant funding to offset the feasibility report costs; and WHEREAS, it is the intent and purpose of this Agreement to retain The Furman Group (Furman) in support of this agreement and lobbying effort for the NSDCRRWP and to specify the time and manner in which payment will be made to Furman. NOW, THEREFORE, the parties hereto agree as follows: 1. Term. The foregoing recitals are true and correct. The term of this agreement shall be for one year from March 1, 2011 . Amendments may be executed by the parties as necessary and agreed upon in writing. 1 2. Cost Share and Scope. The parties shall equally pay the costs of the Furman contract in order to seek an authorization for Title XVI funding in the amount of 20 million dollars, which represents a 25% cost share. The scope and fee for the Furman contract is attached as Exhibit A. Based on joint participation by 10 partners, the annual cost for services, not including out of pocket expenses, is anticipated to be $12,000 per participating agency per year. 3. Future Amendments Anticipated. It is the intent of the parties to pursue the federal authorization funding jointly and to cost share the costs of achieving the authorization equally. Once an authorization is secured via both the House and the Senate, the parties will enter into an amendment to this agreement whereby the annual costs for securing appropriations are shared based on each parties pro rata amount received for their agency's recycled projects. 4. Out of Pocket Expenses by Furman. Out-of-pocket expenses will be invoiced by Furman to OMWD on a monthly basis and will be shared equally by all parties. It is anticipated that out of pocket expenses shall not exceed a total of $8,000 in one year. In no event shall the total expenditures for services in #2 above and out of pocket expenses exceed $1,067 per month from each entity. 5. Payment. Each party shall make its semi-annual payments of $6,400 (for all costs related to #2 and #4 above) to OMWD according to the following schedule, and OMWD shall add its semi-annual payment to the rest of the payments, making one ( 1) full payment twice per year to Furman as described below: PAYMENT DUE TOOMWD DUE TO THE FURMAN GROUP First Payment April 1, 2011 April 15, 2011 Second Payment September 1, 2011 September 15, 2011 6. Other Parallel Agreements. The parties further understand that the Bureau of Reclamation requires feasibility plan to be submitted and approved prior to the authorization of Title XVI funding. The parties acknowledge that they are undertaking a separate agreement via an RFP to retain an engineering consultant to prepare a complete report and package that can be utilized to apply for federal and state funding and that may also be utilized in order to secure Bureau of Reclamation feasibility approval for the authorization under Title XVI. A separate consultant may be retained by the parties in the future for the processing offeasibility approval(s). 7. Administrator of Contract. OMWD shall act as the administrator for the Furman contract at no charge to the parties, provided that OMWD shall have no obligation to advance funds to Furman on behalf of the other parties if funds are not deposited in a timely manner with OMWD. OMWD will administer the Furman contract as a convenience only and assumes no other responsibility under said contract on behalf of the other parties. OMWD shall receive monthly reports from Furman and share them with the other parties. 2 All parties may agree to meet with Furman for consultation and reports as needed or requested. 8. Records. OMWD shall provide copies of all Furman invoices, payments to Furman, and fund requests upon request to the OMWD Finance Manager. All parties shall have the right to comment on these records and request corrections thereto if necessary. 9. Miscellaneous Costs. Any party's out of pocket costs for travel, meetings with the Bureau of Reclamation, House or Senate representatives that are incurred by the staff, individual agency's lobbyist or Board members of individual agencies shall be borne by each agency as their own costs in support of this Agreement and shall not be subject to reimbursement by other parties to this Agreement. 10. Ability to Terminate Agency Participation. In the event that any party to this Agreement notifies all other parties in writing of its intent to terminate participation in this joint Agreement, no refunds of any monies already paid will be reimbursed and the party will have no further interest or right in this Agreement or the federal or state funding being pursued. The remaining parties agree to adjust their future cost sharing on an equal basis among the remaining parties. 11. The effective date of this Agreement is --=-M-=-OJ..:.:....=..ck_l:...t.,---=-W-=--l-=-~ ___ _ DATED: __ ~~~~[(+-/~(( ____ I r DATED: _____ __ OLIVENHAIN MUNICIPAL WATER DISTRICT (OMWD) By: CARLSBAD MUNICIPAL WATER DISTRICT (CMWD) By: Glenn Pruim, Utilities Director 3 8. Records. OMWD shall provide copies of all Furman invoices, payments to Furman, and fund requests upon request to the OMWD Finance Manager. All parties shall have the right to comment on these records and request corrections thereto if necessary. 9. Miscellaneous Costs. Any party's out of pocket costs for travel, meetings with the Bureau of Reclamation, House or Senate representatives that are incurred by the staff, individual agency's lobbyist or Board members of individual agencies shall be bome by each agency as their own costs in support of this Agreement and shall not be subject to reimbursement by other parties to this Agreement. 