HomeMy WebLinkAboutMETROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, MUNICIPAL WATER DISTRICT OF ORANGE COUNTY AND ORANGE COUNTY WATER DISTRICT - 2008~ INSURANCE N[:~7 REQUIRED
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A-2008-191
October 2008
1 Q 2009 --THIRD-AMENDMENT._ _ ---_.-
TO
GROUNDWATER STORAGE PROGRAM FUNDING AGREEMENT
BY AND AMONG
THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA,
ORANGE COUNTY WATER DISTRICT, AND
MUNICIPAL WATER DISTRICT OF ORANGE COUNTY
AND AMENDED TO ADD
CITY OF ANAHEIM AND CITY OF SANTA ANA
FOR THE PURPOSE OF ADJUSTING THE CERTIFICATION AND BILLING PROVISIONS
OF THE GROUNDWATER STORAGE PROGRAM
C~, ~ DfLtiC~S.
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THIS THIRD AMENDMENT TO THE GROUNDWATER STORAGE PROGRAM
FUNDING AGREEMENT, dated as of June 25, 2003, is entered into on , 2008 by and
among The Metropolitan Water District of Southern California (Metropolitan), a ublic entity of the
State of California, the Orange County Water District (OCWD or Program Agency), a water district of the
State of California and the Basin Manager for the Orange County Basin, the Municipal Water District of
Orange County, a municipal water district of the State of California, (MWDOC or Member Agency), the
City of Anaheim (Anaheim), and the City of Santa Ana (Santa Ana) (Anaheim and Santa Ana are
described as among the "Operating Parties" under the Agreement).
I. RECITALS
A. Since execution of the Groundwater Storage Program Funding Agreement by Metropolitan,
OCWD and MWDOC in June 2003, and the effective date of the First Amendment on May 1,
2004, and the effective date of the Second Amendment on November 16, 2005, (the Groundwater
Storage Program Funding Agreement, as amended by the First Amendment and Second
Amendment, is hereby referred to as the "Agreement") the original parties, Metropolitan, OCWD
and MWDOC, have reconsidered the storage, extraction and invoicing procedures for storing
water within and extracting water from the Orange County Basin and correspondingly allocating
such water to and removing such water from the Metropolitan Storage Account. With respect to
storage, the Agreement currently provides for MWDOC to certify all stored water whether
directly stored or stored in-lieu. Metropolitan then credits the water invoice for MWDOC,
referred to as Member Agency under the Agreement, for water allocated to the Metropolitan
Storage Account. With respect to extraction, the Agreement currently provides that the
Metropolitan water invoice for all water extracted from the Metropolitan Storage Account be
billed to MWDOC, with MWDOC paying the invoice and then submitting it to OCWD, the
Program Agency under the Agreement, to collect for reimbursement from the Operating Parties,
which include two other Metropolitan member agencies, Anaheim and Santa Ana. Because
Metropolitan member agencies are among the Operating Parties, administrative difficulties have
arisen with these procedures. As a result, this Third Amendment will modify the certification and
billings procedures under the Agreement to provide that any participating Metropolitan member
agency overlying the Basin may store water in the Metropolitan Storage Account and to provide
for direct billing by Metropolitan to each participating Metropolitan member agency.
B. The City of Anaheim and the City of Santa Ana are added as parties to the Agreement pursuant to
this Third Amendment solely for the purpose of participating in the Agreement with regard to
revised certification and billing procedures for Metropolitan member agencies.
C. This amendment changes the operation of the Program as follows:
A-2008-191
October 2008
THIRD AMENDMENT
TO
GROUNDWATER STORAGE PROGRAM FUNDING AGREEMENT
BY AND AMONG
THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA,
ORANGE COUNTY WATER DISTRICT, AND
MUNICIPAL WATER DISTRICT OF ORANGE COUNTY
AND AMENDED TO ADD
CITY OF ANAHEIM AND CITY OF SANTA ANA
FOR THE PURPOSE OF ADJUSTING THE CERTIFICATION AND BILLING PROVISIONS
OF THE GROUNDWATER STORAGE PROGRAM
THIS THIRD AMENDMENT TO THE GROUNDWATER STORAGE PROGRAM
FUNDING AGREEMENT, dated as of June 25, 2003, is entered into on , 200$ by and
among The Metropolitan Water District of Southern California (Metropolitan), a ublic entity of the
State of California, the Orange County Water District (OCWD or Program Agency), a water district of the
State of California and the Basin Manager for the Orange County Basin, the Municipal Water District of
Orange County, a municipal water district of the State of California, (MWDOC or Member Agency), the
City of Anaheim (Anaheim), and the City of Santa Ana (Santa Ana) (Anaheim and Santa Ana are
described as among the "Operating Parties" under the Agreement).
