PREVIOUS CONSIDERATION BY COMMITTEE/BOARD OF DIRECTORS

Mojave Water Agency

DATE: May 23, 2019

TO: Board of Directors

FROM: Thomas McCarthy, General Manager BY: Darrell Reynolds, Director of Engineering

SUBJECT: CONSIDER ADOPTING RESOLUTION 1065-19 APPROVING ENTERING INTO A CONNECTION AGREEMENT AND AN ORDINANCE NO. 9 APPLICATION WITH THE CITY OF ADELANTO AND ADELANTO PUBLIC UTILITIES AUTHORITY (ADELANTO) FOR PURCHASE OF WATER FROM THE REGIONAL RECHARGE AND RECOVERY (R3₎ PROJECT

RECOMMENDATION

Staff recommends the Board of Directors adopt Resolution 1065-19 approving entering into a Connection Agreement and an Ordinance No. 9 Application with the City of Adelanto and Adelanto Public Utilities Authority (Adelanto) for purchase of water from the Regional Recharge and Recovery Project.

PREVIOUS CONSIDERATION BY COMMITTEE/BOARD OF DIRECTORS

 Board of Directors - February 24, 2005: The Mojave Water Agency Board of Directors certified the 2004 Regional Water Management Plan (RWMP) and associated Programmatic Environmental Impact Report (2004 PEIR).

 Board of Directors - January 26, 2006: The Mojave Water Agency Board of Directors certified a Final Project Environmental Impact Report (2005 FEIR) for the Water Supply Reliability and Groundwater Replenishment Program with the adoption of Resolution No. 818-06.

 Board of Directors - November 24, 2008: The Mojave Water Agency Board of Directors adopted Resolution No. 875-08 adopting Addendum No.1 of FEIR for the MWA Water Supply reliability and Groundwater Reliability Program (SCH #2005041103) for the partial siting of the Oro Grande Wash Recharge Project.  Board of Directors - January 28, 2010: The Mojave Water Agency Board of

Directors adopted Resolution No. 900-10 adopting Addendum No.2 of FEIR for the MWA Water Supply reliability and Groundwater Reliability Program (SCH #2005041103) providing additional definition and evaluation of specific facilities

 Board of Directors Meeting – November 17, 2016: The Board adopted Resolution No. 1027-16 for Addendum No.3 to the Final Environmental Impact Report for the Water Supply Reliability and Groundwater Replenishment Program for the Re-sitting of the Off-River Channel Recharge Project and authorized Staff to file a Notice of Determination with the State Clearinghouse and the Clerk of the Board of San Bernardino County

 Personnel, Finance, and Security Committee – January 23, 2018: The Committee discussed support of the R3 _{connection to the City of Adelanto and}

adopt Resolution No. 1044-18 Authorizing Staff to submit an application for the US Bureau of Reclamation Water Smart Drought Response Program: Drought Resiliency Projects For Fiscal Year 2018

 Board of Directors Meeting – January 25, 2018: The Board authorized support of the R3 _{connection to the City of Adelanto and adopt Resolution No. 1044-18}

Authorizing Staff to submit an application for the US Bureau of Reclamation Water Smart Drought Response Program: Drought Resiliency Projects For Fiscal Year 2018

 Board of Directors Meeting – October 11, 2018: The Board authorized staff to finance, administer grants, design and construct the City of Adelanto R3

extension to the City of Adelanto’s water storage reservoirs.

 Personnel, Finance, and Security Committee – November 19, 2018: The Committee discussed the general terms and status of a financing agreement and provided input.

 Personnel, Finance and Security Committee – December 17, 2018: The Committee discussed the financing agreement with Adelanto for the R3

extension to the City of Adelanto storage reservoirs.

 Board of Directors Meeting – February 28, 2019: The Board approved Staff request to advertise for consulting services for the Phase I R3 _Projects.

 Engineering and Operations Committee – May 14, 2019: The Committee reviewed this item and recommended forwarding to the Board of Directors for approval.

BACKGROUND

Phase 1 of the Regional Recharge and Recovery Project (R3_{) has a delivery capacity of}

15,000 acre-feet per year, of which 3,000 acre-feet per year capacity in R3 _{is by design}

available to Adelanto. Currently the City of Adelanto (Adelanto) requests 0 acre-feet of R3

Extension Project. Mojave Water Agency (MWA) and Adelanto have developed a Water Supply Connection Agreement for the Regional Recharge and Recovery Project (“Connection Agreement”) which reflects this arrangement. The Connection Agreement requires Adelanto to make a $500,000 deposit with MWA for costs associated with Turnout No.7 and to to file an application with MWA pursuant to Ordinance No.9, which Adelanto filed in May 2019.

