Res 2000-108 - Laserfiche WebLink

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C:\Corel\WPDOCS\CONTRACT\EAA water K amdmtl.doc above and extending seven (7) five (5) years after January 1. 2001. Payments by the Authoritv to the City under Paragraph 2.3 will be made on a calendar year basis beginning in 2001. the Project is completed; pro'lided, that the DISTRICT's obligation to make payments pursuant to Paragraph 2.3 shall not commence until the Project is completed. "Completed" us used in this section shall mean that date on which a certificate of completion is delivcred by the CITY to the DISTRICT stating that the Projeot is capable of delivering treated water at the rate of not less than 5,000 acre feet per year. 2.3. Payment: Suspended Aquifer Rights. In consideration of the sum of $223,800 (the "Suspension Payment") to be paid by the Authority to the City each veal' during the years 2001 through 2005, inclusive, the Citv agrees to suspend its rights to withdraw groundwater from the Aquifer, and not to use, 3.000 acre feet per year (the "Suspended Aquifer Rights") of its interim authorization or initial regular permit rights for the withdrawal of groundwater from the Aquifer for the calendar years 2001 through 2007, inclusive. The Authority will make the Suspension Payment to the City each year in four equal quarterly installments, each being payable by the fifteenth day after the end of each calendar quarter during the term of this Agreement. 2.3.1. Overages. In the event the City withdraws an excess quantity of groundwater (an "Overage") from the Aquifer durin~ any of the calendar years 2001 through 2005, with respect to the amount of the City's interim authorization or its initial regular permit, as applicable, as reduced by the Suspended Aquifer Rights, the Authority will reduce subsequent payments to the City due under this Agreement until the amount of $53.29 (the "Suspension Rate") is credited towards the payments for each acre foot of the Overage. In the event the City withdraws an Overage during either of the calendar years 2006 or 2007, the City will pay to the Authority the Suspension Rate for each acre foot of the Overage, within 30 days after submitting an annual report to the Authority that shows an Overage in withdrawals. The City agrees that, except in a bona fide emergency that the Citv reports to the Authority. the City will not withdraw an Overage in any year that exceeds 1,500 acre feet. Subj ect to the limitations in this Paragraph, the District will reimburse the City on a monthly basis for the cost of the surface 'Nater to be supplied by GER.'\., and to be treated at the Project and deliyered to the City's customers. Each such monthly payment (the "Monthly Payment") shall be in an amount calculated at the rate maximum price of $11.76 per aore foot, for the actual amount of v/ater treated and delivered to the City's customers in the preyious month. In the event the actual cost of the water supplied exceeds $11.76 per acre foot, such excess amount will be paid to GERA by the City. Monthly Payments shall exclude water delivery costs paid by the City to GER.}" and the total of all such Monthly Payments shall not exceed $223,800 per year. The District 'will provide funds in the amount of each Monthly Payment to the City "vithin fifteen (15) business days of receipt from the City of both an im'oice, or a certified copy thereof, for delivered rm\' surface 'Nater supplied to the Project and a certified report shov.ing (i) distribution master meter readings at the beginning and end of the monthly billing period and (ii) the 'lolume of treated ....'1atcr delivered to thc City's customers during such period. The City acknowlcdges that the District shall be obligated to m.1ke payments under this Paragraph only to the mctent '.vater is actuaIIy delivered from the Project ofllie City's customers. In view of the "take or pay" nature of the City's "vater purchase contract with GBRl\, the District shall not be obligated to pay for watcr not actually deli';ered to the City for the Project ('Nhether or not the City is obligated to make payments to 2