HomeMy WebLinkAboutORANGE COUNTY WATER DISTRICT -2017INSURANCE NOT ON FILE A-2017-183
WORK MAY NOT PROCEED
CLERK OF COUNCIL
DATE: LLOZ Z Z oRtl(�o
() ; r "" '� C2) AGREEMENT BETWEEN ORANGE COUNTY WATER, DISTRICT AND
0-, k f Paw. CITY OF SANTA ANA REGARDING
DISTRIBUTION AND SALE OF GREEN ACRES PROJECT WATER.
THIS AGREEMENT ("Agreement"), is made and entered into as of July 1, 2017, by and
between the ORANGE COUNTY WATER DISTRICT, a special governmental district
(hereinafter "OCWD") and the CYI'Y OF SANTA ANA, a charter city and municipal corporation
organized and existing under the laws of the State of California (hereinafter "RETAILER").
RECITALS
A. OCWD was created by the OCWD Act, Ch. 924, Stats. 1933, as amended, for the
purpose of protecting and managing the Orange County groundwater basin. The OCWD Act
empowers OCWD to manage the groundwater basin, to provide for the conservation of the
quantity and quality of water in the groundwater basin, to conserve and reclaim water within or
outside of the boundaries of OCWD, to sell or otherwise put to beneficial use any water or
reclaimed wastewater in order to conserve groundwater resources, and to distribute water to
persons in exchange for ceasing or reducing the extraction of groundwater from the groundwater
basin.
B. OCWD purchases imported water from the Metropolitan Water District of
Southern California (hereinafter "MWD"), through its member public agencies, for spreading
and replenishment purposes, and obtains wastewater from the Orange County Sanitation District
(hereinafter "OCSD") for renovation -reclamation, spreading and replenishment purposes, and
groundwater injection.
C. A portion of the reclaimed wastewater currently produced by OCWD is suitable
for a number of non -potable uses, including but not limited to, landscape irrigation and industrial
uses.
D, RETAILER is a municipal corporation and charter city organized and existing
pursuant to the laws of the State of California. RETAILER is the exclusive retail water purveyor,
including water for residential, industrial, commercial, public agency, agricultural and other uses,
within RETAILER's boundaries. RETAILER currently distributes potable water in part
purchased from the MWD and in part produced from groundwater within its boundaries. The
corporate and water service boundaries of RETAILER arc within the jurisdictional boundaries of
OCWD.
E. Landscape irrigation and industrial water users within the jurisdictional and
service boundaries of RETAILER currently either purchase potable or non -potable water from
RETAILER for their use, or produce water from the groundwater basin by means of their own
facilities for their use, which private groundwater production is under the jurisdiction and control
of OCWD.
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F. In 1991, OCWD began operating a water treatment facility, transmission mains
and distribution pipeline system (including mainlines and service lines) and, in some cases, on -
site plumbing, known as the "Green Acres Project", for the purpose of reclaiming wastewater
received from OCSD (hereinafter, "Project Water") and distributing the Project Water for
appropriate landscape irrigation and industrial purposes in order to supplement and conserve the
supply of potable groundwater available to the residents and water users within the boundaries of
OCWD. OCWD entered into agreements with retail water providers within OCWD's boundaries,
including RETAILER, for the distribution and sale of Project Water within the respective
boundaries of RETAILER and the other retail water agencies contracting with OCWD for
Project Water. OCWD has operated the Green Acres Project continually since 1991; and during
that period, RETAILER has continually purchased Project Water for resale to certain customers
for landscape irrigation and/or industrial uses. OCWD and RETAILER desire to continue use of
the Green Acres Project and its associate Project Water. A plat map depicting the location of the
facilities comprising the Green Acres Project which OCWD currently operates and maintains is
set forth as Exhibit A hereto.
G. OCWD and RETAILER mutually acknowledge that the use of reclaimed water
for landscape irrigation is of mutual benefit to OCWD and RETAILER in fulfilling their joint
responsibilities for the conservation of water resources in accordance with Sections 13550 and
13551 of the California Water Code.
1I. OCWD and RETAILER mutually desire to terminate their existing Project Water
agreement and enter into a new agreement to set forth the terms and conditions wider which
OCWD will continue to sell Project Water to RETAILER for resale by RETAILER to
appropriate landscape irrigation and industrial water users within the service boundaries of
RETAILER, and under which RETAILER will continue to purchase Project Water from OCWD
for such resale purposes.
NOW, THEREFORE, in consideration of the facts recited above and the terms,
covenants and conditions herein contained, the parties hereto agree as follows:
SECTION ONE: TERMINATION OF PREVIOUS AGREEMENT
1.1 OCWD and RETAILER mutually agree that the written agreement entered into
between OCWD and RETAILER, entitled "AGREEMENT BETWEEN ORANGE COUNTY
WATER DISTRICT AND CITY OF SANTA ANA REGARDING DISTRIBUTION AND
SALE OF GREEN ACRES PROJECT WATER" and dated September 21, 1988, relating to the
construction of the Project Facilities and the sale of Project Water by OCWD to RETAILER for
resale to RETAILER's Project Customers, is hereby terminated as of the effective date of this
Agreement and superseded by this Agreement.
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SECTION TWO: FACILITIES FOR DELIVERY AND DISTRIBUTION OF PROJECT
WATER
2,1 The parties acknowledge that OCWD has constructed, operates, owns, and
maintains, the Careen Acres Project, and all facilities to produce, transport and distribute Project
Water for the herein specified purposes (hereinafter, the "Project Facilities"). A plat map
depicting that portion of the Project Facilities which OCWD constructed, operates and maintains
within the boundaries of RETAILER is attached hereto as Exhibit B.
2.2 The constructed Project Facilities include a distribution pipeline system from the
site of the Green Acres Project: Water Treatment Facility, located at 18700 Ward Street, Fountain
Valley, California, to the point of connection to each of the proposed Project Water customers
within the boundaries of RETAILER (hereinafter, "Project Customers"), for the purpose of
distributing Project Water to RETAILER at the points of connection of the Project Customers for
purchase by RETAILER and resale to the Project Customers. The names and anticipated annual
Project Water demands of each existing and currently allowed new Project Customer are set
forth in Exhibit C.
2.3 The parties acknowledge that the Project Facilities are owned by OCWD, and
OCWD shall perform maintenance, emergency response, repair and replacement of the Project
Facilities located within the boundaries of RETAILER. RETAILER may perform, on behalf of
OCWD, maintenance, emergency response, repair and replacement of the Project Facilities
located within the boundaries of RETAILER, pursuant to paragraph 5.1 herein below and
arranged in writing prior to any such activity. In this regard:
2.3.1 The parties agree to restore, or cause Project Customer to restore, roads,
streets, alleys, avenues„ highways„ drainage facilities, or any other public
way or property used for construction, operations, or maintenance of the
Project Facilities within RETAILER's boundaries to at least the same
condition existing prior to construction, operation or maintenance of the
Project Facilities, to the reasonable satisfaction of RETAILER and
OCWD.
2.3.2 The parties agree to provide, or cause Project Customer to provide,
adequate safeguards to afford security to life and property during
construction, operation, and maintenance of the Project Facilities, with due
regard being given to other existing uses of public roads, streets, alleys,
avenues, highways, drainage facilities, public ways and property within
the boundaries of RETAILER.
2.3.3 The parties agree to use, or cause Project Customer to use, its best efforts
to minimize noise, dust, pollution and problems relating to police and fire
protection within the boundaries of RETAILER throughout construction,
operation and maintenance of the Project Facilities within RETAILER's
boundaries.
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2.3.4 The parties understand and agree that OCWD's rights to construct,
maintain, operate„ inspect, repair and replace the Project Facilities within
the lands and rights -of -way of RETAILER do not constitute vested
property rights and are expressly subject to and governed solely by this
Agreement.
