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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 /> water at a reduced rate for Contractor's use in lieu of groundwater extracted pursuant <br /> to its Groundwater Pumping Quota ("In-Lieu Treated Water"). <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 /> 13 <br />