1978-1018_TRI- CITIES MUNICIPAL WATER DISTRICT_Memorandum of UnderstandingAGK:os 10/2/78
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1 MEMORANDUM OF UNDERSTANDING REGARDING
INTERRUPTABLE NON -EMERGENCY USE OF
2 INTERCONNECTION BETWEEN SANTIAGO AQUE-
DUCT AND TRI -CITIES TRANSMISSION MAIN
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4 THIS MEMORANDUM OF UNDERSTANDING is entered into by and
5, between TRI -CITIES MUNICIPAL WATER DISTRICT ("TRI -CITIES" herein),
6 EL TORO WATER DISTRICT ("EL TORO" herein), MOULTON-NIGUEL WATER
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7 DISTRICT ("MOULTON-NIGUEL" herein), and ORANGE COUNTY WATER WORKS
8 DISTRICT NO. 4 ("WATER WORKS NO. 4" herein):
9 1. This Memorandum of Understanding is necessary to
10 clarify the respective rights and obligations of the parties here -
11 to concerning MOULTON-NIGUEL's interruptable non -emergency use of
12 the emergency interconnection between the Santiago Aqueduct and the
13 Tri -Cities Transmission Mian. This Memorandum of Understanding is
14 made in contemplation of the following facts:
15 (a) An emergency interconnection was established
16 between the Santiago Aqueduct and the Tri -Cities
17 Transmission Main pursuant to an agreement en -
18 titled "Agreement for Construction, Operation and
19 Maintenance of Facilities for Emergency Inter -
20 connection between Santiago Aqueduct and Tri -
21 Cities Transmission Main", dated August 11, 1964
22 ("Interconnection Agreement" herein).
23 (b) The Interconnection Agreement provided
24 that the facility established pursuant thereto
25 would be used only in the case of certain
26 specified emergencies and after a specific request
27 for emergency service from TRI -CITIES to EL TORO
28 or from EL TORO to TRI -CITIES.
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(c) The Interconnection Agreement provided that
water utilized through the emergency interconnection
would be charged to the using agency (TRI -CITIES or
EL TORO) at the then existing wholesale domestic
water rate of the supplying agency, without a
charge for use of the supplying agency's facilities
as part of the emergency interconnection ("Wholesale
Rate"). TRI -CITIES has established its Wholesale
Rate each year at a price equal to the EL TORO
Wholesale Rate so that the charge for emergency
water is the same for either agency taking
emergency water through the emergency interconnec-
tion.
(d) The Interconnection Agreement provided that a
permanent connection of Rossmoor Water Company
(now Laguna Hills Water Company, "LAGUNA HILLS"
herein) to the interconnection facilities would not
be determined on the basis of surplus or emergency
capacity in said facilities and also provided that
permanent use of the emergency interconnection
facilities might be considered at a later date.
(e) MOULTON-NIGUEL and LAGUNA HILLS have entered
into agreements whereby LAGUNA HILLS provides
retail distribution of water within a portion of
MOULTON-NIGUEL and whereby LAGUNA HILLS receives
MOULTON-NIGUEL water from the Tri -Cities Trans-
mission Main through the facilities provided in
the Interconnection Agreement.
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1' (f) MOULTON-NIGUEL has 45 c.f.s. capacity in
2 the Tri -Cities Transmission Main and may receive
3 water from the Tri -Cities Transmission Main at a
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4I rate equal to TRI -CITIES' cost of water plus a
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5 surcharge for the use, operation and maintenance
6 of the Tri -Cities Transmission Main and appur-
7 tenances ("4 -Power Rate" herein).
8 (g) TRI -CITIES has heretofore charged EL TORO
9 for non -emergency water utilized through the
10 emergency interconnection at the Wholesale Rate
11 and EL TORO has recently refused to pay that por-
12 tion of such charges which exceed the TRI -CITIES'
13 cost of water from Metropolitan Water District.
14 (h) The parties hereto wish to clarify and
15 establish their respective rights and obligations
16 with respect to the foregoing facts.
