CITY OF SIMI VALLEY
MEMORANDUM
Sept
ember 12, 2022
TO: Cit
y Council
Board of Directors, Ventura County Waterworks District No. 8 FR
OM: Department of Public Works
SUBJ
ECT: REINSTATEMENT AND AMENDMENT TO THE AGREEMENT AMONG
CALLEGUAS MUNICIPAL WATER DISTRICT, THE CITY OF SIMI
VALLEY, AND VENTURA COUNTY WATERWORKS DISTRICT NO. 8
REGARDING THE PILOT RECLAIMED WATER SYSTEM PROJECT
STAFF RECOMMENDATION
It is recommended that the City Council/Board of Directors approve the attached reinstatement and amendment (page 4) to the Agreement regarding the Pilot Reclaimed Water System Project for the purchase and sale of reclaimed water among Calleguas Municipal Water District, the City of Simi Valley, and Ventura County Waterworks District No. 8.
BACKGROUND AND OVERVIEW
On November 21, 1994, Calleguas Municipal Water District (Calleguas), the City of Simi Valley, and Ventura County Waterworks District No. 8 executed an Agreement regarding the Pilot Reclaimed (recycled) Water System Project for the purchase and sale of recycled water. Calleguas constructed and owns the pump station at the Water Quality Control Plant and the distribution main pipeline that runs east along West Los Angeles Avenue for approximately 2,000 feet, and then north through an easement on undeveloped property to the Simi Valley Landfill. The Agreement has been amended f
our times, on June 18, 2001 , February 2, 2015,
April 18, 2016, and February 19, 2020. The Agreement and amendments expired on November 21, 2021. The parties desire to reinstate the amended agreement retroactively effective to Novem ber 21, 2021 and extend the term for another five years to November 21, 2026. The original agreement and subsequent amendments are attached as Exhibit 1 (page 6)
.
FINDINGS AND ALTERNATIVES
Calleguas, the City/District, and a limited number of businesses continue to benefit from the system operation, therefore staff recommends a reinstatement and amendment to the Agreement.
A2284.SR.DB
AGENDA ITEM NO.
Consent (2)
A2284.SR.DB
The Calleguas Board of Directors approved Amendment No. 5 to the Agreement at its August 17, 2022 meeting.
This agreement does not address providing recycled water to residents and the construction of the pipeline does not have an outflow point that could provide recycled water to those not connected to the pipeline. Staff is preparing a report to the City Council discussing alternatives and limitations to provide recycled water to the public and will return to the City Council with options at a future meeting.
The following alternatives are available to the City Council/Board of Directors:
1. Approve the attached reinstatement and amendment to the Agreement regarding the Pilot Reclaimed Water System Project for the purchase and sale of reclaimed water among Calleguas Municipal Water District, the City of Simi Valley and Ventura County Waterworks District No. 8 and authorize the Mayor/Chair to execute the reinstatement and amendment;
2. Do not approve the proposed amendment;
3. Provide other direction to staff.
Staff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I move to approve the reinstatement and amendment to the Agreement with Calleguas Municipal Water District regarding the Pilot Reclaimed Water System Project for the purchase and sale of reclaimed water among Calleguas Municipal Water District, the City of Simi Valley and Ventura County Waterworks District No. 8 and authorize the Mayor/Chair to execute the reinstatement and amendment.
SUMMARY
On November 21, 1994, Calleguas Municipal Water District, the City of Simi Valley, and Ventura County Waterworks District No. 8 executed an agreement to purchase and sell recycled w ater. The attac hed reinstatement and amendment is proposed which will further extend the agreement until November 21, 2026. The Calleguas Board of Directors approved Amendment No. 5 at its August 17, 2022 meeting. Staff recommends the City Council/Board of Directors approve and execute the amendment.
____________________________________
Ronald K. Fuchiwaki, Director
Department of Public Works
2 A2284.SR.DB
Prepared by: Joe Deakin, Assistant Public Works Director
INDEX Page
Amendment No. 5 to Agreement ...................................................... 4 Exhibit 1 – Original Agreement and Amendment Nos. 1-4 ............... 6
3 A2284.AMD.DB
RE
INSTATEMENT AND AMENDMENT TO AGREEMENT
REGARDING THE PILOT RECLAIMED WATER SYSTEM
PROJECT FOR THE PURCHASE AND SALE OF
RECLAIMED WATER AMONG CALLEGUAS MUNICIPAL
WATER DISTRICT, THE CITY OF SIMI VALLEY, AND
VENTURA COUNTY WATERWORKS DISTRICT NO. 8
This Reinstatement and Fifth Amendment to Agreement is made and entered o n this 12th day of September 2022, retroactively effective to November 21, 2021by and between CALLEGUAS MUNICIPAL WATER DISTRICT, organized under the Municipal Water District Act of 1911 of the State of California (hereinafter referred to as "CALLEGUAS") and the CITY OF SIMI VALLEY, a California General Law City and the VENTURA COUNTY WATERWORKS DISTRICT NO. 8, a Waterworks District (hereinafter collectively and separately referred to as "SIMI VALLEY"). CALLEGUAS and SIMI VALLEY shall hereinafter be together referred to as "PARTIES."
