1. Cyclic Storage Agreement with Metropolitan Water District and Rancho California Water District
Kelley Gage
October 12, 2017

2. Background
On April 11, 2017, MWD approved and authorized its GM to enter into Cyclic Storage Agreements with MWD member agencies
Cyclic Agreements enhance MWD’s operational flexibility during wet and dry periods to store water
Wet Years: Cyclic accounts allow MWD to store its water in member agency, or sub-agency, groundwater basins
Dry years: Cyclic accounts would be operated as part of MWD’s storage reserves to help meet the water needs within its service area
Water deliveries into the account are at MWD’s discretion
Member agencies have the discretion to accept the water from MWD in any given year
Stored water produced from the cyclic account is sold at MWD’s prevailing full service water rate in effect at the time when the water is produced:
Not subject to Capacity Charge
Is subject to Readiness-to-Serve Charge

3. Background Benefits of Cyclic Agreements:
Improve reliability during dry years
Available to assist in an emergency, other than drought
Raises groundwater levels, reducing pumping costs to local producers

4. Cyclic Storage Agreement – MWD-EMWD-RCWD
Terms:
RCWD will store up to 10,000 acre-feet of MWD water in a cyclic storage account over a 10-year period
EMWD will facilitate delivery of MWD water into a cyclic storage account as the MWD member agency
Deliveries made through MWD EM-21 connection
No cost to EMWD, pass-through cost
RCWD agrees to include the projected cost of cyclic water deliveries in its annual budget
Any inability of RCWD to extract delivered water does not affect RCWD’s obligation to pay EMWD for water deliveries
When MWD determines water is available for delivery in any year, and EMWD and RCWD agree to accept the delivery, and a separate Purchase Agreement letter will be executed
Defines the delivery amount, timing, and payment schedule

5. Purchase Agreement – MWD-EMWD-RCWD
Terms (cont’d.)
MWD agrees to deliver 3,000 acre-feet into cyclic storage account via RCWD’s storage rights in groundwater basin in 2017
Maximum delivery rate of 830 acre-feet per month
All parties agree to a three-year payment schedule for MWD water deliveries in 2017
1,000 acre-feet to be billed once every year beginning July 31, 2018, and each subsequent July 31 thereafter
MWD will bill EMWD, and EMWD will bill RCWD, for the cost of the water

6. Recommendation
Approve and authorize execution by the General Manager, or his designee, a Cyclic Storage Agreement and a separate Purchase Agreement with Metropolitan Water District of Southern California and Rancho California Water District.

7. Contact Information
Kelley Gage
Senior Director of Water Resources Planning
(951) Ext. 4561