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WATER I ENERGY ILIFE RIVERSIDE PUBLIC UTILITIES 61& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: AUGUST 13, 2018 ITEM NO: 12 SUBJECT: MEMORANDUM OF UNDERSTANDING FOR INTERIM RETAIL WATER SERVICE BETWEEN CITY OF RIVERSIDE AND CITY OF COLTON ISSUE: Recommend that City Council approve the Memorandum of Understanding for Interim Retail Water Service Between City of Riverside and City of Colton to provide retail water service to two parcels of land totaling 13.2 acres inside Colton's city limits and water service area boundary. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the Memorandum of Understanding for Interim Retail Water Service Between City of Riverside and City of Colton to provide retail water service to two parcels of land totaling 13.2 acres inside Colton's City limits; and 2. Authorize the City Manager, or his designee, to execute the Memorandum of Understanding. BACKGROUND: The City of Riverside Public Utilities Department (Riverside) provides retail water service within its City limits, with the exception of the Orangecrest and Mission Grove neighborhoods south of Canyon Crest Drive. In addition, Riverside also provides retail water service outside of its City limits in some areas of Grand Terrace and unincorporated areas of Riverside County. From time to time, Riverside, or one of its neighboring water agencies, may be temporarily better situated to provide water service to a given parcel of land based on existing infrastructure fronting the development. In situations where there are permanent physical or geological limitations to an agency's ability to provide service, permanent service boundary adjustments may be made to adjust a parcel (or parcels) of land into a neighboring agency's service area. DISCUSSION: The City of Colton (Colton) approached Riverside to provide temporary water service to a development just north of Riverside's City limit, located on the north side of Center Street, in Colton, due to the lack of existing Colton infrastructure at that location. In situations such as this, a Memorandum of Understanding (MOU) for interim retail water service is a means for a neighboring agency to provide retail water service until such a time as permanent infrastructure improvements are installed to serve the development. Page 335