2.4 The parties acknowledge that RETAILER has, at no cost to OCWD, provided
metering devices meeting RETAILER's specifications, and that these metering devices are
owned, operated and maintained by RETAILER for the purpose of measuring the quantity of
Project Water purchased by RETAILER and resold by RETAILER to each Project Customer, In
the event that OCWD and RETAILER determine to expand the Green Acres Project to serve one
or more new Project Customers, RETAILER shall provide a metering device for each new
Project Customer, and shall own, operate and maintain it at no cost to OCWD. RETAILER shall
be responsible for ensuring the accuracy of all metering devices used to measure the quantity of
Project Water delivered to each existing or new Project Customer. Any costs incurred in
modifying the size of existing RETAILER meters shall be the responsibility of RETAILER;
provided, however, that RETAILER has the discretion to delegate that duty to a Project
Customer, so long as RETAILER remains ultimately responsible to OCWD for the accuracy of
the metering device. The quantity of Project Water measured by the meters to be owned,
operated and maintained by RETAILER shall be the sole basis for determining the quantity of
Project Water delivered to Project Customer under Section Three of this Agreement. In the event
that a meter measuring the quantity of Project Water delivered by RETAILER for resale to a
Project Customer indicates a lesser quantity than OCWD's meter measuring the quantity of
Project Water delivered to RETAILER for resale to a Project Customer, OCWD shall be
responsible for the cost of such difference, and RETAILER shall not be liable therefor. In the
event RETAILER has a separate metering device serving exclusively non -potable uses on the
premises of a Project Customer, OCWD may sell Project Water to RETAILER by connecting the
Project Facilities distribution pipeline system directly to the separate non -potable meter so long
as the standards and requirements of RETAILER and any other governmental agency having
jurisdiction over the quality of Project Water are satisfied.
2.5 RETAILER shall implement and maintain measures to avoid the risk that Project
Water may enter into RETAILER's potable water distribution system at no cost to OCWD. The
parties acknowledge that the non -potable Project Water system has been marked with separate
marking in accordance with standards and regulations in existence when the Project Water
system was constructed, and that any extensions of the Project Water system shall be separately
marked as required by law.
2.6 The Project Water distribution pipeline system has been constructed by OCWD
with sufficient capacity to allow RETAILER to serve the landscape irrigation and industrial
water users participating as Project Customers as shown in Exhibit C. OCWD shall sell to
RETAILER, and RETAILER shall purchase from OCWD, sufficient quantities of Project Water
for RETAILER to sell to those Project Customers. OCWD and RETAILER mutually understand
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and agree that additional non -potable water users within the boundaries of RETAILER may at
some future time be served with Project Water and become Project Customers without the
necessity of amending this Agreement, provided that a water user within the service boundaries
of RETAILER shall become a new Project Customer only with the approval of both OCWD and
RETAILER, and provided further, that OCWD shall have the sole discretion to determine
whether to expand the Project Facilities or the production and distribution capacity of the Project
Facilities to meet any future demand for Project Water that may be generated within the
boundaries of RETAILER. All future water users within the service boundaries of RETAILER
who become Project Customers shall be subject to the Project Rules as defined in paragraph 6.2
and adopted by RETAILER pursuant to paragraph 6.3 herein below.
2.7 The addition of infrastructure to serve future Project Customers shall be approved
by OCWD, RETAILER, and pertinent regulatory agencies. Additional infrastructure may
include service laterals, mainline pipelines, pump stations, vaults, meters, and other components.
Unless authorized in writing by OCWD, the permitting, design, construction, inspection,
specialty inspection and materials testing, start-up, on -going regulatory compliance, and those
costs described in Paragraph 2.3 shall be performed at no expense to OCWD. The OCWD staff
time for review of the design, construction inspection of the additional infrastructure, and
assistance in regulatory permitting shall be included in the annual Project Water costs set forth in
paragraph 3.2 as components of the Project Water rate charged by OCWD to RETAILER, unless
otherwise stipulated in writing by OCWD. OCWD shall cause the Project Facilities within the
boundaries of RETAILER. to be constructed in accordance with the construction standards of
RETAILER. Addition of infrastructure located within public right-of-way and upstream of the
RETAILER meters described in paragraph 2.4 shall become the property of OCWD after written
construction acceptance by OCWD, RETAILER, and any other pertinent agency. Additional
infrastructure within private property shall not be owned by OCWD, unless authorized in writing
by OCWD and pursuant to an easement granted from the land owner to RETAILER and/or
OCWD. Unless authorized in writing by OCWD, new RETAILER meters shall be located in the
public right-of-way. The regulatory permitting and/or approvals of any future Project Customer
site shall be obtained prior to delivery of Project Water to that site. RETAILER shall lead the
effort to obtain these permits and/or approvals and OCWD shall assist and coordinate with the
RETAILER.
2.8 Major expansions to the Project Water distribution system may be performed
under a different ownersbip-maintenance model than described in Section 2 if mutually approved
and defined in writing by OCWD and RETAILER.
SECTION THREE: PURCHASE AND SALE OF PROJECT WATER
3.1 RETAILER shall have the exclusive right to purchase Project Water from
OCWD, at the point of connection to each Project Customer, and to resell Project Water to the
Project Customers shown in Exhibit C, and such other landscape irrigation and industrial water
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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
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Project Customers during the billing period, after deducting therefrom the actual costs incurred
by RETAILER in maintaining, repairing and replacing the Project Water distribution system
within RETAILER's boundaries as set forth in paragraph 5.1 herein below.
SECTION FOUR: PROJECT WATER QUALITY REGULATIONS
4.1 OCWD shall deliver and sell to RETAILER pursuant to this Agreement Project
Water that conforms to all current and future requirements established by the California Regional
Water Quality Control Board -- Santa Ana Region, California State Water Resources Control
:Board. Division of Drinking Water, County of Orange Health Care Agency, and all other federal,
state and local agencies having jurisdiction to fix minimum standards. The anticipated quality of
Project Water is shown on Exhibit E attached hereto and incorporated herein, and this Exhibit E
shall subsequently be revised to conform to any future regulatory requirements; provided
however, that OCWD shall not have obligation to modify the quality of Project Water to meet
the needs of any particular Project Customer. OCWD shall revise Exhibit E if and when OCWD
modifies the tertiary treatment technology, disinfection process, and/or introduces OCSD Plant
#2 effluent to the OAP treatment process, and provide written notice of such revised Exhibit E to
RETAILER. The parties acknowledge that Exhibit E can be revised by OCWD without
amending this Agreement after such revision's discussion at the Operating Group. OCWD shall
strive to meet or exceed the minimum criteria stated in Exhibit E.
44.2 During the term of this Agreement, OCWD shall pay all costs imposed by any
and all governmental agencies having jurisdiction over the quality or use of Project Water for the
issuance of any permits, licenses or approvals required for the production treatment, distribution
or sale of Project Water. If incurred by OCWD, the costs described in this paragraph shall be
included in the annual Project costs set forth in paragraph. 3.2 as components of the Project
Water rate charged by OCWD to RETAILER.
4.3 OCWD shall inform RETAILER promptly after becoming aware of any proposed
or actual modifications by any agency having jurisdiction over the quality of Project Water to
any requirements governing the minimum standards of quality for or use of Project Water, or of
any changes in the legally permissible uses which might affect the use of the Project Water sold
by OCWD to RETAILER for resale by RETAILER to Project Customers, and OCWD shall bear
all costs of conforming to any such future requirements. If incurred by OCWD, the costs
described in this paragraph shall be included in the annual Project costs set forth in paragraph 3.2
as components of the Project Water rate charged by OCWD to RETAILER.
4.4 RETAILER shall perform Project Customer inspection and testing in accordance
with the Project Rules defined in paragraph 6.2, prepared by OCWD and transmitted to
RETAILER who may make additions, as amended from time to time by OCWD, and provide a
written record of such activities to OCWD within sixty (60) days of their performance. Expenses
for these activities shall not be reimbursed by OCWD.
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SECTION FIVE: OPERATING OBLIGATIONS OF THE PARTIES
5.1 During the term of this Agreement, OCWD shall manage, operate and maintain
the Project Facilities in an efficient manner and in accordance with the highest standards of skill
and workmanship; provided, however, that OCWD tnay contract with RETAILER for the
performance by RETAILER of the actual maintenance, repair and replacement responsibilities
with respect to those Project Facilities located within the service boundaries of RETAILER.
RETAILER recognizes the special quality considerations relating to Project Water, and
RETAILER shall perform its maintenance, repair and replacement responsibilities in an efficient
manner and in accordance with the highest standards of skill and workmanship. OCWD retains
the right to make repairs to Project Facilities within the service boundaries of RETAILER.
