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HomeMy WebLinkAboutIGA - Joint Cities Water Rights Management and Sharing Plan INTERGOVERNMENTAL AGREEMENT FOR A COORDINATED WATER RIGHTS MANAGEMENT AND WATER SHARING PLAN Parties This Intergovernmental Agreement(IGA) is between the Medford Water Commission (MEDFORD WATER) and the Cities of Ashland, Central Point, Eagle Point, Jacksonville, Phoenix, and Talent, hereinafter PARTNERS when referred to collectively, and MEDFORD WATER, ASHLAND, CENTRAL POINT, EAGLE POINT, JACKSONVILLE, PHOENIX, and TALENT when referred to individually, and PARTNER CITIES when referring to ASHLAND, CENTRAL POINT, EAGLE POINT, JACKSONVILLE, PHOENIX, and TALENT. II. Recitals A. The PARTNERS all own and operate water systems that supply water to their respective customers; B. The PARTNERS recognize the vital importance of providing a reliable source of water to all their respective customers for public health, safety, and welfare and for sustaining economic development; C. The PARTNERS recognize the importance of water conservation, and each take actions to conserve their water supply. D. The PARTNERS have invested in and each hold water right(s)that are diverted and treated at the Duff Water Treatment Plant(WTP) located on the Rogue River, and understand the importance of strategically managing those water rights; E. The Duff WTP, owned by MEDFORD WATER, provides treated water to the PARTNERS and is a critical regional water supply facility. F. The PARTNER CITIES receive water treated at the Duff WTP under Treat and Transport contracts with MEDFORD WATER. These contracts include rates of water that the PARTNER CITIES can receive from the MEDFORD WATER's water supply system during identified time periods. G. The PARTNERS value the important role each utility plays in meeting the water supply needs of the Rogue Valley Region; H. The PARTNERS entered into a cooperative agreement for developing a water rights strategy in 2019, which resulted in development of a Final Report entitled WATER RIGHTS STRATEGY FOR PARTNER WATER PROVIDERS (February 2020). The cooperative agreement and report executive summary are included in Attachment 1; I. The WATER RIGHTS STRATEGY FOR PARTNER WATER PROVIDERS recommends Phase I of the Coordinated Water Rights Management and Sharing Plan, which includes a coordinated water rights certification strategy for water rights diverted at the Duff WTP and a PARTNER CITIES water sharing framework; J. The WATER RIGHTS STRATEGY FOR PARTNER WATER PROVIDERS recommends a Phase II of the Coordinated Water Rights Management and Sharing Plan to continue the water rights certification strategy for water rights diverted at the Duff Page I 1 August 5, 2022 WTP and a PARTNER CITIES and MEDFORD WATER water sharing framework. A separate IGA will need to be developed and approved for Phase II; K. The PARTNERS recognize that this IGA is related to Phase I of the Coordinated Water Rights Management and Sharing Plan; and L. The PARTNERS enter this agreement in a spirit of good will and mutual cooperation, understanding that entering this IGA for Phase I of a Cooperative Water Rights Management and Water Sharing Plan is intended to improve the current and long-term reliability of individual and collective water supplies and is in the highest public interest. III. Scope and Purpose To develop, refine and implement Phase 1 of a Coordinated Water Rights Management and Water Sharing Plan that includes a coordinated water rights certification strategy for water rights diverted at the Duff WTP and a PARTNER CITIES water sharing framework. This IGA does not address Phase II of a Coordinated Water Rights Management and Water Sharing Plan, which would be established in a separate IGA. Being a signatory to this IGA does not require a PARTNER to become a signatory to an IGA developed for Phase II. IV. Retention of Asset Ownership A. Each Partner will retain ownership of its water right(s). Nothing in this IGA will have the effect of conveying a water right to any other entity. B. MEDFORD WATER will retain ownership of the Duff WTP,the associated intake on the Rogue River, and all related infrastructure. Nothing in this IGA will have the effect of conveying any of MEDFORD WATER's water system to any other entity. V. Water Right Certification Coordination A. The PARTNERS developed a strategy for managing the timing of certification of their existing water use permits and transfers, which is described in the Water Rights Certification Strategy Table provided in Attachment 2. The table identifies the water rights that have been or can be certificated at the current Duff WTP capacity (70 cfs), and the permits and transfers to be certificated at each subsequent WTP capacity (100 cfs, 131 cfs, 162 cfs and 193 cfs). Except as provided in subsection D of this section, only the portion of the Water Rights Certification Strategy Table for the Duff WTP's existing capacity of 70 cfs is applicable to this 1GA for Phase I of the Water Rights Management and Water Sharing Plan. B. The PARTNERS agree to submit claims of beneficial use (COBUs) and requests for water right certificates to the Oregon Water Resources Department(OWRD) only at times consistent with the portion of the Water Rights Certification Strategy Table for the Duff WTP's existing capacity of 70 cfs, except as provided in subsection D of this section. C. At least 14 days prior to submitting a COBU and request for water right certificate to OWRD, PARTNERS agree to provide the Managing Agency with written notice of their intention to file a COBU. Page 12 August 5, 2022 D. The Water Rights Certification Strategy Table will be reviewed by the PARTNERS annually as described in Section VIII, and will be updated to reflect the issuance of water right certificates consistent with Water Rights Certification Strategy. E. Each PARTNER will continue to be responsible for maintaining its own water rights, which will include but is not limited to filing water use reports with OWRD, developing claims of beneficial use and requesting water right certificates, and developing water management and conservation plans. VI. Water Sharing A. Consistent with the PARTNER CITIES' contracts with MEDFORD WATER, each PARTNER CITY will use water under its individual water rights beginning May 1 of each year and ending September 30 of each year. B. By November 15 of each year, MEDFORD WATER will calculate the total volume of water used by each PARTNER CITY during the period of May 1 through September 30 based on meter readings for each city, referred to as each city's"Annual Metered Volume." The meters used to determine each PARTNER CITY'S "Annual Metered Volume" are listed in Attachment 3. 