L RECITALS
A. Since execution of the Groundwater Storage Program Funding Agreement by Metropolitan,
OCWD and MWDOC in June 2003, and the effective date of the First Amendment on May 1,
2004, and the effective date of the Second Amendment on November 16, 2005, (the Groundwater
Storage Program Funding Agreement, as amended by the First Amendment and Second
Amendment, is hereby referred to as the "Agreement") the original parties, Metropolitan, OCWD
and MWDOC, have reconsidered the storage, extraction and invoicing procedures for storing
water within and extracting water from the Orange County Basin and correspondingly allocating
such water to and removing such water from the Metropolitan Storage Account. With respect to
storage, the Agreement currently provides for MWDOC to certify all stored water whether
directly stored or stored in-lieu. Metropolitan then credits the water invoice for MWDOC,
referred to as Member Agency under the Agreement, for water allocated to the Metropolitan
Storage Account. With respect to extraction, the Agreement currently provides that the
Metropolitan water invoice for all water extracted from the Metropolitan Storage Account be
billed to MWDOC, with MWDOC paying the invoice and then submitting it to OCWD, the
Program Agency under the Agreement, to collect for reimbursement from the Operating Parties,
which include two other Metropolitan member agencies, Anaheim and Santa Ana. Because
Metropolitan member agencies are among the Operating Parties, administrative difficulties have
arisen with these procedures. As a result, this Third Amendment will modify the certification and
billings procedures under the Agreement to provide that any participating Metropolitan member
agency overlying the Basin may store water in the Metropolitan Storage Account and to provide
for direct billing by Metropolitan to each participating Metropolitan member agency.
B. The City of Anaheim and the City of Santa Ana are added as parties to the Agreement pursuant to
this Third Amendment solely for the purpose of participating in the Agreement with regard to
revised certification and billing procedures for Metropolitan member agencies.
C. This amendment changes the operation of the Program as follows:
October 2008
• The Operating Committee remains responsible for agreeing on an Annual Operating Plan,
pursuant to which OCWD directs locations for storage and extraction to further its
management objectives in the Basin.
• Storage and extraction can be accomplished by any overlying Metropolitan member agency
subject to this Agreement, i.e. MWDOC, Santa Ana, or Anaheim, but MWDOC shall be
responsible for coordinating all certifications for storage and extraction.
• When Metropolitan calls for extraction from the Metropolitan Storage Account (Stored Water
Delivery), Metropolitan shall send its water invoice to the participating member agency
(MWDOC, Anaheim, Santa Ana) making the extraction based on the extraction certifications
submitted. The water invoice for Stored Water Delivery will have one set of credits (O&M
and electrical power) for each Metropolitan member agency (MWDOC, Anaheim, Santa
Ana).
• If there is a penalty for non-performance pursuant to Agreement section XIII(B), the penalty
invoice shall be sent by Metropolitan to MWDOC. MWDOC shall pay the penalty invoice
and forward it to OCWD for reimbursement. OCWD shall distribute the penalty to the non-
performing Operating Party(ies), collect the funds, and reimburse MWDOC for its payment
to Metropolitan.
D. By signing this Third Amendment, Anaheim and Santa Ana, which participate in the Program
pursuant to separate Contracts Regarding the Implementation of MWD Long-Term Groundwater
Storage Program, agree to process certifications and billings under the Agreement as set forth in
this Third Amendment.
NOW THEREFORE, it is mutually agreed that the following changes are hereby made to the
Agreement:
In the Agreement, the term "Member Agency" refers solely to MWDOC and the term "Operating
Parties" includes Anaheim and Santa Ana.
1. Section VI. OPERATING COMMITTEE subsection B. Program Agency Obligations,
paragraph 6 is revised to read:
6. Program Agency (OCWD) shall be responsible for prompt payment to Member Agency
(MWDOC) to reimburse Member Agency for any Nonperformance Penalty assessed
MWDOC by Metropolitan pursuant to Section XIII(B).
2. Section VI. OPERATING COMMITTEE subsection C. Member Agency Obligations is revised
to read:
MWDOC hereby agrees to:
1. Process all performance certifications for storage and extraction in accordance with
Exhibits F and G. Coordinate all certifications for storage and extraction accomplished
by MWDOC, Anaheim and/or Santa Ana. MWDOC to process all certifications and to
receive and pay the Metropolitan water invoice for storage and/or extraction
accomplished for the Program by any non-Operating Party that is asub-agency of
MWDOC.
2. Receive and pay the Metropolitan water bill for all Stored Water Deliveries under this
program, except Stored Water Deliveries to Anaheim or Santa Ana, in accordance with
Metropolitan Administrative Code Section 4507. Metropolitan shall send its monthly
water invoice for any Stored Water Delivery for Anaheim or Santa Ana directly to
Anaheim or Santa Ana.
