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HomeMy WebLinkAbout25E - AGMT - WATER DELIEVERIESREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 5, 2019 TITLE: APPROVE AGREEEMENT WITH METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA AND THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY FOR IN -LIEU TREATED WATER DELIVERIES (NONGENERAL FUND) {STRATEGIC PLAN NO. 5,21 CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO /s/ Kristine Ridge FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager to execute an agreement with the Metropolitan Water District of Southern California and the Municipal Water District of Orange County for in -lieu treated water deliveries, beginning on November 5, 2019 and expiring on July 1, 2027, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Metropolitan Water District (MWD) is a wholesale water provider to its 26 member agencies; the City of Santa Ana and the Municipal Water District of Orange County (MWDOC) are member agencies of MWD. MWD provides imported surface water to the Southern California region from both the Sacramento Bay Delta to the north, and the Colorado River to the east. A significant amount (approximately 25 percent) of water supplied by the City of Santa Ana to its residents and businesses is purchased from MWD. The balance of water supplied by the City is pumped groundwater from the Orange County Basin. The heavy rains and snowfall experienced across the State during the winter seasons of 2016- 2019 has resulted in an abundance of surface water runoff into the Sacramento Bay Delta. This surface water must be stored, consumed, or allowed to flow into the ocean. As a result, MWD has filled its reservoirs and must find additional storage space and use for the surface water, or risk losing this precious resource to the ocean. One strategy available to MWD is to ask groundwater producers, such as Santa Ana, to increase the amount of MWD surface water they use, and decrease groundwater pumping. This "in -lieu pumping" (water banking) strategy will allow Santa Ana to save its basin groundwater. In future 25E-1 Agreement with MWD and MWDOC for In -Lieu Treated Water Deliveries November 5, 2019 Page 2 years, when surface water supply conditions are less abundant, the City will do the opposite: pump more groundwater out of the basin and save surface water. The City has successfully participated in this type of water banking agreement in the past, most recently in 2017. While past agreements have been for short terms (1 year), this proposed agreement will be in effect until July 1, 2027 allowing for water agencies to actively perform water banking as water conditions in the State change and saves administrative cost and time associated with executing individual annual agreements. A key factor for the City to participate in the program is an overall net neutral fiscal impact. Per the proposed agreement, the City will pay MWD the Treatment Surcharge rate in effect, currently $319 per acre-foot of water while at the same time receive a credit of up to $225 per acre-foot from MWD. By participating in this program the City will receive water directly from our import connections with MWD in lieu of pumping it from the ground and therefore will realize additional cost savings in avoided energy and operations costs associated with pumping groundwater. These avoided pumping cost savings range between $130 per acre foot to $150 per acre foot. The combination of these avoided cost savings and the MWD credit will be applied such that they equal to the MWD Treatment Surcharge resulting in a net $0 cost to the City's Water Enterprise. The water banking process has to be carefully monitored and accounted for to ensure that the participating agencies exchange appropriate amounts of surface water and groundwater to achieve an overall net $0 cost to the City's Water Enterprise. The proposed in -lieu agreement implements a number of administrative procedures to establish proper accounting. In the assigned roles, MWD supplies water to the City, MWDOC verifies volume of water deliveries and carries the balance sheet for all Orange County participants, and the City pays related invoices to MWD. MWD, at the sole discretion of their Board, adopts wholesale water rates. The Treatment Surcharge rate is $319 for calendar year 2019 and will increase to $323 for year 2020. The proposed agreement runs through year 2027 and while no Treatment Surcharge rate has been adopted yet, staff anticipates modest annual increases. Through the proposed agreement, the City maintains the option to participate in the water banking program at any given time. City staff will evaluate the Treatment Surcharge rate in effect in future years along with the available MWD credit and avoided pumping costs to determine if participation in the water banking program will result in an overall net $0 cost to the City's Water Enterprise as intended prior to agreeing to participate. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Strategic Plan Goal #5 — Community Health, Livability, Engagement & Sustainability, Objective #2 (expand opportunities for conservation and environmental sustainability). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. 25E-2 Agreement with MWD and MWDOC for In -Lieu Treated Water Deliveries November 5, 2019 Page 3 FISCAL IMPACT There is no fiscal impact associated with this action. Wholesale water purchase costs are budgeted annually based on the established wholesale rates and estimated water demands. Fuad Sweiss, PE, PLS Executive Director Public Works Agency FSS/NS/RR Exhibit: 1. Agreement 25E-3 Agreement Between Metropolitan Water District of Southern California City of Santa Ana, and Municipal Water District of Orange County for In -Lieu Treated Deliveries to MWDOC-Metropolitan Cyclic Account This Agreement is made as of November 5, 2019, by and between the METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA ("Metropolitan"), a public agency of the State of California, the MUNICIPAL WATER DISTRICT OF ORANGE COUNTY ("MWDOC"), a public agency of the State of California, and the CITY OF SANTA ANA ("City"), a California municipal corporation (collectively, the "Parties"). Section 1. Purpose of Agreement a. Metropolitan is a wholesale provider to its 26 member agencies, created under The Metropolitan Water District Act ("MWD Act"). Wat. Code appen., §§ 109-25, 109- 130. b. MWDOC is a member public agency of Metropolitan and a wholesale water provider with a service area that includes lands overlying the Orange County Groundwater Basin, a large groundwater basin located in Northern and Central Orange County. MWDOC was created under the Municipal Water District Law of 1911. Cal. Wat. Code, §§ 71000 et seq. c. City is a member public agency of Metropolitan and a retail water provider with a service area overlying the over the Orange County Groundwater Basin. d. Metropolitan, MWDOC and the Orange County Water District have entered into an agreement dated August 10, 2017 ("MWDOC-Metropolitan Cyclic Agreement"), incorporated herein by reference that provides for the delivery of water by Metropolitan to MWDOC in advance of demand for the water by MWDOC through a cyclic account ("MWDOC-Metropolitan Cyclic Account"). e. Through this Agreement, the Parties intend to provide for a means of delivering water from Metropolitan through City into the MWDOC-Metropolitan Cyclic Account, which deliveries are intended to be subject to the specific terms in this In -Lieu Treated Deliveries Agreements. The Parties intend for the MWDOC-Metropolitan Cyclic Agreement to apply with respect to all other terms. Section 2. Designated In -Lieu Treated Deliveries. Metropolitan's General Manager has determined that water supply conditions are such that Metropolitan may not be able to capture all available supplies efficiently in available storage. Given the recent SWP allocation increase to 75 percent, uncertainties due to increased Article 21 and Colorado River supplies, and continued lower demands, supplies available for storage in 2019 may exceed Metropolitan's ability to store in CY 2019. Accordingly, Metropolitan agrees to pre -deliver treated water to the City to assist Metropolitan in managing its water resources. The City agrees to take treated water from Metropolitan pursuant to this Agreement for delivery into the MWDOC- Metropolitan Cyclic account in the Orange County Groundwater Basin through in -lieu means (In -Lieu Treated Deliveries). #11706v4 EXHIBI 16E-4 Agreement Between Metropolitan Water District of Southern California City of Santa Ana, and Municipal Water District of Orange County for In -Lieu Treated Deliveries to MWDOC-Metropolitan Cyclic Account The amount, location, and timing of the delivery schedule, along with an operating plan, will be mutually agreed upon prior to delivery by Metropolitan pursuant to a purchase agreement. The actual amount of in -lieu deliveries credited by Metropolitan may be higher or lower based on operational conditions and the Certification Procedures For In -Lieu Treated Deliveries for Cyclic Agreement Between Metropolitan Water District of Southern