MPWMD BOARD MEETING--AUG 20, 2007--EXHIBIT 17B--MBRWSLTF MEMORANDUM OF UNDERSTANDING (FINAL DRAFT NO. 6)

EXHIBIT 17-B

FINAL DRAFT (No. 6)

Monterey Bay Regional Water Solutions

Leadership Task Force

Memorandum of Understanding

This Memorandum of Understanding (hereinafter referred to as “MOU”) is made and entered into as of the first day of____________, among the signatory public agencies executing below.

WHEREAS, on November 30, 2004 the Board of Supervisors of the Monterey County Water Resources Agency (hereinafter referred to as “Agency”) determined that the Agency would initiate a collaborative process with the County, specified Cities and public water/wastewater agencies for development of regional water supply solutions for the Monterey Peninsula, and the northern communities of Monterey County, including Salinas; and,

WHEREAS, on April 19, 2005 the Board of Supervisors directed the Agency’s General Manager to draft an appropriate agreement to form a Water Authority (formerly known as Regional Urban Water Supply Board) to be comprised of members from the County Board of Supervisors, City Councils, and members of Boards of Directors of public water and wastewater agencies (hereinafter referred to as “Participating Entities”), to engage a program management firm to assist in developing and implementing a strategy to meet the long-term urban water supply needs of the coastal and northern region of Monterey County; and to identify funding sources for the formation of the Monterey Bay Regional Water Authority (hereinafter referred to as “MBRWA”), and

WHEREAS, the Fort Ord Reuse Authority, Moss Landing Harbor District, U.S. Department of Defense installations and other public entities are interested in analyzing potential regional water supply solutions for the Monterey Peninsula and northern Monterey County, and also would be considered Participating Entities; and

WHEREAS, the Participating Entities signatory to this MOU desire to cooperatively engage in water supply planning and jointly analyze proposed projects for the coastal and northern urban areas of Monterey County; and

WHEREAS, the Participating Entities are able to furnish certain start-up resources and in-kind assistance in support of this MOU; and

WHEREAS, the Division of Ratepayer Advocates (hereinafter referred to as “DRA”) of the California Public Utilities Commission, has offered to facilitate a series of regional water supply planning dialogues and to include affected public and private entities along with California-American Water Company; and

WHEREAS, it is anticipated that the outcome of the DRA regional water supply reliability dialogues will be to identify alternative regional projects and water management programs that would be cost effective for ratepayers, have great regional benefit and result in an implementation strategy; and

WHEREAS, this MOU provides the most practical method to expeditiously create a leadership and management framework responsible for developing (during Phase 1) and implementing (in Phase 2) a strategy to comprehensively achieve regional water supply solutions, as may be identified in the strategy developed during Phase 1; and

WHEREAS, the term of this MOU will expire three years after the effective date stated above, or upon formation of the MBRWA, whichever comes first; and

WHEREAS, the Participating Entities are committed to considering the establishment of the MBRWA; and

WHEREAS, the Participating Entities recognize and respect that member entities exercise independent control over their individual sub-regional projects.

NOW, THEREFORE, BE IT RESOLVED, that a Leadership Task Force comprised of a representative of the governing body of each of the Participating Entities (hereinafter referred to as “LTF”), and a Technical Advisory Committee comprised of the executive manager of each of the Participating Entities (hereinafter referred to as “TAC”), are hereby established to carry out the responsibilities described in this MOU; and

BE IT FURTHER RESOLVED that, through this MOU, the Participating Entities desire to give the LTF a scope of responsibility to include the development of a proposed strategy for consideration by the Participating Entities, that would meet the long-term urban water supply needs, through publicly-owned sub-regional project(s), regional desalination project(s) or other regional public project(s), of the Monterey Peninsula and the communities of northern Monterey County, including Salinas; and

BE IT FURTHER RESOLVED that the LTF is directed to take the preliminary steps necessary for the Participating Entities to consider eventual formation of the MBWRA to fully accomplish the purposes described in this MOU; and

BE IT FURTHER RESOLVED that the LTF, with technical assistance by the TAC, will 1) participate in the DRA convened regional water supply reliability dialogues that involve ample public input in development of any resulting plan; 2) review of all regional and sub-regional water supply projects to ensure that through the collective efforts of all member entities the long-term urban water supply needs of the region are fully and most cost-effectively met; and 3) maximize the region’s overall competitiveness to attract state and federal grants to fund such projects; and

BE IT FURTHER RESOLVED that each of the Participating Entities, if possible, shall contribute the technical resource and in-kind assistance necessary to effectively implement the scope of responsibility described above; and

BE IT FURTHER RESOLVED that each Participating Entity demonstrates its financial commitment to the LTF by making a monetary contribution to defray technical analytical expenses that the LTF may require that is compatible with each Participating Entity’s budget.

(Add additional signature lines for each Participating Entity, as needed, below)

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