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06-0601_MUNICIPAL WATER DISTRICT OF ORANGE COUNTY_Emergency Service Program Agreement�Z OW p, . ✓G-r,�uer�k.l�a) Memorandum TO: Participating Agencies FROM: Karl Seckel, Assistant General Manager `v v S DATE: June 1, 2006 SUBJECT: Phase 1 of the Emergency Service Program Connecting IRWD's System to the South Orange County Import System to Improve Emergency Water Service For your files, attached please find a copy of the fully executed Emergency Service Program Agreement. Please contact me with any questions. JUN I `LUvo �J p. g5fo"S\10gommo. doc N W > ^ LL W Cr Z LUEm 3 o Z �v Q g5fo"S\10gommo. doc FINAL Version — Executable in Counterparts by All Parties Phase 7 of the Emergency Service Program Connecting IRWD's System to the South Orange County Import System To Improve Emergency Water Service GENERAL TERMS AND CONDITIONS WHEREAS, there has been a history of cooperation between water agencies in Orange County for development and implementation of programs benefiting portions of the County or the entire County; and, WHEREAS, the economic impacts resulting from short-term system related water shortages has been demonstrated to be substantial and can reach beyond the boundaries of the actual locations suffering the shortages; and, WHEREAS, the South Orange County Agencies (defined as Santa Margarita Water District, Moulton Niguel Water District, City of San Clemente, South Coast Water District, Laguna Beach County Water District, EI Toro Water District, City of San Juan Capistrano and Trabuco Canyon Water District) desire to enter into an operating arrangement with Irvine Ranch Water District (IRWD) to receive water from the IRWD system with subsequent conveyance into the distribution system serving south Orange County; and, WHEREAS, the concept for the Phase 1 Emergency Service Program has been developed to deal with short-term emergency water system outages (pipeline or other facilities) or planned shutdown scenarios (for repair, replacement, maintenance or connection of new facilities) in which imported supplies normally delivered into south Orange County are curtailed, eliminated or unavailable for a period lasting up to 30 days; and, WHEREAS, Metropolitan Water District of Southern California (MET) will be shutting down the Diemer Filtration Plant in four of the next five years to implement improvements to the system, thereby requiring use of Phase 1 of this program to be operational by the winter of 2006, if possible; and, WHEREAS, Phase 1 of the Emergency Service Program shall not be used to deal with drought or other supply reliability issues; and, WHEREAS, Phase 1 of the Emergency Service Program can be implemented without impacting the Orange County Water District (OCWD) groundwater basin by using the existing groundwater production capacity and distribution system of IRWD in a manner similar to the way it is used today; and WHEREAS, the OCWD Board of Directors has found that, because no OCWD basin groundwater will be delivered outside of the OCWD boundaries under the Phase 1 Emergency Service program, the Phase 1 Emergency Service program does not constitute a net exportation of water from the groundwater basin, and is therefore, consistent with the OCWD Act; NOW THEREFORE, the Boards of Directors of Municipal Water District of Orange County (MWDOC), OCWD, IRWD and the South Orange County Agencies jointly agree to the following: Section 1: The Phase 1 Erpergency Service Program shall be implemented by constructing interconnections between IRWD and the distribution system serving south Orange County, FINAL Version - Executable in Counterparts by All Parties utilizing portions of the existing IRWD facilities and adding new pumping facilities to boost pressures to allow the water to move from the IRWD service area to the south County area. New interconnections between the Joint Regional Transmission Main, the Aufdenkamp Transmission Main, the South County Pump Station and the IRWD system will be constructed. The location, sizing and cost of the improvements are currently being developed via a study effort which is expected to be completed in February 2006. Section 2: Phase 1 of the Emergency Water Service Program will be implemented in such a manner that actual pumping from the IRWD Dyer Road Wellfield will comply with the terms and conditions of the Dyer Road Wellfield Agreements and amendments thereto between IRWD, OCWD and the City of Santa Ana, including the production limitations therein. To meet the needs of the Emergency Water Service Program, IRWD will not construct new wells or add pumping capacity for this purpose, and will not pump a larger volume of water within a fiscal year than that allowed by the Dyer Wellfield Agreements. The maximum conveyance of water shall not exceed 50 cubic feet per second of water for more than 30 days per incident, for a maximum of 3,000 acre-feet per incident. It is generally anticipated that about 30 cubic feet per