Ordinance No. 9 applications initially require Board action for approval prior to the sale and delivery of any State Project Water to the applicant. This Board action will be for deliveries to Adelanto during a Calendar Year beginning once the Adelanto Extension Project is completed and operating. Following the initial Board approval, subsequent annual applications by Adelanto generally require only a staff-level administrative review and approval. The filing of this application is primarily as a placeholder for deliveries to begin in the future.

The Connection Agreement defines the connection improvements to the Adelanto water system. Ownership, Operation, Maintenance and Repair of the improvements. The Connection agreement refers to Ordinance 9 terms and conditions. It also includes liability and indemnification terms. Adelanto is required to provide to MWA a deposit of $500,000 to be used for costs associated with Turn out 7 in the Adelanto R3 _{Extension Project.}

ANALYSIS

MWA staff recommends the Board adopt Resolution 1065-19 approving entering into a Connection Agreement and Ordinance No. 9 Application with the City of Adelanto and Adelanto Public Utilities Authority (Adelanto) for purchase of water from the Regional Recharge and Recovery. Legal Counsel from MWA & the City have both reviewed the Connection Agreement and the Adelanto City Counsel has authorized execution of the Connection Agreement on April 10, 2019. The Adelanto Ordinance 9 application is complete, satisfies the requirements of MWA Ordinance No. 9, and sufficient information is contained in the application to approve the Ordinance 9 application, subject to the conditions outlined in the Resolution.

California Environmental Quality Act (CEQA) documentation for the R3 _{Project is already}

complete; Consistent with the Mojave Water Agency Water Supply Reliability and Groundwater Replenishment Program Final Environmental Impact Report (SCH # 2005041103) adopted January 26, 2006, a Notice of Determination was filed on January 31, 2006. A subsequent addendum was completed on January 21, 2010 specifically for the R3 _{project. Additional CEQA/NEPA/Permit work will be completed with preliminary}

design of the Adelanto Extension Project. MWA has obtained a Domestic Water Supply Permit from the California Department of Public Health (CDPH) for operation of R3 _and

will process an amendment to this permit to add the Adelanto R3 _{Extension Project.}

Adelanto will also process an amendment to their operating permit to include this connection to the R3 _Facilities.

Adelanto’s Ordinance 9 application has requested approval of 0 acre-feet of R3 _water

deliveries this year. A place holder capacity of 3,000 Af/yr (Phase I capacity) will be approved with the initial Ordinance 9 application. All water delivered to Adelanto through Turn out No.7 will be considered Adelanto’s water production under the Mojave Basin Area Judgment (“Judgment”), and will be subject to all assessments and provisions of the Judgment.

The Connection Agreement to the R3 _{Project references the Agency’s Ordinance No. 9}

and states in paragraph 7.3 and 7.4 that the customer has no vested rights upon the sale and delivery of water and no rights are inferred by the Agency providing water in a specific year. All water supplied by the Agency is annually determined and served on an interruptible basis. Interruptible delivery could include such things as drought conditions which effect groundwater levels in the well extraction area, mechanical or electrical equipment failures or maintenance, or loss of use of facilities leased from the City of Victorville.

FISCAL IMPACT

Adelanto will be billed monthly by the Agency for energy costs associated with water deliveries to their turnout and will be billed annually by the Watermaster for Watermaster assessments (Administrative, Biological, Replacement Water and Makeup Water). These revenues will cover the cost to deliver State Water Project water to replenish what was pumped by R3 _{as determined by Watermaster, the cost of power on the R}3 _system,

and Watermaster costs.

The Connection Agreement requires a $500,000 deposit from Adelanto to MWA to apply towards the cost to develop Turn out No.7 at the Adelanto Reservoir site.

ATTACHMENTS

Connection Agreement with Adelanto Adelanto Ordinance No. 9 Application Resolution No. 1065-19

A

Rev¡sed 4/2/1 I

WATER SUPPLY CONNECTION AGREEMENT REGIONAL RECHARGE AND RECOVERY PROJECT (R')

AGREEMENT made

this

lÞ"\ay

of

frprí

.'L2019

, between the MOJAVE

WATER AGENCY ("Agency") and the CITY OF ADELANTO ("Customer")

WITNESSETH:

lT lS HEREBY AGREED, in consideration of the mutual covenants of the parties, as follows:

1.

Definitions. When used in this Agreement, the following terms shall have

the meanings hereinafter set forth

"Agency" _as used herein shall mean Mojave Water Agency

"Agency Law" shall mean the Mojave Water Agency Law, Chapter

97 of the Water Code Appendix, Statutes of 1959 of the State of

California, as amended and as the same may be hereafter amended,

supplemented re-enacted, or codified.

"Agreement" _{as used herein shall mean this agreement for a water} connection between Agency and Customer.

