25C - AGMT - WATER PURCHASE ORDER

Home Browse Search

11/18/2014 Board Meeting 8 -1 Page 3 provides a level of assurance between the member agency and Metropolitan, and among the member agencies, that revenues will be generated. In particular, the Purchase Order commitment provides a level of assurance among the member agencies that participating agencies will share in the costs of supporting Metropolitan, as determined by cost -of- service analyses. Attachment 2 summarizes each member agency's options. Attachment 3 includes the proposed changes to the Administrative Code in strike - through and underline format to incorporate the new Purchase Order. Purchase Orders are voluntary and do not confer a contractual right to system water to a member agency. The Tier 1 and Tier 2 Supply Rates for Calendar Years 2015 and 2016 have already been determined by the Board. Biennially, the Board reviews the proposed Tier 1 and Tier 2 Supply Rates as part of the biennial rate setting process. Metropolitan Water District Administrative Code Section 4120: Purchase Order; Purchase Order Commitment Metropolitan Water District Administrative Code Section 4122: Base Period Demand; Revised Base Firm Demand; Initial Base Firm Demand; Metropolitan Water District Administrative Code Section 4404: Purchase Orders California Environmental Quality Act (CEQA) CEQA determination for Option #1: The proposed action is not defined as a project under CEQA because it involves continuing administrative activities, such as general policy and procedure making (Section 15378(b)(2) of the State CEQA Guidelines). In addition, the proposed action is not subject to CEQA because it involves other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment (Section 15378(b)(4) of the State CEQA Guidelines). In addition, where it can be seen with certainty that there is no possibility that the proposed action in question may have a significant effect on the environment, the proposed action is not subject to CEQA (Section 15061(b)(3) of the State CEQA Guidelines). The CEQA determination is: Determine that the proposed action is not defined as a project and is not subject to CEQA pursuant to Sections 15378(b)(2), 15378(b)(4), and 15061(b)(3) of the State CEQA Guidelines. CEQA determination for Option #2: None required Board Options Option #1 Adopt the CEQA determination that the proposed action is not defined as a project and is not subject to CEQA, and a. Approve the proposed terms for Purchase Orders with member agencies as outlined in Attachment 1; b. Authorize the General Manager to execute the Purchase Order with member agencies opting to execute the Purchase Order consistent with the proposed terms, in a form approved by the General Counsel; and c. Approve amendment of Sections 4120, 4122, 4401, 4404, and 4507 of the Administrative Code as shown in Attachment 3. Fiscal Impact: The Purchase Orders will have no fiscal impact in FY 2014/15 and FY 2015/16; the biennial budget assumes 1.75 MAF of sales in each fiscal year, with no Tier 2 purchases. 25C -14