California, City of Santa Ana, and Municipal Water District of Orange County referenced in Section 8. In - Lieu Treated Deliveries will be made upon Metropolitan's written request and City's and MWDOC's written acceptance of additional treated water deliveries. The City represents and warrants that In -Lieu Treated Deliveries are in addition to its projected full -service deliveries (treated or untreated), which would normally occur without this agreement. MWDOC represents and warrants that an amount equivalent to the In -Lieu Treated Deliveries will be credited to Metropolitan as stored water in the Orange County Basin, pursuant to an intentional reduction in groundwater production by the City, certified and reconciled according to Section 8, until such time as the water is purchased by MWDOC pursuant to the terms of the MWDOC-Metropolitan Cyclic Agreement and Section 9 of this Agreement. Section 3. Term. This Agreement is effective as of November 5, 2019 and shall continue until July 1, 2027, or until the termination of the MWDOC-Metropolitan Cyclic Agreement, and is applicable only to In -Lieu Treated Deliveries, as certified and reconciled according to Section 8. Metropolitan, at its sole discretion, can interrupt the program authorizing In -Lieu Treated Deliveries by providing 15 days' notice to the City and MWDOC. Pursuant to Metropolitan's Board action on April 10, 2019, Metropolitan's General Manager may make a determination regarding water supply conditions and Metropolitan's ability to capture all available supplies at any time during the term of this Agreement. When such determination is made and MWDOC and City agree to accept water pursuant to this Agreement, MWDOC will enter into a purchase agreement in accordance with Section 2. Section 4. Treatment Surcharge Payment. The City agrees to pay Metropolitan the Treatment Surcharge effective at the time of the In -Lieu Treated Delivery, which for calendar year 2019 is $319 per acre-foot and in calendar year 2020 is $323 per acre-foot. Section 5. Cost -offset Credit Term. In exchange for the City's acceptance of In -Lieu Treated Deliveries, Metropolitan agrees to pay the City a cost -offset credit of up to $225 per acre-foot, as determined by Metropolitan pursuant to Section 6. On January I" of 2020, and every following January 1st, the maximum $225 per acre-foot amount will be increased by the Consumer Price Index for Urban Wage Earners and Clerical Workers for Los Angeles -Long Beach -Anaheim All Items (CPI-U) calculated as the November Prior Year/November 2018 CPI-U increase rounded to the nearest #11706v4 25E-5 Agreement Between Metropolitan Water District of Southern California City of Santa Ana, and Municipal Water District of Orange County for In -Lieu Treated Deliveries to MWDOC-Metropolitan Cyclic Account dollar. For example, if the November 2019 CPI-U was 269.005 and the November 2018 CPI-U was 259.064, then the increase for January 1, 2020 would be 3.84% or up to $234 per acre-foot. Section 6. Determination of Cost -offset Credit Term. Metropolitan, at its sole discretion, will determine the Cost -offset Credit Term. Metropolitan will make such determination based on an estimate of costs incurred by the City as a result of taking In -Lieu Treated Deliveries of additional treated water at Metropolitan's request that the City would not otherwise have taken, minus the costs that the City would have incurred if it produced an equivalent amount of water from the Orange County Groundwater Basin. The City will submit its avoided cost estimates to Metropolitan, which Metropolitan will review in addition to historical production cost estimates. Metropolitan will determine the cost -offset credit term and specify the amount in each purchase agreement. The City may, at any time prior to reconciliation and certification described in Section 8, request a redetermination of the Cost -Offset Credit Term, by submitting documentation that its groundwater production costs have changed. Metropolitan may, in its sole discretion, change the Cost -Offset Credit Term upon review of any such additional documentation and confirmation of changes in costs. Section 7. Billing Procedures. Metropolitan will bill the City the Treatment Surcharge in effect at the time the City certifies the In -Lieu Treated Deliveries, in the same manner as Metropolitan bills the City for all other water sales. Metropolitan will pay the City the Cost -Offset Credit Term for In -Lieu Treated Deliveries by applying a credit to the City's meter invoiced amounts, which credit is subject to the certification