ITEM:		CONSENT CALENDAR
2.	CONSIDER APPROVAL OF A REVISED MEMORANDUM OF UNDERSTANDING FOR INTEGRATED REGIONAL WATER MANAGEMENT IN THE MONTEREY PENINSULA, CARMEL BAY AND SOUTH MONTEREY BAY
Meeting Date:			April 15, 2013	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Larry Hampson	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on April 8, 2013 and recommended approval.
CEQA Compliance: Exempt under CEQA Section 15262

SUMMARY: At their July 16, 2007 meeting, the MPWMD Board of Directors approved entering into a memorandum of understanding (MOU) to form a Regional Water Management Group (RWMG) with four other local agencies that have regional responsibilities for water resources management. These agencies are the Big Sur Land Trust (BSLT), the City of Monterey, the Monterey Regional Water Pollution Control Agency (MRWPCA), the Monterey County Water Resources Agency (MCWRA), and MPWMD. The MOU formalized the collaborative planning effort that several local agencies had been involved in for several years, describes the process for completing and amending the Integrated Regional Water Management (IRWM) Plan for the region, and also described the role of stakeholders in carrying out the Plan. The RWMG executed the MOU in June 2008.

In 2011, the State awarded a $995,000 grant to MPWMD to update the IRWM Plan that was adopted in 2007. For this IRWM Plan Update, Marina Coast Water District (MCWD) and the Resource Conservation District of Monterey County (RCDMC) are proposed to be added to the RWMG, which will help diversify the representation of stakeholders in the region. MCWD provides water and wastewater services within the Ord Community (former Fort Ord) and the RCDMC mission is to conserve and improve natural resources, integrating the demand for environmental quality with the needs of agricultural and urban users.

A copy of the draft amended MOU to add MCWD and the RCDMC to the Regional Water Management Group is attached as Exhibit 2-A. Proposed amendments to the 2007 MOU are shown in strikeout and underline.

RECOMMENDATION: Staff recommends that the Board authorize the General Manager to make any minor or non-substantive modifications to the MOU presented to the Board (Exhibit 2-A, attached), in order to accommodate requests made by the Water Management Group entities prior to signing the MOU or to delete references to entities that may decline to participate in amending the MOU.

BACKGROUND: Proposition 50, the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002, was passed by California voters in November 2002. It amended the California Water Code (CWC) to add, among other articles, Section 79560 et seq., authorizing the Legislature to appropriate $500 million for Integrated Regional Water Management (IRWM) projects. Propositions 84 and 1E, which were passed in 2006, authorize more than $2 billion Statewide and provide grant funding through a performance-based competitive program for water resource related projects.

The intent of the IRWM Grant Program is to encourage integrated regional strategies for management of water resources and to provide funding, through competitive grants, for projects that protect communities from drought, protect and improve water quality, and improve local water security by reducing dependence on imported water. The IRWM Grant Program is administered by DWR and is intended to promote a new model for water management. One of the goals of the IRWM Grant Program is to encourage communities to work on synergistic approaches to solving regional water supply and environmental quality problems.

MPWMD is the lead agency for IRWM planning for the Monterey Peninsula, Carmel Bay, and South Monterey Bay. The following milestones have been completed:

· 2005 – MPWMD defined a geographic planning area, or Region, and began developing an IRWMP that encompasses the groundwater basins and watersheds of the Monterey Peninsula, Carmel Bay and South Monterey Bay. The Region includes the six Monterey Peninsula Cities, portions of the unincorporated area of Monterey County in the Carmel Highlands, Pebble Beach, and the inland areas of Carmel Valley and the Laguna Seca area.

· 2006 – Department of Water Resources (DWR) awarded a grant of $497,000 to MPWMD to complete an IRWM Plan for the Region.

· November 2007 – MPWMD adopted an IRWM Plan for the region.

· August 2008 - the RWMG was formed to provide an institutional structure to guide the implementation of the IRWM Plan. The RWMG includes the Big Sur Land Trust (BSLT), the City of Monterey, the Monterey Regional Water Pollution Control Agency (MRWPCA), the Monterey County Water Resources Agency (MCWRA), Marina Coast Water District (MCWD), the Resource Conservation District of Monterey County (RCDMC), and MPWMD

· 2009 – MPWMD coordinated the RWMG group’s effort to successful complete the Regional Acceptance Process conducted by DWR to permanently establish the planning region.

· 2011 – DWR awarded a $995,000 grant to MPWMD to update the IRWM Plan to Proposition 84 standards and to complete nine planning projects around the region.

· 2010 to 2012 – representatives from each of the seven agencies in the expanded RWMG developed and agreed to a set of principles to guide the update and implementation of the IRWM Plan.

A formally adopted IRWM Plan (IRWMP) is required by the State in order to be eligible to apply for funds to implement projects. An IRWMP must comply with Proposition 84 standards and must address, at a minimum, water supply, groundwater management, ecosystem restoration, and water quality. The State IRWM guidelines require efforts to maximize affected entities participation in drafting the plan. Soliciting and incorporating input from the community is also a significant part of the consideration process.

The IRWMP is not a detailed plan for solving water management issues and implementing projects. Rather, the IRWMP provides a framework for agencies, non-profit groups, for-profit corporations and other stakeholders with missions and responsibilities to work together on common water management strategies, objectives, goals and projects. As such, the IRWMP takes into consideration the many plans and policies currently being implemented for water resource management, analyzes how these are interrelated and shows how projects and programs can have multiple benefits when grouped together. However, the IRWMP does not bind any agency or group to carry out particular actions, policies, or projects.

STAFF/RESOURCE IMPACTS

Section 6.15 of the MOU, Personnel resources, states “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 staff resources are available to implement the IRWM Plan.” Staff anticipates additional effort through at least the end of Fiscal Year 2013-14 to coordinate the completion and adoption of the updated IRWM Plan and an application to the State in 2014 for implementation grant funds. The District’s budget for FY 2012-13 includes $645,000 for grant-reimbursed expenses for IRWM Plan development under Objective 2-6 “Integrated Regional Water Management.” It is anticipated that the balance of grant funds will be expended during FY 2013-14 and that additional staff effort and funds may be necessary to complete an application to DWR in 2014,

EXHIBIT

2-A Draft Amended Memorandum of Understanding for Integrated Regional Water Management in the Monterey Peninsula, Carmel Bay, and South Monterey Bay Area

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