Res 1992-069 - Laserfiche WebLink

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1. 3. Funding by DISTRICT. The DISTRICT has determined that it is in its interest in conserving the Aquifer to provide funds to the CITY to be used for the purchase of surface water for the Project, pursuant to the terms of this Agreement. The DISTRICT has further determined that such financial participation is consistent with the purposes of the Surface and Groundwater Conservation and Development Fund established by the DISTRICT in 1982 and maintained by the DISTRICT annually thereafter with its revenues. The DISTRICT has funds available in such Fund and will annually designate and set aside an amount sufficient to reimburse the CITY in accordance with the terms of this Agreement for the first five (5) years of operation of the Project. NOW, THEREFORE, in consideration of the premises and other good and valuable considerations, the DISTRICT and the CITY acknowledge and agree as set forth herein: ARTICLE II - TERMS OF AGREEMENT 2.1. Project. The CITY agrees to construct and maintain the Project for treating surface water and to operate the Project in order to deliver its customers not less than five thousand (5,000) acre feet of treated surface water annually for a period of not less than twenty (20) years. Such water will be delivered in substitution for Aquifer water so that the amount of water withdrawn from the Aquifer is reduced by 5,000 acre feet annually. 2.2. Term. The term of this Agreement is for the period commencing upon the date first written above and extending five (5) years after the Project is completed; provided, that the DISTRICT's obligations to make payments pursuant to Paragraph 2.3 shall not commenpe until the Project is completed. "Completed" as used in this section shall mean that date on which a certification of completion is delivered by the CITY to the DISTRICT stating that the Project is capable of delivering treated water at the rate of not less than 5,000 acre feet per year. 2.3. Payment. Subject to the limitations in this Paragraph, the District will reimburse the City on a monthly basis for the cost of the surface water to be supplied by GBRA, and to be treated at the Project and delivered to the City's customers. Each such monthly payment (the "Monthly Payment") shall be in an amount calculated at the maximum price of $44.76 per acre foot, for the actual amount of water treated and delivered to the City's customers in the previous month. In the event the actual cost of the water supplied exceeds $44.76 per acre foot, such excess amount will be paid to GBRA by the city. Monthly Payments shall exclude water delivery costs paid by the City to GBRA and the total of all such Monthly Payments shall not exceed $223,800 per year. The District will provide funds in the 2.