2
October 2008
Receive and pay any Metropolitan invoice for Basin Nonperformance Penalty. Submit
any penalty water bill to the Program Agency for transmittal to appropriate Operating
Parties. Program Agency shall be responsible for prompt payment to MWDOC to
reimburse MWDOC for an Nonperformance Penalty assessed MWDOC by
Metropolitan pursuant to Section XIII(B).
3. Section VI. OPERATING COMMITTEE subsection D. Metropolitan Obligations is revised to
read:
In accordance with the procedures set forth in clause (E) below, Metropolitan hereby agrees to:
Pay costs of operating and maintaining the Prop.13 funded extraction Facilities at the
unit rate (dollars per AF of Stored Water Deliveries) determined by the Operating
Committee for the Operating Party(ies) and for comparable per AF costs for
performance by non-Operating Parties identified in the Annual Operating Plan and
agreed to by the Operating Committee that extracted water as adjusted when and as
required by Section VI(A)(4)(e) (the "Operation and Maintenance Costs");
2. Pay the Electrical Costs as determined in Section VI(A)(4)(f) to extract water from the
basin, if any, equal to Stored Water Deliveries (as defined in Section VII(C) below) for
the applicable period for the Operating Party(ies) and for comparable per AF costs for
performance by non-Operating Parties identified in the Annual Operating Plan and
agreed to by the Operating Committee that extracted the water; and
3. Commencing on the first July 1st after water is initially stored in the Program Basin on
Metropolitan's behalf, and on July 1 of each subsequent year, Metropolitan shall pay an
administrative fee in an annual amount of $80,000 to the Program Agency (as such
amount is adjusted on each anniversary of the execution of this Agreement by the lesser
of 2.5% or the Consumer Price Index for the Los Angeles-Riverside-Orange County
area published by the Bureau of Labor), for the incremental costs and expenses of
administering the Program during such year.
4. Section VI. OPERATING COMMITTEE subsection E. Payment of Operation and Maintenance
Costs and Electrical Costs is revised to read:
Amounts owing by Metropolitan pursuant to Section VI(D) for Operation and Maintenance Costs and
Electrical Costs shall be paid through a credit to Metropolitan's monthly invoice for the Stored Water
Delivery pursuant to Section VII(D). Metropolitan shall send a water invoice to MWDOC, Anaheim
and/or Santa Ana, as appropriate, consistent with certifications for Stored Water Delivery. The
Metropolitan water invoice shall provide one set of unit rates (dollars per acre-foot of Stored Water
Delivery) to credit Operation and Maintenance and Electrical costs to each Metropolitan member agency.
The Operating Committee shall review the credits at the end of the call period to ensure that the credits
reasonably reflect actual O&M and Electrical Costs to extract stored water. Upon the credit to
Metropolitan's invoice for the Operation and Maintenance Costs and Electrical Costs, Metropolitan will
have satisfied its funding obligations with respect thereto.
5. Section VII. GROUNDWATER STORAGE AND EXTRACTION is revised to read as follows:
A. Metropolitan's Storage Account Rights
During any fiscal year of the term of this Agreement, Metropolitan may deliver up to
16,500 AF of Program Water for storage in the Program Basin with an equivalent
October 2008
amount to be accounted for in the Metropolitan Storage Account pursuant hereto;
provided, however, that total Program Water stored on behalf of Metropolitan in the
Program Basin, pursuant to this Agreement, shall never exceed the Maximum Storage
Amount unless approved by the Program Agency. Deliveries shall be subject to the
prior approval of the Program Agency pursuant to the policies described in subsection 5
below. Metropolitan shall not be obligated to pay any fees associated with basin
utilization.
2. Metropolitan may make such deliveries to MWDOC, Anaheim and/or Santa Ana as
provided in the Annual Operating Plan adopted by the Operating Committee on fifteen
(15) days advance notice to both Member Agency and Program Agency. Program
Agency will credit the Metropolitan Storage Account by the amount of Program Water
delivered to MWDOC, Anaheim and/or Santa Ana.
3 Upon notification by Metropolitan pursuant to Section VII(A)(2), Program Agency will
either: (a) directly store the amount of any such delivery of Program Water in the
Program Basin (e.g., by injection or spreading); or (b) store the amount of any such
delivery of Program Water in the Program Basin by in lieu storage, i.e., by reducing
pumping from the Program Basin by the amount of such delivery.
4. The quantity of Program Water delivered to the Metropolitan Storage Account in any
given month shall be determined in accordance with the accounting methodology set
forth in Exhibit F.
5. Metropolitan hereby acknowledges and agrees that (i) the Program Basin is not an
adjudicated basin and this Agreement does not create any storage rights with respect to
the Program Basin, and (ii) the Parties will not treat this Agreement as creating any
storage right with respect to the Program Basin.
