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LP <br />fi <br />ilo <br />`.r <br />t; <br />A -2015 -015 <br />LIMITED TERM PARTIAL BASIN EQUITY ASSESSMENT <br />EXEMPTION AGREEMENT BETWEEN ORANGE COUNTY WATER DISTRICT <br />AND CITY OF SANTA ANA <br />(Santa Ana Well No. 32) <br />This LIMITED TERM PARTIAL, BASIN EQUITY ASSESSMENT EXEMPTION <br />AGREEMENT (the "Agreement ") is entered as of January 21, 2014 by and between the <br />ORANGE COUNTY WATER DISTRICT, a special governmental district organized and <br />existing pursuant to the Orange County Water District Act, Chapter 924, Statutes of 1933, as <br />amended ( "OCWD "), and the CITY OF SANTA ANA, a municipal corporation organized and <br />existing under the laws of the State of California ( "City "). <br />RECITALS <br />A. Approximately two- thirds of all drinking water currently used within northern and <br />central Orange County is provided from growidwater by OCWD. Inasmuch as Orange County is <br />located in a, semi -arid area, it is essential that all reasonable efforts be put forth to protect the <br />quality of groundwater supplies and to provide for maximum utilization of that resource. <br />B, The United States Environmental Protection Agency ("USEPA") and the State of <br />California Department of Public Health ('`CDPH ") have adopted primary drinking water <br />standards, which include limits for nitrate. Water containing nitrate concentrations in excess of <br />45 mgL (expressed as NO3) have been determined by USEPA and CDPH not to be suitable for <br />municipal or domestic purposes without treatment. <br />C. The City operates a public water system for the purpose of delivering potable <br />water to its customers, and obtains most of its water by pumping groundwater from wells for <br />delivery to its customers. The City, as well as other groundwater producers within the <br />boundaries of OCWD, has lost the use of some of its groundwater wells due to the presence of <br />nitrate in quantities exceeding USEPA and CDPH drinking water standards. Santa Ana Well No. <br />32 ( "Well 32 "), located at Morrison Park near the intersection of Memory Lane and Westwood <br />Avenue in Santa Ana, has the capacity to produce tip to 4,000 acre feet per year of groundwater; <br />however, the City has discontinued production of groundwater from Well 32 in 2005 due to its <br />low operational efficiencies and high nitrate concentrations. <br />D, The City recently retained an engineering consulting firm to evaluate and <br />recommend alternatives to reduce high nitrate levels in the water produced by Well 32, After <br />evaluating alternatives, the City has decided to pursue a water blending alternative as the most <br />economical option. The City proposes to blend high nitrate water produced by Well 32 with low <br />nitrate water produced by City of Santa Ana Wells 36 and 39 ( "'Wells 36 and 39 ")in the <br />reservoirs located at the John Garthe Pump Station Complex. The blending alternative mitigates <br />the high nitrate levels and allows the City to utilize the groundwater plumping capacity of Well <br />32 and place the well back in to service (the "Project"). The City's preliminary cost estimate for <br />the Project is $4,600,000 which includes $920,000 in contingencies (the "Project Cost"), The <br />City and OCWD will revisit the Project Costs once the construction bids are received to ensure <br />the program financials are consistent with this Agreement. OCWD has determined that the City's <br />1311022499 -0003 <br />3005032.1 ao3/29/12 <br />848745.1 <br />