Third Priority Nondistrict Water Wheeling Agreement.executed.pdf
Extracted text (via pymupdf)
59185 characters
THIRD PRIORITY
NONDISTRICT WATER WHEELING
AND EXCHANGE AGREEMENT
BETWEEN
MARICOPA COUNTY MUNICIPAL
WATER CONSERVATION DISTRICT
NUMBER ONE
AND
CITY OF BUCKEYE
-i-
THIRD PRIORITY
NONDISTRICT WATER WHEELING
AND EXCHANGE AGREEMENT
BETWEEN
MARICOPA COUNTY MUNICIPAL
WATER CONSERVATION DISTRICT
NUMBER ONE
AND
CITY OF BUCKEYE
Table of Contents
Section
Page
RECITALS ....................................................................................................................... 1
AGREEMENT ................................................................................................................. 2
DEFINITIONS ................................................................................................................. 2
SCOPE OF SERVICE ..................................................................................................... 5
TERM ............................................................................................................................ 6
RATES, FEES AND CHARGES ...................................................................................... 6
CONVEYANCE LOSSES ................................................................................................ 9
PRIORITY OF SERVICE ............................................................................................... 10
RIGHT TO CONTRACT OR SUBCONTRACT .............................................................. 10
PERMITS ...................................................................................................................... 11
SCHEDULING AND ORDERING .................................................................................. 11
INTERRUPTIONS OR CURTAILMENTS IN DELIVERY ............................................... 14
WATER ACCOUNTING ................................................................................................ 16
BILLING AND PAYMENT .............................................................................................. 16
FACILITIES AND METERING ....................................................................................... 18
APPOINTMENT/DUTIES OF AUTHORIZED REPRESENTATIVES............................. 20
WATER QUALITY AND INDEMNITY ............................................................................ 21
-ii-
Section
Page
ACCESS TO PREMISES AND FACILITIES ................................................................. 22
GENERAL LIABILITY .................................................................................................... 22
UNCONTROLLABLE FORCES .................................................................................... 22
NOTICES ...................................................................................................................... 23
WAIVER ........................................................................................................................ 24
HEADINGS ................................................................................................................... 24
RECLAMATION REFORM ACT .................................................................................... 24
CONTRACT REOPENER ............................................................................................. 24
GOVERNING LAW........................................................................................................ 25
NO THIRD PARTY BENEFICIARIES ............................................................................ 25
ASSIGNMENT .............................................................................................................. 26
ENTIRE AGREEMENT ................................................................................................. 26
PROVISIONS REQUIRED BY LAW…………………………………………………………26
EXHIBIT A
EXHIBIT B
EXHIBIT C
THIRD PRIORITY
NONDISTRICT WATER WHEELING AND EXCHANGE AGREEMENT
This Third Priority Nondistrict Water Wheeling and Exchange Agreement
(“Agreement”) is made and entered into as of this 20th day of May, 2025, between CITY
OF BUCKEYE (“Contractor”), an Arizona municipal corporation and MARICOPA
COUNTY MUNICIPAL WATER CONSERVATION DISTRICT NUMBER ONE (“MWD”
or “District”), a municipal corporation and a political subdivision of the State of Arizona.
Hereinafter, MWD and the Contractor may be referred to singularly as “Party” or
collectively as the “Parties.”
RECITALS:
A.
Members of the District are owners of land within MWD having valid appropriative
rights to waters of the Agua Fria River. MWD is responsible for delivery to said
lands of waters developed, acquired, controlled or stored by it for the benefit of
such lands (“District Water”). District Water includes, but is not limited to, surface
water, groundwater, CAP water, water delivered to MWD for use in lieu of
groundwater, and exchange water.
B.
MWD operates and maintains a water delivery system on behalf of and for the
primary benefit of its members, to whom MWD is obligated to deliver District Water.
C.
Contractor has valid rights to the Nondistrict Water to be Wheeled or Exchanged
pursuant to this Agreement and has existing contracts to transport such water to
the MWD Water Delivery System.
2
D.
Contractor desires to Wheel Nondistrict Water through the MWD Water Delivery
System for use or Exchange by Contractor and has the authority to enter into this
Agreement for the Wheeling or Exchange of such water.
E.
MWD has determined that the Beardsley Canal has capacity available to Wheel
an amount of Nondistrict Water to entities in the west Salt River Valley and wishes
to assist those entities by providing the use of the Beardsley Canal to encourage
efficient regional water management practices. On the terms and conditions set
forth in this Agreement, MWD will Wheel or Exchange Nondistrict Water for
Contractor as an incident to its primary function; provided that the Wheeling or
Exchange of such water shall not in any way disrupt or interfere with the operation
of the MWD Water Delivery System on behalf of, or delivery of District Water to,
District members.
F.
Because the use of the MWD Water Delivery System for the delivery of water to
its members is the District’s primary purpose and a priority, this Agreement is
necessary for MWD to Wheel or Exchange Nondistrict Water for Contractor.
AGREEMENT:
In consideration of the promises and mutual covenants and agreements set
forth herein and other good and valuable consideration, the receipt and adequacy of
which is hereby acknowledged, the Parties agree as follows:
1.
DEFINITIONS.
As used in this Agreement the following terms, when capitalized, have the
meanings indicated:
1.1.
AF: Acre foot.
3
1.2.
Authorized Representative(s): Those representatives of the Parties
appointed to administer the provisions of this Agreement pursuant to Section 14.1.
1.3.
Conveyance Losses: The amount of water lost through seepage,
evaporation or other causes (such as theft, wildlife usages and other causes not within
MWD’s reasonable control) while being Wheeled or Exchanged within the MWD Water
Delivery System from the Point(s) of Receipt to the Point(s) of Delivery. Conveyance
Losses shall not include Evacuated Water.
1.4.
Evacuated Water: Water released from the MWD Water Delivery System:
a.
as a result of excess storm runoff;
b.
under emergency conditions; or
c.
in the event of the discovery of contaminated water in the MWD
Water Delivery System.
1.5.
Exchange: The Exchange of Nondistrict Water for District Water pursuant
to A.R.S. § 45-1001 et seq.
1.6.
Index: The Revised Consumer Price Index (All Urban Consumers, All
Cities, Base Period 1982–84 = 100), as published by the United States Department of
Labor Statistics, as adjusted to reflect any rebasing factor(s) for later base period(s), or if
such index ceases to be published, a similar generally recognized index selected in good
faith by MWD.
1.7.
Index Percentage: For calendar year 2026 and each subsequent calendar
year, a fraction (expressed as a percentage, e.g., 103/100 = 103%), the numerator of
which is the Index for October of the immediately preceding calendar year, and the
denominator of which is the Index for October 2005.
-4-
1.8.
MWD Turnout: The MWD pipeline and turnout facilities located
approximately five miles downstream of Camp Dyer Dam, at the Beardsley Canal station
number 272+13, which connect the CAP Canal to the Beardsley Canal.