1. The owner of each meter will ensure its meter(s) are calibrated to manufacturer standards. 2. If a meter breaks or malfunctions the PARTNERS will use the best practicable information available to estimate water use. C. MEDFORD WATER will compare each PARTNER CITY'S Annual Metered Volume to the total volume of water authorized by each PARTNER CITY'S water rights(referred to as each PARTNER CITY'S "Total Authorized Water Volume") as shown in Attachment 4. D. The PARTNER CITIES will notify MEDFORD WATER of any changes to their Total Authorized Water Volume that occur during the May 1 through September 30 period. E. If a PARTNER CITY'S Annual Metered Volume exceeds its Authorized Water Volume, as provided in VI. C., MEDFORD WATER will subtract the Authorized Water Volume from the Annual Metered Volume to obtain that PARTNER CITY'S "Volume of Excess Use" for the year. F. If a PARTNER CITY'S Annual Metered Volume is less than that city's Authorized Water Volume, as provided in VI. C., MEDFORD WATER will subtract the Annual Metered Volume from the Authorized Water Volume to obtain that PARTNER CITY'S "Excess Water Right Volume" for the year. G. For each PARTNER CITY with a Volume of Excess Use, MEDFORD WATER will allocate the Volume of Excess Use equally among all PARTNER CITIES with an Excess Water Right Volume for that year. MEDFORD WATER will allocate the Volume of Page 13 August 5,2022 Excess Use equally up to, but not in excess of, the PARTNER CITIES' Authorized Water Volumes. If equal allocation of a PARTNER CITY'S Volume of Excess Use would exceed one or more PARTNER CITY'S Authorized Water Volume, the Volume of Excess Use will be allocated equally among the PARTNER CITIES in the amount of the smallest Excess Water Right Volume. The remaining Volume of Excess Use will then be allocated equally among the remaining PARTNER CITIES with Excess Water Right Volume. This process will be repeated until the PARTNER CITY'S entire Volume of Excess Use has been allocated to other PARTNER CITIES. Attachment 5 provides an example of the intended process. H. Any PARTNER CITY with a Volume of Excess Use will provide compensation to PARTNER CITIES with Excess Water Right Volume according to the volume of water allocated to that PARTNER CITY, and the Method of Cost Allocation provided in Section VII. VII. Method of Cost Allocation A. By March 1 of each year, each PARTNER CITY will provide to MEDFORD WATER a copy of any Statement of Account or other invoices from the U.S. Army Corps of Engineers, or annual assessment from the Medford Irrigation District and/or Rogue River Irrigation District the PARTNER CITY received in the previous year related to their water rights associated with the Duff Water Treatment Plant as described in Attachment 2. B. Based on the information provided in subsection A., MEDFORD WATER will calculate the following total annual costs. An example of the calculations is provided in Attachment 6. 1. The Total Annual Operation and Maintenance (O&M) Costs for storage space for Lost Creek Reservoir will be calculated by adding together the annual O&M costs for Ashland, Jacksonville, Phoenix, and Talent. This cost is associated with 3,892 AF of storage space in the reservoir, as shown in Table 1 of Attachment 6; 2. The Total Annual Repair Replacement and Rehabilitation (RR&R) Costs for storage space for Lost Creek Reservoir will be calculated by adding together any annual RR&R costs for Ashland, Jacksonville, Phoenix, and Talent. This cost is associated with the 3,892 AF of storage space, as shown in Table 2 of Attachment 6. 3. The 5-year Rolling Average RR&R Cost for storage space for Lost Creek Reservoir will be calculated by adding together the Total Annual RR&R Costs for the preceding five years and dividing by 5. This calculation is shown in Table 3 in Attachment 6. 4. The Total Annual Assessment Costs will be calculated by adding together the annual costs charged to Central Point and Eagle Point by Medford Irrigation District and Rogue River Irrigation District. This cost is associated with the Page 14 August 5, 2022 3,123.7 AF for which the irrigation districts charge assessments, as shown in Table 4 of Attachment 6. 5. The Total Water Volume Associated with the Costs is 7,015.7 AF, which is calculated by adding 3,892 AF associated with storage space plus 3,123.7 AF associated with the irrigation districts, as shown in Table 5 of Attachment 6. C. The Average Annual Cost Per Acre Foot will be calculated as follows. 1. Calculate the Total Annual Cost by adding together the Total Annual O&M Cost for storage space,the Five-Year Rolling Average RR&R Cost, and the Total Annual Assessment Cost. 2. Calculate the Annual Average Cost Per Acre Foot by dividing the Total Annual Cost by the Total Water Volume Associated with the Costs (7,015.7 AF), as shown in Table 5 of Attachment 6. D. MEDFORD WATER will provide the PARTNER CITIES with the Average Annual Cost Per Acre Foot by March 30 of each year. E. Each year after completing the calculations described in Section VI., for each PARTNER CITY with a Volume of Excess Use, MEDFORD WATER will multiply the Volume of Excess Use allocated to each PARTNER CITY (determined according to Section VI. D.) by the Average Annual Cost Per Acre Foot to obtain the "Annual Cost for Excess Use" owed to each PARTNER CITY. F. By December 15 of each year, MEDFORD WATER will provide the PARTNER CITIES an Annual Summary Report of Water Sharing that includes the following information for the previous May through September: 1. Each PARTNER CITY'S Annual Metered Volume; 2. Each PARTNER CITY'S Authorized Water Volume; 3. Each PARTNER CITY'S Excess Water Right Volume, or Volume of Excess Use for the year; and 4. For each PARTNER