and reconciliation process described in Section 8. Section 8. Certification and Reconciliation of In -Lieu Treated Deliveries. The City shall submit monthly certifications of In -Lieu Treated Deliveries pursuant to this Agreement consistent with Metropolitan's Administrative Code, sections 4506 to 4507. Such certifications will be made pursuant to the Certification Procedures For In -Lieu Treated Deliveries for Cyclic Agreement Between Metropolitan Water District of Southern California, City of Santa Ana, and Municipal Water District of Orange County, attached hereto and incorporated herein as Attachment 1. On a monthly basis Metropolitan will review these certifications for conformance with the operating plans submitted pursuant to the Certification Procedures For In -Lieu Treated Deliveries for Cyclic Agreement Between Metropolitan Water District of Southern California, City of Santa Ana, and Municipal Water District of Orange County. Metropolitan will process certifications of these deliveries made pursuant to this Agreement in accordance with the agreed -upon operating plan in order to ensure In -Lieu Treated Deliveries were made in addition to normal Full -Service deliveries and as a result of actions to reduce groundwater pumping. #11706v4 2 5 E -6 Agreement Between Metropolitan Water District of Southern California City of Santa Ana, and Municipal Water District of Orange County for In -Lieu Treated Deliveries to MWDOC-Metropolitan Cyclic Account Metropolitan will void any credits given for water deliveries that Metropolitan is unable to determine that are qualifying In -Lieu Treated Deliveries under this Agreement, which will result in an equivalent charge to the City's water invoice plus the applicable untreated Full - Service rates and charges. The total amount of all voided credits shall be billed in the next month following the end -of -year reconciliation. Metropolitan staff will, in collaboration with City staff, perform an annual reconciliation of In -Lieu Treated Deliveries within six months following such time that City's final groundwater production numbers are finalized and provided to Metropolitan staff, in accordance with Attachment 1. Section 9. Purchase of Water Out of Cyclic Account. MWDOC agrees to purchase the In -Lieu Treated Deliveries out of the Cyclic account according to the signed purchase agreement. Billing and payment procedures shall be the same as other purchases from the Cyclic account. Approved as to form: Joseph Byrne General Counsel Date: Approved as to form: Sonia R. Carvalho, City Attorney By: AWLOU &• "h,, Laura A. Rossini Senior Assistant City Attorney Municipal Water District of Orange County Robert Hunter General Manager Date: City of Santa Ana in Date: w�21� I Date: #11706v4 2 5 E -7 Kristine Ridge City Manager Agreement Between Metropolitan Water District of Southern California City of Santa Ana, and Municipal Water District of Orange County for In -Lieu Treated Deliveries to MWDOC-Metropolitan Cyclic Account Attest: M Daisy Gomez Clerk of the City Council Date: Approved as to form: IN Marcia L. Scully General Counsel Date: Recommended for approval: Faud S. Sweiss Executive Director, Public Works Agency Date: The Metropolitan Water District of Southern California to Date: Jeffrey Kightlinger General Manager #11706v4 25E-8 Attachment 1 Certification Procedures For In -Lieu Treated Deliveries for Cyclic Agreement Between Metropolitan Water District of Southern California City of Santa Ana, and Municipal Water District of Orange County 1. Introduction The purpose of this Attachment 1 is to assist the City of Santa Ana (Santa Ana) in its certification of In -Lieu Treated Deliveries for its participation in the Agreement Between Metropolitan Water District of Southern California (Metropolitan), The City of Santa Ana (Santa Ana), and Municipal Water District of Orange County (MWDOC) for the Addendum to Cyclic Agreement for In -Lieu Treated Deliveries (Agreement). Pursuant to the Agreement, Santa Ana is eligible to receive a cost -offset credit in accordance with sections 4 and 5 of the Agreement (Cost -offset Credit). To qualify for the Cost -offset Credit, Santa Ana must meet the requirements contained in these In -Lieu Treated Deliveries Certification Procedures and in Metropolitan's Administrative Code Section 4507. 