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55401.00000\43832934.1 <br /> <br />Page 6 of 14 <br /> <br />1.8.1 During its annual budget process, MWDOC shall allocate to the City a <br />proportionate share of MWDOC's estimated WUE Program costs ("Choice Costs"). This share of <br />MWDOC's estimated WUE Program costs shall be determined by dividing the total outside <br />funding provided during the previous calendar year to WUE Program participants within the City's <br />service area by the total outside funding provided during the previous calendar year to WUE <br />Program participants within the service area of all MWDOC member agencies and other agency <br />participants. That percentage is then applied to MWDOC's total WUE "choice" program budget, <br />including personnel and overhead costs. An example of the annual reconciliation process is shown <br />in Exhibit C. <br />1.8.2 MWDOC shall invoice the City for Choice Costs, which do not include the <br />WUE Program administration and funding costs described below in Section 1.8.4, no later than <br />September 30 of each year, and the City shall pay the amount due within forty-five (45) days of <br />receipt of the invoice. MWDOC must be notified of any disputed invoice within thirty (30) days <br />of receipt. An invoice template is shown in Exhibit B, which is attached hereto and incorporated <br />by reference. <br />1.8.3 With regard to the Choice Costs referenced in Section 1.8.2 above, a <br />reconciliation of actual WUE Program costs will be performed at the end of each year during <br />MWDOC's budget process, and any debts or credits will be reflected in the invoice sent to the City <br />the following year. <br />1.8.4 MWDOC shall invoice the City on a monthly basis for supplemental <br />funding or enhanced incentives pursuant to Section 1.5.1. These costs are separate from the Choice <br />Costs. <br />2. Shared Consulting Services <br />2.1 The Parties shall continue to participate in and fund collective efforts in planning, <br />research, policy development, and other activities that require engagement of an outside <br />consultant. MWDOC shall provide the City a copy of each consultant's proposal for review and <br />comments. For each consultant so engaged, the City will notify MWDOC in writing if it elects to <br />participate in the consulting services and the limit of its financial participation. The City shall have <br />no obligation to pay for any consultant unless the City has agreed to participate in writing and shall <br />not be responsible for paying any costs above the City's identified limit. <br />2.2 Water Resource Planning <br />2.2.1 Subject Section 2.1, the Parties may participate, without the need for an <br />additional agreement, in joint activities and studies designed to ensure water supply and system <br />reliability, including but not limited to, water reliability analyses, water supply and demand <br />projections, master planning for water use efficiency, water system loss analysis and leak detection <br />studies, preparation of urban water management plans and drought contingency plans, demand <br />management studies, and studies related to water transfers, water recycling, groundwater recovery, <br />and water storage programs. <br />2.2.2 The Parties may participate, without the need for an additional agreement, <br />in joint activities and studies related to system reliability efforts for emergency response. <br />"!#  <br />       <br />