RETAILER shall receive as a credit against all monies due OCWD, pursuant to paragraph 3.2
herein above for the sale of Project Water, the cost of such maintenance, repair and replacement
activities actually undertaken by or on behalf of RETAILER, which costs shall include the actual
labor, material and equipment costs, plus overhead costs incurred by RETAILER and necessary
for such maintenance, repair and replacement activities.
5.2 Notwithstanding the provisions of paragraph 5.1, the operating responsibility of
OCWD with respect to the Project Facilities shall include the maintenance of quality, quantity
and pressure of the Project Water, and compliance with all regulatory requirements and
conditions applicable to the distribution and sale of Project Water, to the point of connection to
each Project Customer.
5.3 RETAILER shall, at no cost to OCWD, assume ownership, service, maintenance
and reading of the Project Water meter and valve set and meter box/vault for each Project
Customer in the same manner that RETAILER would for a customer service meter attached to its
potable water system. RETAILER further shall, at no cost to OCWD, be responsible for
customer service functions relating to all Project. Customers, including but not limited to billing
and collection of payments from Project Customers for the Project Water, record keeping, and
notification to OCWD of the quantity of Project Water delivered through each Project
Customer's meter during each meter reading period.
5.4 OCWD shall have the right to review the books, records and accounts maintained
by RETAILER relating to the Project water and Project Customers during normal business
hours, upon forty-eight (48) hours prior written notice to RETAILER.
5.5 OCWD shall operate the Project Facilities in such a manner that Project Water
shall be delivered to the point of connection to each. Project Customer on a continuous basis at a
pressure of not less than fifty (50) pounds per square inch. RETAILER shall assist OCWD in
achieving this pressure criterion by staggering Project Customer demand timeframes as needed.
OCWD shall strive to have a pressure greater than one hundred (100) pounds per square inch
entering the Project Facilities from the Water Treatment Facility. If OCWD's analysis of future
Project Customer sites indicates this pressure criteria cannot be met by the existing Project
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Facilities, OCWD shall declare by written notice to RETAILER that this standard of service will
not apply to these future Project Customers.
5.6 Except as provided in paragraph 9.6 below, in the event that, at any time during
the term of this Agreement, OCWD for any reason cannot or chooses not to produce Project
Water from its Green Acres Project Water Treatment Facility described in paragraphs 2.1 and 2.2
above, OCWD shall provide through the Project Facilities, or otherwise, at a cost equal to the
cost of Project Water, sufficient water of a quality at least equal to the quality of Project Water to
meet the landscape irrigation and industrial water needs of all of the Project Customers. OCWD,
however, shall have no such obligation in the event that Project Water cannot be delivered to
Project Customers due to damage to, breaks, or other disruptions in the distribution facilities
transporting Project Water to Project Customers, including maintenance and additions to Project
Facilities. OCWD shall strive to restore Project Water delivery within 72 hours of disruptions.
With respect to non -emergency maintenance, repair, and construction work, OCWD shall
coordinate such interruptions with RETAILER at least thirty (30) days in advance.
5.7 If the State of California proclaims a drought "State of Emergency" and restricts
the use of ,potable water supplies, RETAILER will attempt to reduce the use of recycled water
consistent with the RETAILER's conservation standards mandated by the State. Notwithstanding
the RETAILER's existing regulations, RETAILER'S governing body shall consider enacting
permanent mandatory water conservation requirements for recycled water use and any additional
restrictions during periods of water supply shortages.
SECTION SIX: PROJECT WATER RULES AND REGULATIONS
6.1 All Project Water produced by OCWD for delivery and sale to RETAILER shall
be in accordance with the terms and conditions of the discharge requirements and primary user
permit for the Project Water issued to OCWD by the California Regional Water Quality Control
Board — Santa Ana Region. OCWD has obtained and shall maintain a blanket primary user
permit for the production, distribution and sale of Project Water, and shall at all times maintain
and comply with all present and future provisions thereof and all renewals or subsequent such
permits.
6.2 The parties acknowledge that OCWD has promulgated, and the parties agree that
OCWD and RETAILER shall enforce rules and regulations regarding the distribution, delivery
and sale of Project Water to RETAILER, and governing the use of Project Water resold by
RETAILER to Project Customers ("Project Rules"}. OCWD shall maintain approvals from all
federal, state, and local agencies having jurisdiction over the production, quality and use of
Project Water, including, but not limited to, the California Regional Water Quality Control
Board — Santa Ana Region, California State Water Resources Control Board Division of
Drinking Water, and County of Orange health Care Agency, that such Project Rules comply
with the regulations, requirements and orders of such regulatory agencies.
M
6.3 The parties acknowledge that OCWD 1w heretofore prepared and transmitted to
RETAILER the 'Project Rules, and that RETAILER has itself adopted the Project Rules and
incorporated them into RETAILER's promulgated rules and regulations governing the
distribution, delivery and sale of water within the service boundaries of RETAILER. Promptly
upon adoption of RE' MLER's revised promulgated rules and regulations, RETAILER shall
transmit to OCWD RETAILER's adopted Project Rules. Should OCWD choose either to make
reasonable amendments or modifications to the Project Rules not contrary to this Agreement, or
be required by any governmental agency exercising jurisdiction over the distribution, sale or use
of the Project Water to modify or amend the Project Rules, OCWD shall promptly furnish such
modifications or amendments to RETAILER; and RETAILER, after being provided a ninety
(90) day period in which to review, comment upon, and/or meet and confer with OCWD
regarding such proposed modifications or amendments, shall incorporate such proposed
modifications or amendments into RETAILER's adopted rules and regulations. Project Rules
may be revised by OCWD without amendment to this Agreement. The parties acknowledge that
OCWD and RETAILER have participated in a group of Orange County agencies to standardize
procedures, inspection, testing, and submission requirements for applications seeking approval
from regulatory authorities for new Project Customer sites and the ongoing inspection and
testing of existing sites. The parties further acknowledge that upon the finalization of the Orange
County standardized practices, the Project Rules will be amended to incorporate the standardized
practices, which finalization is expected in 2017, RETAILER shall ensure that each Project
Customer has a copy of the Project Rules and that the Project Customer adheres to the Project
Rules,
6.4 RETAILER shall include in its promulgated rules and regulations provisions
requiring that any current or future Project Customer permit representatives of OCWD and
RETAILER to enter the premises of the Project Customer at all reasonable times for the purpose
of monitoring, inspecting, analyzing and observing the Project Customer's on -site Project Water
facilities and the utilization by the Project Customer of Project Water.
6.5 In connection with RETAILER's adoption of modifications or amendments to the
Project Rules as part of its amended rides and regulations, and at the request of RETAILER,
OCWD shall cooperate with and assist RETAILER in obtaining from the State of California
Water Resources Control. Board any necessary certifications, findings or orders authorized under
Sections 13550 and 13551 of the California Code to require the use of Project Water for non -
potable uses within the service boundaries of RETAILER.
6.6 The parties understand and agree that Project Water delivered and sold by OCWD
to RETAILER pursuant to the terms of this Agreement has limited uses, and OCWD shall
deliver and sell to RETAILER Project Water only for those uses and purposes which are legally
permissible under the laws of the State of California and the rules, regulations and directions of
the appropriate federal, state and local regulatory agencies exercising jurisdiction over the
quality and use of Project Water. In this regard, OCWD and RETAILER shall cooperatively
enforce Project Rules limiting the use of Project Water to legally permissible landscape irrigation
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and industrial applications, and shall monitor the use of Project Water by Project Customers to
safeguard against any misuse or improper application of Project Water by Project Customers.
