FARM UNIT MANAGER (FUM) AGREEMENT 2014-2015 Pilot Farm Unit Fallowing Program This Farm Unit Manager (FUM) Agreement is required for participation in the Imperial Irrigation District s (IID) 2014-2015 Pilot Farm Unit Fallowing Program (FUFP). FARM UNIT MANAGER INFORMATION: Farm Unit Manager Name (print): Address: Phone #: Fax #: Email: Master Farm Unit Name or Name on Water Account: Master Farm Unit ID# or Water Account # (only one): The above-identified person or legal entity, acting as FUM, and IID (singularly Party and collectively Parties ) agree to the following terms and conditions: A. Terms and Definitions. Capitalized terms not defined herein shall have the same meaning as such terms are used in the Imperial Irrigation District Farm Unit Fallowing Program Description (Program Description). B. Fallowing Period. The FUM and IID agree that the term of this Agreement shall be from July 1, 2014 to June 30, 2015 (Fallowing Period). C. FUM and Water Card. The FUM is the owner, owner designee or tenant on a current and valid Certificate of Ownership and Authorization of Owner Designee or Tenant, Form IID-410, otherwise referred to as the water card, for each field within the Participating Fallowing Farm Unit listed in Exhibit A of this Agreement. D. Landowner Authorization Forms. One or more Landowner Owner Authorization forms have been completed and executed by the owner/owner designee for each field within the Participating Fallowing Farm Unit, which are attached in Exhibit B of this Agreement. E. Fallowed Fields. The FUM has selected and IID has approved and verified the eligibility of the field or fields to be fallowed within the Participating Fallowing Farm Unit under the FUFP (Fallowed Fields), which are listed in Exhibit C of this Agreement. The FUM agrees that, during the term of the Fallowing Period and according to the start date listed in Exhibit C, the Fallowed Fields will be fallowed such that they will not be irrigated or otherwise have any water applied to them. The Fallowed Fields are zoned for agricultural uses and the FUM is unaware of any action by the owner/owner designee to change such zoning during the Fallowing Period. The FUM shall immediately notify IID of any proposed or actual change to such zoning during the Fallowing Period. 1
1. Whole Fallowed Fields. The FUM agrees that, for the term of the Fallowing Period, all gates on whole Fallowed Fields will be physically locked and the software used by IID to control orders and delivery of water to whole Fallowed Fields will be electronically locked such that ordering for and delivery of water to the whole Fallowed Fields will be prevented by the software. If any whole Fallowed Field cannot be physically locked, the FUM shall submit a written plan for approval by IID to prevent water from being applied, delivered, leaked, or otherwise physically provided to the whole Fallowed Field. The FUM shall carry out and maintain such plan for the term of the Fallowing Period. 2. Partial Fallowed Field. The FUM agrees that, for the term of the Fallowing Period, all physical blocks verified and approved by IID on a partial Fallowed Field will be located, installed, constructed, or otherwise placed directly on the partial Fallowed Field and will be maintained to prevent water from being applied, delivered, leaked, or otherwise physically provided to the partial Fallowed Field. The FUM agrees that, for the term of the Fallowing Period, the partial Fallowed Field will not be irrigated by water flowing from the remaining irrigated portion of the whole field and the partial Fallowed Field will be clearly and visibly delineated from the irrigated portion of the whole field. 3. Right to Access and Entry. The FUM agrees that, for the term of the Fallowing Period, IID and/or other government agency staff required for the FUFP shall have physical access to and the right to enter the whole and partial Fallowed Fields, at reasonable times and only to the extent necessary, for the purpose of verifying continued compliance with the terms and conditions of this Agreement. 4. Shared Headgate With Fields, Users and Service Pipes. The FUM agrees that, for the term of the Fallowing Period, the FUM will ensure that for those Fallowed Fields sharing a headgate with multiple fields, water users and/or a service pipe that a plan or arrangement will be made and carried out for the term of the Fallowing Period to ensure that those fields, water users and/or service pipe will have continued access to water service and will not be adversely affected by the performance of this Agreement. F. Fallowing Payment. The FUFP payment rate is $175 per acre-foot. IID will calculate the Conserved Water Contract Volume for each field, which shall be either the Baseline for that field or the apportionment for that field under the EDP for the calendar year in which the Fallowing Period commences, whichever is less. IID will pay the FUFP payment rate for the Conserved Water Contract Volume for the Fallowed Fields in the Participating Fallowing Farm Unit. The total Conserved Water Contract Volume for all Fallowed Fields in the Participating Fallowing Farm Unit and the Total Farm Unit Fallowing Payment is provided in Exhibit D. Twenty percent (20%) of the Total Farm Unit Fallowing Payment will be paid directly to the FUM as provided in Exhibit D. Eighty percent (80%) of the Total Farm Unit Fallowing Payment will be paid to the owner/owner designees prorated equally based on the acreage of the fields in the Participating Fallowing Farm Unit as provided in Exhibit D. The calculation of the proration of payment and the amount to be paid to each owner/owner designee is the sole responsibility of the FUM. IID will rely upon the payment amounts set forth in Exhibit D 2
