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HomeMy WebLinkAboutORANGE COUNTY WATER DISTRICT -2017INSURANCE NOT ON FILE A-2017-183 WORK MAY NOT PROCEED CLERK OF COUNCIL DATE: LLOZ Z Z oRtl(�o () ; r "" '� C2) AGREEMENT BETWEEN ORANGE COUNTY WATER, DISTRICT AND 0-, k f Paw. CITY OF SANTA ANA REGARDING DISTRIBUTION AND SALE OF GREEN ACRES PROJECT WATER. THIS AGREEMENT ("Agreement"), is made and entered into as of July 1, 2017, by and between the ORANGE COUNTY WATER DISTRICT, a special governmental district (hereinafter "OCWD") and the CYI'Y OF SANTA ANA, a charter city and municipal corporation organized and existing under the laws of the State of California (hereinafter "RETAILER"). RECITALS A. OCWD was created by the OCWD Act, Ch. 924, Stats. 1933, as amended, for the purpose of protecting and managing the Orange County groundwater basin. The OCWD Act empowers OCWD to manage the groundwater basin, to provide for the conservation of the quantity and quality of water in the groundwater basin, to conserve and reclaim water within or outside of the boundaries of OCWD, to sell or otherwise put to beneficial use any water or reclaimed wastewater in order to conserve groundwater resources, and to distribute water to persons in exchange for ceasing or reducing the extraction of groundwater from the groundwater basin. B. OCWD purchases imported water from the Metropolitan Water District of Southern California (hereinafter "MWD"), through its member public agencies, for spreading and replenishment purposes, and obtains wastewater from the Orange County Sanitation District (hereinafter "OCSD") for renovation -reclamation, spreading and replenishment purposes, and groundwater injection. C. A portion of the reclaimed wastewater currently produced by OCWD is suitable for a number of non -potable uses, including but not limited to, landscape irrigation and industrial uses. D, RETAILER is a municipal corporation and charter city organized and existing pursuant to the laws of the State of California. RETAILER is the exclusive retail water purveyor, including water for residential, industrial, commercial, public agency, agricultural and other uses, within RETAILER's boundaries. RETAILER currently distributes potable water in part purchased from the MWD and in part produced from groundwater within its boundaries. The corporate and water service boundaries of RETAILER arc within the jurisdictional boundaries of OCWD. E. Landscape irrigation and industrial water users within the jurisdictional and service boundaries of RETAILER currently either purchase potable or non -potable water from RETAILER for their use, or produce water from the groundwater basin by means of their own facilities for their use, which private groundwater production is under the jurisdiction and control of OCWD. 1 of 20 F. In 1991, OCWD began operating a water treatment facility, transmission mains and distribution pipeline system (including mainlines and service lines) and, in some cases, on - site plumbing, known as the "Green Acres Project", for the purpose of reclaiming wastewater received from OCSD (hereinafter, "Project Water") and distributing the Project Water for appropriate landscape irrigation and industrial purposes in order to supplement and conserve the supply of potable groundwater available to the residents and water users within the boundaries of OCWD. OCWD entered into agreements with retail water providers within OCWD's boundaries, including RETAILER, for the distribution and sale of Project Water within the respective boundaries of RETAILER and the other retail water agencies contracting with OCWD for Project Water. OCWD has operated the Green Acres Project continually since 1991; and during that period, RETAILER has continually purchased Project Water for resale to certain customers for landscape irrigation and/or industrial uses. OCWD and RETAILER desire to continue use of the Green Acres Project and its associate Project Water. A plat map depicting the location of the facilities comprising the Green Acres Project which OCWD currently operates and maintains is set forth as Exhibit A hereto. G. OCWD and RETAILER mutually acknowledge that the use of reclaimed water for landscape irrigation is of mutual benefit to OCWD and RETAILER in fulfilling their joint responsibilities for the conservation of water resources in accordance with Sections 13550 and 13551 of the California Water Code. 1I. OCWD and RETAILER mutually desire to terminate their existing Project Water agreement and enter into a new agreement to set forth the terms and conditions wider which OCWD will continue to sell Project Water to RETAILER for resale by RETAILER to appropriate landscape irrigation and industrial water users within the service boundaries of RETAILER, and under which RETAILER will continue to purchase Project Water from OCWD for such resale purposes. NOW, THEREFORE, in consideration of the facts recited above and the terms, covenants and conditions herein contained, the parties hereto agree as follows: SECTION ONE: TERMINATION OF PREVIOUS AGREEMENT 1.1 OCWD and RETAILER mutually agree that the written agreement entered into between OCWD and RETAILER, entitled "AGREEMENT BETWEEN ORANGE COUNTY WATER DISTRICT AND CITY OF SANTA ANA REGARDING DISTRIBUTION AND SALE OF GREEN ACRES PROJECT WATER" and dated September 21, 1988, relating to the construction of the Project Facilities and the sale of Project Water by OCWD to RETAILER for resale to RETAILER's Project Customers, is hereby terminated as of the effective date of this Agreement and superseded by this Agreement. 2 of 20 SECTION TWO: FACILITIES FOR DELIVERY AND DISTRIBUTION OF PROJECT WATER 2,1 The parties acknowledge that OCWD has constructed, operates, owns, and maintains, the Careen Acres Project, and all facilities to produce, transport and distribute Project Water for the herein specified purposes (hereinafter, the "Project Facilities"). A plat map depicting that portion of the Project Facilities which OCWD constructed, operates and maintains within the boundaries of RETAILER is attached hereto as Exhibit B. 2.2 The constructed Project Facilities include a distribution pipeline system from the site of the Green Acres Project: Water Treatment Facility, located at 18700 Ward Street, Fountain Valley, California, to the point of connection to each of the proposed Project Water customers within the boundaries of RETAILER (hereinafter, "Project Customers"), for the purpose of distributing Project Water to RETAILER at the points of connection of the Project Customers for purchase by RETAILER and resale to the Project Customers. The names and anticipated annual Project Water demands of each existing and currently allowed new Project Customer are set forth in Exhibit C. 2.3 The parties acknowledge that the Project Facilities are owned by OCWD, and OCWD shall perform maintenance, emergency response, repair and replacement of the Project Facilities located within the boundaries of RETAILER. RETAILER may perform, on behalf of OCWD, maintenance, emergency response, repair and replacement of the Project Facilities located within the boundaries of RETAILER, pursuant to paragraph 5.1 herein below and arranged in writing prior to any such activity. In this regard: 2.3.1 The parties agree to restore, or cause Project Customer to restore, roads, streets, alleys, avenues„ highways„ drainage facilities, or any other public way or property used for construction, operations, or maintenance of the Project Facilities within RETAILER's boundaries to at least the same condition existing prior to construction, operation or maintenance of the Project Facilities, to the reasonable satisfaction of RETAILER and OCWD. 2.3.2 The parties agree to provide, or cause Project Customer to provide, adequate safeguards to afford security to life and property during construction, operation, and maintenance of the Project Facilities, with due regard being given to other existing uses of public roads, streets, alleys, avenues, highways, drainage facilities, public ways and property within the boundaries of RETAILER. 