SECTION SEVEN: INDEMNITY AND INSURANCE
7.1 OCWD shall hold RETAILER. harmless from and against and shall indemnify
RETAILER from any liability, loss, costs, expenses or damages however by reason of any injury
(whether to body, property, or personal or business character or reputation) sustained by or to
any person or property by reason of any act, neglect, default, or omission of OCWD or any of its
agents, employees, or representatives, or caused by reason of the design, construction, operation
or maintenance of the Project Facilities, or the distribution and sale to RETAILER for resale
purposes herein of Project Water that does not meet the quality standards set forth in Title 22 of
the California Administrative Code; provided, however, that OCWD shall not be responsible for
the negligent operation, maintenance or repair of the Project Facilities within RETAILER'S
service boundaries by RETAILER, the negligent operation, maintenance or repair by
RETAILER, any Project Customer of Project Water distribution and storage facilities located on
the lands of any Project Customer, and/or the misuse or misapplication of the Project Water on
the Project Customer's side of the Project Water meter by any person, including RETAILER or
any Project Customer. If RETAILER is sued in any court for damages by reason of any of the
acts for which OCWD is required to indemnify RETAILER in this paragraph 7.1, including but
not by way of limitation, damages arising out of a products liability claim, OCWD shall. defend
said action (or cause same to be defended) at its own expense and shall pay and discharge any
and all amounts of judgement that may be rendered in any such action. If OCWD fails or
neglects to so defend in said action, RETAILER may defend the same and any expenses,
including reasonable attorney's fees, which it may pay or incur in defending said action and the
amount of any judgement which it may be required to pay shall be promptly reimbursed upon
demand. Nothing herein is intended to nor shall it relieve RETAILER or any Project Customer
from liability for its own willful acts or active negligence.
7.2 OCWD shall cause RETAILER to be named as an additional insured on OCWD's
general liability policy of insurance with respect to the sale and distribution to RETAILER of
Project Water within the service boundaries of RETAILER, and OCWD shall provide
RETAILER. with certificates of insurance and endorsements evidencing such insurance
coverage.
7.3 OCWD shall not commence nor permit any contractor or subcontractor to
commence work or construction of any of the Project Facilities that are located within the service
boundaries of RETAILER until OCWD has obtained, or has caused its contractors to obtain,
comprehensive general liability insurance providing coverage for bodily injury, personal injury
and property damage, and which shall include as additional insureds RETAILER, its City
Council, Board Members, boards and commissions, officers, agents, vendors, and employees, but
only while acting in their capacity as such and only as respects operations of the original named
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insured, its subcontractors, agents, officers and employees in the performance of the construction
contract. OCWD shall furnish RETAILER with certificates of insurance and endorsements
showing insurance coverage as described above. RETAILER shall incur no expense in
connection with obtaining and maintaining any insurance required tinder paragraph 7.2 and 7.3.
SECTION EIGHT: DISPUTES
8.1 In the event of any dispute arising under this Agreement, the parties hereto agree
to utilize the arbitration procedure set forth in ttus Section Eight as the sole and exclusive means
of resolving any such dispute.
8.2 Arbitration shall be initiated by any party hereto serving upon any other party a
written demand for arbitration, which demand shall describe with specificity the nature of the
dispute. Except as specified herein, the arbitration shall be conducted pursuant to the provisions
of California Code of Civil Procedure, Section 1280, et seq. The parties hereto agree that there
shall be a single neutral arbitrator who shall be a civil engineer knowledgeable in water facilities
operation and reclaimed wastewater, who shall be selected in the following manner:
8.2.1 The demand for arbitration shall include a list of the names of five (5) persons
acceptable to the demanding party for appointment as arbitrator. The responding
party shall determine if any of the names submitted are acceptable, and, if so, shall
inform the other party within ten (10) days of actual receipt of the arbitration
demand, and such person will be designated as arbitrator;
8.2.2 In the event that none of the names submitted by the demanding party is acceptable
to the responding party, or if for any reason the arbitrator selected is unable to serve,
the responding party shall submit to the demanding party a list of the names of five
(5) persons acceptable to the responding party for the appointment as arbitrator. The
demanding party shall in turn have ten (10) days from actual receipt of the list in
which to determine if one such person is acceptable;
8.2.3 If the parties are unable mutually to agree upon a neutral arbitrator as described
above, the matter of the selection of an arbitrator, qualified as above, shall be
submitted to the Orange County Superior Court pursuant to Code of Civil Procedure
Section 1281.6. Upon selection of an arbitrator, the arbitration shall be conducted
consistent with the provisions of Code of Civil Procedure Section 1280, et seq., as
are deemed practicable by the arbitrator, considering the nature of the dispute.
8.3 The costs of arbitration, including but not limited to reasonable attorneys' fees,
shall not be recoverable by the party prevailing in the arbitration, including the court costs and
reasonable attorneys' fees incurred if an arbitration conducted hereunder is appealed to a court
pursuant to the procedures set forth in Code of Civil Procedure Section 1280, et seq. This
provision shall not relieve any party of the duty to indemnity, defend, and hold harrnless the
other party under this Agreement,
12 of 20
SECTION NINE: MISCELLANEOUS PROVISIONS
9.1 Notices: All notices, payments, transmittals of documentation and other writings
required or permitted to be delivered or transmitted to any of the parties under this Agreement
shall be personally served or deposited in a United States mail depository, first class postage
prepaid, and addressed as follows:
If to OCWIi: Orange County Water District
18700 Ward Street
P.O. Box 8300
Fountain Valley, California 92728
Attn: General Manager
If 10 RETAILER: City of Santa Ana.
20 Civic Center Plaza
P.O. Box 1988
Santa Ana, California 92701
Attn: Clerk of the Council
With a courtesy copy to:
Director. of Public Works
(same address as above)
or such other address or person as OCWD or RETAILER shall direct in writing. Service of any
instrument or writing by mail shall be deemed complete forty-eight (48) hours after deposit in a
United States mail depository.
9.2 Term and Amendment: The term of this Agreement shall be for thirty (30) years
from the date hereof. Either party shall have the right to terminate this Agreement by written
notice to the other at least three (3) years prior to the termination date. The parties must mutually
agree in writing to extend the term of this Agreement. This Agreement may only be amended or
modified by mutual agreement in writing of OCWD and RETAILER.
9.3 Limitation on Sales by OCWD: OCWD acknowledges and agrees that, except as
provided herein or with the prior written consent of RETAILER, OCWD is not now and will not
in the future become a wholesale or retail seller of Project Water within the service boundaries of
RETAILER without RETAILER's written consent, and OCWD further agrees that it will not use
or contract with any entity other than RETAILER for the purpose of selling and distributing
Project Water within the service boundaries of RETAILER.
9.4 Basin Limitations: OCWD and RETAILER mutually understand and agree that
any and all Project Water delivered and sold by OCWD hereunder shall not constitute either
"supplemental sources" or "groundwater supplies" for the purpose of the annual establishment of
13 of 20
basin groundwater production requirements and limitations by OCWD pursuant to Section 31.5
of the OCWD Act. Project Water is hereby established as a separate class of water for the
purposes of Section 31.5 of the OCWD Act.
9.6 Conditions Subsequent: The performance of this Agreement is conditioned upon
OCWD's continued ability feasibly to produce and distribute Project Water for sale to
RETAILER and resale by RETAILER to Project Customers in a cost-effective manner.
Subsequent to the date of this Agreement, should OCWD determine in its sole discretion that
unanticipated increases in the cost of producing or distributing Project Water or new or modified
regulatory requirements governing the production, distribution, quality or use of Project Water
render the Green Acres Project economically unfeasible, OCWD may cease production and
distribution of Project Water upon ninety (90) days written notice to RETAILER. In the event
that OCWD ceases the production and distribution of Project Water pursuant to this paragraph
M, this Agreement shall terminate and OCWD shall incur no liability to RETAILER or any
Project Customer by reason of the termination of this Agreement or the termination of
production and delivery of Project Water.
93 No Duplication of Services IrugWgd or seated: OCWD and RETAILER
mutually understand and agree that the construction and operation of the Project Facilities and
the distribution and sale of Project Water by OCWD to RETAILER for sale by RETAILER to
Project Customers pursuant to this Agreement do not constitute either a duplication of
RETAILER's retail water service or a taking of any property of RETAILER within the meaning
of Section 1501, et seq„ of the California Public Utilities Code, RETAILER shall have no right
to institute any action against OCWD pursuant to Sections 1503, 1504 or 1505.5 of the Public
Utilities Code by reason of the construction and operation of the Project Facilities and the
distribution and sale of Project Water by OCWD to RETAILER in conformance with this
Agreement.
9.8 Warranty: OCWD represents and warrants that under the OCWD Act, OCWD,
without the consent of any other public agency water purveyor, may enter into this Agreement to
deliver and sell Project Water to RETAILER for resale by RETAILER to Project Customers or
lands within the service boundaries of RETAILER.
9.9 onstruction. This Agreement shall be construed according to its plain meaning
and as if prepared by all parties hereto. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
9.10 IntegraAM: The parties herein have set forth the whole of their agreement, and the
performance of this Agreement constitutes the entire consideration intended herein.