1.9.
MWD Water Delivery System: The Beardsley Canal and appurtenant
facilities, including the MWD Turnout, Hank Raymond Lake, and the MWD replacement
outlet works at New Waddell Dam. For purposes of this Agreement, the MWD Water
Delivery System does not include any of the District’s other canals, laterals, pipelines or
other facilities.
1.10. Nondistrict Water:
a.
Water diverted for Contractor pursuant to this Agreement into the
MWD Water Delivery System from the Central Arizona Project (“CAP”).
b.
Any other water as agreed to by the Authorized Representatives.
1.11. Point(s) of Delivery: The point(s) designated in Exhibit A, hereto, at which
Nondistrict Water is diverted from the MWD Water Delivery System for delivery to
Contractor. Point(s) of Delivery may be added or deleted upon mutual agreement of the
Authorized Representatives. The Parties shall revise Exhibit A accordingly to reflect any
such additions or deletions.
1.12. Point(s) of Receipt: The point where the CAP Canal connects to the MWD
Turnout. This point is commonly referred to as “Big Mac” and is located at station number
748+19 on the Hayden-Rhodes Aqueduct of the CAP Canal. Additional Point(s) of
Receipt may be added or deleted upon mutual agreement of the Authorized
Representatives. The Parties shall revise Exhibit A accordingly to reflect any such
additions or deletions.
-5-
1.13. Second Priority: Wheeling or Exchange of water pursuant to agreements
with MWD in which the subject water is designated as Second Priority. Such agreements
may include agreements in which the Contractor agrees to take or pay for the Wheeling
or Exchange capacity, or otherwise provides a benefit to MWD, which MWD, in its sole
and absolute discretion, determines is greater than the benefits it receives under Third
Priority agreements. Second Priority is further described in Section 6 hereof and Exhibit
B hereto.
1.14. Third Priority: Wheeling or exchange of water pursuant to agreements
wherein the water wheeled or exchanged is designated as Third Priority. Third Priority is
further described in Section 6 hereof and Exhibit B hereto.
1.15. Wheeling: The transportation and conveyance of Nondistrict Water in the
MWD Water Delivery System.
2.
SCOPE OF SERVICE.
2.1.
This Agreement is limited to Wheeling or Exchange of Nondistrict Water in
the MWD Water Delivery System from the Point(s) of Receipt to the Point(s) of Delivery.
Contractor shall be responsible for and assume full liability for the further distribution of
Nondistrict Water received at the Point(s) of Delivery, including, but not limited to, all
operation and maintenance costs for delivery to Contractor’s end users.
2.2.
As and when agreed by the Parties, MWD shall Wheel Contractor’s
Nondistrict Water in the MWD Water Delivery System from the Point(s) of Receipt to the
Point(s) of Delivery, subject to Sections 6, 9 and 10 of this Agreement. This Agreement
and the operations hereunder are intended to be primarily Wheeling arrangements.
However, if the Wheeling of water is not feasible or desirable, or if the Exchange of water
-6-
provides greater scheduling flexibility, the Parties may exchange water. The decision as
to whether an Exchange is appropriate shall be by mutual agreement of the Parties.
3.
TERM.
This Agreement shall become effective as of June 1, 2025, upon
execution by both Parties, and shall remain in effect through
July 1, 2075 , unless
otherwise terminated in accordance with the provisions of this Agreement. The
term of this Agreement may be extended at any time by mutual agreement of the
Parties. This Agreement may be terminated by either Party, upon thirty (30) days’
written notice, if Nondistrict Water is not Wheeled or Exchanged hereunder for a
period of seven (7) consecutive calendar years.
4.
RATES, FEES, AND CHARGES.
4.1.
MWD shall bill Contractor and Contractor shall pay MWD $39.62, (the “Base
Rate”) for each AF of Nondistrict Water received at the Point(s) of Receipt whether or not
Contractor accepted or used such Nondistrict Water. For purposes of this Section 4, and
Sections 11 and 12 hereof, the amount of Nondistrict Water “received” at the Point(s) of
Receipt is the amount of water delivered to the Point(s) of Delivery, plus Conveyance
Losses and any Evacuated Water attributable to Contractor’s Nondistrict Water in
accordance with this Agreement. The amount of Nondistrict Water delivered to the
Point(s) of Delivery is the amount of water metered at the Point(s) of Delivery or, if not
metered for any reason, the amount of Nondistrict Water made available at the Point(s)
of Delivery, whether or not Contractor accepted or used such water. Any fractional AF
received which is equal to or greater than 0.5 AF will be rounded up to the next whole AF
for purposes of this Section 4 and Section 11 hereof. Any fractional AF received which
is less than 0.5 AF will be rounded down to the next whole AF for purposes of this Section
-7-
4 and Section 11 hereof. The Base Rate shall be adjusted each January 1, commencing
January 1, 2025 for the calendar year then commencing, to the greater of (i) the Base
Rate for the immediately preceding calendar year, or (ii) $25.00 multiplied by the Index
Percentage for the calendar year commencing on that January 1. If the Base Rate is
adjusted pursuant to the preceding sentence, the adjusted Base Rate will be the Base
Rate until it is again adjusted pursuant to the preceding sentence. Additionally, in
calendar year 2026 and thereafter, the then current Base Rate shall be subject to the
reopener provisions of Section 4.4.
4.2.
MWD also shall bill Contractor and Contractor shall pay MWD an annual
administration fee of $3,962.38, (the “Base Administration Fee”), which shall cover the
Point(s) of Receipt and the first Point(s) of Delivery listed on Exhibit A, and $792.48 (the
“Additional Base Administration Fee”) for each additional Point of Delivery, whether
separate or in common with that of another contractor. Each January 1, commencing
January 1, 2026 the Base Administration Fee and the Additional Base Administration Fee
shall be adjusted, for the calendar year then commencing, to the greater of (i) the Base
Administration Fee and the Additional Base Administration Fee for the immediately
preceding calendar year, or (ii) $2,500.00 (for the Base Administration Fee) and $500.00
(for the Additional Base Administration Fee) multiplied by the Index Percentage for the
calendar year commencing on that January 1. If the Base Administration Fee and the
Additional Base Administration Fee are adjusted pursuant to the preceding sentence, the
adjusted Base Administration Fee will be the Base Administration Fee and the adjusted
Additional Base Administration Fee will be the Additional Administration Fee until each
are again adjusted pursuant to the preceding sentence. Such fees shall be billed when
service is commenced, and in each January thereafter, and paid in accordance with
-8-
Section 12. The fees shall be prorated for those partial years of service resulting from
initiation or permanent termination of service at the Point(s) of Receipt or Point(s) of
Delivery. In calendar year 2026 and thereafter, the then current Base Administration Fee
and Additional Base Administration Fee shall be subject to the reopener provisions of
Section 4.4.
4.3.
Exhibit C hereto is an example of a calculation applying Sections 4.1 and
4.2 of this Agreement. Exhibit C is provided for illustrative purposes only, and the
assumptions and example rates and fees are not intended to be binding on either Party.
4.4.
Beginning in calendar year 2030 and thereafter, and in addition to any
changes resulting from the application of the Index Percentage, MWD may change the
rate or rate structure or the fees or fee structure hereunder at intervals occurring no more
frequently than five (5) years, based on changed circumstances, which include, but are
not limited to, canal improvements, destruction or impairment, changes in law, changes
in environmental regulations, and changes in technology, any of which have increased
the costs of providing the service hereunder beyond those increases in costs reflected by
the Index. For purposes of the foregoing, changed circumstances do not include overall
canal improvements, normal operation and maintenance, or improvements made for the
specific benefit of a third party.
a.
MWD must provide Contractor with written notice of the new rate and
rate structure or fees and fee structure and documentation to substantiate the
changed circumstances and the increased costs at least two hundred forty (240)
days before the new rate and rate structure or fees or fee structure become
effective.
-9-
b.
If Contractor declines to accept the new rate/rate structure or
fees/fee structure, Contractor may terminate this Agreement by giving written
notice to MWD at least sixty (60) days before the new rate and rate structure or
fees and fee structure become effective.
c.
If Contractor gives notice pursuant to Section 4.4.b, this Agreement
shall remain in effect for a period of one (1) year from the date of Contractor’s
notice, unless otherwise agreed to by the Parties. During this period, Contractor
shall pay the rate and fees determined pursuant to Sections 4.1 and 4.2, and shall
continue to have the same rights and priorities that Contractor would otherwise be
entitled to under this Agreement.
4.5.
If, as a result of the services provided by MWD to Contractor, or sums
received by MWD from Contractor pursuant to this Agreement, MWD becomes liable to
a governmental authority for any tax, tariff, duty, toll, fee, impost, penalty, interest, charge
or other exaction, or any increase thereof, MWD shall bill Contractor and Contractor shall
pay MWD the amount for which MWD is liable. Such amounts and payments shall be in
addition to any other amount due hereunder.
5.
CONVEYANCE LOSSES.
Contractor shall be assessed Conveyance Losses at the rate of 0.325
percent per AF per mile between the Point(s) of Receipt and the Point(s) of Delivery.
Using available data, MWD may review and, in MWD’s sole discretion, adjust such
Conveyance Loss rate based on annual average MWD Water Delivery System
Conveyance Losses during the preceding three years. Such adjusted rate shall remain
in effect until next adjusted. The failure to review and adjust such rate shall not be
deemed a waiver by MWD of the right to undertake such reviews and make such
-10-
adjustments, nor shall it be a breach of this Agreement. The Conveyance Loss rate also
shall be adjusted as provided in Section 10.1.f. Notwithstanding the foregoing, and
subject to Section 10.1.f, the Conveyance Loss rate shall not be changed prior to January
1, 2030, and, thereafter, not more than once in any three-year period.
6.
PRIORITY OF SERVICE.
Nondistrict Water may be Wheeled or Exchanged under this Agreement only to
the extent that such Wheeling or Exchange does not impair nor prejudice the delivery of
District Water to District members or the delivery of water with a higher priority than the
Nondistrict Water, as such priorities are described in Exhibit B hereto. The Nondistrict
Water Wheeled or Exchanged pursuant to this Agreement is “Third Priority,” as set forth
in Exhibit B hereto.
7.
RIGHT TO CONTRACT OR SUBCONTRACT.
7.1.
MWD retains the right to contract directly with other entities desiring
wheeling or exchange of water in the MWD Water Delivery System, including contracts
with a higher priority than this Agreement. MWD will provide Contractor with notice, prior
to contracting with another entity who will have a higher priority than the Contractor under
this Agreement.
7.2.
Contractor is expressly precluded from subcontracting its rights under this
Agreement to a third party without MWD’s prior written consent, which shall be in MWD’s
sole and absolute discretion. Absent MWD’s consent, any attempted subcontracting shall
be void. Notwithstanding the foregoing, Contractor may subcontract under this
Agreement to a parent, subsidiary or affiliate, or in connection with a corporate
restructuring, upon written notice to MWD of such subcontract. Notwithstanding the
-11-
existence of any subcontract, Contractor shall remain liable and responsible for fulfilling
the terms and conditions of this Agreement.
8.
PERMITS.
8.1.
Prior to an Exchange of water pursuant to this Agreement, MWD shall
acquire any necessary water exchange permit for this Agreement from the Arizona
Department of Water Resources. Contractor shall assist MWD with any such permit
application, as requested by MWD, and shall reimburse MWD for the costs associated
with acquiring such permit. MWD will consult with Contractor with respect to the
anticipated costs associated with acquiring any such permit. Upon receipt of the water
exchange permit, MWD may divert District Water for Exchange purposes as provided in
this Agreement.
8.2.
Contractor shall be responsible for obtaining and maintaining all permits
(other than the water exchange permit) required for the Wheeling or Exchange of
Nondistrict Water pursuant to this Agreement, and for the discharge of Nondistrict Water
into the MWD Water Delivery System. MWD shall cooperate with Contractor in obtaining
any necessary permit. Denial of any necessary permit shall not result in liability of either
Party to the other.
9.
SCHEDULING AND ORDERING.
9.1.
The amounts, times, and rates of delivery of Nondistrict Water to Contractor
during each calendar year shall be in accordance with a monthly water delivery schedule
for that year (the “Monthly Schedule” or “Monthly Scheduling”). The Monthly Schedule
shall be determined as follows:
a.
On or before September 1 of each year, Contractor shall submit to
MWD its desired monthly water delivery schedule for Nondistrict Water for the
-12-
following calendar year, along with an indication of how much flexibility the
Contractor has in adjusting the desired schedule.
b.
Upon receipt of the desired schedule, MWD shall review the
schedule and may make such modifications to the schedule as are necessary or
convenient so that the amounts, times, and rates of delivery to Contractor are
consistent with the transportation capability of the MWD Water Delivery System,
considering, among other things, losses, deliveries of District Water to District
members, the availability of water, and the delivery schedules of all other
contractors, subject to the priorities described in Exhibit B hereto.
c.
On or before the third Thursday of September of each year, MWD
shall furnish Contractor with the Nondistrict Water delivery Monthly Schedule for
the following calendar year, subject to CAP approval. MWD and Contractor shall
cooperate and coordinate in submitting the Monthly Schedule to CAP. Upon
receiving written confirmation of CAP approval, MWD will use its good faith efforts
to meet and accommodate such Monthly Schedule during the calendar year.
9.2.