RECITALS
WHEREAS, the PARTIES have previously entered into: (1) the “ Agreement Regarding the Pilot Reclaimed Water System Project for the Purchase and Sale of Reclaimed Water Among Calleguas Municipal Water District, the City of Simi Valley, and Ventura County Waterworks District No. 8” dated November 21, 1994; (2) Amendment No. 1 dated June 18, 2001; (3) Amendment No. 2 dated February 2, 2015; (4) Amendment No. 3 dated April 18, 2016; and (5) Amendment No. 4 dated February 19, 2020 (collectively the “Amended Agreement”); and
W
HEREAS, the Amended Agreement covers the operation of a recycled water system consisting of a pump station, pipeline, and appurtenances owned by CALLEGUAS and referred to in the Amended Agreement as the "Wholesale facilities"; and ·
WHEREAS, the Amended Agreement expired by its terms on
November 21, 2021; and
WHEREAS, the PARTIES wish to reinstate the Amended Agreement retroactively effective to November 22, 2021, and further extend the term of the Amended Agreement for an additional five (5) years.
N
OW, THEREFORE, the PARTIES agree as follows:
1. T
he Amended Agreement is hereby reinstated and is retroactively effective to November 22, 2021.
2. T
he term of the Amended Agreement is from November 22, 2021 to November 21, 202 6. Payments/purchase made among the PARTIES for recycled water between November 22, 2021 and the execution of this Fifth Amended Agreement are hereby ratified.
4 A2284.AMD.DB
3 . Except as expressly modified by this Amendment No. 5 , all of the terms, conditions and provisions of the Amended Agreement remain unaltered and in full force and effect.
I
N WITNESS WHEREOF, the PARTIES have caused this Amendment No. 5 to be executed the day and year first above written.
Attest:
Lucy Blanco
City Clerk/District Secretary
City of Simi Valley
Simi Valley, California
Keith L. Mashburn, Mayor of the City of
Simi Valley, California
Approved as to Form:
David L. Caceres
City Attorney/District Counsel
Ventura County Waterworks District
No. 8, A Municipal Corporation
Keith L. Mashburn, Chair of Ventura
County Waterworks District No. 8
Approved as to Content:
Brian Paul Gabler
City Manager/District Manager
Carolyn Johnson
Administrative Services Director
Ronald K. Fuchiwaki
Public Works Director
Calleguas Municipal Water District
Anthony Goff, General Manager
5 (
AGREEMENT REGARDING THE PILOT RECLAIMED WATER SYSTEM PROJECT
FOR THE PURCHASE AND SALE OF RECLAIMED WATER AMONG CALLEGUAS
MUNICIPAL WATER DISTRICT, THE CITY OF SIMI VALLEY, SIMI VALLEY
SANITATION DISTRICT, AND VENTURA COUNTY WATERWORKS DISTRICT NO.8
THIS AGREEMENT is made and entered into in the City of Simi Valley on this 21st day of November ,1994, by and between CALLEGUAS MUNICIPAL WATER DISTRICT, organized under the Municipal Water District Act of 1911 of the State of California, hereinafter referred to as "CALLEGUAS," and the CITY OF SIMI VALLEY, SU1I VALLEY COUNTY SANITATION DISTRICT, VENTURA COUNTY 'iiATER'i/ORKS DISTRICT NO.8, a California General Law City, County Sanitation District, and County Water'lIorks District respectively, hereinafter collectively or separately referred to as "SIMI VALLEY." CALLEGUAS and SIMI VALLEY shall hereinafter be collectively referred to as "PARTIES."
~HEREAS, the PARTIES jointly desire to develop an alternate water supply project which maximizes the beneficial use of local water resources.
WHEREAS, a goal of the PARTIES is to "drought proof" the City and provide a reliable water supply during emergencies.
WHEREAS, there is a firm source of reclaimed water adequate, on an annual basis, to provide the Project Service Area.
'ilHEREAS, SiMI VALL~,{ provides 'liater service for municipal and industrial uses to approximately 60,000 people and, along ',vith private 'liater producers, util izes local resources and su'pplements those resources with imported water.
WHEREAS, SIMI VALLEY is the owner and operator of a wastewater treatment facility known as the Simi Valley Wastewater Treatment Plant, from which treated wastewater (herein referred to as 'reclaimed water") is discharged to the Arroyo Simi Creek.
WHEREAS, SIMI VALLEY performs sufficient wastewater treatment that the quality of reclaimed water from the Simi Valley Wastewater Treatment Plant meets or exceeds all current federal, state, and county establ ished standards for reclaimed 'Nater use; and, SINl VALLEY will use its best efforts to meet any future federal, state, and county establ ished standards for reclaimed water use.