second of this water would originate from MET and that the duration of outages are anticipated to be less than 30 days. Section 3: Operationally, IRWD and the South County Agencies agree to comply with the following provisions: a. The production of groundwater by IRWD under this program will comply with all existing agreements and rights and will be exchanged with imported MET water for billing purposes to the South County Agencies and will be "deemed" to be a delivery of MET water. There will be no added net groundwater pumping for the Emergency Water Service Program by IRWD for any fiscal year. b. No new wells will be added for the Phase 1 program. c. The OCWD groundwater basin rights would not be conferred, conveyed, altered, changed, or modified, either directly or indirectly, by the delivery of non-native water by IRWD to parties outside of the OCWD boundaries, or through the exercise of any of the operating provisions of this Agreement. d. IRWD shall provide an annual accounting to the agreement parties regarding any water transmitted to South County Agencies per this program. The accounting shall include all sources of water used by IRWD in that year and shall be provided within six months after the end of the water year. e. Under this Agreement, IRWD shall not be allowed to deliver a greater amount of water in any water year than they receive or develop from non-OCWD sources, without the consent of OCWD. Section 4: Emergency operations under this Agreement can be initiated after concurrence between the South Orange County Agencies affected by an emergency and IRWD, and upon immediate notification and coordination with MWDOC and OCWD. At the time the Emergency Operations are initiated, coordinated monitoring of the water system operations by IRWD, the South Orange County Agencies affected by the emergency, MWDOC and OCWD will be initiated. In the event problems arise in the operations of any retail agency water systems that do not normally occur with the IRWD Dyer Road Wellfield operating at the maximum pumping rate, IRWD in coordination with MWDOC and OCWD will work with the agencies to identify and FINAL Version — Executable in Counterparts by All Parties implement mitigation measures or alternate modes of operation that are acceptable or the program will cease operation. Section 5: MWDOC, IRWD and the South Orange County Agencies will work together collectively to develop the terms and conditions of a more detailed Operating Agreement (anticipated by February 2006), including the financial terms, assurances and "best efforts" regarding delivery of the water by IRWD during differing demand conditions throughout the year, sharing of capital costs for implementing the project, terms and conditions for use of the existing IRWD system including priority use for the benefit of the IRWD customers and other terms and conditions deemed necessary. The Operating Agreement will utilize the information being developed at this time for the Facilities Preliminary Design Report and other information being developed by IRWD regarding use of their system. Section 6: Work efforts between MWDOC, IRWD and OCWD will continue on the implementation of subsequent phases of the Emergency Water Service Program to provide benefits to both the OCWD groundwater basin and the South Orange County Agencies. The emphasis of the work will involve meetings with the Department of Health Services and MET to seek approval to move locally produced water around in the regional distribution system and development of projects that can provide further benefits to the groundwater basin during normal operations and benefits to South Orange County Agencies during emergency or planned shutdown situations. Section 7: The term of this Agreement shall be for a duration of twenty-five years (25) after the effective date of the Operating Agreement noted in Section 5 and shall be renewable for subsequent periods of fifteen (15) years each unless terminated in writing by OCWD or the South County Agencies. A three year advance notice is required to be given by OCWD in the event the Agreement is to be terminated at the end of the original term or at one of the subsequent renewal periods. Termination by the South County Agencies shall require an executed notice of termination by all parties except OCWD and IRWD. Section 8: This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Executed and effective by and between the undersigned entities on the last date noted below: Presiden , Municipal Water District of Orange County bafe President, Orange County Water District Date President, Santa Margarita Water District Date President, Moulton Niguel Water District Date 3 FINAL Version – Executable in Counterparts by All Parties do not normally occur with the IRWD Dyer Road Wellfield operating at the maximum pumping rate, IRWD in coordination with MWDOC and OCWD will work with the agencies to identify and implement mitigation measures or alternate modes of operation that are