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06-0321_MUNICIPAL WATER DISTRICT OC_Emergency Program AgreementMemorandum TO: Participating Agencies FROM: Karl Seckel, Assistant General Manager `v v 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. JUS 7 X066 W w W cc SD gVfortesVlogommodoc 0 FINAL Version - Executable in Counterparts by All Parties Phase 1 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, r 0 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 0 0 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 Date President, Orange County Water District Date President, Santa Margarita Water District Date President, Moulton Niguel Water District Date 0 0 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: nicipal District f Orange County Date ' nt, Ora - e County ater District Date CC nager, Orange County Water District Date it, Santa Margarita Water District Date President, Moulton Niguel Water District Date 0 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 rresicley, Santa Margarita Water District President, Moulton Niguel Water District 3 Date Date Date 0 0 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 Date President, Orange County Water District President, Santa Margarita Water District President, MoultonNiel Water District Date Date Date 0 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 L Mayor, City of San Clemente Mayor, City of 8an Juan Capistrano President, EI Toro Water District President, Trabuco Canyon Water District 0 Final #6: 1-27-06; Approved by OCWD Board Date IIRC& � ate Date Date President, Laguna Beach County Water District Date ATTEST: President, South Coast Water District Date President, Irvine Ranch Water District Date R. Monahan, City Clerk Approved as to form: John Shaw, City Attorney 2 FINAL Version — Executable in Counterparts by All Parties Mayor, City of San Clemente Date Mayor, City of San Juan Capistrano Date President. EI loroftater 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 0 0 0 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 District President, Irvine Ranch Water District 0 Date Date Date % —zy-U& Date Date Date Date 0 0 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 District Wate4una Beach Counater District Chau rrnm, 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, Lagupa Beach County Water District Pf"e'siderit, So oast Water District President, Irvine Ranch Water District rd Date Date Date Date Date S��oL Date Date 0 0 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 is ' t President, Irvine Ranch Water District 0 Date Date Date Date Date Date Date • Final #6: 1-27_10; Approved by OCWD Board Phase 1 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 Emergency Service Program shall be implemented by constructing interconnections between IRWD and the distribution system serving south Orange County, • Final #6: 1 -27 -Approved by OCWD Board 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 2 • FINAL Version — ExecutabA 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 Date President, Orange County Water District Date President, Santa Margarita Water District Date President, Moulton Niguel Water District Date Mayor, City of San Clemente 6L���rzz Mayor, City o 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: N Il j I ffre "im-11 L' 0 mal Final #6: 1-27-40p; Approved by OCWD Board Date ;a ke 11Xf Date Date Date Date Date • • Page 1 of 2 Maria Guevara From: Maria Guevara Sent: Thursday, March 30, 2006 2:13 PM To: Eric Bauman Subject: RE: Emergency Water Service Agreement - Execution Version of Agreement Attached for Follow- up Hi Eric, I just talked to John Shaw & he has no problem with the addition of section 8. 1 will send out agreement. Thanks, Maria Guevara, Deputy City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 (949) 443-6309 (949) 493-1053 - Fax -----Original Message ----- From: Eric Bauman Sent: Wednesday, March 29, 2006 5:17 PM To: Maria Guevara Subject: RE: Emergency Water Service Agreement Follow-up Ok. Execution Version of Agreement Attached for -----Original Message ----- From: Maria Guevara Sent: Wednesday, March 29, 2006 4:35 PM To: Eric Bauman Subject: RE: Emergency Water Service Agreement - Execution Version of Agreement Attached for Follow-up Eric, I talked to Meg regarding this & we need to have John Shaw approve it. This went to council & we cannot make changes to the agreement. He should be back from vacation tomorrow. Maria