METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA (5) -2014

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A- 2014 -354 PURCHASE ORDER FOR SYSTEM WATER TO BE PROVIDED BY THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA PURCHASER: TERM City of Santa Ana 10 years: January 1, 2015 – December 31 2024 INITIAL BASE PERIOD DEMAND: EFFECTIVE DATE: acre -feet 13,476 January 1, 2015 INITIAL TIER 1 MAXIMUM — Annual INITIAL TIER 1 MAXIMUM — Cumulative: Average: acre -feet acre -feet 19,617 196,170 PURCHASE ORDER COMMITMENT— PURCHASE ORDER COMMITMENT — Annual Average: Cumulative: acre -feet $ 036 acre -feet 80,860 Definitions of capitalized terms used in this Purchase Order are provided in Attachment 1. Terms used in this Purchase Order and not defined in Attachment 1 are defined in Metropolitan's Administrative Code. COMMITMENT TO PURCHASE: In consideration of Purchaser's commitment to purchase System Water pursuant to this Purchase Order, Metropolitan agrees to sell such System Water to Purchaser at the Tier 1 Supply Rate in an amount up to the Tier 1 Maximum — Cumulative, All System Water sold to Purchaser in an amount greater than the Tier 1 Maximum — Cumulative shall be sold to the Purchaser at the Tier 2 Supply Rate. In connection with the purchase of System Water, the Purchaser also agrees to pay all other applicable rates and charges, as established by Metropolitan from time to time. The rates and charges applicable to System Water as of the Effective Date are shown in Attachment 2. If Purchaser's applicable System Water purchases during the Term exceed Purchaser's Tier 1 Maximum, Purchaser may elect to: a.) Subject to the provisions of paragraph c) below, pay any Tier 2 Supply obligations at the end of the Term, in an amount equal to the difference between the Purchaser's applicable System Water purchases and the Tier 1 Maximum — Cumulative during the Term times the average of the Tier 2 Supply Rate in effect during the Term; or, b.) pay any Tier 2 Supply obligations, annually as purchases are incurred, in an amount equal to the difference between the Purchaser's applicable annual System Water purchases and the Tier 1 Maximum — Annual times the Tier 2 Supply Rate in effect during the calendar year. A true -up at the end of the Term will be performed to ensure that the Purchaser has received all Tier 1 Maximum — Cumulative purchases allowed by the Purchase Order. c.) if, after the end of the first five years, Purchaser has accrued a cumulative Tier 2 Supply Rate obligation, Purchaser may elect to pay the initial five year cumulative Tier 2 -l-