WHEREAS, SI,'I! VALLEY has filed an application/petition with the State UG.073 .SR\ts
EXHIBIT 1
6 of Cal i fornia Water Resources Control Board for a permit and license recognizing its existing rights to purvey its reclaimed water.
WHEREAS, CALLEGUAS warrants it is fami liar 'Hi th and 'Hi 11 meet or exceed industry standards for the transmission sto~age, and distribution of reclaimed water.
WHEREAS, the mission of CALLEGUAS is to provide its service area with a reliable and adequate supply of quality supplemental water through the acquisition and distribution of both regionally and locally developed water in an environmentally responsible manner.
WHEREAS, SIMI VALLEY is located within the District boundaries of CALLEGUAS and CALLEGUAS has adopted a resolution (Number 903) covering its service area requiring maximum reclaimed water use by all of its purveyors to the extent such use is reasonable and reclaimed water is made available by CALLEGUAS.
WHEREAS, the PARTIES jointly entered into a Memorandum of Understanding (MOU) on November 8, 1993 supporting the development of a Pilot Water Reclamation Project.
'IIHEREAS, CALLEGUAS has indicated its intent to pay for and, with input from SIMI VALLEY, manage the design, financing, permitting and cnstruction of a wholesale "backbone" transmission system and service connections for a pilot project and SIMI VAL~E,{ has indicated its intent to be responsible for the distribution of reclaimed water from a service connection located at or near the terminus of CALLEGUAS's transmission system to its customers.
WHEREAS, CALLEGUAS and SIMI VALLEY are empo'Hered to enter into separate contracts necessary to carry out their purposes and to coooerate with other entities in regard to production and distribution of reclaimed water.
WHEREAS, the Simi Valley Landfill (Project Service Area) has been conditioned by the County or Ventura through CUP-3142 to utilize reclaimed water for landscape irrigation.
WHEREAS, this Agreement shall cover the intent and obl igation of the PARTIES to design, construct, operate and maintain wholesale and retail facilities; wholesale purchase of reclaimed water by CALLEGUAS, retail purchase of reclaimed water by SIMI VALLEY, sale, transmission of reclaimed '.-later by CALLEGUAS for the Simi Valley "Pilot" Reclaimed Water Distribution Project.
NO',i THEREFORE, in consideration of their mutual promises, obl igations and covenants hereinafter contained, the parties hereto agree as follows:
1. SIMI VALLEY and CALLEGUAS have reviewed the anticipated demands of the Project Service 'Area, and subject to any conditions or terms contained UI..073.SR\ls
7 herein, SIMI VALLEY warrants its supply is adequate to meet those demands and anticipated demands on an annual basis.
2. Reclaimed water will be supplied to CALLEGUAS from the SIMI VALLEY '~astewater Treatment Plant. SIMI VALLEY will use its best effort to maintain a consistent minimum average hydraulic gradient, within acceptable tolerances, at the Release Point. Said minimum average hydraulic gradient will meet the normal daily reclaimed water system operational hydraul ic requirements.
3. CALLEGUAS shall construct and SIMI VALLEY shall operate and maintain a metering device at the point of release of its reclaimed water to CALLEGUAS, capable of measuring the quantity of reclaimed water which is released to CALLEGUAS. This "Release Point" shall be located at or adjacent to the Simi Valley 'ilastewater Treatment Plant. Records of daily releases shall be made available to CALLEGUAS on a monthly basis.
4 Delivery of reclaimed water to SIMI VALLEY will be from the terminus of CALLEGUAS Facilities located adjacent to the Simi Valley Landfill.
CALLEGUAS will use its best efFort to maintain a consistent minimum average hydraul ic gradient of Forty (40) pounds per square inch (PSI) at the service connection.
5. CALLEGUAS will be responsible for the design, permitting, construction, rights-oF-way, ooeration and maintenance of all Wholesale facilities. For the purposes of this Agreement, \1holesale facilities are defined as all the facil ities needed to del iver recl aimed water from the Simi Valley Wastewater Treatment Plant up to the Simi Valley Landfill area includi~g but not necessarily I imited to pipel ines, pump stations, and 'liater tank(s).
6. SIMI VALLEY will be responsible for the design, construction, operation and maintenance for all Retail distribution facilities. Retail distribution facilities are defined as those reclaimed water facilities needed to deliver reclaimed water beyond the point of purchase of reclaimed water by SIMI VALLEY from CALLEGUAS.
7. CALLEGUAS shall prepare all necessary environmental review, including the documents required pursuant to the provisions of the California Environmental Quality Act (CEQA) associated with the development of the Simi Valley "Pilot" Reclaimed Water Distribution Project.
S. SIMI VALLEY 'llill use its best efforts to obtain approval to distribute reclaimed water originating at the Simi Valley Wastewater Treatment Plant from the California Regional Water Quality Control Board (RWQCB), and will provide proof of approval, if required by the RWQCB, to CALLEGUAS.
