MPWMD BOARD MEETING--JULY 16, 2007--EXHIBIT 15D--DRAFT MOU FOR IRWM IN THE MONTEREY PENINSULA, CARMEL BAY, AND SOUTH MONTEREY BAY

Exhibit 15-D

Memorandum of Understanding for

Integrated Regional Water Management in the

Monterey Peninsula, Carmel Bay, and South Monterey Bay Region

1. PURPOSE

The purpose of this Memorandum of Understanding (MOU) is to recognize a mutual understanding among entities in the greater Monterey Bay area regarding their joint efforts toward Integrated Regional Water Management (IRWM) planning. That understanding will continue to increase coordination, collaboration and communication for comprehensive management of water resources in the Monterey Peninsula, Carmel Bay, and South Monterey Bay Region (Region).

2. RECITALS

A. The State of California desires to foster Integrated Regional Water Management (IRWM) planning and encourages local public, non-profit, and private (for profit) entities to define planning regions appropriate for managing water resources and to integrate strategies within these planning regions.

B. Water resources management authority in the Region is currently distributed among various public agencies with a range of legal powers and regulatory responsibilities. These public agencies have definite jurisdictional boundaries, whereas sensible water resources planning and management frequently requires actions in multiple jurisdictions. Non-public entities within the Region have considerable interests in cooperating with public entities to protect, manage, and enhance water resources within the Region.

C. Four public entities and one non-profit entity in the Region with responsibility and interests in management of water resources have agreed to form a Water Management Group for the purposes of developing and implementing projects consistent with the guidelines set by the State of California for IRWM. These entities are: 1.) the Big Sur Land Trust (BSLT), a 501 (c) 3 organization; 2.) the City of Monterey; 3.) Monterey Regional Water Pollution Control Agency (MRWPCA); 4.) the Monterey County Water Resources Agency (MCWRA); and 5.) the Monterey Peninsula Water Management District (MPWMD).

D. The Water Management Group has defined an appropriate planning Region that takes into consideration jurisdictional limits, powers and responsibilities, and watershed and groundwater basin boundaries. The Water Management Group is taking the lead in overseeing and implementing a detailed IRWM Plan within the planning Region. The Region is generally described as encompassing approximately 347 square miles and consists of groundwater basins and coastal watershed areas contributing to the Carmel Bay and south Monterey Bay between Pt. Lobos on the south to Sand City on the north. The Region includes about 38 miles of the coast within the Monterey Bay National Marine Sanctuary, three Areas of Special Biological Significance (Pt. Lobos, Carmel Bay, and Pacific Grove), the Cities of Carmel-by-the Sea, Del Rey Oaks, Monterey, Pacific Grove, Sand City, Seaside, and unincorporated portions of Monterey County including the Carmel Valley watershed (255 square miles), Pebble Beach, the Carmel Highlands and portions of the Seaside Groundwater Basin adjacent to Highway 68 (also known as Canyon Del Rey).

E. The entities signatory to this MOU desire to link and integrate efforts to jointly oversee the development and implementation of a comprehensive Integrated Regional Water Management Plan for the Region.

3. GOALS

The goals of the collaborative effort undertaken pursuant to this Memorandum of Understanding are:

3.1 To develop and adopt a comprehensive IRWMP for the Region that will consider the strategies that are required by the State under CWC 79562.5 and 79564 including at a minimum: ecosystem restoration, environmental and habitat protection and improvement, water supply reliability, flood management, groundwater management, recreation and public access, storm water capture and management, water conservation, water quality protection and improvement, water recycling, and wetlands enhancement and creation. Optional additional elements that may be considered include: conjunctive use, desalination, imported water, land use planning, nonpoint source pollution control, promotion of the steelhead run, surface storage, watershed planning, water and wastewater treatment, and water transfers.

3.2 To develop a comprehensive IRWMP for the Region that incorporates water supply, water quality, flood and erosion protection, and environmental protection and enhancement objectives.

3.3 To improve and maximize coordination of individual public, private, and non-profit agency plans, programs and projects for mutual benefit and optimal gain within the Region.

3.4 To help identify, develop, and implement collaborative plans, programs, and projects that may be beyond the scope or capability of individual entities, but which would be of mutual benefit if implemented in a cooperative manner..

3.5 To facilitate regional water management efforts that include multiple water supply, water quality, flood control, and environmental protection and enhancement objectives.

3.6 To foster coordination, collaboration and communication between stakeholders and other interested parties, to achieve greater efficiencies, enhance public services, and build public support for vital projects.