2.3.3 The parties agree to use, or cause Project Customer to use, its best efforts to minimize noise, dust, pollution and problems relating to police and fire protection within the boundaries of RETAILER throughout construction, operation and maintenance of the Project Facilities within RETAILER's boundaries. 3 of 20 2.3.4 The parties understand and agree that OCWD's rights to construct, maintain, operate„ inspect, repair and replace the Project Facilities within the lands and rights -of -way of RETAILER do not constitute vested property rights and are expressly subject to and governed solely by this Agreement. 2.4 The parties acknowledge that RETAILER has, at no cost to OCWD, provided metering devices meeting RETAILER's specifications, and that these metering devices are owned, operated and maintained by RETAILER for the purpose of measuring the quantity of Project Water purchased by RETAILER and resold by RETAILER to each Project Customer, In the event that OCWD and RETAILER determine to expand the Green Acres Project to serve one or more new Project Customers, RETAILER shall provide a metering device for each new Project Customer, and shall own, operate and maintain it at no cost to OCWD. RETAILER shall be responsible for ensuring the accuracy of all metering devices used to measure the quantity of Project Water delivered to each existing or new Project Customer. Any costs incurred in modifying the size of existing RETAILER meters shall be the responsibility of RETAILER; provided, however, that RETAILER has the discretion to delegate that duty to a Project Customer, so long as RETAILER remains ultimately responsible to OCWD for the accuracy of the metering device. The quantity of Project Water measured by the meters to be owned, operated and maintained by RETAILER shall be the sole basis for determining the quantity of Project Water delivered to Project Customer under Section Three of this Agreement. In the event that a meter measuring the quantity of Project Water delivered by RETAILER for resale to a Project Customer indicates a lesser quantity than OCWD's meter measuring the quantity of Project Water delivered to RETAILER for resale to a Project Customer, OCWD shall be responsible for the cost of such difference, and RETAILER shall not be liable therefor. In the event RETAILER has a separate metering device serving exclusively non -potable uses on the premises of a Project Customer, OCWD may sell Project Water to RETAILER by connecting the Project Facilities distribution pipeline system directly to the separate non -potable meter so long as the standards and requirements of RETAILER and any other governmental agency having jurisdiction over the quality of Project Water are satisfied. 2.5 RETAILER shall implement and maintain measures to avoid the risk that Project Water may enter into RETAILER's potable water distribution system at no cost to OCWD. The parties acknowledge that the non -potable Project Water system has been marked with separate marking in accordance with standards and regulations in existence when the Project Water system was constructed, and that any extensions of the Project Water system shall be separately marked as required by law. 2.6 The Project Water distribution pipeline system has been constructed by OCWD with sufficient capacity to allow RETAILER to serve the landscape irrigation and industrial water users participating as Project Customers as shown in Exhibit C. OCWD shall sell to RETAILER, and RETAILER shall purchase from OCWD, sufficient quantities of Project Water for RETAILER to sell to those Project Customers. OCWD and RETAILER mutually understand 4 of 20 and agree that additional non -potable water users within the boundaries of RETAILER may at some future time be served with Project Water and become Project Customers without the necessity of amending this Agreement, provided that a water user within the service boundaries of RETAILER shall become a new Project Customer only with the approval of both OCWD and RETAILER, and provided further, that OCWD shall have the sole discretion to determine whether to expand the Project Facilities or the production and distribution capacity of the Project Facilities to meet any future demand for Project Water that may be generated within the boundaries of RETAILER. All future water users within the service boundaries of RETAILER who become Project Customers shall be subject to the Project Rules as defined in paragraph 6.2 and adopted by RETAILER pursuant to paragraph 6.3 herein below. 2.7 The addition of infrastructure to serve future Project Customers shall be approved by OCWD, RETAILER, and pertinent regulatory agencies. Additional infrastructure may include service laterals, mainline pipelines, pump stations, vaults, meters, and other components. Unless authorized in writing by OCWD, the permitting, design, construction, inspection, specialty inspection and materials testing, start-up, on -going regulatory compliance, and those costs described in Paragraph 2.3 shall be performed at no expense to OCWD. The OCWD staff time for review of the design, construction inspection of the additional infrastructure, and assistance in regulatory permitting shall be included in the annual Project Water costs set forth in paragraph 3.2 as components of the Project Water rate charged by OCWD to RETAILER, unless otherwise stipulated in writing by OCWD. OCWD shall cause the Project Facilities within the boundaries of RETAILER. to be constructed in accordance with the construction standards of RETAILER. Addition of infrastructure located within public right-of-way and upstream of the RETAILER meters described in paragraph 2.4 shall become the property of OCWD after written construction acceptance by OCWD, RETAILER, and any other pertinent agency. Additional infrastructure within private property shall not be owned by OCWD, unless authorized in writing by OCWD and pursuant to an easement granted from the land owner to RETAILER and/or OCWD. Unless authorized in writing by OCWD, new RETAILER meters shall be located in the public right-of-way. The regulatory permitting and/or approvals of any future Project Customer site shall be obtained prior to delivery of Project Water to that site. RETAILER shall lead the effort to obtain these permits and/or approvals and OCWD shall assist and coordinate with the RETAILER. 2.8 Major expansions to the Project Water distribution system may be performed under a different ownersbip-maintenance model than described in Section 2 if mutually approved and defined in writing by OCWD and RETAILER. SECTION THREE: PURCHASE AND SALE OF PROJECT WATER 3.1 RETAILER shall have the exclusive right to purchase Project Water from OCWD, at the point of connection to each Project Customer, and to resell Project Water to the Project Customers shown in Exhibit C, and such other landscape irrigation and industrial water 5 of 20 users within the boundaries of RETAILER that may be added as Project Customers in accordance with paragraphs 2.6, 2.7 and 2.8 above. 3.2 RETAILER shall purchase the Project Water from OCWD, at the point of its metered commections, for an amount equal to OCWD's cost of producing and distributing Project Water based on the methodology set forth in Exhibit D, as determined by OCWD after consultation with the Operating Group defined in paragraph 3.3. Capital improvements such as changes in treatment plant technology and distribution system operation shall be included in OCWD's costs. OCWD shall annually calculate the Project Water rate, and provide written notice to RETAILER of the then -effective Project Water rate. Upon request, OCWD shall provide RETAILER with supporting data used to calculate the Project Water rate. OCWD shall have discretion to smooth out anticipated increases in debt and capital improvement payments over several years preceding and following actual OCWD cost incurrence years, in order to avoid significant and sudden increases to the Project Water rate, When a smoothing method is applied by OCWD, it will be discussed with the Operating Group, as defined in paragraph 3.3, and disclosed on the annual revision of Exhibit D. The point of connection and sale of the Project Water from OCWD to RETAILER shall be at the meter which measures the flow of Project Water to each Project Customer, as described in paragraph 2.4 herein above. The parties mutually recognizc and agree that the Project Water rate may change each year and. become effective on July 1 of each year during the term of this Agreement. 