ITEM:		CONSENT CALENDAR
2.	APPROVE AMENDMENT TO AGREEMENT FOR SALE OF RECYCLED WATER BETWEEN MPWMD AND ROBERT LOUIS STEVENSON SCHOOL
Meeting Date:			February 24, 2005	Budgeted:	N/A
From:			David A. Berger,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Andrew Bell	Cost Estimate:	N/A
General Counsel Approval: Yes
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: On November 14, 2004, the Board approved a set of ten agreements related to the Carmel Area Wastewater District/Pebble Beach Community Services District Recycled Water Project Expansion. Five of the agreements are Agreements for Sale of Recycled Water, each between MPWMD and one of the five recycled water users (Cypress Point Club, Monterey Peninsula Country Club, Pebble Beach Company, Poppy Holding, and Robert Louis Stevenson School). Following approval of the agreements by the Board, Brian Call, attorney for Stevenson School, requested that the following language, which is included in the current Agreement for Sale of Reclaimed Water between MPWMD and Stevenson School (see Exhibit 2-A, January 24 2004 letter from Mr. Call):

“Special Circumstances of Buyer in Future Water Supply Emergencies. The parties acknowledge that Buyer operates the School as a private, non-profit secondary educational institution, and that the athletic fields to be irrigated with Reclaimed Water are an integral part of the School’s campus which also includes facilities which require potable water for domestic purposes such as classroom and dining facilities for resident and day students and faculty, resident student dormitories and faculty housing. The parties further acknowledge that Buyer’s ability to reduce potable water use for the domestic purposes described above is limited, on account of permanent conservation measures implemented by Buyer, and that Buyer, to fully meet the potable water reductions required by water rationing in past water supply emergencies, has relied on reducing potable water irrigation of the athletic fields. WMD recognizes and agrees that Buyer’s ability to reduce its total Cal-Am water consumption during water supply emergencies and/or water rationing will be diminished as a result of Buyer’s participation in the Reclamation Project.

“In the event that, after the Commercial Operation Date, WMD declares a water supply emergency and/or imposes water rationing on users of potable water within the Cal-Am service area, WMD agrees that consideration shall be given to Buyer’s participation in the Reclamation Project and the resulting effect on Buyer’s ability to comply with the water rationing requirements effective at that time, so that Buyer does not suffer a detriment or disadvantage in Buyer’s ability to meet the water rationing requirements them in effect on account of Buyer’s participation in the Reclamation Project. This consideration shall not bind or limit the WMD Board’s discretion.” (Section 6.4 of December 15, 1992 Agreement for Sale of Reclaimed Water between MPWMD and Stevenson School)

Representatives of the other four recycled water users have agreed to the addition of this language to the new agreement with Stevenson School (see Exhibit 2-B, January 31, 2005 e-mail from Mark Stilwell representing Pebble Beach Company, and Exhibit 2-C, February 3, 2005 letter from Lloyd Lowrey representing the Independent Reclaimed Water Users Group [Cypress Point Club, Monterey Peninsula Country Club, and Poppy Holding]).

RECOMMENDATION: The adoption of the Consent Calendar will authorize the General Manager to execute the Agreement for Sale of Recycled Water between MPWMD and Stevenson School with the inclusion of Section 6.4 of the Agreement for Sale of Reclaimed Water between MPWMD and Stevenson School dated as of December 15, 1992.

BACKGROUND: In 1992, the District executed agreements with all five users of water from the CAWD/PBCSD Reclaimed Water Project. Four of the agreements, with Cypress Point Club, Monterey Peninsula Country Club, Pebble Beach Company, and Poppy Holding, contain identical provisions except for those relating to the facilities of each user. The fifth agreement, with Stevenson School, contains an additional section (Section 6.4) based on conditions considered unique to the school. This addition was approved by the Board on December 14, 1992 (see Exhibit 2-D, staff note from December 14, 1992 Board meeting, and Exhibit 2-E, December 21, 1992 letter from Margo Nottenkamper, MPWMD, to George R. Walker, attorney representing Stevenson School)

EXHIBITS

2-A January 24 2004 letter from Brian D. Call to Andrew M. Bell

2-B January 31, 2005 e-mail from Mark Stilwell to Andy Bell

2-C February 3, 2005 letter from Lloyd Lowrey to Dave Berger

2-D staff note from December 14, 1992 Board meeting

2-E December 21, 1992 letter from Margo Nottenkamper, MPWMD, to George R. Walker

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