10. Ability to Terminate Agency Participation. In the event that any party to this Agreement notifies all other parties in writing of its intent to terminate participation in this joint Agreement, no refunds of any monies already paid will be reimbursed and the party will have no further interest or right in this Agreement or the federal or state funding being pursued. The remaining parties agree to adjust their future cost sharing on an equal basis among the remaining parties. 11. The effective date of this Agreement is------------ DATED: OLIVENHAIN MUNICIPAL WATER DISTRICT (OMWD) DATED: _Y_-_L--(_ .... _1 _I - By: Kimberly Thorner, General Manager CARLSBAD MUNICIPAL WATER DISTRICT (CMWD) By: >Glenn Pruim, Utilities Director 3 II DATED: q /-z.e /zo(( ' I VALLECITOS WATER DISTRICT (VWD) By: ~·t/.~ Dennis Lamb, General Manager DATED: __________ __ DATED: __________ __ VISTA IRRIGATION DISTRICT (VID) By: Roy Coox, General Manager DATED: __________ __ CITY OF OCEANSIDE (CITY) By: Cari Dale, Water Utilities Director DATED: __________ __ LEUCADIA WASTEWATER DISTRICT (LWWD) By: Paul Bushee, General Manager 4 DATED: _____ _ VALLECITOS WATER DISTRICT (VWD) By: Dennis Lamb, General Manager DATED:------ DATED: ____;_lfr-/_tt-1-~-( _I _ VISTA IRRIGATION DISTRICT (VID) By: DATED:------CITY OF OCEANSIDE (CITY) By: Cari Dale, Water Utilities Director DATED:------LEUCADIA WASTEWATER DISTRICT (LWWD) By: Paul Bushee, General Manager 4 DATED: _____ _ VALLECITOS WATER DISTRICT (VWD) By: Dennis Lamb, General Manager DATED: _____ _ DATED: _____ _ VISTA IRRIGATION DISTRICT (VID) By: Roy Coox, General Manager DATED: ds ko I J DATED: _____ _ LEUCADIA WASTEWATER DISTRICT (LWWD) By: Paul Bushee, General Manager 4 DATED: __________ __ DATED: __________ __ DATED: __________ __ DATED: __________ __ DATED: 3 /r? /?_ oJ! ' VALLECITOS WATER DISTRICT (VWD) By: Dennis Lamb, General Manager SANTA FE IRRIGATION DISTRIC ~ By: ; ardin, General Manager VISTA IRRIGATION DISTRICT (VID) By: Roy Coax, General Manager CITY OF OCEANSIDE (CITY) By: Cari Dale, Water Utilities Director LEUCADIA (LWWD) By: 4 WASTEWATER DISTRICT DATED: tvlwc.kt I~ ZOt ( SAN ELIJO JOINT POWERS AUTHORITY (SEJPA) I DATED:. _________ _ DATED:. _________ _ By: ~,ff ~ C __..7 Mike Thornton, General Manager RINCON DEL DIABLO MUNICIPAL WATER DISTRICT (RINCON) By: Mitchell Dion, General Manager CITY OF ESCONDIDO (ESCONDID By: 5 DATED: _____ _ DATED:/J dt:// DATED: _____ _ SAN ELIJO JOINT POWERS AUTHORITY (SEJPA) By: Mike Thorn ton, General Manager RINCON DEL DIABLO MUNICIPAL WATER DISTRICT (RINCON) 5 EXHIBIT A 6 , r •• "· 1 • :. 1•1·.:- 1''' 11 { 'I ..... , . .!tf I, I 'I ' 'j ,• • j''t' ------------------------=------------ Ms. Kimberly Thomer General Manager Olivenhain Municipal Water District 1966 Olivenhain Road Encinitas, CA 92024 Dear Ms. Thorner: August 16, 201 0 Thank you for providing The Furman Group with this opportunity to present our qualifications to provide govenunent relations consuJting services to the Olivenhain Municipal Water District, the Santa Fe Irrigation District, the San Elijo Joint Powers Authority, the City of Carlsbad, the City of Oceanside, the Vallecitos Water District, the Leucadia Wastewater District, the City of Escondido, Rincon del Diablo Water District and the Vista Irrigation District ("Coalition"). We sincerely appreciate your interest in our firm and look forward to working with you should you and your Coalition members choose to retain The Furman Group. STATEMENT OF CAPABILITIES With offices in Washington, D.C. and San Diego, California, The Furman Group provides specialized consulting and government relations assistance to both public agencies and private clients in the defined areas of water and wastewater infrastructure development, and federal land use and environmental regulation. One of the firm's major practice areas is helping local governments access federal funds for public infrastructure projects. The Furman Group possesses a unique understanding of California water and envirorunental issues and maintains close ties to the California Congressional Delegation, the key infrastructure conun.ittees in the Congress as well as federal agencies with jurisdiction over water infTastructure programs, most notably the U.S. Army Corps of Engineers and U.S. Bureau ofReclamation. Founded in 1992 by Harold W. Furn1an II, a nationally recognized expert in water and infrastructure policy, The Fum1an Group's team of professionals has supported our clients in developing and financing important public works projects. Mr. Fum1an also serves as the Executive Director of the New Water Supply Coalition, a national advocacy group comprised of water agencies from across the country. The coalition is pursuing innovative legislation that would give water agencies the ability to issue tax credit bonds to finance desalination, water recycling and groundwater remediation projects. During the past two decades, our finn has assisted numerous communities and public water agencies throughout the country to secure access to over $300 million in federal funding for water, sanitation and other infrastructure projects. During that same period, we have planned and executed government relations strategies that have resulted in over $350 million in project authorizations for our clients. We have a demonstrated record of success. The following are a few examples of some of our notable accomplislunents: • • • • • • Over $300 million in appropriations for water projects since 1992; Successfully advocated for authorization of over $100 million through the Water Resources Development Act for water related Environmental Infrastructure and Rural Development Projects. These projects were funded through the U. S. Army Corps of Engineers; Conceived, drafted and advocated for the passage of the legislation that authorized the Bureau of Reclamation's Title XVI Water Recycling Program in 1992; Successfully advocated for the expansion of the Title XVI Program