CITY with a Volume of Excess Use,the volume of water allocated to each PARTNER CITY with an Excess Water Right Volume, and the associated Annual Cost for Excess Use. An example Annual Summary Report of Water Sharing is provided in Attachment 7. G. By January 15 of each year, the PARTNERS will meet to review the Annual Summary Report of Water Sharing, and will work in good faith to resolve any discrepancies raised by a PARTNER CITY. H. By February 15 of each year, each PARTNER CITY with a Volume of Excess Use shall pay the Annual Cost for Excess Use to other PARTNER CITIES as provided in the Annual Summary Report of Water Sharing. VIII. Annual Meeting A. Medford Water will schedule an annual meeting with the PARTNERS during the month of April each year at a time and location agreeable to the PARTNERS. Page 15 August 5,2022 B. Each PARTNER will,to the extent possible, have at least one representative at the annual meeting. C. Agenda items will include, but are not limited to, the following: 1. An explanation of the processes established by this IGA, as necessary. 2. Estimations provided by each PARTNER CITY of the amount of water it expects to use during the upcoming period of May 1 through September 30. 3. Any available estimations of water supply expected to be available during the upcoming period of May 1 through September 30 4. A review of the Water Rights Certification Strategy Table (the current version is provided in Attachment 2), and a discussion of any updates to the table that are needed or any plans to certificate a water right included in the table. 5. Coordination of any other activities regarding the Water Rights so that all Partners are apprised of actions by a Partner that may affect them. 6. Any amendments needed to this IGA. The process for adoption of amendments is provided in Section XIV. IX. Designation, Tasks and Powers of Managing Agency A. Medford Water shall perform the duties of the Managing Agency hereunder including but not limited to: 1. Coordinating use of the Partners' Rogue River water rights at the Duff Water Treatment Plant in accordance with the terms and conditions of this Agreement. 2. Schedule and convene meetings with the Partners in accordance with the terms of this Agreement and as necessary to meet the requirements of this Agreement, maintain public records in accordance with the Oregon Public Records Law and rules, policies and procedures of Medford Water, and provide administrative support. 3. Provide public communications and outreach, including response to public information, media or records requests in coordination with the Partner Cities. 4. Retain consultants, attorneys, auditors, accountants and other professional services to assist the Managing Agency in accordance with Managing Agency contracting rules. 5. Provide the Partners and their agents with reasonable access to books and records maintained by the Managing Agency specifically related to administration of this Agreement. 6. Perform ministerial and administrative tasks to implement this Agreement. B. The General Manager of Medford Water shall be the person authorized to act for the Managing Agency, unless the Medford Water Commission specifies otherwise. X. Governance A. Each Partner shall appoint a representative, elected or staff member, to receive notices, attend meetings as called and act as a liaison to the Partner's governing body. A Partner's representative shall serve at the discretion of the Partner's governing body, or the City Manager or City Administrator. Page 16 August 5, 2022 B. The Representatives shall meet in accordance with the terms of this Agreement and as deemed necessary by the Managing Agency upon reasonable notice to carry out the terms and conditions of this Agreement. XI. Failure to Perform/Breach/Remedies A. If a Partner fails to perform any obligation or term of this Agreement, (Defaulting Partner)the Managing Agency will notify the Defaulting Partner in writing and request performance and cure. If the Defaulting Partner cures the default within 30 days of notice or commences to diligently cure a default within 30 days and completes cure within a mutually agreed time,then the matter will be deemed resolved. B. If the default continues after notice and opportunity to cure,the Managing Agency and the Representative of the Defaulting Partner shall meet within 45 days to discuss and resolve. Other Partners(Remaining Partners) shall be apprised and may attend. C. If no satisfactory resolution is reached,the parties agree to mediate any disputes under ORS Chapter 36. XII. Termination and Withdrawal A. A Partner may elect to withdraw from this Agreement(Withdrawing Partner)by providing written notice to the Managing Agency no later than October 1 of each year. If timely notice is given,the withdrawal shall be effective on the following May 1. B. The Managing Agency will provide the Remaining Partners with timely notice of the withdrawal notice. C. Withdrawal from this Agreement will terminate the obligation to participate in water sharing under this agreement but will not affect any pre-existing agreements that may be operative. Withdrawal shall not relieve the Withdrawing Partner of any outstanding obligations remaining unpaid. D. Upon withdrawal,the Managing Agency will cause the Attachments to this Agreement affected by such Partner's withdrawal to be revised and adjusted as necessary to remove the Withdrawing Partner and its water rights, Authorized Water Volumes, and associated costs identified in the Attachments. The Managing Agency may create a new Attachment for addition to this Agreement to account for change in membership to identify the Partners, and their water rights, Authorized Water Volumes, and associated costs. E. The Managing Agency shall provide the Partner Cities with timely copies of the new or revised Attachment(s). F. This Agreement shall continue after withdrawal of a Partner unless dissolved as provided in Section XV, below. XIII. Representations By execution of this Agreement, each Partner represents to the others that the Agreement has been approved by the governing body and that the person executing the Agreement has full authority to do so and the Agreement is binding on the