3.3 Staff representatives of OCWD, RETAILER, and other retail agencies participating in the Green Acres Project shall form an "Operating Group" to meet: at least once prior to the annual publishing of the revised Exhibit D by OCWD, The Operating Group shall meet and confer with regard to the proposed Exhibit D contents, future Exhibit D estimates, planned Green Acres Project capital and repair projects, and review previous Green Acres Project projects, Project Water performance, and revisions to Exhibit E. 3.4 The governing body of RETAILER shall establish the rate for the resale of Project Water to each Project Customer in accordance with applicable legal requirements which may include cost of service. 3.5 RETAILER shall read the Project Water meter for each Project Customer on a one (1) month cycle or in concurrence with RETAILER's schedule for reading meters which measure the quantity of potable water delivered by RETAILER. Within fifteen (15) days thereafter, RETAILER shall transmit to OCWD a statement setting forth the Project Water rate established by RETAILER pursuant to paragraph 3.4 during that billing period, a description of the maintenance, repair and replacement activities of RETAILER on Project Facilities, the amount of such actual costs incurred by RETAILER pursuant to paragraph 5.1 herein below during that billing period, and indicating, for each Project Customer, the current meter reading, the previous meter reading, and the total quantity of Project Water purchased from OCWD and resold by RETAILER to such Project Customer during the billing period. Together with this statement, RETAILER shall transmit to OCWD payment in accordance with paragraph 3.2 for the Project Water purchased from OCWD by RETAILER and resold by RETAILER to all of the 6 of 20 Project Customers during the billing period, after deducting therefrom the actual costs incurred by RETAILER in maintaining, repairing and replacing the Project Water distribution system within RETAILER's boundaries as set forth in paragraph 5.1 herein below. SECTION FOUR: PROJECT WATER QUALITY REGULATIONS 4.1 OCWD shall deliver and sell to RETAILER pursuant to this Agreement Project Water that conforms to all current and future requirements established by the California Regional Water Quality Control Board -- Santa Ana Region, California State Water Resources Control :Board. Division of Drinking Water, County of Orange Health Care Agency, and all other federal, state and local agencies having jurisdiction to fix minimum standards. The anticipated quality of Project Water is shown on Exhibit E attached hereto and incorporated herein, and this Exhibit E shall subsequently be revised to conform to any future regulatory requirements; provided however, that OCWD shall not have obligation to modify the quality of Project Water to meet the needs of any particular Project Customer. OCWD shall revise Exhibit E if and when OCWD modifies the tertiary treatment technology, disinfection process, and/or introduces OCSD Plant #2 effluent to the OAP treatment process, and provide written notice of such revised Exhibit E to RETAILER. The parties acknowledge that Exhibit E can be revised by OCWD without amending this Agreement after such revision's discussion at the Operating Group. OCWD shall strive to meet or exceed the minimum criteria stated in Exhibit E. 44.2 During the term of this Agreement, OCWD shall pay all costs imposed by any and all governmental agencies having jurisdiction over the quality or use of Project Water for the issuance of any permits, licenses or approvals required for the production treatment, distribution or sale of Project Water. If incurred by OCWD, the costs described in this paragraph shall be included in the annual Project costs set forth in paragraph. 3.2 as components of the Project Water rate charged by OCWD to RETAILER. 4.3 OCWD shall inform RETAILER promptly after becoming aware of any proposed or actual modifications by any agency having jurisdiction over the quality of Project Water to any requirements governing the minimum standards of quality for or use of Project Water, or of any changes in the legally permissible uses which might affect the use of the Project Water sold by OCWD to RETAILER for resale by RETAILER to Project Customers, and OCWD shall bear all costs of conforming to any such future requirements. If incurred by OCWD, the costs described in this paragraph shall be included in the annual Project costs set forth in paragraph 3.2 as components of the Project Water rate charged by OCWD to RETAILER. 4.4 RETAILER shall perform Project Customer inspection and testing in accordance with the Project Rules defined in paragraph 6.2, prepared by OCWD and transmitted to RETAILER who may make additions, as amended from time to time by OCWD, and provide a written record of such activities to OCWD within sixty (60) days of their performance. Expenses for these activities shall not be reimbursed by OCWD. 7 of 20 SECTION FIVE: OPERATING OBLIGATIONS OF THE PARTIES 5.1 During the term of this Agreement, OCWD shall manage, operate and maintain the Project Facilities in an efficient manner and in accordance with the highest standards of skill and workmanship; provided, however, that OCWD tnay contract with RETAILER for the performance by RETAILER of the actual maintenance, repair and replacement responsibilities with respect to those Project Facilities located within the service boundaries of RETAILER. RETAILER recognizes the special quality considerations relating to Project Water, and RETAILER shall perform its maintenance, repair and replacement responsibilities in an efficient manner and in accordance with the highest standards of skill and workmanship. OCWD retains the right to make repairs to Project Facilities within the service boundaries of RETAILER. RETAILER shall receive as a credit against all monies due OCWD, pursuant to paragraph 3.2 herein above for the sale of Project Water, the cost of such maintenance, repair and replacement activities actually undertaken by or on behalf of RETAILER, which costs shall include the actual labor, material and equipment costs, plus overhead costs incurred by RETAILER and necessary for such maintenance, repair and replacement activities. 5.2 Notwithstanding the provisions of paragraph 5.1, the operating responsibility of OCWD with respect to the Project Facilities shall include the maintenance of quality, quantity and pressure of the Project Water, and compliance with all regulatory requirements and conditions applicable to the distribution and sale of Project Water, to the point of connection to each Project Customer. 5.3 RETAILER shall, at no cost to OCWD, assume ownership, service, maintenance and reading of the Project Water meter and valve set and meter box/vault for each Project Customer in the same manner that RETAILER would for a customer service meter attached to its potable water system. RETAILER further shall, at no cost to OCWD, be responsible for customer service functions relating to all Project. Customers, including but not limited to billing and collection of payments from Project Customers for the Project Water, record keeping, and notification to OCWD of the quantity of Project Water delivered through each Project Customer's meter during each meter reading period. 5.4 OCWD shall have the right to review the books, records and accounts maintained by RETAILER relating to the Project water and Project Customers during normal business hours, upon forty-eight (48) hours prior written notice to RETAILER. 