The Monthly Schedule may be amended from time to time upon written
notice to MWD and at the request of Contractor, to the extent MWD and CAP can
reasonably accommodate the request without disrupting other delivery commitments or
the operation of the MWD Water Delivery System. Contractor shall provide written
confirmation of CAP approval of any such change.
9.3.
Contractor shall provide MWD notice of Contractor’s daily Nondistrict Water
orders (“Daily Order” or “Daily Ordering”) and any subsequent Daily Order changes, in
accordance with operating procedures established by MWD. Operating procedures
established by MWD shall provide that, in the event of a pending canal capacity
-13-
curtailment, MWD shall give Contractor as much advance notice as reasonably
practicable of the pending curtailment. The Daily Order may be changed upon notice to
MWD and at the request of Contractor, to the extent MWD and CAP can reasonably
accommodate the request without disrupting other delivery commitments or the operation
of the MWD Water Delivery System.
9.4.
The Parties recognize that it may be necessary for MWD to develop
operating procedures to better define and address Monthly Scheduling (Sections 9.1 and
9.2) and Daily Ordering (Section 9.3). Any such procedures will be developed in
consultation with Contractor, but will ultimately be in MWD’s sole discretion.
9.5.
Both Wheeling and Exchange of Nondistrict Water shall be subject to
operational and maintenance constraints common to all Parties served by the MWD
Water Delivery System. Although the Parties understand and acknowledge that actual
daily deliveries to Contractor may vary slightly from the amount of Nondistrict Water
scheduled and ordered by Contractor, MWD shall use good faith efforts to deliver to the
Point(s) of Delivery the amount of Nondistrict Water scheduled by Contractor in the
Monthly Schedule and ordered in the Daily Order, less Conveyance Losses and
Evacuated Water, subject to the provisions in Sections 6 and 10 hereof. MWD shall
schedule and monitor the Wheeling or Exchange of Nondistrict Water so as not to
interfere in any manner whatsoever with the operation and maintenance of the MWD
Water Delivery System, the delivery of District Water to District members or the delivery
of water with a higher priority than Nondistrict Water, as such priorities are described in
Exhibit B hereto.
-14-
10.
INTERRUPTIONS OR CURTAILMENTS IN DELIVERY.
10.1. Both Wheeling and Exchange of Nondistrict Water shall be in accordance
with Monthly Schedules approved pursuant to Section 9 hereof, and shall be subject to
all of the following:
a.
The delivery of District Water to District members, who shall have
first priority to the use of the MWD Water Delivery System.
b.
Other deliveries of higher priority than Nondistrict Water as described
in Exhibit B hereto.
c.
Interruptions, curtailments or schedule changes related to the
Wheeling or Exchange of Nondistrict Water to Contractor’s recharge facilities, if
any. This subpriority for deliveries to recharge facilities is described in Exhibit B
hereto. Any such interruption, curtailment or schedule change shall not affect
Contractor’s ability to receive such Nondistrict Water at a later time when the
delivery can be accommodated.
d.
Interruptions and curtailments in the capability of MWD to Wheel or
Exchange Nondistrict Water due to emergencies, weather, unplanned canal dry
up, operational constraints, coincident system demand or unplanned necessary
maintenance and repairs of the MWD Water Delivery System, all as determined
solely by MWD. Planned canal dry up and planned maintenance and repairs will
be taken into account in developing the Monthly Schedule pursuant to Section 9
hereof.
e.
Interruptions or curtailments to better manage actual Conveyance
Losses. MWD may interrupt or curtail deliveries to Contractor when the system
demand for delivery of District Water to MWD members, drops below 15 cfs and
-15-
the combined system demand for all deliveries drops below 40 cfs (the “Minimum
System Demand”). MWD may, in its sole discretion, adjust the Minimum System
Demand upon thirty (30) days’ written notice to Contractor. Such adjusted
Minimum System Demand shall remain in effect until next adjusted. Upon
agreement by MWD, Contractor may avoid any such interruption or curtailment
by agreeing to accept the actual losses during the relevant time period. If
Contractor is not the only entity scheduling water during such period, MWD shall
confer with Contractor in good faith to determine Contractor’s share of actual
losses.
f.
Interruptions, evacuations and curtailments which MWD, in its sole
and absolute discretion, may determine are necessary because of excess
stormwater runoff entering the MWD Water Delivery System, or ongoing or
anticipated material degradation of water quality in the MWD Water Delivery
System attributable to the introduction into the MWD Water Delivery System of
either Nondistrict Water or contamination or contaminated water from any source.
To the extent that it is necessary to evacuate water because of excess
stormwater runoff entering the MWD Water Delivery System, the amount of water
evacuated, up to the amount of such runoff, will be considered stormwater and
not Contractor’s Nondistrict Water.
g.
No obligation on the part of MWD to replace any portion of Nondistrict
Water evacuated from the MWD Water Delivery System.
h.
Availability of Nondistrict Water at the Point(s) of Receipt, as
determined by MWD.
-16-
10.2. Service Interruptions, curtailments, and evacuations addressed in Sections
10.1c through 10.1.f shall be allocated in accordance with Exhibit B.
11.
WATER ACCOUNTING.
11.1. MWD shall provide a monthly report of the total amounts of Nondistrict water
received during the month each day at the Point(s) of Receipt and at each Point of
Delivery. Such water accounting report shall include the amounts of Nondistrict Water
ordered, scheduled and received at the Point(s) of Receipt, the amount of Nondistrict
Water delivered to each Point(s) of Delivery, the amount of Conveyance Losses, and the
amount of Evacuated Water, if any, during that month.
11.2. In the event that Nondistrict Water deliveries at the Point(s) of Delivery are
less than the amount of Nondistrict Water received on Contractor’s behalf at the Point(s)
of Receipt, less Conveyance Losses and Evacuated Water, MWD shall return to
Contractor the shortage water as soon as practicable after the shortage is discovered, in
accordance with the operating procedures developed by MWD. There shall be no
obligation to return such shortage if the shortage is the result of Contractor’s inability or
refusal to take delivery of water received on Contractor’s behalf at the Point(s) of
Receipt.
11.3 In the event that Nondistrict Water deliveries at the Point(s) of Delivery are
more than the amount of Nondistrict Water received on Contractor's behalf at the
Point(s) of Receipt, less Conveyance Losses and Evacuated Water, Contractor shall
return the overage water to MWD as soon as practicable after the overage is discovered,
in accordance with the operating procedures developed by MWD.
12.
BILLING AND PAYMENT.
12.1. Bills for amounts owed to MWD by Contractor shall be submitted by MWD
to Contractor on or before the fifteenth (15th) day of each month (or if such day is not a
business day, on the next succeeding business day) immediately following the moth
during which Contractor has incurred charges for such services. Such bills may include
-17-
adjustments or corrections to bills previously submitted by MWD to Contractor. Billing
adjustments will not exceed a six (6) month period.
