Common use of Reconciliation Process Clause in Contracts

Reconciliation Process. 5.1 After the start of Project operation and by December 31 of each year, SMWD shall provide Metropolitan with the following reconciliation data for the previous Fiscal Year: (a) records of Recovered Water and Allowable Yield; (b) supporting documentation of the actual cost of the Project required to perform the calculations prescribed in Exhibits B and C; (c) records of water deliveries to end users; (d) terms and schedule of payments of the Project’s financing instruments; (e) a description of any changes to the Project’s financing instruments; and (f) all contributions pursuant to Section 5.4. 5.2 If reconciliation data is not submitted by December 31 in accordance with Section 5.1, Metropolitan will assess a late penalty charge to SMWD as prescribed in Metropolitan’s Administration Code, currently set at $2,500 in Section 4507. Metropolitan may suspend its payment of Estimated LRP Contribution if SMWD fails to provide reconciliation data by the ensuing April 1. During the suspension period, SMWD shall continue to invoice Metropolitan for the Estimated LRP Contribution based upon the Allowable Yield for water accounting purposes. Metropolitan will resume payment of the monthly Estimated LRP Contribution once complete data is received and the corresponding reconciliation is complete pursuant to Section 5.3. In the event SMWD fails to provide reconciliation data by December 31 of the following Fiscal Year, which is 18 months after the end of the Fiscal Year for which a reconciliation is required, this Agreement shall automatically terminate without notice or action by any Party and SMWD shall repay Metropolitan all Estimated LRP Contributions for which no reconciliation data was provided within 90 days of termination. 5.3 Within 180 days after Metropolitan receives complete data from SMWD, pursuant to Section 5.1, Metropolitan shall calculate the Final LRP Contribution for the Fiscal Year. The Final LRP Contribution shall then apply retroactively to all Allowable Yield for the applicable Fiscal Year. An adjustment shall be computed by Metropolitan for over- or under-payment for the Allowable Yield and included on the next monthly water service invoice issued to MWDOC. As part of this reconciliation, Metropolitan shall also consult with SMWD to determine the Estimated LRP Contribution for the following year based on historic cost data and expected Project activities. 5.4 The Parties agree that all contributions other than LRP incentives under this Agreement and contributions by MWDOC, including but not limited to grants provided by the U.S. Bureau of Reclamation and funding by private parties received prior to and during the term of this Agreement that offset eligible Project costs, shall be deducted from all respective cost components. During the reconciliation process, following receipt of such contributions, the Parties shall determine the equitable apportionment of such contributions for capital and/or operational purposes.

Reconciliation Process. 5.1 After the start of Project operation and by December 31 of each year, SMWD shall provide Metropolitan with the following reconciliation data for the previous Fiscal Year: (a) records of Recovered Water and Allowable Yield; (b) supporting documentation of the actual cost of the Project required to perform the calculations prescribed in Exhibits B and C; (c) records of water deliveries to end users; (d) terms and schedule of payments of the Project’s financing instruments; (e) a description of any changes to the Project’s financing instruments; and (f) all contributions pursuant to Section 5.4. 5.2 If reconciliation data is not submitted by December 31 in accordance with Section 5.1, Metropolitan will assess a late penalty charge to SMWD as prescribed in Metropolitan’s Administration Code, currently set at $2,500 in Section 4507. Metropolitan may suspend its payment of Estimated LRP Contribution if SMWD fails to provide reconciliation data by the ensuing April 1. During the suspension period, SMWD shall continue to invoice Metropolitan for the Estimated LRP Contribution based upon the Allowable Yield for water accounting purposes. Metropolitan will resume payment of the monthly Estimated LRP Contribution once complete data is received and the corresponding reconciliation is complete pursuant to Section 5.3. In the event SMWD fails to provide reconciliation data by December 31 of the following Fiscal Year, which is 18 months after the end of the Fiscal Year for which a reconciliation is required, this Agreement shall automatically terminate without notice or action by any Party and SMWD shall repay Metropolitan all Estimated LRP Contributions for which no reconciliation data was provided within 90 days of termination.. DRAFT 5.3 Within 180 days after Metropolitan receives complete data from SMWD, pursuant to Section 5.1, Metropolitan shall calculate the Final LRP Contribution for the Fiscal Year. The Final LRP Contribution shall then apply retroactively to all Allowable Yield for the applicable Fiscal Year. An adjustment shall be computed by Metropolitan for over- or under-payment for the Allowable Yield and included on the next monthly water service invoice issued to MWDOC. As part of this reconciliation, Metropolitan shall also consult with SMWD to determine the Estimated LRP Contribution for the following year based on historic cost data and expected Project activities. 5.4 The Parties agree that all contributions other than LRP incentives under this Agreement and contributions by MWDOC, including but not limited to grants provided by the U.S. Bureau of Reclamation and funding by private parties received prior to and during the term of this Agreement that offset eligible Project costs, shall be deducted from all respective cost components. During the reconciliation process, following receipt of such contributions, the Parties shall determine the equitable apportionment of such contributions for capital and/or operational purposes.

