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

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1. The Operation and Maintenance Component shall be computed using only the following incurred costs by 0CWD during the applicable Fiscal Year. a. Professional consulting services for Project operation, maintenance and audit excluding daily Project operation. b. OCWD labor costs and/or contract labor costs equal to.- $175,000 x (A / $22.89) where A is maximum hourly rate for O&M Technician (i.e., entry level plant operator) for the applicable Fiscal Year and $22.89 is the maximum hourly rate for O&M Technician for Fiscal 'Year 1998-99, Between July I and December 3 0 in the year 2002, and every third year thereafter, any Party may request the Coordinating Committee to revise the allowable labor cost. Labor cost in the first year of production of Allowable Yield shall be prorated based on the number of days of production of Allowable Yield, C. Chemicals and supplies for Project operation and maintenance, d. Net electrical energy (recovered energy shall be deducted from energy purchased) for Project operations. Metropolitan shall not pay for electrical energy cost if OCWD fails to install electrical metering devices. e. Contractor services and Supplies for Project facilities, operation, maintenance and repair to maintain reliable system operation and achieve regulatory compliance. f Monitoring required by permits, including water quality sampling and analysis of Recycled Water produced by the Project, 9- Replacement of Project parts costing less than or equal to the following amount per unit: $100,000 x (ENRCCI / 6,694) where ENRCCI is the Engineering News Record Construction Cost Index for Los Angeles area for July of each applicable Fiscal Year. ENRCCI for July 1998 is 6,694. h. Payments to Irvine Ranch Water District (IRWD) for Recycled Water service via the Irvine Reclamation Project/Green Acres Project intertie during winter months, Agreement 22156 -19-