ORANGE COUNTY WATER DISTRICT (OCWD)

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(9) disposal of waste materials generated by the Treatment System, including landfill costs and incineration, and costs of hazardous waste disposal (if applicable); (10) sewerage costs associated with maintenance/backwash of the Treatment System; and (11) such other reasonable maintenance costs as are necessary to ensure the Treatment System continues to operate properly consistent with its design. D. Non -reimbursable costs include: (1) existing Producer staff time costs not attributable to the PEAS Treatment Facilities; (2) direct or indirect overhead type expenses for staff; and (3) cost resulting from a Producer's inadequate operation and maintenance of the Treatment System. E. Reimbursement Rate Adiustment. The $75/acre foot rate will be automatically adjusted annually each July 1 (beginning July 1, 2021) by the percentage differential based on the last two annual indices set forth in the Bureau of Labor Statistics Consumer Price Index for All Urban Consumers - Los Angeles -Long Beach -Anaheim. The maximum O&M reimbursement rate may be increased by OCWD if there are unforeseen, unique or specific circumstances of the Treatment System that, through no fault of a Producer, result in a higher cost of treatment at a Producer's treatment system, including increased costs attributable to new statutes, regulations or regulatory interpretations. F. Submittals; Reimbursement Timing. OCWD shall reimburse each Producer its allowable O&M costs incurred by a Producer within 60 days of receiving the Producer's annual O&M unit cost calculation and supporting information as described in Section 6.2.B. via direct payment. G. Treatment Media. OCWD may solicit and enter into a future contract with the appropriate activated carbon, resin, and/or other adsorption media manufacturers to obtain a lower price for this material than could be obtained by the individual Producer. Unless a Producer opts out in writing of this Section within 30 days of the Effective Date, Producer will support and participate in OCWD efforts to obtain a lower cost for activated carbon and/or resin. 6.3 Grants. A. OCWD-Sought. OCWD may seek federal, state, or other grant funding to offset costs of the PEAS program contemplated by this Agreement. Each Producer shall support and assist OCWD, as may be reasonably requested by OCWD, to obtain any grants that maybe used by OCWD to fund construction and/or future O&M of Treatment Systems. Grant 2629/022499-0087 -1 1- 14979764.1 a04/1720