"Contract" _shall mean the contract entitled "Water supply Contract between the State of California Department of Water Resources and

the Mojave Water Agency," dated June 22, 1963 as heretofore or hereafter amended.

"Customer" _{as used herein shall} mean the City of Adelanto

"Connection lmprovements" shall mean those facilities necessary to

connect the Customer's water system to the relocated Turnout 7

("TO 7")of the Regional Recharge and Recovery Project, as depicted and described in Exhibits One, Two, & Three.

"General Manager" shall mean the General Manager of the Mojave Water Agency.

h.

"Judgment" shall mean the Judgment in Citv of Barstow. et al. v. Citv

of

Adelanto

et

al

Suoeri

_or

Court. Riverside Countv. Case No

a b c. d e f. g 208568.

"Ordinance No. 9" as used herein shall mean the Ordinance of the Mojave WaterAgency Establishing the Rules and Regulations for the Sale and Delivery of State Project Water.

"Point of Connection" as used herein shall mean the outlet flange of the magnetic flow meter shown as item 4 on Exhibit Two, Detail for Turnout 7.

"Potable Water" as used herein shall mean water from any source which has been investigated by the State Water Resources Control

Board Division of Drinking Water, and which has been approved for

human consumption,

"R3 Project" as used herein shall mean the Mojave Water Agency Regional Recharge and Recovery Project, including the Connection

lmprovements as described herein.

"State Water Project" shall mean water made available to the Agency

by the State of California pursuant to the terms of the Contract.

"Year" means a calendar year.

2 GeneralPurnose and Reouirements

2.1

Customer Connection. The Connection lmprovements shall be

constructed by the Agency for use solely for the Customer. Customer shall provide a

deposit of $500,000 to cover the cost of the relocated TO 7 and connection improvements. Connections will be provided at the relocated TO 7 at the City of Adelanto Reservoir site

with pipeline extending from the relocated TO 7 and connecting to the City of Adelanto existing water system Facilities, as shown on Exhibits One, Two ("Point of Connection").

2.2

EnvironmentalRequirements. The Agency is a public agency and is

aware of the requirements of the California Environmental Quality Act ("CEQA") and its implementing guidelines, and will comply with the CEQA and its implementing guidelines.

3.

Financial Considerations,

3.1

All

costs

for

design, construction, and startup

of the

relocated

Turnout 7 and Connection lmprovements will be paid in full by the Agency and paid back by the Customer as a deduction from the deposit required in Section 2,1 above.. All costs incurred for the Customer side of the connection will be deducted from the deposit on a

monthly basis and any money remaining at the conclusion

of

construction and final

payment of all costs will be returned to the Customer. k

m

n

4.

Facilitv Ownership

4.1

Facilities lncluded: Ownershi

o

bv Aoencv and Customer The

Connection lmprovements shall include the facilities for delivery of potable water from the

Agency's R" Project to the Point of Connection described in paragraph 2.1 herein. The

Agency will own, operate, and maintain all portions of the Connection lmprovements up

to the Point of Connection, as defined herein, including the main turnout structure in its entirety, and will have full un-restricted access to these facilities. The Customer will own,

operate, and maintain all piping, equipment, and ancillary facilities related to the turnout

on the Customer's side of the Point of Connection.

5.

Desiqn Considerations

5.1

Design and Operatinq Criteria. The Agency's facilities have been designed and planned in close coordination with the Customer's staff to meet Customer's water service requirements to the maximum extent feasible and to allow for maximum

flexibility for use in different modes of operation.

ïhe

Agency's facilities have been designed to deliver potable water to the Customer's Point of Connection at a reasonably

constant minimum water pressure of approximately 40 psi. All deliveries to the Customer will meet the applicable standards of the State Water Resources Control Board Division

of Drinking Water,

5.2

Measurement. All water furnished pursuant to this Agreement shall be measured by the Agency at the Point of Connection.

5.3

Back-Flow. Back-flow prevention is not required by the Division of

Drinking Water when connecting two approved potable water systems with valid domestic water supply permits, however, the Connection lmprovements have been designed and

constructed to provide a "check feature" at the Cla-Val electronic control valve (Exhibit Two, Details 3, ltem 6) on the Customer's side of the Points of Connection. The Customer shall maintain the control valve such that the check feature remains operable during the term of this Agreement as set forth in Section 8.

However, should the Customer's water supply, practices, or operational procedures pose

a water quality concern which may be objectionable and or constitute an unacceptable

source of water, a backflow device(s) commensurate to the degree of hazard may be required by the Agency. This may include but not be limited to blending, treatment,

non-potable service connections, and other related types

of

operations.

lf

required, the customer is responsible forthe installation, repair, replacement, and maintenance as well

as the costs associated with compliance of this requirement. The Agency reserves the right to discontinue service should an unacceptable condition exists until corrected

A cross-connection survey may be required. lf a cross-connection survey is required, the

Customer agrees to provide access and all applicable information in order to perform a

5.4

Flow Control Devices

and

Delivery

Rates.

