ITEM:		CONSENT CALENDAR
11.	CONSIDER EXTENSION OF DEEPWATER DESAL COST SHARING AGREEMENT
Meeting Date:			April 13, 2015	Budgeted:	N/A
From:			David J. Stoldt, General Manager	Program/	Groundwater Replenishment Project
				Line Item No.:	1-5-1
Prepared By:			David J. Stoldt	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: The District’s Cost Sharing Agreement with DeepWater Desal LLC has an end of term for which costs will be shared of April 30, 2015. However, to date just under half of the District’s commitment has been expended, but the Environmental Impact Report is just commencing. The agreement can be extended pursuant to Section 9.1 as shown:

9.1. Extension or Modification. No later than thirty (30) days after the first anniversary of the Effective Date of this Agreement, the Parties shall meet to decide whether to extend or modify this Agreement. Any extension or modification of this Agreement shall be in writing and on mutually acceptable terms and conditions. Unless or until the Parties have met in accord with this paragraph, neither the Company nor MPWMD shall proceed with final design or construction of the CCRWP or the Desalination Plant.

Amendment 4 attached as Exhibit 11-A would extend the term from April 30, 2015 to June 30, 2016. No other changes are generated by this Amendment.

RECOMMENDATION: The General Manager recommends that the Board of Directors approve Amendment 4 to the Cost Sharing Agreement.

EXHIBIT

11-A Amendment 4 to Cost Sharing Agreement

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