Exhibit 1-A

Memorandum of Understanding for

Integrated Regional Water Management in the

Greater Monterey Bay Area

1. PURPOSE

The purpose of this Memorandum of Understanding (MOU) is to recognize a mutual understanding among public agencies 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 greater Monterey Bay area.

2. RECITALS

A. The State of California desires to foster IRWM planning and encourages local public agencies to define planning regions appropriate for managing water resources and to integrate strategies within these planning regions.

B. Water resources management authority in the greater Monterey Bay area 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.

C. Four public agencies in the greater Monterey Bay area with responsibility for integrated management of water resources have each defined an appropriate Planning Region that takes into consideration jurisdictional limits, powers and responsibilities, and watershed and groundwater basin boundaries. These agencies are: 1.) the County of Santa Cruz; 2.) the Pajaro Valley Water Management Agency (PVWMA); 3.) the Monterey County Water Resources Agency (MCWRA); and 4.) the Monterey Peninsula Water Management District (MPWMD).

D. These four public agencies are taking the lead in developing detailed IRWM Plans within each respective Planning Region, which may be described generally as: 1.) Central Santa Cruz County through and including the Soquel Creek watershed; 2.) the Pajaro River watershed in parts of Santa Cruz, Monterey, Santa Clara and San Benito Counties; 3.) the Salinas River watershed in Monterey and San Luis Obispo Counties; and 4.) the Carmel Bay, Monterey Peninsula, and southern Monterey Bay watersheds and Seaside groundwater basin in Monterey County.

E. In addition to developing IRWM Plans for each respective Planning Region, the public agencies signatory to this MOU desire to link and integrate their respective IRWM Plans to jointly develop a comprehensive Integrated Regional Water Management Plan for the entire Monterey Bay area.

3. GOALS

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

3.1 To develop a comprehensive IRWMP for the greater Monterey Bay area 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, surface storage, watershed planning, water and wastewater treatment, and water transfers.

3.2 To develop a comprehensive IRWMP for the greater Monterey Bay area that incorporates regional water supply, water quality, flood control, and environmental protection and enhancement objectives.

3.3 To improve and maximize coordination of individual public agency plans, programs and projects for mutual benefit and optimal gain within each Planning Region.

3.4 To help identify, develop, and implement collaborative plans, programs, and projects that may be beyond the scope or capability of a single public agency or Planning Region group, but which would be of mutual benefit if implemented among multiple Planning Regions.

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 public agencies and interested stakeholders, 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 Comprehensive Integrated Regional Water Management Plan. The plan for the greater Monterey Bay area proposed by the agencies signatory to this MOU that incorporates the Integrated Regional Water Management Plan developed for each Planning Region and integrates the water management strategies proposed for each Planning Region.

4.2. Greater Monterey Bay Area. The greater Monterey Bay area consists of groundwater and surface water basins tributary to Carmel Bay and Monterey Bay and may be described generally as: Northern and Central Santa Cruz County through and including the Soquel Creek watershed, the Pajaro River watershed in parts of Santa Cruz, Monterey, Santa Clara and San Benito Counties, the Salinas River watershed in Monterey and San Luis Obispo Counties, and the Carmel Bay, Monterey Peninsula, and southern Monterey Bay watersheds and Seaside Groundwater Basin.

4.3. Integrated Regional Water Management Plan (IRWMP). The plan envisioned by state legislators and state resource agencies that integrates the plans and projects for management of water resources proposed by public agencies, non-profit agencies, and stakeholders within a defined Planning Region.

4.4 Integration. The combining of water management strategies to be included in an IRWMP.

4.5. Lead Agency. One of the four public agencies in the greater Monterey Bay area charged with establishing a Planning Region and leading the development of an Integrated Regional Water Management Plan for the Planning Region. These agencies will also take the lead as described in “Approach to developing the Comprehensive IRWMP” below.

4.6. Management Plan. A public agency’s plan that addresses how that entity will provide service in the future in one or more of the following service functions: water supply, water quality, wastewater, recycled water, water conservation, stormwater/flood control, watershed planning or aquatic habitat protection and restoration.

4.7. Planning Group. A group of public agencies, non-profit agencies, and stakeholders that develops an Integrated Regional Water Management Plan within a defined Planning Region.

4.7. Planning Region. The area defined by one of the four lead public agencies in the greater Monterey Bay area.

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

4.9. 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.

