Saturday, May 12, 2012

CITY OF PACIFIC GROVE CITY COUNCIL: Agreement initiating a relationship with Nader Agha to develop a water project able to meet the needs of Pacific Grove and the Monterey Peninsula


UPDATE:  The May 16, 2012 City of Pacific Grove City Council meeting has been continued to Wednesday, May 23, 2012 at 6:00 P.M. for Open Session at City Council Chambers, 300 Forest Avenue, Pacific Grove.  Regarding 14. UNFINISHED BUSINESS A. Agreement initiating a relationship with Nader Agha to develop water project able to meet the needs of Pacific Grove and the Monterey Peninsula
Reference: Thomas Frutchey, City Manager 
Recommended Action:
1. Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove.
2. Provide direction on any remaining outstanding issues related to the agreement. This preliminary agreement establishes the parameters and payment provisions for the completion of the second agreement. 3. Direct staff to file application with the CPUC by May 25, 2012 with fees paid by Nader Agha.


ABSTRACT:  On Wednesday, May 16 2012 at 6:00 P.M., the City of Pacific Grove City Council will conduct a Regular Meeting; the REGULAR MEETING AGENDA includes an agenda item UNFINISHED BUSINESS, Agreement initiating a relationship with Nader Agha to develop a water project able to meet the needs of Pacific Grove and the Monterey Peninsula.  The Recommended Action:  Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove and Provide direction on any remaining outstanding issues related to the agreement.  This preliminary agreement establishes the parameters and payment provisions for the completion of the second agreement. Importantly, the DISCUSSION states, as follows:

To qualify for the bond funding necessary for the People’s Project, the City and Mr. Agha must ensure that the CPUC directs Cal-Am to purchase the water produced by the People’s Project for conveyance to the ratepayers...
To appear in the CPUC proceeding, the City and Mr. Agha must obtain qualified legal counsel, bring that counsel fully up to speed, and ensure counsel has adequate time to develop well reasoned and persuasive pleadings.
One of the primary underlying principles required by the Council in the formation of the relationship with Mr. Agha is that the City’s General Fund and overall fiscal health not be placed at any risk. As of the completion of preparation of this agenda packet, on Friday, May 11, 2012, the proposed initial agreement is still being negotiated in two areas to ensure consistency with that principle:
Assurance that the $600,000 Mr. Agha is committing to the development of the People Project’s EIR, permit applications, and other efforts will be available when needed; and
Indemnification of the City, to protect the City in the event of lawsuits, regulatory requirements of the CPUC, Coastal Commission, or other permitting bodies, or any other unintended sources of expenses resulting from the City’s participation in the Project.
Relevant sections of the REGULAR MEETING AGENDA are reproduced and the AGENDA REPORT is embedded, including the FORMATION AGREEMENT BETWEEN THE CITY OF PACIFIC GROVE AND MOSS LANDING COMMERCIAL PARK, LLC.

CITY OF PACIFIC GROVE
CITY COUNCIL
SPECIAL AND REGULAR MEETING AGENDAS
Wednesday, May 16, 2012
Council Chambers – City Hall – 300 Forest Avenue, Pacific Grove, CA

REGULAR MEETING AGENDA

6:00 p.m.
CALL TO ORDER

Mayor Garcia, Councilmembers Kampe, Cohen, Cuneo, Fischer, Huitt and Miller

14.  UNFINISHED BUSINESS

Reference:  Thomas Frutchey, City Manager

Recommended Action:  
  1. Receive an update on the agreement to initiate and provide funding to establish a public/private partner relationship between Nader Agha/Moss Landing Commercial Park, LLC and the City of Pacific Grove.
  2. Provide direction on any remaining outstanding issues related to the agreement.  This preliminary agreement establishes the parameters and payment provisions for the completion of the second agreement
Pacific Grove Agreement initiating a relationship with Nader Agha to develop a Water Project

1 comment:

Anonymous said...

Carmel has not provided leadership or made a positive contribution to finding a solution for the peninsula water crisis. In fact, quite the opposite is true. The previous mayor and city councils have spent taxpayer monies hiring attorneys to fight the cease and desist order. It has been at the eleventh hour that the peninsula mayors formed the JPA and held public meetings, but they have not moved beyond talk despite all the rhetoric from then Mayor Sue McCloud on the need to front-load the process with action. It remains to be seen whether or not the new mayor and city council understands that leadership means taking a risk with the unknown and moving beyond talk and providing results in the form of a new water supply by 2017.