3.7. To realize regional water management objectives at the least cost possible through mutual cooperation, elimination of redundancy, and enhanced regional competitiveness for State and Federal grant funding.

4. DEFINITIONS

4.1 Integrated Regional Water Management Plan (IRWMP or IRWM Plan). The plan envisioned by state legislators and state resource agencies that integrates the strategies, objectives, and priorities for projects to manage water resources proposed by public entities, non-profit entities, and stakeholders within a defined Planning Region. The minimum plan standards are as shown in Appendix A of “Integrated Regional Water Management Grant Program Guidelines, November 2004, Department of Water Resources and State Water Resources Control Board, Proposition 50, Chapter 8,” as revised.

4.2 Integration. The combining of water management strategies and projects to be included in an IRWMP.

4.3. Lead Agency. The Monterey Peninsula Water Management District is designated by the Water Management Group to lead the development or implementation of an Integrated Regional Water Management Plan for the Region.

4.4. Non-profit Agency. A 501 (c) (3) corporation, conservancy, group or other organization involved in water resources management in the Region.

4.5 Private Agency. A private or publicly held for-profit corporation or property owner involved in water resources management in the Region

4.6. Project. A specific project that addresses a service function.

4.7. Public Agency. A state-authorized water district, water agency, water management agency or other public entity, be it a special district, city or other governmental entity, responsible for providing one or more services in the areas of water supply, water quality, wastewater, recycled water, water conservation, stormwater/flood control, watershed planning and aquatic habitat protection and restoration.

4.8. Region. The area defined by the Water Management Group (WMG) consisting of watersheds, sub-watersheds and groundwater basins under the jurisdiction of one or more entities within the WMG.

4.9. Service Function. A water-related individual service function provided by a private, public, or non-profit entity, i.e. water supply, water quality, wastewater, recycled water, water conservation, stormwater/flood protection, watershed planning, recreational facilities, and habitat protection and restoration.

4.10 Signatory Entity. A public, private, or non-profit entity within the Region that is signatory to this MOU.

4.11 Stakeholder. A non-signatory public, private, or non-profit agency identified in the IRWM Plan with an interest in water resources management within the Region.

4.12 Technical Advisory Committee. The committee organized to advise the Water Management Group and Stakeholders concerning the IRWM Plan. The group is comprised of individuals with technical backgrounds in the fields of marine and freshwater biology, ecology, geology, engineering, hydrogeology, planning, resource conservation, riparian systems, water conservation, and water quality.

4.13 Water Management Group. The group of entities that takes the lead in overseeing the development and implementation of the Integrated Regional Water Management Plan within the Planning Region (the Monterey Regional Water Pollution Control Agency, the Monterey County Water Resources Agency, the Monterey Peninsula Water Management District, the City of Monterey, and the Big Sur Land Trust).

4.14. Water Management Strategies. Plans for and activities to be considered in an IRWMP include, but are not limited to, ecosystem restoration, environmental and habitat protection and improvement, water-supply reliability, flood management, groundwater management, recreation and public access, storm water capture and management, water conservation, water quality improvement, water recycling, and wetlands enhancement and creation.

5. IRWMP PARTICIPANTS

5.1 Adopting Entities. The entities in the Region that participate in the development, adoption, and implementation of the Integrated Regional Water Management Plan for the Region. Each entity intending to carry out a project proposed in the IRWMP must formally adopt the IRWMP or provide written substantiation of acceptance by the governing authority of the entity. For a public agency, adoption of the IRWMP is by formal resolution of the governing body. For a non-profit or for-profit entity, proof of acceptance of the IRWMP by the equivalent of a public agency governing body is required (e.g., by a board of directors or other management entity).

5.2. Stakeholders. Entities, such as other public, private, and non-profit entities, business and environmental groups, that are considered valuable contributors to the understanding and management of the Region’s water resources.

5.3. Regulatory Agencies. These agencies, including, but not limited to, the Central Coast Regional Water Quality Control Board, California Coastal Commission, U.S. Army Corps of Engineers, California Public Utilities Commission, National Marine Fisheries Service (NOAA Fisheries), U.S. Fish and Wildlife Service, and the California Department of Fish and Game, will be invited to participate in the development and implementation of the IRWMP.

5.4 Water Management Group. The group of entities that takes the lead in developing and implementing an Integrated Regional Water Management Plan within the Planning Region (the Monterey Regional Water Pollution Control Agency, the Monterey County Water Resources Agency, the Monterey Peninsula Water Management District, the City of Monterey, and the Big Sur Land Trust).

