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<br /> <br />What price will San Diego pay <br />for our water? <br /> <br />The price for transferred water will <br />, be the subject of future negotiations. <br />In the draft terms of agreement, the San <br />Diego County Water Authority has proposed <br />a payment schedule that begins at $200 an <br />acre-foot in 1996, escalating to $306 an acre- <br />foot by 2008. <br />The table below shows the price to be <br />paid per acre-foot for each of the first 10 <br />years, the amount of water that would be <br />transferred each year, and the total amount of <br />money the District would receive each year <br />based on these figures, <br /> <br />II D Water Transfer: <br />Amounts and Revenues <br /> <br /> <br />~. <br /> <br />$4,000,000 <br /> <br />$13,440,000 : <br />)$IS.S()O;POO,; <br />$247 100,000 $24,700,000; <br />~i~l~~~;~gQ\{~?~;'tJ~1Se~g,oO()" <br />$271 140,000 $37,940,000.. <br />*!"*R!~~;~~: ";$1S~I>~~,()QO <br />$294 180,000 $52,920,000 <br /> <br />The terms of agreement also allow for <br />a price review every ten years to adjust for <br />market conditions. This term protects liD <br />from locking in long-term prices that might <br />not reflect market changes. To provide a safe- <br />guard to both parties from radical swings in <br />market conditions, the price would not be <br />allowed to fluctuate more than 25 percent <br />over a ten-year period. <br /> <br /> <br />Can liD get this water back in <br />the future? <br /> <br />The draft calls for an initial agreement <br />period of 75 years. After that, the <br />District can reduce deliveries by up to two <br />percent per year, if it so chooses, and use the <br />recaptured water for projected municipal and <br />industrial uses. <br />If San Diego decides to construct a new <br />aqueduct from Imperial to San Diego coun- <br />ties, then the agreement would last for 125 <br />years with no recapture provision. <br /> <br /> <br />What about the environment? <br /> <br />liD will complete a full environmental <br />analysis before any transfer begins. <br />As well, San Diego County Water <br />Authority will have to ensure environmental <br />compliance in the transportation of the <br />transferred water. <br />There is an important safeguard for <br />Imperial Valley residents: the obligations of <br />the District to implement the transfer pro- <br />gram would be voided if environmental com- <br />pliance cannot be accomplished. The liD <br />Board of Directors retains sole discretion for <br />that decision. <br />Two other factors can void the agree- <br />ment: I) If the San Diego County Water <br />Authority is unable to arrange for transporta- <br />tion of the water to its system in a satisfacto- <br />ry manner, it can cancel the agreement. 2) If <br />the courts do not validate the agreement, it <br />will be considered null and void. <br /> <br /> <br />How will Imperial Valley benefit? <br /> <br />Under the current terms, we'll see an <br />influx of nearly $300 million to the <br />local economy in the first ten years of <br />the agreement, The $60-plus million in 2008 <br />represents almost a doubling of liD current <br />water revenues, <br /> <br />Continued on back <br />