ITEM: ACTION ITEMS

7. CONSIDER APPROVAL OF ADDENDUM NO. 2 TO THE MEMORANDUM OF AGREEMENT BETWEEN MONTEREY PENINSULA WATER MANAGEMENT DISTRICT, MONTEREY COUNTY WATER RESOURCES AGENCY, AND THE PAJARO VALLEY WATER MANAGEMENT AGENCY

Meeting Date: August 28, 2003 MPWMD Budget: unbudgeted

Program/Line Item No.: N/A

Staff Contact: Henrietta Stern Cost Estimate: N/A

General Counsel Approval: Reviewed MOA and staff note

Committee Recommendation: Water Demand Committee provided guidance on text at its June 19, 2003 meeting

CEQA Compliance: N/A

SUMMARY: The Board will consider the Version 8 text of a draft Addendum No. 2 (Exhibit 7-A) to an original December 15, 1991 Memorandum of Agreement (MOA) between the Monterey Peninsula Water Management District (MPWMD), Monterey County Water Resources Agency (MCWRA) and Pajaro Valley Water Management Agency (PVWMA). The original December 15, 1991 MOA together with the September 28, 1992 Addendum No. 1 are provided as Exhibit 7-B.

The intent of Addendum No. 2 is to update the language in Addendum No. 1 to reflect today’s situation, where there are overlapping jurisdictional boundaries in the former Fort Ord. The proposed Addendum No. 2 includes an attached map showing the overlapping boundaries of the MPWMD, MCWRA, the former Fort Ord and the Seaside Groundwater Basin (referred to herein as the “Seaside Basin”).

Addendum No. 2 includes language that reflects the current water supply setting; clarifies under what circumstances the respective agencies will assert jurisdictional authority; and under what circumstances they will defer to other agencies’ ordinances. Specifically, the group concurred that MPWMD should assert its authority to protect the Seaside Basin whenever a proposed action would result in a “substantive physical effect”. In turn, MCWRA has the regulatory authority when water supply is derived from sources outside the Seaside Basin and would not have a substantive physical effect on the Seaside Basin .

RECOMMENDED ACTION: District staff recommends that the Board approve the Version 8 text of draft Addendum No. 2 (Exhibit 7-A) and authorize the Chairperson to sign the final agreement. Addendum No. 2 will be forwarded to MCWRA and PVWMA for their board-level review. It is understood that any substantive change to Addendum No. 2 suggested by another entity would be brought back to the MPWMD Board for formal authorization before the Chairperson signs a revised agreement.

MPWMD staff met with staff from MCWRA, Fort Ord Reuse Authority (FORA), Marina Coast Water District (MCWD), and the City of Seaside on April 16, July 15 and August 4, 2003 to discuss text refinements. These entities also attended MPWMD Board and committee meetings that addressed this issue. PVWMA participated in text review via e-mail and phone. All participants have confirmed verbally or via e-mail that Version 8 of Addendum No. 2 (Exhibit 7-A) is acceptable.

BACKGROUND: The original MOA between MPWMD, MCWRA and PVWMA was prepared on December 15, 1991 to address the fact that there were overlapping jurisdictional boundaries between MPWMD and MCWRA, and between MCWRA and PVWMA. The MPWMD Board authorized signing the MOA at the December 16, 1991 meeting. The MOA was not actually executed by the parties until mid-1993. Addendum No. 1 was prepared on September 28, 1992 to address specific issues relating to MPWMD and MCWRA in what was the Fort Ord area at that time. The MPWMD Board authorized signing Addendum No. 1 at the January 28, 1993 meeting. Addendum No. 1 was also executed by the parties in mid-1993.

Addendum No. 2 was developed to respond to concerns about MPWMD Ordinance No. 105 expressed in November-December 2002 by agencies involved in the implementation of the Fort Ord Reuse Plan. As described in the November and December 2002 Board packets for Ordinance No. 105, the agencies were concerned that regulation of water distribution systems within the MPWMD boundaries that derive their source of supply from the Salinas Groundwater Basin violated the terms of the September 1992 Addendum No. 1. The District wants to ensure its ability to protect the Seaside Basin, which underlies much of the Fort Ord area within the MPWMD boundaries.

Draft 1 of the MOA was on the June 16, 2003 MPWMD agenda for Board feedback; due to time limitations, the item was referred to the June 19, 2003 Water Demand Committee meeting for detailed review. Based on Committee and affected agency input, several versions of the text were developed from late June through early August 2003.

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