Ul.OT3.SR\ls
8 9. SIMI VALLEY will use its best effort to obtain and maintain a reclaimed water customer base including but not necessarily limited to the Simi Va 11 ey Landfi 11 .
10. shall be defined
For the purposes of this Agreement, the term "Released Water" as the reclaimed 'flater purchased by CALLEGUAS from SIMI VALLEY at the metering device located within or adjacent to the Simi Valley Wastewater Treatment Plant. [n addition, "Released Water" shall be defined as the rec I aimed 'fla ter purchased by S IM I VALLEY from CALLEGUAS at or near the termi nus of CALLEGUAS's Wholesale Facilities.
11. For the purposes of this Agreement, and in consideration of the promises set forth herein, CALLEGUAS will pay to SIMI VALLEY an initial unit price of 560 per acre foot based on the volume of Released Water delivered by SIMI VALLEY to CALLEGUAS and recorded at the Rel~ase Point. a. Effective each July 1st after the effective date of this Agreement ("Adjustment Date"), the PARTIES agree to adjust the unit price per acre foot of Released Water. This adjustment will be made based an a comparison of the difference per acre foot between the current cast of Metropolitan Water District of Southern California's (MWD) Wholesale Non-interruptable Water Rate (WNWR) and the MWD WNWR of the base year effective July I, 1994 (sa12/AF). Said Calculation shall be as follows:
[Current Year WNWR - Base Year WNWR (54 12)J + S60.00
Cu~rent Year Released Water Unit Cost per Acre Foot
b. The Adjusted Unit Price of Released \1ater so determined shall then be the amount per acre foot ~hich CALLEGUAS will pay to SIMI VALLEY until the next succeeding Adjustment Date.
c. Payments for Released Water shall be made by CALLEGUAS to SIMI VALLEY monthly during the term of this Agreement. Payments due an or about the 15th of each month shall be for the month preceding, measured from the 1st through the end of the preceding month.
12. The Pilat Project is in the ser'/ice area of SIMI VALLEY.
CALLEGUAS wi 11 make an i I abl e to S 1M! VALLEY reel a imed water at a service connection at or near the ter'11inus of CALLEGUAS's wholesale facilities. For the purposes of this Agree'11ent, and in consideration of the promises set forth herein, CALLEGUAS and S MI VALLEY agree to an initial Reclaimed Water Unit Cost of 5340 per acre foot 0 reclaimed water delivered by CALLEGUAS to SIMI VALLEY UI.073.SK\ls
9 "
(
through the service connection. The initial Reclaimed Water Unit Cost per acre foot shall consist of four (4) price components:
Capital Facil ities Component
Released Water Component
Operations and Maintenance Component
Pump i ng Componen t . . . . . . . . . .
5230
560
520
530
a. CAPITAL FACILITIES COMPONENT: For the purposes of this Agreement, the Capital Facilities Component of the Reclaimed Water Unit Cost shall pay for the capital expenditures necessary to construct the Wholesale '/later facilities. This unit cost of the Capital Facilities Component of the Reclaimed 'liater Unit Cost shall remain fixed (5230 per acre foot) over the term of this Agreement.
b. RELE.~SED 'IIATER COMPONENT: The Released Water
Component of the Reclaimed Water Unit Cost shall pay for the cost to purchase Released Water as described in section 11 of this Agreement. The initial unit cost or the Released Water Component shall be 560 per acre foot. The Released 'dater Component shall be subject to annual adjustments as described in section 11a or this Agreement.
c. O&M COMPONENT:
Component of the Recl aimed 'dater Unit
The Operations and Maintenance (O~~)
Cost shall pay for the fi x~d charges
necessary for the operation and :l1aintenance of the "Pilot" Reclaimed Water System by CALLEGUAS. The initial O&M Component shall be 520 per acre foot of reclaimed water delivered by CALLEGUAS to SIMI VALLEY.
The O&M Component of the Reclaimed Water Unit Cost shall be subject to annual adjustment. Effective each July 1st after the effective date of the Agreement ("Adjustment Date"), the PARTIES agree to adjust the 0~'1 Component unit price per acre foot. The O&M Component adjustment will be made based upon a comparison of the Construction Cost Index (CCI) for the Los Angeles Region from the Engineering News Record for ,~arch of the current year and the eCI of the base year of March 1994 (6506). Said Calculation will be as follows:
Current Year CC r x 520.00 = Current Year O&M Unit Cost 6506
d. PUMPING COMPONENT: The Pumping Component of the
Reclaimed ',~ater Unit Cost sha 11 pay for the e 1 ectri ca 1 costs necessary to pump UG.073.SR\ls
10 reclaimed water from the Release Point to the terminus of CALLEGUAS's facilities.
The initial Pumping Component of the Reclaimed Water Unit Cost shall be S30 per acre foot of reclaimed water del ivered by CALLEGUAS to SIMI VALLEY.
