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Home My WebLink AboutMETROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA (3)H 1 V (17 SE ORDER FOR IMPORTED WATER SUPPLY TO BE PROIFORVIDED A BY PURCHA TER DISTRICT OF SOUTHERN CALNI THE METROPOLITAN WA TERM RCHASER: 10 years 2CiLty of Santa Ana EFFECTIVE DATE: T�ITKL�b4SE DEMAND: January 1, 2003 13,476, acre-feet INITIAL TIER MAXIMUM: 1 ANNUAL TI 12,121.8 acre-feet ORDER COMMITMENT: PURCHASE 0,851.4 acre-feet cli Qj N1. ed terms used in this Purchase Order are provided Definitions of cap ital�z defined in Attachment I 1 Terms used in this Purchase order and not Metropolitan's Administrative Code. in Attachment are defined in COMMITMENT TO PURCHASE. f purchaser's commitment to purchase system Water pursuant to this System Water to Purchaser at the Tier 1 In consideration 0 s to sell such Sys Maximum. System Water sold to Purchase Order, Metropolitan agree up to the Tier I Annual amount r made under the Interim Agricultural Water Supply Rate each year in an ar the Tier 1 Annual Purchaser (excluding deliveries of system Water amount greater thanction with the Program and Long-term Seasonal Storage Service) in an Rate. In conne es and shall be sold to the Purchaser at the Tier 2 Supply Section 4304 of Maximum purchaser also agrees to pay all other applicable rat receipt Of system Water, the Metropolitan from time to time 'in accordance with S f the Effective charges, as established by Metro the Administrative Code. The rates and charges applicable to system Water as 0, Date are shown in Attachment 2. hase System Water from Metropolitan during the Term in an Purchaser agrees to Purc made under the Interim Agricultural Water amount (excluding deliveries of system Water, e Service) not less than the Purchase order Program and Long-term Seasonal Storag Commitment. at Metropolitan has relied and will, during the term Purchaser recognizes and agrees that Purchaser in setting its rates and charges, Order, rely on this commitment by Purc management and of this Purchase 0 and developing its water supply, its capital facilities sups during the Term are planning and providingif Purchaser's applicable System Water Purc tan an amount reliability programs Purchase order Commitment, Purchaser agrees top Metropoli less than the Purc n the Purchase Order Commitment and Purchaser's applicable equal to the difference between times the average of the Tier 1 Supply Rate in effect rn Water purchases during the Term to pay such amount to Metropolitan within the next System The purchaser agrees certifications for special programs that the during the Term, reconciliation of all c Program, Long-term Seasonal -Ycle following the reconci . m Agricultural Water F monthly regular billing C articipate in (e.g. Interim amount in twelve equal m cycle Purchaser may P Purchaser may elect to pay such Storage Service). The he next twelve months beginning with the first regular billing payments over the course of t following the reconciliation of all outstanding certifications for special programs: If the Purchaser elects to pay such amount over the course of the next twelve months following the regular billing cycle any outstanding balance shall bear interest at Metropolitan's then current investment portfolio average yield, All other amounts payable under this Purchase Order shall be billed and paid in accordance with the Administrative Code. The Purchaser further recognizes that this Purchase Order is entered into for the direct benefit of the holders and owners of Metropolitan's Bonds issued from time to time under the Act and the Bond Resolutions, and the income and revenues derived from this Purchase Order will be pledged for the purposes set forth in the Bond Resolutions, including the payment of principal of and interest on such Bonds. RENEWAL.: Prior to but not later than December 31, 2010, the Purchaser may provide a non -binding written notice to Metropolitan of the Purchaser's determination to extend this Purchase Order. Upon the receipt of such notice, the Board of Directors of Metropolitan (the "Board") shall determine whether Metropolitan will continue to provide System Water to member agencies by Purchase Order. If the Board so determines, the Purchaser and Metropolitan shall amend this Purchase Order to include an extended term and/or to include such other terms and conditions as may be mutually agreed by the parties. If the Purchaser elects not to renew this Purchase Order it will terminate upon the expiration of the Term. WATER SERVICE: Conditions of water service by Metropolitan to the Purchaser, including but not limited to (i) delivery points, (H) water delivery schedules, and (iii) water quality, will be determined in accordance with Chapter 5 (Section 4500 through 4514, inclusive, as applicable) of Metropolitan's Administrative Code. In accordance with its Administrative Code, Metropolitan shall use its reasonable best efforts to supply System Water in the quantities requested by the Purchaser, but is not obligated to dedicate any portion of System capacity for the conveyance, distribution, storage or treatment of System Water for the benefit of the Purchaser or any other member agency. Metropolitan shall use its reasonable best efforts to deliver the Base Demand when needed by the Purchaser during the Term; provided however, there shall be no default under this Purchase Order if Metropolitan fails to deliver water to the Purchaser in accordance with any such schedule of deliveries during the Term. By execution of this Purchase Order, the. Purchaser recognizes and agrees that it acquires no interest in or to any portion of the System or any other Metropolitan facilities, or any right to receive water delivered through the System, excepting the right to purchase up to Purchaser's Tier 1 Annual- Maximum at the Tier 1 Supply Rate provided that System Water is available. This Purchase Order governs pricing of the System Water delivered to the Purchaser pursuant to this Purchase Order and does not confer any entitlement