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FVA REOPERATIONS 1140A MEMORANDUM OF AGREEMENT OF SOUTHEASTERN COLORADO WATER ACTIVITY ENTERPRISE AND FOUNTAIN VALLEY AUTHORITY (REOPERATION STORAGE) • • This Memorandum of Agreement ( "MOA ") is entered into this K.+) day of July, 2001, by and between the Southeastern Colorado Water Activity Enterprise ( "Enterprise "); the Fountain Valley Authority (the "FVA "), and its participating member entities, i.e., the City of Colorado Springs ( "Colorado Springs ") and the City of Fountain ( "Fountain "), (collectively the "Member Participants ").' The FVA and the Member Participants are also referred to collectively herein as the "FVA Participants." I. Purpose. • • The purpose of this MOA is to establish a framework for the joint efforts of the Enterprise, the FVA Participants and any other Reoperation Participants (as defined below) to implement Reoperation Contracts (as defined below) in order to meet the identified needs of the FVA, its Member Participants and any other Reoperation Participants for storage of non- Project municipal water in available Project storage space in a timely and cooperative manner, consistent with the PSOP Report and Implementation Committee Report (both as defined below), while providing for the allocation of costs and benefits of water storage resulting from implementation and development of Reoperation (as defined below). II. Background. A. The Enterprise is a water activity enterprise formed by the Southeastern Colorado Water Conservancy District ( "District "), pursuant to C.R.S. §§ 37- 45.1 -101, et seq. B. Consultants to the Southeastern Colorado Water and Storage Needs Assessment Enterprise (the "Needs Assessment Enterprise "), a separate water activity enterprise formed by the District, have prepared a Preferred Storage Options Plan report (submitted by GEI Consultants, dated September 21, 2000, hereinafter the "PSOP Report"). The PSOP Report identifies estimated future water storage needs of several potential participants and outlines a plan for meeting those needs, including reoperation of existing water storage in Fryingpan- Arkansas Project East Slope reservoirs ( "Reoperation "), followed by construction of enlargements to Pueblo Reservoir and Turquoise Reservoir (the "Enlargements "). The PSOP The Security Water District, Widefield Water and Sanitation District and Stratmoor Hills Water District also are members of the FVA, but are not Member Participants with regard to this MOA.