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APPROVE AN AGREEMENT WITH ORANGE COUNTY WATER <br />DISTRICT FOR SALES AND DISTRIBUTION OF RECYCLED WATER <br />August 1, 2017 <br />Page 2 <br />(A-88-129) was implemented. The Courts' interpretation of California's Constitution and the <br />changing nature of its water supplies compel OCWD to modify its agreements with Green Acres <br />Project retailers, including Santa Ana. <br />The new agreement presented for consideration (Exhibit 2) removes the 80% rate cap, and <br />permits the City to set rates at cost. The City's Water Resources Division has tasked a consultant <br />to determine the cost of service, and to provide guidance on any recommended changes in <br />recycled water rates that may be necessary. Upon completion of the analysis, staff will return to <br />Council if changes are appropriate. Staff is not proposing changes to retail recycled water rates at <br />this time. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #4 - City Financial Stability, <br />Objective #1 (maintain a stable, efficient and transparent financial environment); and, Goal #5 - <br />Community Health, Livability, Engagement & Sustainability, Objective #2 (expand opportunities <br />for conservation and environmental sustainability). <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />Public Works Agency <br />FM/NS <br />Exhibits: 1. Agreement dated September 21, 1988 (A-88-129) <br />2. Agreement dated July 1, 2017 <br />25B-2 <br />