HomeMy WebLinkAboutC-3096 - Agreement (for Wetlands Water Supply Project)uc�J
AGREEMENT
This Agreement is entered into this 17th day of July , 1996, by and between
the Orange County Water District (OCWD) , the Irvine Ranch Water District (IRWD), and
the City of Newport Beach (City).
A. The Parties support projects which beneficially use Reclaimed Water (for
purposes of this Agreement, the term "Reclaimed Water" generally means water which
fully satisfies Title 22 standards), without adversely impacting the environment and which
are cost effective or have positive cost benefit ratios;
B. IRWD is the proponent of the Wetlands Water Supply Project (WWSP)
which consists of a two (2) year Demonstration Phase (Demonstration Phase) and a
subsequent Permanent Phase (Permanent Phase). The Demonstration Phase and the
Permanent Phase each contemplate a winter (October 1 through March 31) discharge of
a maximum of five (5) million gallons per day (mgd) of Reclaimed Water into waterfowl
ponds (Duck Ponds) for a seven (7) day detention period with subsequent discharge into
San Diego Creek and a summertime San Diego Creek "low flow" diversion component;
C. IRWD's implementation of WWSP will achieve the following objectives
(collectively referred to as Project Objectives):
1. Provide a source of water to irrigate the Duck Ponds and marsh mitigation
areas (MMA's) consistent with the WWSP Environmental Impact Report (EIR) and
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IRWD's obligations pursuant to the Grant Deed from The Irvine Company (TIC) to IRWD
dated December 28th, 1995.
2. Use Reclaimed Water for beneficial purposes.
3. Reduce the amount of nutrients flowing into Newport Bay during the
summer
4. Modify the amount of contributions to the County Sanitation District of
Orange County ( CSDOC) to more closely correspond with actual IRWD usage of CSDOC
facilities.
5. Provide data relative to water quality and existing flora and fauna in
Newport Bay that would be useful to the Santa Ana Regional Water Quality Control Board
(SARWQCB) in setting standards pursuant to the Clean Water Act to protect and
enhance bay water quality.
D. On July 1, 1996, SARWQCB approved Orders 96 -2 (the Permit) and 96 -3
which authorized IRWD to implement WWSP subject to certain conditions and
restrictions,
E. City has been actively seeking measures which would allow the scientific
community to better evaluate the potential impacts of WWSP and alleviate concerns
expressed by certain members of the public and the scientific community about possible
impacts of WWSP on Newport Bay, without interfering with IRWD's ability to achieve all or
substantially all of the Project Objectives;
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F. The Parties have identified a series of actions, projects, and permits (Basic
Integrated Reuse Project) pursuant to which some of the Reclaimed Water otherwise
used in conjunction with WWSP would be transmitted to OCWD for beneficial use or
lawful disposal.
G. IRWD and City have identified additional actions or projects which; if
implemented, could achieve Project Objectives on an interim basis, and possibly on a
permanent basis, with discharge reductions or no discharge of Reclaimed Water into San
Diego Creek or Newport Bay
H. The Parties desire to establish the terms and conditions pursuant to which
they are willing to implement those components of the Basic Integrated Reuse Project,
modify the amount of Reclaimed Water to be discharged pursuant to the Permit, establish
the criteria that must be satisfied to preclude discharge of Reclaimed Water pursuant to
the Permit for the period from October 1, 1996 to March 31, 1997 and to identify the
additional issues that must be resolved to achieve, or possibly exceed, Project Objectives
without Reclaimed Water discharges.
1. BASIC INTEGRATED REUSE PROJECT:
The Basic Integrated Reuse Project consists of the components specified in this
Section. The Parties shall perform in accordance with their respective obligations
provided all conditions precedent have been satisfied.
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A. GREEN ACRES PHASE II (GAP 11). GAP II is a water pipeline with a
nominal capacity of 7.8 mgd to be constructed from the current terminus of OCWD's
"Phase I" facility to the point of intersection with the Intertie as determined in the ASL
Study and then extended to Newport Beach to serve End - users. OCWD shall pay the
entire cost of GAP II. OCWD shall commence the design of GAP II when City has
contributed $500,000 toward End -user retrofits which will increase the cost - benefit ratio of
GAP II to 1.5 or more, and shall commence construction of GAP II when City has
complied with its obligation to obtain End -user Agreements;
B. INTERTIE. The Intertie is a water pipeline with a nominal capacity of 7.8
mgd to be constructed between the Michelson Water Reclamation Plant (MWRP) and
GAP 11. IRWD shall pay the entire cost of designing and constructing the Intertie. IRWD
shall commence the design of the Intertie when City has contributed $500,000 to OCWD
for GAP 11 and shall authorize OCWD to commence construction of the Intertie when City
has complied with its obligation to obtain End -user Agreements.