2. Administration Annual Operating Plan For Santa Ana to participate in this Agreement, Santa Ana shall submit an Operating Plan to Metropolitan's Water System Operations Group (WSO) for review prior to the beginning of the operating period. WSO staff will review the operating plan and work with agency staff to resolve issues and questions related to the operating plan. Operating plans for In -Lieu Treated Deliveries shall follow the form as outlined on the Excel worksheet provided by Metropolitan's WSO staff. Certification of In -Lieu Treated Deliveries In order to obtain the Cost -offset Credit, Santa Ana shall certify the amount of In -Lieu Deliveries purchased from Metropolitan on the forms provided by Metropolitan. Metropolitan WSO staff will perform a cursory review of the certifications for mathematical accuracy upon their receipt. Such a review does not preclude Metropolitan from correcting errors discovered as a result of Metropolitan's annual reconciliation of the In -Lieu Treated Deliveries under this Agreement. Annual Reconciliation Metropolitan WSO staff will complete an Annual Reconciliation of Santa Ana's In -Lieu Treated Deliveries certifications within six months following receipt of final documentation from the agency staff. During this period Metropolitan staff will work with Santa Ana staff to reconcile any differences. If differences cannot be resolved, the Resolution of Differences section below shall apply. Santa Ana shall submit final documentation within six months after the end of the Fiscal Year operating period. If final documentation is not submitted, Metropolitan will assume that the water had been used for Full Service purposes. Santa Ana shall be obligated to pay the amount #11707vI 25E-9 of the credit that had been applied to the In -Lieu Treated Deliveries and all other rates and charges associated with Full Service Treated deliveries. Listed below is the documentation that Santa Ana should maintain to support the Annual Reconciliation. Metropolitan reserves the right to review original documentation. • Original monthly groundwater production records for the previous three years. • Original monthly production records from other local sources • Monthly Metropolitan deliveries. • Monthly demands, excluding recycled water. • Annual local water rights, preferably groundwater basin manager report. • If a sub -agency, monthly water bill from member agency. Resolution of Differences If an impasse exists on the interpretation of the Agreement between the Santa Ana and Metropolitan staff, Metropolitan's Water System Operations' Group Manager has the responsibility to consult with Santa Ana and make a final ruling subject to the General Manager/Chief Executive Officer's oversight. If the ruling on the issue is unsatisfactory to the agency, it can be appealed to the Water Planning and Stewardship Committee of Metropolitan's Board of Directors. The Water Planning and Stewardship Committee shall consider such appeals and make recommendations to the Board. The Board shall act upon such recommendations and its decision shall be final. 3. Documentation for Planning, Tracking, Measuring and Certifying In - Lieu Treated Deliveries under the Cyclic Agreement This Section 3. "Documentation for Planning, Tracking, Measuring and Certifying In -Lieu Deliveries under the Cyclic Agreement augments the Rate Handbook and, where applicable, govern deliveries made under this Agreement. All forms are formatted as Excel worksheets. Worksheet 1, Operating Plan, consists of three sections: Section A, Historic Groundwater Production; Section B, Planned Annual Operating Plan; and Section C, Actual -to -Date and Planned Operations. Worksheet 2, Monthly Certification, is used to certify monthly In -Lieu Treated Deliveries. Agencies should use the Monthly Certification worksheet to certify In -Lieu Treated Deliveries made through a connection having more than one designated use. It is Santa Ana's responsibility to submit Sections A and B of the Operating Plan prior to the beginning of the upcoming operating period, and to update Section C of the Operating Plan, as needed, to reflect actual -to -date operations and any changes in planned operations. In order to receive the cost -offset credit on In -Lieu Treated deliveries under the Cyclic Agreement, Santa Ana must also submit a Monthly Certification to Metropolitan for each month that such deliveries occurred. All certified water also would be subject to Certification and Billing Procedures outlined in the Rate Handbook and subject to Administrative Code, Section 4507. Lines on the forms requiring data input are highlighted in green. All other lines are calculated. A line -by-line explanation of the forms follows with the symbol, "6"designating a user input, and the "©" symbol designating a calculated value: #11707v1 25E-10 