9.11 ucces o s: This Agreement and all of the provisions herein shall be binding upon
and inure to the benefit of OCWD and RETAILER, and their respective successors and assigns.
14 of 20
WHEREFORE, the parties herein have executed this Agreement as of the date set forth
above,
APPROVED AS TO FORM:
By.
County Water District
APPROVED AS TO FORM:
SONIA R. CARVALHO, CITY ATTORNEY
BycjL
ohn. M. Futile,
Assistant City Attorney
ATTEST
g
By
Maria D. kluizar
City Clerk
Orange County Water District
M.
By
CITY OF SANTA ANA
Ming City ager
RECOMMENDED FOR APPROVAL
By _
I�redlmousavipour
Director of Public Works
15of20
_r
® Yreaamn(plantaatlla RerervNr®Oi.SaWWinn PryetAa
16 of 20
9xhlhitA
Exhibit S: Green Acres Project Facilities within Jurisdiction of RETAILER
a, {
J
_
vemAVE
s7 i (yEBTMl
�BT�q AVE
- 1 TM BT
+ 1
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o;
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i8T 8TT
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VE
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LAVE
Zt.
lAftiIEL
AVE I' a
a's 1 2
-Ie
Miles
C
Tremmnnv FiontmakraeyvrvaU Exhibit B
oisWuacn tnUei�e Rrsen Aems Froicet Facilities Within JUPIaEiCibn of RETAILER
17 of 20
Exhibit C: 'RETA1LER's Current Project Customers and Anticipated Annual Demand
Project Customer
Meter Number
Estimated Annual Usage
acre-feet peryear)
Centennial Soccer Fields 7267
354
18.0
Centennial Soccer Fields 7266�
66
0.3
Centennial Soccer Fields 7273 �
77341647
22.5
Centennial Soccer Fields 7273 (B)
74947636
35.6
Boma Kora Park
144
18,6
Bike Trail 3611 S. Flower St.
3173
2.7
Meradden School
142
34.0
Adams Park
75572383
9.5
Chroma System -Carpet Dyeing
35
8.9
Chroma S stem-Landsca e
1909
2.4
South Coast Village
6344
10.6
Kaiser Medical Office
2564
7.8
3601 MacArthur / Chick-fil-A
2864
1.6
SAR S,A. (Edinger Ave) Y�
270
IV
SAUD I Iigh School #6
664
27.3
Griset/MacArthur E of Greenville St. 2" _
77341639
3.6
Griset/MacArthur E of Greenville St. 3"
690
13.5
Bear St./Garry: 3101 S. Bear St.
2239
3.4
Bear SL Gar . 3011 S. Bear St.
2376
_ 1.3
Thomton Park E end t Bear/Sei erstrom
42
46.8
Harbor Median N. of MacArthur
10161
0.7
SAR Trail Fairview & 12th (sub -meter)
78732358
0.5
SAR Trail North of 17th (sub -meter)
6836
0.9
SAUSD Sports Complex
326
—64
Godinez High School (Centennial Parlc
Sub -Meter
Versailles on the Lake Apartments
Future —10
18 of 20
Exhibit lk OCWD Unit Price Calculation for Project Water Sold to RETAILER
Revisions to Exhibit D by OCWD do not require an amendment to this Agreement.
Fiscal Year 2015-2016 calculation listed below. This unit price shall be effective for Fiscal Year 2017-2018.
Previous fiscal year operational
and maintenance cost to operate,
treat, and distribute Product
Water (Electricity, Chemicals,
Labor, Maintenance, Testing,
Utility Location Services,
Replenishment Assessment Value
of Deep Well Blending Water)
$1,173,230.46
Previous fiscal. year Repair
and Rehabilitation Fund
contribution for Project
Facilities. This figure may be
periodically reviewed and
adjusted by OCWD Board as
necessary
$936,678.00
Previous fiscal year Project Water in acre-feet
4,186,09
Debt service payments.
This figure may vary as
terms for loans, certificates
of participation, and other
Project Facilities financing
change. Smoothing may
occur to avoid sudden
increases to this figure
$980,296.67
Estimated future fiscal year rates provided for planning purposes only. Rates are subject to substantive change prior to
implementation.
FY 2018-19: $778 per acre foot
FY 2019.20; $769 per acre foot
FY 2020-21: $741 per acre foot
FY 2021.22: $761 per acre foot
FY 2022.23: $782 per acre foot
19 of 20
$738
per acre
foot
Exhibit E: Typical Project Water Quality
Revisions to Exhibit E by OCWD do not require an amendment to this Agreement.
Component
Concentration Range
m /L
_
Total Dissolved Solids
700 -1,050
Hardness
170 - 350
Calcium
45 -100
Magnesium
15 -- 35
Potasslum
10 — 25 ,____m
Sodium
150 - 250
Bicarbonate
170 - 250
Chloride
170 - 320
Sulfate
160 — 225
Koran ��W
0.3 - 0.6
Fluoride
0.7 - 1.4
Silica
15-24
Total Nitrogen
2.4 — 20
Phosphate Phosphorous
0.06 — 4
Chemical Oxygen Demand
10 — 35
Sodium Adsorption Ratio
3-7
Exhibit E shall be revised if and when OCWD modifies the tertiary treatment technology,
disinfection process, and/or introduces OCSD Plant #2 effluent to the CAP treatment process.
20 of 20
DIRECTORS
DENIS R. BILODEAU, P.E.
IORDAN BRANDMAN
CATHY GREEN
NELIDA MENDOZA
DINA L. NGUYEN, ESQ.
KELLY E. ROWE, C.E.G., C.H.
STEPHEN R. SHELDON
TRI TA
BRUCE WHITAKER
ROGER C. YOH, P.E.
March 29. 2021
Clerk of the Council
City of Santa Ana
PO BOX 1988
Santa Ana, CA 92701
� Y v
91�Q 'D t StQ
ORANGE COUNTY WATER DISTRICT
RE: Green Acres Project (GAP) Fiscal Year 2021-22 Sales Rate
Dear Clerk of the Council,
OFFICERS
President
STEPHEN R. SHELDON
First Vice President
CATHY GREEN
Second Vice President
TELL TA
General Manager
MICHAEL R. MARKUS, P.E., D.WRE
In accordance with sections 3.2 and 3.3 of the "Agreement between Orange County Water
District and City of Santa Ana Regarding Distribution and Sale of Green Acres Project Water"
entered into as of July 1, 2017, please find enclosed a copy of the revised "Exhibit D: OCWD
Unit Price Calculation for Project Water Sold to RETAILER" applicable to the upcoming 2021-
22 fiscal year. The Operating Group, defined in section 3.3, exchanged emails in February
and March 2021 to discuss pertinent GAP subjects. The GAP sales rate of $905 per acre foot
will become effective on July 1, 2021.
Also enclosed you will find a summary of the GAP product water quality measurements taken
during the 2019 and 2020 calendar years.
Sincerely,
Ben Smith, P.E.
Senior Engineer
714-378-3211
bsmith(c).ocwd.com
Enclosures:
• FY 2021-22 "Exhibit D: OCWD Unit Price Calculation for Project Water Sold to RETAILER"
• Calendar Years 2019 and 2020 "Treated Water Quality for Station GA-HPEPBLEND"
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ORANGE COUNTY WATER DISTRICT
GREEN ACRES TREATMENT PLANT
TREATED WATER QUALITY FOR STATION GA-HIPEPEILEND
01/01/2019 TO 12/31/2019
Abbreviation
Parameter Name
Units
Numberof
Average
Results
Std.
Analyses
RDL
Minimum
Maximum
Average
Dev,
Ag
Silver
ug/L
1
1
<1
<1
<1
Al
Aluminum
ug/L
1
1
85.6
85.6
85.6
APCOLR
Apparent Color (unfiltered)
UNITS
4
3
10
10
10
0.00
As
Arsenic
ug/L
1
1
<1
<1
<1
B
Boron
mg/L
9
0.1
0.35
0.43
0.38
0.02
- Ba.
Barium
ug/L
1
1
33.1
33.1
33.1
Be
-
Beryllium
ug/L
1
1
<1
<1
<1
Br..