C. OCWD FLOW ACCEPTANCE COMMITMENTS. OCWD shall accept at
least 4.6 mgd, and up to 7.8 mgd, of Reclaimed Water from IRWD (the additional 3.2 mgd
is sometimes referred to as Excess Flows) during the period from October 1 through
March 31. These commitments are subject to the following conditions:
(1) Completion of GAP II and the Intertie;
(2) The execution of a written agreement between CSDOC and OCWD
pursuant to which CSDOC commits to accept from OCWD at least 4.2 mgd of Reclaimed
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Water during the period from October 1 through March 31 for a period of fifteen (15)
years, and to pay OCWD for the Reclaimed Water at a rate per acre foot equal to
OCWD's cost to treat secondary water to a tertiary standard;
(3) IRWD's commitment to supply 4.6 mgd of Reclaimed Water on a
continuous basis for the fifteen (15) year term of this Agreement;
(4) IRWD's commitment to supply a total of 7.8 mgd of Reclaimed Water (the
4.6 mgd described in 1.C(3) and an additional 3.2 mgd) on a basis to permit peaking by
OCWD up to 7.8 mgd for up to fifteen percent (15 %) of any twenty -four (24) hour period
for the fifteen (15) year term of this Agreement;
( 5) IRWD's commitment to sell at least 4.6 mgd of Reclaimed Water for no
more than fifty percent (50 %) of the price CSDOC pays OCWD for the Reclaimed Water
and to receive no consideration for any Reclaimed Water in excess of 4.6 mgd except to
the extent that OCWD receives consideration for the sale of some or all of the Excess
Flows to any third party and, as appropriate, the framework for determining that
consideration;
(6) IRWD's commitment to resolve, in good faith, issues related to water
subsidies for Reclaimed Water, and Reclaimed Water transmission rates during peak
period of demand; and
D. IRWD's FLOW TRANSMISSION COMMITMENTS. IRWD shall transmit at
least 4.6 mgd of Reclaimed Waiter to OCWD during the period from October 1 through
March 31 subject to the following:
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(1) Completion of GAP II and the Intertie;
(2) Satisfaction of the conditions precedent to OCWD's Flow
Acceptance Commitments;
(3) OCWD's payment for at least 4.6 mgd of Reclaimed Water at a rate
not to exceed fifty percent (50 %) of the price CSDOC pays OCWD for the Reclaimed
Water;
E. CITY COMMITMENTS. City commits to do the following;
(1) Obtain fully executed End -user Agreements with Major Purchasers
of Reclaimed Water within the corporate limits of City (Big Canyon Country Club and
Newport Beach Country Club are among the End -users considered to be Major
Purchasers and agreements with them are essential). City shall use its best efforts to
obtain these agreements on or before October 1, 1996. OCWD and City shall amend the
Green Acres Agreement to allow for the sale of Reclaimed Water above the current price
ceiling.
(2) City shall contribute $500,000 towards End -user retrofits which will
increase the cost benefit ratio of GAP II to 1.5 or more. IRWD will loan City the $500,000
at a rate of interest equal to 6.4% , with the loan to be repaid over fifteen (15) years in
annual payments beginning twelve (12) months after the receipt of the loan. The loan
proceeds will be available within thirty (30) days after a written request of IRWD submitted
by City at any time subsequent to the effective date of this Agreement.
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2. CONSTRUCTION OF BASIC INTEGRATED REUSE PROJECT:
A. The Parties agree that OCWD will be designated as the lead agency for the
construction of GAP II and the Intertie. The Parties agree to use their best efforts to
ensure that GAP II and the Interne are constructed and installed on or before October 1,
1997. Toward that end, the Parties agree to do the following:
(1) OCWD agrees to phase the construction of GAP II such that the
initial portion of the facility to be constructed is the pipeline from the current terminus of
Phase I to the point of connection with the Interne (generally at the intersection of
University and Jamboree);
(2) OCWD agrees to consolidate the construction of the Interne and
GAP II under the same contract, with the same construction management;
(3) The Parties agree to use their best efforts to expedite permit
issuance, permit review, or plan check, including the assignment of personnel capable
and willing to expedite, review or approve necessary plans or permits.
