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District approves recycled-water sale to Mendocino Unified, adopts rate near $9.39 per 1,000 gallons
Summary
The board approved a user agreement with Mendocino Unified School District and adopted a rate schedule that staff estimated at $9.39 per 1,000 gallons; staff estimated roughly 4 million gallons per year to MUSD, about $38,000 annually, and the contract includes an annual true-up of operations costs.
The Mendocino City Community Service District approved a user agreement with the Mendocino Unified School District (MUSD) that lays out delivery volumes, insurance and indemnification terms required by the state funder, and a separate rate schedule for recycled water.
Seth Petta, the district's attorney, told the board the agreement had been vetted for insurance and indemnification and the district's insurer had reviewed relevant language. He also said MUSD's board had approved the agreement on its side and that MCCSD's approval is the remaining step before the parties execute the document.
Staff presented a rate that the meeting packet expressed as $9.39 per thousand gallons (operation/maintenance plus capital-replacement components, with an annual true-up). Staff estimated MUSD's use at roughly 4,000,000 gallons per year, which the packet equates to about $38,000 annually at the adopted rate; the contract provides for adjusting actual charges after yearly reconciliation.
The board adopted the user agreement and the rate schedule on voice votes. The state funding agency requires a formal recycled-water agreement before reimbursing construction costs, so executing the agreement is a prerequisite to submitting invoices for grant reimbursement.