to receive System Water. System Water provided to the Purchaser under the terms of this Purchase Order shall be subject to reduction in accordance with the shortage allocation provisions of the Water Surplus and Drought Management Plan (the "WSDM Plan") or other such policies and principles governing the allocation of System Water as adopted by the Board. In the event that Metropolitan's Board determines to reduce, interrupt or suspend deliveries of System Water (excluding deliveries of System Water made under the Interim Agricultural Water Program and Long-term Seasonal Storage Service) any outstanding balance of the Purchase Order Commitment at the end of the Term shall be reduced by the reduction in System Water made available to the Purchaser under this Purchase Order. -2- MISCELLANEOUS: This Purchase Order will be interpreted, governed and enforced in accordance with the laws of the State of California. This Purchase Order will apply to and bind the successors and assigns of the Purchaser and Metropolitan. No assignment or transfer of the rights of the Purchaser under this Purchase Order will be valid and effective against Metropolitan or the Purchaser without the prior written consent of Metropolitan and the Purchaser. If at any time during the Term, by reason of error in computation or other causes, there is an overpayment or underpayment to Metropolitan by the Purchaser of the charges provided for under this Purchase Order, which overpayment or underpayment is not accounted for and corrected in the annual re -determination or reconciliation of said charges, the amount of such overpayment or underpayment shall be credited or debited, as the case may be, to the Purchaser, Metropolitan will notify the Purchaser in writing regarding the amount of such credit or debit, as the case may be-. In no case will credits or debits for charges provided for under this Purchase Order be administered beyond the limit for billing adjustments as specified in Metropolitan's Administrative Code. IN WITNESS WHEREOF, this Purchase Order is executed by the duly authorized officers of the Metropolitan Water District of Southern California and [Purchaser], to be effective January 1, 2003. THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA Ronald R. Gaste um Chief Executive Officer APPROVED AS TO FORM AND CONTENT: 4Genera la CITY OF SANTA ANA gy:-�� [Title] City_ Manager _ ATMI �I9 A � •tl �M� ilb Y YBi�'wA� a' CLERK ate''rH ' VOONVA D ,AS FO I W I+M silstant ty Attorney Attachment 1 Purchase Order for Imported Water Supplies DEFINITIONS "Act" means the Metropolitan Water District Act., California Statutes 1969, Chapter 209, as amended and supplemented from time to time. "Base Demand" means the greater of (i) the Initial Base Demand or (ii) the ten-year rolling average of the Purchaser's Firm Demand, measured on a fiscal year basis. "Bonds" means water revenue bonds or notes issued under the Bond Resolutions. "Bond Resolutions" means Resolution No. 8329 or Resolution No. 8322, both as amended and supplemented, or any other resolution authorizing the issuance of bonds, notes or other obligations secured by Metropolitan's water sales revenues. "Effective Date" means the effective date of this Purchase Order as specified above. "Firm Demand" means the Purchaser's purchases of non -surplus System Water supplies, including full -service and seasonal shift deliveries. "Initial Base Demand" means the Purchaser's highest annual Firm Demand on Metropolitan in any fiscal year during the period from fiscal year 1989/90 through fiscal year 2001/02. In accordance with procedures set forth in Metropolitan's Administrative Code, the Initial Base Demand will be revised to reflect certified and verified deliveries under the Interim Agricultural Water Program and long-term Seasonal Storage Service Program as such certifications affect the Initial Base Demand. "Metropolitan" means The Metropolitan Water District of Southern California. "Purchase Order Commitment" means 60% of the Initial Base Demand times 10. Deliveries of System Water made under the Interim Agricultural Water Program and long-term Seasonal Storage Service, will not count toward the Purchase Order Commitment. "Purchase Order" means this Purchase Order. "Purchaser" means the. member public agency specified above, a duly organized (city/water district/county water authority] of the State of California. "System" means the properties, works and facilities of Metropolitan necessary for the supply, development, storage, conveyance, distribution, treatment or sale of water. "System Water" means water supplies developed by Metropolitan and delivered to the Purchaser through the System or other means (e.g. conjunctive use storage). "Term" means the term of this Purchase Order as specified above. "Tier 1 Annual Maximum" means an amount equal to 90% of the Base Demand. -4- "Tier 1 Supply Rate" means Metropolitan's per -acre-foot Tier 1 Supply Rate, as determined from time to time by Metropolitan's Board of Directors. The initial Tier 1 Rate is $731AF. "Tier 2 Supply Rate" means Metropolitan's per -acre-foot Tier 2 Supply Rate, as determined from time to time by Metropolitan's Board of Directors. The initial Tier 2 Rate is $1541AF. "Water Surplus and Drought Management Plan (WSDM)" means Metropolitan's policy and procedures for managing supplies and drought conditions as adopted by the Board from time to time. -5- Attachment 2 Purchase Order for Imported Water Supplies RATES AND CHARGES Effective January 1, 2003 Tier 1 Supply Rate ($/af) $73 Tier 2 Supply Rate ($/af) $154 System Access Rate ($/af) $141 System Power Rate ($/a f) $89 Water Stewardship Rate ($/af) $23 Untreated Long-term Storage Water Rate ($/af) Untreated Interim Agricultural Water Program ($/af) Treated Long-term Storage Water Rate (Vaf) Treated Interim Agricultural Water Program ($/af) Treatment Surcharge ($/af full -service) Readiness -to -Serve Charge ($millions) Capacity Reservation Charge ($/cfs) Peaking Surcharge ($/cfs) $233 $236 $290 $294 $82 $80.0 $6,100 $18,300