B. City, OCWD, and IRWD each agree to pay up to one third of the cost, not to
exceed $30,000 each, of retaining engineering consultant who shall act as a Project
Manager to implement and coordinate the timely completion of all components of the
Basic Integrated Reuse Project.
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3. FLOW CONSIDERATIONS
A. IRWD and OCWD agree to meet and confer to develop mutually acceptable
adjustments to the flow commitments specified in this Agreement in the event of any
change in winter Reclaimed Water demand, provided, however, IRWD will not initiate
discharge of any Reclaimed Water into San Diego Creek as a result of any flow
commitment modification implemented pursuant to this subsection.
B. In the event IRWD's ability to deliver 4.6 mgd of Reclaimed Water is
interrupted or reduced due to operational conditions or other circumstances; and it is
necessary for OCWD to supply Reclaimed Water from another source, IRWD will pay
OCWD at one -half the CSDOC rate for the Reclaimed Water supplied by OCWD during
such period.
4. WWSP DISCHARGE REDUCTIONS
A. In consideration of City's commitments pursuant to Subsection 4.13 (1) -(4)
and Section 5, IRWD agrees not to discharge more than 3.2 mgd of Reclaimed Water
pursuant to the Permit.
B. In consideration of IRWD's commitment to reduce WWSP discharges, City
agrees;
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(1) Not to file an appeal of the Permit;
(2) Not to file or support any legal challenge to the Permit or the WWSP
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(3) To request modification of AB 3344 to facilitate implementation of
some or all of the provisions of this Agreement.
(4) To support amendment of IRWD's consolidated NPDES permit to
authorize use of reclaimed water in the MMA's for irrigation of vegetation in a manner that
does not result in any discharge of Reclaimed Water to San Diego Creek.
5. INTERIM WWSP DISCHARGE RESTRICTIONS
IRWD agrees not to discharge Reclaimed Water pursuant to the Permit during the
period from October I, 1996 through and including March 31, 1997 subject to satisfaction of
the following:
A. CSDOC agrees, on or before October 1, 1996, to calculate IRWD flows to
CSDOC for the purpose of determining Capital Outlay Revolving Fund and Annual Equity
Adjustment as if IRWD was exercising the Permit pursuant to provisions of this
Agreement (discharging 3.2 mgd of reclaimed water into San Diego Creek);
B. SARWQCB acknowledges that the additional modeling and monitoring as
determined pursuant to Subsection C will, if used with the data derived from a simulated
two month operation of the VWVSP (actual operation except for discharge) satisfy the first
year of the Demonstration Phase;
C. City and IRWD shall, on or before September 1, 1996 agree on any
modifications to the intemal monitoring program, the external monitoring program, and the
model used to analyze the potential impacts of the discharge necessary or appropriate to
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ensure the most accurate scientific evaluation of the Demonstration Phase of WWSP.
City and IRWD shall cooperate with SARWQCB staff in evaluating modifications to the
monitoring program required by the Permit to ensure scientific accuracy of the
Demonstration Phase without increasing the costs of monitoring above those required to
evaluate WWSP in accordance with the Permit. City shall fund the initial costs
associated with the additional or modified monitoring or modeling up to a maximum of
$15,000. IRWD shall fund additional costs in excess of the City's initial contribution up to
a maximum of $30,000 ($15,000 from City and $15,000 from IRWD). City and IRWD shall
attempt to reach agreement regarding any additional costs in excess of $30,000 .
D. City has obtained fully executed End -user Agreements with the Major
Purchasers;
E. In the event the preconditions to "no discharge" (A,B,C and . D of this
Section) have not been satisfied on or before October 1, 1996, IRWD shall be entitled to
discharge up to 3.2 mgd of Reclaimed Water only if it has received all necessary permits,
approvals and authorizations, provided, however, IRWD shall cease discharge of
Reclaimed Water pursuant to the Permit if all preconditions to "no discharge" have been
satisfied on or before December 1, 1996, the cessation of discharges will not prejudice
IRWD and the City pays for any costs associated with the cessation of discharges.
