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Home My WebLink AboutMETROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, MUNICIPAL WATER DISTRICT OF ORANGE COUNTY AND ORANGE COUNTY WATER DISTRICT Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 CONJUNCTIVE USE PROGRAM TERMINATION AGREEMENT BETWEEN THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, ORANGE COUNTY WATER DISTRICT, THE CITY OF ANAHEIM, THE CITY OF SANTA ANA, AND THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY This Conjunctive Use Program Termination Agreement("Termination Agreement")is made as of June 30, 2025, by and between the METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA ("Metropolitan"), a public agency of the State of California, ORANGE COUNTY WATER DISTRICT ("OCWD"), a water district in the State of California and the basin manager for the Orange County Basin, THE CITY OF ANAHEIM ("Anaheim"), THE CITY OF SANTA ANA ("Santa Ana"), THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY ("MWDOC"), a municipal water district in the State of California (collectively, the"Parties"). RECITALS A. Metropolitan is a voluntary cooperative providing wholesale water services to its 26 member agencies, created under The Metropolitan Water District Act("MWD Act"). Wat. Code appen., §§ 109-25, 109-130. B. Metropolitan imports water from the California State Water Project("SWP") and the Colorado River and delivers those supplies to its member agencies, including Anaheim, Santa Ana, and MWDOC. C. Anaheim's, Santa Ana's, and MWDOC's service areas overlay the Orange County Groundwater Basin ("Basin"), a groundwater basin in Orange County. The Basin is managed by OCWD. Termination of Agreement No 49956 1 Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 D. MWDOC purchases water for groundwater replenishment of the Basin from Metropolitan. Anaheim and Santa Ana are pumpers in the Basin as well as Metropolitan member agencies. E. In 2000, Metropolitan applied for and received $45 million from the Department of Water Resources ("DWR") via Proposition 13 ("Prop 13"). F. On June 25, 2003, Metropolitan, OCWD, and MWDOC entered into Agreement No. 49956 Groundwater Storage Funding Agreement("Conjunctive Use Agreement"), which has been amended, and the last amendment is the Third Amendment to the Storage Funding Agreement, dated July 7, 2008. The Third Amendment to the Storage Funding Agreement added Anaheim and Santa Ana as signatories. G. From Prop 13, Metropolitan reimbursed MWDOC and OCWD for the construction of well facilities and the Talbert Seawater Intrusion Barrier in their service area. Metropolitan has complied with all of its obligations under its agreement with DWR pertaining to funding of the Conjunctive Use Agreement, and DWR has not sought the return of any such funds. OCWD and MWDOC, in turn,received certain Prop 13 and other Metropolitan funds, as described in Exhibit H to the Conjunctive Use Agreement, from Metropolitan to pay for construction of certain new facilities associated with Metropolitan's storage of water in the Orange County Groundwater Basin. H. As part of the new facilities constructed, the Conjunctive Use Agreement provided for the construction of eight extraction wells by OCWD for the benefit and future ownership of eight retail water agencies who produce groundwater from the Orange County Groundwater Basin ("Producers" or"Operating Parties"). The Producers/Operating Parties are listed in Exhibit H to the Conjunctive Use Agreement, with funding for the new extraction wells 2 Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 coming from Metropolitan via OCWD. Upon completion of the extraction wells,the Operating Parties would own and operate the extraction wells. OCWD and MWDOC entered separate agreements with each of the Operating Parties specifying the obligations of the Operating Parties in order to ensure compliance with the Conjunctive Use Agreement and Metropolitan's agreement with DWR. I. On April 8, 2025, Metropolitan's Board of Directors approved Item 7-15 on the Metropolitan Board Agenda, which gives authority to Metropolitan's General Manager to terminate the Conjunctive Use Agreement. Absent this Termination Agreement, the Conjunctive Use Agreement would not terminate until June of 2028. J. The balance of the Conjunctive Use Account is currently 0.0 acre-feet. Metropolitan has not delivered water to the Conjunctive Use Account and has not recovered water from the Conjunctive Use Account since July 2017. The Conjunctive Use Account has remained inactive. Accordingly, pursuant to the inactivity, the Parties wish to terminate the Conjunctive Use Agreement while clarifying what obligations of the