12.2. Payment by Contractor to MWD shall be made in good funds on or before
the twenty-fifth (25th) day following the date on which the bill was postmarked or if such
day is not a business day, on the next succeeding business day. Bills which are not paid
by this date shall be delinquent and thereafter accrue interest until paid at a rate (the
“Rate”) which is the higher of (a) 18 percent per annum or (b) the Prime Rate plus two
percent (2%) per annum. Interest accrued during any calendar month pursuant to the
preceding sentence or this sentence shall accrue interest at the Rate from the first day of
the following month until paid. The Prime Rate is a fluctuating annual rate of interest
equal to the “prime rate” (or any substitute terminology such as “base rate”) as publicly
announced from time to time by Bank of America, N.A., a national banking association,
or its successor, as an index used by it for pricing commercial loans. The Prime Rate
shall change on the same day as each such public announcement of a change therein.
If the Prime Rate (as described above) ceases, for any reason, to be established or
publicly announced, the Prime Rate will thereafter be a similar publicly announced or
published banking interest rate (or average of rates) selected in good faith by MWD. Any
payment received shall be applied first to any interest charges owed, and then to any bills
owed for service rendered.
12.3. In the event any portion of any bill is disputed, the disputed amount shall be
paid under protest when due and shall be accompanied by a written statement indicating
the basis for the protest. If the protest is found to be valid, Contractor shall be refunded
any overpayment plus interest, accrued at the rate set forth in Section 12.2, prorated by
-18-
days from the date payment was credited to Contractor to the date the refund check is
mailed.
12.4. In the event any delinquent amount is not paid by Contractor within twenty-
five (25) business days after Contractor receives written notice of the delinquency,
MWD shall have the right, without liability of any kind, to refuse to Wheel or Exchange
Nondistrict Water so long as the delinquent amount remains unpaid, and MWD
may terminate this Agreement. Nothing herein shall limit the rights of MWD to use any
other available legal remedy to effect collection of the delinquent amounts and all
interest thereon.
13.
FACILITIES AND METERING.
13.1. MWD shall design, construct, install, operate and maintain all system
improvements at the Point of Delivery which MWD determines are reasonably necessary
and appropriate for the Wheeling or Exchange of Nondistrict Water contemplated by this
Agreement. Such system improvements include, but are not limited to, turnouts, gates,
meters and controls. MWD shall consult with Contractor regarding the design,
construction and installation of such improvements, and shall provide Contractor with an
estimate of the cost of such design, construction and installation.
13.2. To the extent system improvements other than those described in Section
13.1 are necessary or desirable in order to Wheel or Exchange Nondistrict Water, such
improvements and the terms and conditions under which such improvements are made,
shall be as mutually agreed to by the Parties.
13.3. Contractor shall, upon receipt of one or more invoices from MWD,
reimburse MWD for all costs incurred by MWD related to the design, construction and
installation of the system improvements made pursuant to Section 13.1 hereof. In
addition, Contractor shall, upon receipt of one or more invoices from MWD, reimburse
-19-
MWD for all costs incurred by MWD for the repair, replacement or betterment of such
system improvements during the term of this Agreement. All such costs include, but are
not limited to, a reasonable amount for MWD oversight and administration, and a
reasonable charge for the use of District personnel for such design, construction,
installation, repair, replacement or betterment. MWD shall include appropriate supporting
documentation with any invoices submitted by MWD.
13.4. MWD will own, operate and maintain all system improvements made
pursuant to Section 13.1, including all facilities within the Beardsley Canal right-of-way
and all facilities from the Beardsley Canal right-of-way to and including the meter(s) at the
Point(s) of Delivery.
13.5. MWD shall maintain the accuracy of the meter(s) serving Contractor as
close to zero error as practical, but in no event shall error exceed plus or minus five
percent (5%) of actual flow. At least once every year, unless otherwise agreed by the
Authorized Representatives, MWD shall recalibrate such meter(s) as close to zero error
as practical. MWD shall notify Contractor at least thirty (30) days in advance of planned
recalibration so that Contractor may observe the procedure. Contractor may, at
reasonable times, at its sole expense and after reasonable notice to MWD, test or have
tested such meter(s) to determine its accuracy.
13.6. In the event that water accounting records or any routine or special test of
the meter(s) disclose a flow measurement error that exceeds the limits provided in
Section 13.5, all bills and water accounting affected by such limits having been exceeded
shall be adjusted by MWD based on the best available data, as determined by MWD and
reasonable business judgment. However, adjustments shall not encompass more than
one hundred eighty (180) days.
-20-
13.7. Contractor bears the cost of any system improvements required for its future
Point(s) of Delivery that are specific to Contractor’s needs, and for any repair,
replacement or betterment of previously installed system improvements related to
deliveries hereunder. MWD shall consult with Contractor and provide a cost estimate
regarding the design, construction and installation of any such system improvements, and
regarding any repair, replacement or betterment of previously installed system
improvements. However, Contractor shall not be required to be responsible for any such
costs which were incurred prior to the commencement of this Agreement. Costs for which
Contractor is responsible shall be invoiced and handled in the manner described in
Section 13.3 hereof.
14.
APPOINTMENT/DUTIES OF AUTHORIZED REPRESENTATIVES.
14.1. MWD and Contractor each shall appoint an Authorized Representative and
an alternate to administer Sections 14.1.a through 14.1.e. The alternate may act only in
the absence of the Authorized Representative. Any decision or agreement of the
Authorized Representatives shall be documented in writing and signed by both
Authorized Representatives. The Authorized Representatives:
a.
May review the operating procedures as developed by MWD
pursuant to Section 9.4 for implementing the provisions herein.
b.
May add or delete Point(s) of Delivery pursuant to Section 1.11.
c.
May add or delete Point(s) of Receipt pursuant to Section 1.12.
d.
May agree to Wheeling or Exchange in the MWD Water Delivery
System of the Nondistrict Water defined in Section 1.10.b and shall establish
any water quality or other limitations on the Wheeling or Exchange of such
water. Priority for Wheeling or Exchange of such water is "Third Priority," in
accordance with Exhibit B.
e. Shall approve the manner of access pursuant to Section 16.
-21-
f.
Shall arrange for the return of water by the owing Party, pursuant
Sections 11.2 and 11.3 hereof.
14.2. Each Party shall notify the other Party in writing within thirty (30) days after
execution of this Agreement of the designation of its Authorized Representative and
alternate and shall promptly notify the other Party of any subsequent changes in such
designation.
14.3. The Authorized Representatives shall have no authority to modify, amend
or supplement this Agreement, other than as expressly provided in this Section 14.
15.
WATER QUALITY AND INDEMNITY.
15.1. MWD neither guarantees nor warrants the quality of water Wheeled or
Exchanged through the MWD Water Delivery System to Contractor pursuant to this
Agreement, and Contractor assumes all responsibility for purifying or otherwise treating
Nondistrict Water received at Contractor’s Point(s) of Delivery to meet applicable water
quality standards established by federal, state or local authorities.