Bromide
mg/L
1
0.1
<0.1
<0.1
<0.1
Ca
Calcium
mg/L
9
0.5
64.9
75.7
70.29
3.64
- Cd
Cadmium
ug/L
1
1
<1
<1
<1
Cl
Chloride
mg/L
9
1.83
59.4
294
254.38
73.48
CN
Cyanide
ug/L
1
5
<5
<5
<5
- Co
Cobalt
ug/L
4
1
<1
<1
<1
0.00
CODUNP
Unfiltered Chemical Oxygen Demand
mg/L
9
3
15
30
22.67
4.44
Cr.
Chromium
ug/L
1
1
<1
<1
<1
Cu.
Copper
ug/L
1
1
8.3
8.3
8.3
EC
Electrical Conductivity
um/cm
257
1
1,020
1,770
1,606.7
101.9
F
Fluoride
mg/L
1
0.1
0.85
0.85
0.85
Fe-: -
Iron
ug/L
4
5
87.3
125
104.58
15.52
HCO3 -
Bicarbonate (as HCO3)
mg/L
9
1.2
184.1
234
195.98
15.09
Hg
Mercury
ug/L
1
1
<1
<1
<1
_ K
Potassium
mg/L
9
0.5
14.3
17.2
16.19
0.99
MBAS
-
Surfactants
mg/L
1
0.02
0.1
0.1
0.1
-. Mg.
Magnesium
mg/L
9
0.5
21.1
25.9
23.51
1.60
Mn.
Manganese
ug/L
4
1
2.4
41.1
13.83
18.28
- Na: -
Sodium
mg/L
9
0.5
186
224
205.67
13.43
NH3-N -
Ammonia Nitrogen
mg/L
4
0.1
<0.1
<0.1
<0.1
0.00
Ni
Nickel
ug/L
1
1
3.7
3.7
3.7
NO2-N:
Nitrite Nitrogen
mg/L
4
0.002
<0.002
<0.002
<0.002
0.00
NO3-N
Nitrate Nitrogen
mg/L
4
0.8
9.72
13.2
11.48
1.53
' ORG-N
Organic Nitrogen
mg/L
4
0.1
<0.1
0.6
0.16
0.30
Pb
Lead
ug/L
1
1
<1
<1
<1
pH--
pH
UNITS
256
1
7
8.1
7.42
0.18
PO4-P
Phosphate Phosphorus (orthophosphate)
mg/L
4
0.01
0.5
0.8
0.65
0.16
SAR
Sodium Adsorption Ratio
RATIO
9
0.1
4.9
5.8
5.42
0.29
SARADJ
Adjusted Sodium Adsorption Ratio
RATIO
9
0.1
8.3
12.4
10.61
1.48
Sb
Antimony
ug/L
1
1
<1
<1
<1
Se
Selenium
ug/L
1
1
1.1
1.1
1.1
SI02
Silica
mg/L
1
1
18
18
18
SO4
Sulfate
mg/L
4
2
144
173
161.25
12.50
-TDS
Total Dissolved Solids
mg/L
9
2.5
844
1,010
930.89
48.64
TKN
Total Kjeldahl Nitrogen
mg/L
4
0.2
<0.2
0.6
0.17
0.29
-_ -TI
Thallium
ug/L
1
1
<1
<1
<1
TOC -
Total Organic Carbon (Unfiltered)
mg/L
10
0.05
6A
9.27
7,80
0.90
TOTALK -..
Total Alkalinity (as CaCO3)
mg/L
9
5
151
192
160.78
12.40
- - - - -TOTHRD
Total Hardness (as CaCO3)
mg/L
9
1
249
290
272,22
14,55
•-. TOT-N -
Total Nitrogen
mg/L
4
0.8
9.7
13.2
11.63
1.66
Zn -
Zinc
ug/L
1
1
13.7
13.7
13.7
ORANGE COUNTY WATER DISTRICT
GREEN ACRES TREATMENT PLANT
TREATED WATER QUALITY FOR STATION GA-HPEPEILEND
01/01/2020 TO 12/31/2020
- Abbreviation
Parameter Name
Units
Numberof
Average
Results
Std.
Analyses
RDL
Minimum
Maximum
Average
Dev.
Ag
Silver
ug/L
1
1
<1
<1
<1
Al
Aluminum
ug/L
1
5
98.7
98.7
98.7
-.. APCOLR
Apparent Color (unfiltered)
UNITS
4
3
10
15
11.25
2.50
As
Arsenic
ug/L
1
1
<1
<1
<1
B
Boron
mg/L
10
0.1
0.35
0.43
0.388
0.02
Ba
Barium
ug/L
1
1
48
48
48
Be
Beryllium
ug/L
1
1
<1
<1
<1
Br
Bromide
mg/L
1
0.1
<0.1
<0.1
<0.1
Ca
Calcium
mg/L
10
0.5
60
78.6
72.43
6.13
'., Cd
Cadmium
ug/L
1
1
<1
<1
<1
Cl
Chloride
mg/L
10
1.85
247
331
280.60
23.02
CN
Cyanide
ug/L
1
5
<5
<5
<5
Co
Cobalt
ug/L
4
1
<1
<1
<1
0.00
CODUNF
Unfiltered Chemical Oxygen Demand
mg/L
10
3
14
27
21.90
3.81.
- ---Cr
Chromium
ug/L
1
1
<1
<1
<1
Cu
Copper
ug/L
1
1
5.1
5.1
5.1
- EC
Electrical Conductivity
um/cm
253
1
559
1,830
1,606.9
111.1
-F
Fluoride
mg/L
1
0.1
0.88
0.88
0.88
Fe
Iron
ug/L
4
5
104
154
118.75
23,88
HCO3
Bicarbonate (as HCO3)
mg/L
10
1.2
186.5
229.2
210.75
12.21
Hg
Mercury
ug/L
1
1
<1
<1
<1
K
Potassium
mg/L
10
0.5
15.2
17.5
16.46
0.74
MBAS
Surfactants
mg/L
1
0.02
0.12
0.12
0.12
Mg
Magnesium
mg/L
10
0.5
21.5
32
27.28
3.05
Mn
Manganese
ug/L
4
1
4.9
46.5
19.55
19.51
- - Na
Sodium
mg/L
10
0.5
196
237
222.20
11.61
-. - NH3-N
Ammonia Nitrogen
mg/L
4
0.1
<0.1
<0.1
<1
0.00
Ni
Nickel
ug/L
1
1
3.6
3.6
3.6
NO2-N
Nitrite Nitrogen
mg/L
4
0.002
<0.002
<0.002
<0.002
0.00
NO3-N
Nitrate Nitrogen
mg/L
4
0.325
7,77
14.1
11.49
2.70
ORG-N
Organic Nitrogen
mg/L
4
0.1
<0.1
0.3
0.16
0.17
Pb
Lead
ug/L
1
1
<1
<1
<1
pH
pH
UNITS
253
1
6.9
8.2
7.41
0.15
PO4-P
Phosphate Phosphorus (orthophosphate)
mg/L
4
0,01
0.09
0.52
0.30
0.18
SAR
Sodium Adsorption Ratio
RATIO
10
0.1
4.8
6.5
5.67
0.45
'.. SARADJ
Adjusted Sodium Adsorption Ratio
RATIO
10
0.1
10.1
15.5
12.49
1.45
Sib
Antimony
ug/L
1
1
<1
<1
<1
Se
Selenium
ug/L
1
1
1.6
1.6
1.6
-- SI02
Silica
mg/L
1
1
18.5
18.5
18.5
SO4
Sulfate
mg/L
4
1.75
142
208
175.75
27.04
TDS
Total Dissolved Solids
mg/L
10
2.5
926
1,050
995.40
43.98
TKN
Total I(jeldahl Nitrogen
mg/L
4
0.2
<0.2
0.4
0.19
0.19
A
Thallium
ug/L
1
1
<1
<1
<1
TOC
Total Organic Carbon (Unfiltered)
mg/L
11
0.05
6.13
9.89
7.62
1.14
TOTALI(
Total Alkalinity (as CaCO3)
mg/L
10
5
153
188
172.90
10.02
-TOTHRD
Total Hardness (as CaCO3)
mg/L
10
1
238
326
293.20
26.94
-. TOT-N
Total Nitrogen
mg/L
4
0.35
8.2
14.1
11.68
2.55
-Zn
Zinc
ug/L
1
1
17.2
17.2
17.2
•• Ward Street
Fountain Valley,CA 92708 •
••
lop
April 3, 2025
Clerk of the Council sPV
= _
City of Santa Ana
PO BOX 1988
Santa Ana, CA 92701
RE: Green Acres Project(GAP) Fiscal Year 2025-26 Sales Rate
Dear Clerk of the Council,
In accordance with sections 3.2 and 3.3 of the "Agreement between Orange County Water
District and City of Santa Ana Regarding Distribution and Sale of Green Acres Project
Water" entered into as of July 1, 2017, please find enclosed a copy of the revised "Exhibit
D: OCWD Unit Price Calculation for Project Water Sold to RETAILER" applicable to the
upcoming 2025-26 fiscal year. The Operating Group, defined in section 3.3, exchanged
emails in March 2025 to discuss pertinent GAP subjects. The GAP sales rate of$1,019 per
acre foot will become effective on July 1, 2025.
