FROM: Robert Thompson, General Manager
Originator: Mike Dorman, Director of Engineering
SUBJECT:
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FLOW EXCHANGE AND GAP FLOWS AGREEMENTS
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
A. Approve and authorize the General Manager to execute the Flow Exchange Agreement between Orange County Sanitation District and Irvine Ranch Water District, in a form approved by General Counsel; and
B. Approve and authorize the General Manager to execute the GAP Flows Agreement between Orange County Sanitation District, Irvine Ranch Water District, and Orange County Water District, for a term of 20 years, in a form approved by General Counsel.
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BACKGROUND
Orange County Sanitation District (OC San) and Irvine Ranch Water District (IRWD) have had cooperative agreements dating back to the early 1960s. IRWD formally joined the Joint Powers Authority that defined the County Sanitation Districts of Orange County (OC San's predecessor agency) in 1986 as County Sanitation District of Orange County #14.
IRWD owns and operates the Michelson Water Recycling Plant (MWRP) and is able to recycle most of the wastewater generated within their service area. Accordingly, when the County Sanitation Districts of Orange County consolidated to form Orange County Sanitation District in 1998, IRWD, through County Sanitation District of Orange County #14, chose not to be consolidated in the same way as the other districts.
For accounting purposes, OC San is now separated into two areas:
1. Consolidated Revenue Area (CRA)
2. Revenue Area 14 (RA14)
Businesses and residents in the CRA pay fees directly to OC San for regional wastewater collection, treatment, and disposal. Businesses and residents in RA14 pay these fees to IRWD as most of this wastewater is conveyed to, treated, and recycled at MWRP. There are some areas where direct payment and service do not currently align with current boundaries; thus, there are four situations to ...
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