5.5 OCWD shall operate the Project Facilities in such a manner that Project Water shall be delivered to the point of connection to each. Project Customer on a continuous basis at a pressure of not less than fifty (50) pounds per square inch. RETAILER shall assist OCWD in achieving this pressure criterion by staggering Project Customer demand timeframes as needed. OCWD shall strive to have a pressure greater than one hundred (100) pounds per square inch entering the Project Facilities from the Water Treatment Facility. If OCWD's analysis of future Project Customer sites indicates this pressure criteria cannot be met by the existing Project 8 of 20 Facilities, OCWD shall declare by written notice to RETAILER that this standard of service will not apply to these future Project Customers. 5.6 Except as provided in paragraph 9.6 below, in the event that, at any time during the term of this Agreement, OCWD for any reason cannot or chooses not to produce Project Water from its Green Acres Project Water Treatment Facility described in paragraphs 2.1 and 2.2 above, OCWD shall provide through the Project Facilities, or otherwise, at a cost equal to the cost of Project Water, sufficient water of a quality at least equal to the quality of Project Water to meet the landscape irrigation and industrial water needs of all of the Project Customers. OCWD, however, shall have no such obligation in the event that Project Water cannot be delivered to Project Customers due to damage to, breaks, or other disruptions in the distribution facilities transporting Project Water to Project Customers, including maintenance and additions to Project Facilities. OCWD shall strive to restore Project Water delivery within 72 hours of disruptions. With respect to non -emergency maintenance, repair, and construction work, OCWD shall coordinate such interruptions with RETAILER at least thirty (30) days in advance. 5.7 If the State of California proclaims a drought "State of Emergency" and restricts the use of ,potable water supplies, RETAILER will attempt to reduce the use of recycled water consistent with the RETAILER's conservation standards mandated by the State. Notwithstanding the RETAILER's existing regulations, RETAILER'S governing body shall consider enacting permanent mandatory water conservation requirements for recycled water use and any additional restrictions during periods of water supply shortages. SECTION SIX: PROJECT WATER RULES AND REGULATIONS 6.1 All Project Water produced by OCWD for delivery and sale to RETAILER shall be in accordance with the terms and conditions of the discharge requirements and primary user permit for the Project Water issued to OCWD by the California Regional Water Quality Control Board — Santa Ana Region. OCWD has obtained and shall maintain a blanket primary user permit for the production, distribution and sale of Project Water, and shall at all times maintain and comply with all present and future provisions thereof and all renewals or subsequent such permits. 6.2 The parties acknowledge that OCWD has promulgated, and the parties agree that OCWD and RETAILER shall enforce rules and regulations regarding the distribution, delivery and sale of Project Water to RETAILER, and governing the use of Project Water resold by RETAILER to Project Customers ("Project Rules"}. OCWD shall maintain approvals from all federal, state, and local agencies having jurisdiction over the production, quality and use of Project Water, including, but not limited to, the California Regional Water Quality Control Board — Santa Ana Region, California State Water Resources Control Board Division of Drinking Water, and County of Orange health Care Agency, that such Project Rules comply with the regulations, requirements and orders of such regulatory agencies. M 6.3 The parties acknowledge that OCWD 1w heretofore prepared and transmitted to RETAILER the 'Project Rules, and that RETAILER has itself adopted the Project Rules and incorporated them into RETAILER's promulgated rules and regulations governing the distribution, delivery and sale of water within the service boundaries of RETAILER. Promptly upon adoption of RE' MLER's revised promulgated rules and regulations, RETAILER shall transmit to OCWD RETAILER's adopted Project Rules. Should OCWD choose either to make reasonable amendments or modifications to the Project Rules not contrary to this Agreement, or be required by any governmental agency exercising jurisdiction over the distribution, sale or use of the Project Water to modify or amend the Project Rules, OCWD shall promptly furnish such modifications or amendments to RETAILER; and RETAILER, after being provided a ninety (90) day period in which to review, comment upon, and/or meet and confer with OCWD regarding such proposed modifications or amendments, shall incorporate such proposed modifications or amendments into RETAILER's adopted rules and regulations. Project Rules may be revised by OCWD without amendment to this Agreement. The parties acknowledge that OCWD and RETAILER have participated in a group of Orange County agencies to standardize procedures, inspection, testing, and submission requirements for applications seeking approval from regulatory authorities for new Project Customer sites and the ongoing inspection and testing of existing sites. The parties further acknowledge that upon the finalization of the Orange County standardized practices, the Project Rules will be amended to incorporate the standardized practices, which finalization is expected in 2017, RETAILER shall ensure that each Project Customer has a copy of the Project Rules and that the Project Customer adheres to the Project Rules, 6.4 RETAILER shall include in its promulgated rules and regulations provisions requiring that any current or future Project Customer permit representatives of OCWD and RETAILER to enter the premises of the Project Customer at all reasonable times for the purpose of monitoring, inspecting, analyzing and observing the Project Customer's on -site Project Water facilities and the utilization by the Project Customer of Project Water. 6.5 In connection with RETAILER's adoption of modifications or amendments to the Project Rules as part of its amended rides and regulations, and at the request of RETAILER, OCWD shall cooperate with and assist RETAILER in obtaining from the State of California Water Resources Control. Board any necessary certifications, findings or orders authorized under Sections 13550 and 13551 of the California Code to require the use of Project Water for non - potable uses within the service boundaries of RETAILER. 6.6 The parties understand and agree that Project Water delivered and sold by OCWD to RETAILER pursuant to the terms of this Agreement has limited uses, and OCWD shall deliver and sell to RETAILER Project Water only for those uses and purposes which are legally permissible under the laws of the State of California and the rules, regulations and directions of the appropriate federal, state and local regulatory agencies exercising jurisdiction over the quality and use of Project Water. In this regard, OCWD and RETAILER shall cooperatively enforce Project Rules limiting the use of Project Water to legally permissible landscape irrigation 10 of 20 and industrial applications, and shall monitor the use of Project Water by Project Customers to safeguard against any misuse or improper application of Project Water by Project Customers. SECTION SEVEN: INDEMNITY AND INSURANCE 7.1 OCWD shall hold RETAILER. harmless from and against and shall indemnify RETAILER from any liability, loss, costs, expenses or damages however by reason of any injury (whether to body, property, or personal or business character or reputation) sustained by or to any person or property by reason of any act, neglect, default, or omission of OCWD or any of its agents, employees, or representatives, or caused by reason of the design, construction, operation or maintenance of the Project Facilities, or the distribution and sale to RETAILER for resale purposes herein of Project Water that does not meet the quality standards set forth in Title 22 of the California Administrative Code; provided, however, that OCWD shall not be responsible for the negligent operation, maintenance or repair of the Project Facilities within RETAILER'S service boundaries by RETAILER, the negligent operation, maintenance or repair by RETAILER, any Project Customer of Project Water distribution and storage facilities located on the lands of any Project Customer, and/or the misuse or misapplication of the Project Water on the Project Customer's side of the Project Water meter by any person, including RETAILER or any Project Customer. If RETAILER is sued in any court for damages by reason of any of the acts for which OCWD is required to indemnify RETAILER in this paragraph 7.1, including but not by way of limitation, damages arising out of a products liability claim, OCWD shall. defend said action (or cause same to be defended) at its own expense and shall pay and discharge any and all amounts of judgement that may be rendered in any such action. If OCWD fails or neglects to so defend in said action, RETAILER may defend the same and any expenses, including reasonable attorney's fees, which it may pay or incur in defending said action and the amount of any judgement which it may be required to pay shall be promptly reimbursed upon demand. Nothing herein is intended to nor shall it relieve RETAILER or any Project Customer from liability for its own willful acts or active negligence. 