Also enclosed you will find a summary of the GAP product water quality measurements
taken during the 2023 and 2024 calendar years, and the annual Sales Rate & Program
Update Memorandum.
Sincerely,
Fernando Almario, P.E.
Senior Engineer
714-378-8220, falmario(d-)ocwd.com
Enclosures:
• FY 2025-26 "Exhibit D: OCWD Unit Price Calculation for Project Water Sold to RETAILER"
• Calendar Years 2023 and 2024"Treated Water Quality for Station GA-HPEPBLEND"
• GAP FY 2025-26 Sales Rate & Program Update Memorandum
Board of Directors - -
Denis R.Bilodeau, P.E.,President•Van Tran, Esq.,151 Vice President- Erik K.Weigand,2rd Vice President
Valerie Amezcua•Cathy Green • Fred Jung• Natalie Meeks• Dina L.Nguyen,Esq.•Stephen R.Sheldon• Roger C.Yoh.P.E.
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ORANGE COUNTY WATER DISTRICT
GREEN ACRES TREATMENT PLANT
TREATED WATER QUALITY FOR STATION GA-HPEPBLEND
01/01/2023 TO 12/31/2023
Results
Abbreviation Parameter Name Units Number of Average Analyses RDL Minimum Maximum Average Std.Dev.
Ag Silver ug/L 1 1 <1 <1 <1
AI Aluminum ug/L 1 5 99.9 99.9 99.9
APCOLR Apparent Color(unfiltered) UNITS 2 3 5 15 10 7.07
As Arsenic ug/L 1 1 1 1 1
B Baron mg/L 6 0.1 0.25 0.49 0.41 0.09
Ba Barlum ug/L 1 1 30.7 30.7 30.7
8e Beryllium ug/L 1 1 <1 <1 <1
9r Bromide mg/L 1 0.01. 0.51 0.51 0.51
Ca Calcium mg/L 6 0.5 22.2 80.8 58.55 20.84
Cd Cadmium ug/L 1 1 <1 <1 <1
CI Chloride mg/L 6 2 74.8 354 265.63 103.10
CN Cyanide ug/L 1 5 12 12 12
Co Cobalt ug/L 2 1 <1 <1 <1 0.00
CODUNF Unfiltered Chemical Oxygen Demand mg/L 6 3 <3 23 14.38 7.60
Cr Chromium ug/L 1 1 <1 <1 <1
Cu Copper ug/L 1 1 4.6 4.6 4.6
EC Electrical Conductivity us/cm 183 1 378 1,780 1,534,0 178.4
F Fluoride mg/L 1 0.1 0.85 0.85 0.85
Fe Iron ug/L 2 5 67.6 121 94.30 37.76
HCO3 Bicarbonate(as HCO3) mg/L 6 1.2 170.7 210,9 196.07 14.85
Hg Mercury ug/L 1 1 <1 <1 <1
K Potassium mg/L 6 0.5 5.1 19.1 14.S8 4.99
MBAS Surfactants mg/L 1 0.02 0.12 0.12 0.12
Mg Magnesium mg/L 6 0.5 6.9 30.4 24.12 8.58
Mn Manganese ug/L 2 1 32.8 36.8 34.80 2.83
Na Sodium mg/L 6 0.5 105 251 210.67 54.28
NH3-N Ammonia Nitrogen mg/L 2 0.4 <0.4 3.6 1.82 2.52
Ni Nickel ug/L 1 1 4.2 4.2 4.2
NO2-N Nitrite Nitrogen mg/L 2 0.002 <0.002 0.082 0.0411 0.06
NO3-N Nitrate Nitrogen mg/L 2 0.25 6.78 12.2 9.49 3.83
ORG-N Organic Nitrogen mg/L 2 0.1 <0.1 <0.1 <0.1 0.00
Pb Lead ug/L 1 1 <1 <1 <1
pH pH UNITS 183 1 7.1 8.5 7.48 0.20
PO4-P Phosphate Phosphorus(orthophosphate) mg/L 2 0.010 0.16 0.26 0.21 0.07 .
SAR Sodium Adsorption Ratio RATIO 6 0.1 5 6.7 5.90 0.69
SARADJ Adjusted Sodium Adsorption Ratio RATIO 6 0.1 8 13 11.50 1.87
Sb Antimony ug/L 1 1 <1 <1 <1
Se Selenium ug/L 1 1 2.6 2.6 2.6
S102 Silica mg/L 1 1 19.3 19.3 19.3
SO4 Sulfate mg/L 2 0.9 151 156 153.5 3.54
TDS Total Dissolved Solids mg/L 6 2.5 384 1,020 881.67 244.66
TKN Total Kjeldahl Nitrogen mg/L 2 0.2 <0.2 3.3 1.66 2.32
TI Thallium ug/L 1 1 <1 <1 <1
TOC Total Organic Carbon(Unfiltered) mg/L 7 0.05 2.95 7.77 5.75 1.61
TOTALK Total Alkalinity(as CaCO3) mg/L 6 1.00 140 173 160.83 12.19
TOTHRD Total Hardness(as CaCO3) mg/L 6 1 83.7 313 245.45 83.38
TOT-N Total Nitrogen mg/L 2 0.25 10.2 12.2 11.20 1.41
Zn Zinc ug/L 1 5 14.8 14.8 14.8
ORANGE COUNTY WATER DISTRICT
GREEN ACRES TREATMENT PLANT
TREATED WATER QUALITY FOR STATION GA-HPEPBLEND
01/01/2024 TO 12/31/2024
Results
Abbreviation Parameter Name Units Number of Average Analyses RDL Minimum Maximum Average Std.Dev.