authorization to include five new projects in 1996; and four additional projects to date; Successfully advocated for the passage of an $85 million authorization for the clean up of the San Gabriel Groundwater Basin and a subsequent reauthorization for an additional $50 million for the project. Secured the appropriation of $78 million pursuant to that authorization; Assisted our clients in securing over $45 million in EPA Special Needs Grant appropriations for water and sewer system improvements. STRATEGY AND SCOPE OF WORK Based on recent conversations, we understand that the Coalition is seeking assistance in obtaining federal funding for a proposed joint water recycling project in North San Diego County. This project will expand the treatment and storage capacities at various facilities within Coalition member jurisdictions and will construct the necessary distribution lines to intercoiUlect all Coalition facilities to create an integrated recycled water system. Based on this information, we reconunend that the ·coalition seek a new Congressional authorization to receive funding from the Bureau of Reclamation ("Bureau") through the Title XVI Water Recycling Progran1. We propose to develop legislation that would authorize the Bureau to participate in the design, plannjng, and construction of the component projects associated with the North San Diego Joint Recycled Water Project. The Bureau would be authorized to contribute up to twenty five percent of the total costs of this project on a reimbursable 2 basis. We would seek to have this legislation introduced in the House of Representatives by Congressman Brian Bilbray who represents the service areas of the project. We would also seek to have a companion measure introduced in the United States Senate by Senator Dianne Feinstein. As you may recall, this is the same strategy that The Furman Group proposed for the North San Diego Area Water Recycling Project which ultimately resulted in a $20 million federal contribution to the project. Ensuring that this legislation is passed in a timely manner will require a significant an1ount of work. This will involve close coordination with the Committee staffs in the House and the Senate and the legislative staffs in the Members' offices. We would work with the professional staffs of the House Natural Resources Committee and the Senate Energy & Natural Resources Committee to ensure that prompt hearings will be held on the legislation so that it can proceed to a vote in both committees. We would also be working with you to prepare testimony to be presented at the hearing and to prepare our selected witnesses for the hearing. In addition, we would work with you to develop letters of support for the legislation from various cities, private interests, and environmental organizations. Once the project is authorized to receive federal funds, The Fmman Group would focus on the appropriations process. The annual appropriations bills that fund all functions of the federal government are the only pieces of legislation that Congress is absolutely required to pass during each legislative session. For this reason, the appropriations process is run under very strict deadlines, and having someone on the ground in Washington is critical. The Furman Group would handle all requirements asso!_::iated with tllis process and utilize our experience and strategic contacts with the appropriate committees to make the process run smoothly. This would include: drafting all request letters to the California delegation members who represent the Coalition member's service areas and working to ensure that these requests become a priority; coordinating visits to Washington for Coalition member officials by scheduling all appropriate meetings on Capitol Hill and with the Administration; assist the California delegation by drafting aU required request letters and completing all forms for the subcommittees by mandatory deadlines; and monitoring the movement of the legislation throughout the legislative process. As mentioned above, The Furman Group has a very successful track record in securing similar authorizations and subsequent appropriations for our clients. Combined witl1 our excellent working relationship with the California Congressional Delegation, tl1e House and Senate Energy and Natural Resources Conunittees and both the House and Senate Energy and Water Development Appropriations Committee staffs, we feel confident that we can be an effective advocate on your behalf. FEES AND EXPENSES The Furman Group provides professional government relations services to its clients based upon an annual retainer that may be paid monthly or quarterly (in advance) plus out of pocket expenses directly related to our representation. Out of pocket expenses 3 are invoiced on a monthly basis. Out-of-pocket expenses include travel, taxi fares, telephone, mail, facsimile, computer aided research, courier, and related charges directly attributable to our representation. Our retainers are based, in part, upon the time that we estimate the representation will require on the part of our professionals, the difficulty of the projects in comparison to other projects, and such intangibles as the amount of political capital that will be necessary for the firm to expend to accomplish the client's goals. Our proposed fee to undertake this representation would be $10,000 per month plus out-of-pocket expenses. CONCLUSION Once again, thank you for providing us the opportunity to present you with this proposal. In order to provide you with further insight into The Furman Group, we invite you to visit our website at www.FurmanGroup.com. I look forward to discussing our qualifications with you at a mutually convenient time. Sincerely, Harold W. Furman II Chairman and Managing Director 4