7.2 OCWD shall cause RETAILER to be named as an additional insured on OCWD's general liability policy of insurance with respect to the sale and distribution to RETAILER of Project Water within the service boundaries of RETAILER, and OCWD shall provide RETAILER. with certificates of insurance and endorsements evidencing such insurance coverage. 7.3 OCWD shall not commence nor permit any contractor or subcontractor to commence work or construction of any of the Project Facilities that are located within the service boundaries of RETAILER until OCWD has obtained, or has caused its contractors to obtain, comprehensive general liability insurance providing coverage for bodily injury, personal injury and property damage, and which shall include as additional insureds RETAILER, its City Council, Board Members, boards and commissions, officers, agents, vendors, and employees, but only while acting in their capacity as such and only as respects operations of the original named 11 of20 insured, its subcontractors, agents, officers and employees in the performance of the construction contract. OCWD shall furnish RETAILER with certificates of insurance and endorsements showing insurance coverage as described above. RETAILER shall incur no expense in connection with obtaining and maintaining any insurance required tinder paragraph 7.2 and 7.3. SECTION EIGHT: DISPUTES 8.1 In the event of any dispute arising under this Agreement, the parties hereto agree to utilize the arbitration procedure set forth in ttus Section Eight as the sole and exclusive means of resolving any such dispute. 8.2 Arbitration shall be initiated by any party hereto serving upon any other party a written demand for arbitration, which demand shall describe with specificity the nature of the dispute. Except as specified herein, the arbitration shall be conducted pursuant to the provisions of California Code of Civil Procedure, Section 1280, et seq. The parties hereto agree that there shall be a single neutral arbitrator who shall be a civil engineer knowledgeable in water facilities operation and reclaimed wastewater, who shall be selected in the following manner: 8.2.1 The demand for arbitration shall include a list of the names of five (5) persons acceptable to the demanding party for appointment as arbitrator. The responding party shall determine if any of the names submitted are acceptable, and, if so, shall inform the other party within ten (10) days of actual receipt of the arbitration demand, and such person will be designated as arbitrator; 8.2.2 In the event that none of the names submitted by the demanding party is acceptable to the responding party, or if for any reason the arbitrator selected is unable to serve, the responding party shall submit to the demanding party a list of the names of five (5) persons acceptable to the responding party for the appointment as arbitrator. The demanding party shall in turn have ten (10) days from actual receipt of the list in which to determine if one such person is acceptable; 8.2.3 If the parties are unable mutually to agree upon a neutral arbitrator as described above, the matter of the selection of an arbitrator, qualified as above, shall be submitted to the Orange County Superior Court pursuant to Code of Civil Procedure Section 1281.6. Upon selection of an arbitrator, the arbitration shall be conducted consistent with the provisions of Code of Civil Procedure Section 1280, et seq., as are deemed practicable by the arbitrator, considering the nature of the dispute. 8.3 The costs of arbitration, including but not limited to reasonable attorneys' fees, shall not be recoverable by the party prevailing in the arbitration, including the court costs and reasonable attorneys' fees incurred if an arbitration conducted hereunder is appealed to a court pursuant to the procedures set forth in Code of Civil Procedure Section 1280, et seq. This provision shall not relieve any party of the duty to indemnity, defend, and hold harrnless the other party under this Agreement, 12 of 20 SECTION NINE: MISCELLANEOUS PROVISIONS 9.1 Notices: All notices, payments, transmittals of documentation and other writings required or permitted to be delivered or transmitted to any of the parties under this Agreement shall be personally served or deposited in a United States mail depository, first class postage prepaid, and addressed as follows: If to OCWIi: Orange County Water District 18700 Ward Street P.O. Box 8300 Fountain Valley, California 92728 Attn: General Manager If 10 RETAILER: City of Santa Ana. 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92701 Attn: Clerk of the Council With a courtesy copy to: Director. of Public Works (same address as above) or such other address or person as OCWD or RETAILER shall direct in writing. Service of any instrument or writing by mail shall be deemed complete forty-eight (48) hours after deposit in a United States mail depository. 9.2 Term and Amendment: The term of this Agreement shall be for thirty (30) years from the date hereof. Either party shall have the right to terminate this Agreement by written notice to the other at least three (3) years prior to the termination date. The parties must mutually agree in writing to extend the term of this Agreement. This Agreement may only be amended or modified by mutual agreement in writing of OCWD and RETAILER. 9.3 Limitation on Sales by OCWD: OCWD acknowledges and agrees that, except as provided herein or with the prior written consent of RETAILER, OCWD is not now and will not in the future become a wholesale or retail seller of Project Water within the service boundaries of RETAILER without RETAILER's written consent, and OCWD further agrees that it will not use or contract with any entity other than RETAILER for the purpose of selling and distributing Project Water within the service boundaries of RETAILER. 9.4 Basin Limitations: OCWD and RETAILER mutually understand and agree that any and all Project Water delivered and sold by OCWD hereunder shall not constitute either "supplemental sources" or "groundwater supplies" for the purpose of the annual establishment of 13 of 20 basin groundwater production requirements and limitations by OCWD pursuant to Section 31.5 of the OCWD Act. Project Water is hereby established as a separate class of water for the purposes of Section 31.5 of the OCWD Act. 9.6 Conditions Subsequent: The performance of this Agreement is conditioned upon OCWD's continued ability feasibly to produce and distribute Project Water for sale to RETAILER and resale by RETAILER to Project Customers in a cost-effective manner. Subsequent to the date of this Agreement, should OCWD determine in its sole discretion that unanticipated increases in the cost of producing or distributing Project Water or new or modified regulatory requirements governing the production, distribution, quality or use of Project Water render the Green Acres Project economically unfeasible, OCWD may cease production and distribution of Project Water upon ninety (90) days written notice to RETAILER. In the event that OCWD ceases the production and distribution of Project Water pursuant to this paragraph M, this Agreement shall terminate and OCWD shall incur no liability to RETAILER or any Project Customer by reason of the termination of this Agreement or the termination of production and delivery of Project Water. 