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Reso 1293-10/2007RESOLUTION NO. 1293 RESOLUTION OF THE BOARD OF DIRECTORS OF THE VALLECITOS WATER DISTRICT ESTABLISHING PARTNERSHIP IN THE CARLSBAD DESALINATION PROJECT WHEREAS, Our eight San Diego County public water agencies - Carlsbad Municipal Water District, Valley Center Municipal Water District, Rincon del Diablo Municipal Water District, Sweetwater Authority, Rainbow Municipal Water District, Vallecitos Water District, the Santa Fe Irrigation District and Olivenhain Municipal Water District - have entered into a public-private partnership with Poseidon Resources Corporation and signed long-term purchase agreements to receive desalinated water from the Carlsbad Desalination Project; and WHEREAS, The public-private partnership benefits the entire San Diego region by providing alocally-controlled, drought-proof supply of water, and WHEREAS, The Carlsbad Desalination Project's capacity is allocated by contract to the eight San Diego County public water agencies for a term of 30 years with the possibility of two additional 30 year terms; and WHEREAS, Public water agencies have an obligation to provide a reliable and safe water supply that protects the public health and economic stability of their ratepayers; and WHEREAS, Poseidon Resources Corporation shares the common goal of improving water supply reliability in the San Diego region through reduced dependence on imported water; and WHEREAS, Poseidon Resources Corporation is moving aggressively to augment long-standing commitment to water conservation, water recycling and brackish water demineralization with a new, locally controlled drought-proof supply of potable water from the Pacific Ocean; and WHEREAS, Record-setting draught conditions in Southern California and along the Colorado River, and the pending court-ordered shutdown of the State Water Project pumps could reduce up to 30% of San Diego County's imported water supply; and WHEREAS, The Water Authority's 2005 Urban Water Management Plan identifies a need for 56,000 acre-feet-per-year of desalinated seawater from the Carlsbad Desalination Project by 2011; and Resolution No. 1293 Page 2 WHEREAS, The Carlsbad Desalination Project will provide San Diego with 56,000 acre-feet-per-year -approximately 10% of the County's drinking water supply -thereby doubling the region's locally available fresh water supply; and WHEREAS, The water reliability benefits of this project will be shared regionally with diverse populations and rural and urban industries from north, south, east and west San Diego County; and WHEREAS, The water will be appropriated for public use by the eight San Diego public water agencies, guaranteeing that all drinking water developed by the desalination project will remain in the public domain; and WHEREAS, The price of the desalinated water will not exceed that which we would have paid for the imported water supply from the San Diego County Water Authority; and our private sector partner, Poseidon Resources Corporation, will be responsible for all costs and risks associated with the financing, development, construction, and operation of the Project; and WHEREAS, The water will meet or exceed all drinking water regulatory standards under the law, and public water agencies will never be obligated to accept or pay for water that does not meet the quantity, quality and reliability standards specified in the water purchase agreements. NOW, THEREFORE, the Carlsbad Municipal Water District, Valley Center Municipal Water District, Rincon del Diablo Municipal Water District, Sweetwater Authority, Rainbow Municipal Water District, Vallecitos Water District, Santa Fe Irrigation District and Olivenhain Municipal Water District resolve to work in a collaborative effort as the San Diego Desal Partners to ensure the success of the Carlsbad Desalination Project. 1. The San Diego Desal Partners reaffirm Poseidon Resource Corporation's support for the Carlsbad Desalination Project and hereby commit to: a. Advocating at the local, state and federal levels for the approval of the Carlsbad Desalination Project. b. Directly involve ourselves in the campaign to urge the State Lands Commission and California Coastal Commission to approve the Carlsbad Desalination Project. c. Collaboratively work to ensure the Desalination Project's benefits are realized. d. Jointly work with the San Diego County Water Authority to ensure the successful delivery and exchange of the desalinated seawater from the Carlsbad Desalination Project. Resolution No. 1293 Paae 3 NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the Vallecitos Water District does authorize its Board President or his designee to jointly execute a copy of the above resolution along with representatives of the other San Diego Desal Partners, as a demonstration of commitment to this critical water supply project for the greater San Diego region. PASSED AND ADOPTED by the Board of Directors of the Vallecitos Water District at a regular meeting held on this 17t" day of October, 2007, by the following roll call vote: AYES: FERGUSON, HANNAN, POLTL, SHELL, GENTRY NOES: ABSTAIN: ABSENT: ~_._._ Darrell Gentry, resident Board of Directors Vallecitos Water District . William W. Rucker, Secretary Board of Directors Vallecitos Water District