September 10, 2006


Monterey Peninsula Water Management District

5 Harris Court, Building G

Monterey, CA  93942


Attn: Mr. David Berger, General Manager


Dear Mr. Berger:

In response to questions raised by your committee requesting clarifications regarding the formation of our new consulting firm, Pueblo Water Resources, Inc. (PWR), we are pleased to offer the following background information.

With respect to our summary of estimated fees and corporate overhead, Pueblo’s policies are as follows:






By separating out ODC costs, our overhead is kept low, which benefits all of our clients.  All ODC costs are billed only as incurred, and are obtained at the most competitive rates available at the time.  Our budgetary estimates developed in the proposal phase of the work are our best, conservative, opinion of what the project needs will be; we only bill for those services actually used for the project, and will not exceed our proposal estimate without prior, written authorization from the District.


The Santa Margarita Test Well Project is very important to Pueblo Water Resources because it represents the completion of a program that we have individually championed since 1997; we still firmly believe that the Districts forward looking implementation of ASR on the Monterey Peninsula is the ultimate solution to rectify environmental damage to the Carmel River while providing a safe and reliable water supply for the community.  We look forward to continuing our work with MPWMD on this important project under our new company.

If you have any further questions or require additional information, please call us.





Pueblo Water Resources, Inc.

Stephen P. Tanner, P.E.