The Pumping Component of the Reclaimed '~ater unit costs shall be subject to annual adjustment. Effective each July 1st after the effective date of the Agreement ("Adjustment Date"), the PARTIES agree to adjust the Pumping Component unit cost per acre foot to reflect the actual price for electricity charged by Southern Cal ifornia Edison to CALLEGUAS 'o'Ihich SIMI VALLEY will pay to CALLEGUAS until the next succeeding Adjustment Date.
e. Payments to CALLEGUAS by SIMI VALLE'! for reclaimed water shall be based on the quantity of reclaimed water delivered by SIMI VALLEY to sati sfy customer demands. Payments shall be made to CALLEGUAS monthly during the term of this Agreement. Payments due on or about the 30th of each month shall be for the month precedi ng, measured from the 1st through the end of the preceding month. Payments to CALLEGUAS will commence the ~onth following the first full month that reclaimed water is delivered for the Simi Valley "Pilot' Reclaimed Water Project.
13. CALLEGUAS warrants it is familiar wi:~ applicable state statutes and regulations regarding permitted uses and monitoring those uses of reclaimed water and agrees to enforce said statutes and regulations with its purveyors in a manner that will not jeopardize SIMI VALLU's permit from the California Regional Water Quality Control Board and agrees to report its actions to SIMI VALLEY as may be required to protect SIMI VALLEY's permit from the Cal ifornia ReGional 'dater Qual ity Control Board.
14. CALLEGUAS shall have access to the records of SIMI VALLEY at all times during the term of this Agre'ement concerning the qual ity of water discharged by SIMI VALLEY. CALLEGUAS, at its sole cost and expense, may test the water qual ity at the metering device and provide whatever tes~jng and monitoring CALLEGUAS feels is required to assure the quality of water at the release point.
15. SIMI VALLEY agrees to defend, indemni fj and hold har:nless CALLEGUAS, its Board of Directors, and employees in the event any action or claim is made against CALLEGUAS because the reclaimed water fai 1 s to :neet the establ i shed standards for recl aimed water use. SHlI VALL;::'!' s obl igation to cefend, indemnify and hold harmless CALLEGUAS, shall be discharged by SIMI VALLEY evidencing that the reclaimed water has met the established standards set forth in Title 22 of the California Code of Regulations. Should any action be filed or proceeding initiated to challenge SIMI VALLEY's appro'lal, execution, or U!.073.SR\ls
11 implementation of this Agreement, SIMI VALLEY shall have the sale discretion to defend against that action or proceeding or to rescind this Agreement.
16. CALLEGUAS agrees to defend. indemnify. and hold harmless SIMI VALLEY. its Board of Directors and employees from any claim arising out of CALLEGUAS' feasance or non-feasance related to wholesal ing reclaimed water to its purveyors.
17. SIMI VALLEY shall not be obligated to purchase a minimum quantity of reclaimed water under this Agreement.
18. SIMI VALLEY and CALLEGUAS will share on an equal basis all credits towards water rationing allocations provided by the Metropolitan Water District of Southern California under its drought management program.
19. Subject to the provisions indicated herein. this Agreement shall become effective upon execution and shall run for a term of twenty-five (25) years from the date of execution by the PARTIES. The Agreement will automatically terminate if the Simi Valley "Pilot' Reclaimed Water Distribution Project is not constructed within five years of the date of execution of this Agreement. Notwithstanding the foregoing. the PARTIES, by mutual consent, may extend the term of the Agreement for additional five year periods.
20. This Agreement is solely for the benefit of the PARTIES and is not intended and shall not confer any rights upon any parties not a party to this Agreement.
21. Government Code
This Agreement shall not impose a mandatory duty under
Section 815.6· or otherwise, nor shall any portion 'hereof be construed to constitute a statute. ordinance, or regulation within the meaning of Evidence Code Section 669.
22. At any time after t'l/enty-five (25) years from the date of execution of this Agreement, SIMI VALLEY may, at its sale option, purchase from CALLEGUAS thOSe portions of the Wholesale Facil ities that are located within SIMI VALLEY's Service area and are not essential for CALLEGUAS's del ivery of reclaimed water outside of SIMI VALLEY's service area. The purchaSe price shall be based upon the original construction cost of said facilities reduced by t'I/O (2) percent per year of operation of said facilitieS, reduced further by five (5) dollars per acre foot of Released Water purchased by SIMI VALLEY from CALLEGUAS during the term of this Agreement. Notice of intent to purchase the Wholesale Facilities shall be provided by SIMI VALLEY to CALLEGUAS at least 120 days prior to said purchase.
Ul.Oi1.SR\ls
12 .. . �
(
--
,,
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.
ATTEST: CITY OF SIMI VALLEY,
�-« � < tY. /2ik:.J1c-:
Alice K. Recto"if'do, Assistant
City Clerk/District Secretary
APPRCVEO AS TO FORM:
APPROVED AS TO CONTENT:
M. L. Koester, District Manager
Connie Henes-8aird
Support Services Administrator
Ronald C. Coons, Director
Department of Public Works
A Municipal Corporation
By:
VENTURA COUNTY WATERWORKS DfSTRICT NO. 8
A Municipal Co ,-"'oration
By:
SIMI VALLEY COUNTY SANITATION DISTRICT
A Municipal Corporation
By:��j)�.
