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Redevelopment commission authorizes attorneys to draft MOU for LU to operate water system
Summary
The commission authorized county and LU attorneys to prepare a memorandum of understanding clarifying that LU will provide potable water operation and maintenance after construction and to circulate the draft to the board before a formal vote.
Commissioners instructed staff and counsel to draft a general memorandum of understanding (MOU) or resolution clarifying post-construction water operations and to circulate the draft to the board before final action.
Staff told the commission that the intent throughout planning had been that LU would "maintain, operate, and provide potable water after the construction of this system," and that existing wells would be capped while LU would use the new mains and elevated tank. Commissioners discussed that outstanding bond obligations remain until payoff and that some give-and-take will be needed if LU does not assume bond debt. One commissioner moved to authorize attorneys to prepare a nonbinding MOU and to circulate it to the board for review; the motion was seconded and approved. The board asked that any draft be provided to members ahead of a final vote in August.
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