Reconciliation Process. 5.1 After the start of Project operation and by December 31 of each year, SMWD El Toro shall provide Metropolitan with the following reconciliation data for the previous Fiscal Year: (a) records of Recovered Water and Allowable Yield; (b) supporting documentation of the actual cost of the Project required to perform the calculations prescribed in Exhibits B and C; (c) records of water deliveries to end users; (d) terms and schedule of payments of the Project’s financing instruments; (e) a description of any changes to the Project’s financing instruments; and (f) all contributions pursuant to Section 5.4.. DRAFT 5.2 If reconciliation data is not submitted by December 31 in accordance with Section 5.1, Metropolitan will assess a late penalty charge to SMWD El Toro as prescribed in Metropolitan’s Administration Code, currently set at $2,500 in Section 4507. Metropolitan may suspend its payment of Estimated LRP Contribution if SMWD El Toro fails to provide reconciliation data by the ensuing April 1. During the suspension period, SMWD El Toro shall continue to invoice Metropolitan for the Estimated LRP Contribution based upon the Allowable Yield for water accounting purposes. Metropolitan will resume payment of the monthly Estimated LRP Contribution once complete data is received and the corresponding reconciliation is complete pursuant to Section 5.3. In the event SMWD El Toro fails to provide reconciliation data by December 31 of the following Fiscal Year, which is 18 months after the end of the Fiscal Year for which a reconciliation is required, this Agreement shall automatically terminate without notice or action by any Party and SMWD El Toro shall repay Metropolitan all Estimated LRP Contributions for which no reconciliation data was provided within 90 days of termination. 5.3 Within 180 days after Metropolitan receives complete data from SMWDEl Toro, pursuant to Section 5.1, Metropolitan shall calculate the Final LRP Contribution for the Fiscal Year. The Final LRP Contribution shall then apply retroactively to all Allowable Yield for the applicable Fiscal Year. An adjustment shall be computed by Metropolitan for over- or under-payment for the Allowable Yield and included on the next monthly water service invoice issued to MWDOC. As part of this reconciliation, Metropolitan shall also consult with SMWD El Toro to determine the Estimated LRP Contribution for the following year based on historic cost data and expected Project activities. 5.4 The Parties agree that all contributions other than LRP incentives under this Agreement and contributions by MWDOCEl Toro, including but not limited to grants provided by the U.S. Bureau of Reclamation and funding by private parties received prior to and during the term of this Agreement that offset eligible Project costs, shall be deducted from all respective cost components. During the reconciliation process, following receipt of such contributions, the Parties shall determine the equitable apportionment of such contributions for capital and/or operational purposes.

Reconciliation Process. 5.1 After the start of Project operation and by December 31 of each year, SMWD El Toro shall provide Metropolitan with the following reconciliation data for the previous Fiscal Year: (a) records of Recovered Water and Allowable Yield; (b) supporting documentation of the actual cost of the Project required to perform the calculations prescribed in Exhibits B and C; (c) records of water deliveries to end users; (d) terms and schedule of payments of the Project’s financing instruments; (e) a description of any changes to the Project’s financing instruments; and (f) all contributions pursuant to Section 5.4. 5.2 If reconciliation data is not submitted by December 31 in accordance with Section 5.1, Metropolitan will assess a late penalty charge to SMWD El Toro as prescribed in Metropolitan’s Administration Code, currently set at $2,500 in Section 4507. Metropolitan may suspend its payment of Estimated LRP Contribution if SMWD El Toro fails to provide reconciliation data by the ensuing April 1. During the suspension period, SMWD El Toro shall continue to invoice Metropolitan for the Estimated LRP Contribution based upon the Allowable Yield for water accounting purposes. Metropolitan will resume payment of the monthly Estimated LRP Contribution once complete data is received and the corresponding reconciliation is complete pursuant to Section 5.3. In the event SMWD El Toro fails to provide reconciliation data by December 31 of the following Fiscal Year, which is 18 months after the end of the Fiscal Year for which a reconciliation is required, this Agreement shall automatically terminate without notice or action by any Party and SMWD El Toro shall repay Metropolitan all Estimated LRP Contributions for which no reconciliation data was provided within 90 days of termination. 5.3 Within 180 days after Metropolitan receives complete data from SMWDEl Toro, pursuant to Section 5.1, Metropolitan shall calculate the Final LRP Contribution for the Fiscal Year. The Final LRP Contribution shall then apply retroactively to all Allowable Yield for the applicable Fiscal Year. An adjustment shall be computed by Metropolitan for over- or under-payment for the Allowable Yield and included on the next monthly water service invoice issued to MWDOC. As part of this reconciliation, Metropolitan shall also consult with SMWD El Toro to determine the Estimated LRP Contribution for the following year based on historic cost data and expected Project activities. 5.4 The Parties agree that all contributions other than LRP incentives under this Agreement and contributions by MWDOCEl Toro, including but not limited to grants provided by the U.S. Bureau of Reclamation and funding by private parties received prior to and during the term of this Agreement that offset eligible Project costs, shall be deducted from all respective cost components. During the reconciliation process, following receipt of such contributions, the Parties shall determine the equitable apportionment of such contributions for capital and/or operational purposes.