Sec. 37.113. - Metropolitan Water District's Interim

through Penalties.

(a)

Formal notification. At the point in time when MWD makes a formal call for the Interim Agricultural Water Program reduction and determines the parameters for the IAWP, each participant in the IAWP will be

provided a formal notice which will include a description of the method of implementation, the month-by- month water allocations for that specific customer, as well as the penalty rate structure and enforcement provisions.

(b)

Entering and leaving the IAWP. When the city is under an actual cut or the threat of a reduction, participants may not enter or leave the IAWP. All customers in the IAWP program as of December 31, 2006 are subject to cutbacks. Customers who exited the program prior to December 31, 2006 are not subject to the reduction.

(c)

Reduction targets.

Reduction targets will be determined by the percentage of reduction required and the base measurement period utilized by Metropolitan and the authority. These two (2) factors will result in a monthly allocation of supply for a twelve-month period, which will be allocated to individual customers based upon the relative usage levels in the base year.

Reduction targets may change based on the percentage of reduction required by Metropolitan.

(d)

Methodologies for administering reduction and monitoring and verifying reduction.

The city will provide month-to-month water allocations to each customer, with allocations determined by the percentage reduction against the selected base year.

Customers who are currently in the IAWP, but were not in the IAWP during the selected base year, will receive an allocation of water that is to be determined based upon the IAWP allocation for existing customers for that year.

The city will provide monthly information regarding the status of each customer's allocation.

Accounts under the same ownership may be grouped into one (1) master account to consolidate total allocation, allowing customers to move water allocation among accounts and properties under their ownership.

In cases of customers repeatedly or flagrantly exceeding monthly allocations, the city has the authority to impose additional fines or, at the direction of the water utilities director, to install a flow restrictor on the customer's meter.

A monthly report reflecting the total IAWP usage reduction compliance will be produced and provided to the authority and Metropolitan. A similar report will be provided at the end of each six-month IAWP segment.

(e)

Penalty assessment.

Agricultural water usage exceeding the monthly allocations will be billed by the City of Oceanside at the same penalty rate imposed by Metropolitan on the authority, and the penalty rate that the City of Oceanside passes through to agricultural customers will be automatically adjusted if the basis for Metropolitan's penalty rate changes.

The current IAWP pass-through penalty rate for water used in excess of each customer's allocation is two (2) times Metropolitan's Tier 2 bundled rate per acre-foot of water, less the applicable IAWP rate. This pass- through penalty rate shall be charged in addition to the City of Oceanside's current unit rate for non- agricultural water.

The City of Oceanside shall collect each agricultural customer's penalty monthly and hold the accrued penalties in a restricted account that will be paid to Metropolitan after the six (6) and twelve (12) month reconciliation has been completed.

Usage under the monthly allocation shall be a usage credit which will roll forward to offset over-usage and penalties in successive months, or rolled forward into the succeeding six (6) months.

The IAWP Reduction Plan and the pass-through penalty rates shall be in effect for as long as the IAWP reductions are required by Metropolitan.

(Ord. No. 07-OR0747-1, § 1, 12-19-07)