HomeMy WebLinkAboutMetropolitan Water District County Water Authority; 2000-03-28; MWD 23300AGREEMENT NO. 23300
NEW LRP
ENCINA BASIN WATER RECLAMATION PROJECT - PHASES I AND II
LOCAL RESOURCES PROGRAM AGREEMENT
BETWEEN
THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA,
SAN DIEGO COUNTY WATER AUTHORITY,
AND CARLSBAD MUNICIPAL WATER DISTRICT
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AGREEMENT NO. 23300
NEW LRP
ENCINA BASIN WATER RECLAMATION PROJECT - PHASES I AND II
LOCAL RESOURCES PROGRAM AGREEMENT
BETWEEN
THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA,
SAN DIEGO COUNTY WATER AUTHORITY,
AND CARLSBAD MUNICIPAL WATER DISTRICT
TABLE OF CONTENTS
Recitals .........................................................................................................................
Section
1. Definitions .........................................................................................................
2. Warranties .........................................................................................................
3. Ownership and Responsibilities ..........................................................................
4. Billing Process ................................................................................................
5. Record Keeping and Audit .................................................................................
6. Term and Amendments .....................................................................................
7. Hold Harmless and Liability ................................................................................
8. Notice ................................................................................................................
9. Successors and Assigns - .......................................................................................
10. Severability ........................................................................................................
11. Integration ........................................................................................................
12. Governing Law .................................................................................................. ~.
Exhibits
Exhibit A - Project Description
Exhibit B - LRP Contribution Schedule
Exhibit C - Performance Provisions
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MWD Agreement No. 23300
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NEW LRP
ENCINA BASIN WATER RECLAMATION PROJECT - PHASES I AND II
LOCAL RESOURCES PROGRAM (LRP) AGREEMENT
BETWEEN
THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA,
SAN DIEGO COUNTY WATER AUTHORITY,
AND CARLSBAD MUNICIPAL WATER DISTRICT
THIS AGREEMENT is made and entered into as of M&f& 2c ,200O by and among The
Metropolitan Water District of Southern California (Metropolitan), San Diego County Water
Authority (Authority), and Carlsbad Municipal Water District (Carlsbad). Metropolitan,
Authority, and Carlsbad may be collectively referred to as “Parties” and individually as “Party”.
RECITALS
A. There is now in effect a Local Resources Program Conversion Agreement (Conversion
Agreement) dated July 1, 1999 by and among the Parties for the development and
utilization of recycled water, which provides for the Encina Basin Water Reclamation
Project - Phase I (Phase I Project);
B. Pursuant to the Conversion Agreement, the Phase I Project commenced operations in
January 1993 and is capable of meeting an annual demand of 2,050 acre-feet of Recycled
Water for non-potable landscape, agricultural, commercial, and industrial purposes;
C. Metropolitan’s Board of Directors, at its June 9, 1998 meeting, established terms and
conditions for the LRP and authorized staff to issue a Request for Proposals (RFP)
targeting 53,006 acre-feet per year (AFY) of needed local resource production by the year
20 10 from cost-effective projects that would help contribute to the region’s overall water
supply reliability;
D. In response to the RFP, Carlsbad submitted a project proposal for the 2,950 AFY Encina
Basin Water Reclamation Project - Phase II (Phase II Project) that was competitively
evaluated by a review committee and subsequently identified as one of 14 projects
recommended for inclusion in the LRP to achieve the targeted production;
E. The Parties mutually agree to terminate the Conversion Agreement, referenced in
Paragraph A above, effective July 1,200O;
F. This Agreement combines both Phases I and II of the Encina Basin Water Reclamation
Project;
MWD Agreement No. 23300
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Metropolitan was incorporated under the Metropolitan Water District Act (Act) for the
purpose of developing, storing, and distributing water for domestic and municipal
purposes;
The Act empowers Metropolitan to acquire water and water rights within or without the