Parties and the Operating Agencies, if any, survive the termination approved herein. COVENANTS In consideration of the above recitals, covenants, and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, IT IS AGREED: 1. Termination of Conjunctive Use Agreement Agreement No. 49956, the Conjunctive Use Agreement between Metropolitan, OCWD, Anaheim, Santa Ana, and MWDOC, is hereby terminated as of June 30, 2025. Notwithstanding the Termination Date agreed by the Parties in the Conjunctive Use Agreement, the Parties no 3 Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 longer wish to continue the Conjunctive Use Program and hereby terminate all obligations and responsibilities in relation thereto, with the exception of Paragraph 2 below. The Parties further agree that the ending balance in the Conjunctive Use Account is 0.0 acre feet of water, and such amount is a final accounting subject to future alteration. 2. Ownership of Funded Facilities Notwithstanding the early termination of the Conjunctive Use Agreement, the Operating Parties referenced in Exhibit H of the Conjunctive Use Agreement will continue to retain ownership of the extraction wells funded per the Conjunctive Use Agreement, and OCWD shall continue to own the facilities it constructed utilizing Metropolitan funds at the Talbert Seawater Intrusion Barrier. Additionally, the Operating Parties, Metropolitan, OCWD, and MWDOC shall have no further obligations under the Conjunctive Use Agreement upon the full execution of the Termination Agreement, and none shall be required to pay back Metropolitan for any of the funds received from Metropolitan per the Conjunctive Use Agreement. 3. Counterparts This Agreement may be executed in counterparts, and by each party on a separate counterpart, each of which, when executed and delivered, shall be an original and all of which together shall constitute one instrument, with the same force and effect as though all signatures appeared on a single document. 4 Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 4. Successors This Agreement shall bind and inure to the benefit of the Parties, and their respective successors and assigns. [Signatures on Following Page] 5 Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 IN WITNESS WHEREOF,the Parties hereto have caused this Agreement to be executed in duplicate as of the date and year listed at the beginning of the Agreement. Approved as to Form: City of Anaheim Signed by: Docu Signed by: By� L" By: O F�ssosi�s4a ��/ s .. Andrew Lee Du a ee General Counsel Public Utilities General Manager Date:2/19/2026 Date:2/20/2026 ATTEST: City of Santa Ana Signed by: Signed by: By:L'A1f1'2WaF1ff2C ` By:r (Affb ILIA'/, JennierE A varo unez City Clerk City Manager Date:4/23/2026 Date: 4/23/2026 APPROVED AS TO FORM RECOMMENDED FOR APPROVAL SONIA R. CARVALHO City Attorney Signed by: p� Signed by: By: 57303GSEEE9843 ... By fC 2 7 30 9439... Kyle Nellesen oc�o� o' oSas, P.E. Assistant City Attorney Acting Executive Director Public Works Agency Date:2/20/2026 Date: 4/23/2026 6 Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 Approved as to Form: Municipal Water District of Orange County Signed by: DocuSigned by: �bs L P. wu, f s _ �k V, (,u. �vVn, By. Joseph�yrne By Ha�� e a Torre General Counsel General Manager Date: 1/26/2026 Date: 1/27/2026 Approved as to Form: Orange County Water District DocuSigned by: Signed by: By. By:FtbL,- Lcwv tJeremy N. Jungreis n ennedy General Counsel General Manager Date: 2/11/2026 Date: 2/11/2026 Approved as to Form: The Metropolitan Water District of Southern California Marcia L. Scully Deven N. Upadhyay General Counsel General Manager Signed by: Signed by: By: By:r V, bVAAAhVI 1. C,bSL Patty uDMzapa lonTtoshi Senior Deputy General Counsel Manager, Water Resource Management Date: 4/24/2026 Date: 5/6/2026 7 Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA Office of the General Manager January 26, 2025 Mr. Harvey De La Torre Municipal Water District of Orange County 18700 Ward Street Fountain Valley, CA 92708 Dear Mr. Harvey De La Torre: Termination of Agreement No. 49956 Groundwater Storage Funding Agreement ("Conjunctive Use Agreement"), with Orange County Water District, City of Anaheim, City of Santa Ana, and the Municipal Water District of Orange County Enclosed for your signature are two originals of the subject agreement between The Metropolitan Water District of Southern California(Metropolitan), Orange County Water District, the City of Anaheim, the City of Santa Ana, and the Municipal Water District of Orange County. If the terms are acceptable,please sign and return the two originals to Metropolitan, in the care of Mr. Matt Hacker, for final execution. Upon