F. In the event the preconditions to "no discharge" are fully satisfied on or
before October 1, 1996, and subsequent to the simulated operation of WWSP as well as
at least two months of the summertime low flow diversion, City and IRWD shall meet and
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confer relative to preparation of, and then issue, a joint report on the data received during
monitoring and, to the extent that science will permit, any conclusions that can
reasonably be drawn from the data. This report, which shall be presented to the Newport
Beach City Council, the IRWD Board of Directors and the SARWQCB shall address, at a
minimum, the following:
(1) Nutrient and other constituent reductions achieved in the Duck
Ponds during the winter and summer;
(2) The extent to which WWSP discharges would impact nutrient and
other constituent levels in Newport Bay during the winter and summer,
(3) The extent to which the discharges would function to stimulate or
arrest the growth of algae and other plant - life;
(4) The location and extent of salinity dilution as well as the likely impact,
if any, on flora and fauna in and around Newport Bay; and
(5) The public health risks, if any, posed by the discharges.
G. In the event there is no discharge of Reclaimed Water pursuant to the
Permit during the period from October 1, 1996 through March 31, 1997, then the initial
discharge pursuant to the Permit shall commence on October 1, 1997 at the rate of 3.2
mgd subject to further reduction or elimination pursuant to Section 6.
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6. LONG TERM "NO DISCHARGE" SCENARIO
A. City and IRWD agree to use their best efforts to reach agreement on ways
to fully achieve Project Objectives without the discharge of Reclaimed Water into San
Diego Creek or Newport Bay. City and IRWD acknowledge that development of a long
term "no- discharge" scenario requires the resolution of the issues identified in this
section.
B. OCWD has expressed a willingness to accept 7.8 mgd of Reclaimed Water
from IRWD on a continuous basis during the period from October 1 through March 31 if it
has the ability to beneficially use, or lawfully dispose of, excess flows. The Parties have
been advised that disposal of excess flows directly into the outfall facility maintained by
CSDOC is feasible and is estimated to cost approximately $100,000. Accordingly, by
January, 1997, there must be an agreement between the City and IRWD regarding the
preparation of, and payment for, all necessary environmental documents, the processing
and approval of all necessary permits, the design and construction of any physical facility
necessary to discharge, and payment of all costs related to the actual discharge or
transmission of, that portion of the excess flows that OCWD is unable to beneficially use.
C. To satisfy Project Objectives and its obligations pursuant to the Grant Deed,
IRWD must have a reliable source of water to irrigate the Duck Ponds and the MMA's
from October 1 through March 31. Possible sources of irrigation water include San
Diego Creek and Reclaimed Water which is retreated and distributed to IRWD's
customers. Diversion of flows from San Diego Creek during the winter will involve the
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construction of an instream facility which may require environmental documentation and
mitigation. The cost of construction is uncertain as is the source of funding. IRWD is
uncertain about operational feasibility issues, including the cost to retreat Reclaimed
Water used to irrigate the Duck Ponds and MMA's. City and IRWD shall discuss, in good
faith, the irrigation alternatives, the responsibility for implementing the preferred
alternative and the funding of any costs associated with the preferred atemative.
D. WVVSP has the potential to significantly reduce nutrients in Newport Bay
during the summer. The external monitoring program and the baseline characterization
studies will provide the SARWQCB with information helpful to establishment of standards
pursuant to the Clean Water Act and other actions which will improve bay water quality.
City and IRWD will attempt, in good faith, to reach agreement on continued summertime
creek diversions, monitoring, and other activity important to improvement in bay water
quality in the event IRWD is not obligated to do so because it is not discharging pursuant
to the Permit.
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(7) TERM.
The term of this Agreement shall expire at the end of the fifteen year period
described in Section 1 (C) (2)
Approved as to Form:
Counsel
Approved as to Form:
By EA!�—
General
Counsel
Orange County Water District
Approved as to Form:
Irvine Ranch Water District
By ti
Presi nt, Boa_ Directors
By
Secretary
Orange County Water District
President, Board of Directors
By:lj—), '&J'aw 4/�&Jw
General Manager
City of Newport Beach
By BY
ity Attorney City ager
FAcat\burnham\irwdocw2. doc
7/16/96
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