state; develop, store and transport water; provide, sell and deliver water at wholesale for
municipal and domestic uses and purposes; set the rates for water; and acquire, construct,
operate and maintain any and all works, facilities, improvements and property necessary
or convenient to the exercise of the powers granted by the Act;
Authority, as a member public agency of Metropolitan under the Act, is a wholesale
purchaser within its service area of water developed, stored, and distributed by
Metropolitan;
Carlsbad is a member public agency of Authority and provides domestic and
nondomestic water services entirely within Authority’s service area;
Carlsbad is empowered under Section 7 1309 of the Water Code to enter into contracts
necessary to carry out its powers and purposes;
Metropolitan’s water supply and demand projections for its service area, including that
encompassed by Authority, show that additional sources of supplemental water must be
developed to meet future needs; -
Metropolitan has determined to take all necessary steps to provide its service area with
adequate and reliable supplies of high quality water in the years ahead in an
environmentally and economically responsible way, including providing financial
incentives to water recycling projects under its Local Resources Program (LRP);
Metropolitan and Authority have determined that it is mutually beneficial for local water
projects originating in Authority’s service area to be developed as a supplement to
Metropolitan’s imported water supplies in order to meet future water needs;
A significant amount of treated wastewater generated within Authority’s service area is
currently discharged to the ocean, which water when provided with tertiary treatment
could be used for non-potable purposes;
Additional quantities of recycled water could be produced, distributed, and sold by
Carlsbad by means of additional capital facilities to treat, distribute and use additional
wastewater, thereby avoiding disposal thereof as a waste product and reducing the need
for additional water that otherwise must be delivered from Metropolitan’s imported water
supply system for landscape irrigation purposes;
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MWD Agreement No.. 23300
Q. Carlsbad is currently planning and desires to construct additional capital facilities
collectively known as the Phase II Project, to treat and distribute, for beneficial use,
additional treated wastewater, which will minimize present and future disposal of
wastewater as a waste product from Carlsbad, in a manner cost-effective for its
customers;
R. Metropolitan, in accordance with its LRP, desires to assist Carlsbad in the cost of treating
and distributing recycled water for landscape irrigation purposes;
S. Carlsbad ,desires to comply with the provisions of Metropolitan’s LRP in return for
Metropolitan’s financial assistance for the Project;
T. Metropolitan desires to assist in increasing production and distribution of recycled water
by providing financial incentives to Carlsbad, through Authority, for implementation of
the Project.
U. Authority desires to participate in and affirmatively supports the Project by transferring to
Carlsbad the financial incentives that it receives from Metropolitan;
V. The Parties believe that treatment and distribution of recycled water from the Project will
benefit the local community within Carlsbad and the region served by Metropolitan;
W. The Project, when fully developed, is estimated as being capable of delivering 5,000 acre-
feet per year of recycled water by treating secondary wastewater and distributing recycled
water for landscape irrigation purposes.
NOW, THEREFORE, in consideration of the promises and covenants hereinafter set forth, the
Parties do agree as follows:
Section 1: Definitions
The following words and terms, unless otherwise expressly defined in their context, shall be
defined to mean:
1.1: “Allowable Yield” shall mean the amount of Recycled Water that is delivered to End
Users by Carlsbad from the Project in any given Fiscal Year and eligible to receive
Metropolitan’s financial assistance. Allowable Yield, measured in acre-feet, shall not
exceed Ultimate Yield and shall exclude any Recycled Water Metropolitan reasonably
determines will not reduce Authority’s or Carlsbad’s demand for Metropolitan’s imported
water.
1.2: “End User” shall mean each user that purchases Recycled Water furnished by the Project.
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MWD Agreement No. 23300
E.3: “LRP Contribution” shall mean the financial contribution in dollars per acre-foot
Metropolitan pays for Allowable Yield to Carlsbad for monthly billing purposes as
outlined in Exhibit B, incorporated herein by this reference. The LRP Contribution shall
commence in Fiscal Year 2000-2001 and is limited to the Allowable Yield tabulated in
Exhibit B.
