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HomeMy WebLinkAboutContracts & Agreements_192-2015_CCv0001.pdf AMENDMENT NO. 1 BACKUP COOLING WATER This Amendment No. 1 to the Agreement for the Cooperative Use of Unused Well Capacity,the Texas Grove Reservoir and the Central Feeder("Agreement")is entered into and effective this €,* day of U�,2015 ("Effective Date")by and between the City of Redlands ("City") and San Bernardino Valley Municipal Water District("Valley District"). City and Valley District are sometimes individually referred to herein as a"Party" and, together, as the "Parties." Recitals A. The Agreement for the Cooperative Use of Unused Well Capacity, the Texas Grove Reservoir and the Central Feeder ("Agreement")was entered into on the 2nd day of April, 2013 by and between the City and Valley District. B. Per Provision 3.d. of the Agreement,the Parties acknowledge that the Agreement is intended not only to serve as the basis for cooperative operations at the time the Agreement was executed, but it was also intended to serve as the basis for long-term cooperation. The Parties also agreed to consider amending the Agreement at appropriate times to reflect additional facilities and new opportunities to improve the conjunctive management of the SBBA and/or water supply reliability for the San Bernardino Valley. C. Valley District, in partnership with the San Gorgonio Pass Water Agency and the Department of Water Resources(DWR),is constructing the Citrus Pump Station that is located generally in the unincorporated area of Mentone. D. The Citrus Pump Station will have the ability to lift 160 cubic feet per second a total of 718 feet using eight pumps. E. The pumps will be water cooled. The primary source of water for cooling the pumps (cooling water) will be the water stored in the adjacent 400 acre-foot Citrus Reservoir. F. Per the pump manufacturer's specifications, each pump requires 75 gallons per minute of cooling water at a maximum temperature of 86°F. G. It is anticipated that the temperature of the water in Citrus Reservoir may reach, or exceed, 86'F for a short number of days each year. H. When the temperature of the water in Citrus Reservoir is too hot to be used for cooling water, Valley District will provide water from an alternate, suitable source (backup cooling water). I. Valley District owns a well on San Bernardino Avenue in City (San Bernardino Amendment No. 1 August 2015 Page 1 Avenue Well)that could be used to provide backup cooling water. J. City has regularly paid Valley District to pump the San Bernardino Avenue Well into the City water system. K. Because the City utilizes the San Bernardino Avenue Well, City would prefer that Valley District not use the well for backup cooling water. L. City and Valley District have jointly developed the terms of this Amendment that will provide backup cooling water to the Citrus Pump Station. M. All other terms and provisions of the Agreement remain in full force and effect. Agreements 1. City will provide backup cooling water to Citrus Pump Station a. Connection to City water line. City will accommodate a connection to City's water pipeline adjacent to the Citrus Pump Station and will install a water meter to measure the flow of backup cooling water. It is anticipated that the work will be performed by DWR's contractor in accordance with the plans approved by the City and inspected by the City. b. Payment by Valley District for connection to City water line. In addition to the costs to be paid by Valley District, as outlined in the Agreement, City will send Valley District an invoice for the following additional costs for installation of a City water meter: Plan Check Fee and City inspection fees. No other additional costs or fees will be paid by Valley District. Valley District will make such payment by electronic funds transfer into a fund approved by City. City shall provide Valley District with a written receipt, acknowledging payment in full, within 7 calendar days of the electronic funds transfer. C. Delivery of Water by City to Valley District. Valley District will take delivery of backup cooling water, as needed. 2. Valley District will compensate City for backup cooling water. Valley District shall compensate City for the backup cooling water provided by City using one of the methods below, in order of priority: a. Credit. Valley District will provide a credit on a Valley District invoice to City for the use of the San Bernardino Avenue well. The credit will be based on the volume of backup cooling water provided to Valley District by City. The credit will be calculated by dividing the total cost of the Valley District invoice to City by the total volume of water pumped to City during the invoice period to determine a cost per volume. The cost per volume will then be multiplied by the total volume of backup cooling water provided to Valley District by City to Amendment No. 1 August 2015 Pape 2 determine the dollar amount of the credit. The credit will then be applied to reduce the amount of the Valley District invoice to City. b. Exchange. Valley District, at its expense, will pump the same volume of backup cooling water provided by City to Valley District from the San Bernardino Avenue Well into City water system. C. Payment. If compensation by Credit or Exchange are not possible, then Valley District will pay City the actual production cost for the backup cooling water per the terms of the Agreement. 3. Term ofAmendment. This Amendment shall have an initial term of five (5) years from its Effective Date and shall automatically renew for subsequent five-year terms thereafter unless terminated as provided for in paragraph 4 below 4. Termination ofAmendment. Either Party may terminate this Amendment, with or without cause, by providing written notice of termination to the other Party at least one year prior to the conclusion of the then-current term of this Amendment. In the event that Valley District has not completed its compensation to City by Exchange, that obligation shall survive any termination of this Amendment. CITY OF REDLANDS SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT By: "'� By: Paul W. Foster, Mayor Mark Bulot, President, Board of Directors ATTEST: j Sam Ir n,- ity Clerk Gil Navarro, Secretary, Board of Directors Amendment No. 1 August 2015 Page 3