January 25,2007 Memorandum of Understanding(MO[D Among

California Departmentof Fish and Game, StateParks, City of Half Moon Bay, CoastsideCounty Water Dishict, Commiffeefor GreenFoothills, Gulf of the Farallones NationalMarine Sanctuary,Half Moon Bay Fishermen'sAssociation, Midpeninsula RegionalOpen SpaceDistrict, MontereyBay National Marine Sanctuary,National Marine FisheriesService, Peninsula Open SpaceTrust, Pilarcitos CreekAdvisory Committee, Public Utilities Commission,San Francisco Bay Regional Control Board, SanMateo County, SanMateo County Farm Bureau,San Mateo County ResourceConservation Dishict, SewerAuthority Mid-Coastside,Surfrider Foundation- SanMateo Chapter

Regarding

The Establishmentof the Pilarcitos CreekRestoration Workgroup and the Development of an IntegratedWatershed Management Plan

I. Recitals A. The groupslisted abovehave been working togetherfor many yearsunder the umbrella of the Pilarcitos CreekWatershed Restoration Project (Project). The Project was createdand fundedby the California Departmentof Fish and Game and the SanFrancisco Regional Water Quality Control Board as part of a settlementbetween the Stateof California,Browning-Ferris Industries, and Apex Oil Companyfor two separatepollution dischargeevents that occurredin 1992.

B. The Pilarcitos CreekAdvisory Committee(PCAC) was formed to provide local stakeholderinput on the developmentof the Pilarcitos Creek Restoration Plan (1996 Plan), and to provide adviceand guidanceto the ProjectManager, the SanMateo County ResourceConservation District (RCD). The 1996Plan identified five major issuesof concernin the creek: l) reducedstreamflows, 2) degradedfish habitat, 3) bank erosionand loss of riparian vegetationand habitat, 4) watershederosion and channelsedimentation, and 5) exotic vegetation.

C. The groupslisted abovehave decidedcollectively to convenethe new Pilarcitos Creek RestorationWorkgroup (Workgroup) to developan Integrated WatershedManagementPlan (IWMP) that would ufdate the l9i6 Plan and addresshigh priority issuesin the watershed(e.g., Central Coaststeelhead protectionand restoration). The PCAC will be a memberof the new Workgroup.

II. Purpose of the Workgroup The purposeof the Workgroup is to work aspartners to balanceall of the beneficial uses of availablewater resourcesin the PilarcitosCreek watershed and to find solutionsthat protectthe environment,agriculture, public health,domestic water supply, and economic interests. Ill.Purposes of this MOU The purposesof this MOU areto: A. Describehow the Workgroup operatesas a collaborativeforum to achievethe common goal of protectingand restoringthe natural resourcesof the Pilarcitos Creek watershed.

B. Outline the processfor developingthe Pilarcitos Creek IntegratedWatershed ManagementPlan.

IV. Definitions The abbreviationsand capitalizedwords and phrasesused in this MOU havethe following meanings: A. "CCWD" refersto CoastsideCounty Water District. B. "CDFG" refersto CaliforniaDepartment of Fish and Game. C. "HMB" refersto City of Half Moon Bay. D. "IW.MP" refers to IntegratedWatershed Management Plan. E. "NMFS" refersto NationalMarine Fisheries Service. F. "RCD" refersto SanMateo County ResourceConservation District. G. "SAM" refers to SewerAuthority Mid-Coastside. H. "SFPUC" refersto SanFrancisco Public Utilities Commission. I. "Parfy" or "Parties" refers to the organization(s)signing this MOU. J. "Signatory" or "Signatories"refers to the personor group of people signing this MOU on behalf of their organization(s).The Signatoriesare the General Managers,Directors, ExecutiveOfficers, etc. from eachorganization, or their designees. K. "Workgroup" refersto the PilarcitosCreek RestorationWorkgroup. L. "Workgroup Members" refersto the senior staffdelegatedby the Signatories to representtheir organizationon the Workgroup.

V. Workgroup Principles, Organization, and Participant Roles A. Convener of Workgroup Meetings: The RCD will serveas the convenerof Workgroup meetings,and in this role will initiate and circulate draft meeting agendasand provide meetingsummaries.

B. Voluntary Participation; Designation of Party Representatives; Ability to Set Meetings; Formation of Subcommittees: Participationin the Workgroup is voluntary, and open to the public. As a consequenceof this MOU, each Signatory shall designatea representativeas the primary contactfor that Party on all Workgroup activities. The designatedrepresentatives will constitutethe Workgroup Members. Workgroup Members agreeto keep the Workgroup informed of activities they are carrying out related to restoration efforts in the Pilarcitos Creek watershed. As necessary,the Signatoryfrom any Party can call a meeting of the Signatories: At leastone meetingof the Signatorieswill occur during each calendar year to keep eachParty informed of current events at the policy recommendationand decision-makinglevel. As necessary,the Workgroup Membersor Signatoriescan establishad hoc subcommitteesto conduct work on behalfof theWorkgroup. These ad hoc subcommittees would reportback to the Workgroup.

c. Meetingschedules, circulation of Agendas,and Meeting Minutes: The workgroupconvenes approximately once every two months.Draft agendasand meetingminutes will be circulatedin advanceto workgroupMembers for commentbefore email distribution to thebroader group. Draft minuteswill be finalizedby adoptionby workgroupMembers at thenext meeting. Adopted meetingminutes will be postedby theRCD on theirwebsite, making them availableto thepublic. If for whateverreason the RCD is unableor unwillingto providethis service,new alTangements will bemade to makethese minutes availableto thepublic.