1.4: “Fiscal Year” shall mean a Metropolitan Fiscal Year that begins on July 1 and ends on
June 30.
1.5: “Project” shall mean the “Encina Basin Water Reclamation Project - Phases I and II”
being developed by Carlsbad, as described in Exhibit A attached hereto and incorporated
herein by this reference, consisting of existing facilities and additional capital facilities
including treatment and distribution facilities capable of producing the Allowable Yield.
Carlsbad shall notify Metropolitan prior to making any changes to the Project that
requires new environmental documentation other than an addendum to the existing
environmental documentation. After reviewing the proposed change and associated
environmental documentation, Metropolitan shall inform Authority and Carlsbad of
Metropolitan’s decision whether or not to include the change to this Agreement.
1.6: “Ultimate Yield” is established as 5,000 AFY and represents the sum of Phase I Ultimate
Yield (2,050 AFY) and Phase II Ultimate Yield (2,950 AFY). Ultimate Yield is subject
to the reduction provisions outlined in Exhibit C, incorporated herein by this reference.
1.7: “Recycled Water” shall mean treated wastewater, which subject to regulatory
requirements, is suitable for beneficial uses.
Section 2: Warranties
2.1 Carlsbad, by virtue of its ownership of the Project, warrants that it has a firm and
adequate source of Recycled Water to operate the Project;
2.2: Carlsbad warrants that it is able and has a right to distribute and sell Allowable Yield
produced from the Project.
2.3: Carlsbad warrants that it does not discriminate against employees or against any applicant
for employment because of ethnic group identification, religion, age, sex, color, national
origin, or physical or mental disability and further warrants that it requires all contractors
and consultants performing work on the Project to comply with all laws and regulations
prohibiting discrimination against employees or against any applicant for employment
because of ethnic group identification, religion, age, sex, color, national origin, or
physical or mental disability.
2.4: Carlsbad warrants that it has or will comply with the provisions of the California
Environmental Quality Act for each and all components of the Project facilities.
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MWD Agreement No. 23300
Section 3: Ownership and Responsibilities
3.1:
3.2:
3.3:
3.4:
3.5:
3.6:
3.7:
Carlsbad shall be the sole owner of the Project facilities. Metropolitan and Authority
have no ownership right, title, security interest or other interest in the Project facilities.
Carlsbad shall be solely responsible for all design, environmental compliance, right-of-
way acquisitions, permits, construction, and cost of the Project and all modifications
thereof.
Carlsbad shall be solely responsible for operating and maintaining the Project, in
accordance with all applicable local, state, and federal laws. Metropolitan and Authority
shall have no rights, duties or responsibilities for operation and maintenance of the
Project.
Carlsbad shall install, operate and maintain metering devices for the purpose of
measuring the quantity of Allowable Yield delivered to each End User. Carlsbad shall
also account for and distinguish between Allowable Yield produced under the LRP
agreement for Phases I and II.
Carlsbad shall, during the term of this Agreement, use its best efforts to operate Project
facilities to maximize Allowable Yield on a sustained basis.
Authority and Carlsbad shall assist Metropolitan in its effort to forecast future Project
production.
Carlsbad shall notify and provide Metropolitan with a copy of relevant agreements if
Carlsbad decides to convey water using the Project facilities to any party that is not an
End User.
Section 4: Billing Process
4.1: Metropolitan shall pay Carlsbad, through Authority, the LRP Contribution specified in
Exhibit B for Allowable Yield. Unless otherwise approved in writing by ,Metropolitan,
no payment under this agreement shall be made by Metropolitan for groundwater, surface
water or potable water deliveries to supplement the Recycled Water system.
4.2: Beginning on July 1,2018, Allowable Yield shall exclude the first 2,050 AFY of
Recycled Water produced by the Project.
4.3: Carlsbad shall invoice Metropolitan monthly for the LRP Contribution based upon the
Allowable Yield billed to the End Users during the previous month. Metropolitan shall
pay Carlsbad for invoiced LRP Contribution pursuant to Sections 4.1 and 4.5 by means of
a credit included on the next water service invoice issued to Authority.
MWD Agreement No. 23300
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4.4: Upon receiving the Metropolitan invoice, Authority shall include the full amount of the
LRP Contribution for the Allowable Yield received from Metropolitan as a credit on its
next water service invoice to Carlsbad.
4.5: Unless otherwise provided for in this Agreement, all invoicing, billing, and crediting
processes shall be in accordance with the rules and regulations established from time to
time by Metropolitan as reflected in Metropolitan’s Administrative Code.
Section 5: Record Keeping and Audit
5.1: Carlsbad shall establish and maintain separate accounting records of Project production
and Allowable Yield for Phases I and II. In addition, Carlsbad shall collect and retain
records of the total annual amount of water conveyed outside of Carlsbad’s service area
using Project facilities. Accounting for the Project shall utilize generally accepted
accounting practices and be.consistent with the terms of this Agreement.
5.2: Carlsbad shall collect and make available to Metropolitan upon request, Project
production and Allowable Yield data for each Fiscal Year of Project operation and retain
records of measurements taken by meters installed pursuant to Section 3.4. If upon
administrative review of previously submitted Allowable Yield data is found to be
incorrect, an adjustment for over- or underpayment of Allowable Yield for each
applicable Fiscal Year shall be paid by Metropolitan or Carlsbad within one year of
determination of actual Allowable Yield. Disputes regarding such administrative review
shall be resolved by formal audit.
5.3: Metropolitan shall have the right to audit Project production and Allowable Yield
determination relevant to the terms of this Agreement for a period of three Fiscal Years
following termination of this Agreement. Metropolitan may elect to have such audits
conducted by its staff or by others, including independent accountants or engineers, as
designated by Metropolitan. Carlsbad shall make available for inspection to Metropolitan
or its designee, upon 30 days advance notice, all records, books and other documents
related to the determination of Allowable Yield. Based on the results of any independent
audit, an adjustment for over- or under payment of Allowable Yield for each applicable
Fiscal Year shall be paid by Metropolitan or Carlsbad within one year of determination
after such adjustment.
5.4: Carlsbad shall keep Project production and Allowable Yield for at least five years
following the end of each Fiscal Year.
5.5: By October 1” of each Fiscal Year, Carlsbad shall provide Metropolitan with a list of
Phase I and Phase II users and the respective quantity of Recycled Water delivered to
each user for the previous Fiscal Year.
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MWD Agreement No. 23300
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Section 6: Term and Amendments
6.1: The Agreement shall commence on the date first herein written and terminate on June 30,
20 19, subject to the performance provisions outlined in Exhibit C. The audit provisions
shall remain in effect three full Fiscal Years after the termination of the Agreement.
6.2: This Agreement may be amended at any time by the written mutual agreement of the
Parties.
Section 7: Hold Harmless and Liability
Carlsbad agrees at its sole cost and expense to ‘indemnify, defend, and hold harmless
Metropolitan and Authority, their Boards of Directors, officers, agents, and employees from any
claim and any and all liability, including but not limited to, any claims for injury or death to any
person, or damage to property for any act or omission or any liability due to water quality which
may arise out of Carlsbad’s approval of, and subsequent construction, operation, or ownership of
the Project including the sale of Project water. Such indemnity shall include all loss related to
any claim made, whether or not a court action is filed, and shall include attorney fees,
administrative and overhead costs, engineering and consulting fees, and all other costs related to
or arising out of such claim of liability.
Section 8: Notice
Any notice, payment, or instrument required or permitted to be given hereunder shall be deemed
received upon personal delivery or 24 hours after deposit in any United States post office, first
class postage prepaid and addressed to the Party for whom intended, as follows:
If to Metropolikn:
The Metropolitan Water District of Southern California
Post Office Box 54153
Los Angeles, California 90054-0153
Attention: General Manager
If to Authority:
San Diego County Water Authority
32 11 Fifth Avenue
San Diego, California 92 103-57 18
Attention: General Manager
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MWD Agreement No. 23300
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If to Carlsbad:
Carlsbad Municipal Water District
5950 El Camino Real
Carlsbad, California 92008-8893
Attention: Deputy City Engineer
Any Party may change such address by notice given to each of the other Parties as
provided in this section.
Section 9: Successors and Assigns
This Agreement shall inure to the benefit of and be binding upon the successors and assigns of
the Parties hereto. This Agreement and any portion thereof shall not be assigned or transferred to
any entity not an original Party to this Agreement, nor shall any of the duties be delegated,
without the express written consent of all Parties. Any attempt to assign or delegate this
Agreement or any of the obligations or benefits of this Agreement without the express written
consent of all Parties shall be void and of no force or effect.
Section 10: Severability
The partial or total invalidity of one or more sections of this Agreement shall not affect the
validity of this Agreement. c
Section 11: Integration
This Agreement comphses the entire integrated understanding between the Parties concerning
the Project, and supersedes all prior negotiations, representations, or agreements.
Section 12: Governing Law
The law governing this Agreement shall be the laws of the state of California and the venue of
any action brought hereunder shall be in Los Angeles County, California.
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MWD Agreement No. 23300
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the
date first hereinabove written.
APPROVED AS TO FORM: THE METROPOLITAN WATER DISTRICT
OF SOUTHERN CALIFORNIA
N. Gregory Taylor Ronald R. Gastelum
General Counsel General Manager
By:
Deputy General $ounsel
By:- m* %
StephenN. Arakawa, Acting Manager
Water Resources Management Group
SAN DIEGO COUNTY WATER AUTHORITY
APPROVED AS TO FORM: CARL&& MUNICIPAI,&&ER DISTRICT
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MWD Agreement No. 23300
EXHIBIT A
The Encina Basin Water Reclamation Project - Phases I and II
Project Description
Overview:
The Encina Basin Water Reclamation Project - Phases I and II (Project) is owned and operated
by the Carlsbad Municipal Water District (Carlsbad). Under the Project, approximately 5,000
acre-feet per year (AFY) is delivered to Carlsbad Recycled Water customers for landscape,
agricultural, commercial and industrial purposes. The Project is located entirely within
Carlsbad’s service area immediately south of Palomar Airport Road and west of El Camino Real
(see Figure 1).
Sources of Recycled Water
1. Meadowlark Water Reclamation Facilily
Under Phase I, the Project currently receives Recycled Water from two external sources. The
majority of the Project’s water needs are supplied by the Meadowlark Water Reclamation
Facility (Meadowlark), which is owned and operated by Vallecitos Water District (Vallecitos).
Meadowlark provides primary, secondary and tertiary treatment to wastewater and has a current
capacity of about 2 million gallons per day. Recycled Water from Meadowlark is delivered to
the Project through Vallecitos’ fail-safe pipeline. Recycled Water in the fail-safe pipeline which
is not used by the Project is delivered to the Encina Water Pollution Control Facility (Encina)
and then discharged to the ocean. Carlsbad has entered into an agreement with Vallecitos to
purchase up to 2,040 AFY from Meadowlark. Meadowlark, the Mahr Reservoir and Vallecitos’
fail-safe pipeline are pre-existing and not part of the Project.