Partner. Further the designated Representative of the Partner is vested with authority to act on behalf of the Page 17 August 5, 2022 Partner except for those decisions that require specific governing body approval: amendment and dissolution. XIV. Amendment A. A Partner seeking an amendment to the Agreement shall provide a notice to all other Partners that specifies the section(s)of the Agreement that the Partner seeks to amend, and the nature of the requested amendment. B. The proposed amendment shall be included in the agenda for the next annual meeting. C. This Agreement may be amended only by mutual written agreement of all the Partners, and the amended agreement will become effective on the next October 1 or as otherwise mutually agreed upon by the Partners. XV. Term,Dissolution and Winding Up A. This Agreement shall become effective on October 1, 2022, (effective date) and will continue for five years from the effective date or until the remaining Partners mutually agree to terminate or there is only one Partner remaining, whichever is sooner. B. This Agreement will automatically renew every five years on October 1 (fifth year anniversary date) without further action. C. If this Agreement is amended as provided in Section XIV, the amended agreement will automatically renew every five years from the effective date of the amended agreement without further action. XVI. Notices Any notice required to be given shall be sufficient if given electronically, personal delivery or regular U.S. Mail to the following. If more than one contact is identified for a Partner, notice will be sufficient if given to the primary contact. A Partner may change the recipient by written notice to the others. If to Medford Water: Medford Water Attn: General Manager 200 S. Ivy St.—Room 177 Medford, Oregon 97501 If to Ashland: City of Ashland Attn: City Manager 20 East Main Street Ashland, OR 97520 Page 18 August 5, 2022 If to Central Point: City of Central Point Attn: City Manager 140 S. 3rd Street Central Point, OR 97502 If to Eagle Point: City of Eagle Point Attn: Aaron Prunty, City Administrator PO Box 779 Eagle Point, OR 97524 If to Jacksonville: Primary contact: City of Jacksonville Attn: Jeff Alvis P.O. Box 7 Jacksonville, OR 97530 With copies to: City of Jacksonville Attn: Tony Thompson P.O. Box 7 Jacksonville, OR 97530 If to Phoenix: City of Phoenix Attn: City Manager PO Box 330 Phoenix, OR 97535 If to Talent: City of Talent Attn: Jordan Rooklyn PO Box 445 110 E Main St Talent, OR 97540 Page 19 August 5,2022 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their proper officers on the dates noted below. MEDFORD WATER COMMISSION ki-ad 7 lot By: Brad Taylor(Sep 19,2022 1002 PDT) Title:tGeneral Manager Date: Sep 19, 2022 CITY OF ASHLAND: 7areeh L. Le,rsat- By: Joseph t Lessard(Aug 30,2022 10:37 PDT) Title: City Manager Date: Aug 30, 2022 CITY OF CENTRAL POINT: Ciu^rti C tmz Chris Clayton(Aug 30,2022 10.51 PDT) By: Title: City Manager Date: Aug 30, 2022 CITY OF EAGLE POINT: Aaron Prun-fy By: Aaron Prunty(Sep 1,"2022 1327 PDT) Title: City Administrator Date: Sep 1, 2022 Page 110 August 5, 2022 CITY OF JACKSONVILLE: By: J4t.,ey(yls(SEX/72022 10 30 PDT) Title: City Administrator Date: Sep 6, 2022 CITY OF PHOENIX: By: Er'Swanson(Sep 15.2022 12 04 PDT} Title: City Manager Date: Sep 15, 2022 CITY OF TALENT: Title: City Manager Date: Sep 17, 2022 Page 111 August 5, 2022 Attachment 1 Cooperative Agreement and Report Executive Summary Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Page I1of4 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER AMONG MEDFORD WATER COMMISSION,CITY OF ASHLAND,CITY OF CENTRAL POINT,CITY OF EAGLE POINT,CITY OF JACKSONVILLE,CITY OF PHOENIX,AND CITY OF TALENT This cooperative agreement(hereinafter"Agreement") is by and among Medford Water Commission and the Cities of Ashland,Central Point, Eagle Point,Jacksonville, Phoenix,and Talent, hereinafter PARTNERS when referred to collectively and MWC,ASHLAND,CENTRAL POINT,EAGLE POINT,JACKSONVILLE, PHOENIX, and TALENT when referred to individually. RECITALS A. The PARTNERS all own and operate water systems that supply water to their respective customers; B. The PARTNERS recognize the vital importance of providing a reliable source of water to all their respective customers for public health,safety,and welfare and for sustaining economic development; C. The PARTNERS value the important role each utility plays in meeting the water supply needs of the Rogue Valley Region(RVR); D. The PARTNERS enter this agreement in a spirit of good will and mutual cooperation,with the understanding that coordinating a Water Right Strategy(WRS)will improve the current and long-term reliability of individual and collective water supplies and is in the highest public interest; E. The PARTNERS understand that the WRS will document the current understanding of the water rights held by the jurisdictions in the RVR,and provide options to the PARTNERS on how to move forward with securing and allocating water supplies for the RVR that may be in the best interests of the Region as a whole, but it will not bind PARTNERS to any particular direction or action;and F. The PARTNERS recognize that developing a WRS is the first step and that a second step of adopting a WRS would require a second IGA that would then guide the adoption,implementation,and management of the WRS moving forward. It is understood that a second step may not be possible if there is not agreement on how to move forward with the WRS. G. The PARTNERS are willing to fund development of a WRS. AGREEMENT The PARTNERS agree to the following: I. RECITALS/PURPOSE The above recitals are true and correct and are specifically adopted and incorporated herein as the purpose of this Agreement. II. DEFINITIONS A. ASHLAND means City of Ashland. B. CENTRAL POINT means City of Central Point. C. EAGLE POINT means City of Eagle Point. D. JACKSONVILLE means City of Jacksonville. E. MWC means Medford Water Commission. 