Guevara, Deputy City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 (949) 443-6309 (949) 493-1053 - Fax -----Original Message ----- From: Eric Bauman Sent: Tuesday, March 28, 2006 9:41 AM To: Maria Guevara Subject: FW: Emergency Water Service Agreement - Execution Version of Agreement Attached for Follow-up Maria: 3/30/2006 . • Page 2 of 2 Please execute one copy of the Emergency Service Program, the final copy of which is attached. It contains an additional clause (#8) allowing the document to be signed in counter parts. Pleas send one executed copy to Maribeth Goldsby at MWDOC; she will send back a copy of all the other signatures for your records once they are all submitted. Eric. -----Original Message ----- From: Karl Seckel [mailto:kseckel@mwdoc.com] Sent: Monday, March 27, 2006 7:11 PM To: admin@tcwd.ca.gov; jkennedy@ocwd.com; A] Howard (E-mail); aamirani@sanjuancapistrano.org; bgumerman@mnwd.com; bhill@etwd.com; ballard@inad.com; danf@smwd.com; rebensdorfd@san-clemente.org; David Cordero; dcafferty@etwd.com; dchadd@tcwd.ca.gov; Igray@mnwd.com; EBauman@sanjuancapistrano.org; Greg Heiertz (E- mail); jrnestor@lbcwd.org; johns@smwd.com; Kevin P. Hunt; Idees@mnwd.com; Lee Jacobi; Matt Stone; Michelle Tuchman; mdunbar@scwd.org; hoolihan@irwd.com; Pat Meszaros; cook@irwd.com; jones@irwd.com; rhinchey@lbcwd.org; Richard Bell; malloy@irwd.com; tstephenson@mnwd.com Cc: Maribeth Goldsby Subject: Emergency Water Service Agreement - Execution Version of Agreement Attached for Follow-up I have received a number of calls or emails about Execution of the Agreement. I had legal staff add a Section 8 about Execution in Counterparts. Attached is the Final Version with this Section added. It allows each agency to print and execute one copy and mail it to Maribeth Goldsby at MWDOC. MWDOC will collect all copies and mail a copy of all Execution copies back to each agency. If you are not the one responsible at your agency for handling this, please pass this e-mail and Agreement version along. Thanks, Karl Seckel 714-593-5024 3/30/2006 3/21/2006 AGENDA REPORT D8 TO: David Adams, City Manager" FROM: Amy Amirani, Public Works Director SUBJECT: Consideration of Agreement for Phase 1 of the Emergency Service Program Connecting Irvine Ranch Water District's System to the South Orange County Import System to Improve Emergency Water Service RECOMMENDATION: By motion, approve the Phase 1 Emergency Service Program Agreement, and authorize the Mayor to execute the Agreement. SITUATION: Execution of this agreement will approve the City's participation in negotiations with the Municipal Water District of Orange County (MWDOC) and its component agencies to purchase emergency import capacity at a later date, based on a more detailed agreement specifying costs, rights, and conditions as outlined in section 5 of the Emergency Service Program Agreement (ESPA). The ESPA will not bind the City to participate in the Operations Agreement discussed in section 5, nor bind the City to pay any additional costs, other than those already paid for participation in the Reliability Study. Staff will bring the ensuing agreement described in section 5 of the ESPA agreement to the City Council when it is completed. Based on the costs and benefits of the agreement, the City will be able to consider participation in this arrangement, or the pursuit of other arrangements to meet its emergency supply needs. HISTORY: Municipal Water District of Orange County (MWDOC) and its member agencies began working on a study of the Water Reliability in Orange County in January 2001, and completed phase II of the study in September 2004. It is now in the implementation phase. Metropolitan Water District (MWD) provides water to the Orange County area from the State and Colorado River Projects, through the Diemer Plant to the Orange County area. The Reliability Study identified issues for Orange County such as an outage of the Allen-McColloch Pipeline, and/or East Orange County Feeder No. 2 Pipeline, and/or the possibility of the MWD's Diemer Treatment Plant Outage. The Water Reliability Study described implementation of a number of projects for the South Orange County agencies to insure the reliability of the water for our area. Among those projects is the Emergency Service Program Connecting Irvine Ranch Water District's (IRWD) System to the South Orange County Import System. This project was selected Agenda Report • • Page 2 March 21, 2006 for implementation first because of the overall import systems readiness to implement it, and the low capital costs involved in its implementation. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: On February 28, 2006, the Water Advisory Commission recommended the Council consider acceptance of the ESPA agreement. FINANCIAL CONSIDERATIONS: There are no financial impacts at current. NOTIFICATION: Municipal Water District of Orange County RECOMMENDATION: By motion, approve the Phase 1 Emergency Service Program Agreement, and authorize the Mayor to execute the Agreement. Respectfully submitted, Gmt�. Amy Amirani, Public Works Director AA:EPB/mp Attachment(s): 1. Agreement Prepared by, eft &%, Eric P. Bauman, Water Engineering Manger • DRAFT #6: 1-27VApproved by OCWD Board Phase 1 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 -tens 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 Emergency Service Program shall be implemented by constructing interconnections between IRWD and the distribution system serving south Orange County, ATTACHMENT • DRAFT #6: 1-279 Approved by OCWD Board 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 Welifield 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 • DRAFT #6: 1-279 Approved by OCWD Board 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 tern 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 Date President, Orange County Water District Date President, Santa Margarita Water District Date President, Moulton Niguel Water District Date • DRAFT #6: 1-27t Approved by OCWD Board 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 President, Laguna Beach County Water District Date President, Irvine Ranch Water District 4 Date 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 FAx www. sanjuancapistrano. org March 23, 2006 0 t��j,� IA(AAfAAA1EA tslAeusAEA 1961 1776 NOTIFICATION OF ACTION BY THE CITY COUNCIL OF SAN JUAN CAPISTRANO MEMBERS OF THE CITY COUNCIL SAM ALLEVATO DIANE BATHGATE WYATT HART JOE SOTO DAVID M. SWERDLIN On March 21, 2006 the City Council of San Juan Capistrano met regarding: "Consideration of Agreement for Phase 1 of the Emergency Service Program Connecting Irvine Ranch Water District's System to the South Orange County Import System to Improve Emergency Water Service" Item No. D8. The following action was taken at the meeting: Phase 1 Emergency Service Program Agreement between the South Orange County Agencies (Santa Margarita Water District, Moulton Niguel Water District, City of San Clemente, South Coast Water District, Laguna Beach County Water District, EI Toto Water District, Trabuco Canyon Water District, and City of San Juan Capistrano) and the Irvine Ranch Water District (IRWD) approved. If you have any questions regarding this action, please contact Eric Bauman, Water Engineering Manager at 487-4312 for more detailed information. Thank you, Meg Monahan, CMC City Clerk Enclosed: Cc: Municipal Water District of Orange County; Eric Bauman, Water Engineering Manager San Juan Capistrano: Preserving the Past to Enhance the Future iV Printed on recycled paper 0 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 FAX www sanjuancapestrano. org MEMBERS OF THE CITY COUNCIL NOTIFICATION OF MEETIM-OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL SAM ALLEVATO DIANE BATHGATE MATT HART JOE SOTO DAVID M. SWERDLIN The City Council of San Juan Capistrano will meet at 7:00 p.m. on March 21, 2006 in the City Council Chamber in City Hall, to consider: "Consideration of Agreement for Phase 1 of the Emergency Service Program Connecting Irvine Ranch Water District's System to the South Orange County Import System to Improve Emergency Water Service" – Item No. D8. If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at the City Clerk's office by 5:00 p.m. on Monday, March 20, 2006 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a yellow "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Eric Bauman, Water Engineering Manager. You may contact that staff member at (949) 487-4312 with any questions. The agenda, including agenda reports, is available to you on our web site: www.sanivancapistrano.org. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: council-agendas(o2sanivancaoistrano.org. Meg Monahan, CMC City Clerk cc: Municipal Water District of Orange County; Eric Bauman, Water Engineering Manager Received staff report San Juan Capistrano: Preserving the Past to Enhance the Future 0 Printed on recydetl paper