The

Connection lmprovements include an electronic control valve to allow the Customer to control the rate

of flow at the Point of Connection. Deliveries of

R'

Project water will be made at flow

rates as determined by the Customer, but should not exceed the nominal flow rate shown

on

Exhibit Three, Schedule

of

Delivery Capacities

for

Project Participants, unless

approved in advance by the Agency's Director of Operations.

5.5

Pressure Surqes (Water

Hammer). The

R3 Project has been

designed to withstand the effects of pressure surge; however, the Customer shall make every effort to minimize sudden fluctuations in flow rates at the Point of Connection.

6.

Operation and Maintenance.

6.1

Maintenance

of

Connection lmprovements. Maintenance

of

the

Connection lmprovements will be as described in paragraph 4.1 herein

6.2

Limits on Aoencv Responsibility. The Agency has no responsibility

in the maintenance and operation

of

Customer's water system beyond the Point of

Connection. Customer shall

be

responsible and liable

for

its

own water system,

Customer agrees to accept and consent to such conditions of pressure and service as may from time to time exist under current operating practices prevailing within the Agency, at the location of the Point of Connection, and Customer agrees to hold Agency harmless

from any and all damages caused by or arising out of low, high, or fluctuating pressures

or interruption of service which are beyond Agency's reasonable control. Delivery of

water pursuant to this Agreement, except as may be specifically provided herein, shall be

in accordance with the rules, regulations, and charges of the Agency as they may from time to time exist and apply to all the customers of the Agency. This Agreement and the rights and obligations of the parties hereunder shall be subject to the Agency Law as it now exists and as it may be hereafter amended or codified by the Legislature of the State of California.

6.3

Deliverv of Water. All facilities in the Connection lmprovements up

until

the

Point

of

Connections necessary

to

accommodate water delivery are the

responsibility of the Agency and shall be operated by Agency employees only. The

Agency is required to occasionally flow water in this pipeline during low use times to maintain water quality. This flow of water will be coordinated with Adelanto for delivery to Adelanto. This water will be accounted for and paid for as water delivered to Adelanto.

6.4

Limitations on Service. Due to the nature of the Agency's facilities

and the potential modes of service required, the Agency cannot guarantee any specific level of pressure; however, the R3 Project has been designed to deliver potable water to

the Customer's Point of Connection at a reasonably constant minimum water pressure of

approximately 40 psi. There are no limits regarding time-of-use, either by time of year or

time of day.

6.5

Coordination of Water Deliveries. Water orders must be placed with the Agency Operations Supervisor a minimum of one week in advance of actual delivery. Delivery of water shall continue until the Customer requests the Agency to terminate the flow, and gives the Agency a minimum of one hour in which to do so.

7.

AqreementAdministration.

7.1

General Terms of Service. All water deliveries made pursuant to

Ordinance No.

9

shall be subject

to

all of the terms and conditions of the Agency's Contract. CUSTOMER SHOULD USE CAUTION lN THE ISSUANCE OF CAN OR WILL

SERVE LETTERS FOR ANY LAND USE ENTITLEMENT BASED UPON STATE

WATER PROJECT WATER.

7.2

Water Flow Measureme nt and Meter Accuracv. All determinations

relative to the measuring of water shall be made by the Agency and, upon request by the

Customer, the accuracy of such measurement shall be investigated by the Agency in the

manner set forth in Ordinance No.

9.

The Customer has a right to audit the Agency's

measurement determinations. Any error appearing therein will be adjusted pursuant to conditions set forlh in Ordinance No.

9.

ln the event of a disagreement, the Agency and Customer agree to submit the Agency's accuracy tests to a mutually agreed upon third parly and to abide by its determination. Customerwill ensure that all end-users of water

provided under this Agreement are properly metered.

7.3 Annual roval and is lnterru Ail

water supplied by the Agency

is

annually determined and shall be served upon an

interruptible basis.

7.4

No Riqhts to Water Vested with Customer. The Customer shall not

obtain any vested rights upon the sale and delivery of water apportioned in accordance with Ordinance No. 9, nor are any such rights inferred by virtue of an Agency decision to provide water to Customer in a specific year.

7.5

Water Deliveries required bv the Moiave Basin Area Judqment and

lD-M

Contract.

Customer acknowledges

that

contractual requirements under the

Judgment and contractual requirements between the Agency and

the

lmprovement

District "M" have priority over the sale of water pursuant to Ordinance 9.

7.6

Water Rates. All water rates for water service made by the

Agency shall be established by resolution

of

the Board

of

Directors

of

the Agency pursuant to Ordinance No. 9 and the Mojave Water Agency

Act.