2018 COOPERATIVE AGREEMENT OR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER August 5, 2022 Page 12of4 F. OWRD means the Oregon Water Resources Department. G. PARTNERS means collectively the Medford Water Commission and the Cities of Ashland,Central Point, Eagle Point,Jacksonville, Phoenix,and Talent. H. PHOENIX means City of Phoenix. I. RVR is an abbreviation for Rogue Valley Region. J. STEERING COMMITTEE means a group comprised of at least a single voting representative from each of the PARTNERS.The Steering Committee function will be to oversee the implementation of this Agreement,to facilitate changes to it necessary to ensure its continued effectiveness in meeting the needs of the PARTNERS and to settle differences in interpretation of its provisions and execution. K. TALENT means City of Talent. L. WRS is an abbreviation for Water Right Strategy. lll. RESPONSIBILITIES A. The PARTNERS: 1. Agree to form a STEERING COMMITTEE. 2. Agree not to move forward with any actions to certificate water rights at the MWC Duff Water Treatment Plant intake,except as provided in IIl.C, until a WRS is completed,or the term of this Agreement ends. 3. Agree to pay the identified,pro-rata costs of the development of a WRS as provided in Section IV(B)of this Agreement. B. MWC: 1. Agrees to award and administer a contract with GSI Water Solutions to develop a WRS as described in Section IV(A)of this Agreement. 2. Agrees to pay monthly invoices to GSI Water Solutions on behalf of the PARTNERS. C. PHOENIX: 1. Agrees not to request expedited processing of its claim of beneficial use under OWRD's Reimbursement Authority Program for Permit S-47672 until a WRS is completed,or the term of this agreement ends,whichever occurs first. 2. Agrees to notify the PARTNERS within a reasonable period of time in the event that OWRD begins review of its pending claim of beneficial use for Permit S-47672. IV. WATER RIGHT STUDY SCOPE AND COST A. The draft outline of the scope of work to develop a WRS is included as Exhibit A.The PARTNERS intend to collaboratively develop and establish a final scope of work after this agreement is executed. 2018 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER August 5, 2022 Page 1 3of4 B. The PARTNERS agree to share the cost of the WRS on a pro rata basis in proportion to their populations based on Portland State University's 2015 population data,as shown in Exhibit B. Exhibit B indicates preliminary costs.The total cost of the WRS is expected to be less than $80,000. Final pro-rata cost share will be determined at the time the contract with the consultant is signed. Payments by PARTNERS will be due quarterly and must be remitted to MWC within 30 days of invoice. E. V. DECISION MAKING PROCESS A. All decisions made under this Agreement,and during the course of the development of the WRS, shall be made through negotiations among the PARTNERS. B. The WRS does not bind any PARTNER(S)to any future action or direction proposed by the WRS. VI. LIABILITY,INDEMNITY AND HOLD HARMLESS A. INDEMNIFICATION. To the extent allowed by the Oregon Constitution and the Oregon Revised Statutes,and not to exceed monetary limits of the Oregon Tort Claim Act,the PARTNERS agree to defend, indemnify,and hold harmless each other from claims, liability or damages, including attorney fees,arising out of error,omission or act of negligence on the part of the indemnifying party, its officers,agents,or employees in the performance of this Agreement. B. STATUS. In providing the services specified in this Agreement(and any associated services)the PARTNERS are public bodies and maintain their public body status as specified in ORS 30.260. The PARTNERS understand and acknowledge that each retains all immunities and privileges granted them by the Oregon Tort Claims Act and any and all other statutory rights granted as a result of their status as local public bodies. VII. TERM AND TERMINATION The term of the Agreement is twelve months from the last date of execution, unless the 5TEERING COMMITTEE members unanimously agree in writing to extend that date.Any PARTNER may agree to { terminate its participation in the Agreement at any time with 15-day written notice to the other PARTNERS, provided, however,that once a contract with the selected consultant has been signed,the terminating PARTNER agrees to pay its full pro-rata share of the cost of the consultant contract to MWC. 2018 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER August 5, 2022 Page J4of4 In WITNESS WHEREOF,the parties hereto have caused this Agreement to be signed by their proper officers on the dates noted below. gPad Brad Taylor(Ja 5,2019) Jan 25,2019 christopher ayton(Jan 25, 19) Jan 25,2019 Brad Taylor DATE Chris Clayton DATE General Manager City Manager Medford Water Commission City of Central Point Kelly Madding „� Kelly Madding(Feb 22, 019) Feb 22,2019 Nt.r,fy a�,yre t,Fn u,201',1i-eb 22,2019 Kelly Madding DATE Henry Lawrence DATE City Administrator City Administrator City of Ashland City of Eagle Point J� ��fG��s �o PranteW Jeff Ivis(Feb 25,2019) Feb 25,2019 Aaron Prunty(Mar 18,2C�9) Mar 18,2019 Jeff Alvis DATE Aaron Prunty DATE City Administrator City Manager City of Jacksonville City of Phoenix Sandra Spelliscy Sandra Spelliscy(Mar 18,2019) Mar 18,2019 Sandra Spelliscy DATE City Manager City of Talent 2018 COOPERATIVE AGREEMENT FOR DEVELOPING A WATER RIGHT STRATEGY FOR ACCESS TO WATER August 5, 2022 IG s Water Solutions,Inc. February 7, 2020 Executive Summary Water Rights Strategy for Partner Water Providers I. Introduction GSI Water Solutions, Inc. (GSI) is assisting the Partner Water Providers (Partners) to develop a water rights strategy. The Partners include the Cities of Ashland, Central Point, Eagle Point, Jacksonville, Phoenix, and Talent (jointly the Partner Cities) and Medford Water Commission (MWC).' In early 2019, the Partners signed a Cooperative Agreement to develop the strategy recognizing the benefits of mutual cooperation and the vital importance of providing source water to their respective customers for public health, safety and welfare, and for sustaining economic development. The water rights strategy focuses on the Partners' water rights and water supply associated with the MWC Duff Water Treatment Plant (Duff WTP) on the Rogue River. During the months of May through September(peak season), much of the MWC's water supply and all of the Partner Cities' water supply is treated at the Duff WTP. During this