B. Certification of Deliveries to Metropolitan Storage Account
Metropolitan shall deliver available Program Water to MWDOC, Anaheim and/or Santa
Ana at the appropriate service connection(s) for storage in the Metropolitan Storage
Account. MWDOC shall be responsible to coordinate submittal of all certifications for
storage in the Basin, and to certify the facts concerning the quantities of such deliveries
to MWDOC. Anaheim and Santa Ana shall copy MWDOC on all certifications of water
stored the Metropolitan Storage Account. All certifications of service connection
deliveries to the Metropolitan Storage Account shall be provided to Metropolitan in
writing or electronically in a format satisfactory to Metropolitan by a responsible officer
of MWDOC, Anaheim, and Santa Ana.
2. Metropolitan will credit the MWDOC, Anaheim and/or Santa Ana invoice at the
applicable rate for each acre-foot of water certified by each respective agency for that
service connection.
Certifications of Program Water for a given billing period must be received by
Metropolitan before 3:30 p.m. on the third working day after the end of the month to
receive credit on the bill for that billing period or any preceding billing period.
No certification received after six months following the end of any month in which a
credit for Program Water is claimed will be accepted.
4
October 2008
When receiving in-lieu supplies that are being stored in the Metropolitan Storage
Account, and after certification, Anaheim and Santa Ana will pay OCWD the applicable
replenishment assessment and their avoided well energy cost.
C. Extraction of Stored Water
In lieu of providing all or some of its regular surface water deliveries to MWDOC, Anaheim
and/or Santa Ana, Metropolitan may, on fifteen (15) days advance notice, deliver water to
MWDOC, Anaheim and/or Santa Ana as provided in the Annual Operating Plan adopted by the
Operating Committee on the first of the following month by requesting Program Agency to debit
the Metropolitan Storage Account (each such delivery being a "Stored Water Delivery");
provided, however, that unless permitted by Program Agency in its capacity as basin manager,
such Stored Water Deliveries shall not, in any fiscal year exceed the lesser of (a) 20,000 AF or (b)
the amount then remaining in the Metropolitan Storage Account. Metropolitan's regular surface
water deliveries to MWDOC, Anaheim and/or Santa Ana will be reduced by the amount of such
Stored Water Delivery to each agency. During an emergency or unforeseen operational
condition, Program Agency will use its best efforts in responding to Metropolitan's request for a
Stored Water Delivery.
If Metropolitan selects the option pursuant to Section VII(C), Program Agency shall cause to be
pumped the amount of the Stored Water Delivery from the Program Basin in lieu of receiving
regular surface water deliveries.
D. Payment for Extraction of Stored Water
Upon call by Metropolitan for Stored Water Delivery, Metropolitan shall invoice MWDOC,
Anaheim and/or Santa Ana, for the amount(s) certified as extracted by each agency and each shall
pay to Metropolitan, in accordance with Metropolitan Administrative Code Section 4507, the then
applicable full-service rate (or its equivalent, as determined by Metropolitan in its reasonable
discretion) as if such Stored Water Deliveries were surface water deliveries through their
respective service connections. The invoice from Metropolitan to MWDOC, Anaheim and/or
Santa Ana shall include credits for the Operation and Maintenance Costs and the Electrical Costs
associated with the Stored Water Delivery. Anaheim and Santa Ana shall copy MWDOC on all
certifications of water extracted from the Metropolitan Storage Account.
6. Miscellaneous
A. The Agreement is, and shall continue to be, in full force and effect, except as specifically amended by
this Third Amendment. This Third Amendment shall not be construed to be a waiver of any provision of
the Agreement, or a consent to any failure to comply with the Agreement.
B. Except as otherwise expressly provided herein, the Agreement is in all respects ratified and confirmed,
and nothing contained in this Third Amendment shall, or shall be construed to, modify, invalidate or
otherwise affect any provision of the Agreement or any right of the parties arising thereunder.
C. This Third Amendment may be executed in as many counterparts as may be deemed necessary or
convenient and by the different parties hereto on separate counterparts, each of which, when so executed,
shall be deemed to be an original, but all such counterparts shall constitute but one and the same
agreement.
October 2008
D. This Third Amendment shall be governed by and construed in accordance with the laws of the State of
California.
E. Copies of the Agreement and First and Second Amendments are attached to this Third Amendment as
Exhibit J.
October 2008
IN WITNESS WHEREOF, the Parties hereto have caused this Third Amendment to the Agreement to be
executed as of the date first set forth above:
THE METROPOLITAN WATER DISTRICT
OF SOUTHERN CALIFORNIA
Jeffrey Kightlinger
Stephen N. Arakawa, Manager
Water Resource Management
Signature Date: -Z,~Z,p~pc,`
APPROVED AS TO FORM:
Karen Tachiki, General Counsel
By: ~ ~
Senior Deputy Gene al C sel
G COUNT~WAT S CT
~/LC..