93 No Duplication of Services IrugWgd or seated: OCWD and RETAILER mutually understand and agree that the construction and operation of the Project Facilities and the distribution and sale of Project Water by OCWD to RETAILER for sale by RETAILER to Project Customers pursuant to this Agreement do not constitute either a duplication of RETAILER's retail water service or a taking of any property of RETAILER within the meaning of Section 1501, et seq„ of the California Public Utilities Code, RETAILER shall have no right to institute any action against OCWD pursuant to Sections 1503, 1504 or 1505.5 of the Public Utilities Code by reason of the construction and operation of the Project Facilities and the distribution and sale of Project Water by OCWD to RETAILER in conformance with this Agreement. 9.8 Warranty: OCWD represents and warrants that under the OCWD Act, OCWD, without the consent of any other public agency water purveyor, may enter into this Agreement to deliver and sell Project Water to RETAILER for resale by RETAILER to Project Customers or lands within the service boundaries of RETAILER. 9.9 onstruction. This Agreement shall be construed according to its plain meaning and as if prepared by all parties hereto. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 9.10 IntegraAM: The parties herein have set forth the whole of their agreement, and the performance of this Agreement constitutes the entire consideration intended herein. 9.11 ucces o s: This Agreement and all of the provisions herein shall be binding upon and inure to the benefit of OCWD and RETAILER, and their respective successors and assigns. 14 of 20 WHEREFORE, the parties herein have executed this Agreement as of the date set forth above, APPROVED AS TO FORM: By. County Water District APPROVED AS TO FORM: SONIA R. CARVALHO, CITY ATTORNEY BycjL ohn. M. Futile, Assistant City Attorney ATTEST g By Maria D. kluizar City Clerk Orange County Water District M. By CITY OF SANTA ANA Ming City ager RECOMMENDED FOR APPROVAL By _ I�redlmousavipour Director of Public Works 15of20 _r ® Yreaamn(plantaatlla RerervNr®Oi.SaWWinn PryetAa 16 of 20 9xhlhitA Exhibit S: Green Acres Project Facilities within Jurisdiction of RETAILER a, { J _ vemAVE s7 i (yEBTMl �BT�q AVE - 1 TM BT + 1 'm TROLSAAE o; BAgfAklli`e� ATtIbT i8T 8TT _ Banta ��L %kmoM Vfi 44 TALKER VE El LAVE Zt. lAftiIEL AVE I' a a's 1 2 -Ie Miles C Tremmnnv FiontmakraeyvrvaU Exhibit B oisWuacn tnUei�e Rrsen Aems Froicet Facilities Within JUPIaEiCibn of RETAILER 17 of 20 Exhibit C: 'RETA1LER's Current Project Customers and Anticipated Annual Demand Project Customer Meter Number Estimated Annual Usage acre-feet peryear) Centennial Soccer Fields 7267 354 18.0 Centennial Soccer Fields 7266� 66 0.3 Centennial Soccer Fields 7273 � 77341647 22.5 Centennial Soccer Fields 7273 (B) 74947636 35.6 Boma Kora Park 144 18,6 Bike Trail 3611 S. Flower St. 3173 2.7 Meradden School 142 34.0 Adams Park 75572383 9.5 Chroma System -Carpet Dyeing 35 8.9 Chroma S stem-Landsca e 1909 2.4 South Coast Village 6344 10.6 Kaiser Medical Office 2564 7.8 3601 MacArthur / Chick-fil-A 2864 1.6 SAR S,A. (Edinger Ave) Y� 270 IV SAUD I Iigh School #6 664 27.3 Griset/MacArthur E of Greenville St. 2" _ 77341639 3.6 Griset/MacArthur E of Greenville St. 3" 690 13.5 Bear St./Garry: 3101 S. Bear St. 2239 3.4 Bear SL Gar . 3011 S. Bear St. 2376 _ 1.3 Thomton Park E end t Bear/Sei erstrom 42 46.8 Harbor Median N. of MacArthur 10161 0.7 SAR Trail Fairview & 12th (sub -meter) 78732358 0.5 SAR Trail North of 17th (sub -meter) 6836 0.9 SAUSD Sports Complex 326 —64 Godinez High School (Centennial Parlc Sub -Meter Versailles on the Lake Apartments Future —10 18 of 20 Exhibit lk OCWD Unit Price Calculation for Project Water Sold to RETAILER Revisions to Exhibit D by OCWD do not require an amendment to this Agreement. Fiscal Year 2015-2016 calculation listed below. This unit price shall be effective for Fiscal Year 2017-2018. Previous fiscal year operational and maintenance cost to operate, treat, and distribute Product Water (Electricity, Chemicals, Labor, Maintenance, Testing, Utility Location Services, Replenishment Assessment Value of Deep Well Blending Water) $1,173,230.46 Previous fiscal. year Repair and Rehabilitation Fund contribution for Project Facilities. This figure may be periodically reviewed and adjusted by OCWD Board as necessary $936,678.00 Previous fiscal year Project Water in acre-feet 4,186,09 Debt service payments. This figure may vary as terms for loans, certificates of participation, and other Project Facilities financing change. Smoothing may occur to avoid sudden increases to this figure $980,296.67 Estimated future fiscal year rates provided for planning purposes only. Rates are subject to substantive change prior to implementation. FY 2018-19: $778 per acre foot FY 2019.20; $769 per acre foot FY 2020-21: $741 per acre foot FY 2021.22: $761 per acre foot FY 2022.23: $782 per acre foot 19 of 20 $738 per acre foot Exhibit E: Typical Project Water Quality Revisions to Exhibit E by OCWD do not require an amendment to this Agreement. Component Concentration Range m /L _ Total Dissolved Solids 700 -1,050 Hardness 170 - 350 Calcium 45 -100 Magnesium 15 -- 35 Potasslum 10 — 25 ,____m Sodium 150 - 250 Bicarbonate 170 - 250 Chloride 170 - 320 Sulfate 160 — 225 Koran ��W 0.3 - 0.6 Fluoride 0.7 - 1.4 Silica 15-24 Total Nitrogen 2.4 — 20 Phosphate Phosphorous 0.06 — 4 Chemical Oxygen Demand 10 — 35 Sodium Adsorption Ratio 3-7 Exhibit E shall be revised if and when OCWD modifies the tertiary treatment technology, disinfection process, and/or introduces OCSD Plant #2 effluent to the CAP treatment process. 20 of 20 DIRECTORS DENIS R. BILODEAU, P.E. IORDAN BRANDMAN CATHY GREEN NELIDA MENDOZA DINA L. NGUYEN, ESQ. KELLY E. ROWE, C.E.G., C.H. STEPHEN R. SHELDON TRI TA BRUCE WHITAKER ROGER C. YOH, P.E. March 29. 2021 Clerk of the Council City of Santa Ana PO BOX 1988 Santa Ana, CA 92701 � Y v 91�Q 'D t StQ ORANGE COUNTY WATER DISTRICT RE: Green Acres Project (GAP) Fiscal Year 2021-22 Sales Rate Dear Clerk of the Council, OFFICERS President STEPHEN R. SHELDON First Vice President CATHY GREEN Second Vice President TELL TA General Manager MICHAEL R. MARKUS, P.E., D.WRE In accordance with sections 3.2 and 3.3 of the "Agreement between Orange County Water District and City of Santa Ana Regarding Distribution and Sale of Green Acres Project Water" entered into as of July 1, 2017, please find enclosed a copy of the revised "Exhibit D: OCWD Unit Price Calculation for Project Water Sold to RETAILER" applicable to the upcoming 2021- 22 fiscal year. The Operating Group, defined in section 3.3, exchanged emails in February and March 2021 to discuss pertinent GAP subjects. The GAP sales rate of $905 per acre foot will become effective on July 1, 2021. Also enclosed you will find a summary of the GAP product water quality measurements taken during the 2019 and 2020 calendar years. Sincerely, Ben Smith, P.E. Senior Engineer 714-378-3211 bsmith(c).ocwd.com Enclosures: • FY 2021-22 "Exhibit D: OCWD Unit Price Calculation for Project Water Sold to RETAILER" • Calendar Years 2019 and 2020 "Treated Water Quality for Station GA-HPEPBLEND" O O 69 O O v N O F`Y7i ifi * p V N vCi w o U 9 cd o b o �>o�9'� >,.5� O ¢ • , o Y U a( 0 0 Y O i�- w P" o0 -d N u C, w W W W 42' U U 0 to. ram. s0. s0. � cUC cUC NcOd N tUd H ;-, sr R, Q+ Q. Q. o h N kntnNO'tON o N in 01 O ': 0 6R Ef3 E/i 64 69 Is Goq fr1 V'f 1p l� 00 C.N. +-'NNNNNNN m4 got oo 7 N N N N N N N � o 0 0 0 0 0 0 N N N N N N N .