for the issuance of the fallowing payments. The Total Farm Unit Fallowing Payment will be made in three (3) equal payments on the following dates: First payment October 1, 2014; Second payment February 28, 2015; and Third payment August 31, 2015. The FUM shall provide or ensure that IID is provided with all documents and information necessary for payment to be made to the FUM and the owner/owner designees listed in Exhibit D, including completed and executed Internal Revenue Service W-9 forms, Request for Taxpayer Identification Number and Certification. G. Dust Control and Mitigation. The FUM shall be responsible for and undertake the timely control of all dust on the Fallowed Fields as described in the Program Description. The FUM shall provide to IID proof of performance and evidence of the costs and expenses incurred in compliance with the IID selected and approved Best Management Practices (BMPs) to meet dust control and mitigation requirements for IID reimbursement as provided herein. The FUM shall complete and return the Fallowing Program Mitigation Reporting Forms according to the deadlines set forth in the Program Description. The FUM shall be reimbursed for the costs of the IID selected and approved BMPs in two (2) equal payments. Upon IID verification that the FUM is in compliance with this Agreement, the first reimbursement payment shall be made on or before December 31, 2014 and the second and final payment shall be made on or before August 31, 2015. FUM reimbursable costs for IID selected and approved BMPs shall be based upon the Dust Control BMP Reimbursement Schedule issued annually by IID that would not have been incurred by the FUM if the FUM had not been a Party to this Agreement. H. Weed Abatement. The FUM shall, at the sole expense of the FUM, be responsible for and undertake the timely control of all weeds on the Fallowed Fields as required by the Imperial County Code of Ordinances, Title 9, Division 18, Abatement of Weeds and Other Vegetation. I. Current Water Accounts. The FUM shall, for the term of the Fallowing Period, continue to be responsible for all water delivery and water availability charges on the fields in the Participating Fallowing Farm Unit such that the water account(s) associated with the Participating Fallowing Farm Unit do not become delinquent. J. No Legal Impediments. The FUM represents that no legal impediment exists regarding the Fallowed Fields preventing the FUM from performing under this Agreement, including any contract under the California Land Conservation Act of 1965 (Williamson Act) with the County of Imperial or other agency. K. Assignment of Apportionment. The Conserved Water Contract Volume for each Fallowed Field shall be assigned to IID as provided in the Program Description and in accordance with the Equitable Distribution Plan and any related rules, regulations and procedures, as may be amended from time to time. L. Historical Water Use Data. Participation of the Fallowed Fields in the FUFP shall not negatively impact the historical water use data set for the Fallowed Fields. For participation in future IID conservation programs, IID will use a modified historical water use data set that includes both delivered water data and conservation yield 3
attributable to the Fallowed Fields resulting from participation in the FUFP pursuant to this Agreement and as provided in the Program Description. M. Retention of Rights. Nothing in this Agreement or in the FUFP shall transfer, convey, change, alter, modify, or otherwise affect any rights, title or legal interests held by any Party to this Agreement. The Parties to this Agreement reserve all rights, title and legal interests held under any and all applicable laws. N. FUM Role and Program Compliance. The FUM will serve as the primary point of contact on behalf of the Participating Farm Unit and is responsible for all coordination related to participation in the FUFP. The FUM shall be responsible for compliance with the terms and conditions of the Program Description and this Agreement. The FUM shall defend, indemnify and hold IID harmless from any and all claims by third parties for damages allegedly related to the performance of this Agreement. The FUM must cure any noncompliance with the Program Description and/or breach of this Agreement within twenty-four (24) hours of receipt of written notification from IID. Administrative costs and financial penalties related to the noncompliance and/or breach and replacement of lost fallowed water conservation as a result of the noncompliance and/or breach will be deducted from any remaining Total Farm Unit Fallowing Payment and may subject the FUM to further action. Program noncompliance and breaches are considered during the eligibility evaluation process and any FUM involved in program noncompliance and/or breach may be deemed ineligible for future IID conservation program participation. O. Termination. This Agreement may be terminated at any time with the consent of both Parties under mutually acceptable terms executed in writing by the Parties. P. No Third Party Rights. The Parties do not intend to create rights in or to grant remedies to any third party as a beneficiary of this Agreement. Q. Entire Agreement and Amendment. This Agreement constitutes the entire understanding of the Parties hereto. This Agreement may not be modified or amended except in writing executed by the Parties. R. Counterparts. This Agreement may be executed in counterparts, all of which together shall constitute one instrument with the same force and effect as though all signatures appeared on a single document. IMPERIAL IRRIGATION DISTRICT Ismael Gomez Interim Manager, Water Department Date FARM UNIT MANAGER Signature Print Name Title Date 4
EXHIBIT A PARTICIPATING FALLOWING FARM UNIT Canal Gate Field/Tenant Field ID No. Acres Start Date Exhibit A
EXHIBIT B LANDOWNER AUTHORIZATION FORM(S) Exhibit B
EXHIBIT C FALLOWED FIELDS Canal Gate Field/Tenant Field ID No. Acres Crop Start Date Exhibit C
EXHIBIT D FALLOWING PAYMENTS Total Conserved Water Contract Volume Total Farm Unit Fallowing Payment Farm Unit Manager Payment (20%) Owner/Owner Designee Acres Payment (prorated 80%) Exhibit D