15.2. Nothing in this Agreement shall be construed so as to require that MWD
receive, Wheel or Exchange water from any source when such receipt, Wheeling or
Exchange is likely to result in a violation of then existing federal, state or local laws or
regulations regarding water quality.
15.3. Contractor shall indemnify and hold MWD harmless for, from and against
all claims, penalties, costs, liabilities, damages or losses of any kind, including reasonable
attorneys’ fees and costs, arising from (a) the acts or omissions of Contractor, its
employees or agents, (b) the delivery of water by Contractor to others, (c) the use of
water by Contractor or others to whom Contractor has delivered water or (d) the
introduction of Nondistrict Water to or the Wheeling or Exchange of Nondistrict Water in
the MWD Water Delivery system, including, but not limited to, water quality degradation
due to commingling of Nondistrict Water in the MWD Water Delivery System.
-22-
16.
ACCESS TO PREMISES AND FACILITIES.
Contractor grants to MWD, its employees and agents a right of access to
the premises identified in Exhibit A, at reasonable times and after reasonable notice from
MWD, for such purposes as installing, connecting, reading, testing, repairing, adjusting,
disconnecting, removing or inspecting meters, measuring devices, communications
equipment, data devices and other apparatus and equipment pertinent to the provision of
or accounting for services under this Agreement. Right of access under this Section
shall be in a manner approved by the Authorized Representatives.
17.
GENERAL LIABILITY.
(a) To the extent permitted by law, Contractor shall indemnify, defend, save,
and hold harmless MWD from any and all claims caused by the negligent or willful acts,
errors or omissions of City.
(b) To the extent permitted by law, MWD shall indemnify, defend, save, and hold
harmless Contractor and each council member, officer, official, employee or agent of the
Contractor (any such person or entity called a “Contractor Indemnified Party”) from any
and all claims caused by the negligent or willful acts, errors or omissions of MWD.
18.
UNCONTROLLABLE FORCES.
Neither Party shall be considered to be in default in the performance of any of its
obligations hereunder (other than obligations of Contractor to make payment for service
hereunder) when a failure of performance is due to uncontrollable forces. The term
“uncontrollable forces” shall mean any cause beyond the control of the Party unable to
perform such obligation, including, but not limited to, failure of or threat of failure of
facilities; flood; earthquake; storm; fire; lightning; other natural catastrophes; epidemic;
-23-
terrorism; war; riot; civil disturbance or disobedience; strike; labor dispute; labor or
material shortage; sabotage; government priorities or restraint by court order or public
authority; or action or nonaction by, or failure to obtain the necessary authorizations or
approvals from, any governmental agency or authority, which by exercise of due diligence
such Party reasonably could not have been expected to avoid and which by exercise of
due diligence it is unable to overcome. Nothing contained herein shall be construed to
require either Party to settle any strike or labor dispute in which it is involved.
19. NOTICES.
Any notice, demand or request provided for in this Agreement shall be in
writing and delivered in person, or sent by registered or certified mail, postage prepaid,
to:
For Mailing:
Maricopa Water District
P. O. Box 900
Waddell, Arizona 85355-0900
Reference: Nondistrict Water Wheeling Agreement
(With a copy to MWD’s Authorized Representative)
For Hand Delivery:
Maricopa Water District
14825 West Grand Avenue
Surprise, Arizona 85374
Reference: Nondistrict Water Wheeling Agreement
(With a copy to MWD’s Authorized Representative)
For Mailing and Hand Delivery:
City of Buckeye
Attn: Water Director
21749 W. Yuma RD., Suite 107
Buckeye, AZ 85326
City of Buckeye
Attn: City Manager
530 East Monroe Avenue
Buckeye, Arizona 85326
City of Buckeye
Attn: K. Scott McCoy, City Attorney
530 East Monroe Avenue
Buckeye, Arizona 85326
-24-
20. WAIVER.
The waiver by either Party of any breach of any term, covenant or condition
herein contained shall not be deemed a waiver of any other term, covenant or condition,
or any subsequent breach of the same or any other term, covenant or condition herein
contained.
21. HEADINGS.
Title and paragraph headings herein are for reference only and are not part
of this Agreement.
22. RECLAMATION REFORM ACT.
In no event shall MWD’s performance of obligations under this Agreement
subject MWD or its members to provisions of the Reclamation Reform Act of 1982
(“RRA”), 43 U.S.C. § 390bb (1), as amended, or regulations implementing the RRA to
which MWD would not otherwise have been subjected. Further, in the event that a
change of legislation, future federal agency determination or other administrative or
judicial action subjects or purports to subject MWD to the RRA as a result of MWD’s
performance of obligations under this Agreement, this Agreement may be terminated by
either Party by giving the other Party written notice of termination. Notwithstanding the
foregoing, to the extent practicable, MWD will notify Contractor and confer with Contractor
regarding any threatened application of the RRA, prior to voiding this Agreement.
23. CONTRACT REOPENER.
a. Either Party may request that this Agreement be modified because of
extraordinary circumstances. For purposes of this Section 23,
“extraordinary circumstances” are circumstances which were not
reasonably foreseeable by the Parties, are beyond the Parties’ control, and
-25-
have resulted in a substantial change in either Party’s benefits or obligations
under the Agreement.
b. This Section 23 is intended to apply to events including, but not limited to,
changes in legislative authority, enactment of new environmental
requirements, destruction of canals, changes in water rights and changes
in technology.
c. If a Party requests that this Agreement be modified pursuant to this Section
23, the Parties agree to negotiate in good faith to reach a reasonable and
equitable modification of this Agreement.
d. The Party requesting the modification has the burden of showing that the
event causing the request for modification meets the requirements of
Section 23.1 and that the modification requested is reasonable and
equitable to both Parties.
e. This Section 23 does not preclude the Parties from modifying this
Agreement by mutual consent for reasons that do not meet the
requirements of Section 23.1.
24. GOVERNING LAW.
This Agreement is made under, and shall be governed by, the laws of the
State of Arizona.
25. NO THIRD PARTY BENEFICIARIES.
This Agreement is solely for the benefit of the Parties, and does not create
nor shall it be construed to create rights in any third party. No third party may enforce the
terms and conditions of this Agreement.
26.
ASSIGNMENT.
-26-
26.
ASSIGNMENT.
This Agreement shall be binding upon and inure to the benefit of the
successors and assigns of the Parties. Contractor shall not assign this Agreement or
the rights and privileges herein, in whole or in part, without the prior written consent of
MWD, which consent shall be in MWD’s sole and absolute discretion. Absent MWD’s
consent, any attempted assignment shall be void. Notwithstanding the foregoing,
Contractor may assign this Agreement to a parent, subsidiary or affiliate, or in
connection with a corporate restructuring, upon written notice to MWD, which notice
shall contain an agreement in writing by the Contractor’s assignee to abide by the
terms and conditions of this Agreement. Notwithstanding any assignment, Contractor
shall remain primarily liable and responsible for fulfilling the terms and conditions of
this Agreement, unless MWD otherwise agrees in writing, which agreement shall be in
MWD’s sole discretion.