Worksheet 1 — Operating Plan Section A - Historic Groundwater Production: Section A calculates an Adjusted Baseline that is the basis against which monthly In -Lieu Cyclic Treated Deliveries will be measured. The Adjusted Baseline should reflect the monthly pumping pattern Santa Ana would follow if it were not planning to certify in -lieu deliveries from Metropolitan. The Adjusted Baseline is based on historic groundwater production patterns; however, Santa Ana may adjust these patterns to reflect anticipated system or operational changes during the coming operating year. 6 Lines Al, A2, & A3 - FY Groundwater Production: Santa Ana inputs previous three years monthly groundwater production data beginning one-year prior to the end of the last full operating period. For example, for an agency preparing its FY 2019-20 operating plan, the three years prior would include FY's 2017-18, 2016-17, and 2015-16. Monthly groundwater production data includes actual pumped groundwater and imported in -lieu deliveries. P Line A4 - 3-Year Historical Baseline: Spreadsheet calculates Santa Ana's average monthly groundwater production from the past three years. iZwj Line A5 - Adjustments to Baseline: Santa Ana inputs anticipated increases and/or decreases in total monthly production due to factors such as new production wells coming online, wells taken out of service, and/or other justifiable alterations in production patterns. Q Line A6 - Adjusted Baseline: Spreadsheet calculates Santa Ana's Adjusted Baseline for the coming operating year, i.e., 3-Year Historical Baseline with Adjustments to Baseline (positive or negative). As indicated above, Lines Al, A2, A3, and A5 are user inputs to be provided by Santa Ana prior to the beginning of the operating year for review by Metropolitan. This review may require Santa Ana provide Metropolitan with records documenting historic well production and rationale for Adjustments of Baseline. Section B — Planned Annual Operating Plan: Section B is Santa Ana's projection of monthly imported water deliveries, groundwater production, and other local supplies that will be used to meet its retail demand. The Section functions as a planning tool for Santa Ana and Metropolitan. It also calculates projected In -Lieu Treated Deliveries eligible for certification as Cyclic Delivery based on projected groundwater production. Although only an initial estimate, once completed, Section B should remain static throughout the operating year and utilized as the baseline with which to evaluate the year's actual progress. 0 Line Bl - Adjusted Baseline: This line carries forward Santa Ana's Adjusted Baseline calculated in Line A6. F Line B2 - Monthly Production Capability: Santa Ana projects the well capability available for each month of the operating year. Available capability refers to the #11707vl 25E-11 operational status of facilities in place to extract groundwater for retail water use. For example, the total capacity of Santa Ana's well field might be 50 cfs, but four wells are out service due to factors such as mechanical problems or diminished water quality. As a result, only 38 cfs of the well field's 50 cfs capacity is actually available for production, and 38 cfs would be considered Santa Ana's Monthly Production Capability. Line B3 - Baseline: Spreadsheet calculates monthly Actual Baseline, i.e., the lesser of the Adjusted Baseline or Monthly Production Capability. In -lieu water certified by Santa Ana may not exceed its production capability for that month. Line B4 - Planned Groundwater Production: Santa Ana inputs amount of groundwater it plans to produce each month to meet retail demand. iQ Line B5 — All Other Local Sources: Santa Ana inputs quantities of water it expects to produce from all other local sources other than the groundwater basin to meet retail demand. These sources include recycled, recovered groundwater, local runoff, imported transfers, etc. tn- Line B6 - Planned Import: Santa Ana inputs amount of water it expects to purchase from Metropolitan to meet retail demand. Line B7 — Total Retail Demand: Spreadsheet calculates Santa Ana's entire retail demand, i.e., Planned Groundwater Production, plus All Other Local Sources, plus Planned Import. ® Line B8 — Estimated Monthly In -lieu Credit (Underproduction): Spreadsheet calculates planned monthly groundwater underproduction, i.e., Baseline less Planned Groundwater Production. If positive, indicates water being stored. If negative, indicates water being taken out of storage (overproduction). Section C — Actual -to -Date and Planned Operations: Initially completed with the identical information as Section B — Planned Annual Operating Plan, Section C calculates actual In -Lieu Treated Deliveries, updates projections shown in Section B with actual operational data, and is used to revise projected operations, as needed, based on actual operations to date. Monthly In - lieu Treated Delivery credit is applied to the volume difference between the Santa Ana's Baseline and actual Groundwater Production. Santa Ana is expected to update this form whenever In -Lieu Treated Deliveries are certified. Updates should include actual deliveries of groundwater, other local supplies and imported deliveries that have occurred during the operating period. Updates should also include any anticipated changes in projected groundwater production, local supply production, imported water deliveries, and retail demands as a result of actual operations to date. When certifying Monthly In -lieu Treated Deliveries Credit, please mark any box(es) above the month(s) where adjustments have been made to In anned operations in Lines (C4), (C5), or (C6). In addition, mark any box(es) below the Monthly In -Lieu Credit where Actuals to Date have been determined #11707vl 25E-12 P Line Cl - Adjusted Baseline: This line carries forward Santa Ana's Adjusted Baseline calculated in Line A6. '9� Line C2 - Actual Monthly Production Capability: Santa Ana specifies the actual well capability available for the month being certified and, as needed, updates projected well capability for the remainder of the operating period. Line C3 - Baseline: Spreadsheet calculates monthly Baseline, i.e., the lesser of the Adjusted Baseline or Monthly Production Capability. Line C4 - Groundwater Production: Santa Ana inputs amount of groundwater actually produced during the operating period and, as needed, updates projected groundwater production for the remainder of the operating period. Line C5 — All Other Local Sources: Santa Ana inputs local supplies actually produced during the operating period and, as needed, updates local supplies projected for the remainder of the operating period. i%fl Line C6 - Import: Santa Ana inputs imported water purchased from Metropolitan to meet retail demand during the operating period and, as needed, updates imported water projected for the remainder of the operating period. Q Line C7 — Total Retail Demand: Spreadsheet calculates Santa Ana's retail demand, i.e., Groundwater Production plus Other Local Sources plus Import. Line C8 - Monthly Underproduction: Spreadsheet calculates monthly groundwater underproduction, i.e., Baseline less Groundwater Production. If positive, indicates water being stored. If negative, indicates water being taken out of storage (overproduction). Line C9 - Cumulative Underproduction: Spreadsheet sums monthly underproduction through each month of the operating period beginning at the end of the operating period (June). Line C10 - Monthly In -lieu Credit: Spreadsheet calculates amount of monthly In -lieu Treated Deliveries to be certified limited by Monthly Production Capability and Imported water. Worksheet 2 - Monthly Certification for Delivery of In -Lieu Cyclic Water Worksheet 2 must be submitted by Santa Ana for each month that it wishes to certify In -Lieu Treated Deliveries. On each certification, Santa Ana must indicate their name, the identity of the retail agency delivering the water, if applicable, and the month in which the operation occurred. In addition, Santa Ana must sign and date each certification submitted to Metropolitan. #11707vl 25E-13 Santa Ana should use Worksheet 2 to certify In -Lieu Treated Deliveries. In addition, for billing and crediting purposes, Santa Ana should also certify the service connections through which the delivery was made and the amount of water to be certified as on each service connection. Individual lines on this form should be completed as follows: Line C3 - Baseline: Santa Ana inputs Baseline value shown in line C3 of Worksheet 1. rn- Line C4 - Groundwater Production: Santa Ana inputs value shown in C4 of Worksheet 1. Q Line C8 — Actual Underproduction: Spreadsheet calculates underproduction occurring in the month being certified. 47 Line C2 — Monthly Production Capability: Santa Ana inputs Production Capability shown in line C2 of Worksheet 1. Line C6 — Monthly Actual Imported Deliveries: Santa Ana inputs Monthly Actual Imported Deliveries shown in line CS of Worksheet 1. The sum of volumes certified by service connection shall be equal to the input for Monthly Actual Imported Deliveries on Line C6. #11707vl 25E-14