B.tlL,OAVIS, CHAIR OF THE SIMI
VALLEY COUNTY SANITATION DISTRICT
CALLEGUAS MUNICIPAL WATER DISTRICT
APPROVED AS TO FORM:
/ "�
--;-- >" r,, (;· n/�,�_..., .-� ... � r � � .. ..... \ r -�'v.:;01 I ' (, ', ........ :s \.:,,,� District Legai Counse1
By:
Donald R. Kendall
General :\Tanager
Calleguas Ylunicipal Water
District
Ul.073. SR\ls
.CALLEGUAS MUNICIPAL WATER DISTRICT
/;} ... ,, � IJ'i
By: '-tJ�-h1_.�_-�/ � �C?<Lfa("
XXJNAU!�D;g{X Donald G. Hauser, Director
�0&X::«'IIX.DXiKIK CALLEGUAS MUNICIPAL
?> ER DI s:
c; I(\/\ nn By: �V-;4-�
PATRICK H. MILLt.R
PRESIDENT OF THE BOARD OF OIRECTORS 1
CALLEGUAS MUNiCIPAL WATE R DISTRICT
13 AMENDMENT NO.1
AGREEMENT REGARDING THE PILOT RECLAIMED WATER
SYSTEM PROJECT FOR THE PURCHASE AND SALE OF
RECLAIMED WATER AMONG CALLEGUAS MUNICIPAL WATER
DISTRICT, THE CITY OF SIMI V ALLEY AND VENTURA
COUNTY WATERWORKS DISTRICT NO.8
THIS AGREEMENT is made and entered into in the City of Simi Valley on this jf'day of Svd€./, 2001, by and between CALLEGUAS MUNICIPAL WATER DISTRICT, organized under the Municipal Water District Act of 1911 of the State of California, hereinafter referred to as "CALLEGUAS", and the CITY OF SIMI VALLEY and the VENTURA COUNTY WATERWORKS DISTRICT NO.8, a California General Law City and County Waterworks District respectively, hereinafter collectively or separately referred to as "SIMI V ALLEY." CALLEGUAS and SIMI VALLEY shall hereinafter be collectively referred to as "PARTIES." WITNESSETH:
WHEREAS the construction of the Simi Valley Pilot Recycled Water System Project is now completed pursuant to the terms of that agreement entitled "AGREEMENT
REGARDING THE PILOT RECLAIMED WATER SYSTEM PROJECT FOR THE PURCHASE
AND SALE OF RECLAIMED WATER AMONG CALLEGUAS MUNICIPAL WATER
DISTRICT, THE CITY OF SIMI VALLEY, SIMI VALLEY SANITATION DISTRICT, AND VENTURA COUNTY WATERWORKS DISTRICT NO.8" dated November 21, 1994 (hereinafter "Original Agreement").
WHEREAS, On December 11, 1995, the City Council of the City of Simi Valley passed resolution 95-122, thereby merging the Simi Valley County Sanitation District with the City of Simi Valley.
WHEREAS, the PARTIES are dedicated to efficient, cost effective, and reliable operation of the pilot recycled water system project.
WHEREAS, the locations and operational parameters of the project facilities described in the original agreement have been established and can be more clearly defined at this time.
WHEREAS, SIMI V ALLEY has staff on site who are qualified to operate and maintain the project pump station and hydropneumatic tanks, and tools and equipment appropriate for such work.
WHEREAS, CALLEGUAS would need to transport the staff, equipment, and materials to the site to maintain the pump station and hydropneumatic tanks.
WHEREAS, the operation of the project pump station and hydropneumatic tanks will need to be coordinated with the operation of the Simi Valley Wastewater Treatment Plant.
WHEREAS, SIMI VALLEY's on site staff could respond immediately to mechanical failures or changes in water quality which could occur in the course of facility operations.
WHEREAS, the PARTIES jointly have determined that the project pump station and hydropneumatic tanks would be operated and maintained most efficiently, cost effectively, and reliably by SIMI VALLEY staff who work at the Simi Valley Wastewater Treatment Plant.
UJ014.SR*
14 NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the PARTIES hereto agree as follows:
1. Section 3 of the Original Agreement shall be deleted in its entirety and the following revised Section 3 shall be added:
"3. CALLEGUAS shall construct and SIMI V ALLEY shall operate and maintain a metering device at the point of release of its recycled water to CALLEGUAS, capable of measuring the quantity of recycled water which is released to CALLEGUAS. This "Release Point" shall be located immediately downstream of the flow meter vault on the 24" diameter pipeline downstream of the recycled water pump station at the Simi Valley Wastewater Treatment Plant. Records of daily releases shall be made available to CALLEGUAS on a monthly basis."