27. ENTIRE AGREEMENT.
The terms, covenants and conditions of this Agreement constitute the
entire Agreement between the Parties, and no understandings or obligations not herein
expressly set forth shall be binding upon them. This Agreement may not be modified or
amended in any manner unless in writing and signed by the Parties.
28.
PROVISIONS REQUIRED BY LAW.
This Agreement is subject to cancellation pursuant to the provisions of Ariz. Rev.
Stat. § 38-511. To the extent Ariz. Rev. Stat. §§ 35-393 through 35-393.03 are applicable,
MWD hereby certifies that as of the Effective Date it is not currently engaged in, and
agrees for the duration of this Agreement to not engage in, a “boycott” of goods or
services from Israel, as that term is defined in Ariz. Rev. Stat. § 35-393. To the extent
applicable under Ariz. Rev. Stat. § 35-394, MWD warrants and certifies as of the Effective
Date that it does not currently, and agrees for the duration of this Agreement, that it will
-27-
not use the forced labor, any goods or services produced by the forced labor, or any
Contractors, subcontractors, or suppliers that use the forced labor or any good or services
produced by the forced labor of ethnic Uyghurs in the People’s Republic of China. If MWD
becomes aware that it is not in compliance with Ariz. Rev. Stat. § 35-394, MWD shall
notify the City of the noncompliance within five (5) business days of becoming aware of
it. If the City request a written certification in writing that MWD has remedied the
noncompliance, and MWD fails to provide such written certification within 180 days of the
request, this Agreement shall terminate unless the termination date of this Agreement
occurs before the end of the remedy, in which case this Agreement terminates on the
Agreement termination date. To the extent applicable under Ariz. Rev. Stat. § 41-4401,
MWD warrants as of the Effective Date that it is in compliance with all federal immigration
laws and regulations relating to employees and compliance with the E-verify requirements
under Ariz. Rev. Stat. § 23-214(A).
Exhibit A
Page 1 of 3
THIRD PRIORITY
NONDISTRICT WATER WHEELING
AND EXCHANGE AGREEMENT
BETWEEN
MARICOPA COUNTY MUNICIPAL WATER
CONSERVATION DISTRICT NUMBER ONE
AND
CITY OF BUCKEYE
EXHIBIT A
Point(s) of Delivery for City of Buckeye
Number of Miles Between
Point of Receipt (Big Mac)
Point of Delivery
and Point of Delivery
1.
EPCOR
14.01 miles
White Tanks Water Treatment Plant
(Approx. 1,500 feet North of Cactus Road
on the Beardsley Canal)
Page 2 of this Exhibit is a map depicting the locations of the Point(s) of Delivery,
Point of Receipt and the MWD Turnout. Page 3 of this Exhibit is a map depicting
the premises to which MWD has a right of access pursuant to Section 16 of this
Agreement.
MARICOPA
COUNTY
MUNICIPAL
WATER CONSERVATION DISTRICT
NUMBER ONE, a municipal corporation
and a political subdivision of the State of
Arizona
By
Date
CITY
OF
BUCKEYE,
an
Arizona
municipal corporation
By
Date
CITY OF BUCKEYE
White Tanks Water
Treatment Plant
Sin: 748+19
✓
CAP Hayden-Rhodes Aqeduct
I
POINT OF RECEIPT
0
d IMWD TURNOUT
Stn: 272+13
Beardsley Canal
R2W
RlW
'
10
11
12
7
•
•
"
15
14
13
,.
17
" ...
V -
21
22
23
,-.
24 +
20
21
- ----
27
"
25
30
"
2B
TO WICKE
BURG
< "1,,,
34
35
"
31
32
33
1
2 ·1-
z
•
2
1
•
•
•
;!
.,.
...
.?'
•
10
12
RTW / .
R2W
4
5 6
"
15
14
17
"
LAT. 1
r--..
1!(
21
22
23
:
21
LAT. 2
I
5✓ I
"
27
30
l\..
2B
LAT. 3
/I
7
/, 8
z
33
,.
3J
"
I-LAT. 4111;1.JIJ ,,.,,~
!!
z
PAAXWAY ,..,
:
;
: ·1
I
3
2
1
•
5
•
LAT. 5
12
_J,
g
)
10
11
7
'
LAT. 6
I
15
14
I,,
,. r.,
"
10
1
\
15
14
22
23
WICKEN_I; RG
c--- 27
,. ------
34
'5
r--,...,__
'-....
$
3
-----
10 r-,,.__
15
/ r-/
)*
22
23
27
"
34
'5
.. 3.-
l/
2
10
11
15
14
22
23
27
"
34
,.
9
<= '
10 /
,v
5
14
LAT. 7 ,J ---
I POINT OF DELIVERY!
I,
I Stn: 11011+65
I
n-
Beardsley Canal
22
2
23
23
•
"
20
21
LAT. 8
,.
27
26
5
30
29
,_ ,,
"
LAT. 9
ll
34
35
•
31
-L..
33
34
35
¼I\T
10
l
"-
z
I
1
p
3
2
1
•
/'
3
2
LAT. 11
;f
,;:
C//
"'''
§ 12 ;I
/OIICE
10
11
10
11
a
VI
LAT. 12
0
I 13 .._,..
- •
15
14
18
17
16
15
14
LAT. 13
;
-i
I
2
22
23
"
"
20
21
22
23
LAT. 14,
29
27
"
/
2
5
30
29
"
_ __,,__ 1----3',..._
LAT. 15
.
z
33 r
35
38
31
32
33
34
35
p
J
eOotrell Rd.
z
., ..
·-1
;::
/
J '
3
1
•
5 .
.
rRd
K
..
!
R2\V
-
Ii.
RlW
Ii.
Ii.
12
flUlll.¶LK/PLEA
·v ::,
10
11
'
IITTW1
SNIT
.
¸
15
\
13
17
p
16
14
¹E'I/ WADDELL DHt
i/
24 . -4
< !
" p '
• "
I
,_
,,.----..._
# '
1;,\ j,,
20/.,
.,., ..... Rd.
321)\ I \
"
"
\
33
:
34
'5
Cloud Rd,
'%
1
6
2
.....,._...,r,_ u. .
i) 1,
'>-
&
-:::__ '
Dov■ Vot11r11
-
13
" )"
i'
Lon■ 1.1-n Rd,
I
24
" " I
Db1rit.:i Rd.
A
" lOt,J
;(,
1
/
"
-•- R
1
,?,
5
Ho"°"' Vol
Rd.