Such rates for water service may not exceed the estimated cost of providing the service for which the water

rate

is

charged.

Such rate

will

be

reasonable,

fair,

and equitable

in

nature and proportionately representative of the costs incurred by the Agency.

at the Agency office on the date a bill is mailed to the Customer and shall be delinquent

30 days thereafter. Service may be discontinued without further notice if payment of the water charge is not made prior to the date such charge becomes delinquent.

8.

Aqreement Term

8.1

Termination Date. This Agreement shall be for a term of one (1) year, and shall automatically renew each year, if Customer is in compliance with its terms,

for a period of thirty (30) years from the date hereof. lf Agency reasonably determines Customer is not in compliance, Customer must be given

a

reasonable opportunity to

comply before the Agreement terminates. This Agreement may be terminated by the Customer earlier by providing a written notice at least 30 days prior to the desired date of

termination. Upon any termination,

the

Connection lmprovements

will

remain the

property of the Agency, and Customer will have no further responsibility under this Agreement, or for ongoing operations and maintenance of the Connection lmprovements.

8.2

Chanqe in Padv Status ln the event of dissolution, consolidation,

or

merger

of the

Customer

or

the Agency,

all of

the terms and conditions

of

this

Agreement shall bind the surviving entity or successor.

9.

lndemnitv

9.1

Defense of Aqreement. The Customer shall defend, indemnify, and hold harmless Agency and its agents, officers, and employees from any claim, action, or

proceeding against Agency or its agents, officers, or employees relating to efforts to attack, set aside, void, or annulthis Agreement, including without limitation a CEQA claim.

To the extent that Agency uses any of its resources, with the prior approval in writing of Customer, in responding to such claim, action, or proceeding, Customer will reimburse

Agency upon demand. Such resources include, but are not limited to staff time, court costs, Agency counsel's time at their regular rate for Agency work, or any other direct or

indirect cost associated with responding to the claim, action or proceedings. These

obligations shall be binding on Customer's successors and assigns, and Customer shall so obligate all successors and assigns.

9.2 m n Water Connection and Except

with respect

to

(1) the Agency's own negligence or willful misconduct and/or (2) an

occurrence on the Agency's side of the Point of Connection not resulting from action(s) of the Customer or its agents, contractors, or assigns, and which is/are the direct cause

of damage or injury, the Customer shall fully indemnify and hold harmless the Agency

and its officers, agents, and employees against liability for damages

of

any nature

whatsoever, including but not limited

to,

property damage, personal injury, or death,

arising from (3) the action(s)

of

Customer

or

any person under Customer's control,

including without limitation the Customer's agents, contractors, and assigns; (4) claims

made by Customer's own customers and other end users of the water provided by Customer, arising out of, or resulting from, or made in connection with this Water Supply

Connection Agreement and the Agency's provision of water to Customer for its use and

the use of Customer's own customers; (5) the Customer's control of the rate of flow at the

delivery point; or (6) an occurrence on the Customer's side of the Point of Connection not resulting from action(s) of the Agency or its agents, contractors, or assigns.

9.3

Claim Notification. The Agency will, within a reasonable period of

time, notify the Customer of any such claim, action, or proceeding covered by this Section

9.

lf the Agency should fail to cooperate in the defense, the Customer shall not thereafter

be responsible

to

defend, indemnify, and hold harmless the Agency and its agents, officers, and employees pursuant to this Section 9.

9.4

Settlement Approval. The Customer shall not be required to pay

or perform any settlement of such claim; action, or proceeding unless the Customer

approves the settlement in writing.

9.5

Notices. All notices to the Customer under this Agreement shall be deemed valid and effective five (5) calendar days following deposit in the United States mail, postage prepaid, be cedified and/or registered mail, addressed to:

Jesse Flores, City Manager City of Adelanto

Adelanto, CA 92301

Keith Lemieux, City Counsel

Olivarez, Madruga, Lemieux, O'Neill 4165 E. Thousand Oaks Blvd,, Suite 350

Westlake Village, California 91362

All notices to the Agency under this Agreement shall be deemed valid and effective

when personally served upon Agency Counsel and General Manager or upon deposit in

the United States mail, postage prepaid, by certified and/or registered mail, addressed to:

William J. Brunick

Brunick, McElhaney & Kennedy 1839 Commercenter West

P O Box 6425

San Bernardino, California 92412

Thomas McCarthy

Mojave Water Agency

13846 Conference Center Drive

Apple Valley, California 92307

Except as provided othenruise, all notices that are required either expressly or by implication to be given by any party to the other under this Agreement shall be signed for

the Agency and for the Customer by such officers and persons as they may from time to time, authorize in writing to so act.