2. Section 4 of the Original Agreement shall be deleted in its entirety and the following revised Section 4 shall be added:
"4. Delivery of recycled water to SIMI V ALLEY will be from the terminus of CALLEGU AS fucilities located adjacent to the Simi Valley Landfill. Within their respective realms of responsibility, the parties will use their best efforts to maintain a consistent minimum average hydraulic gradient of forty (40) pounds per square inch (psi) at the service connection."
3. Section 5 of the Original Agreement shall be deleted in its entirety and the following revised Section 5 shall be added:
"5. CALLEGUAS will own and be responsible for the design, permitting, construction, and rights-of-way of all Wholesale facilities. For the purposes of this Agreement, Wholesale facilities are defined as all the facilities needed to deliver recycled water from the Simi Valley Wastewater Treatment Plant up to the Simi Valley Landfill area including but not necessarily limited to pipelines, pump stations, and water tank(s). SIMI V ALLEY will be responsible for operations and maintenance of all Wholesale facilities upstream of the Release Point at the Simi Valley Wastewater Treatment Plant, which include diversion valves, a recycled water pump station, hydropneumatic tanks, a metering device, and related piping, appurtenances, and instrumentation. CALLEGUAS will be responsible for operations and maintenance of all Wholesale facilities downstream of the Release Point at the Simi Valley Wastewater Treatment Plant, which include pipeline and appurtenances downstream of the metering structure at the Simi Valley Wastewater Plant and upstream of the retail water meter vault at the Simi Valley Landfill."
4. Section 10 of the Original Agreement shall be deleted in its entirety and the following revised Section 10 shall be added:
"10. For the purposes of this Agreement, the term "Released Water" shall be defined as the recycled water purchased by CALLEGU AS from SIMI V ALLEY at the Release Point. In addition, "Released Water" shall be defined as the recycled water purchased by SIMI V ALLEY from CALLEGUAS at or near the terminus of CALLEGUAS's Wholesale Facilities. "
5. Section II of the Original Agreement shall be deleted in its entirety and the following revised Section 11 shall be added:
UlOI4.SR*
15 " 11. For the purposes of this Agreement, and in consideration of the promises set forth herein, CALLEGUAS will pay to SIMI V ALLEY an initial unit price of$129.64 per acre foot based on the volume of Released Water delivered by SIMI V ALLEY to CALLEGUAS and recorded at the Release Point. This unit price shall consist of three (3) price components:
Released Water Base Component
Simi Valley Operations & Maintenance Component
Pumping Component
Total Released Water Unit Cost
$79.00
$20.64
$30.00
$129.64
a. RELEASED WATER BASE COMPONENT: The initial unit price of this component shall be $79.00 per acre-foot. Effective each June 1 st after the effective date of this Amendment No.1 to the Agreement ("Adjustment Date"), the PARTIES agree to adjust the unit price per acre-foot of Released Water. This adjustment will be made based on a comparison of the difference per acre foot between the current cost of Metropolitan Water District of Southern California's (MWD) Full Service Water Rate (FSWR) and the MWD FSWR of the base year effective July 1, 2000 ($4311 AF). Said Calculation shall be as follows:
[Current Year FSWR - Base Year FSWR ($431)] + $79.00
= Current Year Released Water Unit Cost per Acre Foot
b. SIMI VALLEY O&M COMPONENT: The Simi Valley Operations and Maintenance (O&M) Component of the Released Water Cost shall pay for the fixed charges necessary for the operations and maintenance of the Wholesale Facilities for which SIMI V ALLEY is responsible. The initial Simi Valley O&M Component shall be $20.64 per acre-foot of recycled water released by SIMI VALLEY.
The Simi Valley O&M Component of the Recycled Water Unit Cost shall be subject to annual adjustment. Effective each January 1st after the effective date of Amendment No. 1 to the Agreement ("Adjustment Date"), the PARTIES agree to adjust the Simi Valley O&M Component unit price per acre-foot. The Simi Valley O&M Component adjustment will be made based upon a comparison of the Construction Cost Index (CCI) for the Los Angeles Region from the Engineering News Record for September of the current year and the CCI of the base year of September 2000 (7069.22). Said Calculation will be as follows:
Current Year CCI x $20.64 = Current Year O&M Unit Cost
7069.22
c. PUMPING COMPONENT: The Pumping Component of the Recycled Water Unit Cost shall pay for the electrical costs necessary to pump recycled water through the recycled water pump station at the Simi Valley Wastewater Treatment Plant at a sufficient hydraulic gradient to maintain system pressure. The initial Pumping Component of the Recycled Water Unit Cost shall be $30 per acre-foot of recycled water delivered by SIMI VALLEY to CALLEGUAS.
The Pumping Component of the Recycled Water unit costs shall be subject to armual adjustment. Effective each January 1st after the effective date of Amendment No. 1 to the Agreement (" Adjustment Date"), the PARTIES agree to adjust the Pumping Component unit cost per acre foot to reflect the actual price for electricity charged by Southern California UJOJ4.SR*
16 Edison to SIMI V ALLEY which CALLEGU AS will pay to SIMI V ALLEY until the next succeeding Adjustment Date.
d. The Adjusted Unit Price of Released Water determined by adding the three adjusted components shall then be the amount per acre-foot which CALLEGUAS shall pay to SIMI V ALLEY until the next succeeding Adjustment Date. e. Payments for Released Water shall be made by CALLEGUAS to SIMI V ALLEY monthly during the term of this Agreement. Payments due on or about the 15th of each month shall be for the month preceding, measured from the 1st through the end of the preceding month.
6. Section 12 of the Original Agreement shall be deleted in its entirety and the following revised Section 12 shall be added:
"12. The Pilot Project is in the service area of SIMI VALLEY.
CALLEGUAS will make available to SIMI V ALLEY recycled water at a service connection at or near the terminus of CALLEGUAS's wholesale facilities. For the purposes of this Agreement, and in consideration of the promises set forth herein, CALLEGUAS and SIMI V ALLEY agree to an initial Recycled Water Unit Cost of $360.73 per acre-foot of recycled water delivered by CALLEGUAS to SIMI VALLEY through the service connection. The initial Recycled Water Unit Cost per acre-foot shall consist of three (3) price components:
Capital Facilities Component
Released Water Component
Calleguas Operations and Maintenance Component
Total Recycled Water Cost
$230.00
$129.64
$1.09
$360.73
a. CAPITAL FACILITIES COMPONENT: For the purposes of this Agreement, the Capital Facilities Component of the Recycled Water Unit Cost shall pay for the capital expenditures necessary to construct the Wholesale water facilities. This unit cost of the Capital Facilities Component of the Recycled Water Unit Cost shall remain fixed ($230 per acre foot) over the term of this Agreement.
b. RELEASED WATER COMPONENT: The Released Water
Component of the Recycled Water Unit Cost shall pay for the cost to purchase Released Water as described in Section 11 of this Agreement. The initial unit cost of the Released Water Component shall be $129.64 per acre-foot. The Released Water Component shall be subject to annual adjustments as described in section 11a through lId of this Agreement. c. CALLEGUAS O&M COMPONENT: The CaIleguasOpernt:ions
and Maintenance (O&M) Component of the Recycled Water Unit Cost shall pay for the fixed charges necessary for the operation and maintenance of the Wholesale Facilities for which CALLEGUAS is responsible. The initial Calleguas O&M Component shall be $1.09 per acre foot of recycled water delivered by CALLEGU AS to SIMI VALLEY.
The Calleguas O&M Component of the Recycled Water Unit Cost shall be subject to annual adjustment. Effective each January 1st after the effective date of Amendment No. 1 to the Agreement ("Adjustment Date"), the PARTIES agree to adjust the Calleguas O&M Component unit price per acre-foot. The Calleguas O&M Component adjustment will be made based upon a comparison of the Construction Cost Index (CCl) for the Los Angeles Region UI014.SR*
17 from the Engineering News Record for September of the current year and the CCI of the base year of September 2000 (7069.22). Said Calculation will be as follows:
Current Year CCI x $1.09 = Current Year O&M Unit Cost
7069.22
d. The Adjusted Unit Price of Recycled Water determined by adding the three adjusted components shall then be the amount per acre foot which SIMI V ALLEY shall pay to CALLEGUAS until the next succeeding Adjustment Date. e. Payments to CALLEGUAS by SIMI V ALLEY for recycled water shall be based on the quantity of recycled water delivered by SIMI V ALLEY to satisfy customer demands. Payments shall be made to CALLEGUAS monthly during the term of this Agreement. Payments due on or about the 30th of each month shall be for the month preceding, measured from the 1st through the end of the preceding month. Payments to CALLEGUAS will commence the month following the first full month that recycled water is delivered for the Simi Valley "Pilot" Recycled Water Project."
7. All references to the terms "Reclaimed Water" and "Recycled Water" contained in the Agreement and the Original Agreement shall be deemed to mean the same thing and shall be used interchangeably.
8. To the extent applicable, the PARTIES acknowledge and waive the automatic five year termination provision set out in Section 19 of the Original Agreement.
9. Except as otherwise amended herein, all other terms and conditions of the Original Agreement shall remain in full force and effect.
UlO14.SR*
18 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.
Attest:
(k~.~~
Alice K. Redo
Assistant City Clerk/District Secretary
Approved 3S to Fonn:
DavDn~
City Attorney IDistrict Counsel
Approved as to Content:
Mike Sedell
City Manager I District Manager
Comrie Henes-Baird
Depu Director I Support Services
City of Simi Valley
Simi Valley, California
BY:~/AV~
!lliViS;Mayor of the City of
Shni Valley, California
CALLEGUAS MUNICIPAL WATER DISTRICT
By:
By:
UlO14.SR*
Ted Grandsen
President of the Board of Directors
Donald R. Kendall
General Manager
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