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13 <br />27. In-Lieu Treated Water <br />During periods when sufficient water is available to Zone 7 at reasonable cost and Zone <br />7 desires to raise or maintain groundwater levels, Zone 7 may offer delivery of treated <br />- <br />Zone 7 shall notify Contractor regarding the availability of In-Lieu Treated Water on or <br />about May 1 of each calendar year, however, said rates may be retroactive for the <br />entire calendar year or other mutually agreed upon portion thereof. Credit or payment <br />for In-Lieu Treated Water will be as provided for under Section 31. <br />Contractor is not required to take or purchase any In-Lieu Treated Water. The amount <br />of In-Lieu Treated Water that Contractor may receive shall not exceed its Groundwater <br />Pumping Quota plus any accumulated carry-over or its operational capability to extract <br />said Groundwater Pumping Quota and accumulated carry-over. <br />28. Water Delivery Shortage Emergency Extractions <br />During a water supply emergency, as declared by the Board, in which Zone 7 is unable <br />to deliver the quantity of treated water as approved on the delivery schedule, and <br />subject to approval by the Board, the Contractor may extract water from the Main Basin <br />in excess of the Contractor's Groundwater Pumping Quota at a reduced recharge rate. <br />Said rate shall be the same as the In-Lieu Treated Water rate. <br />E. CHARGES AND PAYMENT <br />29. Rate Schedule <br />The Board shall adopt and publish a rate schedule for charges levied pursuant to this <br />Agreement, including each of the following: <br />(a) Treated water rates <br />(b) In-Lieu Treated Water <br />(c) Water Connection Fees <br />(d) Recharge fees <br />Each charge shall be based on the cost of providing service, and shall not be <br />unreasonable, arbitrary, or discriminatory. <br />The Board shall review the proposed rates at a September Board meeting, with the goal <br />of establishing the rate schedule no later than the November regular Board meeting <br />prior to January 1 of the calendar year for which the rate schedule is to be effective. <br />Notwithstanding, the rate schedule shall be adopted at least 60 days prior to it <br />Page 68 of 214