12
.i\
•
P°IMCIClt P k Rd
1/
I
13
I.
1
1
--·
moo <.
24
2
J
202001
; "
30
2
--..
"'
'·6
JI
"l
170
1
»
•
5
15400
"'
12
7
•
13800
1
D
\ g \I\
1 HO$£
11
;
I
;
j
If
145
15
{I
21 l"
,. It
27
} I
/·
3
•
1º
rfi.
"
·1
21
22
2,
27 I
33
1
34
•
3
•
10
r
(
I 23
28
,.
2
11
14
23
26
35
2
11
13 >
?@
1
/
15
14
1220o/
,F
=,
23
•
"
20
l..
I
1'
'1!
A
30
" I
"
27
i,
)
B
•
31
32
33
34
35
ow (
(
•
•
3
2
)
7000
ft/
1 I
7
•
•
10
11
..
8000 y.
3
17
"
15
14
= J
i r/'.
19
20
21
22
23
..
41 ,,
JU
JJI ..
"'
"
"'°
D
"
31
32
33
34
35
1 E
• i
. E
' E
3
½
2 ¾
F
G
i
H
!
I
I
k
Ii.
5
;i_
Ii.
;i_
ls
Ii. !
I
! u u rn
i7
M
u¿
2
12
7 y
13
17
II'
rt_
19 / lr-./
}' (
"
29
36 l) 31
"
J •
5
··•-a:!fftf
V12
TO 1-17
7
•
13
"
17
19
20
" I'\
29
"
31 0
1
• .
12
7
•
13
1B
17
24
"
20
"
30
"
38
31
1
•
5
12
7
•
13
"
17
"
"
20
25
30
"
i\:6
31
32
\.' .
12
:\ •
\.
13
"
24
"
20
"
JO
,.
"
31
32
"Cl
l>
Cl
"
m
1 ¾
E
E
N
•
5
J
I
I;
0
L ..
w
EXHIBIT A
CITY OF BUCKEYE
WHITE TANKS WATER
TREATMENT PLANT
POINT OF DELIVERY
Stn: 1,011+65
Beardsley Canal
WADDELL RD.
MWD RIGHT OF ACCESS
PURSUANT TO SECTION 16
Beardsley Canal ROW
CACTUS RD.
w ... ... ...
D:
w
D,,
EXHIBIT A
PAGE 3 of3
Exhibit B
Page 1 of 2
THIRD PRIORITY
NONDISTRICT WATER WHEELING
AND EXCHANGE AGREEMENT
BETWEEN
MARICOPA COUNTY MUNICIPAL WATER
CONSERVATION DISTRICT NUMBER ONE
AND
CITY OF BUCKEYE
EXHIBIT B
WATER DELIVERY PRIORITY
Priority for delivery (or Wheeling or Exchange) of water in the MWD Water Delivery System:
First Priority:
Delivery of District Water to MWD members from any existing and/or future
sources, including water exchanged for member use and water used to
augment or replace member supplies, but not including Exchanges under
this Agreement or exchanges under similar agreements. This First Priority
also includes delivery of 450 acre feet of water per annum pursuant to the
Agreement between MWD and F. N. Bard, dated March 5, 1952.
Second Priority: Wheeling or exchange of water pursuant to agreements with MWD in which
the subject water is designated as Second Priority. Such agreements may
include agreements in which the Contractor agrees to take or pay for the
wheeling or exchange capacity, or otherwise provides a benefit to MWD,
which MWD, in its sole and absolute discretion, determines is greater than
the benefits it receives under Third Priority agreements.
During any MWD Water Delivery System capacity interruption or
curtailment, Second Priority water will be delivered in accordance with their
respective priorities, to Second Priority contractors who have ordered
water.
Within this Second Priority, there is a Monthly Scheduling and Daily
Ordering subpriority for water being delivered to a recharge facility. Such
deliveries may be interrupted, curtailed or rescheduled before other water
of equal or higher priority is interrupted or curtailed. Any such interruption,
curtailment or schedule change shall not affect Contractor’s ability to
receive such Nondistrict Water at a later time when the delivery can be
accommodated.
Third Priority:
Wheeling or exchange of water pursuant to agreements wherein the water
wheeled or exchanged is designated as Third Priority. During any MWD
Water Delivery System capacity interruption or curtailment, Third Priority
Exhibit B
Page 2 of 2
water will be delivered pro rata to Third Priority contractors who have
ordered water.
Within this Third Priority, there is a Monthly Scheduling and Daily Ordering
subpriority for water being delivered to a recharge facility. Such deliveries
may be interrupted, curtailed or rescheduled before other water of equal or
higher priority is interrupted or curtailed. Any such interruption, curtailment
or schedule change shall not affect Contractor’s ability to receive such
Nondistrict Water at a later time when the delivery can be accommodated.
In the event that water must be evacuated from the MWD Water Delivery System, or flows
into the MWD Water Delivery System must be interrupted or curtailed, lower priority water
will be affected first. Notwithstanding the foregoing, to the extent that it is necessary to
evacuate water because of excess stormwater runoff entering the MWD Water Delivery
System, the amount of water evacuated, up to the amount of such runoff, will be considered
stormwater and not Contractor’s Nondistrict Water.
Exhibit C
THIRD PRIORITY
NONDISTRICT WATER WHEELING
AND EXCHANGE AGREEMENT
BETWEEN
MARICOPA COUNTY MUNICIPAL WATER
CONSERVATION DISTRICT NUMBER ONE
AND
CITY OF BUCKEYE
EXHIBIT C
EXAMPLE CALCULATION OF BASE RATE,
BASE ADMINISTRATION FEE AND
ADDITIONAL BASE ADMINISTRATION FEE
Assume
Index for October 2005: 199.2
Index for October 2023: 307.7
Index for October 2024: 315.6
Initial Base Rate: $25
Initial Base Administration Fee: $2,500
Initial Additional Base Administration Fee: $500
Then
Index Percentage for 2023 is 154.47% (307.7 ÷ 199.2)
Index Percentage for 2024 is 158.41% (315.6 ÷ 199.2)
Base Rate for 2023 is $39.63 (129.77% x 25.00)
Base Rate for 2024 is $39.62 (158.43% x 25.00)
Base Administration Fee for 2023 is $3,863.05 (154.47% x 2,500.00)
Base Administration Fee for 2024 is $3,962.38 (158.41% x $2,500.00)
Additional Base Administration Fee for 2023 is $772.61 (154.47% x $500.00)
Additional Base Administration Fee for 2024 is $792.48 (158.41% x $500.00)
The foregoing examples are for illustrative purposes only, and each Index Percentage
shall be determined by the actual relevant Indices, and the Base Rate, Base
Administration Fee and Additional Base Administration Fees may be further modified after
2012 pursuant to Section 4.4 of the Agreement.