Ag Silver ug/L 1 1 <1 <1 <1
AI Aluminum ug/L 1 5 86 86 86
APCOLR Apparent Color(unfiltered) UNITS 2 3 5 12 8.5 4.95
As Arsenic ug/L 1 1 1.1 1.1 1.1
B Boron mg/L 7 0.1 0.26 0.35 0.30 0.03
Ba Barium ug/L 1 1 23.1 23.1 23.1
Be Beryllium ug/L 1 1 <1 <1 <1
Br Bromide mg/L 1 0.01 0.15 0.15 0.15
Ca Calcium mg/L 7 0.5 44.9 78.3 66.94 11.59
Cd Cadmium ug/L 1 1 <1 <1 <1
Cl Chloride mg/L 7 2 180 273 229.86 37.10
CN Cyanide ug/L 1 5 <5 <5 <5
Co Cobalt ug/L 2 1 <1 <1 <1 0.00
CODUNF Unfiltered Chemical Oxygen Demand mg/L 7 3 11 21 16.86 3.34
Cr Chromium ug/L 1 1 <1 <1 <1
Cu Copper ug/L 1 1 3.8 3.8 3.8
EC Electrical Conductivity us/cm 232 1 684 1,690 1,525.9 122.6
F Fluoride mg/L 1 0.1 0.82 0.82 0.82
Fe Iron ug/L 2 5 82.8 94.4 88.60 8.20
HCO3 Bicarbonate(as HCO3) mg/L 7 1.2 126.8 224.3 192.59 31,73
Hg Mercury ug/L 1 1 <I <1 <1
K Potassium mg/L 7 0.5 11.6 18 15.03 2.59
MBAS Surfactants mg/L 1 0.02 0.08 0.08 0.08
Mg Magnesium mg/L 7 0.5 16.5 26A 22.00 3.04
Mn Manganese ug/L 2 1 14.4 23.6 19.00 6.51
Na Sodium mg/L 7 0.5 136 216 189.43 27.51
NH3-N Ammonia Nitrogen mg/L 2 0.1 <0.1 <0.1 <0.1 0.00
Ni Nickel ug/L 1 1 3.5 3.5 3.5
NO2-N Nitrite Nitrogen mg/L 2 0.002 <0.002 <0.002 <0.002 0.00
NO3-N Nitrate Nitrogen mg/L 2 0.25 9.81 12.6 11.21 1.97
ORG-N Organic Nitrogen mg/L 2 0.1 <0.1 0.3 0.15 0.21
Pb Lead ug/L 1 1 <1 <1 <1
pH pH UNITS 232 1 7.3 8.1 7.56 0.14
PO4-P Phosphate Phosphorus(orthophosphate) mg/L 2 0.015 0.23 0.72 0.48 6.35
SAR Sodium Adsorption Ratio RATIO 7 0.1 4.4 5.6 5.13 0.39
5ARADJ Adjusted Sodium Adsorption Ratio RATIO 7 0.1 7.5 12 10.64 1.55
Sb Antimony ug/L 1 1 <1 <1 <1
Se Selenium ug/L 1 1 2.6 2.6 2.6
S102 Silica mg/L 1 1 18.9 18.9 18.9
504 Sulfate mg/L 2 1.15 152 167 159.5 10.61 .
TDS Total Dissolved Solids mg/L 7 2.5 598 1,020 874.57 144.29
TKN Total Kjeldahl Nitrogen mg/L 2 0.2 <0.2 0.3 0.15 0.21
TI Thallium ug/L 1 1 <1 <1 <1
TOC Total Organic Carbon(Unfiltered) mg/L 8 0.05 5.75 8.14 6.91 0.86
TOTALK Total Alkalinity(as CaCO3) mg/L 7 3.29 104 184 158.00 26.04
TOTHRD Total Hardness(as CaCO3) mg/L 7 1 180 298 257.86 41.04
TOT-N Total Nitrogen mg/L 2 0.3 10.1 12.6 11,35 1.77
Zn Zinc ug/L 1 5 10.3 10.3 10.3
GAP FY 2025-26 Sales Rate, Page I of 6,4/2/2025
GAP FY 2025-26 Sales Rate
& Program Update Memorandum
April 2, 2025 Fernando Almario, P.E.
Table of Contents
1) Executive Summary
2) GAP Sales Rate for FY 2025-26
3) FY 2024-25 (current year) Projects
4) FY 2025-26 Planned Projects
1) Executive Summary
The proposed Green Acres Project (GAP) sales rate from OCWD to Retailers for Fiscal
Year (FY) 2025-26 is $1,019 per Acre Foot (AF) with an increase to the stabilization fund. Last
year, OCWD predicted that the rate would be $1,019/AF with a decrease to the stabilization fund
of$15,000,
Table 1: GAP Sales Rates
Fiscal Year Rate $/AF Rate Stabilization Fund
2017-18 $738
2018-19 $838
2019-20 $867
2020-21 $905
2021-22 $905 Stabilization Fund Increase to $445,000
2022-23 $932 Stabilization Fund Increase to $913,000
2023-24 $960 No Change to Stabilization Fund: $913,000
2024-25 $989 Stabilization Fund Decrease to $716,000
2026-27 Prediction $1,049 Fund Increase
2027-28 Prediction $1,081 Fund Decrease
2028-29 Prediction $1,113 Fund Decrease
2029-30 Prediction $1,147 Fund Decrease
2030-31 Prediction $1 378 Fund Decrease to Zero Balance
GAP FY 2025-26 Sales Rate, Page 2 of 6, 4/2/2025
2) GAP Sales Rate for FY 2025-26
To obtain the rate, the actual GAP expenses from FY 2023-24 were aggregated and divided by
the volume of GAP water sold during the same period. FY 2023-24 is used because FY 2024-25
is still in progress and therefore complete expense and volume sold information is not yet
available.
The unadjusted sales rate calculated by this method was $983/AF, a $6/AF (-0.62%) decrease
from the previous year's implemented rate. The main factors causing the rate to be less than the
prediction of$1,019/AF includes a 5.2% increase of total volume of GAP water sold, maintenance
and UtiliQuest costs decreased by 27%, and a decrease in deep well supplement value by 23%.
To avoid a significant rate drop, a rate stabilization concept was implemented in FY 2021-22. A
theoretical stabilization fund was established that can be deposited into and withdrawn from to
help stabilize the annual sales rate changes. The GAP sales rate is predicted to increase every
year, but the specific conditions of a given year may cause a rate decrease. Consensus among
the Retailers and OCWD on March 21, 2022, was to aim for a GAP sales rate increase of 3% per
year. The rate stabilization fund is expected to help stabilize future rates during the next few
years. It is expected that the current balance of the stabilization fund will be completely withdrawn
within the next 5 years. A prediction of the rate stabilization's fund is shown in Table 4 and Figure
1. The predicted future GAP rates utilizing the fund have been included in Table 1. The Retailers
and OCWD shall revisit this approach each year to determine its efficacy and the reasonableness
of the stabilization fund balance.
Description of"Table 2: Rate Calculation" below shows (left to right):
• the rate that was implemented for the current year (FY 24-25)
• the rate that was predicted for next year (FY 25-26)
• the actual rate computation for next year (FY 25-26)
• the percentage change between the current year implementation (FY 24-25) and the actual
rate computation for next year (FY 25-26)
• Notes about the percentage changes
• The proposed rate to implement for next year (FY 25-26).
"Table 3: AF Sold Details" shows changes in annual meter usage for OCSD and each Retailer.
A revision to the future sales rate prediction has been made:
• The average of AF sold from 2016-17 through 2023-24 (3,990 AF) is used for prediction.
o The value was 4,020 AF in last year's predictions.
• While the unit expenses for electricity and chemicals increased more than their prediction
assumptions of 10% and 6%, the prediction increases were not changed. It is assumed
that the long-term average increases for these items will be less than the currently
predicted increases.
• Deposit and withdrawal predictions of the rate stabilization fund have been included.
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GAP FY 2025-26 Sales Rate, Page 5 of 6,4/2/2025
3) FY 2024-25 (current year) Projects
A. GAP VFD Replacement
a. Description: Replacement of HPEP 3 motor variable frequency drive.
b. Status: In progress
c. Funding: R&R reserve, estimate $200,000.
B. GAP Emergency Repairs
a. Description: Response to GAP leaks or appurtenance failure
b. Status: Costa Mesa service connection leak at Bear/405 (complete; repair cost: $25,563)
c. Funding: R&R reserve
C. GAP Rules & Regulations
a. Description: Update non-potable use Rules & Regulations for GAP and GWRS. Review
potential changes in RWQCB permitting for GWRS uses. Will include/reference the OC
Guidelines. Will seek Retailer adoption after OCWD updates document.
b. Status: Waiting finalization of OC Procedures Document.
D. GAP Treatment Building Stairs
a. Description: Replace existing deteriorating concrete staircase
b. Status: Design complete
c. Funding: R&R reserve, $400,000.
GAP FY 2025-26 Sales Rate, Page 6 of 6,4/2/2025
4) FY 2025-26 Budgeted Projects (Not Yet Board Approved)
Continuation_of current year projects:
A. GAP VFD Replacement
a. Description: Replacement of HPEP 3 motor variable frequency drive.
b. Status: In progress
c. Funding: R&R reserve, estimate $200,000.
B. GAP Emergency Repairs
a. Description: As needed
b. Status: Future possibility.
c. Funding: R&R reserve, estimate $300,000.
C. GAP Rules & Regulations
a. Description: Update non-potable use Rules & Regulations for GAP and GWRS. Review
potential changes in RWQCB permitting for GWRS uses. Will include/reference the OC
Guidelines. Will seek Retailer adoption after OCWD updates document.
b. Status: Waiting finalization of OC Procedures Document.
D. GAP Treatment Building Stairs
a. Description: Replace existing deteriorating concrete staircase
b. Status: Design complete
c. Funding: R&R reserve, $400,000.
E. GAP Reservoir Assessment
a. Description: Perform assessment of GAP reservoir in Santa Ana
b. Status: In Progress
c. Funding: R&R reserve, $100,000.