9.6

Remedies Not Exclusive. Remedies provided in this Agreement

for enforcement of its terms are intended and shall be construed as cumulative rather than exclusive and shall not be deemed to deprive the party using the same from also using any other remedies provided by this Agreement or by law.

9.7

Amendments. This Agreement may be amended or supplemented

at any time by mutual written agreement of the Parties in any manner that may be

consistent with the applicable law, subject

to

Paragraph 9.12 of this Agreement. ln amending or supplementing this Agreement, the Agency will bear in mind that substantial uniformity of Agreements between its various customers and the desirability to the main

contracting concepts and principles that are to be used. The Agency

will,

therefore,

attempt

to

maintain uniformity between its various customers' Agreements

in

such

respects.

9,8

Opinions and Determinations. Where the terms of thisAgreement

provide for action to be based upon opinion, judgment, approval, review, or determination of either party hereto, such terms are not intended to be and shall never be construed as

permitting such opinion, judgment, approval, review, or determination to be arbitrary,

capricious, or unreasonable. ln the event legal action is brought to enforce or determine

the rights of either party under this Agreement, the prevailing party in such action shall be entitled to courl costs and reasonable attorney's fees.

9.9

Waiver of Riqhts. Any waiver at any time by either party hereto of

its rights with respect to a breach or default, or any other matter arising in connection with

this Agreement shall not be deemed to be a waiver with respect to any other breach, default, or matter.

9.10

Transfer and Assiqnments. Except

as

provided

in

Section 8,2

hereof, the Customer shall not have the right to sell, assign, or transfer this Agreement and any and all of its rights, duties, and obligations hereunder, in whole or in part, to any

person or entity at any time during the term of this Agreement, without prior written

approval of the Agency.

9.11

lnspection of Books and Records. The proper officers or agents

of the Customer shall have full and free access at all reasonable times to the account books and official records of the Agency at the Agency address set forth below insofar as

the same pertain to the matters and things provided for in this Agreement, with the right

at any time during office hours to make copies thereof at the Customer's expense, and

the proper representatives of the Agency and designated personnel and agents shall have similar rights to inspect the account books and records of the Customer at the Customer's address set forth below as they pertain to the Agency.

Moiave Water Agency City of Adelanto 13846 Conference Center Drive

Apple Vallev, CA92307 Adelanto, CA 92301

ïelephone: (760) 946-7000 Telephone: (760) 246-2300

9.12

Uniformity of Provisions. lt is intended by the pafties that this

Agreement shall be uniform as to form and content as between the Agency and the Customer and other customers served by the Agency and for this reason any subsequent amendments and supplements hereof that may be entered into will be made

to

the contracts of all other customers on an equal basis, subject to Customer's approval which

shall

not

be

unreasonably withheld,

ln

the

event Customer declines

to

approve subsequent amendments as to the form and content of the Agreement, Agency shall have

the right to terminate the Agreement upon giving 3O-days written notice to the Customer.

9.1

3

Controlling Law. lf there is any conflict between the provisions of this Agreement and Ordinance No. 9 or the Judgment, Ordinance No. 9 and the Judgment are controlling.

lN WITNESS WHEREOF, the parties have executed this Agreement.

MOJAVE WATER AGENCY

(sEAL)

Carl Coleman, President

ATTEST:

Jeanette Hayhurst, Secretary

(sEAk) CITY OF ADELANTO

\

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livery Capacities for Project Participants June

l$

2012

Annual Amo(¡nt

Appro for Delivtry

ViaW-Co næ Sl*m

la

etp€rvÊarl Câpocity Ava¡lable to Hesperia Tumout 4 ôpacity ¡låble to Tumouu 3 or 6 Èp ¡lableto AdeÞntoTumoutT

af per yeor Cß af perçar ds afperyear cfs

o o 0 o o 0 o

1,Oæ ₂₄₆ o_41 5?i 0-88 231 0_39

2, 492 o_fl:t 1,O46 t-76 62 o-74

3,000 738 t_24 1,569 2_æ æt2 1_16

4.Om 985 1_65 2.æ2 3-52 923 1.55

5,Om !.231 2-O7 2,61s 4-¡fO r,r54 1-9¡[

6,0m t_477 2.Æ 3.138 5-27 1.385 2-33 7,000 1\723 2.90 3,662 6.15 1,615 2_7L 8.000 L.969 3_31 4_185 7_üt L 3.10

-9,o(Xl 2,2t5 3-72 4,704 7.91 2,O77 3.49 10,o00 2.462 4.14 5,23L 8-79 2,308 3.88 u.mo 2,70S 4_5s 5,754 9.67 2,538 4.27 12,000 2,954 4_96 6,277 10.55 2,769 4_55 13,000 and a 3,200 5_38 6,800 11-43 3,O00 5-04

