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INTERAGENCY AGREEMENT <br />This Interagency Agreement ("Agreement"), is entered into between the City of Santa Ana <br />("CITY"), Orange County Water District ("OCWD") and Moulton Niguel Water District <br />("MNWD"), collectively herein referred to as the PARTIES. <br />I. PURPOSE <br />The purpose of this Agreement is to work collaboratively to further evaluate a potential <br />emergency interconnection ("INTERCONNECTION") between the CITY water <br />distribution system and the East Orange County Feeder #2 ("EOCF#211). The proposed <br />INTERCONNECTION would: <br />a. Be located at the CITY East Station site on E. Santa Fe St., as identified in the <br />Evaluation of Groundwater Conveyance Options, Final Draft Preliminary Report (City <br />of Santa Ana Only), prepared by Tetra Tech, dated September 2020 (exhibit 1) and; <br />b. Only be utilized when the EOCF#2 was not conveying treated water from the <br />Metropolitan Water District of Southern California ("MWD") Diemer Filtration Plant <br />due to a qualifying emergency outage; <br />The goal of this Agreement is to evaluate the feasibility for the INTERCONNECTION by <br />completing a preliminary design study and environmental analysis that would identify the <br />necessary infrastructure and any necessary environmental mitigations, and refine the <br />potential estimated construction cost for a new emergency INTERCONNECTION. <br />Further, this Agreement authorizes the analysis of work necessary to address the <br />institutional arrangements required to potentially deliver water from the Orange County <br />groundwater basin into theEOCF#2 under qualifying emergency conditions. If warranted, <br />a subsequent agreement would be developed to define the terms and conditions for <br />constructing and operating the potential INTERCONNECTION during qualifying <br />emergencies. To that end, this Agreement serves to establish a common understanding of <br />the guiding principles for the terms and conditions of any future agreement. <br />II. GUIDING PRINCIPLES <br />The following guiding principles will be adhered to by all PARTIES as fundamental to <br />this Agreement and will be adhered to in completing any work to develop the <br />INTERCONNECTION and will be foundational to the terms and conditions of any future <br />service agreement: <br />a. The INTERCONNECTION would be used during qualifying emergency conditions <br />when the EOCF#2 is not delivering water from the Diemer Filtration Plant. A <br />qualifying emergency condition for the purposes of this Agreement is defined as <br />significant interruption of MWD's ability to provide water to MNWD due to failure of <br />infrastructure as identified in the Evaluation of Groundwater Conveyance Options, <br />Final Draft Preliminary Report (City of Santa Ana Only), prepared by Tetra Tech, <br />dated September2020 (exhibit 1). A drought emergency declared by the Governor of <br />Page 1 of 7 <br />City Council 30 — 5 5/17/2022 <br />5169249.1 --N1716.0 <br />