San Diego County Water Authority - Emergency StorageMEMORANDUM OF UNDERSTANDING BETWEEN THE SAN
DIEGO COUNTY WATER AUTHORITY AND THE CITY OF
POWAY REGARDING THE EMERGENCY STORAGE
PROJECT
The San Diego County Water Authority ( "SDCWA ") and the City of Poway
( "Poway ") have executed this memorandum of understanding ( "MOU ") with respect to
the SDCWA's Emergency Storage Project ( "ESP ").
INTRODUCTION
The ESP consists of development of new and enhancement of existing pumps,
pipelines, dams, reservoirs and other facilities and improvements that, upon
completion, will result in approximately 90,100 acre - feetof additional water
storage capacity under the ownership and control of the 'SDCWA for use when the
SDCWA's imported water supplies are interrupted or reduced due to a of
supplies from its regular sources or a failure of an imported water facility
(Emergency). In addition to providing emergency water storage capacity, the ESP
will enhance the SDCWA's operational flexibility and water deliverycapabilities
for the benefit of its member agencies.
In furtherance of the ESP, SDCWA has entered into a contract with the Olivenhain
Municipal Water District,, including that certain "Agreement between the San
Diego County Water Authority and the Olivenhain Municipal Water District for
the Emergency Storage Project (Joint Use of Olivenhain Reservoir Site)"
[ Olivenhain Agreement].
In furtherance of the ESP, SDCWA has entered into contracts with the City of San
Diego, including that certain "Agreement between the�San Diego County Water
Authority and the City of San Diego for the Emergency Storage Project
(Expansion: of San Vicente Reservoir)" and that certain "Agreement between the
San Diego County Water Authority and the City of San Diego for the Emergency
Storage Project (Joint Use of Lake- Hodges Dam and Reservoir)." [San Diego
Agreements] which allow, the SDCWA, in exchange for the benefits and
consideration specified in the San Diego Agreements, to utilize the facilities and
infrastructure of the City of San Diego in furtherance of the regional goal of
maintaining adequate emergency storage for the entire San Diego region.
4. During.the planning and approval process for ESP, SDCWA made certain
assumptions regarding.the amount of water in local water supplies and storage
owned and controlled by the various SDCWA member agencies. However, these
assumptions were made for planning purposes only and SDCWA.has not relied
and is not relying on any specific amount of water that is or may be available to
Powav on account of its local supplies or storage.
In furtherance of the ESP, SDCWA has entered into, or anticipates entering into,
numerous other contracts necessary for the implementation of the ESP as
described in the Final`Environn7ental Impact Statement / Environmental Impact
Report as certified by the SDCWA Board of Directors.
6. The timely and successful�completion of the ESP is critical to the ability of the
SDCWA to meet the emergency water storage needs within its jurisdiction and to
prevent economic disruption and personal suffering caused by limited water
supplies. The businesses and people of San Diego County have endured extensive
shortages of water in recent years. It is imperative that the ESP be completed a
timely fashion, making effective use of the limited financial resources of the
public in general and the SDCWA in particular, in order to reduce hardship and
meet water needs in a water shortage emergency.
SDCWA and Poway desire to provide mutual commitments and assurances to the
financing, construction, maintenance and operation of the ESP for the, public
health, safety and welfare. Poway has requested the establishment of its
commitments and assurances through a long -term contract.
STATEMENTS OF UNDERSTANDING
SDCWA will construct the ESP in phases as a multi- yearproject with each phase
of construction to be, awarded and completed according to the terns of the
Olivenhain and San Diego Agreements.
A long -term agreement, based upon this Memorandum of Understanding, will be
developed between SDCWA and Poway. Until that long -term agreement is made,
SDCWA and Poway, as a matter of legislative commitment but not contract, agree
to abide by the terms of this - Memorandum of Understanding.
3. Only after a member agency complies with SDCWA Resolution No. 2000 -7 will
the SDCWA permit the'member agency not to participate in ESP or its funding.
SDCWA water stored pursuant to the ESP will be available for delivery to
SDCWA member agencies whenever the SDCWA's imported water supplies are
interrupted or reduced such that the SDCWA is unable to obtain imported water to
supplement local supplies so thaCits member agencies can meet 75 percent of their
demands. The ESP facilities will also be available for use in non - emergency
situations to enhance the operational flexibility .and _ water delivery capabilities of
the SDCWA for the benefit.of its member agencies and to maintain the water
quality of SDCWA's stored water. Except as necessary for water quality and
operational exchanges as set forth in the Reservoir Regulating Plans to be
developed pursuant to the Ulivenhain and San Diego Agreements, SDCWA water
stored for emergencies in ESP facilities will not be used by SDCWA for delivery
to its member agencies whenever the SDCWA is able to. obtain imported water
from the Metropolitan Water District of Southern California (MWD), or other
sources, in amounts sufficient to supply its member agencies with water.