2. Gafier Water Reclamation Plant
The second source of Phase I Recycled Water is the Gafner Water Reclamation Plant (Gafner),
which is owned and operated by Leucadia County Water District (Leucadia). Gafner provides
primary, secondary and tertiary treatment and has a current capacity of about 0.75 million gallons
per day. Raw wastewater can also be sent to Encina via a separate pipeline from Gafner. At
Leucadia’s discretion, secondary treated wastewater can be pumped back from Encina to Gafner
for tertiary treatment. Carlsbad has entered into a take-or-pay agreement with Leucadia to
purchase a minimum of 394 AFY from Gafner for Recycled Water deliveries supplied only to La
Costa South Golf Course. Gafner and Encina are pre-existing and not part of the Project.
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MWD Agreement No. 23300
3. Carlsbad Water Recycling Facility
I Included in the development of Phase II facilities is construction of the proposed 5 million
gallons per day Carlsbad Water Recycling Facility (CWRF). CWRF will provide tertiary
treatment of secondary effluent from Encina and serve Recycled Water to the Project. Additional
facilities may include microfiltration and reverse osmosis to reduce total dissolved solids levels
in Recycled Water.
Project Facilities
Phase I
Phase I of the Project consists of a distribution system, conversion of two potable water
reservoirs to Recycled Water reservoirs and installation of potable water pipelines to replace
pipelines for Recycled Water use. The distribution system includes about six miles of Recycled
Water pipeline, pumping facilities, and a one-mile pipeline to replace the existing potable water
pipeline that will be converted for Recycled Water use. Both the La Costa North and South Golf
Course receive Recycled Water from the Project via existing, non-project pipelines. In addition,
the Project includes capital improvements to Meadowlark including modifications to the effluent
pump station, construction of a diversion structure, and installation of electrical and
instrumentation equipment.
Phase II
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Phase II of the Project will involve construction of the 5 million gallons per day CWRF,
extension of the existing Recycled Water distribution system by approximately 75,000 feet to
serve new users, construction of a new pump station, and conversion of the existing Mahr
Reservoir for Recycled Water storage. Although capital improvements to convert the existing
Mahr Reservoir from potable to Recycled Water use are included in the Project, the Mahr
Reservoir is considered pre-existing and not part of the Project.
End Users
Recycled Water from the Project will be produced for non-potable landscape and agricultural
irrigation, and commercial and industrial purposes within Carlsbad’s service area.
Points of Connection
Project facilities shall terminate at the points of connection to the Project’s sources of supply,
brine disposal facilities, Mahr Reservoir, the potable distribution systems, sewer systems, storm
drains, groundwater extraction systems, Vallecitos’ fail-safe pipeline, and meter connections to
End Users.
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MWD Agreement No. 23300
\ 1’ PROPOSED _ ,,$,/- PUMP STATION
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RECYCLING
Pacific
Ocean nCbLMlvlM I IUI’( FACILITY ym
MAHR -‘; RESERVOIR / .rd I \\“ I \ ,0c- \ \ Ad, \ \ O%r~e;p* : cj*e @ I- -- / 7’ ,’ 1-c ‘r \ :
- EXISTING PIPELINES (PHASE I)
-- - - - . PROPOSED PIPEPLINES (PHASE II)
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Figure 1
ENCINA BASIN WATER RECLAMATION PROJECT
PHASE I & II
EXHIBIT B
LRP CONTRIBUTION SCHEDULE
Fiscal Year
LRP Contribution
(%/AF)
2000-O 1 210 2,250
2001-02 210 2,550
2002-03 210 3,050
2003-04 210 3,450
2004-05 200 3,850
2005-06, 200 4,250
2006-07 200 4,650
2007-08 200 4,950
2008-09 200 5,000
2009-l 0 139 5,000
2010-l 1 100 5,000
2011-12 100 5,000
2012-13 100 5,000
2013-14 100 5,000
2014-15 - 100 5,000
2015-16 100 5,000
2016-17 100 5,000
2017-18 100 4,150”
2018-19 100 2,950’**
l - Subject to reduction provisions outlined in Exhibit C.
