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Agreement with MWD and MWDOC for In -Lieu Treated Water Deliveries <br />August 15, 2017 <br />Page 2 <br />The water banking process has to be carefully monitored and accounted for to ensure that the <br />participating agencies exchange appropriate amounts of surface water and groundwater to <br />achieve an overall net $0 cost to the water enterprise. The proposed in -lieu agreement <br />implements a number of administrative procedures to establish proper accounting. In the <br />assigned roles, MWD supplies water to the City, MWDOC verifies volume of water deliveries and <br />carries the balance sheet for all Orange County participants, and the City pays related invoices to <br />MWD. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Strategic Plan Goal #5 — Community <br />Health, Livability, Engagement & Sustainability, Objective #2 (expand opportunities for <br />conservation and environmental sustainability). <br />FISCAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. The administrative procedures established <br />by this agreement ensure a net $0 cost to the water enterprise. <br />Exedutive Director <br />Public Works Agency <br />FM/NS/RR <br />Exhibit: 1. Agreement <br />251-2 <br />