6. MUTUAL UNDERSTANDING

6.1. Subject matter scope of the IRWMP. The IRWMP for the Region will include, but is not limited to, water supply, water quality, wastewater, recycled water, water conservation, stormwater/flood control, watershed planning, erosion prevention, and habitat protection and restoration. It is acknowledged that the proposals contained in the IRWMP may be based, in part, on the land-use plans of the general purpose local governments located within the Region. Therefore, the resultant IRWMP will by design have incorporated the land-use plans and assumptions intrinsic to the respective water-related service function.

6.2. Geographical scope of the IRWMP. The area for this Memorandum is generally defined as the watersheds and associated groundwater basins contributing to the south Monterey Bay and Carmel Bay that are under the jurisdiction and care of the Water Management Group. However, the geographic scope of the IRWM Plan may be enlarged to include projects involving water resource management and entities outside of the defined Region.

6.3. Approach to developing the IRWMP. The Lead Agency will provide a draft IRWMP to the Water Management Group and other public, private, and non-profit entities for review and comment. It will be the responsibility of each entity signatory to this Memorandum to provide the Lead Agency with information described in the draft IRWMP concerning project proposals or to identify the need for a water management strategy for each service function provided by a signatory entity.

In order to be part of a final IRWMP, all proposals for development of management plans and project proposals must meet the standards identified in the draft IRWM Plan for the Region.

A technical advisory committee consisting of staff representatives from the Water Management Group, other Stakeholders and such other organizations as may become contributing entities, will review proposed management plans and project proposals for consistency with the draft IRWMP and recommend a prioritized list of projects to be carried out within the Region. The Water Management Group and Stakeholders will meet to review the recommendation made by the TAC.

6.4. Approval of final IRWM Plan and prioritized project list. Approval of the final Plan and project list will be by consensus of the Water Management Group and Stakeholders. If a consensus is not reached after good faith efforts by all parties to agree, the Water Management Group may meet to develop a recommendation for consideration by the Stakeholder Group.

6.5. Adoption of the IRWMP. Plan adoption will occur by approval of the governing board of each entity.

6.6 Amendment of IRWMP. The IRWM Plan and prioritized project list may be amended from time to time by consensus at a meeting of the Water Management Group and Stakeholders. Any member of the Water Management Group or Stakeholders may request that the Lead Agency convene a meeting of the Water Management Group and Stakeholders for the purposes of amending the IRWM Plan. However, it is anticipated that the IRWMP or prioritized project list will be amended no more frequently than annually. An amended IRWM Plan must by consistent with State IRWM standards as described in Definition 4.1 “Integrated Regional Water Management Plan” and any subsequent revisions by the State to IRWM guidelines.

6.7. Project Implementation. Project proponents will be responsible for completing proposed projects and providing project reports to the Lead Agency.

6.8 Project Monitoring. The Water Management Group will be responsible for monitoring the implementation of the IRWMP. The technical advisory committee will regularly report to the General Managers and Governing Boards of the Water Management Group regarding progress on the development and implementation of the IRWMP. The Lead Agency will be responsible for coordinating data collection and dissemination.

6.9 Grant Applications. The Water Management Group will designate a Lead Agency to apply for grant funds. The Lead Agency for each grant application should have a mission and expertise that is consistent with the purpose of the grant being applied for.

6.10 Grant Awards and Agreement. The Lead Agency will be the grantee and administer the grant on behalf of the Water Management Group and Stakeholders.

6.11 Termination. An entity signatory to this MOU may withdraw from participation upon 30 days advance notice to the other signatory entities, provided it agrees to be financially responsible for any previously committed, but unmet resource commitment.

6.12. Personnel and financial resources. It is expected that the General Managers and/or other officials of each entity signatory to this MOU will periodically meet to insure that adequate resources are available to implement the IRWM Plan.

6.13. Other on-going regional efforts. Development of the IRWMP is separate from efforts of other organizations to develop water-related plans on a regional basis around Monterey Bay and the Central Coast. As the IRWMP is developed and implemented, work products may be shared to provide other entities and groups with current information.

7. SIGNATORIES TO THE MEMORANDUM OF UNDERSTANDING

We, the duly authorized undersigned representatives of our respective entities, acknowledge the above as our understanding of the intent and expected outcome in overseeing the development and implementation of an Integrated Regional Water Management Plan for the Monterey Peninsula, Carmel Bay, and South Monterey Bay Region.

WATER MANAGEMENT GROUP