MUNICIPAL WATER DISTRICT OF ORANGE COUNTY (MWDOC) (4) - 2012

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• Turf Removal Program • Hotel Program • Industrial Program • Water Smart Landscape Program (Aka - Landscape Performance Certification Program) The City hereby gives notice for fiscal year 2012-2013 that all of the currently available programs listed above should be provided within the City. If MWDOC introduces additional WUE programs during the 2012-2013 fiscal year that similarly do not require a separate participation and funding agreement with MWDOC, the City will also be included in these programs without the requirement of additional notice. Costs for such additional programs may be recovered by MWDOC as discussed below. 1. COST RECOVERY BY MWDOC A. Except for WUE programs subject to a separate agreement between the City and MWDOC, the City agrees to pay MWDOC for the City's proportionate share of the cost of WUE programs covered by this letter agreement, including costs related to materials, staff time, vendors, and other overhead, subject to the limitation below. B. Invoices from MWDOC will be based on a proportionate share of MWDOC's estimated program costs, including personnel and other overhead costs, which will be assigned annually to the City during MWDOC's budget process. Invoices will not be based on itemized costs incurred for services or materials provided to the City.. Costs due under this letter agreement shall not exceed $578 per year in fiscal year 2012- 2013, as shown in the attached spreadsheet. (See Attachment A.) An updated Attachment A will be provided annually upon renewal of this letter agreement. C. If additional WUE programs are added during the year, MWDOC reserves the right to capture resulting program cost increases in the Attachment A generated for the next fiscal year. D. MWDOC shall invoice the City in July of each year based on the City's Attachment A amount, and the City shall pay the full amount due within thirty (30) days of receipt of the invoice. Any disputes regarding an invoice shall be sent to MWDOC within 30-days of receipt. A reconciliation of actual program costs will be performed at the end of the year during MWDOC's budget process and reflected in the Attachment A for the following year. 2. TERM A. This letter agreement shall become effective on July 1, 2012, and shall continue for a period of one year. The parties may mutually agree in writing to renew this letter agreement for an additional year, on or before the expiration date, for up to five additional years. B. If the City wishes to add or delete programs in conjunction with the annual renewal of this letter agreement, notice of such addition or deletion must be received by MWDOC prior to March 15tH C. The City or MWDOC may terminate this letter agreement upon giving thirty (30) days written notice to the other party.