WATER SUPPLY PLANNING COMMITTEE
ITEM:		DISCUSSION ITEM
4.	FUNDING FOR GROUNDWATER REPLENISHMENT PROJECT
Meeting Date:			February 15, 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: N/A
CEQA Compliance: N/A

SUMMARY: The General Manager met with representatives of Monterey Regional Water Pollution Control Agency (MRWPCA), the County Water Resources Agency, and California American Water (Cal-Am) on February 6, 2012 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 4-A.

RECOMMENDATION: Staff 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 and bring it back to the Board for approval at its March 2012 meeting.

The Water Supply Planning Committee considered this item at its February 15, 2012 meeting and recommended ______. If adopted with the Consent Calendar, the General Manager would be authorized to develop an agreement with the described parties.

EXHIBITS

4-A Draft Partnership Concepts

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