D. Workgroup DisputeResolution: The intent of theParties is thatany dispute shouldbe resolvedat the workgroupMember level, if possible.However, nothingcontained herein shall be deemedto precludeany Parfyfrom seekingto resolvea disputebetween Parties by anyother lawful means.If agreementon un issuecannot be reachedamong the workgroup Members, then any partymay seeka moreformal level of disputeresolution as described in this paragraph.

If anyParty chooses to pursueformal dispute resolution, they may do so!y notiffing theother Parties at theSignatory level in writing. This written notificationshall also include a statementof theissue and any pertinent backgroundmaterial. The Parties will thenconvene a meetingof the Signatories within 45 calendardays of this notificationto reviewthe issue.If the Signatories cannotreach agreement, then the issue will remainunresolved, and each Party will retainthe right to resolvethe dispute by anylawful means. vI. Purpose,conduct and Fundingof Integratedwatershed Management plan A. Purposeof Integratedwatershed Management plan: Thepurpose of the IWMP is to setforth a strategyto achievean ecologicallysustainable watershed thatrestores steelhead trout (while also considering other native species and ripariancommunities) in thePilarcitos Creek watershed while minimizingthe potentialimpacts to watersupply and other beneficial uses, as described in the Pilarcitoscreek IWMP scopeof work (attached).Given the diversityof interestsparticipating in theworkgroup, and the complexity of the issues sunoundingrestoration in thePilarcitos Creek watershed, a collaborative TechnicalTeam, led by an independentconsultant, can play an importantrole by generatingdata and analyses that are viewed as credible, unbiased, and can be supportedby the WorkgroupMembers.

B. Fundingof Integratedwatershed Management plan: TheIWMp will be fundedby a $202,500grant received by the SanFrancisco public utilities Commission(SFPUC) from theState Water Resources Control Board's 2005- 2006Consolidated Grants Program, and an associated cost share contribution of $67,500from the SFPUC. C. Preparation of Integrated WatershedManagement Plan: The IWMP will generallybe preparedas follows:

l. Review the I996 Plan and subsequentstudies that have been produced as a result of the 1996Plan and confirm/updatethe watershed characterization(e. g., hydrology, geomorphology,vegetation, wildli fe) and critical issuesas described in the 1996Plan (e.g., reduced streamflow,degraded habitat,loss of riparian habitat, watershed erosion and sedimentation,exotic and invasivevegetation, landowner concerns).

2. Review and evaluatethe statusand recommendationsfrom the 1996 Plan.

3. Establishspecific objectivesfor the new planning effon that address issuessuch as: a) habitatenhancement/restoration, b) reducederosion and sedimentation,c) removal/managementof exotic and invasive vegetation,d) increasednative vegetation,e) improved water quality, f) better flood management,g) stabilizedcreek banks, h) identification of constraintsand opportunitiesfor protectionand recovery of the federally listed steelheadtrout while incorporatingcurrent and future water supply issuesand importanteconomic issues, i) developmentof cost effective, stakeholder-supportedalternative water supply projects that could result in enhancedinstream flows in the upper watershed while minimizing loss of yield to consumers,j) developmentof recycled water projectsthat may result in enhancedstreamflow in lower watershed,k) increasedcommunity collaboration.

4. Identiff information gapsthat potentially require additional monitoring and/or studies.

5. Preparedraft IWMP that is basedon the objectivesin (3) above.

D. Oversight of Integrated Watershed Management Plan The Workgroup will provide the oversightin the preparationof the IWMP.

VII. General Provisions of this MOU A. Term: This MOU will expire in five yearsfrom the date of executionby all the Partiesunless extended by mutual consentof the Parties.

B. Amendments and Additional Signatories: This MOU may be amendedat any time with the unanimousapproval of the Parties. Additional Partiesmay be addedat any time with the unanimousapproval of the Parties. c. withdrawal: Any Party may withdraw from this MoU at any time by giving 30 days written notice to the other Parties. A Party that is dissatisfiedwith the outcomeof the disputeresolution process provided for in SectionIIID may withdraw. The MOU remainsin effect for the remainingparties.

D. Funding: Except as specificallydescribed above, nothing herein altersthe existing authoritiesor responsibilitiesof any Party nor shall be consideredas obligating any Party in the expenditureof funds or the future paymentof moneyor providingservices.

Implementationof this MOU by the signatoryfederal agencies is subjectto the Anti-DeficiencyAct, 3l u.s.c. Section1341, and the availabilityof appropriated funds. This Mou is not intendedand will not be construedto require the obligation, appropriation,or expenditureof any money from the u.S. Treasury. The signatoriesacknowledge that the federalsignatories will not be required underthis Mou to expendany federalagency's appropriated funds uniessand until an authorizedofficial of that agencyaffirmatively acts to commit such expendituresas evidencedin writing.

E. Construction of Terms: This MOU is for the sole benefit of the Partiesand shall not be constued as grantingrights to any personother than the Partiesor imposing obligationson a Party to any personother than anotherparty.

F. Good Faith: Each Party shall useits bestefforts and work wholeheartedly and in good faith for the expeditiouscompletion of the objectivesof this MOU and the satisfactoryperformance of its terms.

G. Governing Law: This Mou is madeunder and shall be governedby the laws of the Stateof California. EXHIBITA Agreementto Join the Memorandum of Understanding Establishingthe Pilarcitos RestorationWorkgroup and the Developmentof an Integrated Watershed Management Plan

In considerationof the mutual promises,covenants, and conditionscontained therein,

(nameof party) hereby agreesto be part of the

PilarcitosRestoration Workgroup created on January25,2007 and agrees to complywith theterrns of theMemorandum of Understandingattached hereto and incorporated herein bv reference.

In witnesswhereof, the party heretohas executedthis agreementas of the datewritten below.

Signature:

Date:

PrintedName:

Title:

Organization:

Name/ Addressof ParWto ReceiveNotices:

6