peak season period, the Partner Cities currently rely on water rights they have obtained and hold Treat and Transport agreements with the MWC. As the Partners plan for their long-term water supply needs, it is important that they have a full understanding of the status of their water rights and develop a common strategy to protect and secure them. The water rights strategy is intended to meet those needs. II. Process To develop the water rights strategy, GSI initially prepared a comprehensive water rights summary, which enabled the Partners to develop a shared understanding of the water rights at the Duff WTP. Next, GSI developed a consolidated water demand projection for each of the Partners, which included the maximum anticipated demands for the years 2030, 2040 and 2070. GSI then compared the Partners' individual and collective demands with their water rights. This evaluation showed that some of the Partners' water rights will likely provide them with sufficient supply past the year 2070, while other Partners' water rights do not provide sufficient water supply to meet current demands. The evaluation also showed that if the Partners shared their water supplies, they would have sufficient supply to meet all of their demands through 2070. 1 MWC's customers include customers within the City of Medford,White City,Elk City and Charlotte Ann Water Districts,as well as other customers served by MWC outside of its service area(Outside Customers). 1 August 5,2022 EXECUTIVE SUMMARY-WATER RIGHTS STRATEGY FOR PROJECT PARTNERS GSI WATER SOLUTIONS,INC. Ill. Goals, Interests and Priorities for Water Rights Strategy The above-described differences between the Partners' water rights and projected water demands demonstrate the value of a strategy related to the Partner water rights at the Duff WTP. The strategy is intended to meet the following goals, interests, and priorities: • Ensure that the water rights at the Duff WTP are strategically managed. • Secure a long-term water supply for all Partners. • Eliminate the need for Partners to unnecessarily purchase additional water rights. • Retain each Partners' ownership of its existing water rights and create opportunities to obtain value for the water rights. • Treat White City, Elk City and Charlotte Ann Water Districts, and other customers served by MWC outside of its service area(Outside Customers) equitably. IV. Strategic Management of Partners' Existing Water Rights A. Reasons for Developing Coordinated Approach to Water Rights and Water Use GSI recommends that the Partners consider developing a coordinated approach to managing their water rights and water supply. This coordination could include not only coordinated management of the water rights at the Duff WTP, but also creation of an opportunity for the Partners to share their combined water supplies. Coordination will also be necessary to strategically secure the 20 existing water rights at the Duff WTP. Additionally, if the Partners established a combined water supply, it could address the imbalances between water rights and projected water demands that have been previously described, and eliminate the need for the purchase of additional water rights to meet their individual needs. Further, establishing a combined water supply could provide the Partners with some level of supply redundancy; that is, the arrangement could enable each Partner to obtain water from more than one source of supply. B. Conceptual Framework for Water Supply Sharing GSI and the Partners considered multiple approaches to sharing water supply. Based on GSI's understanding of the Partners' goals, interests, and priorities, as well as the Partners' water supplies and demands, GSI recommended an approach that provides an opportunity to meet the Partners' near-term and long-term goals without jeopardizing any of the Partners' water rights. In addition, the Partners would pool their water rights to establish a diverse water rights portfolio. Under the recommended option, the Partner Cities and MWC would enter into an intergovernmental agreement (IGA)to work together on regional water supply. The IGA would describe how the water rights and water supply would be shared, which would occur in two phases. Until the Duff WTP capacity was expanded to 100 cfs in approximately 2028, the Partner Cities and the Outside Customers would share their water supplies. MWC could track 2 August 5, 2022 EXECUTIVE SUMMARY-WATER RIGHTS STRATEGY FOR PROJECT PARTNERS GSI WATER SOLUTIONS,INC. each entity's water use and compare that with the entity's individual water rights to determine whether any compensation was required for use of another entity's water rights. Additionally, the Partners would follow an agreed-upon strategy to request water right certificates for their water rights. In the second phase of this option, the MWC would modify its agreements with the Partner Cities and Outside Customers and would begin to provide them with surplus water. The water rights held by the MWC and the Partner Cities would be placed into a regional water supply pool, which would be managed by the MWC. This would result in the Partners having a diverse water supply portfolio. The Partner Cities would retain ownership of their water rights, and the IGA would include a mechanism by which any of the Partner Cities could withdraw from the group. The MWC would compensate the Partner Cities for any Operation and Management (O&M) costs it incurred associated with contracts for stored water that was being used by the Partners. The MWC would also provide Partner Cities with compensation (based on negotiations between each Partner City and the MWC) for water rights used by the Partners. The rate the Partner Cities pay to the MWC would reflect these expenses. V. Summary of Recommended Option The option recommended by GSI provides an approach to meeting the Partners' near-term and long-term water supply goals without jeopardizing any of the Partners' collective water rights. In the near term, the recommended option provides a method for the Partner Cities and MWC on behalf of the Outside Customers to initiate a shared water supply strategy. It then changes relatively quickly to reset the relationship with the MWC, which would then provide surplus water supply to the Partner Cities and Outside Customers. In addition,the Partners would pool their water rights to establish a diverse water rights portfolio. Finally, this option minimizes water rights transactions, such as extensions of time for permits and transfers, and decreases the risks associated with these transactions. VI. Next Steps Establishing a water sharing agreement will require completing a series of steps or actions. The following is a brief summary of some of the actions that will be required: • The Partners' staff communicate with their councils/boards, and seek approval to develop a scope of work to develop an IGA. • Staff develop the scope of work for drafting the IGA, and take the scope of work to city councils/ board for approval. • Staff develop a draft IGA. • Staff take the draft IGA to their city councils/board for review and approval. 