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Agreement Between Metropolitan Water District of Southern California City of Santa Ana, and Municipal Water District of Orange County for In -Lieu Treated Deliveries to MWDOC-Metropolitan Cyclic Account This Agreement is made as of November 5, 2019, by and between the METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA ("Metropolitan"), a public agency of the State of California, the MUNICIPAL WATER DISTRICT OF ORANGE COUNTY ("MWDOC"), a public agency of the State of California, and the CITY OF SANTA ANA ("City"), a California municipal corporation (collectively, the "Parties"). Section 1. Purpose of Agreement a. Metropolitan is a wholesale provider to its 26 member agencies, created under The Metropolitan Water District Act ("MWD Act"). Wat. Code appen., §§ 109-25, 109- 130. b. MWDOC is a member public agency of Metropolitan and a wholesale water provider with a service area that includes lands overlying the Orange County Groundwater Basin, a large groundwater basin located in Northern and Central Orange County. MWDOC was created under the Municipal Water District Law of 1911. Cal. Wat. Code, §§ 71000 et seq. c. City is a member public agency of Metropolitan and a retail water provider with a service area overlying the over the Orange County Groundwater Basin. d. Metropolitan, MWDOC and the Orange County Water District have entered into an agreement dated August 10, 2017 ("MWDOC-Metropolitan Cyclic Agreement"), incorporated herein by reference that provides for the delivery of water by Metropolitan to MWDOC in advance of demand for the water by MWDOC through a cyclic account ("MWDOC-Metropolitan Cyclic Account"). e. Through this Agreement, the Parties intend to provide for a means of delivering water from Metropolitan through City into the MWDOC-Metropolitan Cyclic Account, which deliveries are intended to be subject to the specific terms in this In -Lieu Treated Deliveries Agreements. The Parties intend for the MWDOC-Metropolitan Cyclic Agreement to apply with respect to all other terms. Section 2. Designated In -Lieu Treated Deliveries. Metropolitan's General Manager has determined that water supply conditions are such that Metropolitan may not be able to capture all available supplies efficiently in available storage. Given the recent SWP allocation increase to 75 percent, uncertainties due to increased Article 21 and Colorado River supplies, and continued lower demands, supplies available for storage in 2019 may exceed Metropolitan's ability to store in CY 2019. Accordingly, Metropolitan agrees to pre -deliver treated water to the City to assist Metropolitan in managing its water resources. The City agrees to take treated water from Metropolitan pursuant to this Agreement for delivery into the MWDOC- Metropolitan Cyclic account in the Orange County Groundwater Basin through in -lieu means (In -Lieu Treated Deliveries). #11706v4 EXHIBI 16E-4