�. The SDCWA will establish revenues for the ESP as follows:
a. The basic formula for ESP revenues is: Total Annual Revenue Requirement for
ESP (debt service and operation and maimenance,costs) minus ESP Pro Rata
Share of Taxes and Charges (property tax or tax in lieu payments plus standby
charge plus capacity charge plus infrastructure access charge naulliplied by ESP
percentage of total capital cost) equals Amount of Revenue to be Generated by
ESP Charge Payable as a User or Service Charge for Water.
b. Beginning on January 1 of each calendar year, the ESP Charge will be
apportioned to Poway according to the ratio obtained by dividing the amount
of imported water received (hnported Water Supply) by Poway over the five
previous fiscal years (July I through June 30) by the amount of imported water
received by all member agencies over the five previous fiscal years. The
Imported Water supply shall be the sum of the imported water Poway receives
from facilities owned by the SDCWA or MWD. The amount of Imported
Water Supply will be calculated based upon a 5 -year rolling average beginning
with the five most recent fiscal years of the SDCWA, updated annually (e.g.,
the calendar year 2001 ESP Charge would be based on the historic average of
Imported Water Supply for the1996 through 2000 fiscal years). Agricultural
customers have agreed during emergencies to a reduction in deliveries at twice
the rate of system -wide reductions (Agricultural Water). The additional water
made available through these reductions (Additional Agricultural Cutback
Water) will be made available to commercial and industrial customers. Neither
local water transported through local facilities nor Agricultural Water, would
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be included in thedetermination of the historic average of Imported Water
Supply received by Poway.
c. The ESP Charge will be applied to all SDCWA member agencies except
member agencies', if any, that are not participating in ESP pursuant to SDCWA
Resolution No. 2000 -7.
SDCWA and Poway will fix Poway's payment obligation in a long -term contract
according to the formula set, forth in paragraph 5.
The SDCWA will administer ESP water as follows:
a. When the water supply available to the region, including -imported water and
local supplies (Regional Water Supply), drops.below 100 percent of demand
due to an Emergency,.the SDCWA will estimate theAuration of the
Emergency and the amount of imported water supplies that remain available.
Then the SDCWA, will determine the level of service that each member agency
could expect without the delivery of water from,the ESP during the estimated
duration of the Emergency. Such determination will be based upon:
i. The estimated demands of each member agency for the duration of the
emergency, and
ii. The estimated amount of water available from Local Supplies for the
duration of the emergency, up to an amount of water no greater than four
average months of demand.
Should there be insufficient Regional Water Supplies to meet a minimum of 75
percent.of system -wide demand, water from the ESP will be used to
supplement Regional Water Supplies to maintain a 75 percent, or if
sustainable, a higher, system -wide level of service.
c. When water is allocated during emergencies, the Additional Agricultural
Cutback Water will be allocated to commercial and industrial customers to
raise their level of service above the system wide level to the extent possible.
d. Should there be insufficient supplies available to the region, including ESP
supplies (Total Regional Water Supplies), to meet a minimum of 75 percent of
system -wide demand, the SDCWA will allocate Total Regional Water Supplies
to the extent possible such that supplies 'to customers receiving Agricultural
Water will be reduced at twice the rate of system-wide reductions, and that all
remaining demands will be supplied in amounts sufficient to provide an equal
level of service.
e. In determining the amount available to each member agency from its Local
Supplies, the SDCWA will consider all sources of water owned available, or
under the operational control of the member agency that the SDCWA estimates
would meet a demand for water in the member agency's tservice area during
the estimated duration of the Emergency, up to a limit of four average months
of demand. These sources include water stored in surface water reservoirs or
groundwater basins, water recycling projects, brackish groundwater
desalination, seawater desalination, or any other locally controlled and
available supply that can help meet that agency's demand for water during the
estimated duration of the emergency. In determining Local Supplies available
to amember agency, the SDCWA will also takeJnto consideration the physical
capacity of an agency's water distribution system and its actual ability to
deliver water for end uses.
The SDCWA does not expect any member agency to maintain any specific
amount of water in storage for emergencies.
Recycled water supplies will be deducted from an agency's total water demands
prior to determining its 75 percent level of service. This is because during an
emergency it is expected that recycled water customers will continue to receive
100 percent level of service unless physically interrupted due to the emergency
and, recycled supplies are distributed through an independent system pursuant to
health and safety regulations that restrict reclaimed water use.
10. The description in this.MOU of the typical process to be used by SDCWA for the
allocation of ESP water is not intended to give SDCWA any control over Poway's
local supplies. Such control, if any, must be based upon a separate agreement
between SDCWA and Poway or other delegation in the event of a duly declared
emergency, Unless otherwise authorized by law in an emergency or by contract
with Poway, SDCWA will request the cooperation of Poway to utilize Poway's
local supply to meet the needs of one or more of the SDCWA's other member
agencies. Such cooperation by Poway shall be at Poway's sole discretion.
11. With respect to�the implementation of the Olivenhain and San Diego Agreements,
SDCWA will coordinate with Olivenhain and San Diego; respectively, to jointly
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eliminate impacts on their respective facilities, consistent with the terms of the
Olivenhain -arid San Diego Agreements.
12. The SDCWA will develop a Water Shortage Management Plan for Authority
water, including ESP water, which is consistent with the terms of this MOU, the
Olivenhain Agreement, and the San Diego Agreements.
SAN DIEGO COUNTY
WATER AUTHORITY
Maureen A. S aple on
General Manager
CITY OF POWAY
1 es Howelt
ector of Public Services
S Gerounsel
City of Poway
Approved as to form and legality: