ORANGE COUNTY WATER DISTRICT -2017

Home Browse Search

users within the boundaries of RETAILER that may be added as Project Customers in accordance with paragraphs 2.6, 2.7 and 2.8 above. 3.2 RETAILER shall purchase the Project Water from OCWD, at the point of its metered commections, for an amount equal to OCWD's cost of producing and distributing Project Water based on the methodology set forth in Exhibit D, as determined by OCWD after consultation with the Operating Group defined in paragraph 3.3. Capital improvements such as changes in treatment plant technology and distribution system operation shall be included in OCWD's costs. OCWD shall annually calculate the Project Water rate, and provide written notice to RETAILER of the then -effective Project Water rate. Upon request, OCWD shall provide RETAILER with supporting data used to calculate the Project Water rate. OCWD shall have discretion to smooth out anticipated increases in debt and capital improvement payments over several years preceding and following actual OCWD cost incurrence years, in order to avoid significant and sudden increases to the Project Water rate, When a smoothing method is applied by OCWD, it will be discussed with the Operating Group, as defined in paragraph 3.3, and disclosed on the annual revision of Exhibit D. The point of connection and sale of the Project Water from OCWD to RETAILER shall be at the meter which measures the flow of Project Water to each Project Customer, as described in paragraph 2.4 herein above. The parties mutually recognizc and agree that the Project Water rate may change each year and. become effective on July 1 of each year during the term of this Agreement. 3.3 Staff representatives of OCWD, RETAILER, and other retail agencies participating in the Green Acres Project shall form an "Operating Group" to meet: at least once prior to the annual publishing of the revised Exhibit D by OCWD, The Operating Group shall meet and confer with regard to the proposed Exhibit D contents, future Exhibit D estimates, planned Green Acres Project capital and repair projects, and review previous Green Acres Project projects, Project Water performance, and revisions to Exhibit E. 3.4 The governing body of RETAILER shall establish the rate for the resale of Project Water to each Project Customer in accordance with applicable legal requirements which may include cost of service. 3.5 RETAILER shall read the Project Water meter for each Project Customer on a one (1) month cycle or in concurrence with RETAILER's schedule for reading meters which measure the quantity of potable water delivered by RETAILER. Within fifteen (15) days thereafter, RETAILER shall transmit to OCWD a statement setting forth the Project Water rate established by RETAILER pursuant to paragraph 3.4 during that billing period, a description of the maintenance, repair and replacement activities of RETAILER on Project Facilities, the amount of such actual costs incurred by RETAILER pursuant to paragraph 5.1 herein below during that billing period, and indicating, for each Project Customer, the current meter reading, the previous meter reading, and the total quantity of Project Water purchased from OCWD and resold by RETAILER to such Project Customer during the billing period. Together with this statement, RETAILER shall transmit to OCWD payment in accordance with paragraph 3.2 for the Project Water purchased from OCWD by RETAILER and resold by RETAILER to all of the 6 of 20