Y~
Stephen R. Sheldo
President
By:
Mic~iael R. PGlarkus
General Manager
Signature Date: l O ' / 7 - V
TO
By:
MUNICIPAL WATER DISTRICT O ORANGE
COUNTY
By: (/ ,~ ' G
Kevin Hunt
General Manager ~ '~ ` ,,~
Signature Date: ~~
APPROVE~~TO FORM:
_-
General Counsel
7
October 2008
CITY OF ANAHEIM ~"'
By: I ~l~v~~
Marcie L. Edwards, Public Utilities General Manager
Signature Date: ~//~~ll
APPROVED AS TO FORM:
CRISTINA T ,ACTING CITY
ATTO Y /~~~~
By: Alison M. ott, Assistant City Attorney
CITY OF SANTA ANA
_ ,
BY. ~ `~
David N. Ream v l
City Manager
Attest: 1..--`°~~ _
$3~- ~ .~"
Patricia E. Healy
Clerk of the Council
Approved as to Form:
By:
e Sandoval
aging Senior Assist -City Attorney
October 2008
EXHIBIT J
Groundwater Storage Agreement and First and Second Amendments
~`
FIRST AMENDMENT
TO
GROUNDWATER STORAGE PROGRAM FUNDING AGREEMENT
BY AND AMONG
THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA,
ORANGE COUNTY WATER DISTRICT, AND
MUNICIPAL WATER DISTRICT OF ORANGE COUNTY
THIS AMENDMENT TO THE GROUNDWATER STORAGE PROGRAM
FUNDING AGREEMENT, dated as of June 25, 2003, is entered into effective as of May I, 2004
by and among The Metropolitan Water District of Southern California, a public entity of the
State of California, the Orange County Water District, a water district of the State of California
and the Basin Manager for the Orange County .Basin, and the Municipal Water District of
Orange County, a municipal water district of the State of California.
RECITALS
A. Since execution of the Agreement in June 2003, the Parties have developed Annual
Operating Plans for the storage of water in the Metropolitan Storage Account. Water
may be stored through in-lieu deliveries or through direct spreading in basins operated
and maintained by Orange County Water District. To increase opportunity and flexibility
to deliver water to the Metropolitan Storage Account, the Parties have discussed use of
Service Connection OC-59 to make deliveries for direct spreading to the Metropolitan
Storage Account. OC-59 is located on the Rialto Pipeline upstream of Prado Flood
Control Basin and such deliveries are reviewed by the Santa Ana River Watetmaster to
assess channel losses. Because the Agreement addresses only groundwater basin losses,
this amendment is needed to address channel losses should the Parties agree to deliver
w°ater to the Metropolitan Storage Account using Service Connection OC-59.
B. The Parties anticipate that the preferred means to store water in the Metropolitan Storage
Account will be through in-lieu storage or through direct storage using the Yorba Linda
Feeder Bypass, upon completion, to deliver water to the spreading basins owned and
operated by the Orange County Water District. Use of OC-59 for this purpose is
anticipated by the Parties to be used on occasion to increase opportunities to store water.
C. The Orange County Water District, Municipal Water District of Orange County, and
i'Vletropolitan have entered into the Groundwater Storage Program Funding Agreement
and desire by this First Amendment to make certain additions to such Agreement to
incorporate this additional flexibility, while otherwise continuing the Agreement as
amended in full force and effect.
NOW THEREFORE, it is mutually agreed that the following changes and
additions are hereby made to the Agreement:
Flrst Amendment
P,FCORD NO,
CC`>^fQ bOC.
FILE W/OCWD NO. I -5i(~
Groundwater Storage
Section VI. OPERATING COMMITTEE subsection B.7. is revised to read:
B. Program Agency Obligations
~. Maintain records of the amounts of all water stored in and extracted from the
Program Basin pursuant to this Agreement and consistent with the basin Rules
and Regulations, and provide to Metropolitan an amount specified in an account
to be designated as the Metropolitan Storage Account. Program Agency will
maintain a monthly statement regarding the account and will document in its
Engineer's Report all water stored in and withdrawn from the Metropolitan
Storage Account. Program Agency shall account for Metropolitan stored water as
fol tows:
a. Program Member shall credit water which Metropoltian delivers
for storage to the Metropolitan Storage Account on an acre-foot for
acre-foot basis, less any losses assessed;
b. Losses assessed by Program Agency against the Metropolitan
Storage Account will be equivalent to:
(1) Channel losses for any deliveries to the Metropolitan
Storage Account made via Service Connection OC-59
using the formula in Exhibit I to approximate the channel
loss calculation made by the Santa Ana River Watermaster.
(2} Losses assessed by Program Agency against the
Metropolitan Storage Account will be equivalent to losses
experienced by the whole basin prorated to the amount of
water in storage for the Program, as specified in Exhibit I.
c. Program Agency shall debit the Metropolitan Storage Account one
acre-foot for each acre-foot of water produced from the account.
d. Program Agency shall obtain from the Operating Committee on a
monthly basis its report of the amount of storage achieved using
the methodology specified in Section VII(B) and Exhibit F of this
Agreement.
First Amendment 2 Groundwater Storage
MISCELLANEOUS
A. The Agreement is, and shall continue to be, in full force and effect, except as specifcally
amended by this Amendment. This Amendment shall not be construed to be a waiver of
any provision of the Agreement or a consent to any failure to comply with the
Agreement.
B. Except as otherwise expressly provided herein, the Agreement is in all respects ratified
and confirmed, and nothing contained in this Amendment shall, or shall be construed to,
modify, invalidate or otherwise affect any provision of the Agreement or any right of the
parties arising thereunder.
C. This Amendment may be executed in as many counterparts as may be deemed necessary
or convenient and by the different parties hereto on separate counterparts, each of which,
when so executed, shall be deemed to be an original, but all such counterparts shall
constitute but one and the same agreement.
D. This Amendment shall be governed by and construed in accordance with the laws of the
State of California.
i
~`
i
i
f
First Amendment 3 Groundwater Storage
IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment
Agreement to be executed as of the date first set forth above:
APPROVED AS TO FORM:
Jeffery Kightiinger
General Counse % j .
1 r`?
By: '~~
Se r Deputy General Coun
THE METROPOLITAN WATER DISTRICT
OF SOUTHERN CALIFORNIA
v
By: ,,,..A-.-t~
Ronald R. stelu
Chief Executive ~cer
~ " .--,
Date J (,; ;~ ~~ ~; ~ - L ~~.
APPROVED AS TO FORM:
By:
G Cou s
Date ~ t ~'~~~7
Date ~? ~rDy
ORANGE COUNTY WA'>~ER DISTRICT
is R. Bi au, Pr s en
BY~ \ }. r. x n~ . ""~ t
Date ~'" c~/- U`7~
APPROVED AS TO FORM:
MUNICIPAL WATER DISTRICT OF
ORANGE COUNTY
~_ / r
By' t gY~ / ~" r ~'~^t/ a'
`,~ eneral Couns~l~' evin Hunt
General Manager
~;
Date ~',=~.,~1,~'"~~ it
Date ~~ ~i ~% ~ ~ ~
In Triplicate
First Amendment
4 Groundwater Storage
Exhibit I. DETERMINATION OF ANNUAL STORAGE LOSSES is revised to read:
Exhibit I.
DETERMINATION OF LOSSES ASSESSED TO
METROPOLITAN STORAGE ACCOUNT
A. Determination of Channel Losses Associated with Delivery of Storage Water via Service
Connection OC-59.
When Service Connection OC-59 is used to make deliveries to the Meiropolitan Storage
Account, channel losses shall be assessed to Metropolitan using the formula below that shall
reasonably approximate the channel losses calculated by the Santa Ana River Watermaster
("Watermaster"}. Should conditions affecting evapotranspiration and the assessment of these
channel losses by the Watermaster change such that this formula no longer closely approximates
the Watermaster's calculations as determined by the Operating Committee, then a) the
Watermaster's calculation shall be directly used; or b) the Operating Committee shall revise the
formula to obtain a close approximation of the Watermaster's calculation of channel losses.
To assess channel Iosses, delivery flaw rates shall be averaged each month using the total hours
of operation of OC-59 as posted on the Metropolitan Operations website. Any OC-59 deliveries
to the Metropolitan Storage Account shall be certified by Member Agency on a monthly basis.
• For monthly deliveries averaging 50 cfs or greater as measured at the OC-59 meter: 1
loss of the total quantity delivered.
• For monthly deliveries averaging less than 50 cfs as measured at the OC-59: 4% loss of
the total quantity delivered.
Orange County Conjunctive Use Program
OC-59 Channel Loss Worksheet for Month Year
Tota! Monthly
AF Delivered Totai Monthly Operation
Period (hours) Avg. AF/Hour Avg.
AFlpay Average CFS
~ Channel Losses
(AFj
t%Or4%
Column 1: Total Monthly AF Delivered: Obtain OC-59 delivery data from Metropolitan
Operations website
Column 2: Total Monthly Operation Period (hours): Obtain OC-59 delivery data from
Metropolitan Operations website.
Column 3: Average AF/1-lour: Calculate as Column l,~Column 2
Column 4: Average AFiUay: Calculate as Column 3 x 24 hours/day.
Column ~: Average CFS: Calculate as Column 4/1.983 AF/day
Column b: Channel Loss 1 °,% or 4%: Calculate as follows
• IfColumn S > SOefs, then Column 1 x .Ol =Channel Losses
• If Column 5< SOcfs, then Column 1 x .04 =Channel Losses
First Amendment S Groundwater Storage
r
Submit OC-S9 Channel Losses Worksheet with Certifications for Delivery of Water to the
Metropolitan Storage Account.
For example:
Orange County Conjunctive Use Program
OC-S9 Channel Loss Worksheet for Month of May, 2003
Total Monthly
AF Delivered Total Monthly Operation
Period (hours) Avg. AF/Hour Avg. AF/Day Average CFS Channel Losses
(AF)
1% or4%
297.5 AF 72 hours 4.13 AF! hours 99.17 AF/day 50.01 cfs 3.0 AF (1 %)
1,122.4 AF 321 hours 3.50 AFl hours 83.92 AFlday 42.32 cfs 44.9 AF (4~°)
B. Determination of Annual Storage Losses.
Each year OCWD will estimate the amount of groundwater lost from the groundwater basin and
present it to the operating committee for concurrence. The amount of losses will be divided by
1.0 million acre-feet (AF} which is the approximate total useable groundwater storage space in
the basin. This percentage will then be multiplied by the amount of water Metropolitan has
stored in the basin to determine how much Metropolitan water has been lost.
Modeling has shown that the amount of water lost from storage is directly related to the
District's accumulated overdraft, which is currently approximately 405,000 AF. The following
graphic was recently developed from those modeling efforts.
First Amendment 6 Groundwater Storage
~.
BASIN ACCUMULATED OVERDRAFT VERSUS
STORAGE LOSSES TO ADJACENT BASINS
.y
40,000
35,000
30,000
.,
a ^ 25,000
a 20,000
~ V 15,000
10,000
3
5,000
° 0
0 100,000 200,000 300,000 400,000 485,000
OCWD Accumulated Overdraft (AF)
Example Calculation:
Assuming Metropolitan had 60,000 AF stored in the OCWD basin and the basin's
accumulated overdraft was 400,000 AF. Metropolitan would incur storage losses of 0.6% or 360
AF for the year. ({6,000 AF lost / 1.0 MAF} x 60,000 AF = 360 AF). Using the same example,
if the basin's accumulated overdraft was 200,000 AF, Metropolitan would incur losses of 2.1
or 1,260 AF.
First Amendment ~ Groundwater Storage
r ''
SECOND AMENDIVIENT
TO
GROUNDWATER STORAGE PROGRAM FUNDING AGREEMENT
BY AND AMONG
THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA,
ORANGE COUNTY WATER DISTRICT, AND
MUNICIPAL WATER DISTRICT OF ORANGE COUNTY
THIS SECOND AMENDMENT TO THE GROUNDWATER STORAGE
PROGRAM FUNDING AGREEMENT, dated as of Lune 25, 2003, is entered into on
,q;? w,tyM.,,S.~r..~__~_`_~> , 2005 by and among The Metropolitan Water District of Southern California,
a public entity of the State of California, the Orange County Water District, a water district of the
State of California and the Basin Manager for the Orange County Basin, and the Municipal
Water District of Orange County, a municipal water district of the State of California.
i. RECITALS
A. Since execution of the Agreement in June 2003, and the execution of the First
Amendment on ~.~~~~+' ~ ; ~~:~:~- ,Metropolitan has pursued design of the Yorba Linda
Feeder Bypass as committed in its approval of the Program and indicated in Recital F of
the Agreernent. Paragraph IV.A. l .b. of the Agreement also addresses the Yorba Linda
Feeder Bypass and specifies that "If the cost estimates for construction of the Yorba
Linda Feeder Bypass and the subsequent increase in the Maximum Storage Amount is
greater than 5% over the 2003 estimate of $6.8 million and 63,000 AF, then Program
Agency and Metropolitan shall review and consult on alternatives to determine what
course of action to take."
B. 1n December 2044, Metropolitan determined that the cost of the Yorba Linda Feeder
Bypass would increase to $8.7 million based on bids received for construction of the
facility. In accordance with Agreement paragraph IV.A.I.b., Metropolitan reviewed
alternatives with Program Agency and Member Agency on the course of action to take.
This Second Amendment documents agreed-upon changes to the Groundwater Storage
Program resulting from this review.
C. The Orange County Water District, Municipal Water District of Orange County, and
Metropolitan have entered into the Groundwater Storage Program :Funding Agreement
and desire by this Second Amendment to make certain changes to such Agreement, while
otherwise continuing the Agreement as amended in full force and effect.
NOW THEREFORE, ii is mutually agreed that the fallowing changes are hereby made to
the Agreement:
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1. Section VI. OPERATING COMMITTEE subsection A.l.a is revised to read:
a. Metropolitan shall have the right to: (1) deliver and store imported
water supplies in the Orange County Basin ("Program Basin") at
up to a rate of 16,500 acre-feet per year and up to 66,000 AF in
storage at any time ("Maximum Storage Amount"), subject to
higher amounts if approved in advance by Program Agency acting
in its capacity as basin manager, and (2) cause Metropolitan stored
water in the Program Basin to be produced at a rate of 20,000 AF
per year, pursuant to the Exhibit G "Performance Criteria" of this
Agreement. L'pon completion of Program extraction wells, if it is
determined by Program Agency that the wells are able to produce
22,000 AF per year, the "Performance Criteria" at Exhibit G shall
be adjusted accordingly and Metropolitan's right increased to
22,000AF per year. If it is determined that the extraction rate shall
officially remain at 20,000 Afper year, Program Agency will work
with the Operating Parties during times of requested storage
extraction in attempt to achieve 22,000 AF per year. Additionally
Program Agency will consider utilizing its available basin
management programs in attempt to achieve 22,000 AF per year.
However failure to meet this goal will not create any penalties to
Program Agency and the Operating Parties. If the cost of the
Yorba Linda Feeder Bypass increase beyond X8.72 million,
Metropolitan shall not be entitled to any further increases in
storage or performance in compensation even if it decides to incur
such costs and complete the Bypass.
2. Miscellaneous
A. The Agreement is, and shall continue to be, in full force and effect, except as specifically
amended by the First Amendment and this Second Amendment. This Second Amendment shall
not be construed to be a waiver of any provision of the Agreement, or First Amendment, or a
consent to any failure to comply with the Agreement.
B. Except as otherwise expressly provided herein, the Agreement is in all respects ratified and
confirmed, and nothing contained in this Second Amendment shall, or shall be construed to,
modify, invalidate or otherwise affect any provision of the Agreement or any right of the parties
arising thereunder.
C. This Second Amendment may be executed in as many counterparts as maybe deemed
necessary or convenient and by the different parties hereto on separate counterparts, each of
which, when so executed, shall be deemed to be an original, but all such counterparts shall
constitute but one and the same agreement.
D. This Second Amendment shall be governed by and construed in accordance with the laws of
the State of California.
iN WITNESS WHEREOF, the Parties hereto have caused this First Amendment Agreement to
be executed as of the date frst set forth above:
THE METROPOLITAN WATER DISTRICT
OF SOUTHERN CALI{FORMA
~...
Debra C. Man
Interim CEO/General Manager
Signature Date: f y~ ~.~ ~ 1ty ~--
APPROVED AS TO FORM:
Jeffrey Kigh~linger, Gener~i Counsel
r
By: ', f ' '~ l ~~
. r /~'
~; A~fr~eneral Coun~seX
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ORAIUGE COUNTY WATER DISTRICT
~~
By. ,,,'~ .. 4 ~,," ~ ., ,
Virgi Grebbien
Genera] Manager
Signature Date: t, ,
By: ~~_ y~~ ~
Phil Anthony
President
Signature Date: ; f..._. ~~~ ,,F~ ~`
APPRO~IED AS TO
t' 1
I3y: i;'1 P s~
ftECpRR NO. ~~
DCtiVD DDC. `~
iVIUI~IICIPAL WATER DISTRICT OF ORANGE
COUNTY t ,,t
~' ,
Kevin Hunt
General .Manager -
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y. ,; G,,,
Signature Date: ~` ~~
APPROVED AS TO FORM:
By: '-`-- "_~~'t''zr''-sue' ~'~~,~"'.,~
General Counsel
DIRECTORS
CLAUDIA C. ALVAREZ, E50.
PHILIP L. ANTHONY
DON BANKNEAD
WES BANNISTER
KATHRYN L. BARR
DENIS R. BILODEAU, P.E.
JAN DEBAY
IRY PICKLER
STEPHEN R.SHELDON
R06ER C. YOH, P.E.
March 5, 2009
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C?RA[VC~E C®~~~TY '4~~11'EIR ~'~'I~i~~ "°
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Mr. Thom Coughran
Water Resources Manager
City of Santa Ana
220 So. Daisy, Building A
Santa Ana, CA 92703
Dear Mr. Coughran:
OFFICERS
President
STEPHEN R.SHELDON
First Vice President
WES BANNISTER
Second Vice President
DENIS R. BILODEAU, P.E.
General Manager
MICHAEL R. MARKUS, P.E.
Reference: Third Amendment to Groundwater Storage Program Funding Agreement
Enclosed is a fully executed original of the referenced document for your records.
Sincerely,
-~
~ ~~
J nice Durant
istrict Secretary
Enclosures