Board approves amendment clarifying finances and audits for Monterey One Water agreement
Summary
The Board approved Amendment 4 to the 2015 amended and restated water recycling agreement with Monterey One Water clarifying reporting, separate funding accounts for project components, indirect cost allocation and timelines for audits and reconciliations; Monterey One Water approved the amendment June 30.
Monterey County supervisors on July 8 approved Amendment 4 to the county's 2015 amended and restated agreement with Monterey One Water, a recurring partner in regional recycled-water projects.
Staff said the amendment responds to recommendations from an independent financial audit and clarifies financial and administrative procedures for the Castroville Seawater Intrusion Project (CSIP), the Salinas Valley Reclamation Plant (SVRP) and the Salinas River Diversion Facility (SRDF). Specific changes include separate funds and reporting for each project component, clarified budget and approval processes distinguishing operations and maintenance from capital expenditures, and a temporary indirect-cost allocation rate (14.5 percent) while the agencies develop a new, collaborative cost-allocation plan.
The amendment also tightened deadlines for annual financial audits (targeted by Jan. 31) and for reconciliation of accounts (by Feb. 15) so year-end reports feed into timely reconciliations. County and Monterey One Water finance staff worked jointly on the changes, and both boards had approved the amendment in May and June respectively; Monterey One Water's board approved Amendment 4 at its June 30 meeting.
The board approved the amendment by motion and roll call vote. Supporters said the changes increase transparency and reduce the risk of future accounting disagreements. County and Monterey One Water officials said the amendment is one step in ongoing collaboration and noted further work remains on other clauses of the multi-decade agreement.
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