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HomeMy WebLinkAboutLeucadia Wastewater District; 2013-09-01; 14-3829AGREEMENT FOR SALE OF RECYCLED WATER TO THE CITY OF CARLSBAD BY THE LEUCADIA WASTEWATER DISTRICT Ref: 14-3828 This Agreement ("AGREEMENT") replaces the Agreement For Sale Of Recycled Water To The City of Carlsbad By The Leucadia Wastewater District dated March 25, 1991 ("1991 AGREEMENT") by and between the Leucadia Wastewater District, a County Water District existing under the California Water Code (formerly known as Leucadia County Water District) ("LEUCADIA") and the Carlsbad Municipal Water District, a Public Agency organized under the Municipal Water Act of 1911, and a Subsidiary District of the City of Carlsbad, ("WATER DISTRICT"). RECITALS WHEREAS, the 1991 AGREEMENT terminated on June 6, 2013; WHEREAS, the pmiies wish to enter into a new five year agreement for the sale of recycled water that is based upon the 1991 AGREEMENT, with certain amendments as described below, NOW, THEREFORE, in consideration of these Recitals and the mutual covenants contained herein, WATER DISTRICT and LEUCADIA hereby approve and adopt the 1991 AGREEMENT as a new contract with the following amendments: SECTION 3. QUANTITY TO BE DELIVERED The third paragraph beginning with "WATER DISTRICT agrees to accept a minimum of 394 acre feet ... " is deleted in its entirety and replaced with the following: WATER DISTRICT is not required to accept any minimum amount of recycled water per year but is required to use water produced by the Gafner Facility as the sole source of recycled water for the South La Costa Golf Course. However, during any period of time in which LEUCADIA is unable or unwilling to provide recycled water as requested, WATER DISTRICT may supply the South La Costa Golf Course with water from other available sources. SECTION 4. MWD OR OTHER REBATE Section 4 of the 1991 AGREEMENT is deleted in its entirety and replaced with the following: WATER DISTRICT and LEUCADIA shall share equally all rebates or other incentive payments from the Metropolitan Water District ("MWD"), County 1 Ref: 14-3829 Water Authority or other governmental agency, now available or available at any time during the term of this AGREEMENT for recycled water purchased from LEUCADIA. SECTION 11. PRICE OF RECYCLED WATER Section 11 of the 1991 AGREEMENT is deleted in its entirety and replaced with the following: WATER DISTRICT shall pay LEUCADIA for all recycled water delivered by LEUCADIA pursuant to this AGREEMENT in accordance with the following schedule: Acre Feet (AF) Price per AF Up to 200 AF $950 201 to 250 AF $900 251 to 300AF $850 3 51 AF or Greater $800 The pricing schedule shall be adjusted once every twelve months based on the All Urban Consumer Price Index for the Los Angeles area. SECTION 17. TERMINATION OF AGREEMENT Section 17 of the 1991 AGREEMENT is deleted in its entirety and replaced with the following: The term of this AGREEMENT shall be five (5) years, commencing on September 1, 2013, subject to the rights of the parties to an earlier termination as provided in SECTION 18 hereof. This AGREEMENT shall continue in force from year to year after the current five (5) year term until either party gives one hundred eighty (180) days written notice to the other of its intention to terminate the AGREEMENT. The AGREEMENT shall terminate one hundred eighty (180) days from the date upon which such written notice is received unless the parties agree otherwise, in writing. Except as amended herein, the terms and conditions of the AGREEMENT remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed and be effective on September 1, 201,3 2 By: l Date: August 29, 2013 WATER DISTRICT: By: Date: John Coates, City Manager <1/ro/49 3