17 2. The parties hereto hereby stipulate and agree that
18 their respective rights and obligations under the Interconnection
19 Agreement shall be as follows. To the extent that the provisions
20 as set forth below are inconsistent with the Interconnection Agre
21 ment, this Memorandum of Understanding shall control.
22 A. Non -Emergency Use.
23 MOULTON-NIGUEL may provide water to LAGUNA HILLS
24 from the Tri -Cities Transmission Main through the
25 emergency interconnection facilities provided for
26 in the Interconnection Agreement. Such provision
27 of water is and shall be interruptable, subject to
2$ the paramount right of the parties hereto to utilize
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said interconnection facilities for the emergency
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purposes set forth in the Interconnection Agree -
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ment. MOULTON-NIGUEL shall obtain no rights in
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the use of the interconnection facilities over
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and above those provided in the Interconnection
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Agreement.
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B. Use of Tri -Cities Main.
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MOULTON-NIGUEL's use of the interconnection
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facilities for non -emergency use is subject
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to all the limitations and obligations of
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MOULTON-NIGUEL's use of its capacity in the
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Tri -Cities Transmission Main. Specifically,
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MOULTON-NIGUEL may not through use of the
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emergency interconnection facilities, alone
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or in combination with its other connections
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to the Tri -Cities Main, divert more than its
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contractual water flows for capacity rights
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in the Tri -Cities Transmission Main and all
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water delivered through the interconnection
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facilities to MOULTON-NIGUEL shall be subject
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to the 4 -Power Rate.
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C. Emergency Use.
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TRI -CITIES or EL TORO, each upon notice to the
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other as provided in the Interconnection Agree -
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ment, may utilize the total capacity of the
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interconnection facilities for the emergency
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purpose specifieA in the Interconnection Agree -
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ment. All such emergency water use shall be
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subject to the Wholesale Rate specified in the
Interconnection Agreement.
D. Billing for Non -Emergency Use.
Water provided to LAGUNA HILLS by MOULTON-NIGUEL
through the emergency interconnection facilities
shall be billed by TRI -CITIES to MOULTON-NIGUEL
at the 4 -Power Rate. TRI -CITIES shall provide
a separate statement to MOULTON-NIGUEL for water
used through said connection. MOULTON-NIGUEL
agrees to promptly pay such statements as
rendered by TRI -CITIES. Provided, however, if
water is provided to TRI -CITIES or to EL TORO
after notice pursuant to the Interconnection
Agreement, appropriate billings will be provided
through TRI -CITIES or EL TORO, as the case may be,
at the Wholesale Rate and otherwise in accordance
with the Interconnection Agreement, and MOULTON-
NIGUEL shall not be liable for payment of water
used through the interconnection facilities during
such emergency.
E. This Memorandum shall be effective upon the
date of execution by the last party to execute
and shall apply prospectively only.
F. Any modification to the interconnection facili-
ties necessary to provide for the convenient
service of LAGUNA HILLS by MOULTON-NIGUEL and
to prevent back feeding of water through the
interconnection meter to the TRI -CITIES Main
C&C
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so that TRI -CITIES is charged for EL TORO water,
shall be installed by TRI -CITIES at the sole ex-
pense of MOULTON-NIGUEL.
EXECUTED the dates specified below.
EL TORO WATER DISTRICT
DATED: ��� ('F?? By
President
APPROVED:
/ By
Legal Counsel \
ORANGE COUNTY WATER WORKS DISTRICT
NO. 4 _
DATED: g,(471 By,
APPROVED:
Legal Counsel (j
Lm
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TRI -CI S MUNICI L WATER DISTRICT
DATED: C i' f / �,
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BY
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APPROVED:
President
By
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Secretary
Legal Counsel
MOULTON-NIGUEL
WAT&R?DISTRjCT
DATED:C��� � %� / r/J�
BY
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Pr ident
APPROVED:
-
BY
Secreta v-'e"�
)
Legal Counsel
EL TORO WATER DISTRICT
DATED: ��� ('F?? By
President
APPROVED:
/ By
Legal Counsel \
ORANGE COUNTY WATER WORKS DISTRICT
NO. 4 _
DATED: g,(471 By,
APPROVED:
Legal Counsel (j
Lm
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