3 August 5, 2022 Attachment 2 Water Rights Certification Strategy Table Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan A vi a 1 m d V w H N w o _8 ▪_ 'G 't5 O O CO O O w w ^o V CO Q N < Obf p�j CO N 0) 00)r R 0 p V M U °N G n c3i fg v m O 01 Q1 W O) V co n O p O N W a7 I. ccooCD.�.. m coo. (0rn mnnnoo ' tO� co co 21 'yam 5$ V m St N g 0 OE H d . d la a O C) 0 0 O- 0 0 0 CO 0 0(0(0 c0 '�' O M M M O O M M M�() )f) 47 4')(0 1!) 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N * a Attachment 3 Water Meters Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan N # N N \ 4--,Wm aj \Le1 / / § m k ± -0 a — § / J ucc .20 +431 v, 0 2 E 2 & ° I ƒ / f \ 6 R 2 m o c — v c ® c k a) o / v, g 3 « 3 m _° 6 m ( 6 7 c W ¥ 7 2 O # 0 a) -o o 0 / 7 - a 3 C \ / 0 G W , -0 c 0 /° m w -0 • o • v) = E � ° w � E m / = $ 0 E) c o � (U Z O 0 S Q F £ i- E c > > > .47. / - / 4Jq q q [ 0 0 0 0 0 0 0 0 0 0 > > >- 10- / 0. 0. 0. 0. 0. 0. 0. 0- a C C 7 w w w w W w W u W w C C C CO CD CU m CO CO CO CO CO 0 ( 0 3 0 3 0 . . . . . k / k4-, 4-. 4-, 4-, 4-, k k k k k 00 2 (.02 ° 0 ° c0 ° 0 ° k k k k k k / / U U / U / / u u Q '2222222222 I 2 m 2 m 2 m / % c I 2 = 0 a) - c as c E g ƒ t O ƒ G a) " / \ (U Lu c =- C -o R U c o G - 0 ao c ° ƒ / / OD O -- G = I » cc v •- _c I 0¢ a cC D § g q / -0 , ° m c < '0 o / w w g es.- 1— a i 0 aj z 0 g z z uj V) C % $ ƒ ::,'e z $ z 2 2 R 2 n Ccc g _ W I e E' - E w w o U 0 5 \ \ I- \ �, 2 $ q 2 § 2a) E 2 m = > « « v) > s| 2 0 F- - - UO- U 2 - Q ccc cu c " c c c c c - 2 k m a s ax ■ 2 2 2 a a a a a § c a) a ■ ■ ■ ■ ■ _ a) ■ C 2 IC W W M c c c W W W W W u 2 › 0 0 0 2 2 2 2 .w 0. 0 I- 0 Attachment 4 Participating Partner Cities' Authorized Water Volumes Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Partner Cities'Authorized Water Volumes Authorized Water Volume Water Right From Water Calculated Total Water Total Authorized Right from Rate Right Limitations' Water Volume (acre-feet) (acre-feet) (acre-feet) (acre-feet) Ashland Permit S-54337 449.4 449.4 Certificate 96166 550.6 550.6 Total 1,000 1,000 Central Point Transfer 1-9900 666.0 666.0 Certificate 93754 412.4 412.4 Certificate 93755 412.4 412.4 Transfer T-10465 438.0 438.0 Total 1,104.0 824.8 1,928.8 Eagle Point Certificate 88552 321.3 321.3 Transfer T-10527 181.5 181.5 Transfer T-10614 273.7 273.7 Transfer T-10960 520.3 520.3 Certificate 89864 356.94 356.94 Transfer T-12221 207.2 207.2 Total 1,860.94 1,860.94 Jacksonville Certificate 87360 400.0 400.0 Permit S-54974 200.0 200.0 Total 600 600 Phoenix Permit S-47672 400 1,5173 1,9174 Permit S-52650 600 600 Total 1,000 1,517 2,517 Talent Permit 5-53898 759.0 759.0 Certificate 91134 533.0 533.0 Total 1,292 1,292 Partner Cities' Authorized 6,856.94 2,341.8 9,198.74 Water Volumes 1 Limitations on a Partner City's authorized volume of water could include regulation of their water right by the OWRD watermaster,or limitations on use provided in a final order approving their water management and conservation plan. 2 Total Authorized Water Volume equals the total water right minus limitations. 3 Based on 5 cfs from May 1 through September 30. 4 Final authorized volume will be determined at time OWRD issues certificate for this permit. August 5, 2022 Attachment 5 Example Allocation of Excess Water Use Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Example Allocation of Excess Water Use: • Four cities hold water rights and use water as follows. Medford Water would calculate excess water use and unused water rights as shown in the column labeled "difference" City Water Rights Water Use Difference (AF) (AF) (AF) City A I 500 I 1,490 I -990 (excess water use) City B 1,000 I 750 I 250 (unused water rights) City C I 1,500 I 1,000 I 500 (unused water rights) City D I 2,000 I 1,000 I 1,000 (unused water rights) • Medford Water would calculate the compensation that City A(the only City with excess water use)would need to provide to Cities B, C and D (who had unused water rights) as follows: o Total excess use-990 AF o Cities B, C, D - each compensated for 250 AF(up to maximum of City B's water rights), which accounts for 750 AF o Remaining excess use- 240 AF o Cities C and D - each compensated for 120 AF(for a total of 370 AF each) August 5,2022 Attachment 6 Example Calculation of Average Annual Cost per Acre-Foot Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan Table 1: Example Calculation of Total Annual O&M Costs for Storage Space (See VII.B.1. in IGA) Contracted Storage Name Application Permit Total O&M Cost(2020) Space (AF) Ashland S-85733 S-54377 1000 $24,132.50 Jacksonville S-80641 S-53445 400 $9,653.00 Jacksonville S-88088 S-54974 200 $4,826.50 Phoenix S-60890 S-47672 400 $9,653.00 Phoenix S-71996 S-52650 600 $14,479.50 Talent S-84029 S-53898 1292 $31,179.19 Totals 3,892 $93,923.69 Table 2: Example Calculation of Total RR&R Costs for Storage Space (See VII.B.2. in IGA) Contracted Storage Total RR&R Cost Name Application Permit Space (AF) (2020) Ashland S-85733 1 S-54377 1000 $0 Jacksonville S-80641 I S-53445 400 $0 Jacksonville S-88088 I S-54974 200 $0 Phoenix S-60890 1 S-47672 400 $0 Phoenix S-71996 I S-52650 600 $0 Talent S-84029 LS-53898 1292 $0 —— Totals 3,892 $0 Table 3: Example Calculation of 5-year Rolling Average RR&R Cost (See VII.B.3. in IGA) Year I RR&R Cost 2016 I $0.00 11 2017 I $0.00 2018 I $0.00 20191 $0.00 2020 $0.00 Total $0.00 5-year Rolling Average $0.00 (Divide Total by 5) August 5, 2022 N L N E0 I a N o y N c co N 0 N O 3 ER Z . t N O n t!1 c N C a) ++ Q ••L 2 O' O' = a to Q U Z y iM/? tom/} ^ z �e p Imo• Q V I ++ ' CU C In _4a o M ea t C u V 2 O M Vl I� M Qat N N I N N 00 M O 1� t-I •N 3 .110 0 Q Tr N M � N to M NO M Q Z ?