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IRWD will furnish recycled water to the Green Acres Reclamation Project during <br />the winter months at a price not to exceed one-half of the rate OCWD charges the <br />Orange County Sanitation District for recycled water service. <br />i. All contributions as outlined in Section 5.3 of this Agreement including but not <br />limited to payments from IRWD to OCWD for wheeling water through the <br />Project, shall be treated as negative operation and maintenance cost values for the <br />purpose of computing the Operation and Maintenance Component. <br />2. Costs of the following items shall not be used to calculate the Operation and Maintenance <br />Component: <br />a. Operation and maintenance of any facilities beyond the Project's points of <br />connection. <br />b. Operation and maintenance of any facilities necessary to meet National Pollution <br />Discharge Elimination System and California Waste Discharge Requirements. <br />C. Payments made to another department or element of OCWD, MWDOC, CMWD, <br />SA, OCSD, or IRWD, unless otherwise approved in writing by Metropolitan. <br />d. Brine disposal beyond the point of connection to the existing sewer. <br />Public outreach, education, and water marketing activities including but not <br />limited to preparing brochures and handout materials, training, meetings, and <br />workshops. <br />f. Intertie pipeline between the Irvine Ranch Water District Reclamation <br />Project/Green Acres Project. <br />g. Fines, penalties, settlements, or judgments due to Project operation. <br />h. All others not specified in Section 1 of this Exhibit. <br />3. The Annualized Operation and Maintenance Component (O&MC) in dollars per acre-foot <br />for purposes of determining the actual Project Unit Cost each Fiscal Year shall be <br />calculated using the following formula: <br />O&MC = (Actual Annual Cost of O&M) / [(Deliveries to OCSD) + (Allowable Yield)] <br />Agreement 22156 -20- <br />