Note: Cðpc¡tie5 at respect¡ve turnouts can be interpolated using tabulated values for actual delivery amounts een O and 13,000 acre-feet

peryear-1

Mojave Water Agency

APPLICATION FOR THE SALE AND DELIVERY OF STATE PROJECT WATER OR R3 PROJECT WATER

IN ACCORDANCE WITH MWA ORDINANCE NO. 9 1). APPLICANT NAME: ___ ADELANTO PUBLIC UTILITY AUTHORITY 2). LEGAL CAPACITY:

_____Public Agency (enabling law): ____________________________________ _ X _Public Utility (enabling law): ____A010342 LIC#006506

_____Mutual Water Company _____PUC Regulated Water Company _____Private Water Company _____Partnership _____Individual

_____Corporation (type and State): _____________________________________ 3). INTENDED USE FOR WATER:

_X_Municipal _____Industrial _____Agriculture _____Recreation _____Ground Water Recharge _____Other____________________________ 4). CALENDAR YEAR DELIVERY REQUESTED: ____________

STATE WATER PROJECT QUANTITY REQUESTED BY MONTH FOR EACH INTENDED USE (Acre-Feet)

January July February August March September April October May November June December

TOTAL ANNUAL QUANTITY: ______________ R3 WATER QUANTITY REQUESTED

BY MONTH FOR EACH INTENDED USE (Acre-Feet)

(FPA – Free Production Allowance RO – Replacement Obligation)

FPA RO FPA RO January July February August March September April October May November June December

TOTAL ANNUAL QUANTITY: ______________ 265 225 215 215 215 225 245 255 265 275 285 275 2960 2021 259.1 259.1 259.1 259.1 259.1 259.1 259.1 259.1 259.1 259.1 259.1 259.1 3110 0 0 0 0 0 5.9 15.9 25.9 15.9 5.9 0 0

MWA Ordinance No. 9 Application

5). DESCRIPTION OF THE PROPOSED USE (attach location map and/or site plan): ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 6). LOCATION OF THE PROPOSED USE (indicate all that apply):

 Township, Range, Section, ¼ ¼: ___N 1/2, SW 1/4, Sect 33, T5N, R5W___________  Assessor Parcel Number: __3134-031-020000 _______________________________  Street Address: ___None___________________________________________________ 7). Describe all physical facilities that will be constructed as a result of this application. Include specific connections to MWA owned facilities: ___________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 8). Describe the backup water supply capacity the applicant has secured for the intended use (the applicant must demonstrate that water demand for the use can be met by sources other than delivery of State Water Project water by MWA): _______________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 9). Describe water treatment facilities (if any) that will be used for the purpose of use intended by the applicant: 

________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 10). Describe equipment that the applicant will provide to assure that all end users are metered: ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ .

At water supply stub named “Turnout 7”, with Adelanto connected to the R³ system, Water would be delivered as a domestic potable supply to the customers of the Adelanto Public Utility thereby providing cost saving for additional water supply

MWA will construct, own, operate and maintain the extended water main to a new, relocated Turnout 7. The city of Adelanto is responsible for financing the relocation of Turnout 7 and connection to city water supply at the 5 mills tank site located on Olivine rd Adelanto CA.

Backup water supply capacity is approximately 3250 AF produced by 10 potable well sources owned by the Adelanto Public Utility Authority.

SODIUM HYPOCHLORITE / LIQUID CHLORINE FOR DISSINFECTION

All service connection metered by 3/4" - 4" domestic water meters and recorded on a monthly basis.

3

11). ACKNOWLEDGMENT BY APPLICANT:

The applicant acknowledges the following by signature below:

 Water service provided under this application will at all times be in accordance with MWA Ordinance 9, and any other rules and regulations as may be amended, adopted or mandated by the MWA Board of Directors or any entity of the State of California. Service provided is wholesale in nature. The MWA will not become subject to the obligations of a retail water purveyor. Water provided is annual and interruptible. Approved applications are valid for one Calendar Year. An application must be filed no later than August 1 for each subsequent Calendar Year the applicant desires to purchase water from MWA. Vested rights are not obtained or inferred to the Customer upon the sale and delivery of water.

 Water service may be reduced or suspended due to conditions on the State Water Project beyond the control of MWA. The MWA makes no representation as to the quantity or quality of water that may be delivered under this application. The Applicant agrees to maintain primary (backup) water delivery systems and supply sufficient to support 100% of the use anticipated by this application in the event water service by MWA is suspended or reduced.

 The Applicant agrees to fund all costs that result from processing this application and/or from construction of facilities required to provide the service requested. Said costs may include, but are not limited to: environmental review; circulation of the application for review by the public; engineering analysis and design; and,

construction of related physical facilities (extension pipelines, turnouts, turnout meters, etc.). MWA will work with the applicant to develop an estimate of costs, and the applicant will deposit sufficient funds with the MWA prior to expense being incurred by MWA.

