ITEM:		CONSENT CALENDAR
10.	CONSIDER ADOPTION OF RESOLUTION NO. 2008-11 TO AUTHORIZE TRANSFER BETWEEN FUNDS
Meeting Date:			June 16, 2008	Budgeted: N/A
Staff Contact:			Rick Dickhaut	Program/Line Item No.: N/A
				Cost Estimate: N/A
General Counsel Approval: Yes
Committee Recommendation: The Administrative Committee reviewed this item on June 5, 2008 and recommended approval.
CEQA Compliance: N/A

SUMMARY: At its April 21, 2008 meeting, the Board of Directors authorized use of $170,000 from its Flood/Drought Reserve in the Mitigation Fund to pay for preparation of a constraints analysis for the MPWMD 95-10 Project (a desalination project in the Sand City area) which is contained in the Capital Project’s Fund. The District’s enabling legislation provides that the District may make transfers, for the purposes of a loan or permanently, from one fund to another fund of the District, as the District shall determine. In order to carry out the Board’s April 21, 2008 actions, a resolution authorizing the transfer of funds from the Mitigation Reserve to the Capital Projects Reserve is required.

RECOMMENDATION: District staff recommends adoption of Resolution No. 2008-11 (Exhibit 10-A) that would authorize a transfer of $170,000 from the Mitigation Fund’s Flood Drought Reserve to the Capital Projects Fund’s General Operating Reserve. Staff further recommends that this is a permanent re-designation of funds, not a loan that needs to be repaid to the originating fund. The Administrative Committee reviewed this item at its June 5, 2008 meeting and voted 3 to 0 to recommend approval.

BACKGROUND: On April 21, 2008, the Board of Directors authorized joint preparation of a constraints analysis of the MPWMD 95-10 Project by Camp Dresser & McKee, Inc. and Jones and Stokes Associates for a total cost not-to-exceed $170,000. The Board directed that the analysis be funded from the District’s Flood/Drought Reserve. The Flood/Drought Reserve is in the Mitigation Fund and the MPWMD 95-10 Project is in the Capital Projects Fund. Therefore, a resolution authorizing the transfer of funds from the Mitigation Reserve to the Capital Projects Reserve is required to carry out the Board’s April 21, 2008 actions. This transfer is a permanent re-designation of funds, not a loan that needs to be repaid to the originating fund, because the MPWMD 95-10 Project also meets mitigation purposes as it is intended to replace Carmel River water use and will cause a one-for-one reduction in California American Water diversions of illegal water in accord with the requirements of State Water Resource Control Board Order 95-10.

EXHIBIT:

10-A MPWMD Resolution 2008-11

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