�wwwwwww ORANGE COUNTY WATER DISTRICT GREEN ACRES TREATMENT PLANT TREATED WATER QUALITY FOR STATION GA-HIPEPEILEND 01/01/2019 TO 12/31/2019 Abbreviation Parameter Name Units Numberof Average Results Std. Analyses RDL Minimum Maximum Average Dev, Ag Silver ug/L 1 1 <1 <1 <1 Al Aluminum ug/L 1 1 85.6 85.6 85.6 APCOLR Apparent Color (unfiltered) UNITS 4 3 10 10 10 0.00 As Arsenic ug/L 1 1 <1 <1 <1 B Boron mg/L 9 0.1 0.35 0.43 0.38 0.02 - Ba. Barium ug/L 1 1 33.1 33.1 33.1 Be - Beryllium ug/L 1 1 <1 <1 <1 Br.. Bromide mg/L 1 0.1 <0.1 <0.1 <0.1 Ca Calcium mg/L 9 0.5 64.9 75.7 70.29 3.64 - Cd Cadmium ug/L 1 1 <1 <1 <1 Cl Chloride mg/L 9 1.83 59.4 294 254.38 73.48 CN Cyanide ug/L 1 5 <5 <5 <5 - Co Cobalt ug/L 4 1 <1 <1 <1 0.00 CODUNP Unfiltered Chemical Oxygen Demand mg/L 9 3 15 30 22.67 4.44 Cr. Chromium ug/L 1 1 <1 <1 <1 Cu. Copper ug/L 1 1 8.3 8.3 8.3 EC Electrical Conductivity um/cm 257 1 1,020 1,770 1,606.7 101.9 F Fluoride mg/L 1 0.1 0.85 0.85 0.85 Fe-: - Iron ug/L 4 5 87.3 125 104.58 15.52 HCO3 - Bicarbonate (as HCO3) mg/L 9 1.2 184.1 234 195.98 15.09 Hg Mercury ug/L 1 1 <1 <1 <1 _ K Potassium mg/L 9 0.5 14.3 17.2 16.19 0.99 MBAS - Surfactants mg/L 1 0.02 0.1 0.1 0.1 -. Mg. Magnesium mg/L 9 0.5 21.1 25.9 23.51 1.60 Mn. Manganese ug/L 4 1 2.4 41.1 13.83 18.28 - Na: - Sodium mg/L 9 0.5 186 224 205.67 13.43 NH3-N - Ammonia Nitrogen mg/L 4 0.1 <0.1 <0.1 <0.1 0.00 Ni Nickel ug/L 1 1 3.7 3.7 3.7 NO2-N: Nitrite Nitrogen mg/L 4 0.002 <0.002 <0.002 <0.002 0.00 NO3-N Nitrate Nitrogen mg/L 4 0.8 9.72 13.2 11.48 1.53 ' ORG-N Organic Nitrogen mg/L 4 0.1 <0.1 0.6 0.16 0.30 Pb Lead ug/L 1 1 <1 <1 <1 pH-- pH UNITS 256 1 7 8.1 7.42 0.18 PO4-P Phosphate Phosphorus (orthophosphate) mg/L 4 0.01 0.5 0.8 0.65 0.16 SAR Sodium Adsorption Ratio RATIO 9 0.1 4.9 5.8 5.42 0.29 SARADJ Adjusted Sodium Adsorption Ratio RATIO 9 0.1 8.3 12.4 10.61 1.48 Sb Antimony ug/L 1 1 <1 <1 <1 Se Selenium ug/L 1 1 1.1 1.1 1.1 SI02 Silica mg/L 1 1 18 18 18 SO4 Sulfate mg/L 4 2 144 173 161.25 12.50 -TDS Total Dissolved Solids mg/L 9 2.5 844 1,010 930.89 48.64 TKN Total Kjeldahl Nitrogen mg/L 4 0.2 <0.2 0.6 0.17 0.29 -_ -TI Thallium ug/L 1 1 <1 <1 <1 TOC - Total Organic Carbon (Unfiltered) mg/L 10 0.05 6A 9.27 7,80 0.90 TOTALK -.. Total Alkalinity (as CaCO3) mg/L 9 5 151 192 160.78 12.40 - - - - -TOTHRD Total Hardness (as CaCO3) mg/L 9 1 249 290 272,22 14,55 •-. TOT-N - Total Nitrogen mg/L 4 0.8 9.7 13.2 11.63 1.66 Zn - Zinc ug/L 1 1 13.7 13.7 13.7 ORANGE COUNTY WATER DISTRICT GREEN ACRES TREATMENT PLANT TREATED WATER QUALITY FOR STATION GA-HPEPEILEND 01/01/2020 TO 12/31/2020 - Abbreviation Parameter Name Units Numberof Average Results Std. Analyses RDL Minimum Maximum Average Dev. Ag Silver ug/L 1 1 <1 <1 <1 Al Aluminum ug/L 1 5 98.7 98.7 98.7 -.. APCOLR Apparent Color (unfiltered) UNITS 4 3 10 15 11.25 2.50 As Arsenic ug/L 1 1 <1 <1 <1 B Boron mg/L 10 0.1 0.35 0.43 0.388 0.02 Ba Barium ug/L 1 1 48 48 48 Be Beryllium ug/L 1 1 <1 <1 <1 Br Bromide mg/L 1 0.1 <0.1 <0.1 <0.1 Ca Calcium mg/L 10 0.5 60 78.6 72.43 6.13 '., Cd Cadmium ug/L 1 1 <1 <1 <1 Cl Chloride mg/L 10 1.85 247 331 280.60 23.02 CN Cyanide ug/L 1 5 <5 <5 <5 Co Cobalt ug/L 4 1 <1 <1 <1 0.00 CODUNF Unfiltered Chemical Oxygen Demand mg/L 10 3 14 27 21.90 3.81. - ---Cr Chromium ug/L 1 1 <1 <1 <1 Cu Copper ug/L 1 1 5.1 5.1 5.1 - EC Electrical Conductivity um/cm 253 1 559 1,830 1,606.9 111.1 -F Fluoride mg/L 1 0.1 0.88 0.88 0.88 Fe Iron ug/L 4 5 104 154 118.75 23,88 HCO3 Bicarbonate (as HCO3) mg/L 10 1.2 186.5 229.2 210.75 12.21 Hg Mercury ug/L 1 1 <1 <1 <1 K Potassium mg/L 10 0.5 15.2 17.5 16.46 0.74 MBAS Surfactants mg/L 1 0.02 0.12 0.12 0.12 Mg Magnesium mg/L 10 0.5 21.5 32 27.28 3.05 Mn Manganese ug/L 4 1 4.9 46.5 19.55 19.51 - - Na Sodium mg/L 10 0.5 196 237 222.20 11.61 -. - NH3-N Ammonia Nitrogen mg/L 4 0.1 <0.1 <0.1 <1 0.00 Ni Nickel ug/L 1 1 3.6 3.6 3.6 NO2-N Nitrite Nitrogen mg/L 4 0.002 <0.002 <0.002 <0.002 0.00 NO3-N Nitrate Nitrogen mg/L 4 0.325 7,77 14.1 11.49 2.70 ORG-N Organic Nitrogen mg/L 4 0.1 <0.1 0.3 0.16 0.17 Pb Lead ug/L 1 1 <1 <1 <1 pH pH UNITS 253 1 6.9 8.2 7.41 0.15 PO4-P Phosphate Phosphorus (orthophosphate) mg/L 4 0,01 0.09 0.52 0.30 0.18 SAR Sodium Adsorption Ratio RATIO 10 0.1 4.8 6.5 5.67 0.45 '.. SARADJ Adjusted Sodium Adsorption Ratio RATIO 10 0.1 10.1 15.5 12.49 1.45 Sib Antimony ug/L 1 1 <1 <1 <1 Se Selenium ug/L 1 1 1.6 1.6 1.6 -- SI02 Silica mg/L 1 1 18.5 18.5 18.5 SO4 Sulfate mg/L 4 1.75 142 208 175.75 27.04 TDS Total Dissolved Solids mg/L 10 2.5 926 1,050 995.40 43.98 TKN Total I(jeldahl Nitrogen mg/L 4 0.2 <0.2 0.4 0.19 0.19 A Thallium ug/L 1 1 <1 <1 <1 TOC Total Organic Carbon (Unfiltered) mg/L 11 0.05 6.13 9.89 7.62 1.14 TOTALI( Total Alkalinity (as CaCO3) mg/L 10 5 153 188 172.90 10.02 -TOTHRD Total Hardness (as CaCO3) mg/L 10 1 238 326 293.20 26.94 -. TOT-N Total Nitrogen mg/L 4 0.35 8.2 14.1 11.68 2.55 -Zn Zinc ug/L 1 1 17.2 17.2 17.2 •• Ward Street Fountain Valley,CA 92708 • •• lop April 3, 2025 Clerk of the Council sPV = _ City of Santa Ana PO BOX 1988 Santa Ana, CA 92701 RE: Green Acres Project(GAP) Fiscal Year 2025-26 Sales Rate Dear Clerk of the Council, In accordance with sections 3.2 and 3.3 of the "Agreement between Orange County Water District and City of Santa Ana Regarding Distribution and Sale of Green Acres Project Water" entered into as of July 1, 2017, please find enclosed a copy of the revised "Exhibit D: OCWD Unit Price Calculation for Project Water Sold to RETAILER" applicable to the upcoming 2025-26 fiscal year. The Operating Group, defined in section 3.3, exchanged emails in March 2025 to discuss pertinent GAP subjects. The GAP sales rate of$1,019 per acre foot will become effective on July 1, 2025. Also enclosed you will find a summary of the GAP product water quality measurements taken during the 2023 and 2024 calendar years, and the annual Sales Rate & Program Update Memorandum. Sincerely, Fernando Almario, P.E. Senior Engineer 714-378-8220, falmario(d-)ocwd.com Enclosures: • FY 2025-26 "Exhibit D: OCWD Unit Price Calculation for Project Water Sold to RETAILER" • Calendar Years 2023 and 2024"Treated Water Quality for Station GA-HPEPBLEND" • GAP FY 2025-26 Sales Rate & Program Update Memorandum Board of Directors - - Denis R.Bilodeau, P.E.,President•Van Tran, Esq.,151 Vice President- Erik K.Weigand,2rd Vice President Valerie Amezcua•Cathy Green • Fred Jung• Natalie Meeks• Dina L.Nguyen,Esq.•Stephen R.Sheldon• Roger C.Yoh.P.E. a1 a II p o U N + � O b N �+ W , 75 O 'd42) U O O Lo v FTw by � U GZt O .,� N U U O �^ d ¢, U cd O C 0 a � Q O ff3 U kn m U U O i-i " ;-q ry+ v [� m 69 b9 d •O O <u U U U 0 z �+ � a a w ^dG4 w NPLI 944 LfybA o o o o a� o v N Q O d oc ro 40, 4° 40. 42 42, "d cC O 5CJ bo oc O U N 00 N Q].CLi ap - O "N�� "di O U --i 6.4i 5-9- 6,-4 cry 9 9cl O N N N (nN N i U W o N N N N Nc N N N N m O O F14✓ Q, O NcdN �" ^� o N N N N � N N N 04 N O tti 'd s-� r� Q 44 + ,� � -�+ • • • • • • • r • • ORANGE COUNTY WATER DISTRICT GREEN ACRES TREATMENT PLANT TREATED WATER QUALITY FOR STATION GA-HPEPBLEND 01/01/2023 TO 12/31/2023 Results Abbreviation Parameter Name Units Number of Average Analyses RDL Minimum Maximum Average Std.Dev. Ag Silver ug/L 1 1 <1 <1 <1 AI Aluminum ug/L 1 5 99.9 99.9 99.9 APCOLR Apparent Color(unfiltered) UNITS 2 3 5 15 10 7.07 As Arsenic ug/L 1 1 1 1 1 B Baron mg/L 6 0.1 0.25 0.49 0.41 0.09 Ba Barlum ug/L 1 1 30.7 30.7 30.7 8e Beryllium ug/L 1 1 <1 <1 <1 9r Bromide mg/L 1 0.01. 