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THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA RESOLUTION 9064 RESOLUTION OF THE BOARD OF DIRECTORS OF THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA FIXING AND ADOPTING A CAPACITY CHARGE EFFECTIVE JANUARY 1, 2009 WHEREAS, the Board of Directors ("Board") of The Metropolitan Water District of Southern California ("Metropolitan"), pursuant to Sections 133, I34 and 134.5 of the Metropolitan Water District Act (the "Act"), is authorized to fix such rate or rates for water as will result in revenue which, together with revenue from any water standby or availability of service charge or assessment, will pay the operating expenses of Metropolitan, provide for repairs and maintenance, provide for payment of the purchase price or other charges for properly or services or other rights acquired by Metropolitan, and provide for the payment of the interest and principal of its bonded debt; and WHEREAS, the capacity charge is a fixed fee imposed (on a dollar per cubic -foot - per -second basis) on member agencies on the amount of capacity used by such member agency and is designed to recover the cost of providing peaking capacity within the distribution system; and WHEREAS, on January 8, 2008, the General Manager presented to the Business and Finance Committee of Metropolitan's Board his determination of total revenues and of revenues to be derived from water sales and firm revenue sources required during the fiscal year beginning in FY 2007/08, and a detailed report describing each of the rates and charges and the supporting cost of service process, dated December 2006 (the "Report"), that (i) describes the rate structure process and design, (ii) shows the costs of major service functions that Metropolitan provides to.its member agencies, (iii) classifies these service functions costs based on the use of the Metropolitan system to create a logical nexus between the revenues required from each of the rates and charges, and (iv) sets forth the rates and charges necessary to defray such costs; and WHEREAS, on January 8, 2008, the General Manager presented to the Business and Finance Committee his recommendation for rates and charges to be imposed and determination of total revenues to be derived from water sales and firm revenue sources required during the fiscal year beginning in FY 2009/09; and WHEREAS, by Resolution 9056, adopted at its meeting held January 8, 2008, Metropolitan's Board resolved and determined that Metropolitan should develop firm net revenues,