 The Applicant agrees to indemnify and hold harmless the MWA should any legal challenge result from the sale or use of water, or construction and operation of facilities, contemplated by this application.

______________________________ ______________________ ____________

APPLICANT TITLE DATE

Raymond Cordero. PERC Water/

STAFF USE ONLY

First Application _____ Renewal Application _____ Date Received _______________ Assigned to ___________________________

Committee Meeting Date ________________ Board Hearing Date _______________ Staff Recommendation ________________________________________________________________ ___________________________________________________________________________________ Environmental Finding:

RESOLUTION NO. 1065-19

A RESOLUTION OF THE MOJAVE WATER AGENCY BOARD OF DIRECTORS APPROVING AN ORDINANCE NO. 9 APPLICATION BY THE CITY OF ADELANTO and ADELANTO PUBLIC UTILITY AUTHORITY (ADELANTO) FOR PURCHASE OF

WATER FROM THE REGIONAL RECHARGE AND RECOVERY PROJECT WHEREAS, on May 23, 2019, the City of Adelanto and Adelanto Public Utility Authority (Adelanto) submitted to Mojave Water Agency (“MWA”) an Ordinance No. 9 application for the purchase and delivery of water from the Regional Recharge and Recovery (R3_{) Project; and,}

WHEREAS, a water service connection, once constructed, will be at R3 _Turnout

#7, connecting the R3 _{project to the Adelanto’s municipal water system; and,}

WHEREAS, Adelanto and MWA have developed a Water Supply Connection Agreement for the Regional Recharge and Recovery Project (“Connection Agreement”) associated with the delivery of said water. The Connection Agreement identifies the duties of the parties, the locations of water service connections to Adelanto’s water system, system capacity and water allotments to Adelanto, and other conditions associated with the planning, design, construction, and operation of the water service connection; and,

WHEREAS, compliance with the California Environmental Quality Act (CEQA) was previously completed for the R3 _{project under the Mojave Water Agency Water Supply}

Reliability and Groundwater Replenishment Program Final Environmental Impact Report (SCH # 2005041103) adopted January 26, 2006, and a Negative Declaration was subsequently filed on January 31, 2006; and,

WHEREAS, MWA has obtained a Domestic Water Supply Permit from the California Department of Public Health (CDPH) for the operation of R3 _{(Permit #}

05-13-12P-011),

NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the Mojave Water Agency (“Board”) approves Adelanto’s Ordinance No. 9 Application for water service from the Regional Recharge and Recovery Project, subject to the following conditions:

1. Compliance with Connection Agreement. Adelanto shall comply with the terms and provisions of the Connection Agreement.

2. Compliance with Ordinance No. 9. All deliveries made pursuant to this approval are subject to the provisions in the Ordinance of the Mojave Water Agency Establishing Rules and Regulations for the Sale and Delivery of State Project Water (“Ordinance No. 9”), adopted April 25, 1995.

3. Location of Delivery and Use of Water. Deliveries of water shall be made to the Adelanto at R3 _{Turnout #7. Water delivered under this approval shall be used}

solely within the City’s municipal water system.

4. Water Delivery Subject to Annual Renewal and is Interruptible. This approval is for the delivery of up to 3,000 acre-feet of water from the R3 _{system to Adelanto}

during a calendar year, and shall be subject to annual renewals. For the purpose of annual renewals, Adelanto shall submit an Ordinance No. 9 Application to MWA, due August 1st _{of each year, for deliveries requested for the following calendar}

year. Approval of the sale of any water is temporary and interruptible. No vested rights may be obtained or are inferred by the yearly renewal of water sales.

5. Mojave Basin Area Judgment. All water delivered to Adelanto by MWA via R3 _will

be considered Annual Production of Adelanto under City of Barstow et al, v. City of Adelanto et al, Riverside County Superior Court Case No. 208568 (“Judgment”), and will be subject to all assessments and provisions of the Judgment.

6. Payment for Water Delivered. Adelanto shall pay the rate established by MWA and the Watermaster for R3 _{water deliveries, according to meter readings at R}3

Turnout #7. MWA will invoice Adelanto on a monthly basis for delivery charges, and the Watermaster will invoice Adelanto annually for Watermaster assessments. As of the date of this Resolution, the MWA monthly delivery charge will include R3

energy costs only; however MWA will re-assess rates on an annual basis and may include additional charges as appropriate.

7. Water Quality. MWA will comply with the water quality provisions in its Domestic Water Supply Permit from CDPH, but provides no other water quality assurances. MWA assumes no liability for the quality of water that Adelanto delivers to its customers.

ADOPTED this 23rd day of May, 2019.

Carl Coleman, President ATTEST: