WATER DISTRICT, ORANGE COUNTY (Green Acres Project Water) - 1988

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F. MWDOC, CMWD and SA, as member public agencies of Metropolitan under the Act, are wholesale purchasers within their respective service areas of water developed, stored, and distributed by Metropolitan; G. OCWD is a member public agency of MWDOC with boundaries that Include portions of the service boundaries of MWDOC, CMWD and SA; K OCWD was created under a Special Act of the California Legislature in 1933 (OCWD Act) for the purpose of protecting and managing the Orange County groundwater basin. The OCWD Act specifically empowers OCWD to manage the groundwater basin; to provide for conservation of the basin including both quantity and quality of water; and to provide protection both of the water rights of Orange County and of the natural flow of the Santa Ana River; I. Metropolitan has determined to take all reasonable and necessary steps to provide its service area with adequate and reliable water to meet present and future needs in an environmentally and economically responsible way including providing financial incentives to water recycling projects under its LRP; A significant amount of treated wastewater generated within OCWD's service area is significant into the ocean, which water when provided with tertiary treatment could be used for irrigation, agricultural, corni-nercial and industrial purposes, thereby avoiding disposal thereof as a waste product, and avoiding the use of an equivalent volume of imported water from Metropolitan's water supply system for such purposes; K Pursuant to the JPA, the Project commenced operation in October 1991; L. Under the Project, OCWD owns and operates a tertiary treatment facility known as Green Acres Reclamation Plant which is a source of recycled water for the Project. 'Under a separate agreement, recycled water may be purchased from the Irvine Ranch Water District (IRWD) during the winter through an intertie with the Newport Beach pipeline and used to satisfy Project demands, Further, OCWD has entered into discussions regarding conveyance of well water through the Project's distribution system to 1RWD via the intertie and connecting pipelines; M. Metropolitan, MWDOC, CMWD, SA and OCWD have determined that it is mutually beneficial for local water projects originating in the service areas of MWDOC, CMWD, and SA to be developed as a supplement to Metropolitan's imported water supplies in order to meet future water needs; N� Metropolitan desires to assist in increasing production and distribution of recycled water by providing a financial incentive to OCWD, through MWDOC, CMWD, and SA, for implementation of the Project; O. MWDOC, CMWD, and SA desire to participate in and affirmatively support the Project by transferring to OCWD the financial incentive that they receive from Metropolitan; Agreement 22156 -2-