acceptable or the program will cease operation. Section 5: MWDOC, IRWD and the South Orange County Agencies will work together collectively to develop the terms and conditions of a more detailed Operating Agreement (anticipated by February 2006), including the financial terms, assurances and "best efforts" regarding delivery of the water by IRWD during differing demand conditions throughout the year, sharing of capital costs for implementing the project, terms and conditions for use of the existing IRWD system including priority use for the benefit of the IRWD customers and other terms and conditions deemed necessary. The Operating Agreement will utilize the information being developed at this time for the Facilities Preliminary Design Report and other information being developed by IRWD regarding use of their system. Section 6: Work efforts between MWDOC, IRWD and OCWD will continue on the implementation of subsequent phases of the Emergency Water Service Program to provide benefits to both the OCWD groundwater basin and the South Orange County Agencies. The emphasis of the work will involve meetings with the Department of Health Services and MET to seek approval to move locally produced water around in the regional distribution system and development of projects that can provide further benefits to the groundwater basin during normal operations and benefits to South Orange County Agencies during emergency or planned shutdown situations. Section 7: The term of this Agreement shall be for a duration of twenty-five years (25) after the effective date of the Operating Agreement noted in Section 5 and shall be renewable for subsequent periods of fifteen (15) years each unless terminated in writing by OCWD or the South County Agencies. A three year advance notice is required to be given by OCWD in the event the Agreement is to be terminated at the end of the original term or at one of the subsequent renewal periods. Termination by the South County Agencies shall require an executed notice of termination by all parties except OCWD and IRWD. Section 8: This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Executed and effective by and between the undersigned entities on the last date noted below: Presid t unici�W District f Orange County s \ I Pre dent, Ora e County Yater District v\ d — Genera anaoer, Oranoe Countv Water District President, Santa Margarita Water District President, Moulton Niguel Water District 3 Date q - &11'06 Date Date Date Date implement mitigation measures or alternate modes of operation that are acceptable or the program will cease operation. Section 5: MWDOC, IRWD and the South Orange County Agencies will work together collectively to develop the terms and conditions of a more detailed Operating Agreement (anticipated by February 2006), including the financial terms, assurances and "best efforts" regarding delivery of the water by IRWD during differing demand conditions throughout the year, sharing of capital costs for implementing the project, terms and conditions for use of the existing IRWD system including priority use for the benefit of the IRWD customers and other terms and conditions deemed necessary. The Operating Agreement will utilize the information being developed at this time for the Facilities Preliminary Design Report and other information being developed by IRWD regarding use of their system. Section 6: Work efforts between MWDOC, IRWD and OCWD will continue on the implementation of subsequent phases of the Emergency Water Service Program to provide benefits to both the OCWD groundwater basin and the South Orange County Agencies. The emphasis of the work will involve meetings with the Department of Health Services and MET to seek approval to move locally produced water around in the regional distribution system and development of projects that can provide further benefits to the groundwater basin during normal operations and benefits to South Orange County Agencies during emergency or planned shutdown situations. Section 7: The term of this Agreement shall be for a duration of twenty-five years (25) after the effective date of the Operating Agreement noted in Section 5 and shall be renewable for subsequent periods of fifteen (15) years each unless terminated in writing by OCWD or the South County Agencies. A three year advance notice is required to be given by OCWD in the event the Agreement is to be terminated at the end of the original term or at one of the subsequent renewal periods. Termination by the South County Agencies shall require an executed notice of termination by all parties except OCWD and IRWD. Executed and effective by and between the undersigned entities on the last date noted below: President, Municipal Water District of Orange County President, Orange County Water District esid Santa Margarita Water District Date Date President, Moulton Niguel Water District Date FINAL Version - Executable in Counterparts by All Parties implement mitigation measures or alternate modes of operation that are acceptable or the program will cease operation. Section 5: MWDOC, IRWD and the South Orange County Agencies will work together collectively to develop the terms and conditions of a more detailed Operating Agreement (anticipated by February 2006), including the financial terms, assurances and "best efforts" regarding delivery of the water by IRWD during differing demand conditions throughout the year, sharing of capital costs for implementing the project, terms and conditions for use of the existing IRWD system including priority use for the benefit of the IRWD customers and other terms and conditions deemed necessary. The Operating Agreement will utilize the information being developed at this time for the Facilities Preliminary Design Report and other information being developed by IRWD regarding use of their system. Section 6: Work efforts between MWDOC, IRWD and OCWD will continue on the implementation of subsequent phases of the Emergency Water Service Program to provide benefits to both the OCWD groundwater basin and the South Orange County Agencies. The emphasis of the work will involve meetings with the Department of Health Services and MET to seek approval to move locally produced water around in the regional distribution system and development of projects that can provide further benefits to the groundwater basin during normal operations and benefits to South Orange County Agencies during emergency or planned shutdown situations. Section 7: The term of this Agreement shall be for a duration of twenty-five years (25) after the effective date of the Operating Agreement noted in Section 5 and shall be renewable for subsequent periods of fifteen (15) years each unless terminated in writing by OCWD or the South County Agencies. A three year advance notice is required to be given by OCWD in the event the Agreement is to be terminated at the end of the original term or at one of the subsequent renewal periods. Termination by the South County Agencies shall require an executed notice of termination by all parties except OCWD and IRWD. Section 8: This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Executed and effective by and between the undersigned entities on the last date noted below: President, Municipal Water District of Orange County President, Orange County Water District President, Santa Margarita Water District c� President, Moulton Ni 061 el Water District Date Date Date 3 k'n� Date —ate -U tp of San Clemente Date Mayor, City of San Juan Capistrano Date President, EI Toro Water District Date President, Trabuco Canyon Water District Date President, Laguna Beach County Water District Date President, South Coast Water District Date President, Irvine Ranch Water District Date Mayor, City of San Clemente (Z��w4ee- �row� I Mayor, City of San Juan Capistrano President, EI Toro Water District President, Trabuco Canyon Water District President, Laguna Beach County Water District ATTEST: President, South Coast Water District President, Irvine Ranch Water District R. Monahan, City Clerk Approved as to form: bma'do'R1 / l John Shaw, City Attorney Il Final #6: 1-27-06; Approved by OCWD Board Date 3l' ate Date Date Date Date Date FINAL Version - Executable in Counterparts by All Parties Mayor, City of San Clemente Date Mayor, City of San Juan Capistrano Date President, EI 'rbroWater District Date President, Trabuco Canyon Water District Date President, Laguna Beach County Water District Date President, South Coast Water District Date President, Irvine Ranch Water District Date M FINAL Version — Executable in Counterparts by All Parties Mayor, City of San Clemente Date Mayor, City of San Juan Capistrano Date President, EI Toro Water District Date it President, Trabuco Canyon Water District Date Laguna Beach County Water District Date President, South Coast Water District Date President, Irvine Ranch Water District Date 4 FINAL Version — Executable in Counterparts by All Parties Mayor, City of San Clemente Date Mayor, City of San Juan Capistrano Date President, EI Toro Water District Date President, Trabuco Canyon Water District Date E�� - s&~006t yd ideat- guna Beach County Water District ate Chaff rman, President, South Coast Water District Date President, Irvine Ranch Water District Date 4 FINAL Version — Executable in Counterparts by All Parties Mayor, City of San Clemente Mayor, City of San Juan Capistrano President, EI Toro Water District President, Trabuco Canyon Water District President, Laqupa Beach County Water District esident, So oast Water District President, Irvine Ranch Water District El Date Date Date Date Date SLIo,L Date Date FINAL Version - Executable in Counterparts by All Parties Mayor, City of San Clemente Mayor, City of San Juan Capistrano President, EI Toro Water District President, Trabuco Canyon Water District President, Laguna Beach County Water District President, South Coast Water Dis ' t President, Irvine Ranch Water District 0 Date Date Date Date Date Date Date