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

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P. OCWD believes that Metropolitan's continued financial contribution toward the cost of the Project will make the Project operation economically viable, and thus is coirinritted to implementation of this Project; Q. OCWD has an agreement with Orange County Sanitation District (OCSD) to provide 4=1 Project recycled water which is not Allowable Yield under this Agreement. R. The Parties believe development of recycled water by the Project will benefit the local community within OCWD and the region served by Metropolitan, NOW, THEREFORE, in consideration of the promises and covenants hereinafter set forth, the Parties do agree as follows: Section 1: Definitions The following words and terms, unless otherwise expressly defined in their context, shall be defined to mean: 1.1 "'Allowable Yield" shall mean the arnount of Recycled Water including TRWD recycled water delivered to the End Users by OCWD from the Project in a Fiscal Year that is eligible to receive Metropolitan's financial assistance, Allowable Yield shall not exceed Ultimate Yield and shall exclude any Recycled Water Metropolitan reasonably determines will not reduce MWDOC's, CMWD's and SA's demand for Metropolitan's imported water. Unless otherwise approved in writing by Metropolitan, Allowable Yield shall exclude: (1) groundwater, surface water or potable water deliveries to supplement the Recycled Water system; (2) Allowable Yield from other projects with active or terminated LRP or Local Projects Program agreements-, and (3) additional Recycled Water or any type of water conveyed through Project facilities to OCSD. 1.2 "Deferred Cost "shall mean that cost, in dollars per acre-foot, carried forward from the preceding Fiscal Year as calculated in Exhibit E, incorporated herein by this reference. 1.3 "End User" shall mean each user that purchases Allowable Yield furnished by this Project. IA "Estimated LRP Contribution" shall mean the advanced financial contribution in dollars per acre-foot Metropolitan pays for Allowable Yield to OCWD for monthly billing purposes until the Final LRP Contribution is calculated pursuant to procedures in Sections 4.2 and 5.2, respectively. 1.5 "Final LRP Contribution" shall mean the financial contribution, not to exceed $250 per acre-foot, by Metropolitan to the Project in dollars per acre-foot of Allowable Yield. The Final LRP Contribution for the Project is equal to the sum of the Project Unit Cost and Deferred Cost minus the sum of Metropolitan's prevailing full service treated water rate and the amortized cost of any avoided Metropolitan New Demand Charge. The New Demand Charge will be applied in the formula used to determine the Final LRP Agreement 22156 -3-