execution by Metropolitan, Metropolitan will forward the executed original agreement to appropriate representatives. If you have any questions, please contact Mr. Matthew Hacker at(213) 217-6756 or via email at mhacker@mwdh2o.com. Very truly yours, Brandon J. Goshi Group Manager, Water Resources Management cc: Mr. Philip Bogdanoff- Anaheim Public Utilities Water Planning and Resource Manager bogdanoff@anaheim.net Mr. Craig Parker—Anaheim Public Utilities Assistant General Manager CParker@anaheim.net 700 N.Alameda Street, Los Angeles, California 90012•Mailing Address: Box 54153, Los Angeles,California 90054-0153•Telephone(213)217-6000 Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA Mr. Harvey De La Torre Page 2 January 26, 2025 Ms. Heidi Chou City of Santa Ana Principal Civil Engineer hchou@santa-ana.org Ms. Alondra Solis City of Santa Ana Water Conservation Specialist asolis5@santa-ana.org P. Quilizapa Senior Deputy General Counsel The Metropolitan Water District W. Teitz Resource Development Team Manager The Metropolitan Water District M. Propersi Operations Planning Team Manager The Metropolitan Water District M. Tang Finance and Administration The Metropolitan Water District Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 Return FULLY EXECUTE® o:ewaci) Copy to City Clerk, M-30 A-2{108-191-01 He�diChavCpL) APR 1 2U2fi CONJUNCTIVE USE PROGRAM TERMINATION AGREEMENT BETWEEN THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, ORANGE COUNTY WATER DISTRICT, THE CITY OF ANAHEIM, THE CITY OF SANTA ANA, AND THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY Coe y This Conjunctive Use Program Termination Agreement ("Termination Agreement") is made as of June 30, 2025, by and between the METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA ("Metropolitan"), a public agency of the State of California, ORANGE COUNTY WATER DISTRICT ("OCWD"), a water district in the State of California and the basin manager for the Orange County Basin, THE CITY OF ANAHEIM ("Anaheim"), THE CITY OF SANTA ANA ("Santa Ana"), THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY ("MWDOC"), a municipal water district in the State of California (collectively, the "Parties"). RECITALS A. Metropolitan is a voluntary cooperative providing wholesale water services to its 26 member agencies, created under The Metropolitan Water District Act("MWD Act"). Wat. Code appen., §§ 109-25, 109-130. B. Metropolitan imports water from the California State Water Project ("SWP") and the Colorado River and delivers those supplies to its member agencies, including Anaheim, Santa Ana, and MWDOC. C. Anaheim's, Santa Ana's, and MWDOC's service areas overlay the Orange County Groundwater Basin (`Basin"), a groundwater basin in Orange County. The Basin is managed by OCWD. Termination of Agreement No 49956 1 Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 D. MWDOC purchases water for groundwater replenishment of the Basin from Metropolitan. Anaheim and Santa Ana are pumpers in the Basin as well as Metropolitan member agencies, E. In 2000, Metropolitan applied for and received $45 million from the Department of Water Resources ("DWR") via Proposition 13 ("Prop 13"). F. On June 25, 2003, Metropolitan, OCWD, and MWDOC entered into Agreement No. 49956 Groundwater Storage Funding Agreement ("Conjunctive Use Agreement"), which has been amended, and the last amendment is the Third Amendment to the Storage Funding Agreement, dated July 7, 2008. The Third Amendment to the Storage Funding Agreement added Anaheim and Santa Ana as signatories. G. From Prop 13, Metropolitan reimbursed MWDOC and OCWD for the construction of well facilities and the Talbert Seawater Intrusion Barrier in their service area. Metropolitan has complied with all of its obligations under its agreement with DWR pertaining to fariding of the Conjunctive Use Agreement, and DWR has not sought the ret-arn of any such funds. OCWD and MWDOC, in turn, received certain Prop 13 and other Metropolitan funds, as described in Exhibit H to the Conjunctive Use Agreement, from Metropolitan to pay for construction of certain new facilities associated with Metropolitan's storage of water in the Orange County Groundwater Basin. H. As part of the new facilities constructed, the Conjunctive Use Agreement provided for the construction of eight extraction wells by OCWD for the benefit and future ownership of eight retail water agencies who produce groundwater from the Orange County Groundwater Basin ("Producers" or"Operating Parties"). The Producers/Operating Parties are listed in Exhibit H to the Conjunctive Use Agreement, with funding for the new extraction wells z Docusign Envelope ID:41}CE6E97-0672-4A66-881)1-E7C6CDC124F9 