4.10. Service Function. A water-related individual service function provided by a public agency, i.e. water supply, water quality, wastewater, recycled water, water conservation, stormwater/flood control, watershed planning, and aquatic habitat protection and restoration.

4.11. 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

5.2 Signatory Agencies. One of the four public agencies in the greater Monterey Bay area signatory to this MOU that leads the development of an Integrated Regional Water Management Plan within their respective Planning Region and coordinates the development of a comprehensive Integrated Regional Water Management Plan for the greater Monterey Bay area.

5.2. Contributing Entities. Other entities, such as other public agencies, business and environmental groups, and private water companies, are considered valuable contributors and will be invited and encouraged to participate and assist in the development of the comprehensive IRWMP.

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 of the comprehensive IRWMP.

6. MUTUAL UNDERSTANDING

6.2. Subject matter scope of the comprehensive IRWMP. The comprehensive IRWMP for the greater Monterey Bay will include, but may not necessarily be limited to, water supply, water quality, wastewater, recycled water, water conservation, stormwater/flood control, watershed planning and aquatic habitat protection and restoration. It is acknowledged that the IRWM plans of each signatory agency may be based, in part, on the land-use plans of the general purpose local governments located within a Planning Region. Therefore, the resultant comprehensive IRWMP will by design have incorporated the land-use plans and assumptions intrinsic to the respective water-related service function.

6.3. Geographical scope of the comprehensive IRWMP. The greater Monterey Bay area for this Memorandum is defined as the watersheds and associated groundwater basins contributing to the Monterey Bay and Carmel Bay that are under the jurisdiction of the public agencies that are signatories to this Memorandum.

6.4. Approach to developing the comprehensive IRWMP. It will be the responsibility of each public agency signatory to this Memorandum to provide existing water management plans or to identify the need for a water Management Strategy for each service function carried out in individual Planning Regions. In order to be part of a comprehensive IRWMP, all management plans must meet the minimum plan standards 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. A technical advisory panel consisting of staff representatives from the signatory agencies and such other organizations as may become contributing entities, will review management plans for consistency with Appendix A and recommend compilation of the relevant plans into one integrated document to form the functional equivalent of a comprehensive IRWMP for the greater Monterey Bay area.

6.5. Approval of the comprehensive IRWMP. Plan adoption will occur by approval of the governing board of each public agency that is a signatory to this MOU.

6.6. Relationship between the comprehensive IRWMP, individual IRWM plans for each Planning Region and individual public agency planning efforts. and Participation in this comprehensive IRWMP effort is intended to complement IRWM Plans developed in each Planning Region and the pursuit of individual projects by public agencies.

6.7 Termination. A public agency signatory to this MOU may withdraw from participation upon 30 days advance notice to the other signatory agencies, provided it agrees to be financially responsible for any previously committed but unmet resource commitment.

6.8. Personnel and financial resources. It is expected that the General Managers of the participating public agencies will agree on a detailed work program describing the contribution of staff and financial resources by each participating public agency necessary to develop the comprehensive IRWMP, and that the work program will be updated as necessary by mutual consent of the General Managers.

6.9. Other on-going regional efforts. Development of the comprehensive IRWMP is separate from efforts of other organizations to develop water-related plans on a regional basis. As the comprehensive IRWMP for the greater Monterey Bay area is developed, work products can be shared to provide other agencies and groups with current information.

6.10. Reports and communications. The technical advisory review panel will regularly report to the General Managers and Governing Boards of the participating public agencies regarding progress on the development of the comprehensive IRWMP.

7. SIGNATORIES TO THE MEMORANDUM OF UNDERSTANDING

We, the duly authorized undersigned representatives of our respective public agencies, acknowledge the above as our understanding of the intent and expected outcome in developing a proposed “Greater Monterey Bay Area Integrated Regional Water Management Plan”.

_______________________________________

Signature

_______________________________________

Printed Name

_______________________________________

Monterey County Water Resources Agency

_______________________________________

Date

______________________________________

Signature

_______________________________________

Printed Name

_______________________________________

Pajaro Valley Water Management Agency

_______________________________________

Date

_______________________________________

Signature

_______________________________________

Printed Name

_______________________________________

Monterey Peninsula Water Management District

_______________________________________

Date

_______________________________________

Signature

_______________________________________

Printed Name

_______________________________________

County of Santa Cruz

_______________________________________

Date

U:\staff\word\committees\Admin\2005\20050707\01\item1_exhibit1a.doc