ITEM: 1

SUBJECT: CONSIDERATION OF A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR OR HIS DESIGNEE TO EXECUTE AND AMEND, IF NECESSARY, A REIMBURSEABLE CONTRACT WITH THE IMPERIAL IRRIGATION DISTRICT (IID) AND SAN DIEGO COUNTY WATER AUTHORITY (AUTHORITY) FOR WATER RIGHT TASKS IN CONNECTION WITH THE PROPOSED TRANSFER OF CONSERVED WATER FROM THE IID TO THE AUTHORITY.

DISCUSSION: On April 29, 1998, the IID and the Authority signed the Agreement for Transfer of Conserved Water (Agreement). The Agreement proposes an initial transfer of 20,000 acre-feet (AF) of conserved water to the Authority. The amount of water to be transferred would increase each year by 20,000 AF until a quantity between 130,000 and 200,000 AF per year is reached. The initial term of the Agreement is for a period of 45 years. The Agreement may be renewed for an addtional 30 years and additional available water up to a maximum of 100,000 AF per year can be transferred.

The Agreement calls for the SWRCB to perform the following tasks:

1. Process the necessary water right petitions(s) to allow transfer of conserved water from IID to the Authority,

2. Review IID's reasonable and beneficial use of water,

3. Confirm that the IID is enforcing the contractual duties and obligations of the contracting landowners within the IID to undertake water conservation efforts, and

4. Verify that the quantity of water being transferred to the Authority is water that has been conserved by the IID, the contracting landowners or a combination thereof.

The FY 1998-99 State budget specified that the cost for performing these tasks is to be shared among the State, the IID, and the Authority. Half of the funding will be provided by the IID and the Authority. The other half of the funding will be provided from the State's General Fund. The local share for the next 5½ years should not exceed the following amounts:

Jan. 1, 1999 through Jun. 30, 1999 $353,000

Jul. 1, 1999 through Jun. 30, 2000 544,500

Jul. 1, 2000 through Jun. 30, 2001 544,500

Jul. 1, 2001 through Jun. 30, 2002 544,500

Jul. 1, 2002 through Jun. 30, 2003 544,500

Jul. 1, 2003 through Jun. 30, 2004 544,500

Total $3,075,500

POLICY ISSUE: Should the SWRCB authorize its Executive Director to execute a contract with the IID and the Authority to help fund the activities noted above?

FISCAL IMPACT: The proposed contract would increase the SWRCB's budget by up to $3,075,000 for the contract period.

RWQCB IMPACT: None

STAFF RECOMMENDATION: Staff recommends that the SWRCB adopt a resolution authorizing its Executive Director to execute a contract with the IID and the Authority for an amount not to exceed $3,075,500 for water right activities associated with the proposed transfer of conserved water from the IID to the Authority.

STATE WATER RESOURCES CONTROL BOARD

WHEREAS:

1. The Authority seeks to acquire an independent, reliable, long-term water supply to provide drought protection and to accommodate anticipated growth among its 23 member-public agencies;

2. The Authority entered into an Agreement on April 29, 1998, with the IID to furnish a quantity of conserved water between 130,000 and 200,000 acre-feet per annum for an initial period of 45 years;

3. The Agreement calls for the SWRCB to perform the following tasks:

• Process the necessary water right petitions(s) for change to allow transfer of conserved water from IID to the Authority,
• Review IID's reasonable and beneficial use of water,
• Confirm that the IID is enforcing the contractual duties and obligations of the contracting landowners within the IID to undertake water conservation efforts, and
• Verify that the quantity of water being transferred to the Authority is water that has been conserved by the IID, the contracting landowners or a combination thereof;

5. The FY 1998-99 State budget specified that the SWRCB's costs for implementing the tasks in the agreement should be shared among the State, the IID, and the Authority. Half of the funding for the SWRCB's costs ($ 3,075,500 for 5½ fiscal years) will be provided by the IID and the Authority. The other half of the SWRCB's costs will be provided from the State's General Fund.

6. The IID and the Authority understand that the compensation provided by this agreement is not dependent upon the SWRCB's approval of the Petition for Long-Term Change of IID's water right Permit 7643.

THEREFORE BE IT RESOLVED:

That the SWRCB authorizes its Executive Director to execute and amend, if necessary, a contract with the IID and the Authority, which provides for the SWRCB to receive reimbursement of costs in an amount not to exceed $3,075,500 for a period extending from January 1, 1999 to June 30, 2004 to perform the tasks noted in the above paragraph 3.

That the Executive Director may re-delegate the authority granted herein to the Deputy Director; the Division Chief or Assistant Division Chief of the Division of Administrative Services, and/or the Division Chief or Assistant Division Chief of the Division of Water Rights.

The undersigned, Administrative Assistant to the SWRCB, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on February 18, 1999.

________________________________

Maureen Marché

Administrative Assistant to the Board