Maximum Annual
Allowable Yield’
0
l * - Reduction attributable to eligible deliveries from Phase I Project through l/3 l/201 8.
l ** - Ultimate Yield less Phase I Project Yield per Section 4.2 of this Agreement.
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EXHIBIT C
PERFORMANCE PROVISIONS
1. The following performance provisions apply:
a.
b.
C.
The Agreement will terminate if construction of Phase II facilities has not
commenced by April 1,2002. If this Agreement is terminated under this provision,
the Conversion Agreement shall be restored to full force and effect. There is no
established appeal process for this outcome.
The Agreement will terminate if Project production is not delivered from the
proposed 5 million gallons per day CWRF by April 1,2006. If this Agreement is
terminated under this provision, the Conversion Agreement shall be restored to full
force and effect. The Project sponsor(s) may appeal this decision to Metropolitan’s
Board of Directors.
If Phase II production from the CWRF during Fiscal Years 2004-05 through 2007-08
does not reach the target yield of 1,092 acre-feet (AF), Metropolitan will reduce the
Allowable Yield outlined in Exhibit B. The reduction shall be one-half the shortfall
between the targeted yield and the highest Phase II production in that period. For
example, the Phase II Ultimate Yield of the Project for the following performance
will be revised from 2,950 to 2,879 AFY for Scenario 1 beginning in Fiscal Year
2008-09. There would be no adjustment under Scenario 2.
Fiscal Year
2004-05
2005-06
2006-07
2007-08
Scenario 1 Scenario 2
Phase 2 (AFY) Phase 2 (AFY)
700 700
850 850
900 1,300
950 950
Scenario 1: FY 2008-09 Allowable Yield = 5,000 AF
Shortfall = 0.5 x (1,092 - 950) = 71 AF
The Allowable Yield for Fiscal Years 2008-09 through 2018-19 outlined
in Exhibit B, will be reduced by 71 AF.
Scenario 2: Since Phase II production is greater than 1,092 AF in Fiscal Year 2006-07,
no adjustment is required.
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d. If Phase II production from the CWRF during Fiscal Years 2008-09 through 2011-12
does not reach the target yield of 1,858 AF (or revised Allowable Yield if applicable),
Metropolitan will reduce the Allowable Yield (or revised Allowable Yield if
applicable) outlined in Exhibit B. The reduction shall be one-half the shortfall
between the targeted yield and the highest Phase II production in that period.
I Scenario 1 I Scenario 2 I
Fiscal Year Phase2 (AFY)
2008-09 1.500
Phase 2 (AFY)
1.500
2009-10 1;550 11600
2010-l 1 1,700 1,350
201 I-12 1 l 200 1.400
Scenario 1: FY 2012-l 3 Allowable Yield (Revised) = 4,929 AF
Shortfall = 0.5 x (1,858 - 1,700) = 79 AF
The Allowable Yield for Fiscal Years 2012-l 3 through 2018-l 9 outlined
in Exhibit B, will be reduced by 79 AF.
Scenario 2: FY 2012-13 Allowable Yield = 5,000 AF
Shortfall = 0.5 x (1,858 - 1,600) = 129 AF
The Allowable Yield for Fiscal Years 2012-l 3 through 2018-l 9 outlined
in Exhibit B, will be reduced by 129 AF.
e. If Phase II production from the CWRF during Fiscal Years 20 I, 2- 13 through 20 15- 16
does not reach the target yield of 2,212 AF (or revised Allowable Yield if applicable),
Metropolitan will reduce the Allowable Yield (or revised Allowable Yield if
applicable) outlined in Exhibit B. The reduction shall be one-halfthe shortfall
between the targeted yield and the highest Phase II production in that period. The
adjustment will be made using the same methodology shown in the above examples.
2. If Phase II production from the CWRF reaches 2,950 AF in any one Fiscal Year, there
will be no adjustment to the Allowable Yield thereafter.
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