MPWMD BOARD MEETING--FEB 23, 2012--ITEM 17--AUTHORIZE THE GENERAL MANAGER TO DEVELOP A DRAFT MEMORANDUM OF UNDERSTANDING BETWEEN THE MPWMD, MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY, AND CALIFORNIA-AMERICAN WATER REGARDING JOINT FUNDING OF A GROUNDWATER REPLENISHMENT PROJECT

ITEM:		ACTION ITEM

17.	AUTHORIZE THE GENERAL MANAGER TO DEVELOP A DRAFT MEMORANDUM OF UNDERSTANDING BETWEEN THE MPWMD, MONTEREY REGIONAL WATER POLLUTION CONTROL AGENCY, AND CALIFORNIA-AMERICAN WATER REGARDING JOINT FUNDING OF A GROUNDWATER REPLENISHMENT PROJECT

Meeting Date:			February 23, 2012	Budgeted:	N/A

From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:

Prepared By:			David J. Stoldt	Cost Estimate:	N/A

General Counsel Review: N/A
Committee Recommendation: The Water Supply Planning Committee reviewed this item on February 15, 2012 and recommended approval by a vote of 3 (yes) to 0 (no).
CEQA Compliance: N/A

SUMMARY: The General Manager met with representatives of MRWPCA, The County WRA, and Cal-Am on February 6^th to discuss how best to fund and construct the Groundwater Replenishment Project. The District presented an overview of the Orange County Water District project and its 50%/50% funding model with Orange County Sanitation District.

A similar joint funding model is proposed for the MRWPCA project which would begin with a commitment by the District of $661,550 for next fiscal year. The District would also commit to securing long term financing and enter into a long term wholesale water sales agreement with Cal-Am. The Parties seek to enter into a Memorandum of Understanding reflecting the draft concepts. The District’s financial commitments will be contingent on successfully securing an alternative revenue collection mechanism.

The Draft Partnership Concepts are attached as Exhibit 17-A.

RECOMMENDATION: The Water Supply Planning Committee considered this item at its February 15, 2012 meeting and recommends that the General Manager be authorized to develop a draft Memorandum of Understanding between the District, MRWPCA, and Cal-Am setting forth terms similar to those reflected in the Draft Partnership Concepts attached and bring it back to the Board for approval at its March meeting.

EXHIBITS

17-A Draft Partnership Concepts

U:\staff\Boardpacket\2012\20120223\ActionItems\17\item17.docx

February 23, 2012

Budgeted:

General Counsel Review: N/A

Committee Recommendation: The Water Supply Planning Committee reviewed this item on February 15, 2012 and recommended approval by a vote of 3 (yes) to 0 (no).