coming from Metropolitan via OCWD. Upon completion of the extraction wells, the Operating Parties would own and operate the extraction wells. OCWD and MWDOC entered separate agreements with each of the Operating Parties specifying the obligations of the Operating Parties in order to ensure compliance with the Conjunctive Use Agreement and Metropolitan's agreement with DWR. I. On April 8, 2025, Metropolitan's Board of Directors approved Item 7-15 on the Metropolitan Board Agenda, which gives authority to Metropolitan's General Manager to terminate the Conjunctive Use Agreement. Absent this Termination Agreement,the Conjunctive Use Agreement would not terminate until June of 2028. J. The balance of the Conjunctive Use Account is currently 0.0 acre-feet. Metropolitan has not delivered water to the Conjunctive Use Account and has not recovered water from the Conjunctive Use Account since July 2017. The Conjunctive Use Account has remained inactive. Accordingly, pursuant to the inactivity, the Parties wish to terminate the Conjunctive Use Agreement while clarifying what obligations of the Parties and the Operating Agencies, if any, survive the termination approved herein. COVENANTS In consideration of the above recitals, covenants, and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, IT IS AGREED: 1. Termination of Conjunctive Use A reement Agreement No. 49956, the Conjunctive Use Agreement between Metropolitan, OCWD, Anaheim, Santa Ana, and MWDOC, is hereby terminated as of June 30, 2025. Notwithstanding the Termination Date agreed by the Parties in the Conjunctive Use Agreement, the Parties no 3 Docusign Envelope ID:40CE6E97-0672-4A56-8801-E7C6CDC124F9 longer wish to continue the Conjunctive Use Program and hereby terminate all obligations and responsibilities in relation thereto, with the exception of Paragraph 2 below. The Parties further agree that the ending balance in the Conjunctive Use Account is 0.0 acre feet of water, and such amount is a final accounting subject to future alteration. 2. Ownership of Funded Facilities Notwithstanding the early termination of the Conjunctive Use Agreement, the Operating Parties referenced in Exhibit H of the Conjunctive Use Agreement will continue to retain ownership of the extraction wells funded per the Conjunctive Use Agreement, and OCWD shall continue to own the facilities it constructed utilizing Metropolitan funds at the Talbert Seawater Intrusion Barrier. Additionally, the Operating Parties, Metropolitan, OCWD, and MWDOC shall have no further obligations under the Conjunctive Use Agreement upon the full execution of the Termination Agreement, and none shall be required to pay back Metropolitan for any of the funds received from Metropolitan per the Conjunctive Use Agreement, 3. Counterparts This Agreement may be executed in counterparts, and by each party on a separate counterpart, each of which, when executed and delivered, shall be an original and all of which together shall constitute one instrument, with the same force and effect as though all signatures appeared on a single document. 4 Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDCl24F9 4. Successors This Agreement shall bind and inure to the benefit of the Parties, and their respective successors and assigns. [Signatures on Following Page] 5 Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed in duplicate as of the date and year listed at the beginning of the Agreement. Approved as to Form: City of Anaheim Signed by; fJocuSigned by: By: By: .k . Lu Andrew Lee 1,8kW1qff3468.. General Counsel Public Utilities General Manager Date: 2/19/2026 Date: 2/20/2026 ATTEST: City of Santa Ana gAN A v` By: Aet'... �j enni er Alvaro Nunez Ci ,J City Manager Date: Date: tLj O-Aw�c- APPROVED AS TO FORM RECOMMENDED FOR APPROVAL SONIA R. CARVALHO City Attorney Signed by, F By: By: Ky e e esen lbydoto Rosas, P.E. Assistant City Attorney Acting Executive Director Public Works Agency Date: 2/20/2026 Date: r 6 Docusign Envelope ID:40CE6E97-0672-4A66-8801-E7C6CDC124F9 Approved as to Form: Municipal Water District of Orange County 5stf� igned by; ,, DoouSigned by: By: P. "�a,IVirk) f s�- By: f� ot, (A 1W- Josep yrne 'La Torre General Counsel General Manager Date: 1/26/2026 Date: 1/2 712 0 2 6 Approved as to Form: Orange County Water District DQUUsigned by: Signed by: By: By: �61A Jeremy N. Jungreis John en ney General Counsel General Manager Date:2/11/2026 Date:2/1112026 Approved as to Form: The Metropolitan Water District of Southern California Marcia L. Scully Deven N. Upadhyay General Counsel General Manager By: By: Patty Quilizapa Brandon J. Goshi Senior Deputy General Counsel Manager, Water Resource Management Date: Date: 7