METROPOLITAN WATER DISTRICT OF SO. CALIF ET AL

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1.6 "Fiscal Year" shall mean a Metropolitan Fiscal Year that begins on July 1 and ends on June 30. 1.7 "New Demand Charge" shall mean those amounts charged to each member agency to recover the capital costs associated with meeting that agency's new demands on Metropolitan's system, pursuant to the discretionary rate -setting authority of Metropolitan's Board of Directors. 1.8 "Project" shall mean the "Green Acres Reclamation Project", as defined in Exhibit A attached hereto and incorporated herein by this reference, being developed by OCWD to produce the Ultimate Yield. 1.9 "Project Unit Cost" shall mean the actual cost to produce an acre-foot of Recovered Water.by. the'Project and is comprised of three components: Annualized Capital Component, Operation and Maintenance Component, and Annualized Replacement Component as specified in Exhibits B, C, and D, incorporated herein by this reference. 1.10 "Recovered Water" shall mean all types of water including Recycled Water delivered for beneficial use by the Project in a Fiscal Year, measured in acre-feet. 1.11 "Recycled Water" shall mean treated wastewater which, subject to regulatory requirements, is suitable for beneficial uses. 1.12 "Ultimate Yield" is originally established as 7,000 acre-feet per Fiscal Year and is subject to the reduction provisions as outlined in Exhibit F, incorporated herein by this reference. Section 2. Warranties 2.1 OCWD, by virtue of its ownership of the Green Acres Reclamation Plant and its agreements with OCSD and IRWD, warrants that it has a firm and adequate source of Recycled Water to operate the Project; 2.2 OCWD warrants that it is able and has a right to sell Allowable Yield from the Project. 2.3 OCWD warrants that it does not discriminate against employees or against any applicant for employment because of ethnic group identification, religion, age, sex, color, national origin, or physical or mental disability and further warrants that it requires all contractors and consultants performing work on the Project to comply with all laws and regulations prohibiting discrimination against employees or against any applicant for employment because of ethnic group identification, religion, age, sex, color, national origin, or physical or mental disability. 2.4 OCWD warrants that it has or will comply with the provisions of the California Environmental Quality Act for each and all components of the Project facilities. Agreement 22156 -4-