Marshland Flood Control District 10/11/2017 Amendment 1

AMENDED EXHIBIT F Percentage of Pump-Related Operating Costs Allocable to Hillside Runoff Based Upon "Peaking Factor" For purposes of this Agreement, the parties agree the currently available data, using straight-line projection, demonstrate that an average of approximately thirteen and sixty-five hundredths percent (13.65%) of the District's pump-related Operating Costs are attributable to additional surface water flow that comes into the Marshland Drainage Basin from Increased Hillside Runoff. However, the parties also agree that using that straight-line percentage does not appropriately allocate a sufficient portion of the District's pump-related Operating Costs to the Increased Hillside Runoff. This is because the additional surface water flow from the Increased Hillside Runoff is not distributed within the Marshland Drainage Basin in an even manner, but instead tends to impact the Marshland Drainage Basin via high peak flows during storm events. During recent years,the District has increasingly needed to operate additional pumps during storm events due to the peak volume of Increased Hillside Runoff flowing into the Marshland Drainage Basin. Operating additional pumps causes additional wear and tear on the pumps. Additionally, the high electrical demands of operating additional pumps, especially the large 250 hp pumps, results in disproportionately higher electrical costs for the District. To account for the disproportionate increase in Pump Plant O&M Operating Costs and Pump Electricity Operating Costs caused by the Increased Hillside Runoff,the parties agree, based on currently available data from the PUD that it is appropriate to apply a peaking factor of one point six (1.6) to the straight- line percentage set forth above in order to derive an equitable percentage allocation of the total pump-related Operating Costs to the Increased Hillside Runoff Multiplying the straight-line percentage of thirteen and sixty-five hundredths percent(13.65%)by the 1.6 peaking factor results in a proportionate share of twenty-one and eighty-four hundredths percent(21.84%). Accordingly, the appropriate proportion of the District's pump-related Operating Costs to allocate to the Increased Hillside Runoff is twenty-one and eighty-four hundredths percent (21.84%) which the Parties shall round-off to 21.85% for the terms of this Agreement. PROVIDED, that for the calendar year 2018, during the 2018 Original Term Extension, the parties agree that the currently available data, using straight-line projection, demonstrate that an average of approximately fourteen and fifty hundredths percent (14.50%) of the District's pump-related Operating Costs for 2018 will be attributable to additional surface water flow that comes into the Marshland Drainage Basin from Increased Hillside Runoff. However, the parties also agree that using that straight-line percentage does not appropriately allocate a sufficient portion of the District's pump-related Operating Costs to the Increased Hillside Runoff Accordingly, for the reasons stated in paragraph 1 of Exhibit F,to account for the disproportionate increase in Pump Plant O&M Operating Costs and Pump Electricity Operating Costs caused by the Increased Hillside Runoff, the parties agree, based on currently available data from the PUD Exhibit F- 1