� > ++ +' ++ ++ ++ }, ++ +J +, ++ H 0) 0 U l� v v v CJ U v v CO D 0 O O 0 0 0 0 0 0 0 0 0 ++ AI I I i A A 1 A A1 A 12 0 M M M M M M IQ 'O vO L L L L L L L L L L L L c 'c a a s a a a a a a a a a < < < < < < < < < < < < Ti a. 1 I I I 1 1 1 I 1 1 I I m >> £ a lD M U') I. 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Z. 4., .O 3 'OC E 0 CC C C x I— (5 < IA } I To a) �1 +-+ .n 0 I ea H Attachment 7 Example Annual Summary Report of Water Sharing Agreement Intergovernmental Agreement for a Coordinated Water Rights Management and Water Sharing Plan 1150 LO r1 N LID of i O c-I r1 r-I r M N 3 G1 0�1 N Q1 N ON a ui = NVI .L O '_ 41) to +- 3 1- 1.1 i v o 0 0 0 0 0 `i a Q > o°Jc a Q > o d- d- d• d- v N -a O of rn of of of +O+ •V `n t a p o 06 0000 000 000 000 COC N s-i a) i E CJ O 7 > t O ^ O 01 01 01 01 01 d' LL 00000 a O 0-0 0-0 Oho 0v-i6 0v-i6 al E a O O O O 0 10 3I '0 u v M o 3 a c'o � o O 0 o o ui vs �, a N •0 •0 •0 •0 0 N �-. d 1.11 O LID u1 N R N in in n in. 1 N 3 O N m Q 01 o oO N N m 0 O v} Iw DC CJ ' 0o 0 O N a 'a 7 CI) 0.) +O+ 3 a W LI- 4J V u ca E a ,floWW> >vv wp 0 0 00 O = r1 111 O 111 M ›. > N 40 0 0 0 0 d' a m o o n o of -0 L `° rn 01 N t11 N N 'C 4.. 4.) y 0 O O 111 Ln 111 a) ca 3 = +� _3 ,.) a ° 01 cc vi 4J O 1.1- C U a > Q 13 tVi Sm cooo C ro o O o O 0 c 00 00 00 00 00 00 'a N tOD O O (Ni a LL I n In In In u1 u1 3 N N 01 00 O CD u1 N 0 M m m m M M p t co i--1 r-I e--I (Ni' .--1 rn N N N N N N 4J 41 E y U R (/1 -VI- i/1 /) t/) t/? 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CJ 4, IC 0 0 0 0 0 aIli W 0 0 0 0Lri u p0 to in to to 5 W W 0 'a C C ea �O > a 0 0 0 0 0 0 :a 0 0 0 0 0 0 Ct. c in-tin tin in N CJ y u O u p C C 'a 41 X C 'a x �C0.1 •L O O to 3 O M d d H CO F u 0) C O. y W - is u •F•to I- I— x W M N c0 sAed H Final IGA with Attachments 080522 - For Signature Final Audit Report 2022-09-19 Created: 2022-08-12 By: Yvette Finstad(yvette.finstad@medfordwater.org) Status: Signed Transaction ID: CBJCHBCAABAA-OkjLu2k8GdoQigabr8FlUpwfzwDttcQ "Final IGA with Attachments 080522 - For Signature" History f Document created by Yvette Finstad (yvette.finstad@medfordwater.org) 2022-08-12-8:53:10 PM GMT-IP address:96.41.171.134 CY Document emailed to joe.lessard@ashland.or.us for signature 2022-08-12-9:19:19 PM GMT C+ New document URL requested by Yvette Finstad (yvette.finstad@medfordwater.org) 2022-08-30-3:54:23 PM GMT-IP address:35.130.197.154 t Email viewed by joe.lessard@ashland.or.us 2022-08-30-4:56:12 PM GMT-IP address:66.241.64.95 6o Signer joe.lessard@ashland.or.us entered name at signing as Joseph L. Lessard 2022-08-30-5:37:31 PM GMT-IP address:66.241.64.95 66 Document e-signed by Joseph L. Lessard (joe.lessard@ashland.or.us) Signature Date:2022-08-30-5:37:33 PM GMT-Time Source:server-IP address:66.241.64.95 Cy Document emailed to Chris Clayton (chris.clayton@centralpointoregon.gov)for signature 2022-08-30-5:37:36 PM GMT t Email viewed by Chris Clayton (chris.clayton@centralpointoregon.gov) 2022-08-30-5:50:26 PM GMT-IP address: 119.13.205.112 b© Document e-signed by Chris Clayton (chris.clayton@centralpointoregon.gov) Signature Date:2022-08-30-5:51:09 PM GMT-Time Source:server-IP address:216.115.5.34 C'+ Document emailed to Aaron Prunty(aaron@cityofeaglepoint.org)for signature 2022-08-30-5:51:11 PM GMT Adobe Acrobat Sign t Email viewed by Aaron Prunty(aaron@cityofeaglepoint.org) 2022-09-01 -8:26:59 PM GMT-IP address:216.115.2.146 da Document e-signed by Aaron Prunty (aaron@cityofeaglepoint.org) Signature Date:2022-09-01 -8:27:27 PM GMT-Time Source:server-IP address:216.115.2.146 E. Document emailed to administrator@jacksonvilleor.us for signature 2022-09-01-8:27:29 PM GMT E. New document URL requested by Yvette Finstad (yvette.finstad@medfordwater.org) 2022-09-02-11:31:03 PM GMT-IP address:35.130.197.154 t Email viewed by administrator@jacksonvilleor.us 2022-09-03-11:37:37 PM GMT-IP address: 104.28.116.49 n Email viewed by administrator@jacksonvilleor.us 2022-09-05-0:49:11 AM GMT-IP address: 104.28.116.49 t Email viewed by administrator@jacksonvilleor.us 2022-09-06-0:05:03 AM GMT-IP address: 104.28.116.49 641a Signer administrator@jacksonvilleor.us entered name at signing as Jeffrey N Alvis 2022-09-06-5:30:53 PM GMT-IP address:24.216.252.122 ba Document e-signed by Jeffrey N Alvis(administrator@jacksonvilleor.us) Signature Date:2022-09-06-5:30:55 PM GMT-Time Source:server-IP address:24.216.252.122 E. Document emailed to eric.swanson@phoenixoregon.gov for signature 2022-09-06-5:30:58 PM GMT New document URL requested by Yvette Finstad (yvette.finstad@medfordwater.org) 2022-09-12-11:39:41 PM GMT-IP address:74.51.16.90 t Email viewed by eric.swanson@phoenixoregon.gov 2022-09-15-7:02:22 PM GMT-IP address: 104.28.123.110 C5-0 Signer eric.swanson@phoenixoregon.gov entered name at signing as Eric Swanson 2022-09-15-7:04:17 PM GMT-IP address:74.51.28.25 60 Document e-signed by Eric Swanson (eric.swanson@phoenixoregon.gov) Signature Date:2022-09-15-7:04:18 PM GMT-Time Source:server-IP address:74.51.28.25 E. Document emailed to Jordan Rooklyn (jrooklyn@cityoftalent.org)for signature 2022-09-15-7:04:21 PM GMT t Email viewed by Jordan Rooklyn (jrooklyn@cityoftalent.org) 2022-09-15-7:58:23 PM GMT-IP address:75.139.220.70 -I Adobe Acrobat Sign bo Document e-signed by Jordan Rooklyn (jrooklyn@cityoftalent.org) Signature Date:2022-09-17-6:32:20 PM GMT-Time Source:server-IP address:139.60.27.226 Ek Document emailed to brad.taylor@medfordwater.org for signature 2022-09-17-6:32:23 PM GMT t Email viewed by brad.taylor@medfordwater.org 2022-09-18-5:06:11 PM GMT-IP address: 104.28.116.107 e Signer brad.taylor@medfordwater.org entered name at signing as Brad Taylor 2022-09-19-5:02:14 PM GMT-IP address:74.51.16.90 © Document e-signed by Brad Taylor(brad.taylor@medfordwater.org) Signature Date:2022-09-19-5:02:16 PM GMT-Time Source:server-IP address:74.51.16.90 O Agreement completed. 2022-09-19-5:02:16 PM GMT 121 Adobe Acrobat Sign