0.51 0.51 0.51 Ca Calcium mg/L 6 0.5 22.2 80.8 58.55 20.84 Cd Cadmium ug/L 1 1 <1 <1 <1 CI Chloride mg/L 6 2 74.8 354 265.63 103.10 CN Cyanide ug/L 1 5 12 12 12 Co Cobalt ug/L 2 1 <1 <1 <1 0.00 CODUNF Unfiltered Chemical Oxygen Demand mg/L 6 3 <3 23 14.38 7.60 Cr Chromium ug/L 1 1 <1 <1 <1 Cu Copper ug/L 1 1 4.6 4.6 4.6 EC Electrical Conductivity us/cm 183 1 378 1,780 1,534,0 178.4 F Fluoride mg/L 1 0.1 0.85 0.85 0.85 Fe Iron ug/L 2 5 67.6 121 94.30 37.76 HCO3 Bicarbonate(as HCO3) mg/L 6 1.2 170.7 210,9 196.07 14.85 Hg Mercury ug/L 1 1 <1 <1 <1 K Potassium mg/L 6 0.5 5.1 19.1 14.S8 4.99 MBAS Surfactants mg/L 1 0.02 0.12 0.12 0.12 Mg Magnesium mg/L 6 0.5 6.9 30.4 24.12 8.58 Mn Manganese ug/L 2 1 32.8 36.8 34.80 2.83 Na Sodium mg/L 6 0.5 105 251 210.67 54.28 NH3-N Ammonia Nitrogen mg/L 2 0.4 <0.4 3.6 1.82 2.52 Ni Nickel ug/L 1 1 4.2 4.2 4.2 NO2-N Nitrite Nitrogen mg/L 2 0.002 <0.002 0.082 0.0411 0.06 NO3-N Nitrate Nitrogen mg/L 2 0.25 6.78 12.2 9.49 3.83 ORG-N Organic Nitrogen mg/L 2 0.1 <0.1 <0.1 <0.1 0.00 Pb Lead ug/L 1 1 <1 <1 <1 pH pH UNITS 183 1 7.1 8.5 7.48 0.20 PO4-P Phosphate Phosphorus(orthophosphate) mg/L 2 0.010 0.16 0.26 0.21 0.07 . SAR Sodium Adsorption Ratio RATIO 6 0.1 5 6.7 5.90 0.69 SARADJ Adjusted Sodium Adsorption Ratio RATIO 6 0.1 8 13 11.50 1.87 Sb Antimony ug/L 1 1 <1 <1 <1 Se Selenium ug/L 1 1 2.6 2.6 2.6 S102 Silica mg/L 1 1 19.3 19.3 19.3 SO4 Sulfate mg/L 2 0.9 151 156 153.5 3.54 TDS Total Dissolved Solids mg/L 6 2.5 384 1,020 881.67 244.66 TKN Total Kjeldahl Nitrogen mg/L 2 0.2 <0.2 3.3 1.66 2.32 TI Thallium ug/L 1 1 <1 <1 <1 TOC Total Organic Carbon(Unfiltered) mg/L 7 0.05 2.95 7.77 5.75 1.61 TOTALK Total Alkalinity(as CaCO3) mg/L 6 1.00 140 173 160.83 12.19 TOTHRD Total Hardness(as CaCO3) mg/L 6 1 83.7 313 245.45 83.38 TOT-N Total Nitrogen mg/L 2 0.25 10.2 12.2 11.20 1.41 Zn Zinc ug/L 1 5 14.8 14.8 14.8 ORANGE COUNTY WATER DISTRICT GREEN ACRES TREATMENT PLANT TREATED WATER QUALITY FOR STATION GA-HPEPBLEND 01/01/2024 TO 12/31/2024 Results Abbreviation Parameter Name Units Number of Average Analyses RDL Minimum Maximum Average Std.Dev. Ag Silver ug/L 1 1 <1 <1 <1 AI Aluminum ug/L 1 5 86 86 86 APCOLR Apparent Color(unfiltered) UNITS 2 3 5 12 8.5 4.95 As Arsenic ug/L 1 1 1.1 1.1 1.1 B Boron mg/L 7 0.1 0.26 0.35 0.30 0.03 Ba Barium ug/L 1 1 23.1 23.1 23.1 Be Beryllium ug/L 1 1 <1 <1 <1 Br Bromide mg/L 1 0.01 0.15 0.15 0.15 Ca Calcium mg/L 7 0.5 44.9 78.3 66.94 11.59 Cd Cadmium ug/L 1 1 <1 <1 <1 Cl Chloride mg/L 7 2 180 273 229.86 37.10 CN Cyanide ug/L 1 5 <5 <5 <5 Co Cobalt ug/L 2 1 <1 <1 <1 0.00 CODUNF Unfiltered Chemical Oxygen Demand mg/L 7 3 11 21 16.86 3.34 Cr Chromium ug/L 1 1 <1 <1 <1 Cu Copper ug/L 1 1 3.8 3.8 3.8 EC Electrical Conductivity us/cm 232 1 684 1,690 1,525.9 122.6 F Fluoride mg/L 1 0.1 0.82 0.82 0.82 Fe Iron ug/L 2 5 82.8 94.4 88.60 8.20 HCO3 Bicarbonate(as HCO3) mg/L 7 1.2 126.8 224.3 192.59 31,73 Hg Mercury ug/L 1 1 <I <1 <1 K Potassium mg/L 7 0.5 11.6 18 15.03 2.59 MBAS Surfactants mg/L 1 0.02 0.08 0.08 0.08 Mg Magnesium mg/L 7 0.5 16.5 26A 22.00 3.04 Mn Manganese ug/L 2 1 14.4 23.6 19.00 6.51 Na Sodium mg/L 7 0.5 136 216 189.43 27.51 NH3-N Ammonia Nitrogen mg/L 2 0.1 <0.1 <0.1 <0.1 0.00 Ni Nickel ug/L 1 1 3.5 3.5 3.5 NO2-N Nitrite Nitrogen mg/L 2 0.002 <0.002 <0.002 <0.002 0.00 NO3-N Nitrate Nitrogen mg/L 2 0.25 9.81 12.6 11.21 1.97 ORG-N Organic Nitrogen mg/L 2 0.1 <0.1 0.3 0.15 0.21 Pb Lead ug/L 1 1 <1 <1 <1 pH pH UNITS 232 1 7.3 8.1 7.56 0.14 PO4-P Phosphate Phosphorus(orthophosphate) mg/L 2 0.015 0.23 0.72 0.48 6.35 SAR Sodium Adsorption Ratio RATIO 7 0.1 4.4 5.6 5.13 0.39 5ARADJ Adjusted Sodium Adsorption Ratio RATIO 7 0.1 7.5 12 10.64 1.55 Sb Antimony ug/L 1 1 <1 <1 <1 Se Selenium ug/L 1 1 2.6 2.6 2.6 S102 Silica mg/L 1 1 18.9 18.9 18.9 504 Sulfate mg/L 2 1.15 152 167 159.5 10.61 . TDS Total Dissolved Solids mg/L 7 2.5 598 1,020 874.57 144.29 TKN Total Kjeldahl Nitrogen mg/L 2 0.2 <0.2 0.3 0.15 0.21 TI Thallium ug/L 1 1 <1 <1 <1 TOC Total Organic Carbon(Unfiltered) mg/L 8 0.05 5.75 8.14 6.91 0.86 TOTALK Total Alkalinity(as CaCO3) mg/L 7 3.29 104 184 158.00 26.04 TOTHRD Total Hardness(as CaCO3) mg/L 7 1 180 298 257.86 41.04 TOT-N Total Nitrogen mg/L 2 0.3 10.1 12.6 11,35 1.77 Zn Zinc ug/L 1 5 10.3 10.3 10.3 GAP FY 2025-26 Sales Rate, Page I of 6,4/2/2025 GAP FY 2025-26 Sales Rate & Program Update Memorandum April 2, 2025 Fernando Almario, P.E. Table of Contents 1) Executive Summary 2) GAP Sales Rate for FY 2025-26 3) FY 2024-25 (current year) Projects 4) FY 2025-26 Planned Projects 1) Executive Summary The proposed Green Acres Project (GAP) sales rate from OCWD to Retailers for Fiscal Year (FY) 2025-26 is $1,019 per Acre Foot (AF) with an increase to the stabilization fund. Last year, OCWD predicted that the rate would be $1,019/AF with a decrease to the stabilization fund of$15,000, Table 1: GAP Sales Rates Fiscal Year Rate $/AF Rate Stabilization Fund 2017-18 $738 2018-19 $838 2019-20 $867 2020-21 $905 2021-22 $905 Stabilization Fund Increase to $445,000 2022-23 $932 Stabilization Fund Increase to $913,000 2023-24 $960 No Change to Stabilization Fund: $913,000 2024-25 $989 Stabilization Fund Decrease to $716,000 2026-27 Prediction $1,049 Fund Increase 2027-28 Prediction $1,081 Fund Decrease 2028-29 Prediction $1,113 Fund Decrease 2029-30 Prediction $1,147 Fund Decrease 2030-31 Prediction $1 378 Fund Decrease to Zero Balance GAP FY 2025-26 Sales Rate, Page 2 of 6, 4/2/2025 2) GAP Sales Rate for FY 2025-26 To obtain the rate, the actual GAP expenses from FY 2023-24 were aggregated and divided by the volume of GAP water sold during the same period. FY 2023-24 is used because FY 2024-25 is still in progress and therefore complete expense and volume sold information is not yet available. The unadjusted sales rate calculated by this method was $983/AF, a $6/AF (-0.62%) decrease from the previous year's implemented rate. The main factors causing the rate to be less than the prediction of$1,019/AF includes a 5.2% increase of total volume of GAP water sold, maintenance and UtiliQuest costs decreased by 27%, and a decrease in deep well supplement value by 23%. To avoid a significant rate drop, a rate stabilization concept was implemented in FY 2021-22. A theoretical stabilization fund was established that can be deposited into and withdrawn from to help stabilize the annual sales rate changes. The GAP sales rate is predicted to increase every year, but the specific conditions of a given year may cause a rate decrease. Consensus among the Retailers and OCWD on March 21, 2022, was to aim for a GAP sales rate increase of 3% per year. The rate stabilization fund is expected to help stabilize future rates during the next few years. It is expected that the current balance of the stabilization fund will be completely withdrawn within the next 5 years. A prediction of the rate stabilization's fund is shown in Table 4 and Figure 1. The predicted future GAP rates utilizing the fund have been included in Table 1. The Retailers and OCWD shall revisit this approach each year to determine its efficacy and the reasonableness of the stabilization fund balance. Description of"Table 2: Rate Calculation" below shows (left to right): • the rate that was implemented for the current year (FY 24-25) • the rate that was predicted for next year (FY 25-26) • the actual rate computation for next year (FY 25-26) • the percentage change between the current year implementation (FY 24-25) and the actual rate computation for next year (FY 25-26) • Notes about the percentage changes • The proposed rate to implement for next year (FY 25-26). 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Description: Update non-potable use Rules & Regulations for GAP and GWRS. Review potential changes in RWQCB permitting for GWRS uses. Will include/reference the OC Guidelines. Will seek Retailer adoption after OCWD updates document. b. Status: Waiting finalization of OC Procedures Document. D. GAP Treatment Building Stairs a. Description: Replace existing deteriorating concrete staircase b. Status: Design complete c. Funding: R&R reserve, $400,000. GAP FY 2025-26 Sales Rate, Page 6 of 6,4/2/2025 4) FY 2025-26 Budgeted Projects (Not Yet Board Approved) Continuation_of current year projects: A. GAP VFD Replacement a. Description: Replacement of HPEP 3 motor variable frequency drive. b. Status: In progress c. Funding: R&R reserve, estimate $200,000. B. GAP Emergency Repairs a. Description: As needed b. Status: Future possibility. c. Funding: R&R reserve, estimate $300,000. C. GAP Rules & Regulations a. Description: Update non-potable use Rules & Regulations for GAP and GWRS. Review potential changes in RWQCB permitting for GWRS uses. Will include/reference the OC Guidelines. Will seek Retailer adoption after OCWD updates document. b. Status: Waiting finalization of OC Procedures Document. D. GAP Treatment Building Stairs a. Description: Replace existing deteriorating concrete staircase b. Status: Design complete c. Funding: R&R reserve, $400,000. E. GAP Reservoir Assessment a. Description: Perform assessment of GAP reservoir in Santa Ana b. Status: In Progress c. Funding: R&R reserve, $100,000.